Aviva plc Corporate social responsibility report 2004 – a summary Aviva, as a member of the international business community, recognises its corporate social responsibility commitments in its various roles, which include insurer, investor, employer and consumer. Group corporate social responsibility policy

We reflect these commitments Suppliers We recognise that our business in a family of eight policies, We regard suppliers as our partners activities have direct and indirect which relate to: and work with them to help us impacts on the societies in which we operate. We endeavour to manage Standards of business conduct achieve our policy aspirations in the delivery of our products and services. these in a responsible manner, We are committed to ensuring that believing that sound and our business is conducted in all Community demonstrable performance in relation respects according to rigorous ethical, We strive to be a good corporate to corporate social responsibility professional and legal standards. citizen around the world, recognising policies and practices is a fundamental part of business success. Customers our responsibility to work in partnership with the communities in We are committed to continuous We seek to provide our customers which we operate. with a service hallmarked by integrity, improvement in our corporate social quality and care. Environment responsibility programme and encourage our business partners to We are committed to a programme of Human rights strive for matching performance. management, continuous We respect the Universal Declaration improvement and reporting of our Our businesses throughout the world of Human Rights and seek to be direct and indirect impacts, which are committed to the achievement of guided by its provisions in the marks our contribution to improving our policy objectives. Our conduct of our business. the world in which we live. performance will be reviewed Workforce periodically and externally verified to help us meet our policy goals. We will We are guided by our aim to be the publish reports regularly. employer of choice in all countries in which we operate. Health and safety We are committed to providing a working environment which is both safe and fit for the intended purpose and ensures that health and safety issues are a priority for all business Approved by the board of Aviva operations. January 2002

The picture on the front cover, showing three members of staff, depicts CSR as our corporate DNA. Chairman’s introduction

It is vital for a business to remain alert and responsive to the changes taking The Aviva board has a clear view of s introduction

place around it. Its future depends ’ upon how well aligned it is to the the importance of corporate social society in which it operates. CSR is Chairman now firmly on the business agenda. responsibility (CSR) to the success 01

Legislation and regulation are often of the business. simply a reflection of the fact that plc Aviva society believes that mistakes are being made and need to be corrected. If a business simply tries to the right approach to ethics, if its At this stage, the linkage between hide away from the issues that driving motivation in all its dealings is CSR and corporate governance confront society, if it lies low and is to be honest and fair with all of its becomes quite clear. The strength- simply reactive, it deserves and must partners, then it is earning its licence ening of the Combined Code on fully expect to be occasionally to operate and it will thrive. If it Corporate Governance is simply a prodded into action by the stick of focuses its gaze only on the narrow response to address what is perceived legislation. spot of its own gain to the exclusion as being no longer appropriate of other considerations, it will rightly behaviour. If there is no abuse and if A responsible business is one which lose the trust of its partners. the governance of a company is keeps a clear eye on all external directed transparently by a sense of developments. It needs to lead or, at Whilst CSR covers many important fairness and ethics, there is no need least, participate in debating the issues such as relations with to restrain it. On the contrary, it will issues. It must develop its own values, customers and the wider community, win respect and trust. Aviva’s annual its own ethics, its own policies and all the environment and human rights, report for the year already reports on of these must live in the actions of its the core of CSR is ethical behaviour. If compliance with the new Code one workforce and not be merely empty a business is not directed by its own year in advance. words that live on paper alone. This is considered set of ethics and values, it the challenge which Aviva is now is simply adrift. The best means of The Aviva board and senior seeking to meet. embedding ethics and values in a management are thoroughly business is through example. committed to the application of the Like so many other human activities, Whatever example is set at the top of revised Aviva standards of business business is ultimately about relations an organisation will flow down conduct. They regard this as the with other people. If a business has through the structure. It is therefore centrepiece of the company’s CSR the job of the Aviva board and the policy, which is unreservedly senior management to ensure that supported and viewed as a major only good examples are set. contributor to our future profitability. Behaviour must be transparent and unambiguous. To re-inforce this clear commitment, I shall be attending this year’s CSR review group meeting in June, which Pehr Gyllenhammar Chairman will examine our strategy and progress and make plans for the future. Foreword by group chief In Ireland we have negotiated the In such matters, we follow the executive supply of electricity from renewable recommendations of the Managing sources to cover 40% of our needs. Change Report, produced for the We have also further expanded European Commission by a group led recycling facilities across the group by our own chairman, Pehr Our CSR programme has developed and introduced employee car-sharing Gyllenhammar. This report prescribes well during the past year, despite the schemes for commuting in the UK reporting guidelines in the areas of continuing financial pressures on our and Australia. workforce, human rights and health company and the industry generally. and safety in the management of In particular, CSR is becoming an Our CSR aspirations for products and structural change. integral part of our business thinking. services are illustrated by Hibernian’s We are closer to our ambition of contribution towards road safety in We have, for example, applied these having CSR as simply “the way we do Ireland. Hibernian extended its Ignition guidelines to the relocation of some things around here”. driver training scheme during 2003 to functions from the UK to India. We Foreword by group chief executive Foreword

02 allow less experienced motorcyclists to have taken great care to manage the As this report shows, a competitive take part and thereby benefit from continuing career interests of the UK market environment need not be a insurance premium discounts of 15%. staff involved through vigorous

Aviva plc Aviva barrier to good practice. We are Car drivers who successfully complete redeployment efforts and by continued determined that our Aviva Values of the course are eligible for discounts of support for life-long learning. integrity, progressiveness, 20-50%. The programme is proving performance and teamwork be successful; some 16,500 drivers went In India we have taken equally great reflected in how we conduct our through the programme during the care to select business partners from business around the world. This in year and it has also received a Prince those with transparent policies on turn will help us earn and keep the Michael of Kent International Road recruitment, progression and trust of our customers, shareholders Safety Award. In line with our procurement and with a and other stakeholders. philosophy of spreading successful demonstrable track record in gender equality and a total absence of We believe that good practice in CSR practices across the group, similar religious discrimination. Our final is a vital part of achieving that trust. products are now offered in the UK decision rested on their contribution To that end, we now measure our and The Netherlands. to the local community, their performance at group level every year, We recognise that insurance and reputation as good corporate citizens using internal and external criteria. investment can be a complex and their environmental impact. Individual business units are also business. It is vital to provide clear introducing their own benchmarks to and transparent information about The primary reasons for structural help support their own development. our products and services so that change in a business must include improved service to customers. We Environmental issues continue to be a customers can make informed therefore monitor satisfaction levels cornerstone of our CSR programme. judgements about the best solutions very closely. We are pleased to report For example, in October 2003 we for their needs. In the UK, Norwich that, despite the relative newness of signed a two-year contract for the Union has invested significantly to our international call centres, our supply of renewables-sourced improve the quality and clarity of its monthly checks reveal excellent electricity, covering 86% of the marketing and product literature and progress. We will work to achieve yet Norwich Union Central Services to promote increased levels of further improvements. portfolio in the UK. This means that financial understanding. This open and honest approach will continue annual CO2 emissions will reduce by We believe that it is important to to have the highest priority in our some 69%, equivalent to 32,000 CO2 strive for common standards in all customer relations across the group. tonnes per annum based on the those countries in which we operate. In our businesses in Eastern Europe, baseline figure we set in October 2001. We recognise that the starting point for example, where the markets are might well be different from country comparatively new, particular care to country, but the direction in which has been taken to ensure that our we are heading should be the same. product offer is as clear and Richard Harvey Further, while the speed of Group Chief Executive straightforward as possible. developments should match our local One of the most important yardsticks business’s capacity to absorb change, of CSR performance is how a business we still expect steady, measurable manages the impact of the continual progress to be made. operational changes that have become Recognising the long-term a feature of modern business life. significance of CSR and its Acquisitions, disposals, efficiency and importance in the training of our service quality programmes very often senior staff, we have decided to lead to re-structuring. Where sponsor an Aviva Chair in Leadership significant upheaval is involved, for and Responsibility at INSEAD, an either staff or customers, management international business school based in of the change becomes a test of a France and Singapore. This chair will business’s real commitment to CSR. enable us to develop further our understanding and practice of CSR Index and to share that knowledge with others, while developing our senior managers of the future. Aviva and corporate social responsibility 4 We are proud to chair the forum for Company profile 4 the UK signatories to the Global Compact and will continue to give it What we mean by CSR 4 wholehearted support. The Compact CSR governance 5 is a personal initiative of the UN Development of the CSR programme 7 Secretary-General, Kofi Annan, and offers an excellent international platform for meeting many of the challenges that CSR seeks to address. CSR in practice 8 Index This report demonstrates the actions 03 we are taking to meet our obligations Standards of business conduct 8 under the Global Compact. Customers 10 Aviva plc Aviva We also continue our active support Human rights 13 for Business in the Environment, on Workforce 15 which I serve as a member, for Health and safety 18 Business in the Community, and for the financial initiative of the United Suppliers 20 Nations Environment Programme – all Community 22 of which offer excellent opportunities Environment 24 to share and develop best practice.

Our plans for 2004 include enhancing internal communication and Helping to promote CSR leadership 27 supporting staff at a local level to increase their support for our CSR programme. We also intend to improve further Aviva’s CSR reporting CSR issues for the financial sector and Aviva’s response 27 practice, with an increased focus on Managing structural change 27 business value, and to develop a robust assurance process with our Promoting financial capability 27 auditors, Ernst & Young. Climate change 28 We recognise that tough challenges lie ahead. How do we remain cost- efficient in an aggressively The value of partnerships 28 competitive environment? How do we ensure that our integrity, governance processes and operational standards are maintained worldwide? Comment from our partners 29 How do we build and maintain trust and confidence among our customers? How do we balance the How others view Aviva’s CSR performance 30 needs of all our stakeholders?

We do not pretend to have a complete answer to all of these Independent review statement 31 questions. However, we believe that good practice in CSR will be a vital component in our response. Our businesses 32 Aviva plc 04 Aviva and corporate social responsibility another andwith theoutsideworld. regulates howwedealwithone conduct adherence to health andsafety environment community customers relations withour eight related elements.Theseare ourperformancein which governs stakeholders. Itisanumbrella policy, customers andforourother important” forourbusiness, by thephrase“takingcare ofwhatis Aviva’s CSRpolicymaybesummedup What wemeanbyCSR 95% in2002. Aviva staff worldwidecompared with programme covered some98%of This meansthatin2003,theCSR business willbeclosedduring2004. Hill HouseHammond,sincethis office. Reporting forthelasttimeis Union LithuaniaandAviva head Union HayatinTurkey, Commercial Aviva Czech Republic,Commercial first timein2003includeAviva India, Group businesses reporting forthe operations. investment salesfrom continuing and £30billionpremium incomeand billion ofassetsundermanagement worldwide in2003.We have£240 customers and56,000employees seventh largestinsurer with30million Aviva istheUK’s largestandworld’s Company profile social responsibility Aviva andcorporate describes We describe . Itistherefore apolicythat , , ourmanagementofthe suppliers standards ofbusiness , human rights workforce and our “ and the how wedothingsroundhere CSR asourcorporate DNA , and progressiveness Aviva Values of policy underpinsouradherence tothe CSR policyinJanuary2002.The The board ofAviva plcapproved the respect ofcustomers. contain explicitundertakingsin of businessconductpolicydoes However, ournewlyrevised standards activities inwhichweare engaged. to coverthediversityofbusiness detailed statementwouldnotstretch in thecaseofcustomers,where one www.aviva.com/csr. Theexceptionis which canbeviewedon statements offullerpolicystatements, The CSRpolicycontainssummary integrity. ThislinkagebetweenCSR teamwork , inparticularthatof , integrity performance , and ground wehavecovered. the pastyearandtellsyouwhat therefore over thestoryofjourney andanotherroad. Thisreportcorner is to “arrive”;there isalwaysanother milestones, butyoucanneverexpect willbemarkedbyachievement journey like embarkingonajourney. The like reaching adestination,butmore Achieving goodpracticeinCSRisnot content forotherstojudgeus. by whichwejudgeourselvesandare roadmap, settingclearexpectations here”. It represents abehavioural describes “howwedothingsround CSR asourcorporateDNA,sinceit resources CSRmeasures. We describe formalised inanewsetofhuman and theAviva Values has been ” . sinceit , the policyonhumanrights group. The director ofCSRnowowns in theirelementofCSRacross the promoting andco-ordinating progress “owner”, whoisresponsible for Each CSRpolicyhasanappointed programme duringtheyear. strong support totheCSR the executivedirectors havegiven throughout theyearandbothhe receives regular reports onCSR company secretary. Thechairman reports tohimthrough thegroup programme, andthedirector ofCSR is theexecutivesponsorofCSR businesses. Thegroup chiefexecutive embedding theCSRpolicyacross the incremental approach takento whole-hearted supportforthe 2004, theboard re-affirmed its annually. Atthelastreview inJanuary reviews thepolicyandprogramme At group level,theAviva board CSR governance #Representatives from headoffice andbusinesses *Representatives from parties headoffice, businessesandexternal CSR managementstructure CSR managementcycle in thebusiness Policy owners in thebusiness managers Nominated December board Aviva board Aviva review group CSR* June secretary company Group of CSR Director in thebusiness Policy owners commitee Executive owners Group policy November March reporting template. and theenhancementofCSR of businessconductandhumanrights revision ofthepoliciesonstandards of the2003meetingwere the and future plans.Themainoutcomes reviews strategy, policy, pastprogress day off-site meetingeachJune.It organisations andauditorsforatwo partner non-governmental Aviva headoffice, thebusinesses, brings togetherrepresentatives from the Aviva CSRreview group. This performance istheannualmeetingof main forumforassessmentofCSR is influencedbymanyfactors.The The direction oftheCSRprogramme functions. purchasing andfundmanagement with ourgroup humanresources, although hedoessoincloseliaison performance onbehalfofthegroup, External assurers CSR reviewgroup* CSR steeringgroup# Review functions November September June February group steering CSR# the development in external views. the developmentinexternal which refresh ourunderstandingof networks (seepage28), external team are allmembersofdifferent group duringtheyear, thegroup CSR the expertisewithinCSRreview and analysis.Apartfrom drawingon developments of relevant external programme shouldalsotakeaccount Appropriate direction oftheCSR of ourbusinesses. within thegroup CSRteamforeach introduced adedicatedliaisonperson and thegroup CSRteam,wehave and understandingbetweenthem to facilitatebettercommunication geographically distantbusinessesand To promote inclusionofthemore progress CSRagenda. andtheexternal more regular reviews ofboth internal businesses. Itprovides aforumfor head office and certainofthelarger drawn from representatives from Aviva on aquarterlybasis.Itsmembershipis The Aviva CSR steeringgroup meets director ofCSR Environment group corporate affairs director Community director ofpurchasing Suppliers group humanresources director Health andsafety group humanresources director Workforce director ofCSR Human rights director ofCSR Standards ofbusinessconduct of theCSRpolicyelements Management ownership

