Aviva, WWF push UK govt to mandate climate transition plans for financial sector

Written by Adam Cadle

22/06/2021

Aviva and WWF have started a new climate-focused partnership to focus on shifting the financial sector to net-zero, and are calling on the Government to mandate UK regulated financial institutions to develop credible transition plans that align with net-zero and the Paris Agreement.

In a new joint policy paper published today, entitled Transition Plans for a Net Zero Future Aviva and WWF set out five recommendations for how the UK government can demonstrate further leadership on green finance and harness the power of the finance sector to drive the transition:

- The UK government should mandate UK regulated financial institutions to develop credible transition plans that align with net-zero and the 1.5C 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 1.5C aligned transition plans by the end of 2022.

- The Government should bring together regulators, industry and civil society to develop guidance on the most appropriate metrics, methodologies and specifications for transition plans.

- The 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.

Aviva Group CEO Amanda Blanc 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. We will campaign with WWF to ensure the financial sector gets its act together and makes a more significant contribution to a sustainable planet.”

Aviva’s partnership with WWF spans Aviva’s core markets. Over the next three years Aviva will be working with WWF to help communities in the UK and Canada build healthier and more resilient ecosystems that help reduce the risk of climate-related natural disasters such as flooding. Aviva will also be engaging millions of consumers to increase awareness about the power of their choices.

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