Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business ethics and values
• Customers
• People
• Suppliers
• Community relations
• Environment

Environmental Achievements

• Became the first insurance company to be carbon neutral across its worldwide operations
• Existing businesses reduced carbon emissions by 10.8%

Social Achievements

• Global Employee Climate Survey revealed that 70% of employees think Aviva is a great place to work
• Investments in community and charity projects totalled £6.75 million
• Awarded the Global Diversity and Innovation Award by the World Diversity Leadership Council

Governance Achievements

• Only UK-listed insurer to be included in both the Dow Jones Sustainability World and STOXX Indexes
• Awarded a bronze-class distinction by SAM (Sustainable Asset Management)

Climate Goals & Targets

Environmental Challenges

• Climate change
• Shifting demographics
• Changing regulatory demands
• Enhanced customer expectations
• Ensuring accurate, complete, and consistent KPI recording across global operations

Mitigation Strategies

• Developed a new ‘One Aviva, twice the value’ vision to link CSR strategy more closely to business objectives
• Consolidated CSR, people, and environment policies
• Undertook a thorough review of risks associated with implementing policies and established metrics to identify and mitigate risks proactively
• Established a set of key performance indicators (KPIs) across more areas of the business
• Implemented carbon offsetting programs

Supply Chain Management

Responsible Procurement

• Aviva Supplier Code of Conduct
• CSR weighting of at least 10% in sourcing decisions
• Human rights considerations in supplier review and tender process

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Reporting Standards

Frameworks Used: GRI, Dow Jones Sustainability World Index, STOXX Indexes, FTSE4Good Index Series, CDP

Third-party Assurance: Corporate Citizenship

Sustainable Products & Innovation

• Pay As You Drive™ car insurance
• Green motor insurance in Netherlands
• Wellness for Life program in USA
• Microinsurance plan in India
• Home insurance product in France with renewable energy coverage

Awards & Recognition

• Global Diversity and Innovation Award
• Best in Class recognition by Carbon Disclosure Project
• Bronze-class distinction by SAM
• Clean City Awards

Environmental Metrics

ESG Focus Areas

• Customers
• Environment
• People
• Communities
• Suppliers

Environmental Achievements

• Reduced CO2 emissions from energy consumption by 6.6%
• Reduced water consumption by 1%
• Reduced paper use by 14%
• Recycled 84% of waste
• Maintained status as a carbon neutral insurer

Social Achievements

• Increased investment in community initiatives to £9.6m
• Employee volunteering almost doubled
• 22% of senior management positions held by women
• Maintained position in top 100 employers in Stonewall’s Workplace Equality Index
• Nearly three-quarters of employees rate Aviva as a great place to work

Governance Achievements

• Complied with all relevant legislation and regulation
• Reported annually in line with FORGE guidelines
• Revised and refined Business Ethics Code
• Introduced group-wide whistleblowing system
• Strengthened systems for managing CR risks

Climate Goals & Targets

Environmental Challenges

• Measuring and managing carbon footprint
• Developing new responsible products that stimulate market and incentivize consumers
• Engaging suppliers in corporate responsibility initiatives
• Maintaining customer confidence during economic downturn
• Managing the reduction in roles due to efficiency improvements

Mitigation Strategies

• Continuously improving data collection and reporting methods
• Offering customers choices and incentives to change behaviours (e.g., premium reductions for public transport use)
• Implementing a Supplier Code of Conduct
• Conducting annual global surveys into consumer attitudes
• Providing support to employees affected by role reductions through natural turnover, voluntary redundancies, and internal transfers

Supply Chain Management

Supplier Audits: 30 in the UK; aiming for 100 globally

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Storms
• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Sustainable and responsible investment in renewable energy

Reporting Standards

Frameworks Used: GRI, FORGE, Accounting for Sustainability, UN Global Compact

Third-party Assurance: Corporate Citizenship

Sustainable Products & Innovation

• Pay As You Drive™ car insurance
• Prestige for Property Owners insurance solution
• Aviva Investors European Renewable Energy Fund

Awards & Recognition

• General Insurer of the Year (Insurance Times awards)
• Gold status in BITC’s Corporate Responsibility Index
• Building Public Trust award

Environmental Metrics

ESG Focus Areas

• Trust and transparency
• Climate change and the environment
• Sustainable products
• Attracting and retaining talent
• Developing communities

