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2017 towards sustainability report
AMP 2017 towards sustainability report2
AMP Limited ABN 49 079 354 519Unless otherwise specified, all amounts are in Australian dollars.Information in this report is current as at March 2018.All statistics highlights are current as at 31 December 2017.
Contents3 CEO’smessage4 Keyhighlightsof20175 AboutAMP6 AMP’svisionandstrategy7 Aboutthisreport8 Oursustainabilityjourney9 Materialissues
Our customers10 Customerexperience12 Digitaldisruptionandinnovation14 Cybersecurityandprivacy16 Regulatoryenvironment
Our people17 Ethicalconductandprofessionalstandards19 Diversityandinclusion21 Supportinganddevelopingpeople
Our community23 Climatechangeandtheenvironment28 Responsibleinvesting30 Sustainablesupplychainmanagement31 Communityinvestment
AMP 2017 towards sustainability report3
Tocontinuetohelp,itisimperativeweconsiderhowbesttoanticipateandrespondtothepotentialrisksandchangesintheworldaroundus.UnderstandingandpositioningAMPforchange–whetheritbetechnological,social,environmentalorregulatory–isvitaltooursustainability.
Wehavelongbeenengagedinsustainability:reducingourenvironmentalfootprint,improvingourgenderdiversity,contributingtothecommunitythroughtheAMPFoundationandundertakingresponsibleinvestingviaAMPCapital.Toconsolidateourprogresstodateandsetapathforthefuture,weareonajourneytostrengthenoursustainabilitystrategy,governanceandreportingprocesses.
Tothisend,thisreportbuildsonandextendsourpreviousenvironmentalandsocialreporting.Itworkstocomplementourotherpubliclyavailablereports:ourannualreport,ourcorporategovernancestatementandourtaxtransparencystatement.
Giventheroleweplayinassuringthefinancialsecurityofmillionsofpeople,wehaveadutytobetransparentandaccountableinallwedo.Whenwemakemistakes,it’simportantweputthingsrightforthecustomer,holdourselvestoaccountandworkhardtofixtheunderlyingissue.ThisiswhywefullysupporttheaimsoftheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry.
Ourapproachtosustainabilityisbuiltaroundthreeconnectedareasoffocus:ourcustomers,ourpeopleandourcommunity.Thisreportidentifiesourmaterialissuesandrisksagainsteachandsetsoutourplansandprogresstodate.
Whilethisreportisastepintherightdirection,weacknowledgethatwestillhavemoretodo,andwillbeworkingtowardsproducingamorecomprehensivesustainabilityreportin2019.
Byanticipatingandrespondingtotheissuesthatmayimpactthefutureprosperityofourcustomers,ourpeopleandourcommunity,webelievewecancontinuetohelpcreateabettertomorrow.
Craig MellerChiefExecutiveOfficer
CEO’s message
Since 1849, AMP’s goal has been to help people own tomorrow. Today we help millions of people in Australia and New Zealand take control of their finances and achieve their goals.
AMP 2017 towards sustainability report4
Key highlights of 2017
5% reduction in Scope 1 and 2 (operational) greenhouse gas emissions
$5.7m in funds were distributed to the community by the AMP Foundation
40%of the AMP Limited Board members were female, meeting our 2020 target
122university students enrolled in the AMP Adviser Academy
$2.5b in Australian retirement payments, including mature payments
$1.1bin insurance claims helped our customers
Our peopleDrawingondiverseexperiencesandwaysofthinkingiskeytobuildingourcultureofintegrity,performanceandhelp.Assuch,in2017wesetmorechallenginggenderdiversitytargetsforourbusiness.
Weremaincommittedtoprovidingourfinancialadviserswithqualityeducationandsupport,backedbyourinvestmentingoals-modellingtechnology.
Our communityWeannouncednewenvironmentaltargetsandreviewedtherecommendationsoftheTaskforceonClimate-relatedFinancialDisclosures(TCFD)withinthecontextofourexistingapproachtoclimaterisk.AndAMPCapital’snewethicaldecision-makingframeworkledtoarecorddivestmentoftobacco-relatedsecurities.
TheAMPFoundationmarkedits25thanniversarywithaziplineeventthatraised$1millionforourcharitypartners.
Our customersAspartofourcustomer-centrictransformation,wecontinuedtoreshapeoursystems,processes,productsandservicestomakethecomplexsimple.
Technologycontinuedtoofferchoiceandconvenience,withAMPapps,personalisedbudgetingtoolsandourpioneeringGoals360advicemodellingplatformgivingcustomersmorecontrolovertheirmoney.
AMP 2017 towards sustainability report5
About AMP
Wehavealonghistoryofhelpingcustomerstoprotectandgrowtheirsavingsandinvestments,andforalmost170yearswe’vededicatedourselvestohelpingpeopleachievetheirgoalswithqualitysolutions,servicesandexpertadvice.
Today,wearealeadingspecialistwealthmanagementcompanyinAustraliaandNewZealand,helpingpeopletobecomemorefinanciallysecurebysharingourexpertiseandprovidingproductsandservices,including:– financialadvice– superannuation,retirementincome
andinvestmentproducts
– bankingandinvestmentservicesforself-managedsuperfunds(SMSFs)
– incomeanddisabilityprotectionandlifeinsurance
– bankingproducts,includinghomeloans– investmentsinshares,fixedinterest,
property,infrastructure,multi-managerandmulti-assetfunds.
AustraliansandNewZealandersknowusbestforsuperannuation,lifeinsurance,investmentsandadvice,butwe’regrowinginretailbankinginAustralia.ThroughAMPCapital,wemanageinvestmentsinequities,fixedincome,infrastructureandrealestate,
anddiversified,multi-managerandmulti-assetfundsonbehalfofclientsaroundtheworld.
AMP’soperationsarelargelyfocusedonAustraliaandNewZealand,wherewehaveofficesinSydney,Melbourne,Adelaide,Brisbane,Perth,Auckland,WellingtonandChristchurch.However,asaninternationalinfrastructureandpropertymanager,AMPCapitaladvisesclientsandcustomersinAsia,theMiddleEast,Europe,theUnitedKingdomandNorthAmerica.AMPalsohasstrongpartnershipsinChinaandJapanandinvestmentsaroundtheworld.
Our purpose is to help people own tomorrow, helping them take control of their finances and achieve their goals.
750,000 shareholders
5,697 FTE employees
$848m net profit
3.8m customers in Australia and New Zealand
$2.5b in pensions paid
3,277 AMP-aligned advisers
AMP 2017 towards sustainability report6
AMP’s vision and strategy
Wewilldothatbymanagingastrong,customer-centredbusinessthatmeetstheneedsandexpectationsofbothourcustomersandinvestors.
Ourpurposeasabusinessisstillverymuchfocusedonhelpingcustomersowntomorrow.However,theimpactofrapidlyadvancingtechnology,changingcustomerpreferencesaswellasregulatorychangeonourbusiness,isdrivingourstrategicchoices.
Ourstrategyisclear.Wewilldelivergrowth,operatingingrowing,scalablemarketswherewehaveadistinctivecompetitiveadvantage.
In2017,ourstrategicprioritiestodelivergrowthwerefocusedon:– tiltingourinvestmenttothehigh
growthbusinessesinourportfolio– completingthecustomer-centred
transformationofourcoreAustralianbusiness
– expandinginternationally– managingcostsanddrivingefficiency
acrossthegroup.
Wemanageourportfoliosofbusinessesby:– managingforvalueandcapital
efficiency:inthosebusinesseswithslowergrowthorwherewedon’thavedistinctiveadvantage(Australianwealthprotection,NewZealand,mature)
– investingtogrow:wherewedohavedistinctivecompetitiveadvantageandwherethemarketfundamentalsareattractive(Australianwealthmanagement,AMPBank,AMPCapital)
– leveragingourstrengthsinrealassetmanagementandadviceinternationally.
Our approach to sustainabilityWearecommittedtomanagingourbusinesssustainablyfortodayandforthefuture,bycreatinglong-term,sharedvalueforourcustomers,ourpeopleandourcommunity.
OurapproachtosustainabilityisbuiltaroundthreeconnectedareasoffocusforAMP:ourcustomers,ourpeopleandourcommunity.Weunderstandthatresponsibleandethicalbehaviourandactivitydirectedtowardseachoftheseimportantareascanpositivelyimpactthesustainabilityoftheothers.
Wearefocusedonfindingbetterwaysofworkingtodeliverthebestoutcomesforourpeopleandourcustomers,reducingourenvironmentalfootprintnowandintothefuture,governingfairlywiththerightexpertise,returningvaluetoourshareholdersandinvestinginthecommunity.
Byanticipatingandrespondingtoissuesthatmayimpactthefutureprosperityofourcommunities,webelievewehelpcreateabettertomorrow.
We want all our customers to reach their goals – whether it’s buying their first home or retiring right.
Our people
help our customers and contribute to the economy and community. This is why diverse and well supported
employees and advisers are vital.
Our customers
are at the centre of our business. Every solution we provide needs to help our
customers reach their goals.
Our community
is the environment we live and work in. We aim to enhance the lives of the
people and places we affect – and encourage others
to do the same.
AMP 2017 towards sustainability report7
About this report
Providinganaggregatedviewofoursustainabilityissuesandmanagementapproach,thisconsolidatedreportalsobuildsonourresponsestotheCarbonDisclosureProject(CDP),theGlobalRealEstateSustainabilityBenchmark(GRESB),andAMPCapital’sreportingassignatoryoftheUN-backedPrinciplesforResponsibleInvestment(UNPRI).
Thepurposeofthisreportistoinformourstakeholdersabouthowwemonitorandmanagetherisksandopportunitiesassociatedwithourmaterialsustainabilityissues,andtoprovideasnapshotofouractivityineacharea.
Thereportformspartofourannual reporting suite,andiscomplementedbythefinancialdisclosuresinour2017annualreportandbythegovernanceandriskmanagementdisclosuresinourCorporateGovernanceStatement.WealsoreleaseanannualTaxReport,whichisavailableontheAMP Shareholder Centre.
Report scope ThescopeofourreportcoversAMP’soperationsgloballyandoverwhichwehavecontrolfortheperiod1January2017to31December2017.TheentitiesthatarewithinAMPLimited’sorganisationaloperationalcontrolboundaryareAMPServices,AMPCapitalInvestorsandtheirsubsidiaries,aswellastheAMPFoundation.
Our progress towards a sustainable future Wehavelongbeenengagedinsustainability,throughreducingourenvironmentalfootprintasanorganisation,improvingourorganisation’sgenderdiversity,contributingtothecommunitythroughourAMPFoundationandundertakingresponsibleinvestmentinAMPCapital.Wehavebeenrecognisedforourenvironmental,socialandgovernancepracticesthroughinclusionintheFTSE4Good Index Series.
Inordertoconsolidatetheprogressmadetodateandsetapathforthefuture,weareonajourneytostrengthenoursustainabilitystrategy,governanceandreportingprocesses.Inthecomingyearwearelookingto:– continuetointegratesustainability
inAMP’soverallstrategy,byshiftingfromaproductanddistributionbusinesstoacustomer-ledorganisation
– expandonthematerialityprocessundertakenin2017toobtainmorefeedbackfromstakeholders
– developrobustindicatorsandtargetsforexpectedperformance(forselectmaterialsustainabilitytopics)
– identifyhowwecanimplementtherecommendationsoftheTaskforceonClimate-relatedFinancialDisclosures(TCFD)withinthecontextofourexistingapproachtoclimateriskandreportontheoutcomes.
This report builds on the extensive reporting previously included in AMP community reports.
AMP 2017 towards sustainability report8
Our sustainability journey
The Australian Mutual Provident Society is founded on the idea that every individual should have the ability and power to control their life. 1849
AMP Foundation is the only institutional investor in GoodStart Early Learning – the largest social impact investment in Australia.2009
Our first dedicated Australian Equities Ethical Fund is launched through AMP Capital. 2001
2014Net Promoter System implemented as part of our new customer-centric focus.Establishment of the AMP Tomorrow Fund, our annual $1m grants program for individuals.Activity-based working introduced at AMP headquarters.
1992 The AMP Foundation is established as the philanthropic arm of our business.
2011 AMP debuts in the CDP ASX 200 Climate Disclosure Leadership Index.
AMP Capital is a founding member of the Investor Group on Climate Change.AMP Capital launches the Responsible Investment Leaders Balanced Fund. 2005
2016
AMP Capital’s Diversified Infrastructure Trust tops the international Global Real Estate Sustainability Benchmark (GRESB) rankings for best ESG (environmental, social and governance) performance.Reached our 2020 target of 40% female representation on the AMP Limited Board.Appointed our first female Chairman, Catherine Brenner.
