Investing in the climate transition through real assets

What a hard day’s work for me on Thursday morning, 20.03.2025, in London! Zoe Austin from Aviva Investors invited me to a construction site where we visited a building that is now being refurbished to meet the investment requirements of the relevant fund. We were accompanied by one of Zoe’s colleagues and engineers who explained many of the details. I was deeply impressed by how meticulous everything is, nothing is left to chance. We bought a coffee round the corner beforehand, the two hours were over quickly and will stay with me forever! Thomas J. Caduff, CEO, Fundplat LLC

• Caduff: Mrs Austin, there are a lot of property funds on the market. What makes your strategy different?

Austin: We believe our fund stands out due to its focus on investing directly in real assets that support the transition to a low-carbon economy. The fund is actively managed, continuously monitoring the portfolio to align with climate transition goals. Our strategy not only invests in real estate but offers a diversified portfolio of real assets, including infrastructure, real estate, and natural resources, all oriented towards sustainability. Sustainabi­lity factors are deeply integrated into the investment process, ensuring that invest­ments contribute posi­tively to climate transition, our approach not only aims to generate financial returns but also supports broader envi­ronmental goals.

• Caduff: The combination of real assets and climate transition could be a game changer. How do you see this?

This strategy aligns financial goals with environmental responsibility, offering a win-win for both investors and the planet. Zoe Austin

Austin: Combining real assets with a focus on climate transition can be transfor­ma­tive. Investing in real assets like renewable energy, transi­tioning buildings like the one we visited in our pictures, and sustainable forestry drives long-term growth while reducing carbon foot­prints. These invest­ments often provide more stability and resi­lience compared to traditional investments, especially during market vola­tility. Additionally, focusing on climate transition means these invest­ments not only aim for financial returns but also contribute to envi­ronmental sustainabi­lity, this strategy aligns financial goals with environmental responsibi­lity, offering a win-win for both investors and the planet.

• Caduff: What influence does your company exert to turn an «unsuitable» investment into a «suitable» one for your funds?

Austin: At Aviva Investors we actively engage with companies to improve their ESG practices, which can significantly enhance the sustainabi­lity and suitabi­lity of invest­ments. This involves direct dialogue with company mana­gement, advocating for better gover­nance, environmental practices, and social responsi­bility. Addi­tionally, Aviva Investors uses their voting rights to influence corpo­rate behavior and drive positive change. They also collaborate with other investors and stake­holders to amplify their impact and promote broader industry standards. By integrating ESG factors into the investment process, we can identify and mitigate risks, ultima­tely turning previously unsuitable investments into viable opportu­nities.