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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.

Read more

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

PDF 3.4 MB 8 pages

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.

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Climate Transition Equities team

Explore all funds

Access key fund documentation and performance reports.

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Need more information?

For further information, please contact our investment sales team.

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