ASB in your community

ASB in your community
2008/2009
1847
1
2010
Contents
Pg
ASB in your community
1
A message from our CEO
2
About ASB 3
Our customers 6
Our colleagues
11
Our community
16
Governance and management
22
Engagement
24
Our goals
28
Key indicators
30
ASB in your community
Introduction
Welcome to ASB’s first corporate responsibilty report. This report tells you about ASB, our values and the work we are
doing to build and support sustainable New Zealand communities. While this is our first report, a passion for helping
to develop sustainable businesses is not something new to ASB. It’s part of our culture. We want our customers,
colleagues and community to know about the work we are doing in this area, the challenges we face, the progress we
have made and our goals for the future. It is a journey. We don’t have it all sorted, but we are working every day on
making ASB a better and more sustainable company, and helping our customers and community partners to do the
same.
The ASB GetWise financial literacy programme in action.
About this report
References to ‘ASB’ mean the ASB Group of companies.
In general this report covers our financial year to 30 June 2009. Exceptions are clearly identified and include our vision
and values, which were updated in October 2009 and our greenhouse gas emissions which cover the 2008 calendar
year.
We have used the Global Reporting Initiative’s G3 framework for guidance on content. Full details of our financial
performance are set out in the ASB General Disclosure Statement 2009.
A copy of this report is available in ASB branches and on the ASB website, www.asb.co.nz.
1
A message from our CEO
For ASB, sustainability is quite simply
about doing the right thing. It’s about
making the right decisions, every day,
at all levels of our organisation.
It’s about being a good corporate citizen and
understanding that our business operations have an
impact on our current and future stakeholders – be it our
customers, colleagues or community. We believe that if
we aspire to be world class for these three Cs every day,
we will deliver sustainable and profitable business growth
over the long term.
So our focus is on embedding sustainability into our
everyday business and our culture, by educating and
empowering our people to make the right decisions
and by actively supporting our local New Zealand
communities. It’s about taking action, not just talking
about it. Whether it’s choosing to recycle, helping out in
the community, providing exceptional customer service
or improving energy efficiency – they are all important
actions to which each of us can contribute and they can
make a big difference.
The year to June 2009 has been a period of significant
change and numerous challenges for ASB, two major
catalysts being the global financial crisis and a change in
leadership. These events have provided the ideal platform
for focusing on positive actions that will ensure ASB is
well positioned for the future.
We have renewed our vision, values and purpose and
restructured our business to ensure we are working
positively towards our vision of being world class
for our customers, colleagues and community. We
have strengthened our commitment to responsible
business practices, sound governance and effective risk
management. These are the foundations of our business.
Over the last 12 months:
2
the recession, the ASB team instead taking up the
challenge to contain costs and accepting the need
for initiatives such as a temporary salary freeze and
optional reduced working weeks.
> In an environment where costs were being cut across
our business, we committed to maintaining our record
level of support for New Zealand communities at
over $10m per annum. We have developed and are
now implementing a revised community strategy, the
objective being to positively contribute to the long term
sustainable development of our local communities.
CUSTOMERS
COLLEAGUES
COMMUNITY
In 2009/10 we will continue to do the basics well and
maintain fundamentally sound business practices during
a period of continued economic uncertainty - growing
deposits; working to sustain and improve even further our
high levels of customer engagement; embedding excellent
risk and control practices; sound cost management and
supporting our colleagues.
> For our customers we have continued to invest in the
long term, opening new branches, launching two new
cards – Visa Debit and Visa Platinum and introducing
PIE cash and term deposit funds. We established a
specialised Financial Help Team, backed up by a code
of commitments for our customers facing financial
difficulty. In the business space, ASB’s $1b Job
Creation Loan Scheme was launched in March 2009
saving or creating almost 900 jobs for New Zealanders
during 2009.
Our sustainability goals are synonymous with these
good business practices. More than ever it is clear that
economic objectives need to work hand in hand with
social and environmental objectives – as part of the
restructure of our business, we have recognised the
importance of not only our customers and colleagues, but
also the community and the environment to ensure our
long term success as a business. Over the next 12 months
we are confident that tangible results and benefits will
ensue as a result of these changes.
> Ongoing support for our ASB colleagues is
demonstrated through our commitment to redundancy
only as a last resort. We have introduced a number
of initiatives to ensure we live up to this commitment,
including formally confirming we will not offshore any
jobs. We have made no redundancies as a result of
Charles Pink
Chief Executive Officer
ASB
About ASB
3
About ASB
Who we are
ASB has been keeping New Zealanders one step ahead since Saturday 7 June, 1847. That’s a long time. Back then, our
very first mortgage loan of £400 bought 60 acres of farmland in Mt Eden.
Since then, the ASB brand we know today has been built on the foundations of service, technology leadership and
community. We look after our people, and that means our staff, our customers and the communities in which we operate.
To achieve this we have been innovative, and our 160 year plus history is one of many firsts.
> In 1906 ASB handed over £10,000 to erect what is now known as AUT in Auckland.
➢> In 1926 ASB was the first bank to introduce School Banking, and we are still the leading provider of this service
to New Zealand schools.
> During the Great Depression ASB donated over £130,000 to help the city and central Government with financial
assistance.
> In 1969 ASB was the first to install a central computer system enabling real time banking across all of its
branches.
> During the 1980s deregulation period New Zealand’s trustee savings banks including ASB were reconstructed.
ASB was renamed ASB Trust Bank, then ASB Bank in 1987.
> In February 1989 the Commonwealth Bank of Australia purchased a 75% stake in ASB from the ASB Bank
Community Trust.
> In 1997 ASB celebrated its 150th year. In the same year ASB was the first bank in Australasia to offer secure
internet banking with FastNet. Later that year ASB launched New Zealand’s first internet, ATM and telephone only
bank - BankDirect.
> In 1998 ASB was the first bank to offer weekend banking.
> In 2000 the Commonwealth Bank of Australia purchased the remaining 25% of ASB. In that same year ASB
introduced New Zealand to Ira Goldstein, the American banker at the heart of one of the most loved and effective
advertising campaigns in New Zealand financial services.
> In 2003 ASB was the first bank in New Zealand to offer personal customers the option to stop receiving paper
statements. In 2006, Pago was launched, a virtual wallet allowing subscribers to send and receive money on-line
or via mobile phones.
