2018 sustainability report

AMP 2018 sustainability report2

AMP Limited ABN 49 079 354 519Unless otherwise specified, all amounts are in Australian dollars.Information in this report is current as at March 2019.

Contents3 CEO’smessage4 Whoweareandwhatwedo6 Aboutthisreport7 Materialissues

Our customers8 Customerexperience12 Digitaldisruptionandinnovation14 Cybersecurityandprivacy16 Regulatoryandlegislativeenvironment

Our people18 Ethicalconductandprofessionalstandards22 Inclusionanddiversity24 Supportinganddevelopingourpeople

Our community26 Climatechangeandtheenvironment30 Responsibleinvesting32 Sustainablesupplychain33 Communityinvestment

AMP 2018 sustainability report3

TheAMPsustainabilityreportisanimportantpartofourannual reporting suite.Itoutlineshowwewilltakeonthechallengesofachangingworldandhelpbuildabetterfutureforourcustomers,ourpeopleandourcommunity.

AMP’sfinancialstrengthhasalwaysbeenmatchedbyitsstrongsocialpurpose.It’swhyIhavesomuchfaithinthisiconiccompany.Wewerefoundedonthebeliefthatwecanmakeapositivedifferencetopeople’slivesand,indeed,itisourdutytodoso.

AvitalwayweengagewiththecommunityisthroughtheAMPFoundation–ourphilanthropicarm.In2018,I’mpleasedtosayitinvestedalmost$5millionintothecommunity,includingsupportingprogramsthatprovidelife-changingeducationalandemploymentopportunitiesfordisadvantagedAustralians.

AMPCapitalhasgainedareputationfornotonlyenvironmental,socialandgovernanceanalysis,butalsoaction.Thiswasevidentin2018whenitfullydivested$440millionworthoftobaccomanufacturing-relatedholdings–oneinaseriesofresponsibleinvestingmilestones.

ButAMP’scapacitytodogoodgoeswellbeyondourFoundationandethicalinvestmentframework.Wecertainlybelievewehaveanimportantroletoplaynotonlyinthefinancialsystem,butalsointhecommunitiesinwhichweoperate.Peoplewillalwayswanttoowntheirownhomes,takecareoftheirfamiliesandretirewell.However,toachievethesealmost-universalgoalsinanincreasinglycomplexworld,mostpeopleneedhelp.

IknowAMPhasthedepthofexperienceandknow-howtoprovidethishelp,farandwide.Thebiggestbarriertodoingsoistrust.Thetrustwebuiltupoverthepast170years–withclients,regulators,shareholdersandthecommunity–waserodedin2018whentheRoyalCommissionhighlightedourseriousmistakes.

Theseissues,includingchargingcustomersfeesforservicesnotreceived,andsuperproductsthatdidnotprovidevalue,arebeingaddressed.In2018weacceleratedourremediationprogramtoensureallaffectedadvicecustomersarecompensatedasquicklyaspossible.WealsoreducedMySuperfeesfor600,000customers,whilereducingremunerationforourexecutives.

Topreventtheseissuesfromrecurring,westrengthenedourreportingandgovernancepractices,investingintechnology,controlsandprocesses.Wealsoinvestedinpeoplewhohavethetalentandwilltonavigatesignificantexternalandregulatorychange.

Havenodoubt,thelevelofdisappointmentinlettingourcustomersandcommunitydownrunsdeepwithinAMP.Yetthisgivesmeconfidencethatwewilllearnfromourmistakesandwilldoourutmosttobeworthyofourstakeholders’trust.

Trust,andhowwerespondtosocialchallenges,willbethebedrockofAMP’sfuturesustainability.IjoinedAMPatthestartofthisjourneyandunderstandwehavefartogo.ButIbelievethecommitmenttogreatertransparencyandaccountabilityisapositivestep.

Francesco De Ferrari ChiefExecutiveOfficer

CEO’s messageWelcome to AMP’s 2018 sustainability report.

AMP 2018 sustainability report4

Who we are and what we doAMP helps people to manage their finances and reach their goals.

Weoffersolutionsacrossfinancialadvice,investmentmanagement,banking,lifeinsurance,superannuation,self-managedsuperannuationfunds,retirementincomeandinvesting.

Australian wealth management:Wehelppeopletosaveforandtolivewellinretirementwithourretailandworkplacesuperannuationproducts,self-managedsuperannuationfundservicesandretirementincomesolutionsandinvestmentsforindividuals.

AMPprovidesfinancialadvicethroughournationalnetworkofemployedandself-employedadvisers.Ouremployedadvisersofferaface-to-faceadviceserviceundertheAMPAdvicebrandandaphone-basedadviceserviceunderAMPAssist/Direct.AMP’snetworkofalignedfinancialadvisersoperatewithinself-employedbusinesseslicensedandauthorisedunderAMPFinancialPlanning,HillrossFinancialServicesandCharterFinancialServices.

AMP Bank:AMPBankprovidescustomerswithresidentialandinvestmentpropertyhomeloans,depositandtransactionaccountsandSMSFproducts.Ourcustomerscanaccessourbankproductsviaavarietyofchannels,includingonline,byphoneandthroughAMPfinancialadvisers.

AMP Capital:Wemanageinvestmentsinequities,fixedincome,diversified,multi-managerandmulti-assetfundsonbehalfofclientsaroundtheworld.AMPCapitalalsomanagesrealestateandinfrastructureassetsonbehalfoffundsandclientsinAsia,theMiddleEast,Europe,theUKandNorthAmerica.

New Zealand wealth management:InNewZealandweprovidecustomerswithfinancialproductsandservices,directlyandthroughoneofthelargestnetworksoffinancialadvisersinthecountry.In2018,AMPwasthefourth-largestKiwiSaverSchemeproviderwith10%ofthetotalKiwiSavermarketandabout225,000customers.

Sold businesses InOctober2018,AMPannouncedthedecisiontodivestitsAustralianandNewZealandwealthprotectionandmaturebusinessestoResolutionLife.

– Wealth protection (life insurance):Thisbusinessprovideslifeinsurance,incomeprotectionanddisabilityinsurancesolutions.

– Mature business:Managingclosedinsuranceandsuperannuationproductsthatarenolongerbeingsold,thisbusinessismanagedforyieldandcapitalefficiency.

ThesesalesrepresentamajorstepinreshapingAMPasasimpler,morefocusedgroup.Thetransactionisexpectedtocompletebytheendofthethirdquarterin2019.

AMP 2018 sustainability report5

Resetting and rebuildingAMPfacedsignificantchallengesthroughout2018asaresultofissueswithinourbusinessandacrossthebroadermarket.Theissuesidentified–especiallythosehighlightedduringtheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry–werenotnew.Manyhadbeenidentifiedandreportedtoregulators,andactivitieswereunderwaytoredress.However,theydidfallshortofcommunityexpectationsandthestandardsweexpectofourselves.Weareaddressingthesemattersandarefocusedonensuringwedelivervalueforourshareholdersandcustomers.

Throughouttheyear,thefollowingprioritieswereidentifiedanddelivered:

– Prioritise customers and restore confidence–byremediatingcustomers,improvingvalueandsimplifyingthenumberofproductsoffered

– Transform advice–byacceleratingourAdviceImprovementProgram,meetingchangingregulatoryandconsumerexpectations,andimprovingadvisertraininganddevelopment

– Deliver portfolio review–throughthesaleofourwealthprotectionandmaturebusinesseswearebecomingasimplerbusinessfocusedonwealthmanagement,investmentsandbanking

– Strengthen risk management, internal controls and governance–byinvestingintheseareasthroughamulti-yearprogramtofurtherenhanceriskgovernance

– Maintain business momentum–byfocusingonmaintainingmomentuminachallengingenvironmentwhileprioritisingcustomersandsupportingourpeopletoperformattheirbest.

TheappointmentofChairmanDavidMurrayandCEOFrancescoDeFerrariin2018wereimportantstepsindemonstratingourabsolutecommitmenttoreinventingAMP,ourgovernancepracticesandourculture.OurboardhasgivenournewCEOamandatetotransformAMP.

Formoreinformationonourbusiness,seethe2018AMPannualreport.

Detailsonourcorporategovernancestructuresandapproachtoriskmanagementareprovidedinthe‘CorporategovernanceatAMP’statementinourannual report.

AMP 2018 sustainability report6

About this reportThe purpose of this report is to outline how we monitor and manage the risks and opportunities associated with our material sustainability issues, and to provide a snapshot of our performance in each area.

ThisreportprovidesanaggregatedviewofoursustainabilityperformanceandiscomplementedbyourdisclosurestotheCarbonDisclosureProject(CDP),theGlobalRealEstateSustainabilityBenchmark(GRESB),andAMPCapital’sreportingasasignatoryoftheUNPrinciplesforResponsibleInvestment(UNPRI).

Oursustainabilityreportformspartofourannual reporting suite,whichincludes:

– thefinancialdisclosuresinour2018annualreport

– governanceandriskmanagementdisclosuresinour‘CorporategovernanceatAMP’statement

– AMP’sannualtaxreport,availableontheAMP shareholder centre.

Report scope ThescopeofourreportcoversAMP’soperationsgloballyfortheperiod1January2018to31December2018.TheentitiesthatarewithinAMPLimited’soperationalcontrolboundaryareAMPFinancialServices,AMPCapitalInvestorsandtheirsubsidiariesandtheAMPFoundation.

ThepremisesofthealignedadvisersarenotunderAMPLimited’soperationalcontrol,andthereforetheenergyconsumptionandotherenvironmentimpactsofalignedadvisersdonotformpartofthedisclosuresinthe‘Climatechangeandtheenvironment’sectionofthisreport.

AlignedadvisersarebusinesspartnersofAMPandoperateunderourAustralianFinancialServicesLicencestoprovideservicestoourcustomers.Theyhavebeenincludedwhererelevantinthisreport.

AMP 2018 sustainability report7

Material issuesMaterial issues of greatest importance to our customers, our people and our community were identified through a business-wide assessment process in 2017.

Theassessmentprocessinvolvedreviewingandanalysingfeedbackfromacross-sectionofemployees,analysisfromourin-houseESGspecialists,analystandinvestorfeedback,reviewsofmediacoverageonfinancialservicesissuesandourcompetitors’materialityissues,feedbackfromourbusinesspartnersandregulatoryfeedbackandrecommendations.

Fromthisresearchweidentified11materialissuesofimportancetobothourbusinessandourstakeholders.

Theseissueswerere-assessedin2018inlightoftheissuesraisedbytheRoyalCommissionandfeedbackfromregulators,customersandthecommunity.Elevenissues,determinedthroughexternalguidanceonmaterialsustainabilityissuesforfinancialservices(SustainabilityAccountingStandardsBoardMaterialityMapaswellastheSustainabilityYearbook2018fromRobecoSAMAG)andpeerdisclosures,weredeemedtobeofimportanceandwerereconfirmedas:

Thisreportprovidesanoverviewof2018performanceandplannedfutureprioritiesandactions.

Our customers1.Customerexperience

2.Digitaldisruptionandinnovation

3.Cybersecurityandprivacy

4.Regulatoryandlegislativeenvironment

Our people5.Ethicalconductandprofessionalstandards

6.Inclusionanddiversity

7.Supportinganddevelopingourpeople

Our community8.Climatechange

andtheenvironment

9.Responsibleinvesting

10.Sustainablesupplychain

11.Communityinvestment

AMP 2018 sustainability report – Our customers8

1. Customer experienceThe financial services sector is a key pillar of the Australian economy.

Itisessentialthatcustomershaveaccesstoqualityfinancialproductsandservicestosecuretheirfinancialfuture,andareabletoplacetrustintheservicesreceived.Thistrustwastestedin2018bothacrosstheindustryandatAMP.

TheissueshighlightedbytheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry,includingfeeschargedtoourcustomersforservicestheydidn’treceive,superannuationproductsthatdidnotprovidethesufficientvaluetomembers,thechargingofhigherinsurancepremiumsfordelinkedsuperfundmemberswhereAMPwasnotawareofthemember’ssmokerstatus,andgrouplifeinsurancepremiumschargedtodeceasedmembers,fellshortofcommunityexpectationsandthestandardsweholdforourselves.

Wearecommittedtoresettingthebusinesssowecandeliveronourpurposeofhelpingcustomersmanageandprotecttheirwealth.

WealsowanttomakequalityfinancialadviceavailableandaffordableforallAustralians.Akeypartofthisistodeliveraconsistent,expert,proactiveandpersonalisedexperiencetoallcustomers.

In 2018…2018wasachallengingyearforAMP,withtheRoyalCommissionshowingthatwehavefallenshortofcommunityexpectationsandthestandardstowhichweholdourselves.Werecognisethecrucialimportanceofaddressingthesemattersandrebuildingtrusttoensurewedelivervalueforourcustomers.Wehavebeenworkinghardacrossthebusinesstoimprovetheexperiencecustomershavewithus,throughactionssuchasresolvingissuesinadvice,simplifyingsuperannuation,actingoncustomerfeedback,supportingresponsiblelendingandimprovingourinvestmentperformance.

Inour2017sustainabilityreport,wesetoutanumberofgoalsfor2018,includingtocontinuethecustomer-centredtransformationofourbusiness,simplifyourproductsandservicesandmakethemmoreaccessible.Whilewemadeprogressontheseobjectivesin2018,wearecontinuingtoworktowardsthem.

