CREATING SHARED VALUE
Stronger
When people are safer they create businesses and communities that are stronger. We continue to focus on building a strong organisational culture to enable us to deliver on our purpose, be agile and innovative, and respond to increasing stakeholder expectations of ethical conduct and transparency. We are collaborating to co-design solutions that mitigate against climate change and build more resilient communities.
EMBRACING A STRONG, DIVERSE AND INCLUSIVE ORGANISATIONAL CULTURE
We are expanding our thinking around diversity, focusing on opportunities for greater inclusion and a philosophy of ‘bringing your whole self to work’. We acknowledge we still have a way to go to achieve this, and have established new positions and governance structures to support our efforts. We have also continued our focus on gender pay equity by identifying contributing factors which we are seeking to address.
We have continued to develop our people to improve our organisational agility and resilience. We introduced Purposeful and Inclusive Leadership programs and had eight employees complete Jawun secondments with Indigenous community organisations. We also supported ten IAG leaders to participate in the Kokoda trail walk in Papua New Guinea, raising over $130,000 for the IAG Foundation’s partner, Lifeline.
Last year we launched our second Reconciliation Action Plan (RAP), moving to a Stretch RAP that deepens our commitment to the empowerment of Aboriginal and Torres Strait Islander people, businesses and communities. More than 3,100 IAG employees have completed our online Indigenous cultural awareness training and we are promoting opportunities to use Indigenous suppliers within our business through Supply Nation (http://iagindigenous.com.au).
1 Ratios are based on Australia and New Zealand employees only
OUR COMMITMENT TO MINIMISING THE IMPACT OF CLIMATE CHANGE
Climate change is increasing the frequency and severity of extreme weather events and natural disasters, and these changes are projected to become more severe as the climate continues to warm. We support the 2015 Paris Agreement to limit the global average temperature rise to well below two degrees. We have refreshed IAG’s position on climate change to reflect these developments and this is available in the Shared Value area of our website (www.iag.com.au).
GROUP EMISSIONS PROFILE (TONNES ‘000 CO2E) / FTE
COLLABORATING TO BUILD COMMUNITY RESILIENCE
Building resilience to severe weather events is vital for our business and the communities in which we operate. IAG recently partnered with the Cyclone Testing Station at James Cook University (JCU) and Suncorp to study the impact of tropical cyclones on strata properties in North Queensland, building on our previous work providing strata assessments to customers in this region. By sharing our claims data with JCU we will provide designers, builders and insurers with a better understanding of the common drivers of claim costs during cyclones to help build resilience in affected communities.
IAG HAS A HISTORY OF ACTING ON CLIMATE AND WEATHER-RELATED RISKS AS OUTLINED IN THE DIAGRAM BELOW AND ON OUR WEBSITE
Dedicated natural perils team informs underwriting risk
Research on disaster risk & resilience through the Australian Business Roundtable1
Coalitions, research and submissions to influence policy and help make communities more resilient
Carbon neutral since 2012
Absolute carbon emission reduction target of 10% (by 2020)
Help customers recover from natural disasters
Products to help customers minimise their impact (e.g. we underwrite Cleantech Insurance)
Support our smash repairers to achieve EcoSmash environmental accreditation
Building disaster preparedness and resilience through partnerships
1 Australian Business Roundtable for Disaster Resilience & Safer Communities
| STRONGER - OUR OBJECTIVE | MEASURE | OUR COMMITMENT | PROGRESS |
|---|---|---|---|
| Realising the benefits of a diverse and inclusive workforce | % of women in senior management | Increase the number of women in senior management to 40% in Australia and New Zealand and 30% in Asia by 2020 | Pay equity review completed New women in senior management targets endorsed Inclusive Leadership program cascaded across the business Commenced Work Flex pilot in a number of divisions |
| Number of Aboriginal & Torres Strait Islander employees | Increase Aboriginal & Torres Strait Islander employment to represent 1.5% (approx. 130 employees) of the Australian workforce by November 2018 | Transitioning our CareerTrackers university interns into permanent roles Contracted recruitment agencies to source and attract Indigenous candidates |
|
| Continuous improvement in environmental performance | Carbon neutral status Tonnes CO2e | Maintain carbon neutrality commitment 10% reduction in CO2e by 2020 (2015 baseline) |
Purchased and retired carbon offsets to offset Group carbon footprint Continued our work on energy efficiency and developed a Group carbon reduction target |
| Demonstrating leadership through our sphere of influence | Active and effective IAG Procurement Policy and Supplier Management Framework | Develop and implement an IAG Procurement Policy and Supplier Management Framework Work with our supply chain and partners to minimise environmental impacts and enhance social outcomes/resilience |
Verbally briefed Corporate Partnering Forum on plan for Procurement Policy and Supplier Management Framework 40% of exclusive repairers accredited to EcoSmash platinum |
| Number of Aboriginal & Torres Strait Islander suppliers | Increase the number of Aboriginal & Torres Strait Islander Supply Nation suppliers used across IAG to 12 (both Tier 1 and Tier 2) | Eight Aboriginal & Torres Strait Islander suppliers currently engaged Indigenous Supplier Diversity Strategy Working Group established and strategy drafted Tender templates updated to identify Aboriginal & Torres Strait Islander respondents |