AXA IM releases engagement data

Climate and corporate governance were the biggest areas of focus for the leading global asset manager, which ramped up its engagement activities by 14% on the previous year.

AXA Investment Managers, with €844 billion AUM, made 681 engagements with 503 entities in 2023, mainly in Europe and North America.

The reported €480 bn AUM classified as ESG, sustainable or impact funds at the end of December 2023.

200 of the total engagements were conducted either at board or C-suite level. The firm voted at 97.6% of meetings; a total of 54,782 proposals at 4,856 meetings.

Climate-related engagements represented 37% of overall engagements, compared to 28% in 2022 - and 61% of votes used specifically as engagement escalation.

The firm has a "Three strikes and you're out" policy on climate.

Corporate governance was the second most targeted theme (executive pay, board composition, and shareholder rights); 38% of climate-related engagements also addressed corporate governance issues, with a focus on board oversight and incentives.

Human capital engagements made up 17% of engagements, and biodiversity was 16%. AXA IM was part of the launch cohort in the Nature Action 100 program.

Other focus areas included the just transition, human rights in tech, and mental health in tech.

"Investment does not have to be a binary choice between sustainability and strong financial performance over the long-term. Clients need clarity on responsible investing and they also want to see their assets perform. Our 2023 Stewardship Report sets out how we work to meet both of these goals," said Marco Morelli, Executive Chairman at AXA IM.

"We believe that proper consideration of ESG factors is additive to performance, which is why a robust and measurable stewardship and engagement strategy is fundamental to our approach. I am confident that by maintaining the emphasis on transparency, commitment to a more sustainable future, and engagement with likeminded stakeholders, we will strengthen our ability to deliver sustainable long-term performance for our clients."