UN PRINCIPLES FOR SUSTAINABLE INSURANCE SUNCORP GROUP FY20 DISCLOSURE - UNEP FI
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UN PRINCIPLES FOR SUSTAINABLE INSURANCE
SUNCORP GROUP FY20 DISCLOSURE
Introduction
2019-20 has been an extraordinary year for communities in Australia and New Zealand, with the impacts of the
COVID-19 pandemic and summer of natural hazard events continuing to shape our society and economies. We
know that a commitment to long-term, sustainable growth for our customers and shareholders requires
consideration and management of the environmental, social and governance (ESG) risks and opportunities faced
by our business and communities now and into the future – considerations that are inherently linked to
Suncorp’s purpose to build futures and protect what matters.
ESG topics addressed by the Board and the Suncorp business this year included remuneration practices, conduct
and culture, responsible investment, underwriting and supply chain, climate change and natural hazard
resilience, financial inclusion and support for customers experiencing vulnerability, and inclusion and diversity.
In response to the COVID-19 pandemic, Suncorp closely oversaw measures to protect the health, safety and
wellbeing of our people and customers and ensured ongoing investment in the community.
This document summarises how Suncorp is integrating ESG considerations throughout our insurance business in
alignment with the UN PSI, referencing relevant pages from Suncorp’s FY20 Responsible Business Report.
NOVEMBER 2020 UN PRINCIPLES FOR SUSTAINABLE INSURANCE – SUNCORP GROUP FY20 DISCLOSURE PAGE I OF IV
About Suncorp Group
Suncorp is an ASX-listed company and financial services
provider, comprising three core businesses – Insurance
(Australia), Banking & Wealth and Suncorp New Zealand.
Insurance (Australia) delivers home and contents, motor,
caravan, compulsory third party, workers’ compensation,
commercial and health insurance under our portfolio of
Principle 1: We will embed in our decision-making environmental,
brands. Suncorp’s banking business is focused on lending, social and governance issues relevant to our insurance
deposit gathering, and transaction account services to business.
personal, small and medium size enterprise (SME),
commercial and agribusiness customers. The wealth portfolio Principle 2: We will work together with our clients and business
develops, administers and distributes superannuation partners to raise awareness of environmental, social
and governance issues, manage risk and develop
products. Suncorp’s New Zealand business distributes
solutions.
consumer, commercial and life insurance products through
intermediaries and corporate partners as well as insurance Principle 3: We will work together with governments, regulators
and personal loans directly to customers via partnerships with and other key stakeholders to promote widespread
the New Zealand Automobile Association. action across society on environmental, social and
governance issues.
For more information about our approach to corporate Principle 4: We will demonstrate accountability and transparency
responsibility and ESG integration, visit: in regularly disclosing publicly our progress in
https://www.suncorpgroup.com.au/corporate-responsibility implementing the principles.
NOVEMBER 2020 UN PRINCIPLES FOR SUSTAINABLE INSURANCE – SUNCORP GROUP FY20 DISCLOSURE PAGE II OF IV
Suncorp’s progress against UN PSI Principles
Reference: Suncorp Responsible Business Report 2019-20
PAGE RESPONSIBLE BUSINESS UN PSI COMMENTARY
REPORT SECTION PRINCIPLE
ii Contents 4 Lists Suncorp’s disclosures, including Corporate Governance, Task Force on Climate-related Financial Disclosures (TCFD), Tax Transparency, Proxy
Voting Summary, Financial Inclusion Action Plan, Climate Change Action Plan, Reconciliation Action Plan, and Environmental Performance Plan.
1 Suncorp at a glance N/A Company profile page.
2-3 Highlights; 2020 Performance 1, 4 Includes key ESG metrics, targets and performance demonstrating how Suncorp is embedding and tracking ESG considerations in decision
against Targets making.
4 Message from our Chairman 1, 3, 4 Chairman’s note features Suncorp’s commitment to continue to improve business practices and work with stakeholders to build resilience.
5-10 Our Stakeholders: 1, 2, 3, 4 Articulates how Suncorp collaborates with a broad range of stakeholders to identify and manage business risks and opportunities, to advocate
Engagement and Materiality for positive outcomes and to ultimately create long-term value.
Outlines the stakeholder groups Suncorp engaged with on ESG topics in 2019-20, our materiality assessment approach, and materiality
assessment results. Tables on pages 9-10 define Suncorp’s ten most material topics and summarises Suncorp’s approach to each, including
where the impact occurs – customers, investees, suppliers, employees, and community.
11-14 Our Responsibility: Corporate 1, 3, 4 Features Suncorp’s Corporate Responsibility Principles and maps each principle to eight UN Sustainable Development Goals. A g overnance
Responsibility Principles, section outlines how Suncorp’s Board provides governance structure for effective and responsible decision making within the organisation. The
Governance, Commitments commitments and frameworks section outlines External ESG Ratings and Benchmarks that Suncorp participates in, as well as ESG -related
and Frameworks Memberships and Organisations Suncorp is a signatory to (including UN PSI).
15-20 CR Principle: Trust and 1, 2, 3, 4 This section details how Suncorp builds trust and is open and transparent in engagement with stakeholders. It includes detail ed information on
Transparency how Suncorp is strengthening conduct and culture, remunerating fairly and transparently, engaging with government and industry to advocate
for positive customer and community outcomes, and managing and protecting consumer data.
It lists foundation policies and documents (Corporate Governance Statement, Code of Conduct, Whistleblower Policy, Political Engagement
Position Statement, and Suncorp Group Privacy Policy). Suncorp’s performance including metrics and targets is detailed on pag e 20.
NOVEMBER 2020 UN PRINCIPLES FOR SUSTAINABLE INSURANCE – SUNCORP GROUP FY20 DISCLOSURE PAGE III OF IV
PAGE RESPONSIBLE BUSINESS UN PSI COMMENTARY
REPORT SECTION PRINCIPLE
21-25 CR Principle: Responsible 1, 2, 3, 4 This section details how Suncorp is being responsive and is providing suitable, fair and affordable products and services that meet the needs of
Financial Services our customers and helps to build their financial resilience. It includes detailed information on how Suncorp is providing customers with access to
affordable financial services that meet their needs, including how we’re improving our business practices, and supporting cus tomers through
the COVID-19 pandemic and other vulnerabilities.
