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ESG Incentives for AXA IM Execs

AXA Investment Managers is including ESG targets in the remuneration of senior executives, as part of its commitment to being a net zero business and investor by 2050. To be paid in 2024, compensation for around 400 managers at the Paris-headquartered asset management firm will be partly determined by the firm’s progress against three ESG metrics, depending on the employee’s business area and remit. The three targets are: a 25% reduction in the weighted-average carbon intensity of the corporate portfolio; 50% of the real estate portfolio by AuM to be aligned with CRREM trajectories; and a 26% reduction in AXA IM’s operational CO2 footprint, all by 2025. The firm has also published ‘AXA IM for Progress Monitor’, a set of sustainability metrics which will sit alongside financial targets. Initially, there are eight metrics pertaining to net zero targets around decarbonisation, engagement and investments to accelerate the transition. Last week, the UK’s Financial Conduct Authority published a discussion paper to solicit feedback on how the governance, incentives and capabilities of regulated firms should support the integration of climate and sustainability commitments into business strategy. “As we further put sustainability at the heart of everything we do, we believe transparency and regular reporting on our progress and the challenges we may face is crucial,” said Marco Morelli, Executive Chairman of AXA IM.

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