For Aviva Investors, a key component of being a responsible business is how we act as responsible investors – including environmental, social and corporate governance (ESG) considerations in our investment process.
Acting and investing responsibly
We believe that better long-term investment returns come from companies that conduct business in a sustainable and responsible manner. This is why we set high standards for our own business. By including environmental, social and corporate governance (ESG) considerations in our investment process, we build pride in our employees, respect from our stakeholders and value for our clients.
Aviva Investors is a founding signatory of the UN Principles for Responsible Investment (UNPRI). Launched in 2006, these principles provide a voluntary framework by which all investors can incorporate ESG issues into their decision-making and ownership practices and so better align their objectives with those of society at large.
Together with our fund managers, our dedicated Global Responsible Investment team works on company engagement and proxy voting. This forms an integral and active part of our approach to managing, protecting and enhancing the long-term value of the companies we invest in for our clients.
Climate change is our most pressing environmental priority. Aviva has a commercial interest in ensuring that climate change does not make certain risks uninsurable, as this reduces the sustainability of our own business. As climate change is a material issue to global economic development, the value of our investment portfolios will be impacted, alongside those of our clients.
As founding signatories, Aviva Investors works to promote the Carbon Disclosure Project (CDP) and actively engages with companies and organisations to reach consensus on ways to address climate change, both for companies and public policymakers as well as other stakeholders. In 2011 Aviva and Aviva Investors provided seed funding for the Carbon Action Initiative, which complements the CDP, and encourages companies to make year-on-year emissions reductions, implement carbon reduction emissions and set targets.
We reduce our own carbon emissions where we can and offset the remainder. Our commitment to sustainability is also demonstrated through our gold leaf membership of the UK Green Building Council.