Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Disaster resilience and emergency response
• Affordability and availability of insurance
• Trust and transparency

Environmental Achievements

• 13% Reduction in scope 1 and 2 emissions

Social Achievements

• Launched Executive General Manager and Executive Manager leadership programs and IAG Academy
• 77% Employee Engagement, up 4% from FY21
• 44% Women in Senior Management
• Launched the NRMA Insurance Carbon Offset Program
• Launched the fourth Reconciliation Action Plan

Governance Achievements

• Reviewed IAG’s remuneration framework
• Strengthened our ESG risk management process by updating our Risk Appetite Statement

Climate Goals & Targets

Environmental Challenges

• High number of natural peril events
• Volatile investment markets
• Higher inflationary environment
• Need to strengthen prior period reserves
• COVID-19 and other seasonal illnesses impacting employees and supply chain
• Increased severity and frequency of natural perils impacting affordability and availability of insurance

Mitigation Strategies

• Strengthened operating risk and governance
• Conservative balance sheet management using equity, debt and reinsurance
• Refinanced New Zealand debt instrument
• Maintained strong levels of reinsurance cover
• Implemented Financial Inclusion Action Plan (FIAP)
• Recognized Affordability and Availability of insurance as a standalone Enterprise Risk
• Collaboration with government and industry partners to address challenges

Supply Chain Management

Supplier Audits: 276 supplier risk assessments completed in FY22, 50% of high/material risk suppliers had completed supplier risk assessments

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of natural perils

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, ISSB

Certifications: Rainbow Tick (NZ), FlexCareers (Level 4)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 11
• SDG 13

Alignment of priority SDGs to material topics and ESG metrics.

Sustainable Products & Innovation

• NRMA Insurance Carbon Offset Program
• ROLLiN' digital motor insurance product

Awards & Recognition

• Bronze status in the Australian Workplace Equality Index (AWEI)
• Strengthening Practice across all sections of the Rainbow Tick Certification (NZ)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Ethical Sourcing
• Sustainable Packaging
• Community Engagement
• Employee Wellbeing
• Diversity & Inclusion
• Corporate Governance
• Climate Change

Environmental Achievements

• Achieved net zero Scope 1 emissions using Australian Carbon Credit Units (ACCUs)
• Installed a 500kW roof-mounted solar array at pet food manufacturing facility
• Made progress on an 18.8MW solar array project (to be completed in 2024)

Social Achievements

• Launched myTWC health app
• Upgraded customer ordering portal for Symbion
• Extended Symbion customer service hours
• Concluded 10th annual Masterclass for TerryWhite Chemmart
• Launched Aboriginal and Torres Strait Islander scholarship initiative
• Donated $150,000 of products to Turkey/Syria earthquake victims

Governance Achievements

• Launched EBOS Purpose and Vision statement
• Expanded ESG Steering Committee
• Implemented Ethical Sourcing Strategy and Supplier Code of Conduct
• Improved data security and privacy processes

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (flooding, cyclones)
• Climate change impacts on infrastructure and operations

Mitigation Strategies

• Investing in resilient infrastructure (flood mitigation, backup power, etc.)
• Implementing risk mitigation measures in distribution center planning
• Working with partners to avoid delivery delays during extreme weather
• Enhancing ESG Governance and disclosure capabilities

Supply Chain Management

Responsible Procurement

• Ethical Sourcing Strategy
• Supplier Code of Conduct
• Ethical Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• Storms

Opportunities

• Investment in renewable energy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

The ESG program aligns strategically with these goals through various initiatives

Sustainable Products & Innovation

• Red Seal tea products with Rainforest Alliance certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance

Environmental Achievements

• Developed industry-leading data acquisition and structural analysis tools to help customers improve grid infrastructure efficiency and resilience, potentially reducing their carbon footprint.
• Initiated a Climate Risk Committee to oversee climate change impact and actions within the company.

Social Achievements

• Implemented a comprehensive Code of Ethics.
• Committed to pay parity and attracting, recruiting, developing, promoting, and retaining a diverse workforce.
• Committed to building an ethical and diverse supply chain, engaging directly with suppliers to ensure working conditions align with company values.

Governance Achievements

• Established a Climate Risk Committee with cross-functional members and senior leadership sponsorship in each geographic location.
• Board oversight of ESG matters, including climate-related risk management and compliance with disclosure requirements.

Climate Goals & Targets

Environmental Challenges

• Customer demand for sustainability and lower carbon output from suppliers.
• Investor demand for sustainable investment options.
• Cost increases for hosting infrastructure.
• Potential for longer-term reduction in demand due to extreme weather events.
• Supply chain and business operations disruptions due to adverse weather events.

Mitigation Strategies

• Working with customers to monitor demand trends and highlight preferences early.
• Product roadmap to include sustainability targets.
• Capital available to support business changes.
• Ongoing monitoring of cost pressures and continual review of infrastructure for efficiency and optimization.
• Working with customers to utilize products that drive the development of more resilient networks.
• Implementing and testing business continuity processes and disaster recovery planning.
• Building in supplier diversity to provide alternate supply in case of disruption.
• Increased flexible ways of working, including remote work.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier pre-onboarding to identify human rights risks and trade sanctions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting customer infrastructure and supply chains.

