Aviva Investors calls for fully costed UK transition plan

The UK must adopt a fully costed transition plan, according to Steve Waygood, chief responsible investment officer at Aviva Investors, the insurance giant’s asset management business.

Following from muted reaction to the government’s ‘Green Day’ last Thursday of legislative announcements, Waygood called for greater net-zero ambition within the UK and the international financial system as a whole.

“Investors stand ready to invest in and support the transition but need clarity and certainty from government to do so."

He stressed that "unaddressed climate change will create chronic inflationary pressures, threaten long-term financial stability, and undermine the structural integrity of markets.

“Thursday's announcements were a mixed bag in that regard”, said Waygood.

He did acknowledge that areas of the UK’s newly announced Green Finance Industry could have positive impact once implemented, such as extension of mandatory transition plans to all large companies and introduction of sectoral investment roadmaps. 

Consultations to embed systemic risk considerations into fiduciary duty and to reform the FRC Stewardship Code to include systemic or macro stewardship was also welcomed.

Yet, Waygood called for more forceful policy reform than that which was pledged, underpinned by the proposed transition planning.

“Yesterday’s measures look to fall short of this aim. We hope the announcements from the Treasury trailed for later in the year will go further and faster in delivering an ambitious transition plan for the country [of the UK]”, said Waygood.

Last month, Aviva Investors appointed Nick Molho as the firm's head of climate policy in a newly-created role. Molho joins from his previous role as executive director at the Aldersgate Group.