Suppliers

Supporting the sustainability of our suppliers

We have a network of over 3,000 suppliers in Australia alone, so it is incumbent on us to extend our influence and help these important partners operate sustainably.

Our supplier selection guidelines were developed and implemented to ensure our major suppliers share our commitment to sustainability. The guidelines set out the minimum sustainability-related standards to which we expect our suppliers to comply with as a condition of doing business with us.

They outline that all suppliers must comply with applicable laws and regulations; recommend goods and services that offer a higher level of environmental performance; and ensure a safe, discrimination-free workplace that also recognises employees’ family responsibilities and provides appropriate leave to satisfy those responsibilities. We are working to extend these guidelines to all areas in which we operate.

In New Zealand our supplier tendering process includes sustainability supplier selection guidelines, which detail IAG’s expectations of suppliers in areas such as environmental performance, human rights and social responsibility.

In addition, we have worked with the smash repair industry in Australia and New Zealand to develop the Risk Radar . The Risk Radar is an online learning tool available to all smash repairers and helps them improve their environmental management and safety performance.

Some of our major suppliers operate in industries that are experiencing skills shortages, particularly in attracting young, talented people into the industry. This affects the smash repair and construction industries in particular. We recognise we have a role to play in ensuring the sustainability of these industries. By ensuring these key partners are around in the future, we ensure we will be able to deliver on our promise to our customers in the future.

Through our retail brands NRMA Insurance, SGIO and SGIC and our joint venture with Royal Automobile Club of Victoria (RACV), we contribute to an Australian program – Jumpstart Autobody Traineeships and Scholarships – that encourages high school students and young people to begin a career in the smash repair industry.

The program puts trainees into apprenticeships where they can benefit from a combination of on-the-job and TAFE training. We have committed $7.4 million nationally to the program. With these funds we hope to create about 400 smash repair traineeships over four years. We already have over 400 participants nationally in both our traineeship and scholarship programs, and this commitment is making a real impact on the sustainability of the smash repair industry, one of our largest supplier groups. For more information on this program please see the case study.

In addition, since 2003 IAG NZ has sponsored 20 young automotive apprentices each year through the Sponsored Apprenticeship Scheme.