2017 towards sustainability report

AMP 2017 towards sustainability report2

AMP Limited ABN 49 079 354 519Unless otherwise specified, all amounts are in Australian dollars.Information in this report is current as at March 2018.All statistics highlights are current as at 31 December 2017.

Contents3 CEO’smessage4 Keyhighlightsof20175 AboutAMP6 AMP’svisionandstrategy7 Aboutthisreport8 Oursustainabilityjourney9 Materialissues

Our customers10 Customerexperience12 Digitaldisruptionandinnovation14 Cybersecurityandprivacy16 Regulatoryenvironment

Our people17 Ethicalconductandprofessionalstandards19 Diversityandinclusion21 Supportinganddevelopingpeople

Our community23 Climatechangeandtheenvironment28 Responsibleinvesting30 Sustainablesupplychainmanagement31 Communityinvestment

AMP 2017 towards sustainability report3

Tocontinuetohelp,itisimperativeweconsiderhowbesttoanticipateandrespondtothepotentialrisksandchangesintheworldaroundus.UnderstandingandpositioningAMPforchange–whetheritbetechnological,social,environmentalorregulatory–isvitaltooursustainability.

Wehavelongbeenengagedinsustainability:reducingourenvironmentalfootprint,improvingourgenderdiversity,contributingtothecommunitythroughtheAMPFoundationandundertakingresponsibleinvestingviaAMPCapital.Toconsolidateourprogresstodateandsetapathforthefuture,weareonajourneytostrengthenoursustainabilitystrategy,governanceandreportingprocesses.

Tothisend,thisreportbuildsonandextendsourpreviousenvironmentalandsocialreporting.Itworkstocomplementourotherpubliclyavailablereports:ourannualreport,ourcorporategovernancestatementandourtaxtransparencystatement.

Giventheroleweplayinassuringthefinancialsecurityofmillionsofpeople,wehaveadutytobetransparentandaccountableinallwedo.Whenwemakemistakes,it’simportantweputthingsrightforthecustomer,holdourselvestoaccountandworkhardtofixtheunderlyingissue.ThisiswhywefullysupporttheaimsoftheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry.

Ourapproachtosustainabilityisbuiltaroundthreeconnectedareasoffocus:ourcustomers,ourpeopleandourcommunity.Thisreportidentifiesourmaterialissuesandrisksagainsteachandsetsoutourplansandprogresstodate.

Whilethisreportisastepintherightdirection,weacknowledgethatwestillhavemoretodo,andwillbeworkingtowardsproducingamorecomprehensivesustainabilityreportin2019.

Byanticipatingandrespondingtotheissuesthatmayimpactthefutureprosperityofourcustomers,ourpeopleandourcommunity,webelievewecancontinuetohelpcreateabettertomorrow.

Craig MellerChiefExecutiveOfficer

CEO’s message

Since 1849, AMP’s goal has been to help people own tomorrow. Today we help millions of people in Australia and New Zealand take control of their finances and achieve their goals.

AMP 2017 towards sustainability report4

Key highlights of 2017

5% reduction in Scope 1 and 2 (operational) greenhouse gas emissions

$5.7m in funds were distributed to the community by the AMP Foundation

40%of the AMP Limited Board members were female, meeting our 2020 target

122university students enrolled in the AMP Adviser Academy

$2.5b in Australian retirement payments, including mature payments

$1.1bin insurance claims helped our customers

Our peopleDrawingondiverseexperiencesandwaysofthinkingiskeytobuildingourcultureofintegrity,performanceandhelp.Assuch,in2017wesetmorechallenginggenderdiversitytargetsforourbusiness.

Weremaincommittedtoprovidingourfinancialadviserswithqualityeducationandsupport,backedbyourinvestmentingoals-modellingtechnology.

Our communityWeannouncednewenvironmentaltargetsandreviewedtherecommendationsoftheTaskforceonClimate-relatedFinancialDisclosures(TCFD)withinthecontextofourexistingapproachtoclimaterisk.AndAMPCapital’snewethicaldecision-makingframeworkledtoarecorddivestmentoftobacco-relatedsecurities.

TheAMPFoundationmarkedits25thanniversarywithaziplineeventthatraised$1millionforourcharitypartners.

Our customersAspartofourcustomer-centrictransformation,wecontinuedtoreshapeoursystems,processes,productsandservicestomakethecomplexsimple.

Technologycontinuedtoofferchoiceandconvenience,withAMPapps,personalisedbudgetingtoolsandourpioneeringGoals360advicemodellingplatformgivingcustomersmorecontrolovertheirmoney.

AMP 2017 towards sustainability report5

About AMP

Wehavealonghistoryofhelpingcustomerstoprotectandgrowtheirsavingsandinvestments,andforalmost170yearswe’vededicatedourselvestohelpingpeopleachievetheirgoalswithqualitysolutions,servicesandexpertadvice.

Today,wearealeadingspecialistwealthmanagementcompanyinAustraliaandNewZealand,helpingpeopletobecomemorefinanciallysecurebysharingourexpertiseandprovidingproductsandservices,including:– financialadvice– superannuation,retirementincome

andinvestmentproducts

– bankingandinvestmentservicesforself-managedsuperfunds(SMSFs)

– incomeanddisabilityprotectionandlifeinsurance

– bankingproducts,includinghomeloans– investmentsinshares,fixedinterest,

property,infrastructure,multi-managerandmulti-assetfunds.

AustraliansandNewZealandersknowusbestforsuperannuation,lifeinsurance,investmentsandadvice,butwe’regrowinginretailbankinginAustralia.ThroughAMPCapital,wemanageinvestmentsinequities,fixedincome,infrastructureandrealestate,

anddiversified,multi-managerandmulti-assetfundsonbehalfofclientsaroundtheworld.

AMP’soperationsarelargelyfocusedonAustraliaandNewZealand,wherewehaveofficesinSydney,Melbourne,Adelaide,Brisbane,Perth,Auckland,WellingtonandChristchurch.However,asaninternationalinfrastructureandpropertymanager,AMPCapitaladvisesclientsandcustomersinAsia,theMiddleEast,Europe,theUnitedKingdomandNorthAmerica.AMPalsohasstrongpartnershipsinChinaandJapanandinvestmentsaroundtheworld.

Our purpose is to help people own tomorrow, helping them take control of their finances and achieve their goals.

750,000 shareholders

5,697 FTE employees

$848m net profit

3.8m customers in Australia and New Zealand

$2.5b in pensions paid

3,277 AMP-aligned advisers

AMP 2017 towards sustainability report6

AMP’s vision and strategy

Wewilldothatbymanagingastrong,customer-centredbusinessthatmeetstheneedsandexpectationsofbothourcustomersandinvestors.

Ourpurposeasabusinessisstillverymuchfocusedonhelpingcustomersowntomorrow.However,theimpactofrapidlyadvancingtechnology,changingcustomerpreferencesaswellasregulatorychangeonourbusiness,isdrivingourstrategicchoices.

Ourstrategyisclear.Wewilldelivergrowth,operatingingrowing,scalablemarketswherewehaveadistinctivecompetitiveadvantage.

In2017,ourstrategicprioritiestodelivergrowthwerefocusedon:– tiltingourinvestmenttothehigh

growthbusinessesinourportfolio– completingthecustomer-centred

transformationofourcoreAustralianbusiness

– expandinginternationally– managingcostsanddrivingefficiency

acrossthegroup.

Wemanageourportfoliosofbusinessesby:– managingforvalueandcapital

efficiency:inthosebusinesseswithslowergrowthorwherewedon’thavedistinctiveadvantage(Australianwealthprotection,NewZealand,mature)

– investingtogrow:wherewedohavedistinctivecompetitiveadvantageandwherethemarketfundamentalsareattractive(Australianwealthmanagement,AMPBank,AMPCapital)

– leveragingourstrengthsinrealassetmanagementandadviceinternationally.

Our approach to sustainabilityWearecommittedtomanagingourbusinesssustainablyfortodayandforthefuture,bycreatinglong-term,sharedvalueforourcustomers,ourpeopleandourcommunity.

OurapproachtosustainabilityisbuiltaroundthreeconnectedareasoffocusforAMP:ourcustomers,ourpeopleandourcommunity.Weunderstandthatresponsibleandethicalbehaviourandactivitydirectedtowardseachoftheseimportantareascanpositivelyimpactthesustainabilityoftheothers.

Wearefocusedonfindingbetterwaysofworkingtodeliverthebestoutcomesforourpeopleandourcustomers,reducingourenvironmentalfootprintnowandintothefuture,governingfairlywiththerightexpertise,returningvaluetoourshareholdersandinvestinginthecommunity.

Byanticipatingandrespondingtoissuesthatmayimpactthefutureprosperityofourcommunities,webelievewehelpcreateabettertomorrow.

We want all our customers to reach their goals – whether it’s buying their first home or retiring right.

Our people

help our customers and contribute to the economy and community. This is why diverse and well supported

employees and advisers are vital.

Our customers

are at the centre of our business. Every solution we provide needs to help our

customers reach their goals.

Our community

is the environment we live and work in. We aim to enhance the lives of the

people and places we affect – and encourage others

to do the same.

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About this report

Providinganaggregatedviewofoursustainabilityissuesandmanagementapproach,thisconsolidatedreportalsobuildsonourresponsestotheCarbonDisclosureProject(CDP),theGlobalRealEstateSustainabilityBenchmark(GRESB),andAMPCapital’sreportingassignatoryoftheUN-backedPrinciplesforResponsibleInvestment(UNPRI).

Thepurposeofthisreportistoinformourstakeholdersabouthowwemonitorandmanagetherisksandopportunitiesassociatedwithourmaterialsustainabilityissues,andtoprovideasnapshotofouractivityineacharea.

Thereportformspartofourannual reporting suite,andiscomplementedbythefinancialdisclosuresinour2017annualreportandbythegovernanceandriskmanagementdisclosuresinourCorporateGovernanceStatement.WealsoreleaseanannualTaxReport,whichisavailableontheAMP Shareholder Centre.

Report scope ThescopeofourreportcoversAMP’soperationsgloballyandoverwhichwehavecontrolfortheperiod1January2017to31December2017.TheentitiesthatarewithinAMPLimited’sorganisationaloperationalcontrolboundaryareAMPServices,AMPCapitalInvestorsandtheirsubsidiaries,aswellastheAMPFoundation.

Our progress towards a sustainable future Wehavelongbeenengagedinsustainability,throughreducingourenvironmentalfootprintasanorganisation,improvingourorganisation’sgenderdiversity,contributingtothecommunitythroughourAMPFoundationandundertakingresponsibleinvestmentinAMPCapital.Wehavebeenrecognisedforourenvironmental,socialandgovernancepracticesthroughinclusionintheFTSE4Good Index Series.

Inordertoconsolidatetheprogressmadetodateandsetapathforthefuture,weareonajourneytostrengthenoursustainabilitystrategy,governanceandreportingprocesses.Inthecomingyearwearelookingto:– continuetointegratesustainability

inAMP’soverallstrategy,byshiftingfromaproductanddistributionbusinesstoacustomer-ledorganisation

– expandonthematerialityprocessundertakenin2017toobtainmorefeedbackfromstakeholders

– developrobustindicatorsandtargetsforexpectedperformance(forselectmaterialsustainabilitytopics)

– identifyhowwecanimplementtherecommendationsoftheTaskforceonClimate-relatedFinancialDisclosures(TCFD)withinthecontextofourexistingapproachtoclimateriskandreportontheoutcomes.

This report builds on the extensive reporting previously included in AMP community reports.

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Our sustainability journey

The Australian Mutual Provident Society is founded on the idea that every individual should have the ability and power to control their life. 1849

AMP Foundation is the only institutional investor in GoodStart Early Learning – the largest social impact investment in Australia.2009

Our first dedicated Australian Equities Ethical Fund is launched through AMP Capital. 2001

2014Net Promoter System implemented as part of our new customer-centric focus.Establishment of the AMP Tomorrow Fund, our annual $1m grants program for individuals.Activity-based working introduced at AMP headquarters.

