Aviva CSR Report COVER 21/3/06 11:50 am Page 2
Aviva plc Corporate social responsibility report 2006 - a summary
The full report is available at www.aviva.com/csr06
Customers Health and safety Community Workforce Suppliers Human rights Environment Standards of business conduct
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Aviva, as a member of the international community, recognises its corporate social responsibility commitments in its various roles, which include insurer, investor, employer and consumer.
We reflect these commitments in a Health and safety We recognise that our business family of eight policies, which relate to: We are committed to providing a activities have direct and indirect working environment which is both impacts on the societies in which we Standards of business conduct safe and fit for the intended purpose operate. We endeavour to manage We are committed to ensuring that and ensures that health and safety these in a responsible manner, our business is conducted in all issues are a priority for all business believing that sound and demonstrable respects according to rigorous ethical, operations. performance in relation to corporate professional and legal standards. social responsibility policies and Suppliers practices is a fundamental part Customers We regard suppliers as our partners of business success. We seek to provide our customers and work with them to help us achieve with a service hallmarked by integrity, our policy aspirations in the delivery We are committed to continuous quality and care. of our products and services. improvement in our corporate social responsibility programme and Human rights Community encourage our business partners We respect the Universal Declaration We strive to be a good corporate to strive for matching performance. of Human Rights and seek to be citizen around the world, recognising guided by its provisions in the conduct our responsibility to work in partnership Our business units throughout the world of our business. with the communities in which we are committed to achievement of our operate. policy objectives. Our performance Workforce will be periodically reviewed and We are guided by our aim to be the Environment externally verified to help us meet our employer of choice in all countries We are committed to a programme policy goals. At a local level, the heads in which we operate. of management, continuous of our businesses will review progress improvement and reporting of our at least annually. We will publish direct and indirect impacts, which reports regularly. marks our contribution to improving the world in which we live. Approved by the board of Aviva plc January 2005
Contents
01 Overview 02 Chairman and group chief executive statements 04 Aviva and CSR 06 Governance at group level 07 CSR challenges for Aviva in 2006 08 CSR issues for Aviva Climate change Our customer focus Managing structural change 12 CSR in practice Standards of business conduct Customers Workforce Health and safety Aviva is the world's sixth-largest insurance group and the largest insurance services provider in the UK, Human rights with more than 54,000 employees serving millions of customers. We are one of the leading providers Suppliers of life and pension products in Europe and are actively growing long-term savings businesses in Asian Environment markets, Australia and the USA. Our main activities are long-term savings, fund management and Community general insurance. 23 External engagements 24 Recognition of our performance You can find out more about Aviva plc by visiting our website www.aviva.com 25 Independent assurance statement Aviva_CSR_Report_Final_Artwork 23/3/06 9:16 am Page 1
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Overview This is our fifth corporate social responsibility (CSR) printed summary report, which gives a high level view of our CSR approach, governance and performance in 2005, illustrated with some examples from Aviva businesses worldwide.
Our online CSR report provides full details on our performance in each of the eight elements of CSR as well as separate CSR reports on each of our businesses.
The CSR programme continues to cover all Aviva businesses worldwide. Reporting on the RAC, which we acquired during the course of the last year, will commence in our next report, to be published in 2007.
of Aviva businesses worldwide are covered by the CSR programme
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Chairman and group chief executive
We have established a board committee on CSR to strengthen the understanding and adoption of CSR in the operation of our businesses.
Lord Sharman of Redlynch OBE, Chairman
Chairman’s introduction In the international arena, the borders Foreword by group We believe that there is a natural between the responsibilities of the chief executive relationship between good governance State, the NGO and the business are Our approach to CSR has been simple. – how a company organises and sometimes blurred. Against such a Centrally, we have set policy objectives conducts its internal affairs – and CSR background, it is all the more important and our businesses around the world – how it manages its impacts and that Aviva forms its own clear have identified how best to achieve relationships with stakeholders. In both view of where its obligations them. This ‘organic’, locally-owned cases, integrity is the driving force. The under CSR lie. The committee will approach to our CSR programme is a board recognises that its responsibility therefore also constitute a high level key feature of its success to date. Each is to ensure that this remains the case. group for formulation of policy for year, incrementally, we have moved recommendation to the full board forward. Learnings are exchanged For this reason, we have chosen to on new matters of CSR challenge. between businesses and are carried establish a new committee of the board forward from one year to the next. In specifically to provide stewardship for My predecessor, Pehr Gyllenhammar, this way, we can build on what is good our group-wide CSR performance. provided a firm foundation for CSR and what works. We know we are on This is a natural stage in the evolution within Aviva. I intend to build on a journey and this report outlines the of CSR governance. that foundation and to develop further progress made in that journey over the our understanding and practice. past year and also seeks to anticipate The CSR committee will comprise of the challenges of the future. four non-executive directors, myself and the group chief executive. Its This focus on the future is key to primary task will be to examine the Aviva’s approach. We have defined group’s CSR strategy, policy, plans our core purpose, our reason for being, and progress at a more detailed level as ‘prosperity and peace of mind.’ than can be achieved in a meeting This is what we aim to deliver for any of the full board. It will seek to key stakeholders, most notably our strengthen the understanding and Lord Sharman of Redlynch, OBE customers, as we help them to prepare adoption of CSR in the operation Chairman for a secure financial future. Across of our businesses. While recognising Aviva, we recognise the importance the diversity of our businesses, it will of listening and responding to our encourage and monitor progress customers. Our focus on the future towards Aviva’s common policy is a philosophy we express as Aviva: objectives. Forward thinking.
The group’s individual businesses have The Forward thinking approach many means of access to external embodies a key principle of CSR, opinion on CSR in the countries in which is to take action now to which we operate. These are important safeguard the future. For example, channels of information and constitute climate change is a major uncertainty a valuable corporate radar at an for us all. While the role of science appropriately local level. The new is to analyse and interpret the data, committee will draw on this knowledge a responsible insurer can help society in its direction of the group-wide adapt to the changes and mitigate the programme. risks. Norwich Union’s demonstration house shows what steps people can take to limit the impact of flooding. This practical response to a challenge illustrates our approach to CSR. The test of CSR progress is to be found in the extent to which it is embedded in products and services. Aviva_CSR_Report_Final_Artwork 23/3/06 9:16 am Page 3
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The Aviva Forward thinking approach embodies a key principle of CSR, which is to take action now to safeguard the future.
Richard Harvey, Group Chief Executive
Our subsidiary, Hibernian, is the first Aviva is committed to CSR and I am company in Ireland to use a new convinced of the value it brings to our technology to automate the assessment business and to all its stakeholders. It of flood risk. This permits us to rate reinforces the products we offer to our properties at an individual house level, customers, enhances the performance mirroring the developments already of our staff, promotes social benefits pioneered by Norwich Union in the UK. and delivers value to our shareholders. This example illustrates the exchange of best practice between our businesses.
An example of connecting to local social priorities is given by our subsidiary in Lithuania. There, we Richard Harvey have launched a product which Group Chief Executive enables local companies to offer enhanced employment benefits packages, which will help mitigate the major problem of loss of talented staff through emigration.
Our steady incremental progress is reflected in other ways. Aviva’s global CO2 emissions have reduced over the past year by 7,848 tonnes or by some 11%. Further, local business engagement in CSR continues with Bia Galicia, one of our businesses in Spain, becoming the fifth group company to produce its own CSR report.
