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1、A X A G r o u pJune,2023In line with Article 29 of Frances Energy-Climate law and recommendations from the Task Force on Climate-Related Financial Disclosures and the Taskforce on Nature-related Financial Disclosures2 0 2 3 Climate and Biodiversity Report AXA GROUP 2023 Climate and Biodiversity Repo

2、rt02Report structureSince 2015,AXA has published an annual Climate Report.1 AXAs 2023 Climate and Biodiversity Report(the“Report”)describes AXAs responsible investment and insurance initiatives taking into account two different frameworks:-The French mandatory disclosure requirements of Article 29 o

3、f Law No.2019-1147 of November 8,2019(“Article 29”),2 which considers environmental,as well as social and governance(ESG)matters,and amends and supplements the Article 1733 framework referred to in previous years reports.Since becoming a licensed reinsurer of life and property&casualty business in 2

4、022,AXA S.A.is subject to the disclosure requirements set out in the French regulations implementing Article 29 on a standalone basis;-The voluntary disclosure recommendations of the Task Force on Climate-Related Financial Disclosures.1.Past Climate Reports are available on .2.Article 29 of Law No.2

5、019-1147 dated November 8,2019,on energy and climate and Decree No.2021-663 dated May 27,20213.Article 173-VI of Law No.2015-992 dated August 17,2015,on the energy transition for green growth4.AXAs 2022“Universal Registration Document”for the year ended December 31,2022(“Annual Report”)was published

6、 in March 2023.The Report follows the French Prudential Supervision and Resolution Authoritys(ACPRs)Instruction n 2022-I-24(and all relevant annexes)with respect to the form and content of documents to be published annually by insurance organizations and supplementary occupational pension organizati

7、ons subject to the provisions of Article 29(the“Instruction”).Certain sections of the Report are also included in AXAs 2022 Universal Registration Document(“AXAs 2022 Universal Registration Document”or the“Annual Report”).4Preliminary informationIn the Report,unless provided otherwise,(i)the“Company

8、,”“AXA”and“AXA S.A.”refer to AXA,a socit anonyme(a French public limited company)organized under the laws of France,which is the publicly traded parent Company of the AXA Group,(ii)“AXA Group,”the“Group”and“we”refer to AXA S.A.together with its direct and indirect consolidated subsidiaries,and(iii)“

9、ESG”and“sustainability,”used in the context of describing criteria,risks or objectives,refer to environmental,social and governance matters.Where reference is made to a website in the Report,the contents of such website do not form part of the Report.No information,document or material from the webs

10、ite of the Company()or any other source shall form part of the Report,unless such information,document or material is expressly incorporated by reference into the Report.AXAs external auditors(PwC)have issued an independent limited assurance report,on certain information in this Report,which can be

11、found at the end of this Report.Table of contentsEditorial .03Executive summary.04Context.06a.AXA Groups general approach to the consideration of environmental,social and governance criteria.08b.Internal resources deployed by AXA Group.10c.Approach to the consideration of environmental,social and go

12、vernance criteria at the level of AXA Groups governance.11d.AXA Groups engagement strategy with issuers and management companies,and its implementation .13e.The EU taxonomy and fossil fuels.18f.AXA Groups strategy for alignment with the objectives of the Paris Agreement.19g.AXA Groups strategy for a

13、lignment with long-term biodiversity goals and related targets .31h.AXA Groups approach to integrating environmental,social and governance criteria into risk management .34i.List of financial products referred to under Sections 8 and 9 of the Sustainable Finance Disclosure Regulation(SFDR).40Appendi

14、x.42Independent Limited Assurance Report(PwC).46Disclaimer.48Report development and coordination:AXA Group Sustainability-Roslyn Stein,Silvestre Mazin.Photo credits:Franck Juery,Getty Images,Shutterstock,DR.Design and production:03Editorial Keeping the pace of the net-zero transition:all stakeholder

15、s have a role to play Thomas BuberlAXA Chief Executive OfficerPositive signs of transition Over the last twelve months,there have been positive signs from governments in several key markets,with announcements of concrete measures to support the transition to less carbon-intensive energy sources,part

16、icularly wind and solar.In the U.S.,the Inflation Reduction Act signed into law in August 2022 is the largest piece of federal legislation ever to address climate change.The largest part of the roughly$400 billion package will be allocated to initiatives in the energy sector,including electricity ge

17、neration and transmission.Such investments in energy infrastructure will be essential to ensure energy supply and consumption are compatible with broader decarbonization objectives.Closer to home in the EU,measures have been announced to respond to increased competition in order to attract investmen

18、t and finance new technologies.Initiatives such as the REPowerEU Plan,designed to reduce Europes dependence on Russian fossil fuels and accelerate the green transition,and the newly reformed EU Emissions Trading System,the worlds largest carbon market,will increase pressure on decarbonization effort

19、s in the real economy.According to the International Energy Agency,global investment in renewables overtook investment in oil&gas in 2022.China accounts for half of all new solar and wind capacity installation and is growing faster than any other market.Despite these positive signs,investments in em

20、erging and developing economies remain insufficient.Ongoing dialogues between governments,multilateral agencies and the private sector must find appropriate and agile ways to ensure the most vulnerable are not left behind.Investments will also need to support strong adaptation and resilience agendas

21、.Overall,the actions we have observed over the last twelve months and the subsequent reaction from the market affirm the necessary and impactful role of governments to set the pace and direction of the energy transition.Future actions will need to continue to address the demand side of energy consum

22、ption.Growing global momentum for NatureSignificant progress has also been made to support action to reduce nature loss.The Montreal-Kunming Global Biodiversity Framework adopted at the COP15 in December 2022 has created strong foundations regarding a global architecture for action on nature,complem

23、enting the Paris Agreement for climate action.In addition to government-led initiatives,there are also positive signs from the market that novel financial instruments can help increase capital flows.Innovation from investors and insurers can support initiatives that protect both livelihoods and natu

24、re conservation.Transactions can take different forms,whether it be through direct investments,blended finance instruments,and public-private partnerships.Market-led initiatives continue to contribute to global standardsMuch has happened since the launch of the G20s Task Force on Climate-related Fin

25、ancial Disclosures(TCFD)in 2015.The TCFDs recommendations have since become an essential reference globally for climate disclosures.In similar form,the Taskforce on Nature-related Financial Disclosures(TNFD)has made progress towards delivering a market-led approach to integrating nature into the lex

26、icon.The finalization of the TNFD framework in late 2023 will hopefully support greater awareness of the challenges related to nature loss.While such market-led initiatives have set the scene,policy makers are now setting the tone.The arrival of the EU Corporate Sustainability Reporting Directive wi

27、ll have implications for all companies doing business in the EU.Across the Atlantic,future rules from the U.S.SEC also have the potential to further mainstream climate-related disclosures in the worlds largest market economy.The finalization of ISSB standards in 2023 will also support standards for

28、extra-financial information.As we move from voluntary to regulatory standards,it is incumbent on all market participants to participate constructively in dialogue and share practices to help create a level playing field.AXA continues to report on progressThis Climate and Biodiversity Report has been

29、 prepared in the spirit of increased transparency and to respond to evolving expectations and needs from different stakeholders.In this Report,we wish to balance expectations related to the standardization of data with relevant,decision-useful information for our investors.Ultimately,through our dis

30、closures,we aim to facilitate dialogue with all our stakeholders on climate and biodiversity-related risks and opportunities.We continue to report strong progress against our green investment target,reaching 25.1 billion at the end of 2022,and we are on track to achieve 26 billion in green investmen

31、ts by the end of 2023.We continue to explore forward-looking metrics as methodologies simultaneously evolve.While there are limitations to such methodologies,according to our analysis the Implied Temperature Rise of AXA Groups Corporate bonds and equities sits at 2.5C at the end of 2022.We are also

32、pleased to share information in this Report about AXA Groups new intermediate objectives for investment and insurance activities to 2030.This report also contains the first biodiversity footprint analysis.AXA continues to work with partners to strengthen these tools to support ongoing integration of

33、 nature-related financial disclosures in the coming years.We will continue to support the TNFD to help build understanding and consensus on tools available to corporates and investors to support future actions including target setting.Looking aheadConsidering the positive steps we have seen from gov

34、ernments in several markets over the last twelve months,we have reason to be optimistic.Over the longer term,stable operating environments and leadership from all actors will be necessary for ongoing decarbonization efforts.Voluntary climate action from corporate and financial institutions will cont

35、inue to play a role,when accompanied by appropriate transparency on targets and progress.As an insurer and investor who aims to support clients exposed to climate-related risks and opportunities,we will continue to take a responsible,long-term view,work with others to define tools to be in a better

36、position to understand the risks,and act upon them and prevent them when we can.AXA GROUP 2023 Climate and Biodiversity Report04Executive summaryAXAGroup portfolios warming potential C Government bondsAXAGroup portfolios implied temperature rise2 C Corporate bonds&equitiesAXAGroups fossil fuel expos

37、ure Reduce the carbon footprint of AXAGroup General Account assets by 2025 -3 5%Achieved between 2019 and 20221-2 0%Target for 2025 vs.2019Maintain AXAGroups leadership as a responsible company 9 1/1 0 0CSA-DJSI3Reach 26Bn in green investments by 2023 2 5.1 B n2022 2 6 B nTarget for 2023Reach at lea

38、st 1.7Bn in premiums on green business products and services by 20234 1.4 B n2021 1.7 B n2022AXAGroups investments in forests 9 3 2 mFY 2022 1 B nTargetTrain AXA employees5 in climate issues 8 7%20221 0 0%Target for 2023Benchmark2.5 CFY 2022AXAGroup portfolios2.0 CBenchmark2.7 CFY 2022AXAGroup Portf

39、olio2.5 C1.These results are subject to volatility linked to the evolution of industry carbon emissions,financial market performance and coverage of issuers AXA Group has invested in that may evolve over time.AXA Groups priority is to achieve a-20%carbon footprint reduction target by 2025 with 2019

40、as the base year.2.Data available from FY 2021 onwards based on the Implied Temperature Rise methodology applied on corporate bond&equities asset class.3.2022 edition of the S&P Corporate Sustainability Assessment(CSA),which measures companies sustainability performance.Top performers can be include

41、d in the Dow Jones Sustainability Indices(DJSI).4.Based on its strong performance in 2022,AXA Group decided to set a more ambitious target,with a 1.7 billion floor for 2023.5.Share of permanent employees within the scope of AXA Groups Social Data Report(SDR)who have been trained in climate issues,co

42、mpleting the AXA Climate Academy or a similar local initiative,excluding newcomers and people on a long-term leave(according to local management rules).Assets Under Management (General Account assets)%of Assets Under Management(General Account assets)Coal1.7Bn0.4%Overall oil&gas3.7Bn0.8%Unconvention

43、al oil&gas0.7Bn0.1%Climate and Biodiversity metrics covered by a limited assurance conclusion,please refer to Section“Independent Limited Assurance Report(PwC)”for details.AXA GROUP 2023 Climate and Biodiversity Report06AXAs key climate&biodiversity commitments in contextMarket/political context&mil

