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Highlights Strategy and approach Performance by key issue Governance Defying Uncertainty Corporate Responsibility Summary 2017
Highlights Strategy and approach Performance by key issue Governance
Highlights Strategy and approach Performance by key issue Governance Our 2017 reporting
2 Introduction 5 Our sustainable business 8 Doing the right thing for our 13 Good governance This is a summary of our responsible and sustainable business
strategy customers strategy. Links to other issue-specific reports can be found
3 2017 in brief 14 Tackling the big issues
6 Our commitment to the UN throughout this document, and you can read more on our website
9 Strengthening communities together
4 Introductory Q&A Sustainable Development and in our 2017 Strategic Report.
Goals 10 Our people READ OUR 2017 READ OUR 2017 ESG
7 Delivering sustainable finance 11 Climate risk and environmental ANNUAL REPORT DATA SHEET
to support the UN Sustainable impacts
READ OUR 2017 KPIs AND READ OUR MODERN
Development Goals
12 Responsible investment ASSURANCE STATEMENT SLAVERY ACT STATEMENT
FIND OUT MORE AT
AVIVA.COM/CR
Responsible and sustainable business strategy
Our sustainable business strategy is focused on Defying Uncertainty
by using bright ideas to tackle the important issues of our time for
our customers, our communities and our world in a number of areas.
Protecting Helping you Championing
the people and live well responsible
things you love for longer investment
Find out more Find out more Find out more
page 8 page 9 page 12
Strengthening Acting Challenging
your local now for how our
community tomorrow industry works
Find out more Find out more Find out more
page 9 page 11 page 7
Our purpose in action
The future can be uncertain. No-one knows what’s
Underpinned by our Business Strategy round the corner – whether it’s a broken boiler, an
unplanned stay in hospital, starting a family, or what
Our strategic framework focuses on the things that really matter and your retirement has in store.
puts the customer at the heart of everything we do. It provides clear Our purpose is to help our 33 million customers defy
direction across all our markets for how we run our business. uncertainty and look to the future with confidence,
through every twist and turn of their lives. We offer
a wide range of insurance and savings products to help
True Digital Not people protect what’s important to them and save for
Customer First Everywhere a bright future.
Composite
Highlights Strategy and approach Performance by key issue Governance
Highlights 2017 in brief
2017 in brief Climate risk and
environmental impact
We were awarded the UN Momentum for Change
award in recognition of a decade of work reducing
our environmental impact and we’re helping inspire
action on climate change.
Our plans for 2018
Increase
the impact of the Aviva
Community Fund across the world
and continue with our aim to support
2.5 million beneficiaries through our
community activities by 2020.
Find out more page 10
Build
on the success of our existing
Percentage reduction of CO2e emissions customer propositions, developing
UN Sustainable Strengthening relative to our 2010 baseline products and services that help our
Development Goals communities
Supported the aims of the UN Sustainable
Development Goals, focusing our efforts on those
which align most closely to our strategic priorities,
The Aviva Community Fund supported
community projects in 10 of our markets globally
and we continued our strategic partnership with
53% (2016: 46%)
customers Defy Uncertainty in
increasingly sustainable ways.
Support
the British Red Cross
in order to make the biggest impact. the British Red Cross. Plus, our carbon offsetting Community Reserve Volunteer
programme has helped over one million people programme, creating a network
Find out more page 6 since 2012. Responsible of 10,000 people to support
Find out more page 9 investment communities in times of crisis.
In 2017 we launched investor guidance on
Continue
to roll out our climate change
Sustainable finance Number of community projects corporate culture, antibiotic resistance investment strategy with additional
supported globally and sustainable fisheries, and also won divestments made to further align to
2,400
We’ve led the establishment of the World
Benchmarking Alliance. It will create public, a Responsible Investor Award 2017 for a two degree world and continue
innovation and industry leadership. progress towards our long-term
transparent and authoritative league tables of (2016: 1,600)
companies’ contribution to the UN Sustainable Find out more page 12 operational CO2e reduction target of
Development Goals. Read more about the World
Benchmarking Alliance here
70% by 2030.
Percentage of company Continue
our work to trace customers
Find out more page 7 meetings (AGMs and EGMs)
Our people at which Aviva Investors voted
who we have lost touch with and
reunite them with their funds.
Doing the right thing
We’ve continued to build a culture which
attracts and retains talent for the future.
We launched a market-leading Equal
91.5% (2016: 91.8%)
C
ontinue to develop our leaders
across Aviva to create greater
for our customers Parental Leave policy in the UK, Ireland, innovation, agility and accountability
France, Singapore and Canada, to help and build a culture where we consider
We’re creating products to help our 33 million build a diverse and inclusive workforce.
customers look to the future with confidence. our customers in every decision and
We paid out £34.6 billion in claims in 2017 worldwide. Find out more page 10 Human rights always try to do the right thing.
Our approach to modern slavery is part of our overall Develop
an inclusive workforce
Find out more page 8 Percentage of our people who feel that approach to human rights. Our 2017 statement sets
those from diverse backgrounds can out the steps we have taken to prevent modern
that reflects the diversity of our
Number of products with socially succeed at Aviva slavery from taking place in our business and supply customers and is fit for the future.
inclusive considerations
84%
chain. Read our Modern Slavery Act statement here Press
on with advocating for policy
32 (2016: 17)
(2016: 87%) Find out more page 12 change to make global capital
markets more sustainable.
