for the generations of today and tomorrow · left to right alex kersley group technology solutions...

Responsible Business Report 2018

For the generations of today and tomorrow

Who believes acompany’s valuegoes beyondmaking profit?

1Quilter Responsible Business Report 2018

Contents

Introduction02 Introduction04 Highlights06 Our business

Our Shared Prosperity Plan08 Our Shared Prosperity Plan10 Our commitments11 The UN Sustainable Development Goals

Goal 2: Enable secure futures16 Overview17 Our commitments19 Looking forward

Goal 3: Promote responsible investment20 Overview21 Our commitments24 Looking forward

The Quilter Foundation25 The Quilter Foundation

Goal 1: Enhance financial capability 12 Overview13 Our commitments15 Looking forward

Responsible business management28 Overview29 Operating responsibly 30 Stakeholder engagement31 Looking forward32 Glossary

Left to right Alex Kersley Group Technology Solutions Amie Lovell Marketing Sarah Meads Sales and Distribution

Introduction

Introduction | Foreword Quilter Responsible Business Report 2018 2

Quilter plc is a leading UK and cross-border full service wealth manager. We are guided by our core purpose to help create prosperity for the generations of today and tomorrow.

Our Shared Prosperity Plan is our approach to responsible business. It is informed and shaped by our engagement with our stakeholders and reflects external socio-economic trends affecting our customers, society and our business.


I’m so thankful we’re in a position to support these amazing young people. The other highlight, which is very close to my heart, is our Thrive programme. This is shining a light on mental health and wellbeing, and we’re working hard to create a culture at Quilter where it’s OK to talk about these issues and support people when they need it.

Q: What are some of the challenges you see ahead? For me one of the biggest challenges is the savings gap. Millions of people are simply not financially prepared for their retirement, and not only that, we know that many lack the financial capability to manage their money effectively. This is so important in a time where individuals have been handed the responsibility to plan and prepare for their financial future. The situation isn’t sustainable and we as an industry have a huge role to play in helping people have a secure future. It’s why our work around financial education is so critical.

Q: What role does responsible investment play in your plans?As allocators of capital, I believe the investment industry can play a key role in tackling some of the most challenging social and environmental issues of our time. We have signed up to the Principles for Responsible Investment (PRI) and in 2019 will be embedding these more deeply in our business.

Our CEO’s view

Q: What does responsible business mean to you? For me it’s all about doing business the right way, staying true to our values and always remembering that first and foremost we’re here to serve and to help people. Fundamental to this is doing business responsibly and striving to make a positive impact in all we do.

Q: How does the Shared Prosperity Plan contribute to Quilter’s business strategy? When we created the Shared Prosperity Plan, we looked at the big social, environmental and economic issues facing our customers, colleagues and wider society, and identified those for which we felt we could be part of the solution. As you’ll see we focus on enhancing financial capability, enabling secure futures and promoting responsible investment; these are all inextricably linked to customer outcomes, the long-term future of the investment and savings industry, and Quilter’s success.

Q: What were the highlights for you in 2018?Well, 2018 was a big year for Quilter. We separated from our parent company and listed on the London and Johannesburg stock exchanges as Quilter plc. I’m incredibly proud of what our people have achieved so far and excited by our future. Aside from that, there are two particular highlights for me. The first is the Quilter Foundation which we launched in 2018. Whilst the business helps people prosper, the Foundation helps young people fulfil their potential, thrive and prosper. The Foundation’s Young Carers campaign makes me incredibly proud and humbled, and

View from the BoardI believe that the role of culture, values and responsible business in a company’s success cannot be understated. As a Board, we’re responsible for ensuring that the executive management team place adequate focus on these matters. I’m pleased that Quilter has made a clear commitment to responsible business and am encouraged with the progress already made. However, the Board recognises that this is an ongoing process and we look forward to further progress next year. Of particular interest is the action being taken to promote an inclusive culture that embraces diversity. This remains an ongoing challenge for the industry and requires concerted effort to affect change in the medium term.

Paul FeeneyChief Executive Officer

Cathy TurnerNon-executive Director Lead on Responsible Business

Introduction | Our CEO’s view

2018 Highlights

116To date 116 people have graduated from the Quilter Financial Adviser School, which is run on a not-for-profit basis.

Industry collaborationQuilter co-chairs KickStart Money, a ground-breaking financial education programme in primary schools backed by 20 leading saving and investment firms. Together we aim to reach 18,000 children over three years.

22,810We have helped to improve the financial capability of 22,810 young people through our financial education programmes since 2016.

£1.1mDonated to charity during 2018, including colleague fundraising, corporate donations and community investment via the Quilter Foundation.

The Quilter FoundationIn 2018 we launched the Foundation as a stand-alone registered charity which will help thousands of young people fulfil their potential, thrive and prosper – focusing on employment, education, health and wellbeing.

120 Thrive AmbassadorsWe launched our wellbeing initiative, Thrive, in 2018, which provides colleagues with tools, information and services to enhance their mental health and wellbeing.

Renewable energyBy the end of 2018, 57% of our colleagues were working in buildings that use renewable energy.

PRI signatoryIn 2018, Quilter became a signatory to the Principles for Responsible Investment.

34% women Our senior management community is now 34% female and we remain committed to reach 35–40% by the end of 2020 as a signatory to the HM Treasury Women in Finance Charter.

4Quilter Responsible Business Report 2018Introduction | Highlights

Enhancing financial capability

Enabling secure futures

Promoting responsible investment

We are a leading wealth management business, helping to create prosperity for the generations of today and tomorrow.

