Aviva UK has launched ‘Stewardship lifestyle strategy’, a workplace pension default investment strategy that incorporates ethical and ESG considerations. Businesses which have their workplace pension scheme with Aviva will be able to use the Stewardship lifestyle strategy as their default. They will also be able to offer it to employees as an alternative to their existing default.
The philosophy of the Aviva Stewardship funds recognises that the contribution companies make to a sustainable society depends both on the products and services they provide and the way they provide them.
This results in the funds excluding companies that do not meet certain ethical standards or that harm society or the environment.
Matt McGill, Head of Workplace Propositions at Aviva mentioned, “Responsible investing is no longer a ‘nice to have’. The investment and workplace pensions industry can play a huge role in changing the world we live in for the better, and the launch of this lifestyle strategy, utilizing the Stewardship funds, is a big step towards that.”
The Stewardship Funds investment approach is based on three layers:
- Exclusion: Companies that fail to meet certain ethical standards or do harm to either the society or environment would be excluded from the scheme, for instance, companies with significant involvement in tobacco, pornography and coal mining.
- Engagement: the team behind the Stewardship funds engage and support companies that make a positive contribution to a sustainable society and encourage positive environmental, social and governance practices.
- Outcome: Measurements would be conducted on the ESG performance of companies in which the funds are invested.
Steve Waygood, Chief Responsible Investment Officer at Aviva Investors, said, “Having the option to invest in companies that are in line with your personal beliefs shouldn’t be reserved for the wealthy or the investment professionals.
“Using the Stewardship funds to create a workplace pension default means more people will now have access to an ethical investment philosophy. The hard-earned savings from the people can be used to make the world a better place”