With over 5,000 employees nationwide and a new vision to be ‘World Class for our Customers, Colleagues and
Community’, you can be sure that ASB’s next 160 years will also be full of firsts.
4
VISION.
VALUES.
PURPOSE.
VISION
VALUES
TO BE WORLD CLASS FOR OUR
CUSTOMERS, COLLEAGUES
AND COMMUNITIES
CARING
AMBITION
Respect & support. We are like a family: the
Striving to be the best. We play to win
way we care for each other and our customers
and thrive on healthy competition. We always
sets us apart. We support our people to be their
seek a better way, and continually raise the bar.
best and to be themselves.
PURPOSE
EMPOWERING NEW ZEALANDERS
TO ACHIEVE THEIR FINANCIAL
DREAMS
INTEGRITY
PASSION
Doing the right thing. We are trustworthy.
Energy & enthusiasm. We are dynamic,
We build strong relationships based on fairness
highly committed and we love what we do.
and honesty.
Our customers
6
Our customers
At ASB we aim to truly engage
our customers and surpass their
expectations.
ASB delivers quality banking products and services to
almost 1.2 million customers. In today’s busy world, we
recognise that convenient and flexible banking services
are a necessity. Accessibility has always been core to the
service provided by ASB – we understand that different
people want to interact with us in different ways. We
will continue to make it as easy as possible for all of our
customers to bank with us when and in the way they want.
Key customer challenges
and our response
The global economic crisis has touched all New
Zealanders and brought significant financial uncertainty
for many of our retail, business, corporate and rural
customers. Unemployment in New Zealand has risen
and business has slowed. Volatility in agricultural
commodities, especially the dairy payout, unfavourable
movements in the exchange rate and uncertainty around
the NZ Emissions Trading Scheme created a particularly
challenging period for many New Zealand farmers. It has
been a tough year for everyone and helping customers
through this period has been a priority.
7
To address these challenges our
focus in 2008/09 has been on:
> We launched a range of succession planning services
to support our small business customers with this key
challenge many of them face. Developments included:
Supporting our customers through financial
hardship
> Establishing a quarterly Succession Planning
Monitor survey (launched September 2008)
> We published a Code of Commitments to assist those
of our customers experiencing financial difficulties as
a result of changed personal circumstances. These
commitments include:
> Providing free succession planning advice and
materials; and
> Launching Succeed magazine – a communication
focused on succession planning.
✓ Working with our customers to help them stay in
their own homes
✓ Communicating frequently, fairly and openly with
customers about the financial issues they raise
with us
✓ Doing our best to help our customers to quickly
find and put in place a solution to their financial
difficulties that works for both of us
✓ Ensuring that our Financial Help Team talks to our
customers in their own language if desired.
> In April 2009 we established a Financial Help
Line (0800 27 27 35) for our customers to call,
anonymously if they wish, to discuss their financial
circumstances and receive positive support. The
Financial Help Team assisted almost 700 customers,
with borrowings totalling $200m, between April and
December 2009.
> In March 2009 we announced the ASB Job Creation
Loan Scheme - a fund of $1 billion to lend to New
Zealand businesses at below market interest rates
to spend on projects that will create employment
or prevent people from losing their jobs. By 31
December 2009, $72.4m of loans were approved,
along with $30m of associated lending, either saving
or creating almost 900 jobs in our New Zealand
communities.
> We re-focused our resources to provide additional
support to our existing rural customers because of
the financial uncertainty partly generated by volatility
in the dairy payout. We committed to selling a farm
only as a last resort and not a single ASB dairy farmer
had to sell their farm in 2008/09 as a result of financial
pressure caused by income volatility.
Delivering responsible products and services
> ASB Group Investments launched New Zealand’s
first global sustainability fund in April 2008, offered
under the FirstChoice KiwiSaver Scheme. The Global
Sustainability Fund seeks to achieve superior returns
while focusing on investing in global companies that
are committed in their business decision making
and operations to minimising the social, economic,
environmental, ethical and governance impacts of
their business on society.
> ASB partnered with EcoInsulation to become the
first New Zealand bank to provide subsidised
personal loans to consumers for insulation and clean
household heating as part of the Energywise Funding
Programme.
8
* Global Finance Magazine, October 2009
> We continued with new product development to meet
the needs of our retail customers, launching two new
cards (Visa Debit and Visa Platinum) and introducing
PIE cash and term deposit funds through ASB Group
Investments.
> We continued to offer all ASB retail customers a free
financial health check (FINAP), helping customers
to manage their money more effectively and avoid
potential financial problems.
Building and supporting financial literacy
> We re-invigorated our school banking offering in New
Zealand primary schools
> Three financial literacy tools were launched for ASB
customers:
✓ Your Money Explained – a website link filled with
information and tools to help customers make
more informed decisions about their finances
✓ Track My Spending – an online financial help tool to
assist customers to manage their money
✓ In November 2009 we announced the launch of
GetWise, a new financial literacy programme for
primary school children.
Continuing to improve customer service through
greater engagement
> We continued to monitor and measure customer
service across all areas of our business, achieving
increased satisfaction levels across retail, small
business, corporate ($10m + turnover) and rural
customer groups
> We continued to focus on improving customer
engagement, measuring engagement levels through
Gallup’s CE 11 survey
> We implemented TOFU (Take Ownership, Follow
Up) to empower our colleagues to deliver what our
customers tell us is most important – taking ownership
of any issues they raise and following up until they are
resolved.
Providing safe and secure banking
> Safe and secure banking is a cornerstone of banking at
ASB. In 2009 ASB was ranked the 17th safest bank in
the world by Global Finance Magazine’s annual survey
of banks from around the world*.
Case studies
1. Preserving jobs at Canaan Cheese
One of the New Zealand businesses that has benefited from an ASB
Job Creation Loan is Canaan Cheese in West Auckland. Canaan Cheese
is a boutique, award winning, dairy cheese company producing superb
cheese from pure cows’ milk. All cheeses are hand made to the highest
standard and quality. The cheeses fill a premium niche in the market –
being low fat, no preservatives and certified kosher.
Ofer Shenhav (previously owner of Pitango) and Angus Allan (founder of
Naked Organics) were looking for a new challenge in the food industry.
In Canaan Cheese they saw an opportunity to bring together their vast
experience and complementary skill sets to save a fledging business
and turn it into a profitable, well known company.
