Aviva Investors today announced three new initiatives that further strengthens the asset management firm's Sustainable Responsible Investment, (SRI), credentials and which could collectively contribute to the delivery of a more responsible approach to global investment.
Aviva Investors today announced three new initiatives that further strengthens the asset management firm's Sustainable Responsible Investment, (SRI), credentials and which could collectively contribute to the delivery of a more responsible approach to global investment.
Speaking at the annual TBLI (Triple Bottom Line Investment) conference on sustainable investment in Amsterdam, Aviva Investors chief executive, Alain Dromer, said: "The initiatives announced today reconfirm Aviva Investors' commitment to the critical importance of sustainable and responsible investment.
"From today we are taking a global approach to integrating responsible investment into all our investment management contracts and AGM voting. We are also launching a new sustainable fund focused on renewable energy infrastructure. These initiatives stem from our strong belief that better long-term investment returns come from companies that are well governed and with responsible management practices."
Mr Dromer said: "SRI is a commercially important part of our business and we are active in research which supports environmental, social and corporate governance issues. Our SRI experience delivers tangible client benefits, so we will continue to build on our already strong track record of involvement in SRI and corporate governance."
Mr Dromer also called for global stock market listing authorities to consider whether their listing rules could be strengthened in order to ask companies to comply with specific governance and corporate responsibility codes, or explain why they were not able to do so.
Responsible investment management agreements
The first contract-based initiative means that Aviva Investors will be setting a new threshold for global best practice by including UN Principles for Responsible Investment (UN PRI) in its contracts.
"From today, Aviva Investors will include a clause on responsible investment in all of the contractual Investment Management Agreements proposed to clients. Clients will be able to see the PRI assessment of our performance and they will be able to hold us to account for delivery on our responsible investment commitments," said Mr Dromer.
Global AGM voting
The second initiative means that Aviva Investors is broadening its AGM voting remit. In 2001, Aviva Investors legacy company in the UK, Morley, was the first institutional investor to begin using its AGM vote on companies report and accounts to transmit its views on the quality of disclosure on material corporate responsibility information. This applied to FTSE 100 and has since been expanded to apply to the FTSE 350 and Eurofirst 300 holdings. Aviva Investors will now introduce a global approach for AGM voting on corporate responsibility and will apply this to all global holdings on the MSCI world index.
New sustainable fund: Aviva Investors European Renewable Energy Fund
Underpinning Aviva Investors pedigree in asset management and SRI expertise is the firm's strong portfolio of funds spanning equities, long-short, property and fixed income asset classes. Today this range has been broadened with the launch of an infrastructure investment fund specialising in developing and financing renewable energy projects in the European Union. The Aviva Investors European Renewable Energy Fund portfolio will include solar photovoltaic, geothermal, biomass, biogas and wind assets. Renewable energy projects which significantly reduce carbon emissions provide investment opportunities and, underpinned by solid market fundamentals, aims to deliver attractive performance.
Reform to listing rules
Mr Dromer also called for a debate with the listing authorities of global stock markets in order to explore whether they include the principles of the Global Compact in their listing requirements. He said: "I would like to see all stock market listing authorities make it a listing requirement that companies must evaluate the responsibility and sustainability of their business model, and either put a forward looking sustainability strategy to the vote at their AGM or explain why they were unable to do so.
"These initiatives are important for our clients and to Aviva Investors as a responsible business. On behalf of our clients, who will be rewarded for sustainable market practices, we will constantly look for ways in which we can contribute to responsible investment around the world."
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For more information contact:
Jane Reynolds
Corporate Communications
+44 (0)20 7809 8313
Notes to editors:
The Aviva Investors global SRI team was again recognised by Thomson Reuters Extel and UKSIF as the leading fund management firm for SRI on 5 November 2008. The team has previously been placed in the top position for four years and in second place for one year.
The annual Thomson Reuters Extel and UKSIF Socially Responsible Investing and Sustainability Survey represents the views of over 300 investment professionals from 19 countries, making it the most extensive assessment of SRI in the European investment community. Voting was conducted from 31 March to 04 June 2008. It reflects the record contribution from 202 buy-side firms and 23 brokerage firms/research houses.
Aviva Investors
Aviva Investors is the global asset management business of Aviva plc, the world's fifth-largest insurance group. The company operates under a single brand with more than 1,100 employees in 21 locations across North America, the UK, Europe, and the Asia Pacific.
Aviva Investors combines the following former businesses in: the UK (Morley Fund Management); France (Aviva Gestion d'Actifs); North America (Aviva Capital Management, MFM International, Aviva Investment Canada); Ireland (Hibernian Investment Managers); Australia (Portfolio Partners); Poland (CUIM Polska); and Romania (CertInvest); and works in partnership with Delta Lloyd Asset Management in the Netherlands.
Aviva plc
Aviva is the leading provider of life and pension products in Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2007.
Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion at 31 December 2007 and funds under management of £359 billion at 30 June 2008.
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