Environmental Policy
Environmental Overview
As a financial services provider, the Group's primary aim is to meet the financial needs of its clients. In doing so, the Group recognises that it has an impact on the environment, both directly through the running of its offices and indirectly through meeting the investment needs of its clients. The Group introduced its environmental policy five years ago. Mr Christopher Collins, the Chairman of Old Mutual plc, has been designated as the member of the Board responsible for the Group's environmental performance.
2006 was a year of growth for the Group and involved the further rolling-out of the Group's policies in this and other areas. The integration of Skandia and a programme to raise environmental awareness were the main areas of focus for 2006.
A CSR conference was held in June 2006, one day of which was devoted to a discussion of the environmental issues facing the Group and how these should be addressed.
At each business unit, objectives have been set and individuals named to oversee environmental issues. Monitoring and reporting against Key Performance Indicators (KPIs) fall under these individuals' remit and this discipline is, where possible, applied across the Group. The Group's KPIs and environmental targets are reviewed annually to ensure their continuing appropriateness. Reporting against these targets is published by the business units in their individual reports. At Group level, annual comparable data is collated and disclosed to rating agencies and other regulatory bodies.
The Group's environmental objectives are:
- to ensure compliance at local, national and international levels
- to minimise the consumption of energy, water and materials across operations
- to minimise solid waste generation by waste re-use and recycling wherever possible
- to avoid the use of materials that may cause harm to the environment
- to promote internal awareness of environmental issues with staff
- to support environmental initiatives by employees and relevant external groups.
These objectives are applied across the Group at the business unit level, using best practice in environmental management. Where appropriate, business units have introduced policies more specifically tailored to their particular operations.
Energy use
Across Old Mutual's sites, energy use is tracked and reported centrally. Many buildings where an Old Mutual company is the owner-occupier have undergone energy efficiency reviews and any recommendations received have been investigated. Energy use in the property portfolio managed by Old Mutual Properties in South Africa is also tracked and more information on the resource use of these buildings is included in the OMSA's Corporate Citizenship Report. Where Old Mutual is not an owner-occupier, efficiency drives are still undertaken at many of the buildings.
Water consumption
Old Mutual measures water consumption across the Group. Figures show a rise in water consumption over the year. This is due to the introduction of air conditioning units at some of the offices, which has a significant effect on water use. In response to the rise, awareness programmes have been introduced in some offices to highlight activities that staff can undertake to reduce the level of water consumption. Further water reduction programmes will be pursued in 2007, with the aim of reducing consumption and meeting targets set around the business units.
Waste production
With the aim of reducing waste production across the Group, many operations have recycling facilities in place for a variety of substances. We track both the amount of waste generated and that which is recycled. We look for ways to re-use furniture and equipment that is not longer required and dispose of all equipment in line with applicable legislation. To reduce the production of waste at the London head office, staff are encouraged to double-side their printing and only print documents when necessary. Recycling bins are in place around the office for all kinds of paper and plastic, and cans and glass can also be recycled. As the head lessee of Old Mutual Place in London, Old Mutual plc also works with its subtenants to support recycling schemes and environmental awareness-raising throughout the building.
Climate change
Old Mutual recognises that climate change is a major issue and affects the financial sector both directly thorough the offices it runs and indirectly through its businesses. Old Mutual is committed to reducing its carbon footprint and plans to do this through a carbon management programme.
At the beginning of 2007 Old Mutual became a signatory to The Carbon Disclosure Project (CDP), a global initiative that informs investors on issues of climate change. Nedbank Group is also a signatory to the CDP.
Hazardous materials
The Group has little contact with materials that could do great damage to the environment. It has ensured, where relevant, that it has avoided using materials that may cause harm.
Environmental management
The integration of Skandia has increased the level to which the Group communicates through Environmental Management Systems (EMSs). The EMSs that the Group has in place follow ISO14001 guidelines. Currently over 50% of the Group has EMSs in place. Many follow ISO14001 guidelines, although not all are certified. Data is regularly gathered and performance against site objectives and targets is monitored and audited. Data disclosure from the systems in place occurs at both OMSA and Nedbank, which each report separately on resource use in their Corporate Citizenship and Sustainability Reports. Data from the systems is collated centrally and work will continue to align Skandia's systems to those in place across the rest of the Old Mutual Group.
Reporting and benchmarking
Old Mutual plc is a member of the FTSE4Good Index, the selection criteria for which include working towards environmental sustainability, developing positive relationships with stakeholders, and upholding and supporting universal human rights.
Old Mutual and Nedbank Group are also each included in the JSE's Socially Responsible Investment Index, with Nedbank Group ranked first in the low environmental impact category. This Index measures participant companies' commitment and performance against a triple bottom line of sustainability in terms of environmental, economic and social impacts.
Nedbank Group has also been listed on the Dow Jones World Sustainability Index (DJSI) for a second year. The DJSI was the world's first benchmark to track the performance of leading companies in terms of corporate sustainability. Nedbank Group is one of only four companies witha primary listing in South Africa to be listed in the Index.
Old Mutual has withdrawn from the Business in the Community (BITC) Index for Corporate Responsibility. Although useful to help structure internal reporting, it has been agreed that, across the Old Mutual Group, the focus will instead be on the FTSE4Good Index and that all relevant business units will be required to comply, as a minimum, with the FTSE4Good requirements. Business units may, however, also participate in other indices or benchmarking surveys if they consider this appropriate.
Environmental Policy
Old Mutual recognises that it has an impact on the environment, both directly through the consumption of energy and other resources used throughout its daily business activities, and indirectly through its supply chain.
The company's environmental strategy is to strive to reduce the environmental impacts of its operations. Environmental considerations will form an integral part of daily business, including management planning, capital expenditure and operating procedures.
Old Mutual therefore commits its business units world-wide to applying best practice in environmental management, and sets itself the following environmental objectives:
- to ensure compliance with all local, national and international regulations applicable to its business services;
- to minimise the consumption of energy, water and materials resources in its operations and where practical, to re-use and recycle materials;
- to minimise solid waste generation from its operations and promote waste re-use and recycling wherever possible;
- to avoid where possible the use of materials across its operations that may cause harm to the environment;
- to promote internal awareness of environmental issues with its staff and to provide appropriate training where necessary;
- to support through its community assistance programmes, the promotion of environmentally related initiatives by its employees and relevant external groups;
- to engage with its key stakeholders to ensure it is responsive to their expectations and strive to achieve ongoing performance improvements.
Responsibility for implementing this Policy, and its regular review, has been assigned to Julian Roberts, Group Finance Director.
This Policy was approved by the Board of Old Mutual plc in April 2002. The Board will periodically review the Policy. Old Mutual also commits itself to report on the Group's performance on environmental matters in its Annual Report.
Jim Sutcliffe
Chief Executive
Old Mutual plc
2002