Aviva Investors has launched two equity funds aiming to achieve a positive social and environmental impact.
The Aviva Investors Social Transition Global Equity Fund and the Aviva Investors Natural Capital Transition Global Equity Fund will invest in companies that are managing their social and environmental impacts and provide solutions to support the transition to net zero.
Mark Versey, chief executive of Aviva Investors, said: “Aviva Investors is committed to the United Nation’s SDGs and to innovating sustainable, investable outcomes to achieve them.
"As well as growing their wealth, people want to know that their money is making a positive contribution to climate change, a fairer society and protection of the natural environment.”
The social transition fund will be managed by Richard Saldanha, Matt Kirby and Vaidehee Sachdev and is aligned to three of the UN’s sustainable development goals - 5, 8 and 10.
According to the firm, it will select investments that are changing their business models to respect human rights, promote “decent” working conditions and engage in “responsible” corporate behaviour.
The natural capital transition fund will be managed by Julie Zhuang, Jonathan Toub and Eugenie Mathieu, and will align to SGDs 12, 13, 14 and 15.
As such it will invest in companies that “provide solutions and are transitioning their business models across the themes of sustainable land, sustainable oceans, the circular economy and climate change”, said the firm. It will exclude firms involved in certain “harmful” activities or “severe environmental controversies”.
Versey added: “There has, quite rightfully, been much focus on the path to net zero carbon emissions during the UN Climate Change Conference (COP26), but we should not forget that social issues and biodiversity are also important drivers of the transition to a fair and sustainable economy.
“The time to act is now.”
The funds are the latest addition to Aviva Investors’ sustainable transition fund range
Last week, Vanguard launched four actively managed sustainable funds with an ongoing charge of 0.48 per cent.