What is sustainable investing?
Support positive change 
Sustainable investing aims to focus on companies that put issues like the environment or how they treat their employees at the heart of their business. Engagement with businesses to help them enact better practices can also play an important role in sustainable investment.
A balanced approach 
With sustainable investing you don't need to sacrifice returns.
Look for the labels 
To help people identify sustainable funds, the Financial Conduct Authority has introduced sustainability disclosure labels. They’re designed to help you better understand how a fund invests sustainably and what its specific sustainable investment goals – such as an environmental or a social goal - might be.
The three 'ESG' measures we use to help us invest sustainably
Sustainable investing looks at business credentials across three measures: the environment, societal issues and how businesses are run (their governance).
Environmental issues
This includes things like a company’s carbon footprint, their use of renewable energy and their waste management policies.
Social
This covers labour standards among the businesses in a company's supply chain, secure data protection and the health and safety of a company's employees.
Governance
This focuses on conflicts of interest and who's on a company's board of directors, political lobbying, bribery and corruption.
Making investing more efficient
In this video, Harriet Ballard, Portfolio Manager within the Multi‑Asset Funds team at Aviva Investors, looks at making investing more efficient by incorporating sustainable investing approaches within managed funds. See how sustainability factors are considered alongside financial objectives in the investment process.
Transcript
Chapter 5: Making Investing more efficient
This video is for educational purposes only. This should not be viewed as advice or a recommendation to invest.
We’ve spent a lot of time talking about ready-made multi-asset funds, but what’s the alternative? Doing it yourself. That means building your own portfolio, choosing not just one fund but an equity fund, a bond fund and a way to invest in alternatives.
The value of your investment may go down as well as up and you could get back less than invested.
You’d need time to research assets, decide which countries to invest in and rebalance regularly to keep your portfolio aligned with your risk tolerance. This can be time consuming and in many cases more expensive than a ready-made multi-asset fund. That’s why when choosing the right ready-made fund, it’s worth considering value.
At Aviva, we’re committed to keeping costs competitive and delivering strong outcomes. As our funds grow and processes scale, we continuously look for ways to make investing more efficient. Because if you look after the pennies, the pounds will look after themselves.
And that brings us to the end of our series, The Investing Master Plan. Hopefully now you feel equipped with everything you need to know to help you choose the right ready-made fund for you. All that’s left to say is a huge congratulations. You’ve made it all the way through the series. Whether this is your first deep dive into investing or you’re refreshing your knowledge, you’ve taken a really important step in learning how to make your money work for you. Don’t forget you can always pop back to any of the earlier episodes if you want a quick recap. Plus there are plenty of helpful tools, guides and articles on Aviva’s website if you’d like to explore a little further. Thank you and good luck on your investment journey.
This video is for educational purposes only. This should not be viewed as advice or a recommendation to invest. Investing offers the potential for better returns than cash savings over the long term (5+ years). But there are risks, the value of your investments may go down as well as up, and you may get back less than invested. If you want advice on investment choices, then we’d recommend speaking to a financial adviser. There may be a charge for advice.
This video is part of our wider Each chapter is designed to work alone, so you can jump in wherever you like.
Common investment strategies
Beyond ESG investing, there are other strategies you can consider when investing. Here are some of the common ones.
Ethical investing
This means investing in funds that exclude certain companies which aren't aligned with your values such as alcohol, tobacco, defence, oil, gas and animal testing. Making returns on your investment is not the priority.
Impact investing
This involves investing in funds that aim to deliver positive social or environmental benefits, like tackling climate change.
Thematic investing
Here you choose companies that follow a particular economic, social or technology trend. For example, Cybersecurity and Artificial Intelligence.
Invest your way with Aviva
From absolute beginner all the way to a seasoned investor, we have a wide range of investment options. Choose one or mix and match and and look for funds that consider ESG factors.
Funds
Funds - Universal Retirement Fund - our simplest way to invest in your pension, it changes your investments based on your chosen retirement date. Look at whether funds take ESG factors into consideration.
- Ready-made funds – can be a good option if you want an easy option, these fully-managed funds have four different choices to match your risk appetite and goals. While ready-made funds don't necessarily target specific ESG outcomes, the fund managers do take ESG factors into consideration, such as a company's plans to tackle climate change for example, as part of the management of the funds.
- Experts’ shortlist – a selection of funds that experts at Aviva Investors think have the greatest chance of good income or capital growth over the long-term. Built using a tried-and-tested process with ESG considerations at every step. There is also other criteria (not just ESG) that they think about when they choose investments.
- Self-select funds – if you're an experienced investor, confident you understand risk and happy to take control, then you can buy and sell from our full list of over 5,000 funds. Choose funds that our experts have rated the best for managing the biggest ESG risks and opportunities.
Shares
Shares - Shares - buy and sell shares in UK companies you’re interested in.
- Exchange-traded funds (ETFs) - like investment funds, these are groups of assets bundled together, but they can be bought and sold like shares.
- Investment trusts - this is a type of fund that sells shares to invest in a portfolio of assets, with the aim of producing returns.
Investment charges with Aviva
0.35% annual fee
The Aviva Charge is 0.35% each year on the first £500,000 of your investments with us. There’s no charge on any investments above £500,000. For example, if you have £100,000 invested, you’ll pay £350 a year.
Share deal for £4.99
If you buy or sell UK shares, exchange-traded funds (ETFs) or investment trusts with us you'll be charged a flat fee of £4.99 per trade.
Other charges
Depending on the investments you choose, you may have other charges, like fund management charges. You can find a full list of possible charges here.
Learn about investing
We have a range of useful guides and calculators that can take the mystery out of investing so you can choose funds with confidence.
Basics
Investing in funds: the basics
Thinking of investing? Here’s what you need to know about funds.
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Basics
Am I ready to invest?
We provide an introduction to key things to know before you start investing
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Strategies
Pension portfolios – how to balance risk vs return
How to create a balanced pension that gives you more control over your money.
Charges Calculator
Work out the charges you may pay with us.
Risk
profiler
Understand your attitude to risk and investing.
Investment preference tool
Find investments that fit your values.
Frequently asked questions
What is ESG investing?
ESG investing stands for Environmental, Social, and Governance investing. It is an investment approach that considers a company’s impact on the environment, its social responsibilities, and the quality of its governance practices alongside financial performance.
Investors use ESG criteria to identify companies that operate sustainably, treat employees and communities well, and maintain transparent, accountable management, with the aim of encouraging positive corporate behaviour.
How do I invest sustainably?
Investing sustainably means putting your money into companies or funds that care about the planet, people, and good management rather than just focusing on returns. Start by looking for funds that take ESG factors into consideration, and which screen companies based on their environmental impact, social responsibility, and governance.
It's about balancing your financial goals with your values, so you're supporting companies making a positive difference while growing your money in a sustainable way.
Are returns from sustainable investments lower?
Returns from sustainable investments can be just as strong as other investments. Companies that focus on the environment, social responsibility, and strong governance may manage their risks better, which can lead to solid long-term growth. Some sustainable funds might have slightly higher fees, and performance will always vary based on the choices you make, market conditions and there are still risks with investing in this way.
The next steps to sustainable investing
Open an Aviva Stocks & Shares ISA 
If you haven't used your annual ISA allowance, starting an Aviva Stocks & Shares ISA will let you invest in a tax-free way.
Invest in a SIPP 
With our self-invested personal pension (SIPP) you can save for retirement in a way that suits you. And start from £25 a month.
Open an Aviva Investment Account 
If you have exceeded your ISA allowance this year, continue investing with our Investment Account.
Need some help?
Find information on savings and investments or get in touch if you still need support.