Aviva plc 05 Aviva and corporate social responsibility Aviva plc 06 Aviva and corporate social responsibility Group CSRteam Group CompanySecretary Richard Whitaker Environment Manager Zelda Bentham CSR CommunicationsManager Michelle Wolfe Head ofCSR Nathalie DeGeus Director ofCSR Anthony Sampson CSR ManagementConsultant Annette Yunus Services, whichalsoreports tohim. Insurance andNorwichUnionCentral reports onprogress inNorwichUnion CEO hasalsocalledforquarterly larger European businesses.Thelocal model isrepeated inmostofour environment andcommunity. This the already existingcommitteeson policy owners,whichsitsalongside CSR steeringgroup, comprisinglocal Norwich UnionInsurancesetupa businesses. Forexample,intheUK, structure inthe governance the continualdevelopmentofCSR The embeddingprocess isreflected in clear progress eachyear. approach, witheachbusinessmaking expect andencourageanincremental move forward atdifferent speeds.We operating indifferent markets,theywill businesses are uniqueandthat, approach. We acceptthatour group, but notonuniformityof on acommondirection across the according tosizeandculture. We insist varies from businessto structure supporting CSRgovernance formality andthenature ofthe Beyond theabove,degree of within thegroup CSRteam. contact pointfortheliaisonperson nominated manageristheprimary and toAviva head office. The elements bothwithinthebusiness reporting onprogress inallthe responsible forpromoting and well asanominatedmanager policy elementintooperations,as responsibility forintegrationofthat there are localpolicy ownerswith the CSRprogramme. Ineachbusiness coming yearforfurtherprogress on past year;andithasplansforthe reliable accountofprogress overthe CSR policies;itsreport provides a accordance withtheprinciplesof the businessisoperatingin compliance statementtoconfirmthat CSR programme. Hesignsoff a executive (CEO)isthesponsorof In thebusinesses,localchief for andobstaclestoprogress. used toidentifysignificantopportunities risk profile, whichisanadditionaltool periodically reviewed againsttheCSR The executionoftheprogramme is needs ofourdevelopingprogramme. to evolvecontinuallyservethe We structures expectCSRgovernance manager. for CSR,headedbythelocalgeneral local board hasassumedresponsibility staff isaround 70andtherefore the Czech Republic,thetotalnumberof CSR nominatedmanager. InAviva setting upacommitteetosupportthe businesses hasbeenfollowedof North AmericanandAustralian more establishedWest European, and Turkey, thegeneralmodelof Europe In ourbusinessesinEastern completion oftheset-upphase. A CSRstructure willfollowon training anddevelopment. our focushasbeenonstaff became operationalinJanuary2003, In ourjointventure inChina,which environmental initiatives. workforce, communityand programme willinitiallyfocuson of therest ofthegroup, the managers. Followinginthefootsteps been appointedwithtwosupporting built. ACSRnominatedmanagerhas 2002, aCSRprogramme isnowbeing India, whichwaslaunchedinmid- in thenewerbusinesses.InAviva hasalsodeveloped CSR governance the CSRpolicyelements. roles andresponsibilities foreachof owners are appointedwithdefined managers ineachcountry. Localpolicy Singapore, supportedbyseparateCSR manager intheregional office in In Asia,there isaCSRnominated business area. of CSRrepresentatives from each of localpolicyownersandanetwork group ofspecialiststaff, acommittee the UK,inwhichthere isasteering been inMorleyFundManagement CSR intothebusinessstructure has Another goodexampleofembedding the intranet. the inductiontrainingprogramme on introduced totheCSRprogramme via activities. Allnewemployeesare programme withinoperational encourage theembeddingof employees toinform,educateand further through communicationsto drive forward theCSRprogramme has establisheddedicatedresource to Also intheUK,NorwichUnionLife Development oftheCSRprogramme progress duringtheyear. reported onitsenvironmental our smallest,commencedand our businessinthePhilippines,oneof indicator ofextendedreach isthat the formalCSRprocess. Another be lostandtoengagestaff outside enthusiasm, whichmightotherwise us tocapture insights,ideasand within theprogramme. Thisenables subject, butwithoutaformalrole with aparticularinterest inthe Ireland. These groups are forthose in London andwithinHibernian CSR”, bothintheAviva headoffice in setting upofagroup of“Friends office. A novelelementhasbeenthe the CSRprogramme inthehead nominated managerstoco-ordinate head office hasalsoappointedtwo programme. Forinstance,theAviva the extendedreach oftheCSR Further indicatorsofprogress liein this year’s “workforce” report. the Aviva Values. This isreflected in around our reporting frameworkand resources CSRmeasures based implementation ofasethuman has beenthedevelopmentand Globally, theprimarymoveforward enhanced communicationatalllevels. diversity andCSRgenerallyby action groups onenvironment, business level,byencouragementof by regular review atgroup and by closeliaisonwiththebusinesses, strong board and executivesupport, has continuedtobefacilitatedby progress around thegroup. Progress has beenreflected inmarkersof The developmentinCSRgovernance printed CSRreports. and DeltaLloyd,produce theirown businesses, suchasNorwichUnionLife CSR tostaff. Some ofthebigger used across the group tocommunicate and postersare allformsofmedia magazine, staff briefings,staff e-mails entrants. Theintranet,internal pack andinductiondayforallnew Australia features CSRinitsinduction Like othersinthegroup, Aviva comprehensive CSRsection. www.avivacanada.com, hasa Canadian website, the intranet.Additionally, thenew story eachmonthhasaCSRfocuson further CSRwithemployees.Onetop championed bytheCEO,topromote launched anewintranetsite, system,Aviva Canada governance Building onitswell-establishedCSR embedding oftheprogramme. established, wewitnessedgreater In businesseswhere CSRismore communication forlocalaudiences. An exampleofAviva HongKongtailoringCSR orbyCSRpolicyelement(for • eitherbybusiness(forexample,all • be accessedintwoways: our businesses.Theinformationcan details oftheperformanceeach www.aviva.com/csr report The internet eight headingsoftheCSRpolicy. highlights are grouped underthe received from ourbusinesses.The the detailedreports, whichwehave summary report containshighlightsof Thisprinted fully ontheinternet. in thisprintedsummaryandmore The report isavailableintwoforms– The divisionofthereport www.aviva.com/csr report on the internet Other examplescanbefoundin practice from thebusinesses. representative examplesof follows overleaf.Itconsistsof progress ineachCSRelement A review ofimplementation CSR inpractice rights). performance inrespect ofhuman about allAviva businesses’ example, allrelevant information Canada) relevant informationabout Aviva contains full .

Aviva plc 07 Aviva and corporate social responsibility Aviva plc 08 CSR in practice Aviva’s seniormanagementcontract. the standards isrequired aspartof others willfollow. Compliancewith day exampleofwhatitmeanssothat senior managementsettingaday-to- this policycanonlybefulfilledby We are fullyaware thatthespiritof their business. that thepolicyisadhered towithin CEOs mustprovide annualassurance business conductacross thegroup. All observance ofourstandards of reflects theveryclearcommitment to Aviva is necessarily aspirational,butit of goodethics,asbeingtheDNA The depictionofgoodCSRpractice, accurate andhonestreporting. the ruleoflawandtopractice entrusted tothecompany, toobey confidentiality ofinformation practices. Itcommitsustorespect the transparent andhonestbusiness employee specificguidanceonfair, policy framework.Itgiveseach foundation stoneoftheentire Aviva conduct mayberegarded asthe The policyonstandards ofbusiness the firsthalfof2004. consultation andwillberolled outin andexternal extensive internal has nowbeenachievedfollowing clearer andeasiertounderstand.This policy shouldberevised tomakeityet group meetinginJune2003thatthis It wasdecidedattheCSRreview Standards ofbusinessconduct on thecompanyintranet. company. Thepolicyisalsodisplayed abide bythembefore joiningthe they haveunderstoodthemandwill sign astatementtotheeffect that standards ofbusinessconductandto required toread thetermsof businesses. Allnewentrantsare which istypicalofmanyAviva Aviva Australia adoptsanapproach, different businesses. reflect thelocalculture andsizeofthe embedded invariousways,which Around thegroup, thepolicyis understanding. target andrefresh staff promotional campaignsare usedto Computer-based trainingand introduced tothematinduction. intranet andfornewentrantstobe standards tobedisplayedonthe It isacommonpracticeforthe

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and compliance. conduct suchasmoneylaundering undertaken inaspectsofbusiness staff. Further, specifictrainingis an annualweekendgatheringforall new employees.Thisisre-inforced in ethics initsstaff inductiontrainingfor venture businessinPortugal,includes Eurovida, ourbancassurancejoint- were adhered to. the standards ofbusinessconduct review ofthemattertoensure that team carriedoutanindependent commission. Morley’s businessrisk relating tothedisclosure of employee raisedanissueduring2003 each party. AlsowithinMorley, an understanding ofwhatisexpected Morley staff todevelopashared introduced toenableclientsand client servicetieringshavebeen processes havebeenimproved and Morley during2004.Clientreporting They are beingrolled outacross environment withintheworkplace. are designed tofosterarespectful managers in2003,theseworkshops sessions. Launchedtosenior inforced through “RespectatWork” (Morley), fairbusinesspracticesare re- In MorleyFundManagement reported toalocalboard committee. This istrackedonadatabaseand to renew thisagreement annually. standards onjoiningandare required In Canada,employeescommittothe they arise. decisions innewsituations,should empowered totakeappropriate understanding sothatemployees are sessions toembedfurther investigate developingethicaltraining standards. In2004,thebusinesswill and soundlyimplementingsuch the importancelocallyofbothhaving resolving thematter. Thishighlighted reliable toin ethicalcompasstoturn conduct proved themselvestobea 2003. Thestandards ofbusiness instance ofconflictinterest during Aviva Romaniaexperiencedan proper salestechniques. has responsibility forcompliancewith qualitycontrol position,which internal Czech Republic,Aviva establishedan sales inacompetitivemarket.Inthe by agentswhoare pressed toproduce the potentialformis-sellingproducts incoming proposals toprotect against additional checkonthequalityof Aviva in Hungaryhasintroduced an intranet, It iscommunicatedviaHibernian’s similar toalltheotherlocalpolicies. frames theminaformatandstyle obligations inthegroup policy, but framed. Thistakesaccountofallthe based onthegroup policyhasbeen inIreland, alocalpolicy In Hibernian communications in2004. will provide focustofurtherinternal carried out-thefindingsfrom this ethical conductawareness” was business, asurveyof“Fraudand standards throughout thelife to improve understandingofthe As partoftheplannedfocusin2003 understanding ofsuchpractices. tested ontheirawareness and facing roles, employeesare annually week ofemployment.Incustomer- and moneylaunderingduringthefirst training packagesondataprotection required tocompletecomputer-based induction, newemployeesare to instructioninthestandards on gifts anddataprotection. Inaddition customers andsuppliers,receipt of conflicts ofinterest, relationships with including; howtohandlepotential numberofspecificsituations, a explains howtheyshouldbehavein The onlineemployee’s handbook policy onthenewCSRintranetsite. provides employeeswithaccesstothe In theUK,NorwichUnionLife The Beat . standards. awareness andunderstandingofthe compliance functionstotestfor Aviva USArelies uponitslegaland fraud andmalpractice. report suspectedcasesofworkplace hotline servicethatallowsstaff to independent, confidential24-hour “Safecall” hotline.Thisisan The UKbusinessesalsooperatea on moneylaundering. the computer-based trainingmodule of staff have successfullycompleted laundering officer. To dateover95% are co-ordinated byamoney money laundering.Thechampions any suspicionsonpotentialcasesof whose role itistogatherandreport the variouslocationsinUK, laundering businesschampionsacross This usesanetworkofmoney Insurance wasimplementedin2003. laundering inNorwichUnion A newrisk-basedapproach tomoney be introduced in2005. conduct ofbusinessrules,whichwill be fullycompliantwiththenewFSA aims toensure thatthebusinesswill (FSA) readiness programme, which operates afinancialservicesauthority described above.Inaddition,it deploys manyofthemethods Norwich UnionInsuranceintheUK and future plans.Oneofthekeyoutputswasrevision ofthestandards ofbusinessconductpolicy. Members ofAviva’s CSRreview group attheJune2003meetingtoreview strategy, policy, pastprogress transparency. compromise onitsdriveforutmost been suggestedthatAviva should competitors. However, ithasnever structures offered bysomeofits compared withthemore opaque sometimes seemlessfavourablewhen marketing andchargingstructure sales progress, sinceitstransparent integrity isbelievedtohavehampered Republic, Aviva’s commitmentto give risetoconflicts.IntheCzech Application ofthestandards canalso elements ofthepolicy. awareness programmes onother In 2004,itisintendedtolead money launderingandconfidentiality. policy, suchascompliance,anti- sessions onspecificaspectsofthe Aviva Asia hasconductedbriefing practice ofthecompany. embedding goodethicsinthedaily programme ontheimportanceof personally leadacommunication Commercial UnionHayat,will our lifecompanyinTurkey, In theearlypartof2004,CEO game, whichallstaff canplay. inforced inavalues-basedboard of required behaviour isalsore- employment contract.Understanding integral partofeachemployee’s business. Thestandards forman the standards andcore valuesofthe how eachindividualhaslivedupto the annualappraisalprocess toassess In TheNetherlands,DeltaLloyduses

