What does it mean to invest in social progress?
Social awareness is a growing topic that can lead to significant structural changes in society. Acting for social progress means investing in companies that offer products and services that aim to reduce the social cost of some the challenges the world is facing such as demographic shifts and climate change, both in developed and emerging countries. Indeed, we are not all equal in the face of the most basic needs such as access to housing, health care or education.
It is possible to act by investing in companies capable of offering solutions to social challenges. Growing collective awareness can create potential investment opportunities. At AXA IM, our approach is focused on the search for long-term value, both financial and extra-financial, with the objective of producing a positive and measurable impact on society.
Access to low-cost housing, infrastructure, financial and digital inclusion.
For example, what is lacking in emerging countries is not business creation initiatives but rather sources of financing. More and more players are developing micro-credit. Similarly, the World Bank has estimated that by 2022, one billion people are expected to remain unbanked. Addressing the needs of this still underserved population would involve improving access to financial services, which represents a potential opportunity.
Protection includes health care, well-being and safety.
As the saying goes, prevention is better than cure. The COVID-19 pandemic has fundamentally accelerated demand for robust preventive measures - as well as highlighting the importance of public support for scientific research. This topic has become a major concern for individuals and a priority of governments.
Social elevation encompasses human capital management, training and entrepreneurship.
In our opinion, companies need diversity across gender, backgrounds and experience to remain innovative and successful. In this area, we see a multitude of investment opportunities in companies that have made a difference to establish themselves as a leader in their market, or companies that offer ‘all-in-one’ digital payment solutions, online learning, childcare or educational consulting.
We are convinced that social impact investing is an investment opportunity for sustainable and profitable growth.
How do you measure the impact of your investment?
To measure the social contribution of an investment strategy, we rely on the reading grid proposed by the United Nations. The impact report of our social progress strategy shows the extent to which the companies in which we invest contribute to the Sustainable Development Goals (SDGs) specifically associated with social challenges. Within our strategy, the direction of our investment decisions is aligned with the SDGs in their social dimension.
No assurance can be given that our equity strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to risks including, but not limited to: equity; emerging markets; global investments; investments in small and micro capitalisation universe; investments in specific sectors or asset classes specific risks, liquidity risk, credit risk, counterparty risk, legal risk, valuation risk, operational risk and risks related to the underlying assets.