2018 sustainability report - Amp · 3 AMP 2018 sustainability report The AMP sustainability report...
Transcript of 2018 sustainability report - Amp · 3 AMP 2018 sustainability report The AMP sustainability report...
2018 sustainability report
AMP 2018 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 2019.
Contents3 CEO’smessage4 Whoweareandwhatwedo6 Aboutthisreport7 Materialissues
Our customers8 Customerexperience12 Digitaldisruptionandinnovation14 Cybersecurityandprivacy16 Regulatoryandlegislativeenvironment
Our people18 Ethicalconductandprofessionalstandards22 Inclusionanddiversity24 Supportinganddevelopingourpeople
Our community26 Climatechangeandtheenvironment30 Responsibleinvesting32 Sustainablesupplychain33 Communityinvestment
AMP 2018 sustainability report3
TheAMPsustainabilityreportisanimportantpartofourannual reporting suite.Itoutlineshowwewilltakeonthechallengesofachangingworldandhelpbuildabetterfutureforourcustomers,ourpeopleandourcommunity.
AMP’sfinancialstrengthhasalwaysbeenmatchedbyitsstrongsocialpurpose.It’swhyIhavesomuchfaithinthisiconiccompany.Wewerefoundedonthebeliefthatwecanmakeapositivedifferencetopeople’slivesand,indeed,itisourdutytodoso.
AvitalwayweengagewiththecommunityisthroughtheAMPFoundation–ourphilanthropicarm.In2018,I’mpleasedtosayitinvestedalmost$5millionintothecommunity,includingsupportingprogramsthatprovidelife-changingeducationalandemploymentopportunitiesfordisadvantagedAustralians.
AMPCapitalhasgainedareputationfornotonlyenvironmental,socialandgovernanceanalysis,butalsoaction.Thiswasevidentin2018whenitfullydivested$440millionworthoftobaccomanufacturing-relatedholdings–oneinaseriesofresponsibleinvestingmilestones.
ButAMP’scapacitytodogoodgoeswellbeyondourFoundationandethicalinvestmentframework.Wecertainlybelievewehaveanimportantroletoplaynotonlyinthefinancialsystem,butalsointhecommunitiesinwhichweoperate.Peoplewillalwayswanttoowntheirownhomes,takecareoftheirfamiliesandretirewell.However,toachievethesealmost-universalgoalsinanincreasinglycomplexworld,mostpeopleneedhelp.
IknowAMPhasthedepthofexperienceandknow-howtoprovidethishelp,farandwide.Thebiggestbarriertodoingsoistrust.Thetrustwebuiltupoverthepast170years–withclients,regulators,shareholdersandthecommunity–waserodedin2018whentheRoyalCommissionhighlightedourseriousmistakes.
Theseissues,includingchargingcustomersfeesforservicesnotreceived,andsuperproductsthatdidnotprovidevalue,arebeingaddressed.In2018weacceleratedourremediationprogramtoensureallaffectedadvicecustomersarecompensatedasquicklyaspossible.WealsoreducedMySuperfeesfor600,000customers,whilereducingremunerationforourexecutives.
Topreventtheseissuesfromrecurring,westrengthenedourreportingandgovernancepractices,investingintechnology,controlsandprocesses.Wealsoinvestedinpeoplewhohavethetalentandwilltonavigatesignificantexternalandregulatorychange.
Havenodoubt,thelevelofdisappointmentinlettingourcustomersandcommunitydownrunsdeepwithinAMP.Yetthisgivesmeconfidencethatwewilllearnfromourmistakesandwilldoourutmosttobeworthyofourstakeholders’trust.
Trust,andhowwerespondtosocialchallenges,willbethebedrockofAMP’sfuturesustainability.IjoinedAMPatthestartofthisjourneyandunderstandwehavefartogo.ButIbelievethecommitmenttogreatertransparencyandaccountabilityisapositivestep.
Francesco De Ferrari ChiefExecutiveOfficer
CEO’s messageWelcome to AMP’s 2018 sustainability report.
AMP 2018 sustainability report4
Who we are and what we doAMP helps people to manage their finances and reach their goals.
Weoffersolutionsacrossfinancialadvice,investmentmanagement,banking,lifeinsurance,superannuation,self-managedsuperannuationfunds,retirementincomeandinvesting.
Australian wealth management:Wehelppeopletosaveforandtolivewellinretirementwithourretailandworkplacesuperannuationproducts,self-managedsuperannuationfundservicesandretirementincomesolutionsandinvestmentsforindividuals.
AMPprovidesfinancialadvicethroughournationalnetworkofemployedandself-employedadvisers.Ouremployedadvisersofferaface-to-faceadviceserviceundertheAMPAdvicebrandandaphone-basedadviceserviceunderAMPAssist/Direct.AMP’snetworkofalignedfinancialadvisersoperatewithinself-employedbusinesseslicensedandauthorisedunderAMPFinancialPlanning,HillrossFinancialServicesandCharterFinancialServices.
AMP Bank:AMPBankprovidescustomerswithresidentialandinvestmentpropertyhomeloans,depositandtransactionaccountsandSMSFproducts.Ourcustomerscanaccessourbankproductsviaavarietyofchannels,includingonline,byphoneandthroughAMPfinancialadvisers.
AMP Capital:Wemanageinvestmentsinequities,fixedincome,diversified,multi-managerandmulti-assetfundsonbehalfofclientsaroundtheworld.AMPCapitalalsomanagesrealestateandinfrastructureassetsonbehalfoffundsandclientsinAsia,theMiddleEast,Europe,theUKandNorthAmerica.
New Zealand wealth management:InNewZealandweprovidecustomerswithfinancialproductsandservices,directlyandthroughoneofthelargestnetworksoffinancialadvisersinthecountry.In2018,AMPwasthefourth-largestKiwiSaverSchemeproviderwith10%ofthetotalKiwiSavermarketandabout225,000customers.
Sold businesses InOctober2018,AMPannouncedthedecisiontodivestitsAustralianandNewZealandwealthprotectionandmaturebusinessestoResolutionLife.
– Wealth protection (life insurance):Thisbusinessprovideslifeinsurance,incomeprotectionanddisabilityinsurancesolutions.
– Mature business:Managingclosedinsuranceandsuperannuationproductsthatarenolongerbeingsold,thisbusinessismanagedforyieldandcapitalefficiency.
ThesesalesrepresentamajorstepinreshapingAMPasasimpler,morefocusedgroup.Thetransactionisexpectedtocompletebytheendofthethirdquarterin2019.
AMP 2018 sustainability report5
Resetting and rebuildingAMPfacedsignificantchallengesthroughout2018asaresultofissueswithinourbusinessandacrossthebroadermarket.Theissuesidentified–especiallythosehighlightedduringtheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry–werenotnew.Manyhadbeenidentifiedandreportedtoregulators,andactivitieswereunderwaytoredress.However,theydidfallshortofcommunityexpectationsandthestandardsweexpectofourselves.Weareaddressingthesemattersandarefocusedonensuringwedelivervalueforourshareholdersandcustomers.
Throughouttheyear,thefollowingprioritieswereidentifiedanddelivered:
– Prioritise customers and restore confidence–byremediatingcustomers,improvingvalueandsimplifyingthenumberofproductsoffered
– Transform advice–byacceleratingourAdviceImprovementProgram,meetingchangingregulatoryandconsumerexpectations,andimprovingadvisertraininganddevelopment
– Deliver portfolio review–throughthesaleofourwealthprotectionandmaturebusinesseswearebecomingasimplerbusinessfocusedonwealthmanagement,investmentsandbanking
– Strengthen risk management, internal controls and governance–byinvestingintheseareasthroughamulti-yearprogramtofurtherenhanceriskgovernance
– Maintain business momentum–byfocusingonmaintainingmomentuminachallengingenvironmentwhileprioritisingcustomersandsupportingourpeopletoperformattheirbest.
TheappointmentofChairmanDavidMurrayandCEOFrancescoDeFerrariin2018wereimportantstepsindemonstratingourabsolutecommitmenttoreinventingAMP,ourgovernancepracticesandourculture.OurboardhasgivenournewCEOamandatetotransformAMP.
Formoreinformationonourbusiness,seethe2018AMPannualreport.
Detailsonourcorporategovernancestructuresandapproachtoriskmanagementareprovidedinthe‘CorporategovernanceatAMP’statementinourannual report.
AMP 2018 sustainability report6
About this reportThe purpose of this report is to outline how we monitor and manage the risks and opportunities associated with our material sustainability issues, and to provide a snapshot of our performance in each area.
ThisreportprovidesanaggregatedviewofoursustainabilityperformanceandiscomplementedbyourdisclosurestotheCarbonDisclosureProject(CDP),theGlobalRealEstateSustainabilityBenchmark(GRESB),andAMPCapital’sreportingasasignatoryoftheUNPrinciplesforResponsibleInvestment(UNPRI).
Oursustainabilityreportformspartofourannual reporting suite,whichincludes:
– thefinancialdisclosuresinour2018annualreport
– governanceandriskmanagementdisclosuresinour‘CorporategovernanceatAMP’statement
– AMP’sannualtaxreport,availableontheAMP shareholder centre.
Report scope ThescopeofourreportcoversAMP’soperationsgloballyfortheperiod1January2018to31December2018.TheentitiesthatarewithinAMPLimited’soperationalcontrolboundaryareAMPFinancialServices,AMPCapitalInvestorsandtheirsubsidiariesandtheAMPFoundation.
ThepremisesofthealignedadvisersarenotunderAMPLimited’soperationalcontrol,andthereforetheenergyconsumptionandotherenvironmentimpactsofalignedadvisersdonotformpartofthedisclosuresinthe‘Climatechangeandtheenvironment’sectionofthisreport.
AlignedadvisersarebusinesspartnersofAMPandoperateunderourAustralianFinancialServicesLicencestoprovideservicestoourcustomers.Theyhavebeenincludedwhererelevantinthisreport.
AMP 2018 sustainability report7
Material issuesMaterial issues of greatest importance to our customers, our people and our community were identified through a business-wide assessment process in 2017.
Theassessmentprocessinvolvedreviewingandanalysingfeedbackfromacross-sectionofemployees,analysisfromourin-houseESGspecialists,analystandinvestorfeedback,reviewsofmediacoverageonfinancialservicesissuesandourcompetitors’materialityissues,feedbackfromourbusinesspartnersandregulatoryfeedbackandrecommendations.
Fromthisresearchweidentified11materialissuesofimportancetobothourbusinessandourstakeholders.
Theseissueswerere-assessedin2018inlightoftheissuesraisedbytheRoyalCommissionandfeedbackfromregulators,customersandthecommunity.Elevenissues,determinedthroughexternalguidanceonmaterialsustainabilityissuesforfinancialservices(SustainabilityAccountingStandardsBoardMaterialityMapaswellastheSustainabilityYearbook2018fromRobecoSAMAG)andpeerdisclosures,weredeemedtobeofimportanceandwerereconfirmedas:
Thisreportprovidesanoverviewof2018performanceandplannedfutureprioritiesandactions.
Our customers1.Customerexperience
2.Digitaldisruptionandinnovation
3.Cybersecurityandprivacy
4.Regulatoryandlegislativeenvironment
Our people5.Ethicalconductandprofessionalstandards
6.Inclusionanddiversity
7.Supportinganddevelopingourpeople
Our community8.Climatechange
andtheenvironment
9.Responsibleinvesting
10.Sustainablesupplychain
11.Communityinvestment
AMP 2018 sustainability report – Our customers8
1. Customer experienceThe financial services sector is a key pillar of the Australian economy.
Itisessentialthatcustomershaveaccesstoqualityfinancialproductsandservicestosecuretheirfinancialfuture,andareabletoplacetrustintheservicesreceived.Thistrustwastestedin2018bothacrosstheindustryandatAMP.
TheissueshighlightedbytheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry,includingfeeschargedtoourcustomersforservicestheydidn’treceive,superannuationproductsthatdidnotprovidethesufficientvaluetomembers,thechargingofhigherinsurancepremiumsfordelinkedsuperfundmemberswhereAMPwasnotawareofthemember’ssmokerstatus,andgrouplifeinsurancepremiumschargedtodeceasedmembers,fellshortofcommunityexpectationsandthestandardsweholdforourselves.
Wearecommittedtoresettingthebusinesssowecandeliveronourpurposeofhelpingcustomersmanageandprotecttheirwealth.
WealsowanttomakequalityfinancialadviceavailableandaffordableforallAustralians.Akeypartofthisistodeliveraconsistent,expert,proactiveandpersonalisedexperiencetoallcustomers.
In 2018…2018wasachallengingyearforAMP,withtheRoyalCommissionshowingthatwehavefallenshortofcommunityexpectationsandthestandardstowhichweholdourselves.Werecognisethecrucialimportanceofaddressingthesemattersandrebuildingtrusttoensurewedelivervalueforourcustomers.Wehavebeenworkinghardacrossthebusinesstoimprovetheexperiencecustomershavewithus,throughactionssuchasresolvingissuesinadvice,simplifyingsuperannuation,actingoncustomerfeedback,supportingresponsiblelendingandimprovingourinvestmentperformance.
Inour2017sustainabilityreport,wesetoutanumberofgoalsfor2018,includingtocontinuethecustomer-centredtransformationofourbusiness,simplifyourproductsandservicesandmakethemmoreaccessible.Whilewemadeprogressontheseobjectivesin2018,wearecontinuingtoworktowardsthem.