AMP 2018 sustainability report – Our customers9

Resolving issues in AdviceIn2017,AMPestablishedadedicatedprogramofwork–theAdviceImprovementProgram(AIP)–toaddressknownissueswithinourfinancialadvicebusiness.Itspurposeistodeliverprocess,governanceandculturalchangestostrengthenmonitoringandsupervisionintheadvicebusiness.Acceleratedin2018,thisprogramaimstoimprovetheconsistencyofcustomeroutcomesandwillenableustobettermonitorthattheadviceprovidedisinthebestinterestsofourcustomers.Furtherdetailsontheinitiativesunderwaytostrengthentheadvicebusinessareprovidedinthe‘Ethicalconductandprofessionalstandards’section.

WeacceleratedourReviewandRemediationProgramtoensureaffectedcustomersareidentified(suchasthosechargedfeesfornoservice,orthosewhoreceivedpoorqualityadvice)andappropriatelycompensatedasquicklyaspossible.WehaveagreedkeyelementsofourapproachwithASIC.Wearecommittedtoensuringallcustomersintheprogramwillberemediatedwithinthreeyears.

Theprogramaddressesbothemployedandalignedadvisers.Wehavesetasideaprovisionof$656million(pre-taxandincludingprogramcosts)toremediateourcustomers,determinedonthebasisoftheestimatedpoolofimpactedcustomers.

Simplified, better value super Wearesimplifyingoursuperannuationofferingtoprovideamorefocusedandcompetitiveofferingtoourcustomers,withfeaturesthatareclearandeasytounderstand.

Aspartofourcontinuingcommitmenttocustomers,aswellasreflectingplansforthesimplificationofoursuperannuationproductoffering,in2018weannouncedandimplementedfeereductionstoourflagshipMySuperproducts.Thisreducedfeesfor600,000existingcustomersandenhancedthecompetitivenessofourMySuperproductsuite.

Wealsobelieveintheimportanceofsupportingandimprovingthefinancialliteracyofourcustomerstohelpthemmakeinformedchoices.Thisisaprimarydriverforhowwewelcomenewcustomersandhelpthemtounderstandtheirsuperaccounts.OurWelcomeJourneyhighlightswhatcustomerscandotogetsuperbasicsright,includingunderstandingtheirinsurancecover,howtheirsuperisinvested,theimportanceofbeneficiarynominationsandhowconsolidationcanmitigatetheproliferationofaccountfees.

Acting on customer feedbackWewanttoensureourcustomers’voicesareheard.OurNetPromoterSystem(NPS)playsanimportantroleinhelpingusassesshowwellwemeettheirneedsandexpectations.In2018,weaskedmorethan450,000customersandbusinesspartnersfortheirfeedbackandmademorethan120changesinoursystemsandprocessesinresponse.NPSisalsoaperformancemeasureinAMP’sshort-termincentivebonusassessmentforsomeemployees.

AMP 2018 sustainability report – Our customers10

AMP Customer AdvocateAMPcontinuestostrengthenitssupportforcustomersviatheAMPCustomerAdvocate.OneofthekeyobjectivesofthisroleistohelpcustomersoftheAustralianbusinesswhobelievethattheircomplaintshavenotbeenappropriatelyresolvedthroughAMP’susualcomplaintresolutionprocesses.Takinganindependentview,theAMPCustomerAdvocateactstoensureourcustomersreceivefairandreasonablecomplaintoutcomesandthatAMP’scomplaintsprocessesareaccessible,robustandtransparent.TheCustomerAdvocatealsoworkscloselywithseniorleadersacrossthebusinesstolearnfromtheseexperiencesanddrivebetteroverallcustomerexperiencesandoutcomes.

2018sawthefunctionscalerapidlytoaformalOfficeoftheCustomerAdvocateteam,withsoundprocessesandwellestablishedrelationshipsthroughouttheorganisation.Wearecontinuingtoenhancethegovernanceandassuranceofcomplaints,includingincreasingtransparencyandreportingofcomplaintsuptotheAMPLimitedBoard.

Responsible lending Werecognisetheimportanceoftheresponsiblelendingobligationsforlendersandbrokerstoensurewearemakingsufficientinquiriesintoacustomer’srequirements,aswellastheirabilitytoservicetheloan.

Toensurewearemeetingourregulatoryrequirementsandhelpingcustomersobtainloansthatareappropriateforthem,AMPBankimplementedanumberofinitiativesin2018including:

– introducingaBrokerInterviewGuidetocapturebrokerandapplicantconversationstoensureloanpurposeandrequirementsoftheborroweraredocumentedcorrectlyandconsistently

– sendingreminderlettersatsixand12monthspriortoafixedinterest-onlyloanperiodfinishing,toalertthemtotheprincipalandinterestloancommencing.

Investment performanceAMPCapitalmanagesawiderangeofinvestments,withastrongfocusonachievingclientgoalsandexceedingbenchmarkperformance.AnexampleofabenchmarkusedbyAMPCapitalistheperformanceoftheASX200,whichisusedtomeasureperformanceformanyAustralianequityfunds.Similarbenchmarksareusedformanyofourlistedmarket(equitiesandbonds)funds.

Thisfocuscontinuedin2018,resultingin61%ofAMPCapital’sassetsundermanagementmeetingorexceedingclientgoalsoverthreeyearstoDecember2018.Theseresultsaresupportedbycontinuedstrengthinrealassets,withAMPCapitalInfrastructureinvestmentsmeeting100%ofclientgoalsandRealEstateinvestmentsmeeting98%ofclientgoalsoverathree-yearperiod.Whiletheperformanceofmulti-assetbalancedfundsimprovedin2018,itremainedimpactedbylowerexposuretounlistedassetsversuspeerfunds.

AMP 2018 sustainability report – Our customers11

Future outlookOurnewCEOhasaclearmandatetodrivechangeanddevelopastrategytoresetAMPtobecomeasimplerbusinessfocusedonwealthmanagement,investmentsandbanking.Thiswillbesupportedbystrengthenedriskmanagement,internalcontrolsandgovernance.

In2019,wewillleverageourcapabilitiestoengageandserviceourcustomers,andcontinuetoworkonadviceissuesandthecustomer-centredtransformationofourbusiness,includingproductandplatformsimplification.

Wewillcontinuetoprioritiseandaccelerateouradviceremediationprogramtoensureallaffectedcustomersareappropriatelycompensated.

TheAMPCustomerExperienceTeam–whichhelpsinternalteamsenhancethecustomerexperience–andtheCustomerAdvocatewilldrivetheidentificationandresolutionofsystemicissuesacrosstheorganisation,implementingenhancedgovernanceandassuranceoftheAMPCustomerComplaintsFramework,anddevelopinganddeliveringtheAMPGroupVulnerableandDisadvantagedCustomerPrinciplesandPolicy.

Wewillalsofocusonstrengtheningresponsiblelendingprocessesbyintroducingcomprehensivecreditreporting,improvingourverificationrequirementsandimplementingchangesinresponsetochangingregulatoryrequirementsonresponsiblelendingconduct.

In 2018…

Metric Value

CustomersassistedbytheAMPCustomerAdvocate1 536

ComplaintreviewscompletedbytheAMPCustomerAdvocate 136

Complaintreviewsresolvedinfavourofthecustomer2,3 54%

Enhancedresolutionforthecustomer 14%

Newoutcomeforthecustomer 40%

ChangesmadetooursystemsandprocessesinresponsetoNPSfeedback 120

Numberofsuperannuationcustomerswhosefeeswerereduced 600,000

AMPCapitalassetsundermanagementmeetingorexceedingexpectations 61%

AMPCapitalInfrastructureinvestmentsmeetingorexceedingclientgoals 100%

AMPCapitalRealEstateinvestmentsmeetingorexceedingclientgoalsoverathree-yearperiod 98%

1 CustomerswhohadtheirconcernsresolvedbyAMPfollowingassistancefromtheAMPCustomerAdvocate.2 CalculatedasapercentageofcomplaintreviewscompletedbytheAMPCustomerAdvocate.3 Percentagerepresentsthesumof‘Enhancedresolutionforthecustomer’and‘Newoutcomeforthecustomer’.

AMP 2018 sustainability report – Our customers12

Digitaltransformationisdrivingfundamentalshiftsinhowfinancialserviceprovidersoperateinacompetitivelandscape.

Astechnologicalchangesenableustoimproveandinnovateourproductsandservices,customerexpectationsarealsoevolving.Tokeeppacewithexpectationsandleveragethepossibilitiesofdigitaltransformation,theneedforAMPtoinnovateisgreaterthanever.Ourgoalistodevelopanddeliverdigitalcustomerexperiencesthatarepersonalised,effortlessandproactive,andhelpusbuildmoredirectrelationshipswithourcustomers.

Itisimperativethatweensureourproductofferingsareeasytoaccessanduseinthefaceofcontinueddigitaldisruptionintheindustry.

In 2018…Withtheintroductionofopenbankingandagrowingfintechsector,2018sawsignificantdigitaldisruptioninthefinancialservicesindustry.Weknowconsumersarelookingformarket-leadingsolutionsthataresecureandspecifictotheirfinancialneeds.AMPisrespondingtothetechnicalchangesrequiredwithkeyprograms,includingGoals360,onlinetoolstohelpmanagewealthandartificialintelligence(AI)foronlineinteractions.

Ourgoalsfor2018wereto:extendourAMPGoals360modellingplatform,continuetoexplorenewtechnologies–includingAIandvoiceactivation–tosimplifyprocessesandprovidegreateraccesstofinancialadvice,toolsandservices,andsharebusiness,technologyandsocialinnovationideasatthe2018Amplifyfestival.

Goals 360In2018,AMPcontinuedtoenhanceitsAMPGoals360platform.LaunchedinDecember2017,Goals360isaninnovativefinancialplanningexperiencethathelpsourcustomersexplore,plan,trackandrealisetheirfinancialgoalsinavisualandpersonalisedway.

Goals360wonmultipleawardsin2018.Theseincludedfourawardsatthe60thanniversaryoftheGoodDesignAwards,includingtheprestigiousBestinClassforDesignStrategy,aswellasanawardfromChantWestforBestFund:Innovation.

Wecontinuetoimprovetheuserexperience.Forinstance,apilotprogrambeganinearly2018focusedonremotedeliveryofservicestocustomerswhocannoteasilyvisitanadviserinperson.Customerscanmeetwiththeiradviserviacomputerormobilephone,usingvideochatandscreensharing.Thisenablesadviserstoprovideasimilarexperiencetoanin-personvisit.

2. Digital disruption and innovationAdvances in technology are rapidly changing the way we live, work and interact to an extent that would have been hard to imagine 20 years ago.

AMP 2018 sustainability report – Our customers13

Improved online tools and experienceIn2018,wedeliveredtherefinedfinance-trackingmobileMoneyManagertoolandintroducedanewmicro-budgetingelementtomakemoneymanagementeasierforourcustomers.Wedevelopedthesetoolsbyapplyinghuman-centreddesignconceptstoensureourdigitalserviceiscustomer-focused.

WelaunchedMoneyManagerandmicro-budgetingwithinourcoremobileapplication,MyAMP,whichenablescustomerstohaveanoverallviewoftheirfinances.Withthisnewfunctionality,userscantracktheirspendingbycategories,includingtravel,entertainmentandfood.MoneyManagerautomaticallycategorisesthesetransactionsandcustomersareabletotracktheirspendingacrossthemonth.Sinceitslaunch,wehaveseenasignificantuptakeinourcustomersusingmicro-budgeting.

Inaddition,ourAIClicktoChatprogramwasimplementedfromMaytoOctober2018acrossthewebsiteandwithinMyAMPtodevelopmorepersonalisedexperiencesandanswercustomers’frequentlyaskedquestions.

AMPhasbeenusingAIanddataanalyticsforsometime.Ourwealthmanagementbusinesshasintroducedanalyticstobetterpredictretirementoutcomesforcustomers–showingcustomersinreal-timehowtheirsuperannuationandinvestmentswillaccumulate,andthesortofretirementtheywillbeabletoafford.Wearealsousinganalyticstodetectneworunexpectedactivityfromcustomersthatmayindicatetheyneedoursupport.

Amplify 2018Sinceitslaunchin2005,ourAmplifyinnovationfestivalhasgrowninsizeandreach.In2018,2,446attendeesfrommorethan420Australiancompaniesaccessed30oftheworld’sboldestthinkers.Amplify2018exploredemergingtrendsacrossbusinessmodels,technology,customerexperience,robotics,artificialintelligence,innovationanddisruption.Moreinformationcanbefoundatamp.com.au/amplify.

Future outlook Wewanttoutilisebest-in-classtechnologytoenableefficientprocessesanddeliverahigh-qualitycustomerexperience,includingbroadeningaccesstofinancialhelpbeyondface-to-faceadvice.

Wewillcontinuetoputcustomerneedsattheheartofourtechnologicaldevelopments,includingapplyinghuman-centreddesigntoensuretheonlinetoolsandinteractionsarepersonalised,effortlessandproactive.TheAustralianfinancialservicesindustryisbeingdisruptedandconsumerbehaviourswillchangeinthecomingyears.AMPwillleveragedigitaldevelopmentssowecanservicecustomersofthefuturemarketplace,whiledeliveringasecuredigitalexperienceforourcustomers.

