CEO of Aviva Buyers Mark Versey
Not too long ago appointed CEO of Aviva Buyers Mark Versey has outlined the agency’s key stewardship priorities for 2021, with the coronavirus pandemic having shone a highlight on deep-rooted and longstanding societal challenges that asset managers at the moment are working to handle.
Writing in his first CEO letter, Versey mentioned it’s important that the asset supervisor grasps the alternatives to reposition its “companies, economies and societies on a extra sustainable footing”.
He recognized 5 key points that can information Aviva’s engagement actions, voting intentions and funding selections in 2021.
Local weather change
Aviva Buyers expects all firms to align with the Intergovernmental Panel on Local weather Change (IPCC) place that the world must restrict the temperature rise to not more than 1.5 levels Celsius above pre-industrial ranges.
“We anticipate all firms to align with this ambition, and clearly articulate local weather methods and transition pathways that can ship internet zero emissions by the center of the century. Local weather plans should combine biodiversity impacts and related mitigation methods,” mentioned Versey.
Versey mentioned firms shall be anticipated to undertake a goal to attain internet zero emissions by 2050 and decide to the Science Primarily based Targets Initiative framework.
They may even be anticipated to combine local weather objectives into their enterprise technique and monetary targets.
Variety and social inclusion
Versey mentioned firms have a duty to actively promote social inclusivity and assist break down reasonably than reinforce social obstacles.
He mentioned firms shall be anticipated to have range methods in place, with not less than one racially and ethnically various director on the board.
They may even must construct a extra inclusive work tradition, publish ethnicity pay gaps and proactively assist minority-owned companies inside provide chains.
The balanced illustration of board administrators with respect to gender, ethnicity, and social backgrounds is a vital enterprise challenge, one that’s important for guaranteeing a deep understanding of key stakeholders and securing the very best accessible expertise,” he mentioned.
Stakeholder enterprise fashions
Versey mentioned that companies should guarantee there’s a clear hyperlink between its said company function, technique, stakeholder welfare and board choice making.
“Stakeholder capitalism is a actuality not a great – firms merely wouldn’t have a enterprise with out their suppliers, workers, companions and prospects. Subsequently, constructing stakeholder-centric enterprise fashions is a industrial crucial,” he mentioned.
“Our expectation is that firms will outline a company function that transcends a slim give attention to fast shareholder returns.”
He mentioned firms shall be anticipated to adjust to worldwide human rights frameworks and report in opposition to key stakeholder efficiency indicators.