AMP 2018 sustainability report – Our customers9
Resolving issues in AdviceIn2017,AMPestablishedadedicatedprogramofwork–theAdviceImprovementProgram(AIP)–toaddressknownissueswithinourfinancialadvicebusiness.Itspurposeistodeliverprocess,governanceandculturalchangestostrengthenmonitoringandsupervisionintheadvicebusiness.Acceleratedin2018,thisprogramaimstoimprovetheconsistencyofcustomeroutcomesandwillenableustobettermonitorthattheadviceprovidedisinthebestinterestsofourcustomers.Furtherdetailsontheinitiativesunderwaytostrengthentheadvicebusinessareprovidedinthe‘Ethicalconductandprofessionalstandards’section.
WeacceleratedourReviewandRemediationProgramtoensureaffectedcustomersareidentified(suchasthosechargedfeesfornoservice,orthosewhoreceivedpoorqualityadvice)andappropriatelycompensatedasquicklyaspossible.WehaveagreedkeyelementsofourapproachwithASIC.Wearecommittedtoensuringallcustomersintheprogramwillberemediatedwithinthreeyears.
Theprogramaddressesbothemployedandalignedadvisers.Wehavesetasideaprovisionof$656million(pre-taxandincludingprogramcosts)toremediateourcustomers,determinedonthebasisoftheestimatedpoolofimpactedcustomers.
Simplified, better value super Wearesimplifyingoursuperannuationofferingtoprovideamorefocusedandcompetitiveofferingtoourcustomers,withfeaturesthatareclearandeasytounderstand.
Aspartofourcontinuingcommitmenttocustomers,aswellasreflectingplansforthesimplificationofoursuperannuationproductoffering,in2018weannouncedandimplementedfeereductionstoourflagshipMySuperproducts.Thisreducedfeesfor600,000existingcustomersandenhancedthecompetitivenessofourMySuperproductsuite.
Wealsobelieveintheimportanceofsupportingandimprovingthefinancialliteracyofourcustomerstohelpthemmakeinformedchoices.Thisisaprimarydriverforhowwewelcomenewcustomersandhelpthemtounderstandtheirsuperaccounts.OurWelcomeJourneyhighlightswhatcustomerscandotogetsuperbasicsright,includingunderstandingtheirinsurancecover,howtheirsuperisinvested,theimportanceofbeneficiarynominationsandhowconsolidationcanmitigatetheproliferationofaccountfees.
Acting on customer feedbackWewanttoensureourcustomers’voicesareheard.OurNetPromoterSystem(NPS)playsanimportantroleinhelpingusassesshowwellwemeettheirneedsandexpectations.In2018,weaskedmorethan450,000customersandbusinesspartnersfortheirfeedbackandmademorethan120changesinoursystemsandprocessesinresponse.NPSisalsoaperformancemeasureinAMP’sshort-termincentivebonusassessmentforsomeemployees.
AMP 2018 sustainability report – Our customers10
AMP Customer AdvocateAMPcontinuestostrengthenitssupportforcustomersviatheAMPCustomerAdvocate.OneofthekeyobjectivesofthisroleistohelpcustomersoftheAustralianbusinesswhobelievethattheircomplaintshavenotbeenappropriatelyresolvedthroughAMP’susualcomplaintresolutionprocesses.Takinganindependentview,theAMPCustomerAdvocateactstoensureourcustomersreceivefairandreasonablecomplaintoutcomesandthatAMP’scomplaintsprocessesareaccessible,robustandtransparent.TheCustomerAdvocatealsoworkscloselywithseniorleadersacrossthebusinesstolearnfromtheseexperiencesanddrivebetteroverallcustomerexperiencesandoutcomes.
2018sawthefunctionscalerapidlytoaformalOfficeoftheCustomerAdvocateteam,withsoundprocessesandwellestablishedrelationshipsthroughouttheorganisation.Wearecontinuingtoenhancethegovernanceandassuranceofcomplaints,includingincreasingtransparencyandreportingofcomplaintsuptotheAMPLimitedBoard.
Responsible lending Werecognisetheimportanceoftheresponsiblelendingobligationsforlendersandbrokerstoensurewearemakingsufficientinquiriesintoacustomer’srequirements,aswellastheirabilitytoservicetheloan.
Toensurewearemeetingourregulatoryrequirementsandhelpingcustomersobtainloansthatareappropriateforthem,AMPBankimplementedanumberofinitiativesin2018including:
– introducingaBrokerInterviewGuidetocapturebrokerandapplicantconversationstoensureloanpurposeandrequirementsoftheborroweraredocumentedcorrectlyandconsistently
– sendingreminderlettersatsixand12monthspriortoafixedinterest-onlyloanperiodfinishing,toalertthemtotheprincipalandinterestloancommencing.
Investment performanceAMPCapitalmanagesawiderangeofinvestments,withastrongfocusonachievingclientgoalsandexceedingbenchmarkperformance.AnexampleofabenchmarkusedbyAMPCapitalistheperformanceoftheASX200,whichisusedtomeasureperformanceformanyAustralianequityfunds.Similarbenchmarksareusedformanyofourlistedmarket(equitiesandbonds)funds.
Thisfocuscontinuedin2018,resultingin61%ofAMPCapital’sassetsundermanagementmeetingorexceedingclientgoalsoverthreeyearstoDecember2018.Theseresultsaresupportedbycontinuedstrengthinrealassets,withAMPCapitalInfrastructureinvestmentsmeeting100%ofclientgoalsandRealEstateinvestmentsmeeting98%ofclientgoalsoverathree-yearperiod.Whiletheperformanceofmulti-assetbalancedfundsimprovedin2018,itremainedimpactedbylowerexposuretounlistedassetsversuspeerfunds.
AMP 2018 sustainability report – Our customers11
Future outlookOurnewCEOhasaclearmandatetodrivechangeanddevelopastrategytoresetAMPtobecomeasimplerbusinessfocusedonwealthmanagement,investmentsandbanking.Thiswillbesupportedbystrengthenedriskmanagement,internalcontrolsandgovernance.
In2019,wewillleverageourcapabilitiestoengageandserviceourcustomers,andcontinuetoworkonadviceissuesandthecustomer-centredtransformationofourbusiness,includingproductandplatformsimplification.
Wewillcontinuetoprioritiseandaccelerateouradviceremediationprogramtoensureallaffectedcustomersareappropriatelycompensated.
TheAMPCustomerExperienceTeam–whichhelpsinternalteamsenhancethecustomerexperience–andtheCustomerAdvocatewilldrivetheidentificationandresolutionofsystemicissuesacrosstheorganisation,implementingenhancedgovernanceandassuranceoftheAMPCustomerComplaintsFramework,anddevelopinganddeliveringtheAMPGroupVulnerableandDisadvantagedCustomerPrinciplesandPolicy.
Wewillalsofocusonstrengtheningresponsiblelendingprocessesbyintroducingcomprehensivecreditreporting,improvingourverificationrequirementsandimplementingchangesinresponsetochangingregulatoryrequirementsonresponsiblelendingconduct.
In 2018…
Metric Value
CustomersassistedbytheAMPCustomerAdvocate1 536
ComplaintreviewscompletedbytheAMPCustomerAdvocate 136
Complaintreviewsresolvedinfavourofthecustomer2,3 54%
Enhancedresolutionforthecustomer 14%
Newoutcomeforthecustomer 40%
ChangesmadetooursystemsandprocessesinresponsetoNPSfeedback 120
Numberofsuperannuationcustomerswhosefeeswerereduced 600,000
AMPCapitalassetsundermanagementmeetingorexceedingexpectations 61%
AMPCapitalInfrastructureinvestmentsmeetingorexceedingclientgoals 100%
AMPCapitalRealEstateinvestmentsmeetingorexceedingclientgoalsoverathree-yearperiod 98%
1 CustomerswhohadtheirconcernsresolvedbyAMPfollowingassistancefromtheAMPCustomerAdvocate.2 CalculatedasapercentageofcomplaintreviewscompletedbytheAMPCustomerAdvocate.3 Percentagerepresentsthesumof‘Enhancedresolutionforthecustomer’and‘Newoutcomeforthecustomer’.
AMP 2018 sustainability report – Our customers12
Digitaltransformationisdrivingfundamentalshiftsinhowfinancialserviceprovidersoperateinacompetitivelandscape.
Astechnologicalchangesenableustoimproveandinnovateourproductsandservices,customerexpectationsarealsoevolving.Tokeeppacewithexpectationsandleveragethepossibilitiesofdigitaltransformation,theneedforAMPtoinnovateisgreaterthanever.Ourgoalistodevelopanddeliverdigitalcustomerexperiencesthatarepersonalised,effortlessandproactive,andhelpusbuildmoredirectrelationshipswithourcustomers.
Itisimperativethatweensureourproductofferingsareeasytoaccessanduseinthefaceofcontinueddigitaldisruptionintheindustry.
In 2018…Withtheintroductionofopenbankingandagrowingfintechsector,2018sawsignificantdigitaldisruptioninthefinancialservicesindustry.Weknowconsumersarelookingformarket-leadingsolutionsthataresecureandspecifictotheirfinancialneeds.AMPisrespondingtothetechnicalchangesrequiredwithkeyprograms,includingGoals360,onlinetoolstohelpmanagewealthandartificialintelligence(AI)foronlineinteractions.
Ourgoalsfor2018wereto:extendourAMPGoals360modellingplatform,continuetoexplorenewtechnologies–includingAIandvoiceactivation–tosimplifyprocessesandprovidegreateraccesstofinancialadvice,toolsandservices,andsharebusiness,technologyandsocialinnovationideasatthe2018Amplifyfestival.
Goals 360In2018,AMPcontinuedtoenhanceitsAMPGoals360platform.LaunchedinDecember2017,Goals360isaninnovativefinancialplanningexperiencethathelpsourcustomersexplore,plan,trackandrealisetheirfinancialgoalsinavisualandpersonalisedway.
Goals360wonmultipleawardsin2018.Theseincludedfourawardsatthe60thanniversaryoftheGoodDesignAwards,includingtheprestigiousBestinClassforDesignStrategy,aswellasanawardfromChantWestforBestFund:Innovation.
Wecontinuetoimprovetheuserexperience.Forinstance,apilotprogrambeganinearly2018focusedonremotedeliveryofservicestocustomerswhocannoteasilyvisitanadviserinperson.Customerscanmeetwiththeiradviserviacomputerormobilephone,usingvideochatandscreensharing.Thisenablesadviserstoprovideasimilarexperiencetoanin-personvisit.
2. Digital disruption and innovationAdvances in technology are rapidly changing the way we live, work and interact to an extent that would have been hard to imagine 20 years ago.
AMP 2018 sustainability report – Our customers13
Improved online tools and experienceIn2018,wedeliveredtherefinedfinance-trackingmobileMoneyManagertoolandintroducedanewmicro-budgetingelementtomakemoneymanagementeasierforourcustomers.Wedevelopedthesetoolsbyapplyinghuman-centreddesignconceptstoensureourdigitalserviceiscustomer-focused.
WelaunchedMoneyManagerandmicro-budgetingwithinourcoremobileapplication,MyAMP,whichenablescustomerstohaveanoverallviewoftheirfinances.Withthisnewfunctionality,userscantracktheirspendingbycategories,includingtravel,entertainmentandfood.MoneyManagerautomaticallycategorisesthesetransactionsandcustomersareabletotracktheirspendingacrossthemonth.Sinceitslaunch,wehaveseenasignificantuptakeinourcustomersusingmicro-budgeting.
Inaddition,ourAIClicktoChatprogramwasimplementedfromMaytoOctober2018acrossthewebsiteandwithinMyAMPtodevelopmorepersonalisedexperiencesandanswercustomers’frequentlyaskedquestions.
AMPhasbeenusingAIanddataanalyticsforsometime.Ourwealthmanagementbusinesshasintroducedanalyticstobetterpredictretirementoutcomesforcustomers–showingcustomersinreal-timehowtheirsuperannuationandinvestmentswillaccumulate,andthesortofretirementtheywillbeabletoafford.Wearealsousinganalyticstodetectneworunexpectedactivityfromcustomersthatmayindicatetheyneedoursupport.
Amplify 2018Sinceitslaunchin2005,ourAmplifyinnovationfestivalhasgrowninsizeandreach.In2018,2,446attendeesfrommorethan420Australiancompaniesaccessed30oftheworld’sboldestthinkers.Amplify2018exploredemergingtrendsacrossbusinessmodels,technology,customerexperience,robotics,artificialintelligence,innovationanddisruption.Moreinformationcanbefoundatamp.com.au/amplify.
Future outlook Wewanttoutilisebest-in-classtechnologytoenableefficientprocessesanddeliverahigh-qualitycustomerexperience,includingbroadeningaccesstofinancialhelpbeyondface-to-faceadvice.
Wewillcontinuetoputcustomerneedsattheheartofourtechnologicaldevelopments,includingapplyinghuman-centreddesigntoensuretheonlinetoolsandinteractionsarepersonalised,effortlessandproactive.TheAustralianfinancialservicesindustryisbeingdisruptedandconsumerbehaviourswillchangeinthecomingyears.AMPwillleveragedigitaldevelopmentssowecanservicecustomersofthefuturemarketplace,whiledeliveringasecuredigitalexperienceforourcustomers.
