Aviva Investors’ chief executive, Mark Versey, has warned the companies it invests in that it expects them to deliver “tangible and transparent progress” on a wider definition of sustainability in 2022.
In his annual letter, which is distributed to 1500 companies in around 30 countries, Versey outlined the four key stewardship priorities that will shape voting and engagement activities for Aviva Investors.
The priorities are climate change, biodiversity, human rights, and executive pay.
This year, all companies will be expected to develop climate transition plans and biodiversity action plans.
Aviva Investors will also require businesses to publicly state their commitment to human rights and to achieve environmental and social goals, and be committed to their delivery.
Versey said: “We want to encourage companies to consider the whole picture of sustainability because this is how they will create the greatest return for shareholders, while helping to build a better future for society.
“Companies must now turn their pledges into concrete and measurable plans of delivery. Our letter sets out clear expectations as to how they should do this, and what those plans must address across climate impact, biodiversity and human rights.”
The £262 billion company acknowledged the magnitude of many of these challenges, therefore companies will be evaluated on the strength of their commitments and their ability to demonstrate progress over time.
Aviva Investors said it will hold boards and individual directors accountable if the pace of change does not reflect the urgency required and will divest in cases where companies consistently fail to meet requirements.
The company has previously demonstrated the consequences of not meeting its demands when it voted against the re-election of directors at 137 companies for lack of progress on ethnic diversity and opposed directors at companies due to human rights concerns last year.
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