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 Equity Fund invests in companies driving fundamental changes in the transition to a lower carbon world. 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 net zero economy
Our approach
We seek to identify the potential winners from the transition across a broad range of sectors. First, we apply our firm-wide baseline exclusions policy and specific fund-level exclusions for fossil fuels. We then invest in companies either mitigating or adapting to climate change, or companies orientating their businesses to be resilient in a low-carbon economy. Furthermore, we leverage our scale and influence and engage with portfolio companies to accelerate progress. We believe this approach can lead to the following investor benefits: profitable growth and resilience across market cycles while seeking to support the climate transition.
Three-dimensional view
We look for companies with a competitive advantage that can turn a sustainable focus into profitable growth, whilst supporting the transition to a net zero economy.
Back transition
The journey to net zero presents risks and opportunities across all sectors. Most climate strategies are structurally biased towards growth stocks but our focus on transition as well as climate solutions allows for a more flexible exposure.
Bespoke engagement
Each portfolio company has a bespoke, timebound engagement plan linked to the sustainable investment objective focusing on Science Based Targets and Carbon Disclosure Project (CDP) disclosure.
Climate Transition Equity investment strategies
Aviva Investors Climate Transition Global Equity Fund
This strategy aims to deliver long-term capital growth by investing in companies globally supporting and benefiting from the transition to a net zero economy.
Evidencing how we are progressing against our sustainable outcomes objective
This report looks at the progress the fund has made in 2022, in delivering tangible sustainable outcomes for clients, across the companies invested in as well as through company engagement and macro stewardship.
Key risks
Full information on risks applicable to the Fund are in the Prospectus and the Key Investor Information Document (KIID).
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.
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.
Emerging market risk
Investments can be made in emerging markets. These markets may be volatile and carry higher risk than developed markets.
Derivatives risk
Investments can be made in derivatives, which can be complex and highly volatile. Derivatives may not perform as expected, meaning significant losses may be incurred.
Specialist Fund Risk
Certain investments in the fund may be more susceptible to foreign government policies, including tax incentives and subsidies, as well as political support for certain environmental initiatives and developments. Under certain market conditions, the Fund may underperform funds that invest in a broader array of shares in global companies, for example, funds that do not provide any screening of companies undertaking fossil fuel activities.
Aviva Investors Climate Transition Global Equity: Strategy in brief
The strategy has limited exposure to carbon-intense fossil fuels and invests in a broad range of companies across sectors that are best positioned to benefit from the transition to a low-carbon world.
Strategies in focus
Sustainable transition
A range of strategies investing in opportunities to accelerate change for Climate, People and Earth.
Climate Transition Equities team
Max Burns
Global Equities Portfolio Manager & Head of Equity Research
Need more information?
For further information, please contact our investment sales team.
Climate change views
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The tipping point for climate finance: Making financial flows consistent with the Paris Agreement
29 Nov 2023
Transition plans, including from governments in response to the Global Stocktake, will be crucial to bring about the shift to a low-emissions, climate-resilient world. Markets need clear implementation signals to align capital with the goals of the Paris Agreement. Our in-depth report calls for the creation of a transition-plan ecosystem connecting all levels of the global economy.
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The time to lead: Reforming multilateral development banks through a climate lens
28 Nov 2023
To have a chance of limiting global warming to less than two degrees, the world must unlock huge investments in emerging markets. This is prompting calls for the reform of multilateral development banks, but will this be enough?
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Deals delayed and crowded trades…But investors can still find value in infrastructure debt
4 Sep 2023
Private infrastructure debt still offers a broad spectrum of opportunities, but investors face complex challenges. In this Q&A, our infrastructure debt team contemplate the current state of the market and where it goes from here.
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Tipping points and transformation: Getting on the right side of change
16 Aug 2023
Rapid changes in the global economy could tip some sectors into low-carbon phases faster than incumbents expect, with important investment implications.
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Charging up: Batteries and the fight against climate change
5 Jan 2023
Batteries are set to play a crucial role in helping to decarbonise the global transport and energy sectors. As capital floods into an industry experiencing exponential growth, we look at the key considerations for investors.
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Confronting a permacrisis? The intersection between antimicrobial resistance, climate change and biodiversity loss
23 Nov 2022
Will a warmer and less biodiverse world give pathogens new opportunities, and do we have the tools to confront disease? This report discusses the complex intersection of three planetary crises and calls for urgent action to slow resistance to antimicrobial drugs – an obvious public health emergency.
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Deep water: Ten threats to marine ecosystems
8 Jun 2022
Our air, weather, food, the health of diverse marine life and millions of jobs all depend on the ocean. But we have not done well as custodians of marine ecosystems. Here, we set out ten ways where human actions threaten the health of an essential environment.
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Energy in focus: Part 2: The pivot to green
28 Mar 2022
How will the surge in the prices of oil, gas and coal impact the transition to low or zero carbon sources of fuel? In the second part of our Q&A on the energy sector, experts from our credit, equities and ESG teams contemplate the challenges and opportunities in the pivot to green.
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Energy in focus: Part 1: The last hurrah for fossil fuels?
24 Mar 2022
The fallout from the conflict between Russia and Ukraine has highlighted the fragility of energy markets, with significant implications for the global economy.
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What does the data say? ESG in focus
25 Feb 2022
In this month’s instalment of our visual series on topical data themes, we look at some of the major ESG trends and metrics of the last few years.
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Valuing nature: An interview with Elizabeth Maruma Mrema
17 Feb 2022
In this interview, AIQ catches up with Tanzanian biodiversity leader and lawyer Elizabeth Maruma Mrema about the threat of biodiversity loss, the recent Kunming Declaration and missed Aichi Biodiversity Targets, as well as the role of finance in protecting nature.
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Nature’s domino effects: An interview with Sean B. Carroll on the biodiversity crisis
10 Feb 2022
In this interview, AIQ catches up with biologist and science writer Sean B. Carroll about nature’s hidden connections and why human beings must act to reverse biodiversity loss.
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Powering up: How the drive to meet net zero targets will scale up electricity demand
26 Jan 2022
Decarbonising energy is leading to a raft of infrastructure challenges for the electric grid. So, what will this mean for investors?
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Nature shock: Grappling with nature-based risk
19 Jan 2022
Could nature degradation prove a significant threat to corporate and financial stability? As climate change accelerates, oceans acidify, deforestation and soil erosion continue and species are lost, this important question is weighing on investors and financial regulators around the world.
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Investing for climate action: Easy as SBTs?
11 Jan 2022
With governments struggling to turn words into action on climate change, investors can ensure the private sector plays its part by pushing firms to adopt science-based targets, argues Rick Stathers.