Industry Voice: How does an investor make a lightbulb greener?

Aviva Investors knows that building a renewable energy infrastructure requires collaboration with the companies we invest in. So when we examined a European utility company, we introduced ESG covenants to ensure decarbonisation promises are kept.

clock • 2 min read

Aviva Investors' plans are ambitious: a target of £10 billion in low-carbon infrastructure investment by 2030. But we also know that building a renewable energy infrastructure isn't just about the money. It's about being diligent, consistent, and principled.

So when we considered financing a European infrastructure company in the utilities sector, we took a close look at its roadmap - and recognised that despite a clear plan to decarbonise, other harmful energy sources, such as GHG-generating lignite, were still in place.

We negotiated to impose an ESG specific covenant onto the company, which prohibits it from building any new lignite or coal plants. In addition, we included reporting obligations, so we can keep up to date on its decarbonisation strategy. This means clean, green energy for the future - without compromise.

 

ESG helps us be better investors, for our clients, and the world around us.

How? This is how. 

 

Note: Company names shown are for informational purposes only. This is not an offer to sell, nor a solicitation to buy, securities.

 

Important information

In Europe this advertisement is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon, 1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company. In the UK, it is issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: St Helens, 1 Undershaft, London EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. In Switzerland, it is issued by Aviva Investors Schweiz GmbH. In the USA, it is issued by Aviva Investors Americas, LLC, an SEC registered investment adviser, Chicago, IL. In Canada it is issued by Aviva Investors Canada Inc., which is registered as an exempt market dealer and portfolio manager in each province of Canada and as a commodity trading manager in Ontario. Registered office: 100 King Street, Suite 4900, Toronto, Ontario, M5X 2A2. In Singapore, it is issued by Aviva Investors Asia Pte. Limited, a company incorporated under the laws of Singapore with registration number 200813519W. Registered Office: 1 Raffles Quay, #27-13 South Tower, Singapore 048583.

148784 - 17/05/2021

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