On the go: Aviva Investors has increased its engagement with companies it invests in, with a 16 per cent hike in resolutions voted during 2020, its annual responsible investment review shows.
The report stated that the asset manager voted on more than 72,025 resolutions at 6,475 shareholder meetings globally in the past year, an increase of 20 per cent compared with the meetings attended in 2019.
Aviva Investors voted in favour of 98 per cent of the most significant climate and social shareholder proposals tracked by responsible investment charity ShareAction.
Remuneration issues was the most contested topic by the asset manager, with Aviva voting against 43 per cent of 7,680 resolutions. This was followed by director elections at 32 per cent, anti-takeover measures at 31 per cent and auditors at 22 per cent.
ShareAction ranked Aviva second for its environmental voting track record — behind Impax Asset Management — with the asset manager achieving an A+ rating in the UN’s Principles for Responsible Investment scorecard.
During 2020, Aviva increased its targeted engagement with more than 1,500 companies and was involved in a further 1,900 corporate interactions through collaborative initiatives and written communications, it stated.
In infrastructure, Aviva Investors considered that good progress was made on the commitment to originate £1bn of climate transition-focused loans by 2025, with £189m sustainable loans originated in 2020.
One of several case studies published in its report concerns the provision of affordable homes in communities across the UK. The asset manager invested more than £170m into the social housing sector on behalf of its clients. This included a £37.5m transaction with Wales & West Housing, a £60m deal with the Coastal Housing Group, and a £75m placement with Settle Housing.
According to Mark Versey, chief executive of Aviva Investors, “history may look back on 2020 as a turning point for environmental, social and governance issues”.
He said: “The pandemic has proven to be a giant ESG stress test for the global economy and shown us that today’s challenges will not respect national borders.
“Investors have a vital role to play in pushing for change on society’s biggest issues, from climate change to diversity, environmental degradation to human rights. We are proud to have long been at the forefront of investor action on these issues.
