In brief: Aviva allocates £50m to climate VC

The insurer's first commitment is to the UK government-backed Clean Growth Fund.

Insurance giant Aviva will commit £50 million ($66 million; €59 million) to venture capital funds with a sustainable focus, the company said today. Its first commitment is to the Clean Growth Fund, a UK-government backed vehicle that launched in 2020. Aviva did not disclose how much it had committed to the fund.

The fund commitments will “directly support Aviva’s strategic ambition to contribute to a sustainable economic recovery”, the company said.

The Clean Growth Fund was launched by the UK government’s Department of Business, Energy & Industrial Strategy, with £20 million of cornerstone funding, which was matched by fund manager CCLA, and later received investment from Strathclyde Pension Fund.

The vehicle aims to “accelerate the commercialisation of clean growth technologies”, according to a press release, and its previous investments include Carbon Re, which uses artificial intelligence to reduce carbon emissions in the cement industry, and tepeo, a company that has developed a low-cost zero emissions boiler.

Ben Luckett, chief innovation officer at Aviva, said: “We are investing in new technology which will support the global transition to net zero and help Aviva meet its 2040 net zero ambition. We’ve seen strong growth in sustainability-focused start-ups as consumers become more climate-conscious. Our investments will help build upon our knowledge of this space and enable us to continue meeting our customers’ changing needs.”