AXA Investment Managers’ (AXA IM) new strategy centres providing institutional investors with a clear framework to net-zero while also helping them reach their long-term financial and climate goals. The asset manager will invest in climate solutions, projects, and investments that must be net-zero by 2050, along with heavily decarbonising issuers. The approach gives clients a comprehensible framework to align with the Paris Agreement.

The strategy is a part of AXA IM’s broader sustainable investing offering, and is classified as Article 9 under the EU’s Sustainable Financial Disclosure Regulation (SFDR). It also integrates climate-related targets and investor requirements from mechanisms such as the Task Force on Climate-related Financial Disclosures (TCFD), in efforts to mitigate the physical and transition risks intrinsic to climate change. Portfolio-level risk and return characteristics are also taken into account.

The three key objectives of the strategy are capital preservation, climate alignment, and credit return, which seeks to offer a maturity-based approach to climate risk, with transparent short, medium, and long-term goals.

Clients utilising AXA IM’s strategy receive continuous reporting via a dashboard with carbon-related metrics.

John Stainsby, AXA IM’s Head of Core Client Group UK, remarked: “There has never been a better time to implement a climate-driven strategy – we have more data and a greater understanding on how climate-risks can impact client portfolios coupled with a broader opportunity set and enormous political, regulatory and investor momentum. Our Buy & Maintain strategy has a natural alignment with the time horizon over which climate change risks can materialise and we believe it will, coupled with our broader track record across risk-mitigation, engagement policies and commitments as a Net Zero asset manager, appeal to investors seeking to integrate climate objectives into their credit portfolios.”