AXA IM is on track to reach its interim targets towards net zero by 2050

• AXA IM publishes the second edition of the AXA IM for Progress Monitor and associated Sustainability Report
• AXA IM made material progress by succeeding to reduce the carbon intensity of its corporate portfolio by almost double the ambitious target
• Significant progress has been made on real estate portfolio decarbonisation, also exceeding the interim goal 
• The positive momentum on channelling capital towards natural capital solutions and engagement with several targets achieved, confirms AXA IM’s ambitions to reach net zero by 2050

AXA Investment Managers (AXA IM) today unveils the second update of the AXA IM for Progress Monitor as well as its 2023 Sustainability report. AXA IM aims to be transparent about its approach to sustainability and its efforts to achieve its objectives by communicating tangibly and regularly.

Announced in 2023¹ , the AXA IM for Progress Monitor is a set of eight key performance indicators (KPIs), chosen for their strategic importance and material contribution towards AXA IM's goal of reaching net zero as a business and investor by 2050² . These indicators provide a focus on how AXA IM’s commitments and actions are driving change across three pillars: decarbonisation, channelling capital and engagement.

By the end of 2023, AXA IM had made material progress in decarbonisation across the spectrum of its activities:

• On the alternative assets side, as AXA IM is the largest property portfolio and asset manager in Europe³  and therefore has a pivotal role to play in contributing to the decarbonisation of the real assets sector. By developing a methodology aiming to standardise its approach to energy efficiency and decarbonisation for all its property assets across all sectors, AXA IM has established a clear roadmap to significantly reduce GHG emissions, in line with the Paris agreement, resulting in:
  • reducing the carbon intensity of its real estate portfolios by 32.6% (vs. 2019), significantly exceeding the interim target of a 20% reduction by 2025.
  • keeping 69% of its direct real estate AUM in line with the Carbon Risk Real Estate Monitor (CRREM) trajectory, the leading global standard and initiative for operational decarbonisation of real estate assets. This is the second year in a row that AXA IM has achieved this target, notwithstanding that the CRREM trajectory becomes increasingly ambitious and challenging to align with and considering the portfolio turnover.
• On the listed assets side, AXA IM made material progress in decarbonisation by successfully reducing the carbon intensity of its corporate portfolio by 48.6% (vs. 2019), exceeding its target of -25% by 2025.
• At a corporate level, AXA IM has reduced its own operational carbon footprint (energy, business travels, car fleet) by 33% by the end of 2023 (vs. 2019), exceeding its reduction target of 25% by 2025.

AXA IM also made significant progress on the other two pillars of its roadmap towards net zero, namely channelling capital and engagement:

• By reaching 68.9% of financed emissions in material sectors subject to engagement as at the end of 2023, in line with its target of 70% by 2025. The scope covers engagement activities conducted directly by AXA IM or collaboratively though Climate Action 100+. As a result, AXA IM has decided to ambitiously raise its target, now aiming for 90% of financed emissions in material sectors subject to engagement by 2030.
• By managing to keep a low coal exposure of its investments  in OECD countries, at 0.36% at the end of 2023, despite negative market effects and in line with its target of exiting all coal investments for this geography by 2030.
• By succeeding to reach €919 million of committed investments in natural capital solutions, in line with its target set at €1.2 billion by 2028. As a responsible investor, AXA IM's role is to actively make a positive impact by consciously channelling capital towards sustainable investments, particularly those with a positive and significant impact on biodiversity and natural capital.
• By enabling 77% of its employees to attend ESG and sustainability training and awareness sessions, surpassing its target set at 70% for 2023.

Marco Morelli, Executive Chairman of AXA IM, said: “While we have made strong progress over the last years, we strive to do more as there is still a long way to go to reach net zero. We will achieve this by continuing to decarbonise our portfolios across all asset classes, by channelling more capital towards natural capital solutions and sustainable investments, and by carrying out ever more demanding engagement activities with investee companies to support their transition. This report presents our personal journey towards net zero, thanks to the commitment of all AXA IM teams for the long-term benefit of our clients.”
 

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Overview of AXA IM progress on the eight indicators composing the AXA IM for Progress Monitor:

To read AXA IM Sustainability report 2023 and get a comprehensive view of the progress made, please click here.