Our business

6Quilter Responsible Business Report 2018Introduction | Our business

Quilter is a leading, UK and cross-border full service wealth manager, providing advice-led investment solutions and investment platforms to over 900,000 customers.

Quilter is a modern, multi-channel wealth management company. We believe in transparency and customer choice. We service customers either through our restricted financial planners or third-party independent financial advisers by providing investment solutions and platform services.

Quilter operates in one of the largest wealth markets in the world – and one that is growing. With scale and leading positions in our chosen capabilities, we give financial advisers and their clients choice and flexibility in how they access our solutions and services.

Our purpose: To help create prosperity for the generations of today and tomorrow.

We believe:• in the value of trusted face-to-face advice;• that better choice doesn’t mean more choice;• that expert investment solutions should be

simply packaged;• that award winning service and measurable

outcomes for our customers should always offer good value; and

• that a company’s purpose goes beyond making a profit.

Hinesh Patel Portfolio Manager Quilter Investors


Total split by gender% (number)

52% (2,258) 48% (2,085)

2017: 54% (2,355) | 46% (2,033)

Quilter plc Board split by gender% (number)

64% (7) 36% (4)

2017: 64% (7) | 36% (4)

Executive Committee split by gender% (number)

79% (11) 21% (3)

2017: 92% (12) | 8% (1)

Senior management split by gender2

% (number)

66% (70) 34% (36)

2017: 71% (66) | 29% (27)

Male Female

Quilter colleagues 2018 vs 2017As at 31 December 2018

Total number of colleagues1

4,3432017: 4,388

Our business segments and operating companies

Advice and Wealth Management

Our Advice and Wealth Management segment consists of:

Quilter Financial PlanningQuilter has the second largest advice business in the UK. Through our Network advice business, 1,621 restricted financial planners who operate through their own branded firms, deliver face-to-face financial advice tailored to meet specific needs of customers. We stand behind their advice, and provide them with a panel of selected Quilter and third-party products which they offer their clients. Quilter Private Client Advisers is our rapidly growing high net worth advice business. It is wholly owned with all advisers employed by Quilter. It is closely aligned with Quilter Cheviot, specialising in providing financial advice to affluent clients across the UK.

Quilter CheviotQuilter Cheviot is a leading private client wealth manager providing discretionary and advisory wealth management services to private investors and corporate pension funds, trusts and charities.

Quilter InvestorsQuilter Investors is a leading provider of multi-asset investment solutions, offering a broad range of solutions for its customers’ accumulation and decumulation needs.

Wealth Platforms

Our Wealth Platforms segment comprises:

Quilter Wealth SolutionsQuilter Wealth Solutions is the UK’s second largest adviser-focused investment platform provider. The platform is available to both Quilter Financial Planning and third party advisers.

Quilter InternationalQuilter International is a leading investment platform provider of cross-border investment solutions aimed at affluent and high net worth UK residents seeking investment solutions outside of the UK, as well as expatriates and international investors in selected offshore markets.

Quilter Life AssuranceQuilter Life Assurance is the book of legacy UK life insurance, and which includes the institutional life business, that is closed to new business and expected to run-off over the next one to two years. The retail book is also in steady run-off, expected to decline at around 15% per annum.

Introduction | Our business – continued

1 Additional employee data is provided in the Annual Report and Accounts.

2 Senior management defined as Executive Committee and their direct reports, excluding administrative staff.

Following the Listing of Quilter plc, all businesses within the Group will be subject to rebranding to align with the Quilter name.For the purposes of the Responsible Business Report, all businesses have been referenced by their new name – please see the Glossary for further details.

8Quilter Responsible Business Report 2018Our Shared Prosperity Plan

Our Shared Prosperity Plan

Our Shared Prosperity Plan is how we will grow our business responsibly, aiming to create long-term value for all our stakeholders, including customers, colleagues, communities and shareholders. That doesn’t just mean growing economic wealth; it means enabling people to thrive and achieve their own life goals. This is shared prosperity.

Peter Maclean-Arnold Research & Insight facilitating a focus group with Quilter colleagues

Overview


External influences

Our shared values

Our Strategic Business priorities

Our Shared Prosperity Plan focuses on three long-term goals

Our purpose is to help create prosperity for the generations of today and tomorrow

We are PioneeringLeading change and driving growth from the front, positively challenging industry convention to create new and rewarding opportunities for our customers and ourselves.

Demographics: Growing and ageing population resulting in increasing social care costs and pressure on savings.

Financial vulnerability: Lack of financial understanding and shift of responsibility to the individual resulting in significant long-term savings gap.

Political and economic uncertainty: UK and international political instability affecting investment market returns and business performance.

Sustainable development: Climate change, resource scarcity and transition to a low-carbon economy influencing public policy and markets.

Delivering on customer outcomes: Ensure we deliver good customer outcomes, strong investment returns and quality customer service.

Advice and Wealth Management growth: Grow our advice business by adding financial advisers and investment managers, supporting them to improve their individual productivity. We will also complete the build out of our Quilter Investors team.

Wealth Platforms growth:Deliver our UK Platform Transformation Programme which will bring benefits including greater capability and functionality.

Optimisation: We will grow our business by enhancing our scale and efficiency whilst reducing unnecessary cost and complexity.

We are DependableUsing our expertise, care and judgement to guide us and our customers through complex and challenging times, determined to take people to a better place in their financial future.

