Environmental performance
We report our environmental performance using the Accounting for Sustainability framework, which integrates financial and non-financial data to provide a comprehensive picture of our impacts.
Carbon
footprint
reduction in CO2 emissions from 2007
Waste management
increase in waste
(we’ve set ourselves tough targets for 2009)
Paper
usage
decrease in paper consumption
Key indicators
Greenhouse gas emissions
Benchmark information:
- Carbon Disclosure Project Score 83 out of 100;
- BREEAM minimum ranking ‘Good’ for new build and refurbishment
NON-FINANCIAL INDICATORS
Aviva’s CO2 emissions
Key
* The 2007 CO2 emmissions have been restated. Each year the conversion factor for electricity generation varies. We therefore need to restate these figures every four years. We are restating the 2007 figures accordingly.
DIRECT COMPANY IMPACTS
Cash flow performance: CO2 emissions
Total cost of offsetting 105% of our global CO2 emissions – 128,931 tonnes in 2008 – was in the region of £750,000. We incur up to a 2% premium for zero emission/renewable electricity compared to fossil fuels. Following the publication of the 2008 UK DEFRA carbon reporting guidelines, at the end of our current electricity contract we will no longer pay a premium for zero emission electricity in the UK.
2008 has been a benign year for weather-related claims, although we do see a trend in the increased incidents of such events and believe the occurrence of these will rise with climate change.
Cash flow performance: Other significant emissions
Our operations do not generate material quantities of any other significant greenhouse gases.
COMMENTARY
Our performance, strategy and targets
In 2008, our total CO2 emissions decreased with all businesses reporting consistently on their footprint and applying practices to reduce their emissions. They have achieved this by using technologies, changing behaviours, and by purchasing zero emission and renewable electricity. We anticipate our carbon footprint reducing to 108,000 tonnes in 2009 through our divestment of AutoWindscreens and AGS – 10,000 tonnes – and by reducing business travel. There will be an increase from our new data centre reaching full capacity but expect that this will reduce over time through a programme of virtualisation and consolidation of data.
Our RAC business has fitted speed limiters on its breakdown vehicles providing an anticipated saving on fuel and associated carbon emissions of 7.4% over the year to October 2009. We are trialling retrofitted hybrid drive systems on two of the breakdown vehicles which could save up to another 25% in associated emissions in 2008/09. We will continue to purchase zero emission/renewable electricity where it is practical to do so. Currently 65% (2007: 61%) of our electricity worldwide is purchased from zero emission sources. Our remaining emissions will continue to be offset on a retrospective basis compensating for the carbon output of our consumption of non-renewable sourced electricity, gas and oil from buildings and business travel.
INDIRECT IMPACTS
Products/Suppliers/Investments
We anticipate having a complete UK carbon footprint of the properties we own through our Property Fund managed by Aviva Investors. Under the new UK Government Carbon Reduction Commitment scheme, electricity gas and oil used in the properties will be subject to an additional cost of £12 per tonne.
We regularly review the viability of new products and services that can encourage customers to reduce their own CO2 emissions. Our Prestige Property Owners Policy includes a free energy assessment, advice and guidance on energy saving technologies and reassessment to demonstrate improvements.
This year the UK general insurance business worked with public bodies to create a best practice template in flood planning, involving local authorities, emergency services and utilities companies. The planning should help improve response times, raise awareness and reduce damage. See www.floodplanuk.org. This development complements the work completed earlier in the year. See www.floodsim.com
Aviva Investors’ new European Renewable Energy Fund specialises in developing and financing renewable energy infrastructure projects in the European Union. The Environmental Technology Fund and New Energy Fund managed by Delta Lloyd asset management business and the Renewable Energy and Clean Technologies fund in Aviva Spain focuses on climate change mitigation.
Waste
Benchmark information:
- 200 kgs of waste per employee per year.
- Recycling rate of 60-70% (BRE Office toolkit)
NON-FINANCIAL INDICATORS
Aviva’s waste
Key
DIRECT COMPANY IMPACTS
Cash flow performance: Hazardous and non-hazardous waste
Total disposal cost for hazardous and non-hazardous waste in the UK was £629,000 (2007: £464,000), which includes UK landfill tax.
Cash flow performance: Conservation investment
Total capital expenditure for storage and recycling in the UK was minimal (2007: £200,000).
COMMENTARY
Our performance, strategy and targets
In 2008, the total volume of waste generated has increased globally by 2% and the proportion of waste recycled has decreased by 4% on 2007 data to 84%. Our waste figures will reduce by some 6,000 tonnes due to the divestment of AutoWindscreens.
The learning from our bin-less office system is being applied to the Canadian business in 2009 and complements their efforts in 2008 around the composting of organic waste.
The rebranding of our businesses in the UK, Ireland and Poland to Aviva in 2009 and 2010 will inevitably generate increased volumes of waste. This, however, is being closely monitored to ensure this waste is kept to a minimum.
INDIRECT IMPACTS
Products/Suppliers/Investments
We are working with our upstream partners to eliminate waste from the business through take back of packaging and switching to biodegradable wrapping etc. Environmental clauses are included in contracts with suppliers. Each new supplier has to sign up to Aviva’s CR Supplier Code of Conduct – focusing on environmental impact as well as human rights and social issues.
We adhere to all building regulations (insulation, proper disposal of waste material including building waste and white goods) and we are members of a responsible motor repair network which disposes of waste and spare parts in accordance with sustainable environmental practices.
Resource usage
Benchmark information:
- 7.7m3 per employee per year (National Water Demand Management Centre)
NON-FINANCIAL INDICATORS
Aviva’s water consumption
Key
Aviva’s paper consumption
Key
DIRECT COMPANY IMPACTS
Cash flow performance: Water
The operating cost of water usage was £944,000 in 2008 (2007: £938,000).
Cash flow performance: Energy intensity
Total cost of building-related energy in 2008 was £18.2 million (2007: £20.4 million).
Cash flow performance: Paper usage
We currently do not track the cost of paper usage.
Cash flow performance: Environmental incidents
During 2008 there were no environmental incidents as a result of our operations, resulting in fines of £nil (2007: £nil).
COMMENTARY
Our performance, strategy and targets
Our focus on water reduction increased in 2008; Aviva’s businesses in the UK set a target of 10% reduction. Trials of flow straighteners for taps, reduced water consumption urinals, and water saving devices on toilet cisterns have been successful, resulting in a combined reduction to 5.5m3 per employee per year at the test locations. A group target of 4% has been set for 2009, through the sharing of these good practices around the world.
Our energy strategy is to invest in new energy-saving technology and to reduce our energy dependency on fossil fuels. We are prepared to pay up to 2% premium for purchasing electricity from renewable/zero emission sources.
We have trialled the use of boiler optimisation valves fitted to all our boilers. The trial suggested a reduction in gas use of 15% and our investment of £154,000 should see a positive return in just 38 weeks.
Capital expenditure work on energy conservation is proceeding with a payback period of less than three years.
Our strategy is to increase the use of recycled content paper, while reducing overall paper use. Cost and quality of recycled papers are now comparable with virgin content paper.
We have introduced self-selection options, which enable policyholders to receive and save policy documentation online, thus reducing paper usage, printing and postage cost.
INDIRECT IMPACTS
Products/Suppliers/Investments
Work is continuing with our marketing departments and suppliers to provide marketing materials with recycled content and remanufactured stationery products.
Shareholders have been asked to make the switch to receive company information electronically including the electronic transfer of dividends.
We report our environmental performance using the Accounting for Sustainability framework, which integrates financial and non-financial data to provide a comprehensive picture of our impacts.