How to invest for a sustainable world?
Overview
Be invested in better. Invest for a sustainable future.
Investing for a sustainable future isn’t just a business imperative, it’s a moral imperative too. By backing the companies and projects taking action now, you can help accelerate the transition to a more sustainable world and a better future for everyone.
At AXA IM, we recognise that we have an active role to play in this transition as a business, an investor and employer.
We believe in empowering our clients to invest in the transition to a more sustainable planet and society. We think asset managers can play a leading role in this transition by directing investment capital towards the businesses and projects creating solutions to some of the world’s greatest challenges, including climate change, biodiversity loss, demographic shifts, and ensuring fair and safe societies.
Be invested in better. Invest for a sustainable future.
On the journey to a more sustainable future, we all want to say we played a part. But to make the world a better place, we all need to be invested in it.
Watch the video to learn more about our sustainable investing initiative.
How does responsible investing help build a more sustainable world?
In our view, investing in companies and projects that are leading the way to a more resilient and equitable economy is a means to not only accelerate the transition to a more sustainable world but also make better investment decisions in terms of potential financial returns over the long-term.
With increasing regulation and growing awareness from governments and consumers, if companies don’t adapt their business models to meet demand for more sustainable practices, they risk failing. While the companies who not only understand their impact but invest in progress and deliver solutions can be best positioned for future growth. Hence we believe in wielding our influence as a leading asset manager to incentivise companies to engage in more responsible actions and behaviours.
Responsible Investing (“RI”) is a broad term that refers to a wide range of approaches that helps us in being an active partner for clients in the transition to this more sustainable and prosperous global economy.
In practice, RI involves:
ESG integration
Using Environmental, Social and Governance (ESG) factors to enhance traditional financial analysis by identifying potential risks and opportunities.
Exclusions
Rules that decide which areas a portfolio will not invest in, either for moral reasons or in an effort to avoid the highest potential ESG-related risks. For example, sectors like tobacco and controversial weapons.
Impact investing
The focus on financing businesses and projects that are designed to have intentional, positive and measurable impacts on society. The objective is to balance financial returns and have a measurable impact on specific issues such as climate change.
Sustainable investing
We define sustainable portfolios as those where sustainability criteria are central to the security selection and portfolio construction process. The objective is deliver financial performance while promoting sustainability.
How do we invest responsibly?
There are three common pillars to our RI approach incorporated across AXA IM Core fixed income, equity, and multi-asset portfolios.
- Framework for data and research: We integrate ESG in research and portfolio construction stages; seeking to generate robust quantitative data that can guide portfolio managers, while delivering qualitative research that digs into how ESG themes are affecting assets, sectors and regions.
- Exclusions: We apply both firm-wide minimum sectorial policies and AXA IM Standards which exclude non ESG-compliant exposures.
- Active ownership: We are proactive with our engagement and voting to identify potential ESG risks before they materialise.
Our offering
Since ESG is already embedded into our investment processes across our equity, fixed income and multi asset, as of December 2021, c.85% of our funds and strategies within AXA IM Core fall under Articles 8 and 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR),1 meaning they meet the most demanding and stringent of the EU regulatory disclosures for sustainable investment funds.
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Sustainable Investing
Our sustainable investing strategies are at the forefront of responsible investing at AXA IM Core that meet the requirements of the Article 9 of the SFDR regulation. The strategies here are designed to help clients target specific sustainability goals around people and the planet, such as inequality and climate change.
Disclaimer
This website is published by AXA Investment Managers Asia Limited (“AXA IM HK”), an entity licensed by the Securities and Futures Commission of Hong Kong (“SFC”), for general circulation and informational purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy, sell or enter into any transactions in respect of any investments, products or services, and should not be considered as solicitation or investment, legal, tax or any other advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities under any applicable law or regulation. It has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation, investment knowledge or particular needs of any particular person and may be subject to change at any time without notice. Offering may be made only on the basis of the information disclosed in the relevant offering documents. Please consult independent financial or other professional advisers if you are unsure about any information contained herein.
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