We are Stronger togetherUsing our diversity and our relationships – learning from each other – to create one business with better opportunities for our people and better outcomes for our customers.

Goal 1: Enhance financial capability

We’re helping people develop the skills, knowledge and confidence to engage

fully in their financial lives, to be financially secure and pursue their

financial goals.

Goal 3: Promote responsible investment

Investing responsibly, creating an inclusive culture and reducing our

environmental intensity as a business and investor.

Goal 2: Enable secure futuresWe’re supporting people to have a more secure future by empowering customers to be more engaged in

their financial future and by creating opportunities to access and thrive

in work.

9Our Shared Prosperity Plan | Overview

10Quilter Responsible Business Report 2018Our Shared Prosperity Plan | Our commitments

To help us work towards our shared prosperity goals we’ve made nine long-term commitments which will guide our responsible business agenda until 2025.

Our commitments

Goal 1: Enhance financial capability

Goal 2: Enable secure futures


Commitments

• Promote financial wellbeing for all our colleagues

• Improve access to financial guidance and advice for customers and consumers more widely

• Empower young people to manage their money well for life

Commitments

• Create an inclusive culture at work that embraces diversity

• Embed responsible investment principles across our business

• Reduce the environmental intensity of our activities

Commitments

• Enable all colleagues to thrive in work and fulfil their potential

• Empower customers to be more engaged in their financial future

• Help people in the community overcome barriers to prosperity

11Quilter Responsible Business Report 2018Our Shared Prosperity Plan | Alignment with UN Sustainable Development Goals

Alignment with UN Sustainable Development Goals

The Sustainable Development Goals (SDGs) form the core of the United Nation’s 2030 Agenda for Sustainable Development.

There are 17 goals which all UN Member States adopted in 2015. They set out an urgent call for action by all countries seeking to end poverty, improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve the natural environment.

We support the UN Sustainable Development Goals and in creating our Shared Prosperity Plan we aligned with seven of the SDGs which we believe we are most able to contribute towards.

Goal 1: Enhance financialcapability



4

17

3

8

17

Quality educationPartnerships for the goals

Gender equalityAffordable and clean energyClimate actionPartnerships for the goals

Good health and wellbeingDecent work and economic growthPartnerships for the goals

5

7

13

17

Goal 1: Enhance financial capability | Overview 12Quilter Responsible Business Report 2018

Goal 1: Enhance financialcapability

Our goal is to enhance financial capability.

We’re helping people develop the skills, knowledge and confidence to engage fully in their financial lives, to be financially secure and pursue their financial goals.

We believe there is scope to enhance financial capability in the home, at school and in the workplace.

Pupils enjoying MyBnk workshop Isle of Man

Only 1/3 of parents talk to their children about money1.

46% of all UK adults report low knowledge about financial matters2.

61% of adults never received financial education at school; of those, 71% wish they had received it3.


Commitment: Promote financial wellbeing for all our colleagues

Money worries are the greatest contributor to overall stress for people in the UK. Anxiety about finances affects mental, physical and social wellbeing, which negatively impacts one’s personal life, as well as attendance and performance at work. That’s why we believe it is our duty to support our people to develop the skills, knowledge and confidence to manage their personal finances effectively. This is designed to help colleagues feel more financially secure and improve overall wellbeing, which in turn will support business growth and performance over the long-term.

In 2019 we’re launching our new financial wellbeing programme for all colleagues. This will comprise elements of education, information, guidance and support and has been co-developed with employees. The aim is to introduce new ways for colleagues to plan, budget and save and we look forward to reporting more fully on this next year.

Our commitments

• Promote financial wellbeing for all our colleagues

• Improve access to financial guidance and advice for customers and consumers more widely

• Empower young people to manage their money well for life

Source:1 Money Advice Service2 Financial Lives Survey, FCA, 20173 YouGov survey of 2,076 adults commissioned

by Quilter in 2018

Enhance financialcapability

Goal 14

17Quality educationPartnerships for the goals

Alignment with UN Sustainable Development Goals:

Goal 1: Enhance financial capability | Our commitments

14Quilter Responsible Business Report 2018Goal 1: Enhance financial capability | Our commitments – continued

Commitment: Improve access to financial guidance and advice for customers and consumers more widely

Today’s pension regime places responsibility on individuals to ensure they’re financially prepared for retirement, so access to good financial guidance and advice is critical. Yet there are only around 23,000 qualified financial advisers in the UK.

To bridge the financial advice gap in the UK we launched the Quilter Financial Adviser School in 2017 which, on a not-for-profit basis helps students achieve the qualifications, skills and professionalism required to have a successful career as a financial adviser.

Students on the programme come from all walks of life and include people embarking on a second career, as well as younger people just starting out. Typically, when new students join the programme they are placed in financial advice firms so they can combine their part-time studies with earning and gaining hands-on experience.

Commitment: Empower young people to manage their money well for life

Our money habits begin to form around the age of seven. That’s why we believe one of the best ways to build a more financially capable society is to empower young people to develop the vital skills, habits and knowledge to manage money effectively throughout their life. We passionately believe that effective financial education can do just that, helping young people take control of their future.

Through The Quilter Foundation, we are proud to fund the award winning charity, MyBnk, to deliver innovative, high energy and high impact financial education workshops in our communities. MyBnk’s expert trainers bring money to life for young people aged 7–25, covering topics such as saving, budgeting, debt prioritisation, digital finance skills and more.

1,000+By 2025, Quilter’s Financial adviser School aims to have trained over 1,000 new financial planners.