2018 Increase transparency and establish sustainability KPIs across the AMP Group.
AMP commences a war-time commitment that life insurance policies sold to enlisted men would not carry extra charges, despite the increased risk. This extended into World War II.
1914
2010AMP Foundation launches the AMP Cancer Council Pro Bono Program, enabling our advisers to provide free advice to people affected by cancer.
2002Social Ventures Australia (SVA) is founded by the
AMP Foundation and three other non-profits.AMP Capital signs up to the Carbon Disclosure Project (CDP).
2015AMP is recognised by CDP for carbon-reduction initiatives, receiving a CDP Australian Climate Leadership Award for the second year in a row.
1998AMP Bank opens for business.
2013AMP becomes carbon neutral a year ahead of plan.
2007
AMP Horizons Academy opens to provide educational support for financial advisers.
AMP starts reporting under the National Greenhouse and Energy Reporting Act 2007.
AMP Capital becomes a signatory to the UN-backed Principles for Responsible Investment.
2017
Goals 360 modelling platform launched to help our advisers provide high-quality advice.
Creation of the AMP Customer Advocate function, strengthening our customer support services.
AMP Foundation celebrates 25 years by hosting a zipline event that raises $1m for charity.
AMP Capital launches its Ethical Investment Framework, divesting tobacco, cluster munitions, landmines, chemical and biological weapons.
2019Produce an enhanced sustainability report.
AMP 2017 towards sustainability report9
Theassessmentprocessinvolvedreviewingandanalysingthefollowingsourcesofinformation:– feedbackfromacross-sectionofemployees– analysisfromourin-houseESG(environmental,socialandgovernance)analystspecialists– analystandinvestorfeedback– reviewofmediacoverageonfinancialservicesissues– areviewofourcompetitors’materialityissues– feedbackfromourbusinesspartners– regulatoryfeedbackandrecommendations
Fromthisresearchweidentifiedtheareasofgreatestimportancetoourstakeholdersandourbusiness.Thefollowing11materialissueswereidentifiedasbeingofhighimportancetobothourbusinessandourstakeholders:
Our customers1. Customerexperience2. Digitaldisruptionandinnovation3. Cybersecurityandprivacy4. Regulatoryenvironment
Our people5. Ethicalconductandprofessionalstandards6. Diversityandinclusion7. Supportinganddevelopingpeople
Our community 8. Climatechangeandenvironment9. Responsibleinvesting10. Sustainablesupplychain11. Communityinvestment
Thisreportlooksatprogressandactionagainsteachissue.
Material issuesMaterial issues of greatest importance to our customers, our people and our community were identified through a business-wide assessment process.
AMP 2017 towards sustainability report10
Weharnessdigitaltechnologyandusebehaviouralinsightstounderstandourcustomers’motivationsandlifeexperiences,andhelpthemrealisetheirfinancialgoals.
AMPisworkingtowardsthisinanenvironmentofrapidtechnologicaladvancement,sustainedregulatorypressure,anageingpopulation,risingcustomerexpectationsandintensifyingcompetitioninthewealthmanagementandinsuranceindustries.
Weunderstandthathavingaccesstoqualityfinancialproductsandservicescanhaveaprofoundimpactonlives.AMPthereforehasadutytoensureitdeliversapositivecustomerexperience.
In2017,initiativestoimprovethecustomerexperienceincluded:
Acting on customer feedbackTheNetPromoterSystem(NPS)isanimportantpartofourapproachtoimprovingthecustomerexperience,helpingustojudgehowwellwemeetourcustomers’needsandexpectations.BasedaroundasurveyquestionthataskscustomershowlikelytheywouldbetorecommendAMPtofamilyandfriends,in2017itwasusedby120AMPteamstodriveimprovementsforourcustomers.
Apowerfulleverfordrivingbottom-upchange,thesystemmakesiteasyforemployeestorelatedirectlytocustomers,helpingthemtochangeourbehaviours,processesandpoliciesthatgetinthewayofabettercustomerexperience.
In2017,wereceivedmorethan59,000surveyresponses,withincreasesinNPSscoresrecordedforcustomers,financialadvisersandouremployersuperannuationpartners.Morethan200individualchangestoprocessesorcommunicationsweremadebasedonthiscustomerfeedback.
AMP Customer AdvocateAMPhasstrengtheneditssupportforcustomerswiththecreationofagroup-wideAMPCustomerAdvocatefunction.ThefunctionwillhelpcustomersoftheAustralianbusinesswhobelievethattheircomplaintshavenotbeenappropriatelyresolvedthroughAMP’susualcomplaintresolutionprocesses.
TheobjectivesoftheAMPCustomerAdvocatearetohelpourcustomersreceivefairandreasonableoutcomesandtoensurethatAMP’scomplaintsprocessesareaccessible,robustandtransparent.Thefunctionwillalsoworkcloselywithseniorleadersacrossthebusinesstolearnfromtheseexperiencesandimprovehowwehelpourcustomers.
In2018,wewillfocusonfullyestablishingthisnewfunctionandfurtherenhancingourcustomercomplaintsframework.
Improving the claims process InrecentyearsAMPhasdevelopedamoreholisticapproachtoinsuranceclaims,basedoninsightsfromcustomerresearchandhuman-centreddesign.
FastTrack,whichgivesAMPinsurancecustomerstheoptionofspeakingwithacasemanagerwhocanlodgetheirclaiminstantly,hassubstantiallyreducedthetimetakentolodgeaclaim.Bytakingtimetogainadeeperunderstandingofthecustomer,FastTrackhelpscasemanagerstomaketherightdecisionsfaster.
AMPcasemanagershavebeentrainedinbothfunctionalandmotivationalinterviewingtechniques.TheCourageousConversationsin-houseprogram,introducedinNovember2016,aimstohelpcasemanagersbetteridentifyacustomer’scapacityandmotivatorsforrecovery.Inthefirstsixmonths,managersreporteda34%increaseincustomersre-engagingwithtreatmentplans.
Since 2013, we have been transforming our business in Australia to put our customers at the centre.
605,351 Australian customers were helped to save for retirement through their employer super plan
1. Customer experience
Our customers
$2.5b in Australian retirement payments, including mature payments
$1.1bin insurance claims helped our customers
AMP 2017 towards sustainability report11
48,008 customers with AMP Bank mortgages
2018 goals– Continue the customer-centred transformation of our business– Simplify our solutions and make them more accessible– Expand our goals-based customer experience to provide
advice to more people
Goals-based advice Withanageingpopulation,recordlevelsofhouseholddebtandsignificantretirementsavingsgaps,Australianswillincreasinglyneedgoodadvicetomeettheirfinancialgoals.Ourambitionistomakefinancialadviceaccessible,expertandmeaningfulforourcustomers.
ThisiswhyAMPhasfundamentallyrethoughthowtodeliverfinancialadvice.Ourresearchshowsthatgoals-basedadviceisthemosteffectivewaytoengagewithcustomersandgivethemconfidenceintheirfinancialfuture.
OurAMPGoals360experiencehelpscustomerstoexplore,plan,trackandrealisetheirgoals.Weenhancedthisexperiencein2017withthelaunchofanewgoals-modellingplatform.Byselectingdifferentadvicestrategies,theplatformallowsadviserstomodelscenariosandgenerateadvicestrategiesinrealtime–enablingaricheradviceexperience.
Thetechnology,whichisbeingrolledouttoAMPAdvicepracticesandthebroaderadvicenetworkin2018-19,formspartofasuiteofservicesandtoolsdesignedtohelpadvisersdeliverhigh-quality,professionaladviceandcomplywiththeirreportingrequirements.
Giving customers choice AMP’sApprovedProductList(APL)isdesignedtogivecustomersofouralignedfinancialadvisersaccesstobroadand
high-qualityinvestmentproductsfromarangeofcompanies–notjustAMP.Itisinformedbytheworkofanindependentin-houseresearchteam.
Inadditiontoquarterlyperformancemonitoringofallmanagedfundinvestments,eachinvestmentassetclassisreviewedformallyevery12months.ThisinvolvesanassessmentofadequatechoiceandqualityoftheAPL.Followingthisreview,recommendationsaremadebytheAMPAdviceresearchteamforadditions,deletionsorratingchangestotheAPLforproductsintheassetclassunderreview.Changesoutsidethisformalreviewprocesscanalsotakeplace,ontherecommendationofourresearchteam.
Solutions to help people retire right AMP’sself-managedsuperfund(SMSF)administrator,SuperConcepts,launchedanonlineproductcalledConnectedServicesin2017thatenablesmemberstoaccessproductsandservicesfromthird-partyproviders.Thisallowsthemtomanagetheirinvestmentsinapaperlesswayandgivesadvisersandaccountantsbettervisibilityoftheirclients’investments.
SuperConceptsalsoupdateditsSMSFaccountingplatform,withanewtransactioncentrethatprovidesdailydatafeedsdirectfrominstitutions.Thecentreautomatesatime-consumingmanualprocessatatimewhentheATOrequiresmoreregularreporting.
TheMyNorthPensionpaymentplannerwasalsolaunchedin2017.ThisAustralian-firstretirementoffercombinesapensionpaymentcalculatorwiththeMyNorthRetirementFund,adiversifiedfund,managedbyAMPCapital.Theplannercalculatestheamountretireescanwithdraweachyeartoensuretheirsavingslast.In2017,AMP’sMyNorthPensionaccountwonChantWest’s2017AdvisedProductoftheYearaward.
KiwiSaver Scheme In2017inNewZealand,theAMPDefaultFundintheAMPKiwiSaverSchemewasawardedfivestarsfor‘outstandingvalue’intheconservativecategorybyCANSTAR,anindependentresearchandratingscompany.TheAMPKiwiSaverSchemehelpsover230,000NewZealanderssavefortheirretirement,andlooksafter$5billionworthofsavings.
Duringtheyear,AMPmade16newfundsavailablewithinitsAMPKiwiSaverScheme,providingmembersaccesstoatotalof27fundsmanagedbyfiveleadingfundmanagers.WealsolaunchedAMPEssentials–NewZealand’sfirstcombinedlife,traumaandtemporarydisablementinsuranceproduct(linkedwiththeAMPKiwiSaverScheme)tohelpaddresstheissueofunderinsuranceinNewZealand.
Inaddition,AMPwasnamedLifeInsureroftheYearbyTheAustralianandNewZealandInstituteofInsuranceandFinanceattheNewZealandInsuranceIndustryAwards.
Our customers
AMP 2017 towards sustainability report12
Technologicaladvancementspresentopportunitiestorethinkandimprovetheexperienceforcustomers,whohavecometoexpectfeaturessuchascardlesspaymentsystemsandpersonalmoneymanagementtools.
Ratherthanremovethehumanelement,digitalinnovationcanenhancethecustomerrelationship.AMP’sGoals360interactiveexperienceisagoodexampleofhowtechnologycanenhanceface-to-facefinancialadvice.
Advancesinartificialintelligence(AI),combinedwithincreasingautomationanddigitisation,haveconsiderablepowertonotonlycreateseamlesscustomerexperiences,butalsooperationalefficiencies.AMPalsounderstandsthatcybersecurityismorethananITthreat–itisaseriousbusinessriskthatrequiresaproactiveresponse.
Withthepressuretoinnovatestrongerthanever,anddigitalcustomerexperienceredefiningcompetitivenessinourindustry,AMPwillcontinuetodeliverdigitalsolutionsthatareseamless,intuitiveandsecure.
AMP Goals 360 advice platform In2017,AMPworkedwithleadingglobalactuarialfirmMillimantodevelopaninnovativegoals-modellingplatform.LaunchedinDecember,itisakeycomponentofGoals360–theend-to-endexperiencehelpingourcustomersexplore,plan,trackandrealisetheirfinancialgoals.
Themodellingplatformdemonstrates,inahighlyvisualandpersonalisedway,howthechoicescustomersmaketodayimpactontheirabilitytoreachtheirgoalsinthefuture.Itcanprojectaclient’sbalancesheetandcashflowsandtakeintoaccountmarketfactorssuchasAustraliantax,superannuationandsocialsecurityrulesandregulations.
Theplatformruns1,000differentscenariostodeterminethepossiblerangeoffutureoutcomes.Usingacombinationoftheprobabilitythatagoalwillbeachieved,andthepotentialshortfall,itcancalculate‘goalachievability’.