Aviva plc 09 CSR in practice Customers CSR in practice 10 We believe that it is a proper function Product and service offer Aviva Malaysia has responded to the of insurance to provide sources of Our product development teams in growing trend of sending children Aviva plc Aviva help for individuals at every stage of our life assurance, general insurance abroad for higher education by their lives. We want to be there for and fund management businesses are launching an Overseas Student Plan, them to help them take care of those constantly seeking ways of going which complements compulsory things that are important. We want it further to provide peace of mind for health insurance in other countries to be a long-term relationship. our customers. An effective means of and is linked to International SOS for worldwide assistance. We do not yet have one detailed gauging our success in this is by policy statement on customers, which measuring customer satisfaction. Aviva Australia has launched a would cover the spectrum of all our Norwich Union Healthcare launched product enabling customers who activities. However, the revised the monthly online magazine Health claim for a critical illness to re-insure standards of business conduct policy E-talk. This communication includes so that they can still get cover for does give certain customer health updates, features, research and another, unrelated illness. Whilst undertakings, namely that we will: also provides a talkback facility. The death cover is still available to customers who claim for total and • Provide our customers with a online “Personal Health Manager” provides information on improving permanent disablement or critical service hallmarked by integrity, illness. It has also established a quality and care. health and getting more out of life. Accessible online benefits include: leadership forum to focus on key issues, such as customer centricity. • Deal with customer complaints symptom assessment; health planner; This “eleaders” group of 35 seriously and promptly. medical encyclopedia; waiting list guide; 24 hour GP helpline and stress managers focuses on improving • Not make misrepresentations to counselling helpline. customer satisfaction by taking anyone. ownership of initiatives to improve The healthcare functions of both products and services for the group. • Promptly correct any Delta Lloyd and OHRA introduced a misunderstandings if they are similar web-based adviser Lijfwijzer, It is not only the scope and quality of thought to have taken place supported by doctors, where service but also its reach, which is through unclear communication. customers can judge their lifestyle important. In India, where we have and health risks. Delta Lloyd also has 17 branches, four have been opened For Aviva, the needs of the customer a completely new pension product, in rural locations specifically to cater are paramount. We seek to provide which enables the customer to for the needs of the local populace. our customers with peace of mind at switch easily between group and We have launched the Jana Suraksha every stage of their life. This section individual plans. scheme there to provide life cover at reviews some of the innovative scope very low premiums for lower income of our product and service reach and In Germany, Delta Lloyd launched groups. We have also linked up with assesses how successful we have products aimed at specific age self-help groups like Basix to ensure been by a number of different groups: Investment Extra for elderly wider reach amongst the poor and yardsticks. customers; Primusplan for young have already covered 35,000 lives via families and Pensionskasse a new this means. company pension scheme.

In 2004, Commercial Union Lithuania will launch internet accounts for pension customers, which will enable the customers to view changes in their account, value of portfolio and other information. In 2003, CU Lithuania conducted a customer satisfaction survey. 91% of customers were satisfied with the company’s services. money savinghome offers. first twoyearsandanumberof contents cover, afixedprice forthe home packagefeaturinglowstart also launchedafirsttimebuyer’s home orfrom athird partysite.Ithas employees, whoeitherworkfrom and businesseswithuptofive employed product targetssoletraders covers. Thecomplementaryself- comprehensive rangeofbusiness the bestofhomepolicieswitha highly flexiblepolicy, whichcombines for thecustomer. products aimedatmakinglifeeasier and launchedarangeofnew Norwich UnionInsurancedeveloped products forsaferdrivers. Netherlands alsooffer similar Our businessesintheUKandThe available forsuccessfulparticipants. and 20%to50%forcardriversare discounts of15%formotorcyclists 15,000 driverstakingpart.Premium 2004 isexpectedtoseeafurther car toincludealsomotorcycles and has beenexpandedfrom themotor programme during2003.Thescope undergoing theuniquetraining saw 16,500inexperienceddrivers Hibernian’s successful seven daysfor70%ofcustomers. underwriting products islessthan customers, whilstTAT for than three daysfor80%of underwriting products isnowless situation hasimproved. TAT fornon- immediately putinplaceandthe 15 days.Aprogramme was customers received theirpolicywithin time (TAT), where only41%of improvements, suchasinturnaround identified variouscustomerservice 2003, asurveywasconducted,which customers inJune2002.InApril having juststartedtoacquire Aviva Indiaiscomparativelynew, Homework Ignition is a product safety award in2003. road inexperienced drivers,wonaninternational Ireland, whichoffers reduced premiums to Hibernian’s was received from theparticipants. pension laws.Very positivefeedback following therecent review of investment issuesandoptions trustees andsoughttodemystify a refresher formore experienced an introduction fornewtrusteesand trustees. Theonedaycourseprovided members ofclients’boards ofpension a trusteetrainingprogramme for Morley FundManagementintroduced satisfaction level. each branchandrevealed a94% involved in12%ofclosedclaimsfrom Aviva Canada surveyedcustomers work intocentres ofexcellence. business withitandconsolidationof to makeiteasierforcustomersdo academies, acustomeraccessproject claims andcustomerservice service, includingtheintroduction of undertaken toimprove customer A rangeofinitiativeswere 87% and92%across itsoperation. in thepastyear, reaching between recorded improving satisfactionlevels Norwich UnionInsurancealso planstopilot Hibernian with NorwichUnionInsurance, this initiativepromotes. Inconjunction underline theenvironmental benefits plant atree foreverypolicysoldto It haslinkedupwithFuture Forests to accident orhavesimplybroken down. may havebeeninvolvedinan support tovulnerabledriverswho located ifstolenandalsodirects it alsoenablesthevehicletobe from linkingpremium tomilesdriven, telematic devicesintheUK.Apart pilot withthefittingof5,000 Drive Drive Norwich UnionInsurance’s TM TM technology inIreland in2004. initiative isnowundergoinga Ignition driver trainingprogramme in Pay AsYou Pay AsYou urban regeneration intheUK. investment (SRI)principles,focuseson which embodiessociallyresponsible Morley’s tailored trainingprogrammes. professionals andimproved by recruitment ofadditionalsenior function istobeboostedby client relationship management were generallylow. Asaresult the survey, Morley’s clientservicescores in excessof£100million.Inthe2003 covers UKpensionfundswithassets Greenwich AssociatesSurvey, which Morley alsoparticipatesintheannual property business. sustainable construction inits embraced theprinciplesof since 1993.DeltaLloydhasalso investment fundsforTriodos Bank manage anumberofsustainable investments, whilecontinuing to also new mutualfundforsustainable In 2003,DeltaLloydintroduced a relation toSRI. and procedures usedbyMorleyin with Morleyandfollowsthepractices company, PortfolioPartners,isaligned Aviva Australia’s fundmanagement in the“humanrights”section. engagement practicescanbefound information onMorley’s SRI wharf inManchester. Further will alsocommenceonIslington London. Subjecttoplanning,work to beginontheBermondseysitein investors. In2004,workisexpected opportunities tosociallyresponsible estate regeneration investment the firstfundtooffer direct real Igloo regeneration fund, Igloo is

Aviva plc 11 CSR in practice CSR in practice 12 Awards and recognition Based upon a “mystery e-mail” Aviva Malaysia was awarded Awards provide a measure of the exercise undertaken in late 2003 by superbrands status in recognition of

Aviva plc Aviva success of products and services. United Interactive, Aviva Czech its market dominance, longevity, Republic received the award for the goodwill, customer loyalty and Norwich Union Life regularly best customer communications via market acceptance. measures its performance with electronic mail for the whole Czech independent financial advisers (IFAs). insurance market. Commercial Union Polska’s fund A year ago, it was ranked 14th, six management business received two months ago 8th and now it is ranked In 2003, Aviva France was ranked prestigious awards in 2003, the 4th out of 18 providers. Norwich best asset manager for the third European Medal of Business Centre Union was awarded a three-star rating consecutive year, whilst Aviva Vie was Club for unique individual investment at the Financial Services Awards in awarded best life company for broker programme and Investment Portfolio November 2003, compared with a service in 2003 by SFAC (Syndicat 2003 of Business Week (Polish one-star rating the previous year. It Francais des Assureurs Conseils). edition) for best equity funds. was also voted best life product In December 2003, Aviva Romania Standard & Poor’s ranked Delta Lloyd provider in the Life & Pensions Money was awarded the prize of the year for Asset Management as the best asset Facts Awards in March, and earned the best life insurance product, Alpha. manager of The Netherlands. They gold awards for the second also marked three of Delta Lloyd’s consecutive year in the protection, Aviva Vida y Pensiones in Spain won mutual funds as outstanding. investment and pensions provider the efficiency prize granted by the In Germany, Delta Lloyd Investors categories of the Financial Adviser IFA magazine Diligentes and the received an Alpha certificate for high & Provider Awards in May. Norwich COGEBRO prize for efforts made in standards in transparency. Union Healthcare was awarded the investment in the professional accolade of best healthcare provider in development of the sales force. the UK for the third successive year at the Money Marketing Awards 2003. The Singapore Insurance Brokers Association named Aviva Singapore as In 2003, Norwich Union Insurance the overall best insurer (for the third won The Insurance Times general year running) and gave it awards for insurer of the year award as well as best claims service and for most receiving two awards from Insurance broker oriented (both for the second Age – general insurance provider and year running). service provider.

