Aviva 2009 Annual Report Download - page 70

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Aviva plc Corporate responsibility
Annual Report and Accounts 2009
At Aviva we believe that corporate responsibility (CR) means
taking positive action, treating our colleagues, customers and
suppliers with respect, applying consistently high standards in
everything we do and having a constructive role in the
communities in which we operate. As well as running our
business responsibly we also work to influence sustainable
behaviour among our customers, suppliers and the companies
in which we invest. Last but not least, CR is about taking a
proactive approach towards the shared global challenge of
climate change.
The report that follows contains a summary of the progress
and performance of our CR programme in 2009. A detailed
review is available online at www.aviva.com/corporate-
responsibility/reports
Highlights from 2009 include:
— Executive directors’ remuneration based on financial
outcomes and targets related to customer advocacy and
employee leadership and engagement
— Extended our reporting of key performance indicators
using Accounting for Sustainability’s connected
reporting framework
— Established long-term carbon reduction target
— Launched ‘Street to School’ global community programme
— Included in some of the world’s leading indices and
benchmarks
Strategy and governance
’By acting responsibly for the long term in how we do business
we will meet our ambition to provide prosperity and peace of
mind to our customers.’
This is our core purpose applied irrespective of whether
economic conditions are favourable or challenging. Our global
business strategy has stood Aviva in good stead to manage the
risks and uncertainties experienced through the downturn in the
world’s economy while preparing for recovery and long-term
growth. Our people strategy and our CR strategy play an
important part in this, in maintaining our reputation as a
preferred employer and responsible corporate citizen, in
managing our resources and in reducing costs.
Directing our approach is our Board CR Committee.
Established in 2006, the Committee is chaired by Carole Piwnica
and comprises our Chairman, our CEO and three non-executive
directors. It meets four times a year to review Group CR strategy
and policy and assess regional performance against consistently
applied Group key performance indicators (KPIs). It also reviews
Group functions within Aviva that contribute to our global CR
programme. In 2009 our global procurement activities were
presented to the Committee and in 2010 it will receive an
update on our customer programme. Executive directors
remuneration is based on a combination of financial outcomes
along with targets related to customers, employees and
personal objectives. The Committee’s report can be found on
page 98.
Our CR Advisory Group supports and advises on the
management and implementation of the global CR programme.
Reporting to the Executive Committee through the Group HR
Director, it includes Group CR specialists, regional CR directors
and HR directors who work together to adopt and refine CR
strategies, assess progress, identify actions that need to be
taken and embed our programmes in different parts of the
business. In addition, the Aviva plc Board receives an annual
update on CR strategy, activities and progress. Our CR
programme is also featured regularly on the agenda at executive
management committees and regional performance against
Group KPIs is reviewed quarterly.
We also report our performance using the HRH Prince of Wales’
Accounting for Sustainability (A4S) connected reporting
framework (see page 74), a methodology that integrates
financial and non-financial data to provide a comprehensive
picture of our performance.
We were one of the first companies to help develop the
framework and have incorporated it in our Annual Report and
Accounts since 2007. By reporting the links between
sustainability, financial performance and strategic direction
more explicitly the framework increases our understanding and
the visibility of sustainability issues. We have found that it has
helped our finance and sustainability teams to work together
more effectively, identifying cost savings as well as providing
clear disclosure to investors. This year we have extended the use
of the framework further by adding customer and community
investment indicators.
Bringing CR into the Boardroom
Aviva Investors has taken a leading position in encouraging
global companies to enhance their governance and
transparency in CR reporting. In 2008, Alain Dromer, Chief
Executive of Aviva Investors, called on all stock market listing
authorities to make it a requirement that companies:
— consider how responsible and sustainable their business
model is, and
— put a forward looking sustainability strategy to the vote
at their AGM
In November 2009 Aviva announced plans to put our CR Report
to a separate shareholder vote at the 2010 AGM. We are the
first company in the UK and the first financial institution in the
world to take this proactive step. We hope that this will
encourage other companies to bring CR issues to the heart
of the boardroom and engage openly and transparently with
stakeholders on sustainability issues.
Business ethics
We aspire to the highest standards of conduct and set out our
principles in our business ethics code. This stipulates fairness,
honesty and transparency in all we do. Everyone at Aviva has a
part to play in upholding our standards and we raise awareness
of these responsibilities through our induction programmes and
acceptance and sign-off of the code by all staff.
Financial crime
Our financial crime policy reinforces our zero tolerance
approach and ensures that risks relating to fraud, money
laundering, market abuse and bribery and corruption are
adequately controlled. We provide mandatory computer-based
training as part of our procedures for combating market abuse
and insider trading, money laundering and fraud. In 2009 we
enhanced our bribery and corruption controls and rolled out
a worldwide training programme for employees.
We encourage our employees to raise any concerns they
might have through ‘Right Call’ – an Aviva-wide malpractice
reporting service. This enables all employees to report any
suspicions or concerns in a confidential manner for independent
investigation. In 2009, 67 incidents were recorded across the
group. All cases were referred for independent investigation
with 51 reaching conclusion and 16 cases currently remaining
under investigation.
Our people
Delivering on our strategic plans and commitments requires
strong leadership and the energy, dedication and belief of all
our employees. Over the past three years we have built a strong
global human resources function to lead our cultural