Our asset management companies in the UK and the Netherlands offer good examples of responsible investment through active corporate engagement and offering socially responsible investment funds.
Our commitment to help develop understanding, and shape the practice, of CSR globally is evidenced by our continuing commitment to the United Nations Global Compact. Aviva chairs the UK network and our businesses overseas are also active in local networks, where they believe that they can make a contribution. Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 4
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Aviva and CSR
What is CSR? How we practise CSR Elements of CSR do require a business CSR at Aviva means the management From the start, our CSR practice case appraisal of our relations with our customers, has been guided by the following A policy commitment does not mean workforce, suppliers and the community principles. taking action at any cost. It means as well as the management of our doing so at a pace the business can performance in respect of the Aviva pursues CSR goals within absorb. For instance, at the launch environment, human rights, health business goals of our environmental policy in 1998, and safety, all under-pinned by Aviva is a business and we pursue we did not convert overnight to the adherence to rigorous standards our goals to reduce negative impacts use of renewables-sourced electricity, of business conduct. and to promote positive benefits which might have been possible, but at in conjunction with our overriding significant additional cost. However, over The CSR policy contains brief statements business strategy. the past eight years, we have gradually of fuller policies, which can be viewed built up to the point where we do now at www.aviva.com/csr. We play a part in helping to define source 100% of our electricity in the management and reporting practice UK (and 20% in two other businesses) Why CSR is important to Aviva CSR reporting is still a voluntary from renewables. At Aviva, we believe that CSR builds practice. It is also an evolving practice value for the business and all its and we are keen to play a leading part Obligations to shareholders must stakeholders. In particular, we believe in helping to define such practice in our always be assessed that it motivates our staff and that it is sector through the FORGE group and In the practice of CSR, the financial important to growing numbers of our generally through our membership of consequences of any significant action customers and shareholders. We also the Global Compact (see page 23). should be assessed, taken into account believe that you cannot operate within and justified, as with all business a community – be it global or local – Some elements of CSR are above decisions. without taking account of its major business case challenges and playing your part in Some elements of CSR are non- Incremental approach meeting those challenges. negotiable and are not subject to any Aviva has pursued gradual progress in business case appraisal. For instance, CSR at a pace which the businesses can one decides to be ethical or not, absorb. The ability to absorb change regardless of cost. while many other things are going on (which is always the case) is limited.
Each of our businesses differs in size, resource and local circumstance. Accordingly, they move towards common policy objectives at different speeds. Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 5
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Since each of our businesses differs in normal business return criteria - a ‘win Streams of value size, resource and circumstance, we win’ situation. This is achievable in Employees. A strong CSR programme accept that they will move forward products such as AutographTM or Pay as enables existing and possible new towards common policy objectives at you DriveTM, which marry risk reduction employees to identify with what we different speeds. with environmental benefit. It is also stand for as well as with what we offer possible in micro-insurance, which them by way of employment prospects. No group targets extends the benefits of insurance We have group policy objectives, but to the otherwise excluded and brings Investors. Socially responsible do not set group-wide targets, because a sufficient return (see pages 14 & 15). investment is a small but growing of differing local circumstances. For activity. It is important that we appeal instance, common recycling or CO2 Aviva’s CSR programme is geared to to investors across the board. Our reduction targets are not possible achieve policy objectives strong CSR performance has been because of the differences in availability Our approach to CSR has been to set recognised by ratings agencies. of recycling facilities or renewables- policy objectives and to require our sourced electricity. Targets, where businesses, in the light of their differing Customers. Purchasing functions appropriate, are set at business level. size, resource and circumstances, to across the world are beginning to make their own path towards policy factor in CSR performance as one Both indirect and direct CSR impacts achievement. This approach gives of the criteria on which they base must be managed ownership to the businesses. It also their selection of partners. Strong For instance, in respect of CO2 explains the story-like nature of Aviva’s CSR performance enhances our case. reduction, we can take steps to reduce CSR reports. Each year, each business We also believe that some individual our own direct impacts. Indirectly, we is expected to make progress against customers are influenced in their choice can influence the behaviour of others the previous year and to report on it. of provider by CSR performance. through our purchasing and asset management activities and through CSR risk monitoring The enhanced appeal of the company providing products that encourage While the programme is driven by to these three important stakeholders beneficial effects. opportunities identified by the highlights the financial value of businesses, we also monitor and pursuing a strong CSR programme. Aviva seeks to integrate CSR into report on our positioning in respect However, as our Chairman states, products and services of key risks and challenges at group the overriding purpose of CSR is to Products and services can carry a social and at business level. reinforce the integrity of the company. or environmental benefit and also meet
The group CSR team 1 Megan Crockford CSR Assistant 2 Richard Whitaker Group Company Secretary 3 Zelda Bentham Environment Manager 4 Michelle Wolfe CSR Reporting Manager 5 Janneke Dijkstra CSR Communications Manager 6 Anthony Sampson Director of CSR 7 Annette Pendrey CSR Research Manager
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Governance at group level
Board ownership Steering groups CSR review group In January 2006, the Aviva board Aviva has a central CSR steering group, The CSR review group brings together agreed to set up a CSR committee. which meets quarterly to review policy owners, representatives from It is to be chaired by the senior progress, exchange good practice and the group’s businesses and external independent non-executive director, consider response to specific CSR advisers, including our assurers, Wim Dik, and counts the group’s challenges. in a two-day meeting each year Chairman, the CEO and three other to review policy, performance, plans non-executive directors among its We also have a European steering and issues. The June 2006 meeting members. The terms of reference for group, which meets each January. will be attended by the Chairman this committee are available on our It brings together non-UK European of the board’s new CSR committee website. The committee will meet at businesses to review performance, and, as in previous years, by the Aviva least twice a year. Among its functions exchange good practice and consider Chairman. will be the task of reviewing CSR policy local CSR issues. and progress more closely than is CSR governance in the possible at the annual full board In the autumn of 2006, we will hold businesses meeting and also of helping to our first North American steering CSR governance in each of the determine and review Aviva’s position group, which will perform a similar businesses is described in the business on some of the most difficult CSR function for our businesses there. unit reports on the internet. As our challenges. In this respect, it will take businesses vary widely in terms of over the function of the former high- size, structure and, sometimes, level issues group. function, no one structure would fit all circumstances. Each business The appointment of this committee designs its own governance structure will greatly strengthen the involvement to suit circumstance. It is noteworthy of the board in the direction, that two businesses, Norwich Union monitoring and management of the Insurance and Norwich Union Life, CSR programme. have decided to appoint their own full-time CSR managers.
