INSURANCE AUSTRALIA GROUP (IAG)
The insurance industry has a logical affinity for
sustainability because of the range of environmental,
social and economic factors that influence its core
business. Not only do these factors affect the way
the industry calculates risk and sets appropriate
premiums, they also influence the way the insurance
companies assist people to manage and reduce their
risk exposure.
Insurance Australia Group (IAG) is the largest
general insurer in Australia and New Zealand. Ecos
has been working with the senior executive team
at IAG to develop and implement a value focused
sustainability strategy for the business.
When Mike Hawker joined IAG as CEO in 2001, he
recognized insurance as the perfect "community
product". The business challenge was: "How
can the focus on the community be leveraged as a
commercial driver for IAG?"
IAG engaged Ecos in 2002 to explore its sustainability
potential, ensure that sustainability is incorporated
into the business operations and becomes an integral
part of the business strategy. A core challenge
was to expand the company's focus on reducing insurable
risks like fire, accidents and crime in the community,
rather than simply paying claims after the event.
Dubbed the 'flying squad', an Ecos team worked
with IAG's senior executives to understand how sustainability
could add value to its business strategy. This led
to the executive committee adopting a Framework
for Action on Sustainability, highlighting a focus
on safety and the environment. Ecos' team has worked
closely with IAG's key divisions, covering motor
and home insurance, worker's compensation, group
risk, R&D, human resources and corporate affairs,
as well as working with IAG in New Zealand.
IAG is now widely recognised as one of Australasia's
sustainability leadership companies, with a particular
focus on climate change as a driver for risk in
the community. It is now a signatory to the United
Nations Environment Programme Finance Initiative
(UNEP FI) and in 2003, IAG was awarded Sustainable
Company of the Year by Ethical Investor Magazine.
Ecos continues to work with IAG, providing strategic
support for senior executives and the sustainability
team.
You can find IAG at
www.iag.com.au
IAG NEW ZEALAND (IAG NZ)
Ecos was engaged by IAG New Zealand's Executive in
2003, to assess the value of sustainability in terms
of revitalizing the Company's State Insurance brand.
Soon after, IAG NZ purchased NZI, making IAG NZ the
largest general insurer in New Zealand.
Following the acquisition, the business priorities
focused on minimizing the risks inherent in the
post-acquisition integration process, repositioning
the brands as new dynamic players in the market
and establishing a platform to grow the new business.
Sustainability has played a significant role in
each of these priorities.
The sustainability value proposition for IAG NZ
is heavily geared toward proactive risk reduction
- that is reducing the societal risk of fire, flood,
burglary, car theft and vehicle accidents, which
from a business standpoint reduces the frequency
and size of claims. This adds both significant societal
and shareholder value.
Ecos took a similar framework we had developed
with IAG (the parent company) in Australia and adapted
it to the New Zealand operating environment, ensuring
it fit with the integration process and new business
plan for the company.
Our work included an intensive internal alignment
and communications strategy that has resulted in
the successful positioning of sustainability both
as a new cultural attribute for IAG NZ as well as
a new business growth strategy.
The Executive has remained extremely supportive
and involved in the program and because of the rock
solid business case for the focus on proactive risk
reduction, the program has had a very high degree
of uptake and support within the company.
IAG NZ is the first insurance company in New Zealand
to 'step up' to the sustainability challenge. Given
it accounts for 40% of the insurance market in New
Zealand, it is likely that other industry players,
including the Insurance Council of NZ will shift
their position in the future to be more closely
aligned with IAG NZ's ground breaking approach.
Read more
in a dedicated case study on our work with IAG NZ.
You can find IAG NZ at
www.iag.co.nz
PACIFIC POWER
Pacific Power was one of three electricity generators
involved in the recently deregulated electricity sector
in the Australian state of New South Wales. Pacific
Power was a coal-focused generator with key assets
including the 2400MW Eraring Power station, several
coal mines and an Asian-focused energy services business.
In November 1996, Ecos commenced work with Pacific
Power's management to develop and implement a business
strategy that was responsive to the challenges presented
by sustainability, particularly climate change.
As a result, Pacific Power's vision was to "lead
the transition to a sustainable energy future".
As well as pursuing greater efficiencies in its
coal operations, Pacific Power expanded its energy
services business, taking investments in gas, co-generation,
solar and wind generation. These include the world's
largest solar suburb for Sydney's 2000 Olympic Games
Athletes' Village, the Crookwell Wind Farm (Australia's
largest and the first to be grid connected), Australia's
first carbon trade and an AUD$67 million investment
in one of the world's leading new generation solar
technologies.
We provided strategic advice and support to Pacific
Power in implementing its vision between 1996 and
1999. Pacific Power maintained its commitment to
sustainability until it was sold in 2003.
PLACER DOME
Placer Dome is a leading Canadian gold mining company
that has embarked on a business strategy to be the
"Earth's Gold Leader". The company identified
excellence in sustainability as a crucial component
of this strategy, particularly in light of the poor
historical record and reputation of the gold mining
industry on environmental and social issues.
In 1997, Ecos assisted Placer Dome Asia Pacific
to produce the world's first mining sector sustainability
report. This report outlined Placer's economic,
social and environmental track record.
Additionally, with Placer Dome Asia Pacific Ecos: