Why do you think transition aligns with the definition of Sustainable Investments?
The three greatest sustainability challenges today are climate change, biodiversity loss and social inequality, and that all companies, regardless of sector and geography, have an impact on and are impacted by these immensely complicated and challenging issues. As such, all companies need to change the way they operate if we are going to achieve a sustainable future for both people and planet aligned with our sustainable investment objectives (together, a more socially equitable, nature positive and net zero economy that is also more resilient to higher temperatures). This “transition” of all companies is one of the most important sustainability objectives that must be achieved.
Aviva Investors therefore believe the market needs to allocate capital to those companies leading the transition to a sustainable future in terms of how they operate, not just those providing solutions to the challenges mentioned above through their products and services. In doing so, the Funds are rewarding and backing those companies that are leading their sectors which can have a powerful knock-on effect by raising industry standards and encouraging others to improve.
Aviva Investors also believe this is in line with the spirit of the regulation, which ultimately seeks to direct capital to its most productive and sustainable uses.