AXA IM plastic fund invests in SDG 12-aligned companies

Team uses NLP to find companies articulating a plastic or waste approach

AXA Investment Managers (AXA IM) has launched as plastic waste transition fund that targets UN Sustainable Development Goal (SDG) 12 – responsible consumption and production.

The AXA WF ACT Plastic & Waste Transition Equity QI fund, which is managed by AXA IM’s equity QI team, invests in large-, mid- and small-cap companies across developed and emerging markets that are aligning with SDG 12 in their production processes, recycling rates or supply chain management.

The management team uses natural language processing to increase exposure to companies that are actively articulating a plastic or waste approach in their earnings calls.

“Companies that are reducing waste and supporting a more sustainable approach to their use of plastic play a key role in the effort to mitigate climate change and stem biodiversity loss,” said Jonathan White, head of strategy and sustainability in the AXA IM equity QI team.

“We expect the next few years to be pivotal in plastics pollution mitigation driven by both government regulation and changing end-consumer preference. These structural trends are likely to drive significant growth in segments of the markets such as sustainable packaging and plastic recycling.”

The fund forms part of AXA IM’s ACT range and is registered and available to professional and retail investors in Austria, Belgium, Denmark, Finland, France, Germany, Italy (institutional only), Liechtenstein, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK.