Our climate ambition
The climate crisis represents the greatest long-term threat to life on our planet and societies. We must be active, ambitious and impactful in the face of climate change to shape a better future.
That’s why our ambition is to become a net zero emissions asset manager by 2040*. This won’t be easy, but we believe the impact and consequences of not acting are far more damaging that the transition to a more sustainable economy.
"The looming climate crisis needs action to reposition economies and societies on a more sustainable footing. We support the commitments set out in the Paris Agreement and believe mitigation of, and adaptation to, climate change is essential to safeguard our clients’ investments." - Mark Versey, Chief Executive Officer
*This will cover all asset classes and investment funds that we manage on behalf of Aviva. Third-party clients are invited to express a preference as to whether they would like the Aviva climate commitment to apply to their portfolio. Customers in collective investment funds will be consulted in line with regulatory requirements.
We are proud to be members of the Net Zero Asset Managers initiative (NZAM) and the Glasgow Financial Alliance for Net Zero (GFANZ) as part of the Race to Zero.
Our climate goals
Climate change is the biggest global systemic risk of our time as well as the biggest market failure in history1. We must act because it is in the best interests of our clients as well as the integrity of the market. We must act because we have the power to do so and it is the right thing for the planet and all life in it.
Shaping the climate debate in a critical year for our planet
2021 presents opportunities for the big, bold change needed to address the climate crisis. With the postponed COP26 UN climate summit due to take place in November, in addition to major, international focal points including the G7, G20, and UN General Assembly, among others.
As the international community still lacks a comprehensive finance strategy for the Paris Agreement, Aviva has been convening a multi-stakeholder coalition of organisations to call for the creation of an International Platform for Climate Finance (IPCF). This new platform will aim to harness the financial system in support of global climate goals, so that the financial sector changes to support the wider economic transition needed for net zero.
See change in action
Climate change is the biggest systemic challenge of our time. Discover how we're approaching climate action and supporting the transition to a low-carbon and climate-resilient world.
Key milestones through a history of climate action
We have been at the forefront of climate action for decades. Our micro-stewardship centres on our investments. We use our shareholder voice to actively engage and support companies in changing corporate behaviours. At a macro level, we have a long history of involvement on climate change policy, engaging with policymakers, global governance bodies and regulators to correct market failures and bring about transformational change.
Harnessing the power of COP to bring about transformational change. Aviva Investors was present at the signing of the Paris Agreement in 2015. Ahead of COP26, Aviva investors is calling for an International Platform for Climate Finance, a new mechanism to mobilise capital to tackle climate change.
Turning talk into action: ESG webcast series
Introducing 'Turning talk into action', a series of thought-provoking webcasts debating the biggest ESG issues with leading experts committed to change. Climate topics include TCFD and portfolio reporting requirements, the transition to net zero in real assets, investing to best support the transition to a low-carbon world, and others.
Real assets net zero pathway
In our commitment to achieving net zero in real assets, we outline the actions we will take to invest in low-carbon solutions and decarbonise existing assets across our portfolio.
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?
Our annual letter to company chairpersons
24 Jan 2022
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.
Race, ethnicity and investing: Where are we now?
20 Jan 2022
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.
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.
The AIQ Podcast: Embracing neurodiversity at work
12 Jan 2022
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.
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.
Lessons from tech and military: Why asset managers need to be agile to stay effective and relevant
22 Dec 2021
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.
A tough job: Decarbonising heavy industry
20 Dec 2021
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.
The social transition: Investing for a more equitable world
14 Dec 2021
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.
Where the wild things are: Why investors should care about natural capital
14 Dec 2021
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.
No more lip-service on diversity and inclusion – three principles for financial institutions to follow
13 Dec 2021
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.
Waste not, want not: An investor’s guide to the circular economy
10 Dec 2021
Using the examples of electronics, food, autos and fashion, we explore the benefits of, and challenges to achieving, a more circular economy.
Restoring and caring for the natural world: An interview with John Willis
9 Dec 2021
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.
The future of pharma: Increased returns or the age of biotech?
8 Dec 2021
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?
The cost of climate change: A big threat to sovereign debt?
3 Dec 2021
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.
Thinking outside the box: Embracing neurodiversity at work
30 Nov 2021
Enabling neuroinclusion in the workplace still has a long way to go, although better understanding and simple adjustments could make a world of difference.
Play your part: Investing to support the climate transition
Today, the climate investment landscape is a veritable mixed bag of active and passive approaches covering a broad spectrum of investment universes and objectives. In this paper, we explore some of the pitfalls of first-generation climate strategies, the meaning of Paris or net zero aligned investments, and the benefits of adopting a holistic approach to climate change investing with a focus on science-based targets.
The Glasgow Financial Alliance for Net Zero (GFANZ) brings together net zero alliances from across the finance sector as part of the Race to Zero. We are also proud to support Aviva’s leading role in GFANZ through our Group CEO Amanda Blanc, who is part of the GFANZ Principals Group.
1. The Economics of Climate Change: The Stern Review is a landmark study that was published on 30 October 2006.
Note: ESG and Climate related engagement, goals and exclusions can vary at the investment strategy and portfolio level depending upon country, jurisdiction and individual client needs.