Lists foundation policies and documents (Suncorp’s Office of the Consumer Advocate, Responsible Banking and Insurance Policy, Financial
Inclusion Action Plan, and Natural Disaster Customer Response Plan), and Suncorp’s performance, metrics and targets on page 25.
26-29 CR Principle: Sustainable 1, 2, 3, 4 This section details how Suncorp manages its impacts to ensure the sustainable growth of both Suncorp’s business and the communities in
Growth which it operates. It includes detailed information on Suncorp’s progress in responding to climate change, including climate change scenario
analysis and disclosures, reducing operational environmental impacts, and how Suncorp is working with stakeholders to build natural hazard
resilience in communities. Suncorp’s responsible underwriting, investment and supply chain initiatives are detailed, including modern slavery,
impact investing and fossil fuel phase-out commitments.
It lists foundation policies and documents (Climate Change Action Plan, Responsible Investment Policy, Responsible Banking and Insurance
Policy, Sensitive Sector Guidelines, and Supplier Code of Practice). Suncorp’s performance including metrics and targets is detailed on page 29.
30-34 CR Principle: Resilient People 1, 2, 3, 4 This section details how Suncorp is working to build the financial, social and natural hazard resilience of employees and communities, foster an
and Communities inclusive culture and diverse workforce, and support employees in the causes they care about and actively promote their invol vement in the
community. It includes detailed information on how Suncorp is investing in the community and measuring social impact, respecting human
rights, fostering flexibility, inclusion and diversity, and building a purpose-driven culture.
It lists foundation policies and documents (Safety & Wellbeing Policy, Equal Employment Opportunity and Diversity Policy, and Community
Investment Strategy). Suncorp’s performance including metrics and targets is detailed on page 34.
35-41 Performance: Detailed 1, 4 This section provides detailed non-financial metrics and targets. It includes metrics and progress under the following sections: Customer
Metrics, Targets satisfaction and advocacy; Customer complaints and dispute resolution; Financial inclusion and resilience; Accessibility; Employee safety and
wellbeing; Employee diversity and inclusion; Employee learning and development; Community investment and volunteering; Operational
environmental sustainability and greenhouse gas emissions; Responsible supply chain; Responsible investment.
NOVEMBER 2020 UN PRINCIPLES FOR SUSTAINABLE INSURANCE – SUNCORP GROUP FY20 DISCLOSURE PAGE IV OF IV
Responsible Business
Report 2019–20
Building futures and protecting what matters
Suncorp Group Limited
ABN 66 145 290 124
OUR BUSINESS
Contents About this Report
The 2019–20 Suncorp Responsible Business Report (Report)
details our approach, progress and future commitments to building
a resilient and sustainable organisation that values customer,
OUR BUSINESS
shareholder and stakeholder outcomes.
Suncorp at a glance 01
We publish this Report on 21 August 2020 as part of our Annual
Highlights 02 Report suite of documents. It covers the period 1 July 2019 to
30 June 2020, and where appropriate, references events that have
2020 performance against targets 03 occurred since the end of the financial reporting period, but before
Corporate Governance
OUR STAKEHOLDERS
Statement 2019-20
Building futures and protecting what matters
the publication of this Report.
Suncorp Group Limited
Message from our Chairman 04
ABN 66 145 290 124
Suncorp Group Limited
ABN 66 145 290 124
Annual Report Corporate Suncorp Climate-
This year we have built upon our comprehensive assessment of Governance Related Disclosures
2019–20
OUR STAKEHOLDERS material environmental, social and governance topics conducted Statement 2019–20 (TCFD) 2019–20
Stakeholder engagement 06 in 2019 to reflect topics that have emerged and increased in priority
for Suncorp to address during the Reporting period.
Materiality 07
Our approach to non-financial disclosures continues to evolve and
for the first time we have reported our performance against targets
OUR RESPONSIBILITY
published in our 2018–19 Responsible Business Report.
Corporate Responsibility Principles 12
Significant organisational changes since last year’s report include Suncorp Proxy
Voting Summary 2019–20
Corporate responsibility governance 13 the divestment of Suncorp’s Capital S.M.A.R.T and ACM Parts
Building futures and protecting what matters
Suncorp Group Limited
ABN 66 145 290 124
Suncorp Tax Transparency Report 2018-19 PAGE 1
businesses. Suncorp also welcomed a new Chief Executive
OUR RESPONSIBILITY
Commitments and frameworks 14 Suncorp Tax Proxy Voting
Officer for the Group. On 1 July 2020, Suncorp announced a new Transparency Report Summary 2019–20
2018–19
Trust and transparency 15 operating model and leadership structure. Details can be found at
suncorpgroup.com.au/news
Responsible financial services 21
Sustainable growth 26
Global Reporting Initiative
Resilient people and communities 30
The material in this Report has been developed in accordance with
the Global Reporting Initiative (GRI) Standards: Core option. For a
OUR PERFORMANCE Financial Inclusion Action Climate Change Action
full list of disclosures referenced in this Report, please refer to the Plan 2018–20 Plan 2018–20
Five-year performance summary 36 GRI Content Index available at suncorpgroup.com.au/corporate-
Contact information 42 responsibility/reports
OUR PERFORMANCE
Our other Reports
Find the 2019–20 Annual Report suite of documents online at
suncorpgroup.com.au/investors/reports
Find Suncorp’s Tax Transparency Report, Reconciliation Action Plan,
Financial Inclusion Action Plan, Climate Change Action Plan, and Reflect Reconciliation Environmental
Environmental Performance Plan online at suncorpgroup.com.au/ Action Plan 2018–20 Performance Plan 2020–22
corporate-responsibility/reports
COVER IMAGE: Suncorp assessors at Batemans Bay,
New South Wales, following the bushfires in January 2020.
