Investment Manager Aligns Compensation of Senior Executives to its ESG Ambitions

As part of its commitment to becoming net zero as a business and investor by 2050, AXA Investment Managers (AXA IM) is now including ESG targets in the remuneration of its senior executives.

From 2023, the deferred compensation of about 400 people that will start to be paid in 2024 will include, alongside existing criteria, the following ESG metrics according to the employee’s business area and remit:

The weighted average carbon intensity (WACI) to reach the target of 25% reduction in carbon intensity for corporate portfolio by 2025: for the ESG part of the deferred compensation, this metric accounts for 75% for AXA IM Core and 37.5% for transversal functions employees in scope.

An assets under management (AUM) target for 50% of the real estate portfolio to be aligned to the CRREM1 trajectories by 2025: for the ESG part of the deferred compensation, this metric accounts for 75% for AXA IM Alts and 37.5% of transversal functions employees in scope.

The reduction of the corporate operational CO2 footprint, to reach the interim target to reduce it by 26% by 2025: for the ESG part of the deferred compensation, this metric accounts for 25% for all AXA IM Core, AXA IM Alts and transversal functions employees in scope.

This new policy is reflected in the “AXA IM for Progress Monitor” a set of metrics selected due to their material contribution towards AXA IM’s ambition of becoming a leading responsible asset manager.

“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. Our adjusted deferred remuneration policy is key to achieve our objectives and effect change, on the road to net zero and beyond.” said Marco Morelli, Executive Chairman of AXA IM.

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