ONE YEAR ON

We offer an extensive range of learning opportunities for our people, delivered through classroom, e-learning and on-the-job experiences.

In the 2005 financial year, 9,500 IAG employees participated in more than 105,000 learning sessions covering such areas as diversity and equal employment opportunities through to the General Insurance Code of Practice.

• IAG's Corporate Orientation (which includes training on IAG's purpose and values) was rewritten, it now includes a greater emphasis on what sustainability means to our business.
• Briefings on sustainability issues were provided through senior management training sessions, OH&S training (for all staff), and CEO Forums (held annually for 600 participants across the Group).
• The launch of IAG's 2004 Sustainability Report was accompanied by a comprehensive internal communication programme aimed at increasing employee understanding of sustainability.
• In May 2005, we held an IAG leadership forum, targeted at the Group's senior management. It focused on corporate strategy, sustainability, culture and our leaders' responsibility in driving the integration of each of these areas within their business. Similar content has been included in our divisional leadership conferences.
• A sustainability training pilot was held for employees in IAG's Culture & Reputation division.
• In the 2006 financial year, IAG will establish a formal Sustainability behavioural change project that will work to further educate and motivate employees to act in ways that are consistent with our goal to become a sustainable business.

The number of women at senior levels has remained relatively stable.

To continue to address this issue, we have recently established an IAG Women's Forum chaired by the CEO. Please refer to the 'Culture driving sustainability' section for more details

We have progressed from simply reporting on the number of women at senior levels to identifying the impact of occupational segregation. This is important because to advance, it is often necessary for women to have experience in managing a profit centre, yet a significant number of our employees are located in support functions.

Similarly, with age, we have moved beyond the age profile to an extensive age audit. We have identified opportunities for us to better reflect the profile of our customers and the community in our own workforce. Please refer to our Age management strategy case study in the 'Culture driving sustainability' section for more information

We are still working to collate ethnicity and age data. During the 2005 financial year, we experienced some difficulties in the collection and storage of this data. These issues have since been rectified and we plan to report on this information in the 2006 financial year.

The New South Wales-based pilot crime prevention partnerships involving local police, local councils and NRMA Insurance in Redfern, Shellharbour and Dubbo have produced largely positive trends in the first 12 months of operation, namely the 2005 financial year.

Statistically, 12 months is a short period and data samples are small; however, returns indicate that the partnerships have had an impact in assisting police and local communities to reduce residential burglaries.

For instance, in the Shellharbour region, four suburbs - Barrack Heights, Shellharbour, Blackbutt and Warrilla - were targeted. The result was a 40% reduction in claims for home thefts in these areas in contrast to a 7% reduction in comparable nearby suburbs. In Dubbo and Redfern local government areas, home claims fell by 32% and 6% respectively.

While police are still finalising local crime figures, the New South Wales Bureau of Crime Statistics and Research released a report in April 2005, confirming that the reported incidence of burglary for dwellings fell by 10.7% over 2003 and 2004.

Police and councils in Redfern, Shellharbour and Dubbo welcomed the decision by NRMA Insurance to extend the pilots for a further 12 months covering the 2006 financial year to see whether the positive trends are sustained.

In the 2005 financial year, 6.2% of IAG's total electricity use was Green Power, which is supplied from Energex as part of a Department of Energy, Utilities and Sustainability Green Power programme.

IAG first purchased Green Power in 2002 as part of a three-year contract. At the time, 11.5% of the electricity purchased for the major sites in New South Wales and Victoria was Green Power - this equated to 10% across all our New South Wales and Victorian operations.

Since then, our property portfolio has doubled in size. Acquisitions and in-sourcing of operations have led to an increase in properties and energy use. This means our initial Green Power purchase now represents 6.2% of IAG's total electricity use.

We recently signed a new three-year Green Power contract which equates to 10% of our assessement of the electricity use across our network of properties. We plan to review this figure should our property portfolio expand considerably over the next couple of years.

Initial work with the Hail Gun has led to the promise of future joint research with the roofing tile industry to promote tile designs and roofing membranes that are more resistant to hail damage. Work has also begun on a second-generation, more powerful machine.

In October 2004, findings from the Hail Gun tests were published on IAG websites.