AXA’s objectives, specifically for the global P&C underwriting business, encompass three areas:

1. engagement with clients and partners on the transition
2. development of new products and solutions enabling insurance innovation for a greener economy, and
3. measuring and reporting the impact of these efforts against our most material underwriting emissions reductions objectives.

AXA’s current P&C underwriting policies will also continue to be applied and refined to match AXA climate transition efforts as well as our strategic ambition. 

Taking AXA’s net zero journey to the next level: how AXA will insure the transition

With these new announcements we move forward on our net zero transition journey.

These announcements are possible due in part to the methodological work undertaken within the sector. AXA was a significant contributor to the development of these tools and methodologies for companies to measure and disclose greenhouse gas emissions associated with insurance and reinsurance underwriting portfolios, as well as the protocol for setting underwriting transition ambition.

From now until 2026, AXA will be engaging with our top 200 largest commercial clients globally, to increase their knowledge about climate impacts, transition efforts and associated risks as well as sources of emissions, solutions, and the benefits of disclosure. We are conscious that commercial clients are not all facing the same challenges with global climate transition efforts, and one role of AXA is to help by engaging to understand their unique risks and needs with regards to the climate transition. Engagement approaches with agents and brokers as well with retail motor clients will also be adopted.

Moreover, in the same time frame (by 2026), AXA will strengthen its offers & services to insure the transition, namely by increasing its support for renewable energy installations and infrastructure and by expanding sustainable claims management options and other climate transition products, including nature-based solutions. We are aiming to increase our green and sustainable claims by 10% and retail customers will also benefit from education efforts on sustainable mobility and the electric vehicles transition more broadly.

These activities support the Group intermediate targets for the most material commercial and retail motor portfolios of AXA, by 2030:

• a reduction in the carbon intensity (IAE*/vehicle) of the personal motor portfolio in selected geographies by 20%, using the baseline year 2019
• a reduction in the absolute carbon emissions (IAE) of AXA’s largest commercial insurance clients by 30%, using the baseline year 2021, and
• a reduction in the carbon intensity (IAE/GWP) of all other corporate clients within AXA’s largest markets by 20%, using the baseline year 2021**.  

A collective leadership responsibility - AXA’s call for action 

We want to be an enabler and a supporter of the transition and we are taking concrete actions to drive the broader ecosystem in support of transition efforts.

We want to lead by example but the whole real-economy needs to follow suit: AXA’s underwriting emissions reduction objectives reflect an optimistic-yet-possible view of real economy efforts for a stable and just transition. Achieving these interim targets depends on a number of variables. In particular:

• the real economy, including policy holders, transitioning in line with pathways*** which have been used for AXA’s emissions reduction calculation;
• the energy transition for in-scope economic markets, being in-line with the transition pathways**** used for AXA’s emissions reduction calculation;
• the transition of personal transportation to electric vehicles (EVs) and other low emissions solutions being in-line with government commitments; and
• governments and regulators (including insurance and financial regulators) around the world retaining, strengthening and evolving policies to achieve the emission reductions necessary to meet our targets.

In this regard, measurement and disclosure is a key step in achieving emissions reductions: our efforts to measure underwriting portfolio emissions are limited by the disclosure efforts of the real economy. Until this improves, actions and ambition are limited where only proxy data is available. The intermediate transition targets have been set on a limited scope of AXA’s underwriting portfolio and only include client’s Scope 1 and 2 emissions.  It is possible in the future that additional portfolios may be included and scope 3 GHG emissions integrated.

Moreover, as highlighted above, a significant gap currently exists between policies and science. Policy gap analysis highlights the widening divide between agreed 1.5°C pathways and the estimated impact of currently funded policies.

Despite the known challenges and limitation AXA is taking the first step for its P&C underwriting portfolios. In doing so, we are also calling for collective action to embark all stakeholders on this journey.

This is an investment for the next generation and AXA, as we deliver value to our clients and partners.

Investments

AXA is committed to transitioning its investment portfolio to net-zero greenhouse gas (GHG) emissions by 2050, consistent with a maximum temperature rise of 1.5°C above preindustrial levels by 2100.  

The Group initially set a target to reduce the carbon intensity***** of its portfolio by 50%, relative to 2019 levels by 2030. This target was successfully achieved ahead of schedule, with a 50% reduction by 2024. This progress was primarily driven by active portfolio management and investments supporting the transition to a low-carbon economy.

In early 2025, building on the progress achieved, AXA revised its decarbonization target to a 54% reduction by 2030, and including now infrastructure assets. The Group continues to demonstrate strong ambition in responsible investing by further expanding the scope of its GHG reduction approach with infrastructure assets, in addition to listed corporate bonds, equities, and real estate equity. To ensure measurement consistency, the baseline was slightly adjusted from 64.5 to 65.9 tCO₂e/€m, notably to include the expanded scope of around €20 billion of additional infrastructure assets. This results in a broader coverage of the portfolio – now representing approximately 39% of the General Account assets.

