We are Aviva - Aviva plc Building our future Corporate responsibility report 2014
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Retirement Investments Insurance Health
We are Aviva
Aviva plc
Building our future
Corporate responsibility report 2014
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
We are Aviva Aviva at a glance Group CEO’s letter Wider context
We are Aviva
This is Aviva’s corporate responsibility report. These stories give some examples of our work in practice About this report
We report on our people and corporate We have structured the report around
the most significant sustainability
responsibility performance in this report, and issues for our business:
in the Strategic Report within our Annual report Street children now • Trust and transparency
& accounts. We also provide regular updates at have visibility at • Responsible investment
www.aviva.com. • Community development
a global level. • Our people
• Environment and climate change
—
Dr Sarah Thomas de Benitez,
Street to School CEO, Consortium for Street Children
Find out more
Acting responsibly over the
See more
on page 10 Strategy
long term means we are here
Our strategy covers projects
and programmes to address
the sustainability issues which
for our customers throughout Delivering for our are most relevant to Aviva.
We update these each year
customers in this
their lives and ensures we way is the best bit
and are currently developing
a new strategy looking
forward to 2020.
make a contribution to of my job.
See more
on page 5
our communities. —
Helen Anderson, Aviva employee A tale of teamwork Our approach
We determine our approach
— See more to corporate responsibility
Scott Wheway, Chairman, on page 11 through research, horizon
scanning, and stakeholder
Governance Committee engagement.
See more
on page 7
My vision is that we
KPIs
are in business to Key Performance Indicators
create legacy. (KPIs) in our report have been
prepared in accordance with
— our reporting criteria and
Mark Wilson, independently assured
by PwC.
Sustainable capital markets Group Chief Executive Officer
See more
See more on page 8
on page 12
Aviva Building our future report 2014 1
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
We are Aviva Aviva at a glance Group CEO’s letter Wider context
Aviva at a glance
Aviva offers a wide range of products
in a simple and convenient way to meet Underwriting Risk management Asset and liability Understanding Big
customers’ insurance, protection, savings Our underwriting and pricing Our scale affords us the management Data and analytics
expertise, coupled with our opportunity to optimally manage
and retirement needs. The diagram to the analytics capability, allow us to risk, pooling different risks,
Customer premiums are invested Big Data enables us to better
by specialist teams to balance support our customers through
right shows how we do this: underwrite risk in a way that maintaining capital strength and investment return with risk and accurate risk assessment and
accurately reflects our customers’ working with the best reinsurance to maintain sufficient funds to to present opportunities to
profiles and is thus more price specialists in the world so that pay claims. Wherever possible customers at every stage of
competitive. customers know we will be there we match liabilities to assets. their lives.
Our wider value contribution when they need us. For example, money received
for annuities is invested in assets
£6.3m
which will continue to pay a
return for the long term, such
as corporate bonds.
Community investment Underpinned by:
Strong brand 300+ year heritage Financial strength Scale and diversity Customer service
32%
Carbon emissions reduction
Enabling sustainable value creation:
We create value for our investors and deliver economic and social benefits for our customers,
employees and society
£400m
Low carbon investment
Customers
Customers benefit from a range of
solutions to meet their needs with
Shareholders
Aviva creates value for shareholders
by returning profits to them in
Employees
Our aim is for employees to work
within a diverse, collaborative and
Society
Aviva plays a significant role in the
community as a major employer,
easy access when and how they the form of dividends, and by customer-focused organisation, exporter, long-term investor, and
want it. Our strong brand and re-investing in our businesses with equal opportunities, fair enabler of economic growth by
500,000
financial strength give customers around the world. reward and encouragement helping people and businesses to
confidence we will pay out in the to achieve their potential. manage risk, as well as via specific
event of a claim. Making sure our investment in the communities in
customers stay with us is important which we operate, such as our
to our long-term success. community funds.
People supported through
our corporate responsibility
programmes
29+ million 11.5% 26,364 £6.3 million
Total community investment
Customers worldwide Total shareholder Employees worldwide
return in 2014
Aviva Building our future report 2014 2
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
We are Aviva Aviva at a glance Group CEO’s letter Wider context
Group CEO’s letter
in the Stonewall ranking of the best UK gay-friendly employers.
1million
It means acting responsibly and sustainably as we build our business
and serve our customers – and striving to ensure society acts responsibly
and sustainably as well. Corporate responsibility is not a nice-to-have for
Aviva. It is deep in the values of everything we do. We are committed
to upholding the ten principles of the UN Global Compact on human Children helped through Street to School
rights, labour, environment and anti-corruption. It is the right thing to
We have achieved great do – and it makes us a better business as well. That’s what this report
18.1p
things, but we can achieve shows – what we’ve done and where we’re going.
a great deal more. That could be our activities as a sustainable business in creating
—
long-term value, our campaigns to make businesses in which we invest
Mark Wilson,
and global financial markets sustainable.
Group Chief Executive Officer Total dividend
It could be our work to tackle climate change. We were the first
insurer to be carbon neutral and are on the CDP’s A List, rated as the
least carbon intensive insurer.