Aviva plc Corporate Responsibility Summary 2017 3
Highlights Strategy and approach Performance by key issue Governance
Highlights Introductory Q&A
Why is a robust and integrated What is the focus for 2018?
Q Q
responsible and sustainable business
approach important to Aviva? We have many plans for the year ahead,
KC
In order to accelerate our business we but our main focus is driving growth for the
KC
want to create value in the long-term. business, through innovative practices that truly
Our responsible and sustainable business strategy change our communities, the environment and
is vital in delivering this aim. That starts with our industry for the better. This is, of course, easy to
practicing good governance. It’s also about say but harder to deliver – but driven by our strong
making a positive difference to communities and purpose and values, we are clear on our strategy
the environment, as well as helping our industry for achieving success.
work better for everyone by promoting sustainable
finance practices. By doing so, we’re clearly aligned
with our company values to care more, never rest
and create a legacy that lasts.
How is it helping to deliver our strategy? Kirstine Cooper
Q Group General Counsel and Company Secretary
To ensure we achieve sustainable growth,
KC Aviva Group Executive Committee Member
we need ‘digital first’, innovative ideas
that will help to solve some of the big societal responsible for CR and sustainability
and environmental issues of our time, like ageing
populations and climate change. Our corporate
responsibility approach helps create an environment Awards
where our people feel empowered to help solve
these important challenges. Whether through In 2017, our global award wins included:
Living out our purpose
investing in entrepreneurs that are focused on UN Momentum for Change Lighthouse Award.
positive societal and environmental change, or Responsible Investor Award 2017 for Innovation
creating products and services that really get to the and Industry Leadership.
to Defy Uncertainty
heart of our customers’ needs, we’re making great
Business Charity Awards: Corporate Social
strides in achieving this.
Responsibility Team of the Year.
What element of Aviva’s approach are Business Charity Awards: Best Charity
Q Partnership, Insurance Sector: Aviva with
you most proud of?
With a clear purpose to Defy Uncertainty, we are using Our work with the Red Cross around the world the British Red Cross.
KC
our bright ideas to help tackle some of the most important is something I’m particularly proud of. We’re Corp Comms Awards: CSR strategy of the year.
now two years into our strategic partnership with
social and environmental challenges of our time, for the good the British Red Cross, and this year our work in the UK
Corporate and Financial Awards:
of our customers, our communities and the world. Best CR/ESG reporting.
has included helping those impacted by the Grenfell
Tower fires, and the terror attacks in Manchester
and London. We also funded four new Red Cross
community resilience projects across the world, and
continue to see communities benefit hugely from
local partnerships with the Canadian and Singapore
Red Cross. I’m always delighted to hear how our
partnerships with these renowned organisations
are making a real difference to people’s lives.
Aviva plc Corporate Responsibility Summary 2017 4
Highlights Strategy and approach Performance by key issue Governance
Strategy and approach Our sustainable business strategy
Our sustainable business strategy
Engaging stakeholders The big challenges Our approach Defy Uncertainty
Our approach is rooted in what matters From this stakeholder engagement we How can Aviva help? We have many To Defy Uncertainty, we use bright
to our wider range of stakeholders. identified the following challenges: different products that can support ideas to tackle the important issues
We started by speaking to our our customers and communities to of our time for our customers, our
customers, employees and external face these big challenges, and we communities and the world.
experts to understand the big use our values to guide us.
challenges facing them and the
wider world. We engaged with: For our world: Today
Climate Ageing Care more Kill complexity
Protecting the people
and things you love
Strengthening your
local community
change population We are all about our We make things simple
The economic loss in US dollars By 2050, the global population customers, our communities for our customers Your future
caused by global natural disasters of older people is expected and each other
Customers Employees in 2017 was $330 billion. to more than double.
Source: Munich Re, catastrophe Source: United Nations World
losses, January 2018 population prospects, 2017 revision
Peers NGOs From our customers:
Governments Investors Impact Helping you live Acting now
well for longer for tomorrow
Our industry
I really felt like my hand was being held. Higher Low Never rest Create legacy
Aviva changed our lives and made this expectations trust We’re driven to think We strive to create
process much more tolerable – I’ve just 38% say they only buy products Only 52% of the general public
bigger and better a positive legacy by
been able to focus on getting well. being good ancestors
and services that appeal to trust businesses.
Critical illness customer their beliefs, values or ideals Source: Edelman Trust Index, 2018
(up 5% since 2011). Championing responsible Challenging how
Source: GfK Consumer Life Survey investment our industry works
2011/2017
Aviva plc Corporate Responsibility Summary 2017 5
Highlights Strategy and approach Performance by key issue Governance
Strategy and approach Our commitment to the UN Sustainable Development Goals
Our commitment The role we play Our UN Sustainable Development
We believe all companies have a responsibility to help Goals focus
achieve the aims of the United Nations Sustainable The UN Sustainable Development Goals can guide
to the UN Sustainable
Development Goals. By working alongside us, our customers, and society towards a brighter,
governments, civil society and individuals, we look to sustainable future.
play our part in helping to end poverty, protect the We support all the UN Sustainable Development
Development Goals
planet, and ensure prosperity for all. Goals, but we focus our efforts on those which align
closely with our strategic priorities. That’s where we
can have the biggest impact.