Angus Allan and Ofer Shenhav from
Ofer had been an ASB customer for six years. He discussed this new
Canaan Cheese.
opportunity with his long term ASB Commercial Manager, Carol Lepupa,
who suggested he consider a Job Creation Loan. “Carol was fantastic”, says Ofer. “She confirmed that we were
eligible for a Job Creation Loan and moved very quickly to set it up. You can say all the good things you like about
Carol. She has been in her job for many years and it is fantastic. I know her, she knows me and because we have that
history it really works.”
With the Job Creation Loan in place Ofer and Angus purchased Canaan Cheese Limited and established a new
company, Epicurean Dairy Limited – preserving 15 New Zealand jobs in the process. All existing staff have been
retained in the new business and are now focusing on a very bright future for them and the company.
The new owners have plans to significantly grow the business, creating further New Zealand employment
opportunities in the future. “We want to grow quickly. We want a sustainable brand and a sustainable practice. For us
that means looking at organic products, good packaging and ensuring efficient use of energy. We are learning as we
go, but we’ll be looking hard at ways we can create opportunities and become more sustainable” says Ofer.
2. School banking reinvigorated
ASB has reinvigorated its school banking programme – an institution it
pioneered in 1926.
The ASB SmartStart Survey undertaken in October 2008 asked over 450
students aged 8 to 12 about their understanding of saving money. The
results were alarming, with 13% of the children surveyed unable to name
one bank or financial institution and 75% of children either not having a
bank account or rarely using it.
The refresh of ASB’s school banking programme at the start of the
school year in February 2009 has already generated awareness and
discussion amongst primary school students about savings. We aim to
encourage the next generation of New Zealanders to reconnect with
good saving practices.
School banking is an ideal way to achieve this because it reaches
children when they are young and can form the habit of saving.
ASB school banking is offered across New Zealand – with almost 6,000
children actively banking across almost 400 schools by June 2009.
Deposit envelopes are made from 100% recycled paper.
9
ASB school banking at Tuakau Primary School
in February 2009.
3. Delivering financial help
On 1 April 2009 ASB established a dedicated financial
help team. It includes a phone line for customers to
call, anonymously if they wish, to discuss their financial
circumstances and receive positive support.
It’s a team made up of people with plenty of life
experience who like to listen and make a positive
difference to people’s lives. Their objective is to set
customers back on a path to financial soundness –
helping them to work through a difficult financial period
and come out of it feeling in control of their finances
and positive about the future.
A customer in financial difficulty is someone who is
unable to meet their ongoing financial commitments
due to an unexpected or life changing event; perhaps
due to injury or illness, losing their job or income, a
change in relationship or death. If one thing has become
clear since establishing the team, it is that tough
financial times can hit anyone – regardless of ethnicity,
wealth, age or gender.
By the end of December 2009, the Financial Help Team
had assisted almost 700 customers. According to
Paul Marsick, Head of Credit Solutions, “the number
of cases we are dealing with has been higher than first
expected – we didn’t realise how many people there
were out there who needed financial support or just
wanted someone to talk to. We are opening around 15
new cases a day at the moment.”
Paul Marsick,
Head of Credit Solutions
“It is good business to help
people through difficult times.
Providing financial advice and
support is critical to building
long term customer loyalty and
relationships.”
Rod Gardner,
Financial Solutions Manager
“We want to make a real difference
in the community. It’s incredibly
satisfying to be able to resolve
concerns and our team gets a
real buzz out of being able to help
people out.”
Anna Cossington
Financial Solutions Specialist
“I love being able to help when
people think that they are at the end
of the road. It can be emotionally
gruelling, but it is so nice to be able
to put people at ease and show
them that there is light at the end of
the tunnel. It’s really rewarding.”
The team works to help customers help themselves,
considering everything from spending patterns and
budgeting to account structure. Sometimes they refer the customers on to other organisations that may be able to
provide broader support. Each situation is unique and requires a specifically designed solution to ensure long term
financial health for the customer. Having said that, there is one common theme and that is helping New Zealand
families to stay in their own homes. 90% of the issues to date have involved home loans and ASB has committed to
working with all customers to help them stay in their homes.
Paul Marsick sums it up: “Our responsibility continues throughout a customer’s financial life – through childhood,
sickness, buying a first house, unemployment… you can’t create long standing relationships with customers unless
you are there for the long haul. We look at the whole financial position, not just the single issue. We are about ensuring
long term financial security by helping our customers to help themselves.”
10
Our colleagues
11
Our colleagues
ASB is committed to fostering a culture
where people are engaged, passionate
and valued.
Great service stems from our people.
Key workforce challenges
and our response
ASB has undergone significant organisational change over
the last year – partly in response to the global financial
crisis, but also to ensure we are well positioned for future
growth and delivering on our vision – to be world class
for our customers, colleagues and community. Twoway communication and transparency have been key to
managing this change, with a strong focus on supporting
our colleagues and maintaining an engaged and
passionate workforce.
12
Our focus in 2008/09 has
been on:
Ensuring the health and well-being of our
colleagues
Job preservation during the global financial crisis
Ensuring ASB people are physically and mentally well is
a basic foundation for ensuring a happy and engaged
workforce. To support this we:
> Preserving jobs and minimising uncertainty and
insecurity for our colleagues has been a priority during
the global financial crisis. To achieve this we:
✓ Communicated regularly with our colleagues about
the financial crisis, the economic environment and
ASB’s responses to it
✓ Introduced a short term salary freeze for colleagues
earning over $50,000
✓ Reduced the executive leadership team’s salaries
✓ Offered our colleagues reduced hour working
weeks
✓ Focused on filling all vacant positions with internal
candidates first
✓ Formally confirmed we will not offshore jobs – all
roles are based and performed in New Zealand
✓ Ensured that redundancy is and will remain a last
resort - always.
Maintaining an engaged workforce during a
period of significant change
> We continued ASB’s strong focus on building and
maintaining a great place to work. Despite the
global financial crisis, overall employee engagement
rose marginally from 4.45 to 4.46 between 2008 and
2009, with brand advocacy also increasing:
Brand Ambassador Index - ASB
Results*
2008 2009 Shift
Know what ASB stands for and
what makes them different from
competitors
71% 75%

Encourage familiy members and
friends to use ASB’s products
and services.