In 2018…

Metric Value

NumberofGoals360sessionscompletedin2018 11,361

TotalcustomersusingMyAMPatendof2018 341,400

TotalMyAMPAppdownloadsatendof2018 92,306

GoodDesignAwardsforAMP’sGoals360 4

AMP 2018 sustainability report – Our customers14

Itiscriticalthatwecontinuallystrengthenourcybersecuritynetworkandhavedetective,preventativeandresponsivecontrolsinplacetoensureoursystemsandcustomerinformationareprotected.

CybersecurityandprivacyareoftheutmostimportancetoAMP,asourbusinessiscentredaroundcustomersprovidinguswithhighlysensitiveinformation,includingpersonaldetailsandfinances.

Peopletrustustosecuretheirpersonalinformationanduseitonlyforthepurposestheyexpect,andwearecommittedtoensuringoursystemsandprocessesmeetthisexpectation.AMP’sprivacypoliciesandstatementssetouthowandwhywecollectanduseinformationandthemeasureswetaketoprotectthepersonalinformationwereceivefromcustomersandshareholders.

In 2018…Ourkeyfocusthroughouttheyearwasonraisingtheprivacyanddatasecurityawarenessofouremployees,improvingcybersecuritycontrolsandensuringappropriatereportingandremediationofdatabreaches.

Ourgoalsforthisissuein2018wereto:continuetobuildastrongcybersecuritycultureandmaintainourdatabreachresponseplan,enhanceourcapabilitiestoensureourcontrolsremaineffectiveandbuildawarenessamongemployees

aboutchangestomandatorydatabreachreporting.Asoutlinedinthissection,wehaveundertakenanumberofinitiatives,showingstrongprogressioninourjourneytowardsachievingthesegoals.

CustomerprivacyisapriorityatAMPand,assuch,weconductouractivitiesinlinewiththedetailedcommitmentsinourprivacypolicy,availableatamp.com.au/privacy.

Raising privacy awarenessIn2018,evolvingfromourexistingteamofprivacyofficers,weestablishedaPrivacyOfficethatisfocusedonensuringpersonaldataisprotectedthroughouttheAMPGroupwhereverpersonalinformationisprocessed.

Inthepastyear,wefinalisedandbeganrollingoutourPrivacyImpactAssessmentFramework,whichisoverseenandassessedbyourPrivacyOffice.Thisframeworkensuresthatprojectshandlingpersonaldatameetprivacycompliancerequirementsandappropriatelymanageanyprivacyrisks.SinceJuly2018,wehaveappliedthisframeworkto21projectsandbusinesschanges.Inallcases,thePrivacyOffice’srecommendationswereaccepted,ensuringprivacyriskswereavoidedormanagedandprivacycomplianceobligationsweremet.

Aspartofourcommitmenttoprotectingtheprivacyofourcustomersandpeople,in2018webecameaBronzeMember

oftheInternationalAssociationofPrivacyProfessionals(IAPP).Thisnon-profitprivacyprofessionals’associationenablesAMPtostayuptodatewiththelatestdevelopmentsinprivacyanddataprotection.Inaddition,wehaveacquiredIAPP’scomprehensiveprivacytraininglibrary.

WealsoupdatedourPrivacy Policy and Code of Conduct,bothofwhichcameintoeffecton1January2019.

Data security and cyber security awarenessWearecommittedtocontinuallyenhancingourcyberresilienceandrelatedcapabilities.Weregularlytest,reviewandenhanceoursecuritycapabilitiestoensureourcontrolsremaineffectiveinreducingtheimpactsofcyberincidents,aswellasmeetingincreasingregulatoryrequirements.

Weprovidetrainingtohelpouremployeesunderstandthevalueofdata,theimpactifitismishandledorexposed,aswellastheirresponsibilitiesinkeepingAMPcustomerandemployeedatasecureandconfidential.Tokeepcybersecurityknowledgecurrentandfrontofmindforouremployees,werunregularcybersecurityawarenesssessionsacrossallareasofAMPonavarietyoftopics.

3. Cyber security and privacyWhile technological advancements provide great opportunities for us to innovate and offer new digital solutions for our customers, they also bring new cyber security and privacy risks.

AMP 2018 sustainability report – Our customers15

Inaddition,theAMPCyberSecurityTeamregularlyrunsphishingsimulationsthatimitaterealattacksacrossAMP.Thisprovidesemployeeswithreal-lifeexperienceandenablesthemtoconfidentlyandproactivelyreportanythingsuspiciousforinvestigation.

Regularcybersecuritynews,adviceandinformationisalsosharedacrosstheAMPbusinessusingacybersecuritycollaborationplatform.

Reporting data breachesDatabreachesinvolvetheloss,unauthorisedaccessordisclosureofpersonalinformation.Thiscanincludeanerrorbyacompany,thatofathirdpartyormaliciousattacksbyhackers.AMPtakesprivacy,datasecurityandourobligationstoreportandnotifycustomersveryseriously.Wehavecomprehensiveincidentresponseanddatabreachresponseplans,whichensureaproactiveapproachtounauthorisedaccess,anddisclosureorlossofpersonalinformation.In2018,weextendedourdatabreachresponseplantoallAMPofficesworldwide.

ThisyearwenotifiedtheOfficeoftheAustralianInformationCommissionerofsixdatabreaches,andtheUKInformationCommissioner’sOfficewasnotifiedofonedatabreach.Thesewererelatedtomaliciousactsinthreecases,andhumanerrororsystemfaultsintheremainingfourcases.Inallcases,wenotifiedthe

impactedindividualsandtookstepstopreventfuturebreachesbyfixingsystemissues,conductingadditionaltraining,deletingorde-identifyingdatathatisnolongerrequiredandreferringanyrelevantinformationtolawenforcement.

InMay2018,theEUGeneralDataProtectionRegulationcameintoeffect.ThisregulationappliestoallpersonaldataofAMPcustomersandemployeesresidingordoingbusinesswithintheEuropeanEconomicArea.AMPhasundertakenariskassessmenttoidentifyandaddressgapsinourcompliancewiththisregulation,aswellasstepstomitigateandreduceanyriskofnon-compliance.

Wearealsocommittedtoworkingwithgovernmentsandexternalagenciestoimprovedatabreachreportingandtomitigatecyberrisks.Additionally,weareproactiveandcooperatefullywithlawenforcementtoensuremaliciouseventsareinvestigatedandresolved.AMPisanactivepartneroftheAustralianGovernment’sJointCyberSecurityCentre(JCSC)program.TheintentofJCSCistostrengthenAustralia’scybersecuritycapabilityandresiliencethrougheffectivepartnershipandcollaboration.Thejointpartnershipbetweenbusiness,government,academiaandnon-profitorganisationsprovidesparticipantswithabroadunderstandingofthethreatenvironmentandfacilitatesinformationsharingandcollaborationonsharedcybersecuritychallenges.

AMPisalsoapartnerofAustralia’snationalComputerEmergencyResponseTeam(CERT),whichistheprimarygovernmentcontactpointformajorAustralianbusinessestoreceiveandrespondtocybersecurityincidentreports.Italsosupportsandadvisesbusinessesonhowtorespondtoandmitigatecyberincidents.

Future outlook In2019andbeyond,privacyandcybersecuritywillremainintegraltoAMPandourbusinessoperations.WewillrequirethatallemployeesgloballycompleteprivacyanddatasecuritytrainingfromFebruary2019,whichforthefirsttimewillbeavailabletoouremployeesinChinaandJapanintheirlocallanguages.

Wewillcontinuetogrowourtechnicalcapabilitiesincybersecuritytoensurethatdataentrustedtousremainssecure.KeyupcominginitiativesincludeparticipatinginPrivacyAwarenessWeekinMay2019,topromoteandraiseawarenessofprivacyissuesandtheimportanceofprotectingpersonalinformation.

Case study: Writing secure codeWeunderstandthatcybersecurityanddataprotectionarenotjusttechnology-relatedissues,andthattheactionsorinactionsofouremployeescanhaveasignificantimpactonthecyberresilienceofAMP.Forthisreason,cybersecurityawarenessandcultureareasignificantpartofourcontrolenvironment.AspartofourongoingfocusoncybersecurityawarenessatAMP,weprovideourITdeveloperswithsecurecodetrainingusingtheSecureCodeWarriorplatform.

TheintentoftheinitiativeistoempowerourITdevelopersonanongoingregularbasisandprovidethemwiththeknowledgeandskillsrequiredtowritesecurecoderightfromthestart.

Byprovidingsecurecodingskills,weachievefasterandmoresecureproductdevelopment,whilecontinuingtobuildapositivesecuritycultureatAMP.

EmbeddingsecurecodedesignintoourapplicationsupfrontnotonlyimprovesAMP’scybersecurity,butalsomakesITprojectsmoreefficientasitreducesreworklaterinthesoftwaredevelopmentlifecycleandhelpsmovesecureproductstomarketrapidly.

AMP 2018 sustainability report – Our customers16

TheregulatoryandlegislativeenvironmentisimportantforAMPasitsetstheboundariesandtherulesinwhichourbusinessoperatesandourcustomersareserved.Failuretoeffectivelyanticipateandrespondtoregulatoryandlegislativechangesadverselyimpactsourreputationandbusiness–andinturn,ourcustomers,ourpeopleandourinvestors.

Wemanagethisriskbyhavingdedicatedresourcestoimplementrequiredchangeprograms,aswellasbyfrequentlyandactivelyengagingwithgovernment,regulatorsandindustrybodiestoanticipate,monitorandimplementregulatoryandlegislativechange.AMPhasalsostrengthenedourriskculturefocustoensurewearekeepingourlegalandregulatoryresponsibilitiesfrontofmindinourdailyactivities.

In 2018…TheRoyalCommissionhasbeenacatalystforchangeacrossthefinancialservicessectorandwithinAMP.Wehavealreadytakenstepstorestoretrustandconfidencewithcustomersandthecommunity,governmentandregulators.Wearealsocontributingcooperativelyandconstructivelytotheregulatory,policyandlegislativedebate.OurworkonimprovingourriskcultureisdetailedinthesubsequentsectiononEthicalConductandProfessionalStandards.

UnderActingCEOMikeWilkins,andcontinuingunderournewCEOFrancescoDeFerrari,themuch-neededprocessofresettingourrelationshipwithourregulatorshasbegunandprogresstodatehasbeenpositive.AMPsupportedtheRoyalCommission,aswebelieveastrongandstablefinancialsystemiscriticaltothenation’seconomyandtoallAustralians.Wehaveandwillcontinuetodoallwecantohelprestorethecommunity’strustandconfidenceinAMPandthefinancialservicesindustry,includingworkingtoaddresstherecommendationsfromtheRoyalCommission.

Anotherfocusisonstrengtheningourregulatoryreportingandgovernancepractices.InJuly2018,theGroupRegulatoryGovernanceTeam(GRGT)–acentralisedregulatoryengagementfunction–wasformed.TheGRGT’spurposeistolifttheconsistency,accuracyandtimelinessofreporting,increasetheself-identificationofissues,thenundertakedeeperrootcauseanalysistoensureshorterresolutiontimes.AMPalsoinvestedsignificantlyintalent,technology,controlsandprocessimprovementtoensureissuesthatcametolightin2018arenotrepeated.TheGRGThasalreadydrivengreatertransparencyofregulatorycommitmentsandinteractions,capturingvolumeandtypeofregulatorinteractioninacentraliseddepository.

Governance, Risk and Compliance (GRC) systemWeunderstandexpectationsofhowquicklywereportandmitigatebreacheswillonlyincreaseandthatnewtools,suchastheGovernance,RiskandCompliance(GRC)system,willhelpprovidestandardisation,automationandbetterdataanalyticsandreporting.TheGRCsystemisamulti-yearprogramthatwillenableAMPtomoveawayfrommultiplesystemstoonecoresystemtoraiseandmanageincidents,issues,breaches,risks,controlsandcomplianceobligationsacrosstheAMPgroup.

PartofAMP’sServiceNowplatform,itprovidesinbuiltworkflowsandnotificationsthatensureweunderstandandmanageincidents,breachesandissuesinawaythatisconsistentwithourthreelinesofdefencemodel.Itwillalsoprovideuswithaclearerviewoftheeventsandproblemareasthatimpacttherisksfacingourorganisation,andtheactivitiesundertakentocontrolandmanageourrisksandtocomplywithobligations.Thefirstmodule(Incident,IssuesandBreachManagement)hasbeenimplemented.ItwillbefollowedbyRisksandControls,ComplianceManagement,BusinessContinuityManagementandInternalAuditManagementmodules,whichwillbedeliveredacrossmultiplephases.

4. Regulatory and legislative environmentThe financial services sector has experienced considerable regulatory and legislative change in recent years, as well as media and political scrutiny.

AMP 2018 sustainability report – Our customers17

Regulatory and legislative change approach ItisvitalthatAMPparticipatesinpolicyandlegislativedevelopmentsthatimpactourcustomersandthevariousAMPbusinessunits.Wehaveadedicatedteamtomonitorandactivelyrepresentourcustomersandstakeholdersonthecomplexlegislativeframeworkthatimpactsthefinancialservicesindustry,aswellasimportantdiscussionsonthepotentialoutcomesforbankingproducts,retirementincomes,lifeinsuranceandfinancialadvice.

