Please enable your browser JavaScript to view the video

Investing in the climate transition

The scale and urgency of change needed to ensure global greenhouse gas emissions are aligned with a 1.5 degrees Celsius pathway will impact every part of the global economy.

Our Climate Transition Global Credit strategy invests in debt securities of companies driving fundamental changes toward a sustainable future. We invest with a dual objective, which we believe are equally important and positively aligned to deliver:

Long-term capital growth

To support the transition to a lower carbon world

Investment opportunities in the strategy are linked to the following investment themes and aligned with the principles of the following United Nations Sustainable Development Goals:

Affordable and clean energy

Climate action

Our approach

We look beyond company emissions to identify the winners from the transition across a broad range of sectors. First, we exclude more carbon-intensive fossil fuel companies. We then invest in debt securities of companies either mitigating or adapting to climate change or are transition- oriented, while leveraging our scale and influence to engage with portfolio companies. This approach can lead to the following investor benefits: profitable growth, resilience across market cycles and influencing positive outcomes.

Portfolio construction

Our proprietary model covers a broad range of industries and seeks to reduce decarbonisation and physical climate risks embedded in corporate value chains. This results in a high conviction, but diversified portfolio.

Back transition

The journey to net zero presents risks and opportunities across all sectors. Our focus on solutions and transition themes allows us to identify companies whose services and products deliver tangible climate outcomes. It also helps maximise the strategy’s opportunity set and potential to deliver consistent, long-term outperformance. 

Leaders in stewardship and engagement

All portfolio holdings are targeted with two timebound engagement asks: Science-based targets and CDP disclosures. We also actively engage with governments, policymakers, NGOs, academics and other key influencers to correct material market failures.

Climate investment strategy

Aviva Investors Climate Transition Global Credit Strategy

This strategy lends to investment-grade companies globally either providing solutions to climate change or orientating their business models to a low-carbon economy, while avoiding the most carbon intense fossil fuel-based companies.

Building resilient portfolios while supporting positive climate outcomes

Justine Vroman and Thomas Chinery explain how an understanding of climate risk can help in building a resilient global credit portfolio that also aims to support real-world change.

Download whitepaper

Aviva Investors Climate Transition Global Credit: Strategy in brief

PDF 2.0 MB 10 pages

The strategy has limited exposure to carbon-intense fossil fuels and invests in debt securities of a broad range of companies across sectors that are best positioned to benefit from the transition to a low-carbon world.

Key risks

For further information on the risks and risk profiles of our funds, please refer to the relevant fund documents.

Investment risk & currency risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.

Credit and interest rate risk

Bond values are affected by changes in interest rates and the bond issuer's creditworthiness. Bonds that offer the potential for a higher income typically have a greater risk of default.

Derivatives risk

The fund uses derivatives; these can be complex and highly volatile. Derivatives may not perform as expected, which means the fund may suffer significant losses.

Illiquid securities risk

Certain assets held in the fund could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Climate Transition Global Credit team

Climate change views