Aviva has served its customers for 319 years, with
our oldest predecessor company, Hand in Hand,
formed in London in 1696. As its emblem, it chose
That could be our investments in education – especially our five year
global Street to School Programme, which has accelerated past our
original goal of investing in the future of 500,000 children, helping more
than 1 million children around the world. That has created a great legacy
– and so too has Street to School’s work on getting street children centre
£24.6bn
Paid in benefits and claims in 2014
the image of a handshake, the symbol of trust stage at the UN, in developing models for education now used by public
£2,173m
and partnership, describing it as “the mark authorities, and helping to change the law in Indonesia so street children
can be registered so they can access healthcare and education.
of contributionship”. Or it could be our Community Fund in Canada, which has helped 91
That image of a handshake could still describe Aviva today. It still community organisations and contributed $4.5 million to local projects
resonates as a symbol of the partnership we have with each one of across Canada. It’s a great model and one we’re looking to replicate Operating profit on an IFRS basis
our 29 million customers. It captures the trust they put in us and our across our markets, with the UK Broker Fund investing £300,000 since
obligation to them, with our relationships often lasting a lifetime. 2010 and the Fund launched by Aviva Poland attracting over one million
They – and our other companies – created a great legacy for us. votes for projects supporting young families.
We are in business to create a legacy of our own, doing the Aviva is a great company which has created value century after century:
right thing for our customers today, building a strong and innovative value for our investors, value in the service we give, and the relationships we
company so we can look after their interests tomorrow, as well as build with our customers and value in the positive impact we have had on
making a positive contribution to society as a whole. society. We have achieved great things – but can achieve a great deal more, A member of A top ten
If the worst happens, we walk hand in hand with them every step building on the legacy of our ancestors – and building a legacy of our own. Stonewall’s insurance
Top 100 company in the
of the way, whether that is getting them back on their feet or into their Employers list FTSE4Good
home, giving them or their loved ones financial security at times of illness or Index
loss. That duty demands that our people must share and live by the same
strong values and work in a culture that provides opportunities to excel and
that respects and prizes diversity. It is simply about doing the right thing. Mark Wilson
We are proud to be a UK Living Wage employer – and to be 15th Group Chief Executive Officer
Aviva Building our future report 2014 3
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
We are Aviva Aviva at a glance Group CEO’s letter Wider context
Wider context
We have identified long-term ‘horizons’ that will impact our industry over the
next few years. These will provide both opportunities and challenges for Aviva.
Customers Digital Markets Other market trends
My life, my way The age of disruption Older and healthier Climate Regulation
Customers will be much New agile competitors will The emergence of a generation There is growing evidence that a The insurance sector is being held to
more in control, expecting to act faster to disrupt our aged 50 plus who will live gradual long-term change in the increasingly high standards of conduct
self-serve and self-solve. They established businesses. longer and who are healthier. Earth’s weather patterns and average by regulators. For Aviva, these
will want to be able to access Markets will be driven temperatures is occurring due to expectations are consistent with the
data and insight, and use it Read about trust increasingly by this group’s man-made causes. An increase in customer relationships we wish to
to guide their own decisions. and transparency attitudes and needs. extreme weather events and other achieve through our customer thesis.
on pages 13-14
impacts will have a significant effect on Aviva is also impacted by market-
Read about customer Read about Dementia both society and the insurance sector. specific legislation. Recent examples
communication Winning through data Friends on page 15 For Aviva, as some risks change, include the upheaval in the annuity
on page 13 Those who interpret data quickly more complex risk management will market in the UK and the transfer of
and intuitively to inform the be required and greater losses could much of the pensions market to the
The power of
communities
development of products and
services that provide real value
From 8% to 19% be incurred. For society, the need to
prepare for the future will grow. Aviva
state in Poland over the last few years.
% of population aged 65+
The economic power of for customers will lead the way. from 2015 to 2050 will continue to help people respond Read about capital market
governments will have declined (Aviva’s market average) to the challenges that climate change advocacy on pages 12 and 22
further and the power of Growth in will bring.
‘communities’ of mutual connected objects Shifting wealth
interests, both virtual Some 30 billion objects may be Developing markets will have a Read about low-carbon economy
and local, will have increased. connected to the Internet of much larger share of the world’s investment on pages 17 and 22
Things by 2020 savings and assets pool. Faster
growing, developing markets Read about resilient
30 communities on page 17
provide opportunities for Aviva
25 26-30bn to help new customers to
objects
20
accumulate assets and to protect
themselves and their families 2014
against unforeseen events. Was the hottest year on record globally
15
and saw significant flooding hit the UK
10 ~15-20% and other parts of the world
7-10bn growth
5 objects annually
0 2013 2020
Source: McKinsey Global Institute
Aviva Building our future report 2014 4
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Our approach – Our approach – Going forward
strategy engagement
Our approach:
Strategy
Our corporate responsibility (CR) strategy is Corporate responsibility People Responsible investment
underpinned by Aviva’s purpose and values. p13 p19 p21
Trust and transparency Achievement Investing responsibly for the long-term
It sets out our approach to the environment and Strengthening Aviva’s ethical practice Recognising exceptional performance and interests of our business and customers.
climate change, sustainable and transparent and reputation, clearly demonstrating rewarding outcomes; providing clarity and We play an active role in working to improve
our sustainability. enabling accountability through the way responsible investment practices, which
business practices, and community development. we structure the organisation and the way includes our sustainable capital markets
Community development we operate. campaign. We engage with companies in
During 2014, we engaged with our stakeholders on Acting responsibly in our communities, which we invest to improve their approach to
extending our positive impact through Potential environmental, social and governance issues.
the way we run our business. In 2015, we will launch expertise and partnership. Inspiring our people to dream more,
our new strategy, in which we will respond to the Environment and climate change
learn more, do more and become more;
recognising that our performance is
evolving needs of our people, customers, Managing our environmental risks and improved by embracing people who think
helping customers to adapt to climate
shareholders and employees. change. We work with policy makers
and act differently.
and other stakeholders to tackle climate Collaboration
change and encourage people to make Inviting challenge and asking fierce questions
sustainable choices. with the right intent; winning together by
readily adopting good ideas from others;
enabling transparent and engaging
Engaging with our stakeholders conversations; ensuring our office space
and IT encourage teamwork.