Suncorp 2019–20 Responsible Business Report
OUR BUSINESS
Suncorp
at a glance
Suncorp Group Limited offers insurance, banking and
wealth products and services through some of Australia's
How Suncorp contributes
and New Zealand’s most recognised financial brands.
to the economy
Our Purpose: building futures $13.8bn1
and protecting what matters Revenue 2019–20
Claims paid to
GROUP SNAPSHOT $8.7bn2 customers
Suncorp Group’s Employee salaries,
$96 billion
heritage dates
back to 1902
in group assets $1.8bn superannuation
and other benefits
Suppliers and
3.8 million active More than $2.0bn3 other fees paid
digital users 13,500 employees
Dividends paid
$0.9bn during 2019–20
$0.3bn Income tax paid
Reinvested to
$0.1bn4 fund growth
1. Net of interest expense 2. Insurance claims paid to
customers 3. All operating expenses that are not salaries
or other employee benefits 4. Change in retained profits
not distributed as dividends
Photographed February 2019
01 Suncorp 2019–20 Responsible Business Report
OUR BUSINESS
Highlights
Total dividends to Excess Common
ordinary shareholders Net profit after tax Equity Tier 1 capital
Our financial
performance 36 cents
per share
$
913m $
823m
Claims paid High performer Investment in
to customers1 retention local communities
Our customers,
people and
society
$
8.7bn 93 % $
10.3m
Reduction in
greenhouse gas Acceptance of
Invoices paid emissions Supplier Code
within 30 days2 year-on-year3 of Practice4
Our value chain
and environment 98
%
7.2
%
100 %
1. Insurance claims paid to customers 2. From receipt of a valid invoice. Excludes New Zealand and suppliers with payment terms beyond 30 days. 3. Based on Scope 1 and Scope 2 emissions 4. Material/strategic suppliers with spend >$500K in the reporting period.
Excludes New Zealand. Excludes Suncorp Insurance Ventures.
02 Suncorp 2019–20 Responsible Business Report
OUR BUSINESS
2020 performance against targets
2019–20 PROGRESS
SUNCORP'S CORPORATE RESPONSIBILITY PRINCIPLES METRIC 2019–20 TARGET1 PERFORMANCE TO TARGET
TRUST AND TRANSPARENCY
We are committed to building trust and doing Code of Conduct training completion rate 98% 99%
the right thing. We are open and transparent in
our dealings with our stakeholders.
RESPONSIBLE FINANCIAL SERVICES Level 2 complaints resolved within
Increase proportion year-on-year 71%
30 days (Australia)2
We put our customers at the heart of everything
we do and help them make good choices. We
provide customers with access to affordable Improve from 2018–19
Consumer Net Promoter Score (Australia) +5.2
financial services that meet their needs. (Score of +5.0)
Scope 1 and Scope 2 greenhouse gas
51% absolute reduction by 20303 7.2%
SUSTAINABLE GROWTH emissions
We seek to innovate and optimise economic, Invoices paid within 30 days4 95% 98%
social and environmental outcomes throughout
our business and value chain. Funds invested in social and low-carbon
5% of total shareholders’ funds 6.7%
impact investments5
At or below Finance Industry
Lost-time injury frequency rate 1.2
Group Average6
RESILIENT PEOPLE AND COMMUNITIES
We respect human rights and invest in the Women in leadership 50% 51%
wellbeing and resilience of our people and Women in senior leadership 45% 44%
communities. We are there for our people and
our communities in times of need. Women on the Board 40% 40%
Community investment 0.7% pre-tax profit by 2022 0.8%
Performance met or exceeded target Performance below target
1. As per targets published in the 2018–19 Responsible Business Report 2. Complaints resolved within 30 days from first date received, managed by Internal Customer Relations team. Exceeds 45-day ASIC requirement 3. From 2017-18 baseline for Suncorp corporate
operations in Australia and New Zealand 4. From receipt of a valid invoice. Excludes New Zealand and suppliers with terms beyond 30 days and Suncorp Insurance Ventures 5. Based on Global Investor Coalition definition 6. Based on combined average of industry
peers published for 2018–19
03 Suncorp 2019–20 Responsible Business Report
OUR BUSINESS
Improving our business practices We take our responsibilities as a large business seriously and are
Our ability to respond to the challenges faced this year was due in always looking for ways to improve outcomes for all stakeholders.
large part to a culture that appropriately balances customer and
community outcomes, financial performance and risk management. Building long-term resilience
This year we deepened our understanding of the strategic and
In dealing with the significant impacts of the COVID-19 pandemic,
financial risks and opportunities presented by the changing
the health and safety of our people was our immediate priority.
climate through comprehensive scenario analysis. The insights
We also moved quickly to support our customers with relief
gained will help us manage risks posed by the increasing severity
packages and other measures.
of natural hazards, act on new and emerging opportunities, and
More broadly this year, we have strengthened support for support an orderly transition to a net-zero emissions economy.
customers facing hardship, and introduced greater transparency
Suncorp has taken a careful and considered approach to building
and enhanced protections for customers. This has underpinned
resilience to the physical risks of climate change, as well as
our transition to the updated General Insurance Code of Practice
reducing the impacts of economic and transition risks, to ensure
and the commencement of our Responsible Banking & Insurance
our business is sustainable into the future.
Policy implementation.
We continue to advocate for greater investment by government in
Suncorp continues to welcome regulatory change that creates
effective natural hazard resilience building, which will also provide
Message from
improved outcomes for customers. We regularly advocate with
much-needed economic stimulus in the current environment,
government and regulators on matters impacting our business
particularly in our regional communities.
and key stakeholders, with a focus on ensuring that change
our Chairman does not have unintended consequences for consumers. This
year, our advocacy included a submission to Treasury on the
implementation of reforms flowing from the Royal Commission
The actions our organisation takes to address our most material
social and environmental issues, combined with our advocacy
for change, are critical to ensuring Suncorp remains well
into Banking and Financial Services (the Royal Commission), positioned to be a more resilient company for the benefit of all
The past 12 months have brought extraordinary challenge its stakeholders.
focusing on the anti-hawking provisions, breach reporting, and
and uncertainty for people and communities across the
the enforceability of industry codes.
globe. As a relentless drought was impacting the lives
of many regional families, we are now also dealing with Conduct and culture remain a priority
the immediate impacts of the COVID-19 global pandemic
Strengthening trust by improving our conduct and culture
and summer of disasters on our people, customers, and
remained a priority this year. We conducted an employee
communities, and the long-term implications for our CHRISTINE MCLOUGHLIN
engagement and culture assessment, refreshed our Code of
economies and environment. CHAIRMAN
Conduct, strengthened our risk culture and risk and compliance
These events further highlight the important role Suncorp 21 AUGUST 2020
capability, and increased transparency of our non-financial
plays in supporting both the immediate and long-term performance metrics.
recovery of our customers, communities and the economy.
