text stringlengths 0 7.73k |
|---|
Net-Zero Asset Owner Alliance 26 institutional investors representing almost $5 trillion in assets under management collectively committed to achieved climate neutrality by 2050. |
Insurance risk. |
Physical risk (severity and frequency) |
Exposure (building’s physical properties) |
Vulnerability (destruction rates) |
How climate change may impact our investments -10.5% |
Company cost of climate (under a 1.5°C scenario) -3.3% |
Portfolio cost of climate (under a 1.5°C scenario) |
Greening our investments €12bn. |
AXA’s 2019 total green investments €24bn green investments target by 2023 -31% |
AXA’s 2014-2019 investment carbon footprint 4.9% |
Green share of AXA’s corporate investments €550m committed to Impact investing since 2013 €100m “proof of concept” transition bond launched. |
Physical risks on AXA’s “Real Assets” €4.3m our Real Assets Annual Average Loss to Floods €6.2m. |
AXA’s Real Assets Annual Average Loss to Windstorms. |
Investment and business exclusions €7.5bn total assets divested via sector policies 0% coal in our business by 2030 (EU/OECD) and 2040 (rest of the world) |
Direct environmental footprint -32% |
CO2 emissions per employee between 2012 and 2019 -25% |
CO2 emissions reduction target between 2019 and 2025. |
Products & services 100% |
SRI funds in AXA’s collectives savings range 4,9 m “Assurance Citoyenne” contracts sold since 2015 55 m. |
Indian farmers protected via AXA’s parametric solutions. |
Voting & engagement 2019 6,016. |
General Meetings voted 46% meetings where AXA did not fully support management proposals 217 issuers engaged. |
Our sustainability performance 97th percentile ranking according to the DJSI #1/49. |
AXA’s ranking in our industry according to Vigeo |
04 AXA GROUP 2020 Climate Report June 2020. |
Context & Introduction. |
Core Elements of Recommended Climate-Related Financial Disclosures ❯ Governance. |
The organization's governance around climate-related risks and opportunities ❯ Strategy. |
The actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy and fi nancial planning ❯ Risk Management The processes used by the organization to identify, assess and manage climate-related risks ❯ Metrics and Targets. |
The metrics and targets used to assess and manage relevant climate-related risks and opportunities. |
Metrics and Targets. |
Risk Management. |
Strategy. |
Governance. |
Source: www.fsb-tcfd.org. |
In line with AXA’s climate re porting strategy since 2016 (see our past Climate reports on www.axa.com), this report describes AXA’s responsible investment and insurance initiatives, in line with two different but partly overlapping and complementary frameworks: ❯ the mandatory disclosure requirements related to France... |
TCFD’s “Guidance for all sectors” and “supplemental guidance” for asset owners and asset managers”. |
To address these mandatory disclosure requirements and voluntary disclosure recommen-dations, this report answers regulatory requirements derived from Art. 173, while following the TCFD structure (Governance, Strategy, Risk Management, Metrics & Targets, see diagram below). This work is also described in AXA’s 2019 Ann... |
Previous years’ Climate Reports and Annual Reports are available on www.axa.com. |
(1) Article L. 533-22-1 and Article D. 533-16-1 of the French Monetary and Financial Code (Code monétaire et fi nancier, as respectively amended by, and adopted pursuant to, Article 173 (VI) of Law No. 2015-992 of August 17, 2015 relating to Energy Transition for Green Growth, generally referred to as “Article 173”. |
(2) www.fsb-tcfd.org (3) AXA’s 2019 “Universal Registration Document” for the year ended December 31, 2019 (“Annual Report”). |
A report at the crossroads of investments & insurance, mandatory and voluntary frameworks, and ESG & Climate e d. |
Statutory audit. |
This report has been reviewed by AXA’s external auditors (PwC). This is a voluntary initiative. PwC’s limited assurance report can be found at the end of this report. Its fi ndings confi rm the robustness of our processes and underlying assumptions. |
05 AXA GROUP 2020 Climate Report June 2020 1. From COP21 to COP26: sciencebased guidance from policymakers. |
A robust scientifi c consensus. |
Science is clear: the IPCC (Intergovernmental Panel on Climate Change) Fifth “Assessment report”(1) presented evidence from the global scientific community that the Earth is warming at an unprecedented rate and that anthropogenic Greenhouse Gas (GHG) emissions are the main cause, in particular carbon dioxide. The likel... |
(1) https://www.ipcc.ch/report/ar5/syr/ (2) https://treaties.un.org/pages/ViewDetails.aspx?src=TREATY&mtdsg_no=XXVII-7-d&chapter=27&clang=_en (3) The IPCC 2018 report revealed for example that by 2100, sea level rise would be 10 cm lower in a “1.5°C world” compared with 2°C. Extreme heatwaves will be experienced by 14%... |
“Well below 2°C” |
The commitment to contain global warming to safe levels taken by 195 countries during COP21 in 2015. |
The Paris Agreement is the overarching framework and roadmap for climate action. |
Therefore, in Dec. 2015, d u r i n g CO P 2 1 , 1 9 5 countries gathered in Paris to negotiate and adopt the Paris Agreement(2). Countries that ratifi ed the agreement legally bound themselves to collectively hold warming to “well below 2°C compared to pre-industrial levels” (period before 1750) and pursue best eff ort... |
COP21 Paris Agreement Article 2: the key role of investors “This Agreement (…) aims to strengthen the global response to the threat of climate change (…) by: (a) Holding the increase in the global average temperature to well below 2°C above pre-industrial levels (…); (b) Increasing the ability to adapt to the adverse i... |
Context Box. |
As the Paris Agreement binds Governments to collectively hold warming below safe levels by reducing greenhouse gas emissions within specific thresholds and timeframes, it requires rapid and significant emissions reductions. This low carbon transition target will have significant consequences for the “real economy”, and... |