Given the complexity of estimating emissions for private assets – particularly infrastructure – AXA is actively engaging with its asset managers to enhance data quality and develop more robust measurement methodologies. This collaboration is key, as accurately assessing the carbon intensity of private assets remains challenging due to the frequent lack of standardized reporting. 

AXA continues to demonstrate a strong ambition in responsible investing by expanding its decarbonization scope. Leading by example, AXA believes that the entire economy must advance together towards a stable and just transition. Achieving these goals will rely on companies’ alignment with scientific pathways and on continued policy support from governments and regulators worldwide.

AXA’s position on climate change

The science shows there is a need for strong collective action to protect against climate change. Climate change is a medium to long-term risk, with a complex quantification of impacts on our activities. AXA’s strategy is to take advantage of our expertise to provide solutions. Indeed, insurers are well equipped to contribute to the understanding of climate change through their risk management expertise, the vast number of claims data they collect, and the research they can fund to address climate-related risks. They also have a duty to disseminate knowledge about new risks. Through their underwriting decisions, they can also show the risks society is taking and foster prevention actions to mitigate them.

AXA’s climate strategy currently includes the following initiatives:

• Investments: our Responsible Investment strategy is built on four key pillars. First, the Decarbonization Plan aims for a 54% reduction in carbon intensity of our investment portfolio by 2030 compared to 2019******. Second, Transition Financing by committing to invest €5 billion annually in climate transition and €500 million annually in community resilience(g)*******. Third, ESG Integration and Active Engagement ensure that ESG factors are embedded in credit analysis, while we actively engage with investee companies and exercise voting rights at annual general meetings. Finally, Group Responsible Investment Policies set clear standards on critical issues such as coal, oil and gas, tobacco, human rights, and other sustainability-related exclusion.
• Insurance: underwriting restrictions on the coal and oil sands industries, green/sustainable products in both Property & Casualty and Life & Savings ranges, promotion of new insurance solutions designed for developing countries (typically parametric insurance). As a signatory of the UN Principles for Sustainable Insurance, AXA is committed to work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions., as mentioned in the Principle n°2. When relevant, AXA will discuss about Climate or ESG material issues with some of its Corporate clients, and on a more long term and systematic approach, AXA has also initiated this conversation with some of its brokers, either on a one to one format or in the context of the UN Principles for Sustainable Insurance initiatives and forums. See latest Climate Risk Report below for further details.
• Operations: direct environmental footprint targets covering energy & carbon emissions, water and paper (see Environmental footprint management) .
• Thought leadership, NGO partnerships, academic research (AXA Research Fund), public / private partnerships to foster prevention. See latest Climate Risk report for details.
• More recently, the Group has also decided to start addressing the interrelated issue of biodiversity loss through a comprehensive strategy that will be gradually rolled out. See for example AXA’s first report, with recommendations co-signed by AXA and the WWF, on the connections between biodiversity loss and investments.

NOTES

1. Climate or sustainability-related metrics and underlying emissions data are subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used to determine them. There is a limited availability of relevant data: such data is not yet systematically disclosed by issuers, or, when disclosed by issuers or collected from third-party data providers, it may be incorrect, incomplete or follow various reporting methodologies. The measurement techniques used for determining non-financial metrics and data may involve complex modelling processes and research. The use of different measurement techniques can also result in materially different measurements, while the precision of these techniques may vary. The data sources and methodologies for emissions factors are expected to evolve and improve over time and may materially impact targets and the achievement of targets.
2. The interim portfolio transition targets noted above reflect management’s current expectations, and are subject to a number of assumptions, variables and uncertainties. In particular, the achievement of AXA’s transition targets will depend on the overall transition of the world economy and society to net zero in the coming decades which itself will depend on a variety of political, economic, regulatory, civil society and scientific developments beyond AXA’s control. There can be no assurances that our transition targets will be achieved in whole or in part, the timetable for any transition process, or the impact on our business of meeting or failing to meet such targets.

* IAE represents Insurance-Associated Emissions as defined by the absolute carbon accounting standard published by the Partnership for Carbon Accounting Financials

** Commercial IAE values based on client Scopes 1 and 2 emissions

*** Net Zero by 2050:  A Global Roadmap for the Global Energy Sector; IEA: May 2021 and SBTi sector guidance

**** World Energy Outlook 2022; IEA; October 2022

***** The measure used to calculate AXA’s investment carbon footprint is carbon intensity normalized with enterprise value and using Scope 1 and 2 greenhouse gas data (according to the GHG Protocol). This allows a close link to the financing sources of the corporates and hence to our role as an investor. Additionally, it allows an easy comparison among asset classes, portfolios and sectors, compared with other metrics such as revenue or physical intensity.

****** Variation of the Enterprise Value including Cash (EVIC)-based carbon intensity (Scope 1 and 2) of AXA Group's General Account assets between FY2019 and FY2029. The scope covers listed corporate debt and equity, real estate equity and infrastructure assets. It represents in total €182bn as of FY2024, equivalent to 39% of the General Account. Unit: tCO₂ eq/ Euro. millions.

******* Scope: corporate and sovereign debt, real estate and private assets. Timeframe: per annum through 2030