6 CSR board committee members
6 Group CSR team members
23 CSR nominated 1 Central CSR steering managers across the group group worldwide 2 Regional CSR steering groups 9 SRI team members 8 Climate change forum members Numerous committees across the business
40 CSR review group members
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CSR challenges for Aviva in 2006
Each of our businesses focuses on Carbon balancing is a complex field Continued internationalisation challenges, which have particular with various competing approaches of CSR programme relevance in its own marketplace. and we believe that it does need to be CSR concepts and practice are often You can read about these in the carefully researched in order to ensure widely recognised to have originated individual business unit reports on that a methodology or mix of in the UK. However, this has sometimes the internet. At group level, we focus methodologies really does have a led to a predominance of UK-centric on global matters. The principal positive effect, which would not have thinking when we increasingly need challenges for 2006 are: occurred without our intervention. We to hear and take account of non-UK will conduct that research this year. perspectives. Climate change Aviva responds to climate change by Examination of responsibility Our businesses overseas have keeping its own house in order and and disaster response developed their own routes towards seeking to reduce its own CO2 output. Aviva, like many other companies, fulfilment of our CSR policy. These We also encourage others to do the provided matching funds for staff routes reflect local marketplace and same through the influence we exert donations in respect of the Tsunami local priorities. As a global business, through our position as an investor, a appeal. However, we did not provide we will seek to take increasing account purchaser and a provider of products. similar support in respect of other of the views of our overseas businesses Our chief focus is on adaptation and disasters. The differing responses pose and their stakeholders in the future mitigation and our report details the a policy gap, which we believe needs development of our CSR programme. considerable contributions in respect to be explored. The matter raises of both (see page 9). questions such as: We have already made progress in this respect with, for example, the Over the coming year, we will be • Is it appropriate to use shareholders’ establishment of steering groups considering what further steps we funds for response to any such outside the UK. For the future, we are could and should take in respect of catastrophes or emergencies? considering the addition of non-UK climate change. What criteria should apply? experts to Aviva’s external adviser body • Should our responses be limited to in the CSR review group. We will also Carbon balancing those countries where we have continue with our programme of visits This phrase means rendering our businesses and an interest in to overseas businesses to both learn activities – broadly travel and buildings identifying with the local community? from their experience and to provide management – carbon neutral. Some • Is it appropriate for us to provide support. of our businesses have already begun – or to assist staff to provide – any to consider this in respect of their own support on an altruistic basis? operations. Some have already applied If so, under what circumstances? it in respect of certain events and • What support are we able to provide activities. other than financial support?
Among its functions, the CSR board committee will help determine and review Aviva’s position on some of the most difficult CSR challenges. Wim Dik, Senior independent non-executive director, Chairman of the board’s CSR committee www.aviva.com/csr06 Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 8
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CSR issues for Aviva The principal CSR risks and issues for Aviva are identified in a number of ways, involving both our businesses individually and the Aviva head office in conjunction with our various stakeholders, including investors and non-governmental organisations. The different organisations mentioned in our external engagements section (page 23) are particularly important in this connection, as are the regular contacts we have with analysts and researchers for ratings agencies.
In addition, we have recently conducted a detailed assessment of CSR risks for financial services in association with the FORGE group (page 23). On the following pages we comment on the principal risks for Aviva and outline our response.
1 Floodmapping – Playing our part in response to climate change 2 Making customers our advocates 3 Looking after our staff around the world
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Climate change
2005 was another dramatic year in in a range of time horizons. Its primary we support and work with the United terms of climatic events with hurricane focus is on general insurance activity, Nations Environment Programme Katrina alone causing losses in excess but it will in future also cover our other Finance Initiative. of $50bn in the US. Since 1990 we core business activities. have experienced the warmest 15 We also continue to develop products years on record, and the hottest five This forum: and services which provide a positive since 1997. • Brings together those people in Aviva link between climate impact and with expertise in the field of premium paid. The G8 national science academies, insurance and climate change and last year, sent an unprecedented determines how this issue affects our Recent initiatives in this area include our message to global leaders stating their business; Irish business, Hibernian, being the first concerns about the need for action on • Identifies the impacts of climate risks, company to undertake geographical climate change. We, at Aviva, believe and where these affect our customers identification of the areas most likely that man’s influence significantly and our business now and in the to flood in Ireland. This will allow us to contributes to these changes. future and discusses mechanisms offer cover to additional customers in to minimise these impacts; areas currently often uninsurable in Strong progress has been made in the • Develops an ongoing strategy to view of flood risk. This follows the management and reduction of Aviva’s address climate risks and provides a digital flood mapping activity direct environmental impacts through focus for lobbying key stakeholders undertaken by Norwich Union in reduced emissions and business travel via industry bodies (such as the CII, the UK. (see pages 20 & 21). ABI and UNEP). In our UK fund management business, The establishment of the climate The forum has co-ordinated we seek to invest in low carbon change forum at the end of 2004 contributions to the ABI input to the technologies and choose to avoid carbon is another clear sign of the importance UK government’s Stern review of the intensive companies. Our SRI portfolios of this issue for Aviva. The forum Financial Costs of Climate Change and are therefore significantly lower in carbon co-ordinates activity to mitigate the to the steering group on the ABI report intensity compared to mainstream funds impacts of climate change, with on the Financial Risks of Climate – due to under representation of big a focus on initiatives that seek to Change published in 2005. In addition, CO2 emitters and over representation minimise the impacts of weather we continue to lobby governments on of environmental technology and events on our customers and businesses climate-related building and planning renewable energy stocks. issues. Further, at an international level, • We incur tens of millions of pounds of claims per annum from weather based events
• Our experience shows claims costs can be significantly reduced through flood proofing and flood alarm systems
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Our customer focus
Not surprisingly, our research has A number of initiatives have been Making customers our advocates shown that many of our principal CSR undertaken during 2005 to improve at Norwich Union Insurance risks and opportunities revolve around customer service, including introducing In Norwich Union Insurance, we are on different aspects of our relationship a more direct link between performance a determined journey to be recognised with our customers. Treating our and remuneration in terms of fair by customers and non-customers as customers fairly – working to give treatment of customers. a great service provider, with insurance them the best that we can – is a at our core and care in our heart. permanent objective of all our We have also been open and Since 2002, all employees have been businesses. As an illustration, we transparent where we have experienced engaged in the Leadership and Care outline below the approach adopted customer service challenges. One of programme, designed to put customers by two of our biggest businesses these challenges has been with regard first and look through their eyes. For in working to meet this objective. to the service levels we have provided example, customers were consulted to financial advisers and in November when we devised our seven Principles Actions to improve customer our Chief Executive wrote to advisers of Care to help provide great service. service in Norwich Union Life to outline the steps being taken to Norwich Union Life’s key aim address their concerns. This included We have now turned to the harder throughout 2005 has been to new initiatives such as a Protection challenge of creating not just customer understand and respond to its Promise for policyholders, as well satisfaction, but customer advocacy. customers. In September, we as bringing in additional staff to take New tools are being deployed to assist reorganised the Life business to individual ownership of adviser issues. this. A Customer Experience Monitor establish a working structure which enables the business to track customer allowed us to better focus on Norwich Union Life is committed reaction to contacts with us so that our customers and react more to taking a leading approach to we can rapidly put right anything they quickly to meet their needs. protecting our policyholders’ interests. think we are getting wrong. In 2005 we have proactively Customer service remains a topical contracted customers back into the We want to make customers our issue and we undertake regular State Second Pension and have also advocates and we will measure our customer feedback to gain insights engaged with senior stakeholders in success in this on their willingness to into all aspects of our service. This relation to industry activity to address recommend us, renew with us or take enables us to carefully target and the future of pensions in the UK. out additional insurance with us. track improvements.