06 AXA GROUP 2020 Climate Report June 2020 1. From COP21 to COP26: science-based guidance from policymakers. |
COP26 – On the road to the “Glasgow Agreement” |
The COP21 Paris Agreement commits all parties to the agreement to develop a new and ramped up Nationally Determined Contributions (NDCs) every five years. This is why COP26(1) is a key COP meeting during which governments are expected to lead climate action with strengthened commitments, possibly in the form of a “Glas... |
In particular, the COP26 “Private Finance Agenda”(2), whose February 2020 launch was supported in-person by AXA’s CEO Thomas Buberl, is designed to “mobilise ambitious action from across the financial system needed to help achieve the 1.5°C goal of the Paris Agreement. This will include building the frameworks for fina... |
As developed in this report, AXA engages actively in this direction, and it is in this evolving context that AXA recently launched a new climate strategy. |
(1) Initially to be convened in Glasgow under UK presidency, in November 2020, but delayed by the Covid-19 crisis until 2021. (2) The Private Finance work is led by Mark Carney as “Finance Adviser” for COP26. In his previous role as Chair of the Financial Stability Board and Governor of the Bank of England, he warned a... |
(3) https://www.bankofengland.co.uk/-/media/boe/fi les/speech/2020/the-road-to-glasgow-speech-by-mark-carney.pdf?la=en&hash=DCA8689207770DCBBB179CBADBE3296F7982FDF5. |
Thomas Buberl at COP26 Launch event, February 2020. |
It is a real pleasure to bear witness to the ground - breaking engagement of AXA in addressing the risks of unabated global climate change. Not only has AXA been in the front of global eff orts for years, but they have recently deepened their understanding of both responsibility and opportunity by joining the Net-Zero ... |
Christiana Figueres, Founding Partner, Global Optimism & Former Executive Secretary, UN Climate Change Convention. |
“Well below 2°C” "pursue best eff orts to limit warming to 1.5°C by 2100" : the goal of the Paris Agreement. |
To ensure that every financial decision takes climate change into account. |
The COP26 Private Finance's agenda. |
07 AXA GROUP 2020 Climate Report June 2020 2. A new phase in AXA’s climate strategy. |
Climate change is a medium to long-term risk with a complex quantifi cation of impacts on our activities. AXA’s strategy is not only to adapt, but also to take advantage of our expertise to provide solutions. Indeed, we are well equipped to contribute to the understanding of climate change through our Risk Management e... |
As an insurer, we also have a responsibility to share knowledge about new risks. Through our underwriting decisions, we can also show the risks society is taking and foster prevention actions to mitigate them. Finally, through our signifi cant investments, we are also well positioned to send the right signals to the in... |
Our climate-related initiatives leverage every asset and expertise at our disposal: green investments, divestments and underwriting restrictions, products with environmental added value, climate resilience and adaptation solutions, risk modelling, impact investing, shareholder engagement, direct environmental footprint... |
We acted early and comprehensively. AXA first sounded the alarm when we said that “a 4°C world is not insurable”. By this we meant that runaway climate change will create risks so large that conventional market mechanisms may no longer be suitable. We also legitimized coal divestment in early 2015. Coal is by far the m... |
In 2019, AXA launched a new phase in its climate strategy during its “Climate Impact Day” event on November 27. |
Full-page advertisement in the Financial Times, November 2019. |
This new strategy features four main new developments, supporting the concept of aligning our business with the Paris Agreement: ❯ “Warming Potential” of our investments capped under 1.5°C by 2050. We joined the Net-Zero Asset Owner Alliance to support this commitment in a collective setting and lead the methodology-re... |
The implications of this new strategy, building on fi ve years of eff orts, are further described in this report. |
08 AXA GROUP 2020 Climate Report June 2020 3. TCFD guidance: Governance. |
In May 2020, AXA created a new internal structure to accelerate the Groups' ability to leverage its business model to respond to societal issues, with a strong focus on climate-related considerations. |
The RISSC is co-chaired by the Group Chief Risk & Investment Officer and the Group Head of Communication, Brand and Corporate Responsibility with the purpose of steering AXA Group’s role in society strategy, e.g. climate, sustainability and inclusive insurance, and reviewing all related material investment, underwritin... |
“Role in Society” Steering Committee. |
Group Investment Committee. |
ESG Footprint Committee ❯ Review the issuers and sectors challenged from an ESG perspective. |
❯ The Committee votes for: divestment, engagement or credit review, investment still allowed. |
RI Center of Expertise ❯ Empowered expert group presenting their recommendation to the RIC ❯ Monitor local implementation of RI policy ❯ Coordinate investment initiatives. |
AXA IM ❯ Participate in RIC and give guidance on RI Policy ❯ Provide ESG research ❯ Report annually on RI progress ❯ Take lead in supporting specifi c RI initiative. |
Local Chief Investment Offi cers ❯ Build entity-level RI action plans ❯ Review investment mandates. |
Group Corporate Responsibility ❯ Monitor RI trends ❯ Propose RI themes for study ❯ Manage relationship with NGOs. |
Responsible Investment Committee ❯ Defi ne, launch, implement and follow up on RI strategy ❯ Chaired by Group CIO + investment teams members, Corporate Responsibility, Risk Management, internal asset managers people in 10 teams. |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.