Reviewing our strategy,
programmes and insight, and
selecting our material issues
I want my pension to help create
Focusing on our most material the world I want to retire into.
issues and setting a road map —
for action Aviva customer
Aviva Building our future report 2014 5
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Our approach – Our approach – Our approach –
strategy engagement key issues
Our approach: Aviva have said that they
Stakeholder engagement are open to the idea of
surveying customers’ views
on environmental, social
and governance issues – the
results of which could help
inform their investment and
engagement decisions.
We firmly believe that the best corporate —
Sophie McNab, ShareAction
responsibility strategies are developed in
consultation with stakeholders.
Why dialogue with our stakeholders
is important to us
Our stakeholders include a wide range of businesses,
organisations and individuals with an interest in what we do, Stakeholders Key issues Engagement
and how we do it. We engage with each group in a different Customers Treating our customers fairly and providing the Customer surveys, NPS survey, consumer research and financial
way and this helps us manage risk, as well as maximise potential and consumers products and services they need. education programmes.
opportunities. This year we have consulted our stakeholders Employees Listening to and respecting our employees, and Global employee survey, employee forums and networks,
widely to feed into the development of our 2015-2020 strategy. recognising their contributions as individuals. grievance mechanisms and performance reviews.
We consulted our people on the issues they considered
important to Aviva, and we contacted peers in other Communities Demonstrating that we are responsible corporate Share best practice and help develop solutions to social and
and NGOs citizens, capable of delivering real value to environmental challenges such as flooding.
organisations and key NGO groups to understand their communities and responding to communities in need.
perspectives. We asked our customers from the UK and
international markets to give their input too. Shareholders Operating transparently and regularly engaging with Alongside regular investor events, we liaise with bodies such as
The results of these engagements have helped us to lay the and investors investors to ensure we are an investment of choice. asset managers, ratings agencies and benchmarking providers
about our CR programme.
foundation for our strategy to respond to the evolving needs
of our stakeholders and our business. Business Ensuring we are always a partner of choice. As well as operating a Supplier Code of Behaviour, we also assess
partners potential partners on their ethical and environmental policies.
Governments Offering constructive solutions in the many debates Our public policy team aims to help shape the policy environment
85% 800
and regulators around insurance, pensions and responsible, long-term in which Aviva operates for the benefit of our customers, the
investment. Company and society.
Companies in Being a profitable and responsible investor. By engaging with the companies in which we invest, we aim
which we invest to help improve their environmental, social and governance
Response rate to Employees consulted performance.
employee voice of on CR strategy
Aviva survey
Aviva Building our future report 2014 6
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Our approach – Our approach – Our approach –
strategy engagement key issues
Our approach:
Selecting key issues
Stakeholders
feedback Horizon scanning
on CR report Review of current
Stakeholder feedback and emerging issues
on our approach affecting our
is welcomed business
We review our strategy each year to ensure
that we are focusing on the issues most likely
to affect Aviva’s sustainability. This iterative External
process allows our research, engagement and Stakeholder
benchmarking
feedback to contribute to the development engagement
and analysis
of the strategy. Further understanding
Gaining feedback
on our strategy
External Research and of the materiality
Reviewing our issues and programmes annually from analysts and analysis discussion of issues with our
Our key issues are those topics with the potential to have a major stakeholders
impact on our business, stakeholders and society. At Aviva, they benchmarks
cover trust and transparency; environment and climate change;
our people; community development and responsible investment.
Strategy
They help to focus our People thesis and corporate responsibility development and
strategy, and structure our engagement with stakeholders. engagement
That’s why each year, after discussions with our stakeholders,
we review how we are reacting to these issues and,
Strategy
where necessary, adjust and refresh our related strategies Board level development
and programmes. review Integrating the
Senior executives understanding of
input to the our material issues
process into the CR
Internal strategy
engagement
Listen to and
involve employees
in the process
Aviva Building our future report 2014 7
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Performance data
2014 83,924
We use Key Performance Indicators (KPIs) to help us monitor
2013
2012
2011
105,317
112,763
156,383
32%
Reduction of CO2e
and report our progress year on year against specific targets CO2e emissions (tonnes) emissions relative
and baselines. They cover those issues that are most important – absolute to our 2010 baseline
to us and our stakeholders.
Key indicators
Indicator 2011 2012 2013 2014 2014 Change Met 2015 Notes
target target target
Trust and transparency
A % of employees who confirm that they have read, 89% 88% 95% 96% 100% 1% N 100% Business ethics: All employees are required to complete
understood, and accepted the Business Ethics Code annually; annual training of the Code except in France where the
and all employees in Aviva France who are obliged to comply Code is included as part of their employment contracts.
with the Business Ethics Code as a term of their employment While our target remains at 100% it is inevitable that
not all employees will be able to sign the Code each
year due to maternity leave, sick leave, etc.
