GLOBAL REPORTING INITIATIVE

The Global Reporting Initiative (GRI) provides a globally applicable framework in the form of guidelines that set out economic, social and environmental indicators for organisations to report against.

Our 2008 online reporting has been prepared using the GRI G3 Guidelines. It represents a balanced and reasonable presentation of our organisation's economic, environmental and social performance.

We have also used the GRI Financial Services Sector Supplement: Social Performance and the GRI Financial Services Sector Supplement: Environmental Performance to develop the online reporting content. All G3 based reports must self declare the level to which they have applied the GRI reporting framework—their 'Application Level'.

Our reporting applies the GRI reporting framework to a B+ application level, which means that we have demonstrated robust sustainability reporting and well developed reporting systems based on the GRI G3. We have provided an explanation about any core indicators that we have not reported against. All GRI indicators are listed in the GRI index.

The data and information referred to in the GRI index have been independently assured by Net Balance Management Group (NBMG) and the financial information has been independently audited by KPMG. Please refer to the assurance section of this website for NBMG's assurance statement and to our annual report 2008 for the KPMG assurance statement.

Adherence to the GRI requirements are marked as a 'C' for Conformance;
'PC' for Partial Conformance; and a 'NR' for Not Reported.
'NA' is used when as issue is Not Applicable and 'GRI only' is used for indicators that are reported only in this index.

Standard disclosures
Performance indicators
Financial services sector supplement


Standard disclosures

GRI indicator Status Comments

Strategy and profile

1.1 Statement from the most senior decision maker of the organisation. C CEO statement (in annual review 2008).
1.2 Description of key impacts, risks and opportunities. C Key impacts, risks and opportunities.

Organisational profile

2.1 Name of the organisation. C About IAG.
2.2 Primary brands, products, and/or services. C Our brands.
2.3 Operational structure of the organisation. C Our brands.
2.4 Location of organisation’s headquarters. GRI
only
IAG’s headquarters are located at
388 George Street,
Sydney NSW, 2000 Australia.
2.5 Number of countries where the organisation operates. C About IAG.
2.6 Nature of ownership and legal form. C History.
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). C Our brands.
2.8 Scale of the reporting organisation. C Annual report 2008;
indicators.
2.9 Significant changes during the reporting period regarding size, structure, or ownership. C Annual report 2008.
2.10 Awards received in the reporting period. C Our awards.

Report profile

3.1 Reporting period (eg, fiscal/calendar year) for information provided. C 2008 performance.
3.2 Date of most recent previous report (if any). C Report is produced annually. See other reports.
3.3 Reporting cycle (annual, biennial, etc). C We report annually. See 2008 performance.
3.4 Contact point for questions regarding the report or its contents. C 2008 performance.

Report scope and boundaries

3.5 Process for defining report content. C 2008 performance;
stakeholder engagement;
Advisory Committee.
3.6 Boundary of the report. C 2008 performance.
3.7 State any specific limitations on the scope or boundary of the report. C Detailed throughout.
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations. C Detailed throughout.
3.9 Data measurement techniques and the bases of calculations. C Detailed throughout;
glossary.
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement. C Detailed throughout;
glossary.
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. C Detailed throughout;
glossary.

GRI content index

3.12 Table identifying the location of the Standard Disclosures in the report. C GRI Index.

Assurance

3.13 Assurance. C Assurance.

Governance

4.1 Governance structure of the organisation. C Corporate governance.
4.2 Indicate whether the Chair of the highest governance body is also an executive officer. C Board of directors.
4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non executive members. C Board of directors.
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. C Annual report 2008;
stakeholder engagement.
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organisation’s performance (including social and environmental performance). C Stakeholder engagement;
annual report 2008;
corporate governance.
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. C Corporate governance.
4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organisation’s strategy on economic, environmental, and social topics. PC Nomination, Remuneration & Sustainability Charter;
corporate governance.
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. C Our commitment.
4.9 Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance. C Corporate governance.
4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. C Corporate governance.

Commitments to external initiatives

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation. C Risk management.
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses. C Benchmarking;
GRI Index.
4.13 Memberships in associations. C Stakeholder engagement.

