Aviva and WWF call on UK government to demonstrate further leadership of green finance

New partnership between Aviva and WWF calls on government to commit for a greener financial system ahead of COP26.

Aviva has announced a new climate-focused partnership with one of the world’s leading conservation charities, WWF, which will focus on shifting the financial sector to net zero.

WWF and Aviva are jointly calling on the UK government to mandate UK regulated financial institutions to develop credible transition plans that align with net zero and the 1.5°C goal of the Paris Agreement.  Without this shift the UK will not be able to meet its net zero target or global climate commitments to the Paris Agreement.

In a new joint policy paper published today, titled ‘Transition Plans for a net zero Future’, Aviva and WWF set out five recommendations for how the UK government can demonstrate further leadership of finance:

n green The UK government should mandate UK regulated financial institutions to develop credible transition plans that align with net zero and the 1.5°C goal of the Paris Agreement from 2023.

• As an interim measure, ahead of COP26 the Treasury should recommend that regulators require regulated UK financial institutions to start producing net zero 1.5°C aligned transition plans by the end of 2022. 
• The UK government should bring together regulators, industry and civil society to develop guidance on the most appropriate metrics, methodologies and specifications for transition plans.
• The UK government should create a clear policy framework to drive net zero across the real economy, signalling the steps and timescales by which they will be met. 
• In parallel, the UK should use its role in the G7, G20 and other multilateral platforms to encourage other major economies to mandate transition plans globally.

The new collaboration will see Aviva become WWF’s lead partner on pensions and insurance, building on Aviva’s announcement earlier this year to target net zero carbon by 2040, the first major insurer worldwide to do so.

Amanda Blanc, Aviva Group Chief Executive Officer said: “We’re living in the midst of a climate emergency and, as the UK.’s leading insurer, we’ve got a big responsibility to do something about it. Our new partnership with WWF will help us tackle the causes of climate change and help our customers and communities cope better with the consequences.”

Tanya Steele, WWF-UK Chief Executive, said: "We know that the finance sector has a staggering climate footprint, and that simply has to change if we are to stand a chance of meeting the Paris Agreement targets of limiting global warming to 1.5°C. But as we look to build a greener, stable planet with a sustainable economy, the sector can also be a force for positive change."

"Aviva is already a climate-leader in the industry and demonstrates the enormous potential for our pensions and insurance in helping to tackle the environmental crisis. Together, we hope to inspire other financial institutions along this journey and to jointly call for ambitious government reform of the sector in the run-up to COP26."

22 June 2021

Climate Action