Aviva Pledges Net-Zero Emissions by 2040
March 01 2021 - 6:26AM
Dow Jones News
By Maitane Sardon
Aviva PLC on Monday pledged to become a net-zero company by 2040
by aligning emissions from its investments and the companies it
insures with the Paris Agreement on climate change.
The FTSE 100-listed insurer and pension provider said it plans
to cut by 25% the carbon intensity of its investments over the next
four years. Its goal, it said, is to slash by 60% the amount of
carbon dioxide per kilowatt hour derived from its investments by
2030.
The company is also targeting net-zero emissions from its
operations and supply chain by 2030, it added.
To achieve those targets, Aviva, which has some 522 billion
pounds ($726.7 billion) in assets under management, said it will
increase its green investments and reduce its exposure to the coal
industry.
Aviva plans to divest from all coal companies that make more
than 5% of their revenue from coal by 2022. It also plans to stop
underwriting insurance for such companies by the end of 2021.
However, it said it will make exceptions for companies that set
decarbonization targets in line with scientists' recommendations by
signing up to the United Nations-backed Science Based Targets
Initiative--an independent auditor that some 1,200 companies have
joined.
"We have a huge responsibility to change the way we invest,
insure and serve our customers," Chief Executive Amanda Blanc
said.
Additionally, Aviva said it plans to increase its green
investments. This includes investing GBP10 billion of assets from
some of its policyholder funds into low-carbon strategies over the
next two years and GBP6 billion in green assets such as
climate-transition funds over the next five years, it said.
Aviva added that emission reductions will make up the majority
of its shift to net-zero. It said it plans to invest GBP100 million
over the next decade to remove carbon dioxide from the atmosphere
with nature-based solutions. This includes projects to restore
forests and wetlands as a way to preserve ecosystems and capture
greenhouse gases.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
March 01, 2021 06:11 ET (11:11 GMT)
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