GLOBAL REPORTING INITIATIVE
The Global Reporting Initiative (GRI) provides a globally applicable framework in the form of guidelines that set out economic, social and environmental indicators for organisations to report against.
As with prior years, the GRI G3 Guidelines have been the basis for the preparation of our 2009 online reporting, together with the Business Sustainability content in IAG's 2009 Annual Review. It represents a balanced presentation of our organisation's economic, environmental and social performance and governance, and has been designed to provide our stakeholders with meaningful information about IAG.
We have also used the GRI Financial Services Sector Supplement: Social Performance and the GRI Financial Services Sector Supplement: Environmental Performance to develop the online reporting content. All G3 based reports must self declare the level to which they have applied the GRI reporting framework-their 'Application Level'.
Our reporting applies the GRI reporting framework to a B+ application level, which means that we have demonstrated robust sustainability reporting and well developed reporting systems based on the GRI G3. We have provided an explanation about any core indicators that we have not reported against. All GRI indicators are listed in the GRI index.
The data and information referred to in the GRI Index have been independently assured by Net Balance Management Group (NBMG) and the financial information has been independently audited by KPMG. Please refer to NBMG's assurance statement and to our 2009 Annual Report for the KPMG assurance statement.
Adherence to the GRI requirements are marked as a 'C' for Conformance;
'PC' for Partial Conformance; and a 'NR' for Not Reported.
'NA' is used when as issue is Not Applicable and 'GRI only' is used for indicators that are reported only in this index.
Performance indicators
Financial services sector supplement
Financial services sector supplement
| GRI indicator | Status | Comments | |
|---|---|---|---|
| Environmental performance supplement | |||
| F1 | Description of environmental policies applied to core business lines. | C | Our approach; understanding insurance. |
| F2 | Description of process(es) for assessing and screening environmental risks in core business lines. | C | Environmental risk assessment is a fundamental part of our decision making when accepting and pricing customers’ risk. See |
| F3 | State the threshold(s) at which environmental risk assessment procedures are applied to each core business line. | GRI only |
None. We do not have specific thresholds at which environmental risk assessment procedures are applied to non customer business transactions. |
| F4 | Description of processes for monitoring clients' implementation of and compliance with environmental aspects raised in risk assessment process(es). | NR | This indicator only applies to retail, commercial and corporate banking. |
| F5 | Description of process(es) for improving staff competency in addressing environmental risks and opportunities. | PC | Our approach; key risks and opportunities; Code of Ethics. |
| F6 | Number and frequency of audits that include the examination of environmental risk systems and procedures related to core business lines. | C | Our internal environmental management systems have been reviewed internally against ISO14001. Each year these systems are reviewed by a third party assurance provider using the AA1000 Standard. |
| F7 | Description of interactions with clients/investee companies/business partners regarding environmental risks and opportunities. | C | Stakeholder engagement; Our performance–environment; benchmarking; our approach–environmental. |
| F8 | Percentage and number of companies held in the institution's portfolio with which the reporting organisation has engaged on environmental issues. | PC | Code of Ethics; our approach–environmental. |
| F9 | Percentage of assets subjected to positive, negative and best in class environmental screening. | PC | Our performance. |
| F10 | Description of voting policy on environmental issues for shares over which the reporting organisation holds the right to vote shares or advise on voting. | GRI only | There are no assets under management where IAG holds the right to vote shares or advise on voting. We outsource this to the external equity managers who vote on our behalf. We receive a proxy voting report from the external managers either quarterly or annually. |
| F11 | Percentage of assets under management where the reporting organisation holds the right to vote shares or advise on voting. | GRI only |
There are no assets under management where IAG holds the right to vote shares or advise on voting. We outsource this to the external equity managers who vote on our behalf. We receive a proxy voting report from the external managers either quarterly or annually. |
| F12 | Total monetary value of specific environmental products and services broken down according to the core business lines. | NR | The value of specific environmental products is yet to be evaluated. |
| F13 | Value of portfolio for each core business line broken down by specific region and by sector. | C | See IAG’s annual report. |
| Social performance supplement | |||
Corporate social responsibility |
|||
| CSR1 | Social elements of CSR policy including corporate definition of CSR. | C | Our approach. |
| CSR2 | Structure and relevant CSR responsibilities, including explanation of the installed procedures . | PC | Corporate governance. |
| CSR3 | CSR audits and auditor hours. | GRI only |
In 2008/09 IAG’s Group Audit and Risk team undertook an audit of IAG’s sustainability performance indicators. This covered approximately 600 hours. |
| CSR4 | Procedures for handling issues sensitive to stakeholders and responsiveness. | PC | Codes and policies–continuous disclosure policy; security trading policy. |
| CSR5 | Number of non–compliance incidents with any law or regulatory code of conduct. | GRI only |
There were no known non compliance incidents with any law or regulatory code of conduct. |
| CSR6 | Stakeholder dialogue and involvement procedures. | C | Stakeholder engagement; |
Internal social performance |
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| INT1 | Social responsibility issues covered in organisation’s human resources policies. | C | Our approach; Code of Ethics. |
| INT2 | Staff turnover and job creation. | PC | Our performance–workforce; Glossary. |
| INT3 | Employee satisfaction. | C | Our performance–workforce. |
| INT4 | Senior management remuneration. | C | Annual report. |
| INT5 | Report on bonuses that are not oriented purely towards short term financial success, but which contain additional sustainability elements. | C | The IAG Board has established that executive Short Term Incentives (STI) are based 50% on financial performance and 50% on non financial measures. Annually a proportion of STI is paid as cash and a proportion is paid as deferred award rights (DARs). Long term incentives in the form of ERPs are also awarded to executives to strengthen the alignment between the interests of executives and shareholders. For more information refer to the Remuneration report(126kb .pdf). |
| INT6 | Female to male salary ratio. | PC | Our performance–workforce. |
| INT7 | Employee profile per hierarchy level and country. | PC | Our performance–workforce. |
Performance to society |
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| SOC1 | Charitable contributions. | C | Our performance–community. |
| SOC2 | Economic value created by an organisation’s activities. | C | Annual review. |
Suppliers |
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| SUP1 | Polices and procedures to screen suppliers’ social performance. | C | Stakeholder engagement; Supplier selection guidelines (19kb .pdf) |
| SUP2 | Supplier satisfaction. | NR | We work closely with each of our suppliers, facilitating an open dialogue for any identified issues to be raised and addressed. |
Asset management |
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| AM1 | Social criteria applied in asset management. | C | Our performance–Maximising and sustaining IAG’s investment returns. |
| AM2 | Report on provision of tailored and innovative products and services applying special positive ethical/sustainability criteria. | C | CEO statement in IAG’s Annual review; Our performance–Rewarding customers for sustainable activities. |
| AM3 | Socially Responsible Investment oriented shareholder activity. | C | Our performance–economic. |
Insurance |
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| INS1 | Social criteria applied in underwriting policy. | PC | Our approach–customer. |
| INS2 | Customer profile. | NR | We take age into account in determining the risk profile of our customers, for example discounts for over 50–year olds as they are a better risk. |
| INS3 | Report on the number of complaints received from customers. | NR | As part of our obligations under the General Insurance Code of Practice, we provide statistics to the Financial Ombudsman Service on complaints and disputes. We will consider reporting of these figures in 2010. |
| INS4 | Provision of tailored and innovative products and services applying special ethical/sustainability criteria. | C | CEO Statement in IAG's Annual review; our approach–customer. our performance–customer. |