1992 The AMP Foundation is established as the philanthropic arm of our business.

2011 AMP debuts in the CDP ASX 200 Climate Disclosure Leadership Index.

AMP Capital is a founding member of the Investor Group on Climate Change.AMP Capital launches the Responsible Investment Leaders Balanced Fund. 2005

2016

AMP Capital’s Diversified Infrastructure Trust tops the international Global Real Estate Sustainability Benchmark (GRESB) rankings for best ESG (environmental, social and governance) performance.Reached our 2020 target of 40% female representation on the AMP Limited Board.Appointed our first female Chairman, Catherine Brenner.

2018 Increase transparency and establish sustainability KPIs across the AMP Group.

AMP commences a war-time commitment that life insurance policies sold to enlisted men would not carry extra charges, despite the increased risk. This extended into World War II.

1914

2010AMP Foundation launches the AMP Cancer Council Pro Bono Program, enabling our advisers to provide free advice to people affected by cancer.

2002Social Ventures Australia (SVA) is founded by the

AMP Foundation and three other non-profits.AMP Capital signs up to the Carbon Disclosure Project (CDP).

2015AMP is recognised by CDP for carbon-reduction initiatives, receiving a CDP Australian Climate Leadership Award for the second year in a row.

1998AMP Bank opens for business.

2013AMP becomes carbon neutral a year ahead of plan.

2007

AMP Horizons Academy opens to provide educational support for financial advisers.

AMP starts reporting under the National Greenhouse and Energy Reporting Act 2007.

AMP Capital becomes a signatory to the UN-backed Principles for Responsible Investment.

2017

Goals 360 modelling platform launched to help our advisers provide high-quality advice.

Creation of the AMP Customer Advocate function, strengthening our customer support services.

AMP Foundation celebrates 25 years by hosting a zipline event that raises $1m for charity.

AMP Capital launches its Ethical Investment Framework, divesting tobacco, cluster munitions, landmines, chemical and biological weapons.

2019Produce an enhanced sustainability report.

AMP 2017 towards sustainability report9

Theassessmentprocessinvolvedreviewingandanalysingthefollowingsourcesofinformation:– feedbackfromacross-sectionofemployees– analysisfromourin-houseESG(environmental,socialandgovernance)analystspecialists– analystandinvestorfeedback– reviewofmediacoverageonfinancialservicesissues– areviewofourcompetitors’materialityissues– feedbackfromourbusinesspartners– regulatoryfeedbackandrecommendations

Fromthisresearchweidentifiedtheareasofgreatestimportancetoourstakeholdersandourbusiness.Thefollowing11materialissueswereidentifiedasbeingofhighimportancetobothourbusinessandourstakeholders:

Our customers1. Customerexperience2. Digitaldisruptionandinnovation3. Cybersecurityandprivacy4. Regulatoryenvironment

Our people5. Ethicalconductandprofessionalstandards6. Diversityandinclusion7. Supportinganddevelopingpeople

Our community 8. Climatechangeandenvironment9. Responsibleinvesting10. Sustainablesupplychain11. Communityinvestment

Thisreportlooksatprogressandactionagainsteachissue.

Material issuesMaterial issues of greatest importance to our customers, our people and our community were identified through a business-wide assessment process.

AMP 2017 towards sustainability report10

Weharnessdigitaltechnologyandusebehaviouralinsightstounderstandourcustomers’motivationsandlifeexperiences,andhelpthemrealisetheirfinancialgoals.

AMPisworkingtowardsthisinanenvironmentofrapidtechnologicaladvancement,sustainedregulatorypressure,anageingpopulation,risingcustomerexpectationsandintensifyingcompetitioninthewealthmanagementandinsuranceindustries.

Weunderstandthathavingaccesstoqualityfinancialproductsandservicescanhaveaprofoundimpactonlives.AMPthereforehasadutytoensureitdeliversapositivecustomerexperience.

In2017,initiativestoimprovethecustomerexperienceincluded:

Acting on customer feedbackTheNetPromoterSystem(NPS)isanimportantpartofourapproachtoimprovingthecustomerexperience,helpingustojudgehowwellwemeetourcustomers’needsandexpectations.BasedaroundasurveyquestionthataskscustomershowlikelytheywouldbetorecommendAMPtofamilyandfriends,in2017itwasusedby120AMPteamstodriveimprovementsforourcustomers.

Apowerfulleverfordrivingbottom-upchange,thesystemmakesiteasyforemployeestorelatedirectlytocustomers,helpingthemtochangeourbehaviours,processesandpoliciesthatgetinthewayofabettercustomerexperience.

In2017,wereceivedmorethan59,000surveyresponses,withincreasesinNPSscoresrecordedforcustomers,financialadvisersandouremployersuperannuationpartners.Morethan200individualchangestoprocessesorcommunicationsweremadebasedonthiscustomerfeedback.

AMP Customer AdvocateAMPhasstrengtheneditssupportforcustomerswiththecreationofagroup-wideAMPCustomerAdvocatefunction.ThefunctionwillhelpcustomersoftheAustralianbusinesswhobelievethattheircomplaintshavenotbeenappropriatelyresolvedthroughAMP’susualcomplaintresolutionprocesses.

TheobjectivesoftheAMPCustomerAdvocatearetohelpourcustomersreceivefairandreasonableoutcomesandtoensurethatAMP’scomplaintsprocessesareaccessible,robustandtransparent.Thefunctionwillalsoworkcloselywithseniorleadersacrossthebusinesstolearnfromtheseexperiencesandimprovehowwehelpourcustomers.

In2018,wewillfocusonfullyestablishingthisnewfunctionandfurtherenhancingourcustomercomplaintsframework.

Improving the claims process InrecentyearsAMPhasdevelopedamoreholisticapproachtoinsuranceclaims,basedoninsightsfromcustomerresearchandhuman-centreddesign.

FastTrack,whichgivesAMPinsurancecustomerstheoptionofspeakingwithacasemanagerwhocanlodgetheirclaiminstantly,hassubstantiallyreducedthetimetakentolodgeaclaim.Bytakingtimetogainadeeperunderstandingofthecustomer,FastTrackhelpscasemanagerstomaketherightdecisionsfaster.

AMPcasemanagershavebeentrainedinbothfunctionalandmotivationalinterviewingtechniques.TheCourageousConversationsin-houseprogram,introducedinNovember2016,aimstohelpcasemanagersbetteridentifyacustomer’scapacityandmotivatorsforrecovery.Inthefirstsixmonths,managersreporteda34%increaseincustomersre-engagingwithtreatmentplans.

Since 2013, we have been transforming our business in Australia to put our customers at the centre.

605,351 Australian customers were helped to save for retirement through their employer super plan

1. Customer experience

Our customers

$2.5b in Australian retirement payments, including mature payments

$1.1bin insurance claims helped our customers

AMP 2017 towards sustainability report11

48,008 customers with AMP Bank mortgages

2018 goals– Continue the customer-centred transformation of our business– Simplify our solutions and make them more accessible– Expand our goals-based customer experience to provide

advice to more people

Goals-based advice Withanageingpopulation,recordlevelsofhouseholddebtandsignificantretirementsavingsgaps,Australianswillincreasinglyneedgoodadvicetomeettheirfinancialgoals.Ourambitionistomakefinancialadviceaccessible,expertandmeaningfulforourcustomers.

ThisiswhyAMPhasfundamentallyrethoughthowtodeliverfinancialadvice.Ourresearchshowsthatgoals-basedadviceisthemosteffectivewaytoengagewithcustomersandgivethemconfidenceintheirfinancialfuture.

OurAMPGoals360experiencehelpscustomerstoexplore,plan,trackandrealisetheirgoals.Weenhancedthisexperiencein2017withthelaunchofanewgoals-modellingplatform.Byselectingdifferentadvicestrategies,theplatformallowsadviserstomodelscenariosandgenerateadvicestrategiesinrealtime–enablingaricheradviceexperience.

Thetechnology,whichisbeingrolledouttoAMPAdvicepracticesandthebroaderadvicenetworkin2018-19,formspartofasuiteofservicesandtoolsdesignedtohelpadvisersdeliverhigh-quality,professionaladviceandcomplywiththeirreportingrequirements.

Giving customers choice AMP’sApprovedProductList(APL)isdesignedtogivecustomersofouralignedfinancialadvisersaccesstobroadand

high-qualityinvestmentproductsfromarangeofcompanies–notjustAMP.Itisinformedbytheworkofanindependentin-houseresearchteam.

Inadditiontoquarterlyperformancemonitoringofallmanagedfundinvestments,eachinvestmentassetclassisreviewedformallyevery12months.ThisinvolvesanassessmentofadequatechoiceandqualityoftheAPL.Followingthisreview,recommendationsaremadebytheAMPAdviceresearchteamforadditions,deletionsorratingchangestotheAPLforproductsintheassetclassunderreview.Changesoutsidethisformalreviewprocesscanalsotakeplace,ontherecommendationofourresearchteam.

Solutions to help people retire right AMP’sself-managedsuperfund(SMSF)administrator,SuperConcepts,launchedanonlineproductcalledConnectedServicesin2017thatenablesmemberstoaccessproductsandservicesfromthird-partyproviders.Thisallowsthemtomanagetheirinvestmentsinapaperlesswayandgivesadvisersandaccountantsbettervisibilityoftheirclients’investments.

SuperConceptsalsoupdateditsSMSFaccountingplatform,withanewtransactioncentrethatprovidesdailydatafeedsdirectfrominstitutions.Thecentreautomatesatime-consumingmanualprocessatatimewhentheATOrequiresmoreregularreporting.

TheMyNorthPensionpaymentplannerwasalsolaunchedin2017.ThisAustralian-firstretirementoffercombinesapensionpaymentcalculatorwiththeMyNorthRetirementFund,adiversifiedfund,managedbyAMPCapital.Theplannercalculatestheamountretireescanwithdraweachyeartoensuretheirsavingslast.In2017,AMP’sMyNorthPensionaccountwonChantWest’s2017AdvisedProductoftheYearaward.

KiwiSaver Scheme In2017inNewZealand,theAMPDefaultFundintheAMPKiwiSaverSchemewasawardedfivestarsfor‘outstandingvalue’intheconservativecategorybyCANSTAR,anindependentresearchandratingscompany.TheAMPKiwiSaverSchemehelpsover230,000NewZealanderssavefortheirretirement,andlooksafter$5billionworthofsavings.

Duringtheyear,AMPmade16newfundsavailablewithinitsAMPKiwiSaverScheme,providingmembersaccesstoatotalof27fundsmanagedbyfiveleadingfundmanagers.WealsolaunchedAMPEssentials–NewZealand’sfirstcombinedlife,traumaandtemporarydisablementinsuranceproduct(linkedwiththeAMPKiwiSaverScheme)tohelpaddresstheissueofunderinsuranceinNewZealand.

Inaddition,AMPwasnamedLifeInsureroftheYearbyTheAustralianandNewZealandInstituteofInsuranceandFinanceattheNewZealandInsuranceIndustryAwards.

Our customers

AMP 2017 towards sustainability report12

Technologicaladvancementspresentopportunitiestorethinkandimprovetheexperienceforcustomers,whohavecometoexpectfeaturessuchascardlesspaymentsystemsandpersonalmoneymanagementtools.

Ratherthanremovethehumanelement,digitalinnovationcanenhancethecustomerrelationship.AMP’sGoals360interactiveexperienceisagoodexampleofhowtechnologycanenhanceface-to-facefinancialadvice.

Advancesinartificialintelligence(AI),combinedwithincreasingautomationanddigitisation,haveconsiderablepowertonotonlycreateseamlesscustomerexperiences,butalsooperationalefficiencies.AMPalsounderstandsthatcybersecurityismorethananITthreat–itisaseriousbusinessriskthatrequiresaproactiveresponse.

