AXA IM launches plastic and waste transition fund

AXA Investment Managers has launched a fund dedicated to plastic and waste transition to support the UN Sustainable Development Goals, particularly the responsible consumption and production goal.

The AXA WF ACT Plastic & Waste Transition Equity QI fund invests in companies that are aligned with UN SDG 12, which promotes responsible consumption & production, including methods such as limiting plastic use or maintaining efficient waste management practices.

AXA said that it expects plastic and waste transition to drive long term investment opportunities in segments of the market such as "sustainable packaging" and "plastic recycling".

Managed by the AXA IM Equity QI team, the fund is part of AXA IM's ACT range and invests in large-, mid- and small-cap companies across developed and emerging markets.

Stock selection for the fund is based on a proprietary quantitative process that incorporates both financial and non-financial data, including through the use of natural language processing, that can analyse if firms are actively articulating a plastic or waste approach in their earnings calls.

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Jonathan White, head of investment strategy and sustainability in AXA IM Equity QI team, said: "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.

"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.

"As such, it is our view that companies that are facilitators or leaders in waste management and plastic-use are not only sustainable investments but could also be an attractive long term investment opportunity."