63% 68%

* Results show the proportion of people who selected 5 (Strongly
agree) on a scale of 1 to 5.
> We asked our people what they loved about
working at ASB so we could further define,
celebrate and nurture our core values during
challenging times. We used this feedback as the
basis for refreshing ASB’s Vision, Values and
Purpose.
13
> Offered a HealthCheck to all ASB employees
> Continued to provide Group Income Protection and
Disability & Life Insurance for all ASB permanent
employees.
Encouraging diversity in our workforce
As a first step towards encouraging greater diversity,
in 2008/09 we began measuring and monitoring the
selection process for leadership roles by gender. We
also advertise all roles internally. We have already seen
more women in senior management appointments, a
trend which we expect to continue into 2010.
✓ Established a special support service for
colleagues in disestablished roles as a result of our
organisation redesign, to help them find a new role
at ASB
> Provided support to 322 colleagues through our
Employee Assistance Programme and continued
to provide dedicated resource to help colleagues in
crisis
Providing greater workforce flexibility
Flexibility is one of the most important options we
can offer to our colleagues. In November 2008
we introduced new leave options to support and
encourage our colleagues to balance their work
and personal commitments by allowing them to
take additional periods of unpaid leave or purchase
additional leave. Whether it’s an overseas holiday; more
time with the kids during school holidays; time to study
or simply more time at home and less at work. These
new leave options provide greater flexibility for our
people.
We also introduced ‘key time’ positions in our branch
network – providing better service during peak periods
while increasing part-time opportunities for colleagues.
Case studies
1. Health checks save lives
ASB launched a HealthCheck programme in 2005. All ASB permanent
employees are given the opportunity to have a HealthCheck every two years,
which includes a questionnaire, blood tests and testing of physical parameters blood pressure, height, weight and vision. Staff complete a questionnaire about
nutrition, exercise and lifestyle which provides them with a personal report they
can discuss with a health professional. The programme is voluntary and results
are confidential.
HealthChecks have literally saved lives. In some cases ASB people have
discovered they are diabetic and have then been able to take early action to
reduce risks and look after their health. Many people have been referred on
to doctors with high blood pressure (“the silent killer”) and in one case a staff
member was taken straight to hospital as the blood pressure result revealed a
significant risk of a stroke.
Many ASB colleagues, in some cases whole departments, have made positive
changes to their health and life style after completing HealthCheck – working to
reduce cholesterol, improve nutrition, increase exercise and shift to better work / life balance.
In the words of Jane Boyd, ASB’s health champion, “Health checks are very important as many people don’t visit
a doctor unless they are sick. This programme gives people an initial assessment and other tools to actually do
something proactively about their own health. Our people also have access to a wonderful website that not only
keeps a record of their results, but also provides resources to help them make positive changes – information on
diseases, nutrition, exercise, weight and stress management, as well as community activities to join. And it’s all
confidential and voluntary.”
2. Colleague Engagement
In March 2009, ASB was awarded a Great Workplace Award for
2008 for the second consecutive year. The award recognises
companies who have created an environment that truly engages
people every day throughout the organisation. Only 23 companies
globally received the award out of more than 300 participants, with
ASB being one of only four banks world wide to achieve such a high
standard of engagement and connection with colleagues.
14
3. Refreshing our Vision and Values
ASB this year embraced a new vision, a powerful,
inspiring purpose and a clear set of values or
behaviours that reflect who we are and what makes
us different. Developed by our people, they are the
touchstones for our decision making and the way
we interact with our customers, colleagues and the
community. Our reinvigorated Vision, Values and
Purpose were officially launched in November 2009
with strong support and a positive response from our
ASB colleagues.
What we did
People matter at ASB. So when it came to the refresh
of our organisational vision, values and purpose, we
started with our colleagues.
We initially decided on three steps: in-depth interviews
with a wide range of our people, exploration
workshops, and a staff-wide voluntary survey. This
process captured as much detail as possible about
what ASB stands for, from the largest number of
people possible (anyone who wanted to have a say
could do so).
As the project developed we were overwhelmed by
the willingness of colleagues to come back to us,
sometimes three or four times, so we could check our
thinking as we progressed.
What we learnt
Everything in this project led back to a single theme
that we heard over and over again, from just about all
those who took part:
The thing that makes ASB different is us, the
ASB people, and the way we treat each other.
Of course, some people did mention exceptions,
which greatly enriched our understanding. But there
was almost universal agreement that ASB is a place
where people value people. In essence:
> We care, like a family, supporting our people to be
their best and to be themselves
> We show integrity by doing the right thing, and
building strong relationships based on fairness
and honesty
> We’re ambitious, playing to win, always seeking a
better way and continually raising the bar
> We bring passion, energy and enthusiasm to our
work. We are dynamic, highly committed and we
love what we do.
What we love
It’s one thing to ask colleagues what they think, but
delving into how they feel takes it to the next level.
Our colleagues shared their deepest, most personal
thoughts and perceptions of ASB. From the moment
we started, people were honest and forthcoming. You
can’t buy that kind of culture.
15
Imagery was used to discover our colleagues’
true perception of ASB.
Our community
16
Our community
At ASB we believe that supporting
communities is our license to
operate. Through our investment and
involvement our objective is to improve
the well-being and sustainability of our
local New Zealand communities.
For over 160 years, ASB has been actively working
to positively contribute to the long term sustainable
development of our local communities, supporting groups
and activities that improve the quality of life for New
Zealanders.
ASB has a wide range of community partnerships, two
of our most significant being our work with St John to
help build safe, caring communities; and our support of
the ASB Community Trust’s activities. ASB is committed
to maintaining its level of support for the communities in
which we operate. This means over $10m per annum of
ASB investment in New Zealand communities.
Key challenges and our
response
The challenges we face in this area are better described
as opportunities – deliver more value, do it better, do it
smarter, and most importantly ensure it aligns with New
Zealand’s community needs. These are good challenges
to be facing and we feel very positive and proud of our
work in this area and the changes we are making, both
structurally and strategically, to make a sustainable
difference in our local communities.
Our focus in 2008/09 has
been on:
Maximising the benefit and value we can
achieve for our community with the resource
we have.
We have restructured our business to enable us to
deliver greater value for New Zealand communities,
establishing a new team dedicated to our Community
Partnerships. This ensures that our role in supporting
our local communities is given the priority it deserves.
