Aviva Investors

The Aviva Investors case describes the challenge of integrating sustainability considerations into the strategy and business practices of companies and into the decision making process of the investment community. Steve Waygood, Chief Responsible Investment Officer at Aviva, was tasked with convincing the business community to incorporate material environmental and social factors, and a longer-term view in business decisions. To achieve this ambitious goal, Aviva and Waygood focused on transforming the accounting and auditing concept of materiality, the definition of which Aviva expanded to include environmental, social, and governance (ESG) information. Further, Aviva engaged directly with portfolio companies when their ESG performance was lagging and severe concerns existed about the management's and the board's ability to lead the organization. When portfolio companies resisted or ignored Aviva's approach, Waygood and his team used proxy voting to initiate change in the target company.