During the year Suncorp initiated a review of pay and leave
Our purpose – to build futures and protect what matters
entitlements. Regrettably, early analysis of historical data
– is at the heart of how we respond.
indicated inconsistencies in relation to the Group’s rostering and
pay systems. The Board Risk Committee is overseeing the review
and is committed to a timely and accurate remediation process,
which will be communicated with employees and shareholders
upon completion.
04 Suncorp 2019–20 Responsible Business ReportOur
Stakeholders
05 Suncorp 2019–20 Responsible Business ReportStakeholder This year we engaged with our key stakeholder groups on the following economic, environmental, social and governance topics.
engagement STAKEHOLDER
GROUP
HOW WE ENGAGE SUMMARY OF TOPICS RAISED
Customers Daily interactions via contact centres, branches Support for customers impacted by disasters and COVID-19, customers
and digital platforms, customer surveys, dispute experiencing vulnerability, financial resilience, business continuity,
Suncorp collaborates with a broad range of stakeholders resolution processes and dealings with the customer experience, cyber and data security, scam and fraud awareness
to identify and manage business risks and opportunities, Suncorp Group Customer Advocate and support, elder financial abuse, digital capability and innovation.
to advocate for positive outcomes and to ultimately create
Employees Internal communication channels, annual executive Employee health, safety and wellbeing, business continuity, workforce
long-term value. town halls and regular employee engagement planning, engagement and employee experience, remuneration practices,
OUR STAKEHOLDERS
surveys and pulse-checks, business leader conduct and ethics, digital capability, resource use and efficiency, diversity
OUR APPROACH presentations and webcasts and inclusion, reconciliation and cultural learning, cyber security.
Stakeholder engagement is highly valued by Suncorp as an Shareholders, Meetings, executive and director roadshows, Impacts of natural disasters, COVID-19 and business continuity, remuneration
important means of building trust and confidence; it helps investors, full and half year results presentations practices, non-financial performance and targets, climate change business
us make informed and balanced decisions and determine analysts and (including webcasts), analyst briefings and and customer impacts, modern slavery, responsible investment, responsible
credit rating conferences, annual credit rating reviews and underwriting and lending, conduct and culture.
our approach to addressing topics most material to us and
agencies the Annual General Meeting
our stakeholders.
Federal, state Meetings and conferences, submissions The Royal Commission recommendations implementation, natural
We use a process of ongoing formal and informal engagement and local to inquiries, background briefings and hazard resilience, disaster response, climate change, conduct and culture,
methods, which are based on a set of principles that ensure we government correspondence fairness and value, affordability and accessibility, support for people and
are proactive, respectful, transparent and uphold the highest communities experiencing vulnerability.
of ethical standards. They also ensure we are disciplined and Regulators Regular liaison meetings, industry conferences, Climate-related financial risk, transparency and disclosure, conduct and
considered in the way we manage the engagement, with clear regular meetings with executives and directors, annual culture, fairness and value, responsible lending and underwriting, modern
relationship owners. Our approach evolves in line with our prudential consultations and ongoing site visits slavery, financial soundness, compliance requirements and technology risk.
strategy and emerging trends and issues that may impact our Industry Committee and working group participation, Disaster response, response to COVID-19, support for people experiencing
business and the community. associations informal interactions, Australian Banking vulnerability, climate change business and customer impacts, responsible
Association Council membership, Insurance Council supply chains and modern slavery, cyber and data security.
We identify key stakeholders based on the level of interest and of Australia, Insurance Council of New Zealand and
impact they have on our business, as well as the opportunity to Financial Services Council Board membership
collaborate for more positive outcomes.
Suppliers and Formal and informal meetings, contract renewals Impacts of COVID-19 and business continuity, digital capability,
partners and risk assessments responsible supply chain and modern slavery, cyber and data security.
Media Media releases, background briefings, direct Business continuity, conduct, culture, natural hazard resilience, disaster
engagement and one-on-one interviews, social response, affordability and accessibility, cost of living, support for people
media channels and informal interactions experiencing vulnerability, community investment, workforce planning.
Consumer Customer issues management and interactions via Support for vulnerable people, affordability and accessibility, fairness and
advocacy the Suncorp Group Customer Advocate, meetings value, disaster response, financial resilience, natural hazard resilience,
groups and conferences, industry forums and the annual conduct and ethics, responsible banking and underwriting, customer
Consumer Advocate Day experience.
Community Meetings and conferences, industry collaborations Financial resilience, natural hazard resilience, digital capability, support
partners and and community partnerships for people experiencing vulnerability, disaster preparedness and response,
NGOs talent attraction, diversity and inclusion, reconciliation, cultural heritage and
environmental preservation, social inclusion and community investment.
Universities, Joint research projects, meetings, conferences and Climate change business and customer impacts, responsible investment,
academics presentations responsible underwriting and lending, natural hazard resilience, cyber
and climate security and scams, responsible supply chain.
specialists
06 Suncorp 2019–20 Responsible Business ReportMateriality Our updated materiality assessment
OUR APPROACH RESPONDING TO OUR CHANGING OPERATING
this year is based on:
Suncorp proactively manages the material economic, ENVIRONMENT
social and environmental risks and opportunities identified This year has seen unprecedented change in our region and
by our key stakeholders and our business. globally, resulting in new material topics, as well as a shift in the Identification
importance and impact of several topics identified in our last
Regular materiality assessments help us identify and prioritise
materiality assessment. — a review of global megatrends, media and peer
the topics of most significance for our business, ensuring
activities across Australia and New Zealand,
they reflect the needs and expectations of our stakeholders, Changes from our 2018–19 assessment include:
including industry trends
OUR STAKEHOLDERS
and society, both now and in the future. The results of our
— the emergence of new material topics including business
materiality assessment inform our corporate responsibility — incorporation of stakeholder expectations and
continuity and product innovation, and a heightened focus on
approach, strategic priorities and reporting. Suncorp’s material responses to COVID-19 and the Australian bushfire
employee health and wellbeing, support for people experiencing
topics are managed through the lens of our four key Corporate crisis including from investors, analysts, customers,
vulnerability, financial resilience, workforce planning and digital
Responsibility Principles, which help guide our decision making government and community representatives, consumer
capability as a result of the COVID-19 pandemic
and balance customer outcomes, financial performance and advocates, NGOs, partners, suppliers and peers
risk management. — the heightened importance to stakeholders of natural hazard
resilience, support for people experiencing vulnerability, and — a review of our performance in key sustainability
This year we built upon the comprehensive materiality
climate change impacts on our business, customers and rating benchmarks
assessment conducted in 2019, to reflect changes to our
communities, since the summer of disasters
operating environment and emerging priorities resulting from — feedback from formal and ongoing informal
the unprecedented events of the COVID-19 global pandemic — human rights, including modern slavery as a new material stakeholder engagement throughout the year
and the Australian bushfire crisis. topic for Suncorp to address, particularly in response to the (as outlined in table on page 6)
introduction of the Modern Slavery Act in Australia.