Creating the next generation of advisers

“The Financial Adviser School has been the ideal training ground for the early stages of my career in financial services. The school has provided me with support for my exams, training as well as the opportunity to shadow a qualified adviser through Quilter. As a result I’m delighted to have achieved my DipFA Level 4 qualification, which is the industry benchmark financial adviser qualification, and I’m looking ahead to Chartership.”

68%of 7–11 year olds wished to delay gratification for a greater reward after a financial education intervention1.

Source:1 MyBnk, Substance, Ipsos Mori. 2017/18

Gabriela Strug, Financial Planner BSc. DipFA CeMap

Learn more at quilterfaschool.co.uk

http://www.quilterfaschool.co.uk

15Quilter Responsible Business Report 2018Goal 1: Enhance financial capability | Our commitments – continued

Looking forward – To achieve our goal of enhancing financial capability, our priorities in 2019 are:

• Launch our financial wellbeing programme for all colleagues

• Continue to grow and diversify the financial advice market through the Quilter Financial Adviser School

• Extend our financial education programme for 11 years+ to London, whilst maintaining current provision across all age groups in Southampton and the Isle of Man

7yrsis the age when our financial habits are typically formed1.

Industry collaboration – KickStart Money

Financial education for 7–11 year olds KickStart Money is a groundbreaking industry initiative that Quilter helped to establish and continues to co-chair. It brings over 20 leading investment and savings firms together to co-fund a financial education programme targeted at primary school children aged 7 to 11. Launched in 2017, KickStart Money’s mission is to take financial education to over 18,000 primary school aged children by 2021, whilst backing calls for financial education to be included on the National Primary Curriculum. KickStart’s delivery partner is MyBnk, and their expert trainers, along with volunteers, visit primary schools across the country to deliver assemblies and classroom based activities. There’s also a fun take home pack which families can use together to carry on learning good money habits at home.

Building a financially capable generation

Financial education for 11 years and up We work with MyBnk directly to create financial education hubs around our large offices in Southampton and the Isle of Man; focusing on young people aged 11 to 25. MyBnk trainers and Quilter volunteers visit schools and community groups to deliver programmes to help equip young people with vital money skills and confidence that will help them manage their money effectively as they take on more responsibility as young adults.

In 2018, our funding enabled MyBnk to deliver 622 hours of financial education, empowering 6,529 young people to take control of their financial future. Since our partnership began in 2016, MyBnk have reached 13,383 people in our communities with over 1,200 hours of financial education.

Source:1 MAS – Adult money habits are set

by the age of seven years old, 2013

UK Chancellor, Phillip Hammond, visits KickStart Money lesson at Lyne and Longcross School, Surrey

Learn more at kickstartmoney.co.uk Learn more at mybnk.org

Secondary school pupils on the Isle of Man taking part in our financial education workshops, delivered by MyBnk

http://kickstartmoney.co.uk

http://mybnk.org

Tolani Owodunni Internal Communications Tom Snelgar Adviser Relations 16Quilter Responsible Business Report 2018Goal 2: Enable secure futures | Overview


Our goal is to enable secure futures.

We’re supporting people to have a more secure future by empowering customers to be more engaged in their financial future and by creating opportunities to access and thrive in work.

We believe financial security is incredibly important for people’s peace of mind and overall wellbeing, yet millions aren’t as prepared as they could be to meet their long-term financial needs.


50% of all UK consumers could be vulnerable according to the FCA1.

Only 28% of people at retirement have any form of plan for funding long-term care3.

58% of the adult population don’t think they have sufficient understanding of pensions to save for their retirement2.

Source:1 Financial Lives Survey, FCA, 20172 The Wealth and Assets Survey 2017, Office of National Statistics3 Financial capability Strategy, Key statistics

Commitment: Enable all colleagues to thrive in work and fulfil their potential

Our ability to attract, develop and retain the best talent is critical to our business. We strive for an engaged colleague community and collegiate culture.

Cathy Turner is the designated Non-executive Director with responsibility for ensuring the Board understands the views of colleagues so that their interests can be taken into account. At least annually, Cathy will meet with Quilter’s employee forums, which are designed to be a consultative body to represent colleagues.

In addition we regularly engage with our colleagues through our culture survey to identify where we’re doing well and where there’s scope to improve. In 2018 we achieved a 71% response rate and our engagement score was 7.7 out of 10 compared to 7.6 out of 10 in 2017.

Our commitments

• Enable all colleagues to thrive in work and fulfil their potential

• Empower customers to be more engaged in their financial future

• Help people in the community overcome barriers to prosperity

Enable secure futures

Goal 23

8

17

Good health and wellbeingDecent work and economic growthPartnerships for the goals


Goal 2: Enable secure futures | Our commitments

18Quilter Responsible Business Report 2018Goal 2: Enable secure futures | Our commitments – continued

Commitment: Empower customers to be more engaged in their financial future

Financial security is incredibly important for our peace of mind and wellbeing. Yet millions are not as prepared as they could be to meet their long-term financial needs. By ensuring that our products and services continue to meet customers’ changing needs, whilst making it easier for people to engage with their financial lives and make more informed choices, we can enable our customers to enjoy life and build a more secure future. This also means acting with appropriate levels of care for our most vulnerable customers, adapting our products and services to suit their individual needs. We have implemented specialist customer polices, training for staff and flexible ways of engaging with us to ensure our vulnerable customers receive the specialist support they need to make more informed choices about their financial future.

