You have the power to influence where your money gets invested
By investing responsibly, we can achieve inclusive economic growth, environmental protection and social development.
You can do your bit
If, like many of us, you’re concerned about protecting the local environment, you probably do what you can to help in everyday life - from recycling plastic containers to cutting energy use in your home.
Responsible investment is all about using investment to encourage companies to take a longer-term view, and think about the impact their business decisions might have on the environment and local communities.
Alongside seeking a good return for our savers, we want to invest in a way that helps create the kind of future they wish to retire into. We also use our influence to encourage other businesses to invest sustainably.
What you can do
We want to raise awareness that by choosing how your money is invested, you can provide a more sustainable future for everyone. Watch our video that follows the journey a pension contribution takes through the capital markets system. It shows how you can make a difference as an individual saver.
If you have an Aviva pension, you can learn about our approach to responsible investment here.
You can also find out how your pension is invested now by logging into MyAviva.
What we can do
Businesses like ours have a key role to play to fund the Sustainable Development Goals. We’re calling to change the incentives and rules so that capital markets become more long term, and support the Sustainable Development Goals.
To deliver the estimated US$90 trillion investment needed to deliver sustainable development over the next 15 years and to move from “billions in overseas development assistance to the trillions in investments of all kinds” as the World Bank has said, it is clear that private sector and private finance need to play a greater role.
The investments we make today influence the world we live in tomorrow.
We’re in this for the long term.
What needs to happen to create more sustainable capital markets
- Everyone should have access to and understand companies’ contribution to the Sustainable Development Goals. So investors, society, governments and individuals can exert their influence to force change. We’re leading the creation of a set of publicly available, corporate sustainability league tables, ranking companies on their sustainability performance. Aviva launched the global consultation for the World Benchmarking Alliance in September 2017.
- National standard-setting bodies should set up a Responsible Investment Standard – a ‘Fairtrade for Finance’, to help investors and consumers identify asset managers who are operating sustainably.
- Taking account of sustainability risks should be enshrined in the duties of investors, whether it is through fiduciary duty in common law or its equivalent in other legal systems. These duties should be cascaded onto the other participants across the investment and lending chain. We propose that the Organisation for Economic Co-operation and Development (OECD) develop guidance, in the form of a Convention on Fiduciary Duties, setting out the modern definitions of duties for board directors, and institutions across the investment chain. This could be supplemented by guidance at the national level.
- Create a UN Resolution on Sustainable Finance to establish international principles to move money at scale to aid sustainable development, including tackling regulatory short-termism and increasing levels of sustainable financial literacy.
Our reports and toolkits to support sustainable finance
Our Roadmap to Sustainable Capital Markets (PDF 1.5 MB), dated from 2014, was the first document which highlighted the need to move capital markets onto a more sustainable basis.
Mobilising Finance to Support the Global Goals for Sustainable Development (PDF 426.3 KB) explains Aviva’s calls to action to help make the Global Goals a success, as well as what we’re doing to support the Goals. We first presented this report in New York at the Global Goals Summit, September 2015.
We refined our recommendations to support sustainable finance in 2016 in our report Money Talks: How Finance Can Further the Sustainable Development Goals.
Aviva also launched a sustainable finance policy toolkit which sets out 13 practical solutions for changes that can help create a sustainable finance sector in Europe. The toolkit is a response to the European Commission’s announcement that it will create an expert group to develop a sustainable finance strategy. Our Chief Responsible Investment Officer, Steve Waygood, is part of the High Level Expert Group.
In July 2017 we also launched a report called 'Delivering the financial system the world needs', which presents Aviva's latest thinking on sustainable finance.
Our key recommendations are also highlighted in this infographic (PDF) on how to move from short term to long term thinking in order to create sustainable capital markets.
International focus on sustainable finance is gaining momentum, as shown by the conclusions of the UN Inter-Agency Task Force on Financing for Development. We also welcome the publication of the interim report of the EU High-Level Expert Group on Sustainable Finance , which takes forward several of our recommendations.