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.
As with prior years, the GRI G3 Guidelines have been the basis for the preparation of our 2009 online reporting, together with the Business Sustainability content in IAG's 2009 Annual Review. It represents a balanced presentation of our organisation's economic, environmental and social performance and governance, and has been designed to provide our stakeholders with meaningful information about IAG.
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 NBMG's assurance statement and to our 2009 Annual Report 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.
Performance indicators
Financial services sector supplement
Performance indicators
| GRI indicator | Status | Comments | |
|---|---|---|---|
| Economic performance indicators | |||
| EC1 | Direct economic value generated and distributed. | C | Annual review (43kb .pdf); 5 year financial performance. |
| EC2 | Financial implications and other risks and opportunities for the organisation's activities due to climate change. | PC | Key risks and opportunities; IAG's Carbon Disclosure Project 2009. |
| EC3 | Coverage of the organisation's defined benefit plan obligations. | GRI only |
All new staff members enter accumulation style benefits. Historical defined benefit arrangements are closed to new members and are managed by the operators of the funds in their respective countries. |
| 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 |
At a minimum, IAG offers wage levels that meet the legislative requirements of the jurisdictions in which we operate although our goal is to offer competitive wages for comparable roles in comparable companies in the relevant labour market. |
| EC6 | Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation. | GRI only |
Interact with our suppliers is governed by our Supplier Selection Guidelines (19kb .pdf). |
| 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; Our performance. |
| 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 | The economic impacts of taxation on insurance; Developing innovative products for customers; Innovative ways of getting customers back on the road faster; Addressing the issue of underinsurance and non-insurance. |
| Environmental performance indicators | |||
Strategy and profile |
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| EN1 | Materials used by weight or volume. | PC | Our performance–environment. |
| EN2 | Percentage of materials used that are recycled input materials. | PC | Our performance–environment. |
| EN3 | Direct energy consumption by primary energy source. | C | Our performance–environment. |
| EN4 | Indirect energy consumption by primary source. | C | Our performance–environment. |
| EN5 | Energy saved due to conservation and efficiency improvements. | PC | Our performance–environment; Our performance– Greening our property network through more efficient 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 | Our performance–Rewarding customers for sustainable activities |
| EN7 | Initiatives to reduce indirect energy consumption and reductions achieved. | C | Our performance–environment. |
| EN8 | Total water withdrawal by source. | GRI only |
This indicator has been investigated in 2009 however difficulty has been experienced in obtaining the relevant data. We will continue to review this indicator in the current year. |
| EN9 | Water sources significantly affected by withdrawal of water. | GRI only |
This indicator has been investigated in 2009 however difficulty has been experienced in obtaining the relevant data. We will continue to review this indicator in the current year. |
| EN10 | Percentage and total volume of water recycled and reused. | GRI only |
This indicator has been investigated in 2009 however difficulty has been experienced in obtaining the relevant data. We will continue to review this indicator in the current year. |
| 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 | Our performance–community |
| EN14 | Strategies, current actions, and future plans for managing impacts on biodiversity. | PC | Our approach. |
| 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 | Our performance–environment. |
| EN17 | Other relevant indirect greenhouse gas emissions by weight. | GRI only |
We have reported on all of our largest known emission sources. We are investigating other sources of our indirect emissions. |
| EN18 | EInitiatives to reduce greenhouse gas emissions and reductions achieved. | PC | Our performance–environment. |
| 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 | Our performance–environment. |
| 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 | Our approach–environmental; |
| 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 2009. |
| 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, in kind expenditure through IAG’s volunteer day program and sponsorship and participation in environmental community groups. |
| Social performance indicators | |||
Human rights |
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| HR1 | Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. | PC | Our performance–economic. |
| HR2 | Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. | PC | Our supplier selection guidelines govern all interactions with our suppliers; |
| 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 |
Aligned to IAG’s devolved operating model, each of our operating divisions has processes in place and is responsible for the management of incidents. |
| 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. | NR 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 |
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| LA1 | Total workforce by employment type, employment contract, and region. | C | Our performance–workforce. |
| LA2 | Total number and rate of employee turnover by age group, gender, and region. | PC | Our performance–workforce. |
| 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; our approach–workforce. |
| LA4 | Percentage of employees covered by collective bargaining agreements. | GRI only |
In our Australian and New Zealand operations, all employees with the exception of senior management are covered by collective bargaining agreements. In our Asian and UK operations there are no collective bargaining agreements. |
| 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 | IAG Charter for Health, Safety and Security (150kb .pdf). |
| LA7 | Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region. | C | Our performance–workforce. |
| 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 eg RSI and stress. These include EAP, and OH&S 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. | GRI only |
We have a wide range of training available to all our employees, and are focused on providing high quality tailored training for our employees rather than a specific quantity of training. As part of the annual performance management processes, specific development plans are determined for each staff member and training requirements are identified at this time. |
| LA11 | Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. | GRI only |
|
| 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 performance appraisal process. |
| 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 | Our performance–workforce; Our approach–workforce. |
| LA14 | Ratio of basic salary of men to women by employee category. | C | Our performance–workforce. |
Society indicators |
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| 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 |
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; |
| 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 | |
| SO6 | Total value of financial and in kind contributions to political parties, politicians, and related institutions by country. | C | 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 |
Our UK operations incurred a fine of 735,000 GBP for a breach of the Financial Services Authority's Business Principles. This related to having loaded incorrect premium rates into the system and the subsequent impacts to customers. Our Victorian Workers' Compensation operations were fined $1,000,000 for a breach of their agency agreement. |
Product responsibility |
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| 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 (150kb .pdf). |
| 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 |
Australia: Management reported a “significant breach” to ASIC in January 2009 relating to the failure to provide customers with policy documentation. This breach impacted the approximately 800 customers. All affected customers were contacted and advised that the company was extending the 21 day cooling off period. ASIC has since replied that no further action will be taken. Australia: The Financial Ombudsman Service (FOS) raised a breach relating to claims denial letters not detailing the entire complaints handling process. The Business Division involved updated the claims denial letters and processes. The new procedure has been communicated to staff and is operational. FOS was advised of the completion of these actions and has confirmed that this matter has been closed without any fines. |
| PR5 | Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. | C | Our performance–customer. |
| PR6 | Programs for adherence to laws, standards, and voluntary codes related to marketing. | GRI only |
We comply with the relevant government legislation in the countries in which we operate. |
| 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 |
Refer to SO8. |
| 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. |