Developedusinghuman-centreddesign,theplatformfeaturesavisualtimelinethathelpsclientsunderstandhowachievableeachoftheirgoalsare,andhowadvicestrategiescanimprovetheirprospectsofachievingthem.Thesystem,whichwillbeavailablewithinouradvicenetworkin2018-19,alsohelpsincreaseproductivityforadvisersandsupportstheiradherencetocompliancerequirements.
AMPisalsoinvestinginanewpracticemanagementtool,builtontheSalesforceplatform,thatintegratespracticeoperationstechnologiessuchasCRM(customerrelationshipmanagement),operationalreporting,registry,policyadministrationandtelephony.Thistoolaimstohelpadvisersbetterservetheirclients,meetcompliancerequirementsandreduceoperationalcosts.
New technology is driving fundamental shifts in the way financial services organisations operate.
59,123 customers helped with SMSF admin and software services
5 Star rating for AMP Bank’s Bett3r account from Canstar, plus Mozo’s Experts’ Choice Innovation Award
290,724 used MyAMP and our apps to manage their finances
2. Digital disruption and innovation
Our customers
AMP 2017 towards sustainability report13
Wealth management tools In2017AMPintroducedseveraltoolstomakemoneymanagementeasierforourcustomers.
AMPBank’snewBett3raccount,withitsautomatedbudgetingandcashflowmanagementcapabilitiesconsistsofthreelinkedaccountsthatprovideanaccurateviewofincome,bills,savingsandspending,throughamobileapp.In2017,Bett3rwonMozo’sExpertsChoiceInnovationAwardandafive-starratingfromCanstar.
Bett3risanintegratedpartofMyAMP,ourmobilewealthmanagementportalthatprovidescustomerswithaholisticviewoftheirfinances–includingsuper,insurance,investmentsandbanking.AMP’sBett3randMyAMPwealthmanagementappsbothenableiPhoneXuserstosecurelylog-inusingfacialrecognitiontechnology.ThefunctionalityfollowsAMP’searlyadoptionoffingerprintlog-intechnology,availableonbothappsforiPhoneandAndroiddevices.
MyAMPalsoincorporatesMoneyManager,whichwaslaunchedin2017.LeveragingAMP’sinvestmentinpersonalfinanceplatformMoneyBrilliant,thismicro-budgetingtoolwasdesignedbyAMPincollaborationwithAMPfinancialadvisers.Itenablescustomerstosetabudgetforaslittleasonetransaction–suchasamorningcoffee.
Artificial intelligenceInFebruary2017,AMPbegantestingavirtualassistantthatcombineswebchatwithmachinelearningtohelpcustomersfilloutforms.BasedontechnologydevelopedbyAustralianfintechFlamingo,KimberlyguidescustomersthroughtheAMPFlexibleSuperform.
Asthecustomermovesfromonequestiontothenext,Kimberlycanfurtherexplainwhat’sbeingasked.Theaimistoprovideasimplerandmoreintuitiveprocess,avoidingthedelaysthatmightoccurifwaitingforapersontoreply.
KimberlyisoperatinginHAVA(human-assistedvirtualassistance)mode,whichenablesustolearnmoreabouthowcustomersareinteracting,thetypesofquestionsthey’llaskandwaystosimplifytheprocess.Intime,Kimberlywillproactivelysuggestanswerstoourwebchatoperators.Astheknowledgebasebuilds,wewilldeepenourunderstandingofcustomerneedsandhowtohelpthem.
AMPwillcontinuetoexploreartificialintelligenceandvoice-activatedtechnologytohelpmoreAustraliansmanagetheirfinances.
Amplify 2017 Foundedin2004,AMP’sannualAmplifyfestivalbringsleadingthinkerstoAMPfordiscussionsaboutthefutureofbusiness.Featuring42globalthoughtleadersexploringdigitaldisruptionandinnovation,Amplify2017wasattendedby2,700AMPcustomers,investorsandbusinesspeopleinSydney,MelbourneandAuckland.
LeadersfromSingularityUniversity,Facebook,Google,IBM,FlamingoandMIT(MassachusettsInstituteofTechnology)spokeaboutdigitaldisruptioninhealthcare,customerexperienceandtraditionalbusinessmodels;emergingtrendsinautomation,analyticsandartificialintelligence;aswellasblockchainandcryptocurrencies.
Amplify2017alsofeatured20businesschallengeworkshops,showcasedsixtechnologyproof-of-conceptsandenabled20AustralianPhDstudentstosharetheirideasattheIgnitepitchnight.
MoreinformationonAmplifycanbefoundatamp.com.au/amplify
2018 goals– Roll out the AMP Goals 360 goals-modelling platform
throughout the AMP advice network
– Continue to explore new technologies, including artificial intelligence and voice activation, to simplify processes and provide greater access to financial advice, tools and services
– Share business, technology and social innovation ideas at the Amplify 2018 festival in June
Our customers
AMP 2017 towards sustainability report14
Theseriskscontinuetobeafocusareaacrossthefinancialservicessector.
Assuch,weareenhancingourcybersecuritynetworkandhavedetective,preventativeandresponsivecontrolsinplacetoensureoursystemsandcustomerinformationisprotected.
Changesinthetechnologicalandconsumerlandscapealsoresultedinmorepublicawarenessofdataprivacyandprotection.Peopletrustustosecuretheirpersonalinformationandonlyuseitforthepurposestheyexpect.
Weworktoensurethesafetyofoursystemsandcustomerinformationinthefollowingways:
Data securityAMPiscommittedtoenhancingourcyberresilienceandrelatedcapabilitiesonanongoingbasis.Weregularlytest,reviewandenhanceoursecuritycapabilitiestoensureourcontrolsremaineffectiveinreducingtheimpactsofcyberincidents,aswellasmeetingincreasingregulatoryrequirements.
Associalengineeringandphishingremainthenumberonetechniqueusedbycybercriminals,itisofcriticalimportancethatwebuildacultureofcybersecurityawarenessatAMP.Acomprehensivecybersecurityawarenessandcultureprogramisrunbusiness-widetoensureallouremployeesareawareofthevarioustechniquesusedbycyberattackers,andcanconfidentlyandproactivelyreportanythingsuspiciousforinvestigation.
Aspartofthisinitiative,theAMPCyberSecurityTeamregularlyrunsphishingsimulationsthatimitaterealattacksacrossAMP.Ourfocusonrewardingstaffforreportingsuspiciousemailshasprovedtobehighlyeffectiveandwewillcontinuetofocusonbuildingastrongcybersecurityculturein2018.
Reporting data breachesDatabreachesinvolvetheloss,unauthorisedaccessordisclosureofpersonalinformation.Thiscanincludeanerrorbyacompany,thatofathirdpartyormaliciousattacksbyhackers.Managingandrespondingtoincidentsiscritical.AMPtakesdatasecurity,andourobligationstoreportandnotifycustomers,veryseriously.Wehaveacomprehensiveincidentresponseanddatabreachresponseplans,whichensureaproactiveapproachtounauthorisedaccess,disclosureorlossofpersonalinformation.
AMPisapartnerofCERT,whichisAustralia’snationalComputerEmergencyResponseTeam.CERTistheprimarygovernmentcontactpointformajorAustralianbusinessestoreceiveandrespondtocybersecurityincidentreports,aswellassupportandadvisebusinessesonhowtorespondtoandmitigatecyberincidents.
Ourdatabreachresponseplan,developedandimplementedin2017,setsouthowweidentify,contain,assessandnotifyrelevantregulatorsandimpactedcustomersofdatabreaches.ThisplanmeetsthenewstandardsoutlinedinthePrivacyAmendment(NotifiableDataBreaches)Act2017,whichcameintoeffecton22February2018.
While technological advancements provide great opportunities for us to innovate and offer new digital solutions for our customers, they also bring new cyber risks.
3. Cyber security and privacy
Our customers
AMP 2017 towards sustainability report15
2017 incident response InOctober2017,alimitednumberofAMPemployeeswereamong50,000workersfromacrossgovernmentagenciesandfinancialinstitutionswhosestaffexpenseswereinadvertentlyexposedbyathird-partysupplier.
Thedataexposedwashistorical,archivedandpartiallyanonymised.TheAustralianCyberSecurityCentre(ACSC)immediatelycontactedtheexternalcontractortosecuretheinformationandremovethevulnerabilitywithinhoursofnotification.Onceidentified,themistakewasquicklycorrectedandthematterinvestigatedtoensurealldatahadbeenremoved.NoAMPcustomerdatawascompromised.
AMPemployeesinAustraliaandNewZealandwhowereaffectedwerenotified.
Protecting customer privacy AMPhasprivacypoliciesandstatementsthatsetouthowwecollect,useandprotectpersonalinformation.Wetakestepstostorecustomerinformation–whichisgatheredthroughface-to-facemeetingsorbyinteractingwithusviatelephone,mail,onlineorothermethods–securely.AMPholdscustomers’personalinformationinacombinationofsecurecomputerstoragefacilities,paper-basedfilesandotherformats.
Whenwenolongerneedcustomers’personalinformation,wedelete,destroyorde-identifyit.CustomerscanaccessthepersonalandcreditinformationAMPholdsaboutthembycontactingus.Wetakeprivacy-relatedcomplaintsseriouslyandconsiderallcomplaintscarefullyaspartofourcommitmenttobeingopen,honestandfair.Inmostcases,wecontactcustomerswithinfiveworkingdaysofreceivingacomplainttoinformthemoftheactionstaken.
Raising privacy awareness Ouremployeesplayanimportantroleinprotectingcustomers’personalinformationfrommisuse,loss,unauthorisedaccessorimproperdisclosure,whichiswhyAMPprovidesprivacycommunicationandawarenesstoallemployees,includingmandatorytrainingonline.
AMPplaysanactiveroleinPrivacyAwarenessWeek–anOfficeoftheAustralianInformationCommissionerinitiativeheldeachMay–toraiseprivacyanddataprotectionawarenessacrossthecompany.
In2017,wetookpartbyraisingemployeeawarenessabouttheimportanceoffollowingprocessesandprocedures,raisingincidentsandmanagingprivacyriskswhendealingwithprojectsandbusinesschanges.
Moreinformationonourapproachtoprivacyandsecurityisavailableatamp.com.au/amp/privacy
2018 goals– Continue to build a strong cyber security culture and maintain
our data breach response plan – Enhance our security capabilities to ensure our controls
remain effective – Build awareness among employees about changes to mandatory
data breach reporting
Our customers
AMP 2017 towards sustainability report16
AMPrecognisesthatfailuretoeffectivelyanticipateandrespondtoregulatorychangescouldadverselyimpactourreputationandbusiness–and,inturn,ourcustomers,ourpeopleandourinvestors.
Wemanagethisriskbyhavingdedicatedresourcestoimplementrequiredchangeprogramsandactivelyengagewithgovernment,regulatorsandindustrybodiestoeffectivelymonitorandanticipateregulatorychanges.
AMPalsoplacessignificantfocusonourriskculturetoensurewearekeepingourlegalandregulatoryresponsibilitiesfrontofmindinourdailyactivities.
Restoring trust and confidenceWetakeourregulatoryandcommunityexpectationsseriously.Assuch,AMPwelcomestheopportunitytocontributetotheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry.Wefullysupportitsaimsaswebelieveastrongandstablefinancialsystemiscriticaltothenation’seconomyandtoallAustralians,andwilldoallwecantohelprestorethecommunity’strustandconfidenceinourindustry.
Contributing to policy and legislative developmentItisvitalthatAMPparticipatesinpolicyandlegislativedevelopmentsthatimpactourcustomers.Wehaveadedicatedteamtomonitorandactivelyrepresentourcustomersandstakeholdersonthecomplexlegislativeframeworkthatimpactsourinteractions,aswellasimportantdiscussionsonthepotentialoutcomesforretirementincomes,lifeinsuranceandfinancialadvice.