From 2006, measurements of both customer and employee satisfaction will form part of the annual bonus awards for senior managers. Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 11
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Managing structural change
Structural change is a constant feature Our offshored activities include Offshoring has so far proved a success. of modern business life. One element operational support to our UK and However, we have learnt that the initial of it is offshoring. Canadian processes and customers. notification of certain categories of In addition, we have outsourced some business, such as household claims and Aviva operates in a competitive, global of our IT capability and these IT breakdowns is best taken in the UK market where consumers want – and partners utilise their own IT resources and these cases are handled in the UK, expect – products that deliver value for which are based offshore in India. The in the first instance. money combined with high levels of impact on our UK employees has been service. It is therefore vital that we minimal – we employ almost exactly Another example of significant continually explore opportunities to the same number of people now in structural change in 2005 occurred improve our efficiency while constantly the UK as we did prior to our decision when Norwich Union Insurance looking for ways to improve levels of to offshore. We respect the cultural acquired RAC, the UK’s first vehicle customer service. norms in India. We, for example, do breakdown organisation. Keeping staff not ask our staff to adopt western informed is a vital part of the successful As we move into 2006, offshoring names or identities and we take an management of integration. This was is now a key component of Aviva’s open and honest approach in all our done in a number of different ways: business model. Aviva today has a plans and communications. Staff work a new publication, i-update, was presence in India across Delhi, Pune, eight hour shifts within brand new, introduced to keep staff informed Bangalore, Chennai and Colombo in purpose built call centre premises about progress; a special edition of Sri Lanka, employing a total of around benefiting from leisure facilities. They the company’s DVD-based magazine, 4,500 people. It is envisaged that our receive competitive upper quartile The Mix, was published to introduce total offshore strength will be around packages for India and typical benefits the new management team and set 7,800 people by 2007. Although we include: provident funds with equal out plans for the future; the intranet do not yet own any of our call centres contribution from the employer, free was revamped; managers gave extensive in India, we wish to bring, over time, transport between home and work face-to-face briefings. The success around 80% of our outsourced to cater for shift times, free meals, life of this communications effort was functions in-house. The process of insurance and they are given extensive revealed in surveys: 86% of staff felt doing so will commence this year. training opportunities. informed about the integration and 93% felt positive about it. 86% of UK staff felt informed about the RAC integration and 93% felt positive about it
Offshoring is a key component of Aviva’s business model to help improve efficiency and levels of customer service. Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 12
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CSR in practice The following examples, grouped under the eight elements of CSR, provide illustrations of our progress and highlights of our performance around the group over the past year.
We do not set group-wide targets because our businesses differ in size, resource and the circumstances of their national market. They therefore develop their own separate paths towards achievement of common group policy objectives. This generates a different story in each case.
Only in some cases, such as that of CO2 emissions and other environmental measures and certain markers of workforce and community performance, is it possible to aggregate a report at Aviva group level. We do that where we can.
The real impact of CSR in financial services is to be found in products, services and relations with customers and this is a story, which can only be effectively told at business level.
The examples are drawn from the separate reports provided by all our businesses, which can be viewed on the internet. These reports also include performance data.
1 Managing our environmental impacts 2 Supporting our local communities www.aviva.com/csr06 3 Helping to raise awareness of fraud Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 13
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Standards of business conduct We regard ethical practice as critical to responsible business and we are committed to conducting all aspects of our business according to rigorous ethical, professional and legal standards.
The spirit and guidance of the The Leadership in Action course Electronic monitoring standards of business conduct policy for all Aviva head office employees All Aviva Canada employees are required embody our corporate values of with high management potential to acknowledge online receipt, integrity, performance, progressiveness continues to be successful in raising understanding and acceptance of the and teamwork. The policy must be and embedding the Aviva Values code of conduct, privacy policy and followed by all our staff, in particular through good leadership, focusing employee personal information policy by our senior managers across our specifically on integrity, honesty annually. A similar annual electronic businesses, to set an example for and trust. tracking system is in place in Aviva USA. others to follow. All CEOs around the group must provide annual assurance The reinforcement of the Aviva Values Maintaining registers that the policy is adhered to within takes place via employee awards in In the UK, Norwich Union Professional their business. Compliance with the Aviva India and via employee meetings Services maintains a hospitality register standards is also required as part of in our Spanish businesses. and a register of interest. The registers Aviva’s senior management contract. have also been shared with other Aviva Customer-facing ethical businesses, as an example of good Measures to embed the behaviour practice. standards of business conduct Sales agent training is a focus for many policy of our European emerging market Whistleblowing businesses, including those in the While the majority of requests for Communicating to staff at the Czech Republic, Hungary, Romania, investigations come through the line start of their career with us Poland and Lithuania. In Poland, the management, a 24-hour independently Aviva head office and Norwich Union remuneration of sales agents is not only run telephone fraud reporting service Life communicate the Aviva Values and based on the amount of premiums also operates in all UK business units the standards of business conduct bought but also on the quality and a number of overseas businesses, policy, respectively, to staff via their of service offered to our customers. including our offshored operations. employment contracts. In Romania, Work continues to expand this service where Aviva’s reputation is considered Norwich Union Insurance’s Leadership to more businesses outside the UK. to be one of its most precious assets, and Care programme re-inforces the new insurance agents receive a copy guidance of the Financial Services Action against financial crime of The Agent Code and employees Authority’s Treating Customers Fairly In 2005, Norwich Union Insurance receive the staff handbook. These publications. published a Fraud Report which explain that Aviva is in business for revealed that fraud now costs the UK the long term and that we have Monitoring our standards £16 billion a year and that it has grown values that shall be respected. of business conduct by 15% in the past five years alone. To meet this challenge, we have Communicating to staff during Performance evaluations implemented policies that meet the their careers Behaviour in accordance with the requirements of applicable legislation, Many of our businesses around the Aviva Values is a core component regulatory guidance and industry good group have translated the standards of employee performance evaluations practice regarding fraud management, of business conduct policy into the in Aviva’s head office, Delta Lloyd anti-money laundering and malpractice local language (where appropriate), Group in the Netherlands, Norwich reporting. We have also introduced have tailored it to local needs and have Union Life and Hibernian in Ireland. a single financial crime network across made it available on the local intranet. the group, bringing together expertise on fraud and anti-money laundering. Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 14
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Customers Our overriding goal is to provide prosperity and peace of mind for our customers.
Customers are the life-blood of our Aviva Canada launched a new product Long-term savings business. We consider who they are or to protect customers from the threat of Norwich Union Life not only continues who they might be. We ask for their losing their identity through third party to play a key role in the ongoing opinions. We listen to their views. We fraud. Available as an endorsement on pensions debate in the UK, but it also investigate their current and future homeowner and tenant policies, it will takes action where it can. The business needs. In the light of this continuing help customers regain their identity, is restructuring its pension strategy by research, we modify our products and pay for legal representation and writing all new pension policies under services. reimburse lost wages. a single scheme enabling customers to move seamlessly between products We provide some examples of the Our Polish business won an award and tailor their retirement planning progress our businesses have made for its claims processing and to their own needs. in embedding CSR in products and communication, customer focus, services in our three core business professionalism of staff and Aseval, one of Aviva's bancassurance activities. transparency of conditions. A new operations in Spain, launched an product for small and medium-sized end of year pension campaign with a General insurance businesses launched in 2005 will be difference in 2005. For every customer Products such as Norwich Union modified further in 2006 to include who takes out a Solidarity Pension Insurance’s Pay As You DriveTM and a special price discount for small Plan, regardless of size of the premium Aviva Canada’s AutographTM motor businesses employing disabled people. or transfer amount, Aseval will pay insurance, which promote responsible for one vaccine for a child in Africa driving, continue their success. In Alarmingly, thousands of children under as part of Unicef's child vaccination Canada, over 1,000 drivers are the age of four are killed or injured in health project. participating in the innovative car travel each year. Norwich Union AutographTM programme, resulting Insurance has teamed up with Halfords In India, Aviva continues to build on its in customers achieving discounts to introduce insurance cover to replace partnerships with leading development averaging over 20%. child car seats as part of its Private Car finance institutions across the country. and Just Car insurance. These institutions excel in the provision In the UK, Norwich Union Insurance of micro financial services (i.e. credit, continues to undertake extensive savings and insurance) to the service satisfaction research across all underprivileged sections of the Indian products and elements of the service society. This has caused a multiplier experience. In 2005, sales and service effect in terms of income and asset satisfaction averaged 92% with claims creation and has increased the risk- service averaging 83%. taking capacity of the poor. All these initiatives help to reduce social and economic poverty.
