Chairman's statement

2008 will be remembered as a year of great turmoil in the world’s financial markets. The impacts of the credit crisis are being felt by many across the globe, from large institutions to individuals. Among the many questions and challenges raised is one which I believe cuts right to the heart of things – the question of sustainability, in terms of business practice, customer confidence and market recovery.

While many organisations are left wrestling with these issues, Aviva’s approach to corporate responsibility (CR) means we are working hard to understand and respond to the challenges. As well as managing our own direct impact on the environment and society, we place great emphasis on influencing sustainable behaviour among our customers, suppliers and the companies in which we invest. Now, more than ever, the links between corporate conduct and public confidence are highlighted and I believe Aviva holds up well under scrutiny.

We have continued to reduce our carbon emissions and maintained our status as a carbon neutral insurer (the world’s first on a global basis). Climate change remains a key issue and as an indication of our continuing determination to tackle it, we now directly link environmental performance with incentive and remuneration through setting carbon reduction targets in our executive directors’ personal objectives.

Aviva’s purpose of providing prosperity and peace of mind to our customers means listening to what’s important and understanding changing attitudes – whether that relates to insurance, investments, pensions or corporate conduct. Our adoption of the Aviva brand on a global scale is helping us be more recognisable and therefore accountable. We commissioned, and have recently published the latest research from, a five-year study into global consumer attitudes. The insights we have gained allow us increasingly to carry our ethos of social and environmental responsibility into new product developments, providing choices which benefit the planet as well as our customers.

Delivering on our plans and commitments requires more than a clear strategy. It requires the energy and belief of all our employees, whether they are involved in our ‘summit’ leadership groups, our Talking Talent programme or our community and environment initiatives. Our investment in these areas is already paying off with nearly three-quarters of our people rating Aviva as a great place to work. We were also awarded gold status by Business in the Community in their latest corporate responsibility index and ranked 9th in the Observer Good Companies Guide 2008. I am proud of what we have already achieved and believe we have the right framework in place for further progress. We must continue to deliver against the challenging targets set by ourselves and by the external agencies we engage with to benchmark our performance.

My appreciation goes to Wim Dik for chairing the Board CR Committee so effectively over the last three years and I am delighted that Carole Piwnica has accepted that role going forward. Our thanks also to Guillermo de la Dehesa who retired from the Board CR Committee at the end of 2008.

We will continue to ensure that our CR approach remains a key element in achieving “one Aviva, twice the value”.

Lord Sharman of Redlynch OBE
Chairman