Insignia Financial Annual Report 2022

Environmental, social and

governance report

Changing social expectations are redefining the notion of prosperity. What constitutes successful lifestyles, progress and value creation has now come to include more long-termconsiderations such as environmental impacts,

equity, equality, and community

and individual wellbeing.

Insignia Financial understands financial wellbeing is a key determinant of overall wellbeing, along with broader socioeconomic settings that drive prosperity. This is why we are pursuing strong environmental, social and governance (ESG) practices.

For Insignia Financial, ESG is about achieving long-term prosperity for our business, clients and shareholders through a positive and engaging approach to social, environmental and governance

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Business highlights

considerations - including the pressing issue of climate change. In this way, we will remain relevant and resilient, achieving greater employee engagement and improving client, member and shareholder outcomes.

At Insignia Financial we consider ESG opportunities and risks through two broad lenses across our business: at a corporate level and at a fiduciary level (superannuation and investments). At a corporate level, we endeavour to be recognised as a good corporate citizen through our social and environmental impacts. At a fiduciary level, we believe that the application of ESG factors into our investment processes delivers better outcomes for our members and clients, in addition to positive

social impacts.

Environment

Social

• In June 2022,

•

Over 160,000 clients

Insignia Financial

and members

achieved carbon-

engaged through

neutral status

face-to-face and

for operational

digital general advice,

emissions, a big

financial wellbeing

step towards

and education

achieving our

programs

net zero 2050

•

The IOOF Foundation

commitment

Disaster Relief

Appeal raised over $160,000 for families affected by floods in NSW and Queensland

• There was a 35% increase in employee financial charitable giving in 2022

Governance

  • Over 46% of senior leadership roles are held by women
  • Alignment of responsible investment approach across registrable superannuation entities
  • In an Our Voice survey, 85% of staff agreed
    Insignia Financial values diversity

12 | Environmental, social and governance report

Materiality

We use the concept of 'materiality' to define the ESG topics that matter to our business and stakeholders.

We believe identifying, monitoring and reporting on material ESG risks will help Insignia Financial build trust with our community and business stakeholders and achieve our strategic aim:

to be Australia's leading specialist financial wellbeing organisation.

To assess our material exposure, we engage with stakeholders including members, investors, employees, industry bodies, regulators and research partners.

We have separated material ESG matters into the following categories:

Our

Our

Our

Our

clients

community

people

business

•

ClientFirst

•

Carbon footprint

•

Culture

•

Corporate

culture

•

Climate action

•

Employee

governance and

•

Financial wellbeing

•

The IOOF

wellbeing

risk management

•

and client

Foundation

•

Hybrid working

Privacy

engagement

•

Employee giving

•

Diversity

•

Cybersecurity

•

Product

and volunteering

and inclusion

•

Financial

simplification

•

Supporting

Accountability

•

Advocating for

reconciliation

Regime

advice

•

Modern slavery

•

Board effectiveness

•

Advice research

•

Responsible

•

Executive

•

Anti-bribery and

investment

remuneration

anti-corruption

•

Delivering advice

•

Climate risk

confidence

Environmental, social and governance report | 13

Insignia Financial Annual Report 2022

Progress against United Nations Sustainable Development Goals

The United Nations Sustainable Development Goals (UN SDGs) are a shared blueprint for peace and prosperity for people and the planet. Insignia Financial supports the goals and uses them as a framework to guide our ESG principles and initiatives. While we support all 17 UN SDGs, we have prioritised six goals, given their relevance to our business and our ability to drive change in these areas.

Goal

Aims to achieve

What we are doing in response - progress update

2021

2022 progress

Ensure

• Invested in and promoted initiatives

• Extended 'Your mind matters'

healthy lives

to support employee mental and

employee educational program to

and promote

physical health

manage mental wellness - over 4,000

wellbeing for all

• Implemented 'low traffic days' across

attendees

Good health

at all ages

IOOF to help employees 'digitally

• Over 600 leaders (82%) attended

detox'

'Mental Health Awareness' leadership

and wellbeing

• Launched 'Your mind matters' staff

education

educational program to manage

• Extended our monthly 'low traffic days'

mental wellness

to help employees 'digitally detox'

• Extended financial wellbeing

• Increased frequency of Our Voice

education program to improve lives

employee engagement surveys from

of Australians

annual to quarterly

• In a staff survey, 88% of our people

said they felt supported around

flexible work arrangements (+2 points

on the external benchmark8)

• Launched Vivo, a new health, wellness

and recovery service, to MLC Super

Fund members

Ensure inclusive

• Engaged 10,000 members and clients

• Provided general advice and financial

and equitable

through 1:1 general advice and

coaching to 14,000 fund members

quality

assistance, financial wellbeing and

and clients

education

education programs

• Ran 590 education events reaching

Quality

and promote

• Created an online portal as a

nearly 11,000 members

lifelong learning

resource for all Australians to access

• Completed 32,000 member

education

opportunities

educational material or request

interactions via tailored

for all

pro bono support

engagement programs

• Delivered over 1,000 hours pro

• Completed 110,000 digital interactions

bono practical financial guidance

with members and clients through our

and support to over 200 individual

Education Hub, SuperSizer, Personal

community members

Super and Insurance Needs calculators

Ensure women's

full participation

at all levels of

decision-making

Gender

in political,

economic and

equality

public life.