In2017wecontributedtomanyoftheseimportantpolicyandregulatorydevelopments,including:– supportingthelegislatedincreaseof
educationandethicalstandardsforexistingandnewfinancialadvisers.Thesewillbephasedinfrom1July2018andwerebasedonpositionsadvocatedbyAMPsinceAugust2014
– supportingreformsthatregulatethepaymentofcommissionsinthelifeinsuranceindustryandtheindustry-ledFinancialServicesCouncil(FSC)LifeInsuranceCodeofConduct,whichcommencedon1July2017
– providingsubmissionstothethree-phasedProductivityCommissioninquiryintotheeffectivenessandcompetitivenessofthedefaultsuperannuationmarket
– ProvidingsubmissionstotheProductivityCommission’sinquiryintothebankingandfinancialservicessector
– supportingthedevelopmentofthenewAustralianFinancialComplaintsAuthority,whichisdesignedtobeaone-stopshopforcustomerswhohaveacomplaintrelatingtofinancialservices
– contributingtotheworkbeingundertakenbytheParliamentaryCommitteeonCorporationsandFinancialServicesInquiryintotheLifeInsuranceIndustry,whichisexpectedtoreporttogovernmentinearly2018
– participatinginanumberofconsultationsregardingthedevelopmentofanewComprehensiveRetirementIncomeProduct(CIPR),whichwebelieveisafundamentalissuethatmustbeconsideredtoensureappropriateproductsandregulatorysettingscaterfortheneedsofAustralianswithgreaterlongevityandresultingagedcareneeds.
The financial services sector has experienced considerable regulatory and legislative change in recent years, as well as media and political scrutiny.
4. Regulatory environment
Our customers
AMP 2017 towards sustainability report17
ThisiswhyAMPiscommittedtoestablishingacultureofintegrity,helpandperformancethatenablesustomeetevolvingregulatory,customerandcommunityexpectations.
Wetakeavarietyofmeasurestomanagetheriskofinappropriate,unethicalorunlawfulbehaviourbyemployeesandouralignedadvisers,andprovideasafeenvironmentthatsupportspeopletospeakoutaboutpotentialissuesorconduct-relatedbehaviours.
Weknowourcustomerswanthelpthatisexpert,proactive,personalisedandeffortless.Asuiteofpolicies,chartersandguidelinescomplementtheseprinciplesandsetoutthebehaviourexpectedofouremployeesandadvisers,asrepresentativesofAMP.
Waysinwhichwemanageourethicalandlegalresponsibilitiesinclude:
Code of Conduct AMP’sCodeofConductsupportsastrongrisk-awarecultureandoutlinestheminimumstandardsforbehaviours,decision-makingandourexpectationsforhowwetreatouremployees,customers,businesspartnersandshareholders.
Bylivingbyourcode,weaimtocreateanorganisationthatmakesadifferencetothelivesofcustomersandprovidesemployeeswithaworkplacethatisflexibleandsupportive,fosterspersonalandprofessionaldevelopmentandbringsoutthebestinpeople.
OurcodeappliestoanyoneemployedbyorwhodoesworkforAMP.Wetrustourpeopletoactprofessionallyandwithintegrity;respectandvaluedifferencesandcreateasafeworkingenvironment;actinthebestinterestsofAMP,ourcustomers,businesspartnersandshareholders;identifyandmanageanyconflictsofinterest,andrespectprivacyandconfidentiality.
PoliciesthatcomplementAMP’sCodeofConductincludethoseoninclusionanddiversity,anti-moneylaunderingandcounterterroristfinancing,conflictsofinterestandmarketdisclosure.
Whistleblowing and fraud policies AMP’sWhistleblowingProgramexiststoprotectpeoplewhocalloutunacceptablebehaviour.In2017,AMPexpandedthisprogramtoprovidewhistleblowerswithafarstrongersenseofsafetyandprotectionthaneverbefore.
AMPcontractedanewexternalwhistleblowingserviceprovider,YourCall–a24/7globalindependentservicethatemployeescancalltoraiseconcernsindependently.YourCallalsoprovidesasupportcentreforwhistleblowers.
InadditiontobeingavailabletoAMPemployees,theprogramisnowopentoformeremployeesaswellasAMPcontractors,suppliersandAMP-alignedfinancialadvisersandtheiremployees.Itaimstogivepeopletheconfidencethattheirconcernswillbeinvestigatedinanobjective,independentandconfidentialmanner,withappropriatecorrectiveactiontobetakenaswarranted.
Ourpeoplehaveanobligationtoreportfraudulentincidents,enquiriesandunusualactivityinaccordancewithourFraudPolicy.Theyareencouragedtobevigilantofactivityandbehaviourthatmayappearunusualorsuspicious,andcanraiseconcernswithAMP’sEnterpriseRiskManagementTeam,theirlinemanagerorourWhistleblowerProgram.
MoreinformationonAMP’sCodeofConductandWhistleblowingPolicyareavailableatamp.com.au/corporategovernance
Everything we do, every decision we make, has an impact – not only on the long-term success of our business, but also on the lives of our customers.
5. Ethical conduct and professional standards
Our people
AMP 2017 towards sustainability report18
Supporting quality advice Asthelargestfinancialadvicenetworkinthecountry,AMPwantsAustralianstohaveconfidenceintheadviceweoffer.Tohelpouradvisersmeetthehighestethicalandprofessionalstandards–aswellastheFinancial Adviser Standards and Ethics Authority’s (FASEA) educationalrequirements–weprovidetraining,educationanddevelopmentopportunitiesaswellasthetools,knowledgeandsupporttodrivegoodoutcomes.
In2017weintroducednewinitiativestohelpassurequalityadvice,includingsharingmonthlyinsightsintoanycomplianceissues;takinganewapproachtoembeddingpolicyandprocessesviaourAdviceandProcessImprovementManagersandnewanalyticstohelpusidentifypracticeswhereinterventionmayberequired.Thesewerecomplementedbyourrefinedend-to-endissuemanagementandreportingprocessalignedtonewindustryandregulatorstandards,andatechnicalresearchteamthatinterpretsnewlegislationandregulationsforadvisers.
AMPalignedadviserswerealsosupportedwithanewrangeofLifeInsuranceFramework(LIF)activitiestopreparethemfornewlegislationtakingeffectinJanuary2018.Theseincludedmasterclasses,legislativeupdatesandspecialisedtrainingforpracticestaff,webinarsandaresourcehub.
Putting things rightInMarch2017,theAustralianSecuritiesandInvestmentsCommission(ASIC)issuedareporttitled‘Howlargeinstitutionsoverseetheiradvisers’.Partoftheregulator’sWealthManagementProject,whichhasbeenreviewingtheconductofsixofAustralia’slargestbankingandfinancialservicesinstitutions–ANZ,CBA,Macquarie,NAB,WestpacandAMP–thereportassessesnon-compliantadviceprovidedbetween1January2009and30June2015.ASICreleasedanupdateonthisreportwithdatatoDecember2017.
In2017,AMPpaid$7.3mincompensationtoover800customerswhohadreceivednon-compliantadvicebetween2009and2015.
Wecontinuetoremainsupportiveofregulatoryandindustryinitiativesthatensurecustomersreceivehighqualityfinancialadvice.AMPalsostandsbehindtheadvicewegiveand,ifweidentifycomplianceissues,weapologiseandoffercompensation.Weremainvigilantandcontinuallyassessandimproveallourprocessesandsystemstoensureourcustomershavetrustandconfidenceinthefinancialadvicetheyreceive.
AMPengagedanexternalconsultingfirmtoconductanindependentreviewoftheactionsweneededtotaketomeetASIC’sguidelines.Arepresentativefromthatfirmisnowleadingtheimplementationofourcompensationapproach.Wewillcontinuetoenhanceourmonitoringandsupervisionprocesses,workcloselywithouradvisernetworktoensuretheyremaincompliantwiththeregulations,andcontinuetoinvestintechnologytoembedcomplianceintotheadviceprocess.
Our people
2018 goals… – Support AMP-aligned advisers to meet the Financial Advisers
Standards and Ethics Authority’s education requirements – Continue to provide tools, training and expert support
to advisers – Continue to promote our Whistleblowing Policy to
AMP employees and advisers
AMP 2017 towards sustainability report19
Ourcustomersareasuniqueasweare,andtotrulyunderstandandsupportthem,weareleveragingthestrengthsandskillsofeachandeveryoneofourpeople.
Wevaluedifferentwaysofthinking,andeveryoneisencouragedtosharetheirthoughtsandexperiencestodeliverbetterbusinessdecisionsandsolutions.Therearefourpillarsinourinclusionanddiversitystrategy:– Committed and inclusive leadership:
Wesupportourleaderstocreateaninclusiveculture.Inour2017peoplesurvey,ouremployeesoverwhelminglysaidtheyfeelsupportedtoperformtothebestoftheirabilities,theirleadergenuinelycaresabouttheirwellbeingandAMPemployeesaretreatedfairly,regardlessofgender,age,ethnicity,race,disability,religion,sexualorientationorotherdifferences.
– Merit-based policies and practices: Wefocusonequalitywhenwerecruit,develop,promoteandpayourpeople,aswellaswhenwerecogniseandrewardtheirperformance.Thisincludeshavinggender-balancedrecruitmentshortlists,developingfemaleleaders,reviewingourpayandperformanceoutcomesandprovidingpoliciesandpractices−likeflexiblework−thatsupportallourpeople.
– Decision-making and voice: Weleveragethediversethinkingacrossourbusinesstobetterunderstandourcustomersandmeettheirneeds.
– Measurement, accountability and rewards: Wesetchallengingdiversitytargetsandbelievemeetingthesetargetswilldeliverbetterresultsforourbusiness.AMPalsoconductsanannualpayequityreviewtoanalyseandaddresspotentialareasofinequity.
TheCEOandGroupLeadershipTeammakeuptheAMPInclusionandDiversityCouncilandguidetheorganisation’sgoalsanddirectionforinclusionanddiversity.Theyarealsoresponsibleforinspiringourleadersandholdingthemtoaccount.ThePeopleandRemunerationCommitteeoverseestheimplementationofourinclusionanddiversityinitiatives,andreportsprogresstotheboard.
OurInclusion and Diversity Policy isavailableatamp.com.au/corporategovernance
Gender equality In2017,AMPwasonceagainnamedanEmployerofChoiceforGenderEqualitybytheFederalGovernment’sWorkplaceGenderEqualityAgency.
AMPhasgendertargetsinplaceandweremaincommittedtoachievingthem.Ourgoalistohavewomenhold47%ofseniorexecutiverolesand50%ofmiddlemanagerrolesbytheendof2020.Thesetargetsreflectourbeliefthataninclusiveanddiverseworkplacedeliversbetterresultsforourshareholders,customers,employees,businesspartnersandcommunities.
Despiteourongoingfocusongenderdiversity,AMPdidnotmeetitsprogresstargetsin2017,largelyduetochangesinouroperatingmodel.Therepresentationofwomeninseniorexecutiverolesfellto38%at31December2017,andwomenholdingmiddlemanagerroleswasat41%.
TheCEOandGroupLeadershipTeam(astheAMPInclusionandDiversityCouncil)hasreneweditsfocusongenderequalitywithadedicatedplantoincreasetherepresentationofwomenattheselevelsby:– takingovertaccountabilityforfemale
succession,talent,sponsorshipandadvocacy
– reviewingandaligningrecruitmentandappointmentpracticesanddecisionmaking
– mainstreamingflexibleworkforallemployees
– openlycommunicatingandsharingstoriesaboutgenderissuesandactions.
Overall,womenmakeup51%ofourworkforce.
Wealsohavea40:40:20targetinplacefortheAMPLimitedBoard,wherebywomenhold40%ofboardpositions,menhold40%ofpositionsandeitherwomenormenholdtheremaining20%ofpositions.Womencurrentlyfill40%ofpositionsontheAMPLimitedBoardandweareoneofthefewASX200companieswithafemalechairman.
We believe an inclusive and diverse workplace delivers better results for our shareholders, customers, employees, business partners and communities.
5,697 employees (FTE) worked at AMP
51% of AMP employees were female
6. Diversity and inclusion
Our people
40%of the AMP Limited Board members were female, meeting our 2020 target
AMP 2017 towards sustainability report20
Representation of women at AMP
Roles 2020 target (%) 2017 progress target (%) 31 December 2017 (%) 31 December 2016 (%)
AMPLimitedBoard 40 40 40 40
Seniorexecutives1 47 42 38 40
Middlemanagement2 50 44 41 41
Allemployees n/a n/a 51 52
1 SeniorexecutivesaregenerallyonetofourreportinglayersbelowtheCEOandrepresentthetop8%oftheorganisation.Peopleintheserolestypicallyleaddiscretefunctionsandareresponsibleformakingstrategicdecisionsforthosefunctions.TheygenerallyhavethetitleGroupExecutive,DirectororHeadof.