1 Understanding our customers' needs 2 Helping at every stage of life TM 3 Autograph – the technology that www.aviva.com/csr06 promotes responsible driving Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 15
Aviva plc Corporate social responsibility report 2006 15
Aviva Australia introduced two Fund management The fund management of our Dutch initiatives to broaden the accessibility Morley Fund Management continues subsidiary, Delta Lloyd Group, also of its products. It introduced an to build on its experience in the area has an engagement strategy and investment platform, Navigator Access, of responsible investment. The in-house reinforced this by attending 36 annual which allows people to invest in over socially responsible investment (SRI) shareholder meetings of companies in 30 funds with as little as A$3,000 or team engages on behalf of all our which Delta Lloyd has a share of more A$100 a month, enabling a wider mainstream funds, to raise issues than 5%. In 2006, Delta Lloyd Group market to have access to the Navigator of concern with companies, including will begin managing the PandaFonds savings system. It also extended its life environmental liability, corporate in co-operation with WWF and Ethibel. cover to include premiums up to 90 governance and human rights. This investment opportunity will also years of age. The team also has over £800 million generate income for WWF. The business of SRI funds under management. already manages mutual funds for Employee training is also critical in This allows customers the option of sustainable investors (under the Triodos effectively managing our interaction investing in funds that are positively brand) with very strict human rights with our customers. Norwich Union screened and, thereby investing in compliance requirements. Life has established two customer- companies contributing to sustainable focused training courses, Customer development. Morley’s objective for In 2006, Bia Galicia, one of our group Shoes – aimed at getting to the heart 2006 is to reach £1 billion of SRI funds companies in Spain, will investigate of customer’s needs and Insight under management. the establishment of ethical criteria Fundamentals – training employees in the management of pension plans. in creative thinking tools and methods In 2005, Morley’s SRI and corporate for developing innovative new ideas governance teams met with over 400 and products. companies to raise social, environmental or governance concerns. In December Knowing what customers want is 2005, it published its Sustainability essential in enabling Delta Lloyd Group Ratings, rating the FTSE 100 and to tailor its products and services to the Eurotop 50 for the third time. needs of current and future customers. One good method for gaining insight Our SRI team was recognised by a into people's perceptions and changing number of awards, including being needs is to hold periodic group ranked first in the Thomson Extel survey discussions with consumers. Such for the third year running and being 'generation panels', as they are called, chosen as the best SRI provider were organised in the past year for the in the Global Pensions Awards 14-17 age group. In 2006 the 45-55 age in January 2006. group will be put under the microscope. £800 million over £800 million of SRI funds under management Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 16
Aviva plc Corporate social responsibility report 2006 16
Workforce Our overarching aspiration is to be an employer of choice wherever we operate.
We recognise that our success is heavily Dealing with structural change It is our practice to explore all options dependent on the calibre and before any compulsory redundancies motivation of our people. Recruitment are made. Retraining, redeployment, Our aim is to place the best people in early retirement and voluntary Our global people strategy is to: the right roles. The group recruitment redundancies are typical of the policy requires each business to have approaches taken. Where any • Attract and retain top talent while a well structured and fair recruitment redundancies are made, assistance in embodying good corporate policy, which takes account of the local finding a new job is provided in most governance practice; market and legislative framework. of our businesses, whether through • Foster morale in times of radical Developing a flexible and adaptable an external outplacement provider change; workforce is key to meeting the or via internal assistance. • Deliver excellent customer service changing needs of our business. while exploring and implementing Communication and new customer service models; Retention involvement/social dialogue • Invest in the development of our To retain talented people, we need to employees while controlling costs. offer a total ‘package’ which is attractive Communication with our employees and competitive. The group reward is a critical two-way process. It takes a This strategy is implemented in the policy requires our businesses to offer variety of forms – from formal channels businesses by developing local all employees competitive rates of pay. via elected representatives to direct practices and initiatives reflective Incentive packages rewarding discussions between managers and of local culture and business need. individuals for contributing to business their teams. They are also responsible for complying success are established in the majority with local legislation, our values – of our business units. These may take Employee opinion survey performance, progressiveness, the form of cash-based incentive plans 2005 has seen the implementation teamwork and integrity – and the or company shares. In the UK and of the group employee opinion survey, principles of social responsibility. Ireland, they include all employee which seeks our employees’ views on Progress is measured regularly against share ownership plans which encourage a variety of topics/issues worldwide. a broad set of people performance employees to have a stake in the 12 businesses, covering over 41,000 indicators. company. employees, carried out the survey in 2005. All businesses will run the survey Our reporting follows the guidelines of Our global employee opinion survey in 2006 when we will be able to the Managing Change report produced gives us information on what benchmark internally and externally for the European Commission led by employees value and what they and share good practice across the Aviva’s former Chairman, Pehr would like us to improve. group. Following up the 2005 survey Gyllenhammar. It covers: will form a key aspect of our business We track voluntary turnover rates planning for 2006. We will address • Dealing with structural change across the group to monitor our ability issues arising from the survey as part • Communication and to retain employees. of our drive for increased personal and involvement/social dialogue organisational effectiveness, and • Education and training Restructuring increased employee morale and • Diversity (see page 18) 2005 has seen several businesses engagement. We will also be taking • Health and safety (see page 17) undergoing significant restructuring, the survey results into account in including the acquisition and integration determining senior management of the RAC in the UK and the continued bonus payments. offshoring of call centres and finance operations to India and Sri Lanka. Aviva_CSR_Report_Final_Artwork 23/3/06 9:17 am Page 17
Aviva plc Corporate social responsibility report 2006 17
Health and safety At Aviva, we are committed to providing a working environment that is safe for all employees, contractors, customers and members of the public.