Helping colleagues thrive

Supporting and enhancing our wellbeing is important for us as individuals, and for our business. This includes our physical, social, financial, emotional and mental wellbeing.

In 2018 we launched the Thrive wellbeing initiative which provides colleagues with tools, information and services to enhance their health and wellbeing.

Thrive is supported by over 120 colleague ambassadors, who champion all things wellbeing in their business area and local offices. In July 2018, we also signed the Time to Change Pledge to demonstrate our commitment to changing attitudes and behaviours, whilst removing stigma associated with mental health in the workplace.

72%of the general population said their mental health problems had made their financial situation worse1.

1 https://www.moneyandmentalhealth.org/money-and-mental-health-facts

Finding new ways to serve vulnerable customers

Mr Jatt, a non-advised customer, wrote to us asking to withdraw all the money he held with us at the time. He explained that he was hard of hearing, so couldn’t talk to us on the phone, and that his wife, Mrs Jatt, was seriously ill. Our processes and colleague training ensured Mr and Mrs Jatt were quickly identified as vulnerable, and their case was referred to Quilter’s Customer Experience team.

It was clear that Mr and Mrs Jatt needed face-to-face advice, and thanks to our full service wealth management model, a pro bono home visit from a financial adviser, Gabriella, was swiftly arranged to support them.

From the home visit, Mr and Mrs Jatt were advised, and understood that the request to withdraw all their cash would have been detrimental. Instead, Mr and Mrs Jatt took the advice to switch their money to a more appropriate product for their circumstances and goals.

Mr Jatt contacted us to say:

“I am very, very satisfied and happy with your adviser Gabriela. She had answers to our every query. She is simply the best.”

Odette Williams and Carl Coetzee, Thrive ambassadors at Quilter Head Office, London

www.moneyandmentalhealth.org/money-and-mental-health-facts

www.moneyandmentalhealth.org/money-and-mental-health-facts

19Quilter Responsible Business Report 2018Goal 2: Enable secure futures | Our commitments – continued

Commitment: Help people in the community overcome barriers to prosperity

Every day, people face challenges that can act as barriers to prosperity. We have a role to play to help people and communities overcome those barriers.

We also understand that people’s life-chances are often shaped at an early age and linked to socio-economic background. That’s why we set up our own charity, The Quilter Foundation, to help young people in our communities to fulfill their potential, thrive and prosper, no matter what kind of start they had in life. The Foundation provides funding and skills to charitable organisations that improve outcomes for young people across education, employment and health and wellbeing.

Dementia is another area we have focused on. As well as ensuring colleagues are equipped to support customers with the condition, we have also provided funding to The Brain Charity to help deliver local services for people living with dementia.

Looking forward – To achieve our goal of enabling secure futures, our priorities in 2019 are:

• Our Thrive programme will continue to build a culture that promotes and champions all aspects of wellbeing, including good mental health, as core drivers of employee engagement, business performance and good customer outcomes.

• Explore ways in which we can increase customer engagement with their financial lives, particularly for those who are most vulnerable.

• Through The Quilter Foundation, we will continue to help young people overcome barriers to prosperity – including the Young Carers Campaign and the development of a new programme focused on employment skills and opportunities.

The Quilter Foundation

The Quilter Foundation is Quilter’s charity. Launched in 2018, it provides funding and skills to charitable organisations empowering young people to overcome barriers to prosperity.

Turn to page 25 to find out more.

Kevin MeliaMarketing

Tim Li Quilter InvestorsGoal 3: Promote responsible investment | Overview Quilter Responsible Business Report 2018 20

We believe the investment industry can play a key role in tackling some of the most challenging social and environmental issues of our time.


Our goal is to promote responsible investment

Investing responsibly, creating an inclusive culture and reducing our environmental intensity as business and investor.


Climate change is likely to affect financial stability through physical, liability and transition risks2.

Inclusion and diversity The investment industry lags other sectors on diversity and has one of the largest gender pay gaps3.

7 of the top 10global risks in terms of likelihood and impact are environmental or social1.

Source:1 Global Risks Survey, World Economic Forum 20192 Breaking the tragedy of the horizon – climate change

and financial stability – speech by Mark Carney, Governor Bank of England, 2015

3 ONS Annual Survey of Hours and Earnings (ASHE)

Commitment: Create an inclusive culture at work that embraces diversity

We believe that the savings and investment industry will be stronger and deliver greater benefits if it nurtures a more inclusive and diverse culture. Diversity improves an organisation’s knowledge base and its decision making by embracing different perspectives, and attracts more of the best talent to the industry. It’s good for business, our people, customers and society.

We’re committed to creating a more inclusive culture and ensuring that everyone at Quilter has the opportunity to fulfil their full potential regardless of their background or characteristics.

We recognise we’re not alone in this challenge, which is why we’re working collaboratively through the Diversity Project to address systemic barriers to greater inclusion within the investment industry.

Our commitments

• Create an inclusive culture at work that embraces diversity

• Embed responsible investment principles across our business

• Reduce the environmental intensity of our activities

Promote responsible investment

Goal 3Gender equalityAffordable and clean energyClimate actionPartnerships for the goals

5

7

13

17


Goal 3: Promote responsible investment | Our commitments

Proportion of men and women by pay quartile

The bars below show the proportion of men and women in each pay quartile from the first (highest pay) to the fourth (lowest pay).

