The framework comes a part of a multi-year pilot study and will integrate ESG factors across the spectrum of AXA IM's investment capabilities.
With client appetite for ESG factors on the rise, the new framework will give Australian institutional investors a wider opportunity to invest incorporating ESG principles.
"Ever greater attention is being paid by investors, consultants, regulators and asset managers to the importance of ESG factors in decision making," said AXA Investment Mangers' global head of responsible investment Matt Christensen.
"A focus on short-term returns and benchmark tracking has previously hindered ESG integration."
Mr Christensen also noted Australia had some regionally specific challenges with Responsible Investing (RI) strategies.
While concerns over board diversity and the carbon tax have impacted Australian investors, Mr Christenson believes Australia will continue to play a significant role in the growing RI trend.
Craig Hurt, Sydney-based director of AXA Investment Managers in Australia and New Zealand, said that client demand had pushed AXA IM's commitment to RI strategies.
"Our Australian institutional clients - like their global counterparts - are concerned more than ever about investing in companies that have exemplary corporate governance and take into account social and environmental factors in the development of their activities," said Mr Hurt.