Education and training Responsibility for the group health and Promoting healthy lifestyles safety policy and its implementation Occupational health is the main focus During 2005, we have continued to rests with the group human resources of our policy and we recognise that offer our employees opportunities and director, supporting the group chief stress is a potential risk to the health assistance to develop their knowledge, executive who has overall responsibility of our employees. Encouraging them skills and capabilities. Developing skills for health and safety. to focus on a good work/life balance in dealing with customers, increasing is seen as an important way of skills in technical insurance, regulation Implementation is the responsibility managing stress in the workplace and compliance and developing leaders of each business unit’s CEO. Steering and of promoting healthier lifestyles and managers have been areas groups are often set up to oversee and generally. This is supported by of focus for us. support this. As a minimum, we will flexible working arrangements being comply with local health and safety implemented in over 65% of our The Aviva Leadership Academy legislation, but will exceed these businesses, covering over 90% provides development for senior requirements should it be necessary of our workforce. managers across the group. In 2005, to do so, in order to deliver our there were 258 participants from corporate objectives. We also have a role in promoting 18 countries on the programmes. healthy living to our employees. Businesses are also responsible for local To ensure a safe working environment, For example, in 2005 Morley Fund development and training needs. For a group reporting mechanism is in Management ran two healthy living example, Norwich Union Insurance place to identify risks and confirm that days to encourage employees to adopt has continued to work with Raleigh appropriate actions are taken to a healthy lifestyle. In Delta Lloyd, International, a youth development minimise these. During 2005, there a complete set of lifestyle modules charity which facilitates projects in were no reported major breaches of is under development following the remote parts of the world in a unique the group’s health and safety policy. success of those on stopping smoking development opportunity for people and improving fitness. The majority and teams. As fears of a potential bird flu pandemic of our businesses continue to provide grow, Aviva has set up a global group access to, and promote participation of business continuity managers to in, various sporting and recreational monitor and plan for such an event. activities. Our priorities are the safety and well-being of our employees and the We also continue to offer confidential continuity of our business. employee assistance programmes in our major businesses.
1 Providing a safe working environment 2 Encouraging a good work/life balance 41,000 employees covered in group survey www.aviva.com/csr06 Aviva_CSR_Report_Final_Artwork 23/3/06 9:18 am Page 18
Aviva plc Corporate social responsibility report 2006 18
Human rights We observe our human rights policy primarily in our relations with our employees and by influencing the behaviour of others through fund management and purchasing activities. We see products and services too as having influence and implications in respect of human rights.
Our policy objectives are guided by and to help focus the minds of Our approach was awarded the IVCA the principles of the UN Universal pharmaceutical companies on this issue. Clarion Award for best interactive Declaration of Human Rights and the communication and the New York International Labour Organisation’s Please see the customer section for Festivals International Film and Video core labour standards. We are also details of Morley’s and Delta Lloyd’s Awards – gold and grand awards for guided by the human rights principles engagement practices and SRI funds. employee communication and training. of the UN Global Compact. Promoting diversity in the Diversity in Aviva In this section we cover diversity and workforce The group diversity policy requires our fund management activities. Our We believe that by recognising an that equal opportunity is provided to supplier section overleaf includes individual’s abilities and talents and by all people regardless of age, physical details of our purchasing practices in promoting positive attitudes towards ability, sexual orientation, gender, respect of human rights. Our customer diversity, we will enable all our religion and beliefs and ethnicity. section includes examples of products employees to achieve their potential However, a modified approach is reaching and affecting often excluded and deliver the greatest results. required in different countries to communities. take account of their social/cultural Since 2004, a steering group of structures and traditions. For example, Responsible investment executives, led by a member of the in India, in addition to the above, In 2005, Morley Fund Management’s executive committee, has worked with we include mother tongue, family socially responsible investment (SRI) Aviva’s group diversity director background, place of origin and team organised a series of seminars to deepen our understanding of and educational qualifications. for some of the largest companies commitment to diversity. The steering operating in China, to discuss the risks group’s aims are to provide a vision The success of the group's diversity and issues relating to China’s human and leadership; implement and work is reflected in the increasing rights record and how companies can facilitate initiatives; develop and number of senior managers who are operate responsibly and successfully measure metrics to report progress. female: 18%, following an upward within the market. This group was responsible for trend since 2000 when this figure launching the Think Again campaign was 13%. Morley also helped set up the in 2005 which aimed to enhance Pharmaceutical Shareowners Group awareness and understanding of In the UK, a working group has been to raise awareness of the problem diversity and included a brochure, set up to look at the implications of of access to essential medicines, online game, DVD and intranet site. the proposed new legislation on age particularly in developing countries, due to become law in October 2006.
1 Aviva’s Diversity brochure www.aviva.com/csr06 Aviva_CSR_Report_Final_Artwork 23/3/06 9:18 am Page 19
Aviva plc Corporate social responsibility report 2006 19
Suppliers The revision of the group purchasing policy in 2005 has intensified focus on CSR in our purchasing practices.
The policy now states that: Hibernian in Ireland has also participated Supplier payment terms in benchmarking good practice across The standard payment terms for Aviva ‘Aviva takes its responsibilities to its the group. remain at 28 days, however, our employees, customers, shareholders businesses often support local payment and the environment very seriously At the beginning of 2006 over 75% practices, which may differ from the and expects all purchasing activity of the UK Norwich Union Professional group’s standard. Our businesses to actively support the aims of the Services purchasing team attended endeavour to pay invoices on time, group corporate social responsibility a day’s training on CSR. It covered where possible, and Hiberian has been policy of which a key element what CSR means to Aviva, the role praised by its suppliers for fast is responsible purchasing’ individuals can play in securing and payment (average 25 days). Aviva promoting the importance of CSR Hayat in Turkey pay invoices on The policy is being rolled out to all Aviva in our supply chain relationships and average 15 days, which is better than businesses in 2006 together with an the tools available to support them local practice. To support its efforts for implementation guide on day-to-day in this. prompt payment, Commercial Union adherence to the policy. Polska is launching a Database of Responsible supplier Agreements in 2006 to improve In the Netherlands, Delta Lloyd management monitoring of payments. Group’s procurement team has also Including CSR aspects during the developed and implemented its own supplier tendering process and at Morley Fund Management did not CSR code of conduct for suppliers. renewal continues in the majority of achieve its target set for supplier 100% of preferred suppliers signed our businesses. We do this in payments in 2005, although better this by mid-January 2006. questionnaires and by holding performance was achieved than in meetings and reviews to discuss CSR 2004. During 2005, Morley developed a Skills development and transfer commitments and obligations. Human supplier payment software programme, To provide a uniformly high standard rights questions form an integral part of to be released in 2006, to help improve of purchasing throughout Aviva the CSR question set for suppliers. For prompt invoice payment. Together with businesses worldwide, an International example, Norwich Union Professional this new programme and other internal Purchasing Programme has been Services in the UK requests supplier’s processes that are now in place, it is launched to provide support and share stance on the UN Universal Declaration expected that payment of 85-90% good practice. So far, UK experts have of Human Rights and ILO core labour of suppliers’ invoices will be achieved been seconded to the purchasing standards in respect of their own within 28 days of receipt. teams in both France and Canada employees and their suppliers. for one year.
Our purchasing power provides us with opportunities to influence suppliers' CSR performance, which benefits us and our suppliers. 75% Phil Reeves, Director of Purchasing, Norwich Union Professional Services over 75% of our businesses include CSR aspects in supplier tendering processes Aviva_CSR_Report_Final_Artwork 23/3/06 9:18 am Page 20
Aviva plc Corporate social responsibility report 2006 20
Environment Strong progress has been made in the management and reduction of Aviva’s direct environmental impacts.