Our strategy and decision making in this area is just
as important as any other area of ASB’s business. We
want to get it right.
17
A review of our community support portfolio showed
that we could be doing more with our resources
through aligning with clear strategies and goals. We
now have a new community strategy in place. It’s
transparent and it will ensure we stay focused and
deliver more value for our communities across New
Zealand.
Our community partnerships will now focus on
supporting a focused number of critical community
needs. There are four key areas of support:
a) Education and literacy: ASB is committed to helping
educate New Zealanders, in particular, New Zealand
children. ASB is well positioned to make a real
difference for New Zealand children, encouraging good
savings habits at a young age through school banking
and building financial literacy with programmes like our
free primary school initiative, GetWise and What Next?
for school leavers.
b) Youth and families: ASB’s support for organisations
like Starship, Ronald McDonald House and City
Missions has assisted many family based community
programmes focused on providing the necessities of
life. We are also committed to encouraging activity and
well-being through our partnerships with community
organisations and events including the Auckland
Zoo, ASB College Sport, ASB Polyfest and Weetbix
Tryathlon.
c) Safe, caring communities: A significant community
partnership for ASB is working together with St John
to build safe, caring communities and ultimately save
more lives. This partnership is designed to deliver real,
tangible benefits to communities. The first example of
this was a programme to offer free training of the lifesaving resuscitation technique CPR, which resulted in
over 11,000 bookings for the St John CPR course.
d) Sustainable community development: Our most
significant community partnership is our support of the
ASB Community Trust (ASB’s previous owner). ASB
has committed $10m to support the Trust’s activities
over the next 5 years. The ASB Community Trust is
an independent grant making organisation supporting
the work of not-for-profit groups in Auckland
and Northland. The Trust’s initial investment pool
comprised the proceeds from the sale of its shares in
ASB Bank to the Commonwealth Bank of Australia in
1988. It has made over $700m of grants and donations
to the community since this time and is the largest
philanthropic trust in Australasia.
ASB also provides support for charities banking with ASB,
including fee exempt banking and support for appeals.
Harnessing the talents and resources of
our people
ASB people want to be involved in the local communities
in which they work. We have been overwhelmed by
the positive response of our staff to volunteering their
time. We’re working on providing a greater range of
opportunities for our staff to volunteer – helping out
with community activities that mean something to them
individually, and at times that suit them.
Minimising our impact on the environment
A clean, green environment is critical to the well being
of our community. As part of our commitment to
sustainable business, ASB has implemented a range of
initiatives to enable us to better understand, manage and
minimise the impact our business practices have on the
environment. Some highlights are:
> Reducing the amount of waste we send to landfill by
progressively rolling out a comprehensive recycling and
waste reduction programme throughout our business.
This is supported by a network of 68 ASB ‘ecochampions’
> Improving our energy use, by implementing a range
of energy efficiency initiatives (covering lighting, airconditioning, audits, data enhancement and technology)
> Making changes to the ASB vehicle fleet to reduce our
environmental impact – this includes adding hybrid
vehicles to the fleet and switching to smaller engines
> Reducing the amount of paper we use internally and
generate for customers - process improvements,
technology and increased awareness are delivering
strong results. For example, almost 30% of eligible ASB
account holders have opted to no longer receive paper
statements
> Rolling out voice and video conferencing technology
to reduce the need for our staff and customers to
travel. Video conferencing is now available at over 100
locations, enabling customers to talk face-to-face with
specialists based at a different office
ASB Community Investment 2008/09*
ASB began using the London Benchmarking Group
(LBG) framework for measuring and reporting our
community investment and involvement in 2009.
The LBG model is recognised for best practice in
reporting on community investment.
Contributions as a % of pre-tax profit
ASB
1.73%
Australiasian average (42 members)
0.77%
UK average (92 members)
0.82%
Contributions per FTE (AU$)
ASB
$1,293
Australasian average (42 members)
$653
UK average (92 members)
$569
* Source: LBG Group Australia and NZ, Annual Benchmarking
Company Report 2009. ASB community investment for 2008/09
includes direct spend only.
ASB Bank Combined Group of Companies
2008 CO2-e emissions (12,133 tonnes, %)
> Improving the sustainability of our transport, for
example, by making it easy for colleagues to use ASB
pool cars and take buses between sites
> Measuring and actively working to reduce our
greenhouse gas emissions. During the 2008 calendar
year ASB was responsible for 12,133 tonnes of
greenhouse gas emissions (CO2-e). We have committed
to achieving a 20% reduction in total greenhouse gas
emissions by December 2012.^
We are building a sustainable business by making it
easy for our ASB people to do the right thing every day.
Wherever possible we are using technology to automate the
right behaviour – setting printers to default to double-sided
black print; ensuring computers are turned off at night;
using sensor lighting. ASB has a long history of leadership
in technology and we are leveraging this strength to make
business improvements for the environment.
18
Electricity
Air Travel
Postage and Courier
Waste
Motor Vehicle Fuel
Taxis and Rental Cars
Gas and on-site generators
^The scope of the target includes scope 1 and 2 emissions along with vehicle fleet and air travel emissions.
61%
7%
2%
2%
24%
1%
2%
Case studies
1. Safe, caring communities
The unique, nationwide partnership between ASB and
The Order of St John in New Zealand has already led
to the launch of many community initiatives.
In June 2008, ASB became a principal community
partner for St John in New Zealand. Through a range
of initiatives using a combination of financial and
organisational resources, ASB is helping St John work
towards their mission – to save lives in New Zealand
communities.
These initiatives support St John’s extensive range of
emergency and non-emergency services. The first year
of this community partnership has focused on:
> Increasing awareness of St John and their services
amongst ASB customers and the community
> Working with ASB colleagues, customers and the
community to increase St John donations and
volunteer numbers
> Improving New Zealand’s capability to deliver CPR
and first aid in emergency situations by providing
free St John CPR training courses to New
Zealanders.
The benefits to the community are already tangible. In
the last year:
> Over 11,000 New Zealanders booked in for free St
John CPR training fully funded by ASB
> We commenced a programme of rolling out St
John defibrillators to key sites. Defibrillators
were installed in three high-traffic shopping
malls, two tennis centres and the University of
Auckland Business School. This crucial life-saving
equipment is now on hand at these sites if required
> Despite the current challenging economic
environment, donations to St John increased by
30% spurred on by ASB’s branch and community
fundraising support
> Local communities benefited through ASB branch
people working together with local St John
representatives to make a difference in their own
communities. For example, providing free first aid
training, governance support, fundraising initiatives
and volunteers.
