Seeking to pair climate and financial advantage

We believe the risks and opportunities associated with climate change demand urgent action, as limiting its impacts is imperative not only for protecting the environment but also for ensuring long-term economic growth and stability. Addressing climate change by transitioning to a low-carbon economy can mitigate systematic risks, unlock new opportunities and create more resilient markets. Companies that effectively manage their impact on climate and adapt to these challenges are better positioned to thrive in this evolving landscape, presenting an opportunity to deliver sustainable value over the long term.

Our approach

We believe an active approach is crucial to generate alpha and identify the leaders and laggards in responding to climate change. First, we apply our firm-wide baseline exclusions policy and Paris-Aligned Benchmark (PAB) exclusions. We then establish a diverse investment universe of companies responding to climate change through our ‘Solutions’ and ‘Operations’ categories. Further fundamental and climate analysis then helps us with our aim to identify a portfolio of companies that have the potential to turn their strong environment efforts into positive financial outcomes. We continue to engage with portfolio companies to assess their progress towards our climate-related expectations.

 

Profitable growth

Our high-conviction, bottom-up approach is founded upon extensive fundamental research, robust climate measures and active risk management. This time-tested approach enables us to have confidence in achieving both financial and climate-related goals.

Greater diversification

The journey to a lower-carbon economy presents risks and opportunities across all sectors. By investing in companies evolving their operations to a lower-carbon world in addition to solutions providers, investors have the potential to benefit from an expanded opportunity set and greater portfolio diversification.

Bespoke engagement

Driving positive climate action through our bespoke engagement programme for companies to adopt science-based targets and provide Carbon Disclosure Project disclosures.

Global Climate Equity funds

Aviva Investors Global Climate Equity Fund (SICAV)

This fund invests in global companies where there is evidence that the companies are responding to climate change by: (1) orientating their business models to a lower carbon economy; and/or (2) providing solutions to mitigate climate change or help communities adapt to the adverse impacts of climate change.

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.

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Aviva Investors Global Climate Equity: Strategy in brief

PDF 1.9 MB 9 pages

Pairing climate with financial advantage, this document highlights our approach to identifying companies that translate positive climate credentials to positive growth.

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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. 

Global Climate Equities team

  • Max Burns

    Global Equities Portfolio Manager and Head of Equity Research

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    Climate change views

    Explore our equities range

    Natural Capital Global Equity

    An equity strategy investing in companies supporting and benefiting from the transition to a nature-positive economy.

    Find out more  about Natural Capital Global Equity

    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.