% of businesses that are in or above the upper quartile relative to 42% 25% 33% 50% Improve past 17% Y Improve past Customers: The percentage figures from previous years
the local market average (NPS score) performance performance have been restated to provide a like for like comparison.
Therefore, the restated figures are based on those
markets within which Aviva has continued to operate
from 2011, which are: UK, Ireland, Canada, France, Italy,
Spain, Poland, Lithuania, Singapore, China and India.
Environment and climate change
A % of CO2e emissions offset annually 100% 100% 100% 100% Offset 100% = Y Offset 100% CO2e The CO2e emissions baseline and annual absolute
CO2e emissions emissions at Group level CO2e emissions have been restated. We removed the
at Group level previously reported UK outsourced data centre emissions
from our footprint due to data integrity issues.
A % reduction of CO2e emissions relative to our New New New 32% 20% N/A Y
KPI KPI KPI Absolute CO2e data – CO2e data includes emissions
2010 baseline
from our buildings, business travel, water and waste
156,383 112,763 105,317 83,924 Reduce relative (20)% Y to landfill.
A CO2e emissions (tonnes) – absolute
CO2e emissions Relative CO2e data – The relative comparison uses the
A CO2e emissions (tonnes) – relative N/A N/A 87,669 83,924 by 5% (4)% N Reduce relative 2014 basis for reporting (as above), and the adjusted
CO2e by 5% relative data for 2013 encompassing structural changes
that occurred in 2013.
A Water consumption (m³) – absolute 509,657 529,960 459,634 468,097 Reduce by 4% 2% N Reduce by 4%
Our 2010 baseline, which we use to understand our
A Waste generated (tonnes) – absolute 8,645 11,468 11,481 9,255 Reduce by 4% (19)% Y Reduce by 4% progress on a long-term basis is 123,512 tCO2e. We
have exceeded our long-term CO2e reduction target
of 20% by 2020, from the restated baseline.
A Denotes that this KPI has been assured by PricewaterhouseCoopers LLP.
Read more on the next page
Aviva Building our future report 2014 8
Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Performance data
2014
1million
£6.3m
2013 £6.2m
2012 £11.0m
2011 £12.4m Children helped through
Street to School
Community investment
Key indicators
Indicator 2011 2012 2013 2014 2014 Change Met 2015 Notes
target target target
People
A % of women in senior management 20% 22% 21% 21% N/A N/A N/A N/A People: The data reflected here are from our annual
(including subsidiary boards) employee survey. The survey provider changed for 2014
to Karian and Box. The only 2015 target relates to our
% of employees who feel Aviva is a place where people from 78% 76% 75% 76% *Improve from 1% Y N/A engagement index due to a review of our KPIs while
diverse backgrounds can succeed previous year the strategy evolves.
% of employees who rate us favourably on engagement index 68% 68% 56% 65% *Improve from 9% Y Improve from previous *Due to the change in supplier and the benchmark
previous year year availability, we changed target to ‘Improve from
previous year’.
Suppliers
A % of managed supply that has agreed to the 31% 30% 28% 43% Increase 15% Y Increase scope/% Suppliers: The scope of “managed supply” included in
Supplier Code of Behaviour scope/% from from previous year the indicator has grown this year from UK only in 2012
previous year to all Aviva businesses that are operating the shared
service model. This is a population of 256 suppliers
A % of managed supply that has been engaged New 71% 63% 83% Increase scope/ 20% Y Increase scope/% (some of which adopted the model in H2 2014).
on CR during the term of their contract with Aviva KPI % from previous from previous year
year
Community development
A Amount of community investment £12.4m £11m £6.2m £6.3m Maintain 1.6% Y Maintain or improve
or improve investment
investment
% of employees participating in volunteering 20% 18% 27% 23% Increase % (4)% N Increase % of employees
of employees volunteering
volunteering
Number of employee hours spent volunteering 60,390 56,357 41,223 40,220 Increase (2.4)% N Increase volunteering
volunteering hours Beneficiaries of CR programmes: This includes the
hours number of children benefited by our Street to School
programme as well as beneficiaries from carbon
Total beneficiaries of corporate responsibility programmes New New New 511,629 N/A – – Increase number offset projects and various other community projects
KPI KPI KPI of beneficiaries supported by Aviva.
A Denotes that this KPI has been assured by PricewaterhouseCoopers LLP.
Aviva Building our future report 2014 9Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Sustainable capital
Street to School A tale of teamwork markets
A champion and catalyst for
change for street children The UN Committee on
A brighter future for street children
the Rights of the Child
Through our Street to School programme we have been
championing the rights of street children. We believe
decision catapults street
that education is insurance for a brighter future which
is why we started Street to School five years ago, with
children from a
the goal of supporting 500,000 street-connected
children globally into education. backwater issue to
Making great progress visibility at global level.
We are very proud of what Street to School has —
achieved – working with our partners to help more
than one million children around the world. We have Dr Sarah Thomas de Benitez,
also moved from being a champion of street-connected CEO, CSC.
children’s rights to being a catalyst for change. We have
for example seen the issue of street children’s rights
move to the centre stage of policy at UN level. In 2014,
the UN Committee on the Rights of the Child agreed
to publish a General Comment on street children.
This means governments will be given the guidance
necessary to develop policies supporting street children
and will be required to demonstrate their progress.
