Aviva Investors says that it expects the companies it invests in to deliver tangible and transparent progress on sustainability in 2022.

In his Annual Letter to Chairs, Mark Versey, Chief Executive said the firm would judge companies this year against expectations on biodiversity and human rights as much as climate and executive pay. The Letter will be distributed to 1500 companies in around 30 countries.

“We want to encourage companies to consider the whole picture of sustainability because this is how they will create the greatest return for shareholders, while helping to build a better future for society. Companies must now turn their pledges into concrete and measurable plans of delivery. Our letter sets out clear expectations as to how they should do this, and what those plans must address across climate impact, biodiversity and human rights,” Versey said.

He cited the example of companies developing climate action plans, which Aviva Investors believes must also manage dependencies and impacts on nature, as well as supporting a just social transition for workers, customers and communities. “Simply cutting emissions but allowing the destruction of the rain forest to continue will do little to reverse global warming. Companies need to adopt an integrated approach for maximum benefit,” he said.

Aviva Investors says it will hold boards and individual directors accountable at companies where the pace of change on climate, biodiversity and human rights does not exhibit sufficient urgency. They also want executive compensation structures and performance targets to reflect sustainability goals.