Stakeholder engagement

4.14 List of stakeholder groups engaged by the organisation. C Stakeholder engagement.
4.15 Basis for identification and selection of stakeholders with whom to engage. C Stakeholder engagement.
4.16 Approaches to stakeholder engagement. C Stakeholder engagement;
Advisory Committee.
4.17 Key topics and concerns that have been raised through stakeholder engagement. C Stakeholder engagement;
Advisory Committee.

Performance indicators

GRI indicator Status Comments
Economic performance indicators
EC1 Direct economic value generated and distributed. C Annual review 2008;
Five year financial performance.
EC2 Financial implications and other risks and opportunities for the organisation's activities due to climate change. PC Key impacts, risks and opportunities.
EC3 Coverage of the organisation's defined benefit plan obligations. GRI
only
We will aim to investigate this indicator in 2009.
EC4 Significant financial assistance received from government. GRI
only
No significant financial assistance was received from government.
EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation. GRI
only
We will aim to investigate this indicator in 2009.
EC6 Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation. PC Stakeholder engagement.
EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation. GRI
only
When recruiting for positions we advertise internally and externally as necessary. External advertising for roles in regional centres includes local papers and on regional job search websites. We have not reported the proportion of senior management hired from the local community.
EC8 Development and impact of infrastructure investments and services. NA IAG does not provide funds for these kinds of developments.
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. PC Case studiesinsurepink;
supplier sustainability screening;
setting the standard across Direct Insurance;
helping customers in severe weather;.
Environmental performance indicators

Strategy and profile

EN1 Materials used by weight or volume. PC Indicators.
EN2 Percentage of materials used that are recycled input materials. PC Indicators.
EN3 Direct energy consumption by primary energy source. C Indicators.
EN4 Indirect energy consumption by primary source. C Indicators.
EN5 Energy saved due to conservation and efficiency improvements. PC

Indicators.

Case studies—green buildings.
EN6 Initiatives to provide energy efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. PC Key impacts, risks and opportunities;
case studies—green insurance innovation New Zealand.
EN7 Initiatives to reduce indirect energy consumption and reductions achieved. C Key impacts, risks and opportunities;
Indicators.
EN8 Total water withdrawal by source. PC We will report our Australian consumption in 2009. See indicators commentary.
EN9 Water sources significantly affected by withdrawal of water. GRI
only
We will aim to investigate this indicator in 2009.
EN10 Percentage and total volume of water recycled and reused. GRI
only
We will aim to investigate this indicator in 2009.
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value. NA IAG's operations do not impact on areas of high biodiversity value.
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. NA IAG's activities, products and services do not impact on areas of high biodiversity value.
EN13 Habitats protected or restored. PC Case studies—volunteering.
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. PC Our commitment.
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. NA IAG's operations do not impact on habitats with IUCN Red List species and national conservation list species.
EN16 Total direct and indirect greenhouse gas emissions by weight. C Indicators.
EN17 Other relevant indirect greenhouse gas emissions by weight. GRI
only
We have reported on all of our largest known emission sources. We are currently investigating other sources of our indirect emissions e.g. those produced from landfill waste (indicators).
EN18 EInitiatives to reduce greenhouse gas emissions and reductions achieved. PC Key impacts, risks and opportunities;
Case studies—green buildings;
Earth hour;
Every step counts.
EN19 Emissions of ozone depleting substances by weight. NR As a financial institution IAG does not directly produce significant amounts of ozone depleting substances or other significant emissions such as SOx and NOx.
EN20 NO, SO, and other significant air emissions by type and weight. NR See EN19 for more information.
EN21 Total water discharge by quality and destination. NA As a financial institution we do not have any significant discharges to water.
EN22 Total weight of waste by type and disposal method. C Indicators.
EN23 Total number and volume of significant spills. NA As a financial institution we do not have significant spills.
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous. NA We do not have any hazardous waste.
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by discharges of water and runoff. NA As a financial institution we do not have any significant discharges to water.
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. PC

Key impacts, risks and opportunities;
environmental responsibility;
Case studies—green product innovation in New Zealand;
rethinking regulation;
replace, remove, recycle.

