Environmental footprint management & targets
Through its environmental policy and strategy, AXA, as an insurer, investor and global corporation, can play an important role in raising awareness about environmental protection amongst its stakeholders, contributing to improve the understanding of global and local environmental risks and committing to address climate change. In addition, AXA has also set an environmental reporting and management system to measure, reduce and report on its environmental footprint. The process is based on an annual reporting system which enables us to optimize the management of our major environmental impacts, including paper, power and water consumption, as well as the production and recycling of waste through environmental targets.
Science-based environmental targets 2018-2025
AXA’s environmental targets, for the 2018-2025 period (pending approval from SBTi, see below), are as follows:
- 25% reduction in AXA’s CO2 emissions (in absolute terms t.CO2 eq.) broken down into the following CO2 emissions reduction sub-targets: -20% from AXA’s vehicle fleet emissions ; -35% from AXA’s power consumption linked to building and data centers ; -15% from AXA’s business travel emissions.
- Source 100% of AXA’s electricity consumed (office sites and AXA-owned data centers) from renewable energy sources by 2025, in line with our “RE100” commitment (RE100 is a coalition of companies pledging to buy 100% of their electricity from renewable sources, see box).
- Reduce waste by 15%.
- Reduce water consumption by 15%.
Our absolute CO2 emissions target represents a 17% CO2 emissions reduction per Full Time Employee equivalent.
Our 2018-2025 CO2 emissions reduction targets are based on the approach promoted by the “Science Based Targets” initiative, which AXA joined in 2015. According to the SBT, targets adopted by companies to reduce greenhouse gas emissions are considered “science-based” if they are in line with what the latest climate science expects from companies to meet the goals of the Paris Agreement to limit global warming to well-below 2°C above pre-industrial levels. More specifically, AXA has chosen the “Sectoral Decarbonization Approach” to produce these targets. These targets have been submitted for validation in Q2 2019; they are pending approval from the SBT.
AXA strives to source 100% of its electricity consumed (office sites and AXA-owned data centers) from renewable energy sources by 2025, as part of its “RE100” commitment. RE 100 targets are part of AXA’s new Science Based Targets. Progress against this target is described below. As part of our RE100 commitment, AXA has committed to sources electricity through:
- A green contract.
- Ensuring that the electricity we are purchasing from our supplier comes with a Green electricity certificate which enables client to trace the energy production sites. Renewable electricity is sourced from Solar, Hydro, Geothermal, Biomass and wind. In cases where we are buying certificates ourselves, we ensure its independent certification (eg. Guarantee of Origins, Renewable Energy Certificates and I-RECS).
- Produce our own energy: where possible, our entities are encouraged to produce energy locally.
Our results 2012-2018
AXA’s previous target for the 2012-2020 period was to reduce CO2 emissions per Full-Time Employee (FTE) by 25%, broken-down into the following sub-targets:
- -35% power consumption (kwh/FTE)
- -15% business travel: vehicle fleet (km/FTE)
- -5% business travel: air and train (km/FTE)
- -45% office paper (kg/FTE)
- -50% marketing and distribution paper consumption (kg/ client)
The Group had also set two environmental targets that are unrelated to carbon emissions:
- -15% water consumption;
- 95% of paper must originate from recycled or sustainable sources.
In 2018, AXA met its global target of reducing -25% CO2 emission/FTE, which is a new environmental target setting exercise, in line with SBT requirements, was launched.
2012-2018 Progress on targets
AXA’s CO2 emissions per FTE related to energy, paper and business travel (air, rail and car fleet) decreased by 38% between 2012 and 2018. We have realized -120% progress towards target realization.
AXA’s power consumption decreased by 25% between 2012 and 2018 in absolute terms, and by 37% per FTE, a 103% target achievement. In 2018, 55% of the electricity consumed by AXA originated from renewable energy sources.
Overall business travel per FTE has decreased by 9% between 2012 and 2018. AXA’s car fleet usage decreased by 29% (a 121% target achievement). But business travel by air & train has increased by 13% per FTE. Business travel trends are closely correlated to our business dynamics, despite the implementation of online collaborative tools which help to reduce business travel.
Vehicle fleet profile
AXA’s car fleet is gradually shifting towards lower fuel-consumption vehicles.
AXA’s use of paper concerns office (printing, measured per employee) and marketing & distribution (leaflets, etc., measured per customer). AXA’s office paper consumption per FTE decreased by 54% between 2012 and 2018, but our marketing and distribution paper consumption increased by 6% per customer. In 2018, AXA bought 58% of its office paper and 41% of its marketing and distribution paper from recycled sources. Additionally, in 2018, AXA also procured 58% of office paper and 41% of marketing and distribution paper from recycled sources.
AXA’s water consumption per FTE has decreased by 19% between 2012 and 2018, a 95% target achievement.
In 2018, AXA’s sorted paper for recycling decreased by 39% between 2012 and 2018. This decrease in the total recycling rate is due to the overall decrease in office paper consumption. Unsorted waste has decreased by 29% between 2012 and 2018, and the recycling rate of cartridges and toners has increased by 22%, while non-recycled cartridges and overall use of cartridges and toners has reduced by 62%.