Top British asset management firm Aviva Investors has revealed its intention to distance itself from companies that do not meet its requirements in terms of efforts put towards tackling climate change. This includes those in the oil, gas, mining, and utility sectors.
Chief investment officer for equities David Cumming is reported to have written to companies on behalf of Aviva, calling on them to include goals for net-zero emissions in their strategies going forward. The London-based firm has also requested that companies consider the climate risks associated with their operations and formulate plans for capital expenditure.
In an interview with the Financial Times, Cumming revealed that climate change has become a major risk to capital markets and continues to be a massive disruptor. As a result, Aviva is committed to divestment as a last resort should companies refuse to comply with its latest climate-centric expectations. Companies have between one and three years to comply with Aviva’s stipulations.
Currently, the UK-based investment company serves over 33 million customers spanning 16 countries. It also manages 355 billion pounds ($486 billion) and owns stakes in some of the world’s largest gas, mining, oil, and utility companies.
