Aviva Investors is among the 10 largest asset managers in the UK, with some £346 billion ($426 billion) under management at the end of last year, and claims to have pursued a 'responsible investment' approach for 40 years.

"Integrating ESG into investment decisions and being responsible stewards of clients' assets is non-negotiable for us," says CEO Euan Munro. "ESG factors can have a material risk on an investment and understanding these issues, and how they shape our economy and society, allows us to spot investment risks as well as opportunities."

In 2019, the firm made significant changes to its ESG policy and research processes. It developed separate policies for each asset class to better integrate specific risks and opportunities, and enhanced its proprietary ESG model using input from Aviva Quantum, the group's data science operation, to help its 22 ESG analysts assess ESG risks on an absolute and relative basis.

During the year it also launched its Climate Transition European Equity Fund. This contains two types of companies: those offering solutions for adapting to or alleviating climate change; and those that are adjusting their business model to adapt to a warmer world, while reducing their carbon emissions. This has already attracted more than €1 billion ($1.1 billion) and, in June this year was followed by a global fund based on the same principles.

"Addressing climate-related risks is critical. It is an absolute requirement of asset managers and a key ESG focus for our investors, says David Cumming, chief investment officer, equities.

Aviva is also a firm believer in using voting and engagement to identify and reduce ESG risks in its equities portfolio. For example, in 2019, it:

· voted at 5,382 shareholder meetings (96% of meetings where it had a legal right to do so); and

· undertook 3,122 company engagements with 2,149 companies to encourage better ESG practices.

It is particularly proud of having co-filed a shareholder proposal at BP's AGM to adopt a climate strategy aligned with the Paris Agreement. This won the support of 99% of shareholders. EF