Impact of the issue
Impact we can have on our business Aviva strategic
on the goal (materiality) priority Examples of action
1. No poverty
Ensure healthy lives and promote hrough Aviva Ventures, we’re helping to invest in
T
well-being for all – at all ages start-ups like Owlstone Medical, who are pioneers
of early cancer detection technology.
2. Ending hunger
Our employee programme, Wellbeing@Aviva, offers
our employees a range of products, advice and support
3. Health and well-being to stay healthy.
Aviva’s health insurance continues to extend coverage
4. Quality education and innovate to improve customer outcomes.
Promote sustained, inclusive and We employ just over 30,000 people globally and have
5. Gender equality sustainable economic growth, full launched a new Equal Parental Leave policy in Canada,
and productive employment and UK, France, Ireland and Singapore.
6. Water and sanitation decent work for all Everyone who works in a UK Aviva office location,
whether employed directly or sub-contracted, earns
ffordable and clean
7. A
energy
at least the real Living Wage, as calculated by the
Living Wage Foundation.
8. Decent
work and
economic growth Make cities and human settlements We are in the third year of our strategic partnership
inclusive, safe, resilient and with the British Red Cross, working with them to
9. infrastructure sustainable help communities around the world prepare for and
respond to disasters.
10. Reduce inequality As an insurer, we’re there for our 33 million customers,
protecting them in the face of challenges that affect them
11. Sustainable cities and their communities, like flooding. We paid £34.6 billion
and communities in benefits and claims to our customers in 2017.
12. Sustainable consumption Take urgent action to combat We have reduced our CO2e by 53% since 2010, and are
and production climate change and its impacts on track to reduce it by 70% by 2030.
We’re committed to purchasing 100% of our electricity
13. Climate action
from renewable sources globally by 2025.
14. Life below water
Our approach to carbon offsetting has directly
improved the lives of over 1 million people since 2012.
15. Life on land
Strengthen the means of Aviva played a key role in the creation of the Sustainable
implementation and revitalise the Stock Exchanges Initiative, the Corporate Human Rights
global partnership for sustainable Benchmark and the World Benchmarking Alliance.
16. Peace and justice development We are a member of the EU High Level Group on
Sustainable Finance and the FSB Task Force for Climate
17. Partnerships Financial Disclosure.
Aviva plc Corporate Responsibility Summary 2017 6
Highlights Strategy and approach Performance by key issue Governance
Strategy and approach Delivering sustainable finance to support the UN Sustainable Development Goals
Delivering sustainable finance
to support the UN Sustainable
Development Goals
Since our CEO Mark Wilson’s address to the UN General Assembly at the
launch of the Sustainable Development Goals (SDGs), we continue to
make great strides. We’re harnessing the power of sustainable finance
to help meet these ambitious targets.
The role of sustainable finance We also welcomed:
We’re proud to promote the vital reorientation
of capital away from short-term thinking
The conclusions of the UN Inter-Agency
Task Force on Financing for Development, Ground-breaking commitment to
towards more sustainable financial markets. which showed that international focus teach the World’s Largest Lesson
As a global insurer and investor, we’re very on sustainable finance is gaining
aware that the investments we make today momentum; and We believe everyone can help deliver the SDGs.
will influence the world we live in tomorrow. The recommendations of the EU High-Level We’re calling on our people to spread the word
We’re in this for the long term. Expert Group on Sustainable Finance. about how important the SDGs are, and the role
A great deal has been done by We are a member of this group and have that everyone has to play in making them a success.
governments and the UN to align private made recommendations to the European
finance with sustainable development. Commission on policy changes required
In 2017, over 30 of our global graduates went into
This has been accompanied by increased Mark Wilson, Aviva Group CEO schools and groups across the world to introduce the
to make finance more sustainable.
understanding of the collaboration required goals to children and young people. We’re uniting
with the private sector, as shown by the latest people world-wide in action as part of Project
discussions at the High-Level Sustainable The World Benchmarking Alliance Our idea is simple. We turn the
SDGs into a corporate competitive Everyone’s World’s Largest Lesson. We were one of the
Development Goals Financing Lab in We’re leading the establishment of public,
sport. We draw up transparent data first companies to do this, and in 2018 will encourage
April 2017. transparent and authoritative league tables,
In 2017 we released our own report, ranking companies on their contribution on performance towards meeting more of our people to get involved.
‘Delivering the sustainable financial system to the SDGs. In September 2017, we jointly the goals, and we rank companies
the world needs’, which: launched a global consultation to shape according to how well they are doing.
Shared our perspective on current this work and set up the World This will motivate a race to the top
challenges and opportunities; and Benchmarking Alliance. and is what the proposed World
Outlined a set of concrete recommendations Benchmarking Alliance is
to promote a step change in private finance all about.
for the UN Sustainable Development Goals.