22Quilter Responsible Business Report 2018Goal 3: Promote responsible investment | Our commitments – continued

Gender Pay Gap

The Gender Pay Gap Reporting regulations came into force on 6 April 2017, requiring firms with 250 or more employees to disclose publicly their gender pay gap annually.

Our Gender Pay Gap data shows the difference between the average hourly pay of male and female colleagues. Quilter’s figures reflect the smaller proportion of women than men in senior and revenue generating roles. However, we have seen the gap reduce since 2017 and we anticipate, that over the long-term, this will continue to be the case as we seek to create more gender balance within our senior management team.

Supporting progression of women into senior roles

One of the ways we are addressing our Gender Pay Gap is by supporting the progression of women into senior roles. To reinforce our commitment to gender balance, we have signed the HM Treasury Women in Finance Charter and have set a target to reach 35–40% women in senior management by the end of 2020. As signatories of the charter, we are required to report our progress against this target. As at 31 December 2018 the female composition of our senior management community (ExCo and their direct reports) was 34%, compared to 32% in the prior year.

First quartile%

72 28

2017: 75 | 25

Second quartile%

52 48

2017: 48 | 52

Third quartile%

42 58

2017: 43 | 57

Fourth quartile%

41 59

2017: 41 | 59

Male Female

Gender Pay GapAs at 05 April 2018/2017

Mean Median

2018 2017 2018 2017

Hourly pay gap 35% 39% 29% 29%

Bonus gap 70% 70% 39% 41%

Women receiving bonuses 85% 85% 86% 85%

Men receiving bonuses 85% 83% 85% 83%

Georgia Sherman, Quilter Wealth Solutions“Quilter offers fantastic opportunities to develop your skills

and experiences. This has not only challenged me and allowed me to expand my network, but I’ve also been able to use this broader experience and insight when working on key projects. This in turn has really helped me to progress my career in the right direction for me.”

23Quilter Responsible Business Report 2018Goal 3: Promote responsible investment | Our commitments – continued

Commitment: Embed responsible investment principles across the business

Quilter is a signatory to the Principles for Responsible Investment (PRI) which is an investor initiative supported by the UN and the world’s leading proponent of responsible investment. The PRI supports signatories to understand the investment implications of environmental, social and governance (ESG) factors and incorporate these into investment and ownership activity. Launched in 2006, the PRI now has over 1,800 signatories representing around US$70 trillion under management.

We also recognise the UK Stewardship Code as best practice and adhere to its seven principles with respect to voting, engagement and disclosure.

Voting and engagement

We are committed to being a responsible steward of our clients’ assets in order to protect and enhance long-term returns.

EngagementQuilter Cheviot engages with companies on a number of issues, particularly those relating to remuneration and board compensation. The aim being to encourage good governance practices by the companies we invest in.

VotingQuilter Cheviot exercises its voting rights on an active basis. Core UK equity and investment trust holdings are the main focus as this represents a significant proportion of assets under management. Voting principles take into account best practice codes and guidelines, including the UK Corporate Governance Code, and cover topics such as board independence and effectiveness, remuneration, audit, and capital structure.

In 2018, Quilter Cheviot voted at 174 company meetings with the support of the proxy voting provider, ISS. This included seven company meetings where votes were lodged against a resolution, and two meetings where two different resolutions were voted against.

Learn more quiltercheviot.com

Climate Assets Fund

Investors are increasingly realising the importance of financing companies that provide the products, services and technologies to deliver a cleaner and more efficient economy.

Our Climate Assets Fund, managed by Quilter Cheviot, is an award-winning, multi-asset fund that invests in opportunities arising from reducing carbon emissions, improving the food supply-and-demand imbalance, reducing water shortages, and providing reliable power generation. To be considered for inclusion in the Fund, companies must offer solutions to the global and emerging challenges of delivering more with less for a rapidly-growing population with a low carbon footprint.

Claudia Quiroz, Portfolio Manager, Climate Assets Fund, Quilter Cheviot

http://www.quiltercheviot.com


Commitment: Reduce the environmental intensity of our activities

We have been formalising our environmental management activities and in particular to reduce energy consumption through planned refurbishment activity and we are also switching to renewable energy where possible. Over 10 of our buildings are now on renewable energy tariffs which account for 57% of our total workforce.

We have an environmental management system in operation at our largest site (by headcount), and aim to roll this out to other buildings in future. With regard to greenhouse gas emissions (GHGs), we support the Carbon Disclosure Project and aim to publish our science based reduction targets for GHG emissions in 2019.

Looking forward – To achieve our goal of promoting responsible investment, our priorities in 2019 are:

• Build on our work to create a more inclusive and diverse culture at Quilter and in the industry more widely

• Support collaborative efforts to establish industry standard for measuring the environmental impact of our investment portfolios

• Build on work to reduce greenhouse emissions through our business operations, and extend our Environmental Management System

We also recognise that our investment portfolios have indirect impacts on the environment and this is an area we will assess and measure more fully in future, through our commitment to embed responsible investment principles across our business.

Greater transparency and disclosure of climate-related risks by companies is critical for investors as we transition to a lower carbon economy. As such we welcome the work of the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosure (TCFD). In 2017 the TCFD launched its voluntary framework on for disclosure of climate-related information around four main themes: governance, strategy, risk management, and metrics and targets. As we formalise our approach to managing climate-related risk we aim to work towards full compliance with the TCFD disclosures.

