ENVIRONMENTAL RESPONSIBILITY

IAG has a relatively minimal impact on the environment, so it is important that we look at the areas in which we can make a difference.

• paper use;
• fuel use;
• air kilometres travelled;
• electricity use;
• recycled co-mingled waste; and
• CO² emissions.

CO² emissions are the most significant performance indicator, as they provide a snapshot of our overall environmental performance. Combining all other environmental indicators (excluding recycled co-mingled waste) determines our overall CO² emissions.

Our performance on CO² emissions is also important because of our strong public position on climate change, and the detrimental impacts that increased CO² emissions will have on the global economy and society.

	IAG's environmental commitment
	IAG carbon neutral
	Managing our impacts
	Offering green products and services
	Advocating for the future

IAG's environmental commitment

IAG recognises that economic development needs to be aligned with the health and well being of people, their communities and the environment. We consider that it is fundamentally sound business management for a company to address its social and environmental performance as well as economic performance.

In this context the pursuit of best environmental practice makes commercial sense. In doing so, we ensure we recognise the need to fulfil our ongoing legal requirements relating to environmental protection while actively supporting increased environmental awareness and positive actions. Where possible, we aim to exceed regulatory requirements so we can deliver a standard of excellence in meeting our environmental responsibility wherever we operate.

Environmental issues are a challenge for all companies in all sectors. We believe that the insurance industry plays a significant role in managing and reducing environmental risks alongside governments, individuals and organisations.

The people of IAG have skills and techniques in understanding uncertainty, identifying and quantifying risk, and responding to risk. These are core strengths in approaching environmental problems and we aim to deploy them to support society achieve better environmental objectives.

We are committed to sharing our experience in assessing complex risks as a contribution to the accumulation of the knowledge and the generating of solutions needed for environmental protection.

We have publicly acknowledged this commitment in becoming a signatory to the United Nations Environment Programme's Finance Initiative, which requires environmental commitment and stewardship from our Group.

Environmental commitment (83kb .pdf)

BACK TO TOP

IAG carbon neutral

IAG has announced its intention to be carbon neutral across its global operations within five years.

Media release (28kb .pdf)

IAG has been a strong advocate on the need for immediate action on climate change. IAG believes climate change is one of the most significant risks currently facing the community, with the increase in catastrophic weather related incidents representing a financial risk to customers.

In going carbon neutral, IAG will calculate the carbon dioxide emitted (from our operations) in tonnes of CO² and at the end of the proposed reduction period, purchase the equivalent tonnes of carbon offsets to neutralise the carbon impact.

IAG has already taken the first step by clearly identifying the existing emission profile of IAG's operations as set out in the Group's 2006 sustainability report.

The next step is to look at areas of the business where further emission reductions can be achieved and implement the necessary changes. In 2006 IAG achieved a 6% reduction in overall carbon emissions across its Australian and New Zealand operations. Hybrid cars now make up 20% of IAG's fleet and in Australia the entire NRMA Insurance fleet is carbon offset.

IAG also provides information and support for its employees and customers to reduce their own personal carbon emissions.

In addition, IAG believes that the social and economic impacts of climate change can be reduced in a society that has greater resilience to changed climate conditions. We therefore consider that adaptation to the changing climate is a crucial component of the response to climate change.

On a business specific level, work being undertaken within IAG is already underway to assist and improve adaptation in the longer term. IAG recognises that it is in our business interest to reduce the risk from bottom line perspective, while at the same time improving society's adaptation to weather events.

BACK TO TOP

Managing our impacts

IAG's environmental impacts are managed through divisional targets which reflect the different growth imperatives of IAG's different operations. These allow for divisional differences to be accommodated and for areas of greatest impact and influence to be identified accordingly.

Managers are provided with monthly reports that illustrate their teams' environmental performance. The reports allow our managers to monitor their teams' environmental performance against targets, and to take specific steps to improve it.

Results of our environmental performance are detailed in the annual sustainability report.

BACK TO TOP

Offering green products and services

Manufacturing and distributing insurance products results in limited direct environmental impact. However, we can and do have an influence over our customers' behaviour and offer guidance through initiatives such as Climate Help, an online tool that allows customers to offset the greenhouse emissions associated with using their car.

The way we interact with our customers also has an impact on our environmental footprint, and we have introduced programs to reduce the paper consumption associated with the printing of policies and brochures.

BACK TO TOP

Advocating for the future

The risk of climate change is a significant and growing issue for IAG, and is one of the biggest issues facing our industry. If we help reduce the risk of climate change we can reduce the number of claims. If we keep claims costs down we can also keep premiums affordable, and that means we stay in business.

IAG actuaries provide sophisticated risk analysis including climate modelling focused on reducing the risk of climate change for our customers and our business. We are able to develop best estimates of today's weather risks using historical weather data and climate modelling simulations.

These computer climate models simulate the climate for many years on a global scale. They have the added benefit of simulating today's climate, where greenhouse gas concentrations are held constant at today's levels; or simulating a possible future climate, where the greenhouse gas concentrations can be slowly adjusted to reflect future emissions projections.

Armed with this research, we aim to educate our customers and the broader public on the risks that climate change poses to our communities.

In 2006, we formed the Australian Business Roundtable on climate change with five other Australian businesses and a leading non government organisation (NGO) and published 'The Business Case for Early Action'. This report illustrates that, if action on climate change is delayed, it becomes more expensive for business and the wider Australian economy to reduce greenhouse gas emissions.

The report supplements previous research reports that IAG has released on climate change, including 'The impact of climate change on insurance against catastrophes' and 'Climate change solutions for Australia', which IAG contributed to as part of the Australian Climate Group.

We have also contributed to industry research such as the Emerging Risk Initiative, which is a think tank of Chief Risk Officers working to improve risk management. In New Zealand, we sponsor WWF New Zealand's climate change campaign and have brought climate change and natural disaster seminars to our broker business partners.

We will continue to work with our customers, employees and other stakeholders to raise awareness about climate change and how we can all reduce the risk of its impacts.

BACK TO TOP