2009 Corporate Responsibility Review
Governance
Effective corporate governance is a fundamental part of the culture and the business practices of NAB Group.
Responsible leadership and policy
Governance and responsible leadership starts with our Corporate Principles and Compliance Standards. It is underpinned by our extensive system of management frameworks, policies and processes, training and communications. Effective governance ensures that we identify the risks and opportunities material to our business, and assists us to operate focused and effective CR programs.
The Board has retained authority for the highest level of oversight of CR governance across the Group. The Board monitors strategy, policy and performance on a regular basis, including key elements of our non-financial performance such as occupational health and safety, community investment, and progress on our climate change strategy.
Management accountability for CR rests with our Group CEO and senior executives across the Group. Each business is responsible for meeting the Group's environmental and social requirements and for achieving its own, and any agreed Group, targets in CR related areas.
Senior management is accountable for delivery of our CR strategy, including the periodic review of our CR framework and policies. Regional executive committees or designated senior executive subcommittees are responsible for monitoring implementation of CR strategy and initiatives.
Key components of CR performance are monitored by our Group Risk Management Committee. On matters related to climate change and environment, we also have a specific Group Climate Change and Environment Committee.
In Australia, we have an independent Community Advisory Committee, to ensure stakeholders can challenge, scrutinise and provide advice on our community initiatives and programs.
Our CR Policy is reviewed annually and applies to all entities within the Group.
Risk Management
Effective risk management is a key capability of a successful financial services provider. The Group's approach is based on three lines of defence, and the principle that, to be effective, risk management must be embedded in front line teams and supported by objective and independent oversight and assurance. Corporate responsibility risks are covered in two key areas – operational risk and credit risk (for example the risk associated with investing in customers with the potential to be affected by the impacts of climate change).
The Board and Group Executive (through the Group Risk Management Committee) are responsible for ensuring that risks facing the Group are identified and that systems are in place to monitor and manage those risks.
External Benchmarking
As part of our approach to CR governance we continually assess our performance against external benchmarks. During 2009, we again participated in a number of external benchmarking programs including the London Benchmarking Group, the Dow Jones Sustainability Index, the Carbon Disclosure Project, the FTSE4Good Index and the UK Business in the Community Corporate Responsibility Index.
Further details about our corporate responsibility governance are available on our Group website at www.nabgroup.com