In2018wecontributedtomanyoftheseimportantpolicyandregulatorydevelopmentsby:

– makingsubmissionstotheAdvice,Superannuation,LifeInsuranceandPolicyroundsoftheRoyalCommission

– activelyengaginginandprovidingfeedbackonsignificantlegislativeandregulatoryreforms,includingtheDesignandDistributionObligationsandProductInterventionPowerreforms,thesevenFASEAStandardsforprofessionalisingthefinancialadviceindustryandtheProtectingYourSuperPackage,introducedaspartofthe2018FederalBudget

– incorporatingchangesrecommendedbytheAustralianFinancialComplaintsAuthority(AFCA)intosystemsandprocesses,inparticular,viaAMP’sCustomerAdvocatefunction

– ensuringcompliancewiththeobligationssetoutintheBankingExecutiveAccountabilityRegime(BEAR)withinAMPBankbythe1July2019deadline

– examiningandconsideringapplicabilitytoAMPoftherecommendationsoftheProductivityCommissionInquiryintoSuperannuation:AssessingEfficiencyandCompetitivenessandactivelycontributingtothedebateonthefutureofsuper

– reviewingtheoutcomesoftheProductivityCommissionInquiryintoCompetitionintheAustralianFinancialSystem

– takingstepstocomplywiththeUKModernSlaveryAct2015,whichrequireslargecompaniestobetransparentabouttheireffortstoeradicateslaveryandhumantraffickingintheirsupplychainandanypartoftheirbusinessandconsideringtheimplicationsofthenewAustralianModernSlaveryAct

– engagingwithindustrybodiesmorebroadly–AMPisanactiveparticipantinmultipleindustryforums,suchastheAssociationofSuperannuationFundsofAustralia(ASFA)andtheFinancialServicesCouncil(FSC).

AMPoperatesinmultiplejurisdictionsaroundtheglobe.EachoneofthesejurisdictionshaslegislativeandregulatoryrequirementsthatAMPiscommittedtomeeting.

Future outlook 2019willbeanotheryearofsignificantregulatoryandlegislativechange.AMPwill:

– workconstructivelywiththegovernment,regulators,advisers,trusteesandotherbodiestoensurethat,astherecommendationsmadeintheRoyalCommissionFinalReportmoveintodefinitivelegislativereform,theoutcomesareclear,simpleandmeetthebestinterestsofcustomers

– ensurewecomplywithournewobligationsascontainedintherecentlypassedModernSlaveryAct2018

– embedtheGRGT’soperatingmodelwithinAMPandcontinuetogrowthecapacityoftheteam

– expandourfocustoincludeallregulatorsandentitieswithregulatoryfunctions(forexampleAFCA,theOfficeoftheAustralianInformationCommissionerandtheAustralianCompetitionandConsumerCommission).

AMP 2018 sustainability report – Our people18

Inordertoearnbackthetrustofcustomers,shareholders,regulatorsandthecommunity,wemustcontinuetoimprovetheculture,governance,accountabilityandinternalprocessesacrossthegroup.Ensuringthatourpeopleandadvisersoperateethicallyandtohighprofessionalstandardsiscriticaltoearningbacktrust.

Wewanttomeetcommunityexpectationsandactinthebestinterestsofourcustomers.Wehavemoretodoandwearecommittedtodoingit.

In 2018…Wetookavarietyofmeasurestostrengthenourconduct,andfocusonourcustomers’bestinterests,includingstrengtheningourriskmanagement,cultureandgovernanceprocesses.WealsoreviewedandupdatedourCodeofConduct,andenhancedourwhistleblowertrainingandsupportedqualityadvice.

Goodconductiscoretoourculture,aseveryoneofouremployeesisrequiredtoconductthemselvesethicallyandprofessionally.In2018,severalculturalissueswereidentified,whichresultedinacommitmenttoculturalreform.ThisreformisdrivenfromthetopofourorganisationandisnowledbyournewCEOandChairman.

Wesetoutthefollowingobjectivesfor2018:supportAMP-alignedadviserstomeettheFinancialAdviserStandardsandEthicsAuthority’seducationrequirements,continuetoprovidetools,trainingandexpertsupporttoadvisersandcontinuetopromoteourWhistleblowingPolicytoAMPemployeesandadvisers.Initiativeswerethendevelopedtosupportprogressontheseobjectives,whicharenotedinmoredetailinthissection.Theachievementoftheseobjectivesisanongoingpriorityforourbusiness.

Strengthening our risk management, culture and governanceInMay2018,AMPestablishedaprogramtochangehowwedobusinesstobettermeettheexpectationsofourstakeholders.Duringtheyear,theprogramfocusedontheactivitiesneededtorespondtoissuesraisedattheRoyalCommission,includingacceleratingremediationofclients.

In2018,AMPcompletedanAPRAself-assessment.Wehavesincecommissionedanindependentinvestigationintoemployeeconductinouradvicebusinessandanindependent,enterprise-widereviewofriskgovernance,controlsandculture.Asaresult,wenowhaveahighlyprioritisedprogramofworktoaddresstherecommendations.

Aspartofourcommitmenttostrengtheningriskmanagement,riskculture,internalcontrolsandgovernanceacrossAMP,weareinvestingapproximately$50million(pre-tax)perannumfortwoyearstoenhanceriskgovernance.Majorongoinginitiativesaspartofthisprograminclude:

– improvingthedesignandimplementationofthethreelinesofdefencemodeltoenhanceclarityandexecutionofriskresponsibilitiesandaccountabilities

– furtherdevelopingandembeddingtherisk-managementframeworkspoliciesandproceduresforthemanagementofriskandcompliance

– improvingthesystemsanddata-managementinfrastructuretosupportriskmanagementandconsistentriskandreturndecision-making

– strengtheningprocessesandtheinternalcontrolenvironmenttoimproveoperationalrisksandcompliance.

Code of Conduct and trainingAMP’sCode of Conductisourcommitmenttoactingethicallyandresponsibly.Itoutlinestheminimumstandardsofbehaviour,decision-makingandourexpectationsforthetreatmentofemployees,customers,businesspartnersandshareholders.

PoliciesthatcomplementAMP’sCodeofConductincludethoseoninclusionanddiversity,anti-moneylaunderingandcounter-terroristfinancing,conflictsofinterestandmarketdisclosure.

In2018,wereviewedandupdatedourCodeofConduct,inordertoprovideclaritytoeveryoneatAMPonhowtomeetourstandardsonaday-to-daybasis.KeychangesmadetotheCodeinclude:aclearerarticulationoftheCodeprinciples,

additionaldetailonreportingbreachesandmoreclearlyoutliningtheexpectationsofourleaders.Inaddition,thereisnowadedicatedpageforeachprinciple,whichincludesillustrativecasestudiesandexamples,detailsonconsequencesofbreachingtheCodeandlinkstorelatedAMPpolicies.

TheCodeprinciplesoutlineourcommitmenttohowweworkeveryday:

1. Weactprofessionallywithhonestyandintegrity

2. Werespectandvaluedifferencesandcreateasafeworkingenvironment

3. Weidentifyandmanageanyconflictsofinterestresponsibly

4. Werespectandmaintainprivacyandconfidentiality

5. Wecomplywithourlegalandregulatoryobligations,internalstandardsandpoliciesanddealwithbreachespromptlyandappropriately

Wealsodeployedawarenesstrainingandleadercommunications,includingcasestudiesandleader-facilitatedteamdiscussions,tobringtheCodetolifeforouremployees.Associatedonlinetraining,knownastheWorkingatAMPlearningmodule,wasalsoupdated.

Settingclearconductexpectationsforemployeesisoneleverforensuringconsistentethicalconductthroughouttheorganisation.AMPemployeesarerequiredtocompletemandatorytrainingmoduleseverysecondyearaftertheirstartdate.TheseincludePreventingFinancialCrime,WhistleblowingandPrivacy.

WhistleblowingWeencourageandsupportresponsiblereportingofactualorsuspectedillegal,unacceptableorundesirableconduct.AMP’sWhistleblowingProgramprovidesasecurechannelforpeopletoreportunacceptablebehaviourandprovidesassurancethatconcernswillbeinvestigatedinanobjective,independentandconfidentialmanner,withappropriatecorrectiveactiontakenwhereconcernsaresubstantiated.

5. Ethical conduct and professional standardsTrust in the financial services sector, including AMP, has been eroded through the findings of the Royal Commission.

AMP 2018 sustainability report – Our people19

In2017,weintroducedYourCall–anindependentandconfidentialexternalservicewherepotentialwhistleblowerscanregistertheirconcernsandreceiveadvice.Toensureallemployeeswereawareofandcomfortablewithusingtheprogram,in2018werolledoutmandatorytrainingonhowtousetheYourCallservice,witha95%completionrateachievedbytheendoftheyear.

In2018,therewere20whistleblowingissuesraised.SeventeenofthesewereraisedviaYourCallandthreereceiveddirectlybyourWhistleblowingProtectionOfficer.Ofthese20issues:

– 12wereinvestigatedandwerenotsubstantiated

– fourwereinvestigatedandsubstantiated,resultinginappropriateconsequencesbeingapplied

– fourremainunderinvestigation.

Wewillcontinuetopromotethisprogramtoallemployees,AMP-alignedadvisers,contractors,consultants,suppliers,thirdpartyproviders,secondees,advisers,brokers,auditorsandformeremployees,includingextendingtrainingonhowtousetheYourCallserviceforournon-executivedirectors.AMP’sWhistleblowingProgramisalreadywellplacedtocomplywiththenewWhistleblowerProtectionlegislationthatwillcomeintoeffectinthesecondhalfof2019.

MoreinformationonAMP’sCodeofConductandWhistleblowingPolicyisavailableatamp.com.au/corporategovernance.

Supporting quality advice Goodfinancialplanningisessentialforindividuals,familiesandforourcommunitymorebroadly.Mostadvisersactinthebestinterestsoftheircustomers,butwerecognisetherehasbeenasmallminoritywhohasnot.Weareworkinghardtomakesignificantimprovementsacrossouradvicebusinesstoensureouradvisersfocusonsupportingcustomersandmeetthehighestethicalandprofessionalstandards.That’swhywehaveinvestedsignificantlyinmakingqualityadvicemoreaccessible,moretransparentandmorecompliant.

In2018wefocusedonreviewingadviserconductandthequalityofadviceprovidedtocustomers,aswellasincreasingtheamountofmonitoringandsupervisionofadvisers.Bymakingimprovementsinourgovernancestructuresandstrengtheningthecontrolenvironment,wehavebeenabletomorequicklyidentifyinappropriatebehaviourandtakestepstoeitherexitorprovideadditionalsupporttoadvisersasappropriate.

Oneoftheimprovementsintroducedhasbeentheroll-outofAudit2.0–animprovedwaytoauditadvicetoensureitisinthebestinterestsofthecustomerandcomplieswiththelawandregulatorexpectations.Wehaveusedtheresultsfromthisprogramtoworkwithadviserstounderstandtherootcauseofauditfailuresandidentifyhowtheycanimprove.

WehavealsointroducedanewBalancedRiskProfile,whichtakesintoaccountalltheinformationwehaveabouttheadviceouradvisersdeliver,includingauditoutcomes.

Wewanttounderstand:

– whichadvisersareconsistentlydoingagoodjobofdeliveringadviceandfocusonhelpingtheirclientstoachievebetteroutcomes

– whichadvisersarewillingandabletodobetter,butneedfurthersupportandguidance

– whichadvisersareconsistentlyunableorunwillingtooperateattherequiredstandards.

Wewillterminateadviserswhocommitfraudormisconduct,whointentionallyorknowinglybreachtheirbestinterestdutytoclients,orwhoareunableorunwillingtoconsistentlyperformtotherequiredstandards.

Adviser training OurAdviceImprovementProgramdevelopedalearningstrategyforAMPadviser-facingemployees,AMPadvisersandAMP-alignedadvisers,resultinginthedevelopmentofsixnewlearningmodules:Scopeofadvice,Conflictsofinterest,Adviceappropriateness,Productadvice,PersonalinsuranceadviceandExecution-onlytransactions.ThemoduleswerereleasedbetweenMayandAugust2018andweredeliveredthroughablendedlearningapproachthatincludedonlinee-learning,webinarsandface-to-faceprofessionaldevelopmentdayworkshops,withadditionalsupportprovidedthroughlivewebinarcoachingsessions.Toensureahighlevelofunderstanding,apassmarkof100%wasrequiredforeache-learningmodule.

AMP 2018 sustainability report – Our people20

Despitethesestrictrequirements,therewasa98%completionrateforAMPandalignedadvisers,anda96%completionrateforAMPadviser-facingstaff.

Compliance with Financial Adviser Standards and Ethics AuthorityTheFinancialAdviserStandardsandEthicsAuthority(FASEA)wasestablishedinApril2017tosettheeducation,trainingandethicalstandardsforfinancialadviserslicensedunderAustralianlaw.AMPiscommittedtogivingouradvisersaclearpathwaytoFASEAcompliance.Asof1January2019,newentrantsintothefinancialplanningindustryrequireaFASEA-approveddegree(orhigher).ToensureallnewfinancialadvisersintheAMPnetworkareappropriatelycertified,AMPoffersaGraduateCertificateinFinancialPlanningqualification,whichcanbeusedforentrytotheFASEA-approvedMasterofFinancialPlanningqualificationatGriffithUniversity.

Existingadviserswillhaveuntil31December2023toensuretheycomply.Weunderstandthatreturningtostudywhilerunninganadvicepracticecanbechallenging,whichiswhywehavebuiltflexibilityintoourcourseprograms.

