What is CSR?
CSR at Aviva means the management of our relations with our customers, workforce, suppliers and the community as well as the management of our performance in respect of the environment, human rights, health and safety, all under-pinned by adherence to rigorous standards of business conduct.
The CSR policy contains brief statements of fuller policies, which can be viewed at www.aviva.com/csr.
1 Megan Crockford CSR Assistant
2 Richard Whitaker Group Company Secretary
3 Zelda Bentham Environment Manager
4 Michelle Wolfe CSR Reporting Manager
5 Janneke Dijkstra CSR Communications Manager
6 Anthony Sampson Director of CSR
7 Annette Pendrey CSR Research Manager
Why CSR is important to Aviva
At Aviva, we believe that CSR builds value for the business and all its stakeholders. In particular, we believe that it motivates our staff and that it is important to growing numbers of our customers and shareholders. We also believe that you cannot operate within a community – be it global or local –without taking account of its major challenges and playing your part in meeting those challenges.
How we practise CSR
From the start, our CSR practice has been guided by the following principles.
Aviva pursues CSR goals within business goals
Aviva is a business and we pursue
our goals to reduce negative impacts and to promote positive benefits in
conjunction with our overriding business strategy.
We play a part in helping to define management and reporting practice
CSR
reporting is still a voluntary practice. It is also an evolving practice
and we are keen to play a leading part in helping to define such practice in
our sector through the FORGE group and generally through our
membership of the Global Compact.
Some elements of CSR are above business case
Some elements of CSR are non-negotiable
and are not subject to any business case appraisal. For instance, one decides
to be ethical or not, regardless of cost.
Elements of CSR do require a business case appraisal
A policy commitment does not mean taking action at any cost. It means doing so at a pace the business
can absorb. For instance, at the launch of our environmental policy in 1998,
we did not convert overnight to the use of renewables-sourced electricity,
which might have been possible, but at significant additional cost. However,
over the past eight years, we have gradually built up to the point where we
do now source 100% of our electricity in the UK (and 20% in two other businesses)
from renewables.
Obligations to shareholders must always be assessed
In the practice of CSR,
the financial consequences of any significant action should be assessed,
taken into account and justified, as with all business decisions.
Incremental approach
Aviva has pursued gradual progress in CSR at a pace which the businesses
can absorb. The ability to absorb change while many other things are going
on (which is always the case) is limited.
Since each of our businesses differs in size, resource and circumstance, we accept that they will move forward towards common policy objectives at different speeds.
No group targets
We have group policy objectives, but do not set group-wide targets, because
of differing local circumstances. For instance, common recycling or CO2 reduction
targets are not possible because of the differences in availability of recycling
facilities or renewables-sourced electricity. Targets, where appropriate, are
set at business level.
Both indirect and direct CSR impacts must be managed
For instance, in respect
of CO2 reduction, we can take steps to reduce our own direct impacts. Indirectly,
we can influence the behaviour of others through our purchasing and asset management
activities and through providing products that encourage beneficial effects.
Aviva seeks to integrate CSR into products and services
Products and services can carry a social or environmental benefit and also meet normal business
return criteria - a ‘win win’ situation. This is achievable in products
such as Autograph™ or Pay as you Drive™, which marry risk reduction with
environmental benefit. It is also possible in micro-insurance, which extends
the benefits of insurance to the otherwise excluded and brings a
sufficient return.
Aviva’s CSR programme is geared to achieve policy objectives
Our approach
to CSR has been to set policy objectives and to require our businesses, in the
light of their differing size, resource and circumstances, to make their own
path towards policy achievement. This approach gives ownership to the businesses.
It also explains the story-like nature of Aviva’s CSR reports. Each year,
each business is expected to make progress against the previous year and to
report on it.
CSR risk monitoring
While the programme is driven by opportunities identified by the businesses,
we also monitor and report on our positioning in respect of key risks and challenges
at group and at business level.
Streams of value
Employees. A strong CSR programme enables existing and possible new employees
to identify with what we stand for as well as with what we offer them by way
of employment prospects.
Investors. Socially responsible investment is a small but growing activity. It is important that we appeal to investors across the board. Our strong CSR performance has been recognised by ratings agencies.
Customers. Purchasing functions across the world are beginning to factor in CSR performance as one of the criteria on which they base their selection of partners. Strong CSR performance enhances our case. We also believe that some individual customers are influenced in their choice of provider by CSR performance.
The enhanced appeal of the company to these three important stakeholders highlights the financial value of pursuing a strong CSR programme. However, as our Chairman states, the overriding purpose of CSR is to reinforce the integrity of the company.