44、estones20 1 420182 0 1 520017AXAs commitmentsContext 2012-2013 food riots Palm oil policy COP21 Paris Agreement“well below 2C”target,enshrines role of investors G7 Summit in France EU Green Deal(EU)COP26 postponed due to Covid-19 TCFD guidelines finalized U.S.Government withdrew from Pari

45、s Agreement First One Planet Summit TCFD launch First divestment from coal First green investment target AXA vice-chairs TCFD AXAs Climate Report wins top award Strengthened coal divestment criteria Coal policy extended to insurance underwriting Oil sands investment and underwriting restrictions Und

46、erwriting restrictions extended to newly acquired AXA XL Creation of AXA Climate to address climate resilience Act4Nature pledge New climate strategy:-1.5C by 2050-24 billion green investments-Transition bonds-Coal phase-out Net-Zero Asset Owner Alliance AXA-WWF“Into the Wild”Report Climate&Biodiver

47、sity Impact Investment Fund TCFD membership renewal Climate leadership integrated into 2023 strategy plan Commitment to reduce investment carbon footprint by 20%by 2025 New 100 million investment in transition bonds issued by BPCE Climate&Biodiversity Impact Investment Fund size doubled to US$350 mi

48、llion AXA calls for the creation of Net-Zero Insurance Alliance 3-year partnership with WWF focused on biodiversity Joined the Business for Nature and Finance for Biodiversity initiatives Led Informal Working Groups Governance workstream to create TNFD0720 2 1203020 2 220352 0 2 32 024204020252050 T

49、he U.S.rejoins the Paris Agreement U.S.-led Leaders Summit on Climate Glasgow Financial Alliance for Net Zero(GFANZ)launch COP26(Glasgow)UN Biodiversity Conference(CBD COP 15)(Part 1)TNFD launch IPBES-IPCC Report on Biodiversity and Climate Change COP 15 Kunming-Montreal Framework U.S.Inflation Redu

50、ction Act SEC rules on climate-related disclosures for investors ISSB launch IPCC AR6 report Net-zero macro-targets:carbon sinks must offset residual carbon emissions AXA S.A.s inaugural Green Bond issuance(1 billion)Green Investment target increased to 26 billion by 2023 Ecosystem Protection,Defore

51、station and Natural World Heritage Sites policy Oil and gas exclusions to support the energy transition 1.5 billion forestry investment objectiveOperational carbon footprintGreen Investment targetGreen Business&Inclusive Protection targetInvestment carbon footprintEU/OECD coal phase-out Rest-of-worl

52、d coal phase-outUnderwriting carbon footprintInvestment warming potential Green Business&Inclusive Protection insurance targets Summit for a New Global Financing Pact,Paris New investment and underwriting commitmentsAXA GROUP 2023 Climate and Biodiversity Report08a.AXA Groups general approach to the

53、 consideration of environmental,social and governance criteriaGeneral approach to the consideration of ESG criteriaAs one of the largest global insurers,AXAs purpose is to act for human progress by protecting what matters.AXA Groups overall sustainability strategy aims to fulfill two main goals:act

54、as a leading force against climate change,and expand AXAs health and protection businesses as an inclusive insurer.In 2021,the Group started a new strategic cycle,with the Driving Progress 2023 strategic plan.Recognizing the fundamental importance of ESG for the Groups business and its customers,the

55、 Management Committee of AXA S.A.dedicated a pillar of this strategic plan to the Groups(including AXA S.A.s)ESG ambition:“Sustain our climate leadership position.”All lines of business are therefore concerned by this priority and as an investor,insurer and global corporate actor,the Group is well p

56、ositioned to promote its ESG ambitions.To make AXAs purpose tangible for all its teams,the Group launched the AXA For Progress Index in April 2021.This index is designed to measure and track progress in rolling out AXAs purpose across all AXA activities.It is a set of seven commitments translated in

57、to targets and shared across the Group to further embed sustainable development in its activities:as an investor,insurer and exemplary company.Please refer to Section 4.1 of AXAs 2022 Universal Registration Document(“A new stage in AXA Groups sustainable development strategy”)for more details.Source

58、:AXA.09Investment approachAXA S.A.s investment portfolio follows the Groups responsible investment strategy.The Group defines responsible investment(RI)as the integration of ESG considerations into investment processes,including ownership practices.Thus,the Groups objective is to align investments w

59、ith its sustainability agenda of protecting people over the long term and creating stronger and more sustainable societies.This agenda is in line with its interests 1.AXA was also a founding member and the Chair of the Net-Zero Insurance Alliance until May 2023,when it decided to discontinue its mem

60、bership and continue its sustainability journey individually.as a global insurer and investor,as well as the interests of its policy holders,shareholders,and other stakeholders.To this end,the Group has developed a global RI strategy covering its General Account assets and its unit-linked offering,w

61、here relevant.Please refer to Section 4.3 of AXAs 2022 Universal Registration Document(“Climate and biodiversity matters as an investor”)for the year ended 31 December 2022 for more details.Communication with external stakeholdersAXA Group is a long-term global investor with a duty to act in the bes

62、t interests of its policyholders,shareholders and other stakeholders.AXA Group has a comprehensive Responsible Investment Policy that is communicated and available to all stakeholders on the AXA Group website.The Responsible Investment Policy sets out the criteria AXA Group takes into account in res

63、ponsible investment and how AXA Groups third-party asset managers,principally AXA Investment Managers (AXA IM),are required to follow the Responsible Investment Policy when managing assets on behalf of AXA Group.Consideration of ESG criteria in the allocation of new management mandatesAXA Groups ass

64、et management activities are principally carried out by AXA IM on behalf of the Group.In relation to investments into funds managed by non-Group asset managers,AXA Group endeavours to select non-Group asset managers that agree to comply with the restrictions and sensitive investments guidelines of t

65、he Responsible Investment Policy.Additionally,AXA Group encourages delegated non-Group asset managers to integrate further ESG considerations into their investment decision-making as well as to be signatories of the UN Principles for Responsible Investment.ESG-related outreach and engagementAXA Grou

66、p,including AXA S.A.,participates in several climate,biodiversity and ESG initiatives.These include the following initiatives,detailed in the Appendix to the Report:the Task Force on Climate-Related Financial Disclosures(TCFD),the Task Force on Nature related Financial Disclosures(TNFD),the Glasgow

67、Financial Alliance for Net Zero(GFANZ)via the Net-Zero Asset Owner Alliance(NZAOA),and the Net Zero Asset Managers Initiative(NZAMI),the Ocean Risk and Resilience Action Alliance(ORRAA),the Sustainable Blue Economy Finance Initiative,the Climate Finance Leadership Initiative(CFLI),the Alliance of CE

68、O Climate Leaders,and the Insurance Development Forum(IDF).1Biodiversity-related pledges supported by AXA Group include:Act4Nature,the Business For Nature coalition,the Finance for Biodiversity Foundation,and the Financial Sector Commitment on Eliminating Agricultural Commodity-Driven Deforestation

69、at COP26(the Finance Sector Deforestation Action initiative).AXA Group also supported the joint statement on the creation of a Global Blue Carbon Coalition at the One Ocean Summit,held in Brest in February2022.Over the years,AXA Group has lent support to some of the largest investor-and insurer-led

70、coalitions,including:UN PRI,the UNEP FI Principle for Sustainable Insurance(PSI),the UN Global Compact,the CDP,ORSE,EpE and Institut de la finance durable.AXAs engagement with the companies it invests in,either directly or via AXA IM,are explained in Chapter D.AXA GROUP 2023 Climate and Biodiversity

71、 Report10b.Internal resources deployed by AXA GroupInternal means dedicated to the consideration of ESG criteria in the investment strategy1.Share of permanent employees within the scope of AXA Groups Social Data Report(SDR)who have been trained in climate issues,completing the AXA Climate Academy o

72、r a similar local initiative,excluding newcomers and people on a long-term leave(according to local management rules).As set out in Chapter A,the Management Committee of AXA S.A.has dedicated a pillar of the current strategic plan to the Groups(including AXA S.A.s)ESG ambition:“Sustain our Climate l

73、eadership position.”All lines of business are therefore concerned by this priority,and work relating to ESG matters is integrated on a day-to-day basis into many of the Groups functions.The Group Sustainability team supports AXAs long-term strategy by leveraging the Groups expertise and network.In a

74、ddition to the Group Sustainability team,more than 30 entities of the AXA Group have local sustainability teams comprised of 1 to 6 full-time equivalents.Among its responsibilities,the Group Sustainability team coordinates the strategy relating to the integration of ESG criteria in the Groups invest

75、ment and underwriting strategies with other Group-level functions and concerned entities.In addition,the Group Sustainability team works with other Group-level functions,including Group Risk Management,Group Legal,and Group Investment,as well as other senior management,on sustainability matters rele

76、vant to AXA Group,and participates in governance bodies described in Chapter C.This team reports to the Chief Communications,Brand and Sustainability Officer,who is a member of the Management Committee.The Group Investment team has a team dedicated to responsible investment matters.In coordination w

77、ith the Group Sustainability and Group Credit teams,the responsible investment team aims at implementing the overall ESG strategy within the investment processes,in line with the Responsible Investment Policy.The Groups asset management activities are carried out by AXAs investment manager,AXA Inves

78、tment Managers(AXA IM)on behalf of the Group,alongside other activities AXA IM undertakes for third party clients.AXA IM dedicates human and technical resources to the consideration of ESG criteria on behalf of its clients,including AXA Group.AXA Group uses external data providers,including in the a

79、nalysis of its Responsible Investment Policy and investment and insurance guidelines.Please refer to Chapter F of this report for information on data providers used for climate metrics.Actions implemented to strengthen internal capacityAXA Group(including AXA S.A.)has committed to training all its e

80、mployees on climate change by the end of 2023.To achieve this,the Group launched the AXA Climate Academy near the end of 2021.This is a learning program designed to give employees better awareness and understanding of the science behind climate change.It covers why climate change is a growing concer

81、n for companies and their stakeholders,the main types of climate change risks,and how climate change impacts the whole value chain for insurance and investments.The program is available in 11 languages and includes a series of bite-sized learning videos and activities.The final module is a guide to

82、the concrete actions that teams can take collectively and individually to combat climate change.The bulk of the AXA Climate Academy rollout happened in 2022 and,as of December 2022,87%1 of AXA employees were certified(including sales representatives).Please refer to Section 4.2 of AXAs 2022 Universa

83、l Registration Document(“Employer Responsibility AXA Climate Academy”)for more details.11c.Approach to the consideration of environmental,social and governance criteria at the level of AXA Groups governanceGovernance bodies dedicated to the consideration of ESG criteriaAXA Group has put in place a d

84、edicated governance framework for the Group(including AXA S.A.)to develop and implement its sustainability strategy.AXAs Board of Directors and its Committees play a major role in this framework by reviewing sustainability matters for the Group,including the Groups sustainability strategy and disclo

85、sures.In 2022,given the increasing number of strategic and regulatory sustainability matters,the AXA Board of Directors undertook a comprehensive review of its governance on sustainability matters to clarify the duties of each Board Committee and ensure regular inclusion of sustainability matters on