— employee engagement and culture assessment
The most material topics based on their importance to
responses
stakeholders and the potential impact on our business are
outlined on the next page (see diagram) .
Prioritisation
— an internal materiality survey of business
representatives and management to identify and
prioritise environmental, social and governance topics
Validation
— validation of the most significant topics via an internal
management group and input from senior leaders
07 Suncorp 2019–20 Responsible Business ReportMateriality
Our most material environmental,
social and governance topics
Fairness and value
Conduct and ethics
Affordability and accessibility
T
ransparency and disclosure
OUR STAKEHOLDERS
Support for vulnerable people
Cyber and data security Financial resilience
Remuneration practices Customer experience
igital capability and
D
product innovation
TRUST AND RESPONSIBLE
TRANSPARENCY FINANCIAL
SERVICES
esponsible investment,
R
underwriting and lending
Employee health, safety
and wellbeing RESILIENT PEOPLE SUSTAINABLE Responsible supply chain
AND COMMUNITIES GROWTH
usiness continuity and
B Human rights including
workforce planning modern slavery
Talent attraction and retention Resource use and efficiency
iversity, inclusion and employee
D Natural hazard resilience
experience
Climate change:
Indigenous engagement business impacts
Community investment limate change: customer
C
and community impacts
Topic increased in importance
New topic for 2020
08 Suncorp 2019–20 Responsible Business ReportMateriality
WHERE THE
Addressing our most material environmental, social and governance topics IMPACT OCCURS
The following table defines our ten most material topics and summarises our response to each.
Community
Our people
Customers
Investees1
Suppliers
TOPIC OUR RESPONSE
CONDUCT AND ETHICS — Refreshed Code of Conduct
Ensuring ethical and appropriate behaviour and — Introduced Ethical Decision-Making course for leaders
practices of directors, management and employees. — Established Data Ethics Principles and Data Ethics Advisory Committee
Trust and Transparency
— Developed Risk Culture Principles
TRANSPARENCY AND DISCLOSURE — Published performance against non-financial targets and set 2020–21 targets
OUR STAKEHOLDERS
Committing to the disclosure of economic, social and — Published performance of sustainability assessments and participated in the Dow Jones Sustainability Index, CDP,
environmental risks, opportunities and performance. London Benchmarking Group (LBG) and Workforce Gender Equality Agency (WGEA) benchmarking exercises
Ensuring product and service information is easy to — Updated materiality based on emerging priorities and changes to our operating environment
locate and understand. — Published 2019–20 Climate-related Financial Disclosure, Tax Transparency Report, and Proxy Voting Principles
and Summary
— Improved transparency of premium changes through General Insurance Code of Practice implementation
— Became a signatory to the United Nations Environmental Programme Finance Initiative (UNEP FI) Principles
for Responsible Banking
— Integrated the UNEP FI Principles for Sustainable Insurance
FAIRNESS AND VALUE — Transitioned to updated General Insurance Code of Practice
Ensuring products and services provide fair value — Further implemented Banking Code of Practice
and balance the needs of different stakeholder — Commenced implementation of Responsible Banking & Insurance Policy
Responsible Financial Services
groups. — Responded to COVID-19, including customer relief and retention packages
— Engaged with our stakeholders and advocated for better customer and consumer outcomes
SUPPORT FOR VULNERABLE PEOPLE — Extended a suite of hardship and relief measures in response to COVID-19 and the Australian bushfires,
Providing support to people experiencing a period of and donated to a range of community groups to support those most vulnerable
or ongoing vulnerability in their life. This may include — Implemented Customers Experiencing Vulnerability Strategy, Standards and Guidelines, including
people impacted by financial hardship, domestic Domestic and Family Violence statement
violence, financial abuse, illness or a disability, — Continued financial inclusion and customer vulnerability training for Australian employees and extended to
or faced with barriers due to ethnic/cultural New Zealand teams
or socio-economic characteristics. — Expanded community sector partnerships to improve external referral pathways
FINANCIAL RESILIENCE — Launched AAMI-branded micro-enterprise business insurance
Improving the capability, resources and access to — Piloted Financial Literacy workshops with Multicultural Australia clients to build financial resilience and economic
suitable insurance, banking and wealth products participation for culturally diverse communities
and services for our customers and community — Worked with Thriving Communities Partnership on a research report to better understand role of essential services
to enhance their ability to withstand and adapt to in recovering from a natural disaster
financial shock or adversity. — Worked in partnership on a Sorry Business financial hardship solution to address challenges faced
by Indigenous Australians when paying for the funerals of loved ones
DIGITAL CAPABILITY AND PRODUCT INNOVATION — Rapidly deployed new digital solutions for customer experience, claims handling and employee communication
Keeping pace with the increasing digitisation and during COVID-19 response
demand for personalised financial products and services.
1. Companies that Suncorp has invested in through its investment portfolios
09 Suncorp 2019–20 Responsible Business ReportMateriality
WHERE THE
Addressing our most material environmental, social and governance topics IMPACT OCCURS
Community
Our people
Customers
Investees1
Suppliers
TOPIC OUR RESPONSE
NATURAL HAZARD RESILIENCE — Continued advocacy through our Natural Hazard Resilience Strategy
Helping our customers and communities build — Expanded Storm Ready Streets community engagement across Queensland
resilience to natural hazards including floods, storms — Completed first phase of climate change scenario analysis to understand community resilience to insurable
Sustainable Growth
and bushfires, while also appropriately pricing risk and uninsurable risk
and maintaining insurance affordability in high-risk
OUR STAKEHOLDERS
communities.
