Responsible investment
Investing in climate-leading financial institutions to support the transition to a low-carbon economy
Our Focus
70% of the European economy is financed by bank loans
As a specialist asset manager, focused on the European financial sector, Axiom Alternative Investments seeks to promote the transition to a socially responsible, low-carbon economy whilst also seeking superior risk-adjusted returns.
Financing over 70% of the EU economy, we are acutely aware of just how important a role the European banking sector has and will continue to play, in achieving this ambition. Banks will underpin the transition to clean energy and it is essential the sector takes action to contribute positively to climate change. Empirical research has already established a link between ESG and corporate performance.
With this and our interest in subordinated financial debt in mind, Axiom Alternative Investments has developed a responsibility-led investment approach. It seeks to minimise ESG risks, which may affect the financial performance of issuers, as well as the lessen negative impact those issuers may have on the economy, society and environment.
ESG controversies database
Litigation is one of the principal ESG risks weighing on financial institutions – the fines and compensation paid by banks over the last 10 years run into the hundreds of billions.
Over the years, Axiom has developed the capability to analyse these legal actions comprehensively and assess the potential risks, as well as the associated investment opportunities. We are then able to include these in our proprietary database.
Axiom Climate Readiness Score
The Axiom Climate Readiness Score (ACRS) is a proprietary tool, created by Axiom Alternative Investments in partnership with ICare, to assess the readiness of banks and insurers in the following areas: climate governance and strategy, climate risk management and contribution to international climate objectives.
Through ACRS, we assess banks' corporate loan portfolios and insurance companies' investment portfolios, and how they align with the sub-2°C target of the 2015 Paris Agreement. ACRS forms the basis of our climate policy and guides our engagement with financial issuers.
ACRS forms the basis of our climate policy.
Axiom Alternative Investments is a member of the Institutional Investors Group on Climate Change (IIGCC). The IIGCC is the European body for investor collaboration on climate change and the voice of investors acting for a prosperous, low-carbon future. The IIGCC has over 360 members in 22 countries, with more than €49,000 billion in assets under management.