Withthepressuretoinnovatestrongerthanever,anddigitalcustomerexperienceredefiningcompetitivenessinourindustry,AMPwillcontinuetodeliverdigitalsolutionsthatareseamless,intuitiveandsecure.

AMP Goals 360 advice platform In2017,AMPworkedwithleadingglobalactuarialfirmMillimantodevelopaninnovativegoals-modellingplatform.LaunchedinDecember,itisakeycomponentofGoals360–theend-to-endexperiencehelpingourcustomersexplore,plan,trackandrealisetheirfinancialgoals.

Themodellingplatformdemonstrates,inahighlyvisualandpersonalisedway,howthechoicescustomersmaketodayimpactontheirabilitytoreachtheirgoalsinthefuture.Itcanprojectaclient’sbalancesheetandcashflowsandtakeintoaccountmarketfactorssuchasAustraliantax,superannuationandsocialsecurityrulesandregulations.

Theplatformruns1,000differentscenariostodeterminethepossiblerangeoffutureoutcomes.Usingacombinationoftheprobabilitythatagoalwillbeachieved,andthepotentialshortfall,itcancalculate‘goalachievability’.

Developedusinghuman-centreddesign,theplatformfeaturesavisualtimelinethathelpsclientsunderstandhowachievableeachoftheirgoalsare,andhowadvicestrategiescanimprovetheirprospectsofachievingthem.Thesystem,whichwillbeavailablewithinouradvicenetworkin2018-19,alsohelpsincreaseproductivityforadvisersandsupportstheiradherencetocompliancerequirements.

AMPisalsoinvestinginanewpracticemanagementtool,builtontheSalesforceplatform,thatintegratespracticeoperationstechnologiessuchasCRM(customerrelationshipmanagement),operationalreporting,registry,policyadministrationandtelephony.Thistoolaimstohelpadvisersbetterservetheirclients,meetcompliancerequirementsandreduceoperationalcosts.

New technology is driving fundamental shifts in the way financial services organisations operate.

59,123 customers helped with SMSF admin and software services

5 Star rating for AMP Bank’s Bett3r account from Canstar, plus Mozo’s Experts’ Choice Innovation Award

290,724 used MyAMP and our apps to manage their finances

2. Digital disruption and innovation

Our customers

AMP 2017 towards sustainability report13

Wealth management tools In2017AMPintroducedseveraltoolstomakemoneymanagementeasierforourcustomers.

AMPBank’snewBett3raccount,withitsautomatedbudgetingandcashflowmanagementcapabilitiesconsistsofthreelinkedaccountsthatprovideanaccurateviewofincome,bills,savingsandspending,throughamobileapp.In2017,Bett3rwonMozo’sExpertsChoiceInnovationAwardandafive-starratingfromCanstar.

Bett3risanintegratedpartofMyAMP,ourmobilewealthmanagementportalthatprovidescustomerswithaholisticviewoftheirfinances–includingsuper,insurance,investmentsandbanking.AMP’sBett3randMyAMPwealthmanagementappsbothenableiPhoneXuserstosecurelylog-inusingfacialrecognitiontechnology.ThefunctionalityfollowsAMP’searlyadoptionoffingerprintlog-intechnology,availableonbothappsforiPhoneandAndroiddevices.

MyAMPalsoincorporatesMoneyManager,whichwaslaunchedin2017.LeveragingAMP’sinvestmentinpersonalfinanceplatformMoneyBrilliant,thismicro-budgetingtoolwasdesignedbyAMPincollaborationwithAMPfinancialadvisers.Itenablescustomerstosetabudgetforaslittleasonetransaction–suchasamorningcoffee.

Artificial intelligenceInFebruary2017,AMPbegantestingavirtualassistantthatcombineswebchatwithmachinelearningtohelpcustomersfilloutforms.BasedontechnologydevelopedbyAustralianfintechFlamingo,KimberlyguidescustomersthroughtheAMPFlexibleSuperform.

Asthecustomermovesfromonequestiontothenext,Kimberlycanfurtherexplainwhat’sbeingasked.Theaimistoprovideasimplerandmoreintuitiveprocess,avoidingthedelaysthatmightoccurifwaitingforapersontoreply.

KimberlyisoperatinginHAVA(human-assistedvirtualassistance)mode,whichenablesustolearnmoreabouthowcustomersareinteracting,thetypesofquestionsthey’llaskandwaystosimplifytheprocess.Intime,Kimberlywillproactivelysuggestanswerstoourwebchatoperators.Astheknowledgebasebuilds,wewilldeepenourunderstandingofcustomerneedsandhowtohelpthem.

AMPwillcontinuetoexploreartificialintelligenceandvoice-activatedtechnologytohelpmoreAustraliansmanagetheirfinances.

Amplify 2017 Foundedin2004,AMP’sannualAmplifyfestivalbringsleadingthinkerstoAMPfordiscussionsaboutthefutureofbusiness.Featuring42globalthoughtleadersexploringdigitaldisruptionandinnovation,Amplify2017wasattendedby2,700AMPcustomers,investorsandbusinesspeopleinSydney,MelbourneandAuckland.

LeadersfromSingularityUniversity,Facebook,Google,IBM,FlamingoandMIT(MassachusettsInstituteofTechnology)spokeaboutdigitaldisruptioninhealthcare,customerexperienceandtraditionalbusinessmodels;emergingtrendsinautomation,analyticsandartificialintelligence;aswellasblockchainandcryptocurrencies.

Amplify2017alsofeatured20businesschallengeworkshops,showcasedsixtechnologyproof-of-conceptsandenabled20AustralianPhDstudentstosharetheirideasattheIgnitepitchnight.

MoreinformationonAmplifycanbefoundatamp.com.au/amplify

2018 goals– Roll out the AMP Goals 360 goals-modelling platform

throughout the AMP advice network

– Continue to explore new technologies, including artificial intelligence and voice activation, to simplify processes and provide greater access to financial advice, tools and services

– Share business, technology and social innovation ideas at the Amplify 2018 festival in June

Our customers

AMP 2017 towards sustainability report14

Theseriskscontinuetobeafocusareaacrossthefinancialservicessector.

Assuch,weareenhancingourcybersecuritynetworkandhavedetective,preventativeandresponsivecontrolsinplacetoensureoursystemsandcustomerinformationisprotected.

Changesinthetechnologicalandconsumerlandscapealsoresultedinmorepublicawarenessofdataprivacyandprotection.Peopletrustustosecuretheirpersonalinformationandonlyuseitforthepurposestheyexpect.

Weworktoensurethesafetyofoursystemsandcustomerinformationinthefollowingways:

Data securityAMPiscommittedtoenhancingourcyberresilienceandrelatedcapabilitiesonanongoingbasis.Weregularlytest,reviewandenhanceoursecuritycapabilitiestoensureourcontrolsremaineffectiveinreducingtheimpactsofcyberincidents,aswellasmeetingincreasingregulatoryrequirements.

Associalengineeringandphishingremainthenumberonetechniqueusedbycybercriminals,itisofcriticalimportancethatwebuildacultureofcybersecurityawarenessatAMP.Acomprehensivecybersecurityawarenessandcultureprogramisrunbusiness-widetoensureallouremployeesareawareofthevarioustechniquesusedbycyberattackers,andcanconfidentlyandproactivelyreportanythingsuspiciousforinvestigation.

Aspartofthisinitiative,theAMPCyberSecurityTeamregularlyrunsphishingsimulationsthatimitaterealattacksacrossAMP.Ourfocusonrewardingstaffforreportingsuspiciousemailshasprovedtobehighlyeffectiveandwewillcontinuetofocusonbuildingastrongcybersecurityculturein2018.

Reporting data breachesDatabreachesinvolvetheloss,unauthorisedaccessordisclosureofpersonalinformation.Thiscanincludeanerrorbyacompany,thatofathirdpartyormaliciousattacksbyhackers.Managingandrespondingtoincidentsiscritical.AMPtakesdatasecurity,andourobligationstoreportandnotifycustomers,veryseriously.Wehaveacomprehensiveincidentresponseanddatabreachresponseplans,whichensureaproactiveapproachtounauthorisedaccess,disclosureorlossofpersonalinformation.

AMPisapartnerofCERT,whichisAustralia’snationalComputerEmergencyResponseTeam.CERTistheprimarygovernmentcontactpointformajorAustralianbusinessestoreceiveandrespondtocybersecurityincidentreports,aswellassupportandadvisebusinessesonhowtorespondtoandmitigatecyberincidents.

Ourdatabreachresponseplan,developedandimplementedin2017,setsouthowweidentify,contain,assessandnotifyrelevantregulatorsandimpactedcustomersofdatabreaches.ThisplanmeetsthenewstandardsoutlinedinthePrivacyAmendment(NotifiableDataBreaches)Act2017,whichcameintoeffecton22February2018.

While technological advancements provide great opportunities for us to innovate and offer new digital solutions for our customers, they also bring new cyber risks.

3. Cyber security and privacy

Our customers

AMP 2017 towards sustainability report15

2017 incident response InOctober2017,alimitednumberofAMPemployeeswereamong50,000workersfromacrossgovernmentagenciesandfinancialinstitutionswhosestaffexpenseswereinadvertentlyexposedbyathird-partysupplier.

Thedataexposedwashistorical,archivedandpartiallyanonymised.TheAustralianCyberSecurityCentre(ACSC)immediatelycontactedtheexternalcontractortosecuretheinformationandremovethevulnerabilitywithinhoursofnotification.Onceidentified,themistakewasquicklycorrectedandthematterinvestigatedtoensurealldatahadbeenremoved.NoAMPcustomerdatawascompromised.

AMPemployeesinAustraliaandNewZealandwhowereaffectedwerenotified.

Protecting customer privacy AMPhasprivacypoliciesandstatementsthatsetouthowwecollect,useandprotectpersonalinformation.Wetakestepstostorecustomerinformation–whichisgatheredthroughface-to-facemeetingsorbyinteractingwithusviatelephone,mail,onlineorothermethods–securely.AMPholdscustomers’personalinformationinacombinationofsecurecomputerstoragefacilities,paper-basedfilesandotherformats.

Whenwenolongerneedcustomers’personalinformation,wedelete,destroyorde-identifyit.CustomerscanaccessthepersonalandcreditinformationAMPholdsaboutthembycontactingus.Wetakeprivacy-relatedcomplaintsseriouslyandconsiderallcomplaintscarefullyaspartofourcommitmenttobeingopen,honestandfair.Inmostcases,wecontactcustomerswithinfiveworkingdaysofreceivingacomplainttoinformthemoftheactionstaken.

Raising privacy awareness Ouremployeesplayanimportantroleinprotectingcustomers’personalinformationfrommisuse,loss,unauthorisedaccessorimproperdisclosure,whichiswhyAMPprovidesprivacycommunicationandawarenesstoallemployees,includingmandatorytrainingonline.

AMPplaysanactiveroleinPrivacyAwarenessWeek–anOfficeoftheAustralianInformationCommissionerinitiativeheldeachMay–toraiseprivacyanddataprotectionawarenessacrossthecompany.

In2017,wetookpartbyraisingemployeeawarenessabouttheimportanceoffollowingprocessesandprocedures,raisingincidentsandmanagingprivacyriskswhendealingwithprojectsandbusinesschanges.

Moreinformationonourapproachtoprivacyandsecurityisavailableatamp.com.au/amp/privacy

2018 goals– Continue to build a strong cyber security culture and maintain

our data breach response plan – Enhance our security capabilities to ensure our controls

remain effective – Build awareness among employees about changes to mandatory

data breach reporting

Our customers

AMP 2017 towards sustainability report16

AMPrecognisesthatfailuretoeffectivelyanticipateandrespondtoregulatorychangescouldadverselyimpactourreputationandbusiness–and,inturn,ourcustomers,ourpeopleandourinvestors.

Wemanagethisriskbyhavingdedicatedresourcestoimplementrequiredchangeprogramsandactivelyengagewithgovernment,regulatorsandindustrybodiestoeffectivelymonitorandanticipateregulatorychanges.