Weofferatwo-to-four-yeargraduatediplomaforexistingadviserswhodonothaveadegreeorwhosedegreeisnotinanadvice-relateddiscipline,andaone-to-two-yeargraduatecertificateforAMPadviserswithadegreeinarelateddiscipline(suchasaccountingoreconomics)whoareeligibleforrecognitionofpriorlearning.Wealsoofferafree,onlinetrainingcoursetoprepareAMPadvisersforpostgraduatestudy.

Currently,allofouradvisersareworkingtowardsfullFASEAcomplianceandwewillcontinuetomonitortheirprogressagainstthestipulatedparametersforeachFASEAstandard.

Adviser Pathways ProgramIn2018welaunchedtheAdviserPathwaysProgramforthosewhowanttobecomeafinancialadviser.Thisisablendedlearningexperienceofprofessionaldevelopmentandeducation.

Theprogramisopentograduateswithadegreerelevanttofinancialadviceandtothoseseekingacareerchange.

Theprogramhasfourphases:

– asix-monthfoundationaltrainingwithourCustomerEngagementteam

– asix-weekintensiveblendedlearningsolutionconductedthroughapartnershipbetweenGriffithUniversityandAMPAdviserAcademy–theeducationbodywithinAMPthatdeliversprofessionaladvisertrainingandeducationthroughtheAdviserPathwaysprogram

– a12-to-18-monthplacementinAMP’sphone-basedadviceteam

– afinaloptionalphaseofa12-monthface-to-faceadviceplacement.

Thebenefitsofthisprogramincludeongoingcoachingandmentoring,comprehensiveandflexibletraining,remunerationandongoingdevelopmentopportunities.

AsofDecember2018,AMPhad2,567advisersincorelicensees,whichwaslowerthan2017–largelyduetoexitsfromtheindustryincludingretirements.Duringtheyearweincreasedourfocusonreshapingtheadvisernetwork,shiftingtheemphasisfromadvisernumberstoproductivity,professionalismandcompliance.

In 2018…

Metric Value

Commitmenttostrengthenriskmanagement,internalcontrolsandgovernance $100m (over two years)1

Adviserscompletingmandatorytraining,includingCodeofConductandethics 98%

EmployeescompletingMyCallwhistleblowingprogramtraining 95%

Employeescompletingmandatorytraining,includingCodeofConductandethics2 97%

IssuesraisedthroughtheAMPWhistleblowingProgram 20

– IssuesdirectedtotheYourCallexternal,confidentialservice 17

– IssuesdirectlyreceivedbyourWhistleblowingProtectionOfficer 3

– Issuesinvestigatedthatwerenotsubstantiated 12

– Issuessubstantiated,resultinginappropriateconsequences 4

– Issuesstillunderinvestigation 4

RetailBankingRemunerationReview(Sedgwick)reportrecommendationsdeliveredon,orinthefinalstagesofbeingdeliveredon

24

1 Pre-tax.2 Asat31January2019.CompletedbyindividualsontheAMPpayroll,includingemployeesandtimeandmaterialscontractors.

AMP 2018 sustainability report – Our people21

Supporting study and research of financial advice at universitySince2014,wehavesupportedGriffithUniversity’sMasterofFinancialPlanning–adegreethatincludesAMP’sAdviserAcademy’sFinancialPlanningSkillsunit.

GriffithUniversityhasanewundergraduatedegree,theBachelorofAppliedFinancialAdvice,startingin2019.WeareprovidingAMPNewEntrantscholarshipstosupportstudentsundertakingFinancialPlanningstudiesandAMPAdviserAcademyScholarshipsforpostgraduatestudents.

AMPhasalsojointlyfundedaResearchFellowroleatGriffithUniversity.Topicsofresearchmayincludefinancialadvicequality,professionalstandards,regulatoryreformandconsumerbehaviour.

WecontinuetoruntheAMPUniversityChallenge–anationalfinancialplanningcompetitiontoidentifynewtalentandpromotehighstandardsofeducationandprofessionalismamongthenextgenerationofadvisers.In2018–itseighthyear–181studentsin83teamsparticipatedinthechallenge.

Sedgwick review recommendations for retail bankingThefinalRetailBankingRemunerationReviewreportbyformerPublicServiceCommissionerStephenSedgwickwasreleasedin2017.Approximately40recommendationsweredevelopedfromthatreview,aswellasfromrelated2017ASICandCombinedIndustryForum

reports,tochangeremunerationstructuresinretailbankstobemorealignedtocustomerneeds.

Bytheendof2018,AMPBankhaddeliveredorwasinthefinalstageofdelivering24oftherecommendations.Examplesinclude:

– changingemployee(frontline,middleandseniormanagers)remunerationwithregardstothevariablerewardpayment.Thisincludednotlinkingmorethan33%ofrewardtosales,ensuringthatthevariablerewardrepresentedasmalleramountthanthefixedportioncomponentandintroducingbalancedvariablerewardmetrics

– reviewingthecultureandperformance-managementsystemstoensurethereisnobiastosalesoverethics

– clarifyingtherelationshipandgovernanceofthirdpartyintroducers,removingvolume-basedincentives,changingcommissionstructuressoasnottodirectlylinktoloansize,implementingclearerdisclosuresofownershipstructuresandgreatergovernancewithregardsto‘softdollar’benefits(benefitsotherthanabasiccashcommissionoradirectfee).

Oftheremaining16recommendations,fivearenotapplicabletoAMPBank,leaving11tobedeliveredin2019.Theserelatetogreatergovernance,oversightandreportingforlenders,withregardstomortgagebrokers,andwillinvolveworkingwithotherindustryparticipants,aspartofourmembershipoftheCombinedIndustryForum.

Future outlook Asthemeasuresputinplacein2018takeeffect,our2019objectivesareto:

– workconstructivelywiththegovernment,regulators,advisers,trusteesandotherbodiestoensurethatoutcomesofourchangeprogramsareclear,simpleandmeetthebestinterestsofcustomers

– continuetostrengthenriskcultureacrosstheenterpriseandreinforceprofessionalandethicalstandardsexpected

– prioritiseactiontostrengthenriskmanagement,controlsandgovernanceacrosstheenterprise,includingupliftingcapability,enhancingtheframeworks,proceduresandtoolsusedtoensureeffectiveoutcomes

– evolveandrefinetheBalancedRiskProfileduring2019,guidedbyfeedbackandadditionalmetricsaswecontinuetotestandlearn

– promoteourupdatedpoliciesinternallyandensureallAMPemployeesandadvisersareawareof,andcomplywith,appropriateexpectations

– provideadditionaloptionsforcompliancewithFASEAforcurrentandfutureadvisers

– supportadvicestandardsthroughNewEntrantScholarships,ourcontinuingrelationshipwithGriffithUniversityandthe2019AMPUniversityChallenge.

Case study: Partnering with The Ethics CentreIn2018,wedeepenedourpartnershipwithTheEthicsCentreaspartofourcommitmenttoensuringouradvisersandemployeesmeetthehighestpossibleethicalandprofessionalstandards.Thisindependentnon-profitwasengagedtotrain,assessandaccreditinternalAMPcoachesasfacilitatorsofitsEthicalProfessionalProgram(EPP).TheEPPisalearninganddevelopmentcoursethatgivesfinancialservicesprofessionalspracticaltoolstohelpthemmakeethicaldecisionsintheworkplace.

Investingindevelopingthiscapabilityin-housesupportsthecreationofanethics-baseddecision-makingframework.Owningthedeploymentmodelin-housegivesustheopportunitytoembedtheprograminouroverarchinglearninganddevelopmentframeworkandotherinitiatives,suchasinductionandonboarding.Andthestrategicpartnershipreconfirmsourcommitmenttoethicalconduct,TheEthicsCentreandtheEPPinaformatthatisscalableforAMPandouradvisers.Sixty-twoadvisersandemployeescompletedthe2018programandwearecurrentlyinplanningtoextendthisprogramin2019.

AMP 2018 sustainability report – Our people22

Webelieveinaworkplacethatvaluesdifferenceandencouragesflexibilityandinclusion.Thisiscriticaltoourabilitytodeliveroutstandingresultsforcustomersandourshareholders.Wedonottoleratebullying,discrimination,harassment,victimisation,unreasonableorunlawfulbehaviourorunsafeworkpractices.

AsitisimportantforAMPtohaveawiderangeofideasandpeopletodelivertoourdiversecustomerbase,ensuringeffectivemanagementofinclusionanddiversityissuesiskeytothesuccessofAMP.Thisiswhywehavededicatedteamsdrivinganumberofinitiativestohelpachieveourself-setdiversitytargets.

In 2018…Despiteachallengingyear,wecontinuedtoimproveourapproachtoinclusionanddiversitybydevelopingnewinitiativestohelpmeetourcommitmenttogenderanddiversity.ThekeyfocusareasofinclusionanddiversityatAMParegenderequality,flexibleworking,ourAMProudinitiativeandencouragingdiversity.Keyinitiativesof2018includeanupdatedCode of ConductandInclusionandDiversityPolicy,andaredevelopedInclusionandDiversitySurvey.

Ourinclusionanddiversitygoalsfor2018weretoworktowardsachievinggenderparityinAMP’smiddleandseniormanagementby2020andtoincreaseourfocusonflexibleworkforouremployees.Ourflexibleworkinginitiativewascompletedacrossthebusinessin2018.However,limitedprogresswasmadewithregardtoourgenderparitygoals,whichhasspurrednewinitiativestodriveimprovementin2019.

Building a diverse workplaceIn2018,weredevelopedourInclusionandDiversitySurveyforlaunchinearly2019.Thissurveyaimstohelpusunderstandmoreaboutourpeople,whattheirexperienceofbelongingatAMPisandwhatwecandotomakeitagreatplacetoworkforeveryone.

WealsoworkedwiththeDiversityCouncilofAustraliatoidentifyandembedsevenbest-practiceinclusionanddiversityprinciplesforrecruitment.TheseprinciplesarenowinuseinsomedivisionsandwillberolledoutacrossAMPin2019.Theywillimproveourabilitytoattract,interviewandhireadiversepoolofsuitablecandidatesandultimatelyliftAMP’sperformance.

Therecruitmentprinciplesare:

1. Gender-balancedcandidateshortlists

2. Gender-balancedinterviewpanel

3. Allrolesadvertisedasflexible

4. Usethegenderdecodertooltoreviewjobadvertstoensuregender-neutrallanguageisused,whichavoidsoverlymasculineorfemininelanguageanddescriptors

5. Consideralladvertisingplatformsavailable

6. Dotherightthingbyunderrepresentedgroups–beopentoadaptingrecruitmentprocessestosuitcandidatesfromunderrepresentedorminoritygroups(includingneurodiversepeopleandpeoplewithphysicaldisabilities)whomayrequiredifferentintervieworonlineassessmentarrangements

7. Askforsalaryexpectationratherthancurrentsalary.

InNewZealand,AMPreceivedtheRainbowTick–acertificationthatrecognisesourfocusonbeingadiverseandinclusiveworkplaceforpeopleofdifferentgenders,sexualities,ethnicities,physicalcapabilitiesandcultures.

6. Inclusion and diversityAMP encourages a respectful, diverse and safe workplace that supports the physical and psychological wellbeing of our people.

AMP 2018 sustainability report – Our people23

Gender equalityAtAMP,wearestrongproponentsofgenderequality,andwhilewehaveyettoachieveourgenderdiversitytargets,weremaincommittedtothem.OurInclusionandDiversityPolicyrequirestheboardtosetmeasurableobjectivesforachievinggenderdiversityandtoassessannuallyboththeobjectivesandourprogress.

TheestablishedtargetfortheAMPLimitedBoardisforwomentohold40%ofboardpositions,mentohold40%ofpositions,andeitherwomenormentoholdtheremaining20%ofpositions.In2018,theboardrecognisedthatsignificantchangewasrequiredtorestoreconfidenceinourbusiness.HalfoftheAMPLimitedBoardinplaceatthebeginningoftheRoyalCommissionhassincechanged.Thedecisionofanumberoffemaledirectorstostepdownregrettablyreducedtherepresentationofwomenontheboard.

Theprocessofboardrenewalisunderway,withAndreaSlattery,JohnFraserandJohnO’Sullivansincejoiningtheboard.Allbringdeepleadership,sectorandgovernanceexperience.

AMP’sgenderdiversitytargetsformanagementpositionsrequirewomentohold47%ofseniorexecutiverolesand50%ofmiddlemanagerrolesbytheendof2020.In2018,wemaintainedasoundrepresentationofwomeninmanagementpositions.

Asaresultofchangestoourorganisationalstructurein2017,thebusinessdidnotmeetitsprogresstarget.Therepresentationofwomeninseniorexecutiverolesincreased(from38%)to39%at31December2018,withwomenholding41%ofmiddle-managerroles.Duringtheyear,AMPstartedimplementinginclusionanddiversitybest-practiceprinciplesforrecruitment,whichcomplementthediversityfocusofourbroadertalentmanagementpractices.

Overall,womenmakeup52%ofourworkforce.

InAustralia,thesuperannuationgendergapisamajorissue,withtheaveragesuperannuationbalanceforwomenbeingsignificantlylessthanthatofmen.Aspartofourfocusonclosingthegenderpaygap,effective1January2019AMPwillpaysuperannuationonunpaidparentalleaveforpermanentemployeesandfixed-termcontractorsacrossAMP.Thisisinlinewithsimilarinitiativesimplementedwithinthefinancialservicessector.