Mark Wilson
Aviva Group CEO
Aviva plc Corporate Responsibility Summary 2017 7
Highlights Strategy and approach Performance by key issue Governance
Performance by key issue Doing the right thing for our customers
Doing the right
We look after our customers whatever life throws Taking complaints seriously
at them and try to prevent some of those problems But we know we don’t always get it right. If
from happening in the first place. customers are unhappy with our service, we listen
thing for our
and do our best to put it right – in line with our
Making things simple global customer business standard. We were the
We are improving our processes for the benefit first insurer in the UK to publish unbiased customer
customers
of our customers. For example, Aviva Singapore reviews of our products and services. Customers
has implemented e-submission for new business publicly review their claims experiences with
applications for individual life and health customers. Defaqto ratings of 5.0 for our Motor policies and
This has reduced the need for paper forms and 4.6 for Homes.
made applications easier for customers and advisers
Every one of our 33 million customers by providing an immediate underwriting decision. Dormant assets
has their own priorities and concerns. Despite companies’ best efforts, millions of ‘lost
We exist to help them Defy Uncertainty Offering products to protect and inspire pounds’ go unclaimed. We support the UK
– to protect what’s important to them
Nearly two thirds of our markets offered our
customers a product which enables them to be
Government’s Dormant Assets Commission’s*
objective of financial services companies’
Fighting the impact
and to shape their futures. more environmentally responsible or gives them protecting customer’s rights by trying to find them of smog
easier access to the protection they need for and reuniting them with their funds. First and
themselves or their families. For example: foremost, this is customer money. However, when In Poland we funded 300 external air
We offer ride-sharing and home-sharing funds are truly dormant, we’re hoping to find ways quality sensors which were added to
insurance to customers in Aviva Canada; to make better use of the money for societal good. the national network in places selected
In Aviva Poland we’re offering discounts for You can read the full Dormant Assets Commission by local communities. We’re also
in-home air quality sensors and purifiers to life report here and the government’s response here. offering discounts for in-home air
and health insurance customers. (See case quality sensors and purifiers to life and
study); and Protecting vulnerable customers health insurance customers. By helping
We take our responsibility for protecting vulnerable people monitor the air quality
Aviva India is encouraging parents to customers’ rights seriously.
#catchtheearlysigns, helping them to see their In the UK, we supported the publication of the
where they live, they can
children’s potential early and suggesting savings Financial Inclusion Commission report. It sets out take action to protect
and insurance products that could help them findings from a research study and identifies ways themselves, their families,
to secure a great education and a bright future. to increase access to affordable home insurance and their communities.
In 2017, Aviva Ventures, our global capital investment for under-served people in the UK. The report
business, invested in Owlstone Medical, a company highlights that this group:
Supporting the Armed at the early stages of developing a breath analyser
that can test lung and colorectal cancer, two of the
Face a higher risk of loss (up to 30 times in the Key highlights
case of arson);
Forces Covenant most common terminal cancer conditions Struggle to replace or repair their belongings
worldwide. Through start-up partnerships like this, Percentage of complaints resolved within
In 2017 we signed the Armed Forces – over seven million UK adults have less than eight weeks (UK) Life/GI/Health
we can take Defying Uncertainty to the next level.
93%
Covenant alongside the Defence £1,000 in savings; and
In 2014 Aviva France launched ‘Aviva Impact
Minister, Tobias Ellwood. We pledged Investing France’, becoming the first financial Is biased towards the young, with 81% of
‘generation rent’ not having contents cover. (2016: 92%)
to support our customers and institution in the country to create an investment
employees who are armed fund dedicated to financing socially and
Number of products or services that include
forces personnel and ensure environmentally responsible companies. It is now
endowed with €30 million. With the initiative, Aviva social inclusion considerations
they are not disadvantaged
31
* Kirstine Cooper, Aviva Group General Counsel and Company Secretary
compared to others. wants to participate in the development of social has previously been a member of the Commission.
entrepreneurship, a particularly innovative sector. (2016: 17)
Aviva plc Corporate Responsibility Summary 2017 8
Highlights Strategy and approach Performance by key issue Governance
Performance by key issue Strengthening communities
Strengthening
In 2017, our community investment totalled Working with the Red Cross
£11.9 million and our community programmes We are now two years into our global strategic
helped 792,000 people and supported 2,400 local partnership with the British Red Cross (BRC).
communities
community projects around the world. We aim to In addition, we’re working together to help
help 5,000 local community projects by 2020. communities to be better informed, prepared
and more resilient if disaster strikes. This year we:
Supporting communities through digital Identified and funded four new Red Cross
Our online Aviva Community Fund (ACF) invites community resilience projects in Canada,
We’re working with others to give people to nominate and vote for inspirational Singapore, Italy and Poland, which included
customers and communities a projects in their local communities to win funding. building resilience against urban flooding;
brighter future. Anyone can submit or vote for a project online. Repeated the success of the Aviva Global
Projects that get enough votes make it to the final Mapathon. Hundreds of our people helped
judging panel. create up-to-date digital maps, helping aid
In 2017, we launched the Aviva Community organisations reach families who live in remote
Fund in even more countries. We now give areas of countries like Nepal and Bangladesh;
hundreds of organisations across ten countries the
chance to win funding to make a difference in their Became a sponsor of the BRC Community
local communities. Reserve Volunteer project, which will create Mamie Foodie – La Fabrique Aviva winners of 10,000 euros
a network of 10,000 people to help when
disaster strikes their local community; and
Our people making a difference
In 2017, our people gave or fund-raised £1.2 million Continued Aviva Singapore’s partnership with
The Aviva
and volunteered 48,000 hours of their time, making the Singapore Red Cross, with 160 of their Community Fund
the most of paid volunteering days and fund- people adopting 32 elderly families.
