Stockholm (NordSIP) – AXA Investment Managers announced Tuesday (April 25) its intention to divest €177 million from its fixed income portfolios as a consequence of its new coal policy, which targets companies deriving +50% of revenues from coal-related activities, effective June 30 2017.
The policy supplements existing AXA IM SRI policy and will apply to 99.5% of its €714 billion portfolio, and accounts for €165 of its fixed income portfolios and €12 million of its equities portfolios. It relates particularly to mining and electric utilities companies but excludes its multi-manager and index funds, alongside clients with segregated mandates who wish to opt out. AXA IM’s parent company AXA Group announced a €500 million divestment from coal in 2015.
“We strongly believe that divesting from coal can help to de-risk portfolios over the long term by decreasing exposure to assets that are likely to become ‘stranded’ in the future as the world moves to be in line with the +2 degree Celsius scenario,” said AXA IM Chief Executive Andrea Rossi, adding that asset managers have a crucial role to play in helping the transition to a low-carbon economy. “We want to engage with our clients, increasing awareness about the potential long-term risks related to the production and consumption of coal at current levels and encouraging investors to fully consider the long-term benefits of low-carbon portfolios,” he said.
“AXA IM has been committed to responsible investment for nearly 20 years. We have seen growing interest from clients in ESG and coal in particular and have actively been engaging with them on this,” added Matt Christensen, AXA IM Global Head of RI. “We believe that following COP21, the ratification of the Paris Agreement and growing momentum for fossil fuel divestment globally, now is the right time for AXA IM to make this move sending a strong message to the rest of our industry.”
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