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40 AXA GROUP 2019 Climate Report June 2019 4. Metrics and Targets. |
Beside the metrics presented under section 2 (Warming Potential, Cost of climate…), this section provides insights into other more mainstream metrics, including targets. |
In addition to the forward-looking metrics, AXA also conducts a more static snapshot year on year of its investments’ carbon footprint since 2014, as part of its commitment to towards the “Montreal Carbon Pledge(1)”. The December 2018 analysis covers 85% of AXA’s assets out of which 98% of sovereign investments, 67% of... |
(1) https://montrealpledge.org/. |
Historical Trend – AXA’s CO2 Footprint ● Corp Bonds + Equities + Sovereign Corp Bonds + Equities ● |
CO2 intensity in tonnes of CO2 / mns $ revenues or GDP 0 |
50 100 150 200 250 300 350 400. |
Dec 2014 Dec 2015 Dec 2016 Dec 2017 June 2018 Dec 2018 (*) 380 337 302 264 247 257 281 264 229 212 205 199 * Without AXA Financials, including AXA XL. Sources: Trucost S&P, AXA IM. |
In 2018, global carbon emissions have increased in absolute terms after 3 years of flattening. |
Since 2014, the carbon footprint of AXA's investments has decreased. Considering an exhaustive scope (Corporate + Sovereign Investments), it has decreased by 29% between December 2014 and December 2018. Focusing on our Corporate investments, the carbon footprint has decreased from 380 tons/mns $ revenues to 257 tons/mn... |
However, it has started to increase more recently. Indeed, the carbon intensity of the market and benchmarks (MSCI World ACWI for Equities, Barclays Global Aggregate for corporate bonds) in general has increased in 2018. This is a result we find also at macro level, as global carbon emissions have increased in absolute... |
Using this metric as a direct decision-making tool would push investors away from sectors that may be developing adequate solutions for the energy transition; instead it is best to avoid this pitfall and view carbon footprinting as a raw data metric for the more relevant indicators explored in section 2. |
(2) https://news.un.org/en/story/2018/11/1026691. |
Investment Carbon Footprint: a 2014-2018 Trend Analysis |
41 AXA GROUP 2019 Climate Report June 2019 4. Metrics and Targets. |
Own Operations – our Direct Environmental Footprint. |
AXA’s “direct” environmental footprint, although relatively small, is essential in the sense that it also contributes to “walking the talk” as well as improving our operational eco-efficiency, notably through cost savings on energy, fuel, travel, paper and water. |
(1) https://montrealpledge.org/. |
AXA’s target for the 2012-2020 period is to reduce CO2 emissions per Full-Time Employee (FTE) by 25%, broken-down into the following sub-targets: -35% power consumption (kwh/FTE); -15% business travel: vehicle fleet (km/FTE); -5% business travel (km/FTE). |
The Group has also set two other environmental targets: -15% water consumption; -45% office paper (kg/FTE); -50% marketing and distribution paper consumption (kg/client); 95% of paper must originate from recycled or sustainable sources. |
In addition, the Group has set a target to source 100% of its electricity consumed (office sites and AXA-owned data centers) from renewable energy sources by 2025, in line with our “RE100” commitment (RE100 is a coalition of companies pledging to buy 100% of their electricity from renewable sources). In 2018, 55% of th... |
AXA's Direct Carbon and Energy Footprint. |
KPI: Total CO2 emissions (T.eq. CO2/ FTE) KPI: Power consumption ( KWh/ FTE) |
KWh/ FTE 0.0 0.5 1.0 1.5 2.0 2.5 3.0 0 |
500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2012 ref 2015 2016 2017 2018. |
Target Group 2020: 1.81 (T.eq. CO2/ FTE) |
T.eq. CO2 / FTE. |
AXA’s environmental data is described in detail in AXA’s 2018 Annual Report Chapter 7.3. |
CO2 emissions reduction target 2012-2020 -25% |
CO2 emissions reduction achieved 2012-2018 -38% |
42 AXA GROUP 2019 Climate Report June 2019 4. Metrics and Targets. |
ESG, RI, Climate and SRI Ratings. |
CDP (formerly Carbon Disclosure Project) |
Historical scores can be found below and are accessible on the CDP website www.cdp.net. |
UN Principles for Responsible Investment. |
Every year, AXA answers the detailed UN PRI assessment which seeks to measure the breadth and impact of its signatories’ Responsible Investment strategies. |
Our 2018 scores per “module” are listed on AXA.com, with an overall score of A+, stable since 2015. |
SRI Ratings. |
AXA’s social, societal, environmental and governance performance is rated by a number of specialists, including investors, brokers and rating agencies that focus specifically on the SRI market, as well as specialist organizations focused on single sustainability themes. |
The Group generally ranks amongst the top performers in its industry and is also included in the main international sustainability indices: ❯ DJSI World and DJSI Europe (based on RobecoSAM research); ❯ Euronext Vigeo, World 120, Eurozone 120 and France 20 (based on Vigeo Eiris research); ❯ FTSE4GOOD (based on FTSE Russ... |
The AXA Group’s main SRI ratings are listed below (not all ratings are updated annually): |
Agency/Organisation Scores & Ratings. |