matching benefits. The Aviva Community Fund is up and
In Aviva Ireland, this included our people running now in Canada, France, Hong
working with Pieta House, which offers free Key highlights Kong, Italy, Poland, Singapore, UK,
Vietnam, China and Ireland. This year:
counselling to people who are suicidal, who
self-harm, or those who have been bereaved by
Amount of community investment
We launched the Aviva Community
suicide. As well as fundraising, employees shared Fund in Aviva Vietnam, and are working
Supporting healthcare
their expertise with the charity. For example, the
marketing team helped to create a mental health
awareness video to be shown at key rugby matches
£11.9m (2016: £11.3m)
with the Vietnam Red Cross Society to
maximise the reach of their funding;
in Canada at the Aviva Stadium in Dublin. Aviva France continued to focus their
community fund, La Fabrique Aviva,
Our aim is to deliver 200,000 hours of
In 2017 Aviva Canada launched a pilot Total number of local community
volunteering and help 2.5 million people between on supporting entrepreneurs whose
with the Canadian Red Cross to help projects supported
2015 and 2020. Not only is this great news for our businesses are making a positive
Canadians live well for longer, in their
own homes. The project will improve
health outcomes for seniors and people
communities, it also helps us attract and develop
talented people. Our 2017 people survey shows
88% of our people believe that Aviva is a good
2,400 (2016: 1,400)
impact on their wider communities;
Aviva Italy increased their support for
corporate citizen (15% more than the industry projects that support employment,
living with an illness or disability Percentage of Aviva employees who volunteer help older people and deal
13%
by connecting them to their benchmark and up 8% since 2015). These
employees are also 58% more likely to be proud to with people’s health issues,
primary healthcare teams work for Aviva and 41% more likely to recommend (2016: 13%) focusing in particular
using the power of digital our products to family and friends. on those that use
technology and volunteers. digital technology.
Aviva plc Corporate Responsibility Summary 2017 9
Highlights Strategy and approach Performance by key issue Governance
Performance by key issue Our people
Our people
We employ just over 30,000 people globally and They will also be more in tune with our diverse
continue to support the regional economies in our customer base and better able to serve their
home market the UK, where we employ more than evolving needs. In 2017 we focused our attention on
14,600 people. gender and age. We continue to build on the existing
strengths of our communities and partnerships with
Our people focus for 2017 has been on Our strategy the launch of six global employee resource groups
our culture. We want to be a business Our global people strategy sets out how we will focusing on age, gender balance, caring, disability,
which is simple, innovative and customer accelerate our performance. This includes: sexual orientation, race and ethnicity in 2018.
Giving our people the freedom to act in line with In 2017 in the UK we released our Gender Pay
centric in everything we do. our values; Gap report, including the steps we are taking to
Making leadership a way of life so all our people address this.
contribute to delivering our strategy and think
independently; READ GENDER PAY
GAP REPORT ONLINE
Creating an inclusive and diverse environment
so that everyone can be themselves; and
Actively investing in the skills, mind-sets and Health and well-being
We know our employees are a key factor in making
future capabilities we need to win in a digital age.
our business grow and as such their well-being is Equal Parental
Developing our talent key. Wellbeing@Aviva (see case study) was launched
in 2017 and we are shortly launching a new fitness
Leave policy
Investment in talent remains an area of focus for us. In
2017, we developed a three-year talent management proposition for all. 2018 will see a higher focus on A key policy change in 2017,
strategy. This defines and sets direction for a simpler, financial well-being for our people. contributing to our inclusive culture,
more globally consistent approach, identifying, was the launch our new Equal Parental
assessing and developing our talent to mobilise their Our plans for 2018 Leave policy in Canada, UK, France,
potential. Other action included delivering our Innovation, simplicity, inclusion and developing Ireland and Singapore. It enables any
Leadership Accelerator programme to 290 of our winning capabilities will be key priorities for us parent employed by Aviva to be eligible
senior leaders and the launch of our Digital Academy as we continue to transform our business.
More details on our People strategy and
to the same amount of paid and unpaid
in Poland to help develop the next generation of
Wellbeing@Aviva programmers and future digital talent. approach can be found in the Aviva Strategic time off, regardless of gender, sexual
Report 2017. orientation or how they became a
We launched an holistic approach to parent (birth, adoption or surrogacy).
Engaging our people
wellbeing in 2017 covering mental Aviva also launched a new carer policy
In 2017 our global ‘Voice of Aviva’ survey focused on key
health, physical health, financial areas of insight to drive growth. Engagement is up one for its UK employees, to help support
well-being, and social and community. percentage point to 75% and is now consistent across people balancing their careers with
Initiatives include leader training for the world after significant improvements for France and caring responsibilities.
mental health, physical health checks, Singapore. What’s more, 85% of colleagues globally
and free membership to Headspace for see how their team’s work aligns to Aviva’s strategy. Key highlights
mindfulness practice, not to mention Our culture journey will continue in 2018 with on-going
an enhanced sickness policy and focus on colleague engagement, giving people the Our people who feel that Our people who feel Our people who think Aviva
income protection scheme. There is freedom and room to operate and to lead for the future. Aviva values their health that those from diverse is a good corporate citizen
also a key focus on nutrition and we and well-being backgrounds can succeed (and those people are 31%
Inclusive diversity at Aviva more likely to stay at Aviva
provide employees additional support Inclusive diversity is at the heart of how we do
via our essentials products for both for more than two years)
78% 84% 88%
business and a key requirement for the workforce
physio and cancer. of the future. If people can be themselves, they’ll (2016:
be happier and contribute their best thinking. New indicator) (2016: 87%) (2016: 84%)
Aviva plc Corporate Responsibility Summary 2017 10Highlights Strategy and approach Performance by key issue Governance
Performance by key issue Climate risk and environmental impacts
Climate risk and
offer up to a 20% discount on electric car insurance
and sponsored the 2017 Electric Mobility
Conference.