In a telephone survey of brokers to assess their perception of underwriting by the Irish life offices, Hibernian came either 1st or 2nd under most categories. In an annual survey of service carried out by the Irish Brokers Association in 2003, Hibernian had improved from 6th position to 4th place and won the award for most improved company. Once again, Aviva Gestion d’Actifs received leading Hibernian’s claims service centre won industry awards for investment performance in the best small/growing contact centre France, including Corbeille de Mieux Vivre Votre Argent and the Victoire des Sicav from award in Ireland last year. La Tribune/Standards & Poor’s. during 2004. rights policy. Thiswillbe undertaken relevant issuesunderthehuman by awareness trainingrelating to rollout ofthepolicymustbepreceded human resources function.Broader factored inhumanrightsintoits senior managementandhasonly policy hassofarbeenlimitedto In Aviva Asia,communicationofthe business. the policywillberolled outacross the resources departmentonly. In2004, was firstcommunicatedtothehuman example, inTurkey, where thepolicy organisation. Thisisthecase,for explained insomepartsofthe it isstillbeingintroduced and The noveltyofthepolicymeansthat dealt withunder“suppliers”. rights advocacythrough purchasing is matter underclosereview. Human CSR review group willkeepthe products andservicesaswell.The need tobeaddressed inthematterof that humanrightsissuesariseand strong arguments formaintaining human resources. Howeverthere are of fundmanagement,purchasing and impacts andinfluencelieintheareas currently considerthatourprimary deepens incomingyears.We between businessandhumanrights understanding oftheinterface susceptible tochange,asour Of allourCSRpoliciesitisthemost Organisations core labourstandards. Labour account oftheInternational understanding, andalsototake to simplifywording, andhence group meetinginJune.Thiswasboth review attheannualCSRreview already beenrevised followingits comparatively new, thepolicyhas Although thehumanrightspolicyis Human rights shareholder voting. continue toexertpressure through businesses. In2004,Morleywill environmental risksaffecting their information onhowtheymanage the that donotdisclosesufficient votes againstUKFTSE100companies only thoseinSRIfunds.Morleyalso in anyofitsinvestmentareas –not inadequate policiesandperformance voting againstcompanieswith to exertitsshareholder votingrights– Throughout 2003Morleycontinued medicines inthesecountries. enhance accesstourgentlyneeded companies totakeproactive actionto and encouragespharmaceutical billion infundsundermanagement signed byinvestorsrepresenting £600 March 2003, thestatementwas emerging markets.Launchedin and accesstoessentialmedicinein term impactofthepublichealthcrisis aboutthelong- outlining concerns an advisorforinvestorstatement Shareowners Group. Morleyactedas Pharmaceutical Companies engagement practicesisthatofthe A recent exampleofMorley’s issues. human rightsandotherCSR-related mainstream teamsinorder todiscuss attend companymeetingsalongside investment (SRI)specialistsfrequently performance. Sociallyresponsible also clearlyembraceshumanrights matters.This corporate governance practice insocial,environmental and companies toencouragebest constructively byengagingwith responsibility toexercise its influence Management recognises thatithasa stockmarket, MorleyFund Owning over1%oftheUK practices through ourinvestment Advocating humanrights account ininvestmentdecisions. human rightsgoodpracticeinto Australia. Aviva Canadatootakes support toPortfolioPartnersin portfolios, astheyalsolendsimilar to supportHIMinscreening SRI Morley’s SRIteamintheUKcontinues 2002, primarilytopensionschemes. SRI funds,whichwere launchedin in Ireland continuetopromote their InvestmentManagers(HIM) Hibernian customer satisfaction. the brandproposition and deliveryof building theAviva culture tosupport is anintegralandessentialpart of underway. Thepromotion ofdiversity share knowledgeworldwideis diversity, co-ordinate activityand steering group toraisetheprofile of who willworkwithabusinessled is underwayofadiversitydirector highest levelsinternally. Recruitment been prepared anddiscussedatthe business. Adiversitybusinesscasehas actively promote diversityinthe on aregular basistoencourageand Our diversityforumcontinuestomeet office (20%)andAviva France(19%). (20%), MorleyAviva head Union Insurance(20%),Aviva Canada being inAviva Spain(33%),Norwich diverse seniormanagementteams these, 16%are femalewiththemost 425 seniormanagersworldwide.Of employees. Furtherwehavesome 53% femaleand47%male worldwide populationismadeupof skills across Aviva. Ourcurrent use ofouremployees’talentsand towards diversitywillresult inthebest promotion ofpositiveattitudes and institutionalised,the absence ofdiscrimination,bothovert recognition ofindividualability, the employment. We believethatthe equal opportunitiesforeverybodyin Aviva is committed totheprincipleof Equal opportunities Aviva employeesworldwide Female/Male splitof employees: Male 47% employees: Female 53%

Aviva plc 13 CSR in practice Aviva plc 14 CSR in practice 10% 15% 20% 25% 30% 35% businesses, thepercentage is13.5% Morley, one ofourLondon-based 4.88% and6.52%, respectively. In the averageforcountrybeing from minorityethnicgroups islessthan and York where thenumberofpeople employees are based,are inNorwich at whichthemajorityofourUK 8.69%. However, ourtwo mainsites, than thenationalpercentage of themselves asnon-white.Thisisless around 6%ofemployeeswhoclassify such information,overallwehave the UKwhere itispossibletorecord in whichtheyoperate.Forexample the ethnicmakeupofcommunities world ouremployeesbroadly reflect majority ofourbusinessesaround the operate. We are confidentthatinthe the communitiesinwhichthey employees represent thediversityof asking themtoadviseuswhethertheir diversity ofthepoolcandidatesand undertake actionstoincrease the encouraging ourbusinessesto process. Henceweconcentrateon background duringtherecruitment sex, age,disability, religion andethnic diversity informationonforexample, privacy laws,wecannotcollectspecific countries inwhichweoperate,dueto audience. However, inmanyofthe that ourvacanciesreach adiverse increasingly usedacross Aviva toensure “e-recruitment” is Internet-based, candidates theyputforward. agencies toseekdiversityinthe process and specificallyasksits opportunities intherecruitment gives itsmanagerstrainingonequal opportunities. ForexampleAviva USA requirements intermsofequal party supplierscomplywithgroup our businessesensure thattheirthird Morley andDeltaLloydmanyof number ofourbusinessesincluding training hasbeenintroduced ina diversity inourbusiness.Diversity undertaken worldwidetosupport Much workhasalready been 0% 5% (classified asSeniorManagementGrade (SMG)1-3) Business unitswiththehighestproportion offemaledirectors Spain Aviva Insurance Norwich Union Canada Aviva Morley Aviva office head France Aviva part-time inDelta Lloyd. currently 34%ofemployees work the CollectiveLabour Agreement, its flexiblehoursschemeaspart of 2003. In2003,DeltaLloydextended rolled outacross thebusinessin successful andtheprogramme was working. Theseproved very contracts andincreased part-time Norwich UnionLifepilotedterm-time reduced absencerates.In2002, benefit viaincreased productivity and also thebusinesshasreceived direct effective inraisingstaff morale,but staff. Thesehavenotonlybeen shifts andsabbaticalstoqualifying compressed workinghours,flexible pilot inmid-2003offering Insurance beganaflexibleworking working practices.NorwichUnion many businessesoffer flexible opportunities around thegroup and as oneofthewaystoincrease equal Flexible workinghasbeenidentified employment ofdisabledpeople. Office, for itscontributiontothe end of2002,from theTurkish Labour business received acertificateatthe business whilstthegroup’s Turkish candidates forpositionswithinthe Society toidentifyappropriate working withtheThailandDisabled example, Aviva Thailandhasbeen diversity withintheworkforce for many activitiesaimedatincreasing Around thegroup there havebeen diversity practiceworldwide. companies toshare knowledgeon member ofacross-industry group of inclusion benchmark.We are alsoa Employers’ ForumonDisabilityglobal on disabilityintheworkplace Aviva wasrankedeighthforreporting Forum onDisability. InOctober2003, Opportunity andtheEmployers’ Opportunity Now, Racefor equality ofopportunitysuchas various forumswhichpromote Aviva continuestobeinvolvedwith from maternity leave. from maternity them totelecommuteafterreturning has assistedemployeesbyallowing to workand,likeotherbusinesses,it made toencouragewomenreturn 53%. However, efforts are being at returners lower rateofmaternity arrangements. Aviva Australiahasa onflexibleworking have returned In Morley, returners 72%ofmaternity hours tobesuccessfulretention tools. time workingandcondensed Norwich UnionLifehasfoundterm opportunity toworkpart-timewhilst increase inwomentakingthe 78%). InNUCSthere hasbeenan rateof Morley whichhasareturners of 87%forallUKbusinessesexcept towork(inexcess mothers toreturn proved very successfulinencouraging bonuseshave returners UK maternity fundamental toourbusiness.Inthe leave andastheirchildren grow upis Retaining womenpost-maternity equal paywere identified. differences andnomajorissueswith concentrated ongenderpay quarter of2004.Primarily, thesehave the payreview process inthefirst which conductedareview aspartof the businessunitsexceptMorley pay reviews were undertakeninallof recommendations. IntheUK,equal been madetoimplementthe in thesecountriesandplanshave have followedthelegalframeworks Aviva FranceandAviva Canada.These have beenundertakeninDeltaLloyd, during 2003.Forexample,reviews have carriedoutequalpayreviews employees. Manyofourbusinesses Aviva iscommittedtoequalpayfor and measured. which allactivitiescanbechallenged direction toouractionsandagainst overarching frameworkwhichgives been developedtoprovide an strategy andsupportingpolicieshave balance. Ourhumanresources maintaining aneffective work/life challenges thebusinessfaces,while are willing andabletorespond tothe and retain highqualitypeoplewho important thatweattract,motivate changing businessenvironment. Itis challenge thestatusquoinever seek andcapture newideasand advantage. Theyhelpensure thatwe that theyare asource ofcompetitive employees iskeytooursuccessand We believethatthequalityofour which weoperate. employer ofchoiceinallcountries We are guidedbyouraimto bean embracing change. recognising herpositive contributiontowards of theSheffield callcentre withthe award Executive, NorwichUnion Lifepresent SonyaGreen (left)andGaryWithers,Chief International Philip Scott,Group ExecutiveDirector, Aviva Life Workforce purposes. core informationforcomparative refine annuallywhilstmaintaining set ofmeasures whichwewillseekto report. We viewtheseasanevolving contained inthissectionofthe has provided muchoftheinformation basis. Thishasbeensuccessfuland these CSRmeasures onatwiceyearly All ourbusinessesreport against performance integrity framework andourAviva Values of based around ourreporting implemented asetofHRmeasures During 2003wedevelopedand and 18respectively. are dealt withseparatelyonpages13 the Gyllenhammarframework.They health andsafetyalsoformpartof Employee equalopportunitiesand • • • employees worldwide: on howweinteractwithour used thefollowingheadingstoreport Pehr Gyllenhammar. Hence,wehave high-level group ledbyourchairman for theEuropean Commissionbya Managing ChangeReport,produced follows theguidelinesof As previously, ourreporting format Education andtraining involvement/social dialogue Communication and Dealing withstructuralchange , progressiveness, and teamwork . businesses, the voluntary turnover In oursmall,more newly established activities, therange isfrom 12-17%. all ofwhichhaveextensivecall centre in Ireland andDeltaLloyd, Hibernian such asNorwichUnionintheUK, and maturity. Inourlarger businesses, variety ofbusinessesinterms size 1% to23%.Thisrangereflects the our businessesvariesfrom lessthan in average rateofvoluntaryturnover friendly workingpractices.The and fairreward policiesandfamily employees isaidedbycompetitive Aviva understandsthatretention of overall ratingof4.4outfive. and the2003programme received an date ithassponsored tenstudents premier businessschoolsinIndia.To brand awareness amongstthe programmes tocreateinternship Aviva India hasundertakenMBA Aviva as anemployerintheirmarket. worked onbroadening theappealof Many ofthebusinesseshavealso employers. them withtheskillsrequired by for ethnicminoritystudentstoequip education andtrainingprogrammes candidates are re-invested in the feestheyreceive from placing ethnic minoritiesinEastLondonand specialist recruiter thatrepresents been made.MinorityMattersisa from which oneappointmenthas This hasresulted in11applications access toAviva headoffice vacancies. provide them withdirect, real-time Minority MattersRecruitmentto head office hasestablishedalinkwith different ways. For example,Aviva businesses haveapproached thisin potential employeespossible.Our we recruit from thewidestpoolof challenges facingAviva istoensure person fortherole. Oneofthe we seektoattractandselectthebest When recruiting throughout Aviva, Dealing withstructural change

