Investing in the natural capital transition

We believe that the risks and opportunities associated with the consequences of natural capital erosion and the necessary measures to reduce biodiversity loss, regenerate the planet and transform the economy into one that is nature positive are becoming increasingly important.

We believe markets will increasingly price in the costs and opportunities of addressing natural capital depletion. The World Economic Forum estimates the transition to a nature-positive economy, with critical shifts in land, oceans, infrastructure and energy, could deliver an estimated $10 trillion of business opportunities and 395 million jobs by 2030.2

Our Natural Capital Global Equity Fund fund targets opportunities aligned to the principles of the United Nations’ Sustainable Development Goals (see below specific SDGs) that support and benefit from the transition to a nature-positive economy. We invest with an active, high-conviction approach to address the needs of investors seeking two objectives:

Long-term capital growth

To support the transition to a nature-positive economy

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:

Circular economy

Climate action

Sustainable ocean

Sustainable land

Our approach

We focus on pairing natural capital credentials of companies alongside shareholder return, and go beyond a simple approach of only investing in companies providing solutions to reduce human impact on nature, to instead also invest in companies transitioning their business models towards a nature-positive economy. Moreover, we seek to drive further positive change by engaging with investee companies on specific biodiversity issues.

Natural Capital credentials alongside shareholder return

In our stock selection process we place significant emphasis on any company having to demonstrate both natural capital credentials and shareholder return as we aim to deliver profitable growth for our clients from exposure to the natural capital theme.

Operational leaders

Our proprietary transition risk model helps identify companies leading in aligning their business models to a nature positive economy across all sectors. Our approach aims to deliver more resilient performance over the long term, uncover more alpha opportunities, and more effectively support the natural capital transition than by investing in solutions-focused companies alone.

Bespoke engagement

We engage with all portfolio companies on specific natural capital issues. Our three-year structured engagement programme systematically tracks all companies with an escalation pathway that could ultimately lead to divestment if we are not satisfied with their progress.

Natural Capital Global Equity Fund

Aviva Investors Natural Capital Global Equity Fund (SICAV)

This fund aims to deliver long-term capital growth by investing in companies globally that either provide solutions to reduce biodiversity loss or are transitioning their business models to manage their impact on nature, while avoiding those that do not meet minimum environmental criteria.

Evidencing how we are progressing against our sustainable outcomes objective

This report looks at the progress the fund has made in 2023, in delivering tangible sustainable outcomes for clients, across the companies invested in as well as through company engagement and macro stewardship.

Read more

Key risks

Full information on the risks applicable to the Fund is detailed in the KIID and Prospectus.

Investment risk and 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.

Equities risk

Equities can lose value rapidly, can remain at low prices indefinitely, and generally involve higher risks — especially market risk — than bonds or money market instruments. Bankruptcy or other financial restructuring can cause the issuer's equities to lose most or all of their value.

Counterparty risk

The fund could lose money if an entity with which it does business becomes unwilling or is unable to meet its obligations to the Fund. 

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.

Derivatives risk

Derivatives are instruments that can be complex and highly volatile, have some degree of unpredictability (especially in unusual market conditions), and can create losses significantly greater than the cost of the derivative itself.

Sustainability risk

The level of sustainability risk to which the fund is exposed, and therefore the value of its investments, may fluctuate depending on the investment opportunities identified by the investment manager.

Natural Capital Global Equity portfolio managers

Explore all funds

Access key fund documentation and performance reports.

View Fund Centre

Need more information?

For further information, please contact our investment sales team.

Contact us

Our views

1. SwissRe Biodiversity and Ecosystem Services (BES) 2020. IPBES (2019) Global assessment of the status of biodiversity and ecosystems. Planetary boundaries: Stockholm Resilience Centre. Ecology ecosystem services.

2. New Nature Economy Report II: The Future of Nature and Business', World Economic Forum, July 14, 2020.

Note for UK Investors: This Fund is domiciled in Luxembourg and is authorised by the Commission de Surveillance du Secteur Financier (CSSF). The Fund is recognised in the UK under the Overseas Funds Regime but is not a UK-authorised Fund and therefore is not subject to UK sustainable investment labelling disclosure requirements. UK investors should be aware that they can make a complaint about the fund, its management company, or its depositary. However, complaints may not be eligible for resolution by the UK’s Financial Ombudsman Service and any claims for losses related to the management company or depositary will not be covered by the Financial Services Compensation Scheme (FSCS). UK investors should consider seeking their own financial advice before making any decisions to invest and refer to the scheme prospectus for further information.