In 2018…
Metric Value
NumberofGoals360sessionscompletedin2018 11,361
TotalcustomersusingMyAMPatendof2018 341,400
TotalMyAMPAppdownloadsatendof2018 92,306
GoodDesignAwardsforAMP’sGoals360 4
AMP 2018 sustainability report – Our customers14
Itiscriticalthatwecontinuallystrengthenourcybersecuritynetworkandhavedetective,preventativeandresponsivecontrolsinplacetoensureoursystemsandcustomerinformationareprotected.
CybersecurityandprivacyareoftheutmostimportancetoAMP,asourbusinessiscentredaroundcustomersprovidinguswithhighlysensitiveinformation,includingpersonaldetailsandfinances.
Peopletrustustosecuretheirpersonalinformationanduseitonlyforthepurposestheyexpect,andwearecommittedtoensuringoursystemsandprocessesmeetthisexpectation.AMP’sprivacypoliciesandstatementssetouthowandwhywecollectanduseinformationandthemeasureswetaketoprotectthepersonalinformationwereceivefromcustomersandshareholders.
In 2018…Ourkeyfocusthroughouttheyearwasonraisingtheprivacyanddatasecurityawarenessofouremployees,improvingcybersecuritycontrolsandensuringappropriatereportingandremediationofdatabreaches.
Ourgoalsforthisissuein2018wereto:continuetobuildastrongcybersecuritycultureandmaintainourdatabreachresponseplan,enhanceourcapabilitiestoensureourcontrolsremaineffectiveandbuildawarenessamongemployees
aboutchangestomandatorydatabreachreporting.Asoutlinedinthissection,wehaveundertakenanumberofinitiatives,showingstrongprogressioninourjourneytowardsachievingthesegoals.
CustomerprivacyisapriorityatAMPand,assuch,weconductouractivitiesinlinewiththedetailedcommitmentsinourprivacypolicy,availableatamp.com.au/privacy.
Raising privacy awarenessIn2018,evolvingfromourexistingteamofprivacyofficers,weestablishedaPrivacyOfficethatisfocusedonensuringpersonaldataisprotectedthroughouttheAMPGroupwhereverpersonalinformationisprocessed.
Inthepastyear,wefinalisedandbeganrollingoutourPrivacyImpactAssessmentFramework,whichisoverseenandassessedbyourPrivacyOffice.Thisframeworkensuresthatprojectshandlingpersonaldatameetprivacycompliancerequirementsandappropriatelymanageanyprivacyrisks.SinceJuly2018,wehaveappliedthisframeworkto21projectsandbusinesschanges.Inallcases,thePrivacyOffice’srecommendationswereaccepted,ensuringprivacyriskswereavoidedormanagedandprivacycomplianceobligationsweremet.
Aspartofourcommitmenttoprotectingtheprivacyofourcustomersandpeople,in2018webecameaBronzeMember
oftheInternationalAssociationofPrivacyProfessionals(IAPP).Thisnon-profitprivacyprofessionals’associationenablesAMPtostayuptodatewiththelatestdevelopmentsinprivacyanddataprotection.Inaddition,wehaveacquiredIAPP’scomprehensiveprivacytraininglibrary.
WealsoupdatedourPrivacy Policy and Code of Conduct,bothofwhichcameintoeffecton1January2019.
Data security and cyber security awarenessWearecommittedtocontinuallyenhancingourcyberresilienceandrelatedcapabilities.Weregularlytest,reviewandenhanceoursecuritycapabilitiestoensureourcontrolsremaineffectiveinreducingtheimpactsofcyberincidents,aswellasmeetingincreasingregulatoryrequirements.
Weprovidetrainingtohelpouremployeesunderstandthevalueofdata,theimpactifitismishandledorexposed,aswellastheirresponsibilitiesinkeepingAMPcustomerandemployeedatasecureandconfidential.Tokeepcybersecurityknowledgecurrentandfrontofmindforouremployees,werunregularcybersecurityawarenesssessionsacrossallareasofAMPonavarietyoftopics.
3. Cyber security and privacyWhile technological advancements provide great opportunities for us to innovate and offer new digital solutions for our customers, they also bring new cyber security and privacy risks.
AMP 2018 sustainability report – Our customers15
Inaddition,theAMPCyberSecurityTeamregularlyrunsphishingsimulationsthatimitaterealattacksacrossAMP.Thisprovidesemployeeswithreal-lifeexperienceandenablesthemtoconfidentlyandproactivelyreportanythingsuspiciousforinvestigation.
Regularcybersecuritynews,adviceandinformationisalsosharedacrosstheAMPbusinessusingacybersecuritycollaborationplatform.
Reporting data breachesDatabreachesinvolvetheloss,unauthorisedaccessordisclosureofpersonalinformation.Thiscanincludeanerrorbyacompany,thatofathirdpartyormaliciousattacksbyhackers.AMPtakesprivacy,datasecurityandourobligationstoreportandnotifycustomersveryseriously.Wehavecomprehensiveincidentresponseanddatabreachresponseplans,whichensureaproactiveapproachtounauthorisedaccess,anddisclosureorlossofpersonalinformation.In2018,weextendedourdatabreachresponseplantoallAMPofficesworldwide.
ThisyearwenotifiedtheOfficeoftheAustralianInformationCommissionerofsixdatabreaches,andtheUKInformationCommissioner’sOfficewasnotifiedofonedatabreach.Thesewererelatedtomaliciousactsinthreecases,andhumanerrororsystemfaultsintheremainingfourcases.Inallcases,wenotifiedthe
impactedindividualsandtookstepstopreventfuturebreachesbyfixingsystemissues,conductingadditionaltraining,deletingorde-identifyingdatathatisnolongerrequiredandreferringanyrelevantinformationtolawenforcement.
InMay2018,theEUGeneralDataProtectionRegulationcameintoeffect.ThisregulationappliestoallpersonaldataofAMPcustomersandemployeesresidingordoingbusinesswithintheEuropeanEconomicArea.AMPhasundertakenariskassessmenttoidentifyandaddressgapsinourcompliancewiththisregulation,aswellasstepstomitigateandreduceanyriskofnon-compliance.
Wearealsocommittedtoworkingwithgovernmentsandexternalagenciestoimprovedatabreachreportingandtomitigatecyberrisks.Additionally,weareproactiveandcooperatefullywithlawenforcementtoensuremaliciouseventsareinvestigatedandresolved.AMPisanactivepartneroftheAustralianGovernment’sJointCyberSecurityCentre(JCSC)program.TheintentofJCSCistostrengthenAustralia’scybersecuritycapabilityandresiliencethrougheffectivepartnershipandcollaboration.Thejointpartnershipbetweenbusiness,government,academiaandnon-profitorganisationsprovidesparticipantswithabroadunderstandingofthethreatenvironmentandfacilitatesinformationsharingandcollaborationonsharedcybersecuritychallenges.
AMPisalsoapartnerofAustralia’snationalComputerEmergencyResponseTeam(CERT),whichistheprimarygovernmentcontactpointformajorAustralianbusinessestoreceiveandrespondtocybersecurityincidentreports.Italsosupportsandadvisesbusinessesonhowtorespondtoandmitigatecyberincidents.
Future outlook In2019andbeyond,privacyandcybersecuritywillremainintegraltoAMPandourbusinessoperations.WewillrequirethatallemployeesgloballycompleteprivacyanddatasecuritytrainingfromFebruary2019,whichforthefirsttimewillbeavailabletoouremployeesinChinaandJapanintheirlocallanguages.
Wewillcontinuetogrowourtechnicalcapabilitiesincybersecuritytoensurethatdataentrustedtousremainssecure.KeyupcominginitiativesincludeparticipatinginPrivacyAwarenessWeekinMay2019,topromoteandraiseawarenessofprivacyissuesandtheimportanceofprotectingpersonalinformation.
Case study: Writing secure codeWeunderstandthatcybersecurityanddataprotectionarenotjusttechnology-relatedissues,andthattheactionsorinactionsofouremployeescanhaveasignificantimpactonthecyberresilienceofAMP.Forthisreason,cybersecurityawarenessandcultureareasignificantpartofourcontrolenvironment.AspartofourongoingfocusoncybersecurityawarenessatAMP,weprovideourITdeveloperswithsecurecodetrainingusingtheSecureCodeWarriorplatform.
TheintentoftheinitiativeistoempowerourITdevelopersonanongoingregularbasisandprovidethemwiththeknowledgeandskillsrequiredtowritesecurecoderightfromthestart.
Byprovidingsecurecodingskills,weachievefasterandmoresecureproductdevelopment,whilecontinuingtobuildapositivesecuritycultureatAMP.
EmbeddingsecurecodedesignintoourapplicationsupfrontnotonlyimprovesAMP’scybersecurity,butalsomakesITprojectsmoreefficientasitreducesreworklaterinthesoftwaredevelopmentlifecycleandhelpsmovesecureproductstomarketrapidly.
AMP 2018 sustainability report – Our customers16
TheregulatoryandlegislativeenvironmentisimportantforAMPasitsetstheboundariesandtherulesinwhichourbusinessoperatesandourcustomersareserved.Failuretoeffectivelyanticipateandrespondtoregulatoryandlegislativechangesadverselyimpactsourreputationandbusiness–andinturn,ourcustomers,ourpeopleandourinvestors.
Wemanagethisriskbyhavingdedicatedresourcestoimplementrequiredchangeprograms,aswellasbyfrequentlyandactivelyengagingwithgovernment,regulatorsandindustrybodiestoanticipate,monitorandimplementregulatoryandlegislativechange.AMPhasalsostrengthenedourriskculturefocustoensurewearekeepingourlegalandregulatoryresponsibilitiesfrontofmindinourdailyactivities.
In 2018…TheRoyalCommissionhasbeenacatalystforchangeacrossthefinancialservicessectorandwithinAMP.Wehavealreadytakenstepstorestoretrustandconfidencewithcustomersandthecommunity,governmentandregulators.Wearealsocontributingcooperativelyandconstructivelytotheregulatory,policyandlegislativedebate.OurworkonimprovingourriskcultureisdetailedinthesubsequentsectiononEthicalConductandProfessionalStandards.
UnderActingCEOMikeWilkins,andcontinuingunderournewCEOFrancescoDeFerrari,themuch-neededprocessofresettingourrelationshipwithourregulatorshasbegunandprogresstodatehasbeenpositive.AMPsupportedtheRoyalCommission,aswebelieveastrongandstablefinancialsystemiscriticaltothenation’seconomyandtoallAustralians.Wehaveandwillcontinuetodoallwecantohelprestorethecommunity’strustandconfidenceinAMPandthefinancialservicesindustry,includingworkingtoaddresstherecommendationsfromtheRoyalCommission.
Anotherfocusisonstrengtheningourregulatoryreportingandgovernancepractices.InJuly2018,theGroupRegulatoryGovernanceTeam(GRGT)–acentralisedregulatoryengagementfunction–wasformed.TheGRGT’spurposeistolifttheconsistency,accuracyandtimelinessofreporting,increasetheself-identificationofissues,thenundertakedeeperrootcauseanalysistoensureshorterresolutiontimes.AMPalsoinvestedsignificantlyintalent,technology,controlsandprocessimprovementtoensureissuesthatcametolightin2018arenotrepeated.TheGRGThasalreadydrivengreatertransparencyofregulatorycommitmentsandinteractions,capturingvolumeandtypeofregulatorinteractioninacentraliseddepository.
Governance, Risk and Compliance (GRC) systemWeunderstandexpectationsofhowquicklywereportandmitigatebreacheswillonlyincreaseandthatnewtools,suchastheGovernance,RiskandCompliance(GRC)system,willhelpprovidestandardisation,automationandbetterdataanalyticsandreporting.TheGRCsystemisamulti-yearprogramthatwillenableAMPtomoveawayfrommultiplesystemstoonecoresystemtoraiseandmanageincidents,issues,breaches,risks,controlsandcomplianceobligationsacrosstheAMPgroup.
PartofAMP’sServiceNowplatform,itprovidesinbuiltworkflowsandnotificationsthatensureweunderstandandmanageincidents,breachesandissuesinawaythatisconsistentwithourthreelinesofdefencemodel.Itwillalsoprovideuswithaclearerviewoftheeventsandproblemareasthatimpacttherisksfacingourorganisation,andtheactivitiesundertakentocontrolandmanageourrisksandtocomplywithobligations.Thefirstmodule(Incident,IssuesandBreachManagement)hasbeenimplemented.ItwillbefollowedbyRisksandControls,ComplianceManagement,BusinessContinuityManagementandInternalAuditManagementmodules,whichwillbedeliveredacrossmultiplephases.
4. Regulatory and legislative environmentThe financial services sector has experienced considerable regulatory and legislative change in recent years, as well as media and political scrutiny.
AMP 2018 sustainability report – Our customers17
Regulatory and legislative change approach ItisvitalthatAMPparticipatesinpolicyandlegislativedevelopmentsthatimpactourcustomersandthevariousAMPbusinessunits.Wehaveadedicatedteamtomonitorandactivelyrepresentourcustomersandstakeholdersonthecomplexlegislativeframeworkthatimpactsthefinancialservicesindustry,aswellasimportantdiscussionsonthepotentialoutcomesforbankingproducts,retirementincomes,lifeinsuranceandfinancialadvice.