Flexible workingWearecommittedtomakingflexibleworkingmoreaccessibletoeveryoneatAMPandhaveapolicyof‘allrolesflex’.Wehaveastrongreputationasaflexibleemployerandwillbuildonthisin2019byincludingtoolstohelpourpeoplediscussflexibilitywiththeirleaders.

Flexibilitycantakedifferentformsandbeputinplaceforavarietyofpurposes.ThishasbeenpromotedthroughoutAMPandreinforcedbymanagementbyprovidingstoriesofhowleadersareusingflexibleworkingtobenefittheirwork-lifebalance.

AMProudAMProudisacommunitygroupforlesbian,gay,bisexual,transgender,intersexandqueer/questioning(LGBTIQ)employeesandtheiralliesandsupporters.ThegroupisopentoallAMPemployees,regardlessofsexualorientation,andpromotesadiverseandinclusiveenvironmentwhereemployeescanconfidentlypresentthemselves,andfeelfreetotalkabouttheirfamiliesandlives.

Future outlookIn2019wewill:

– willremaincommittedtoour2020genderdiversitytargets

– willusetheinsightsfromour2019InclusionandDiversitySurveytobetterunderstandourpeopleandinformculturaldecisionsatAMP.

In 2018…

Female representation by role 2020 target (%) 2018 progress target (%) 31 December 2018 (%) 31 December 2017 (%)

AMPLimitedBoard 40 40 11 40

Seniorexecutives1 47 41 39 38

Middlemanagement2 50 45 41 41

Allemployees n/a n/a 52 51

1 SeniorexecutivesaregenerallyonetotworeportinglayersbelowtheCEOandrepresentthetop8%oftheorganisation.Peopleintheserolestypicallyleaddiscretefunctionsandareresponsibleformakingstrategicdecisionsforthosefunctions.TheygenerallyhavethetitleGroupExecutive,DirectororHeadof.

2 MiddlemanagersaregenerallybetweenthreetosixreportinglayersbelowtheCEOandrepresentthenext25%oftheorganisation.Peopleintheserolestypicallyreporttoourseniorexecutivesandareinvolvedinoperationaldecision-makingorhavespecialisedandhigh-valueskills.Theyhavearangeoftitles,includingSeniorManager,ManagerandLead.

AMP 2018 sustainability report – Our people24

AMPactivelysupportsthephysicalandpsychologicalhealthofouremployeesthrougharangeofhealthandwellbeinginitiatives.Itisimportantthatwecontinuetofosteranenvironmentofcare,wellbeingandinclusionforallouremployeesandadvisersatAMP,inordertobuildtheirresilienceandagilityinthefaceofchangeandtofullyleveragetheirabilitiesandexperienceforourfuturedevelopment.

In 2018…2018wasachallengingyearforouremployeesandadvisers,especiallythosewhoweredealingdirectlywithcustomersvoicingtheirconcernsaboutissuesraisedbytheRoyalCommission.Throughouttheyear,weworkedhardtosupportthem.Keyinitiativesincludeddeliveringmentalhealthinitiatives,supportingnewadvisersandworkingincollaborationwithexternalstakeholderstodevelopthefutureoffinancialadvice.

In2018,ourgoalwastooffermoreadviserpathwaysandtrainingandtocontinuetocontinuetodevelopandembedPerform@AMP,whichisouremployeeperformanceframework,acrossthebusiness.TheAMPAdviserAcademyhasevolvedtobeincludedasanaspectofournewAdviserPathwaysProgram(seethe‘Ethicalconductandprofessionalstandards’sectionformoredetail).However,wearecontinuingtoworktowardsouremployeeperformanceframeworkobjective.

Healthy workplacesSince2013,AMPhasbeenrollingoutanactivity-basedworking(ABW)modelthroughoutourAustralianoffices.OurABWdesignincludesavarietyofworkingspaces,standingdesksandmobiletechnologytoencourageflexibleandhealthierworkpractices.Wearealignedwithhealthybuildingframeworks,includingGreenStar,theWELLBuildingStandardandFitwel,toensurebest-practiceinindoorenvironmentalquality,ergonomicsandactivespaces.In2018,weachievedthefirsttwoFitwelbuildingcertificationsinAustralia.Fitwelisabuildingratingsystemthatprovidesguidelinesonhowtooperateanddesignhealthierbuildingsforexistingworkplaces.OurBrisbaneofficereceivedaFitwel2StarratingandourSydneyofficewasawardedaFitwel1Starrating.

AsasignatorytotheRoyalAustralasianCollegeofPhysicians’ConsensusStatementontheHealthBenefitsofGoodWork,wehaveimplementedhealthandsafetysystemstominimisephysicalandmentalhealthrisks.Wehelpouremployeesmanagetheirhealththroughfitnessandnutritionprogramsandbyprovidingon-sitefluvaccinations,skincancerchecksandmedicaltests.

OurBoard’sRiskCommitteemonitorshealthandsafetyperformanceandoverseestheidentificationandmitigationofworkplacerisksandprogramstocontinuallyimproveinjuryandillnessprevention.OnemeasureofthisisthatourLostTimeInjuryFrequencyRate(onemilliondividedbyhoursworked)decreasedto0.38in2018,from0.39thepreviousyear.

Mental health initiativesAMPunderstandstheimportanceworkplaysinwellbeing,particularlymentalhealth.Wesupportouremployeesandadviserstomanagetheirmentalhealththroughresiliencetraining,flexibleworkpoliciesandaccesstoafree,confidentialcounsellingserviceforthemselvesandtheirimmediatefamilies.

Thisyear,ouremployees’workplacewellbeingwastestedduetotheRoyalCommission.OuremployeeengagementindexmeasuredinAugust2018was64%.Thiswasdownfrom76%in2017.Tosupportouremployeesthroughthistime,wedevelopedleadersupporttoolkitstoenableourleaderstobettersupporttheirteams.Wehavealsobeenrunninganumberoftrainingsessionsonresiliencethroughouttheyear.

7. Supporting and developing our peopleOur vision is to help our employees and advisers to be and perform at their best so they can help our customers achieve their goals.

AMP 2018 sustainability report – Our people25

In2017,welaunchedanupdatedmentalhealthtrainingprogramforallouremployeesandadvisers,inpartnershipwiththeBlackDogInstitute.Thistraininghascontinuedtoberolledoutforallnewstarters.In2018,thetrainingwontwoindustryawardsformentalhealthawarenesstraining:theFSCInnovationinRetailLifeInsuranceawardandANZIIFInsuranceLearningProgramoftheYear.

InClaims,face-to-facetrainingtomanagehigh-riskphonecallsandself-carestrategieswererolledoutbyourmentalhealthspecialists.AllClaimsemployeesattendedthetrainingandanewprocesswasdevelopedforemployeestofollowwhenfacedwithchallengingsituations.

MentalhealthtrainingofferedbytheWorkplaceMentalHealthInstitutewaspilotedinselectbusinessunits.Employeescompletedhalf-daytrainingonpersonalresiliencestrategiestomanagethechallengesandpaceofworkinglife.

Inadditiontothementalhealthtraining,wealsolaunchedourBeWellcampaigninAustraliaandWeCareinNewZealand.Thesesawtheintroductionoftwodaysofwellbeingleaveforallemployees,leveragingexistinginitiativessuchasRUOKDayandourEmployeeAssistanceProgram

services.OurSeptember2018peoplesurveyindicatedthattheseactivitieshavehadapositiveimpactonhowemployeesfeelaboutwellbeingatwork,with81%positivelyrespondingtothestatement‘AMPprovidesmewithwaystolookaftermyownwellbeing’.

Living WageAMPbecamethefirstfinancialservicesproviderinNewZealandtoadopttheLivingWage,whichmeansthateveryoneworkingatAMPinNewZealand,directorcontracted,receivesaminimumofNZ$20.55perhour–significantlyhigherthantheminimumwage.

Turnover DespiteachallengingyearinAustralia,annualemployeeturnoverratesremainedstable,with13%recorded(against12.8%in2017).However,theinternationalturnoverraterose(to7.6%)asdidtheNewZealandrate,with17.6%recorded(upfrom13%in2017).

The2018turnoverratesbygenderwerealsorelativelystable,at13.6%and13%formalesandfemalesrespectively(2017:13%and12.3%).

Future outlook Therewillbefurtherchangein2019aswecreateamoreagile,entrepreneurial,customer-focusedandcommercialAMP.Wewillcontinuetosupportanddevelopourpeople,including:

– mentalhealthwillremainakeypriorityin2019.Tosupportthis,aseriesofface-to-faceworkshopsforleadersandonlineemployeeawarenesssessionsprovidedbytheWorkplaceMentalHealthInstitutewillbeofferedin2019

– AMPintroducedsuperannuationpaymentsonunpaidparentalleaveeffective1January2019.

In 2018…

Metric 2018 2017

Losttimeinjuryfrequencyrate 0.38 0.39

AMPemployeeengagementindex 64% 76%

Maleemployeeturnover,yearlyaverage 13.6% 13.0%

Femaleemployeeturnover,yearlyaverage 13.0% 12.3%

TurnoverinAustralia,yearlyaverage 13.0% 12.8%

NewZealandturnover,yearlyaverage 17.6% 13.0%

Internationalturnover,yearlyaverage 7.6% 5.0%

AMP 2018 sustainability report – Our community26

Climatechangeposesarangeofphysical,transitionalanddirectorandlegalliabilitiestoourbusiness,theinvestmentswemanageonbehalfofourcustomers,andthewidercommunity.Forthisreason,wetakemeasurestoreduceourimpactontheenvironmentthroughresponsibleinvestingandcarbon-reductioninitiativesacrossthebusiness.

In 2018…In2018,wemadeprogressonincorporatingclimate-relatedrisksintoourbusiness-widerisk-managementprocessesandaspartofourpublicdisclosures.AMP’sinvestmentmanager,AMPCapital,undertookfurtheranalysesofclimate-relatedinvestmentrisksthroughitsdedicatedEnvironment,SocialandGovernance(ESG)capability.

AMPremainedcarbonneutralforourownoperationsforthesixthconsecutiveyear,recordinga44%reductioninScope1and2emissions,anda62%reductioninemissionsperemployeefrom2013.

Environmental and climate-related governance ResponsibilityforAMP’sclimatechange-relatedstrategiessitswithAMP’sChiefExecutiveOfficerandtheGroupLeadershipTeam.AMP’sEnvironmentalLeadershipTeamisresponsibleforaddressingoperationalenvironmentalimpactsacrossourofficesanddevelopsstrategiesandreviewsprogressagainstobjectivesandtargets.OtherAMPcommitteesconcernedwiththisareaoffocusincludetheGroupRiskandComplianceCommittee,theEnvironmentalLegislativeComplianceCommitteeandtheAMPCapitalInvestmentCommittee.

Task Force on Climate-related Financial DisclosuresAMPacknowledgesthe2017recommendationsoftheTaskForceonClimate-relatedFinancialDisclosures(TCFD),whichprovidesguidanceonhowcompaniescanconsiderclimatechangerisksandreportthemwithintheirexistingfinancialdisclosures.

Inaddition,theTCFDrecommendationsalignwithobjectivesofotherclimate-relateddisclosureframeworks.Forexample,theCarbonDisclosureProject(CDP),whichAMPhasbeenreportingagainstsince2002,adjusteditsquestionnairein2018tobetteralignwiththeTCFDrecommendations.AMP’sfull2018CDPsubmissionoutlinesourperformanceagainstthisframeworkandin2018,wemaintainedanA–LeadershipCDPscore.

In2018,AMPundertookaGroup-widereviewofclimate-changemanagement,whichincludedreviewingandidentifyingbusinesseslikelytobemateriallyimpacted,withinourexistingriskframework.

This2018reviewfound:

– asaninvestmentmanager,AMPCapitalconsidersclimatechangeamaterialinvestmentriskandhaswell-resourcedESGcapabilities

– existingrisk-managementprocessesandproceduresthatconsidertherisksarisingfromclimatechangecouldbeusedtomodelforward-lookingscenarios

– aneedtodevelopclimaterisk-relatedmetricsinourAMPBankandAustralianWealthManagementdivisions(ourlifeinsurancedivisionhasbeensoldtoResolutionLife).

Asaresult,AMPisincreasingitsanalysisandassessmentofclimaterisksandopportunitiesacrossthebusiness.

8. Climate change and the environmentAMP recognises climate change is a significant economic and environmental challenge impacting society.

AMP 2018 sustainability report – Our community27

AMP Capital analyses and investmentInrecentyearsAMPCapitalhasundertakenarangeofassessments,includingaprojectedcarbonpriceof$100/tonne(CO2-e)oninternallyandexternallymanagedequityportfolios.Ithasundertakenpreliminaryscenarioanalysisofvalueatriskfromthephasingoutoffossilfuelsforitsmajorequitybenchmarks.In2018itexpandeditscarbonfootprintinganalysestoincludebothequityandfixedincomeportfolios.

AMPCapitalundertakesregularresearchandassessmentsofclimatechangeriskstoitsmanagedinvestmentsthroughitsexistingESGframeworks.Thisconsiderscarbonregulation,directandindirectcosts,geographicexposuretoclimatepolicy,capacitytoadaptandmanagerisks,andtransitionalgovernmentalassistanceprograms.TheESGteamregularlypublishesitsinvestment research.