Helping in many different ways
Our partners have provided a range of support through
In 2014, we won the European Street to School, from offering immediate assistance to
Digital Impact Silver Award for runaways to providing education outreach programmes
in schools. Aviva employees have given or fundraised
our digital campaign promoting over £1.6million themselves and carried out over 95,000
the International Day for hours of volunteering during the five-year programme.
With many of the partnerships coming to an end this
Street Children. year, we want to continue to create legacy. To this end,
we will continue to work on the UN General Comment
and with some partnerships in Asia.
See other stories online:
www.aviva.com/corporate-responsibility
Read more about Street to School:
www.aviva.com/streettoschool
Aviva Building our future report 2014 10Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
A tale of Sustainable capital
Street to School teamwork markets
A tale of top teamwork on Teapot Island
Rescuing a labour of love We’re now looking to offer this technique to
Teapot Island in Kent, England, is home to the other customers. We also helped the Blazyes
second biggest collection of teapots in the world be better prepared in future, for example with
– almost 7,000. It’s not only a successful family- water-resistant tables and chairs for the café,
run business but also a labour of love for the which are slightly more expensive but which
owners Keith and Sue Blazye. So, last winter when could save money in the long run.
severe flooding struck, we were quick to step in. Our approach made a great deal of
commercial sense too, as the final cost of
the claim was around half the initial estimate.
Working together for a quicker,
better result Adapting to customers’ needs
We worked very closely with Mr and Mrs Blazye
Mr and Mrs Blazye were due to go on holiday
every step of the way as they made their claim.
in January, but their travel insurance normally
We listened carefully to their needs – their priority
only covered cancellation up to seven days after
was to get the business back up and running by
flooding. So we worked with our travel insurance
Easter, in time for the new tourist season. The initial
partner Cega to flex our cover to enable the
estimate was that the recovery would take a year,
Blazyes to claim for the cancellation. As a result,
but by combining true customer commitment with
they were covered for their cancelled holiday –
an innovative approach to the repairs we were able
and the commercial property claim cost less
to get it all done faster, allowing the Blazyes to open
than would otherwise have been the case.
their doors at Easter. We bought in a drying
Being flexible worked well for everybody and
3
specialist, who developed a different and innovative
we’ve since revised our travel policy accordingly.
way for our consultant, Belfor, to complete the
repairs – a forced drying technique which was not See other stories online:
only quicker but also more sustainable. We didn’t www.aviva.com/corporate-responsibility
have to replace the tiles and plaster, reducing waste Months to get
For further information on this story, Teapot Island back
and using less energy. see our Annual report and accounts, page 30
up and running
This was one of the most unusual and complex claims I’ve
worked on – but also one of the most gratifying. Delivering
for our customers in this way is the best bit of my job.
80%
of waste from our
insurance claims
— process is recycled
Helen Anderson, Case Manager, Technical Claims Services.
Aviva Building our future report 2014 11Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Sustainable capital
Street to school A tale of teamwork markets
My vision is that we will be
Setting out the roadmap for
sustainable capital markets £56bn 10%
In losses to the global More profitability is
regarded as good ancestors Tackling imperfect capital markets
economy from natural
catastrophes and
seen by companies
who publish absolute
by future generations. We operate in imperfect capital markets, which often tend
towards short-term, less sustainable investment and decision
man-made disasters
in first half of 2013
emissions targets,
than those with
— making. To take a lead in this issue, in June 2014, we hosted intensity targets or
no targets at all
Mark Wilson, Aviva CEO the UN Principles of Sustainable Insurance event for insurers,
investors, regulators and UN agencies. At the event we
launched our Roadmap for Sustainable Capital Markets which
sets out concrete recommendations to enhance the
sustainability of our capital markets.
Setting out the path to sustainability
We believe that the capital markets are of relevance to
sustainable development policy makers for three distinct
but related reasons:
1. As a way of raising capital to enhance government
spending on sustainable development projects;
2. As a target for systemic change to integrate sustainability
at each stage. Financial influence can enhance or
undermine long-term sustainable development goals; and
3. As an ownership mechanism for influencing corporate
practices that policy makers can seek to harness to improve
the sustainability practices of existing listed companies.
Moreover, sustainable development goals have the
potential to unleash a wave of growth-creating
investments. Changing the policy framework can
fundamentally change the playing field for all companies.
Policy makers should integrate sustainable development
issues into capital market policymaking. Some of this will
require government intervention. Elsewhere, a more
light-touch approach will be required to help shift culture
towards the long term.
See other stories online:
www.aviva.com/corporate-responsibility
Download our roadmap for sustainable capital markets
report: www.aviva.com/research-and-discussion/roadmap-
sustainable-capital-markets/
*All facts from A Roadmap for Sustainable Capital Markets.
Aviva Building our future report 2014 12Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Trust and Community Environment and Responsible
Our people
transparency development climate change investment
Trust and transparency
Trust and transparency are crucial to the What we are doing
sustainability of our business. We seek to Building trust with our customers
earn trust in the way we act and communicate. Trust is fundamental to growing our business – our research shows that
Our Business Ethics Code is at the heart of how people who trust us are more likely to consider buying from us and to
recommend us to friends and family.
we operate as a business.
To help our customers feel confident about what they are buying,
we aim to make our products, services and communications clear.
We also aim to understand our customers and deliver products and
solutions that suit them.
