Performance

The performance snapshot of this report details our progress in the economic, social and environmental dimensions of our business. As can be seen from these results, we have performed solidly across the economic and environmental domains. The continuing strong financial performance of the Group is testament to our successful strategy, and our improvement in the environmental domain is as the result of our employees’ diligence in this arena.

The social performance of the Group is not consistently positive and requires more work in 2006/07.

Employee turnover remains a challenge, and closer analysis of our employee survey demonstrates that there are a number of key areas in which we can improve. These include providing career development and opportunities for our people, improving our leadership capability as well as ensuring performance is managed consistently and in line with our values.

And we will continue to consult with our employees on the issues that matter most to them. While there has been an increase in employees’ satisfaction with their ability to influence what happens within their own team, there are pockets within the organisation who would like more input into and involvement in major change events in particular. This issue is being addressed directly in the relevant areas. We will endeavour to find new ways to involve employees and new avenues for providing input into how we build a better workplace.

We will also continue to work with our employees on improving the customer experience – after all, they hold the key to building good relationships with our customers and delivering on our promise. In addition, the Executive team has set collective goals to improve customer satisfaction and to help all our employees deliver exemplary service to our customers – both before and after a claim.

For example, in our new Business Partners division, workers’ compensation teams have undertaken extensive workshops with employers, injured workers and members of the medical profession. This experience helps them better understand the challenges that our customers and claimants face, and learn how to go above and beyond the claim to deliver empathic solutions. It may seem simple, but this is a new approach for an insurance company and we are already seeing the results.

Performance targets are set every year as part of our planning process. In 2005 it was determined that the target setting process for our environmental performance was not sufficiently robust, and that a one-size-fits-all approach wasn’t effective.

Given IAG comprises a series of very different operations with different growth imperatives, it was determined that divisional environmental targets were more appropriate. This is consistent with our approach to determining social and economic targets, which are also identified at a divisional level. This allows for divisional differences to be accommodated, and for areas of greatest impact and influence to be identified accordingly. For example, our Chief Financial Office division uses relatively little electricity; however, electricity usage remains as one of their targets as they control building management - a key influence for reducing electricity usage.

All divisional targets have been rolled up to an overall corporate target of CO₂ usage per full-time equivalent. This is considered the most accurate environmental indicator as it encompasses all our environmental impacts. It also reflects the importance we place on reducing the impact of climate change.

In 2006/07 we are aiming for a three percent reduction in CO₂ per full-time equivalent based on 2005/06 levels.