Big plans are in place to build this already strong
partnership. ASB is proud to be supporting St John to
do what it does best – save lives.
19
2. Manurewa Intermediate School
Manurewa Intermediate is a decile one school in South Auckland with
around 740 students in Years 7 and 8. Iain Taylor recently took over
as principal, returning to a school he attended as a child. He brought
with him a five-year plan to turn Manurewa Intermediate around.
When Iain arrived the outdated computer lab housed standalone
computers with no network and little opportunity to develop the
students’ computer literacy skills. The lack of modern technology
was something tangible that ASB could help with to make a real
difference for the school. The first steps have involved ASB:
> Providing 60 workstations and three printers to replace aging
equipment in two existing computer labs and creating a new and
modern 30 machine lab
> Providing a server rack to house the servers and networking
equipment that the school will use once all of the classrooms are
cabled
> Installing a ‘build server’ to enable imaging of workstations
instead of the school needing to build each machine manually.
The build server has ensured all workstations are standardised,
which saves considerable time loading up software.
In addition to donating the equipment, ASB supports Manurewa
Intermediate by providing technology advice and support. ASB technologists visit the school bi-monthly and in
between provide phone and email based support. We are now well on the way to helping Manurewa Intermediate
achieve its goal of providing ‘a modern and focused environment’ for the students. The next steps include:
> The provision of networking switches to enable the creation of an internal school network
> Addressing the school’s requirement to centrally store and share data
> Ensuring appropriate information security.
Matthew Williams is responsible for e-learning at Manurewa Intermediate and ensuring that the school is focused on
the future. He is working hard to help Iain Taylor make Manurewa Intermediate a world-class multicultural low decile
school. ASB is proud to be part of this journey.
“Through the continued help and support of ASB, we have been able to move our IT forward a lot quicker than
anticipated; putting us in a much stronger position than the school has ever been in. Prior to Iain’s arrival and our
contact with ASB, the school’s IT had been left behind the times, resulting in IT being one of our children’s least
favourite subjects. IT is now a subject the children really enjoy and with working computers that can run at a much
quicker speed, the opportunities for our children are much greater. We look forward to working with ASB to continue
to move our school’s IT in the right direction.”
Matthew Williams, DP e-Learning and Future Focus
3. Supporting Financial Literacy
A generation comfortable with high levels of debt, a global
economic downturn, and low levels of financial literacy
encouraged ASB to reinvigorate its focus on financial literacy.
‘Your Money Explained’ and ‘Track My Spending’ were
developed for the ASB website, providing simple information
and tools to help people understand their finances, manage their
spend and work towards achieving their financial goals.
ASB is particularly focused on improving the financial literacy
of New Zealand children. ASB’s school banking programme
has been reinvigorated, ASB’s ‘What Next?’ financial literacy
programme assists school leavers to understand the financial
decisions they will face, then in November 2009 we announced the launch of a new world class financial literacy
programme for primary schools - GetWise.
Starting in 2010, GetWise will be delivered by a team of independent facilitators to primary schools across New
Zealand. The GetWise workshop content is designed in collaboration with leading experts in primary education,
financial literacy and cognitive development.
Working to improve the financial literacy of New Zealander’s will continue to be a key focus for ASB.
20
Major ASB community partners
21
Governance and management
22
Governance and management
The ASB Board places great importance on governance.
ASB’s sound and well established governance structure
has ensured resilience during the global financial crisis.
In December 2008 Hugh Burrett retired as CEO of ASB
after more than 40 years in the business, and Charles
Pink took over the helm in January 2009. During the
2009 calendar year, the ASB business and organisational
structure has been realigned, ensuring we are well
positioned to deliver on our vision to be world class for
our customers, colleagues and community.
Performance and compliance are both essential for good
governance. Reviews of Board performance and policies
and practices are carried out annually. These reviews
identify where improvements can be made, and also
assess the quality and effectiveness of the industry and
company information made available to Directors.
We have made a number of changes over the last 12
months as a result of our review of governance and
management practices. Our risk and control functions
have been brought together under one executive leader
and a single, end to end view of risk and control is well
Committees of the Board
The Board has delegated specific powers and
responsibilities to Board and management committees.
The decisions made by all board committees are advised
to the full Board, with key decisions being recommended
to the Board for approval. There are two permanent
Board committees – a Board Audit & Risk Committee
and a People & Remuneration Committee. Other
committees are formed to carry out specific delegated
tasks when required. An independent Director chairs
each committee.
The Board Audit & Risk Committee (the “BARC”) assists
the Board in carrying out its governance responsibilities
concerning financial reporting and control, monitoring of
compliance with legal requirements and the identification
and prudent management of risk.
The People & Remuneration Committee make
recommendations to the Board on key people
and remuneration policy and the appointment and
remuneration of the Chief Executive and positions
reporting to the Chief Executive.
underway. We have also changed the reporting structure
for our Internal Audit team, with the Chief Internal
Auditor now reporting direct to the Board Audit & Risk
Sustainability governance
Committee, thereby promoting greater independence.
> The ASB Board provides oversight of the Bank’s
sustainability strategy and performance outcomes
> ASB has a dedicated Sustainable Business
Manager within the Community Partnership team
> The ASB Sustainability Forum brings together
key executives from across the business who are
responsible for achieving the agreed sustainability
targets
> All Executive members take leadership for the
implementation of sustainability policies and
achievement of targets within their business
> A network of sustainability champions support the
implementation and day-to-day management of
sustainability initiatives.
23
Engagement
24
Stakeholder engagement
Stakeholder engagement is critical to the success of any
business. It ensures focus on the things that really matter
– what we believe is a key concern or opportunity is not
always the same as what our stakeholders think. So we
need to ask the questions, listen to the responses and
ensure that we encourage debate and critical thinking
across all our stakeholder groups. This communication
needs to be continuous and it needs to take a number
of forms. This helps to ensure that our decisions are well
informed, balanced and in line with what our stakeholders
expect from a responsible financial organisation.
