Aviva’s purpose is to be with you today for a better tomorrow. Sustainability is a fundamental part of our strategy and integral to what we do as a business.
How we manage annuity investment is a key consideration for our Defined Benefit Solutions business. This means that investment time horizons can extend for decades – so we see sustainable, long-term solutions as critical to success. Our dedicated fund manager, Aviva Investors, considers environmental, social and governance factors in their investment processes and decisions.
This is to help manage risk, with the aim of enhancing performance over the longer term – we believe this will help ensure our de-risking solutions are fit for the future.
Sustainability in our asset sourcing framework
Sustainability considerations are embedded into our asset origination framework. The framework is a robust set of controls and investment processes which governs how we source assets for annuity investment.
Close collaboration and independent assessment between Aviva's expert teams aims to deliver optimal outcomes.
Annuity asset management
Our in-house origination team
Aviva Insurance Wealth & Retirement (IWR) has a dedicated Annuity Asset Origination team of investment professionals. They're responsible for the origination and management of assets across private and public markets to meet individual and bulk annuity asset demand. The team use robust controls and investment processes.
The Annuity Asset Origination team has champions for sustainability considerations – they also work with the IWR sustainability team to review any potential new investments.
Aviva Investors
A dedicated team of more than 50 sustainable investing professionals
We also work closely on Annuity Asset Origination with Aviva Investors, our global asset management business – resulting in greater rigour in our processes. Aviva Investors integrates ESG considerations into Aviva's Insurance Wealth & Retirement portfolio management, investment processes and governance.
Find out about sustainable investment
Aviva Investors, has expertise in the management of real assets, creating ESG-integrated investment solutions for clients across real estate, infrastructure and private debt.
Sustainability Principles Charter
Aviva is a founding signatory to the Sustainability Principles Charter , which sets out the following principles to drive greater transparency, reporting and engagement around sustainability in the bulk annuity process.
Transparency
Transparency of values, principles and investment beliefs in relation to sustainability, as well as ongoing commitments that may guide future policy and practice affecting sustainability approaches.
Decision making
Evidence and understanding of how sustainability considerations are incorporated into investment analysis and decision-making processes, and investment stewardship activity.
Reporting and engagement
Ongoing reporting and engagement to key stakeholders on sustainability commitments beyond the point of transaction.
Collaboration
Commitment to ongoing engagement across the pension sector as responsible investment best practice evolves.
Case studies
The below articles are case studies where Annuity premiums have been invested by Aviva Investors on behalf of Aviva Insurance Wealth & Retirement.
While these are examples of sustainable investments, this does not mean all assets in our portfolios today are aligned with Net Zero, or that we will stop investing in assets that are currently associated with significant emissions. Our ambition is to evolve our portfolios to align with this long-term goal.
Renewable energy
We've invested in renewable energy projects including finance for offshore wind farms, including Hornsea Two.
Social housing
We provided funding to social housing association Cross Keys Homes to support its development plans.
Velindre Cancer Centre
Investment to provide financing towards development of a new treatment facility providing specialist cancer services.
Sustainable transport
Financing to UK electric fleet specialist Zenobē, to help facilitate the roll-out of EV buses in the UK.
UK infrastructure investment
We strongly believe that investment can be a force for good. We finance more than £17.9bn of UK infrastructure* with assets including those backing our Annuity book.
We’re proud to have invested in critical areas such as social housing, schools, hospitals and energy projects. Our investment strategy supports our commitment to take social action, playing a part in the lives of our customers and forming long-standing connections with communities – and is aligned with the ongoing drive to increase investment in long-term productive UK assets.
Total
£17.94bn
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Healthcare
£2.94bn
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Education
£1.74bn
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Universities
£1.59bn
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Transport
£4.06bn
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Renewables
£2.99bn
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Housing
£1.95bn
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Local services
£0.70bn
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Water services
£1.97bn
*UK infrastructure investments held by Aviva Insurance, Wealth & Retirement at December 2023
Aviva Investors recognition
ShareAction ranked Aviva Investors 3rd out of a sample of 77 of the world’s largest asset managers across responsible investment themes in their ‘Point of No Returns 2023’ report.
Aviva Investors placed first in the ‘Sustainable Financing Deal of the Year – Europe’ category at the 2023 Real Estate Capital Awards.