The Paris-based insurance giant announced this commitment in a statement yesterday, in which it also said it had signed the so-called
UN Principles for Responsible Investment (UN PRI).
Axa is said to be one of the largest companies, as measured by assets under management, to sign up to the UN PRI thus far.
The new responsible investment policy was described by Axa as "a significant move forward" and a "strong reflection of the group’s longstanding belief that ESG factors have the potential to impact investment portfolios across companies, sectors, regions and asset classes over time, thereby affecting risk and returns – and as such require active consideration and monitoring".
Axa said that ESG criteria are now being "progressively and systematically integrated in AXA’s investment mandates", across asset classes and regions.
Specific measurement tools are also being refined to ensure that ESG performance is tracked accurately, the company said.
Current strategic allocations between asset classes remains unchanged by the new process, which is described as applying to the Axa Group’s general account investments. These totalled some €476bn at the end of June, Axa noted.
The policy will also provide a framework for what Axa noted would be the structured development of investment guidelines for sectors that "can pose environmental, social or ethical challenges". It did not specify which sectors these were.
Axa said the new policy represented the initiation of its new, so-called "Impact Investment" project, which it said aims to allocate capital to organisations that address key societal challenges in the areas of environmental, life, or socio-economic, risks. Impact investments seek to create both financial returns and a positive social or environmental impact that is actively measured.
It has initially committed €150m to this initiative.
Axa group chief investment officer Laurent Clamagirand said that finalising the company’s responsible investment policy, as has now been done, was "both an end and a beginning".
"It is the outcome of a thorough process designed to align interests, and bring all of Axa’s subsidiaries together with regard to responsible investment," he added.
"Our dedicated implementation process and monitoring framework will ensure both compliance with, and progress against, the UN PRI, as well as the effective rollout of the RI policy.”
To read more about the UN PRI, click here.