Transition Risks

• Customer demand for sustainability, investor demand for sustainable investments, cost increases for hosting infrastructure.

Opportunities

• Increased demand to support customer investment in network resilience.

Reporting Standards

Frameworks Used: Aotearoa New Zealand Climate Standards

Certifications: Null

Third-party Assurance: Null (for FY24; assurance planned for FY25)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Data acquisition and structural analysis tools to improve grid infrastructure efficiency and resilience.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Properties
• People and Culture
• Corporate Performance

Environmental Achievements

• FY24 corporate emissions represent a 40.9% reduction from FY20 base year
• Estimated 17% reduction in the upfront embodied carbon emissions compared to a reference building, for projects completed in FY24
• 2.26 MWp of solar energy systems installed
• Toitū net carbonzero certified since FY21

Social Achievements

• An average inclusive culture score of 87.5% over the last two workplace surveys
• 88% engaged team score in 2023 workplace survey
• Around $0.4 million distributed through the Goodman Foundation

Governance Achievements

• Maintained a leadership CDP climate score of A-
• Continued alignment with the NZX Corporate Governance Code
• GRI reporting framework

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the slow decarbonisation of the construction sector
• Increased cost of capital due to failing to meet ESG expectations
• Increased cost of insurance following climate-related losses
• Increased cost of development due to increased cost of carbon material & labour
• Pluvial flooding and increasing temperatures
• Properties not suited to customers’ sustainability targets
• Policy change affects leasability of non-compliant properties

Mitigation Strategies

• Utilise our Sustainable Finance Framework to invest in more sustainable property solutions.
• Build energy efficient, high-quality workplaces with Green Star certifications.
• Adapt existing assets and development specification to increase resilience to increasing frequency and severity of extreme weather events.
• Engage with customers on carbon reduction initiatives – use data from building submetering to support customers to measure and reduce their operating emissions.
• Implement green leases to improve alignment between GMT and customers.
• Prepare assets for increasing electrification including electric vehicle infrastructure.
• Invest in resource flexible buildings that will be more readily repurposed at end of economic life.
• Focus construction procurement on reducing embodied carbon.
• Consider and mitigate the physical and transition risks of new investments.

Supply Chain Management

Responsible Procurement

• Social procurement encouraged in new construction contracts and supplier agreements
• Team members trained to assess potential risks in our supply chain in relation to money laundering and modern slavery

Climate-Related Risks & Opportunities

Physical Risks

• Pluvial flooding
• Coastal erosion
• Extreme temperatures

Transition Risks

• Customer preferences
• Stranded assets
• Cost of insurance
• Cost of capital
• Cost of development
• Energy

Opportunities

• Increased revenue from value-add assets
• Lower insurance cost for assets with lower physical risks
• Reduced customer opex, rental uplift
• Decreased funding costs
• Improved leasability of assets

Reporting Standards

Frameworks Used: GRI

Certifications: Toitū net carbonzero, Green Star

Third-party Assurance: Toitū

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Engagement
• Employee Wellbeing
• Decarbonisation
• Wildlife Management

Environmental Achievements

• Achieved ACI Level 5 accreditation in Airport Carbon Accreditation (ACA), becoming the only airport in the Southern Hemisphere to achieve this status.
• Developed Kōwhai Park solar farm, creating a new reptile refuge and reducing carbon emissions.
• Implemented new methods to reduce food sources for birds around the airfield and conducted biodiversity research.

Social Achievements

• Launched a new parental leave policy offering enhanced financial support and flexibility for both primary and secondary carers.
• Supported Kairos Food Rescue, helping reduce food waste and deliver surplus food to people in need.
• Supported community projects through the Community Fund, including Addington Farm community gardens, Hoa Motuhake (at-risk children's sports), and Glass Ceiling Arts Collective (inclusive youth theatre).

Governance Achievements

• Received the Supreme Tūhono Award and Sustainability Award from Air New Zealand, recognizing outstanding efforts in helping Air New Zealand achieve its strategic goals.

Climate Goals & Targets

Environmental Challenges

• Managing wildlife risks (bird strikes) on the airfield.
• Preparing land for the Kōwhai Park solar farm while protecting local wildlife (grass skinks).

Mitigation Strategies

• Implemented enhanced bird management strategies, including noise cannons, pyrotechnics, and a simulated falcon.
• Partnered with Rubix and Boffa Miskell to create a new lizard habitat and successfully relocated over 500 lizards.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Airport Carbon Accreditation (ACA)

Certifications: ACI Level 5 accreditation

Awards & Recognition

• Supreme Tūhono Award
• Sustainability Award (Air New Zealand)
• NZ Airport of the Year 2023
• Environment Award (NZ Tourism Awards)