  • Improved female representation at executive and management levels, reaching our 40% target across Senior Manager and Other Manager levels
  • Partnered with Financial Executive Woman (FEW)
  • Financial sponsorship of the Positive Progression of Women Awards
  • Recorded an increase in positive sentiment around diversity and inclusion in our engagement survey:
    • +9 points - 'I feel like I belong at IOOF'
    • +10 points - 'Our leaders champion the importance of diversity and inclusion'
  • Improved female representation across executive and management levels, exceeding our 45% target at senior manager level
  • Reduced gender pay gap to 14.3% - significantly exceeding national and industry benchmarks
  • Implemented the 'Our Leading Women' program, designed to improve the visibility, connections and career growth prospects of high- potential women
  • Working towards achieving Workplace Gender Equality Agency (WGEA) Employer of Choice for Gender Equality citation by 2024

8 Culture Amp Australia 2022 benchmark - www.cultureamp.com/science/insights/australia

14 | Environmental, social and governance report

Goal

Aims to achieve

What we are doing in response - progress update

2021

2022 progress

Reduce

• Implemented a Group Modern

• Working with Reconciliation Australia

inequality within

Slavery policy and action plan

to finalise our Reconciliation

and among

• Commenced developing new

Action Plan

countries,

Innovate Reconciliation Action Plan

• Second Modern Slavery Statement

Reduced

including

• Increase in positive sentiment

submitted to the Australian

human rights

inequality

around diversity and inclusion in our

Border Force

and Indigenous

• Established five diversity and inclusion

peoples' rights

engagement survey:

- +9 points - 'I feel like I belong at

working groups: Accessibility, Gender,

IOOF'

Life and Family, Multicultural and Pride

• In a staff survey, 85% of our people

- +10 points - 'Our leaders

agreed Insignia Financial values

champion the importance of

diversity (+5 points above the external

diversity and inclusion'

benchmark9)

• In the same survey, 77% of our people

agreed we build teams that are

diverse (+13 points above the external

benchmark9)

Ensure

• Changed printer paper supplier to

• Worked with Blue Connections IT to

sustainable

100% recycled nationally

recycle over 1,000 IT assets

consumption

• Nearly 1 tonne of office equipment

• Sold or redeployed more than

and production

was collected by Green Collect from

880 IT assets

patterns

Responsible

our Melbourne head office, to be

• Rolled out more initiatives to

consumption

recycled rather than going to landfill

encourage clients to move to online

• Launched pilot campaign encouraging

communications

and

clients to move to electronic

• Used 100% recycled printer paper

production

statements and communications

across all offices

• Recycled 50 kilograms of toner cartridges

Climate action

Take urgent action to combat climate change and its impacts

  • Integrated climate change risks into new Responsible Investment Statement
  • Measured carbon intensity of equity exposure across in-house multi- manager funds
  • Measured scope 1, 2 and 3 operational emissions for financial year 2021
  • Achieved carbon neutral status for business operational emissions in June
    2022 by purchasing carbon offsets
  • Committed the business to achieving 'net zero 2050' for operational emissions
  • Applied for Climate Active certification
  • Conducted climate risk education with all responsible entity boards (responsible and registrable superannuation entities)
  • Applied climate risk model to MySuper funds
  • Measured carbon intensity of equity exposure across in-house multi- manager funds

9 Culture Amp All Industry Global 2022 benchmark - www.cultureamp.com/science/insights/all-industries-global

Environmental, social and governance report | 15

Insignia Financial Annual Report 2022

Our clients

ClientFirst philosophy - delivering what matters

ClientFirst is a philosophy that puts our clients at the heart of everything we do. It's a different way of thinking about the work we do, the people who do the work, and how the work should be done. We take an outside- in, systems view of our organisation.

This approach helps us achieve our internal target of achieving 'today's work today' whenever possible.

We've set a target of completing all work requests on the same day in 50% to 70% of cases for our Insignia Financial Group clients and members. In financial year 2022, we achieved an average of 51.3% on this metric for IOOF products.

We use data collected from client interactions to understand our processes through our clients' eyes. We continuously improve the way we work to remove waste and deliver value to our clients. To take one example of this client-first approach, we've removed many internally focused service level agreements and measures of 'good service' and replaced them with data that recognises the client is the only true arbiter of 'good service'.

Throughout the year we spent time immersing our people in the ClientFirst philosophy and ways of working. This way of thinking is important - not just in operational teams but all areas of Insignia Financial - as everyone has the opportunity to improve the system of work and how we deliver value to our clients and each other.

Financial wellbeing and client engagement

Providing our fund members and investment clients with access to relevant information and offering a wide range of financial insights - factual information, general, scaled and comprehensive advice - is essential in delivering on our strategy to improve the financial wellbeing of all Australians.

Following the acquisition of MLC, we now have additional people and technology resources to better engage with our clients and members. In addition, we continued to invest in resourcing our Member Engagement division.

Overall, this additional capability has resulted in a material increase in client and member engagement both digitally and face to face.

In total, we had over 160,000 client engagements.

Delivery of general advice and

financial coaching to over

14,000

clients and members

590 members education sessions

held for our Workplace Super clients, with over 10,800 attendees

110,000+

digital engagement interactions with members and clients through our Education Hub, SuperSizer, Personal Super and Insurance Needs calculators

An additional

32,000

members interactions

through our tailored engagement programs

"We believe decisions about how the work is done should be made as close to the work

- and the client - as possible. This means the person who answers the client call is the person who will own and complete whatever work is required by that client. This is what we call the ClientFirst way."

Tanya Azar

Client Solutions & Knowledge Specialist

From left: Kon Soulianidis (Lead IT Business Partner) and Tanya Azar

16 | Environmental, social and governance report

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Disclaimer

Insignia Financial Ltd. published this content on 29 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 October 2022 07:21:05 UTC.