CLIMATE CHANGE: BUSINESS IMPACTS — Continued to implement our Climate Change Action Plan
Addressing the impacts of climate change on — Published Climate-Related Financial Disclosures
Suncorp's operations and business activities. — Developed a Renewable Energy Strategy and joined RE100
— Refreshed our Environmental Performance Plan
EMPLOYEE HEALTH, SAFETY AND WELLBEING — Responded to COVID-19, including new social distancing and hygiene protocols
Protecting and maximising the physical and mental — Strengthened Safety and Wellbeing Policy
health, safety and wellbeing of our workforce. — Supported safety and wellbeing for expanded work-from-home arrangements
Resilient People And Communities
— Introduced unlimited paid Emergency Response Volunteer leave
— Conducted Gender Equality and Gender Equity Pay Review
— Introduced Employee Assistance Program specialists for Indigenous employees
— Established two new Employee Resource Groups
— Refreshed Employee Giving program
BUSINESS CONTINUITY AND WORKFORCE — Responded to COVID-19, including crisis response, scenario planning and stress testing
PLANNING — Deployed Business Continuity Plans (BCPs) for all business units
Ability to respond to and ensure core business — Deployed BCPs with all overseas outsource partners
operations are not severely impacted by an — Deployed work-from-home arrangements for the majority of our people, with increased technology infrastructure
unplanned incident, crisis or major disruption. It swiftly put in place to meet capacity needs
includes planning for and addressing impacts on — Enabled business-critical work to continue at our workplaces through COVID-19 safety measures
our workforce as a result of changed conditions, — Reviewed long-term people and workplace plans
technology and demographic trends. — Expanded Future Ready learning program
1. Companies that Suncorp has invested in through its investment portfolios
10 Suncorp 2019–20 Responsible Business ReportOur
Responsibility
Photographed October 2019
11 Suncorp 2019–20 Responsible Business ReportCorporate Responsibility
Principles
Suncorp aims to optimise economic, social and environmental transparency about our operations and performance underpins
outcomes for stakeholders, which is core to strengthening trust our ongoing ability to maintain our social licence to operate.
and building a resilient, responsible and sustainable business. SUSTAINABLE
Our Board-approved Corporate Responsibility Principles DEVELOPMENT GOALS
For Suncorp, this approach helps us live our company’s purpose (the Principles) guide our approach to governance and risk
Suncorp is committed to
to build futures and protect what matters. Our commitment management, policy development, business decision making,
driving awareness and
to continuously improve our business practices and increase and disclosure of non-financial performance.
action in support of the
United Nation’s Sustainable
Development Goals (SDGs),
which are a set of 17 goals
RESILIENT PEOPLE AND COMMUNITIES
that define global sustainable
The Principles we aspire to: We respect human rights and invest in the development priorities and
wellbeing and resilience of our people and
aspirations for 2030. The
communities. We are there for our people
SDGs call for action to
and our communities in times of need.
address significant economic,
social and environmental
challenges such as poverty,
OUR RESPONSIBILITY
TRUST AND TRANSPARENCY inequality, improving health
and education and climate
We are committed to building trust
action. Suncorp’s responsible
and doing the right thing. We are open
and transparent in our dealings with business activity contributes
our stakeholders. to eight of the 17 SDGs as
outlined here. Read more
about our contribution to the
RESILIENT PEOPLE
SUSTAINABLE GROWTH SDGs at suncorpgroup.com.
AND COMMUNITIES
We seek to innovate and optimise au/corporate-responsibility/
economic, social and environmental our-approach/sustainable-
outcomes throughout our business and development-goals
value chain.
TRUST AND RESPONSIBLE FINANCIAL SERVICES
TRANSPARENCY
We put our customers at the heart of
everything we do and help them make
good choices. We provide customers
RESPONSIBLE SUSTAINABLE with access to affordable financial services
FINANCIAL SERVICES that meet their needs.
GROWTH
12 Suncorp 2019–20 Responsible Business ReportCorporate responsibility governance
The Suncorp Board stewards corporate governance, culture, Mr Lindsay Tanner, a Non-executive Director of the Suncorp Suncorp’s Group CEO chairs the Diversity Council, which
strategy, and our social licence to operate. Our governance Group Limited Board, chairs Suncorp’s Customer Committee, oversees how we foster diversity and inclusion initiatives and
structure provides for effective and responsible decision- which oversees and aligns initiatives that underpin our priority tracks our progress against the objectives and targets set out
making within the organisation. to deliver great customer outcomes and experiences. The in our Diversity & Inclusion Plan and Diversity Policy. The
Customer Committee met three times during 2019–20. Diversity Council met quarterly during 2019–20.
OUR APPROACH
Ms Sally Herman, a Non-executive Director of the Suncorp Group Suncorp’s Group CEO chairs the Non-Financial Risk Committee,
Suncorp’s Board believes high standards of governance and Limited Board, chairs Suncorp’s Risk Committee, which provides which oversees non-financial-related risks and mitigation
corporate responsibility are essential for achieving business oversight of all categories of risk, including risk culture. It approves strategies. This committee was formed in April 2019 and
objectives, sustaining long-term financial performance and creating and oversees the processes used to identify, evaluate and manage convenes monthly.
value for our customers, shareholders and key stakeholders. risk. The Risk Committee met seven times during 2019–20.
The Group Data Council governs data ownership and
The Board and its five Committees regularly review the Several Executive Leadership Team sub-committees help accountability across Suncorp, acting as a point of escalation
corporate governance framework and associated policies and govern Suncorp’s corporate responsibility commitments. for data-related decisions and maintaining a focus on data as a
practices to ensure they keep pace with regulatory change, strategic asset. This year an advisory committee was established
Suncorp’s Group CEO chairs the Corporate Responsibility Council,
industry best practice and community expectations. to oversee the implementation of our Data Ethics Principles.
which formally oversees our corporate responsibility commitments
Collectively, the Board is responsible for approval of objectives, and the development of strategies to address economic, social
strategies and policies to address economic, social and
OUR RESPONSIBILITY
and environmental risks and opportunities. The Corporate
environmental risks and opportunities for Suncorp. This includes Responsibility Council met three times during 2019–20.
new policy development and the setting of metrics and targets
for non-financial performance reporting.
