Aviva Case Study

Aviva has always been focused on creating and supporting solutions that build a more resilient future for society. This deeply held belief was reaffirmed in July 2015 when their CEO, Mark Wilson and the Secretary of State for Energy & Climate Change, Amber Rudd launched Aviva’s strategic response to climate change as well as the findings of the Aviva commissioned Economist Intelligence Unit Report titled “The Cost of Inaction”. This report found that even in a scenario with the lowest increase in global warming, of only 2°C, would trigger losses of $4.2 trillion in assets worldwide by 2050, equivalent to Japan’s current GDP.

In light of these findings Aviva has set out 5 Carbon Pillars which will form the foundation of their response to climate change for the next 5 years.

1. Integrating Climate risk into Investment Considerations
2. Investment in lower carbon infrastructure
3. Supporting strong policy action on climate change
4. Active stewardship on climate risk
5. Divesting where necessary

In all of the above categories Aviva has already made significant progress. As a founding signatory to the UN’s Principles of Responsible Investment, Aviva Investors has pledged to target a £500 million annual investment in low-carbon infrastructure for the next five years, with an associated reduction target of 100,000 tonnes CO₂ each year. Aviva has also been carbon neutral since 2006, and with this renewed focus on green investment Aviva’s engagement only adds to and demonstrates the potentially wide reaching positive impact of the insurance industry in mitigating climate change.