Welcome to IAG’s third sustainability report, which provides information on IAG’s social, environmental and economic performance from 1 July 2005 to 30 June 2006 (unless otherwise stated).

The report provides performance data on our Australian and New Zealand businesses, and for the first time includes case studies from our Asian operations. It is the companion document to IAG’s Annual Report. Our New Zealand operations will also be releasing a site-specific sustainability report later in the year.

This report details how IAG’s day-to-day operations and approach to business help drive long-term, sustainable value. At IAG, being a sustainable business means being a successful business over the long-term. Sustainability is not a program or a corporate initiative. It is at the core of everything we do.

Our purpose and values are described in detail in this report as they inform and underpin our sustainable business performance. Our purpose was formed in response to one question: what do we need to do to ensure we are around in the future? Those four things are paying claims, understanding and pricing risk, managing costs and reducing risk.

Our purpose is our fundamental reason for being. It guides and inspires all our actions, and reminds us we need to think about more than the short term imperative of making a profit. This report offers a one-year perspective on how we are progressing towards fulfilling our purpose. We recognise that it is something we will continue to strive for, and it will influence how we operate and respond to shifting economic and cultural landscapes in the future.

The key to becoming and remaining a sustainable business is serving the interests of our customers, our employees, our suppliers, the communities we work within and our shareholders. This report details how we balance these stakeholder interests and incorporate them into our operations.

This year the report is focused on our employees. Our employees play a critical role in ensuring we are a sustainable business. We know through our annual employee survey that, if our employees are engaged, they will go above and beyond to help our customers, participate in helping reduce risk in the organisation and the wider community, and drive innovation and efficiency.