2 MiddlemanagersaregenerallybetweenthreetosixreportinglayersbelowtheCEOandrepresentthenext25%oftheorganisation.Peopleintheserolestypicallyreporttoourseniorexecutivesandareinvolvedinoperationaldecisionmaking,orhavespecialisedandhighvalueskills.TheyhaveawiderangeoftitlesincludingSeniorManager,ManagerandLead.
Drawing on diverse experiences AMPaimstounderstandthemakeupofourpeopleandleveragetheiruniqueinsightsandexperience.ResultsfromAMP’sfirstinclusionanddiversitysurvey,completedby4,138employeesinmid-2016,revealedthat:– 49%wereborninAustralia– 10%wereborninNewZealand– 1.9%identifywithanIndigenousculture
ofthePacificregion(AboriginalorTorresStraitIslander,MaoriorPacificIslander)
– 17%speakalanguageotherthanEnglishathome
– 10%arefluentineitherHindi,MandarinorCantonese
– 48%haveworkedinanothercountryformorethansixmonths
– 40%haveonlyworkedinfinancialservices/insuranceinthepast10years
– 66%areuniversityqualified– 4%haveaphysical,sensory,learning
ormentalhealthdisability
Beingawareofouremployees’culturalbackgroundnotonlyprovidesdifferentperspectivesonourbusinessbutalsoenablesustobetterconnectwithourcustomers.Forexample,wedrawonourpeople’slanguagecapabilitiesinourcustomercontactcentreandforAMPCapitalclientinteractions.
AMProudAMProudisacommunitygroupforlesbian,gay,bisexual,transgender,intersexandqueer/questioning(LGBTIQ)employeesandtheiralliesandsupporters.ThegroupisopentoallAMPemployees,regardlessofsexualorientation,andpromotesadiverseandinclusiveenvironmentwhereemployeescanconfidentlypresentthemselves,andfeelfreetotalkabouttheirfamilyandlives.AMProudplayedanimportantroleinAMP’s2017decisiontosupportmarriageequalityinAustralia.
MoreinformationonworkingatAMPcanbefoundatamp.com.au/ampcareers
2018 goals– Work towards achieving gender parity in AMP’s middle
and senior management by 2020– Increase our focus on flexible work for our employees
Our people
AMP 2017 towards sustainability report21
AMPactivelysupportsthephysicalandpsychologicalhealthofouremployeesthrougharangeofhealthandwellbeinginitiatives.Ourvisionistohelpourpeopletobeandperformattheirbest,andsupportourcustomerstoachievetheirgoals.
Stabilityandtheretentionofintellectualcapitalisalsocriticaltoourbusiness,whichiswhywededicateresourcestomanagechangeandstrivetocreateasafeandsupportiveworkenvironment.
Wesupportourpeople’shealth,wellbeingandprofessionaldevelopmentinthefollowingways:
Healthy workplaces In2017,wecontinuedtherolloutofouractivity-basedworking(ABW)modeltoourBrisbaneofficeandthroughoutmoreofourSydneyheadquarters.OurABWdesignincludesavarietyofworkingspaces,standingdesksandmobiletechnologytoencourageflexibleandhealthierworkpractices.
Wearealignedwithinternationallyrecognisedhealthybuildingframeworks,includingGreenStar,theWELLBuildingStandardandFitwel,toensurebest-practiceinindoorenvironmentalquality,ergonomicsandactivespaces.
AsignatorytotheRoyalAustralasianCollegeofPhysicians’ConsensusStatementon‘goodwork’,weimplementhealthandsafetysystemsthatminimiseriskstophysicalandmentalhealth.Wehelpourpeoplemanagetheirhealththroughstructuredfitnessandnutritionprogramsandbyprovidingon-sitefluvaccinations,
skincancerchecksandmedicaltests.
OurBoard’sRiskCommitteemonitorshealthandsafetyperformanceandoverseestheidentificationandmitigationofworkplacerisksandimplementationofprogramstocontinuallyseekfurtherbest-practiceinjurypreventionandmanagementopportunitieswithinthebusiness.
Throughout2017,AMPembarkedonacontinuousimprovementplantosimplifyourframeworktokeepourpeoplesafeandsupported.Ourglobalpolicywasrevisedtoencompassourviewofwellbeing,healthandsafety.Thispolicy,alongwiththecommencementofsystemsenhancementsandthedevelopmentofaholisticwellbeingstrategy,willkeepusfocusedonmaintainingapositiveandproductiveculture.
2017alsosawtheintroductionofourDomesticandFamilyViolenceSupportPolicytosupportemployeeswhoaredirectlyorindirectlyexperiencingdomesticorfamilyviolence.
Mental health initiatives AMPunderstandstheimportanceworkplaysinindividualwellbeing,particularlymentalhealth.Wesupportourpeopletomanagetheirmentalhealththroughresiliencetraining,flexibleworkpoliciesandaccesstoafree,confidentialcounsellingserviceforthemselvesandtheirimmediatefamily.
In2017,AMPlaunchedanupdatedmentalhealthtrainingprogramforallouremployeesandadvisersinpartnershipwiththeBlackDogInstitute.Thistraining
program,originallydevelopedforcustomer-facinginsurancestaff,exceedstheFinancialServicesCouncilstandardsintermsofthebreadthofpeopleabletoaccessthetrainingandthedepthofcontentcovered.
Employee benefitsAMPprovidesemployeeoffersforarangeoffinancial,physicalandmentalhealthservices,including:– anAMPchildcarecentreinSydney
andgenerousparentalleave– acomprehensivevolunteeringand
matchedgivingprogramthroughtheAMPFoundation
– offersforfinancialproductsandservices– 12%employersuperannuation
contributions– salary-sacrificedgymmemberships,
childcarefees,supercontributions,parking,novatedleases
– regularhealthandwellbeingprograms,andon-sitegymsatsomeoffices
– third-partydiscountsthroughouronlinediscountprogram,AMPAdvantage
– flexibleworkingarrangementsandtheopportunitytopurchaseadditionalleaveeachyear.
Perform@AMPIn2016,were-inventedourapproachtoperformancemanagementandintroducedPerform@AMP,whichisunderpinnedbythephilosophyof‘alwayslearningandimproving–together’.Theapproach,designedtobemoreagileandcollaborative,focusesonimprovingperformancethroughfrequent,qualityconversations.
7. Supporting and developing people
Our people
78%of employees adopted the new Perform@AMP style of performance management
3rdranked financial services employer of graduates by the 2017 Australian Association of Graduate Employees Survey
Our promise to help people own tomorrow includes supporting the health, wellbeing and development of our employees and advisers.
122university students enrolled in the AMP Adviser Academy
AMP 2017 towards sustainability report22
Performanceisassessedonarangeoffactors,notjustanemployee’sabilitytodeliverresults,butalsohowtheyhelpcustomersandcolleagues,howtheykeepupwithchange,howtheydemonstrateimprovementandareaccountablefortheirdevelopment.Perform@AMPincludesanonlinetoolkitthathelpsourpeoplesettheirgoalsandcreateadevelopmentplan.
In2017,78%ofouremployees–includingleaders–adoptedPerform@AMP.Groundedinbestpractice,neuroscienceandourowninsights,Perform@AMPwonaGoodDesignAwardforServiceDesignin2017inrecognitionofitshuman-centreddesign.
Our graduate programAMPprovidessupportedentryintothefinancialservicessectorthroughourgraduateprogram.Thistwo-yeartargeteddevelopmentprogram,whichiscommittedtonurturingnewtalent,tookin34Australiangraduatesin2017.Forthesecondyearinarow,theAustralianAssociationofGraduateEmployees(AAGE)placedAMPinthetopthreeemployersofgraduatesintheAustralianfinancialservicessector.Overall,AMPwasrankedsixthoutof75inAAGE’sgraduateemployerslist.Theratingisbasedonanationalsurveyofmorethan2,500graduateparticipantsandmeasuredtheexperienceofgraduateswhojoinedourprograminFebruary2017.
Supporting new advisers TheinitialprofessionaldevelopmentofnewfinancialadvisersissupportedthroughtheAMPAdviserAcademy–acentreofexcellencededicatedtofinancialadvisereducation.
TheAMPAdviserAcademy,whichcelebrateditstenthanniversaryin2017,delivershigh-qualityadvicetrainingforthosenewtotheprofession,seekingacareerchangeorlookingtostarttheirownpractice.A2017snapshotofthoseattendingtheacademyshowslessthanhalfhavehadanaccountingorfinancialservicesbackground,andsignificantnumberscamefromfieldssuchaseducation,customerserviceandengineering.Studentsaged46andoverarerepresentedinalmostequalnumbersasthoseunder26.
Theacademyoffersworkshops,tutorialsandcoachingsessionsthroughitsFinancialPlanningSkillsunit.PartoftheGriffithUniversityMasterofFinancialPlanning(MFP)qualification,thissubjectwasintroducedin2015inresponsetothedemandforflexibledegree-levelqualificationsresultingfromthegovernment’sincomingminimumeducationstandardsandAMP’scommitmenttosettingthebenchmarkforqualityfinancialadvice.StudentssplittheirtimeequallybetweenstudyingonlineandresidentiallyattheAMPAcademyinSydney’sStLeonards.
In2017,122universitystudentswereenrolledintheAMPAdviserAcademy.Duringtheyear,theAMPAdviserAcademywasrecognisedwithtwointernationalawards:theLearnXPlatinumBestTalentPartnershipforitsjointinitiativeswithGriffithUniversityandtheLearnXPlatinumAwardforBestBespoke/CustomProgram.
Developing the future of adviceTheAMPAdviserAcademy’sFinancialPlanningSkillsgraduates,havetheopportunitytosecureroleswithinAMPAdviceoralignedpractices,wheretheyreceiveon-the-jobtrainingandmentoring.
AllourrecruitedadvisersundergorobustbackgroundchecksinaccordancewiththeAustralianBankers’Associationreferencecheckingprotocol.
AMPisexploringopportunitiesfornewadviserstogainexperiencebyofferinggeneralorscopedadviceinAMP’sphone-basedadviceteam,wheretheycanhonetheirclientskillsbeforebecomingfully-fledgedpractitioners.
In2017,AMPsponsoredFinancialPlanningEducationCouncilresearchgrantswiththeFinancialPlanningAssociationwiththeaimofpublishingresearchontopicsincludingethicalchallengesinfinancialplanning,thesupportneedsofsmalladvicebusinesses,driversandbarriersofwomenenteringthesectoranddemandfornewandexistinggraduates.
WealsorantheseventhAMPUniversityChallenge–anationalfinancialplanningcompetitionfortertiarystudentsthataimstoidentifynewtalentandpromotehighstandardsamongthenextgenerationofadvisers.AteamfromGriffithUniversitywonthe2017competition,whichattractedarecord706students–37%ofwhomwerefemale.AMP’sUniversityChallengewasintegratedintothe2017curriculumforstudentsstudyingfinancialplanningmajorsatDeakinUniversity,TAFENSW,LaTrobeUniversityandWesternSydneyUniversity.
2018 goals– Evolve the AMP Adviser Academy to offer more pathways
and coaching – Continue to develop and embed Perform@AMP across
the business
Our people
AMP 2017 towards sustainability report23
Itposesarangeofrisks,particularlyfortheinvestmentswemanageonbehalfofourcustomers,andalsothewidercommunity.
Wetakemeasurestoreduceourimpactontheenvironmentthroughresponsibleinvestingandcarbon-reductioninitiativesacrossthebusiness.Wehavebeenactivelypursuingthesemeasuressince2002,whenwereleasedourfirstEnvironmentalPolicyandAMPCapital–AMP’sinvestmentmanager–signeduptotheCarbonDisclosureProject(CDP).
AMPbecamecarbon-neutralforourownoperationsin2013andhasremainedsoeversince.In2017,wecontinuedtobuildonthisprogress,settingnewoperationalobjectivesandtargets.WecommittedtofurtherincreasingourexistinganalysisandassessmentofclimatechangerisksandopportunitiesandincreasedourownCDPratingtoanA-minusleadershiplevel.
Taskforce on Climate-related Financial DisclosuresInmid-2017,thefinalreportoftheG20FinancialStabilityBoard–Taskforce on Climate-related Financial Disclosures (TCFD)providedhelpfulrecommendationsforcompaniesonbothhowtheycanconsiderclimatechangerisksandhowtodisclosetheseriskswithintheirexistingfinancialdisclosures.AMPisreviewingtheTCFDrecommendationswithinthecontextofourexistingapproachtoclimateriskanddisclosure,withaviewtoaligningtheseovertime.
