A big part of integrating ESG into our investment decisions is making sure that it is embedded across the investment process. Two ways of doing this is our Responsible Investment Officer Network and the integration of ESG into the way investment team members are remunerated.
Champions across the business
We believe that for responsible investment considerations to have a positive and meaningful impact on investment decisions, they must be fully embedded within the fundamental investment process. Aviva Investors has established a Responsible Investment Officer Network (RIO) of over 40 investment and business specialists representing various asset classes and offices across the organisation. The RIO Network includes representatives from equities, fixed income, multi-asset, alternatives, and real assets as well as client facing functions and internal risk and control teams.
The RIO network meets formally on a quarterly basis, and works collaboratively with the responsible investment team in developing and implementing bespoke ESG integration strategies across asset classes and regions. Members of the RIO Network also receive regularly internal and external ESG training.
Making sure ESG is part of Aviva Investors’ annual remuneration plan
Aviva Investors was one of the first large asset managers to make the integration of environmental, social and governance (ESG) factors part of the pay criteria across the firm, including its investment desk heads. Through our Global Reward Framework, all investment employees should support responsible investment and integrate ESG issues into their investment processes.
The GRI Team undertakes an annual evaluation of investment professionals on the extent to which they supported ESG integration during the year. The results of the evaluation are subsequently shared with the heads of each investment function as well as Aviva Investors’ Head of Reward, to ensure that commitment to ESG is reflected in compensation outcomes so that a modest but meaningful part of their annual compensation is linked to ESG performance.