Opportunities in the transition to a sustainable future
Our Sustainable Transition range targets opportunities across asset classes that aim to support and accelerate the transition to a sustainable future. Individual strategies focus on specific themes we believe to represent the biggest sustainability challenges in the world such as social transition (People), climate transition (Climate), and natural capital transition (Earth).
People
Social inequality in its multiple guises such as income, race and gender pose a systemic risk to society and the wider economy.
Climate
The scale and urgency of change needed to address climate change and ensure global greenhouse gas emissions are aligned with a 1.5 degrees Celsius pathway will impact every part of the global economy.
Earth
The risks associated with biodiversity loss and the erosion of nature are frequently overlooked by the market. This often results in the mispricing of companies with significant impacts or dependences on nature.
Please note each approach will differ in terms of its objective - please see below strategies in focus for more detail.
Transition strategies in focus
Strengths
Complex sustainability challenges cannot be addressed by investing in solutions alone. We believe a broader cross-section approach to transition is required to maximise long-term return while seeking a positive contribution in the transition to a more sustainable future for People, Climate and Earth.* Our proprietary approach to sustainable transition is applied consistently across asset classes and leverages the following key strengths:
Backing transition
Proprietary approach across asset classes to identify opportunities that are best supporting and benefiting from the transition to a sustainable future.
Investing with purpose
Dual mandate aiming to deliver returns over the long term and support the sustainable transition.
Specialist teams
Sustainable analysts support portfolio managers** to identify opportunities, while leveraging expertise from the broader sustainable investing team and investment platform.
*While our People, Climate and Earth pillars are strategy specific, all strategies in the range have an overarching theme of supporting sustainable transition.
**Beyond any binding constraints in the prospectus or IMA and Baseline Exclusions Policy, the investment manager retains discretion over decision making taking into account ESG risks alongside other factors.
Key risks
Full information on specific risks and risk profiles of each of our funds please refer to the relevant Prospectus and the Key Investor Information Document (KIID).
Investment risk and currency risk
The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.
Equities risk
Equities can lose value rapidly, can remain at low prices indefinitely, and generally involve higher risks — especially market risk — than bonds or money market instruments. Bankruptcy or other financial restructuring can cause the issuer's equities to lose most or all of their value.
Counterparty risk
The Fund could lose money if an entity with which it does business becomes unwilling or is unable to meet its obligations to the Fund.
Emerging market risk
Investments can be made in emerging markets. These markets may be volatile and carry higher risk than developed markets.
Derivatives risk
Investments can be made in derivatives, which can be complex and highly volatile. Derivatives may not perform as expected, meaning significant losses may be incurred.
Specialist fund risk
Certain investments in the fund may be more susceptible to foreign government policies, including tax incentives and subsidies, as well as political support for certain environmental initiatives and developments. Under certain market conditions, the fund may underperform funds that invest in a broader array of shares in global companies, for example, funds that do not provide any screening of companies undertaking fossil fuel activities.
Credit and interest rate risk
Bond values are affected by changes in interest rates and the bond issuer's creditworthiness. Bonds that offer the potential for a higher income typically have a greater risk of default.
Sustainability Risk
The level of sustainability risk may fluctuate depending on which investment opportunities the Investment Manager identifies. This means that the fund is exposed to sustainability risk which may impact the value of investments over the long term.
Real estate risk
Investments in real estate may not be able to be sold, realised or liquidated when you want because real estate assets may not always be readily saleable. If this is the case, we may defer your request or instruction regarding your investment. Investors should also bear in mind that the valuation of real estate is generally a matter of valuers’ opinion rather than fact.
A globally integrated team with extensive experience
Sam Tripuraneni
Head of Sustainable Investments
Daniel McHugh
Chief Investment Officer
Isabel Emo Capodilista
Head of Equities
Darryl Murphy
Managing Director, Infrastructure
Our responsible investment views
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Fixed income
40 years of lending lessons: How four decades in real estate debt has shaped Aviva Investors’ approach
12 Dec 2024
From navigating market crashes to embracing ESG and technology, Adrian Poole and Gregor Bamert reveal how 40 years of real estate debt investing have moulded Aviva Investors’ strategy – and what it takes to stay ahead in a rapidly changing market.
