Martin Hunter18 September 2018

ESG in Strategy & Purpose

Martin HunterChief Risk OfficerIAG NZ

Long standing commitment to ESG principles

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2004IAG joins Australian Climate Group, releases ‘Climate Change Solutions for Australia Report’

2006Signatory to UN Principles of Responsible Investment (PRI)

2007Commitment to become carbon neutral by 2012 (achieved)

2012Founding member of Australian Business Roundtable for Disaster Resilience & Safer CommunitiesFounding member of the UN Principles of Sustainable Insurance (PSI)

2014IAG signs Geneva Association Climate Risk Statement

Refreshed climate change policy position following Paris AgreementAustralian Red Cross partnership to help communities build resilienceResilient Cities initiative

2018Climate Change Action PlanUNEPFI conference: ‘Financing a Resilient and Sustainable Economy’

2016 –2017

Social issues are business issues.Economies and societies are experiencing rapid technology, social, environmental and economic change. Societal expectations of institutions and peoples’ trust in them is changing. A re-balancing is needed, so that people and institutions work together.

Context

Trust in institutions and the ‘system’ iseroding.A model of institutional distrust

A fundamental shift is occurring, leading to a new model of influence and authority.

Three out of four institutions are not trusted to do what isright.(% who trust institution to do what is right)

Current tensionInfluence has shifted to the people; peopleusing influence torejectestablished authority.

Old model“For the people”Elites manage institutions to dothings ‘for’ the people.

Influence and authority: Institutions

Influence and authority: People

New model“With the people”Institutions working withpeople; institutionalsilos dissolved.

Influence and authority: People andInstitutions51%

38% 41%

54%

51%

2017

2016

47%

29%

46%

31%

Most people think that the system is failing.(% who agree)

47%

22%

Agree

NGOs

Business Media Government

Data Source: Edelman Trust Barometer 2017 – New Zealand report

Dis

trust

ed

Neu

tralT

rust

ed

Uncertain

Disagree

51% of people feel businesscan do more than governments.

Rise in belief driven buyers across allmarkets.

Trust is the single most important currency inthe business world.

Business is the lastline of defence forthoseuncertain about thefutureand institutions.

Managing and deliveringagainst expectations will berewarded.

On the issuesthat matter, silence is not an option.

-3% -4% -9% +5%

• Decent Work and Economic Growth – recognising insurance is a service that helps communities to thrive and recover from adversity.

• Industry, Innovation and Infrastructure – a role in supporting investment to find lasting solutions to both economic and environmental challenges.

• Sustainable Cities and Communities – using our expertise and partnerships to deliver resilient and sustainable communities and infrastructure.

• Climate Action – regional leadership on climate change.

Sustainable Development Goals

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Eleven capabilitiesOptimise our core insurance business while creating future growth options

Three strategic priorities

Alignment to purposeWe make your world a safer place

A purpose-led organisation that shapes its internal and external environment• Improving community engagement• Strategic partnerships with the NSW and Queensland State Emergency Services,

Red Cross, Lifeline and NIWA (flood mapping)• Australian Business Roundtable – five reports issued on disaster mitigation• Global role in the United Nations Environment Programme Finance Initiative –

understanding of climate change and natural disasters to develop industry-wide solutions

• Using technology to mitigate the risk of loss – Fireblanket, DipStik and Safer Journeys app

• Consumer Advisory Board – 2016• Customer Conduct Council – 2018• Member of NZ Climate Change Adaptation Working Group – 2017• Resilient New Zealand

Shared value framework – safer, stronger, more confident communities

Responsible business

Resilience to natural perils

Business resilience

Access and affordability

solutionsSocial

resilience

Safer at work

Safer at home

Safer on our roads

Annual materiality assessment

Customer and partner

experienceFuture-focused

innovationCommunity resilience

Financial performance

Climate changeand natural perils

Organisationalculture aligned

to purpose

Access and affordability

Customer Simplification Agility

00 Month 2018Presentation title

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