86、 Board and Committee agendas.Consequently,the AXA Board of Directors decided to update its Terms of Reference,notably to rename the Compensation&Governance Committee as the Compensation,Governance&Sustainability Committee to underline its leading role on sustainability matters and specifying each Co

87、mmittees duties on these subjects.The Board of Directors is assisted by three Committees:the Audit Committee,the Finance&Risk Committee and the Compensation,Governance&Sustainability Committee.The Board of Directors(i)Compensation,Governance&Sustainability Committee reviews,at least once a year,the

88、Groups sustainability strategy as well as material sustainability-related commitments disclosed publicly and reports to the Board of Directors in this regard,(ii)the Audit Committee monitors the process for the preparation and control of the Groups extra-financial information and reviews the Groups

89、extra-financial performance statement and AXA S.A.s Climate&Biodiversity Report,and(iii)the Finance&Risk Committee reviews the Groups risk appetite framework for extra-financial exposures,as well as its responsible investment policy.At the executive level,the Groups Management Committee has a role i

90、n overseeing material sustainability-related initiatives across the Group.The Group Management Committee is supported by the Role in Society Steering Committee(RISSC).This Committee is charged with reviewing material sustainability-related issues faced by the Group as well as monitoring material sus

91、tainability-related initiatives across the Group.The RISSC meets monthly and is co-chaired by the Group Chief Risk Officer,Group Chief Investment Officer and Group Chief Communication,Brand and Sustainability Officer.The RISSC reports back to the Group Management Committee on a regular basis concern

92、ing material sustainability-related decisions taken or to be taken and issues considered on which Group Management Committees guidance and/or decisions are needed.The Audit Risk and Compliance Committee(ARCC)is charged with reviewing all material audit,risk and compliance issues,faced by the Group.T

93、he ARCC meets monthly and is chaired by the Group General Counsel.It reports back to the Group Management Committee on a regular basis concerning material sustainability-related risks faced by the Group and mandatory sustainability-related reporting.As described in Chapter A(“Investment approach”),t

94、he Group has developed a global RI strategy covering its General Account assets and its unit-linked offering,where relevant.The implementation of this strategy is overseen by a specific RI governance,the Groups Responsible Investment Committee(RIC),which is chaired by the Groups Chief Investment Off

95、icer and includes representatives from AXAs asset managers,Sustainable Development,Risk Management and Communications teams.Ultimately,the RIC reports to the Group Investment Committee,chaired by the Group Chief Financial Officer,and sensitive and/or strategic climate finance-related decisions debat

96、ed in the RIC are approved by the RISSC.The Groups RI strategy is supported by the RI Center of Expertise,a cross-functional working group which includes representatives from AXA Groups local investment teams and sustainability network.Insurance-related ESG risks and opportunities also benefit from

97、specific governance,notably the Group Underwriting Committee(GUC),which defines underwriting restrictions.Similar to investments,sensitive and/or strategic Climate-related decisions debated in the GUC are ultimately approved by the RISSC.In addition,a dedicated team within Group Risk Management anal

98、yzes emerging risks,which often relate to long-term ESG issues,and monitors their potential impact.The Group Emerging Risk Steering Board issues recommendations to adapt AXAs business offer and underwriting policies.Please refer to Section 4.1 of AXAs 2022 Universal Registration Document(“AXA Groups

99、 Sustainability Strategy Sustainability governance&Stakeholder dialogue”)for more details.AXA GROUP 2023 Climate and Biodiversity Report12Compensation policies concerning the integration of sustainability risksTo engage employees in its purpose and maintain its leadership position in sustainability,

100、AXA Group keeps building environmental,social,and governance(ESG)criteria into its Total Rewards compensation policy.The Group has reinforced the importance of sustainability within its culture and values through short-term and long-term incentives,which also apply to AXA S.A.:The Global Leadership

101、Network(top 250 executives)are assessed on qualitative climate and diversity objectives,which are included in their annual target letters;A quantitative climate objective is included in the AXA Group performance grid(a reduction in the carbon footprint of the Groups General Account assets,weighting

102、for 15%),impacting around 2,000 employees variable remuneration;Long-term incentives(LTI)include ESG criteria covering a population of around 6,000 employees every year,(i)in performance shares plans,sustainability criteria including a reduction in the carbon emissions from the Groups operations,AXA

103、s ranking in the S&P Global Corporate Sustainability Assessment(CSA)and increase of the proportion of women among the Groups senior executives,weighting for 30%;and(ii)in restricted shares plans,sustainability criteria linked to AXA ranking in the S&P Global CSA.This LTI approach positions AXA as on

104、e of the leaders on ESG integration in compensation.AXA Groups ambition is also to increase the weight of sustainability criteria in profit sharing agreements(prevalent in certain European countries,impacting over 20,000 employees every year)to 30%by 2023.At the same time,the Group will ensure that

105、employees are empowered to personally take tangible inclusive action.In 2022,around 60%of France-based AXA entities had profit-sharing schemes with at least 20%of performance conditions being related to ESG.Please refer to Section 4.1 of AXAs 2022 Universal Registration Document(“AXA Groups Sustaina

106、bility Strategy A new stage in AXA Groups sustainable development strategy”)for more details.Integration of ESG criteria into Board governanceThe Board of Directors is assisted by three Committees:the Audit Committee,the Finance&Risk Committee and the Compensation,Governance&Sustainability Committee

107、.To ensure a more thorough monitoring of both risks and AXAs sustainability strategy,in 2022,the Board Committees were reorganized as follows:the Finance Committee became the Finance&Risk Committee,and the Compensation&Governance Committee became the Compensation,Governance&Sustainability Committee.

108、To ensure well-balanced governance,the Boards Terms of Reference specifically provide,in addition to French legal requirements,that independent directors play a major role in all Board Committees,as follows:Each Committee is chaired by an independent director;All members of the Audit Committee are i

109、ndependent directors;All members of the Compensation,Governance&Sustainability Committee are independent directors,except for the director representing the employees who sits on the Committee pursuant to AFEP-MEDEF recommendations;and None of AXA Groups executive officers may be members of its Commi

110、ttees.Each Committee issues opinions,proposals or recommendations to the Board of Directors on matters within the scope of its responsibilities,with each Committee Chairman reporting to the Board at the following Board meeting.However,under French law,Board Committees do not have any formal decision

111、-making power and are advisory only.The Committees may request external consulting expertise if necessary.They may also invite external participants to attend their meetings.All Committees are composed of members with expertise in the relevant areas,and their composition is regularly reviewed by the

112、 Board of Directors.Since April 27,2023,the Compensation,Governance&Sustainability Committee has been comprised of five members:Mr.Guillaume Faury(Chairman),Ms.Bettina Cramm,Ms.Rachel Duan,Ms.Marie-France Tschudin and Mr.Andr Franois-Poncet,who are independent directors except for Ms.Bettina Cramm,w

113、ho is the director representing employees.The main functions of the Compensation,Governance&Sustainability Committee are:To issue proposals to the Board of Directors on:recommendations to the Shareholders Meeting for the appointment and the reappointment of members of the Board of Directors,the comp

114、osition of the Board Committees,and the appointment of the Chairman,the Senior Independent Director,the members of the Executive Management and the persons who effectively run the Company as defined under the Solvency II regulations;To issue proposals to the Board of Directors on:the compensation of

115、 the Chairman of the Board of Directors and the Chief Executive Officer and the preparation of their annual assessments,the Chief Executive Officers Group and individual performance conditions(financial and extra-financial)with the associated targets used to determine annual variable compensation;th

116、e amount of the directors compensation(directors fees)for the members of the Board of Directors to be submitted to the Shareholders Meeting,the number of Company performance shares to be granted to the Chief Executive Officer and the other members of the Management Committee,as well as related perfo

117、rmance conditions(financial and extra-financial);To formulate an opinion on the Chief Executive Officers proposals concerning:the principles and conditions for determining the compensation of AXA Groups main executives,the overall annual allocation of Company performance/restricted shares to employe

118、es of the AXA Group;To review,at least annually,the Groups sustainability strategy as well as any material sustainability commitments(and updates thereto)to be disclosed publicly;To review certain Group human resources matters,including the annual review of the Companys policy with respect to profes

119、sional equality and equal pay;To review certain governance matters relating to the operation and organization of the Board of Directors and the organization of its periodic self-assessment;and To review the AXA Compliance&Ethics Code.13d.AXA Groups engagement strategy with issuers and management com

120、panies,and its implementation Presentation of the engagement strategyAs a shareholder and/or bondholder,AXA Group engages with the management of the companies in which it invests.Such engagement is either done by AXA Groups Credit Research Team directly or by AXA IM according to AXA IMs own engageme

121、nt policy when AXA IM is appointed as AXAs manager.AXA Groups Credit Research Team conducts regular outreach with the top management of the issuers in which AXA Group has its largest investment exposure.These meetings offer an opportunity to review and discuss issuers strategy,including on ESG,non-p

122、ublicly.As part of AXA Groups NZAOA commitments,the AXA Group Credit Research Team has also extended its engagement on Net Zero trajectories with issuers that have the largest greenhouse gases footprint in AXA Groups portfolio.Separately,AXA IM,as AXAs manager,engages directly with investee companie

123、s,and as part of a coalition of investors,with companies in key sectors.AXA IM has a thematic approach to engagement and applies two different strategies to engagement:“engagement with objectives,”and“sustainability dialogue.”“Engagement with objectives”is based on thematic research carried out by A

124、XA IM Responsible Investment experts,who then lead the engagement with the support of the AXA IM investment team with an explicit goal to achieve change within a company.“Sustainability dialogue”focuses on companies where the continued enhancement of sustainability practices aims to help support its

125、 robust,long-term profitability.This is often led by portfolio managers or credit analysts.Where weaknesses are identified“sustainability dialogue”may lead to using escalation techniques in certain cases or prompt a more formal“engagement with objectives”approach.Presentation of the voting policyAXA

126、 IM exercises voting rights attached to shares or depositary receipts for shares for fund or mandates managed on behalf of AXA Group.In doing so,AXA IM applies the principles set out in its Corporate Governance&Voting Policy(“Voting Policy”)taking due consideration of each companys specificities and

127、 context.Voting decisions may be taken by the AXA IM Corporate Governance team,the AXA IM Corporate Governance Committee,as well as any relevant representatives from AXA S.A.or AXA Group.An overview of this policy is set out below.AXA IMs Voting Policy is based on three key principles:1.No abstentio

128、n:AXA IM aims to vote against or for a resolution and abstain in rare cases,guided by exceptional circumstances.2.Support for management:AXA IM aims to support the companies in which it invests,and by extension,their boards,by voting in favor of proposals unless they are inconsistent with AXA IMs lo

129、nger-term expectations.3.Engagement:In the event of a resolution that is contrary to AXA IMs voting policy,standards of good governance or the protection of the long-term interests of shareholders,AXA IM seeks to engage with the company before voting against a resolution,on a best-efforts basis rega

130、rding a number of matters including the severity of the ESG risk the subject of the resolution and the significance of AXA IMs holdings.AXA IM makes use of the voting information services of Institutional Shareholder Services and Proxinvest.The research from third party providers is used to support

