As part of its commitment to becoming net zero as a business and investor by 2050 to help the transition to a more sustainable world, AXA Investment Managers (AXA IM) is now including ESG targets in the remuneration of its senior executives.
From 2023, the deferred compensation of around 400 people that will start to be paid in 2024 will include, alongside existing criteria, the following ESG metrics according to the employee’s business area and remit:
- The weighted average carbon intensity (WACI) to reach the target of a 25 per cent reduction in carbon intensity for the corporate portfolio by 2025. For the ESG part of the deferred compensation, this metric accounts for 75 per cent for AXA IM Core and 37.5 per cent for transversal functions employees in scope;
- An assets under management (AUM) target for 50 per cent of the real estate portfolio to be aligned to the CRREM1 trajectories by 2025. For the ESG part of the deferred compensation, this metric accounts for 75 per cent of AXA IM Alts and 37.5 per cent of transversal functions employees in scope; and
- The reduction of the corporate operational CO2 footprint, to reach the interim target to reduce it by 26 per cent by 2025. For the ESG part of the deferred compensation, this metric accounts for 25 per cent for all AXA IM Core, AXA IM Alts, and transversal functions employees in scope.
The ‘AXA IM for Progress Monitor’ – a set of metrics selected for their material contribution towards AXA IM’s ambition of becoming a leading responsible asset manager – reflects this new policy.
The AXA IM for Progress Monitor metrics sit alongside AXA IM’s financial targets and indicators as additional indications of its progress as an investor and a business. It is initially comprised of eight metrics pertaining to net zero targets around the following themes:
- Decarbonisation across the main asset classes and for the operations;
- Importance of engagement with investee companies and as employees of a responsible asset manager; and
- Solutions to consciously channel capital to companies and projects that can help accelerate the transition.
Progress towards these targets will be reported annually from 2023. The AXA IM for Progress Monitor will evolve in time to factor in AXA IM’s commitments towards ESG criteria.
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