Delivering positive environmental outcomes
Biodiversity loss is one of the greatest sustainability issues of our time. The natural world – defined as all living things, air, water, geology, and soil – underpins our whole existence.
The risks associated with the erosion of nature are frequently overlooked by investors, often resulting in the mispricing of companies that have significant impact or dependencies on nature. In theory, we believe companies that establish good practices in addressing their impact on the planet should achieve stronger earnings growth and superior shareholder returns over the long term.
Our Sustainable Transition Fund range targets opportunities linked to the United Nations Sustainable Development Goals that support and accelerate the transition to a sustainable future. Through the Natural Capital Transition Global Equity Fund, we invest in and engage with companies that are driving fundamental changes to support the transition to a nature positive economy. We take a unique and innovative approach to address the needs of investors seeking two objectives:
Long-term capital growth
Positive impact on nature
Our approach
Addressing biodiversity loss requires systemic change. We go beyond a simple solutions approach and aim to maximise our potential to deliver capital growth and impact objectives. We try to avoid significant harm by excluding companies involved in harmful practices, invest in companies providing solutions that reduce the harm caused by human activities to nature, and invest and engage with transition-oriented companies managing their impact on nature to drive further positive change.
Transition
Our proprietary transition framework helps us identify winners from the transition to a nature positive economy across a wider opportunity set. This approach results in a high conviction portfolio diversified across sectors and geographies.
Alpha
A change-driven, style-agnostic equity investment philosophy that generates alpha by identifying opportunities the market has mispriced.
Impact
We use our scale and influence to drive positive change in companies through targeted engagement plans with clear escalation pathways. We also play a leading role in tackling market failures through market reform.
Where the wild things are
Finance must wake up to the risks associated with biodiversity loss and the opportunities that arise from nature-friendly solutions, argue Eugenie Mathieu, Julie Zhuang and Jonathan Toub.
Natural Capital Transition Global Equity strategy
Aviva Investors Natural Capital Transition Global Equity Fund
This strategy aims to deliver long-term capital growth by investing in companies globally that either provide solutions to reduce biodiversity loss or are transitioning their business models to manage their impact on nature, while avoiding those that do not meet minimum environmental criteria.
Key risks
For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.
Investment 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.
Emerging markets risk
The strategies invest in emerging markets; these markets may be volatile and carry higher risk than developed markets.
Natural Capital Transition Global Equity team
Jonathan Toub
Gestionnaire de portefeuille
Julie Zhuang
Gestionnaire de portefeuille, Actions mondiales
Eugenie Mathieu
Analyste ESG senior et responsable du pilier Terre
Need more information?
For further information, please contact our investment sales team.