131、AXA IM teams knowledge of companies and resolutions at forthcoming general meetings.AXA GROUP 2023 Climate and Biodiversity Report14Assessment of the engagement strategyAs between AXA Group and AXA IM,engagement and voting activities are carried out on a consolidated basis for the Group.For this rea

132、son,separate data for AXA S.A.is not available and the following data concerns all AXA Group funds managed by AXA IM.In 2022,AXA IM conducted 218“engagements with objectives”with 159 companies in which AXAs Group funds are invested and managed by AXA IM on behalf of the Group.Climate change was the

133、main focus of discussion,with 24%of engagement cases covering these matters and 23%of engagement covering governance topics(Corporate Governance and Business Ethics).However,only 5%of these meetings were solely focused on governance issues,as effective governance policies and practices may have an i

134、mpact on the management of environmental or social issues within a company.Therefore,governance is often addressed when engaging with a company on any environmental or social topic.In 2022,32%of climate change engagement was linked to corporate governance matters.49%of corporate governance issues we

135、re addressed in meetings about employee relations issues.These results were driven by an increase in diversity,equality and inclusion topics requiring the development of dedicated policies,top management objectives and incentives,and appropriate board oversight.Ecosystem protection was another key e

136、ngagement theme addressed by AXA IM on behalf of the Group through engagement on biodiversity loss and deforestation with companies in the food products,packaging materials and electric utilities sectors.AXA IM also carried out engagements in the technology sector where the focus was on companies ex

137、posed to responsible technology issues.Engagement per ESG theme(for engagement with objectives)Resources&ecosystems22%Employee relations7%Corporate governance18%Public health2%Human capital23%Business ethics4%Climate change24%AXA IM prioritizes direct dialogue with companies,while also participating

138、 in collaborative initiatives,which represent 19%of all engagement.Joining efforts with other investors can improve the efficiency of the engagement process and the materiality of results,on the condition that shareholders share clear goals and expected outcomes.15Board Issues 42%Assessment of the v

139、oting policyIn 2022,AXA IM voted on 52,823 proposals at 4,628 meetings,of companies in which AXAs Group funds are invested and managed by AXA IM on behalf of the Group,representing 97%of the meetings at which it could vote.The opposition rate stands at 14%with at least one vote against cast in 60%of

140、 the meetings voted.The highest level of opposition is for board issues(42%of votes against),followed by executive remuneration(26%of votes against).Breakdown of votes by topic Votes against management by topic Board Issues 50%Dividend payout 4%General Meeting Formalities 2%Business Reorganisation/M

141、&A 1%Related Party Transactions 1%Anti-takeover provisions 1%Capital Issues 9%Remuneration 13%Articles of Association 5%Accounts&Auditors 13%ESG Opportunities&Risks 1%Capital Issues 7%Related Party Transactions 1%Business Reorganisation/M&A 2%ESG Opportunities&Risks 3%Dividend payout,General Meeting

142、 Formalities,Anti-takeover Provisions1%Remuneration 26%Articles of Association 7%Accounts&Auditors 11%AXA GROUP 2023 Climate and Biodiversity Report16Decisions taken on investment strategyPlease refer to Chapter F of this report for information about decisions taken on investment strategy.Underwriti

143、ng client and broker engagement1.Please refer to Chapter F of this Report for details of the AXA Group Energy Policy.In addition to engagement activities undertaken as an investor,AXA Group entities also engage with insurance clients and brokers on ESG matters.In 2021,AXA XL France began engaging wi

144、th clients on their climate strategies and transition plans to achieve net-zero emissions.On a quarterly basis,a series of“Climate Catchup”interviews were held with multinationals across France.These interviews enabled AXA XL France to share its climate strategy with clients and help AXA XL France d

145、etermine how it could better support clients in their transitions.In 2022,in connection with the AXA Group Energy policy,1 a specific engagement initiative was performed with oil and gas companies directly or through their brokers to assess their transition plans.AXA engaged with companies on the fo

146、llowing factors and key performance indicators,including past,present,and future aspirations:Energy transition strategy,based on:-Low-carbon asset strategy(including%of dedicated CAPEX)-Climate governance and policy-Net-zero commitments-CDP score Emissions management based on:-Greenhouse gas intensi

147、ty-Scope 1 and 2 absolute emissions,-Scope 3 emissions-Methane emissions-Gas flaring-Emissions reduction targets AXA also looks at additional factors in the oil and gas industry,besides climate strategy and consecutive transition plans:pollution prevention plans and oil spill response certification.

148、Broker engagement:a specific broker engagement initiative was launched by AXA XLs Environmental team in France,working with insurance broker Marsh to assess and mitigate biodiversity-related risks.AXA XL Frances clients are asked to complete environmental risk prevention audits with measurable crite

149、ria.Clients with industrial sites are encouraged to carry out initial biodiversity diagnostics and incorporate the results into their risk management plans.To support clients efforts to be responsible,AXA XL France offers lower client deductibles for environmental risk policies.17AXA GROUP 2023 Clim

150、ate and Biodiversity Report18e.The EU taxonomy and fossil fuelsTaxonomy eligibility of investmentsThe following provides information with respect to the requirements of Regulation(EU)2020/852 dated June 18,2020,on the establishment of a framework to facilitate sustainable investment(the“EU Taxonomy

151、Regulation”1)and the Commission Delegated Regulation supplementing the EU Taxonomy Regulation2).1.Regulation(EU)2020/852 of the European Parliament and of the Council of June 18,2020 on the establishment of a framework to facilitate sustainable investment,and amending Regulation(EU)2019/2088.2.Commi

152、ssion Delegated Regulation(EU)2021/2139 of June 4,2021,supplementing Regulation(EU)2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climat

153、e change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives,and(ii)the Commission Delegated Regulation(EU)2021/2178 of July 6,2021,supplementing Regulation(EU)2020/852 of the European Parl

154、iament and of the Council by specifying the content and presentation of information to be disclosed by undertakings subject to articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities,and specifying the methodology to comply with that disclosure obligati

155、on as amended by the Commission Delegated Regulation(EU)2022/1214 of March 9,2022.Taxonomy Value PercentageTotal investments(including cash)(millions)542,577100%of total investmentExposures to central governments,central banks and supranational issuers162,54630%Covered assets380,03170%Of which:%of c

156、overed assetsDerivatives(689)0%Exposures to undertakings not subject to NFRD(articles 19a and 29a of Directive 2013/34/EU)104,31827%Exposures to Taxonomy-eligible activities(investment properties and mortgage loans)64,53517%Exposures to non Taxonomy-eligible activities211,86756%Of which cash and oth

157、er loans36,54910%Of which exposures for which Taxonomy analysis could not be assessed175,31846%For the transition period ended on December 31,2023,financial entities are only required to disclose information related to the Taxonomy-eligibility of their activities.To this end,AXA S.A.expects to be in

158、 a position to provide its share of exposure to activities that meet the technical screening criteria defined in the delegated acts related to Articles 10 to 15 of the Taxonomy Regulation in accordance with Commission Delegated Regulation(EU)2021/2178(i.e.,the Taxonomy-alignment of AXA S.A.s activit

159、ies),in its Climate&Biodiversity Report for the next financial reporting year.Please refer to Section 4.7 of AXAs 2022 Universal Registration Document(“Transversal information”)for more details on Taxonomy disclosures.Share of exposure to undertakings active in the fossil fuel industryPlease refer t

160、o Chapter F of this report for information on AXA Groups share of exposure to undertakings active in the fossil fuel industry.19f.AXA Groups strategy for alignment with the objectives of the Paris AgreementIndicators,targets and quantification of results to align with the Paris Agreement objectivesA

161、XA has tested different approaches to analyze the“climate dynamics”of its investments since 2016.AXA continues to engage with external data providers(MSCI,Beyond Ratings,S&P Trucost),and industry groups,while also using internal“NatCat”risk assessments to cover its Real Assets,to refine these method

162、ologies(notably via the Net-Zero Asset Owner Alliance and the TCFD).Climate metrics overview table3 Metric TypeAsset ClassProviderWhat is measured?Warming PotentialSovereign DebtContribution to global warming,expressed in CImplied Temperature RiseCorporate Debt&EquityContribution to global warming,e

163、xpressed in CClimate Value-at-RiskPhysical Risks CostsCorporate Debt&EquityImpact of extreme weather events(asset damages and business interruption),expressed in%of Enterprise Value(EV)Impact of CO2 emissions reduction,expressed in%of Enterprise Value(EV)Policy Risks CostsRevenues related to technol

164、ogical opportunities(green revenues&patents),expressed in%of Enterprise Value(EV)Technological OpportunitiesPhysical RiskReal AssetsGroup Risk ManagementBuilding-level impacts of extreme weather events,expressed in mCarbon FootprintSovereign DebtCarbon footprint of AXAs portfolios expressed in T.eq.

165、CO2/$m of revenues(corporates)or GDP(sovereigns)Corporate Debt&EquityReal EstateEV-based carbon footprint of AXAs portfolio,expressed in T.eq.CO2/EV m(normalized per Enterprise Value).Absolute carbon emissions pro-rated per AXAs holdings,expressed in T.eq.CO2Corporate Debt&EquityBiodiversity Footpri

166、ntCorporate Debt&EquityCorporate biodiversity footprint,expressed in km.MSA/mFossil Fuel ExposureCorporate Debt&EquityGroup Investment Exposure to Coal,Oil&Gas sector and unconventionnal Oil&Gas,expressed in Bn and in%of the total General Account assets3.This section of the Report contains informati

167、on sourced from MSCI.For more information on MSCI ESG ratings,including their methodology and disclaimer statement,please refer to GROUP 2023 Climate and Biodiversity Report20Upon joining the Net-Zero Asset Owner Alliance(NZAOA)in 2019,the AXA Group committed to transitioning its investment portfoli

168、o to net zero greenhouse gas emissions by 2050 and establishing an investment-related intermediate target every five years.Together with NZAOA peers,AXA supported the Alliances Target-Setting Protocol which lays out the minimum requirements for intermediate targets in terms of ambition and asset cla

169、sses.This was published in October 2020.In December 2020,the Group1 announced a commitment to reduce the carbon footprint of its General Account assets by 20%between 2019 and 2025,2 using the NZAOAs preferred approach based on enterprise value(EV),which allows for improved comparability between asse

170、t classes.This-20%target is in line with the climate scenarios used for the first version of NZAOAs Target-Setting Protocol and are compatible with+1.5C pathways.1.AXA S.A.has no individual target but contributes to the overall Group target to reduce the carbon footprint of AXAs General Account asse

171、ts by 20%.2.20%cumulative reduction for listed corporate debt and equities,and real estate assets.At the end of 2022,the carbon intensity per enterprise value of AXA S.A.s balance sheet was 30 tCO2e/EV m,and AXA Groups was 43 tCO2e/EV m.At the AXA Group level,the carbon intensity per enterprise valu

172、e fell 35%between 2019 and 2022,and 9%in 2022 alone.This annual reduction was driven mainly by management actions,particularly on the listed corporate debt portfolio and high-emitting sectors such as energy and utilities.These positive efforts were partially offset by(i)an increase in greenhouse gas

