The AXA Group's local and international commitments
AXA also made a number of international commitments that reflect its leading role in promoting sustainable development worldwide. Indeed, AXA is an active member in many international and national organizations whose aim is to advance the sustainable development agenda.
Global Compact
Launched in July 2000 by UN Secretary General Kofi Annan, the Global Compact seeks to encourage businesses, UN agencies, the labor market and NGOs to work together to integrate 10 universal principles on human rights, labor, the environment and the fight against corruption. The Global Compact is based on the rules of international law adopted by the majority of countries, such as the Universal Declaration of Human Rights and the standards promoted by the International Labor Organization.
AXA is an "active member" of the Global Compact. Through its commitment to support the Compact, AXA undertakes to uphold its 10 universal principles on human rights, working conditions, protecting the environment and fighting against corruption. More specifically, AXA took part in work to prepare for the tenth principle - against corruption - which was adopted in New York on June 25, 2004.
Each year, as an "active member", AXA updates the Global Compact database with information on best practices that reflect these 10 principles, such as its environmental reporting system, its "Scope" HR survey and its diversity policy.
The ten Global Compact principles
Human rights
1- Businesses should support and respect the protection of internationally proclaimed human rights, and,
2- Ensure that they are not complicit in any human rights violations.
Labor standards
3- Businesses should uphold the right to freedom of association and collective bargaining, and
4- The elimination of all forms of forced and compulsory labor,
5- The effective abolition of child labor,
6- The elimination of discrimination in respect of employment and occupation.
The environment
7- Businesses should support a precautionary approach to environmental challenges, and,
8- Undertake initiatives to promote greater environmental responsibility,
9- Encourage the development and diffusion of environmentally-friendly technologies.
Fight against corruption
10- Businesses should work against corruption in all its forms, including extortion and bribery.
Geneva Association: Kyoto Statement on climate change
AXA signed the "Kyoto statement" of the Geneva Association. This declaration is a major commitment of the world's largest insurers, attesting the deep concern of climate change and its consequences to the insurance industry, with key messages against the potential economic and social backdrop.
The International Association for the Study of Insurance Economics, or by its short name "The Geneva Association", is formed by 80 chief executive officers (CEOs) from the most important insurance companies in the world. It tries to identify fundamental trends and strategic issues where insurance plays a substantial role or which influence the insurance sector. In parallel, it develops and encourages various initiatives concerning the evolution of risk management. This "Kyoto statement" affirms that climate change and its economic and social consequences are of serious concern to the insurance industry.
Against this backdrop, the insurance industry commits to play a major role in the global efforts to counter climate risks. More precisely, the leaders of the world's largest insurance companies commit towards their main stakeholders - customers, policymakers, UN's Climate Change Conference (COP15), with insurance industry peers - with strong key actions, among which:
- enhancing research capabilities,
- providing innovative solutions by funding relevant research and providing tools to materialize them,
- developing products in order to reduce greenhouse gas emission levels, designing insurance products to support low-carbon energy projects and investing more in this type of projects,
- helping policymakers counter climate risks through active cooperation in implementing building codes for instance,
- communicating climate risk levels to customers, as well as strategies for mitigation and adaptation, and also quantifying financial benefits of those strategies.
The statement summarizes the means and the position the insurance industry has in providing services and solutions against climate risks and declares that actions should always be taken in common with the other stakeholders, within a framework of adaptation.
Caring for Climate
AXA signed the "Caring for Climate, The Business Leadership Platform", a voluntary action platform for companies that seek to demonstrate leadership on the issue of climate change. Jointly backed by the UN Global Compact, the World Business Council for Sustainable Development (WBCSD) and the UN Environmental Programme (UNEP), it is designed to advance practical solutions, and shape both public opinion and public policy. AXA joined this initiative in July 2008 in the belief that climate change requires firm and collective action as well as enhanced private-public partnerships. The actions AXA has already undertaken to address climate change illustrate the reality of this commitment.
UNEP FI
In April 2002, AXA signed up to the Finance Initiative section of the United Nations Environment Programme (UNEP FI).
The UNEP FI in brief
In 1991, the UNEP created the Finance Initiative section in line with its view that the financial sector had a major role to play in promoting economically, socially and ecologically sustainable development. In 1995, within the framework of the UNEP, a group of insurers and reinsurers drew up a Statement of Environmental Commitment for the insurance industry, with signatory companies undertaking to work towards striking a balance between economic development, human well-being and a healthy environment. In 2003, the financial and insurance initiatives were combined with a view to developing joint taskforces looking at various areas, including:
- Sustainable development reporting
- Asset management
- Real estate
- Climate change
- Insurance
In connection with the UNEP FI, AXA has contributed to the creation of the new insurance Working Group, bringing several leading insurers together in order to look into how to incorporate sustainable development issues into the heart of the insurance business. AXA hosted this Working Group's first meeting in March 2006 with a view to actively preparing for the implementation of its program for 2007. AXA was then elected to co-chair the Insurance Working Group and has actively contributed to the drafting of its first publication : "Insuring for Sustainability : Why and how the leaders are doing it" (May 2007).. AXA is also an active member of the climate change and real estate working groups.
