AXA Reveals New Decarbonisation Targets and 2023 Climate and Biodiversity Report

For the first time, global insurance giant AXA is publishing its 2023 Climate & Biodiversity report and has also announced new decarbonisation targets for both its insurance and investment portfolios.

Specifically, AXA has set targets to increase its business in the field of renewable energies, and more broadly across sectors transitioning to low-carbon business models, as well as developing environmentally sustainable claims management for its motor business by 2026.

It also plans to reduce the carbon intensity of the most material personal motor portfolios in the Group by 20% by 2030 compared with the 2019 baseline and reduce the absolute carbon emissions of the Group’s largest commercial insurance clients by 30%, and the carbon intensity of other corporate clients by 20% by 2030 compared with a 2021 baseline.

The insurer said it is will be targeting a stronger dialogue with its customers, particularly its corporate customers, but also with its external stakeholders and partners to better support them in the transition.

These targets are based on new calculation methodologies developed and promoted by the sector. AXA said it expects these methodologies to evolve as data availability improves, but they are a first step to better steer the carbon impact of the firm’s insurance portfolios. 

Climate and Biodiversity

AXA also announced it is continuing its efforts to reduce the carbon footprint of its investment activities. After setting a target of reducing the carbon footprint of AXA’s general account assets by 20% between 2019 and 2025, AXA is setting a new target of a 50% reduction between 2019 and 2030. AXA also intends to strengthen its engagement activities and its efforts to finance the transition.

The insurer also published the 8th edition of its Climate & Biodiversity Report. In this report, AXA highlights the different dimensions of its action on climate and biodiversity: governance, strategy, risk management, and quantified indicators of the impact of its actions.

One of the main indicators of the report, “The Group portfolio’s implied temperature rise”, measures the impact of the corporate bonds and equities held in the Group’s general account portfolios on global warming by 2050. It stands at 2.5°C in 2022, down 0.1°C from last year using the same methodology, and remains below the market (2.7°C).

Thomas Buberl, Chief Executive Officer of AXA remarked: These targets demonstrate our determination to pursue our commitment towards climate change. As insurers, we see the increasing risks that climate change and the loss of biodiversity pose to our economies and societies, and how they are intensifying. We will continue engaging with our clients and our stakeholders leveraging all the levers at our disposal, from prevention to investment, from the financing of scientific research to insurance, as well as partnerships and collaboration with private and public players.”