173、 emissions following the economic rebound after the Covid-19 pandemic and by(ii)the evolution of financial markets throughout 2022,particularly affecting the Groups listed equity portfolio.This is reflected in the detailed table below.CO2 intensity of AXAGroups investments December 2021December 2022

174、Total CO2 intensity(in tons of CO2 equivalent/million EV)4743CO2 intensity of AXAs investments per asset classIG listed corporate debt5548Listed equities4564Real estate76CO2 intensity of AXAs investments per sectorBasic Materials241275Communications1517Consumer cyclicals 3234Consumer non-cyclicals22

175、22Energy358333Financial12Industrial 100132Technology57Utilities283221Others139329Real Estate76CO2 intensity of AXAs investments per geographyAmericas5143Asia132135Europe 3733 Climate and Biodiversity metrics covered by a limited assurance conclusion,please refer to Section“Independent Limited Assura

176、nce Report(PwC)”for details.21Meeting this goal will not only require new lower-carbon investments but progress by the companies already in AXA Groups investment portfolio,which it plans to encourage by providing them with continued support for shifting their business model to low-carbon energy sour

177、ces.As it engages with them throughout the year,the Group(and/or AXA IM,as AXAs manager,including AXA S.A.)encourages companies in its investment portfolios to set increasingly precise targets and use measurable indicators.The effectiveness of the Groups policy will also depend on its ability to hel

178、p companies transition to new solutions and innovative financial products,such as sustainability-linked bonds.The Group remains focused on its intermediate objective,-20%carbon intensity of its General Account assets by 2025,by pursuing a combination of:Pertinent investment decisions;An ongoing incr

179、ease in AXA holdings in companies demonstrating credible net-zero targets;and Engagement with companies that have lagging climate strategies.New intermediate targetsInvestmentsThe AXA Group is committed to transitioning its investment portfolio to net-zero greenhouse gas emissions by 2050,consistent

180、 with a maximum temperature rise of 1.5C above preindustrial levels by 2100 and taking into account the Intergovernmental Panel on Climate Change(IPCC)transition pathways.The Group has established new intermediate targets to reduce the carbon footprint of its General Account assets by 50%by 2030(usi

181、ng the baseline year 2019).The scope of assets included within the target are listed corporate equities and debt and real estate.The carbon intensity of the assets will be 3.Insurance-Associated Emissions.4.Gross Written Premiums.measured using the carbon intensity normalized by Enterprise Value.Add

182、itionally,within its investment decision framework,the AXA Group will reinforce its engagement with listed corporates contributing the most to its portfolios carbon footprint.Further information on these targets,the methodologies used to set and report on the targets as well as the assumptions,risks

183、 and variables that may impact AXAs ability to meet the targets is available on the AXA website at .InsuranceThe AXA Group is committed to transitioning its insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050,consistent with a maximum temperature rise of 1.

184、5C above pre-industrial levels by 2100.The Group has established intermediate targets for the most material commercial and retail motor portfolios of AXA:A reduction in the carbon intensity(IAE3/vehicle)of the personal motor portfolio in selected geographies by 20%by 2030,using the baseline year 201

185、9;A reduction in the absolute carbon emissions(IAE3)of AXAs largest commercial insurance clients by 30%by 2030,using the baseline year 2021;A reduction in the carbon intensity(IAE3/GWP4)of all other corporate clients within AXAs largest markets by 20%by 2030,using the baseline year 2021.These transi

186、tional targets are supported by the Groups engagement and transition targets which have been set for 2026.Further information on these targets,the methodologies used to set and report on the targets as well as the assumptions,risks and variables that may impact AXAs ability to meet the targets is av

187、ailable on the AXA website at .4003002001000Dec.2015337264Dec.20Dec.2016302229Dec.20Dec.20Dec.20192Dec.2020219176Dec.2021219163155Dec.2022AXA portfolio163147135Dec.2022benchmarks275235205CO2 intensity of AXAGroups investments Corporate bonds+equities+sover

188、eign debt investmentsSovereign debt investmentsCorporate bonds+equitiesCO2 intensity(in tons of CO2 equivalent/$million revenues or GDP)Sources:Trucost S&P,Beyond Ratings,AXA IM.Climate and Biodiversity metrics covered by a limited assurance conclusion,please refer to Section“Independent Limited Ass

189、urance Report(PwC)”for details.AXA GROUP 2023 Climate and Biodiversity Report22Carbon footprint:revenue approachIn addition to calculating the carbon intensity per enterprise value to respond to a range of external stakeholders expectations,the Group also calculates the carbon footprint of its inves

190、tments normalized per revenue and in absolute terms.The end-2022 analysis spans AXA Groups equitiy,corporate and sovereign debt investments.CO2 intensity of AXAs investments CO2 intensity (in tons of CO2 equivalent/$million revenues or GDP)Dec.2021Dec.2022AXA S.A.120 120AXA Group163 147Between 2014

191、and 2022,the carbon footprint of AXA Groups investments(equities,corporate and sovereign debt),calculated on a normalized per revenue basis,has fallen sharply by 48%.Looking at a narrower scope(corporate and equity investments),the carbon footprint fell 57%between 2014 and 2022.For the period from 2

192、019 to 2022 the reduction is-32%,which is aligned with what has been observed during the same period calculated by the carbon intensity normalized by EV.Below is the breakdown of the carbon footprint of the Groups investments per asset class,per sector and per geography:CO2 intensity of AXAGroups in

193、vestments Dec.2021Dec.2022Total CO2 intensity(tons of CO2 equivalent/$million revenues or GDP)163 147CO2 intensity of AXAs investments per asset classCorporate bonds179166Equities160142Sovereign debt155135CO2 intensity of AXAs investments per sectorBasic materials593482Communications4243Consumer cyc

194、licals10092Consumer non-cyclicals130158Energy579561Financial3420Government153139Industrial281287Technology4446Utilities884913Others28637CO2 intensity of AXAs investments per geographyAmericas212180Asia258279Europe135114Other6577Carbon footprint of AXA Groups General Account portfoliosAXA Group also

195、publishes the absolute carbon emissions of its General Account portfolios(corporate debt,equities and real estate):which at the end of 2022 was 5.0 million t.eq.CO2,significantly lower than at end-2021(7.0 million t.eq.CO2).CO2 footprint of AXAGroups investments Dec.2021Dec.2022Total CO2 footprint(t

196、ons of CO2 equivalent)6,996,315 4,990,842 CO2 footprint of AXAs investments per asset class IG-listed corporate debt5,916,0734,113,649Listed equities947,117759,105Real estate133,124118,087CO2 footprint of AXAs investments per sector Basic materials987,177825,929Communications154,149130,774Consumer c

197、yclicals244,724204,263Consumer non-cyclicals482,212359,521Energy1,433,083819,375Financial70,24481,799Industrial993,946902,716Technology32,30533,081Utilities2,375,8121,468,919Others89,53946,377Real Estate133,124118,087CO2 footprint of AXAs investments per geography Americas2,453,3911,717,752Asia1,244

198、,138937,391Europe3,154,1392,210,375Other144,647125,324Carbon footprint:AXA Groups own operations absolute emissionsThe emissions of AXA Groups General Account portfolios far exceed AXAs direct emissions from its energy consumption(buildings),car fleets,business travel and IT activities(112,728 t.eq.

199、CO2 in 2022).CO2 footprint of AXAGroups own operations*20022Total CO2 footprint(tons of CO2 equivalent)216,536110,01784,945 112,728*Energy,car fleets,business travel and ITWith respect to AXAs own operations,greenhouse gas emissions related to energy consumption,car fleets,business travel

200、 and IT decreased by-48%between 2019 and 2022 to 112,728 t.eq.CO2 at the end of 2022,well below the 2022 target of 185,267 t.eq.CO2 which had been set to achieve a 20%reduction target between 2019 and 2025.However,after two years of substantially reduced greenhouse gas emissions due to the lockdowns

201、 and Climate and Biodiversity metrics covered by a limited assurance conclusion,please refer to Section“Independent Limited Assurance Report(PwC)”for details.23travel restrictions in the context of the Covid-19 pandemic,the reopening of offices and the resumption of business travel led to a sharp in

202、crease in emissions in 2022 compared to 2021(+33%),which nevertheless remained below pre-pandemic levels.In 2022,39%of the Groups greenhouse gas emissions were related to energy consumption,24%to IT,21%to business travel(air and rail),and 16%to AXA Groups vehicle fleets.“Implied Temperature Rise”mod

203、el applied to corporate equity and debtBetween 2018 and 2022,AXA used MSCIs Warming Potential model,which assesses how a companys projected greenhouse gas emissions1 align with global temperature targets for 2100 for corporate equities and debt.In 2022,MSCI2 replaced the Warming Potential metric wit

204、h an Implied Temperature Rise(ITR)model.The ITR model considers:The remaining carbon budget assuming global warming is to be kept well below+2C by 2100;and How much greenhouse gas a company can emit(across Scopes 1,2 and 3)to stay within the limits.At a portfolio level,the sum of a financed budget o

205、vershoot is compared to financed carbon budgets for portfolio holdings.Using the Transient Climate Response to cumulative carbon Emissions(TCRE)factor,the total overshoot is converted to a degree of temperature rise.Implied Temperature Rise:2022 AXA Corporate equity and debt resultsImplied Temperatu

206、re Rise Asset class 20212022Corporate debtAXA S.A.+2.2C+2.2CAXA Group+2.6C+2.4CBenchmark*+3.2C+2.6CEquityAXA S.A.+2.2C+3.0CAXA Group+2.6C+2.8CBenchmark*+3.1C+3.0CCorporate debt&equityAXA S.A.+2.2C +2.2CAXA Group+2.6C +2.5CBenchmark*+3.2C+2.7CSource:MSCI/AXA.*Equity:MSCI World ACCorporate debt:ICE Bo

207、fAML Global Broad Market CorporateIn 2022,the implied temperature rise of corporate equity and debt investments was as follows:For AXA S.A.+2.2C,flat compared to 2021;For AXA Group+2.5C,compared to+2.6C in 2021.Between 2021 and 2022:AXA Groups corporate debt ITR decreased-0.2C to+2.4C,down from+2.6C

208、,while the corporate debt benchmark3 decreased-0.6C to+2.6C,down from+3.2C.The Groups 1.Direct(Scope 1)and indirect(Scope 2 and Scope 3)emissions from activities.2.https:/ BofAML Global Broad Market corporate.4.The split between equity and debt used in the aggregated Benchmark is the one of the AXA

209、Group consolidated portfolio.5.CLAIM methodology(Climate Liabilities Assessment Integrated Methodology).Learn more at:https:/ was highly driven by a decrease in the ITR of corporates from key sectors,such as energy,industrial&utilities.On aggregate,AXA Groups corporate equity&debt ITR decreased-0.1C

210、 to+2.5C,down from+2.6C,while a broad benchmark4 on the same universe decreased-0.5C to+2.7C,down from+3.2C.The Groups ITR remained below the benchmark on aggregate,as well as on most of the key sectors,resulting from a restrictive corporate selection.This was also explained by less relative exposur