EN27 Percentage of products sold and their packaging materials that are reclaimed by category. NR IAG does not produce physical products.
EN28 Monetary value of significant fines and total number of non monetary sanctions. GRI
only
There were no known sanctions for non compliance imposed on IAG in 2008.
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organisations operations, and transporting members of the workforce. NR IAG does not generate significant environmental impacts through transportation of its products and services. IAG does not measure the environmental impacts of workforce transport.
EN30 Total environmental protection expenditures and investments by type. GRI
only
Our environmental protection expenditures have included the costs of disposing our waste and carbon credits purchased in association with the carbonators program. We will aim to investigate reporting the value of these in 2009.
Social performance indicators

Human rights

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. PC Key impacts, risks and opportunities—investment.
HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. PC We are investigating reporting our % strategic operational suppliers in 2009. See indicators and supplier sustainability screening case study.
HR3 Total hours employee training on policies and procedures concerning human rights. PC Code of Ethics.
HR4 Total number of incidents of discrimination and actions taken. GRI
only
There were three incidents of discrimination during the reporting period that were lodged with an external organisation. All of the complaints were investigated internally in order to determine whether there was any evidence to support the complaints. Whilst the matters were lodged in the reporting period, a settlement will be reached in the 2009 reporting year.
HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. GRI
only

Freedom of association is protected by the Workplace Relations Act 1996 (in Australia) and the Employment Relations Act 2000 (in New Zealand) which mandate not only that employees are free to join a union but also that they should not suffer detriment because of their membership of a trade union.

IAG's Code of Ethics specifically refers to the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, which includes freedom of association.

In addition, the IAG Enterprise Agreement also contains a number of clauses broadly relevant to the exercise of freedom of association.
HR6 Operations identified as having significant risk for incidents of child labour. GRI
only
Over the reporting period IAG had no known incidents of child labour. We operate under the requirements of local legislation in this area.
HR7 Operations identified as having significant risk for incidents of forced or compulsory labour. NR Over the reporting period IAG had no known incidents of forced or compulsory labour. We operate under the requirements of local legislation in this area.

Labour practices and decent work

LA1 Total workforce by employment type, employment contract, and region. C Indicators.
LA2 Total number and rate of employee turnover by age group, gender, and region. PC Indicators.
LA3 Benefits provided to full time employees that are not provided to temporary or part time employees. PC Full time and part time employees receive and have access to the same benefits. See our people.
LA4 Percentage of employees covered by collective bargaining agreements. C Indicators.
LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements. GRI
only

Notice periods in the instance of operational change are set out in the Insurance Australia Group Enterprise Agreement (EA) 2003. It provides that for employees with less than 25 years service will receive 8 weeks' notice of retrenchment (or payment in lieu) while employees who are either over 45 years of age or have over 25 years service will receive 12 weeks' notice (or payment in lieu).

The IAG EA also contains provisions regarding consultation with employees and/or the Finance Sector Union (FSU) regarding any change program which will impact on employees or on their working arrangements.
LA6 Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programs. PC See our Charter for Health, Safety and Security.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region. C Indicators.
LA8 Education, training, counseling, prevention, and risk control programs in place to assist workforce members, their families, or community members regarding serious diseases. GRI
only
HIV and AIDS and other communicable diseases are not material risks in our areas of operation. However, we provide a range of services for our staff to mitigate e.g. RSI and stress. These include EAP, and Occupational Health and Safety training.
LA9 Health and Safety topics covered in formal agreements with trade unions. GRI
only
The IAG Enterprise Agreement (IAG EA) which the Finance Sector Union is a party, contains a specific commitment to a safe workplace (see clause 1.2.5). The IAG EA refers to IAG's Charter for Health, Safety and Security and additional occupational health and safety policies that apply at IAG.
LA10 Average hours of training per year per employee by employee category. PC We have a wide range of training available to all our employees, see our people. We will aim to investigate measuring this indicator in 2009.
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. GRI
only
    IAG offers its employees the following initiatives which are provided for in both the IAG Enterprise Agreement or through policy:
  • external study support;
  • internal training/learning and development programs;
  • career breaks;
  • create retirement seminars for those approaching retirement;
  • retrenchment outplacement services; and
  • severance pay.
LA12 Percentage of employees receiving regular performance and career development reviews. GRI
only
100%. Organisation policy requires all parts of the business and all categories of employees to follow a standardised performance appraisal process know as "Planning Your Success".
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. PC

Indicators;
our people.