AMPalsoplacessignificantfocusonourriskculturetoensurewearekeepingourlegalandregulatoryresponsibilitiesfrontofmindinourdailyactivities.

Restoring trust and confidenceWetakeourregulatoryandcommunityexpectationsseriously.Assuch,AMPwelcomestheopportunitytocontributetotheRoyalCommissionintoMisconductintheBanking,SuperannuationandFinancialServicesIndustry.Wefullysupportitsaimsaswebelieveastrongandstablefinancialsystemiscriticaltothenation’seconomyandtoallAustralians,andwilldoallwecantohelprestorethecommunity’strustandconfidenceinourindustry.

Contributing to policy and legislative developmentItisvitalthatAMPparticipatesinpolicyandlegislativedevelopmentsthatimpactourcustomers.Wehaveadedicatedteamtomonitorandactivelyrepresentourcustomersandstakeholdersonthecomplexlegislativeframeworkthatimpactsourinteractions,aswellasimportantdiscussionsonthepotentialoutcomesforretirementincomes,lifeinsuranceandfinancialadvice.

In2017wecontributedtomanyoftheseimportantpolicyandregulatorydevelopments,including:– supportingthelegislatedincreaseof

educationandethicalstandardsforexistingandnewfinancialadvisers.Thesewillbephasedinfrom1July2018andwerebasedonpositionsadvocatedbyAMPsinceAugust2014

– supportingreformsthatregulatethepaymentofcommissionsinthelifeinsuranceindustryandtheindustry-ledFinancialServicesCouncil(FSC)LifeInsuranceCodeofConduct,whichcommencedon1July2017

– providingsubmissionstothethree-phasedProductivityCommissioninquiryintotheeffectivenessandcompetitivenessofthedefaultsuperannuationmarket

– ProvidingsubmissionstotheProductivityCommission’sinquiryintothebankingandfinancialservicessector

– supportingthedevelopmentofthenewAustralianFinancialComplaintsAuthority,whichisdesignedtobeaone-stopshopforcustomerswhohaveacomplaintrelatingtofinancialservices

– contributingtotheworkbeingundertakenbytheParliamentaryCommitteeonCorporationsandFinancialServicesInquiryintotheLifeInsuranceIndustry,whichisexpectedtoreporttogovernmentinearly2018

– participatinginanumberofconsultationsregardingthedevelopmentofanewComprehensiveRetirementIncomeProduct(CIPR),whichwebelieveisafundamentalissuethatmustbeconsideredtoensureappropriateproductsandregulatorysettingscaterfortheneedsofAustralianswithgreaterlongevityandresultingagedcareneeds.

The financial services sector has experienced considerable regulatory and legislative change in recent years, as well as media and political scrutiny.

4. Regulatory environment

Our customers

AMP 2017 towards sustainability report17

ThisiswhyAMPiscommittedtoestablishingacultureofintegrity,helpandperformancethatenablesustomeetevolvingregulatory,customerandcommunityexpectations.

Wetakeavarietyofmeasurestomanagetheriskofinappropriate,unethicalorunlawfulbehaviourbyemployeesandouralignedadvisers,andprovideasafeenvironmentthatsupportspeopletospeakoutaboutpotentialissuesorconduct-relatedbehaviours.

Weknowourcustomerswanthelpthatisexpert,proactive,personalisedandeffortless.Asuiteofpolicies,chartersandguidelinescomplementtheseprinciplesandsetoutthebehaviourexpectedofouremployeesandadvisers,asrepresentativesofAMP.

Waysinwhichwemanageourethicalandlegalresponsibilitiesinclude:

Code of Conduct AMP’sCodeofConductsupportsastrongrisk-awarecultureandoutlinestheminimumstandardsforbehaviours,decision-makingandourexpectationsforhowwetreatouremployees,customers,businesspartnersandshareholders.

Bylivingbyourcode,weaimtocreateanorganisationthatmakesadifferencetothelivesofcustomersandprovidesemployeeswithaworkplacethatisflexibleandsupportive,fosterspersonalandprofessionaldevelopmentandbringsoutthebestinpeople.

OurcodeappliestoanyoneemployedbyorwhodoesworkforAMP.Wetrustourpeopletoactprofessionallyandwithintegrity;respectandvaluedifferencesandcreateasafeworkingenvironment;actinthebestinterestsofAMP,ourcustomers,businesspartnersandshareholders;identifyandmanageanyconflictsofinterest,andrespectprivacyandconfidentiality.

PoliciesthatcomplementAMP’sCodeofConductincludethoseoninclusionanddiversity,anti-moneylaunderingandcounterterroristfinancing,conflictsofinterestandmarketdisclosure.

Whistleblowing and fraud policies AMP’sWhistleblowingProgramexiststoprotectpeoplewhocalloutunacceptablebehaviour.In2017,AMPexpandedthisprogramtoprovidewhistleblowerswithafarstrongersenseofsafetyandprotectionthaneverbefore.

AMPcontractedanewexternalwhistleblowingserviceprovider,YourCall–a24/7globalindependentservicethatemployeescancalltoraiseconcernsindependently.YourCallalsoprovidesasupportcentreforwhistleblowers.

InadditiontobeingavailabletoAMPemployees,theprogramisnowopentoformeremployeesaswellasAMPcontractors,suppliersandAMP-alignedfinancialadvisersandtheiremployees.Itaimstogivepeopletheconfidencethattheirconcernswillbeinvestigatedinanobjective,independentandconfidentialmanner,withappropriatecorrectiveactiontobetakenaswarranted.

Ourpeoplehaveanobligationtoreportfraudulentincidents,enquiriesandunusualactivityinaccordancewithourFraudPolicy.Theyareencouragedtobevigilantofactivityandbehaviourthatmayappearunusualorsuspicious,andcanraiseconcernswithAMP’sEnterpriseRiskManagementTeam,theirlinemanagerorourWhistleblowerProgram.

MoreinformationonAMP’sCodeofConductandWhistleblowingPolicyareavailableatamp.com.au/corporategovernance

Everything we do, every decision we make, has an impact – not only on the long-term success of our business, but also on the lives of our customers.

5. Ethical conduct and professional standards

Our people

AMP 2017 towards sustainability report18

Supporting quality advice Asthelargestfinancialadvicenetworkinthecountry,AMPwantsAustralianstohaveconfidenceintheadviceweoffer.Tohelpouradvisersmeetthehighestethicalandprofessionalstandards–aswellastheFinancial Adviser Standards and Ethics Authority’s (FASEA) educationalrequirements–weprovidetraining,educationanddevelopmentopportunitiesaswellasthetools,knowledgeandsupporttodrivegoodoutcomes.

In2017weintroducednewinitiativestohelpassurequalityadvice,includingsharingmonthlyinsightsintoanycomplianceissues;takinganewapproachtoembeddingpolicyandprocessesviaourAdviceandProcessImprovementManagersandnewanalyticstohelpusidentifypracticeswhereinterventionmayberequired.Thesewerecomplementedbyourrefinedend-to-endissuemanagementandreportingprocessalignedtonewindustryandregulatorstandards,andatechnicalresearchteamthatinterpretsnewlegislationandregulationsforadvisers.

AMPalignedadviserswerealsosupportedwithanewrangeofLifeInsuranceFramework(LIF)activitiestopreparethemfornewlegislationtakingeffectinJanuary2018.Theseincludedmasterclasses,legislativeupdatesandspecialisedtrainingforpracticestaff,webinarsandaresourcehub.

Putting things rightInMarch2017,theAustralianSecuritiesandInvestmentsCommission(ASIC)issuedareporttitled‘Howlargeinstitutionsoverseetheiradvisers’.Partoftheregulator’sWealthManagementProject,whichhasbeenreviewingtheconductofsixofAustralia’slargestbankingandfinancialservicesinstitutions–ANZ,CBA,Macquarie,NAB,WestpacandAMP–thereportassessesnon-compliantadviceprovidedbetween1January2009and30June2015.ASICreleasedanupdateonthisreportwithdatatoDecember2017.

In2017,AMPpaid$7.3mincompensationtoover800customerswhohadreceivednon-compliantadvicebetween2009and2015.

Wecontinuetoremainsupportiveofregulatoryandindustryinitiativesthatensurecustomersreceivehighqualityfinancialadvice.AMPalsostandsbehindtheadvicewegiveand,ifweidentifycomplianceissues,weapologiseandoffercompensation.Weremainvigilantandcontinuallyassessandimproveallourprocessesandsystemstoensureourcustomershavetrustandconfidenceinthefinancialadvicetheyreceive.

AMPengagedanexternalconsultingfirmtoconductanindependentreviewoftheactionsweneededtotaketomeetASIC’sguidelines.Arepresentativefromthatfirmisnowleadingtheimplementationofourcompensationapproach.Wewillcontinuetoenhanceourmonitoringandsupervisionprocesses,workcloselywithouradvisernetworktoensuretheyremaincompliantwiththeregulations,andcontinuetoinvestintechnologytoembedcomplianceintotheadviceprocess.

Our people

2018 goals… – Support AMP-aligned advisers to meet the Financial Advisers

Standards and Ethics Authority’s education requirements – Continue to provide tools, training and expert support

to advisers – Continue to promote our Whistleblowing Policy to

AMP employees and advisers

AMP 2017 towards sustainability report19

Ourcustomersareasuniqueasweare,andtotrulyunderstandandsupportthem,weareleveragingthestrengthsandskillsofeachandeveryoneofourpeople.

Wevaluedifferentwaysofthinking,andeveryoneisencouragedtosharetheirthoughtsandexperiencestodeliverbetterbusinessdecisionsandsolutions.Therearefourpillarsinourinclusionanddiversitystrategy:– Committed and inclusive leadership:

Wesupportourleaderstocreateaninclusiveculture.Inour2017peoplesurvey,ouremployeesoverwhelminglysaidtheyfeelsupportedtoperformtothebestoftheirabilities,theirleadergenuinelycaresabouttheirwellbeingandAMPemployeesaretreatedfairly,regardlessofgender,age,ethnicity,race,disability,religion,sexualorientationorotherdifferences.

– Merit-based policies and practices: Wefocusonequalitywhenwerecruit,develop,promoteandpayourpeople,aswellaswhenwerecogniseandrewardtheirperformance.Thisincludeshavinggender-balancedrecruitmentshortlists,developingfemaleleaders,reviewingourpayandperformanceoutcomesandprovidingpoliciesandpractices−likeflexiblework−thatsupportallourpeople.

– Decision-making and voice: Weleveragethediversethinkingacrossourbusinesstobetterunderstandourcustomersandmeettheirneeds.

– Measurement, accountability and rewards: Wesetchallengingdiversitytargetsandbelievemeetingthesetargetswilldeliverbetterresultsforourbusiness.AMPalsoconductsanannualpayequityreviewtoanalyseandaddresspotentialareasofinequity.

TheCEOandGroupLeadershipTeammakeuptheAMPInclusionandDiversityCouncilandguidetheorganisation’sgoalsanddirectionforinclusionanddiversity.Theyarealsoresponsibleforinspiringourleadersandholdingthemtoaccount.ThePeopleandRemunerationCommitteeoverseestheimplementationofourinclusionanddiversityinitiatives,andreportsprogresstotheboard.

OurInclusion and Diversity Policy isavailableatamp.com.au/corporategovernance

Gender equality In2017,AMPwasonceagainnamedanEmployerofChoiceforGenderEqualitybytheFederalGovernment’sWorkplaceGenderEqualityAgency.

AMPhasgendertargetsinplaceandweremaincommittedtoachievingthem.Ourgoalistohavewomenhold47%ofseniorexecutiverolesand50%ofmiddlemanagerrolesbytheendof2020.Thesetargetsreflectourbeliefthataninclusiveanddiverseworkplacedeliversbetterresultsforourshareholders,customers,employees,businesspartnersandcommunities.

Despiteourongoingfocusongenderdiversity,AMPdidnotmeetitsprogresstargetsin2017,largelyduetochangesinouroperatingmodel.Therepresentationofwomeninseniorexecutiverolesfellto38%at31December2017,andwomenholdingmiddlemanagerroleswasat41%.

