Aviva Investors Issues Warning to 1,600 Companies on Climate and Sustainability Goals
Aviva Investors, a subsidiary of the insurer Aviva, has warned approximately 1,600 companies in which it holds stakes that it will hold them accountable for their lack of action on climate and sustainability goals.
In an annual letter sent to the chairs of these companies, the CEO of Aviva Investors, Mark Versey, stated the importance of companies not prioritizing short-term market risks over long-term goals. This message comes ahead of the season for annual general meetings, where Aviva Investors will focus on how these companies respond to challenges such as the cost of living crisis, the transition to a low-carbon economy, and efforts to reverse nature loss.
Versey stated that potential conflicts could arise in various ways, such as prioritizing energy sources that have a high carbon footprint over the long-term viability of supply chains. As a result, Aviva Investors has stated that it may sell its equity and bond holdings in companies that consistently fail to meet its expectations. The asset manager manages around £232 billion in assets.
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Aviva Investors has outlined specific expectations for the companies in which it holds stakes. The company expects these companies to publish climate transition plans that are robust, viable, and take into consideration the social upheaval caused by the global shift to a low-carbon economy. Aviva Investors also stated that it would look unfavourably upon companies that protect profitability and returns by transferring costs to employees, suppliers, and customers.
Last year, Aviva Investors voted against 134 companies for not moving quickly enough on climate change or for not disclosing enough about their efforts. This latest warning from Aviva Investors demonstrates the growing importance of companies taking action on climate and sustainability goals, and the potential consequences for those that fail to do so. As more asset managers take a similar stance, companies may feel increasing pressure to take action in order to avoid being penalized by their investors.
Prachi, an accomplished Chief-Editor at The Sustainable Brands Journal, has 15+ years of experience in Europe, the Middle East, and India, managing 90+ global sustainable brands. She’s a prolific writer in sustainability, contributing to various publications. Prachi’s unwavering passion and expertise make her a recognized authority, driving positive change and inspiring a sustainable future.