Environmental Achievements

• Reduced relative CO2 emissions (though absolute emissions increased due to expanded reporting scope)
• Reduced water consumption by 26%
• Reduced waste by 25%
• Increased renewable energy share to 7% of total electricity consumption
• 100% of remaining CO2 emissions offset

Social Achievements

• Increased community investment by £1 million to £12.4 million
• 60,000 hours of employee volunteering
• Street to School program helped over 274,000 street children
• Improved employee perception of Aviva's commitment to CR (79% in favor)

Governance Achievements

• 89% of employees signed off on the Business Ethics Code
• 89% of employees completed Bribery and Corruption training
• Percentage of senior executive remuneration linked to CR KPIs

Climate Goals & Targets

Environmental Challenges

• Reduction in employee engagement and motivation
• Emerging markets failing to understand sustainability risks
• Reduction in reputation and franchise value
• Increased absolute CO2 emissions despite relative reduction
• Maintaining year-on-year carbon emission reductions

Mitigation Strategies

• Created a Sustainability Fund to support energy-saving technologies
• Implemented a 'polluter pays' principle for carbon offsetting costs
• Developed alternative sourcing strategies (e.g., repair over replace)
• Expanded use of telepresence and other communication technologies to reduce travel
• Improved data collection and reporting processes

Supply Chain Management

Supplier Audits: Around 100 major suppliers assessed for corporate responsibility

Responsible Procurement

• Supplier Code of Behaviour
• Legally binding sustainability clauses in supplier contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services
• Investment opportunities in low-carbon markets

Reporting Standards

Frameworks Used: Accounting for Sustainability, UN Global Compact, ClimateWise Principles

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• MDG 1: End poverty and hunger
• MDG 2: Universal education
• MDG 3: Gender equality
• MDG 4: Child health
• MDG 7: Environmental sustainability
• MDG 8: Global partnership

Aviva's CR program supports these goals through various initiatives, particularly Street to School.

Sustainable Products & Innovation

• Insurance cover for low-carbon businesses
• Products encouraging low-carbon vehicle use
• Green Home Power Generation and Green Home Assure products
• Limited mileage motor policy

Awards & Recognition

• Socially Responsible Investments provider of the year
• Pioneer status in Ethibel’s Sustainability Index
• Gold rating in UK Business in the Community CR Index
• Top 10% in Dow Jones Sustainability Index
• Top 5 in FTSE4Good ESG ratings
• Top of Europe’s 300 biggest companies in Europe 300 Carbon Ranking
• 28th overall in Newsweek Green Rankings 2011

Environmental Metrics

ESG Focus Areas

• Environment
• Climate Change
• Community Investment
• Employee Engagement
• Human Rights
• Responsible Investment

Environmental Achievements

• Reduced CO2e emissions by 8% in 2013. Purchased 48% of electricity from renewable sources globally. Offset 100% of unavoidable remaining carbon emissions.

Social Achievements

• Invested £6.2 million in communities (reduction from £11 million in 2012 due to divestments). 41,223 employee volunteering hours. Launched a flexible insurance solution for learner drivers in the UK. Provided low-cost insurance policies in the Indian subcontinent for less than £2 a year.
• 95% of employees accepted the business ethics code (up from 88% in 2012).

Governance Achievements

• Strengthened risk management and audit processes. Improved subsidiary governance. Implemented a new set of values: Create legacy, Kill complexity, Never rest and Care more. Addressed improper allocation of trades in Aviva Investors.

Climate Goals & Targets

Environmental Challenges

• Significant cost reduction impacting workforce. Declines in Italian and Spanish life businesses. Inadequate contribution from Aviva Investors. Adverse weather events impacting general insurance profitability (Canadian floods cost £129 million, UK storms £60 million). Breaches of dealing policy at Aviva Investors.
• High levels of debt acting as a brake on growth. Low interest rate environment. Macroeconomic and geopolitical uncertainty.

Mitigation Strategies

• Group-wide cost reduction program delivered £360 million in savings (out of £400 million target). Increased economic capital surplus from £7.1 billion to £8.3 billion. Increased Group centre liquidity to £1.6 billion. Completed significant disposals in US, Spain, Malaysia, Netherlands, and announced disposal in Italy. Strengthened senior management team with key appointments.
• Comprehensive plan to reduce intercompany loan to £2.2 billion. Intention to call two tranches of bonds with principal of £240 million and coupon above 10%. Focus on improving operational performance, using big data for predictive analytics, and driving efficiency through automation. Implemented measures to improve controls at Aviva Investors and notified relevant regulatory authorities.

