Aviva Investors, the asset management arm of UK-based insurer Aviva, has signed up to the Montreal Carbon Pledge, saying that climate change poses 'clear risks' to long-term investment.
The firm, which has some £250bn ($385bn) of assets under management, is the latest to commit to the initiative, launched last year by the UN-backed Principles for Responsible Investment (PRI). The pledge requires investors to measure and annually disclose the carbon footprint of their portfolio.
Initially, the company will report on the emissions of just a sample of the companies whose equities it holds. It will decide whether to expand this following a review of the pilot portfolios and in light of client feedback.
"As institutional investors, we firmly believe that we have a duty to act in the best long-term interests of our beneficiaries," said CEO Euan Munro. "As a business, we are clear that there are long-term investment risks associated with climate change."
The Montreal Carbon Pledge is seeking portfolio commitments of $500bn overall. Other investors so far include CalPERS, Mirova and Nordea.