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Aviva to invest in alternative energy in 2006

5th January 2006

UK insurance and pension leader Aviva has revealed the strategic focus for its 'socially responsible investments' in the coming year with reinsurers, oil dependent companies and gas guzzling carmakers being given a wide berth.

According to Clare Brook, head of socially responsible investment for Aviva's insurance division Norwich Union, climate change, carbon dioxide emissions and the energy challenge will be a key theme for socially responsible investors in 2006.

The company expects more incidents of extreme weather including colder-than-average winters, hotter-than-average summers, storms, floods and hurricanes. Meanwhile oil prices will likely remain high and this will put pressure on high-energy users, particularly in manufacturing, where the cost of carbon dioxide emissions is also rising.

Therefore Aviva will avoid reinsurers who are likely to be hit by the cost of increased storms and extreme weather, and high energy users who will bear the brunt of higher oil prices. This includes airlines, car manufacturers focused on production of heavy fuel-using vehicles and heavy industry.

Instead the company will favor alternative energy companies, including solar, wind, wave, tidal, hydro, biofuels, fuel cells and other hydrogen technologies, and leaders in managing energy efficiency, thermal insulation manufacturers and distributors, metering and control equipment, and carbon dioxide measurers.

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