Aviva Investors publishes net zero pathway for real assets

Written by Adam Cadle

13/01/2021

Aviva Investors, the global asset management business of Aviva, has published its net zero pathway for its Real Assets business as part of the Better Buildings Partnership Climate Change Commitment.

The pathway outlines how Aviva Investors aims to reach net zero emissions across the whole of its £47.3bn real assets platform by 2040, as it seeks to improve the sustainability of new and existing building stock across the UK and support clients in addressing the climate transition within illiquid assets.

The commitment covers multiple layers of the investment process; from asset origination to asset management and ongoing stakeholder engagement. As well as tackling real estate and infrastructure, it extends into private debt, an area where ESG integration and alignment with climate transition strategies has traditionally been viewed as complex.

Ensuring that these commitments are met with measurable actions, the initiative is supported by five explicit short-term interim goals that Aviva Investors expects to be delivered over the next four years to 2025, including:

1. Investing £2.5bn in low-carbon and renewable energy infrastructure and buildings;
2. Increasing low-carbon and renewable energy generation capacity to 1.5 gigawatts;
3. Originating £1bn of climate transition-focused loans;
4. Creating at least 50%of new pooled strategies with sustainable or impact labels;
5. Reducing real estate carbon intensity by 30% and energy intensity by 10%.
 
Mark Versey, chief executive officer at Aviva Investors, said:
 
“The climate crisis is the single largest risk facing our society and economy, but it also represents great opportunity. The real assets sector wields a great deal of investment influence and firepower and must quickly move on from high-level pledges to demonstrate meaningful action. The goals of our net zero commitment are ambitious and, most importantly, set out material proof-points that we can be measured against. They follow on from the progress made by our real assets business over the three years since its inception, demonstrating our continued commitment to building a better and more sustainable economy.”
 

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