In 2019–20, prominent environmental, economic, social and
governance topics addressed by the Board included remuneration
GOVERNANCE OF CORPORATE RESPONSIBILITY COMMITMENTS
practices, conduct and culture, responsible investment,
underwriting and lending, climate change and natural hazard
resilience, financial inclusion and support for customers SUNCORP GROUP LIMITED BOARD
experiencing vulnerability, and inclusion and diversity. In response
to the COVID-19 pandemic, the Board closely oversaw measures
to protect the health, safety and wellbeing of our people and People and
Audit Risk Customer Nomination
customers and ensured ongoing investment in the community. Remuneration
Committee Committee Committee Committee
Committee
GOVERNANCE STRUCTURE
Throughout 2019–20 our governance arrangements have been
EXECUTIVE LEADERSHIP TEAM
consistent with the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations (3rd edition).
Detailed information on Suncorp’s corporate governance framework
and developments during the year is provided in the 2019–20 Corporate
Diversity Group Data Non-Financial
Responsibility
Corporate Governance Statement, available at suncorpgroup. Council Council Risk Committee
Council
com.au/about/corporate-governance
13 Suncorp 2019–20 Responsible Business ReportCommitments and frameworks
Commitments and
MEMBERSHIPS AND SIGNATORIES
United Nations Global Compact (UNGC)
frameworks Suncorp has been a signatory to the UNGC since June 2019. We use the framework to help
drive sustainable business practices in the areas of human rights, labour, environment and anti-
corruption and align our activity to broader societal goals. Over the past year, Suncorp has actively
participated in a range of capability building and networking programs hosted by the UNGC.
United Nations Environmental Programme Finance Initiative (UNEP FI)
IMPROVING OUR PRACTICES UNEP FI is a partnership between UNEP and the global financial sector to mobilise private
sector finance for sustainable development. Suncorp is a signatory to all three UNEP FI
We value being benchmarked on the progress of our work frameworks, which are aimed at integrating sustainability into financial market practice.
and our performance as we strive to deliver better economic,
governance, social and environmental outcomes. Principles for Responsible Investment (PRI)
Suncorp has been a signatory to the PRI since 2019, joining more than half the world’s
institutional investors who apply the Principles to their investment decisions.
EXTERNAL ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RATINGS
During the year Suncorp completed its first PRI Transparency Report, available at
AND BENCHMARKS
unpri.org/signatory-directory/suncorp-group/4682.article
Sustainability ratings and industry benchmarks enable us to improve our performance and transparency.
We take part in a wide range of external assessments and benchmarking initiatives including: Principles for Sustainable Insurance (PSI)
Suncorp became a signatory to the PSI in 2019, with the aim of working with the industry and
other stakeholders to reduce risk, develop innovative solutions, improve business performance,
and contribute to environmental, social and economic sustainability.
Dow Jones Sustainability Index (DJSI): In 2019, Suncorp actively participated in the
- Corporate Sustainability Assessment and improved its score by 25 points, scoring Principles for Responsible Banking (PRB)
57 out of 100 points. This year the threshold for inclusion in the Australian Index was 67.
Launched in September 2019, Suncorp became Australia’s first non-major Bank to endorse and
become a signatory to the PRB, which aim to accelerate the banking industry’s contribution
CDP: Suncorp has participated since 2011 as both a responding company and as an to achieving the UN Sustainable Development Goals and the Paris Agreement. Suncorp will
OUR RESPONSIBILITY
asset owner and manager. In 2019, we received a B- rating, an improvement from complete its first self-assessment over the coming year.
a C the year prior.
Task Force on Climate-related Financial Disclosures (TCFD)
In 2018, Suncorp became one of the first 250 companies globally to become a signatory to the
FTSE4Good Index: Suncorp has been included in the Index since 2013. FTSE4Good Financial Stability Board’s TCFD. The framework guides Suncorp’s financial risk disclosures that are
reviews publicly available information on listed companies and screens for performance associated with climate change, including physical, liability and transition risks. Our Climate-related
against ESG standards. Financial Disclosure is available at suncorpgroup.com.au/corporate-responsibility/reports
RE100
Sustainalytics: Suncorp has participated since 2016. This year, Suncorp received an This year Suncorp became a member of the RE100 global corporate renewable energy initiative
ESG risk rating score of 20.5/100 (where 0 equals low risk and 100 equals high risk). that brings together hundreds of businesses committed to 100 per cent renewable energy in an
aim to accelerate a global shift to clean energy and zero carbon grids.
London Benchmarking Group (LBG)
Morgan Stanley Capital International (MSCI): During the year, Suncorp achieved an Suncorp has been a member of LBG Australia and New Zealand since 2009. LBG provides the
A rating from MSCI ESG Research, an uplift from our previous BBB rating. global standard for measuring and benchmarking corporate community investment.
Workforce Gender Equality Agency (WGEA)
Institutional Shareholder Services (ISS): Suncorp has participated in the ISS ESG This year, Suncorp was recognised as an Employer of Choice for Gender Equality by WGEA, an
QualityScore assessment since 2017 and currently scores a 2 for ‘E’ (environmental), Australian Government statutory agency, for the seventh consecutive year, demonstrating our ongoing
1 for ‘S’ (social) and 1 for ‘G’ (governance), where one equals lower governance risk and commitment to advancing gender equality and promoting inclusion at all levels of our organisation. Our
10 equals higher governance risk. annual WGEA reports are available at suncorpgroup.com.au/corporate-responsibility/reports.
Chartered Institute of Procurement and Supply (CIPS)
Suncorp has been recognised on the CIPS Global Corporate Ethical Register over the past year
for our commitment to safeguarding against unethical conduct in procurement. We complete
an annual capability assessment and formal submission to achieve ongoing recognition.
14 Suncorp 2019–20 Responsible Business ReportTrust and OUR FOUNDATIONS
transparency Corporate Governance
Statement
Outlines Suncorp’s approach to
corporate governance and its
principal governance practices.
suncorpgroup.com.au/about/
We are committed OUR APPROACH corporate-governance
to building trust We take the trust our stakeholders place in us and our Code of Conduct
and doing the right role in society seriously. We proactively engage with our Sets out the standards of behaviour
thing. We are open stakeholders to understand the things that matter most, we expect from our people, and
and advocate for change. We are increasing the transparency guides how we work together, make
and transparent in of our business operations and performance, and the decisions and meet our customers’
our dealings with decisions we make.
needs. It is guided by our cultural
principles of doing the right thing,
our stakeholders. MEETING CUSTOMER AND COMMUNITY EXPECTATIONS
being courageous, and caring for
others. suncorpgroup.com.au/
Being responsive to changing community concerns and about/corporate-governance
expectations is central to earning the trust required to maintain
Policies to support regulatory
Suncorp’s social licence to operate. The significant events during
compliance
2019–20 have only served to heighten our focus on meeting
Ensures our people and systems
the immediate needs of our people, customers and community, comply with the requirements
while ensuring we build a resilient, sustainable organisation that of a highly regulated industry.
OUR RESPONSIBILITY
creates long-term value for all. suncorpgroup.com.au/about/
corporate-governance
We maintain a sharp focus on strengthening our conduct
and culture to ensure good outcomes for customers and Whistleblower Policy
remain committed to working with regulators to implement Outlines the confidential service
changes following the recommendations outlined in available to all our people and
the Royal Commission. suppliers to raise concerns of
suspected or actual misconduct.
suncorpgroup.com.au/uploads/
INCREASING TRANSPARENCY Whistleblower-Policy_8.pdf
Increasing the transparency of Suncorp’s business activity
and non-financial performance is key to meeting stakeholder Political Engagement Position
expectations. We communicate openly and comprehensively Statement
Commits us to high ethical
about our corporate responsibility commitments, approach
standards in our approach to political
and performance. This year, for the first time, we report on engagement. suncorpgroup.com.au/
our performance against the customer, people, community, about/corporate-governance
environment and value chain targets we published in 2018–19.
See page 3 for our 2019–20 performance against targets. Suncorp Group Privacy Policy
Details how we collect, use,
disclose, store and secure personal
information. Our people complete
mandatory privacy training annually.
suncorpgroup.com.au/about/
corporate-governance/privacy-policy
Keith Howard, Suncorp Customer
Support Specialist
15 Suncorp 2019–20 Responsible Business ReportTrust and transparency
TAX TRANSPARENCY
REPORT
Suncorp’s Tax Transparency
OUR PROGRESS Suncorp New Zealand’s Conduct Uplift Program continued to
Report 2018–19 details our
improve conduct capability across the business, with more than
70 measures implemented resulting in enhanced product and tax contributions and overall
2021 TARGET Suncorp continued to strengthen our practices and culture
system training, improved readability of our policies and customer approach to tax strategy:
98% of employees complete and embrace regulatory change to deliver better outcomes
communications, and a deeper understanding of customer suncorpgroup.com.au/
Code of Conduct training for our customers and the community, and build a resilient,
annually outcomes and experiences. corporate-responsibility/
sustainable business.
reports
STRENGTHENING CONDUCT AND CULTURE Code of Conduct
During 2019–20 Suncorp sharpened its focus on managing This year Suncorp refreshed its Code of Conduct to be easier
conduct risk and developing a risk culture that embeds risk to understand and more reflective of the current regulatory
awareness, transparency and accountability at every level, and environment. Our refreshed Code of Conduct helps bring our
exemplifies responsible and ethical behaviour. Doing the right purpose to life and is guided by our cultural principles. It is
thing by our people, our customers, our shareholders and the aligned to our Risk Culture Principles, the General Insurance Code
community is our priority, and core to sustaining long-term of Practice and the Banking Code of Practice, with strengthened
financial performance. focus on supporting customers experiencing financial difficulty or
vulnerability, transparent customer communications, and taking
Culture assessment ownership of good customer and community outcomes.
This year Suncorp undertook an independent Group-wide Changes to elevate the importance and weighting of the risk Suncorp Tax Transparency Report 2018-19 PAGE 1
culture assessment to better understand our current culture category in the Group Scorecard structure were approved by
and identify opportunities to shift the culture to more effectively the Board. Throughout the year, all executive and non-executive
OUR RESPONSIBILITY
deliver on our strategy. The survey highlighted the willingness of employees’ performance assessments included confirmation
our people to do the right thing by our customers and build trust, of their adherence to the behavioural standards outlined in
and the care they have for each other. More than 89 per cent Suncorp’s Code of Conduct.
of people noted that compliance requirements were a priority,
while the survey also identified areas for improvement such as In 2019–2020, Suncorp’s Consequence Management Framework
delivering greater clarity and connection to our strategy, and was introduced to strengthen the link between conduct and
driving a deeper understanding of how our risk practices support individual performance and reward outcomes. During the year,
growth and innovation. there were 239 Code of Conduct breaches identified that resulted
in formal consequences, including 66 employees leaving Suncorp,
Conduct risk 28 employees receiving nil variable rewards; and the remaining
145 employees receiving a minimum 20 per cent reduction in
Robust management of conduct risk is central to driving the
variable rewards.
right behaviours at both an individual and organisational level,
ensuring we act in the interests of customers and the community
Ethical Decision-Making
and confidence in our organisation is maintained. This year
we continued to improve our governance, systems, processes, During 2020 Suncorp partnered with the Ethics Centre to create an
reporting and people practices as key enablers to identifying and Ethical Decision-Making Masterclass for all leaders. The program
managing conduct risk. complements Suncorp’s Code of Conduct, and helps participants
develop and apply ethical knowledge and skills to all decision
We also embedded our online tool, which enables employees making. It positions leadership as an ethical practice, enhances
to raise issues by lodging risk incidents. Risk culture principles, awareness of ethical blind spots and biases, and provides tools
which outline attributes and behaviours of the risk culture we for navigating daily decisions. Using a scenario-based approach,
expect from everyone at Suncorp, have been incorporated into key leaders apply an ethical lens to navigate complex decisions and are
policies and governance, including Suncorp's Code of Conduct. encouraged to consider the impacts on a range of stakeholders.
16 Suncorp 2019–20 Responsible Business ReportYou can also read