Aviva plc 15 CSR in practice Aviva plc 16 CSR in practice employees internally. it proves impossibletoredeploy are usedthroughout thegroup where qualified. Outplacementprogrammes vacanciesforwhichtheyare internal redundancy are givenpreference for employees undernoticeof example, Aviva Canadaensures that or earlyretirement programmes. For redeployment, voluntaryredundancy avoided through theuseof compulsory redundancies were roles were atrisk.Where possible 4% oftheworldwideworkforce’s a result of thisreorganisation, some number ofsiteclosures intheUK.As opened inNorwich,aswellasmall a newpurposebuiltcallcentre was programmes. Forexample,intheUK, operational improvement our businessledtoanumberof reorganised andthechallenges facing During 2003,thegroup was the personalandsocialimpact. opportunitiestominimise alternative losses are unavoidable,seeking earliest possibletimeand,where job involvement ofthoseaffected atthe change bydetailedplanning,the We continuetomanagestructural strategy. conjunctionwithourbusiness in 0-3%. We are considering this rate ismostlylowrangingfrom celebrates thebusiness’s achievementswith staff. Stuart Purdy, ManagingDirector, Aviva India 27 forfurtherinformation. as goodcorporatecitizens.Seepage selection ofpartnerswithreputations India wehavebeenrigorous inour In establishingoursupportactivitiesin long learning. offered supportforre-skilling andlife- across our UKbusinessesandhave for localredeployment orrelocation have takenaccountofopportunities interests oftheUKstaff involved.We taken care tolookafterthecareer operational activitiestoIndiawehave When movingsomeofour who were affected. jobs toapproximately 150employees Loans.co.uk tobroker theoffer of Watford andPreston, workedwith around 320 jobswere atriskin Insurance, havingidentifiedthat Additionally, NorwichUnion these, 160tookadvantageofthis. 213 staff facingunemployment.Of redeployment opportunitiesforthe other localemployerstoseek Norwich UnionLifeworkedwith Cheadle inCheshire intheUK, employment inthesamelocality. At at risktofindsuitablealternative in helpingemployeeswhosejobsare We havealsotakenanactivestance at 81%(74%2002) whilstthe Insurance, staff satisfaction registered India. Further, inNorwichUnion “Great PlacestoWork” Surveyin 120 participatingcompanies,in the 70%. Aviva Indiacame11th,outof rated theirsatisfactionatmore than employees covered byEOSs,63% number ofourbusinesses.Ofthe ranges from 56%toabove80%ina that employeesatisfactionwithAviva future. Oursurveysin2003indicate across ourbusinessesmore validin make benchmarkingcomparisons introduce asetofcore questionsto locally. However, weare seekingto this isassessedbyEOSscarriedout performance indicators.Atpresent is oneofourmajorworkforce key values.Itthereforebrand andinternal understanding andsupportingour The moraleofourworkforce iskeyto feedback formanagers. coaching programme and360degree the introduction ofatwo-day feedback inAviva Canadaresulted in around employee coachingand For example,lesspositiveresponses surveys helptoinformbusinessplans. group of companies.Resultsfrom the benchmarkcomparator an external analysed and,usually, compared with values. Datafrom thesesurveysis communication, diversityandbrand well asmorale,effectiveness of organisation climateandculture as our employeesintheareas of of thesurveyslookforfeedbackfrom 87% ofourworldwideworkforce. All most businessesduring2003covering (EOS) whichhavebeencarriedoutin example, employeeopinionsurveys employee viewsthrough, for also activelyseekandlistento associations, asappropriate. We will recognised tradeunionsandstaff We valueworkinginpartnershipwith involvement/social dialogue Communication and Employees whorated their satisfaction withAviva at Employee satisfactionlevels 70% orhigher opportunities). and “Top of the Class”(learning (benefits), “HouseofFun”(events) balance), “PerksoftheJob”, “The BalancingAct”,(work/life Policy”. Thisismadeupoffour areas, employee offering “OurPremium promotes theAviva Values viaits ourIrishbusiness, brand. Hibernian, culture andvaluesthatsupportour team leveltodiscussandembedthe bring peopletogetheratbusinessand We alsocontinuewithactivitiesto annual staff conference. meetings, asuggestionschemeandan with directors, monthlyteam staff bulletins,round tablesessions monthly businessupdates,intranet for two-waycommunication,including that allemployeeshaveanopportunity communication channelstoensure Morley hasacomprehensive suiteof called “Director UnpluggedSessions”. Union Insurancesuchmeetingsare questions. ForexampleinNorwich face toandprovide aforumfor business leadersexplainthestrategy sessions foremployeeswhere the the majorityrunningtwiceyearly group communication processes with and views.Ourbusinessesbuildonthe intranet siteactivelydisseminatesnews questions. Arena, theworldwide to thebroadcasts aswellsubmit encouraged tophoneintheirreactions broadcast quarterly. Employeesare executive committeewhichare sessions withmembersofthe this involves“Aviva LiveRadio”, with theiremployees.Atagroup level involved intwo-waycommunication All ofourbusinessesare actively the 2004plans. so highly, thisinformationhasshaped those businesses,whichdidnotscore increased to31%(25%2002).In as extremely orverysatisfiedalso proportion ofemployeesregistering represented. majority ofourbusinesseswere attendees were femaleandthe is diverse.In200332%ofthe that attendanceontheprogrammes background ofallattendeestoensure We monitorthegenderandbusiness development planningprocesses. annual group successionand programmes are identifiedviathe networks. Attendeesofsuch understanding andinternational company togetherbybuildingmutual their future roles andtobringthe encourage anddevelopourtalentfor programmes havecontinuedto group development International of favourablescores. generally exceed3.5outof5interms in allbusinessesandprogrammes Evaluation ofprogrammes takesplace requirements ofthebusiness. required islinkedwiththetraining technical/personal skillsdevelopment management process andthe identified aspartofourperformance Subsequently, trainingneedsare CSR programme. which introduces theAviva Values and induction CD-Rom,SpiritofAviva, business. Theseincludeacorporate orientation programme inthe participate inaninduction/employee joining thegroup anemployeewill development activitiesare inplace.On employees thateffective trainingand business andthedevelopmentofour We believethatitisessentialforour Education andtraining information. See “communitysection”forfurther Business Brokerage) organisation. mentors totheFullEmploy(Black Aviva headoffice provides business seen asavaluabledevelopmenttool. skills inthevolunteersand,assuch,is to thecommunitywhilstdeveloping community isseenasawayofgiving Volunteering andworkinthe Insurance Association. Insurance InstituteandtheLife studying forqualificationswiththe currently has650staffHibernian Certificate inFinancialServicesand example Australiaoffers anAdvanced qualifications ininsurance,for encourageformal Hibernian Amongst others,Aviva Australiaand which wascreated inDecember2003. Aviva Hong Kong’s centre e-learning downloaded athomeorworkand access tomaterialswhichcanbe Canada’s systemwhichgives e-learn training. Two examplesare Aviva innovative useofcomputer-based called CourseShop.Alsothere isan employees, DeltaLloyd’s exampleis supermarket ofactivitiesfor opportunitiestogivea their learning our businessesare grouping together activities foremployees.Increasingly total amountspentonlearning difficult toquantifyworldwidethe Assuch,itis job related learning. professional institutes,universitiesand further educationprovided by management skillsprogrammes and development centres, 1:1coaching, subject matter. Theycover Group are varied andrelated to Training methodsusedwithinthe

Aviva plc 17 CSR in practice Aviva plc 18 CSR in practice pre-travel inoculations. to Aviva headoffice staff alongwith cholesterol testingandwinterflujabs screenings. In2003theyalsooffered carried out4,500pre-employment UK, theoccupationalhealthteam site orviaathird-party supplier. Inthe occupational healthservice,eitheron businesses haveaccesstoan which theywork.Allourmajor employee’s role andthebuildingin specific issuesconnectedwithan and safetyawareness aswellon presentation andabookletonhealth all newemployeesreceive a As partoftheinductionprogramme, major breaches inAviva in2003. not re-occur. There havebeenno actions takentoensure thattheydo breaches are reported as are the health andsafetyissues.Allmajor expert advicetoourUKoperationson (NUCS) business,whichprovides the NorwichUnionCentralServices In theUKwehaveaspecialistteamin the largerbusinesses,bycommittees. officers in allofthebusinessesand, He issupportedbyhealthandsafety safety inthebusinessesworldwide. director isresponsible forhealthand The Aviva group humanresources UK regulations. group policywhichisbasedonthe businesses mustcomplywiththe safety legislation.However, all comply withthelocalhealthand of thepublic.We will,asaminimum, contractors, customersandmembers environment forallstaff, including Aviva iscommittedtoproviding asafe Health andsafety executive committeeofAviva. many managersincludingthe businesses andhasbeenattended by developed inanumberofour manage. Stress traininghasbeen themselves andintheemployeesthey how tomanageitbothfor the effects ofstress ontheirlifeand for allouremployeestounderstand to this,Aviva hasidentifiedtheneed prolonged periodofabsence.Linked particularly iftheyhavehada back-to-work interviewsandsupport employees wouldnormallyreceive and theirworkenvironment. All link betweenanemployee’s absence units toconsiderwhetherthere isa Absence ismonitored inallbusiness between offices. minimisation ofphysicalcontact home leave,travelrestrictions andthe provision ofprotection masks,special sterilisation oftheoffice environment, action includedhealthtalks, event ofoffice closure, “anti-SARS” plan, whichdetailedprocedures inthe addition totheemergencyaction minimise theriskofinfection.In created to promote awareness andto safety ofstaff. Specialpolicieswere (SARS) challengeandensure the Severe Acute RespiratorySyndrome and Canadianoffices tomeetthe Measures were takeninourAsian working conditions. matters ofhygiene,securityand meets everyfourmonthstoconsider participates inthecouncil,which hygiene issuesinthestaff canteenand ergonomic matters,inqualityand offers thecompanyadviceingeneral all staff eachyear. Thecentre also nurses, whoconducthealthcheckson centre, staffed bytwodoctorsand Aviva Francemaintainsamedical desk risesuptoacomfortableheight. stand, atapress ofabutton,their answering calls.Shouldtheywishto whether tositorstandwhen centres employees canchoose employees. InoneofourDutchcall the qualityofworkinglifeforour sometimes usedinorder toimprove Additionally, novelapproaches are and 211sitevisitswere made. 3,050 peoplewere trainedin2003 induction andriskassessment.Over regulations, healthandsafety Hazardous toHealth(COSHH) handling, Control ofSubstances equipment, fire marshals,manual in respect ofdisplayscreen for allstaff intheUK,asappropriate, employees. NUCSprovides training appropriate standard tosupportour the workplace/workstationsare ofan are continually lookingtoensure that all operateisveryimportantandwe The workenvironment inwhichwe any issueaffecting theirlife. impartial advicefrom athird-party on which employeesmayreceive assistance programmes through worldwide, weprovide employee covering 89%ofouremployees Throughout allourmajorbusinesses,

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. l d safety policy. complied withtheAviva healthand India wehaveensured thattheyhave When workingwithourpartnersin to anunacceptablelevelofnoise. employees intelesalesare notsubject in itscallcentres toensure that carried outanoiselevelassessment was identified,Aviva HongKong Subsequent toaminorbreach which bacteria. such asthepresence ofthelegionella caused bycoolingtowersystems, thatmaybe and safetyconcerns eliminating thepossibilityofhealth levels forallemployeesaswell This hasresulted inincreased comfort based oncoolingfantechnology. cooling towersystemtoonethatis transferring from awater-based complete upgradein2003, conditioning systemwasgivena Aviva Australia’s headoffice air October 2004. required toensure itiscompletedby were askedtotimetablethework the upgradeofUKproperties participated inthetenderprocess for Discrimination Act.Bidderswho ensure compliancewiththeDisability identify workrequired inorder to properties in2003theUKto NUCS carriedoutamajorsurveyof covered by3rd partyemployee 89% ofAviva employeesare assistance programmes Aviva employeescoveredby assistance programmes sit orstandwhenansweringcalls. Staff maychoosetoeither inaDutchcallcentre atOHRABankinArnhem dietary awareness information. healthchecks, quizzesandobtaining massages, carbonmonoxidetesting, example, headandshoulder participated invariousactivities,for workplaces andorganisations.Staff their workforce andbuildhealthy their efforts toimprove thehealthof encourage andreward employersin scheme. Theschemeisdesignedto Health atWork” nationalaward the bronze award inthe”Scotland’s Scotland, wassuccessfulinachieving Norwich Union,ateamfrom Perth, and managingwork/lifebalance.In classes whichassistwithrelaxation activities orbyproviding activitiesor employees toparticipateinsports healthy livingbyencouraging Many businesseshelptopromote advice. to provide staff withhealthylifestyle Romania usesakitchennoticeboard being oftheirstaff andAviva suite ofactivitiestoaidthewell- Weightwatchers classes aspartofa bothoffer USA andHibernian balance withinitsbusiness.Aviva and create andembedwork/life avoid excessiveandlengthytravel which aimstohelpemployees Life starteda“GetSmart”campaign to employeeswhilstNorwichUnion among businesseswhichoffer yoga Morley andAviva Australiaare Aviva HongKong,Aviva headoffice,