AMP’scurrentdisclosuresaligntosomeelementsoftheTCFDframework,particularlyinourinvestmentmanagementbusinesswhereclimaterisksareamaterialconsiderationininvestmentdecisions.Wealsorecognisewehavefurtherworktodoinotherbusinessareas.AMP’sfull2017 CDP submissioncontainsdisclosuresofourrisksandopportunities.
Climate governanceWithinAMP,overallresponsibilityformanagingclimatechangeimpactsrestswiththeAMPGroupLeadershipTeam(GLT)–theCEOandhisdirectreports.TheAMPLimitedBoardhasoversightresponsibilitiestomanageriskandreceivesbriefingsonclimatechangeasrequiredviatheBoardRiskCommittee(BRC).TheGLTreceivesupdatesthroughtheGroupRiskandComplianceCommittee(GRCC)andAMP’sEnvironmentLeadershipTeam(ELT),whichisresponsibleforaddressingAMP’soperationalenvironmentalimpacts,objectivesandtargets.TheEnvironmentalLegislativeCompliance(ELC)CommitteealsomonitorscompliancewithrelevantlawsincludingAMP’sannualreportingundertheNationalGreenhouseandEnergyReporting(NGER)Act.
AMPCapital’sInvestmentCommitteehasoverallresponsibilityforinvestment-relatedrisksformanagedportfolios,includingforAMPSuperannuationcustomers.Thiscommitteedrawsondedicatedin-houseenvironmental,socialandgovernance(ESG)professionalswhohaveundertakenextensiveanalysisonclimatechangeforwelloveradecade.
AMP recognises climate change is a significant economic and environmental challenge impacting our society.
8. Climate change and the environment
Our community
33% reduction in Scope 1 and 2 greenhouse gas emissions (mainly electricity use) from our 2013 base year
A-minus Carbon Disclosure Project ranking achieved, rising from a B in 2016
5% reduction in Scope 1 and 2 (operational) greenhouse gas emissions
AMP 2017 towards sustainability report24
Climate strategy and risk managementAsadiversifiedfinancialservicesbusiness,AMP’sfocusinvolvesunderstandinghowthecomplexitiesofclimatechangeimpactuponourcompanyoperations,corporatereputation,themarketplace(productdemand),howwerespondtoemergingregulatory,policyanddisclosurerequirementsandhowwemanageeconomictransitionandphysicalrisksrelatingtoourclients’investmentsandportfolios.AMPisincreasingouranalysisandassessmentofclimaterisksandopportunitiesacrossourbusiness,includingourinsurance,AMPBank,adviceandsuperannuationdivisions.
TheareaofourbusinesswherewehavemadethemostprogressisAMPCapital.AsAMP’sinvestmentmanagementdivision,ithasafiduciarydutytoconsiderclimateriskswhenmanaginginvestmentsonbehalfofunderlyinginvestors.Thisincludesunderstandinghowclimatechangemaymanifestasrisksandopportunitiestothelistedandunlistedcompanies,fixedincomeinstruments,infrastructureandpropertyassetsinwhichitinvests.
AMPCapitalundertakesextensiveinvestmentresearchandassessmentsofclimatechangeriskstoitsmanagedinvestmentsthroughitsexistingEnvironmental,SocialandGovernance(ESG)frameworks.Ouranalysistypicallyincludesconsiderationofcarbonregulation,directandindirectcosts,geographicexposuretoclimatepolicy,capacityof
businessesandassetstoadaptandmanagerisks,andtransitionalgovernmentalassistanceprograms.Thisenablesassessmentsofcompanyandportfolioexposurestoclimatechange,includingpotentialriskofstrandedassets.
Insights and analysis Overthepast12years,AMPCapital’sESGteamhaspublishednumerousinvestmentinsightscoveringtopicssuchastheimpactofacarbonpriceonAustralia’saluminiumsector,regulatorydesignconsiderationsforanationalemissionstradingschemeandhowtoconsiderclimatechangeriskinequityportfolios.Wealsocommissionedanexternalclimatechangescenarioanalysisonthestrategic-assetallocationdecision-makingprocessforoneofourflagshipdiversifiedfunds.
In2017,webegantomeasureandpubliclydisclosethecarbonfootprintofequityportfoliosandworkhasstartedoncreatingmethodologiesforotherassetclasses.Recognisingwehavemoreworktodo,wecommencedfurtherscenarioanalyses,includingaprojectedcarbonpriceof$100/tonne(CO2-e)oninternallyandexternallymanagedequityportfolios.Wehaveundertakenpreliminary scenario analysis ofvalueatriskfromthephasingoutoffossilfuelsforourmajorequitybenchmarksandhavestartedtoconsidertheeffectsofwhata2-degreesCelsiusscenariomightmeanwithrespecttoreductioninfossilfuelexposure.
Byincreasingourclimateriskanalysis,AMPCapitalaimstopromotetransparencyinequityportfoliosandprovidelow-carbonoptionsforinvestorsandcustomersofAMPsuperannuationaspartofthetransitiontoalowcarboneconomy.AMPCapital’sResponsibleInvestmentLeaders(RIL)rangeoffundsiswellpositionedwithrespecttothermalcoalexposureandhighercostoilexposure.TheRILfundswereoneofthefirstmajorAustraliandiversifiedfundstoadoptafossilfueldivestmentpolicyandaspecificgreenbondmandate.
Thisanalysisalsoinformsouractiveengagementstrategieswithcompaniesandpolicymakersonclimatechangeandthroughoursupportofarangeofinvestorcollaborationsandinitiatives.Thisincludesasco-founderoftheInvestor Group on Climate Change (IGCC),anearlyinvestorsignatorytotheCDP,co-signingGlobal Investor Statements on Climate Change toG7andG20governmentsandjoiningtheClimate Action 100+ investorengagementinitiative,whichaimstoengagewithleadingcorporategreenhousegasemitterstocurbemissionsandstrengthentheclimate-relatedfinancialdisclosures.
ClimatechangeisalsoaddressedthroughESGperformancebenchmarkingofourflagshippropertyandinfrastructurefunds.Thishelpstoinformfundandassetmanagementstrategiesrelatingtocarbonemissionreductions,assetresilience,fosteringinvestmentopportunitiesinlowcarbontechnologiesanddirectinvestment(equityanddebt)inrenewableenergyassets.
Our community
2018 goals– Review the recommendations from the Financial Stability Board’s
Task Force on Climate-related Financial Disclosures (TCFD), within the context of our existing approach to climate risk
– Remain carbon neutral and continue to reduce our operational energy use
– Work towards greater renewable energy adoption through real estate investment portfolios and AMP operations
AMP 2017 towards sustainability report25
Our community
Renewable energy and low-carbon investmentsRenewableenergyisakeyinvestmentthemeforAMPCapital’sinfrastructurestrategyandweareseeingastrongpipelineofopportunitiesintheUS,AustraliaandEurope.Thispipelineismatchedbyever-increasinginterestininfrastructureequityanddebtasanassetclassfromglobalinvestors,particularlypensionplansandinsurancecompanies.
InagrowthdevelopmentforAdven,anadvancedEuropeanenergysolutionsbusinessthatAMPCapitalownsa50%stakein,weacquiredadistrictheatinganddistributedenergysolutionsbusiness,EVLE,whichisbasedinSweden.
In2017,AMPCapital’sInfrastructureDebtteamprovidedfinancingforsecuredconstructionprojectsforFrenchrenewableenergyproviderNeoen,includingwindandsolarphotovoltaicassets,predominatelylocatedinFranceandAustralia.WealsoexpandedourinvestmentwithAlterraPowerCorp.,aCanadianrenewableenergycompanythatmanageseightpowerplantsofhydro,wind,geothermalandsolargenerationcapacityinCanada,theUSandIceland.
Throughourfixed-incomeportfolioswecontinuetoprovideourclientswithinvestmentopportunitiesintherapidlygrowingmarketforgreenbonds.Coveringbankbonds,semi-governmentbonds,supranationalsandgovernmentagencyandcorporatebondstheseinvestmentproceedsarefundingprojectsinrenewableenergy,energyefficiency,low-carbontransport,sustainableforestryandclimateadaptationandresilience.
Metrics and targetsInMarch2017,theAustralianGovernment’sCleanEnergyFinanceCorporation(CEFC)committedtoinvesting$100mintheAMPCapitalWholesaleOfficeFund(AWOF)–aportfolioofhigh-qualitycommercialpropertyassets.Becomingcarbonneutralby2030isjustoneofthelong-termtargetsthatmadeAWOF’ssustainablepropertystrategyanattractiveinvestmentforCEFC.
OthertargetsforAWOFincludeliftingtheportfolio’sNationalAustralianBuiltEnvironmentRatingSystem(NABERS)averageto5.5-starsby2030.Italsoincludesdeliveringapipelineofsustainableflagshipassets,suchastheAustralianTechnologyParkandQuayQuarterTowerinSydney’sCBD.QuayToweristargetinga6-starGreenStarand5.5-starNABERSratingoncecompleted,aswellaspursuingcertificationagainsttheleadingWELLBuildingStandardtoboosttenantwellbeing.
InMelbourne,theAMPCapital-managed700BourkeStreetachieveda6-starGreenPerformancerating–afirstforVictoriaandonlythefourthbuildinginAustraliatoachievethisrating.WealsocarriedoutGreenStarPerformanceassessmentson45assetsacrossouroffice,industrialandshoppingcentreportfolios.
AMP 2017 towards sustainability report26
Our community
AMP’s NABERS Energy Tenancy ratings (2014–17)
Office 2017 2016 2015 2014
33AlfredStreet,Sydney 5 4 4 3.5
JessieStreetCentre,Parramatta1 4.5 4.5 4 5.5
50BridgeStreet,Sydney 5.5 5.5 5.5 5.5
750CollinsStreet,Melbourne2 4 4.5 3.5 4
192AnnStreet,Brisbane 5 5 5 –
104MelbourneStreet,Brisbane 4 4 4 –
240QueenStreet,Brisbane3 5 5.5 5.5 –
2124GoldCoastHighway,Miami 5 – – –
70HindmarshSquare,Adelaide 4 – – –
16AltonaStreet,Perth 2 – – –
Area-weighted average 4.71 4.45 4.11 4.19
1 OurJessieStreetofficeNABERSratingfellfrom2014duetoachangeinenergycoverageofsupplementaryequipment.2 OurCollinsStreetofficeratingdecreasedduetoachangeinoccupiedspace.3 OurQueenStreetofficeratingdecreasedduetoachangeinoccupiedspace.
Reducing our own environmental impacts AMPiscommittedtoreducingenvironmentalimpactsthroughourownbusinessoperations,engagingemployeesininitiativestargetingresourceefficiencyandreductionsinourenvironmentalfootprint.
In2017wereviewedourstrategyandsetnewenvironmentalobjectivestobuildonourprogress.Theseinclude:– 40%reductioninoperationalScope1
and2emissions(mainlyofficeelectricityusage)2017-21,fromour2013baseyear
– ExpandingreportingofourScope3emissionsbeyondairtraveltoincludeadditionalsources(egwaste,paper,outsourcedITandbasebuildingemissions)
– FurtherimprovingourdisclosuresofclimateriskandcarbonexposureofAMPCapitalinvestmentportfolios
– IncreasingrenewableenergyadoptionthroughourrealestateinvestmentportfoliosandAMPoperations
Ouroperationalcarbon-reductionstrategyisunderpinnedbythecontinuedrolloutofactivity-basedworkingarrangementstoAMPofficesinAdelaide,Brisbaneand
Sydney.ThisprojecthasraisedtheNABERSEnergyTenancyratingsofourbuildings,withtheaverageweightedrateforAMP’s10largestAustralianofficesin2017being4.71.OurheadquartersinCircularQuayachieveda5-starNABERSEnergyTenancyratingin2017,risingfroma3.5-starratingpriortoadoptingtheactivity-basedworkingmodel.AMPwasalsoawardedaSouthAustralianCitySwitchSignatoryoftheYearAwardforsustainabilityexcellenceatournewAdelaideoffice.
TheseactivitiesarecontinuingtodriveAMP’semissionreductions,resultingina5%year-on-yeardecreaseinScope1and2emissionscomparedto2016.Thisequatestoa33%reductionfromour2013baseyear.
In2017,weexpandedourScope3reportingboundarytoincludeseveraladditionalrelevantemissionsourcesduetoimprovementsindatacollectionandcalculationmethodologies.AMP’sScope3inventorynowincludesairtravel,transmissionanddistributionlosses,basebuildingemissionsarisingfromourtenancies,offshorebusinessprocessingandoutsourcedIT(includingexternally
manageddatacentres).ThisisconsistentwithourcommitmenttoexpandingScope3reportingofAMP’soperationalfootprint.
