Aviva is to invest £50m into venture capital funds focused on green technology.
The first investment will be into the Clean Growth Fund which invests in technology companies that offer products and services focused on driving forward a low carbon economy.
The fund has invested in companies such as Indra, which manufactures smart electric vehicle chargers, and Tepeo, which invented a zero-emission boiler.
Ben Luckett, chief innovation officer at Aviva, said: "We’ve seen strong growth in sustainability focused start-ups as consumers become more climate conscious.
“We are investing in new technology which will support the global transition to net zero and help Aviva meet its 2040 net zero ambition.
“We’ve seen strong growth in sustainability focused start-ups as consumers become more climate conscious. Our investments will help build upon our knowledge of this space and enable us to continue meeting our customers’ changing needs.”
Aviva pledged earlier this year to become a net zero carbon emissions company by 2040.
It also set net-zero carbon emissions target for its own auto-enrolment default pension funds.
Although the end date to achieve this goal was set to 2050, Aviva said it was looking at options to move this forward to 2030.
To do this, the provider plans to invest more than £5bn into low carbon equities and climate transition strategies across its default funds.
Beverley Gower-Jones, managing partner of the Clean Growth Fund, said: "Coming so soon after COP26 in Glasgow, Aviva’s investment in the Clean Growth Fund is a strong and welcome strategic move. Aviva understands the importance of innovation in turning the dial towards a cleaner, greener economy.
“There were many pledges made at COP26 by both governments and the private sector. Now is the time to turn these pledges into action. Directing capital into clean tech investments is an absolute necessity if the world is going to have the commercialised and implementable solutions it needs to address climate change and align with net zero.”
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