The potential impacts of climate change We have conducted a biodiversity Paper use are issues we are actively addressing survey on the 40 acre site of our office Paper consumption has reduced at Aviva. We outline below the work in Perth in the UK, as a result of which group-wide by 967 tonnes, an 11% already undertaken to reduce our direct we will be planting additional trees and reduction on the previous year. environmental impacts*. Further details installing roosting boxes for birds and of how we are helping to mitigate and bats and hibernation boxes for insects. While the percentage of paper adapt to the impact of climate change purchased with some recycled content can be found on page 9. Energy use is still low, it increased over the past The consumption of zero emission year by 60%. Aviva Australia introduced Property management electricity in the UK managed property 100% recycled content paper for use Environmental impact reductions portfolio continued in 2005. Further, our in all copiers and printers. The UK are becoming a ‘business as usual’ businesses in both Ireland and the businesses successfully trialled 80% consideration in the building, Czech Republic acquired 20% of their recycled content paper in 2005 and refurbishment and day-to-day electricity from renewable sources. will purchase all copier paper used management of all office locations While CO2 output fell for those that annually from this source in 2006. under our control. reported this data, overall electricity Aviva’s annual report and accounts consumption did increase. We will and annual review for 2005 have been In the UK, the refurbishment of our be seeking to reduce this during 2006. printed on paper with 55% recycled general insurance head office in content paper for the first time. Aviva Norwich continues, and has been Measures employed to reduce electricity Italy also uses recycled paper for its awarded a ‘very good’ rating by consumption across our businesses policy documentation. the British Research Establishment included a mix of the new and the Environmental Assessment Method old: energy awareness campaigns Paper consumption increased in some (BREEAM). Two new buildings will be in Ireland; switching off lights and businesses in 2005. However, for Aviva completed in Norwich in 2006 and computers in Hungary and using Romania this increase reflects increased they have also received that rating. the stairs in Canada; adoption of a sales over the year, which, sometimes, Think Global Act Local environmental unavoidably leads to increased paper Our new head office buildings for awareness campaign in the UK; a consumption. Aviva Hayat in Turkey and Aviva France switch to energy-efficient screens in have been constructed with reduction Spain, the Netherlands and the UK; Businesses continued to try to reduce of environmental impact in mind. the introduction of multi-functional IT paper use. For example, Delta Lloyd Similarly, in 2006, new buildings for equipment in Ireland. Group in the Netherlands reduced Aviva USA and Hibernian’s head its paper consumption in its central office in Ireland will also incorporate printing department by 10%. Similarly, environmental considerations in their Aviva USA achieved a reduction of 17%. construction, fixtures and fittings.
We use 100% renewables-sourced electricity in UK managed properties, and 20% in both Hibernian and Aviva Czech Republic www.aviva.com/csr06 Aviva_CSR_Report_Final_Artwork 23/3/06 9:18 am Page 21
Aviva plc Corporate social responsibility report 2006 21
Total C0 2 emissions Total waste
Staff no.* Total recycled 2000 2000 waste in tonnes C02 tonnes 2001 2001 Total waste in tonnes 2002 2002
2003 2003
2004 2004
2005 2005
0 50000 100000 150000 200000 0 2000 4000 6000 8000 10000
Double-sided printing remains a popular Aviva USA and Aviva France also offer The UK businesses now recycle fifteen means of reducing paper use in our subsidies and additionally provide a different waste streams. The percentage businesses such as those in Hungary, shuttle bus service to and from the of recycled waste now stands at 62%. Poland, the Czech Republic, the train station for their head office Netherlands and Aviva head office. employees. The new head office building in France provides segregated waste In 2005 Aviva USA and Norwich Union Aviva Canada supported Pollution bins, which enables staff to recycle Professional Services introduced electronic Probe’s Clean Air Commute Week, close to 100% of all waste. ‘No-cup’ payslips. During 2006, electronic payslips an initiative to reduce air pollution options on vending machines and will be introduced across the UK by using public transport, carpooling, encouragement of employees to use businesses. Overall, this measure should working from home, switching to mugs also helps to reduce plastic cup reduce paper consumption by over cleaner fuels and maintaining proper waste. 340,000 sheets or 1.67 tonnes per tyre pressure. 355 Aviva employees annum. took part, putting Aviva in 8th place In Turkey, Aviva Sigorta introduced in terms of level of participation. This recycling boxes for paper last year, while Travel and transport support by our employees generated Aviva Hayat, the Life company, recycled Total car business travel has reduced by a total saving of 12 tonnes of pollutants. 26 tonnes of paper. Our subsidiary 22 million kilometres and the combined in Lithuania was able to recycle car fleet has reduced by 679 vehicles. The Delta Lloyd Group operation in the approximately 25% of its paper waste. Hague has joined a city scheme that Aviva Hayat in Turkey changed its fleet lets employees try out scooters free Aviva businesses have won many awards of cars from leaded fuel to unleaded of charge for a month to combat in respect of waste management and and diesel models. These changes were congestion problems. recycling, including gold awards for made in November 2004 and resulted three locations in York and a platinum in a 9% reduction in CO2 emissions Waste management award with special commendation and 19% reduction in total amount Waste management has continued to for the Aviva head office in London of fuel used over the year be a focus for many of the businesses. as well as three gold awards for other Recurring challenges are the lack buildings in London, including Morley’s Aviva Czech Republic reduced business of space in which to store segregated head office. travel by car, thereby achieving a 30% waste in smaller offices and the lack decrease in CO2 emissions. of recycling infrastructure in some of the countries in which we are present. Several businesses including Aviva However, overall good progress has Canada, Aviva Italy and Delta Lloyd been made. Group provide staff with public
transport subsidies for the commute * This currently covers 85% of our business by staff to work. numbers. RAC will be included next year. 11% 62%
reduction in global CO2 of waste is now recycled emissions during 2005 in the UK Aviva_CSR_Report_Final_Artwork 23/3/06 9:18 am Page 22
Aviva plc Corporate social responsibility report 2006 22
Community In 2005, Aviva invested over £5.7 million in community initiatives worldwide.
Aviva measures its community activity Promoting health Disaster relief by using Business in the Community’s and social welfare Across the group, strong support was PerCent Standard which captures Several businesses focus on provision shown for the victims of the Asian giving and support not only in financial of health and social welfare. For tsunami. By matching funds raised by donations, but also in benefits in kind, example, Commercial Union Polska, staff and through salary sacrifices and such as the use of office space free of in partnership with Vita, a lifestyle volunteering, over £700,000 (of which charge, and employee time, through magazine, offered free medical £200,000 came from employees) was volunteering and management time. checks in 10 Polish cities. donated to the relief effort. Aviva USA fund-matched staff donations for the Businesses are responsible for managing Aviva India fundraised for the children victims of Hurricane Katrina. Aviva their local community programmes of Balajothi Trust, a school for children Australia also raised money for the and are committed to supporting their suffering from cerebral palsy. In Pakistan earthquake. communities, as the following examples partnership with FORCE, a local NGO, it illustrate. also launched a rainwater-harvesting Staff involvement and project in Delhi to help residents volunteering Supporting youth combat water shortages in the summer. Staff support ranges from reading and education and development mentoring schemes in Norwich Union By providing the Education Volunteers Community investment Insurance and Morley, to staff in Foundation of Turkey with a mobile in line with core business Commercial Union Lithuania giving classroom, our business in Turkey is In line with Norwich Union’s crime time for after school activities with helping to tackle the education problem prevention aims, it sponsored a security orphaned children. in the country. scheme with the local police in Norwich for homeowners who have been In 2005, Hibernian set up a volunteer Aviva Offshore Services in India helps burgled. It also supported an initiative programme called ‘reaching out to Akanksha run education centres where in Hampshire to help children off the the community’ which enables staff under-privileged children can learn street on Friday nights. to deploy their skills in practical ways. English and mathematics and take part in monthly activities like field trips and Bad driving is still the number one Payroll giving and matched funding sport events. killer of teenagers in Canada. There, by some of our businesses continue Aviva is sponsoring the Ontario Students to encourage staff participation In Hong Kong, Aviva supports Sowers Against Impaired Driving (OSAID) in supporting the community. Action, a charity dedicated to helping organisation, which promotes safer, poor children living in remote regions of more responsible driving among China to obtain an education. young people.
