Responsible investment

The low-carbon transition can bolster countries’ energy security, but it can also increase risk in ways that are easy to overlook. Broad indicators are no longer enough to understand the links between energy transition, energy security and sovereign debt risk.

In the third of four articles, we explore the catalysts that can accelerate the process by which nature markets mature, drawing on examples from renewable energy, water rights, carbon markets and forestry.

Geopolitics, technology and the energy transition are influencing where capital flows, and how investors think about risk, resilience and long-term returns.

Three years into our Climate Stewardship 2030 programme, we are seeing corporate climate strategies being tested for their ability to attract capital, withstand disruption and deliver through changing economic and political conditions. 

Climate change and nature degradation are widely recognised as a source of potentially material financial risks, which will increase in the long term. Tackling them requires international cooperation, such as at the Conferences of Parties (COPs) and effective domestic implementation.

In the second of four articles, we explain how environmental importance does not automatically translate into investment readiness. Investor confidence in future revenues depends on market evidence, contractual certainty and a track record of delivery.

In our latest case study, we look at Glen Dye Moor, a 6,300-hectare site in Aberdeenshire, Scotland. We intend to rejuvenate the land, simultaneously removing carbon from the atmosphere, and delivering financial outcomes for investors and social benefits for local communities.

Sustainability-related regulation is becoming an increasingly material driver of real estate investment decision-making, rather than just a compliance requirement. Jeremy Ho analyses the implications.

Regulation must recognise that sustainable investing incorporates more than the provision of sustainable funds alone.

In the first of four insights, we explain why natural capital is a foundational input into economic activity. Forests, soils, rivers, wetlands, oceans and biodiversity are productive assets that generate products such as timber or food and are natural regulators of water flows. 

As AGM season winds down, we examine the key trends that influenced resolutions and outline our core principles for voting.

Aviva’s Nick Molho looks at this year’s policy priorities and likely developments for the UK’s low-carbon agenda, and reflects on what it means for investors.

From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.

From direct investments and engagement with companies to dialogue with governments and regulators, we believe stewardship efforts can deliver better outcomes for clients.

While there are obstacles to overcome, the coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, says Darryl Murphy.

In the first instalment of a new series of case studies on our real asset investments, we look at Curtain House, a Victorian warehouse Aviva Investors is converting into a modern, environmentally friendly office building.