ClimatechangeisalsoconsideredthroughESGperformancebenchmarkingofAMPCapital’sflagshiprealestateandinfrastructurefunds.Thisinformsfundandassetmanagementstrategiesrelatingtocarbonemissionreductions,assetresilience,andfosteringinvestmentopportunitiesinlow-carbontechnologies.

OurRealEstatedivisioncompletedaportfolio-wideevaluationofclimatechangeriskandresiliencebymarketsectorandforeachassetusingtheIntergovernmentalPanelonClimateChange’s(IPPC)extremeRepresentativeConcentrationPathwayprojections.Thestudyconsideredovervarioustimescalesimpactsofextremeheat,bushfirerisk,drought,extremerainfall,cyclonesandseverestormevents,andimpactsofinlandandcoastalfloodingandsealevelriseformajorAustraliancitiesandmanagedrealestateassets.Thisinformationisbeingusedtodevelopourlong-termassetmanagementplans.

TheAMPCapitalWholesaleOfficeFund(AWOF)isaportfolioofcommercialpropertyassetswithatargetofbecomingcarbonneutralby2030.

Othertargetsincludeliftingtheportfolio’sNABERSaverageto5.5Starsby2030.Italsoincludesdeliveringapipelineofsustainableflagshipassets,suchasQuayQuarterTowerinSydney’sCBD,whichistargetinga6-StarGreenStarand5.5-StarNABERSrating,aswellaspursuingcertificationagainsttheleadingWELLBuildingStandard.

AMPCapitalalsoengageswithcompaniesandpolicymakersonclimatechangeandthrougharangeofinvestorcollaborationsandinitiatives.Thisincludesasco-founderoftheInvestorGrouponClimateChange(IGCC),anearlyinvestorsignatorytotheCDP,andactivelyparticipatingintheglobalClimate Action 100+investorengagementinitiative.

AMPCapitalaimstopromotetransparencyinequityportfoliosandprovidelow-carbonoptionsforinvestorsandcustomersofAMPsuperannuationaspartofthetransitiontoalow-carboneconomy.Inadditiontodirectinvestment(equityanddebt)inrenewableenergyassets,itsResponsibleInvestmentLeaders(RIL)fundsalsooffercustomerslow-carboninvestmentoptions.

AMP 2018 sustainability report – Our community28

Reducing our operational impactAMPisreducingitsenvironmentalimpactsthroughourownbusinessoperationsbyengagingemployeesininitiativestargetingresourceefficiencyandreductionsinourenvironmentalfootprint.Wearecommittedtobeingcarbonneutralacrossouroperations,includingScope3emissionssuchasairtravelandoutsourcedITservices(datacentres).

Wecontinuedtomakeprogressagainstourtargets,including:

– 44%reductioninoperationalScope1and2emissions(mainlyofficeelectricityusage)fromour2013baseyear

– 15%year-on-yearreductioninScope1and2emissionsfrom2017to2018

– reducingouremissionsperemployeerateto1.33tCO2-e,down62%from2013

– expandingreportingofourScope3emissionsbeyondairtraveltoincludeadditionalsources(e.g.waste,paper,outsourcedITandbasebuildingemissions).

Ouroperationalcarbon-reductionstrategyisunderpinnedbytheroll-outofactivity-basedworkingarrangementstoAMPofficesinAdelaide,BrisbaneandSydney.Thesecontinuetodeliverenergyefficiencyimprovements,demonstratedthroughhigherNABERSEnergyTenancyratingsofourbuildings.OurSydneyheadquarters(CircularQuay)achieveda5-StarNABERSEnergyTenancyratingin2018,risingfroma3.5-Starratingpriortoadoptingtheactivity-basedworkingmodel.MoredetailsareprovidedinAMP’sEnvironmentalperformancedata,reportedinlinewithAMP’sGreenhouseGasReportingCriteria.Since2013,AMP’sScope1,2and3emissionshavebeenassuredbyErnst&Young.

Future outlookAMPcontinuestobuildonitsprogressagainstenvironmentalissues,includingclimatechange,through:

– updatingthetermsofreferenceofAMPmanagementandgovernancecommitteestoconsiderclimaterisk

– strengtheningrisk-managementpracticestogivemorestructuredconsiderationstoemergingrisks(includingclimatechange)

– remainingcarbonneutralforourownoperationsandreducingoperationalenergyuse

– workingtowardsgreaterrenewableenergyadoptionthroughrealestateinvestmentportfoliosandAMPoperations

– assessingtheimpactsforoursuperannuationandbankdivisions.

AMP 2018 sustainability report – Our community29

AMP’s environmental performance data

Emissions (tCO2-e) 2018 2017 20131

AMP operations2

Total Scope 1 emissions 122 96 115

Scope 2 emissionsOffices3 7,686 9,221 13,871Datacentre4 – – 6,844Smallsites(wheredataavailable)5 431 385 –

Total Scope 2 emissions 8,117 9,606 20,715

Total Scope 1 and 2 emissions 8,239 9,702 20,830

Year-on-yearreduction 15% 5%Reductionfrombaseyear6 44% 33%Employees(FTE) 6,189 5,697 5,913Scope 1 and 2 emissions per FTE 1.331 1.703 3.523

Scope 3 emissions7 Airtravel 10,472 9,301 11,592Transmissionanddistributionlosses 1,067 1,347 –Waste8 269 173 –Basebuildingemissions 4,165 4,804 –Offshorebusinessprocessing 1,053 1,025 –OutsourcedIT 590 449 –

Total Scope 3 emissions 17,615 17,099 11,592

Gross Scope 1, 2 and 3 emissions 25,855 26,8019 –

Carbonoffsetsretired 25,855 26,831 32,422Paperusage(kg) 55,047 65,847 165,953Waste(kg) 272,765 165,222 –

Carbon Disclosure Project (CDP) rating A– A– B(77)

Managed investments (real estate)FY

2018FY

2017FY

2013

AMP Limited10

Scope1 8,117 8,455 12,120Scope2 108,790 98,203 154,462

Total Scope 1 and 2 117,087 106,658 166,582

1 2013isAMP’sbaseyear.2 EmissionsarisingfromAMPofficeoperations,includingofficeelectricityconsumption,airtravelandotheroutsourcedoperationalactivities.

ItdoesnotincludeinvestmentsmanagedbyAMPCapital,asoutlinedinAMP’s GHG Reporting Criteria.LimitedassuranceofthesefiguresisprovidedbyEY.

3 Anominaldecreaseof50%forourinternationalofficesoccurredduetoachangeinestimationmethodologies,asoutlinedinAMP’sreportingcriteria.

4 In2016,AMPsolditsownedandoperateddatacentre.AMPperformedanadjustmentonpreviousyearstoallowmeaningfulcomparisonsovertime.

5 Duetoimprovementsinmeteringanddatacollection,AMPcanreportonsmallerofficelocationswherepreviouslyunavailable.6 ReductionfrombaseyearcalculatedfromScope2figure,excludingdatacentreandsmallsites.7 From2017,AMPisreportingonadditionaloperationalScope3emissionssources.8 WasteisreportedforAMPheadquartersat33AlfredStreet,Sydneyonly.AMPhasrestatedits2017wastefigurefrom200,684kgto165,222kg

duetomoreaccurateactualdataprovidedthanthepreviousextrapolationsused.Theincreaseisduetoincreasecapacityinthebuilding,duetotheredevelopmentworksat50BridgeStreet.

9 Totalemissionsin2017restatedduetorestatedwastefigures.10 EmissionsarisingfromAMPCapitalmanagedrealestateandshoppingcentreportfolios,inadditiontoAMPofficetenanciesasreportedin

accordancewiththeNationalGreenhouseandEnergyReportingAct(NGER)2007.FiguresarereportedasatJune30yearend.Scope2emissionsincreasedinFY2018duetoAMPCapitaltransactionsresultinginanincreaseinassetsundermanagement.

AMP 2018 sustainability report – Our community30

Ourin-houseinvestmentmanager,AMPCapital,launchedourfirstresponsibleinvestmentfundsin2001,andin2007becameoneofthefirstsignatoriestotheUN-backedPrinciplesforResponsibleInvestment(UNPRI).Demandforsociallypositiveinvestmentopportunitieshassinceincreased.

Naturalresourceuse,environmentalmanagementpractices,climatechange,humanrights,workplacehealthandsafety,executiveremuneration,boardcompositionandgenderdiversityareamongthefactorsweconsiderwheninvestingonbehalfofourclients,includingAMPSuperannuationmembers.

In 2018…WedemonstratedourongoingcommitmentstoESGandresponsibleinvestingthroughAMPCapital:

– achievingA/A+ratingsforourPRIassessmentsacrossallmajorassetclasses

– completingfullimplementationofourethicalinvestmentframework

– maintainingGRESBInfrastructureTop10globalrankingsforthreeinfrastructurefunds

– FlagshipRealEstatefundsscoring80%+inGRESBreceivingfiveGreenStars–thehighestGRESBratingavailable

– Investmentsinenvironmentallyandsociallythemedareasreachingapproximately7%ofAMPCapital’stotalassetsundermanagement(AUM)includingrenewableenergy,waterinfrastructure,greenbondsandlow-carbonbuildingportfolios

– recognisedasAustralia’slargestmanagerof‘core’responsibleinvestmentfundsintheResponsibleInvestmentAssociationAustralasia2018benchmarkreport

Investment approachInvestingincompaniesandassetswithlong-termsustainablebusinessmodelsisanimportantpartofourinvestmentapproachacrossallassetclasses.AMPCapital’sESG and Responsible Investment PhilosophyoutlinesourapproachtoconsideringmaterialESGfactors.

OurteamofESGandsustainabilityspecialistsworkacrossbusinessfunctionsandinvestmentteams,providingresearchandadvicethatisintegratedintoourdecision-makingandactiveownershipstrategies.

Wealsoencourageboardsandmanagementofinvesteecompaniesandassetstoensuresoundriskmanagement,appropriatecapitalallocation,fairremunerationanddisclosure,anduseourproxyvotingpowertoencouragecorporatebehaviourthatdeliversbetterresultsforall.

AMPCapitalisrequiredtoreportitsmanagedrealestateandshoppingcentreinvestmentfootprintundertheNationalGreenhouseandEnergyReporting(NGER)Act.ThisisreportedtotheCleanEnergyRegulatorwithAMPoperationsanddisclosedinourenvironmentalperformancedata(seepage29).

AMPCapitalhasalsobeenprogressivelydisclosingthecarbonfootprintofitsequityfunds.In2018,thisexpandedtoincludefixedincomeportfolioreporting.ThesedisclosuresarepublishedontheAMP Capital website.

In 2018…

Metric Value

FlagshipRealEstatefundsGRESBrating 80%+

AMPCapitalInfrastructurefundsinGRESBTop10 3

%ofAUMinvestedinenvironmentalandsocialthemedareas 7%

PRIreportingandassessmentscores(acrossallassetclasses) A/A+ rating

9. Responsible investingBy considering environmental, social and governance (ESG) factors in investments, AMP aims to drive better long-term financial outcomes for our clients and make a positive impact on the community.

AMP 2018 sustainability report – Our community31

Ethical framework implementedInSeptember2018,AMPCapitalcompletedthefullimplementationofitsethicalinvestmentframework,includingdivestmentof$440millionworthoftobaccomanufacturing-relatedholdingsfromAMPCapital-managedportfolios.

Thisannouncement,thelargestbyafundmanagerinAustralia,coincidedwithAMPCapitalco-foundingtheTobacco-FreeFinancePledge(TFFP),whichwaslaunchedattheUnitedNations.Thepledgemarksaglobalmovementtopromotetobacco-freefinanceinlinewiththeUnitedNations’SustainableDevelopmentGoalsandWorldHealthOrganisationFrameworkConventiononTobaccoControl.

AMPCapitalcollaboratedwithTobaccoFreePortfolios–anon-profitfoundedbyAMPTomorrowFundrecipientDrBronwynKing(seepage34)–andglobalfinancialservicespeerstodevelopthepledge,sharingourexperienceinethicalinvestmentanddemonstratingstrategiesandimplementationpathwaystowardstobacco-freefinance.

AMPCapitalalsocompletedthedivestmentfrommanufacturersofclustermunitions,landminesandchemicalandbiologicalweapons,representingmorethan$130millioninsecurities.

WecontinuedtoinvestwithimpactthroughourflagshipResponsibleInvestmentLeadersFunds.In2018,AMPCapitalengagedcompaniesworldwideonarangeofESGrisks,includingmodernslaveryandhumanrightsinsupplychains,executivepay,climatechangeandgenderdiversity.Wealsosupportedourinternationalinvestmentcapabilities,withESGspecialistsappointedtoseniorrolesinourofficesinLondon,HongKongandSydney.

AMPCapitalalsomanagestheAMPCapitalCommunityInfrastructureFund(CommIF),whichinvestsinsocialinfrastructureassetsacrosshealthcare,education,justice,defence,communityhousing,transport,waterandrecreationalfacilities.

In2018,thefundacquiredanadditionalstakeintheVictorianDesalinationProject(VDP),apublicprivatepartnershipandthelargestdesalinationplantintheSouthernHemispherewhichcansupplyupto150gigalitresayear–approximatelyathirdofMelbourne’sannualwaterconsumption.

