Responsible investment

Decarbonising energy is leading to a raft of infrastructure challenges for the electric grid. So, what will this mean for investors?

As a key part of our engagement efforts, every January we send a letter to the chairs of companies we invest in (and some we don’t, but still want to use our influence with) to set out our stewardship priorities for the year. Here, in full, is our 2022 letter.

In late 2020, AIQ spoke to Aviva Investors’ senior management about institutional racism and the continued under-representation of black people in finance. They outlined a series of key actions, to improve in-house diversity and inclusion and our engagement with investee companies. A little more than a year on, we explore areas of progress, where more needs to be done, and plans for 2022 and beyond. 

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.

Employers have considerable room for improvement when it comes to the working experience for neurodivergent individuals. But a little more understanding and some fairly simple adjustments could make a world of difference.

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.

Asset managers must promote diversity of thought if they are to future-proof their businesses and provide clients with great service. They can learn valuable lessons on how to do this from tech companies, military leaders and ancient philosophers, writes Apiramy Jeyarajah, head of UK wholesale at Aviva Investors.

Heavy industry and heavy-duty transport are responsible for nearly a third of global carbon dioxide emissions. While reducing emissions from these sectors will be difficult, the transformation will create opportunities for investors.

Recognising that being a good corporate citizen is the right thing to do and pays off is something investors and the financial community need to think harder about, argue Vaidehee Sachdev and Matt Kirby.

Finance must wake up to the risks associated with biodiversity loss and the opportunities that arise from nature-friendly solutions, argue Eugenie Mathieu, Julie Zhuang and Jonathan Toub.

In part two of our series on intersectionality, Apiramy Jeyarajah, head of UK wholesale at Aviva Investors, and Mitesh Sheth, outgoing CEO of Redington, explain what investment organisations can do to maximise the return on their most important assets – their people.

Using the examples of electronics, food, autos and fashion, we explore the benefits of, and challenges to achieving, a more circular economy.

Scientists around the world have highlighted the need to tread more lightly on the planet, halting then reversing the decline of the natural world. But the financial community, including investors, has been slow to respond.

After decades of low returns on research and development (R&D), the healthcare sector is producing a slew of innovations, from drugs to diagnostics. But with many coming from new entrants, will big pharmaceutical companies manage to keep up with the times?

Governments around the world are struggling to avert a climate catastrophe. Regardless of whether they succeed, climate change threatens adverse consequences for government bonds, although market impacts are likely to vary.

Enabling neuroinclusion in the workplace still has a long way to go, although better understanding and simple adjustments could make a world of difference.