Global asset manager AXA Investment Managers (AXA IM) announced today that it has updated its corporate governance and voting policy with more stringent ESG expectations for companies, including a commitment to target high-emitting companies that lobby against the objectives of the ESG Agreement. Paris.
According to AXA IM, the new policy comes amid an intensifying political backlash against climate-related regulation, contrasting with the urgent need for effective political intervention to enable a fair and orderly transition, highlighting the importance of the issues climate lobbying.
Under the new policy, AXA IM said it will request disclosure of climate lobbying activities to ensure consistency with companies' publicly stated objectives, and will vote against companies with high emissions that do not adequately report on these activities.
Clemence Humeau, Head of Sustainability Coordination and Governance at AXA IM, said:
“During this 2024 voting season, with governments and political action at the forefront of the energy transition, climate lobbying by companies invested in high-impact sectors will, inter alia, be a reinforced area of focus to ensure consistency between stated objectives publicly and the corporate lobby. .”
The announcement marks a further strengthening of AXA IM's ESG expectations for companies, following the company's introduction in 2022 of a voting policy that aims to urge portfolio companies to consider environmental and social issues, including setting a timeline for divest from climate laggards who fail to make sufficient progress, and requirements that incentive payments to senior management incorporate ESG and climate elements.
In addition to the climate lobby's expectations, other key changes announced by AXA IM to its policy included advocating for fairer pay structures, with the company not supporting pay increases for senior executives when the increases appear to be greater than those for the workforce. work in general, and opposing statutory changes that introduce virtual-only general meetings, which AXA IM said could diminish shareholders' ability to participate effectively and engage the board.
AXA IM also announced a commitment to begin disclosing the rationale for all votes against ESG-related shareholder proposals, noting that in 2023 it supported 68% of all such resolutions.
Humeau said:
“As part of our responsible investor commitments, we remain committed to regularly evolving our practices and policies over time and recognize the need for real economy policies to further support the transition to a net-zero emissions world.”