In2018wecontributedtomanyoftheseimportantpolicyandregulatorydevelopmentsby:
– makingsubmissionstotheAdvice,Superannuation,LifeInsuranceandPolicyroundsoftheRoyalCommission
– activelyengaginginandprovidingfeedbackonsignificantlegislativeandregulatoryreforms,includingtheDesignandDistributionObligationsandProductInterventionPowerreforms,thesevenFASEAStandardsforprofessionalisingthefinancialadviceindustryandtheProtectingYourSuperPackage,introducedaspartofthe2018FederalBudget
– incorporatingchangesrecommendedbytheAustralianFinancialComplaintsAuthority(AFCA)intosystemsandprocesses,inparticular,viaAMP’sCustomerAdvocatefunction
– ensuringcompliancewiththeobligationssetoutintheBankingExecutiveAccountabilityRegime(BEAR)withinAMPBankbythe1July2019deadline
– examiningandconsideringapplicabilitytoAMPoftherecommendationsoftheProductivityCommissionInquiryintoSuperannuation:AssessingEfficiencyandCompetitivenessandactivelycontributingtothedebateonthefutureofsuper
– reviewingtheoutcomesoftheProductivityCommissionInquiryintoCompetitionintheAustralianFinancialSystem
– takingstepstocomplywiththeUKModernSlaveryAct2015,whichrequireslargecompaniestobetransparentabouttheireffortstoeradicateslaveryandhumantraffickingintheirsupplychainandanypartoftheirbusinessandconsideringtheimplicationsofthenewAustralianModernSlaveryAct
– engagingwithindustrybodiesmorebroadly–AMPisanactiveparticipantinmultipleindustryforums,suchastheAssociationofSuperannuationFundsofAustralia(ASFA)andtheFinancialServicesCouncil(FSC).
AMPoperatesinmultiplejurisdictionsaroundtheglobe.EachoneofthesejurisdictionshaslegislativeandregulatoryrequirementsthatAMPiscommittedtomeeting.
Future outlook 2019willbeanotheryearofsignificantregulatoryandlegislativechange.AMPwill:
– workconstructivelywiththegovernment,regulators,advisers,trusteesandotherbodiestoensurethat,astherecommendationsmadeintheRoyalCommissionFinalReportmoveintodefinitivelegislativereform,theoutcomesareclear,simpleandmeetthebestinterestsofcustomers
– ensurewecomplywithournewobligationsascontainedintherecentlypassedModernSlaveryAct2018
– embedtheGRGT’soperatingmodelwithinAMPandcontinuetogrowthecapacityoftheteam
– expandourfocustoincludeallregulatorsandentitieswithregulatoryfunctions(forexampleAFCA,theOfficeoftheAustralianInformationCommissionerandtheAustralianCompetitionandConsumerCommission).
AMP 2018 sustainability report – Our people18
Inordertoearnbackthetrustofcustomers,shareholders,regulatorsandthecommunity,wemustcontinuetoimprovetheculture,governance,accountabilityandinternalprocessesacrossthegroup.Ensuringthatourpeopleandadvisersoperateethicallyandtohighprofessionalstandardsiscriticaltoearningbacktrust.
Wewanttomeetcommunityexpectationsandactinthebestinterestsofourcustomers.Wehavemoretodoandwearecommittedtodoingit.
In 2018…Wetookavarietyofmeasurestostrengthenourconduct,andfocusonourcustomers’bestinterests,includingstrengtheningourriskmanagement,cultureandgovernanceprocesses.WealsoreviewedandupdatedourCodeofConduct,andenhancedourwhistleblowertrainingandsupportedqualityadvice.
Goodconductiscoretoourculture,aseveryoneofouremployeesisrequiredtoconductthemselvesethicallyandprofessionally.In2018,severalculturalissueswereidentified,whichresultedinacommitmenttoculturalreform.ThisreformisdrivenfromthetopofourorganisationandisnowledbyournewCEOandChairman.
Wesetoutthefollowingobjectivesfor2018:supportAMP-alignedadviserstomeettheFinancialAdviserStandardsandEthicsAuthority’seducationrequirements,continuetoprovidetools,trainingandexpertsupporttoadvisersandcontinuetopromoteourWhistleblowingPolicytoAMPemployeesandadvisers.Initiativeswerethendevelopedtosupportprogressontheseobjectives,whicharenotedinmoredetailinthissection.Theachievementoftheseobjectivesisanongoingpriorityforourbusiness.
Strengthening our risk management, culture and governanceInMay2018,AMPestablishedaprogramtochangehowwedobusinesstobettermeettheexpectationsofourstakeholders.Duringtheyear,theprogramfocusedontheactivitiesneededtorespondtoissuesraisedattheRoyalCommission,includingacceleratingremediationofclients.
In2018,AMPcompletedanAPRAself-assessment.Wehavesincecommissionedanindependentinvestigationintoemployeeconductinouradvicebusinessandanindependent,enterprise-widereviewofriskgovernance,controlsandculture.Asaresult,wenowhaveahighlyprioritisedprogramofworktoaddresstherecommendations.
Aspartofourcommitmenttostrengtheningriskmanagement,riskculture,internalcontrolsandgovernanceacrossAMP,weareinvestingapproximately$50million(pre-tax)perannumfortwoyearstoenhanceriskgovernance.Majorongoinginitiativesaspartofthisprograminclude:
– improvingthedesignandimplementationofthethreelinesofdefencemodeltoenhanceclarityandexecutionofriskresponsibilitiesandaccountabilities
– furtherdevelopingandembeddingtherisk-managementframeworkspoliciesandproceduresforthemanagementofriskandcompliance
– improvingthesystemsanddata-managementinfrastructuretosupportriskmanagementandconsistentriskandreturndecision-making
– strengtheningprocessesandtheinternalcontrolenvironmenttoimproveoperationalrisksandcompliance.
Code of Conduct and trainingAMP’sCode of Conductisourcommitmenttoactingethicallyandresponsibly.Itoutlinestheminimumstandardsofbehaviour,decision-makingandourexpectationsforthetreatmentofemployees,customers,businesspartnersandshareholders.
PoliciesthatcomplementAMP’sCodeofConductincludethoseoninclusionanddiversity,anti-moneylaunderingandcounter-terroristfinancing,conflictsofinterestandmarketdisclosure.
In2018,wereviewedandupdatedourCodeofConduct,inordertoprovideclaritytoeveryoneatAMPonhowtomeetourstandardsonaday-to-daybasis.KeychangesmadetotheCodeinclude:aclearerarticulationoftheCodeprinciples,
additionaldetailonreportingbreachesandmoreclearlyoutliningtheexpectationsofourleaders.Inaddition,thereisnowadedicatedpageforeachprinciple,whichincludesillustrativecasestudiesandexamples,detailsonconsequencesofbreachingtheCodeandlinkstorelatedAMPpolicies.
TheCodeprinciplesoutlineourcommitmenttohowweworkeveryday:
1. Weactprofessionallywithhonestyandintegrity
2. Werespectandvaluedifferencesandcreateasafeworkingenvironment
3. Weidentifyandmanageanyconflictsofinterestresponsibly
4. Werespectandmaintainprivacyandconfidentiality
5. Wecomplywithourlegalandregulatoryobligations,internalstandardsandpoliciesanddealwithbreachespromptlyandappropriately
Wealsodeployedawarenesstrainingandleadercommunications,includingcasestudiesandleader-facilitatedteamdiscussions,tobringtheCodetolifeforouremployees.Associatedonlinetraining,knownastheWorkingatAMPlearningmodule,wasalsoupdated.
Settingclearconductexpectationsforemployeesisoneleverforensuringconsistentethicalconductthroughouttheorganisation.AMPemployeesarerequiredtocompletemandatorytrainingmoduleseverysecondyearaftertheirstartdate.TheseincludePreventingFinancialCrime,WhistleblowingandPrivacy.
WhistleblowingWeencourageandsupportresponsiblereportingofactualorsuspectedillegal,unacceptableorundesirableconduct.AMP’sWhistleblowingProgramprovidesasecurechannelforpeopletoreportunacceptablebehaviourandprovidesassurancethatconcernswillbeinvestigatedinanobjective,independentandconfidentialmanner,withappropriatecorrectiveactiontakenwhereconcernsaresubstantiated.
5. Ethical conduct and professional standardsTrust in the financial services sector, including AMP, has been eroded through the findings of the Royal Commission.
AMP 2018 sustainability report – Our people19
In2017,weintroducedYourCall–anindependentandconfidentialexternalservicewherepotentialwhistleblowerscanregistertheirconcernsandreceiveadvice.Toensureallemployeeswereawareofandcomfortablewithusingtheprogram,in2018werolledoutmandatorytrainingonhowtousetheYourCallservice,witha95%completionrateachievedbytheendoftheyear.
In2018,therewere20whistleblowingissuesraised.SeventeenofthesewereraisedviaYourCallandthreereceiveddirectlybyourWhistleblowingProtectionOfficer.Ofthese20issues:
– 12wereinvestigatedandwerenotsubstantiated
– fourwereinvestigatedandsubstantiated,resultinginappropriateconsequencesbeingapplied
– fourremainunderinvestigation.
Wewillcontinuetopromotethisprogramtoallemployees,AMP-alignedadvisers,contractors,consultants,suppliers,thirdpartyproviders,secondees,advisers,brokers,auditorsandformeremployees,includingextendingtrainingonhowtousetheYourCallserviceforournon-executivedirectors.AMP’sWhistleblowingProgramisalreadywellplacedtocomplywiththenewWhistleblowerProtectionlegislationthatwillcomeintoeffectinthesecondhalfof2019.
MoreinformationonAMP’sCodeofConductandWhistleblowingPolicyisavailableatamp.com.au/corporategovernance.
Supporting quality advice Goodfinancialplanningisessentialforindividuals,familiesandforourcommunitymorebroadly.Mostadvisersactinthebestinterestsoftheircustomers,butwerecognisetherehasbeenasmallminoritywhohasnot.Weareworkinghardtomakesignificantimprovementsacrossouradvicebusinesstoensureouradvisersfocusonsupportingcustomersandmeetthehighestethicalandprofessionalstandards.That’swhywehaveinvestedsignificantlyinmakingqualityadvicemoreaccessible,moretransparentandmorecompliant.
In2018wefocusedonreviewingadviserconductandthequalityofadviceprovidedtocustomers,aswellasincreasingtheamountofmonitoringandsupervisionofadvisers.Bymakingimprovementsinourgovernancestructuresandstrengtheningthecontrolenvironment,wehavebeenabletomorequicklyidentifyinappropriatebehaviourandtakestepstoeitherexitorprovideadditionalsupporttoadvisersasappropriate.
Oneoftheimprovementsintroducedhasbeentheroll-outofAudit2.0–animprovedwaytoauditadvicetoensureitisinthebestinterestsofthecustomerandcomplieswiththelawandregulatorexpectations.Wehaveusedtheresultsfromthisprogramtoworkwithadviserstounderstandtherootcauseofauditfailuresandidentifyhowtheycanimprove.
WehavealsointroducedanewBalancedRiskProfile,whichtakesintoaccountalltheinformationwehaveabouttheadviceouradvisersdeliver,includingauditoutcomes.
Wewanttounderstand:
– whichadvisersareconsistentlydoingagoodjobofdeliveringadviceandfocusonhelpingtheirclientstoachievebetteroutcomes
– whichadvisersarewillingandabletodobetter,butneedfurthersupportandguidance
– whichadvisersareconsistentlyunableorunwillingtooperateattherequiredstandards.
Wewillterminateadviserswhocommitfraudormisconduct,whointentionallyorknowinglybreachtheirbestinterestdutytoclients,orwhoareunableorunwillingtoconsistentlyperformtotherequiredstandards.
Adviser training OurAdviceImprovementProgramdevelopedalearningstrategyforAMPadviser-facingemployees,AMPadvisersandAMP-alignedadvisers,resultinginthedevelopmentofsixnewlearningmodules:Scopeofadvice,Conflictsofinterest,Adviceappropriateness,Productadvice,PersonalinsuranceadviceandExecution-onlytransactions.ThemoduleswerereleasedbetweenMayandAugust2018andweredeliveredthroughablendedlearningapproachthatincludedonlinee-learning,webinarsandface-to-faceprofessionaldevelopmentdayworkshops,withadditionalsupportprovidedthroughlivewebinarcoachingsessions.Toensureahighlevelofunderstanding,apassmarkof100%wasrequiredforeache-learningmodule.
AMP 2018 sustainability report – Our people20
Despitethesestrictrequirements,therewasa98%completionrateforAMPandalignedadvisers,anda96%completionrateforAMPadviser-facingstaff.
Compliance with Financial Adviser Standards and Ethics AuthorityTheFinancialAdviserStandardsandEthicsAuthority(FASEA)wasestablishedinApril2017tosettheeducation,trainingandethicalstandardsforfinancialadviserslicensedunderAustralianlaw.AMPiscommittedtogivingouradvisersaclearpathwaytoFASEAcompliance.Asof1January2019,newentrantsintothefinancialplanningindustryrequireaFASEA-approveddegree(orhigher).ToensureallnewfinancialadvisersintheAMPnetworkareappropriatelycertified,AMPoffersaGraduateCertificateinFinancialPlanningqualification,whichcanbeusedforentrytotheFASEA-approvedMasterofFinancialPlanningqualificationatGriffithUniversity.
Existingadviserswillhaveuntil31December2023toensuretheycomply.Weunderstandthatreturningtostudywhilerunninganadvicepracticecanbechallenging,whichiswhywehavebuiltflexibilityintoourcourseprograms.
