Aviva has entered a partnership with the World Wide Fund for Nature (WWF) to call on Westminster to require UK-regulated financial institutions to develop credible net-zero plans.

The duo have published a joint policy paper, titled Transition Plans for a Net Zero Future, which sets out five recommendations for how the UK government can further leadership on green finance and mobilise the financial sector.

Other than mandating financial institutions to develop credible net-zero plans that align with the goals of the Paris Agreement, the recommendations include advice for the Treasury to ask regulators to require financial institutions to create such plans by the end of 2022.

Additionally, the partners have called for the development of guidance on the most appropriate metrics, methodologies and specifications for transition plans.

Finally, the policy paper asked for a clear policy framework from the UK government, and for Westminster to use its role in the G7, G20 and other platforms to encourage other nations to mandate transition plans.

Aviva Group chief executive officer, Amanda Blanc, said: “We’re living in the midst of a climate change emergency and we’ve got a big responsibility to do something about it. Our new partnership with WWF will help us tackle the causes of climate change and help our customers and communities cope better with the consequences.

“We will campaign with WWF to ensure the financial sector gets its act together and makes a more significant contribution to a sustainable planet. WWF has a huge amount of expertise in this area, and I’m excited about what we’ll be able to achieve together to help lead the financial services industry to contribute more to a low-carbon future.”

WWF-UK chief executive, Tanya Steele, commented: “We know that the finance sector has a staggering climate footprint, and that simply has to change if we are to stand a chance of meeting the Paris Agreement targets of limiting global warming to 1.5 degrees centigrade. But as we look to build a greener, stable planet with a sustainable economy, the sector can also be a force for positive change.

“Aviva is already a climate-leader in the industry and demonstrates the enormous potential for our pensions and insurance in helping to tackle the environmental crisis. Together, we hope to inspire other financial institutions along this journey and to jointly call for ambitious government reform of the sector in the run-up to COP26.”

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