211、e than the benchmark of the energy sector,which highly impacted the portfolios ITR.The difference with the benchmark dropped in 2022 versus 2021,mainly explained by a relative underperformance in the basic materials,energy and consumer-cyclical sectors where the benchmark had a sharper decrease in I

212、TR.The decrease in the ITR of AXA Groups corporate equity and debt portfolio is encouraging.However it is too early to draw short-term conclusions from such small variations in long-term metrics.Warming Potential methodology applied to sovereign debtAXA uses the Climate Liabilities Assessment Integr

213、ated Methodology(CLAIM)model developed by Beyond Ratings5 to assess the temperature of AXAs investment portfolios in sovereign assets.This model and the MSCI ITR(for corporates)detailed above employ a similar approach.The CLAIM model uses governments nationally determined contributions(NDCs)to the P

214、aris Agreements carbon budget to express the theoretical temperature of sovereign assets.The NDCs in the Paris Agreement and updated at COP26 are used to build a homogeneous allocation of greenhouse gas emission reduction commitments per country by 2030.Warming Potential:2022 sovereign debt resultsB

215、ased on this model,the warming potential of AXA S.A.s sovereign debt in 2022 was+1.8C and the warming potential of AXA Groups sovereign debt was+2.0C(stable compared to 2021).The benchmark increased slightly to+2.5C.The warming potential of sovereign debt remained quite flat in 2022 as there were no

216、 major updates in NDCs which are the main driver of a countrys warming potential.Similarly to previous years,AXA Groups sovereign portfolio overperformed the benchmark(+2.0C versus+2.5C),explained mainly by a different asset allocation to countries.In fact,the Group had a higher relative exposure to

217、 French Government debt,which had a low warming potential of+1.7C.Additionally,the exposure to countries with high warming potential,such as the United States and Japan,was relatively lower than the benchmark.Warming potential Asset class 202020212022Sovereign debtAXA S.A.+2.1C+1.9C+1.8CAXA Group+2.

218、3C+2.0C+2.0CBenchmark*+3.0C+2.4C+2.5CSource:Beyond Rating/AXA.*Sovereign debt:JPM GBI Global Climate and Biodiversity metrics covered by a limited assurance conclusion,please refer to Section“Independent Limited Assurance Report(PwC)”for details.AXA GROUP 2023 Climate and Biodiversity Report24This a

219、nalysis reveals that a countrys energy mix and high reliance on fossil fuels(such as in Australia,the U.S.and Canada)has been a key driver of future financed emissions for sovereign debt investors.For example,Japan has been phasing out its nuclear energy since 2012 and has gradually substituted this

220、 with a combination of coal and natural gas,leading to an increase in its warming potential.Considering AXAs sovereign geographic exposure to the EU,a reduction in AXAs sovereign warming potential will heavily depend on coal being phased out and a corresponding rise in renewables and nuclear investm

221、ents in its portfolio.This is particularly relevant to AXAs lending to Germany and Italy,given their share of AXAs asset allocation.While Italy and Germany are not among the largest coal producers in the world,nor among the countries with the largest proportion of coal in their primary energy mix,Ge

222、rmany and Italy nonetheless have some of the largest coal power plants in the EU.Of note,much attention has been focused on corporates financed emissions/warming potential because shareholders can more readily engage with them.This is also where targets have been set.However,sovereign debt is a key

223、asset class for most asset owners.Green InvestmentsIn addition to AXA Groups intermediate investment carbon footprint reduction target and investment restrictions,green investments encourage sectors to strengthen mitigation and adaptation efforts.In November 2019,AXA Group committed to 24 billion in

224、 green investments by 2023.In 2021,AXA announced this target would rise to 26 billion.Green investments include the following asset classes:green bonds,infrastructure debt&equity,impact investments,real estate,and commercial real estate loans.To support AXAs green investment target,AXA has developed

225、 an internal framework to define green investments based on external labels,certifications and environmental standards as appropriate.To qualify investments as green,AXA applies its standards to each of the following asset classes:Green bonds:the green bonds in which AXA invests are independently la

226、belled based on Bloombergs Green Bond Indicator(DT607).1 This field indicates if the net proceeds of the bonds go towards green projects or activities that promote climate change mitigation or adaptation,or other environmental purposes;Infrastructure:investments in infrastructure equity and debt are

227、 classified as green assets if the project is categorized in beneficial sectors defined by the Climate Bonds Initiative;2 Impact investments:investments in AXAs Impact Funds are classified as green whenever:There are targeted climate impacts with clearly defined KPIs,or In the specific case of fores

228、ts,sustainable management can be demonstrated(FSC or PEFC certification is required);Real estate:AXAs definition is limited to assets with a very high level of environmental certification3 and a minimum Energy Performance Certificate(EPC)rating of“B”or equivalent;Commercial real estate(CRE):for CRE

229、debt,AXA uses a strict definition of green for loans backing an underlying asset with the aforementioned very high level of environmental certification.In December 2022,the Groups green investments totaled 25.1 billion,up from 22.6 billion at end-2021.This increase is mainly due to new investments i

230、n green bonds,which totaled at 11.9 billion at end-2022,up from 10.8 billion at end-2021.This increase is less important than in previous years,mainly due to a negative impact of the rising rates environment.The overall increase in green assets was also driven by new 1.Bloombergs definition of what

231、constitutes a market-accepted green bond is based on the 2021 edition of ICMAs Green Bond Principles(GBP),available here:https:/www.icmagroup.org/sustainable-fi nance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp/.Bloomberg requires use-of-proceeds to be aligned with GBP to be el

232、igible for green bond designation.2.Beneficial sectors include solar,wind,bioenergy,hydropower,geothermal,energy distribution,energy storage,transport and water.For more information,see .3.Minimum level BREEAM“Excellent,”LEED“Gold”or equivalent.green infrastructure projects as well as new investment

233、s and refurbishments of real estate assets.Green investments per asset under management Impact 1%Infrastructure equity11%Infrastructure debt 13%Sovereign green bonds25%Real estate26%Corporate green bonds22%CRE loans3%An example of green assets the Group has invested in is the Infrastructure Hornsea

234、II,a renewable energy infrastructure asset based in the UK.This offshore windfarm became fully operational on August 31st,2022 and has became the largest offshore windfarm in the world.Its power capacity of over 1.3GW allows to provide renewable power to more than 1.4 million homes.Transition bonds

235、and sustainability-linked bondsIn 2022,the Group reached its 300 million target to develop public transition bonds and sustainability-linked bonds(SLBs)set in 2021.The focus is on financing companies with credible plans to transition to net-zero emissions.SLBs differ from green bonds in that,just li

236、ke conventional debt,they are general purpose bonds.These bonds incorporate targets linked to environmental,social and governance(ESG)factors.As such,they represent a new opportunity to fund the climate transition,while addressing other environmental and social challenges.Sustainability-linked and t

237、ransition bonds Results for year 2022Sustainability-linked bondsTransition bondsTotal exposure 422m362m Investments(gross)325m45mInvestors like AXA have identified SLBs to incentivize companies to transform their business model,as sustainability/ESG objectives are(i)measured through predefined key p

238、erformance indicators and(ii)assessed against predefined sustainability performance targets(SPTs)in line with the SLB principles set out by ICMA and the Climate Bonds Initiative.An example of SLBs the Group has invested in is Henkel,which has aligned its SLB with its main sustainability ambitions fo

239、cused on climate and the circular economy:being climate-positive by 2040,reducing its Scopes 1&2 greenhouse gas emissions based on SBTi-validated targets,and notably making 100%of its packaging recyclable or reusable.Climate and Biodiversity metrics covered by a limited assurance conclusion,please r

240、efer to Section“Independent Limited Assurance Report(PwC)”for details.25Green BusinessOne way AXA is supporting its climate strategy as an insurer is through its Green Business Program,which aims to deploy non-life/non-health products(insurance coverage and services)that contribute to at least one o

241、f the four following objectives:Climate change mitigation;Climate change adaptation;Transition to the circular economy;and Limitation of biodiversity loss and pollution.Three shades of green have been introduced to provide guidance and transparency on the materiality assessment of green business off

242、er:encouraging sustainable behaviors,managing environmentally sustainable claims and covering environmentally sustainable assets/activities.In April 2022,as part of its AXA For Progress Index,AXA Group committed to increasing gross written premiums for green business offerings to 1.3 billion by 2023

243、,up from 1.1 billion in 2020.In 2022,1.7 billion of green premiums were collected.Based on this strong performance,AXA Group decided to increase its ambition and set a floor of 1.7 billion for 2023.Please refer to the Green Business Report for more details and examples.4Methodologies to assess the a

244、lignment of AXAs investment strategy with the Paris AgreementAXA Groups investment portfolios are monitored alongside key performance indicators to illustrate how aligned its investment decisions are with climate mitigation and the adaptation required to support the Paris Agreement.AXA uses external

245、 methodologies to assess the alignment of its investment strategy with the Paris Agreement.Use of the EUs climate transition and Paris Agreement benchmarks in the management of index fundsAXA S.A.does not manage index funds and therefore the information requested here is not applicable to AXA S.A.ES

246、G rating framework integrationAXA Groups investment philosophy,which also applies to AXA S.A.,is based on the conviction that issues relating to environmental,social and governance factors will remain a major concern in the coming years.These non-financial factors are considered in both quantitative

247、 and qualitative ESG research:Through its asset manager AXA IM,AXA Group tracks the ESG performance of its investments using an internal ESG scoring tool(both for AXAs General Account assets and third-party client assets).AXA IMs scoring methodology for traditional asset classes(i.e.,listed equity,c

248、orporate and sovereign bonds)allows AXA IM to leverage its fundamental research capabilities.The tool uses MSCI ESG scores as primary inputs for sovereign and corporate bonds,providing consistent ratings for both asset classes.See below the ESG scores as of end 2022 for AXA Groups investments.ESG Sc

249、ores Asset ClassESGESG%of coverageCorporate bonds7.07.25.35.885%ICE BofAML Global Broad Market Corporate Index6.77.25.15.896%Equities6.96.75.35.793%MSCI ACWI Index6.76.55.25.6100%Government bonds6.14.67.46.898%JPM GBI Global6.05.17.96.4100%Corporate bonds+equities7.07.25.35.886%Corporate bonds+equit

250、ies+government bonds6.55.76.56.492%AXA Group also uses sector guidelines(set out below)and engagement(see Chapter D)to give full effect to its approach to ESG integration in its investment strategy.AXA GROUP 2023 Climate and Biodiversity Report26Investment strategy changes to align with the Paris Ag

251、reement objectivesOver time,the Group has developed specific sector guidelines,which apply to AXA S.A.and other Group entities,for activities in sectors that may pose certain risks to AXA Group as an investor and insurer.These currently include the following sectors:thermal coal,oil&gas,manufacturer

252、s of controversial weapons,tobacco manufacturing,ecosystem conversion and deforestation.Among them,coal,oil and gas policies,which apply to both investment and underwriting activities,aim to contribute to the transition toward a more sustainable and less carbon-intensive economy.The AXA Group Coal P

