Lord Sharman of Redlynch
OBE, Chairman
I am delighted with the progress Aviva continues to make in its role as a responsible corporate citizen. The board remains keenly aware of the need to develop our business to be sustainable and responsive to the needs of customers, staff and the wider communities in which we operate.
CSR is fundamental to our business. Good governance and social responsibility cannot be an afterthought. Indeed, one of the major challenges for companies today lies in providing responsible leadership in times of significant change. During 2006 we held the first meetings of the Aviva board’s newly formed CSR committee, which aims to give direction and challenge to Aviva’s CSR efforts. As a member of that committee, I have been interested to see the initiatives in progress around the group, and impressed by the level of commitment, dedication and enthusiasm among our employees in making CSR part of “business as usual”.
From all the challenges we face, as a company and a world community, that of climate change is one of the most urgent. The Stern Report, published in October 2006, sets out clearly the devastating consequences for the environment and economies worldwide of increased carbon emissions and extreme temperatures.
We take these concerns seriously. Aviva has had schemes in place to reduce our CO2 output for some time. Those efforts will continue, but we also recognise that we alone cannot remove our carbon footprint altogether. We have therefore decided to become “carbon neutral”. This means we shall commission third parties to absorb or reduce carbon output to offset our emissions – for example, through projects that themselves reduce carbon outputs, displace current fuels or by generating zero emissions electricity. In identifying worthwhile carbon offset projects, we will also look primarily at those that promote local community benefits and sustainable development.
Another issue in which I have taken a great personal interest and involvement is the development of the UK’s Companies Act 2006. This Bill places greater emphasis on the internal governance and social and economic impacts of public companies. I strongly support these reforms and am certain that Aviva is in excellent shape to handle the forthcoming changes.
In summary, we are committed to improving our performance across this agenda in 2007, and I look forward to the future with great confidence.
- Lord Sharman of Redlynch OBE
- Chairman