FurtherdetailsareprovidedinAMP’sEnvironmentalPerformanceDatabelow,reportedinlinewithAMP’sGreenhouseGasReportingCriteria.Everyyearsince2013,AMP’sScope1,2and3emissionsarealsoassuredbyErnst&Young(EY).
Carbon offsets Eachyear,AMPreducesemissionsthroughenergyefficiencyand,tomeetourtargets,offsetstheremainingemissionsbypurchasingcarboncreditsfromverifiedprojects.Toachievecarbonneutralityin2017,AMPpurchasedandretired26,831carbonoffsetsfromprojectsthatdeliverenvironmentalandcommunitybenefits.Theseincludewastewatertreatmentplants,windfarms,run-of-riverhydropowerplantsandwaterprojectthatprovideeconomicandsocialbenefits.
InformationonAMP’senvironmentalperformanceisavailableatamp.com.au/environment
AMP 2017 towards sustainability report27
AMP’s environmental performance data
Emissions (tCO2-e) 2017 2016 2015 2014 20134
AMP operations5
Scope 1 and 2 emissions 9,317 9,799 10,150 11,832 13,986
Datacentre6 0 2,059 5,703 6,527 6,844
Smallsites(wheredataavailable)7 385 – – – –
Total Scope 1 and 2 emissions 9,702 11,858 15,853 18,359 20,830
Year-on-yearreduction8 5%
Reductionfrombaseyear9 33%
Scope 3 emissions
Airtravel 9,301 9,350 9,341 9,282 11,592
Transmissionanddistributionlosses 1,347 – – – –
Waste 203 – – – –
Basebuildingemissions 4,804 – – – –
Offshorebusinessprocessing 1,025 – – – –
OutsourcedIT 449 – – – –
Total Scope 3 emissions 17,129 9,350 9,341 9,282 11,592
GrossScope1,2and3emissions(airtravelonly) 19,003 21,208 25,194 27,641 32,422
ExpandedScope3sourcesreportingin2017 7,828 – – – –
Gross Scope 1, 2 and 3 emissions (including additional Scope 3 now reported from 2017)
26,831 – – – –
Carbon offsets retired 26,831 21,208 25,194 27,641 32,422
Target Carbonneutral Carbonneutral Carbonneutral Carbonneutral Carbonneutral
Paper usage (kg) 65,847 87,552 107,146 138,140 165,953
Waste (kg) 200,864 – – – –
Managed Investments (real estate) FY2017 FY2016 FY2015 FY2014 FY2013
AMP Limited10
Scope1 8,455 10,881 9,021 8,841 12,120
Scope2 98,203 106,203 112,962 133,992 154,462
Total Scope 1 and 2 106,658 117,084 121,983 142,833 166,582
AMP Limited CDP ratings 2017 2016 2015 2014 2013
Carbon Disclosure Project A- B B(95) B(89) B(77)
4 2013isAMP’sbaseyear.5 AMPoperationsincludeallAMPinternationalofficelocations,pertheAMPGHGreportingCriteria.ErnstandYoung(EY)hasprovidedlimited
assuranceoverthisdatafrom2013-2017.6 In2016,AMPclosedandsolditsdatacentre.Inordertomakemeaningfulcomparisonsovertime,wehaveadjustedtheScope1and2inventory.7 Duetoimprovementsindatacollectionandmetering,AMPisabletoreportonadditionalsmallerofficeswheredatahaspreviouslynotbeenavailable.8 Year-on-yearreductioncomparingScope1and2emissionsexcludingdatacentreandsmallsites.Thisallowsformeaningfulcomparisonsovertime.9 ReductionfrombaseyearcomparingScope1and2emissionsexcludingdatacentreandsmallsites.Thisallowsformeaningfulcomparisons
overtime.10 AMPalsoreportsannuallytotheAustralianGovernmentundertheNationalGreenhouseandEnergyReportingAct2007,whichlargelyconsists
ofrealestateinvestmentsmanagedbyAMPCapitalonbehalfofunderlyinginvestors.NotethesefiguresalsoincludeAMPtenantedofficesinAustralia,whicharealsoincludedinAMP’soperationalfootprint.Thisdataisforyearending30June2017asreportedtotheCleanEnergyRegulator,withlimitedassurancealsoprovidedbyEY.
Our community
AMP 2017 towards sustainability report28
AMPhasalonghistoryofresponsibleinvesting.Ourin-houseinvestmentmanager,AMPCapital,wasoneofAustralia’sfirstsignatoriestotheUN-backedPrinciplesforResponsibleInvestment(PRI)in2007.
Wehavesincestrengthenedourposition,understandingthatitispossibletomeetourfiduciaryobligationstoinvestorsandourobligationstosocietyasagoodcorporatecitizen.
AssessingESGrisksandopportunitiesisanintegralpartofAMPCapital’sinvestmentprocess.Factorssuchasnaturalresourceuse,environmentalmanagement,climatechange,humanrights,workplacehealthandsafety,executiveremuneration,boardcompositionanddiversityareamongthoseconsideredwhenmakinginvestmentdecisionsonbehalfofourclients,includingAMPSuperannuationmembers.
Investment approach AMPCapital’sESGandResponsible Investment Philosophy outlinesourapproachtoconsideringmaterialESGfactors.ApprovedbyAMPCapital’sInvestmentCommittee,itlinkstootherESG-relatedpolicies,proceduresandproprietarytoolsthatformpartoftheESGframework.Theseincludeguidelinesandpoliciesrelatingtocorporategovernance,proxyvoting,engagementandactiveownership.
AMPCapital’steamofESGspecialistsworkacrossbusinessfunctionsandinvestmentteams,providingresearchandadvicethatisintegratedintoourdecision-makingandactiveownershipstrategies.
AMPCapitalalsoaimstoraisecorporateresponsibilitystandardsbyleveragingitsexperienceandreputation.Weactivelyengagetheboardsandmanagementteamsofinvesteecompaniesandassets,encouragingsoundriskmanagement,appropriatecapitalallocation,fairremunerationandopenandhonestdisclosure.AMPCapitalalsousesitsproxyvotingpowertoencouragecorporatebehaviourthatdeliversbetterresultsforinvestors,shareholdersandthecommunity.
AMPCapitalparticipatesinarangeofinitiatives,includingthePRI,GRESB,theInternationalCorporateGovernanceNetwork(ICGN)andResponsibleInvestmentAssociationAustralasia,asco-foundersoftheInvestorGrouponClimateChange.
In2017,responsibleinvestmentinitiativesincluded:
Ethical investment frameworkUnderthenewAMPCapitaldecision-makingframework,introducedinMarch2017,companiesorsectorsmaybeexcludedfromourportfolioonethicalgrounds.Itwasdecidedthatmanufacturersoftobacco,clustermunitions,landmines,biologicalandchemicalweaponsdonotmeetournewminimumethicalstandards.ThisdecisiontriggeredoneofthelargestdivestmentsoftobaccomanufacturingsecuritiesbyaninvestmentmanagerinAustralia,includingapproximately$440millionofequityandfixedincomeholdingsand$130millionofinvestmentinclustermunitionsandlandminesmanufacturers.
ThenewframeworkcomplementsAMPCapital’sexistingapproachtoaddressingESGinvestmentrisksbyhelpingtoresolvecomplexethicalissuesastheyarise.Italsoreflectsthechangingattitudesofourclients,whoincreasinglydonotwanttobeinvestedinharmfulproducts.
There is a clear link between an organisation’s environmental and social impacts, ethical practices and quality of its corporate governance and its long-term business success.
9. Responsible investing
Our community
$440m of tobacco manufacturing-related equity and fixed income holdings divested by AMP Capital
5 GRESB Green Stars – the highest rating – awarded to six AMP Capital real estate funds
1st place in the GRESB Infrastructure rankings for AMP Capital’s Diversified Infrastructure Trust
AMP 2017 towards sustainability report29
Property and infrastructure funds Withinourrealassetportfolios,AMPCapitalisstrengtheningESGstrategiesforitsflagshippropertyandinfrastructurefundsandtheirunderlyingassets.In2017,threeAMPCapitalinfrastructureequityfundsrankedinthetop10ofGRESB(Global Real Estate Sustainability Benchmark)Infrastructure’sannualrankingsforESGperformance.
In2017,forthesecondyearinarowAMPCapital’sDiversifiedInfrastructureTrusttoppedGRESBInfrastructure’srankings,whichincludedsubmissionsfrom64fundsand160infrastructureassetsworldwide.AMPCapital’sIrishInfrastructureFundandAMPCapital’sGlobalInfrastructureFundwerealsorankedsecondandthirdrespectively,whencomparedtotheirpeergroups.
SixAMPCapitalrealestatefunds,withapproximately$23billionofassetsundermanagement,alsoscoredmorethan80%intheGRESBratingsandwereawardedfiveGreenStars–thehighestrating.
ThetragiceventsoftheGrenfellTowerfireinLondoninJune2017identifiedtheuseofaluminiumcompositepanels(ACPs)inbuildingcladdingmaterial,asacontributingfactorintherapidspreadoffirethroughoutthebuilding.Followingthisdisaster,AMPCapitalinitiatedareviewtoidentifyanypossibleACPmaterialsinitsrealestateportfolio.PropertieswithsuspectedACPareundergoingfurtherreviewbystructuralandfireengineeringconsultantsforclarificationofmanufacturer,constructionmaterialandcondition,includinglaboratorytestingwhererequired.IfACPmaterialisconfirmed,engineerswillconductariskassessmenttoinformthemitigationstrategy.
Community infrastructureAMPCapitalalsomanagestheAMPCapitalCommunityInfrastructureFund(CommIF),whichinvestsinsocialinfrastructureassetsacrosshealthcare,education,justice,defence,communityhousing,transport,waterandrecreationalfacilities.
In2017,AMPCapitalincreaseditsstakeintheVictorianDesalinationProject(VDP),thelargestdesalinationplantintheSouthernHemisphere,onbehalfofitsCommIFinvestors.Throughouttheyear,AMPCapitalalsoworkedtowardsacquiringa21%stakeintheVictorianComprehensiveCancerCentre(VCCC)fromPartnersGrouponbehalfofinvestorsinitsCommIF.Thedealreachedfinancialcloseon3January2018.
LocatedinMelbourne’sParkvillebiomedicalprecinct,theVCCCoperatesasapublicprivatepartnershipwiththeVictorianstategovernmentandhousesthePeterMacCallumCancerCentre,with160inpatientbeds,110daybedsandeightoperatingtheatres.Itcanhostupto1,200researchersandofferseducationandtrainingfacilities.
MoreinformationonourESGphilosophy,investmentinsights,corporategovernancereports,proxyvotingdisclosuresandthoughtleadershiponresponsibleinvestingisavailableatampcapital.com.au/esg
Our community
2018 goals…– Continue to assess ESG risks to enhance our investment
decision-making and broaden our understanding of their impacts– Actively monitor ESG integration across the business
AMP 2017 towards sustainability report30
However,throughAMPCapital’sRealEstateAssetManagementactivityinAustraliaandNewZealand,weworkwithabroaderrangeofsuppliersthatfacilitateoperationsinourshoppingcentres,officeandindustriallocations.Wealsoworkwithabroaderrangeofsuppliersthroughourtenantedoperations.
AMPiscommittedtotheresponsiblesourcingofgoodsandservices,creatingvalueforourcustomers,employees,andthecommunity.Whenengagingwithoursuppliers,wehaverobustgovernancestructuresinplacethatconsidersustainabilityrisksandopportunitiesinoursupplychain.Thisincludescommittingto:– actingethicallyandwithintegrity
inallourbusinessrelationships– observingInternationalLabour
Organisations’principlesandcommittingtoensuringthereisnomodernslaveryorhumantraffickinginoursupplychains
– providingrespectfulandsafeworkplacesfreefromdiscrimination
– consideringandmonitoringtheenvironmentalimpactofgoodsandservicesusedbyAMP
– consideringsupplierdiversityandcommunityengagement.
In2017,AMPmadestepstoincreaseengagementwithsuppliersonScope3emissionsrelatedtoAMPoperations(seeAMP’sEnvironmentalperformancedataonpage27).