Supply Chain Management

Responsible Procurement

• Requesting suppliers disclose human rights policies. Requiring suppliers to commit to ILO core labour standards and uphold the Universal Declaration of Human Rights.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events leading to higher than expected weather-related claims

Transition Risks

• Regulatory changes impacting capital requirements and operations

Opportunities

• Investing in low-carbon economy infrastructure projects

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Third-party Assurance: PricewaterhouseCoopers LLP

Sustainable Products & Innovation

• Aviva Canada’s Green Assure

Awards & Recognition

• Best Protection Provider (Money Marketing), Best Annuity Provider (Professional Adviser), six gold awards (Money Marketing Service), Health Insurance company of the Year, Insurance Times ‘Innovation of the Year’ award for Aviva Drive app, Leadership in Sustainability Award at the Sustainable City Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Investment
• Responsible Investment
• Human Rights
• Employee Well-being
• Sustainable Finance
• Governance

Environmental Achievements

• 53% reduction in CO2e emissions relative to 2010 baseline
• 100% of operational carbon emissions offset annually
• 61% of energy generated or purchased from renewable resources
• £527.5 million of new investment in wind, solar, biomass and energy efficiency

Social Achievements

• Launched market-leading Equal Parental Leave policy in the UK, Ireland, France, Singapore and Canada
• Aviva Community Fund supported 2,400 community projects globally, helping 792,000 people
• £11.9 million community investment
• 48,000 hours of employee volunteering
• 32 products with socially inclusive considerations
• Paid out £34.6 billion in claims worldwide

Governance Achievements

• Updated human rights policy to include modern slavery
• Published first Modern Slavery Act statement
• Reviewed and improved business ethics training
• 99% of employees signed up to Business Ethics Code
• 91.5% of company meetings (AGMs and EGMs) at which Aviva Investors voted

Climate Goals & Targets

Environmental Challenges

• Climate change impacts
• Ageing population
• Low public trust in businesses
• High expectations from customers regarding ethical and sustainable practices
• Modern slavery risks in supply chain

Mitigation Strategies

• Stress testing different climate scenarios
• Low carbon investing
• Supporting environmental products and services
• Reducing operational environmental impact
• Updated human rights policy and published Modern Slavery Act statement
• Supplier Code of Behaviour including human rights and modern slavery

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Behaviour (includes human rights and modern slavery)

Climate-Related Risks & Opportunities

Physical Risks

• Global natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Low-carbon investment opportunities
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Aviva's initiatives align with these SDGs through various programs and investments

Sustainable Products & Innovation

• InsureMyTesla
• Discounts for electric car insurance
• Products enabling customers to be more environmentally responsible

Awards & Recognition

• UN Momentum for Change Lighthouse Award
• Responsible Investor Award 2017 for Innovation and Industry Leadership
• Business Charity Awards
• Corp Comms Awards
• Corporate and Financial Awards

Environmental Metrics

ESG Focus Areas

• Climate change
• Stronger communities
• Sustainable business

Environmental Achievements

• 76% reduction in CO2e in operations since 2010
• £11.7 billion invested in green assets

Social Achievements

• £43 million committed to charitable partners supporting customers and communities during the COVID-19 pandemic
• £11.5 million committed to other local projects

Governance Achievements

• 99% of employees read, understood, and accepted the business ethics code
• Aviva Investors received an A+ grade in the UN Principles of Responsible Investment’s 2020 annual assessment

Climate Goals & Targets

Environmental Challenges

• Climate change
• COVID-19 pandemic
• Financial insecurity
• Funding shortfall in meeting UK infrastructure needs

Mitigation Strategies

• Investment of £10 billion over three years in UK infrastructure and real estate, including social infrastructure, low-carbon infrastructure, and sustainable transition loans
• Support for communities through charitable donations and partnerships
• Implementation of sustainable practices in insurance claims process
• Development of a three-pillar Black Lives Matter action plan to address racial discrimination

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Codes of Behaviour

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, SECR, UN Global Compact

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green or reduced carbon footprint propositions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Stronger Communities
• Sustainable Business

