Annual Review 2015




старонка4/15
Дата канвертавання24.04.2016
Памер334.27 Kb.
1   2   3   4   5   6   7   8   9   ...   15

Working with our stakeholders


Building strong relationships with our stakeholders is integral to NAB’s success. We are always looking to maintain open and constructive communication.

By engaging with our stakeholders, we can better understand the expectations of our broader community, identify challenges and opportunities and encourage innovation. At NAB, engagement is possible in a range of ways including customer feedback, market research, employee engagement surveys, investor briefings, round tables, government briefings and community and supplier forums.

Our Advisory Council on Corporate Responsibility, the CEO Consumer and Small Business Briefings and our Indigenous Advisory Group bring in external perspectives. These forums provide business and community representatives the chance to work directly with NAB’s leaders and help guide some of our most significant decisions.

Team members all across NAB are accountable for engaging with our stakeholders. We have teams responsible for engagement with customers, employees, investors and analysts, government, industry associations and initiatives, not-for-profits and community organisations, unions and the media. Each of these teams manage relationships with key stakeholders, so that we can understand opportunities and areas of concern and take appropriate action to effectively address them.


Annual materiality review


Along with ongoing engagement, NAB conducts a formal materiality review each year to better understand the broader ESG topics that impact our business. In FY15, we explored a number of broad topics (and their respective drivers) that were most important to our stakeholders and most aligned to our ability to create value both now and into the future. While our overall materiality review process continued to follow the steps of identification, prioritisation, integration and disclosure of ESG topics, this year we increased the depth and breadth of views gained.

We identified the ESG topics through both internal assessments and external frameworks (such as the Global Reporting Initiative and Sustainability Accounting Standards Board). These topics are prioritised through a survey of over 1,000 customers, employees, suppliers and our community partners across Australia and New Zealand. We analysed the results of this survey to better understand different perspectives on the topics and how we are performing against them.

We also conducted detailed interviews with our investors and executives to better prioritise the ESG topics, based on how they might influence our ability to create value both for the business and society. With the changes to the materiality review in 2015, we will be able to more accurately track any changes to how our stakeholders feel about each of the ESG topics over time.

In 2015, our review prioritised seven major topics that were both important to our stakeholders and closely aligned with our ability to create value. These topics have informed the content of this report. Our management and performance against these topics is also included throughout this report.


Customer response initiative in NAB Wealth advice


NAB has a proud track record in the wealth advice industry and has long championed greater transparency in this area.

The vast majority of our more than 1,600 financial planners are doing the right thing. They are providing good advice to everyday Australians concerned about their retirement. And with more than 1.7 million customers, our complaint rate of <1% is small. However, we don’t always get it right.

During 2015, our wealth advice processes came under both media and government scrutiny, after the leaking of a report we had commissioned to assess our track record and identify ways to lift standards further.

Following this, we offered to appear before the Senate Economics Committee Inquiry into Financial Advice to discuss this report and what actions we are taking to improve our business and make it stronger.

During the year, our Group CEO Andrew Thorburn committed to several initiatives to substantially improve outcomes for our financial advice customers which included:

Finding and writing to customers we identify as being at risk of having received inappropriate advice over the last five years. We will review financial advice provided to these customers and where applicable, compensate for financial loss arising from inappropriate advice.

Supporting our customers to resolve complaints within 45 days.

Adding independence into our whistleblower process and our complaints process.

Advising ASIC of all advisors who leave our business and the reason why.

In the last six months, we have made significant progress on these initiatives. We want to get it right for our customers the first time and resolve complaints quickly.

Since February 2015, we have paid $1.8 million to 90 customers to resolve their compensation claims. NAB is also continuing to respond to new complaints within 45 days.

We have built independence into our complaints and review processes through the appointment of an independent customer advocate in relation to our major advice review, Professor Dimity Kingsford Smith, as well as the appointment of an independent assurance firm which will review our implementation of our major advice review.

Furthermore, we continue to pursue a strategy that is founded on the value of advice in assisting more Australians to have trust and confidence in their financial futures. This is a challenge for Australia as a nation, to help more Australians create and protect wealth for themselves and their loved ones.

2015 Prioritised topics


The table below displays the seven topics prioritised for disclosure in 2015 due to their importance to a broad range of stakeholders and to NAB’s strategy. The diagram also outlines a number of the granular drivers of these topics, as assessed in our annual materiality review, to illustrate their importance and relevance to various stakeholders. The diagram does not contain an exhaustive list of all drivers and stakeholders. Further detail can be found in our 2015 Dig Deeper report. Definitions of the prioritised topics and their relevance to NAB’s ability to create value have been provided below.