Aviva plc 19 CSR in practice Aviva plc 20 CSR in practice relationships. process andinongoing supplier CSR criteriainthesuppliertendering staff numbers,includeelementsof 80% ofourbusinessesworldwide, by among suppliers. businesses promote CSRbestpractice examples ofhowsomeour and servicedelivery. Beloware purchasing criteriaofprice,quality weighted score alongsidethe”usual“ the tenderprocess havereceived a environmental/ethics performancein In someinstances,questionson suppliers onresponsible CSRpractice. possible, seektoengagewith Our businessesworldwide,where among suppliers Promoting CSRbestpractice of CSRaspectsatitscore. a stronger reference to theinclusion have awidergeographicalscopeand launched inthefirsthalfof2004,will basis. Thenewpolicy, duetobe of ninekeysuppliersonaworldwide guidelines fortheUKandinrespect currently provides mandatory purchasing policy. Theexistingpolicy office, is revising theAviva group NUCS, togetherwiththeAviva head the worldwidebusinesses. significant purchasing activitiesacross management andcontrol of within NUCS,heisresponsible forthe the group’s purchasing policy. Located of purchasing assumedownershipof In 2003,anewlyappointeddirector also beingengagedinoverseasunits. UK. Purchasing professionals are now Union CentralServices(NUCS)inthe within thegroup iswithinNorwich The centre ofpurchasing expertise our products andservices. policy aspirationsinthedeliveryof our suppliershelpsustoachieve Building committedpartnershipswith Suppliers biodegradable ingredients, rather process cleanswith100% property claimscustomers. The restoring damagedgarmentsforits responsible “wetcleaning”for Ontario wasselectedforits Southern In Aviva Canada,asupplierin people. employing chronically illanddisabled physically challengedbyexclusively financial independenceforthe creation ofequalopportunitiesand Express, duetoitscommitmentthe its courierservicesupplier, Valid projects. Thecompanyalsoappointed commissioning ofnewbuilding structure regardingits governance the established aTender Board toimprove Further, DeltaLloyd’s retail investors the outsourcing ofitsfacilitycentre. selection criteriaduringthetenderfor and ethicalbestpracticesinthe Delta Lloydconsidered environmental CSR stanceandintentions. to askthemfordetailsabouttheir to ourtoptensuppliersinthissector capacity asacustomerweare writing these issuesandtherefore inour sector doesnotcurrently report on software andcomputerservices report andaccounts.Thecomputer the CSRpracticeswithinitsannual CSR report orincludesanydetailsof company issuesanenvironmental or sector ofUKindustryinwhichno reporting thatthere wasaparticular report ontrendsexternal inCSR In 2003,NUCSidentifiedviaan end ofJune2004. rights willbeinallquestionsetsby CSR criteria,forexample,human begun toextendthisincludeother which are purchased. Ithasalso question setstosuitallcommodities There are currently 38differing in thesuppliertenderingprocess. environmental performancequestions In theUK,NUCScontinuestoinclude suppliers. selecting paperandtechnology evidence ofqualitycertificateswhen good humanrightspracticeand In Portugal,Eurovida continuestoseek healthy foodoptions. company’s environmental policies and won thecontractdue,inpart,to instance, SpotlessCleaningService canteen/bistro suppliers).Inone Catering Service(in-house (contracted printers)andSpotless suppliers), CraftsmenPress contacted includedCanon(paper managing CSRperformance;suppliers discussions withtheirsupplierson In 2003,Aviva Australiabegan suppliers are alsosentacopy. CSR elements,whilstexisting theeight questionnaire concerning ensured thatnewsuppliersreceive a Since January2003,Aviva Francehas performance. questions onenvironmental 2004 CUHayatwilllooktoinclude social securityandhealthchecks.In covering labourworkconditions, provide details ofCSRrelated areas security andcateringsuppliersto assurer in Turkey, seeksitscontracted Commercial UnionHayat,ourlife (including hazardous wastematerials). and environmental regulations provincial codes,municipalby-laws hazards andcompliantwithall environmentally safe,healthy, free of to provide afacilitythatis Aviva Canadaexpectstherepair shop preferred collision repair partners, cleaning. Also,inchoosingits than thetoxicsolventsusedindry 1000 1500 2000 500 0 Aviva suppliers andCSR cafeteria. to bemadeavailable forstaff inthe and encourage healthy menuoptions they participateinrecycling schemes managers toensure that,astenants, work closelywiththebuilding end ofitslifecycle.Aviva USAalso dispose ofcomputerhardware atthe suppliers toensure theyresponsibly Aviva USAandNUCSworkwiththeir Nepal andPakistan. opportunities tochildren inIndia, labour andoffer educational Mark” whichisworkingtoendchild recognised “Rug internationally carpet suppliertotakepartinthe injury. Ithasalsoencourageditsmajor weeks forpeoplewhohavesuffered an averageof18monthstojust12 compensation settlementtimesfrom fixed feestohelpreduce resulting intheimplementation of for thechangeinlegalservices played asignificantrole inlobbying In theUK,NorwichUnionInsurance review willfollowinMay2004. chocolate barsforatrialperiod.A providing Fairtradetea,coffee and Norwich UnionintheUKisnow a result, ourcateringsupplierfor Fairtrade products inthecanteens.As of staff advisedtheywouldliketosee carried outbyNUCSintheUK,78% Management. Also,inasurvey andMorleyFund Hibernian supported bytheAviva headoffice, The saleofFairtradeproducts is 2000 2001 022003 2002 of 28daysisused. no contractexists,thegroup standard of invoicesfrom oursuppliers.Where be linkedwiththeefficient payment terms agreed atthetenderstagecan been improved sothatthepayment terms ofcontract.Thesystemhas one andsevendaysoutsideofthe 15% ofinvoicesare paidbetween improvement onlastyear. Afurther funds transfersystem;a20% were paid byBACS,anelectronic figure stood at58%ofwhich70% end ofthefourthquarter2003,this outside thetermsofcontract.At to reduce thenumberofinvoicespaid the majorUKsubsidiaries,isworking which handlesallsupplierinvoicesfor The NUCSaccountspayableteam, and reduce waste. one paymenttoincrease efficiency also combinesmultipleorders into up direct debitswhere possibleand property andprocurement teamsets being handled,whilstthegroup minimise thenumberofinvoices computers andITservershelpsto process with suppliersofpersonal aconsolidatedinvoicing In Hibernian, payment daysofhalfthisstandard. businesses oftenhaveaverage date ofinvoice,howeverour around thegroup are 28daysfrom Generally, ourtypicalpaymentterms payment processes. supporting responsible supplier Our businessesare alsocommittedto payment methods Supporting goodsupplier improvements making No. ofsuppliers environment/CSR approached about No. ofsuppliers delay paymentaslongpossible. normal practiceinTurkey isoftento responsible paymentpractices since the fewcompaniestosupportsuch receipt ofinvoice.CUHayat isoneof which onaverageis15daysafter with theagreed contractterms, Commercial UnionHayatcomplies achieved forearlypayment. days onthebasisofdiscounts to reduce thenumberofpayment In Aviva Spain,efforts are beingmade after theduedate. processed bythefinancedepartment nil thenumberofinvoicesbeing invoices, thereby almostreducing to approve paymentofincoming number ofpeopleauthorisedto Aviva Hungary hasreduced the end 2004). month (expandingto40,000byyear processing some20,000invoicesa using thesuppliere-paymentsystem, Insurance currently has60suppliers generation are 13.NorwichUnion from receipt of invoice tocheque figures. Average daystopayinvoices debt hasfallensome70%on2002 In NorwichUnionInsurance,total

Aviva plc 21 CSR in practice Community Cash £4,110,000 Gifts in kind £181,000 Staff time £168,000 Management time £236,500 CSR in practice 22 Our worldwide businesses are Supporting our communities in Health and welfare committed to supporting and working 2003 and beyond Delta Lloyd continues its long-standing Aviva plc Aviva in partnership with the communities in Our support worldwide varies from support for Stichting Sterrekind, a which we operate. Business units business to business, ranging from foundation dedicated to the well- manage and develop community youth education and development being of children spending long programmes locally, whilst the group schemes to crime prevention initiatives, periods in care institutions. In 2003, sponsorship and community in line with our business values. Delta Lloyd’s support for Simavi, a investment policy aims to provide development aid organisation, helped guidance and direction on the types of In the larger businesses, it is often to carry out water projects in India activities businesses should and should common practice to build focused and other countries. not be involved in. Annually, we report partnerships with one or two key to the main board on total spend by charities, and therefore support fewer the business and the types of activities ad hoc initiatives. For example, in we support worldwide. 2003, Norwich Union in the UK entered a five-year partnership with We calculate our support in line with NCH, the children’s charity to help Business in the Community’s PerCent support, educate and build Standard, which not only seeks to confidence in the UK’s most calculate cash support given by a vulnerable young people. In the USA company, but also that of staff time, and Canada, our Aviva businesses Commercial Union Polska helps to gifts in kind and management costs. In continue their longstanding raise health awareness through its 2003, Aviva was awarded the PerCent partnerships with the United Way support for the prophylactic medical standard 1% certificate in recognition campaign; a charity supporting a examination programme, which of our support during 2002. broad range of charitable causes. enables medical staff to visit rural In 2003, Aviva India focused their communities and smaller towns in support on two key charities, the Poland that otherwise do not have Asharan Hope Foundation, a access to specialist help. children’s orphanage and St Josephs old age home. Aviva Malaysia, together with the Malaysian Foundation for Community In most instances, businesses have a Most Aviva businesses support key Studies and Development, supported committee in place to manage their charities not only financially, but also the Orang Asli (indigenous people) local community programmes, through staff volunteering and rural development programme, which however, for some of our smaller donations of gifts, such as IT aimed to help the local community operations, responsibility for equipment; furniture; company develop sustainable livelihoods and community investment is usually branded materials and in the UK, the improve their standard of living. that of the local CEO. use of office space free of charge.

In the UK, a charities committee, Overleaf are further examples of the together with Norwich Union’s types of support given by the group community sponsorship team, co- worldwide, both financially and ordinates the community programme through staff involvement. for UK businesses. In France an Aviva Foundation manages the business’s support for children and the elderly, whilst Delta Lloyd has a donations

committee which is responsible for Aviva staff help build the multi-purpose hall for the co-ordinating support for a broad Orang Asli community in Malaysia. range of charities. Aviva Australia’s Guiding Star committee co-ordinates support for their six chosen charities. schools. charities, orphanagesandelementary donating oldcomputerstochildren’s support youthdevelopmentby Our businessesworldwidealso underdeveloped partsofTurkey. support theireducationalactivitiesin Foundation forEducationtohelp donating fundstotheTurkish for universitystudents,whilstalso providing tenyear-long scholarships the SocietyVolunteers Foundationby Commercial UnionHayatsupported Polish universities. further research andeducationat scholars todeveloptheirpassionfor scholarships fortalentedyoung programme, aimedatproviding the “Staywithus”scholarship Commercial UnionPolskasupports performance amongyoungpeople. that promotes musicteachingand Music forYouth, thenationalcharity remain oneofthemainsponsors obesity. Thebusinesscontinuesto tackling themajorissueofchildren’s for children todomore sport,whilst aimed atcreating more opportunities TheRightThingCampaign“, ”Do Norwich Unionalsolaunchedthe of thesportatgrassroots level. million isdevotedtothedevelopment sponsorship ofUKAthletics,£4 As partofNorwichUnion’s development Youth educationand Norfolk. including thisgarden makeoveratKing’s Lynn, whilst makingadifference tothecommunity, UK provides opportunitiesforstaff teambuilding Our partnershipwithchildren’s charityNCHinthe providing training. volunteers withorganisationsand company supportsbymatching volunteering scheme,whichthe has alsosetupastaff community initiatives. Commercial UnionPolska to participateinvolunteering enabling employeestotakepaidleave volunteering programmes in2003 Management launchedstaff Aviva AustraliaandMorleyFund activities. improved datagatheringonsuch opportunities around thegroup and both anincrease instaff volunteering figure tobehighernextyeardue across our businesses.We expectthis donated through staff volunteering In 2003,some11,500hourswere which thecompanyfund-matches. giving andfundraisinginitiatives, volunteering, mentoring,payroll initiatives, forexample,staff charitable causesthrough various Our staff are encouragedtosupport Staff involvement on crimeprevention inthecommunity. materials toincrease publicawareness Watch websiteproviding educational develop anationalNeighbourhood technical andfinancialresource to programme. In2003,itprovided the NeighbourhoodWatch Aviva Canada continuestosupport supervision. mainstream societyunderpolice offenders rehabilitate themselvesinto project dedicatedtohelpingyoung supports theRhythmandBlues In TheNetherlands,DeltaLloyd youth crime. find solutionstolocalproblems of youths undertheageof16tohelp young adultswouldworkwithlocal Apprenticeship schemewhereby 2004 bypilotingaYouth looking toextendthisinitiativein cities intheUK.NorwichUnionis management, waspilotedinthree development andproject areas oncommunitysafety, to trainlocalresidents inhighcrime Apprenticeship scheme,whichseeks Norwich UnionNeighbourhood crime inthecommunity. In2003the inhelpingtoreduce Crime Concern Norwich UnionintheUKworkswith Crime prevention support bythecompany. and pound-for-pound matched £200,000 thankstostaff fundraising was chosenandreceived achequefor In 2003,MultipleSclerosis Society employees’ chosencharityoftheyear. fundraising initiativesisthe One oftheUKbusiness’s key staff budget isaimedatstaff matching. £1.3 millioncharitabledonations In theUKforinstance,25%of support theefforts ofemployees. opportunity forthecompanyto Matched fundingisanother donated byemployees. at arateof50centsforeverydollar USA fund-matchesemployeegiving their choice.Inoneinstance,Aviva their salary, before tax,toacharityof employees todonatedirectly from payroll givingschemes,whichenable USA, CanadaandAustraliaoffer Our businessesintheUK,Ireland, and businessplanning. assistance toproject management specialist skillsfrom taxandfinancial in thementoringscheme,providing employees are currently participating businesses. Around 12Aviva to small,ethnicminorityled responsible forsupplyingvolunteers Business Brockerage, anorganisation established apartnershipwithBlack The Aviva headoffice inLondonhas out hisspecificvolunteeringrole. required 80hoursoftrainingtocarry a twoweekperiod.Onemember Olympics World SummerGamesover volunteered atthe11thSpecial staffIn Ireland, 20Hibernian

Aviva plc 23 CSR in practice Total CO2 emissions Environment 160000

120000

80000

40000

0 2000 2001 2002 2003

Staff no. CO2 tonnes CSR in practice 24 The growing focus on the broader Property management Energy and water use CSR programme has not diminished In 2003, NUCS managed the building In October 2003, NUCS signed a two- Aviva plc Aviva the close attention we continue to of three new offices for the UK year contract for fully renewable- pay to our environment programme, business at Monks Cross (York), sourced electricity with zero CO2 which is now entering its seventh Broadlands (Norwich) and Exeter. emissions covering 86% of our year. All of our businesses have From the outset the premises were electricity consumption within the further embedded environmental designed with efficiency in mind and NUCS managed property portfolio in criteria into their activities and this feature sustainable materials such as the UK. This will result in an annual year, particularly in our more mature wall cladding with timber from CO2 emissions reduction of some businesses, we have registered some sustainable sources and aluminium 69%, equivalent to 32,000 CO2 special successes, which are reflected which is recyclable, lighting controls tonnes per annum based on the in the environmental data presented (presence detection) along with low baseline figure of October 2001. in the graphs in this report. energy controls and lamps to reduce Also, 40% of Hibernian’s electricity is This spurt of progress is the result of energy consumption. In Norwich, now generated from zero CO2 initiatives taken over the years and is materials were sourced locally where emissions energy sources. possible to reduce transportation and a testimony to the fact that In Aviva France, a GTC (gestion managed programmes need to be the associated pollution. The building also features a naturally-lit atrium to techniques centralisées) system built and well entrenched before switches off all lights, heating, air- they can be expected to yield the ensure that the interior is light and airy. Also, energy costs are reduced conditioning and ventilation at sort of sound results that come from 8:30pm and during weekends. culture change. through a displacement ventilation system utilising free cooling when All business units have instituted outside temperatures are low enough All this has resulted in some energy savings, including staff (18-20 degrees Celsius). In Exeter, businesses winning awards for their “switch off” campaigns being in solar shading has been implemented environmental efforts and Aviva as a place for 72% of the business, by to reduce the temperature increases group being given an AAA rating in staff numbers. the 2003 Ecovalue 21 report from caused by solar gain in the peak Innovest, a US-based ratings agency. summer months and hence energy Aviva Australia continues to promote used to cool the building. Thermal “computers off when not in use”, a This year we have displayed our key glazing (insulated glass) was also campaign which has been running environmental data in the form of introduced to reduce energy since 2001. Audits have shown that graphs. The Aviva consolidated consumption. The building at Monks the number of computers left on environmental data picture and each Cross in York achieved a “very good” after-hours dropped from 30% to of the sets of data from our business BREEAM rating. under 10% by December 2003. units can be viewed in the full CSR Efforts will continue to reduce this Restructuring of floor space in report on www.aviva.com/csr. down to zero (excluding data Aviva Australia’s Sydney office gathering equipment). The business helped to reduce unused floor has also signed up to the Federal space and enabled half the tenancy Government’s Greenhouse Challenge. to be sub-leased.

