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 pledge to target high emissions companies lobbying against the goals of the Paris Agreement.
According to AXA IM, the new policy comes amidst an intensifying political backlash against climate-related regulation, contrasting with the urgent need for effective policy intervention to enable a just and orderly transition, highlighting the importance of climate lobbying issues.
In addition to the climate lobbying expectations, other key changes announced by AXA IM to its policy included advocating for fairer compensation structures, with the firm not supporting pay increases for senior executives when the increases appear to be higher than those for the wider workforce, and opposing bylaw amendments introducing virtual-only AGMs, which AXA IM said may diminish the ability of shareholders to effectively participate 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.
The announcement marks a further strengthening of AXA IM’s ESG expectations for companies, following the introduction by the firm in 2022 of a voting policy aimed at urging portfolio companies to consider environmental and social issues, including setting a timeline to divest from climate laggards that fail to make sufficient progress, and requirements for senior management incentive pay to incorporate ESG and climate elements.
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