We are committed to rebuilding trust in AMP to ensure it has a sustainable future – one that has shared value for clients, shareholders, employees, the community and the environment.
In consultation with stakeholders, we have identified nine material sustainability issues, in our three key focus areas, which impact our ability to create and protect value for our stakeholders into the future. These issues are outlined below.
AMP is committed to reinventing our business to deliver better outcomes for our clients and meet the financial needs of Australians. We are investing to simplify our business and processes and to improve service and value for our clients.
In 2019, more than 85,000 clients benefitted from reduced MyNorth fees, and reduced super fees announced in February 2020 will benefit a further 500,000 clients.
In 2019, we continued to listen to client feedback, asking more than 570,000 clients for feedback through NPS surveys and enacting 91 changes to systems and processes as a result.
In addition, the AMP Customer Advocate conducts impartial reviews of client complaints using a ‘fair and reasonable’ framework. In 2019, the number of client complaint reviews increased 140% from 2018, while the proportion of new or enhanced client outcomes remained steady.
AMP operates within a sophisticated legal and regulatory framework, set down by the government and enforced by our regulators. This framework covers how we serve our clients, design products and provide financial services.
In 2019, we contributed to many of the important government policy developments in the sector such as the consultation processes relating to proposed legislation for a Compensation Scheme of Last Resort and the government’s Retirement Income Review. During the year, AMP also responded to the Final Report of the Financial Services Royal Commission and appeared before the House of Representatives Economics Committee.
During 2019, we have continued to strengthen our incident, issue, breach, risks and control systems to enhance processes for the mitigation and reporting of breaches. We have also updated our Regulatory Contact Policy, to centralise our engagement with regulators.
Technology and digital transformation are creating new opportunities for clients to engage with their wealth. In 2019, we increased the functionality of our platforms to help clients bank, track cash flow, budget and model for retirement.
With greater technology adoption, the importance of cyber security and data privacy grows. We have strengthened our information security framework and training to enhance our resilience to cyber-attacks. In 2019, we notified authorities of three data breaches which impacted a small number of clients and employees and took actions to protect individuals from harm and prevent future breaches.
AMP employs more than 6,500 employees and works with many partners across our businesses, including more than 2,100 aligned advisers. We have always believed in investing in our people and their development, which is why creating the right culture is an integral part of our new strategy.
AMP has continued to make progress on our client remediation program, which is paying money back to clients of advisers who received inappropriate advice or who paid fees where there was no evidence of services being delivered. Total program spend to date, including program costs and money repaid to clients, is $264 million with $190 million paid in the second half of the year. The program remains on track for completion in 2021.
We are actively supporting our employed and aligned advisers transition to be degree-certified in compliance with the Financial Adviser Standards and Ethics Authority (FASEA). We have partnered with Griffith University to provide entry pathways and blended learning of professional development and education.
AMP encourages a respectful, diverse and safe workplace that supports the physical and psychological safety of our people. In 2019, AMP developed a mentally healthy workplace strategy to provide improved support to employees. This included training over 90 accredited mental health first aid officers throughout our Australian offices, with a further 80 to be trained in 2020.
We value differences and encourage a flexible and inclusive work environment where people can bring their whole selves to work. AMP has gender targets in place for management positions, including 40% representation on the AMP Limited Board, 47% representation for senior executives and 50% for middle management.
In 2019, our LGBTIQ+ community hosted its inaugural AMProud Week, including LGBTIQ awareness sessions and functions to champion diversity of thought and lived experience.
A key consideration of AMP Capital, our investment management business, is assessing the environmental, social and governance (ESG) performance of its investments, through dedicated investment specialists.
In 2019, AMP Capital achieved A/A+ ratings for the United Nations Principles for Responsible Investment (UNPRI) across all asset classes. It achieved top five global rankings for two infrastructure funds and scored 90% average across six real estate funds in the Global Real Estate Sustainability Benchmarking (GRESB) survey.
AMP recognises that climate change is a significant global risk driver that presents economic and environmental challenges to society. AMP has maintained an A– score in our annual submission through the Carbon Disclosure Project (CDP).
AMP Capital manages climate risk as part of its ESG investment philosophy. It considers climate-related risks and opportunities in investment strategies and provides low carbon investment opportunities to institutional and AMP superannuation clients. AMP Capital has also committed its real estate portfolio to be carbon neutral for Scope 1 and 2 emissions by 2030.
As a symbol of our commitment on climate change, AMP is carbon neutral across our own operations. In 2019, we reduced our Scope 1 and 2 emissions by 48% from 2013 levels.
We have also strengthened our supplier management framework by introducing a new Supplier Code of Practice which clearly outlines AMP expectations from suppliers, including issues such as information security and modern slavery.
The AMP Foundation works with non-profit enterprises that provide sustainable employment opportunities for marginalised Australians. Since 1992, the AMP Foundation has distributed over $100 million to help charities and individuals make a positive impact in their communities.
In 2019, the AMP Foundation distributed over $5 million in the community, including $1 million in grants through the AMP Tomorrow Fund to help 37 talented Australians achieve their dreams. Our advisers helped 623 clients affected by cancer with pro bono advice through our partnership with Cancer Council Australia.
You can find further information in our sustainability report at amp.com.au/corporatesustainability