"Responsible" long-term financing
The responsible management of the Group's real estate assets, notably with regard to the environment, illustrates how the responsible investment approach has been incorporated into mainstream management for AXA IM's specialized team.
1) AXA REIM: the responsible management of real estate assets
Asset management covers not only equities and bonds, but also real estate assets. Within the Group, real estate represented over 30 billion euros in 2006. Real estate comprises material goods that may have a significant environmental footprint, notably in terms of power consumption and greenhouse gas emissions. How they are managed directly affects the environment.
AXA Real Estate Investment Managers (AXA REIM), AXA IM's specialized subsidiary, is responsible for managing this category of assets in nine European countries. AXA REIM France represents the largest subsidiary. Since it was set up, its priorities have changed, moving from ensuring compliance with the real estate regulations in force to proactively promoting a preventative approach aimed at optimizing safety and security for its assets.
At all times, the company is committed to managing risks effectively and fighting against the use of illegal workers on building sites. To achieve this, it works closely with the managers and representatives of developers responsible for any work carried out on assets managed by AXA REIM. When dealing with its partners, AXA REIM aims to make them more aware of such issues and encourage them to take them on board. The concrete steps taken to make this happen include regular reports and a focus on a certain number of points such as choosing power sources that are cleaner in terms of greenhouse gas emissions and more energy-efficient, or adopting solutions for preventing ground pollution. AXA REIM has a dedicated budget for such matters. The aim is to anticipate and meet the expectations of stakeholders, from clients through to institutional investors, as well as the people living and working in the properties.
An exemplary renovation program
This responsible approach was illustrated by the renovation of the OPUS 12 building in the heart of the Paris-la Défense business district, with AXA REIM France committed to ensuring compliance with the new conditions, even though this was not actually required for this project. In this way, OPUS 12 now meets most of the performance targets set in the French High Quality Environment standards.
1.1) AXA REIM France's environmental charter
Not content with simply applying stringent health and safety standards to guarantee the quality of all of the properties under its management, AXA REIM France has also made a concrete contribution to the AXA Group's sustainable development policy by drawing up an environmental charter with a specialized consulting firm.
This charter represents an environmental frame of reference for all of AXA REIM's assets that are under construction or redevelopment. Based on the French High Quality Environment standards, it covers all of the issues relating to construction projects, such as the comfort, flexibility and durability of facilities, the health of occupiers, the level of energy efficiency, the exterior, the facade, work carried out, and access for people with reduced mobility. This charter has also been given out to the main property developers as well as representatives of the developers and property managers involved in all construction and renovation projects for residential and office properties. Specific binding commitments and objectives are also associated with each aspect.
1.2) A similar approach in Belgium
AXA REIM has followed the same approach in Belgium, where real estate assets represent around 10% of all the assets held by AXA Belgium. The organization's vision for the environmentally friendly management of its properties is built around four key goals:
- To build on non-polluted land (if an anomaly is detected on the construction site, AXA REIM carries out in-depth work to bring it into line with standards);
- To keep power consumption levels as low as possible (quality insulation for windows, water, electricity, oil and gas consumption, and air-conditioning facilities);
- To ensure the durability of all materials used in buildings in order to provide maximum comfort for tenants;
- To involve suppliers (contractors, architects and advisers must all work in line with the long-term quality philosophy recommended by AXA REIM).
Experience managing properties with a social focus
The Logement Français Group, in which AXA France Vie is the majority shareholder with an 80% stake, is specialized in the construction, acquisition and management of social housing, urban renewal and redevelopment. In 2006, the Logement Français Group had some 73,000 social housing units, with half of the tenants from households entitled to welfare. Since it was founded in 1957, this real estate group has been working to meet demand for social housing by giving its offering a sustainable focus through its active construction policy, its stringent quality requirements and its desire for social mixing.
The Group has notably set up a social division with a view to developing its know-how on social actions and urban social development. Among other things, the aim is to carry out social integration operations in various districts, offer social residency services adapted for the most underprivileged sectors and housing adapted for the elderly or disabled, or even making social advisers available to work with tenants in difficult situations.