environmental impacts
Through products and services like this,
we help to:
Protect our customers against the impacts
of climate change;
Climate change poses serious risk to Our work in this area includes stress testing different Minimise the environmental impact of our
climate scenarios, low carbon investing, supporting claims process; and
our customers and in turn our business. environmental products and services, and reducing
We’re working with others to make sure Provide energy efficient replacements to help
our operation’s environmental impact.
reduce customers’ long-term energy costs.
climate risks are understood, and ways
Creating legacy
are found to minimise the impacts. We were the first carbon-neutral international Reducing climate risk
insurer in 2006. We continue to offset any remaining We collaborate on research and action to better
operational carbon emissions today. Our offsetting understand, manage and disclose the risk of
projects have improved the health and lives of more climate change. Find out more about one The road to action
than a million people globally since 2012, through of these reports opposite.
We have also developed a high-level response In 2017 we sponsored the Economist
actions like provision of clean cook-stoves in Kenya.
This year we were awarded the UN Momentum to the recommendations of the Financial Stability Intelligence Unit review into the
for Change award in recognition of a decade of Board’s Taskforce on Climate-related Financial challenges of reporting on the financial
work reducing our environmental impact and Disclosure, in our roles as an asset owner, impact of climate change. The report
helping inspire action on climate change. insurer and asset manager (i.e. Aviva Investors). also investigates the roles that ten very
To date we have achieved a 53% reduction in You can find out more at www.aviva.com/TCFD. different financial institutions could or
CO2e against the 2010 baseline, meeting our 2020 Our high-level response includes details of do play in supporting this disclosure
target (of 50%) early. We continue work towards how, in 2017, we worked with the 2 Degree Investing and how the process might be
our ambitious long-term target of a 70% reduction Initiative to analyse how close we are as an asset embedded into the UN Sustainable
by 2030. owner to achieving a 2oC future. Using the European
Development Goals. The report is
Encouraging our people to Lower carbon investing
Commission’s Sustainable Energy Investment
metrics, we mapped how our equity and bond a follow-up to the 2016 report,
protect the environment In 2015, we announced an investment target portfolios are aligned to the Paris Agreement, ‘The cost of inaction:
Recognising the value at
of £500 million annually for the next five years both now and in five years’ time.
In our French headquarters we have in low-carbon infrastructure. We also set an risk from climate change’,
set-up eight electric vehicle bays, and associated carbon savings target for this which Aviva also sponsored.
opened an organic vegetable garden investment of 100,000 tonnes of CO2e annually. Winner of the UN
where non-pesticide gardening is Momentum for Change Find out more here
In 2017, Aviva Investors signed £527.5 million
taught and a beehive kept. In the UK, of new investment in wind, solar, biomass and Lighthouse Award
we have installed a further 20 electric energy efficiency.
vehicle charging points at eight of
Green products and services
Key highlights
our locations, our office
restaurants promote the We offer 20 products or services that include a
specific environmental/reduced carbon benefit. Percentage reduction of CO2e CO2e emissions offset Percentage of energy
use of ‘keep cups’ with emissions relative to our annually generated or purchased
For example, in 2017, Aviva Canada introduced
special offers and price InsureMyTesla powered by Aviva, tailor-made 2010 baseline from renewable resources
53% 100% 61%
reductions for their use. insurance for Tesla drivers. Aviva Canada also now
(2016: 46%) (2016: 100%) (2016: 61%)
Aviva plc Corporate Responsibility Summary 2017 11Highlights Strategy and approach Performance by key issue Governance
Performance by key issue Responsible investment
Responsible
Our investment approach on issues, such as climate change or the Living
Aviva Investors is our global asset management Wage, we can gauge how well prepared they are To help deliver on our
company, with £353 billion under management to deal with current or emerging ESG issues.
commitments, we have
investment
in equities, fixed interest, property and multi assets (as If we consider a company’s performance falls
at 31 December 2017). Building on Aviva Investors’ short, and this shortfall will have an impact on our dedicated more resources to our
40 year heritage in responsible investment, in 2017 we investment decision, we engage with the board to responsible investment approach
have continued to: improve performance. We vote against companies’
Enhance the way we integrate environmental, annual report and accounts that fail to report on and I am particularly pleased
We’re committed to using our influence social and governance (ESG) considerations key ESG matters or perform poorly. with the progress being made
to support a more sustainable economy into our investment decisions; In 2017 we voted on 49,721 resolutions at in embedding ESG considerations
4,151 shareholder meetings and engaged on
and society. Act as responsible stewards of our investments,
989 occasions with companies as part of our within our infrastructure and ‘real
through our annual general meeting (AGM)
voting and engagement activities; and stewardship responsibilities. asset’ offerings. We also continue
Use our influence and experience to drive
Aviva Investors is a founding signatory to the to play an active leadership role in
UN Principles for Responsible Investment. We
sustainable market-wide capital markets reform. received a ranking of A+ in their 2017 assessment. helping to shape the public policy
In 2017 we were also honoured to receive the agenda around the sustainability
Integrating ESG considerations into our
decisions
Responsible Investor Award for Innovation and of our capital markets.