RobecoSAM “Dow Jones Sustainability Index” 79/100 – Sector average: 43/100 Percentile ranking: 95th. |
Vigeo Eiris 70/100 – Sector leader. |
FTSE ESG 4.6/5. |
Sustainalytics 86/100 – Rank 2/145 in sector. |
CDP A- |
MSCI AAA. |
Note: The Dow Jones Sustainability Index is a reference performance indicator for AXA, its methodology serves as the basis for the Group’s internal sustainability evaluation tool since 2010, and is one of the performance metrics used to calculate long term incentives (Performance Shares) since 2016. |
Internal AXA Entity CSR/ ESG Maturity Assessment Tool. |
Inspired by the assessment systems used by the specialized extra-financial rating agencies, AXA developed its own model to assess the sustainability performance of its entities, which is adapted to take into account the specific features of each entity: the AXA Entities Sustainability Index. |
More than 100 CR factors are analyzed, including governance, risk management, co m p l i a n ce , c u sto m e r re l at i o n s management, environmental impact management, “green products”, microinsurance, human capital management, community involvement, philanthropy, etc. |
Each factor is weighted and scored according to the entity’s performance, resulting in an aggregate global score out of 100. Each entity’s progress in corporate responsibility maturity is measured each year. |
AXA Group CDP Climate Change Performance. |
Disclosure. |
Management. |
Awareness. |
Leadership. |
A |
B. |
C |
D. |
A– |
B– |
C– |
D– 2011 2012 2013 2014 2015 2016 2017 2018 2010 2018 DowJones Sustainability Index percentil ranking 95% |
AXA has submitted CDP reports since 2005 (with scores since 2010). In 2018 AXA’s Climate Change score reached A-, reflecting ambitious actions to manage our environmental impact across all our business activities. |
This is a guide to CR strategy development used by the subsidiaries to identify the measures needed to roll out their own local CR strategies. |
43 AXA GROUP 2019 Climate Report June 2019. |
Statutory Auditors’ Report (PwC) |
Independent Limited assurance report on the Identified Information presented in the AXA's 2019 Climate Report. |
To the directors of AXA S.A. (“The Company”) |
We have undertaken a limited assurance engagement in respect of the selected information listed below and reported at the page number indicated below in The Company’s 2019 Climate Report(1) for the year ended 31 December 2018 (“the Climate Report”) (the “Identified Information”). This engagement was conducted by an ind... |
Identified Information. |
The Identified Information for the year ended 31 December 2018 is summarized below: ❯ Warming Potential comparison with market indices for Corporate Securities (p. 17); ❯ Cost of climate for Corporate Fixed Income and Equity assets (p. 3 and 19); ❯ Green Bonds invested in 2018 (p. 26); ❯ Carbon intensities of Corporate... |
Our assurance engagement was with respect to the year ended 31 December 2018 information only and we have not performed any procedures with respect to earlier periods or any other elements included in the Climate report and, therefore, do not express any conclusion thereon. |
Criteria. |
The criteria used by the Company to prepare the Identified Information are available in the Company’s procedures listed below and can be read at the Company’s headquarters (the 'Criteria'): ❯ Carbon Delta – Warming Potential Computation, October 2018; ❯ Carbon Delta – Transition Modelling: Technology Oppportunities, Oc... |
The Company’s Responsibility for the Identified Information. |
The Company is responsible for the preparation of the Identified Information in accordance with the Criteria, the main elements of which are presented in the Climate report. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of the Identified Informat... |
Inherent limitations. |
The Identified Information needs to be read and understood together with the Criteria, which The Company is solely responsible for selecting and applying. The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, me... |
Our Independence and Quality Control. |
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and pro... |
Our firm applies International Standard on Quality Control and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. |
(1) Available on the website https://www.axa.com/en/about-us/axa-and-climate-change. |
44 AXA GROUP 2019 Climate Report June 2019. |
Our Responsibility. |
Our responsibility is to express a limited assurance conclusion on the Identified Information based on the procedures we have performed and the evidence we have obtained. We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements 3000, Assurance Engagements other th... |
A limited assurance engagement involves assessing the suitability in the circumstances of the Company’s use of the Criteria as the basis for the preparation of the Identified Information, assessing the risks of material misstatement of the Identified Information whether due to fraud or error, responding to the assessed... |
The procedures we performed were based on our professional judgment and included inquiries, observation of processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records. |
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