Weofferatwo-to-four-yeargraduatediplomaforexistingadviserswhodonothaveadegreeorwhosedegreeisnotinanadvice-relateddiscipline,andaone-to-two-yeargraduatecertificateforAMPadviserswithadegreeinarelateddiscipline(suchasaccountingoreconomics)whoareeligibleforrecognitionofpriorlearning.Wealsoofferafree,onlinetrainingcoursetoprepareAMPadvisersforpostgraduatestudy.
Currently,allofouradvisersareworkingtowardsfullFASEAcomplianceandwewillcontinuetomonitortheirprogressagainstthestipulatedparametersforeachFASEAstandard.
Adviser Pathways ProgramIn2018welaunchedtheAdviserPathwaysProgramforthosewhowanttobecomeafinancialadviser.Thisisablendedlearningexperienceofprofessionaldevelopmentandeducation.
Theprogramisopentograduateswithadegreerelevanttofinancialadviceandtothoseseekingacareerchange.
Theprogramhasfourphases:
– asix-monthfoundationaltrainingwithourCustomerEngagementteam
– asix-weekintensiveblendedlearningsolutionconductedthroughapartnershipbetweenGriffithUniversityandAMPAdviserAcademy–theeducationbodywithinAMPthatdeliversprofessionaladvisertrainingandeducationthroughtheAdviserPathwaysprogram
– a12-to-18-monthplacementinAMP’sphone-basedadviceteam
– afinaloptionalphaseofa12-monthface-to-faceadviceplacement.
Thebenefitsofthisprogramincludeongoingcoachingandmentoring,comprehensiveandflexibletraining,remunerationandongoingdevelopmentopportunities.
AsofDecember2018,AMPhad2,567advisersincorelicensees,whichwaslowerthan2017–largelyduetoexitsfromtheindustryincludingretirements.Duringtheyearweincreasedourfocusonreshapingtheadvisernetwork,shiftingtheemphasisfromadvisernumberstoproductivity,professionalismandcompliance.
In 2018…
Metric Value
Commitmenttostrengthenriskmanagement,internalcontrolsandgovernance $100m (over two years)1
Adviserscompletingmandatorytraining,includingCodeofConductandethics 98%
EmployeescompletingMyCallwhistleblowingprogramtraining 95%
Employeescompletingmandatorytraining,includingCodeofConductandethics2 97%
IssuesraisedthroughtheAMPWhistleblowingProgram 20
– IssuesdirectedtotheYourCallexternal,confidentialservice 17
– IssuesdirectlyreceivedbyourWhistleblowingProtectionOfficer 3
– Issuesinvestigatedthatwerenotsubstantiated 12
– Issuessubstantiated,resultinginappropriateconsequences 4
– Issuesstillunderinvestigation 4
RetailBankingRemunerationReview(Sedgwick)reportrecommendationsdeliveredon,orinthefinalstagesofbeingdeliveredon
24
1 Pre-tax.2 Asat31January2019.CompletedbyindividualsontheAMPpayroll,includingemployeesandtimeandmaterialscontractors.
AMP 2018 sustainability report – Our people21
Supporting study and research of financial advice at universitySince2014,wehavesupportedGriffithUniversity’sMasterofFinancialPlanning–adegreethatincludesAMP’sAdviserAcademy’sFinancialPlanningSkillsunit.
GriffithUniversityhasanewundergraduatedegree,theBachelorofAppliedFinancialAdvice,startingin2019.WeareprovidingAMPNewEntrantscholarshipstosupportstudentsundertakingFinancialPlanningstudiesandAMPAdviserAcademyScholarshipsforpostgraduatestudents.
AMPhasalsojointlyfundedaResearchFellowroleatGriffithUniversity.Topicsofresearchmayincludefinancialadvicequality,professionalstandards,regulatoryreformandconsumerbehaviour.
WecontinuetoruntheAMPUniversityChallenge–anationalfinancialplanningcompetitiontoidentifynewtalentandpromotehighstandardsofeducationandprofessionalismamongthenextgenerationofadvisers.In2018–itseighthyear–181studentsin83teamsparticipatedinthechallenge.
Sedgwick review recommendations for retail bankingThefinalRetailBankingRemunerationReviewreportbyformerPublicServiceCommissionerStephenSedgwickwasreleasedin2017.Approximately40recommendationsweredevelopedfromthatreview,aswellasfromrelated2017ASICandCombinedIndustryForum
reports,tochangeremunerationstructuresinretailbankstobemorealignedtocustomerneeds.
Bytheendof2018,AMPBankhaddeliveredorwasinthefinalstageofdelivering24oftherecommendations.Examplesinclude:
– changingemployee(frontline,middleandseniormanagers)remunerationwithregardstothevariablerewardpayment.Thisincludednotlinkingmorethan33%ofrewardtosales,ensuringthatthevariablerewardrepresentedasmalleramountthanthefixedportioncomponentandintroducingbalancedvariablerewardmetrics
– reviewingthecultureandperformance-managementsystemstoensurethereisnobiastosalesoverethics
– clarifyingtherelationshipandgovernanceofthirdpartyintroducers,removingvolume-basedincentives,changingcommissionstructuressoasnottodirectlylinktoloansize,implementingclearerdisclosuresofownershipstructuresandgreatergovernancewithregardsto‘softdollar’benefits(benefitsotherthanabasiccashcommissionoradirectfee).
Oftheremaining16recommendations,fivearenotapplicabletoAMPBank,leaving11tobedeliveredin2019.Theserelatetogreatergovernance,oversightandreportingforlenders,withregardstomortgagebrokers,andwillinvolveworkingwithotherindustryparticipants,aspartofourmembershipoftheCombinedIndustryForum.
Future outlook Asthemeasuresputinplacein2018takeeffect,our2019objectivesareto:
– workconstructivelywiththegovernment,regulators,advisers,trusteesandotherbodiestoensurethatoutcomesofourchangeprogramsareclear,simpleandmeetthebestinterestsofcustomers
– continuetostrengthenriskcultureacrosstheenterpriseandreinforceprofessionalandethicalstandardsexpected
– prioritiseactiontostrengthenriskmanagement,controlsandgovernanceacrosstheenterprise,includingupliftingcapability,enhancingtheframeworks,proceduresandtoolsusedtoensureeffectiveoutcomes
– evolveandrefinetheBalancedRiskProfileduring2019,guidedbyfeedbackandadditionalmetricsaswecontinuetotestandlearn
– promoteourupdatedpoliciesinternallyandensureallAMPemployeesandadvisersareawareof,andcomplywith,appropriateexpectations
– provideadditionaloptionsforcompliancewithFASEAforcurrentandfutureadvisers
– supportadvicestandardsthroughNewEntrantScholarships,ourcontinuingrelationshipwithGriffithUniversityandthe2019AMPUniversityChallenge.
Case study: Partnering with The Ethics CentreIn2018,wedeepenedourpartnershipwithTheEthicsCentreaspartofourcommitmenttoensuringouradvisersandemployeesmeetthehighestpossibleethicalandprofessionalstandards.Thisindependentnon-profitwasengagedtotrain,assessandaccreditinternalAMPcoachesasfacilitatorsofitsEthicalProfessionalProgram(EPP).TheEPPisalearninganddevelopmentcoursethatgivesfinancialservicesprofessionalspracticaltoolstohelpthemmakeethicaldecisionsintheworkplace.
Investingindevelopingthiscapabilityin-housesupportsthecreationofanethics-baseddecision-makingframework.Owningthedeploymentmodelin-housegivesustheopportunitytoembedtheprograminouroverarchinglearninganddevelopmentframeworkandotherinitiatives,suchasinductionandonboarding.Andthestrategicpartnershipreconfirmsourcommitmenttoethicalconduct,TheEthicsCentreandtheEPPinaformatthatisscalableforAMPandouradvisers.Sixty-twoadvisersandemployeescompletedthe2018programandwearecurrentlyinplanningtoextendthisprogramin2019.
AMP 2018 sustainability report – Our people22
Webelieveinaworkplacethatvaluesdifferenceandencouragesflexibilityandinclusion.Thisiscriticaltoourabilitytodeliveroutstandingresultsforcustomersandourshareholders.Wedonottoleratebullying,discrimination,harassment,victimisation,unreasonableorunlawfulbehaviourorunsafeworkpractices.
AsitisimportantforAMPtohaveawiderangeofideasandpeopletodelivertoourdiversecustomerbase,ensuringeffectivemanagementofinclusionanddiversityissuesiskeytothesuccessofAMP.Thisiswhywehavededicatedteamsdrivinganumberofinitiativestohelpachieveourself-setdiversitytargets.
In 2018…Despiteachallengingyear,wecontinuedtoimproveourapproachtoinclusionanddiversitybydevelopingnewinitiativestohelpmeetourcommitmenttogenderanddiversity.ThekeyfocusareasofinclusionanddiversityatAMParegenderequality,flexibleworking,ourAMProudinitiativeandencouragingdiversity.Keyinitiativesof2018includeanupdatedCode of ConductandInclusionandDiversityPolicy,andaredevelopedInclusionandDiversitySurvey.
Ourinclusionanddiversitygoalsfor2018weretoworktowardsachievinggenderparityinAMP’smiddleandseniormanagementby2020andtoincreaseourfocusonflexibleworkforouremployees.Ourflexibleworkinginitiativewascompletedacrossthebusinessin2018.However,limitedprogresswasmadewithregardtoourgenderparitygoals,whichhasspurrednewinitiativestodriveimprovementin2019.
Building a diverse workplaceIn2018,weredevelopedourInclusionandDiversitySurveyforlaunchinearly2019.Thissurveyaimstohelpusunderstandmoreaboutourpeople,whattheirexperienceofbelongingatAMPisandwhatwecandotomakeitagreatplacetoworkforeveryone.
WealsoworkedwiththeDiversityCouncilofAustraliatoidentifyandembedsevenbest-practiceinclusionanddiversityprinciplesforrecruitment.TheseprinciplesarenowinuseinsomedivisionsandwillberolledoutacrossAMPin2019.Theywillimproveourabilitytoattract,interviewandhireadiversepoolofsuitablecandidatesandultimatelyliftAMP’sperformance.
Therecruitmentprinciplesare:
1. Gender-balancedcandidateshortlists
2. Gender-balancedinterviewpanel
3. Allrolesadvertisedasflexible
4. Usethegenderdecodertooltoreviewjobadvertstoensuregender-neutrallanguageisused,whichavoidsoverlymasculineorfemininelanguageanddescriptors
5. Consideralladvertisingplatformsavailable
6. Dotherightthingbyunderrepresentedgroups–beopentoadaptingrecruitmentprocessestosuitcandidatesfromunderrepresentedorminoritygroups(includingneurodiversepeopleandpeoplewithphysicaldisabilities)whomayrequiredifferentintervieworonlineassessmentarrangements
7. Askforsalaryexpectationratherthancurrentsalary.
InNewZealand,AMPreceivedtheRainbowTick–acertificationthatrecognisesourfocusonbeingadiverseandinclusiveworkplaceforpeopleofdifferentgenders,sexualities,ethnicities,physicalcapabilitiesandcultures.
6. Inclusion and diversityAMP encourages a respectful, diverse and safe workplace that supports the physical and psychological wellbeing of our people.
AMP 2018 sustainability report – Our people23
Gender equalityAtAMP,wearestrongproponentsofgenderequality,andwhilewehaveyettoachieveourgenderdiversitytargets,weremaincommittedtothem.OurInclusionandDiversityPolicyrequirestheboardtosetmeasurableobjectivesforachievinggenderdiversityandtoassessannuallyboththeobjectivesandourprogress.
TheestablishedtargetfortheAMPLimitedBoardisforwomentohold40%ofboardpositions,mentohold40%ofpositions,andeitherwomenormentoholdtheremaining20%ofpositions.In2018,theboardrecognisedthatsignificantchangewasrequiredtorestoreconfidenceinourbusiness.HalfoftheAMPLimitedBoardinplaceatthebeginningoftheRoyalCommissionhassincechanged.Thedecisionofanumberoffemaledirectorstostepdownregrettablyreducedtherepresentationofwomenontheboard.
Theprocessofboardrenewalisunderway,withAndreaSlattery,JohnFraserandJohnO’Sullivansincejoiningtheboard.Allbringdeepleadership,sectorandgovernanceexperience.
AMP’sgenderdiversitytargetsformanagementpositionsrequirewomentohold47%ofseniorexecutiverolesand50%ofmiddlemanagerrolesbytheendof2020.In2018,wemaintainedasoundrepresentationofwomeninmanagementpositions.
Asaresultofchangestoourorganisationalstructurein2017,thebusinessdidnotmeetitsprogresstarget.Therepresentationofwomeninseniorexecutiverolesincreased(from38%)to39%at31December2018,withwomenholding41%ofmiddle-managerroles.Duringtheyear,AMPstartedimplementinginclusionanddiversitybest-practiceprinciplesforrecruitment,whichcomplementthediversityfocusofourbroadertalentmanagementpractices.
Overall,womenmakeup52%ofourworkforce.
InAustralia,thesuperannuationgendergapisamajorissue,withtheaveragesuperannuationbalanceforwomenbeingsignificantlylessthanthatofmen.Aspartofourfocusonclosingthegenderpaygap,effective1January2019AMPwillpaysuperannuationonunpaidparentalleaveforpermanentemployeesandfixed-termcontractorsacrossAMP.Thisisinlinewithsimilarinitiativesimplementedwithinthefinancialservicessector.