253、olicy Coal is by far the most carbon-intensive form of energy and as such coal-based power generation is seen as the most at risk industry in terms of asset stranding.AXA Group is committed to a long-term exit strategy reducing exposure to the thermal coal industry to zero by 2030 in the European Un

254、ion and OECD countries,and by 2040 in the rest of the world,as suggested by the main climate scenarios(such as the IEAs“Beyond+2C”scenario).This approach is applied to both its investments and underwriting activities.To support the assessment,AXA uses the Global Coal Exit List,which is a publicly av

255、ailable database.However,AXA reserves the right to diverge from the GCEL on a case-by-case basis when more up-to-date data is identified.InvestmentsFor General Accounts and in unit-linked assets in fully controlled mandates AXA Group bans investments,in the following companies:Power generation compa

256、nies with a share of coal power production in their energy mix over 30%and/or coal expansion plans producing more than 300 MW and/or over 10 GW of coal-based power installed capacity;Mining companies with a coal share of revenues over 30%and/or with annual coal production over 20 million tons and/or

257、 developing new coal mines;and Certain coal industry partners,defined as manufacturers(e.g.,equipment suppliers)and infrastructure players(e.g.,port terminals or dedicated railways)developing significant new coal assets.InsuranceThe underwriting restrictions ban property and construction covers for

258、coal mines and coal plants.They also include coal-related restrictions at the client level,mirroring,as appropriate,the criteria that apply to investments.Details of the governance process for underwriting referrals under this policy are set out in the Appendix to this Report.The AXA Group Coal Poli

259、cy is currently under review and is expected to be updated in the course of 2023.Full details of the AXA Group Coal Policy are available at .The AXA Group Energy Policy Investments Since 2017,AXA Group has divested from oil sands-related businesses(defined as companies deriving more than 20%of their

260、 revenue from oil sands,including pipeline operators).As an asset owner,AXA Group has stopped investing in new upstream oil greenfield exploration projects unless they are carried out by companies with the most far-reaching and credible transition plans.27Furthermore,AXA Group is reducing its invest

261、ment exposure to unconventional exploration and production,as follows:Arctic:AXA Group has extended the scope of its investment restrictions to the Arctic Region,in alignment with the Arctic Monitoring and Assessment Programme(AMAP).Only companies in the AMAP Region with Norwegian operations will be

262、 excluded from the scope of restrictions,given their high environmental standards and lower operational carbon footprint.AXA Group will exclude new direct investments in companies deriving more than 10%of their production from the AMAP-based region or producing more than 5%of the worldwide volume of

263、 AMAP-based oil&gas;Oil sands:AXA Group has adopted a more stringent policy by ceasing direct investments in companies producing more than 5%of the worldwide volume of oil sands;and Fracking/shale oil and gas:AXA Group will no longer invest directly in companies deriving more than 30%of their produc

264、tion from fracking/shale oil and gas.The main database used is the Global Oil&Gas Exit List(GOGEL).Full details of the AXA Group Energy Policy are available at .The AXA Group Energy Policy is currently under review and is expected to be updated in the course of 2023.AXA Group monitors on a regular b

265、asis its exposure,including AXA S.A.s exposure,to conventional and unconventional fossil fuels.The total exposures to coal is calculated by using exclusively the companies listed in the Global Coal Exit List provided by Urgewald.The total respective exposure of AXA Groups and AXA S.A.s liquid assets

266、 to oil and gas is calculated based on Bloomberg sectors.The unconventional nature of the hydrocarbon activities of these sectors is then derived from the GOGEL list provided by Urgewald on an annual basis.Fossil fuel exposure AXAGroup fossil fuel exposureAssets Under Management(General Account asse

267、ts)%of Assets Under Management(General Account assets)Coal1.7Bn0.4%Overall oil&gas3.7Bn0.8%Unconventional oil&gas0.7Bn0.1%Source:AXA/UrgewaldAXAS.A.s fossil fuel exposureAssets Under Management (General Account assets)%of Assets Under Management (General Account assets)Coal12.4m0.2%Overall oil&gas53

268、.1m0.8%Unconventional oil&gas12.9m0.2%Source:AXA/UrgewaldAt end 2022,AXA Groups exposure to fossil fuels represented 5.4 billion or 1.1%of the total value of the Groups investment portfolio.The exposure to coal totaled 1.7 billion,decreasing by 70%since FY 2018.For unconventional oil and gas activit

269、ies,the exposure was 0.7 billion,representing a reduction of 75%compared to FY 2018.1.Defined as operations situated above 70N2.Notably via geographical location,asset size and asset value.3.Notably via their capacity to adapt.Insurance Since 2017,AXA has stopped underwriting property and constructi

270、on insurance policies for oil sand extraction sites and related transportation(pipelines),as well as drilling in the Arctic Region.1 In October 2021,AXA significantly strengthened its existing restrictions by adding additional conventional and unconventional oil and gas restrictions for the Arctic,o

271、il sands and fracking/shale oil and gas and extended to all lines of business(except for employee benefits and treaty reinsurance).AXA Group no longer underwrites greenfield oil exploration projects.Exemptions may be granted to companies with the most far-reaching and credible transition plans,based

272、 on a case-by-case review.Restrictions will take effect with a 12-month grace period ending on January 1,2024.Details of the governance process for underwriting referrals under this policy are set out in the Appendix to this Report.The AXA Group Energy Policy is currently under review and is expecte

273、d to be updated in 2023.Impact on investment activities,Climate Value-at-Risk(CVaR)For the purposes of this Report,AXA Group,including AXA S.A.,has used the Climate Value-at-Risk(Climate VaR)model developed by MSCI.This model is an estimation of how the value of AXA Groups investment portfolios in c

274、orporate bonds and listed equity(excluding unit linked products)could be impacted by climate policy risks,technology transition opportunities and extreme weather events.This model is currently applicable only to corporate assets(not sovereign assets)and is under continuous development.Annual updates

275、 to this model allow the Group to expand the range of measured climate-related financial risks related to AXA Groups investments and to assess them more precisely.AXA Group does not use this metric in its day-to-day investment and risk management.However,the metric provides insight into the assets m

276、ost at risk from climate change and how AXA Group is managing these risks over time.Climate VaR methodology overviewClimate VaR differs from the traditional concept of Value-at-Risk used in risk management.Unlike the conventional approach,Climate VaR does not consider the distribution of returns and

277、 calculate a low percentile based on that.Instead,Climate VaR values are derived climate scenarios,along with inferred macro-economic parameters.The three components of Climate VaR which AXA Group evaluates against different climate scenarios are:Physical Risk Climate VaRPhysical climate risk scenar

278、ios define the possible climate-related consequences of increased greenhouse gas emission levels and the ensuing financial implications(i.e.,burdens or opportunities)for businesses and their investors.The Physical Risk Climate VaR metric assesses the level of exposure2 and vulnerability3 of companie

279、s to increasingly frequent and severe extreme weather events.This metric combines chronic climate risks,which refer to long-term shifts in climate patterns such as extreme heat,extreme cold,heavy precipitation,heavy snowfall and strong winds,and acute climate risks,which refer to event-driven physic

280、al risks such as coastal flooding,river flooding,tropical cyclones,low river flows and wildfires.Climate and Biodiversity metrics covered by a limited assurance conclusion,please refer to Section“Independent Limited Assurance Report(PwC)”for details.AXA GROUP 2023 Climate and Biodiversity Report28Th

281、is metric thus evaluates the potential economic losses in a changing climate environment based on a given climate scenario.The main challenge when applying the Physical Risk metric lies in capturing all possible extreme weather events.In addition,this metric focuses only on the assets owned by a par

282、ticular company,as identified by MSCI,and does not account for the sustainability of the infrastructure,grids or other necessary components that enable the assets to operate and generate revenue for the company.Policy Risk Climate VaR(transition costs)Policy Risk Climate VaR evaluates the potential

283、economic losses for companies if they fail to adapt their activities to a given climate scenario(1.5C,2C or 3C scenario)and associated transition pathways.The transition to a low-carbon economy through market and regulation changes may negatively impact businesses and their investors.The Policy Risk

284、 Climate VaR metric assesses how regulations stemming from countries nationally determined contributions(NDCs)affect the companys greenhouse gases.Technology Opportunity Climate VaR(green opportunities)The transition to a low-carbon economy may generate new opportunities for businesses and investors

285、,particularly through the advancement of green technologies.The Technology Opportunity Climate VaR metric evaluates possible future revenues that companies could generate from green opportunities.While this metric is not the only factor when estimating future green revenues,it notably looks at green

286、 patents and current low-carbon revenues.Consequently,this metric assesses the potential economic revenues for companies taking a carbon-reduction path in line with a specific climate scenario(i.e.,the 1.5C,2C,or 3C scenario)and the associated transition pathways.Climate scenarios new approaches In

287、previous years,AXA Group relied on climate scenarios based on the AIM-CGE Model developed by the National Institute for Environmental Studies in Japan.The five new scenarios,used this year and included in this report,have been put in place by MSCI and are derived from the Network for Greening the Fi

288、nancial System(NGFS)scenarios.The NGFS scenarios are recognized by central banks and supervisors,making them a credible reference in the field.A selection of five NGFS scenarios has been made to cover a spectrum of temperature increases ranging from+1.5C to+3C by 2100.These NGFS scenarios also consi

289、der two distinct approaches to transitioning to a lower-carbon economy:an orderly transition and a disorderly transition.Climate Value-at-Risk scenarios Scenario nameMSCI nameComments Net Zero by 20501.5C REMIND NGFS OrderlyThe two REMIND NGFS 1.5C scenarios are very similar in terms of emissions pa

290、thways and temperature warming.Where they differ is in the use of low-carbon technologies,with the disorderly scenario using more low-carbon sources of technology in various sectors and the orderly scenario using slightly more carbon sequestration.Divergent net-zero1.5C REMIND NGFS Disorderly Below

291、2C2C REMIND NGFS OrderlyThe REMIND NGFS 2C scenarios are similar to the 1.5C scenarios in terms of electricity generation fuel mix in 2050 and,for the Orderly 2C scenario,in terms of carbon sequestration use.Where they differ is how fast the transition happens,the year emissions reach net-zero emiss

292、ions and the projected carbon prices needed to reach the temperature target.Delayed transition2C REMIND NGFS Disorderly NDC3C REMIND NGFSThe 3C scenario assumes a slower pace of decarbonization than more ambitious scenarios and is based solely on current nationally determined contribution(NDC)of eac

293、h country.“Aggregated Climate VaR”metricAXA Group applies an Aggregated Climate VaR metric to all its investment portfolios(corporate bonds and listed equities)under the five NGFS scenarios described above.This aggregated metric represents the percentage of the market value of the Groups total inves

294、tment portfolio(corporate bonds and listed equities):-In the best-case scenario(+1.5C Orderly):-10.1%-3.0%for physical risks,-8.2%for policy risks,+1.1%for technological opportunities-In the worst-case scenario(+3C NDC):-6.9%-5.9%for physical risks,-1.2%for policy risks,+0.2%for technological opport

