· Risks and opportunities
- Stakeholder relationships
AXA concisely links its material issues to the company’s risks and opportunities in a two page spread in their 2016 Integrated Report. The material risks are initially plotted according to their level of importance (in accordance with 3.28 of the <IR> Framework) and the relevance of the risk/opportunity to both AXA respondents and external stakeholders. This also shows compliance with 3.12 of the <IR> Framework which discusses stakeholders’ role in providing insights into risk management. Individual risks are further categorised into six classes (Environmental, Technology, Financial, Social, Health and Business).
The corresponding page then outlines how discussions from a Stakeholder Advisory Panel have highlighted five major issues relating to the company’s ability to create long-term value: Digital, Climate Change, Demographic Transition, Cyber Risk and Financial Risks. Each of these issues is discussed in terms of the ‘Risk’ it poses, the ‘Opportunity’ presented and the ‘Action’ AXA has subsequently taken. This adheres to 4D of the <IR> Framework where it is stated that Integrated Reports should highlight the risks and opportunities that affect the organisation’s ability to create value.