December 23, 2022 (London, UK)
- Aviva’s carbon emission reduction targets are validated by the Science Based Targets initiative
- Aviva achieves independent and scientifically recognised validation of its emissions targets for operations, supply chain and investments
Aviva has received validation of its science-based targets following approval from the Science Based Targets initiative (SBTi). The approval of the targets, aligned to a 1.5°C pathway for operations, supply chain and investments, are a key milestone in Aviva’s journey to become a Net Zero company by 2040.
The SBTi is a partnership between the Carbon Disclosure Project (CDP), the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The initiative defines and promotes best practice in emissions reductions and Net Zero targets in line with climate science, bringing together a team of experts to provide companies with independent assessment and validation of targets.
Aviva’s targets* include commitments to:
- Achieve a 90% reduction in absolute scope 1 and 2 greenhouse gas (GHG) emissions by 2030 compared to 2019 levels
- Ensure that 70% of suppliers (by spend) will have science-based targets by 2025
- Ensure that a third of its equity, bonds, loans portfolio will have science-based targets by 2025
- Continue financing only renewable electricity in its electricity generation project finance portfolio until 2030
- Reduce its real estate portfolio greenhouse gas emissions by 57% per square metre by 2030 compared to 2019 levels
- Aviva’s portfolio targets cover 50% of its total investment activities by assets under management as of 20191
Amanda Blanc, Aviva’s Group Chief Executive Officer, said: ‘Science Based Targets is a key initiative in the journey to Net Zero. Robust, scientifically based, verification brings much needed accountability to our emissions targets. Receiving validation from the SBTi is an important milestone for Aviva as we transition to Net Zero.
Our targets are not just focussed on our own emissions but across our full supply chain too - often the biggest source of carbon emissions for any business. So taking suppliers with us on our journey to achieving Net Zero supply chain by 2030 is key, something we took a significant step towards by hosting our first Net Zero Supplier Summit in November.”
The targets set out a near term emissions reduction pathway that will ultimately enable Aviva to achieve its longer term Net Zero aspirations. These include Net Zero emissions from insurance and investments by 2040, with a cut of 25% in the carbon intensity of investments by 2025 and of 60% by 2030. The plan also covers Net Zero carbon emissions from Aviva’s own operations and supply chain by 2030, with supplier engagement to achieve this already underway.
In the past year, as part of working towards achieving Net Zero by 2040, Aviva has:
- Ceased underwriting companies making more than 5% of their revenue from coal or unconventional fossil fuels, unless they have signed up to the Science Based Targets initiative.
- Excluded companies from investment where they are making more than 5% of their revenue from coal and 10% unconventional fossil fuels , unless they have signed up to the Science Based Targets initiative.
- Reached an 81% reduction of its operational carbon emissions target, against a baseline of 2010.
- Invested over £12.4 billion of auto-enrolement pension money into low carbon strategies, beating the initial 2022 target of £10bn by the end of June.
- 88% of Aviva Investors’ EU Domiciled funds classed as SFDR Article 8 (funds which promote environmental or social characteristics) for c.£50 billion of assets.
* Aviva’s science-based targets in full:
- Aviva plc commits to reduce absolute scope 1 and 2 GHG emissions 90% by 2030 from a 2019 base year.
- Aviva plc commits to 70% of its suppliers by spend covering purchased goods and services setting SBTi validated targets by 2025.
- Aviva plc commits to reduce its real estate investment portfolio GHG emissions 57% per square meter within its real estate by 2030 from a 2019 base year.
- Aviva commits to continue providing electricity generation project finance for only renewable electricity through to 2030.
- Aviva plc commits to 33% of its corporate equity, bonds and loans portfolio by invested value setting SBTi validated targets by 2025.
- Aviva’s portfolio targets cover 50% of its total investment activities by assets under management as of 20191.
1 These targets and coverage % include all in-scope external client assets managed under discretionary mandates.