Flexible workingWearecommittedtomakingflexibleworkingmoreaccessibletoeveryoneatAMPandhaveapolicyof‘allrolesflex’.Wehaveastrongreputationasaflexibleemployerandwillbuildonthisin2019byincludingtoolstohelpourpeoplediscussflexibilitywiththeirleaders.
Flexibilitycantakedifferentformsandbeputinplaceforavarietyofpurposes.ThishasbeenpromotedthroughoutAMPandreinforcedbymanagementbyprovidingstoriesofhowleadersareusingflexibleworkingtobenefittheirwork-lifebalance.
AMProudAMProudisacommunitygroupforlesbian,gay,bisexual,transgender,intersexandqueer/questioning(LGBTIQ)employeesandtheiralliesandsupporters.ThegroupisopentoallAMPemployees,regardlessofsexualorientation,andpromotesadiverseandinclusiveenvironmentwhereemployeescanconfidentlypresentthemselves,andfeelfreetotalkabouttheirfamiliesandlives.
Future outlookIn2019wewill:
– willremaincommittedtoour2020genderdiversitytargets
– willusetheinsightsfromour2019InclusionandDiversitySurveytobetterunderstandourpeopleandinformculturaldecisionsatAMP.
In 2018…
Female representation by role 2020 target (%) 2018 progress target (%) 31 December 2018 (%) 31 December 2017 (%)
AMPLimitedBoard 40 40 11 40
Seniorexecutives1 47 41 39 38
Middlemanagement2 50 45 41 41
Allemployees n/a n/a 52 51
1 SeniorexecutivesaregenerallyonetotworeportinglayersbelowtheCEOandrepresentthetop8%oftheorganisation.Peopleintheserolestypicallyleaddiscretefunctionsandareresponsibleformakingstrategicdecisionsforthosefunctions.TheygenerallyhavethetitleGroupExecutive,DirectororHeadof.
2 MiddlemanagersaregenerallybetweenthreetosixreportinglayersbelowtheCEOandrepresentthenext25%oftheorganisation.Peopleintheserolestypicallyreporttoourseniorexecutivesandareinvolvedinoperationaldecision-makingorhavespecialisedandhigh-valueskills.Theyhavearangeoftitles,includingSeniorManager,ManagerandLead.
AMP 2018 sustainability report – Our people24
AMPactivelysupportsthephysicalandpsychologicalhealthofouremployeesthrougharangeofhealthandwellbeinginitiatives.Itisimportantthatwecontinuetofosteranenvironmentofcare,wellbeingandinclusionforallouremployeesandadvisersatAMP,inordertobuildtheirresilienceandagilityinthefaceofchangeandtofullyleveragetheirabilitiesandexperienceforourfuturedevelopment.
In 2018…2018wasachallengingyearforouremployeesandadvisers,especiallythosewhoweredealingdirectlywithcustomersvoicingtheirconcernsaboutissuesraisedbytheRoyalCommission.Throughouttheyear,weworkedhardtosupportthem.Keyinitiativesincludeddeliveringmentalhealthinitiatives,supportingnewadvisersandworkingincollaborationwithexternalstakeholderstodevelopthefutureoffinancialadvice.
In2018,ourgoalwastooffermoreadviserpathwaysandtrainingandtocontinuetocontinuetodevelopandembedPerform@AMP,whichisouremployeeperformanceframework,acrossthebusiness.TheAMPAdviserAcademyhasevolvedtobeincludedasanaspectofournewAdviserPathwaysProgram(seethe‘Ethicalconductandprofessionalstandards’sectionformoredetail).However,wearecontinuingtoworktowardsouremployeeperformanceframeworkobjective.
Healthy workplacesSince2013,AMPhasbeenrollingoutanactivity-basedworking(ABW)modelthroughoutourAustralianoffices.OurABWdesignincludesavarietyofworkingspaces,standingdesksandmobiletechnologytoencourageflexibleandhealthierworkpractices.Wearealignedwithhealthybuildingframeworks,includingGreenStar,theWELLBuildingStandardandFitwel,toensurebest-practiceinindoorenvironmentalquality,ergonomicsandactivespaces.In2018,weachievedthefirsttwoFitwelbuildingcertificationsinAustralia.Fitwelisabuildingratingsystemthatprovidesguidelinesonhowtooperateanddesignhealthierbuildingsforexistingworkplaces.OurBrisbaneofficereceivedaFitwel2StarratingandourSydneyofficewasawardedaFitwel1Starrating.
AsasignatorytotheRoyalAustralasianCollegeofPhysicians’ConsensusStatementontheHealthBenefitsofGoodWork,wehaveimplementedhealthandsafetysystemstominimisephysicalandmentalhealthrisks.Wehelpouremployeesmanagetheirhealththroughfitnessandnutritionprogramsandbyprovidingon-sitefluvaccinations,skincancerchecksandmedicaltests.
OurBoard’sRiskCommitteemonitorshealthandsafetyperformanceandoverseestheidentificationandmitigationofworkplacerisksandprogramstocontinuallyimproveinjuryandillnessprevention.OnemeasureofthisisthatourLostTimeInjuryFrequencyRate(onemilliondividedbyhoursworked)decreasedto0.38in2018,from0.39thepreviousyear.
Mental health initiativesAMPunderstandstheimportanceworkplaysinwellbeing,particularlymentalhealth.Wesupportouremployeesandadviserstomanagetheirmentalhealththroughresiliencetraining,flexibleworkpoliciesandaccesstoafree,confidentialcounsellingserviceforthemselvesandtheirimmediatefamilies.
Thisyear,ouremployees’workplacewellbeingwastestedduetotheRoyalCommission.OuremployeeengagementindexmeasuredinAugust2018was64%.Thiswasdownfrom76%in2017.Tosupportouremployeesthroughthistime,wedevelopedleadersupporttoolkitstoenableourleaderstobettersupporttheirteams.Wehavealsobeenrunninganumberoftrainingsessionsonresiliencethroughouttheyear.
7. Supporting and developing our peopleOur vision is to help our employees and advisers to be and perform at their best so they can help our customers achieve their goals.
AMP 2018 sustainability report – Our people25
In2017,welaunchedanupdatedmentalhealthtrainingprogramforallouremployeesandadvisers,inpartnershipwiththeBlackDogInstitute.Thistraininghascontinuedtoberolledoutforallnewstarters.In2018,thetrainingwontwoindustryawardsformentalhealthawarenesstraining:theFSCInnovationinRetailLifeInsuranceawardandANZIIFInsuranceLearningProgramoftheYear.
InClaims,face-to-facetrainingtomanagehigh-riskphonecallsandself-carestrategieswererolledoutbyourmentalhealthspecialists.AllClaimsemployeesattendedthetrainingandanewprocesswasdevelopedforemployeestofollowwhenfacedwithchallengingsituations.
MentalhealthtrainingofferedbytheWorkplaceMentalHealthInstitutewaspilotedinselectbusinessunits.Employeescompletedhalf-daytrainingonpersonalresiliencestrategiestomanagethechallengesandpaceofworkinglife.
Inadditiontothementalhealthtraining,wealsolaunchedourBeWellcampaigninAustraliaandWeCareinNewZealand.Thesesawtheintroductionoftwodaysofwellbeingleaveforallemployees,leveragingexistinginitiativessuchasRUOKDayandourEmployeeAssistanceProgram
services.OurSeptember2018peoplesurveyindicatedthattheseactivitieshavehadapositiveimpactonhowemployeesfeelaboutwellbeingatwork,with81%positivelyrespondingtothestatement‘AMPprovidesmewithwaystolookaftermyownwellbeing’.
Living WageAMPbecamethefirstfinancialservicesproviderinNewZealandtoadopttheLivingWage,whichmeansthateveryoneworkingatAMPinNewZealand,directorcontracted,receivesaminimumofNZ$20.55perhour–significantlyhigherthantheminimumwage.
Turnover DespiteachallengingyearinAustralia,annualemployeeturnoverratesremainedstable,with13%recorded(against12.8%in2017).However,theinternationalturnoverraterose(to7.6%)asdidtheNewZealandrate,with17.6%recorded(upfrom13%in2017).
The2018turnoverratesbygenderwerealsorelativelystable,at13.6%and13%formalesandfemalesrespectively(2017:13%and12.3%).
Future outlook Therewillbefurtherchangein2019aswecreateamoreagile,entrepreneurial,customer-focusedandcommercialAMP.Wewillcontinuetosupportanddevelopourpeople,including:
– mentalhealthwillremainakeypriorityin2019.Tosupportthis,aseriesofface-to-faceworkshopsforleadersandonlineemployeeawarenesssessionsprovidedbytheWorkplaceMentalHealthInstitutewillbeofferedin2019
– AMPintroducedsuperannuationpaymentsonunpaidparentalleaveeffective1January2019.
In 2018…
Metric 2018 2017
Losttimeinjuryfrequencyrate 0.38 0.39
AMPemployeeengagementindex 64% 76%
Maleemployeeturnover,yearlyaverage 13.6% 13.0%
Femaleemployeeturnover,yearlyaverage 13.0% 12.3%
TurnoverinAustralia,yearlyaverage 13.0% 12.8%
NewZealandturnover,yearlyaverage 17.6% 13.0%
Internationalturnover,yearlyaverage 7.6% 5.0%
AMP 2018 sustainability report – Our community26
Climatechangeposesarangeofphysical,transitionalanddirectorandlegalliabilitiestoourbusiness,theinvestmentswemanageonbehalfofourcustomers,andthewidercommunity.Forthisreason,wetakemeasurestoreduceourimpactontheenvironmentthroughresponsibleinvestingandcarbon-reductioninitiativesacrossthebusiness.
In 2018…In2018,wemadeprogressonincorporatingclimate-relatedrisksintoourbusiness-widerisk-managementprocessesandaspartofourpublicdisclosures.AMP’sinvestmentmanager,AMPCapital,undertookfurtheranalysesofclimate-relatedinvestmentrisksthroughitsdedicatedEnvironment,SocialandGovernance(ESG)capability.
AMPremainedcarbonneutralforourownoperationsforthesixthconsecutiveyear,recordinga44%reductioninScope1and2emissions,anda62%reductioninemissionsperemployeefrom2013.
Environmental and climate-related governance ResponsibilityforAMP’sclimatechange-relatedstrategiessitswithAMP’sChiefExecutiveOfficerandtheGroupLeadershipTeam.AMP’sEnvironmentalLeadershipTeamisresponsibleforaddressingoperationalenvironmentalimpactsacrossourofficesanddevelopsstrategiesandreviewsprogressagainstobjectivesandtargets.OtherAMPcommitteesconcernedwiththisareaoffocusincludetheGroupRiskandComplianceCommittee,theEnvironmentalLegislativeComplianceCommitteeandtheAMPCapitalInvestmentCommittee.
Task Force on Climate-related Financial DisclosuresAMPacknowledgesthe2017recommendationsoftheTaskForceonClimate-relatedFinancialDisclosures(TCFD),whichprovidesguidanceonhowcompaniescanconsiderclimatechangerisksandreportthemwithintheirexistingfinancialdisclosures.
Inaddition,theTCFDrecommendationsalignwithobjectivesofotherclimate-relateddisclosureframeworks.Forexample,theCarbonDisclosureProject(CDP),whichAMPhasbeenreportingagainstsince2002,adjusteditsquestionnairein2018tobetteralignwiththeTCFDrecommendations.AMP’sfull2018CDPsubmissionoutlinesourperformanceagainstthisframeworkandin2018,wemaintainedanA–LeadershipCDPscore.
In2018,AMPundertookaGroup-widereviewofclimate-changemanagement,whichincludedreviewingandidentifyingbusinesseslikelytobemateriallyimpacted,withinourexistingriskframework.
This2018reviewfound:
– asaninvestmentmanager,AMPCapitalconsidersclimatechangeamaterialinvestmentriskandhaswell-resourcedESGcapabilities
– existingrisk-managementprocessesandproceduresthatconsidertherisksarisingfromclimatechangecouldbeusedtomodelforward-lookingscenarios
– aneedtodevelopclimaterisk-relatedmetricsinourAMPBankandAustralianWealthManagementdivisions(ourlifeinsurancedivisionhasbeensoldtoResolutionLife).
Asaresult,AMPisincreasingitsanalysisandassessmentofclimaterisksandopportunitiesacrossthebusiness.
8. Climate change and the environmentAMP recognises climate change is a significant economic and environmental challenge impacting society.
AMP 2018 sustainability report – Our community27
AMP Capital analyses and investmentInrecentyearsAMPCapitalhasundertakenarangeofassessments,includingaprojectedcarbonpriceof$100/tonne(CO2-e)oninternallyandexternallymanagedequityportfolios.Ithasundertakenpreliminaryscenarioanalysisofvalueatriskfromthephasingoutoffossilfuelsforitsmajorequitybenchmarks.In2018itexpandeditscarbonfootprintinganalysestoincludebothequityandfixedincomeportfolios.
AMPCapitalundertakesregularresearchandassessmentsofclimatechangeriskstoitsmanagedinvestmentsthroughitsexistingESGframeworks.Thisconsiderscarbonregulation,directandindirectcosts,geographicexposuretoclimatepolicy,capacitytoadaptandmanagerisks,andtransitionalgovernmentalassistanceprograms.TheESGteamregularlypublishesitsinvestment research.