Carbon Disclosure Project (CDP)
Attentive to the consequences of climate change, and as a major global investor, AXA pays great importance to building awareness in the businesses in which it invests, as well as the risks and opportunities linked to the impact of carbon emissions on the climate. Providing the market and investors with the best possible information represents another objective shared with the CDP.
The CDP represents an opportunity for businesses to improve their operations by reducing their carbon footprint and protecting themselves against a certain number of related risks. As an insurer, the Group is committed to preventing risks, helping its clients to prevent them and, by doing so, understand them more clearly.
The Carbon Disclosure Project in brief
The CDP was created by institutional investors in order to make the economic world more aware of the risks and opportunities associated with the consequences of carbon emissions for the climate, in addition to helping institutional investors assess the possible impacts of climate change on the value of their portfolios more effectively, and encouraging businesses to pay closer attention to their CO2 emissions. The CDP groups together 385 institutional investors managing a combined total of over 57,000 billion dollars of assetsThis initiative is backed by the United Nations Environment Programme (UNEP).
AXA has supported the Carbon Disclosure Project since 2003, taking part in a survey conducted by the CDP based on a questionnaire sent out to the top 500 listed companies. AXA, as part of the FTSE 500, completes the CDP questionnaire since 2003. As of 2006, AXA has been a "Member" of the CDP, co-producing the publication and presentation of the survey results.
In October 2008, the results of the SBF 120 survey were presented at AXA's head office. The SBF 120 review, which was conducted for the third time in France on the country's 120 leading corporations, assessed the risks and opportunities associated with climate change and global warming for businesses. This year's French results showed a 40% increase in response rates compared to the first edition in 2006 to reach 63%.
In 2008, 95% of companies identified at least one type of business opportunity linked to climate change, a significant increase compared to 65% in 2006 and 82% in 2007. However, 97% also declared identifying at least one type of risk, confirming the awareness of risk already present previous years (79% in 2007 and 57% in 2006). In both cases, the most frequently identified risks and opportunities were regulatory and linked to the physical impacts of climate change. Carbon emissions strategy can therefore be perceived as a risk and/or opportunity which will vary in relation to the sector of activity and the volume of GHG emissions. Although French companies showed an increasing awareness this year with stronger resources put in place to tackle climate change, French companies need to be more proactive in managing their climate risk by transforming them into opportunities and by innovating their products and services to meet these new global challenges. Although French companies showed an increasing awareness this year with stronger resources put in place to tackle climate change, French companies need to be more proactive in managing their climate risk in order to develop a sustainable future and to create new opportunities.
Observatoire sur la Responsabilité Sociétale des Entreprises (ORSE)
AXA is a founding member of ORSE (France), a not-for-profit organization established under the French Act of 1901, whose role is to gather, analyze and publish information, documentation and research on corporate social responsibility and socially responsible investment in France and abroad.
AXA is also part of a taskforce looking at non-financial ratings for businesses, and is active in the ORSE Finance Club and the ORSE Sustainable Development Club.
Entreprise pour l'Environnement (EpE)
AXA is a founding member of Entreprise pour l'Environnement (EpE), a not-for-profit organization set up in 1992 to promote more effective environmental protection management through open discussion with all stakeholders, aimed at encouraging more rational decision-making and setting clear priorities. AXA is involved in several of this organization's taskforces.
Institut du mécénat social - Entreprendre pour la Cité (IMS)
An association set up in 1986 by Claude Bébéar, AXA's founder and the current Chairman of its Supervisory Board, and a group of business leaders, the Institut du mécénat social-Entreprendre pour la Cité is made up of more than 130 businesses that are committed to partnerships with community stakeholders focused on sustainable development. Its mission involves helping businesses incorporate innovative community policies, based on partnerships with other community players, into their corporate social responsibility policies.
IMS-Entreprendre pour la Cité encourages businesses to develop community policies that create value for the areas that they are located in, while paving the way for greater social equality. AXA is an active member of IMS-Entreprendre pour la Cité, taking part in several projects being carried out by this association, notably on diversity-related issues. IMS also supported the launch of the diversity charter signed by AXA France.