CREATING SHARED VALUE

STRONGER

When people are safer they create businesses and communities that are stronger.

DRIVING A STRONG ORGANISATIONAL CULTURE

A strong organisational culture is key to building our capacity to rapidly adapt to the changing dynamics of our customers, markets and the future of work. We believe culture is formed through the formal and informal messages our people receive about what is expected of them when they work here. In a time of ongoing organisational change, we must continue to build trust in our organisation by being authentic and transparent in the way we communicate.

We have evolved our measurement to include a bi-monthly Culture Dashboard which provides a regular measure of culture by team. We acknowledge that our culture is not where it needs to be and we are working to improve constructive styles through a focus on leadership effectiveness, providing a greater sense of role clarity and being more transparent in our communications.

Our Leading@IAG program will help us to focus less on hierarchy and more on relationships and accountability, and we hope to strengthen culture through stronger connections to each other, our customers and our communities.

OUR APPROACH TO DIVERSITY, INCLUSION & BELONGING

We believe diversity, inclusion and belonging will help us achieve our strategy and purpose. Diversity of thought opens our minds to new perspectives, while greater representation of the communities we serve supports our focus on customers. An inclusive society creates a strongly connected and safer community and workplace.

We have a commitment to increase the number of women in senior management to 40% in Australia and New Zealand, and 30% in Asia, by 2020. Currently, women hold 33.7% of senior management roles across IAG and we recognise we have work to do to achieve our goal.

Our efforts this year were assisted by our Kids@IAG school holiday program, our Celebrating Women@IAG community of support, and contributions to female advocacy organisations such as Chief Executive Women.

We believe flexible work arrangements can boost performance and remove barriers to workforce participation, and recently piloted working from home in several Australian call centre environments. We now have more than 700 customer-facing employees working flexibly.

Our focus on equity recognises that people come from different places and we might need to treat people differently to ensure they have what they need to thrive and succeed. Our commitment is supported by our Diversity Network Advisory which enables a more strategic approach to embedding diversity, and our Employee Network Resource Groups, which offer support around areas such as families, mental health, domestic and family violence and LGBTIQ+ issues.

We are continuing to work to achieve the commitments we made in our 2015 Reconciliation Action Plan. We appointed an Indigenous Engagement Partner to drive our commitment to achieve 1.5% Indigenous employees in our Australian workforce by November 2018, and four of our Indigenous CareerTrackers interns moved into permanent roles at IAG.

HELPING THE COMMUNITIES IN OUR REGION ADAPT AND RESPOND TO CLIMATE CHANGE

Climate change poses a significant challenge to the insurance industry and our communities, given its impact on the frequency and severity of extreme weather events that increase loss and damage; claims costs; and the a ordability and accessibility of insurance.

We are using our position as Australia’s and New Zealand’s largest general insurer to help communities understand and manage the challenges they face from climate change. We are committed to supporting a longer term view on the risk posed by natural perils and will seek opportunities to work with governments to enhance mitigation and adaptation.

We reaffirmed our support of the Paris Agreement by refreshing our Public Policy Position on Climate Change, and we subsequently developed a new action plan for the business which will be released in the coming year.

Our in-house natural perils experts help us to understand changes in climatic conditions to signal risk responsibly, remain commercially sustainable and find new ways where we can help our customers and communities be safer and more resilient.

Recently, we launched a national mapping tool – At What Cost? – using our knowledge to promote better understanding of the social and economic costs faced by communities impacted by natural perils. We know that better planning and investment in infrastructure can reduce risk exposure and build safer, more resilient communities.

Through forums such as the Australian Business Roundtable for Disaster Resilience & Safer Communities, Resilient New Zealand and 100 Resilient Cities, we work with businesses, community organisations and government to influence change in public policy to support investment that reduces exposure and improves resilience to natural peril events.

We have maintained our commitment to carbon neutrality and continue to look for opportunities to reduce our carbon footprint. Last year we set a target to reduce our Scope 1 and 2 emissions by 10% by 2020. Our commitment to achieve a 10% reduction in CO₂e by 2020 relates to Scope 1 tonnes CO₂e from tool of trade vehicle fuel and building refrigerants, and Scope 2 tonnes CO₂e from electricity. We have already reached this target, reducing in scope emissions by 28% since 2015 (our baseline year), and we are working on a revised target which we will release in the 2018 financial year.

Our long term challenge is to help customers and partners in our value chain minimise their environmental impacts, and we will focus on this in our updated action plan.

SUPPORTING AGRIBUSINESS RESILIENCE

We recognise the importance of farm productivity and economic stability in rural communities and the impact that volatile climatic conditions are having on crop production. In partnership with Landmark, we are piloting multi-peril Crop Income Protection cover to help protect farmers against a reduction in yield caused by events such as flood, frost and drought.

STRONGER – Our objective	Our commitment	Measure	Progress
Realising the benefits of a diverse and inclusive workforce	Increase the number of women in senior management to 40% in Australia and New Zealand, and 30% in Asia, by 2020 Status:	% women in senior management	33.7% women in senior management roles across IAG (up from 32% in 2016) Australia – 34.6% New Zealand – 37.8% Asia – 22.9%
	Increase Aboriginal and Torres Strait Islander employment to represent 1.5% (approximately 130 employees) of the Australian workforce by November 2018 Status:	Number of Aboriginal and Torres Strait Islander employees	Current focus on measurement and understanding our baseline for the diversity of our workforce, which includes number of Indigenous employees Established strategic partnership with an Indigenous recruitment supplier
Continuous improvement in environmental performance	10% reduction in Scope 1 and 21 CO2e by 2020 (2015 baseline) Status: Maintain carbon neutrality commitment Status:	Tonnes CO2e Carbon neutral status	28% reduction in Scope 1 and 21 CO2e since 2015 Retired carbon offsets to achieve carbon neutrality
Demonstrating leadership through our sphere of inffluence	Develop and implement an IAG Procurement Policy and Supplier Management Framework Status: Work with our supply chain and partners to minimise environmental impacts and enhance social outcomes/resilience Status:	Active and effective IAG Procurement Policy and Supplier Management Framework	Implemented Group Procurement Policy which includes purchasing principle related to social and environmental sustainability Supplier Management Framework developed and being piloted 38% (11/29) exclusive repairers accredited to EcoSmash platinum (40% (8/20) in FY16)
	Increase the number of Aboriginal and Torres Strait Islander Supply Nation suppliers used across IAG to 12 by December 2018 Status:	Number of Aboriginal and Torres Strait Islander suppliers	Twelve Aboriginal and Torres Strait Islander suppliers have been engaged, ranging from one-off purchases (events) to ongoing relationships

¹ Scope 1 and Scope 2 tonnes CO₂e from electricity, vehicle fuel from tool of trade vehicles and building refrigerants.

For our commitments, the following symbols illustrate progress: ACHIEVED   SIGNIFICANT PROGRESS   IN PROGRESS  SOME PROGRESS