Environmental Achievements

• Reduced operational carbon emissions by 81% since 2010
• Reduced the weighted-average carbon intensity of measurable investments by 16% compared to 2019 baseline
• Invested £7.6 billion in green assets by the end of 2021
• Reduced real estate carbon emissions in portfolio by 37% and energy intensity by 19%
• 100% renewable electricity used in operations

Social Achievements

• Met 2% community investment target and helped 3.5 million people
• New flagship partnership with WWF
• Award-winning COVID-19 response with British Red Cross
• Employees delivered 19,091 hours of volunteering and raised over £1.03 million for good causes
• Aviva Foundation won Best Corporate Foundation at the Business Charity Awards

Governance Achievements

• 99.6% of employees have read, understood and accepted the business ethics code
• Accredited by The Good Business Charter and Good Shopping Guide
• Anti-racism training made required learning for all employees
• 100% of Aviva markets completing human rights due diligence in 2021

Climate Goals & Targets

Environmental Challenges

• Quantifying the impact of climate change is an emerging practice, with inherent uncertainty in the quality of available data. It is challenging to obtain consistent asset data across our entire portfolio and quantify the impact of carbon emissions from our Scope 3 category financial investments.
• Tackling carbon emissions within our investments and insurance (Scope 3) is the most material area where Aviva will drive and support action.

Mitigation Strategies

• Made several methodology improvements in 2021 and will continue to enhance our capabilities in line with industry developments and standards.
• Developed an engagement escalation programme to challenge the 30 largest emitters in our investments, responsible for 30% of global emissions, to deliver positive climate transition action, or we will withdraw our capital.
• Set a target for a reduction in the weighted- average carbon intensity of our investments of 25% by 2025 and by 60% by 2030.

Supply Chain Management

Supplier Audits: 99% of registered suppliers have agreed to the Supplier Codes of Behaviour

Responsible Procurement

• Supplier Code of Behaviour

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: The Good Business Charter, Good Shopping Guide

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• 7
• 11
• 12
• 13

Elements of our work impact each of the SDGs, but we focus our efforts on those which have the most current and potential impact.

Sustainable Products & Innovation

• ESG Profiler tool
• Sustainable Transition range of funds

Awards & Recognition

• Good Shopping Guide Ethical Company Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Sustainable Investments

Environmental Achievements

• Achieved a 50% reduction in Aviva’s Scope 1 and Scope 2 operational emissions compared to 2019 baseline.
• 100% of 2022 electricity used by Aviva’s operations was from certified renewable sources (RE100).

Social Achievements

• Hosted second supplier summit in November 2023 with over 100 supply chain partners.
• Launched Aviva Zero motor product in the UK, selling over 500,000 policies since launch in 2022 (emissions offsetting).

Governance Achievements

• Aviva plc appointed PricewaterhouseCoopers LLP (‘PwC’) to provide independent assurance over certain climate metrics.
• LTIP awards granted in 2023 included a climate performance metric (7.5% weighting).

Climate Goals & Targets

Environmental Challenges

• Uncertainty of government policy impacting energy policies and causing supply chain disruption.
• Challenges in measuring Scope 3 emissions, particularly "Scope 3 of 3" (customers, investees, suppliers) due to data limitations and lack of sophisticated data.
• Data limitations and methodological gaps in reporting on financed emissions associated with investments managed under discretionary mandates.

Mitigation Strategies

• Engaging with clients and developing products/solutions to enable emissions reduction among clients.
• Advocating for data quality improvements and more certainty towards accounting guidance.
• Using macro and micro stewardship activities to address challenges related to accounting of Scope 3 of 3 emissions.

Supply Chain Management

Responsible Procurement

• Working with suppliers to promote Science-Based Targets (SBTs).

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and intensive storms, extreme heat and cold, floods, droughts and fires.
• Chronic gradual impacts such as higher than average temperatures, rises in sea levels and the spread of vector-borne diseases.

Transition Risks

• Reduction in returns from investments in highly carbon-intensive companies.
• Disruption to the general insurance market due to changes in transportation and energy.

Opportunities

• Enhanced returns on investments aligned with the transition to a low-carbon economy.
• Development of climate-conscious insurance products and services.

Reporting Standards

Frameworks Used: TCFD

Certifications: RE100

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

Sustainable Products & Innovation

• Aviva Zero motor product (emissions offsetting)
• Standalone insurance products covering EV charging points
• Renewable energy insurance offering (including offshore wind)
• Parametric insurance cover pilot for excess rain (Canada).