Industry Leadership. It’s a testament to the
We work together with fund managers and market-leading way we stay at the centre of, and Euan Munro
analysts, customising ESG integration for each tirelessly push forward, the ESG issues that matter
investment process, to deliver better investment Chief Executive, Aviva Investors
most to the investment community. This has
outcomes for our clients. included the launching of investor guidance on
We incorporate ESG issues into our investment
analysis and decision-making because we believe it
Corporate Culture, Antibiotic Resistance and
Sustainable Fisheries. Key highlights
The Corporate Human delivers better investment outcomes for our clients,
society and the environment. Number of engagements where Aviva Investors
Advocating for sustainability
Rights Benchmark In particular, Aviva Investors’ Global Finance plays an important role in meeting the has raised specific human rights issues*
65
Responsible Investment Team (GRI Team) is a key targets of the Paris Climate Change Agreement.
In 2017 we helped launch the Corporate component in building Aviva Investors’ House View, Aviva Investors remain engaged in how our
Human Rights Benchmark (CHRB), the which cascades back through the organisation and industry can support the transition to a low-carbon
(2016: 34)
first-ever ranking of the world’s largest helps guide medium- to long-term investment economy, and how we can directly finance assets
publicly-listed companies on their positions. They ensure that material ESG factors, that help reach this goal. Percentage of company meetings (AGMs and
human rights performance. such as global climate negotiations and social In 2017 we were the first asset manager to EGMs) at which Aviva Investors voted**
91.5%
trends in urbanisation, are considered when
The Benchmark released its first set include disclosure to the Task Force on Climate-
determining the firm-wide macro outlook.
of results on 13 March 2017, ranking 98 related Financial Disclosures (TCFD) in our UK (2016: 91.8%)
As long-term investors, we see factors such as
of the world’s largest publicly-traded Corporate Governance and Corporate
corporate culture, good governance, climate
companies, from three at-risk sectors, Responsibility Voting Policy.
change strategy, and employee and market place * Human rights engagements cover a multitude of topics including child
labour, working conditions, minority rights and indigenous peoples’
on human rights performance. attitudes as core to the success of our investments. rights. For the year under review we have engaged primarily with
Our role as an asset owner and insurer
Find out more here We’re mindful of the wider role we play as an
companies in the extractive sector and palm oil producers.
** As a percentage of those companies we invest in with whom we have
Active ownership
insurer and asset owner in helping to encourage voting rights. When exercising our right to vote in company meetings,
We actively promote good practice among we are interested in the principles of good governance and how these
responsible investment practices. In 2017 Aviva are achieved in practice to promote the best long-term prospects for
companies we invest in.
stopped investment in all tobacco manufacturing the companies in which we invest. Our approach is set out in detail in
We aim to identify and reduce ESG risks in our our UK Corporate Governance and Corporate Responsibility voting
companies, demonstrating our drive to combat
portfolios. By understanding the quality of the policy, which can be found here.
board of directors of a company and its strategy the negative effects of tobacco on public health.
Aviva plc Corporate Responsibility Summary 2017 12Highlights Strategy and approach Performance by key issue Governance
Governance Good governance
Good
How we operate to our code every year (99% of our employees
Our Board Governance Committee oversees did so in 2017).
our responsible and sustainable business In 2017, we also reviewed and improved our
governance
strategy and the policies that underpin it. As a business ethics training to reinforce its importance
company we are subject to the UK Corporate and what it means for our people.
Governance Code (the Code), which we aim to Our Financial Crime Business Standard guides
comply with fully. how we seek to prevent, detect and report financial
You can read about how we comply with the crime, including bribery and corruption, while
We want to make our industry work Code in our Annual Report and Accounts and on complying with relevant legislation and regulation.
better for everyone. That’s why we www.aviva.com/investors/corporate-governance/. We have risk-based training to ensure employees
work hard to practice good governance and others acting on Aviva’s behalf know what’s
Business ethics expected of them and how they should manage
across the business. Our Business Ethics Code outlines our high bribery and corruption risks.
ethical standards and ensures we operate Our malpractice helpline, Right Call, makes it
responsibly and transparently. We require all easy to report any concerns in confidence, with all
our people, at every level, to read and sign-up reports referred to an independent investigation Cyber security and
team. In 2017, 41 cases were reported through Right
Call (2016: 25), including one related to bribery and personal information
corruption concerns. 35 cases reached conclusion, Aviva strives to maintain and continually
and six remain under investigation.
Aviva plc Board update its controls designed to prevent,
Evolution Council detect and deter potential acts of
In 2017 we began setting up the Evolution Council Financial Crime. In 2017, we completed
which in 2018 will see the views of our Generation a Group-wide review of our Financial
X and Y colleagues represented at Board level. In Crime Risk Management framework,
Audit Nomination Risk Governance Remuneration
operation from March 2018, the Council will receive to ensure that it remains up-to-date,
a broad selection of materials ahead of each Board effective and fully supports our strategy.
meeting and be asked to provide insight and We now have an enhancement plan in
Operational comments, giving an invaluable way for the views place designed to introduce leading
Disclosure Asset liability
risk of our employees to be fed back to the Board. practice over the coming years.
Managing risk
Aviva Executive Our Risk Committee oversees all aspects of risk slavery in our operations. For example, in 2017 we:
committee management. You can find full details of our Updated our human rights policy to make
Kirstine Cooper approach to risk on www.aviva.com and details explicit mention of modern slavery as an area
Group Executive on how we minimise climate change impacts can of focus; and
owner of CR
be found on page 11 of this summary.