ClimatechangeisalsoconsideredthroughESGperformancebenchmarkingofAMPCapital’sflagshiprealestateandinfrastructurefunds.Thisinformsfundandassetmanagementstrategiesrelatingtocarbonemissionreductions,assetresilience,andfosteringinvestmentopportunitiesinlow-carbontechnologies.
OurRealEstatedivisioncompletedaportfolio-wideevaluationofclimatechangeriskandresiliencebymarketsectorandforeachassetusingtheIntergovernmentalPanelonClimateChange’s(IPPC)extremeRepresentativeConcentrationPathwayprojections.Thestudyconsideredovervarioustimescalesimpactsofextremeheat,bushfirerisk,drought,extremerainfall,cyclonesandseverestormevents,andimpactsofinlandandcoastalfloodingandsealevelriseformajorAustraliancitiesandmanagedrealestateassets.Thisinformationisbeingusedtodevelopourlong-termassetmanagementplans.
TheAMPCapitalWholesaleOfficeFund(AWOF)isaportfolioofcommercialpropertyassetswithatargetofbecomingcarbonneutralby2030.
Othertargetsincludeliftingtheportfolio’sNABERSaverageto5.5Starsby2030.Italsoincludesdeliveringapipelineofsustainableflagshipassets,suchasQuayQuarterTowerinSydney’sCBD,whichistargetinga6-StarGreenStarand5.5-StarNABERSrating,aswellaspursuingcertificationagainsttheleadingWELLBuildingStandard.
AMPCapitalalsoengageswithcompaniesandpolicymakersonclimatechangeandthrougharangeofinvestorcollaborationsandinitiatives.Thisincludesasco-founderoftheInvestorGrouponClimateChange(IGCC),anearlyinvestorsignatorytotheCDP,andactivelyparticipatingintheglobalClimate Action 100+investorengagementinitiative.
AMPCapitalaimstopromotetransparencyinequityportfoliosandprovidelow-carbonoptionsforinvestorsandcustomersofAMPsuperannuationaspartofthetransitiontoalow-carboneconomy.Inadditiontodirectinvestment(equityanddebt)inrenewableenergyassets,itsResponsibleInvestmentLeaders(RIL)fundsalsooffercustomerslow-carboninvestmentoptions.
AMP 2018 sustainability report – Our community28
Reducing our operational impactAMPisreducingitsenvironmentalimpactsthroughourownbusinessoperationsbyengagingemployeesininitiativestargetingresourceefficiencyandreductionsinourenvironmentalfootprint.Wearecommittedtobeingcarbonneutralacrossouroperations,includingScope3emissionssuchasairtravelandoutsourcedITservices(datacentres).
Wecontinuedtomakeprogressagainstourtargets,including:
– 44%reductioninoperationalScope1and2emissions(mainlyofficeelectricityusage)fromour2013baseyear
– 15%year-on-yearreductioninScope1and2emissionsfrom2017to2018
– reducingouremissionsperemployeerateto1.33tCO2-e,down62%from2013
– expandingreportingofourScope3emissionsbeyondairtraveltoincludeadditionalsources(e.g.waste,paper,outsourcedITandbasebuildingemissions).
Ouroperationalcarbon-reductionstrategyisunderpinnedbytheroll-outofactivity-basedworkingarrangementstoAMPofficesinAdelaide,BrisbaneandSydney.Thesecontinuetodeliverenergyefficiencyimprovements,demonstratedthroughhigherNABERSEnergyTenancyratingsofourbuildings.OurSydneyheadquarters(CircularQuay)achieveda5-StarNABERSEnergyTenancyratingin2018,risingfroma3.5-Starratingpriortoadoptingtheactivity-basedworkingmodel.MoredetailsareprovidedinAMP’sEnvironmentalperformancedata,reportedinlinewithAMP’sGreenhouseGasReportingCriteria.Since2013,AMP’sScope1,2and3emissionshavebeenassuredbyErnst&Young.
Future outlookAMPcontinuestobuildonitsprogressagainstenvironmentalissues,includingclimatechange,through:
– updatingthetermsofreferenceofAMPmanagementandgovernancecommitteestoconsiderclimaterisk
– strengtheningrisk-managementpracticestogivemorestructuredconsiderationstoemergingrisks(includingclimatechange)
– remainingcarbonneutralforourownoperationsandreducingoperationalenergyuse
– workingtowardsgreaterrenewableenergyadoptionthroughrealestateinvestmentportfoliosandAMPoperations
– assessingtheimpactsforoursuperannuationandbankdivisions.
AMP 2018 sustainability report – Our community29
AMP’s environmental performance data
Emissions (tCO2-e) 2018 2017 20131
AMP operations2
Total Scope 1 emissions 122 96 115
Scope 2 emissionsOffices3 7,686 9,221 13,871Datacentre4 – – 6,844Smallsites(wheredataavailable)5 431 385 –
Total Scope 2 emissions 8,117 9,606 20,715
Total Scope 1 and 2 emissions 8,239 9,702 20,830
Year-on-yearreduction 15% 5%Reductionfrombaseyear6 44% 33%Employees(FTE) 6,189 5,697 5,913Scope 1 and 2 emissions per FTE 1.331 1.703 3.523
Scope 3 emissions7 Airtravel 10,472 9,301 11,592Transmissionanddistributionlosses 1,067 1,347 –Waste8 269 173 –Basebuildingemissions 4,165 4,804 –Offshorebusinessprocessing 1,053 1,025 –OutsourcedIT 590 449 –
Total Scope 3 emissions 17,615 17,099 11,592
Gross Scope 1, 2 and 3 emissions 25,855 26,8019 –
Carbonoffsetsretired 25,855 26,831 32,422Paperusage(kg) 55,047 65,847 165,953Waste(kg) 272,765 165,222 –
Carbon Disclosure Project (CDP) rating A– A– B(77)
Managed investments (real estate)FY
2018FY
2017FY
2013
AMP Limited10
Scope1 8,117 8,455 12,120Scope2 108,790 98,203 154,462
Total Scope 1 and 2 117,087 106,658 166,582
1 2013isAMP’sbaseyear.2 EmissionsarisingfromAMPofficeoperations,includingofficeelectricityconsumption,airtravelandotheroutsourcedoperationalactivities.
ItdoesnotincludeinvestmentsmanagedbyAMPCapital,asoutlinedinAMP’s GHG Reporting Criteria.LimitedassuranceofthesefiguresisprovidedbyEY.
3 Anominaldecreaseof50%forourinternationalofficesoccurredduetoachangeinestimationmethodologies,asoutlinedinAMP’sreportingcriteria.
4 In2016,AMPsolditsownedandoperateddatacentre.AMPperformedanadjustmentonpreviousyearstoallowmeaningfulcomparisonsovertime.
5 Duetoimprovementsinmeteringanddatacollection,AMPcanreportonsmallerofficelocationswherepreviouslyunavailable.6 ReductionfrombaseyearcalculatedfromScope2figure,excludingdatacentreandsmallsites.7 From2017,AMPisreportingonadditionaloperationalScope3emissionssources.8 WasteisreportedforAMPheadquartersat33AlfredStreet,Sydneyonly.AMPhasrestatedits2017wastefigurefrom200,684kgto165,222kg
duetomoreaccurateactualdataprovidedthanthepreviousextrapolationsused.Theincreaseisduetoincreasecapacityinthebuilding,duetotheredevelopmentworksat50BridgeStreet.
9 Totalemissionsin2017restatedduetorestatedwastefigures.10 EmissionsarisingfromAMPCapitalmanagedrealestateandshoppingcentreportfolios,inadditiontoAMPofficetenanciesasreportedin
accordancewiththeNationalGreenhouseandEnergyReportingAct(NGER)2007.FiguresarereportedasatJune30yearend.Scope2emissionsincreasedinFY2018duetoAMPCapitaltransactionsresultinginanincreaseinassetsundermanagement.
AMP 2018 sustainability report – Our community30
Ourin-houseinvestmentmanager,AMPCapital,launchedourfirstresponsibleinvestmentfundsin2001,andin2007becameoneofthefirstsignatoriestotheUN-backedPrinciplesforResponsibleInvestment(UNPRI).Demandforsociallypositiveinvestmentopportunitieshassinceincreased.
Naturalresourceuse,environmentalmanagementpractices,climatechange,humanrights,workplacehealthandsafety,executiveremuneration,boardcompositionandgenderdiversityareamongthefactorsweconsiderwheninvestingonbehalfofourclients,includingAMPSuperannuationmembers.
In 2018…WedemonstratedourongoingcommitmentstoESGandresponsibleinvestingthroughAMPCapital:
– achievingA/A+ratingsforourPRIassessmentsacrossallmajorassetclasses
– completingfullimplementationofourethicalinvestmentframework
– maintainingGRESBInfrastructureTop10globalrankingsforthreeinfrastructurefunds
– FlagshipRealEstatefundsscoring80%+inGRESBreceivingfiveGreenStars–thehighestGRESBratingavailable
– Investmentsinenvironmentallyandsociallythemedareasreachingapproximately7%ofAMPCapital’stotalassetsundermanagement(AUM)includingrenewableenergy,waterinfrastructure,greenbondsandlow-carbonbuildingportfolios
– recognisedasAustralia’slargestmanagerof‘core’responsibleinvestmentfundsintheResponsibleInvestmentAssociationAustralasia2018benchmarkreport
Investment approachInvestingincompaniesandassetswithlong-termsustainablebusinessmodelsisanimportantpartofourinvestmentapproachacrossallassetclasses.AMPCapital’sESG and Responsible Investment PhilosophyoutlinesourapproachtoconsideringmaterialESGfactors.
OurteamofESGandsustainabilityspecialistsworkacrossbusinessfunctionsandinvestmentteams,providingresearchandadvicethatisintegratedintoourdecision-makingandactiveownershipstrategies.
Wealsoencourageboardsandmanagementofinvesteecompaniesandassetstoensuresoundriskmanagement,appropriatecapitalallocation,fairremunerationanddisclosure,anduseourproxyvotingpowertoencouragecorporatebehaviourthatdeliversbetterresultsforall.
AMPCapitalisrequiredtoreportitsmanagedrealestateandshoppingcentreinvestmentfootprintundertheNationalGreenhouseandEnergyReporting(NGER)Act.ThisisreportedtotheCleanEnergyRegulatorwithAMPoperationsanddisclosedinourenvironmentalperformancedata(seepage29).
AMPCapitalhasalsobeenprogressivelydisclosingthecarbonfootprintofitsequityfunds.In2018,thisexpandedtoincludefixedincomeportfolioreporting.ThesedisclosuresarepublishedontheAMP Capital website.
In 2018…
Metric Value
FlagshipRealEstatefundsGRESBrating 80%+
AMPCapitalInfrastructurefundsinGRESBTop10 3
%ofAUMinvestedinenvironmentalandsocialthemedareas 7%
PRIreportingandassessmentscores(acrossallassetclasses) A/A+ rating
9. Responsible investingBy considering environmental, social and governance (ESG) factors in investments, AMP aims to drive better long-term financial outcomes for our clients and make a positive impact on the community.
AMP 2018 sustainability report – Our community31
Ethical framework implementedInSeptember2018,AMPCapitalcompletedthefullimplementationofitsethicalinvestmentframework,includingdivestmentof$440millionworthoftobaccomanufacturing-relatedholdingsfromAMPCapital-managedportfolios.
Thisannouncement,thelargestbyafundmanagerinAustralia,coincidedwithAMPCapitalco-foundingtheTobacco-FreeFinancePledge(TFFP),whichwaslaunchedattheUnitedNations.Thepledgemarksaglobalmovementtopromotetobacco-freefinanceinlinewiththeUnitedNations’SustainableDevelopmentGoalsandWorldHealthOrganisationFrameworkConventiononTobaccoControl.
AMPCapitalcollaboratedwithTobaccoFreePortfolios–anon-profitfoundedbyAMPTomorrowFundrecipientDrBronwynKing(seepage34)–andglobalfinancialservicespeerstodevelopthepledge,sharingourexperienceinethicalinvestmentanddemonstratingstrategiesandimplementationpathwaystowardstobacco-freefinance.
AMPCapitalalsocompletedthedivestmentfrommanufacturersofclustermunitions,landminesandchemicalandbiologicalweapons,representingmorethan$130millioninsecurities.
WecontinuedtoinvestwithimpactthroughourflagshipResponsibleInvestmentLeadersFunds.In2018,AMPCapitalengagedcompaniesworldwideonarangeofESGrisks,includingmodernslaveryandhumanrightsinsupplychains,executivepay,climatechangeandgenderdiversity.Wealsosupportedourinternationalinvestmentcapabilities,withESGspecialistsappointedtoseniorrolesinourofficesinLondon,HongKongandSydney.
AMPCapitalalsomanagestheAMPCapitalCommunityInfrastructureFund(CommIF),whichinvestsinsocialinfrastructureassetsacrosshealthcare,education,justice,defence,communityhousing,transport,waterandrecreationalfacilities.
In2018,thefundacquiredanadditionalstakeintheVictorianDesalinationProject(VDP),apublicprivatepartnershipandthelargestdesalinationplantintheSouthernHemispherewhichcansupplyupto150gigalitresayear–approximatelyathirdofMelbourne’sannualwaterconsumption.
