Achievements
IAG received widespread recognition for its comprehensive community investment program during the year. Following a nomination in 2003/04, IAG won the "Services to the Community Award" at the Australia and New Zealand Insurance Industry Awards in July 2004. As well, the Group was a finalist in the Australian Financial Review magazine's Corporate Partnership Awards for the partnership with St John, and for strategic community investment, as well as a finalist for the Australian Business Arts Foundation's Caliburn Corporate Strategy Award. The Prime Minister's Community Business Partnership Awards for Excellence in Business Partnerships awarded the Group a Judges Special Commendation for the partnership with St John and in late 2004 it will be determined if IAG is successful in the Special Award for Impact on the Community. IAG is grateful to its community partners for contributing to its success in these fields.
With such a large number of policies, the Group's paper-based communications have a significant impact on the environment. While it is understood that customers may need to see hard copies of policies and schedules, the company is working at reducing this impact where possible. "Project Novus" is one example of how IAG has reduced paper use for communicating with customers. Through this project IAG will use approximately seven million fewer sheets of paper per year- around 2,275 trees - and will cut production and delivery costs by around $1 million per year. Paper weight has been reduced and layout of policies closely examined to minimise wastage.
IAG's network of internal Sustainability Champions network has delivered some excellent business-unit sustainability initiatives. This group of enthusiastic sustainability supporters have been key drivers of change, establishing internal recycling programs, offering tips for reducing environmental impacts in the home, tying environmental performance to personal performance plans and identifying environmental and safety initiatives to be considered by the organisation. The team has been a key force in improving sustainability performance for the company.
Challenges
The community's financial literacy, ability to make informed and effective financial choices, has a significant impact on the insurance sector. IAG accepts its responsibility to society - and to the industry - to improve people's understanding of both insurance and the Group's role in helping to manage risk. In 2004/05, IAG will work towards improving community awareness and understanding of financial information and mitigating risk. The first step in this process will be a community education campaign run in conjunction with the education system and external stakeholders.
IAG has chosen "sustainability" to describe its goal to improve its social, environmental and economic impacts. Employee focus groups have indicated that most associate sustainability with recycling paper, planting trees or other "green" initiatives. In 2004/05 a communications and change-management strategy will be embarked on to better educate IAG employees on the broader value of sustainability at IAG and motivate involvement.
IAG has found the supply of high quality, affordable recycled paper difficult to source. Like many Australian companies that recognise the business and community benefits of sustainability, IAG at times struggles to find balance between the needs of stakeholders and the needs of the environment. This report is printed on recycled paper, locally made from 100% recycled paper and board. IAG representatives have visited the mill to ensure they were pleased with how the mill is being run and commenced constructive dialogue with the paper suppliers to help meet the Group's future needs. IAG hopes that the Australian market for such paper develops a broader range of options.
indicates that KPMG has provided assurance on the figures. For more information please see the Assurance statement.