TheCEOandGroupLeadershipTeam(astheAMPInclusionandDiversityCouncil)hasreneweditsfocusongenderequalitywithadedicatedplantoincreasetherepresentationofwomenattheselevelsby:– takingovertaccountabilityforfemale

succession,talent,sponsorshipandadvocacy

– reviewingandaligningrecruitmentandappointmentpracticesanddecisionmaking

– mainstreamingflexibleworkforallemployees

– openlycommunicatingandsharingstoriesaboutgenderissuesandactions.

Overall,womenmakeup51%ofourworkforce.

Wealsohavea40:40:20targetinplacefortheAMPLimitedBoard,wherebywomenhold40%ofboardpositions,menhold40%ofpositionsandeitherwomenormenholdtheremaining20%ofpositions.Womencurrentlyfill40%ofpositionsontheAMPLimitedBoardandweareoneofthefewASX200companieswithafemalechairman.

We believe an inclusive and diverse workplace delivers better results for our shareholders, customers, employees, business partners and communities.

5,697 employees (FTE) worked at AMP

51% of AMP employees were female

6. Diversity and inclusion

Our people

40%of the AMP Limited Board members were female, meeting our 2020 target

AMP 2017 towards sustainability report20

Representation of women at AMP

Roles 2020 target (%) 2017 progress target (%) 31 December 2017 (%) 31 December 2016 (%)

AMPLimitedBoard 40 40 40 40

Seniorexecutives1 47 42 38 40

Middlemanagement2 50 44 41 41

Allemployees n/a n/a 51 52

1 SeniorexecutivesaregenerallyonetofourreportinglayersbelowtheCEOandrepresentthetop8%oftheorganisation.Peopleintheserolestypicallyleaddiscretefunctionsandareresponsibleformakingstrategicdecisionsforthosefunctions.TheygenerallyhavethetitleGroupExecutive,DirectororHeadof.

2 MiddlemanagersaregenerallybetweenthreetosixreportinglayersbelowtheCEOandrepresentthenext25%oftheorganisation.Peopleintheserolestypicallyreporttoourseniorexecutivesandareinvolvedinoperationaldecisionmaking,orhavespecialisedandhighvalueskills.TheyhaveawiderangeoftitlesincludingSeniorManager,ManagerandLead.

Drawing on diverse experiences AMPaimstounderstandthemakeupofourpeopleandleveragetheiruniqueinsightsandexperience.ResultsfromAMP’sfirstinclusionanddiversitysurvey,completedby4,138employeesinmid-2016,revealedthat:– 49%wereborninAustralia– 10%wereborninNewZealand– 1.9%identifywithanIndigenousculture

ofthePacificregion(AboriginalorTorresStraitIslander,MaoriorPacificIslander)

– 17%speakalanguageotherthanEnglishathome

– 10%arefluentineitherHindi,MandarinorCantonese

– 48%haveworkedinanothercountryformorethansixmonths

– 40%haveonlyworkedinfinancialservices/insuranceinthepast10years

– 66%areuniversityqualified– 4%haveaphysical,sensory,learning

ormentalhealthdisability

Beingawareofouremployees’culturalbackgroundnotonlyprovidesdifferentperspectivesonourbusinessbutalsoenablesustobetterconnectwithourcustomers.Forexample,wedrawonourpeople’slanguagecapabilitiesinourcustomercontactcentreandforAMPCapitalclientinteractions.

AMProudAMProudisacommunitygroupforlesbian,gay,bisexual,transgender,intersexandqueer/questioning(LGBTIQ)employeesandtheiralliesandsupporters.ThegroupisopentoallAMPemployees,regardlessofsexualorientation,andpromotesadiverseandinclusiveenvironmentwhereemployeescanconfidentlypresentthemselves,andfeelfreetotalkabouttheirfamilyandlives.AMProudplayedanimportantroleinAMP’s2017decisiontosupportmarriageequalityinAustralia.

MoreinformationonworkingatAMPcanbefoundatamp.com.au/ampcareers

2018 goals– Work towards achieving gender parity in AMP’s middle

and senior management by 2020– Increase our focus on flexible work for our employees

Our people

AMP 2017 towards sustainability report21

AMPactivelysupportsthephysicalandpsychologicalhealthofouremployeesthrougharangeofhealthandwellbeinginitiatives.Ourvisionistohelpourpeopletobeandperformattheirbest,andsupportourcustomerstoachievetheirgoals.

Stabilityandtheretentionofintellectualcapitalisalsocriticaltoourbusiness,whichiswhywededicateresourcestomanagechangeandstrivetocreateasafeandsupportiveworkenvironment.

Wesupportourpeople’shealth,wellbeingandprofessionaldevelopmentinthefollowingways:

Healthy workplaces In2017,wecontinuedtherolloutofouractivity-basedworking(ABW)modeltoourBrisbaneofficeandthroughoutmoreofourSydneyheadquarters.OurABWdesignincludesavarietyofworkingspaces,standingdesksandmobiletechnologytoencourageflexibleandhealthierworkpractices.

Wearealignedwithinternationallyrecognisedhealthybuildingframeworks,includingGreenStar,theWELLBuildingStandardandFitwel,toensurebest-practiceinindoorenvironmentalquality,ergonomicsandactivespaces.

AsignatorytotheRoyalAustralasianCollegeofPhysicians’ConsensusStatementon‘goodwork’,weimplementhealthandsafetysystemsthatminimiseriskstophysicalandmentalhealth.Wehelpourpeoplemanagetheirhealththroughstructuredfitnessandnutritionprogramsandbyprovidingon-sitefluvaccinations,

skincancerchecksandmedicaltests.

OurBoard’sRiskCommitteemonitorshealthandsafetyperformanceandoverseestheidentificationandmitigationofworkplacerisksandimplementationofprogramstocontinuallyseekfurtherbest-practiceinjurypreventionandmanagementopportunitieswithinthebusiness.

Throughout2017,AMPembarkedonacontinuousimprovementplantosimplifyourframeworktokeepourpeoplesafeandsupported.Ourglobalpolicywasrevisedtoencompassourviewofwellbeing,healthandsafety.Thispolicy,alongwiththecommencementofsystemsenhancementsandthedevelopmentofaholisticwellbeingstrategy,willkeepusfocusedonmaintainingapositiveandproductiveculture.

2017alsosawtheintroductionofourDomesticandFamilyViolenceSupportPolicytosupportemployeeswhoaredirectlyorindirectlyexperiencingdomesticorfamilyviolence.

Mental health initiatives AMPunderstandstheimportanceworkplaysinindividualwellbeing,particularlymentalhealth.Wesupportourpeopletomanagetheirmentalhealththroughresiliencetraining,flexibleworkpoliciesandaccesstoafree,confidentialcounsellingserviceforthemselvesandtheirimmediatefamily.

In2017,AMPlaunchedanupdatedmentalhealthtrainingprogramforallouremployeesandadvisersinpartnershipwiththeBlackDogInstitute.Thistraining

program,originallydevelopedforcustomer-facinginsurancestaff,exceedstheFinancialServicesCouncilstandardsintermsofthebreadthofpeopleabletoaccessthetrainingandthedepthofcontentcovered.

Employee benefitsAMPprovidesemployeeoffersforarangeoffinancial,physicalandmentalhealthservices,including:– anAMPchildcarecentreinSydney

andgenerousparentalleave– acomprehensivevolunteeringand

matchedgivingprogramthroughtheAMPFoundation

– offersforfinancialproductsandservices– 12%employersuperannuation

contributions– salary-sacrificedgymmemberships,

childcarefees,supercontributions,parking,novatedleases

– regularhealthandwellbeingprograms,andon-sitegymsatsomeoffices

– third-partydiscountsthroughouronlinediscountprogram,AMPAdvantage

– flexibleworkingarrangementsandtheopportunitytopurchaseadditionalleaveeachyear.

Perform@AMPIn2016,were-inventedourapproachtoperformancemanagementandintroducedPerform@AMP,whichisunderpinnedbythephilosophyof‘alwayslearningandimproving–together’.Theapproach,designedtobemoreagileandcollaborative,focusesonimprovingperformancethroughfrequent,qualityconversations.

7. Supporting and developing people

Our people

78%of employees adopted the new Perform@AMP style of performance management

3rdranked financial services employer of graduates by the 2017 Australian Association of Graduate Employees Survey

Our promise to help people own tomorrow includes supporting the health, wellbeing and development of our employees and advisers.

122university students enrolled in the AMP Adviser Academy

AMP 2017 towards sustainability report22

Performanceisassessedonarangeoffactors,notjustanemployee’sabilitytodeliverresults,butalsohowtheyhelpcustomersandcolleagues,howtheykeepupwithchange,howtheydemonstrateimprovementandareaccountablefortheirdevelopment.Perform@AMPincludesanonlinetoolkitthathelpsourpeoplesettheirgoalsandcreateadevelopmentplan.

In2017,78%ofouremployees–includingleaders–adoptedPerform@AMP.Groundedinbestpractice,neuroscienceandourowninsights,Perform@AMPwonaGoodDesignAwardforServiceDesignin2017inrecognitionofitshuman-centreddesign.

Our graduate programAMPprovidessupportedentryintothefinancialservicessectorthroughourgraduateprogram.Thistwo-yeartargeteddevelopmentprogram,whichiscommittedtonurturingnewtalent,tookin34Australiangraduatesin2017.Forthesecondyearinarow,theAustralianAssociationofGraduateEmployees(AAGE)placedAMPinthetopthreeemployersofgraduatesintheAustralianfinancialservicessector.Overall,AMPwasrankedsixthoutof75inAAGE’sgraduateemployerslist.Theratingisbasedonanationalsurveyofmorethan2,500graduateparticipantsandmeasuredtheexperienceofgraduateswhojoinedourprograminFebruary2017.

Supporting new advisers TheinitialprofessionaldevelopmentofnewfinancialadvisersissupportedthroughtheAMPAdviserAcademy–acentreofexcellencededicatedtofinancialadvisereducation.

TheAMPAdviserAcademy,whichcelebrateditstenthanniversaryin2017,delivershigh-qualityadvicetrainingforthosenewtotheprofession,seekingacareerchangeorlookingtostarttheirownpractice.A2017snapshotofthoseattendingtheacademyshowslessthanhalfhavehadanaccountingorfinancialservicesbackground,andsignificantnumberscamefromfieldssuchaseducation,customerserviceandengineering.Studentsaged46andoverarerepresentedinalmostequalnumbersasthoseunder26.

Theacademyoffersworkshops,tutorialsandcoachingsessionsthroughitsFinancialPlanningSkillsunit.PartoftheGriffithUniversityMasterofFinancialPlanning(MFP)qualification,thissubjectwasintroducedin2015inresponsetothedemandforflexibledegree-levelqualificationsresultingfromthegovernment’sincomingminimumeducationstandardsandAMP’scommitmenttosettingthebenchmarkforqualityfinancialadvice.StudentssplittheirtimeequallybetweenstudyingonlineandresidentiallyattheAMPAcademyinSydney’sStLeonards.

In2017,122universitystudentswereenrolledintheAMPAdviserAcademy.Duringtheyear,theAMPAdviserAcademywasrecognisedwithtwointernationalawards:theLearnXPlatinumBestTalentPartnershipforitsjointinitiativeswithGriffithUniversityandtheLearnXPlatinumAwardforBestBespoke/CustomProgram.

Developing the future of adviceTheAMPAdviserAcademy’sFinancialPlanningSkillsgraduates,havetheopportunitytosecureroleswithinAMPAdviceoralignedpractices,wheretheyreceiveon-the-jobtrainingandmentoring.

AllourrecruitedadvisersundergorobustbackgroundchecksinaccordancewiththeAustralianBankers’Associationreferencecheckingprotocol.

AMPisexploringopportunitiesfornewadviserstogainexperiencebyofferinggeneralorscopedadviceinAMP’sphone-basedadviceteam,wheretheycanhonetheirclientskillsbeforebecomingfully-fledgedpractitioners.