Theneedforinvestmentinsocialinfrastructureandhealthcareisgrowingindevelopedmarkets.OnbehalfofinvestorsinitsGlobalInfrastructureEquitystrategy,AMPCapitalmadeinvestmentsintheUKspecialistcaresector,acquiring100%ofCareManagementGroup(CMG)andTheRegardGroup.BothorganisationsprovideresidentialandsupportedlivingservicesacrosstheUKforpeoplewithlearningdifficultiesandalivedexperienceofmentalillness.
Future outlook AMP,throughitsinvestmentmanagerAMPCapital,willmeettheincreasingdemandforsociallypositiveinvestmentopportunitiesby:
– continuingtoassessESGriskstoenhanceourlong-termdecision-making
– monitoringESGintegrationacrossthebusinessandimprovingmeasurementandreportingontheenvironmentalandsocialimpactsofourinvestments
– providingfurtherinvestmentopportunitiesforourclientsandpartnersinfundsandassetswithimprovedESGcredentials.
AMP 2018 sustainability report – Our community32
Weunderstandthattheresponsiblesourcingofgoodsandservicescreatesvalueforourcustomers,ouremployeesandthecommunity.
OursupplychainsprimarilyconsistofregulatedoutsourcedservicesandrelationshipswithotherinstitutionsinAustraliaandoverseas.
Weclassifysuppliersbasedonmaterialityandapplyappropriategovernanceoverthesearrangementstoensureweadequatelymanageservicedeliveryandrisk.
Wehavecontrolsinplace,suchascontrolself-assessmentsofsupplierarrangements,thatconsiderrisksandopportunitiesinoursupplychaintoensurecommitmentto:
– actingethicallyandwithintegrityinourbusinessrelationships
– providingrespectfulandsafeworkplaces,freefromdiscrimination
– observingInternationalLabourOrganisationprinciplesandtakingstepstoaddressmodernslaveryinoursupplychains
– consideringandmonitoringtheenvironmentalimpactofgoodsandservicesusedbyAMP.
In 2018… In2018,wecontinuedtotrackandmonitorScope3emissions(indirectemissions)frommaterialsourcesinoursupplychain,includingoutsourcedITinfrastructuresuchasdatacentres,travelandotherbusinessprocesses.ThesearedisclosedinAMP’senvironmentalperformancedata(seepage29).
AMPCapitalupdateditsAnti-SlaveryandHumanTrafficStatementtocomplywithitsobligationsundertheUKModernSlaveryAct2015.
TostrengthenourcontrolsandtopreparefortheAustralianlegislation,in2018AMPestablishedadedicatedprojecttofurtherdeveloptheunderstandingofourModernSlaverysupplychainrisksandsuppliermanagement.Buildingonthisanalysis,wehaveidentifiedanddevelopedanumberofmeasuresandcontrolsaimedataddressingmodernslaveryrisks.
Future outlookAMPisexploringopportunitiestocollaboratewithindustrypartnerstoreducethereportingburdenonourcommonsupplychains,aswellasimprovingdataqualityandintegrityinrelationtotherisksandpracticesdisclosedbysuppliers.
WearealsoplanningtointroduceaSupplierCodeofPractice,whichwillbettercommunicateourpoliciesandexpectationstooursuppliers.TheCodewilldrawonexistingAMPpoliciesandstandardsandcoversarangeofgovernance,socialandenvironmentalissues.
In 2018…
Metric Value
Numberofmaterialoutsourcingarrangements1 10
Numberofkeyoutsourcingarrangements2 20
Numberofannualcontrolself-assessmentsconductedduringtheyear3 180
1 AsanAPRA-regulatedentity,AMPmustdefineandappropriatelymanageservicearrangementsthatarematerialtoAMPservicedeliveryandoperation.
2 Keysuppliersarestrategicallysignificantserviceproviders,whicharenotdefinedasmaterialunderregulations.3 Controlself-assessmentsconsistoffourquarterlyandoneannualassessmentconductedeachyearforourtop36suppliers.
10. Sustainable supply chainEvery aspect of AMP’s supply chain needs to meet the standards increasingly expected by the public and set by the law.
AMP 2018 sustainability report – Our community33
AMPiscommittedtoinvestinginourcommunitythroughtheAMPFoundation–ourphilanthropicarm.
TheAMPFoundationworksstrategicallytobringaboutpositivechangeinourcommunity.Itfocusesonhelpingpeopleaccesseducationandemploymentopportunities–importantkeystofinancialsecurity.ItalsosupportsAMPemployeesandfinancialadviserstosharetheirtime,skillsandresourceswiththecommunity.
TheAMPFoundationwasfoundedin1992and,todate,hasinvestednearly$100millioninthecommunity.
In 2018…In2018,theAMPFoundationcontinuedtoworkwithitscommunitypartners,manyofwhichareunlockingsustainableemploymentopportunitiesformarginalisedAustralianswhofacechallengessecuringwork.Ouremployeeswereveryactiveinthecommunity–organisingfundraisingeventsandvolunteeringtheirtimeandskillstoarangeofnon-profitorganisations.
Ouradviserscontinuedtheirprobonowork,providingfreeadvicetopeopleaffectedbycancer.TheAMPTomorrowFundinAustraliaandtheAMPScholarshipsprograminNewZealandprovidedgrantstotalentedindividualswhoareworkingtocreatebettercommunities.
Community partnersTheAMPFoundationformsmulti-yearpartnershipswitharangeofnon-profits.Partnershipfundingcanincludegrowthcapital,coreinfrastructure/operationalfundingorprogramfunding(oracombinationofallthree).Wherepossible,theAMPFoundationfacilitatesmentoring,skilledvolunteeringandfundraisingforitspartners.In2018,theAMPFoundationsupportedthefollowingorganisations:
– Clontarf FoundationengagesyoungAboriginalmaleswithschoolandtheworldofwork
– First Australians CapitalsupportsAboriginalentrepreneurstosetuporexpandbusinesses
– Global Sistershelpsdisadvantagedwomenruntheirownbusinesses
– Social Ventures Australiasupportsthesocialsectortogrowitsimpact
– STREATrunssocialenterprisestoprovidemarginalisedyoungpeoplewithemploymentpathways
– The Conversationisaleadingfreeonlinenewsoutletthatmatchesacademicswithjournalists.Wesupportresourcingtopublishemploymentinsights
– The Funding Networkbuildsthecapacityofsmall,innovativenon-profitsthroughlivecrowdfundraisingandtraining
– The Stroke Association of Victoriarunsaninnovativereturn-to-workprogramforstrokesurvivors
– Vanguard Laundry Servicesisasocialenterprisecreatingjobsandcareerpathwaysforpeoplewithalivedexperienceofmentalillness
– Wesley Missionhelpsyoungpeopleinfostercaretotransitionintoemployment
– Settlement Services Internationalrunsasocialenterprisethatprovidesrefugeeswithpracticalofficeworkexperience.
11. Community investmentIt is in everyone’s interest to ensure our communities are healthy and resilient, and provide opportunities for all.
AMP 2018 sustainability report – Our community34
AMP Foundation’s Employee Volunteering ProgramTheAMPFoundationsupportsemployeestodonatetheirtimeandresourcestoarangeofcharities.In2018thisprogramcontainedthefollowingcomponents:
– Volunteering and mentoring:AMPemployeescontributed17,912hourstonon-profitsthroughvolunteeringandmentoring.
– Fundraising and payroll giving:employeesraised$878,894throughourfundraisingandpayrollgivingprograms,themajorityofwhichwasmatchedbytheAMPFoundation.
– Unsung Heroes:64AMPemployeeswhoservedonacharityboardorvolunteeredformorethan80hoursoftheirtimeperyearreceiveda$5,000AMPFoundationdonationtothatcharity.
Social impact investingTheAMPFoundationinvestsapercentageofitscapital(upto3%)insocialbenefitfinancialinstrumentsthatachieveafinancialreturnanddemonstratedsocialoutcomes.In2018itheldinvestmentsintheNewpinSocialBenefitBondandtheSocialVenturesAustraliaDiversifiedImpactFund,withourBenevolentSocietySocialBenefitBondinvestmentmaturinginOctober.
AMP’s Tomorrow FundIn2018,theAMPFoundationoffereditsfifthAMPTomorrowFund–a$1milliongrantsprogramforindividualswhoseideasandeffortsbenefitAustralia.Theprogramoffersgrantsofbetween$5,000andupto$100,000.In2018,theprogramawardedgrantsto43Australiansandthewinnersincludedsocialentrepreneurs,musicians,medicalresearchers,athletes,scientistsandtechnologists.Moreinformationatampstomorrowfund.com.au.
Cancer Council Pro Bono ProgramEstablishedin2010,thisprogramenablesfinancialadviserstosharetheirexpertisewithpeopleaffectedbycancer,atnocost.TheAMPFoundationfundstheoperationalcosts,whichenablespeopleaffectedbycancertoreceivefreeguidanceonissuessuchasaccessingCentrelinkbenefits,applyingforearlyaccesstosuperannuationandinsurancebenefits,budgetingandestateplanning.Thisnationalprogramsupported588familieswithfreeadvicein2018.
Case study: Adviser lifts the burden Sinceitsinceptionin2010,theAMPFoundation-fundedCancerCouncilProBonoProgramhashelpedmorethan5,500peopleaffectedbycancertomanagetheirfinances.
MelbournefinancialadviserGenineCowellhasbeenprovidingprobonosupporttopeopleaffectedbycancerthroughtheprogramsince2012.Butitwasonlyafterherownbrushwiththediseasethatshecametofullyappreciatetheprogram’simpact.
“Whensomeoneisdiagnosedwithcancer,theyoftentalkabouttheirlifebeingputonhold.Inowunderstandwhatthatreallymeans.It’snotjustthecancertreatment,it’sallaspectsoftheirlives;particularlytheirfinancialsituation,”Geninesaid.
In2018,GeninereceivedanAMPFinancialPlanningProBonoAwardforhervolunteerwork.Bytheendoftheyear,herpracticehadadvised62peoplethroughtheprogram.“Ifounditwasimportantthatifwecouldtakesomeofthatburdenofftheirshoulders,theycouldfocusonfightingthedisease.”
Adviserssupportpeopleaffectedbycancerwithadviceonarangeofissues,includingaccesstoCentrelinkpayments,renegotiatingorsuspendingloanrepayments,andmakingnewbillpaymentarrangements.
Oftentherelationshipscontinueaftertheinitialadvice.Geninestillassistsaclientwhosehusbanddiedfromcancer.“Hesaid,‘canyoumakesureyoulookafterherforme’…soanumberofusworktogethertohelpher.”
AMP 2018 sustainability report – Our community35
Other AMP community initiativesInDecember2018,AMPlauncheditsFinancialHelpHub–anonlinefinancialeducationcentrethatprovidesAustralianswithtipsandtoolstostrengthentheirknowledgearoundmoney,investingandlivingtheirbestretirement.Itincludesjargon-freearticles,videos,infographicsandcalculators.
AMPCapitalShoppingCentresinAustraliaandNewZealandcoordinatearangeofactivitiesforcharitiesofimportancetothelocalcommunity.In2018,theyformedpartnershipswithlocalnon-profitorganisations,providingfundraising,volunteeringandin-kindsupport.
InNewZealand,theAMPScholarshipsprogramcelebrated20yearsofhelpingpeoplereachtheirgoals.In2018,22NewZealanderswereawardedgrants.
Duringtheyear,AMPalsopartneredwithKeyToLifetodelivertheIAMHOPETour–amentalhealthinitiativetocombatNewZealand’shighyouthsuiciderate.AMPalsopartneredwiththeSupportCrewsocialenterprisetosupportcustomersinNewZealandatclaimtime.Thisonlineplatformmakesiteasierforpeopletoaskforassistanceintimesofneedandforotherstoco-ordinatetheirresponses;includingmeals.
Formoreinformation,visitamp.com.au/ampfoundation.
Future outlook In2019wewillcontinuetoinvestinthecommunityandsupportouremployeesandadviserstodonatetheirtime,skillsandresources.Wewillcontinuetosupportourexistingcommunitypartnerships,bothinAustraliaandNewZealand.TheAMPFoundationwillremainfocusedonsupportingnon-profitpartnersthatprovideeducationalandemploymentopportunitiestodisadvantagedAustralians.
Wewillalsohelptopromotesustainableandcommunity-mindedbehaviourthroughthebusinessandexplorenewwaystohelppeopleinthecommunityachievefinancialresilienceandsecurity.
In 2018…
Community investment breakdown 2018
AMPFoundationdirectgiving $4,915,615
OtherAMPdirectgiving $123,991
Employeegivingandfundraising $1,027,4521
Employeevolunteeringcontributionvalue $2,001,605
NumberoffinancialadvicecasesdeliveredviaCancerCouncilProBonoProgram 588
CancerCouncilProBonoProgramservicevalue $588,0002
In-kindsupport $1,233,0873
RateofemployeeparticipationinAMPFoundationprograms(volunteering,fundraising,payrollgiving)
50%
Totalcontributiontothecommunity(includesfunds,in-kindandvolunteervalue) $10,238,241
1 Australianemployeefundraisingandpayrollgiving,andfundraisingfacilitatedbyAMPCapitalShoppingCentresemployees.2 Basedon$1,000perprobonocase.3 Includesfreeorsubsidisedrentfornon-profits,AMPCapitalShoppingCentresspacedonatedtocommunitygroupsanddonateduseoffunction/
meetingrooms.
Contact usweb amp.com.au
facebook.com/AMPaustralia
@AMP_AUor@ampfoundation
linkedin.com/company/amp