Goal 3: Promote responsible investment | Our commitments – continued

Martin Creagh Quilter Investors

Greenhouse gas emissions 20181 TCO2e

2018TCO2e

2017

Scope 1 636 556

Scope 2 3,037 3,289

Scope 2 – market based 1,976 3,079

Total – Scopes 1 and 2 3,672 3,845

Tonnes of CO2e/average number of colleagues 0.83 0.91

1 Our emissions are calculated and reported in accordance with the GHG Protocol Corporate Standard. Please refer to the Glossary for definitions of the GHG emissions categories shown in the above table.

DISCLOSURE INSIGHT ACTION

The Quilter Foundation | Overview

The Quilter Foundation is our registered charity launched in 2018 alongside our listing on the London stock exchange.


25Quilter Responsible Business Report 2018Young Adult Carer Carers Trust/Camden Carers Service

The Quilter Foundation – continued

As Quilter’s charity, The Quilter Foundation supports the delivery of our Shared Prosperity Plan Goals, specifically our commitments to communities and wider society.

The Foundation provides funding and skills to charitable organisations empowering young people to fulfil their potential, thrive and prosper.

Community Partners


Skills£

£

Skills

£

Skills

£

Skills

Education

Community investment themes

Employment Health & wellbeing

Quilter plc Company donations, fundraising and skill sharing

through volunteering


Carers TrustWorks to improve support services and recognition for anyone caring, unpaid, for a family member or friend who is ill, frail, disabled or has mental health or addiction problems.

Disasters EmergencyCommittee (DEC)Brings together 14 leading UK aid charities in times of crisis, saving millions of lives and rebuilding communities devastated by disasters.

KickStart MoneyAn investment industry collaboration delivering financial education to over 18,000 primary school children. Delivered by MyBnk.

Essential support for under 25s

MyBnkEmpower young people to take charge of their future by bringing money to life, delivering financial education and enterprise to 7–25 year olds.

The MixA free, confidential digital support service for under 25s. Whatever the issue, The Mix is there – online, over the phone or via social media.

27Quilter Responsible Business Report 2018The Quilter Foundation – continued

Empowering young people to manage money well for life

Through The Quilter Foundation, we are proud to fund the award winning charity, MyBnk, to deliver innovative, high energy and high impact financial education workshops in our communities. MyBnk’s expert trainers bring money to life for young people aged 7–25, covering topics such as saving, budgeting, debt prioritisation, digital finance skills and more.

Giving young carers a chance

In 2018, The Quilter Foundation launched a campaign to support thousands of young carers in the UK and Isle of Man. The aim is to invest £1.5 million over the course of three years, including core grant funding, as well as fundraising from Quilter employees.

Working with three leading charities, the campaign will:

1. provide immediate respite for young carers;

2. inspire long-term change in support services; and

3. change perceptions and customers will also be directed to this campaign until 2021.

Over £2mCommitted to community partners over the next three years

SixNumber of partners in our community investment portfolio

£22,834 Funds raised by Quilter colleagues in the first 12 weeks of our Young Carers Campaign

DEC’s Indonesia Tsunami Appeal

The Quilter Foundation made a donation of £10,000 to the Disasters Emergency Committee appeal, helping to provide urgent humanitarian assistance to those survivors in desperate need of support following the Tsunami in September 2018. Shani Brathwaite, Young carer support worker

Our Community Investment Partners

Crossroads CareAre the leading provider of practical and emotional support for carers on the Isle of Man. Crossroads is a partner in our Young Carers Campaign.

MyBnk Trainers: Louise McNestrie, Andy Small and Rebekah Kelly

Responsible business management

An overview of the governance, structures and processes that ensure Quilter operates responsibly.

28Quilter Responsible Business Report 2018Stewart Perry and Jane Goodland QuilterResponsible business management


Operating responsibly

We are committed to maintaining the highest standards of integrity and complying with all relevant laws. Our Code of Conduct sets out the duties and expectations of all colleagues covering the prevention of financial crime, treating customers fairly, conflicts of interest, use of company assets, market conduct, working with regulators and Governments, and information, data and communications. We also have policies explicitly focused on anti-money laundering, anti-bribery and corruption, fraud prevention and market abuse.

We have zero tolerance of any form of harassment, abuse, discrimination or bullying of colleagues, contractors, suppliers or anyone we deal with. All colleagues are required to behave in a way that supports an inclusive culture, embracing all forms of diversity. We respect human rights and reject any form of modern slavery and in accordance with the UK Modern Slavery Act, we publish our Modern Slavery Statement on our website. We are also an accredited national living wage employer, ensuring all employees are paid accordingly and we require our suppliers who provide on-site services to do the same.

We want a culture where people can speak up and share their concerns. Colleagues are made aware of our whistleblowing policy and ethics hotline and we have appointed the Chair of the Board Audit Committee, George Reid, as Quilter’s whistleblowing champion. All such reports and disclosures are fully investigated by management whilst protecting the confidentiality of those who make reports.

To help maintain a responsible business culture, we have a governance framework comprising policies, codes and standards.

Responsible business governanceOur responsible business approach contributes to the management of our strategic and business risks, particularly brand and reputation, people and culture, and conduct risk. For more information about our principal risks and uncertainties, see pages 32-37 of our Annual Report.

To ensure we have appropriate oversight and control of our responsible business activity we have introduced a governance framework involving the Board and executive management. Quilter CEO, Paul Feeney, has overall accountability for ensuring we do business in the right way. The Board receives regular updates on responsible business matters and formal oversight of responsible business and wider stakeholder interests is formally the remit of the Board’s Corporate Governance and Nominations Committee, chaired by the Group Chairman.