In2017,AMPsponsoredFinancialPlanningEducationCouncilresearchgrantswiththeFinancialPlanningAssociationwiththeaimofpublishingresearchontopicsincludingethicalchallengesinfinancialplanning,thesupportneedsofsmalladvicebusinesses,driversandbarriersofwomenenteringthesectoranddemandfornewandexistinggraduates.

WealsorantheseventhAMPUniversityChallenge–anationalfinancialplanningcompetitionfortertiarystudentsthataimstoidentifynewtalentandpromotehighstandardsamongthenextgenerationofadvisers.AteamfromGriffithUniversitywonthe2017competition,whichattractedarecord706students–37%ofwhomwerefemale.AMP’sUniversityChallengewasintegratedintothe2017curriculumforstudentsstudyingfinancialplanningmajorsatDeakinUniversity,TAFENSW,LaTrobeUniversityandWesternSydneyUniversity.

2018 goals– Evolve the AMP Adviser Academy to offer more pathways

and coaching – Continue to develop and embed Perform@AMP across

the business

Our people

AMP 2017 towards sustainability report23

Itposesarangeofrisks,particularlyfortheinvestmentswemanageonbehalfofourcustomers,andalsothewidercommunity.

Wetakemeasurestoreduceourimpactontheenvironmentthroughresponsibleinvestingandcarbon-reductioninitiativesacrossthebusiness.Wehavebeenactivelypursuingthesemeasuressince2002,whenwereleasedourfirstEnvironmentalPolicyandAMPCapital–AMP’sinvestmentmanager–signeduptotheCarbonDisclosureProject(CDP).

AMPbecamecarbon-neutralforourownoperationsin2013andhasremainedsoeversince.In2017,wecontinuedtobuildonthisprogress,settingnewoperationalobjectivesandtargets.WecommittedtofurtherincreasingourexistinganalysisandassessmentofclimatechangerisksandopportunitiesandincreasedourownCDPratingtoanA-minusleadershiplevel.

Taskforce on Climate-related Financial DisclosuresInmid-2017,thefinalreportoftheG20FinancialStabilityBoard–Taskforce on Climate-related Financial Disclosures (TCFD)providedhelpfulrecommendationsforcompaniesonbothhowtheycanconsiderclimatechangerisksandhowtodisclosetheseriskswithintheirexistingfinancialdisclosures.AMPisreviewingtheTCFDrecommendationswithinthecontextofourexistingapproachtoclimateriskanddisclosure,withaviewtoaligningtheseovertime.

AMP’scurrentdisclosuresaligntosomeelementsoftheTCFDframework,particularlyinourinvestmentmanagementbusinesswhereclimaterisksareamaterialconsiderationininvestmentdecisions.Wealsorecognisewehavefurtherworktodoinotherbusinessareas.AMP’sfull2017 CDP submissioncontainsdisclosuresofourrisksandopportunities.

Climate governanceWithinAMP,overallresponsibilityformanagingclimatechangeimpactsrestswiththeAMPGroupLeadershipTeam(GLT)–theCEOandhisdirectreports.TheAMPLimitedBoardhasoversightresponsibilitiestomanageriskandreceivesbriefingsonclimatechangeasrequiredviatheBoardRiskCommittee(BRC).TheGLTreceivesupdatesthroughtheGroupRiskandComplianceCommittee(GRCC)andAMP’sEnvironmentLeadershipTeam(ELT),whichisresponsibleforaddressingAMP’soperationalenvironmentalimpacts,objectivesandtargets.TheEnvironmentalLegislativeCompliance(ELC)CommitteealsomonitorscompliancewithrelevantlawsincludingAMP’sannualreportingundertheNationalGreenhouseandEnergyReporting(NGER)Act.

AMPCapital’sInvestmentCommitteehasoverallresponsibilityforinvestment-relatedrisksformanagedportfolios,includingforAMPSuperannuationcustomers.Thiscommitteedrawsondedicatedin-houseenvironmental,socialandgovernance(ESG)professionalswhohaveundertakenextensiveanalysisonclimatechangeforwelloveradecade.

AMP recognises climate change is a significant economic and environmental challenge impacting our society.

8. Climate change and the environment

Our community

33% reduction in Scope 1 and 2 greenhouse gas emissions (mainly electricity use) from our 2013 base year

A-minus Carbon Disclosure Project ranking achieved, rising from a B in 2016

5% reduction in Scope 1 and 2 (operational) greenhouse gas emissions

AMP 2017 towards sustainability report24

Climate strategy and risk managementAsadiversifiedfinancialservicesbusiness,AMP’sfocusinvolvesunderstandinghowthecomplexitiesofclimatechangeimpactuponourcompanyoperations,corporatereputation,themarketplace(productdemand),howwerespondtoemergingregulatory,policyanddisclosurerequirementsandhowwemanageeconomictransitionandphysicalrisksrelatingtoourclients’investmentsandportfolios.AMPisincreasingouranalysisandassessmentofclimaterisksandopportunitiesacrossourbusiness,includingourinsurance,AMPBank,adviceandsuperannuationdivisions.

TheareaofourbusinesswherewehavemadethemostprogressisAMPCapital.AsAMP’sinvestmentmanagementdivision,ithasafiduciarydutytoconsiderclimateriskswhenmanaginginvestmentsonbehalfofunderlyinginvestors.Thisincludesunderstandinghowclimatechangemaymanifestasrisksandopportunitiestothelistedandunlistedcompanies,fixedincomeinstruments,infrastructureandpropertyassetsinwhichitinvests.

AMPCapitalundertakesextensiveinvestmentresearchandassessmentsofclimatechangeriskstoitsmanagedinvestmentsthroughitsexistingEnvironmental,SocialandGovernance(ESG)frameworks.Ouranalysistypicallyincludesconsiderationofcarbonregulation,directandindirectcosts,geographicexposuretoclimatepolicy,capacityof

businessesandassetstoadaptandmanagerisks,andtransitionalgovernmentalassistanceprograms.Thisenablesassessmentsofcompanyandportfolioexposurestoclimatechange,includingpotentialriskofstrandedassets.

Insights and analysis Overthepast12years,AMPCapital’sESGteamhaspublishednumerousinvestmentinsightscoveringtopicssuchastheimpactofacarbonpriceonAustralia’saluminiumsector,regulatorydesignconsiderationsforanationalemissionstradingschemeandhowtoconsiderclimatechangeriskinequityportfolios.Wealsocommissionedanexternalclimatechangescenarioanalysisonthestrategic-assetallocationdecision-makingprocessforoneofourflagshipdiversifiedfunds.

In2017,webegantomeasureandpubliclydisclosethecarbonfootprintofequityportfoliosandworkhasstartedoncreatingmethodologiesforotherassetclasses.Recognisingwehavemoreworktodo,wecommencedfurtherscenarioanalyses,includingaprojectedcarbonpriceof$100/tonne(CO2-e)oninternallyandexternallymanagedequityportfolios.Wehaveundertakenpreliminary scenario analysis ofvalueatriskfromthephasingoutoffossilfuelsforourmajorequitybenchmarksandhavestartedtoconsidertheeffectsofwhata2-degreesCelsiusscenariomightmeanwithrespecttoreductioninfossilfuelexposure.

Byincreasingourclimateriskanalysis,AMPCapitalaimstopromotetransparencyinequityportfoliosandprovidelow-carbonoptionsforinvestorsandcustomersofAMPsuperannuationaspartofthetransitiontoalowcarboneconomy.AMPCapital’sResponsibleInvestmentLeaders(RIL)rangeoffundsiswellpositionedwithrespecttothermalcoalexposureandhighercostoilexposure.TheRILfundswereoneofthefirstmajorAustraliandiversifiedfundstoadoptafossilfueldivestmentpolicyandaspecificgreenbondmandate.

Thisanalysisalsoinformsouractiveengagementstrategieswithcompaniesandpolicymakersonclimatechangeandthroughoursupportofarangeofinvestorcollaborationsandinitiatives.Thisincludesasco-founderoftheInvestor Group on Climate Change (IGCC),anearlyinvestorsignatorytotheCDP,co-signingGlobal Investor Statements on Climate Change toG7andG20governmentsandjoiningtheClimate Action 100+ investorengagementinitiative,whichaimstoengagewithleadingcorporategreenhousegasemitterstocurbemissionsandstrengthentheclimate-relatedfinancialdisclosures.

ClimatechangeisalsoaddressedthroughESGperformancebenchmarkingofourflagshippropertyandinfrastructurefunds.Thishelpstoinformfundandassetmanagementstrategiesrelatingtocarbonemissionreductions,assetresilience,fosteringinvestmentopportunitiesinlowcarbontechnologiesanddirectinvestment(equityanddebt)inrenewableenergyassets.

Our community

2018 goals– Review the recommendations from the Financial Stability Board’s

Task Force on Climate-related Financial Disclosures (TCFD), within the context of our existing approach to climate risk

– Remain carbon neutral and continue to reduce our operational energy use

– Work towards greater renewable energy adoption through real estate investment portfolios and AMP operations

AMP 2017 towards sustainability report25

Our community

Renewable energy and low-carbon investmentsRenewableenergyisakeyinvestmentthemeforAMPCapital’sinfrastructurestrategyandweareseeingastrongpipelineofopportunitiesintheUS,AustraliaandEurope.Thispipelineismatchedbyever-increasinginterestininfrastructureequityanddebtasanassetclassfromglobalinvestors,particularlypensionplansandinsurancecompanies.

InagrowthdevelopmentforAdven,anadvancedEuropeanenergysolutionsbusinessthatAMPCapitalownsa50%stakein,weacquiredadistrictheatinganddistributedenergysolutionsbusiness,EVLE,whichisbasedinSweden.

In2017,AMPCapital’sInfrastructureDebtteamprovidedfinancingforsecuredconstructionprojectsforFrenchrenewableenergyproviderNeoen,includingwindandsolarphotovoltaicassets,predominatelylocatedinFranceandAustralia.WealsoexpandedourinvestmentwithAlterraPowerCorp.,aCanadianrenewableenergycompanythatmanageseightpowerplantsofhydro,wind,geothermalandsolargenerationcapacityinCanada,theUSandIceland.

Throughourfixed-incomeportfolioswecontinuetoprovideourclientswithinvestmentopportunitiesintherapidlygrowingmarketforgreenbonds.Coveringbankbonds,semi-governmentbonds,supranationalsandgovernmentagencyandcorporatebondstheseinvestmentproceedsarefundingprojectsinrenewableenergy,energyefficiency,low-carbontransport,sustainableforestryandclimateadaptationandresilience.

Metrics and targetsInMarch2017,theAustralianGovernment’sCleanEnergyFinanceCorporation(CEFC)committedtoinvesting$100mintheAMPCapitalWholesaleOfficeFund(AWOF)–aportfolioofhigh-qualitycommercialpropertyassets.Becomingcarbonneutralby2030isjustoneofthelong-termtargetsthatmadeAWOF’ssustainablepropertystrategyanattractiveinvestmentforCEFC.

OthertargetsforAWOFincludeliftingtheportfolio’sNationalAustralianBuiltEnvironmentRatingSystem(NABERS)averageto5.5-starsby2030.Italsoincludesdeliveringapipelineofsustainableflagshipassets,suchastheAustralianTechnologyParkandQuayQuarterTowerinSydney’sCBD.QuayToweristargetinga6-starGreenStarand5.5-starNABERSratingoncecompleted,aswellaspursuingcertificationagainsttheleadingWELLBuildingStandardtoboosttenantwellbeing.

InMelbourne,theAMPCapital-managed700BourkeStreetachieveda6-starGreenPerformancerating–afirstforVictoriaandonlythefourthbuildinginAustraliatoachievethisrating.WealsocarriedoutGreenStarPerformanceassessmentson45assetsacrossouroffice,industrialandshoppingcentreportfolios.