In the last year, we have simplified our product literature and letters Case study
Why trust and transparency matters to us
to customers. We have set up Customer Experience Boards in each of our
businesses who will be accountable for customer-led improvements. Increasing awareness
We are committed to building trust and transparency in our
business and industry. We want all our stakeholders – our
We also regularly monitor and audit our conduct to make sure customers are
getting what they expect and our products are delivering as we intended.
of breast cancer
customers, employees, suppliers, investors, the communities in To understand our customers needs and what they think of our
The earlier the better
which we live and work – to understand and support what we do products and services we carry out a twice yearly Net Promoter Score®
Raising awareness and giving people the right
and the difference we make in the world. We recognise there is (NPS) survey. This year we saw our best NPS results to date, with half of advice early on is an important way of helping
room to improve on current levels of trust in the insurance sector. our markets performing ahead of the market average. Consumers tell us, to improve health and prevent illness, such as
Following the financial crisis in 2008, our industry continues to in almost half of our markets, that we are a company they can rely on. breast cancer.
score poorly across various trust surveys. To increase trust, we need Practical help and advice
Acting ethically
to keep our promises and act responsibly and ethically every day. In Italy we’ve been working with LILT, an Italian
We abide by a clear Business Ethics Code. We ask all employees and cancer charity and our partner of five years, to give
We need to report clearly on our business.
contractors to accept the Code each year. In 2014, 96% signed it across practical advice on breast cancer to our employees,
Our purpose is to free people from fear of uncertainty. We
our markets. At Aviva in France, employees are required to abide by the our agents’ customers and the general public.
focus on helping people protect themselves and prepare for the
Code as part of their employment contract. This year we arranged a week of preventative
future. Being clear about how we can help and what we offer examinations with oncologists in our office and
is a critical part of this commitment. So is keeping things as Our Business Ethics Code: supported LILT’s mobile unit in Milan. We released
straightforward and user friendly for our customers as possible. • Fair business practices with all our customers, employees and suppliers advice from doctors through videos and organised
• Respecting confidential information events. Our partnership with LILT supports the
• Obeying the rule of law launch of ‘Viva le Donne’ a new offer aimed at
83%
2014 50% women to extend health, home and car protection.
• Accurate and honest reporting to our stakeholders From July to November over 7,300 employees
2013 33% • Respecting the environment and communities in which we work and customers had been reached through our
2012 25% partnership with LILT.
Being clear in our reporting
of Aviva’s ‘managed We are committed to reporting clearly and informatively. We are a
7,300
2011 42%
suppliers, actively member of the International Integrated Reporting Council (IIRC)
engaged in CR % businesses performing Working Group, which helps organisations tell a complete and holistic
ahead of markets average story of their business. Employees and customers reached
Net Promoter Score®
See other stories online:
www.aviva.com/corporate-responsibility
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Aviva Building our future report 2014 13Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Trust and Community Environment and Responsible
Our people
transparency development climate change investment
Trust and transparency continued
We also actively advocate responsible practices across our industry.
How we are performing Case study
Through our work on sustainable capital markets we are seeking
government support to raise the quality of information companies
provide to their investors on sustainability issues.
We are committed to monitoring and improving levels
of trust and transparency across our business.
Being there for
Contributing to public policy our customers
96% 50%
We seek to contribute to public policy debates that support our
customers, business and wider society. We have been registered In 2014 several communities on the UK’s Somerset
on the European Commission’s Transparency Register since 2009. Levels were devastated by severe flooding.
Employees have read, Markets ahead of average We worked with our claims handling specialists
understood and accepted the Asprea to help communities recover as quickly as
Fighting financial crime NPS Score® possible. Customers in each area were given a
Business Ethics Code in 2014
We take a zero tolerance approach to financial crime. To fight it we technical consultant as a main point of contact for
have brought together experts on fraud management, anti-money help and advice. In Moorland and Fordgate, one
laundering and malpractice reporting across our global business. See more consultant, Gavin Scaife, worked hard to support
Our people regularly receive training on how to spot and on pages 8-9 20 customers as well as the wider community.
One of the flooded buildings was the village
fight financial fraud, and we run a global reporting service that allows hall itself, which was very important to the
employees to report malpractice in complete confidence. All cases community. We worked closely with the
reported are referred for independent investigation. In 2014, 39 cases Somerset County Council to get the village hall
were received, 33 reached conclusion and 6 cases remain under back up and running quickly, and were delighted
Where next?
1st
investigation. to hand back the village hall to the community
We are looking at how best to further with a celebration.
Respecting human rights embed business ethics across Aviva.
“You have been a rock for myself and my
We aim to make respecting human rights a core part of our Company’s We are also continuing to work on family during this traumatic time. I can’t
decision-making process. To this end, we have aligned our policies and UK insurer to publish making human rights a core part of our thank you enough for being there for us
practices with several key global principles, including the UN Universal customer claim reviews business culture, our procedures and the when it mattered most and guiding us
Declaration of Human Rights and the International Labour way we operate. through our claim.”
