Net Zero Asset Managers initiative: Target disclosure announcement – Aviva
What does your initial interim target look like?
Our initial target is around 70% of AUM, which equates to USD 346 billion in assets managed in line with net zero. We have set our baseline as 2019 and intend to reduce greenhouse gas (GHG) emissions 25% by 2025 and 60% by 2030. We currently include Scope 1 and 2 in our targets, where there is sufficient coverage to enable measurement of progress towards them. Access to Scope 3 data is currently not sufficient to allow for us to measure effectively against targets, but where it is available we report internally on it.
Can you elaborate on the methodology and scenario you have used in setting this target?
We have used the Net Zero Asset Owners Alliance (NZ AOA) Target Setting Protocol, which covers public equities, credit and direct real estate and based our targets on the IPCC special report on global warming scenario of 1.5°C. We have set a target of a 25% reduction by 2025, which aligns with the 50% reduction required by 2030.
How did you approach deciding what to include in scope for your initial target?
Our initial target includes public equities, credit and direct real estate, as per the NZ AOA methodology and exclude assets including infrastructure equity and sovereign bonds that are outside of the 2025 guidance. Cash and derivatives will also be excluded, as will segregated mandates which are invested fully at the client’s discretion and externally managed funds for the time being.
What are you plans when it comes to setting a policy on coal and other fossil fuel investments?
We will have divested from all companies that make more than 5% of their revenue from thermal coal [by when?], unless they have set a science-based target and we are convinced of their ability to transition to net zero. This applies to all Aviva Investors managed funds, subject to investor consent and regulatory approval.
Aviva Investors has published its climate change strategy online – can you share some highlights?