AMP 2017 towards sustainability report26

Our community

AMP’s NABERS Energy Tenancy ratings (2014–17)

Office 2017 2016 2015 2014

33AlfredStreet,Sydney 5 4 4 3.5

JessieStreetCentre,Parramatta1 4.5 4.5 4 5.5

50BridgeStreet,Sydney 5.5 5.5 5.5 5.5

750CollinsStreet,Melbourne2 4 4.5 3.5 4

192AnnStreet,Brisbane 5 5 5 –

104MelbourneStreet,Brisbane 4 4 4 –

240QueenStreet,Brisbane3 5 5.5 5.5 –

2124GoldCoastHighway,Miami 5 – – –

70HindmarshSquare,Adelaide 4 – – –

16AltonaStreet,Perth 2 – – –

Area-weighted average 4.71 4.45 4.11 4.19

1 OurJessieStreetofficeNABERSratingfellfrom2014duetoachangeinenergycoverageofsupplementaryequipment.2 OurCollinsStreetofficeratingdecreasedduetoachangeinoccupiedspace.3 OurQueenStreetofficeratingdecreasedduetoachangeinoccupiedspace.

Reducing our own environmental impacts AMPiscommittedtoreducingenvironmentalimpactsthroughourownbusinessoperations,engagingemployeesininitiativestargetingresourceefficiencyandreductionsinourenvironmentalfootprint.

In2017wereviewedourstrategyandsetnewenvironmentalobjectivestobuildonourprogress.Theseinclude:– 40%reductioninoperationalScope1

and2emissions(mainlyofficeelectricityusage)2017-21,fromour2013baseyear

– ExpandingreportingofourScope3emissionsbeyondairtraveltoincludeadditionalsources(egwaste,paper,outsourcedITandbasebuildingemissions)

– FurtherimprovingourdisclosuresofclimateriskandcarbonexposureofAMPCapitalinvestmentportfolios

– IncreasingrenewableenergyadoptionthroughourrealestateinvestmentportfoliosandAMPoperations

Ouroperationalcarbon-reductionstrategyisunderpinnedbythecontinuedrolloutofactivity-basedworkingarrangementstoAMPofficesinAdelaide,Brisbaneand

Sydney.ThisprojecthasraisedtheNABERSEnergyTenancyratingsofourbuildings,withtheaverageweightedrateforAMP’s10largestAustralianofficesin2017being4.71.OurheadquartersinCircularQuayachieveda5-starNABERSEnergyTenancyratingin2017,risingfroma3.5-starratingpriortoadoptingtheactivity-basedworkingmodel.AMPwasalsoawardedaSouthAustralianCitySwitchSignatoryoftheYearAwardforsustainabilityexcellenceatournewAdelaideoffice.

TheseactivitiesarecontinuingtodriveAMP’semissionreductions,resultingina5%year-on-yeardecreaseinScope1and2emissionscomparedto2016.Thisequatestoa33%reductionfromour2013baseyear.

In2017,weexpandedourScope3reportingboundarytoincludeseveraladditionalrelevantemissionsourcesduetoimprovementsindatacollectionandcalculationmethodologies.AMP’sScope3inventorynowincludesairtravel,transmissionanddistributionlosses,basebuildingemissionsarisingfromourtenancies,offshorebusinessprocessingandoutsourcedIT(includingexternally

manageddatacentres).ThisisconsistentwithourcommitmenttoexpandingScope3reportingofAMP’soperationalfootprint.

FurtherdetailsareprovidedinAMP’sEnvironmentalPerformanceDatabelow,reportedinlinewithAMP’sGreenhouseGasReportingCriteria.Everyyearsince2013,AMP’sScope1,2and3emissionsarealsoassuredbyErnst&Young(EY).

Carbon offsets Eachyear,AMPreducesemissionsthroughenergyefficiencyand,tomeetourtargets,offsetstheremainingemissionsbypurchasingcarboncreditsfromverifiedprojects.Toachievecarbonneutralityin2017,AMPpurchasedandretired26,831carbonoffsetsfromprojectsthatdeliverenvironmentalandcommunitybenefits.Theseincludewastewatertreatmentplants,windfarms,run-of-riverhydropowerplantsandwaterprojectthatprovideeconomicandsocialbenefits.

InformationonAMP’senvironmentalperformanceisavailableatamp.com.au/environment

AMP 2017 towards sustainability report27

AMP’s environmental performance data

Emissions (tCO2-e) 2017 2016 2015 2014 20134

AMP operations5

Scope 1 and 2 emissions 9,317 9,799 10,150 11,832 13,986

Datacentre6 0 2,059 5,703 6,527 6,844

Smallsites(wheredataavailable)7 385 – – – –

Total Scope 1 and 2 emissions 9,702 11,858 15,853 18,359 20,830

Year-on-yearreduction8 5%

Reductionfrombaseyear9 33%

Scope 3 emissions

Airtravel 9,301 9,350 9,341 9,282 11,592

Transmissionanddistributionlosses 1,347 – – – –

Waste 203 – – – –

Basebuildingemissions 4,804 – – – –

Offshorebusinessprocessing 1,025 – – – –

OutsourcedIT 449 – – – –

Total Scope 3 emissions 17,129 9,350 9,341 9,282 11,592

GrossScope1,2and3emissions(airtravelonly) 19,003 21,208 25,194 27,641 32,422

ExpandedScope3sourcesreportingin2017 7,828 – – – –

Gross Scope 1, 2 and 3 emissions (including additional Scope 3 now reported from 2017)

26,831 – – – –

Carbon offsets retired 26,831 21,208 25,194 27,641 32,422

Target Carbonneutral Carbonneutral Carbonneutral Carbonneutral Carbonneutral

Paper usage (kg) 65,847 87,552 107,146 138,140 165,953

Waste (kg) 200,864 – – – –

Managed Investments (real estate) FY2017 FY2016 FY2015 FY2014 FY2013

AMP Limited10

Scope1 8,455 10,881 9,021 8,841 12,120

Scope2 98,203 106,203 112,962 133,992 154,462

Total Scope 1 and 2 106,658 117,084 121,983 142,833 166,582

AMP Limited CDP ratings 2017 2016 2015 2014 2013

Carbon Disclosure Project A- B B(95) B(89) B(77)

4 2013isAMP’sbaseyear.5 AMPoperationsincludeallAMPinternationalofficelocations,pertheAMPGHGreportingCriteria.ErnstandYoung(EY)hasprovidedlimited

assuranceoverthisdatafrom2013-2017.6 In2016,AMPclosedandsolditsdatacentre.Inordertomakemeaningfulcomparisonsovertime,wehaveadjustedtheScope1and2inventory.7 Duetoimprovementsindatacollectionandmetering,AMPisabletoreportonadditionalsmallerofficeswheredatahaspreviouslynotbeenavailable.8 Year-on-yearreductioncomparingScope1and2emissionsexcludingdatacentreandsmallsites.Thisallowsformeaningfulcomparisonsovertime.9 ReductionfrombaseyearcomparingScope1and2emissionsexcludingdatacentreandsmallsites.Thisallowsformeaningfulcomparisons

overtime.10 AMPalsoreportsannuallytotheAustralianGovernmentundertheNationalGreenhouseandEnergyReportingAct2007,whichlargelyconsists

ofrealestateinvestmentsmanagedbyAMPCapitalonbehalfofunderlyinginvestors.NotethesefiguresalsoincludeAMPtenantedofficesinAustralia,whicharealsoincludedinAMP’soperationalfootprint.Thisdataisforyearending30June2017asreportedtotheCleanEnergyRegulator,withlimitedassurancealsoprovidedbyEY.

Our community

AMP 2017 towards sustainability report28

AMPhasalonghistoryofresponsibleinvesting.Ourin-houseinvestmentmanager,AMPCapital,wasoneofAustralia’sfirstsignatoriestotheUN-backedPrinciplesforResponsibleInvestment(PRI)in2007.

Wehavesincestrengthenedourposition,understandingthatitispossibletomeetourfiduciaryobligationstoinvestorsandourobligationstosocietyasagoodcorporatecitizen.

AssessingESGrisksandopportunitiesisanintegralpartofAMPCapital’sinvestmentprocess.Factorssuchasnaturalresourceuse,environmentalmanagement,climatechange,humanrights,workplacehealthandsafety,executiveremuneration,boardcompositionanddiversityareamongthoseconsideredwhenmakinginvestmentdecisionsonbehalfofourclients,includingAMPSuperannuationmembers.

Investment approach AMPCapital’sESGandResponsible Investment Philosophy outlinesourapproachtoconsideringmaterialESGfactors.ApprovedbyAMPCapital’sInvestmentCommittee,itlinkstootherESG-relatedpolicies,proceduresandproprietarytoolsthatformpartoftheESGframework.Theseincludeguidelinesandpoliciesrelatingtocorporategovernance,proxyvoting,engagementandactiveownership.

AMPCapital’steamofESGspecialistsworkacrossbusinessfunctionsandinvestmentteams,providingresearchandadvicethatisintegratedintoourdecision-makingandactiveownershipstrategies.

AMPCapitalalsoaimstoraisecorporateresponsibilitystandardsbyleveragingitsexperienceandreputation.Weactivelyengagetheboardsandmanagementteamsofinvesteecompaniesandassets,encouragingsoundriskmanagement,appropriatecapitalallocation,fairremunerationandopenandhonestdisclosure.AMPCapitalalsousesitsproxyvotingpowertoencouragecorporatebehaviourthatdeliversbetterresultsforinvestors,shareholdersandthecommunity.

AMPCapitalparticipatesinarangeofinitiatives,includingthePRI,GRESB,theInternationalCorporateGovernanceNetwork(ICGN)andResponsibleInvestmentAssociationAustralasia,asco-foundersoftheInvestorGrouponClimateChange.

In2017,responsibleinvestmentinitiativesincluded:

Ethical investment frameworkUnderthenewAMPCapitaldecision-makingframework,introducedinMarch2017,companiesorsectorsmaybeexcludedfromourportfolioonethicalgrounds.Itwasdecidedthatmanufacturersoftobacco,clustermunitions,landmines,biologicalandchemicalweaponsdonotmeetournewminimumethicalstandards.ThisdecisiontriggeredoneofthelargestdivestmentsoftobaccomanufacturingsecuritiesbyaninvestmentmanagerinAustralia,includingapproximately$440millionofequityandfixedincomeholdingsand$130millionofinvestmentinclustermunitionsandlandminesmanufacturers.

ThenewframeworkcomplementsAMPCapital’sexistingapproachtoaddressingESGinvestmentrisksbyhelpingtoresolvecomplexethicalissuesastheyarise.Italsoreflectsthechangingattitudesofourclients,whoincreasinglydonotwanttobeinvestedinharmfulproducts.

There is a clear link between an organisation’s environmental and social impacts, ethical practices and quality of its corporate governance and its long-term business success.

9. Responsible investing

Our community

$440m of tobacco manufacturing-related equity and fixed income holdings divested by AMP Capital

5 GRESB Green Stars – the highest rating – awarded to six AMP Capital real estate funds

1st place in the GRESB Infrastructure rankings for AMP Capital’s Diversified Infrastructure Trust

AMP 2017 towards sustainability report29

Property and infrastructure funds Withinourrealassetportfolios,AMPCapitalisstrengtheningESGstrategiesforitsflagshippropertyandinfrastructurefundsandtheirunderlyingassets.In2017,threeAMPCapitalinfrastructureequityfundsrankedinthetop10ofGRESB(Global Real Estate Sustainability Benchmark)Infrastructure’sannualrankingsforESGperformance.

In2017,forthesecondyearinarowAMPCapital’sDiversifiedInfrastructureTrusttoppedGRESBInfrastructure’srankings,whichincludedsubmissionsfrom64fundsand160infrastructureassetsworldwide.AMPCapital’sIrishInfrastructureFundandAMPCapital’sGlobalInfrastructureFundwerealsorankedsecondandthirdrespectively,whencomparedtotheirpeergroups.

