AXA Investment Management flags ESG framework
AXA Investment Management has announced plans to launch a new environmental, social and governance (ESG) framework in Australia next year.
The framework is being launched off the back of a white paper released this week, 'Piloting ESG integration'.
The company said its goal was to integrate ESG factors across the spectrum of its multi-billion dollar, multi-asset investment capabilities.
It said the new framework was just one of the outcomes of AXA IM's ongoing multi-year pilot study to fully embed ESG factors into its equity investment and active stewardship practices.
Commenting on the move, visiting AXA Investment Mangers' Paris-based global head of responsible investment Matt Christensen said investors, consultants, regulators and asset managers were paying greater attention to the importance of ESG factors.
He said a focus on short-term returns and benchmark tracking had previously hindered ESG integration, which was understandable as investment committees were faced with time constraints and governance responsibilities.
"This has led them to rely on fund managers to demonstrate how ESG factors add value to investment strategies," Christensen said.
"Investors benefit most when their managers connect investment and stewardship functions - research, engagement and voting - in order to create tangible value," he said.
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