AVIVA PLC

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Revision as of 14:22, 18 July 2007

AVIVA PLC and the Environment

We are actively committed to managing and reducing our impact on the environment. In 2006, climate change moved up everyone’s agenda. In the hottest year on record, the Stern Report, commissioned by the UK Government, spelled out the economic and social costs of inertia, but also outlined the immediate benefits the world would see if we all took steps now to reduce our carbon footprint.

Of course, our business is all about helping customers to prepare for the future, including a future affected by climate change, and we think we can help society to respond to climate change in four ways. First, by creating or adapting products that encourage people to be more environmentally responsible. Second, by using our power as investors to encourage other organisations to be more responsible. Third, by making sure we take steps to reduce our own carbon emissions and to minimise the impact we have on the environment. Finally, by being the first insurer to go carbon neutral for our worldwide operations.

The focus for all this is our climate change forum, where we are looking at how to minimise the effects of bad weather on our customers and our business. We are also keen supporters of the United Nations Environment Programme Finance Initiative, the Association of British Insurers’ lobbying on flood defences, and the CBI’s Climate Change task force. We also work with our financial services colleagues on various climate change projects.

(1)

Managing CO2 Emissions

In 2006 our overall energy consumption increased by 28%. One of the main reasons for this is that we have included more businesses in the assessment, including our RAC and Auto Windscreens fleets and buildings, as well as some of our businesses in Asia and Delta Lloyd in Belgium. In our existing businesses, emissions went up slightly due to a requirement for more business travel and the increased use of air-conditioning in our managed properties.

To make people more aware of the impact our offices are having on the environment, most of our businesses run ‘switch off’ campaigns, using posters and screen savers to encourage people to do just that, especially the security guards when everyone has gone home.

Zero Emissions are on the up Although energy consumption increased, we are pleased to report that our use of zero emissions electricity has also increased and has surpassed the halfway mark, in that 55% of our electricity globally now comes from such sources. This includes wind, mirco-hydro and biomass power. Zero emissions electricity is now used in our businesses in the Czech Republic (17%), the Netherlands (34%), the UK (78%), Ireland (89%) and Germany (100%).

C02 emissions

Energy-efficient property management Around the world, we took advantage of both new and refurbishment projects to make environmental savings in our buildings. In Australia, our sustainable practices included re-using materials, recycling waste, using natural heat and light and installing light sensors in our meeting rooms and offices. In the UK, we made environmental savings through the design and management of our new and refurbished buildings in Norwich, in partnership with our landlords.

Hibernian’s new head office brought all businesses in Dublin into one environmentally efficient building in 2006. Features include low energy lighting, recyclable furniture and carpets and plenty of natural light. New print stations have replaced 400 printers and copiers with just 46 multi-functional devices, saving paper and power and helping people to interact more.

In our business in Boston, USA, new offices were acquired with the environment in mind. The improved working environment offers more energy efficient lighting systems, improved heating ventilation and air conditioning and new ergonomic workstations.

We are also taking steps to reduce the environmental impact of our investment properties. The Morley property team, which is part of our UK-based fund management business, has worked with managing agents to find ways of using less energy, improving recycling and using fewer resources. The team has also learnt more about environmentally-responsible property management, including how to rate properties using the Building Research Establishment’s Environmental Assessment Method and how to use hazardous and sustainable materials responsibly in property management.

Cutting down on travel We try to cut down on business travel wherever we can and also take steps to encourage our people to find responsible ways of commuting to work.

In 2006, we did do more international air travel – it was up by 4% overall on 2005 and short-haul journeys raised emissions by 10%. This was mainly because we were integrating our new acquisitions, such as AmerUs in the USA, and building up our operations in Russia and India. To help us cut down in the future, we are trialling a telepresence project, which is being sponsored by our CEO.

We have also found more immediate ways to cut down on travel and emissions. Due to the improved rail service in the Czech Republic, our people now prefer to go on business trips by train rather than driving. So, train journeys are up four-fold and we have saved 1.2 tonnes of carbon emissions.

Australia has focused on cutting the number of car commuters, with real success. Since 2004, the number of employees walking or cycling to work is up 41% and public transport use is up 13%. They also have an in-house car pooling scheme, added 40 new bike spaces and introduced a walk-to-work group. So, it is no surprise that in 2006, the number of employees driving to work fell by 28%, with car park demand down by 16%.

Some of our businesses continue to offer shuttle bus services for employees, for example between public transport and the office buildings in the UK. Norwich Union’s shuttle buses, which make 3,200 trips a week, saved people driving to the office and cut carbon emissions by 27 tonnes a year. It is envisaged that savings will be even higher in 2007 when people switch to the Park and Ride scheme. In India, Aviva Global Services provides free “pick-up and drop-off” transport facilities for all employees. (2)

Sources

• 1. AVIVA and the Environment
• 2. Managing CO2 Emissions