Organization’s (ILO) core labour standards. Our new strategy will align to our true Julia Simms, Aviva customer
In 2013 we refreshed our work around human rights in line with customer composite aims. Building
5
the UN Guiding Principles for Business and Human Rights. We have customer trust is core to us delivering this
identified that our most material human rights relate to five key part of the strategic anchor. Customer
stakeholder groups: employees, customers, investors, communities insight told us that clarity on pricing and
and supply chain. In 2014 we also led the development of a benchmark cover is of prime importance when they
Star defacto rating for
to assess human rights performance across all companies. Read more car, home and medical consider product purchase.
in our responsible investment section. insurance “We understand that the claims
process is an important part of many
Embedding responsibility across our supply chain customers’ experience with us and
We take a thorough approach to embedding corporate responsibility that’s why we publish reviews, both
throughout our procurement and supply chain. We have corporate good and bad, on our website so
responsibility clauses within supply chain contracts and assess our major that people can make informed
suppliers against their corporate responsibility activities. We also have decisions.” Heather Smith, UK
a supplier code of behaviour, setting expectations on environmental Marketing Director – direct insurance. See other stories online:
and social practice for example. www.aviva.com/corporate-responsibility
Aviva Building our future report 2014 14Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Trust and Community Environment and Responsible
Our people
transparency development climate change investment
Community development
As a long-term business we look to the future and What we are doing
constantly think about the wider impact and legacy Working as a team
of our actions in society. We are committed to Our society faces complex problems that no one organisation can solve.
supporting the communities we belong to and rely We see the benefit of listening, learning and collaborating across our
own and wider sectors, in our partnerships with charities, governments
on to run a successful business. We draw on our core
and other organisations.
strengths and capabilities and work in partnership
to tackle the issues that matter to us all. Partnership for maximum effect
Drawing on our particular strengths and know-how, we focus our
partnerships and activities for maximum effect. We have partnered with Case study
Oxfam 365 to help provide round-the-clock global disaster response.
Oxfam 365 specialise in the provision of water and access to sanitation Caring more for
and health (WASH) to help prevent further threats to affected
communities. Our proactive investment, informed by our own our customers
experience of dealing with customer claims, has enabled Oxfam to be
ready at a moment’s notice – where taking care of the immediate Reducing fear of uncertainty
Why community development matters to us human needs is vital. This partnership, providing over £1million since Across the business we are always looking for
We have a long heritage of social action throughout our history. 2006, has been a natural complement to the rapid round-the-clock ways to ensure that we reduce fear of uncertainty
We are a business that has always been there for our customers for our customers and to tackle their most
support we deliver to our customers as part of our core insurance pressing needs.
at vital moments in their lives and also for those most in need, business and service.
from victims of natural disasters to street children. Going forward, we will focus on helping communities prepare for Assisting dementia sufferers
Our community development strategy builds on our purpose, In May 2014, we signed up to the Dementia
the impact of natural disasters. This investment pays dividends – every Friendly Financial Services Charter. Since then
to free people from fear of uncertainty, and our values that focus £1 invested in reducing the risk of disasters saves £4 in emergency we have been exploring ways to assist dementia
us all on four key positive actions: to care more, to kill complexity, response and reconstruction, according to the British Red Cross. sufferers and their families.
to never rest and to create legacy.
Providing help where it’s needed most Providing friendly understanding
We work to extend the positive social impacts of our core and support
business to the wider community – helping communities to Through our life insurance business we have a great deal of experience We have been working with the Alzheimer’s
understand and tackle the decisions and risks they face, building in providing help to people in extremely difficult and stressful situations. Society to get their online Dementia Friends
capability and resilience, and using our expertise and insights We have looked to make more of this capability for communities by course built into our learning management
to make a lasting difference. partnering with Grief Encounter, an organisation that specialises in system so that our employees can become a
bereavement counselling for children. We have teamed up with the Dementia Friend. This means learning a little bit
bereavement specialists to fund family days and other counselling about what it’s like to live with dementia and
500k
2014 £6.3m turning that understanding into action.
services for children and families affected by a bereavement. Grief
Encounter also provides ongoing training to Aviva claims handlers
700
2013 £6.2m
who are speaking to people that have lost a loved one. We look
2012 £11.0m
forward to continuing this partnership next year. C
Total beneficiaries of 2011 £12.4m Employees completed
corporate responsibility Dementia Friends course
programmes in 2014 Total community investment
See more details online: See other stories online:
www.aviva.com/corporate-responsibility/ www.aviva.com/corporate-responsibility
community-development/ Read more on next page
Aviva Building our future report 2014 15Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Trust and Community Environment and Responsible
Our people
transparency development climate change investment
Community development continued
In India, we are providing much-needed micro life insurance for rural
How we are performing Case study
families on low incomes. Covering hundreds of thousands of lives, we
ensure that, for example, if the worst does happen a child won’t have
to give up school to start working.
We are committed to measuring and reporting on our
performance and in particular on the impact of our work.
Increasing access
Investing in local communities
We publish data in accordance with the London Benchmarking
Group’s guidelines on community investment reporting.
to insurance
Since its launch in 2009, to the end of 2014, the Aviva Community
Fund (ACF) in Canada has helped 91 community organisations and “Being able to volunteer and give something back to the community Helping low-income households
contributed $4,500,000 CDN to local community projects. Building on is a really important part of why I’m proud to work for Aviva.” Low-income households can find it difficult to
Aviva employee access the insurance and other financial services
this success, we are now looking at how best to roll out the Fund to they need. Fewer than half of low-income
other countries. Poland launched in 2014 with over 1 million votes cast households have contents insurance while a third
by customers for potential beneficiaries. We are delighted to launch the
UK Fund in 2015 along with additional funds in Europe and Asia. 94%
Employees who volunteer
1 million
Number of street children helped
take out loans to replace items. This compounds
the risk of indebtedness.