Inaddition,AMPbecameamemberoftheSocialTradersnetworktoimproveengagementwithsocialenterprisesinoursupplychains.Thisresultedinasuccessfuldirectcontracttoasocialenterprise,Jigsaw,employing20peoplewithadisability.AMPCapitalalsoreleaseditsfirstAnti-Slavery and Human Trafficking Statement,tocomplywithitsobligationsundertheUKModernSlaveryAct2015.
FollowingtheapproachtakenintheUK,theAustralianFederalGovernmentisintheprocessofpassingaModernSlaveryAct,whichwillaskcompaniestotrackandmonitortheirsupplychains.AMPwillsupportthisinitiativetobringaboutmoreethicalandsustainablebusinesspracticesinsupplychainmanagement.
TheissueofhumanrightsandsupplychainsalsoremainsakeythemeforAMPCapital’songoingengagementwithinvesteecompanies.Througharangeofinvestorcollaborativeinitiatives,AMPCapitalplaysanactiveroleinsharingknowledgeoninternationalhumanrightsdevelopments,understandingrisksandopportunitiesacrosssectors,integratinghumanrightsconsiderationsintoinvestmentdecisions.
10. Sustainable supply chain management
Our community
AMP’s supply chains primarily consist of regulated outsourced services and relationships with other regulated financial institutions in Australia and overseas.
AMP 2017 towards sustainability report31
Inresponsetothis,AMPsetupanindependentphilanthropicfoundationtoinvestinthecommunity–theAMPFoundation.ThisisthemainvehiclethroughwhichAMPinvestsinthecommunity.
ThephilanthropicarmofAMPhasbeenoperatingfor25yearsandduringthistimehasdonatedmorethan$91milliontothecommunity.Itworkstowardsabettertomorrowforeveryone–especiallythosefacingchallengesaccessingeducationandemploymentopportunities.ItalsosupportsAMPemployeesandAMPfinancialadviserstosharetheirtime,skillsandresourceswiththoseinneed.
How the AMP Foundation is fundedTheAMPFoundationhasacapitalbasethatAMPhascontributedtothroughdonationsofmoneyandsharessince1992.WhenAMPdemutualisedin1998,itdonatedmoneyandsharestotheAMPFoundation.Thecapitalbasenowstandsat$145million,makingitoneofthelargestcorporatefoundationsinAustralia.TheinvestmentincomefromthecapitalbaseisusedtosupportcommunityinitiativesandpayfortheAMPFoundation’srunningcosts.
TheAMPFoundationinvestsupto3%ofitscapitalinsocialbenefitfinancialinstrumentsandsocialenterprisesthatachievebothacommercialinvestmentreturnanddemonstratedsocialoutcomes.ItcurrentlyinvestsintheNewpinSocialBenefitBondandtheBenevolentSocietySocialBenefitBond,whicharebothhelpingtorestorechildrenwhomightbeinout-of-home-care,totheirparents,orstopthementeringthecaresystem.In2017weinvestedinSVA’sDiversifiedImpactFund–adiversifiedportfolioofdebt,equityandsocialimpactbondimpactinvestments.
A strategic approach to philanthropy TheAMPFoundationworksstrategicallytobringaboutpositivechangeinthecommunityby:– investingintheinfrastructureof
non-profitssotheyareequippedtooperatemoreeffectively
– formingmulti-yearpartnershipswithnon-profits,withsomepartnershipslastingmorethan15years
– facilitatingmentoringandskilledvolunteeringsupport
– buildingknowledgethroughresearch,leadershipforumsandworkingwithexpertstostrengthenthenon-profitsector
– focusingonsystemicissuesandconcentratingfundsoncomprehensiveprograms
– socialimpactinvesting.
Our community
11. Community investment Helping solve societal issues and actively contributing to the community are part of what is expected of a large corporate organisation.
180 non-profits were supported by the AMP Foundation and AMP employees through partnership funding, donations, fundraising and volunteering
$1m raised through the AMP Big Zipper for 15 community partners
$5.7m in funds were distributed to the community by the AMP Foundation
AMP 2017 towards sustainability report32
Partner Activity Our 2017 funding
BrotherhoodofStLaurence
RunsSteppingStones,amicro-businesssupportandmentoringprogramformigrantandrefugeewomeninMelbourne.
$100,000
ClontarfFoundation UsesfootballtoengageAboriginalstudentswitheducationandemployment.Toplayfootball,theboysmustattendschoolregularlyandbehavewell.
$340,000
CREATEFoundation Advocatesforchildrenincareandworkswithgovernmentstoimprovetheircareexperience.Italsoprovideschildrenincarewithinformationontheirrights,issuesandlifeskills.
$150,000
FirstAustraliansCapital(FAC)
Thisnon-profitestablishedbyandforIndigenousAustralianspeopleenablesAboriginalandTorresStraitIslanderstogrowbusinesses.
$250,000
Ganbina HelpsyoungAboriginalpeoplethroughschool-to-worktransitionprogramstoensuretheyreceivetheeducationandtrainingneededtoreachtheirpotential.
$50,000
GlobalSisters Supportsdisadvantagedwomentocreateandrunsuccessfulbusinessesbyprovidingafullsolutiontobusinessstart-upanddevelopment.
$250,000
SettlementServicesInternational
SupportsthesettlementofrefugeesinAustralia,includinghelpingthemsecuresustainableemployment.
$500,000
STREAT RunshospitalitysocialenterprisesinMelbournethatprovidetraining,workexperienceandjobplacementsforat-riskyouth,aswellasmentalhealth,drugandalcoholsupport.
$200,000
SocialVenturesAustralia
Investsinsocialchangebyincreasingtheimpactandsustainabilityofthesocialsector.Itfundshigh-potentialorganisationsthatfostersolutionstocommunityissues.
$250,000
TheConversation Anonlinenewsnetworkthatsourcesarticlesfromacademics,deliveringtheminplainEnglish.Ourfundinghelpsshinealightonemploymentobstaclesandsolutions.
$125,000
TheFundingNetwork Organiseseffectivelivecrowdfundingeventsforsmall,innovativenon-profitsandhelpstheseorganisationsbuildtheircapacity.
$150,000
TheGraham(Polly)FarmerFoundation
ProvidesAboriginalstudentswithanafter-schoolstudyfacilityandindustrysupport,aswellastutorialandvocationaleducationalassistance.
$100,000
TheSalvationArmy OperatestheAMP614YouthBusinMelbourne.Itprovidesemergencyaidandsupportforhomelessandmarginalisedyouth,andconnectsthemtoservices.
$50,000
TheStrokeAssociationofVictoria
Runsaprogramthatidentifiesstrokepatientswhoarebestplacedtomakeagoodrecoveryandhelpsthemkeeptheirjobortransitiontoamoresuitableone.
$200,000
VanguardLaundryServices
ThisToowoombasocialenterprisecreatesjobsandcareerpathwaysforlong-termunemployedpeoplewithalivedexperienceofmentalillness.
$345,000
WesleyMission WorkswithyoungpeoplebeforetheyleavefostercaretosetcareergoalsandtransitionintoemploymentthroughitsTakeChargeofYourLifeprogram.
$220,000
Our community
Our community partnersOurcommunitypartnersrunin-depthprogramsthathelpaddresssocio-economicdisadvantagebyimprovingeducationalandemploymentoutcomesformarginalisedpeople.Wealsosupportorganisationsthatbuildthecapacityofthenon-profitsector.
Ourfundingcaninclude‘growthcapital’tohelpanorganisationdevelop,‘coreinfrastructure’tofundanoperationalrole,programfundingoracombinationofallthree.Wherepossible,theAMPFoundationfacilitatesmentoring,probono,volunteeringandfundraisingforitscommunitypartners.In2017,ourcommunitypartnerswere:
AMP 2017 towards sustainability report33
Our community
AMP’s Tomorrow Fund TheAMPFoundationrunsAMP’sTomorrowFund–a$1millionannualgrantsprogramforindividualsfromallages,interestsandabilitieswhoseideasandworkbenefitsAustralia.Thegrantsavailablerangefrom$5,000upto$100,000.
In2017,ourAMPTomorrowFundprogramawardedgrantsto45Australiansreflectingthediversitythatexistsinourcommunity.Thewinnersareworkingtowardsgoalsasvariedasprovidingarefugeforwomenescapingdomesticviolence,competingattheCommonwealthGames,designinganinteractiveonlinesystemtotraindisabilityandagedcaresupportworkers,recordingalbumsandconductingvitalmedicalresearch.Moreinformationonour2017AMPTomorrowMakersisavailableatampstomorrowfund.com.au
AMP Foundation’s Community ProgramThroughitsCommunityProgram,theAMPFoundationencouragesandsupportsemployeestodonatetheirtimeandresourcestoarangeofcharitiesthatmakeapositiveimpactonthecommunity.Thisprogramismulti-facetedandcontainsthefollowingcomponents:– Volunteering:AMPemployeescan
volunteerasindividualsorteamswithanumberofnon-profits,includingthroughskilledvolunteering.TheAMPFoundationprovidesfundingtonon-profitstocoveranyassociatedcosts.
– Mentoring:OurseniorleaderscanmentortheCEOsofnon-profits.Employeesarealsoabletomentorschoolstudentsandhelpthemwithcareerchoices.
– Fundraising and payroll giving:TheAMPFoundationmatchesemployeefundraising,anddonationsthroughpayrollgivingtomorethan100charities.In2017theAMPFoundationorganisedanAustralian-firstcharityziplineeventbetweenthetwoAMPbuildingsatSydney’sCircularQuay,raisingmorethan$1millionfor15communitypartners.
– Unsung Heroes:CharitieswhereAMPemployeesvolunteerformorethan80hoursayearorserveontheboard,receiveadonationtosupporttheirwork.
AMP Cancer Council Pro Bono ProgramTheAMPCancerCouncilProBonoProgramenablesAMPfinancialadviserstosharetheirexpertisewithpeopleaffectedbycanceratnocost.TheAMPFoundationfundstherunningofthisprogram,whichenablespeopleaffectedbycancertoreceivefreeguidanceonissuessuchasaccessingCentrelinkbenefits,applyingforearlyaccesstosuperannuationandinsurancebenefits,budgetingandplanningforthefinancialfutureoftheirfamily.Theprogramoperatesacrossthenationand,in2017,itsupported667familieswithfreeadvice.
Other AMP giving AMP Capital Shopping CentresAMPCapitalShoppingCentresinAustraliaandNewZealandcoordinatearangeofactivitiestosupportcharitiesofimportancetothelocalcommunity.In2017,theyformedpartnershipswithlocalnon-profitorganisations,providingfundraising,volunteeringandpromotionalsupport.CharitiesincludedOmanuBeachSurfLifesaving,BellyfulEastAuckland,AnimalWelfareLeague,KidsFund,TheSalvationArmy,EdmundRiceCamps,FiFoFamiliesandOzHarvest.
International givingInNewZealand,AMPprovidedtotalfundingof$200,000to24NewZealanderstopursuetheirdreamsthroughtheAMPScholarshipsprogram.AMPalsoworkedwithYouthtownandTheCommissionforFinancialCapabilitytohelpyoungNewZealandersunderstandfinancialbasicsthroughaseriesofworkshopsandinitiatives.ApartnershipwasalsoannouncedwithKeyToLifetohelpreducethehighratesofsuicideinNewZealand.
AMPCapitalsupportedthecharitableeffortsofemployeesworkinginsomeofitsinternationaloffices.ItprovidedfundingtoTADA,achildren’scharityfortheperformingarts(NewYorkoffice),CancerResearchUKthroughacharityfunrun(London)andCommunityChest(HongKong).
Moreinformationhowweinvestinthecommunityisavailableatamp.com.au/ampfoundation
Community investment breakdown
AMPFoundationdirectgiving $5,719,982
OtherAMPdirectgiving $252,163
Employeegivingandfundraising1 $1,184,723
Employeevolunteeringcontribution $1,908,062
ValueofserviceprovidedbyAMPfinancialadvisers2throughtheAMPCancerCouncilProBonoProgram
$667,000
Inkindsupport3 $655,262
1 Includesemployeefundraisingandpayrollgiving.2 Basedon$1,000perprobonocase.3 Includesdonateduseofmeetingrooms,freeordiscountedrent,AMPCapital
shoppingcentrespacedonatedtocommunitygroups.
2018 goals– Continue to build the scope
and diversity of the AMP Tomorrow Fund
– Support our community partners to build their capacity
– Facilitate skilled volunteering to support our community partners
AMP 2017 towards sustainability report34
Contact usphone +612 9257 5000web amp.com.au
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@AMP_AU or @ampfoundation
linkedin.com/company/amp
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