AVIVA PLC
From Lauraibm
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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.
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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%).
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)
Waste & Paper Management
Across the group we recycle 59% of our waste, a slight decrease on last year’s total, but this is because we now include new businesses and businesses reporting for the first time. For existing business, recycling increased from 61% in 2005 to 73% in 2006. Some of our businesses are still not able to recycle, either because they haven’t got the storage space or because they are in countries that do not yet support recycling.
Our businesses are still making good progress. The binless office concept has been such a success at Norwich Union and Aviva head office that other businesses are now trying it out. As a result, Morley increased its recycling figures in 2006 and Aviva Australia piloted the binless office concept on one of its head office floors. The pilot was a success with over 86% of respondents believing it was a good idea. It will be rolled out to all head office staff in 2007.
Aviva France has maintained its near 100% recycling rate. This was helped by the continued use of dual bins for each desk which allowed it to sort paper and cardboard desk waste. An external recycling company manages and treats company waste – separating waste into canteen waste, neon, battery, paper and cardboards, pallets, etc In addition, the use of recycled printer cartridges is being tested in the business with the intention of implementation across the company.
AutoWindscreen, the only UK windscreen replacement company to manufacture windscreens, produce 250,000 windscreens per year and recycled 7,018 tonnes of glass in 2006. But, to avoid unnecessary replacements when a simple repair would stop the damage spreading, they encourage drivers to repair any stone chips as soon as the damage is done. Forty damaged windscreens would fill a skip, but the equivalent waste from windscreen repairs would fit in the palm of your hand.
In India, Aviva has found several ways to improve waste management. Apart from collecting newspapers for recycling, they sent around 880 used printer cartridges back to the supplier, so they can eventually be turned into items like pens and clips. They also ask contractors doing interior work to turn waste wood into furniture items which can be donated to places like schools for underprivileged children.
For the third consecutive year, Aviva head office received the City of London’s Platinum award in its Clean City Awards for its responsible waste management practices. Also, for the first time, Morley received the same prestigious Platinum award in the same scheme.
Paper use Paper is a big part of our business and, although paper consumption increased to 8,132 tonnes in 2006 from 7,809 tonnes in 2005, we are constantly looking for ways to use less – and to use paper with recycled content.
In France, our life insurance business is changing the way it does business to cut paper out all together. The ‘starification’ scheme, or paperless office, now allows business to be done online instead. The sales force get most of their information via an intranet portal. They communicate with customers via email and transfers and payments are done online as well. It seems to be a success all round – it has not only cut out paper and faxes, but it is more accurate and efficient and will be extended to other parts of the business during the year.
In Australia, Aviva achieved its target of reducing paper use per person to below 10,000 pages, cutting it to 9,568 in 2006. Many of our businesses, including those in Spain, the Czech Republic and Poland, find that the easiest way to cut down on paper is to encourage double-sided printing. Some offices, such as Delta Lloyd in Germany and the Netherlands and Aviva’s head office, have set their printers to double-sided printing as standard.
Where we still use paper, we try to make sure it includes recycled content. In 2006 our use of recycled paper went up by 46%. Recycled photocopier paper is used in both Australia and the UK, while Italy uses recycled paper for all its product literature.
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The World's First Carbon Neutral Insurance Company
To show just how much we want to limit our impact on the environment, in December 2006 we committed to becoming the first insurer to be carbon neutral worldwide. It is a big step, and we will not pretend it will be easy. We have already made a good start by becoming more energy efficient and using more zero emissions electricity. In fact, 55% of the electricity we use globally already comes from zero emissions sources.
Essential business travel and buildings that have to be powered by non-renewable sources mean that we still generate about 125,000 tonnes worldwide. We cannot bring that down to zero, so we are going to offset it. How? By investing in projects that generate carbon credits, such as energy efficiency, fuel displacement and carbon-free energy sources such as wind power.
This is a big challenge, but we believe that climate change is the most important environmental issue that the world faces. As a forward-thinking company, we are doing our bit to address this issue and encourage other businesses to follow suit.
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