AXA Investment Managers has announced that it will divest from companies involved in the coal sector. Its parent company AXA already divested from coal in 2015.
AXA Investment Managers will divest from companies that derive more than 50 per cent of their revenues from coal-related activities, effective 30 June. According to a company statement, this applies specifically to mining and electric utilities companies.
The decision means that the asset manager will divest around EUR 165 million of fixed income portfolios and EUR 12 million of equities portfolios
The decision signals AXA IM’s commitment to the Paris Agreement and its target of keeping global warming to less than 2 degrees Celsius.
“Now is the right time for AXA IM to make this moving sending a strong message to the rest of our industry,” said Matt Christensen, Global Head of Responsible Investment at AXA IM.
As AXA IM explains in a statement, coal is the most carbon-intensive energy source and inconsistent with global efforts to stay below the 2 degree threshold.
“As a responsible investor and active steward of our clients’ assets, 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°C scenario,” said Andrea Rossi, CEO of AXA IM.
AXA IM’s parent company, the AXA Group, announced its EUR 500 million divestment from coal in May 2015.