As an asset manager specialized in the financial sector, Axiom seeks to promote the transition to a socially just and low-carbon economy while seeking superior risk-adjusted returns. We are cognizant that the European banking sector plays a key role for the achievement of such a transition as it finances more than 70% of the EU economy, while only 30% is financed through capital markets. The energy transition will therefore not happen without banks’ action. Promoting action from the banking sector contributes positively to the climate.
In addition, we acknowledge that empirical research has established a link between firm performance and ESG performance. All this coupled with our focus on subordinated financial debt has led to the development of a Responsible Investment (RI) approach tailor-made for financial institutions which seeks to minimize both the ESG risks than can affect issuers’ financial performance as well as the negative impact that these may have in the economy, the society and the environment.
Our RI approach is comprised of the following tools: