Responsible Investing

As part of this we may exclude issuers with the lowest ESG scores as well as those which do not follow what we consider good governance practices. We believe that this level of ESG integration can potentially reduce risk to help us achieve better risk-adjusted returns. We consider strategies classed as ESG Integrated to meet the requirements of Article 8 of the SFDR regulation. Within this group, strategies in the ESG Integrated+ category go a step further by targeting an ESG score higher than that of the benchmark or universe.

Alongside financial returns, these strategies target positive outcomes related to ESG criteria and/or to the United Nations Sustainable Development Goals (UN SDGs). Investment decisions are guided by both the financial and impact goals.

We consider strategies in the ACT range to meet the requirements of Article 9 of the SFDR regulation. Within this range are two categories:

• Sustainable strategies aim to embed ESG into the portfolio construction process, in an even more material and intentional manner. Every strategy in this group targets one or more specific sustainable objectives related to the ESG pillars (for example, carbon footprint) to further refine the investment universe.
• Listed Impact strategies incorporate the demands of the Sustainable category but will seek out businesses and projects that can potentially have an intentional, positive, measurable and sustainable impact on society and/or the environment. These strategies will also report against impact criteria aligned to specific UN SDGs.

This product categorisation framework applies to open funds in liquid asset classes. Specific approaches may apply for segregated accounts or Alternative strategies.

The reference to SFDR product categories is provided based on the basis of the European Directive (EU) 2019/2088 on the sustainability-related disclosures in the financial services sector (“SFDR Regulation”) and state of knowledge as of 10 March 2021. As of today the SFDR-related regulatory technical standards are not yet finalised and enforced. The product categorisation shall be re-assessed once such regulatory technical standards are completed and may evolve.

As a leading financial services company, we strongly believe that responsible investing can deliver value for clients while making a positive impact on society and the environment.

We share the long-term vision of institutions who want to deliver those positive impacts – in order to help build sustainable, thriving economies for generations to come.

The overarching sustainability report covers all real estate investments managed by AXA Investment Managers Switzerland Ltd - Real Assets. The overall portfolio consists of the properties owned by AXA Investment Foundation Real Estate Switzerland, AXA Leben AG, AXA Versicherungen AG, AXA Immovation Commercial, AXA Immovation Residential and AXA Vorsorge Fonds.

Our active ownership specialists conduct regular detailed research into a broad sweep of ESG themes and sustainability trends to better understand how markets are evolving and how economies will adapt to changing conditions.

Our Responsible Investment policy describing our vision and our capabilities towards responsible investment and how we integrate ESG factors into our investment platforms.

The SFDR rules – which come into effect this year – give asset managers like AXA IM a template for reporting how environmental, social and governance (ESG) factors are handled at both firm level and product level. That should give clients a simpler way to compare how asset managers are approaching major sustainability issues like climate change.

Our transparent, active ownership approach aims to benefit our clients both in the form of risk-adjusted returns in the medium-term, and by building a sustainable and prosperous economy over the long term.