Staff time – £494,000 Management time – £497,000 24,000 Gifts in kind – £125,845 Cash support – £4,637,000 hours volunteered across the group during 2005 Global community investment Aviva_CSR_Report_Final_Artwork 23/3/06 9:18 am Page 23
Aviva plc Corporate social responsibility report 2006 23
External engagements
A key to progress in CSR is working Global Compact Aviva Chair in Leadership and with different partners to mutual Aviva is proud to chair the UK network Responsibility, INSEAD benefit. Over the past year, we have of the United Nations Global Compact. The creation of the Aviva Chair in continued to have fruitful relationships Its members work together to advance November 2004 was a contribution with the United Nations Environment their own understanding and practice to the production and sharing of Programme Finance Initiative, BTCV, in respect of the ten principles of the knowledge on issues of relevance Earthwatch, WWF, Business in the Global Compact and its reporting to society and of interest to Aviva, Community and the Institute of obligations. particularly in its effort to internalise Business Ethics. We have also recently further its responsibility commitment. joined the International Business The Global Compact regards the setting Leaders Forum (IBLF) and the Corporate up of local networks around the world The first output was a research paper Responsibility Group. Our internet as a key step in promoting CSR capacity to answer the question: “Should report provides more information on building to help businesses everywhere Multinational Corporations be all these relationships. In this summary, respond to the ten principles. The UK concerned with the Global Common we provide comment on three external network is assisting the development Good?” Following solid arguments engagements: of networks overseas. Aviva is giving for a positive answer, Henri-Claude de help with the networks in both Bettignies, the Aviva Chair Professor, FORGE Lithuania and Turkey. went further to explore how the Aviva has chaired the FORGE group insurance industry could enhance its of UK-based banks and insurers since The primary goal of the Global Compact contribution to the Global Common 1998. The group has completed four is to enlist the power and engagement Good. With his colleagues, he projects providing guidance on: firstly of the business world in helping to produced a research paper “The environmental and secondly CSR address some of the most pressing Insurance Business and its Image in management and reporting; key challenges for the planet and all Society: Traditional Issues and New CSR performance indicators; social, its inhabitants – challenges, which Challenges” which is an assessment of environmental and ethical information far exceed the capacity of any one the public perception of the insurance to be included in a company’s annual government or business and which business today and of its contribution report and accounts, in line with demand new approaches. to society, suggesting ways to improve the EU Modernisation Directive. As them, along with the challenges on there is no universally practised CSR The United Nations is the only the road. Both projects have been management and reporting system for international organisation capable conducive not only to publications in financial services, we see the continuing of bringing together governments, academic journals, but also in executive work of the FORGE group as a vital business and NGOs to explore and try programmes at INSEAD, a leading torch to light the way forward. out new approaches to old problems. global business school, and with Aviva’s Evidence of our actions to comply with Leadership Academy. our undertakings under the Global Compact can be found in this report in Currently, a study of the effective the sections on standards of business offshoring process in India and conduct, environment, workforce, of its consequences (medium and health and safety and customers. Aviva long term) is near completion, remains firmly committed in its support while an exploration of the of the Global Compact. relationship between risk, leadership and responsibility has begun.
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Aviva plc Corporate social responsibility report 2006 24
Recognition of our performance During the year, our performance in developing and managing our CSR programme was recognised by a range of external parties including indices, ratings agencies and investors.
We are pleased to continue to be the Other rankings include: Triodos Bank in the Netherlands only UK insurer included in both the acknowledged us as the top CSR Dow Jones Sustainability World and • 1st in the global insurance sector performer in our sector out of STOXX indexes. We also continue by Société Générale; 18 global insurance companies. to be a member of the FTSE4Good • 2nd among financial services Index Series. companies and 23rd over all in the The feedback and assessments we new Fortune Global 100TM global received during the year have Following its launch in 2005, in 2006 ranking of companies for CSR consistently placed us either at the top we were listed for the second year in management, as measured by the of or among the top CSR performers the Global 100 Most Sustainable Accountability RatingTM; in the financial services sector. We value Corporations in the World. The ranking • Joint 2nd highest performing these assessments because of the was based on analytical data provided company in our sector by RepuTex, research that underpins them. We are by Innovest Strategic Value Advisors, an Australian ratings agency, in its also convinced that they are gaining an internationally recognised ratings appraisal of 400 entities globally, importance with investors, staff, agency. including 34 companies within the customers and other stakeholders. insurance sector.
There is increasing evidence that investors are using CSR criteria as a factor in making their investment decision.
Charles Barrows, Investor Relations Director, Aviva Aviva_CSR_Report_Final_Artwork 23/3/06 9:18 am Page 25
Aviva plc Corporate social responsibility report 2006 25
Independent assurance statement Aviva is committed to annual external assurance. This year's external review of our CSR report is provided by Ernst & Young. The assurance process covers the entire CSR summary report.
To the management We have completed the following Our conclusions of Aviva plc activities: Based on the scope of work described We have been asked to review Aviva’s above, we conclude that: “2006 Corporate Social Responsibility • Interviewed key management and (CSR) Report – a summary” (the Report) functional staff identified as having • We are not aware of any examples in accordance with the scope of work group responsibilities for the CSR in the Report of CSR activities in the described below. Aviva management programme. Aviva businesses that are not also has prepared the Report and are • Interviewed CSR nominated found within the CSR progress reports responsible for the collection and managers from five Aviva businesses submitted by each business or related presentation of information within it. to understand the processes for correspondence. Our responsibility in performing our managing and reporting progress work is to Aviva management only on CSR within those businesses. • We are not aware of any errors in the in accordance with the scope of work • Interviewed four members of transposition of data from the internal agreed with them. We do not therefore management within Delta Lloyd reporting processes to the Report. accept or assume any responsibility for Group (Netherlands) to understand any other purpose or to any other the processes for managing CSR • We are not aware of any statements person or organisation. within the business, progress made or claims within the Report relating in two policy areas and the processes to CSR activities which are inconsistent Our scope of work for compiling the qualitative with the evidence obtained through Our assurance engagement has been information contained in their CSR our work. planned and performed to obtain a progress report to Aviva for 2005. limited level of assurance in accordance • Reviewed a selection of group CSR with the International Federation of documentation such as: board reports Accountants’ International Standard on CSR, minutes of the CSR review for Assurance Engagements Other group and CSR steering group than Audits or reviews of Historical meetings, and guidance documents Financial Information (ISAE3000). on CSR reporting. Ernst & Young LLP We have undertaken a series of • Reviewed the CSR progress reports London, 17th March 2006 activities to review the progress made received from each of the Aviva in CSR during 2005 in order to provide businesses covering CSR activities a basis on which to challenge the in 2005. Report’s content. • Tested that data in the Report has been correctly transposed from internal reporting processes. Aviva CSR Report COVER 21/3/06 11:50 am Page 1
If you have any comments or queries about this corporate social responsibility report, please contact:
Anthony Sampson Director of CSR Aviva plc, 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
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