Aviva Investors, the global asset management business of Aviva, today announced the launch of a new fund to support the transition to a low carbon economy as global temperatures continue to rise due to climate change.
The Aviva Investors Climate Transition European Equity Fund, which is supported by a €100m seed investment from Aviva France and aims to outperform European equity markets, will be managed by portfolio manager Francoise Cespedes. She will work with Rick Stathers, senior global responsible investment analyst and climate change specialist, who will develop the methodology for defining the investment universe on the Fund.
The Fund will take a long-term, high conviction investment approach, targeting companies deriving material revenues from goods and services addressing climate change mitigation and adaptation, as well as investing in those companies aligning their business models for a warmer, low-carbon world.
Failure to act on climate-related risks represents a failure to act in the long-term interests of investors. It is vital that asset managers play their part"
According to the latest New Climate Economy report from the Global Commission on the Economy and Climate, low-carbon growth could deliver economic benefits of $26trn by 2030. Disasters triggered by weather and climate-related hazards were responsible for thousands of deaths and $320bn in losses in 2017 alone.
The Fund will not invest in stocks exposed to coal, unconventional fossil fuels, Arctic oil and gas production or thermal coal electricity generation, and limits exposure to those producing oil and gas or gas-fired power generation. It will also look to deliver strong performance for clients through a highly-integrated investment approach, connecting the ideas and analysis of the firm's 18-strong global responsible investment team and over 40 equities investment professionals.
Euan Munro, chief executive officer, Aviva Investors, said: "Failure to act on climate-related risks represents a failure to act in the long-term interests of investors. It is vital that asset managers play their part in providing solutions for clients that will help address this critical issue."
Francoise Cespedes, portfolio manager, Aviva Investors Climate Transition European Equity Fund, said: "The Fund is part of our strategic ambition to deliver superior investment performance and sustainable outcomes for clients through positive climate risk management.
This agenda is aligned with the United Nations' Sustainable Development Goals, and the commitments made by world leaders in 2015 through the Paris Agreement to avoid the dramatic consequences of unaddressed climate change on societies and the world's economy."