Aviva launches climate transition equity fund for workplace pension schemes.

Aviva has launched the Aviva Investors Climate Transition Global Equity Fund, an actively managed equity fund for workplace pension schemes that invests in the shares of companies globally who are responding to climate change.

“We want to offer our pension scheme members simple but effective ways of ensuring that as they save for retirement, their investment is being used for the good of society and the planet," said Laura Stewart-Smith, Head of Workplace Savings and Retirement at Aviva.

Businesses which have their workplace pension schemes with Aviva will be able to give their employees the option to invest in the fund. It will also be available on Aviva’s savings and retirement adviser and customer platforms.

This is the second equity fund Aviva has launched which is aimed at supporting the transition to a low carbon economy, using Aviva’s Investors’ propriety methodology for defining climate investment risk.

The fund aims to take a long-term, high conviction investment approach, which targets companies offering goods and services that provides solutions for climate change mitigation and adaptation, as well as investing in companies that are orientating their business models to be resilient in a low-carbon world.

The fund will not invest in companies exposed to thermal coal, unconventional fossil fuels or thermal coal electricity generation. It will also limit exposure to those producing oil and gas or gas-fired power generation.

Laura Stewart-Smith, added: Responsible investing is no longer a ‘nice to have’. The investment and workplace pensions industry has an important role in changing the world for better, and the launch of this latest fund onto our workplace pension scheme platforms is another step towards making that happen.”

Over the past few years, a range of responsible investment initiative have been launched by Aviva’s workplace savings and retirement business. In 2019, the ‘Stewardship lifestyle strategy’ was launched – a workplace pension default investment strategy that incorporate ethical and ESG considerations, and last year ‘My Future Focus’ was announced, integrating ESG factors into the Aviva Master Trust deign and management. 

1 April 2021

Climate Action