Commercial Union Sigorta, the general business in Turkey, has also trialled presence sensor lighting in 2003 and will be rolling this out in 2004. Area and tonnes 100000 120000 140000 20000 40000 60000 80000 exchange exercise are: environmental features ofthis voice anddatanetworks.Some daily basisanddelivernewrobust standardise thesoftware usedona computers torationaliseand were initiatedtoreplace some36,000 In theUKin2003,newITprojects water bottlesformeetings. water bottlingsystemsforre-using office inLondonhavealsoinstalled Fund ManagementandAviva’s head unhygienic plasticbottles.Morley hygiene insteadofemployeesre-using to ensure effective cleaningforgood bottles, whichhaveextrawidenecks provided withAviva-branded water water. Allemployeeshavebeen reduce theconsumption ofbottled osmosis waterfiltrationsystemto Aviva USA haspurchased areverse reduce energyconsumption. members havelefttheoffice, tohelp switch off lightswhenallstaff have instructedsecurityguards to Sigorta andCommercial UnionHayat In Turkey, bothCommercial Union alltheequipmentbeingsetto • theprovider ofthenew • allredundant ITequipmentgoing • Buidings-related energy, CO 0 inactivity tosaveenergy. sleep modeaftertenminutes packaging, and equipment takingbackall supplier to anITequipmentrecycling m² (x10) Property area 2000 2001 (tonnes) CO 2 emissions 2 tonnes andproperty area 022003 2002 (electricity &gas) Total GWh 0 50 100 150 200 250 300 350 400 450

GWh paperless claimsmanagementsystem. technology willhelpachievea system. In2004therollout ofimaging claims are now onthenewe-claims allgeneralinsurance In Hibernian, of 2.6tonnesperyear. 2,000 sheetsperday;theequivalent paper beingusedinthemachinesby hasreduced theamountof in turn for physicalfaxmachinesbyhalf.This server whichhasreduced theneed Aviva France hasinstalledanewfax 3,000 colourcopies. eliminating monthlyprintingofsome newsletter, Aviva Canadahasmoveditsmonthly paper use. around thegroup tocutdownon and reflects concentratedefforts dramatically overtheyearby33% Paper purchased hasreduced Paper use established. departmental websiteshavebeen Payment Advice;e-Bulletinand Kong, e-Performance;e-Medical systems inMalaysiaandHong introducing e-formsande-Leave Hong KongandThailand; system betweenSingapore, Malaysia, business-to-business transaction example; settinguptheGenlink its objectiveofapaperlessoffice for introduce measures tohelpachieve Asian businessesalsocontinueto Aviva namechangein2002.The stabilisation ofoperationtonew year. Thisissignificantlydueto overall paperusageby22%overthe In Asia,ourbusinessesreduced reduce paperconsumption. promote double-sidedprintingto 40%, whilstalsocontinuingto consumption ofrecycled paperby Aviva Spain hasincreased the Grapevine , online, 10000 15000 20000 5000 Tonnes 0 Amount ofpaperandenvelopespurchased theuseofrecycled paperfor • publication CLUB21,aninternal • expansionofelectronic press • consumption, including: initiatives tohelpreduce paper implemented anumberoffurther Commercial UnionPolska Paper purchased(tonnes) 2000 internal copyingpurposes. internal "paperless office" step closertobecominga news andbringingCUPolskaone method ofdeliveringcompany and makingitamore efficient cost, resource andtimesaving available electronically allowing for staff andagents,beingmade news attheclickofabutton. them withup-to-datefinancial Polska staff andagents,providing monitoring servicetoallCU 2001 neoe ucae tne)Staffno. Envelopes purchased(tonnes) 022003 2002 0 20000 40000 60000 80000 Staff

Aviva plc 25 CSR in practice Aviva plc 26 CSR in practice thrown outbycaterers eachday. reduce the amount ofkitchenwaste wormeries. Thesewormswillhelp the award wastheinstallationoftwo recycling initiativestohelpachieve management. Oneoftherecent excellent control ofwaste Gold award inrecognition of won theCorporationofLondon’s In December2003,Aviva headoffice materials throughout itsheadoffice. aluminium cans,glassandorganic implemented recycling ofpaper, Commercial UnionPolskahas Kong Youth HostelsAssociation. associated equipmenttotheHong donated 28computersand reduction activities.During 2003,they the privatesectortoinitiatewaste protection department,encourages Administrative Region’s environmental by theHongKongSpecial reduction activities.Thescheme, run a Wastewi$e logoforitswaste Aviva Hong Konghasbeenawarded groups andstart-upbusinesses. to schools,charities,community donating redundant office equipment not-for-profit socialenterprise 100 desksthrough Green-Works, a Morley alsodisposedofapproximately aluminium canrecycling in2003. with PaperRound,launchedpaperand Morley FundManagement,together Waste management

Tonnes 10000 2500 5000 7500 0 Total waste on previously. This includesorganicandITwaste. have reportedwaste streamswhichtheyhavenotbeenabletoreport NOTE Plasticcuprecycling inthe UKhas • Commercial UnionHayat in • Recyclingoforganicwastehas • Asurprisewasteauditwascarried • Aviva Francearrangedforthe • management practicesin2003: Further examplesofgoodwaste CGU nameandlogo. which recycled materialswiththe One examplewasAviva Canada, occurred insomeofourbusinesses. Further rebranding totheAviva name Council SocialServicesinLondon. company flatstotheWestminster second-hand equipmentfrom ex- Also, Aviva headoffice donated Total waste intonnes 2000 mobile phonesandITequipment. glass, cans,tonercartridges, paper, cardboard, plasticcups, will havefullrecycling facilitiesfor By April2004,afurther25sites been extendedtomore locations. recycling waste. segregated binsforeaseof Turkey hasimplemented organic fertilizer. into Australia. Thewasteisturned been introduced intoAviva recycling protocols. were following thewastepaper that over70%ofheadoffice staff out inAviva Canadawhichfound signs. recycling ofAbeillesalesagency Total waste datahasincreasedthisyearassomebusinesses 2001 in tonnes Total recycledwaste 022003 2002 Staff no. 0 20000 40000 60000 80000

Staff established. businesses become further which shouldreduce again asthese opportunities in IndiaandChina, development ofnewbusiness in airtravel2003.Thisisdue tothe businesses havereported anincrease reduced overtheyear, some Although overallairtravelhas respect ofthenewbuildings. plans havealsobeenintroduced in trips tootheroffices. Green travel intoworkoroneoff business journeys can beusedbystaff forregular based staff carshare schemewhich In theUK,NUCScreated anintranet- to/from workinacar-pool scheme. by RACVforstaff wishingtotravel registrystaff. isprovided Aninternal to initiateacarpoolingschemefor Australia, Aviva teamedupwithRACV help promote responsible travel.In UK haveimplementedinitiativesto Our businessesinAustraliaandthe safety, includingsafecyclingtips. briefings were alsoheldonpersonal and changingfacilities.Police storage racksandimproved shower cycling, byproviding more cycle modes oftraveltowork,forexample more environmentally responsible encouraged employeestoconsider unnecessary travel.Morleyalso encourage employeestoavoid videoconference facilitiesto Fund Managementupgradedits In thefirstquarterof2003,Morley over theyear. the group hasdecreased by17.8% by 20%,whilstcarmileagearound businesses worldwidehasdecreased Total businessmileageforAviva Travel andtransport Kms and staff 100 150 50 0 Total businesskms (million) Car kms 2000 2001 (million) Air kms 022003 2002 (million) Rail kms (x 1000) Staff no. 0 40 4 808 1201 0 0 2 0 Helping to promote CSR leadership

An important element of the Aviva CSR programme consists of playing our part in helping to promote better understanding of the practice of CSR and its relevance to corporate performance. Celebrating the launch of the Aviva Chair from left: Gabriel Hawawini, Dean of INSEAD; Henri-Claude de Bettignies, The Aviva Chaired Professor in Aviva’s chairman gave a major Leadership and Responsibility and Patrick Snowball, speech on CSR (viewable at Group Executive Director, Aviva General Insurance. www.aviva.com/csr) in Gothenburg Helping to promote CSR leadership

in October 2003, whilst opening a 27 new study centre on CSR. CSR issues for the have strong CSR policies, which are fully in alignment with those of Aviva.

The group chief executive, who is financial sector and plc Aviva currently chairman of the Association Aviva’s response The main driver for such structural change in a business must be of British Insurers (ABI), spoke in improved service to our customers February 2004 at an ABI event for Managing structural and we therefore monitor satisfaction analysts on the subject of “CSR and change levels very closely. We are pleased to the Bottom line”, together with the note that, despite the relative infancy chief executive of BT and the Considerable attention has been paid to the so-called practice of of our overseas call centres, our chairman of WH Smith. The ABI will “offshoring”. Relocation, outsourcing monthly checks already reveal follow that event with a project and other forms of industrial change excellent progress. At the same time bringing together financial and CSR have been a factor of industrial life as this investment overseas, it should directors and mainstream and SRI for centuries. While business drivers, not be overlooked that we have also analysts to develop tools to factor such as quality of service and cost invested in new centres in the UK, CSR performance into company containment, should alone determine including the UK’s first ever purpose assessments. where a business is located, the built call centre in Norwich. management of any resultant change Norwich Union Insurance has is a matter of acute CSR significance. endowed a chair this year at INSEAD in Leadership and Responsibility. This The European Commission’s Promoting financial will help promote thought leadership Managing Change Report gives close capability in CSR as well as provide a resource guidance on how such structural Whether a financial product is mis- for the development of our senior change should be managed. It also bought or mis-sold, the negative management. sets out how one should report on impact on consumer trust in the such change. industry and the reputation of The director of CSR was invited to individual organisations is the same. address the CEOs of over 100 French We have followed this guidance Aviva, like any other financial services companies at the Elysee Palace in closely in the recent movement of provider, must therefore do its utmost October at an inaugral meeting of the some operational activities to India, to ensure that its contribution to the French Global Compact signatories. taking great care to look after the equation is above reproach, by being career interests of the UK staff thoroughly open and transparent Aviva has also played a part in a involved. We have taken account of about its products and services. European Commission funded multi- opportunities for local redeployment stakeholder project to develop a view or relocation across our UK Our business reports from around the on the future of CSR reporting within businesses, and have offered support world show just how seriously this subject is being taken. This applies Europe. We have also been invited to for re-skilling and life-long learning. not only in the UK, but also overseas, participate in two further projects, In 2003, 4,500 UK staff vacancies particularly in some of the newer one on human rights and the other were created through natural staff markets, such as those in Eastern on CSR management and turnover. In respect of the 1,200 Europe. There, and in Turkey, where terminology. Such involvements not operational roles created in India last we are the only provider to operate a only permit us to express our year, there were 21 compulsory compliance team, we believe that our opinions, but also to benefit from the redundancies in the UK. striving for the highest standards of views of others in productive debate. transparency will secure both our In India, we have also been rigorous good name and our long-term in our selection of local partners with sustainability as well as protect the reputations as good corporate interests of our customers. citizens. We work only with those who have transparent policies on There is also a need for greater recruitment, progression and financial education and, in the UK, procurement, and who have a Norwich Union has undertaken an demonstrable track record in gender array of initiatives, including the equality and a total absence of following: religious discrimination. Our partners • Norwich Union has been an The value of partnerships enthusiastic participant in the Climate change “Raising Standards” initiative. It 2003 witnessed one of the five At Aviva, we believe in the value of was also one of the first firms to warmest years on record. Extreme be awarded the “Raising building and maintaining long- warm temperatures persisted across Standard” quality mark in standing partnerships with leading continental Europe and numerous October 2001 and successfully organisations committed to reports indicated evidence of renewed its accreditation in developing and shaping the CSR accelerated melting of the Arctic and March 2003. This important agenda. voluntary initiative promotes Antarctic ice sheets. Potential species greater transparency and better extinction and coral bleaching are Aviva is a signatory to the United communications with customers gaining increasing prominence. Nations Global Compact. Many of the and seeks to restore public Newspaper headlines expound that, challenges, which CSR seeks to address confidence in the financial “Climate change over the next 20 are of global complexity and can only