At an executive management level the Responsible Business Forum provides oversight, direction and challenge with respect to Quilter’s approach to responsible business. The Forum meets quarterly and comprises members from across the business and is chaired by the Corporate Affairs Director.

In addition to these oversight and management groups, our responsible business governance framework comprises policies, codes and standards. For example, these include the Quilter Code of Conduct, the supplier Code of Conduct, and policies on the environment, human rights, community investment, and responsible investment and stewardship.

Colleagues are required to undertake annual mandatory training to ensure they fully understand what is required of them. This includes training on the Code of Conduct, whistleblowing, human rights, and financial crime (which includes anti-corruption and anti-bribery). During 2018 over 4,000 of our people completed this training.

Tax strategyAs a responsible business, we are committed to full compliance with our tax obligations, paying the right amount of tax at the right time. We have zero tolerance for tax evasion and we do not promote tax avoidance or aggressive tax planning arrangements to our customers or to other parties.

More information about our tax strategy can be found on our website.

Quilter plc Executive Committee

Responsible Business Forum

Board Corporate Governance & Nominations Committee

Responsible business management | Operating responsibly

30Quilter Responsible Business Report 2018Responsible business management | Stakeholder engagement 30Quilter Responsible Business Report 2018

Stakeholder engagement

We recognise the importance of engaging with a range of stakeholders to ensure we understand their expectations and views of us and share information about our approach and performance.

Our stakeholders are wide ranging and include colleagues, customers, financial advisers, investors, suppliers, regulators, media, NGOs and other special interest groups.

We use a range of methods to engage with our stakeholders, examples of which are shown in the table.

Alec Pavitt Brandholding planning session with Quilter colleagues

Colleagues Our culture survey provides a regular mechanism for colleague engagement

Our employee forum is a consultative group empowered to represent colleagues

Customers & Financial advisers

Customer and adviser feedback Customer Panel Interviews conducted by an independent third party

Shareholders Our investor relations team and members of our executive management maintain regular contact with our shareholders both in the UK and South Africa

Suppliers Our third party risk management team maintain relationships with our suppliers on a risk based approach – focusing on those which are most material to our business.

Regulators Our risk team and members of our executive management maintain regular contact with our regulators both in the UK and overseas.

Wider stakeholders Our stakeholder engagement approach includes interviews conducted on our behalf by an independent third party research agency. This includes suppliers, media, NGOs, community partners and industry groups.

31Quilter Responsible Business Report 2018Looking forward

Looking forward

We are at an early stage of our Shared Prosperity Plan and recognise there is always scope to do more.

As our inaugural Responsible Business Report shows we have achieved a lot in a short space of time. This is evidence of our ambition to have a positive impact wherever possible. We are at an early stage of our Shared Prosperity Plan and recognise there is always scope to do more. Over 2019 we will focus on the commitments we have set ourselves and develop our approach to measuring our progress against these. In future responsible business reports we aim to report progress against key performance indicators relevant to our commitments, with 2018 as a baseline year.

2018 was a landmark year for our business. We were delighted to launch our responsible business strategy – The Shared Prosperity Plan – at the same time as we became a publicly listed business.

Lennon Gumbe Client Services

32Quilter Responsible Business Report 2018Responsible business management | Glossary

GlossaryTerm DefinitionCDP Carbon Disclosure ProjectCompany Quilter plc GHG Greenhouse GasGroup Quilter plc PCA Private Client Advisers – refers to Quilter Private Client AdvisersQuilter Quilter plcQuilter Group The group of companies that are ultimately owned by Quilter plc PRI United Nations Principles for Responsible InvestmentScope 1 & 2 GHG emissions Greenhouse gas emissions are categorised into three groups or ‘scopes’ by the most widely-used international accounting

tool, the Greenhouse Gas (GHG) Protocol. Scope 1 and 2 cover direct emissions sources (e.g., fuel used in company vehicles and purchased electricity), scope 3 emissions cover all indirect emissions due to the activities of an organisation.

Scope 2 – market based GHG emissions

‘Market-based’ reflects emissions from the electricity that a company is purchasing, not what is generated locally, and therefore takes into account Quilter’s renewable tariffs. Hence, within Quilter’s GHG disclosure shown on page 14, ‘Scope 2 market-based’ emissions show a lower figure than ‘Scope 2’.

The Board Quilter plc Board of DirectorsThe Foundation The Quilter Foundation – Quilter’s charity

Previous Business Unit name New Business Unit name Date of changeAdvice & Wealth ManagementMulti-Asset Quilter Investors 29 Jun 2018Quilter Cheviot No change n/aIntrinsic Quilter Financial Planning Within 24 months of ListingOld Mutual Wealth Private Client Advisers Quilter Private Client Advisers 3 Sep 2018Wealth PlatformsUK Platform Quilter Wealth Solutions Within 24 months of ListingInternational Quilter International Within 24 months of ListingHeritage Quilter Life Assurance Within 24 months of Listing

Quilter Business Unit namesQuilter is the new name for Old Mutual Wealth Management Limited. Within 24 months of the date of Listing all businesses within the Group will be subject to rebranding to align with the Quilter name. For the purposes of this report, all businesses have been referenced by their new name. The following table details the previous and new business names and the date of change where this has already taken place.

We believe a company’s value goes beyond making profit.

Quilter plcMillennium Bridge House 2 Lambeth Hill London EC4V 4AJ United Kingdomquilter.com/responsible-business [email protected]

http://www.quilter.com/responsible-business

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