LA14 Ratio of basic salary of men to women by employee category. C

Indicators.

Society indicators

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. GRI
only
    In assessing and selecting the location and positioning of our offices we have considered:
  • the location and concentration of IAG members and participating employers;
  • the age and business demographics of the areas being considered; and
  • growth forecasts for the areas.

To minimise the likelihood of exiting a community we have attempted to ensure that our offices have been established in regional cities, have taken long term leases and employed local people to operate the centres.

We do not have any structured programs in place for assessing and managing the impacts of operations on communities.
SO2 Percentage and total number of business units analysed for risks related to corruption. PC

Risk Management & Compliance Committee Charter;
Codes and policies—Code of Conduct;
Security Trading Policy;
Continuous Disclosure Policy.

SO3 Percentage of employees trained in organisation's anti corruption policies and procedures. PC Risk management;
Code of Ethics.
SO4 Actions taken in response to incidents of corruption. PC Code of Ethics.
SO5 Public policy positions and participation in public policy development and lobbying. C Stakeholder engagement.
SO6 Total value of financial and in kind contributions to political parties, politicians, and related institutions by country. GRI
only
Zero. We do not make contributions to political parties or related institutions.
SO7 Total number of legal actions for anti competitive behaviour, anti trust, and monopoly practices and their outcomes. GRI
only
There were no known legal actions for anti competitive behaviour, anti trust, and monopoly practices.
SO8 Monetary value of significant fines and total number of non monetary sanctions for noncompliance with laws and regulations. GRI
only
Subsequent to the 2008 financial year, the UK operations incurred a fine for a breach of the Financial Services Authority's Business Principles. This will be further reported on in 2009.

Product responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed. NA Our products do not have any significant direct health and safety issues. Staff involved in the development of products are addressed through our Charter for Health, Safety and Security.
PR2 Total number of incidents of non compliance with regulations and voluntary codes concerning health and safety impacts of products and services. GRI
only
There were no known incidents of non compliance with regulations and voluntary codes concerning health and safety impacts of products or services.
PR3 Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements. GRI
only
We comply with the relevant government legislation per the Financial Services Act in all our product labeling. 
PR4 Total number of incidents of non compliance with regulations and voluntary codes concerning product and service information and labeling. GRI
only
There were no known incidents of non compliance with regulations and voluntary codes concerning product and service information and labeling.
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. C Indicators.
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing. GRI
only
We comply with the relevant government legislation per the Financial Services Act in all our product labeling.
PR7 Total number of incidents of non compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship. GRI
only
There were no known incidents of non compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship.
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. GRI
only
There were no substantiated complaints regarding breaches of customer privacy and losses of customer data.
PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services. GRI
only
There were no significant fines for non compliance with laws and regulations concerning the provision and use of products and services.

Financial services sector supplement

GRI indicator Status Comments
Environmental performance supplement
F1 Description of environmental policies applied to core business lines. C Our commitment;
understanding insurance.
F2 Description of process(es) for assessing and screening environmental risks in core business lines. C

Environmental risk assessment is a fundamental part of our decision making when accepting and pricing customers’ risk. See
environmental responsibility;
key impacts, risks and opportunities—climate change;
understanding insurance.