Customers
Engaging with our customers, across all segments ensures
that the products and services we offer and deliver meet
their needs. In 2008/09 we engaged with our customers in
a number of ways.
We conducted traditional customer research via phone
based interviews and focus groups. In addition, we
undertook in-depth user-based design (UBD) workshops
and one-on-one customer interviews on topics identified
as being of importance to our customers. Key response
themes included a need for improved customer financial
information and tools, the importance of transparency and
the need for improved cash management tools for small
businesses.
ASB also conducts ongoing customer engagement
surveys (CE11) – phone based surveys with randomly
selected customers. This survey measures the extent to
which customers feel emotionally engaged with ASB. It
also includes questions to support the development of
action plans to improve our service. This surveys show
that what is most important to our customers is that we
take ownership, follow up and do what we say we will.
Other strong themes include a need to help customers
understand their banking products (how they work, how
fees are charged) and a need to focus on our processes
for updating customer details across the business. We are
continuing to work on systems improvements to ensure
this happens.
As a result of engaging with our customers and listening
to their feedback, we introduced a number of new
products and services, including Visa Debit and Visa
Platinum cards, PIE cash and term deposit funds, a
specialised Financial Help Team (backed up by a Code
of Commitments for customers facing financial difficulty),
the $1b Job Creation Loan Scheme, succession planning
and cash management support for businesses, text alerts
and financial literacy tools for our personal customers.
25
Perhaps more importantly, we also enhanced our service
model. TOFU (Take Ownership, Follow Up) is central to
the way we do business and encourages all ASB staff to
take greater ownership of issues and to always follow up
to resolve them.
Colleagues
We recognise that engaged staff deliver great service and
encourage more engaged customers.
ASB has therefore utilised the Gallup Staff Engagement
model since 1991. A confidential survey is conducted
annually asking our people 12 questions on the issues
Gallup has identified matter to staff.
Our 2009 Staff Engagement (Gallup Q12) results once
again confirm ASB as one of the world’s best places
to work. With a 95% response rate, our overall score
was 4.46. This result places us in the 85th percentile of
Gallup’s worldwide database, and well above the World’s
Best Practice (75th percentile). We encourage every
ASB team to set action plans for the next year to further
improve the workplace for them.
This year, over 2,500 staff were involved in refreshing
our organisational vision, values and purpose. Our vision
and values research told us that the thing that makes us
different is the people who work for ASB and the way we
treat others. Our focus over the next year will now be on
ensuring our vision and values are highly visible and fully
embedded in everything we do.
During the 2008/09 financial year, almost 1,500 ideas
were submitted to ASB’s staff ideas programme (‘i2i’),
both responding to highlighted topics and introducing
independent ideas. Strong themes that came through
included ideas around improving financial literacy, process
improvements and environmental / social responsibility.
From these, 61 ideas were approved for implementation.
We also revised our internal colleague communications
– increasing the communication with ASB people and
establishing a feedback loop direct to the CEO. The
positive response from our people and their willingness
to engage directly on issues relevant to them has been
overwhelming.
ASB colleagues can also provide feedback via our internal
sustainability website. In 2009/10 we will be further
enhancing our engagement with staff with the introduction
of surveys on specific environmental or social issues.
26
Community
ASB has representation on numerous community
boards and advisory groups. We also maintain a direct
understanding of the issues facing schools by encouraging
ASB staff to be members of local school boards and
through participation in low decile school programmes
such as Ed & Co and school principal leadership forums
like Springboard Trust.
In October 2008 we commissioned the ASB SmartStart
survey, in conjunction with the Young Enterprise Trust, to
better understand the savings knowledge and needs of
New Zealand school children.
ASB actively engages with the Government and regulators
on public policy. We participated in the Job Summit in
March 2009 and the Finance Summit on credit practices
and made submissions across a range of issues including
consumer protection, employment and anti-money
laundering legislation.
In 2009/10 we will be expanding our communication
channels to make sure it is as easy as possible for local
community groups to engage with us on what’s important
to them.
Case study
1. Stakeholder engagement leads to new financial literacy help tool
Engagement with stakeholder groups is not
undertaken in isolation. Strong themes often come
through more than one engagement channel –
highlighting the importance of the issue. Financial
literacy was one example of this in 2008/09.
Engaging our colleagues
i2i is ASB’s staff ideas programme, encouraging our
people to be a part of developing and delivering a
better experience for our staff and our customers
by submitting ideas on either specific topics or
independently.
Rachel Callander, the Manager of ASB’s Information
Centre, submitted an idea recommending a website
to explain in simple terms where to go for financial
help, how to manage your finances and what
options may be available to you. Her inspiration
came from friends and others impacted by the
recession. Some had lost their jobs, which resulted
in financial pressures, and Rachel was surprised
to find that they weren’t aware of how to seek
assistance to cope with their unexpected financial
situation.
+
Ryan & Ema
Have a young family and a mortgage.
Ryan has been made redundant.
Hine
Engaging our customers
Is single and has a mortgage. She
Customer responses to the customer engagement
survey (CE11) and in-depth user based design
sessions also clearly indicated that our customers
wanted access to simple financial information and
tools to help them understand and make the most
of their money.
worries what would happen if she lost
=
Your Money Explained
As a result of Rachel’s i2i idea and the consistent
feedback through customer surveys and
engagement channels, ASB developed ‘Your Money
Explained’ for the ASB website. It provides simple
information and tools to help customers understand
their finances and work towards their goals. There
is access to guides, tools and calculators to help
assess financial situations as well as information
on setting a budget, managing your mortgage,
consolidating your debt, investment basics,
redundancy assistance, steps to safeguard your
business and much more.
27
People like you?
her job or fell ill.
Xuan & Karen
Want to go travelling but need to get on
top of their debt.
Cliff
Is a widower, his retirement income has
halved and he is struggling to pay the bills.
Our goals
28
Our goals for 2010
At ASB, we aim to be world class – for our
customers, colleagues and community.
Our sustainability goals are synonymous
with good business practices and in 2010
we will continue to do the basics well
and further embed sustainability into our
everyday business and culture.
First and foremost, our focus will remain on providing the best
possible service as and when our customers require. We will
continue to provide support to our colleagues through these
challenging times and ultimately make ASB an even better place
to work. In the community our focus will be to deliver even
greater value – ensuring our support aligns with community
needs. We will provide more opportunities for our colleagues
to volunteer their time to support a range of activities in their
local communities. We will continue our education and literacy
programmes, helping to improve the literacy of New Zealand
children. ASB will make a positive difference in our New
Zealand communities.