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Equities
What’s next for nature? Key takeaways from Biodiversity COP16
11 Dec 2024
Following our participation at COP16, the 16th meeting of the Conference of the Parties to the UN Convention on Biological Diversity, we reflect on the key themes that emerged, outstanding challenges, and what this all means for investors.
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Fixed income
Buy-and-maintain credit: Taking the road to net zero
10 Dec 2024
Long-term trends like climate change are particularly important for buy-and-maintain investors. How can they integrate climate objectives, such as net zero by 2050, into their portfolios?
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Economic Research
Decarbonising transport: Five key challenges and how to overcome them
26 Nov 2024
Creating sustainable transport solutions is vital to meet net-zero pledges, but progress has been patchy. To encourage mobilisation across value chains, we brought together a range of sector experts to identify key blockers and potential solutions.
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Economic Research
Building bridges to net zero: Mobilising value chains for decarbonisation
25 Nov 2024
From aviation to heavy industry, achieving net zero requires a collective unlocking of entire ecosystems. This is what our sector roundtables aim to do, by bringing together stakeholders from across the value chain of high-impact sectors.
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Economic Research
Striking a balance: Key themes from the first eight months of 2024 AGMs
21 Oct 2024
Annual general meetings (AGMs) are an opportunity for responsible investors to share their priorities with companies and express their views on key elements of strategy and governance. Our Stewardship team reviews our 2024 AGM engagement and voting activity.
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Economic Research
Navigating nature: Opportunities for the investor of tomorrow
16 Oct 2024
Our society, economies and financial systems are embedded in nature, not external to it. This paper sets out the actions we are taking to understand nature-related risks and opportunities to deliver outcomes that meet our clients’ needs, and to support nature-related global goals.
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Economic Research
Only connect: How a holistic approach to investment stewardship can enhance client outcomes
27 Sep 2024
From direct investments and engagement with companies to dialogue with governments and regulators, we believe stewardship efforts can deliver better outcomes for clients.
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Real Assets
Get networking: Will the next decade be a golden age for UK infrastructure?
3 Sep 2024
While there are obstacles to overcome, the coming years could see new opportunities for the UK government and the private sector to work together on infrastructure projects, says Darryl Murphy.
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Real Assets
Real asset stories: Curtain House
8 Aug 2024
In the first instalment of a new series of case studies on our real asset investments, we look at Curtain House, a Victorian warehouse Aviva Investors is converting into a modern, environmentally friendly office building.
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Economic Research
Boosting low-carbon investment in the UK: A Policy Roadmap
16 Jul 2024
Our in-depth Roadmap for the UK’s journey towards a low-carbon economy contains policy recommendations to unlock private investment in the transition.
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Responsible Investing
The future of green premia in real estate, part two: Searching for value and resilience
8 Jul 2024
Do energy-efficient buildings have more pricing power, and what could that mean for those investing in the built environment? We bring together the views of leading capital markets researchers, a valuer and an asset manager for the second part of our deep dive into green premia, analysing the investment implications.
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Responsible Investing
Avoid, reduce, remove, align: Finding climate transition investment opportunities in real assets
3 Jul 2024
In this article, Luke Layfield and Zoe Austin explain four key pillars that can help real asset investors align their strategies with the climate transition and uncover opportunities to deliver attractive returns.
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Responsible Investing
The future of green premia in real estate, part one: The view from the ground
27 Jun 2024
Do greener buildings have more pricing power, and if so, how much? We bring together the views of leading capital markets researchers, a valuer and an asset manager for a two-part deep dive on the latest market dynamics.
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Economic Research
Blueprints for a greener economy: Creating a transition planning ecosystem
25 Jun 2024
National transition plans can give investors support, confidence and direction to accelerate the flow of finance to bring about a low-carbon economy. As such, they should be seen as a strategic opportunity.
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Economic Research
Nothing to fear: Sustainable investing trade-offs
19 Jun 2024
Sustainable investing, and the supposed trade-offs involved, have been a topic of heated debate. But trade-offs are a fundamental part of all types of investment; the key is to be clear about your objectives, as Mirza Baig explains.