CREATING SHARED VALUE
At IAG, our shared value approach helps us to establish tight connections between our business objectives and our goals for the communities in which we operate. Continuous engagement with our stakeholders helps us to understand their priorities, and this in turn shapes the initiatives we pursue under our shared value framework.
The last year amplified the importance of trust in the relationships between businesses and their stakeholders, as society increasingly looks to business for long term leadership on social issues. The focus on trust reinforced the importance of staying connected to our customers and communities, so that we can co-create solutions that respond to their needs. Our shared value approach provides a framework that allows us to develop innovative solutions to social problems that address the expectations of society and provide commercial opportunity for IAG.
CONTRIBUTING TO SUSTAINABLE DEVELOPMENT
Locally and globally, we partner with individuals, community groups and organisations to explore new ways of building social and physical resilience.
Through our leadership positions with the United Nations Environmental Programme Finance Initiative (UNEP FI), we are working to understand the many issues related to climate change and natural disasters, and develop industry-wide solutions.
Regionally, we work with the Australian Business Roundtable for Disaster Resilience & Safer Communities and Resilient New Zealand to advocate for change in public policy to build more resilient communities.
Through our Confident Communities program we are aiming to create ‘a nation ready for anything’. As a first step, we launched Good ’Hoods, a national campaign helping to connect communities and build resilience.
At state and local levels, we were actively involved in the 100 Resilient Cities initiative, with IAG representatives serving on steering committees and working groups in Melbourne and Sydney.
As part of Confident Communities, we have been working with the communities of Blacktown in New South Wales and the Murrindindi Shire in Victoria, to create sustainable social change at a grass-roots community level.
We endorse the Sustainable Development Goals (SDGs) spearheaded by the United Nations, and acknowledge these can only be achieved if business, government and society work together.
As an insurer, we can contribute to some SDGs more than others. We start by defining our shared value and responsible business priorities based on our business strategy and shared value thinking, then use the SDGs to help us identify where we can make the greatest impact and how we can partner effectively.
Further details are available on www.iag.com.au/creating-shared-value.
PROMOTING AND EMBEDDING SHARED VALUE
We are strong advocates of shared value and collaborate with like-minded organisations, such as the Shared Value Project, to contribute and leverage expertise.
Recently, we partnered with insurers Discovery and Skandia to research ways for insurers to create shared value. The research uncovered three key opportunities for insurers (as risk managers, risk carriers, and asset managers) to make a difference:
- prevent risk and dynamically reward risk reduction;
- close the protection gap for the under-served; and
- invest assets in prevention and protection systems.
This research will help businesses, government and not-for-profit organisations to think strategically about their commercial challenges, tackle some of society's biggest issues and ensure businesses contribute to sustainable development while remaining commercially viable.
We continue to embed shared value thinking into our ways of working, encouraging our people to focus on initiatives that generate both societal and commercial value. In 2016, our achievements were recognised when we won the Corporate Organisation Leading Through Shared Value category in the inaugural Australian Financial Review BOSS Shared Value Awards.
MEASURING SHARED VALUE TO FOCUS OUR EFFORTS
Our focus on measurement supports our decision making and helps us focus our resources. This year, we implemented a social impact measurement tool and are piloting a measure for shared value that tracks community impact, employee advocacy and involvement, and business impact. We still have work to do to enable us to measure social and business outcomes at scale so that we can achieve a more robust assessment of value created.
RECOGNITION FOR IAG’S SUSTAINABLE PRACTICES
Winner, Corporate organisation leading through shared value award 2016
Ranked in DJSI World, Asia Pacific and Australia in 2016
Received the RobecoSAM Bronze Class Distinction in 2017
Ranked in FTSE4Good Index in 2017
Awarded A- Climate Score in 2016
IAG’s non-financial metrics have been independently assured by Ernst & Young (EY). All IAG’s non-financial metrics are reported in our Data Summary and Glossary of Terms available online in the Shared Value area of our website available at (http://www.iag.com.au/creating-shared-value). The EY assurance statement is also available online.