Making protection easily accessible and
Skills based volunteering report increased morale through Street to School affordable
We encourage our employees to get involved by giving them three To help, we have worked with social landlords
days’ paid leave a year to volunteer in the community. Increasingly the and broker partners for over 20 years to provide
emphasis is on skills-based volunteering, to maximise the long-term See more tenants with easily accessible and affordable
impact and benefit for the community, and give development on pages 8-9 home contents insurance. This unique product
opportunities to people within Aviva. That way, everyone gains. was created in response to an under-insured area
of the community and Aviva is now one of the
largest providers of accessible contents insurance
“I look after 18 young people aged 6-8 in Beaver Scouts. Where next? for social tenants.
I have learnt so much in being a leader, my confidence has Looking ahead, we are going to continue our advocacy work for street
children and key Street to School projects in Asia. We aim to ensure that Increasing awareness and advocacy
grown, especially when I need to talk in front of people.” In 2014, we supported research to again highlight
Aviva volunteer the momentum we have helped to build will be sustained. We will also the lack of insurance protection taken up by
support the development of the UN General Comment on street social renters.
children, which will ensure governments receive specialised guidance to We also sponsored events with All Party
40,220
help children in street situations.
£1.5m
Parliamentary Groups to increase awareness
We continue to develop our support for people to build their financial and advocacy.
understanding, such as the Aviva Tackling Numbers programme in the “A shining example for the wider private
UK. This rugby themed programme for school children is delivered online financial sector to emulate. I put their success
Total charity contribution Number of hours spent and by the 12 Premiership Rugby clubs across England, integrating down to four things: strong leadership,
from employees and volunteering interactive classroom maths with practical, number-based rugby games. effective team work, integrity and vision.”
Anne Feeney, Former DWP Strategic Financial
customers We will be a founding partner of a new initiative which will aim to
Inclusion Champion
bring the UN’s Sustainable Development Goals to every person around
the world in 2015. These UN Goals aim to end extreme poverty and
£6.3m
Total community investment
arrest the problems caused by climate change.
Above all we will look for the most effective ways to extend how we
can help build resilience across communities. We want to be proactive
and farsighted as we help people through key life events both
individually and as a strong community.
See other stories online:
www.socialpublishingproject.com/2014-
in 2014
survey-report.html
Aviva Building our future report 2014 16Introduction and Strategy and Performance Big stories Performance Governance
Assurance
wider context approach data of 2014 by key issue and risk
Trust and Community Environment and Responsible
Our people
transparency development climate change investment
Environment and climate change
We are committed to making a positive impact on What we are doing
the environment. We do this through the support Making the most of our core strengths
and resilience we give our customers, through our Our focus on mitigating and building resilience to the effects of
work to minimise our own impacts, through our climate change extends to working with other like-minded businesses
and policy makers to understand future implications and to develop
investment in the low-carbon economy, and through
society’s response.
our leading role in advocating change beyond our Our advocacy in this area is underpinned by our ability to translate
business and out in the wider world. the science of climate change into a risk landscape and to help our
customers understand and protect themselves against these risks. Case study
We also play a strong role in promoting low-carbon technologies
and invest in the infrastructure that is needed to fight climate change. Collaboration
Responding to extreme weather following the fallout
Our customers around the world face increasingly volatile and extreme
weather, creating ever greater uncertainty and risks to their safety from severe weather
and property.
Why environment and climate change matter to us In the UK, we are working with the government and others in the In 2013, Canada suffered two 1:100 flood events.
Helping our customers prepare for future events is at the core of our industry on Flood Re, a joint initiative to provide affordable insurance We helped 3,976 customers who were impacted.
business. As a forward-thinking insurer we provide for the effects for customers in high-risk flood areas. Following that, we re-housed 1,300 families who
of climate change by adapting current products and services and were made homeless in a polar vortex which
creating new ones to meet the challenge. We also seek to help Developing green products impacted North America last winter.
With the Insurance Bureau of Canada at the
manage the risks of climate change, like extreme weather events, We continue to progress our development of green products and
helm the industry is making progress on this issue,
for our customers, business and the wider world. services, handling claims in ever more sustainable ways. For example, including assessments of flood mapping, better
We are committed to reducing our own carbon emissions we respond to 1,100 fire claims each year in the UK. Where possible, exposure analysis and more dialogue with all levels
and to using our purchasing power through our supply chain to we now aim to clean and deodorise items impacted by fire on site rather of government.
influence our suppliers. We also influence the companies we invest than removing them and potentially replacing them, which means fewer The accelerated pace of change driven
in to reduce their environmental impact. In addition, we use our goods go to waste and transport costs are kept down. We are looking by technology is changing the way we help
relationships with our customers to help everyone understand the to roll out these UK-based carbon reducing claims handling initiatives customers mitigate risk and better prepare
them for emerging risks.
risks and build resilience to the impacts of climate change. to other countries.
Engaging with customers around green investment
80%
Through our relationship with ShareAction we were able to invite a
2014 83,924
number of our customers to talk to us about their concerns around
2013 105,317
climate change issues, such as the carbon intensity of investments in
2012 112,763 their pensions. As a mainstream investor with over 3,000 different funds
Waste from our 2011 156,383 available, our approach is to offer our customers the full range of options
claims process in the including ethical investment choices. The meeting gave us some
UK is recycled CO2e emissions (tonnes)
interesting ideas to take forward to help address the concerns of our
absolute
customers, including one we met who said she wanted her pension to
help create the world she wants to retire into. See other stories online:
www.aviva.com/corporate-responsibility
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Aviva Building our future report 2014 17You can also read