Published our first Modern Slavery Act statement
Protecting human rights detailing the work we undertook in 2016 to
Global CR Local Market Our commitment to respect human rights is guided assess the risks of modern slavery in our own
function Executive teams
by the United Nations Guiding Principles on Business business and supply chain.
Key You can find out more in the ‘Corporate
and Human Rights and other internationally
Board committees recognised human rights frameworks. Responsibility’ chapter of the Aviva Strategic
Regional and
Management committees market level Our approach to modern slavery is part our Report 2017 and by reading our complete Modern
CR managers overall approach to human rights and we are Slavery Act statement and human rights policy.
CR-specific governance
committed to making sure there is no modern
Aviva plc Corporate Responsibility Summary 2017 13Highlights Strategy and approach Performance by key issue Governance
Governance Tackling the big issues together
Tackling the big How we recognise expertise and insight
issues together
Stakeholders Engagement Our shared interest Action example
Customers Net Promoter Score (NPS)® and brand surveys To provide good value products and As part of our focus on creating
Digital product testing services that meet their needs, innovative products that have a
Global surveys of consumer attitudes helping them take control of their significant impact on our customers’
In-depth consumer research into retirement plans, finances, and protect the people and lives, we have tested over 800
Our responsible and sustainable business approach financial planning and pensions things they love product ideas with 70,000 customers
Direct customer testing and insight across six countries
is rooted in what matters to our wide range of
stakeholders. We listen hard and work with them to Business partners Procurement processes including the Supplier Code of To be a trusted partner and do the We worked with Barclays to reduce
(Bancassurance Behaviour which includes reference to human rights and right thing for the good of our the environmental impact of our
understand the big challenges facing them and the partners, suppliers modern slavery customers claims process, using new technology
wider world. and joint ventures) Supplier surveys on Corporate Responsibility criteria
Responding thoroughly to bids and tender documentation
that can typically restore 85-95% of
smoke/water damaged items
Our people Voice of Aviva survey and regular polls Employees feel listened to, respected Our fully elected all-employee
Our approach Employee forums and networks
Consultation on and implementation of well-being
and recognised for their contributions
and helped to develop their talent in
representative body (Your Forum)
is a key way of recognising that we
initiatives a company they feel proud to work all have a part to play in contributing
Performance reviews for and where diversity is celebrated to the debate on issues and
Grievance procedures opportunities impacting on our
Trade union representation people and our organisation
The Evolution Council
Stakeholders’
Horizon
feedback
scanning Governments Our regulatory and public policy teams, along with our To comply with regulatory and We have supported the need to
on CR report
and regulators business specialists, engage with policymakers to support legislative requirements, actively reduce fraudulent whiplash claims
the development of good policy in areas that will have provide expertise to support policy through our ‘Road to Reform’
a positive impact upon our business and customers development and ultimately help campaign in the UK. We will continue
change our customers lives for to champion Road to Reform until it
the better becomes law and Aviva has promised
to pass on 100% of the savings to its
customers when it does
External Research
External Stakeholder
benchmarking Communities Share best practice, helping to develop actions or Being a responsible corporate citizen ShareAction placed Aviva at the top
and analysis analysis and engagement and NGOs solutions to social and environmental issues and supporting and strengthening of its ranking of Life Independent
discussion Invite input and challenge from lobby groups local communities Government Committee (IGC) report
Form global partnerships with organisations like the transparency for contract-based
British Red Cross pension schemes in 2017
Invest in community groups through programmes like the
Strategy Aviva Community Fund
development and
engagement Companies we Aviva Investors are active investors, engaging with Being a profitable and responsible Aviva Investors is focusing on
invest in companies and voting at their AGMs and EGMs on investor reducing antibiotic resistance at 40
ESG issues to help improve their performance large food producing and retailing
companies with high exposure to
Board level Strategy excessive antibiotic use within their
review development supply chains
Shareholders Annual general meetings To practice good governance and We have an MSCI ESG rating of AA.
Internal and investors Liaison with ratings agencies, banks and index providers regularly engage with investors. These ratings are used by investors to
Responding to a range of investor questionnaires, identify ESG risks and opportunities
engagement
e.g. Dow Jones Sustainability and FTSE4Good Index and within their portfolio
to letters from institutional investors
Distribution of digital shareholder newsletter
Aviva plc Corporate Responsibility Summary 2017 14Highlights Strategy and approach Performance by key issue Governance
Aviva’s key partners
A member of Stonewall’s A principal partner of the
Top 100 Employers list Living Wage Foundation and
in the UK a Living Wage employer
throughout the UK
Working together to create ClimateWise – We were
global benchmarks measuring ranked third, our
how companies perform ClimateWise score
against the UN’s Sustainable for 2017 was 77%
Development Goals.
Working together to help communities
become safer and stronger in times of
uncertainty and crisis
Contact us
If you have any suggestions, feedback or queries about
Aviva’s CR programme, we’d love to hear from you at:
crteam@aviva.com
This is a summary of our responsible and sustainable
business strategy. You can read more about it on
our website, in our Annual Report and in the Aviva
Strategic Report:
www.aviva.com/social-purpose
www.aviva.com/investor-relations/reports/
Aviva’s 2017 CR KPIs, assurance report from PwC
and reporting criteria can be found at:
www.aviva.com/CRkpisandassurance2017You can also read