The value of partnerships value The services industry. years could result in a global be effectively addressed at that level. 28 catastrophe costing millions of lives in • Following its activity in equity The United Nations enjoys unparalleled release, it has co-sponsored a wars and natural disasters”, and yet, convening authority and, as the “Global warming will plunge Britain Aviva plc Aviva website to promote the merits of personal initiative of the Secretary- responsible and inexpensive into new ice age ‘within decades’”. General, the Global Compact presents borrowing and lending. This is What does it all mean and how do the best means of addressing CSR part of the government’s strategy we at Aviva approach this vital topic? challenges at an international level. to build a low-cost, safe borrowing culture that is good for Climate change plays an integral part Aviva chairs the forum of UK individuals, good for business and in our suite of businesses, across fund signatories to the Global Compact therefore good for the country as management, life business and general and is committed to doing its best to a whole. insurance. Thermal climatic conditions ensure that the Global Compact are among the environmental factors • Norwich Union is working with successfully reaches its full potential. that have the strongest impact on the Citizenship Foundation on a number of initiatives to support personal well-being and health. The the Citizenship curriculum within intensification of weather extremes schools. The Citizenship and the resulting increase in loss Foundation is an independent potentials present new challenges, not charity working to promote more least for insurers. Our reinsurance effective citizenship through business aims to mitigate the potential education about the law, losses that may result from extreme democracy and society. natural perils. In the UK, Norwich • The company has also provided Union Insurance is currently rolling out One of our key external involvements funding to develop the well publicised Digital Flood has been the FORGE group of insurers comprehensive secondary school Mapping model that will enable us to and banks, which we chair and which material for teachers and pupils implement improved risk selection, risk has been a source of mutual help for its for the Citizenship syllabus and is rating and pricing, and provide members since its inception in 1998. sponsoring the National Youth appropriate insurance to those people With widespread stakeholder Parliament competition. who would ordinarily be refused cover. involvement, it has produced guidance Recent studies performed at the UK on the management and reporting of, Hadley Centre have highlighted the firstly, the environment and, secondly, importance of the contribution of CSR. It is now engaged on its third greenhouse gases to climatic change. project, which is to generate reliable Despite the issues surrounding the CSR key performance indicators for the ratification of the Kyoto Protocol our financial sector and to produce guidance on practices, which will pioneering efforts in reducing CO2 emissions is a great illustration of enhance public trust. Aviva’s concerted efforts to benefit Our allegiance to the United Nations the global environment. Environment Programme Finance Initiative continues. We remain enthusiastic members of the asset management and climate change working groups, as well as of the newly formed sustainability management and reporting forum.

Norwich Union’s digital elevation model overlain on top of an orthorectified radar image of the ground surface. The darker, brown colours represent the higher land. We are proud of our associations with Comment from our insurance premiums related to the Business in the Environment and specific risk of flooding. This solution Business in the Community, both of partners ties corporate responsibility and which have been great sources of help environment and marketplace firmly in defining Aviva’s course in respect of We have invited some of our long- together. It is this kind of thinking, both the environment and CSR standing partners to share their views which goes to the heart of generally. Our involvement with BTCV on the value of partnership with responsible business practice because continues to offer a welcome route for Aviva. it goes to the heart of core business staff engagement, whilst that with and illustrates why Aviva is a Earthwatch provides us both with “Company that Counts”. another route to express our interest in climate change through the award we Patrick Mallon sponsor and with opportunities for Director best practice exchange within CERG Benchmarking and Reporting Comment from our partners (its corporate grouping). Business in the Community 29 Aviva was recognised in the Business Our membership of the Institute of in the Community Corporate Business Ethics (IBE) helps keep us Responsibility Index 2003, as being plc Aviva abreast of latest thinking on the one of the Top 100 Companies that subject and we used the services of Count. Which begs the question – the IBE in the redraft of our standards what are they doing right? They seem of business conduct policy. to do three things really well. Firstly, they have successfully translated Our partnership with WWF has been corporate values and commitments of special value to us over the years, into mainstream management providing us with insightful practice. They are able to measure WWF has been on a journey with perspectives on a range of matters, and report how this actually works in Aviva since 1999, when the Business on the environment and beyond. practice and they can demonstrate Education Unit first started to work that they are taking action to on corporate sustainability issues and Both WWF-UK and Amnesty maximise the positive attributes of share ideas and experience with International Business Group remain what they offer. partners in the private sector. It is a key members of the Aviva CSR two-way relationship which enriches review group and we regard their Let me work through these in turn. both parties. WWF values the input as a vital contribution to the Translating values into mainstream opportunity to give strategic input to annual review of Aviva’s CSR management practice is a major Aviva through its group CSR team, programme and policy review. challenge for all companies. Aviva’s and Aviva’s director of CSR provides success in this seems to be driven in invaluable advice and wise counsel equal measure by example from the through WWF’s Programmes top management team and by Committee. This has included sharing wholesale adoption of codes and experiences of establishing strong and principles that set the tone of effective monitoring and evaluation responsible business behaviour. Aviva’s systems, an issue with which both ongoing challenge will be to maintain corporates and NGOs must wrestle. the high standards they have set. During 2002, Aviva has continued to From my unique outsider perspective be an active participant in the of Aviva, I see a company that has Sustainability Action Network – the spent the past year working hard to business-to-business learning forum consolidate internal data collection convened by WWF. The launch in and management. This should January 2004 of the second WWF enhance the quality of reporting and publication on the business case for ensure the company continues to CSR, “To Whose Profit? (ii): Evolution make progress in its journey for – Building Sustainable Corporate greater accountability and Strategy”, has been a success in no transparency. small measure due to the key contributions of Aviva within the During the past year Norwich Union development and research stages of in the UK has unveiled a really the document. To date there have innovative business solution – they been over 1,100 downloads and 400 have commissioned a digital map of requests for hard copies. The report Britain to identify and understand identifies opportunities for creating flood patterns across the country. Not value and competitive advantage, and only will this create a more accurate draws upon a series of action research way to look at the risk of flooding – it workshops which involved six blue should also mean that customers will, chip companies, as well as input from in time, enjoy more appropriate a range of recognised experts in organisational change, corporate How others view Aviva’s strategy development and financial CSR performance valuation.

WWF is now undertaking a root and For the second consecutive year, branch review of its programmes of Financial support by Aviva for BTCV’s Innovest, a US-based ratings agency, work with business and industry. UK and overseas conservation holiday ranked Aviva first for CSR Aviva’s ongoing support and advice is programme ensures that BTCV can performance among the world’s important during the review and has publish a visually appealing and leading insurers. We also received s CSR performance ’ helped us to maintain momentum. A informative publication to recruit our Innovest’s AAA rating in the Ecovalue recent meeting of CSR managers 4,000 volunteers. 21 report. across various businesses, convened In recent years the relationship with for us by Aviva, has given invaluable Aviva has broadened. Annually, feedback and insight into the How others view Aviva around 40 Aviva staff participate in

30 potential for WWF to add value in conservation holidays and BTCV has this area in the next few years. benefited from advice from Aviva on health and safety issues.

Aviva plc Aviva Andrew Lee Director of Campaigns In 2004, we will explore working WWF together in Eastern European Aviva continues to be the only UK countries where business and insurer in both the Dow Jones environmental issues combine. Sustainability World and STOXX indexes and we are a member of the There is a greater understanding today FTSE4Good index series. Earthwatch is an international that environmental improvements are environmental organisation that closely linked with economic, cultural engages people worldwide in scientific and social issues. Working with Aviva field research and education to heightens BTCV’s profile and promote the understanding and action reputation, particularly within the necessary for a sustainable business community, a key area of environment. Aviva has been a support for BTCV’s charitable aims. member of Earthwatch’s Corporate Environmental Responsibility Group Tom Flood In 2004 we have been ranked top of since 1997, reflecting a long-term Chief Executive our sector and overall 5th in Business commitment and support to BTCV Earthwatch and the environment. in the Community’s CR Index results. This has allowed an extremely valuable We continue to be included in partnership to develop, in which Aviva Business in the Environment’s Index of has been able to inform and guide Corporate Environmental Engagement Earthwatch’s work with the private and this year were placed 1st in our sector, as well as play an important sector and 29th overall. role in its seminars and other events. It has also allowed Earthwatch to In October 2003, Aviva was awarded better understand Aviva’s own Business in the Community’s PerCent contribution towards achieving a Standard certificate in recognition of sustainable environment for all. our community investment worldwide for the previous year. Aviva continues to sponsor the Aviva/Earthwatch Award for Climate Change Research, which recognises and raises awareness of the fact that climate change represents perhaps the most critical threat to biodiversity, as well as to human livelihoods and a healthy and sustainable future for the planet. It also represents one of the most significant environmental risks facing the global insurance sector and is therefore a key issue for Aviva. The award is presented each year to climate change related research being carried out by one of Earthwatch’s leading scientists in the field.

David Hillyard Director of Programme Development Earthwatch Institute (Europe) Assurance Independent review statement Aviva has changed its assurance To the management of Aviva plc practice and provider and is now committed to annual external We have been asked to review Aviva’s “Corporate Social Responsibility (CSR) assurance. The assurance process has Report 2004 – a summary” (the Report) in accordance with the scope of work evolved and for the first time this year described below. Aviva management has prepared the Report and are covers the entire CSR summary responsible for the collection and presentation of information within it. Our report. It is accompanied by local CEO responsibility in performing our work is to Aviva management in accordance sign-off of each business report and with the terms agreed, we do not therefore accept or assume any responsibility of a statement that the CSR policy is for any other purpose or to any other person or organisation. being implemented locally and that implementation will be developed in the coming year. Our scope of work Independent review statement 31 We have undertaken a series of activities to review the progress made in CSR during 2003 in order to provide a basis on which to challenge the Report’s

content. We have completed the following activities: plc Aviva

• Interviewed key management and functional staff identified as having group responsibilities for the CSR programme.

• Interviewed nominated CSR managers from five Aviva businesses to understand the processes for managing and reporting progress on CSR within those businesses.

• Reviewed a selection of group CSR documentation such as: Board reports on CSR, minutes of the CSR review group and CSR steering group meetings, and guidance documents on CSR reporting.

• Reviewed the CSR progress reports received from each of the Aviva businesses covering CSR activities in 2003.

• Tested that data in the Report has been correctly transposed from internal reporting processes.

Our conclusions Based on the scope of work described above, we conclude that:

• The examples used in the Report to illustrate CSR progress within the Aviva businesses have been drawn from the CSR progress reports submitted by each business.

• The data in the Report has been correctly transposed from internal reporting processes.

• The Report’s content is consistent with evidence obtained during the course of our work.

Ernst & Young LLP London, 26th March 2004 Our businesses

The Aviva CSR report is compiled from reports and contributions from our businesses around the world. Primary contributors are:

Stephen Teo and local representatives Aviva Asia Simon Morgan and Robert Gill Aviva Australia

Ron Savoie Aviva Canada

Charles Anderson Aviva COFCO, China Austin Kimm Aviva Czech Republic The Netherlands Belgium Italy Our businesses

32 Hervé Poreaux Aviva France Ireland Germany Julian Wilford and Richard Skelding Aviva Head Office Lithuania Aviva plc Aviva Laszlo Szabo Aviva Hungary UK Poland France Czech Republic Vivek Khanna Aviva India Hungary Spain Romania Riccardo Marrosu Aviva Italy Portugal Turkey Raluca Badulescu Aviva Romania Jorge Martinez Aviva Spain Tom Hart Aviva USA Andrzej Gladysz Commercial Union Polska Renata Stancikaite Commercial Union Lithuania Nihal Turkdonmez Commercial Union Canada Hayat ve Emeklilik, Turkey USA Eda Kalayci Commercial Union Sigorta, Turkey David Brilleslijper Delta Lloyd, The Netherlands, Belgium, Germany Bruno Cavalinhos Eurovida, Portugal Lionel Hogan Hibernian, Ireland Jane Tebbey Morley Fund Management Jane Willetts and Joe Coyne Norwich Union Central Services Nick Pierson Norwich Union China Insurance India Hong Kong David Czerwinski, Andrew Morgan Norwich Union Life Thailand and Emma Bugg Philippines Singapore Malaysia Other significant contributors are: Paul Lumbis Aviva Life International Australia Stephen Pain Group Corporate Affairs, Aviva Hilary Oliver Group HR, Aviva Vinay Mistry Group Re-Insurance, Aviva Tammie Crockford Group Strategy and Development, Aviva Phil Reeves Purchasing, Norwich Union Central Services And our partner organisations and auditors. If you have any comments or queries This document is printed on Revive about this corporate social Silk, containing 75% post consumer responsibility report, please contact: waste and 25% pre consumer waste and virgin fibre, which has been Anthony Sampson bleached by a combination of totally Director of CSR chlorine free and elementally chlorine Aviva plc free processes. St Helen’s 1 Undershaft London EC3P 3DQ United Kingdom

Telephone +44(0)20 7662 2245 Fax +44(0)20 7662 7263 [email protected] www.aviva.com/csr