295、unities.The chart illustrates the increase(in absolute terms)of the physical risk where the climate scenarios are increasingly severe(i.e.,from 1.5C Orderly to 3C NDC).The AXA Group would expect a more severe climate scenario to result in more acute and frequent extreme weather events and subsequent

296、ly higher potential losses for corporates.On the other hand,the AXA Group also observes a higher policy risk when the climate scenario is close to+1.5.This could be because,in this climate scenario,companies could be required to make huge efforts and investments to transition their businesses in ali

297、gnment with this scenario.29Caution is needed when drawing conclusions from the Aggregated Climate VaR metric.For example,in applying this metric,a+3C scenario appears less impactful on AXA Groups portfolio than a+1.5C scenario.This is driven mainly by the way physical risk is modelled and this metr

298、ic only accounting for business interruption and asset damage at the company level from a set of non-exhaustive extreme weather events.Furthermore,this metric does not reflect the potential ensuing impact of severe climate scenarios at the macro level,such as potential damage to infrastructure,grids

299、 or other necessary components that enable corporates to operate and generate revenues.Finally,a+3C scenario is generally linked to longer-term impacts on asset valuations,which are associated with higher discounting costs.AXA Group performed an analysis of the Aggregated Climate VaR on its investme

300、nt corporate debt and equities portfolios from FY 2020 and FY 2021 to understand how its management actions and mark-to-market evolutions were impacting the evolution of its Aggregated Climate VaR.Over the last two years,the Aggregated Climate VaR in the ideal+1.5C Orderly NGFS scenario dropped to-1

301、0.1%at end 2022,down from-11.2%at end 2020.This can be attributed mainly to a decrease in AXAs relative exposure to the energy sector over the last two years,which is a key driver of the Aggregated Climate VaR with an average value exceeding-50%.The utilities sector is also a significant contributor

302、 to the Aggregated Climate VaR,and the Groups recent management actions have led to a decrease in the average Climate VaR in this sector.The assessment of the various indicators presented in this chapter is performed annually.3 NDCClimate Value-at-Risk for different scenarios(in%,corporate debt&equi

303、ty FY 2022)1.5 Orderly1.5 Disorderly2 Orderly2 Disorderly30-3-6-9-12-15Technological opportunitiesTotalPolicy riskPhysical risk1.1-3.0-8.2-10.1-12.5-5.69.3-6.9-11.6-1.9-5.7-1.2-3.0-4.0-4.2-5.92.00.30.60.2Source:MSCI/AXAAXA GROUP 2023 Climate and Biodiversity Report30Climate metrics results summary A

304、XAGroupAXAS.A.FY 2020FY 2021FY 2022FY 2020FY 2021FY 2022Warming Potential (C)-Sovereign debt2.32.02.02.11.91.8%of coverage100%100%99%100%100%100%Implied Temperature Rise (C)-Corporate bonds&EquitiesN/A*2.62.5N/A*2.22.2%of coverageN/A*65%62%N/A*66%81%Aggregated Climate Risks(CVaR)1.5 Orderly-11.2-10.

305、5-10.1-8.0-8.8-9.13 NDC-7.2-7.0-6.9-9.1-5.9-5.1Physicak Risk(CVaR)1.5 Orderly-3.1-3.0-3.0-4.1-2.7-2.22 Orderly-4.1-4.0-4.0-5.7-3.5-3.02 Disorderly-4.3-4.3-4.2-6.0-3.7-3.23 NDC-6.0-5.9-5.9-8.6-5.2-4.4Policy Risk(CVaR)1.5 Orderly-9.3-8.7-8.2-4.5-7.4-7.61.5 Disorderly-12.8-12.0-11.6-6.6-10.0-10.92 Orde

306、rly-2.2-2.1-1.9-1.0-1.5-1.52 Disorderly-6.6-6.0-5.7-3.0-5.2-4.93 NDC-1.4-1.3-1.2-0.6-0.9-0.8Technological Opportunities(CVaR)1.5 Orderly1.31.21.10.61.30.71.5 Disorderly2.32.12.01.12.51.42 Orderly0.40.40.30.20.40.22 Disorderly0.70.60.60.30.70.43 NDC0.30.20.20.10.30.1%of coverage64%63%61%88%64%81%ESG

307、Score 5.9 6.4 6.5 5.2 6.8 6.5%of coverage94%93%92%96%88%99%Carbon Intensity(tCO2 eq per$mn.Revenue of GDP)120120%of coverage81%88%85%89%81%95%Carbon Intensity(tCO2 eq per mn.EV)704743273230%of coverage72%78%75%95%76%91%Absolute Carbon Emissions(tCO2 eq)9,617,5676,996,3154,990,84244,45022,

308、50439,387%of coverage72%78%75%95%76%91%*Data available from FY 2021 onwards based on the Implied Temperature Rise methodology applied on Corporate bond&Equities asset class Climate and Biodiversity metrics covered by a limited assurance conclusion,please refer to Section“Independent Limited Assuranc

309、e Report(PwC)”for details.31g.AXA Groups strategy for alignment with long-term biodiversity goals and related targets 1.https:/tnfd.global2.https:/www.cbd.int/intro/3.Parties to a treaty are the States or international organizations that have consented to be bound by the treaty and for which the tre

310、aty is in force (See Article 2 of the Vienna Convention on the law of treaties)AXA Group views the biodiversity challenge as a natural extension of its climate efforts.Biodiversity loss endangers ecosystem services and poses risks to society and businesses that depend on them,and in turn investors a

311、nd insurers that rely on a well-functioning economy.Furthermore,the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services(IPBES),IPCC and the Taskforce on Nature-related Financial Disclosures(TNFD)all identify climate change as a key driver of changes to nature and by exte

312、nsion,biodiversity.1 AXA did not wait for a precise calculation of the pressures and impacts of its activities on biodiversity to act.As with AXAs approach to climate change,AXA aims to harness its expertise as both an investor and insurer.As a result,the Group has announced a series of initiatives

313、designed to contribute positively to the protection of ecosystems and to act on the nexus between climate and nature,along with ongoing efforts to improve quantitative analyses relevant to biodiversity loss to support future target setting.Contribution to the reduction of the main pressures and impa

314、cts on biodiversityThe Convention on Biological Diversity(CBD),also known as the Rio Convention is an international,legally binding treaty with three main objectives:2 The conservation of biological diversity;The sustainable use of the components of biological diversity;and The fair and equitable sh

315、aring of the benefits arising out of the utilization of genetic resources.In December 2022 at the Conference of the Parties(COP15)in Montreal,Parties3 to the CBD adopted the Kunming-Montreal Global Biodiversity Framework(“Framework”).The Framework includes 23 new targets.Not all the targets are quan

316、titative,and ongoing work is necessary to translate them into quantifiable and standardized objects for implementation by governments and eventually voluntary adoption by non-state actors(including the private sector).Set out below are concrete actions already undertaken by AXA Group,and the relevan

317、t Targets under the Framework.These actions may provide guidance on future relevant private sector action in favor of biodiversity.Contributing to Target 1:loss of highly important biodiverse areas close to zero by 2030 AXA Group Ecosystem Conversion and Deforestation Policy Curbing deforestation co

318、nserves water resources,prevents flooding,controls soil erosion and preserves habitats and biodiversity,in addition to preserving key carbon sinks.The AXA Group Ecosystem Conversion and Deforestation policy seeks to address risks related to deforestation and protected areas of key biodiversity value

319、.It concerns certain soy,palm oil,timber and cattle productions in regions where these industries strongly contribute to deforestation.For investments,the policy has been applied to the Groups asset management entities to the extent that they manage General Account assets.For insurance,AXA Group res

320、tricts property,construction and marine cargo coverage in activities that actively contribute to deforestation.This policy is implemented at the Group level and is subject to the oversight of the Responsible Investment Committee and the Group Underwriting Committee.In 2022,this policy was implemente

321、d by all AXA entities.Full details of the current AXA Group Ecosystem Conversion and Deforestation Policy are available at .The AXA Group Ecosystem Conversion and Deforestation Policy is currently under review and is expected to be updated in the course of 2023.Natural World Heritage Sites In line w

322、ith the UN PSI-UNESCO classification,AXA has undertaken to protect Natural World Heritage Sites(WHSs)by ensuring it does not support,through property and construction insurance policies,businesses in sensitive sectors that are developing activities incompatible with ecosystem preservation in these v

323、ital sites.The social and human rights dimensions of these projects are also assessed.WHSs are classified by UNESCO as containing both exceptional natural beauty and the most important and significant natural habitats for conservation.Examples include the Galapagos Islands of Ecuador and the Ivindo

324、National Park in Gabon.They provide key biodiversity benefits,such as fauna and flora protection,and other environmental benefits,including soil stabilization,flood prevention and carbon capture.They also contribute to economies through jobs,ecotourism,recreation and exports.Contributing to Target 1

325、0:sustainable management of agriculture,aquaculture and fisheries Accelerating the transition to regenerative agriculture through an impact investing strategy Agriculture,land use and deforestation alone constitute the second largest source of greenhouse gas emissions globally and the main driver of

326、 biodiversity loss.Regenerative agriculture practices such as soil covers,crop rotations and no-till farming that aim to restore soil health can reverse this trend and play AXA GROUP 2023 Climate and Biodiversity Report32a crucial role in addressing climate change and environmental challenges.AXA,Un

327、ilever and Tikehau Capital have created an impact investment fund dedicated to accelerating the transition to regenerative agriculture by focusing on three main areas:Protecting soil health to enhance biodiversity,preserve water resources and participate in the fight against climate change;Contribut

328、ing to the future supply of regenerative ingredients to meet the needs of the growing world population on the one hand and consumer demand for increasingly sustainable products on the other;and Contributing to the progress of technological solutions that aim to accelerate the transition to regenerat

329、ive agriculture.The fund aims to act on a global scale,drawing on the international networks of AXA,Unilever and Tikehau Capital.These objectives and impact measurement are at the heart of its operational approach and fully integrated into its investment strategy.Contributing to Target 11:restore an

330、d enhance ecosystems through nature-based solutions Investing in natural capitalIn 2021,the Group committed to a natural capital target of 1.5 billion,comprising 500 million dedicated to a Natural Capital Fund managed by AXA IM,and 1 billion dedicated to investments in sustainably managed forests.Th

331、e objective is to sequestrate/avoid 25 Mt CO2e on an annual basis.Natural Capital FundThe fund will principally finance projects that aim to protect and restore natural capital,for example in forests,mangroves and peatlands.In addition,the fund will invest in project developers to enhance their capa

332、city to develop and deliver natural capital projects,solutions that enable faster and more accurate measurement of nature-based projects and marketplace solutions for carbon.At end 2022,progress towards the 500 milion Natural Capital target amounted to 150 million.Case Study:Project FagusProject Fag

333、us is an afforestation and reforestation program in France in partnership with Alliance Forets Bois,a forest cooperative with private landowners as members.The project encompasses the restoration of 1,725 hectares of degraded forests and will enable the sequestration of approximately 500,000 tCO2e emissions while improving the forest management practices of approximately 270 forest owners.The proj