F3 State the threshold(s) at which environmental risk assessment procedures are applied to each core business line. GRI
only
None. We do not have specific thresholds at which environmental risk assessment procedures are applied to non–customer business transactions.
F4 Description of processes for monitoring clients' implementation of and compliance with environmental aspects raised in risk assessment process(es). NR This indicator only applies to retail, commercial and corporate banking.
F5 Description of process(es) for improving staff competency in addressing environmental risks and opportunities. PC Case studies—every step counts;
our commitment;
our commitment–social;
our commitment–operations;
Code of Ethics.
F6 Number and frequency of audits that include the examination of environmental risk systems and procedures related to core business lines. C Our internal environmental management systems have been reviewed internally against ISO14001. Each year these systems are reviewed by a third party assurance provider using the AA1000 Standard. See assurance.
F7 Description of interactions with clients/investee companies/business partners regarding environmental risks and opportunities. C Stakeholder engagement;
key impacts, risks and opportunities—sustainable investment;
benchmarking;
environmental responsibility.
F8 Percentage and number of companies held in the institution's portfolio with which the reporting organisation has engaged on environmental issues. PC Code of Ethics;
environmental responsibility.
F9 Percentage of assets subjected to positive, negative and best in class environmental screening. PC Key impacts, risks and opportunities—sustainable investment.
F10 Description of voting policy on environmental issues for shares over which the reporting organisation holds the right to vote shares or advise on voting. PC stakeholder engagement.
F11 Percentage of assets under management where the reporting organisation holds the right to vote shares or advise on voting. GRI
only
There are no assets under management where IAG holds the right to vote shares or advise on voting. We outsource this to the external equity managers who vote on our behalf. We receive a proxy voting report from the external managers either quarterly or annually.
F12 Total monetary value of specific environmental products and services broken down according to the core business lines. PC The value of specific environmental products is yet to be evaluated. See case studies—green product innovation in New Zealand.
F13 Value of portfolio for each core business line broken down by specific region and by sector. C See IAG’s annual report 2008.
Social performance supplement

Corporate social responsibility

CSR1 Social elements of CSR policy including corporate definition of CSR. C Our commitment.
CSR2 Structure and relevant CSR responsibilities, including explanation of the installed procedures . PC Operations.
CSR3 CSR audits and auditor hours. GRI
only
In 2007/08 IAG’s Group Audit and Assurance team undertook an audit of IAG’s sustainability performance indicators. This covered approximately 850 hours.
CSR4 Procedures for handling issues sensitive to stakeholders and responsiveness. PC Codes and policies—continuous disclosure policy;
security trading policy.
CSR5 Number of non–compliance incidents with any law or regulatory code of conduct. GRI
only
There were no known non compliance incidents with any law or regulatory code of conduct.
CSR6 Stakeholder dialogue and involvement procedures. C Stakeholder engagement;
Advisory Committee.

Internal social performance

INT1 Social responsibility issues covered in organisation’s human resources policies. C Our commitment;
Code of Ethics.
INT2 Staff turnover and job creation. PC Glossary;
indicators—workforce.
INT3 Employee satisfaction. C Indicators.
INT4 Senior management remuneration. C Annual report 2008.
INT5 Report on bonuses that are not oriented purely towards short term financial success, but which contain additional sustainability elements. PC Policies and governance.
INT6 Female to male salary ratio. PC Indicators.
INT7 Employee profile per hierarchy level and country. PC Indicators.

Performance to society

SOC1 Charitable contributions. C Indicators.
SOC2 Economic value created by an organisation’s activities. C Annual review 2008.

Suppliers

SUP1 Polices and procedures to screen suppliers’ social performance. C Stakeholder engagement;
case studies—supplier sustainability screening
SUP2 Supplier satisfaction. NR We will aim to investigate this indicator further in 2009.

Asset management

AM1 Social criteria applied in asset management. C Key impacts, risks and opportunities—sustainable investment.
AM2 Report on provision of tailored and innovative products and services applying special positive ethical/sustainability criteria. C CEO statement in IAG’s annual review 2008;
case studies—Green product innovation in New Zealand;
insurepink.
AM3 Socially Responsible Investment oriented shareholder activity. C Key impacts, risks and opportunities—sustainable investment.

Insurance

INS1 Social criteria applied in underwriting policy. PC Case studiesinsurepink.
INS2 Customer profile. NR We take age into account in determining the risk profile of our customers, for example discounts for over 50–year olds as they are a better risk.
INS3 Report on the number of complaints received from customers. NR We are aiming to report this for our Australian business in 2009.
INS4 Provision of tailored and innovative products and services applying special ethical/sustainability criteria. C CEO Statement in IAG's annual review 2008;
case studies—Green product innovation in New Zealand;
case studiesinsurepink.