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					 Aviva plc
 Corporate social responsibility report 2006
 - a summary

 The full report is available at www.aviva.com/csr06




                             Customers
                     Health and safety
                           Community
                                                       Suppliers
Workforce
                                     Human rights
 Environment
    Standards of business conduct




                                                       Moving forward in CSR
        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 plc Corporate social responsibility report 2006
                                                                              1




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




                                   www.aviva.com/csr06
 Aviva plc Corporate social responsibility report 2006
                                                                                                                                    2




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 plc Corporate social responsibility report 2006
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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 plc Corporate social responsibility report 2006
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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 plc Corporate social responsibility report 2006
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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




                                                             www.aviva.com/csr06
 Aviva plc Corporate social responsibility report 2006
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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


Guiding our CSR programme
   Aviva plc Corporate social responsibility report 2006
                                                                                                                                      7




 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 plc Corporate social responsibility report 2006
                                                                                              8




  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




www.aviva.com/csr06
 Aviva plc Corporate social responsibility report 2006
                                                                                                                                         9




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
  •    Our SRI portfolios are
       significantly lower in carbon
       intensity compared to
       mainstream funds
 Aviva plc Corporate social responsibility report 2006
                                                                                                                                   10




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 plc Corporate social responsibility report 2006
                                                                                                                                       11




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 plc Corporate social responsibility report 2006
                                                                                         12




  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



www.aviva.com/csr06
                                                             2 Supporting our local communities
                                                           3 Helping to raise awareness of fraud
 Aviva plc Corporate social responsibility report 2006
                                                                                                                                    13




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 plc Corporate social responsibility report 2006
                                                                                                                                                 14




  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



www.aviva.com/csr06
                                                                                                                         2 Helping at every stage of life
                                                                                                                                TM
                                                                                                                   3 Autograph – the technology that
                                                                                                                          promotes responsible driving
 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 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 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 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 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

75%
over 75% of our businesses
                                                     performance, which benefits us and
                                                     our suppliers.
                                                     Phil Reeves, Director of Purchasing, Norwich Union Professional Services



include CSR aspects in supplier
tendering processes
   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 plc Corporate social responsibility report 2006
                                                                                                                                                               21




       Total C02 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 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

                                                                                                                   Gifts in kind – £125,845




24,000                                                      Cash support – £4,637,000
hours volunteered across the
group during 2005                                                                                  Global community investment
 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.




                                                            www.aviva.com/csr06
  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 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.
       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
                                         anthony.sampson@aviva.com
                                               www.aviva.com/csr




  This document is printed on 9lives 80 which is produced with 80% recovered fibre comprising 10% packaging
waste, 10% best white waste, 60% de-inked waste fibre and 20% virgin TCF fibre sourced from sustainable forests.

                      Photography supplied by Aviva plc and Jonathan Cooke Photography

                                               www.k4creative.com
CorporateRegister.com 17/05/2006

				
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