AXA Climate, an entity of the AXA group dedicated to climate and environmental adaptation, has launched a new functionality on its Altitude platform, aimed at providing private equity investors with a comprehensive assessment of climate, carbon and nature related risks.
The Altitude platform allows asset management companies to gain a clear understanding of the climate risks for both their existing portfolio and during pre-acquisition.
With the new functionality, companies can now obtain a consolidated view of environmental, social and governance (ESG) risks at both fund and portfolio level, helping them meet key reporting requirements from regulators and institutional investors, AXA explained.
This move, according to the firm, is in response to the increasing importance of climate change issues in the financial sector.
“Altitude has also become a collaborative tool for investment, management, and ESG teams to develop action plans for managing risks and pursuing sustainable value creation,” said an AXA spokesperson. “This makes it an essential tool for companies looking to transform and align their strategies with climate and ESG goals.
“With its latest update, Altitude demonstrates the ever-increasing correlation between climate and finance, as reflected by the expanding prevalence of robust ESG policies and the growing deployment of article 8 and 9 funds.”
Since its launch in September 2022, Altitude has experienced remarkable growth with over 750 companies screened and leading asset management organisations such as Naxicap Partners and RAISE adopting the platform.
Altitude’s algorithm and scientific databases automatically identify all risks related to climate change, carbon emissions and biodiversity loss for businesses, regardless of their sector, size, or location, providing a more accurate valuation and decision-making process for investment committees.
The initial version of the platform empowered analysts to adopt a risk-based approach in their due diligence by incorporating climate data. For each target, it offered a comprehensive summary of the actions required to respond to climate change and mitigate its effects on the environment.
CEO of AXA Climate, Antoine Denoix, continues: “We are delighted to reach this new milestone with Altitude. Private equity will be a powerful lever for transitioning to a more sustainable economy. With Altitude, we are giving them the means to strengthen the fight against climate change and biodiversity loss.”