Theneedforinvestmentinsocialinfrastructureandhealthcareisgrowingindevelopedmarkets.OnbehalfofinvestorsinitsGlobalInfrastructureEquitystrategy,AMPCapitalmadeinvestmentsintheUKspecialistcaresector,acquiring100%ofCareManagementGroup(CMG)andTheRegardGroup.BothorganisationsprovideresidentialandsupportedlivingservicesacrosstheUKforpeoplewithlearningdifficultiesandalivedexperienceofmentalillness.

Future outlook AMP,throughitsinvestmentmanagerAMPCapital,willmeettheincreasingdemandforsociallypositiveinvestmentopportunitiesby:

– continuingtoassessESGriskstoenhanceourlong-termdecision-making

– monitoringESGintegrationacrossthebusinessandimprovingmeasurementandreportingontheenvironmentalandsocialimpactsofourinvestments

– providingfurtherinvestmentopportunitiesforourclientsandpartnersinfundsandassetswithimprovedESGcredentials.

AMP 2018 sustainability report – Our community32

Weunderstandthattheresponsiblesourcingofgoodsandservicescreatesvalueforourcustomers,ouremployeesandthecommunity.

OursupplychainsprimarilyconsistofregulatedoutsourcedservicesandrelationshipswithotherinstitutionsinAustraliaandoverseas.

Weclassifysuppliersbasedonmaterialityandapplyappropriategovernanceoverthesearrangementstoensureweadequatelymanageservicedeliveryandrisk.

Wehavecontrolsinplace,suchascontrolself-assessmentsofsupplierarrangements,thatconsiderrisksandopportunitiesinoursupplychaintoensurecommitmentto:

– actingethicallyandwithintegrityinourbusinessrelationships

– providingrespectfulandsafeworkplaces,freefromdiscrimination

– observingInternationalLabourOrganisationprinciplesandtakingstepstoaddressmodernslaveryinoursupplychains

– consideringandmonitoringtheenvironmentalimpactofgoodsandservicesusedbyAMP.

In 2018… In2018,wecontinuedtotrackandmonitorScope3emissions(indirectemissions)frommaterialsourcesinoursupplychain,includingoutsourcedITinfrastructuresuchasdatacentres,travelandotherbusinessprocesses.ThesearedisclosedinAMP’senvironmentalperformancedata(seepage29).

AMPCapitalupdateditsAnti-SlaveryandHumanTrafficStatementtocomplywithitsobligationsundertheUKModernSlaveryAct2015.

TostrengthenourcontrolsandtopreparefortheAustralianlegislation,in2018AMPestablishedadedicatedprojecttofurtherdeveloptheunderstandingofourModernSlaverysupplychainrisksandsuppliermanagement.Buildingonthisanalysis,wehaveidentifiedanddevelopedanumberofmeasuresandcontrolsaimedataddressingmodernslaveryrisks.

Future outlookAMPisexploringopportunitiestocollaboratewithindustrypartnerstoreducethereportingburdenonourcommonsupplychains,aswellasimprovingdataqualityandintegrityinrelationtotherisksandpracticesdisclosedbysuppliers.

WearealsoplanningtointroduceaSupplierCodeofPractice,whichwillbettercommunicateourpoliciesandexpectationstooursuppliers.TheCodewilldrawonexistingAMPpoliciesandstandardsandcoversarangeofgovernance,socialandenvironmentalissues.

In 2018…

Metric Value

Numberofmaterialoutsourcingarrangements1 10

Numberofkeyoutsourcingarrangements2 20

Numberofannualcontrolself-assessmentsconductedduringtheyear3 180

1 AsanAPRA-regulatedentity,AMPmustdefineandappropriatelymanageservicearrangementsthatarematerialtoAMPservicedeliveryandoperation.

2 Keysuppliersarestrategicallysignificantserviceproviders,whicharenotdefinedasmaterialunderregulations.3 Controlself-assessmentsconsistoffourquarterlyandoneannualassessmentconductedeachyearforourtop36suppliers.

10. Sustainable supply chainEvery aspect of AMP’s supply chain needs to meet the standards increasingly expected by the public and set by the law.

AMP 2018 sustainability report – Our community33

AMPiscommittedtoinvestinginourcommunitythroughtheAMPFoundation–ourphilanthropicarm.

TheAMPFoundationworksstrategicallytobringaboutpositivechangeinourcommunity.Itfocusesonhelpingpeopleaccesseducationandemploymentopportunities–importantkeystofinancialsecurity.ItalsosupportsAMPemployeesandfinancialadviserstosharetheirtime,skillsandresourceswiththecommunity.

TheAMPFoundationwasfoundedin1992and,todate,hasinvestednearly$100millioninthecommunity.

In 2018…In2018,theAMPFoundationcontinuedtoworkwithitscommunitypartners,manyofwhichareunlockingsustainableemploymentopportunitiesformarginalisedAustralianswhofacechallengessecuringwork.Ouremployeeswereveryactiveinthecommunity–organisingfundraisingeventsandvolunteeringtheirtimeandskillstoarangeofnon-profitorganisations.

Ouradviserscontinuedtheirprobonowork,providingfreeadvicetopeopleaffectedbycancer.TheAMPTomorrowFundinAustraliaandtheAMPScholarshipsprograminNewZealandprovidedgrantstotalentedindividualswhoareworkingtocreatebettercommunities.

Community partnersTheAMPFoundationformsmulti-yearpartnershipswitharangeofnon-profits.Partnershipfundingcanincludegrowthcapital,coreinfrastructure/operationalfundingorprogramfunding(oracombinationofallthree).Wherepossible,theAMPFoundationfacilitatesmentoring,skilledvolunteeringandfundraisingforitspartners.In2018,theAMPFoundationsupportedthefollowingorganisations:

– Clontarf FoundationengagesyoungAboriginalmaleswithschoolandtheworldofwork

– First Australians CapitalsupportsAboriginalentrepreneurstosetuporexpandbusinesses

– Global Sistershelpsdisadvantagedwomenruntheirownbusinesses

– Social Ventures Australiasupportsthesocialsectortogrowitsimpact

– STREATrunssocialenterprisestoprovidemarginalisedyoungpeoplewithemploymentpathways

– The Conversationisaleadingfreeonlinenewsoutletthatmatchesacademicswithjournalists.Wesupportresourcingtopublishemploymentinsights

– The Funding Networkbuildsthecapacityofsmall,innovativenon-profitsthroughlivecrowdfundraisingandtraining

– The Stroke Association of Victoriarunsaninnovativereturn-to-workprogramforstrokesurvivors

– Vanguard Laundry Servicesisasocialenterprisecreatingjobsandcareerpathwaysforpeoplewithalivedexperienceofmentalillness

– Wesley Missionhelpsyoungpeopleinfostercaretotransitionintoemployment

– Settlement Services Internationalrunsasocialenterprisethatprovidesrefugeeswithpracticalofficeworkexperience.

11. Community investmentIt is in everyone’s interest to ensure our communities are healthy and resilient, and provide opportunities for all.

AMP 2018 sustainability report – Our community34

AMP Foundation’s Employee Volunteering ProgramTheAMPFoundationsupportsemployeestodonatetheirtimeandresourcestoarangeofcharities.In2018thisprogramcontainedthefollowingcomponents:

– Volunteering and mentoring:AMPemployeescontributed17,912hourstonon-profitsthroughvolunteeringandmentoring.

– Fundraising and payroll giving:employeesraised$878,894throughourfundraisingandpayrollgivingprograms,themajorityofwhichwasmatchedbytheAMPFoundation.

– Unsung Heroes:64AMPemployeeswhoservedonacharityboardorvolunteeredformorethan80hoursoftheirtimeperyearreceiveda$5,000AMPFoundationdonationtothatcharity.

Social impact investingTheAMPFoundationinvestsapercentageofitscapital(upto3%)insocialbenefitfinancialinstrumentsthatachieveafinancialreturnanddemonstratedsocialoutcomes.In2018itheldinvestmentsintheNewpinSocialBenefitBondandtheSocialVenturesAustraliaDiversifiedImpactFund,withourBenevolentSocietySocialBenefitBondinvestmentmaturinginOctober.

AMP’s Tomorrow FundIn2018,theAMPFoundationoffereditsfifthAMPTomorrowFund–a$1milliongrantsprogramforindividualswhoseideasandeffortsbenefitAustralia.Theprogramoffersgrantsofbetween$5,000andupto$100,000.In2018,theprogramawardedgrantsto43Australiansandthewinnersincludedsocialentrepreneurs,musicians,medicalresearchers,athletes,scientistsandtechnologists.Moreinformationatampstomorrowfund.com.au.

Cancer Council Pro Bono ProgramEstablishedin2010,thisprogramenablesfinancialadviserstosharetheirexpertisewithpeopleaffectedbycancer,atnocost.TheAMPFoundationfundstheoperationalcosts,whichenablespeopleaffectedbycancertoreceivefreeguidanceonissuessuchasaccessingCentrelinkbenefits,applyingforearlyaccesstosuperannuationandinsurancebenefits,budgetingandestateplanning.Thisnationalprogramsupported588familieswithfreeadvicein2018.

Case study: Adviser lifts the burden Sinceitsinceptionin2010,theAMPFoundation-fundedCancerCouncilProBonoProgramhashelpedmorethan5,500peopleaffectedbycancertomanagetheirfinances.

MelbournefinancialadviserGenineCowellhasbeenprovidingprobonosupporttopeopleaffectedbycancerthroughtheprogramsince2012.Butitwasonlyafterherownbrushwiththediseasethatshecametofullyappreciatetheprogram’simpact.

“Whensomeoneisdiagnosedwithcancer,theyoftentalkabouttheirlifebeingputonhold.Inowunderstandwhatthatreallymeans.It’snotjustthecancertreatment,it’sallaspectsoftheirlives;particularlytheirfinancialsituation,”Geninesaid.

In2018,GeninereceivedanAMPFinancialPlanningProBonoAwardforhervolunteerwork.Bytheendoftheyear,herpracticehadadvised62peoplethroughtheprogram.“Ifounditwasimportantthatifwecouldtakesomeofthatburdenofftheirshoulders,theycouldfocusonfightingthedisease.”

Adviserssupportpeopleaffectedbycancerwithadviceonarangeofissues,includingaccesstoCentrelinkpayments,renegotiatingorsuspendingloanrepayments,andmakingnewbillpaymentarrangements.

Oftentherelationshipscontinueaftertheinitialadvice.Geninestillassistsaclientwhosehusbanddiedfromcancer.“Hesaid,‘canyoumakesureyoulookafterherforme’…soanumberofusworktogethertohelpher.”

AMP 2018 sustainability report – Our community35

Other AMP community initiativesInDecember2018,AMPlauncheditsFinancialHelpHub–anonlinefinancialeducationcentrethatprovidesAustralianswithtipsandtoolstostrengthentheirknowledgearoundmoney,investingandlivingtheirbestretirement.Itincludesjargon-freearticles,videos,infographicsandcalculators.

AMPCapitalShoppingCentresinAustraliaandNewZealandcoordinatearangeofactivitiesforcharitiesofimportancetothelocalcommunity.In2018,theyformedpartnershipswithlocalnon-profitorganisations,providingfundraising,volunteeringandin-kindsupport.

InNewZealand,theAMPScholarshipsprogramcelebrated20yearsofhelpingpeoplereachtheirgoals.In2018,22NewZealanderswereawardedgrants.

Duringtheyear,AMPalsopartneredwithKeyToLifetodelivertheIAMHOPETour–amentalhealthinitiativetocombatNewZealand’shighyouthsuiciderate.AMPalsopartneredwiththeSupportCrewsocialenterprisetosupportcustomersinNewZealandatclaimtime.Thisonlineplatformmakesiteasierforpeopletoaskforassistanceintimesofneedandforotherstoco-ordinatetheirresponses;includingmeals.

Formoreinformation,visitamp.com.au/ampfoundation.

Future outlook In2019wewillcontinuetoinvestinthecommunityandsupportouremployeesandadviserstodonatetheirtime,skillsandresources.Wewillcontinuetosupportourexistingcommunitypartnerships,bothinAustraliaandNewZealand.TheAMPFoundationwillremainfocusedonsupportingnon-profitpartnersthatprovideeducationalandemploymentopportunitiestodisadvantagedAustralians.

Wewillalsohelptopromotesustainableandcommunity-mindedbehaviourthroughthebusinessandexplorenewwaystohelppeopleinthecommunityachievefinancialresilienceandsecurity.

In 2018…

Community investment breakdown 2018

AMPFoundationdirectgiving $4,915,615

OtherAMPdirectgiving $123,991

Employeegivingandfundraising $1,027,4521

Employeevolunteeringcontributionvalue $2,001,605

NumberoffinancialadvicecasesdeliveredviaCancerCouncilProBonoProgram 588

CancerCouncilProBonoProgramservicevalue $588,0002

In-kindsupport $1,233,0873

RateofemployeeparticipationinAMPFoundationprograms(volunteering,fundraising,payrollgiving)

50%

Totalcontributiontothecommunity(includesfunds,in-kindandvolunteervalue) $10,238,241

1 Australianemployeefundraisingandpayrollgiving,andfundraisingfacilitatedbyAMPCapitalShoppingCentresemployees.2 Basedon$1,000perprobonocase.3 Includesfreeorsubsidisedrentfornon-profits,AMPCapitalShoppingCentresspacedonatedtocommunitygroupsanddonateduseoffunction/

meetingrooms.

Contact usweb amp.com.au

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@AMP_AUor@ampfoundation

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