Customers

Employees

Shareholders

Suppliers

Community

Acknowledging and valuing customer security

Providing financial hardship assistance

Appropriate controls to ensure customers can repay debt

Management of ESG risk in supply chain

Increasing the diversity of our supply chain

Providing financial hardship assistance

Fair and equitable remuneration between men and women

Increased disclosure on Board and executive succession planning

Fair and responsible payment terms

Promoting financial inclusion

Appropriate controls to ensure customers can repay debt

Supporting an ageing workforce

Management of ESG risk in supply chain

Increasing the diversity of our supply chain

Supporting an ageing workforce

2015 Prioritised topics

Customer security and safety

Responsible lending practices

Ethics and business conduct

Transparency and disclosure

Improving customer experience

Values-aligned culture

Good governance processes


Definitions of 2015 prioritised topics


Customer security and safety: Investing in our technology, operations and people so that our customers’ information is protected and their data is used appropriately.

Responsible lending practices: Putting policies and processes into place so that we provide our customers with the most suitable products and that we manage exposure to ESG issues that arise through our portfolio.

Ethics and business conduct: Acting in the best interests of our stakeholders and maintaining high standards of ethical and lawful behaviour.

Transparency and disclosure: Upholding high levels of transparency on the decisions we make and the matters that impact our sustainability, profitability or stakeholders.

Improving customer experience: Continuing to engage with our customers so that we not only understand and fulfil their expectations but exceed them and deliver a great customer experience.

Values-aligned culture: Clearly articulating and embedding our values, and recognising that culture is essential to executing our strategy.

Good governance processes: Embedding management structures and policies to make sure NAB is governed effectively. Ensuring our Leadership has the capability, capacity and experience to preserve and create value. Making sure that effective succession plans are in place for key roles at NAB.

Building relationships through stakeholder engagement

Customers


At NAB, we are passionate about providing a great customer experience with a focus on making it easy for our customers, being personal and supporting our customers. We recognise that we still have work to do to make sure we can provide this experience consistently, with NPS being a key measure for our future success. In FY15, we renewed our customer focus to understand the pain points experienced through our banking processes and how we might be able to address them. In Australia, we focused on mortgage variations, simple business lending and NAB Connect (our online banking platform for business customers). In New Zealand, our Customer Basics program is using customer feedback and insights to prioritise initiatives aimed at improving our customers’ experiences.

Related prioritised topics:

Customer security and safety

Improving customer experience

Responsible lending practices

Ethics and business conduct


Employees (including unions)


NAB recognises how important our reward framework is when it comes to attracting and retaining great people. Over a number of years our people have provided feedback regarding the complexity of our annual performance review process and responding to this feedback, we introduced a number of changes. We removed the relative performance assessment (the “bell curve”), simplified scorecard objectives (ensuring alignment to values and business performance) and changed to a three-point performance rating scale.

Related prioritised topics:

Ethics and business conduct

Values-aligned culture

Good governance processes

Shareholders/Investors


NAB’s shareholders want us to focus on the areas of our business that are generating consistent, robust returns. In FY15, we made considerable progress in targeting our focus and investment on priority customer segments and in addressing our low returning and legacy assets. For more information, see ‘Responding to our challenges and opportunities’ on pages 20-21 and ‘Priority segment focus’ on pages 23-24.

Related prioritised topics:

Transparency and disclosure

Good governance processes


Government/ Regulator


While the financial services industry has been subject to substantial regulatory activity in FY15, NAB continues to strive for constructive and effective engagement with its Regulators. In FY15 this included regular senior NAB and Regulator strategic engagement including the NAB Board meeting with both APRA and ASIC and the Group CEO and senior management meeting with AUSTRAC and the Financial Ombudsman Service. FY15 also saw issues based regulatory engagements and compliance monitoring.

Related prioritised topics:

Ethics and business conduct

Transparency and disclosure

Good governance processes

Community and consumer advocacy groups


At NAB, we know how important it is to listen and respond to community concerns on a wide range of ESG topics. In response to feedback, we systematically improved the way we listen and respond to stakeholder concerns. We updated our Corporate Responsibility policy to include principles for engagement, created a dedicated page on nab.com.au/about-us/corporate-responsibility to outline our views, improved our response time to ESG stakeholder enquiries and engaged in constructive dialogue with advocacy organisations including Oxfam Australia, 350.org Australia and Market Forces.

Related prioritised topics:

Good governance processes

Responsible lending practices

Transparency and disclosure

Suppliers


Through feedback from NAB’s procurement awareness workshops and interactions at supplier diversity forums, we know that suppliers can sometimes find it challenging to engage in procurement relationships with large organisations. To address this, we continue to focus on increasing supplier diversity as an important part of NAB’s Supplier Sustainability Program. NAB supports the growth of Indigenous procurement through our ongoing partnership with Supply Nation and sponsorship of their Connect 2015 Annual Indigenous Business Tradeshow. This Tradeshow provides members and certified Indigenous suppliers the opportunity to build rewarding relationships.

Related prioritised topics:

Good governance processes

Ethics and business conduct

Values-aligned culture

1   2   3   4   5   6   7   8   9   ...   15


База данных защищена авторским правом ©shkola.of.by 2016
звярнуцца да адміністрацыі

    Галоўная старонка