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Climate Change: investment value at risk

Risk to investment value and Aviva’s strategic response

Climate change is a strategic issue for the insurance sector. Left unchecked, climate change will continue to affect the actuarial assumptions underpinning the insurance products that our industry provides. It will also render significant proportions of the economy uninsurable, shrinking our addressable market. It is also material to the long term success of many of the companies and economies in which we invest. Over coming decades, climate change presents solvency issues to businesses in many different industries, including our own.

In our continuing response to understand climate risk and the economic implications to our customers, business and society as a whole, Aviva has commissioned research from the Economist Intelligence Unit on the value at risk of climate change to investment, pensions and long-term savings. At an event in July 2015, this report together with Aviva’s strategic response was launched by Aviva’s CEO Mark Wilson.  The UK Secretary of State for the Department of Energy & Climate Change  - Amber Rudd  gave a keynote speech at the event.

Mark Wilson – Paris: Giant leap for Humanity speech  (PDF 45.8 KB) - Mark Wilson, in his speech launching The Economist Intelligence Unit report and Aviva’s strategic response to climate change, relates the prospects of a successful agreement at the UNFCC Conference of Parties in Paris at the end of 2015, to the giant leap for humanity made as a result of the moon landing in 1969.

Aviva’s strategic response to climate change  (PDF 14.6 MB) - This paper sets out our response to the challenge – one part of our contribution to being good ancestors. Our five ‘carbon pillars’ are built on the strong foundations of our existing long-term approach to business and investment. We want it to encourage others to reflect on the contribution they can make – and to act on this opportunity to be good ancestors themselves.

The Economist Intelligence Unit report  - The cost of inaction: recognising the value at risk from climate change  (PDF 2.0 MB) -This report we commissioned from the Economist Intelligence Unit highlights the significant value at risk from climate change. Asset managers cannot simply avoid climate risks by moving out of vulnerable assets and asset classes. The full impact of climate change has the potential to affect the value of our entire portfolio of assets.

We have created a single page outlining Aviva's five carbon investment commitments responding to climate risk and the need to limit global temperature increases to within 2 degrees C.

Investing to tackle climate risk  (PDF 58.5 KB)