AXA IM divests

AXA Investment Managers (AXA IM) has announces that it will be divesting its portfolios of companies that derive more than 50 per cent of their revenues from coal-related activities.

The policy, effective from 30 June 2017, supplements AXA IM’s earlier positions on palm oil and soft commodities derivatives implemented in 2014, and on controversial weapons in 2008 as part of the organisation’s aims to fully integrate ESG across its investment strategies.

AXA IM, describing itself as an ‘active steward of our clients’ assets’ has been open about that potential risks of some asset classes, noting that these assets may become ‘stranded’ in the environmental necessities of keeping to a 2 degree increase in temperature and other environmental concerns.

Andrea Rossi, CEO of AXA IM, commented: “It is also in line with our belief that asset managers have an important role to play in helping the global transition to a low carbon economy. We want to engage with our clients, increasing awareness about the potential long-term risks related to the production and consumption of coal at current levels and encouraging investors to fully consider the long-term benefits of low carbon portfolios.”

The growing interest that managers have seen from clients in ESG, and divestment from coal in particular, highlights the acceptance of trends towards ‘greener’ investment, and the need to consider individual asset classes, companies, sectors and regions as possessing particular risks.

AXA IM’s coal policy will apply to €714bn (99.5%) of assets under management, meaning a divestment of approximately €165m of fixed income portfolios and €12m of equities portfolios.

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