Customers
> Become number one in overall customer satisfaction across all customer segments2 through providing world class service.
> Deliver new budgeting and financial help tools to meet customers’ financial management education and needs.
> Help preserve or create jobs for New Zealanders through the ASB Job Creation Loan scheme.
Colleagues
> Increase diversity in our team.
> Improve the sustainability and capability of our workforce through ensuring succession planning coverage for all senior
and key roles.
> Improve the ratio of ASB management positions filled by internal candidates.
> Nurture our culture by maintaining our employee engagement score.
Community
> Broaden ASB’s community involvement programme.
> Establish world class targets for ASB community investment and involvement.
> Provide opportunities for all colleagues to learn more about sustainable business practices.
> Achieve a 20% reduction in total ASB Greenhouse Gas emissions by December 2012 (base year 2008).
> Improve the sustainability of our supply chain by reviewing our procurement policy.
> Increase the financial literacy of New Zealand children through GetWise, a new financial literacy programme for primary
schools.
Based on independent research conducted by AC Nielsen (Retail – Consumer Finance Monitor) and TNS-Conversa (Business Finance Monitor))
2
29
ASB key indicators
Financial1
June 2009
June 2008
June 2007
425
515
532
Total Assets ($m)
65,230
59,350
52,893
Total operating Expenses as % of Total Operating Income
41.8%
43.1%
40.7%
June 2009
June 2008
June 2007
1,173,258
1,136,776
1,078,945
Number of branches
142
139
129
Number of ATMs
449
442
423
73%
72%
74%
4.2
4.24
N/A
No. 1
No. 2
No. 2
June 2009
June 2008
June 2007
Number of FTE
4,568
4,712
4,361
Number of Employees
5,015
5,191
4,746
11.1%
16.6%
17.0%
2.6%
2.3%
2.3%
33
29
28
4.48
4.45
4.41
57%
17%
20%
59%
17%
16%
59%
9%
19%
81%
14%
5%
82%
13%
5%
83%
13%
4%
12%
32%
32%
18%
6%
11%
33%
32%
18%
7%
8%
34%
32%
19%
7%
Net profit after tax ($m)
Customers2
Number of customers
Retail customer satisfaction3
Customer engagement4
Ranking versus other major banks for complaints to Banking
Ombudsman per % of Main bank Share5
Colleagues6
Staff turnover (%)
Absenteeism
Claims resulting in lost hours
Employee engagement7
Women in the workforce:
% of total
% of executives
% of senior managers
Workforce Mix (%):
Fulltime
Part-time
Temporary
Workforce by age (%)
<25
25-34
35-44
45-54
>55
30
Community8
Community contribution as % of pre-tax profit
Community contribution per FTE
Environment9
June 2009
1.73%
A$ 1,293
Dec 2008
2008 Greenhouse Gas (GHG) Emissions (tonnes CO2-e)
Direct Emissions Scope 1
Indirect Emissions Scope 2 (Electricity supplied to ASB facilities)
299
6,615
Indirect Emissions Scope 3
Air travel
Transmission & distribution
Fuel consumed in third party vehicles
Waste to landfill
Other (Taxi, Courier, Postage Services, Rental cars)
Total GHG emissions (tonnes of CO2-e)
846
696
2,859
334
483
12,133
Notes
31
1
ASB Annual General Disclosure Statements
2
ASB Internal Reporting
3
Based on a customer rating of either 4 (very good) or 5 (excellent) on a scale of 1-5 according to AC Nielsen CFM 4
Gallup CE11 survey (measure of 1 to 5)
5
Based on case statistics provided in the Banking Ombudsman Annual Reports 08/09 and 07/08 and AC Nielsen Main bank share data for June 2009,
September 2008 (June not available) and June 2007
6
All People Indicators are derived from Internal ASB reporting, unless otherwise disclosed
7
Gallup Worldwide Database (Q12) (measure of 1 to 5)
8
LBG Group Australia and NZ, Annual Benchmarking Company Report 2009. Note: ASB 2009 results include direct spend only
9
ASB 2008 Greenhouse Gas Inventory Report, for the period January to December 2008, by ‘Scope’ as defined by GHG Protocol
Recognition
Assurance
> 17th on Top 50 List of Safest Banks: Global Finance
magazine Annual Survey 2009 (28th in 2008 and
34th in 2007)
We have not sought a formal assurance statement for
this report. Deloitte has, however, performed a limited
assurance review of ASB’s 2008 greenhouse gas inventory
in accordance with ISAE NZ 3000. Nothing was found
to suggest that this inventory did not fairly present the
emissions profile of ASB (including Jacques Martin, Aegis
and ASB Group Investments) for the year ended
31 December 2008.
> Awarded the Gallup Great Workplace Award in 2008
and 2009 (for surveys conducted in 2007 and 2008)
> Best Bank in New Zealand 2002, 2003, 2004, 2005,
2006, 2007, 2008: Banker Magazine
> ASB Group Investments is one of six KiwiSaver
default providers selected by the NZ Government
> 1st major bank in Customer Satisfaction Retail
Banking 1998, 1999, 2000, 2001, 2002, 2003, 2005,
2007 (no surveys were conducted in 2004, 2006
and since 2007): University of Auckland
> Best Financial Website 2002, 2003, 2006, 2007,
2008 NetGuide
Further Information
> The following documents are available on the ASB
website, www.asb.co.nz:
✓ ASB Code of Commitments
✓ ASB Group Investments Responsible Investment
Policy
✓ ASB’s General Disclosure Statements
✓ ASB Environment Policy
> As at June 2009, the following credit ratings were
assigned to ASB:
✓ Standard & Poor’s Credit Rating of AA and
Moody’s Rating of Aa2. The outlook from both
agencies is Stable.
32
Contacts
Linley Wood
Chief Community Partnership Officer
ASB Bank Centre
135 Albert St, Auckland 1140
Ph +64 337 4283
[email protected]
Tanya Stocks
Sustainable Business Manager
ASB Bank Centre
135 Albert St, Auckland 1140
Ph +64 9 337 4708
[email protected]
ASB Bank Limited 6230 1108 1010
Cert no. SGS-COC-003424