SixAMPCapitalrealestatefunds,withapproximately$23billionofassetsundermanagement,alsoscoredmorethan80%intheGRESBratingsandwereawardedfiveGreenStars–thehighestrating.

ThetragiceventsoftheGrenfellTowerfireinLondoninJune2017identifiedtheuseofaluminiumcompositepanels(ACPs)inbuildingcladdingmaterial,asacontributingfactorintherapidspreadoffirethroughoutthebuilding.Followingthisdisaster,AMPCapitalinitiatedareviewtoidentifyanypossibleACPmaterialsinitsrealestateportfolio.PropertieswithsuspectedACPareundergoingfurtherreviewbystructuralandfireengineeringconsultantsforclarificationofmanufacturer,constructionmaterialandcondition,includinglaboratorytestingwhererequired.IfACPmaterialisconfirmed,engineerswillconductariskassessmenttoinformthemitigationstrategy.

Community infrastructureAMPCapitalalsomanagestheAMPCapitalCommunityInfrastructureFund(CommIF),whichinvestsinsocialinfrastructureassetsacrosshealthcare,education,justice,defence,communityhousing,transport,waterandrecreationalfacilities.

In2017,AMPCapitalincreaseditsstakeintheVictorianDesalinationProject(VDP),thelargestdesalinationplantintheSouthernHemisphere,onbehalfofitsCommIFinvestors.Throughouttheyear,AMPCapitalalsoworkedtowardsacquiringa21%stakeintheVictorianComprehensiveCancerCentre(VCCC)fromPartnersGrouponbehalfofinvestorsinitsCommIF.Thedealreachedfinancialcloseon3January2018.

LocatedinMelbourne’sParkvillebiomedicalprecinct,theVCCCoperatesasapublicprivatepartnershipwiththeVictorianstategovernmentandhousesthePeterMacCallumCancerCentre,with160inpatientbeds,110daybedsandeightoperatingtheatres.Itcanhostupto1,200researchersandofferseducationandtrainingfacilities.

MoreinformationonourESGphilosophy,investmentinsights,corporategovernancereports,proxyvotingdisclosuresandthoughtleadershiponresponsibleinvestingisavailableatampcapital.com.au/esg

Our community

2018 goals…– Continue to assess ESG risks to enhance our investment

decision-making and broaden our understanding of their impacts– Actively monitor ESG integration across the business

AMP 2017 towards sustainability report30

However,throughAMPCapital’sRealEstateAssetManagementactivityinAustraliaandNewZealand,weworkwithabroaderrangeofsuppliersthatfacilitateoperationsinourshoppingcentres,officeandindustriallocations.Wealsoworkwithabroaderrangeofsuppliersthroughourtenantedoperations.

AMPiscommittedtotheresponsiblesourcingofgoodsandservices,creatingvalueforourcustomers,employees,andthecommunity.Whenengagingwithoursuppliers,wehaverobustgovernancestructuresinplacethatconsidersustainabilityrisksandopportunitiesinoursupplychain.Thisincludescommittingto:– actingethicallyandwithintegrity

inallourbusinessrelationships– observingInternationalLabour

Organisations’principlesandcommittingtoensuringthereisnomodernslaveryorhumantraffickinginoursupplychains

– providingrespectfulandsafeworkplacesfreefromdiscrimination

– consideringandmonitoringtheenvironmentalimpactofgoodsandservicesusedbyAMP

– consideringsupplierdiversityandcommunityengagement.

In2017,AMPmadestepstoincreaseengagementwithsuppliersonScope3emissionsrelatedtoAMPoperations(seeAMP’sEnvironmentalperformancedataonpage27).

Inaddition,AMPbecameamemberoftheSocialTradersnetworktoimproveengagementwithsocialenterprisesinoursupplychains.Thisresultedinasuccessfuldirectcontracttoasocialenterprise,Jigsaw,employing20peoplewithadisability.AMPCapitalalsoreleaseditsfirstAnti-Slavery and Human Trafficking Statement,tocomplywithitsobligationsundertheUKModernSlaveryAct2015.

FollowingtheapproachtakenintheUK,theAustralianFederalGovernmentisintheprocessofpassingaModernSlaveryAct,whichwillaskcompaniestotrackandmonitortheirsupplychains.AMPwillsupportthisinitiativetobringaboutmoreethicalandsustainablebusinesspracticesinsupplychainmanagement.

TheissueofhumanrightsandsupplychainsalsoremainsakeythemeforAMPCapital’songoingengagementwithinvesteecompanies.Througharangeofinvestorcollaborativeinitiatives,AMPCapitalplaysanactiveroleinsharingknowledgeoninternationalhumanrightsdevelopments,understandingrisksandopportunitiesacrosssectors,integratinghumanrightsconsiderationsintoinvestmentdecisions.

10. Sustainable supply chain management

Our community

AMP’s supply chains primarily consist of regulated outsourced services and relationships with other regulated financial institutions in Australia and overseas.

AMP 2017 towards sustainability report31

Inresponsetothis,AMPsetupanindependentphilanthropicfoundationtoinvestinthecommunity–theAMPFoundation.ThisisthemainvehiclethroughwhichAMPinvestsinthecommunity.

ThephilanthropicarmofAMPhasbeenoperatingfor25yearsandduringthistimehasdonatedmorethan$91milliontothecommunity.Itworkstowardsabettertomorrowforeveryone–especiallythosefacingchallengesaccessingeducationandemploymentopportunities.ItalsosupportsAMPemployeesandAMPfinancialadviserstosharetheirtime,skillsandresourceswiththoseinneed.

How the AMP Foundation is fundedTheAMPFoundationhasacapitalbasethatAMPhascontributedtothroughdonationsofmoneyandsharessince1992.WhenAMPdemutualisedin1998,itdonatedmoneyandsharestotheAMPFoundation.Thecapitalbasenowstandsat$145million,makingitoneofthelargestcorporatefoundationsinAustralia.TheinvestmentincomefromthecapitalbaseisusedtosupportcommunityinitiativesandpayfortheAMPFoundation’srunningcosts.

TheAMPFoundationinvestsupto3%ofitscapitalinsocialbenefitfinancialinstrumentsandsocialenterprisesthatachievebothacommercialinvestmentreturnanddemonstratedsocialoutcomes.ItcurrentlyinvestsintheNewpinSocialBenefitBondandtheBenevolentSocietySocialBenefitBond,whicharebothhelpingtorestorechildrenwhomightbeinout-of-home-care,totheirparents,orstopthementeringthecaresystem.In2017weinvestedinSVA’sDiversifiedImpactFund–adiversifiedportfolioofdebt,equityandsocialimpactbondimpactinvestments.

A strategic approach to philanthropy TheAMPFoundationworksstrategicallytobringaboutpositivechangeinthecommunityby:– investingintheinfrastructureof

non-profitssotheyareequippedtooperatemoreeffectively

– formingmulti-yearpartnershipswithnon-profits,withsomepartnershipslastingmorethan15years

– facilitatingmentoringandskilledvolunteeringsupport

– buildingknowledgethroughresearch,leadershipforumsandworkingwithexpertstostrengthenthenon-profitsector

– focusingonsystemicissuesandconcentratingfundsoncomprehensiveprograms

– socialimpactinvesting.

Our community

11. Community investment Helping solve societal issues and actively contributing to the community are part of what is expected of a large corporate organisation.

180 non-profits were supported by the AMP Foundation and AMP employees through partnership funding, donations, fundraising and volunteering

$1m raised through the AMP Big Zipper for 15 community partners

$5.7m in funds were distributed to the community by the AMP Foundation

AMP 2017 towards sustainability report32

Partner Activity Our 2017 funding

BrotherhoodofStLaurence

RunsSteppingStones,amicro-businesssupportandmentoringprogramformigrantandrefugeewomeninMelbourne.

$100,000

ClontarfFoundation UsesfootballtoengageAboriginalstudentswitheducationandemployment.Toplayfootball,theboysmustattendschoolregularlyandbehavewell.

$340,000

CREATEFoundation Advocatesforchildrenincareandworkswithgovernmentstoimprovetheircareexperience.Italsoprovideschildrenincarewithinformationontheirrights,issuesandlifeskills.

$150,000

FirstAustraliansCapital(FAC)

Thisnon-profitestablishedbyandforIndigenousAustralianspeopleenablesAboriginalandTorresStraitIslanderstogrowbusinesses.

$250,000

Ganbina HelpsyoungAboriginalpeoplethroughschool-to-worktransitionprogramstoensuretheyreceivetheeducationandtrainingneededtoreachtheirpotential.

$50,000

GlobalSisters Supportsdisadvantagedwomentocreateandrunsuccessfulbusinessesbyprovidingafullsolutiontobusinessstart-upanddevelopment.

$250,000

SettlementServicesInternational

SupportsthesettlementofrefugeesinAustralia,includinghelpingthemsecuresustainableemployment.

$500,000

STREAT RunshospitalitysocialenterprisesinMelbournethatprovidetraining,workexperienceandjobplacementsforat-riskyouth,aswellasmentalhealth,drugandalcoholsupport.

$200,000

SocialVenturesAustralia

Investsinsocialchangebyincreasingtheimpactandsustainabilityofthesocialsector.Itfundshigh-potentialorganisationsthatfostersolutionstocommunityissues.

$250,000

TheConversation Anonlinenewsnetworkthatsourcesarticlesfromacademics,deliveringtheminplainEnglish.Ourfundinghelpsshinealightonemploymentobstaclesandsolutions.

$125,000

TheFundingNetwork Organiseseffectivelivecrowdfundingeventsforsmall,innovativenon-profitsandhelpstheseorganisationsbuildtheircapacity.

$150,000

TheGraham(Polly)FarmerFoundation

ProvidesAboriginalstudentswithanafter-schoolstudyfacilityandindustrysupport,aswellastutorialandvocationaleducationalassistance.

$100,000

TheSalvationArmy OperatestheAMP614YouthBusinMelbourne.Itprovidesemergencyaidandsupportforhomelessandmarginalisedyouth,andconnectsthemtoservices.

$50,000

TheStrokeAssociationofVictoria

Runsaprogramthatidentifiesstrokepatientswhoarebestplacedtomakeagoodrecoveryandhelpsthemkeeptheirjobortransitiontoamoresuitableone.

$200,000

VanguardLaundryServices

ThisToowoombasocialenterprisecreatesjobsandcareerpathwaysforlong-termunemployedpeoplewithalivedexperienceofmentalillness.

$345,000

WesleyMission WorkswithyoungpeoplebeforetheyleavefostercaretosetcareergoalsandtransitionintoemploymentthroughitsTakeChargeofYourLifeprogram.

$220,000

Our community

Our community partnersOurcommunitypartnersrunin-depthprogramsthathelpaddresssocio-economicdisadvantagebyimprovingeducationalandemploymentoutcomesformarginalisedpeople.Wealsosupportorganisationsthatbuildthecapacityofthenon-profitsector.

Ourfundingcaninclude‘growthcapital’tohelpanorganisationdevelop,‘coreinfrastructure’tofundanoperationalrole,programfundingoracombinationofallthree.Wherepossible,theAMPFoundationfacilitatesmentoring,probono,volunteeringandfundraisingforitscommunitypartners.In2017,ourcommunitypartnerswere:

AMP 2017 towards sustainability report33

Our community

AMP’s Tomorrow Fund TheAMPFoundationrunsAMP’sTomorrowFund–a$1millionannualgrantsprogramforindividualsfromallages,interestsandabilitieswhoseideasandworkbenefitsAustralia.Thegrantsavailablerangefrom$5,000upto$100,000.

In2017,ourAMPTomorrowFundprogramawardedgrantsto45Australiansreflectingthediversitythatexistsinourcommunity.Thewinnersareworkingtowardsgoalsasvariedasprovidingarefugeforwomenescapingdomesticviolence,competingattheCommonwealthGames,designinganinteractiveonlinesystemtotraindisabilityandagedcaresupportworkers,recordingalbumsandconductingvitalmedicalresearch.Moreinformationonour2017AMPTomorrowMakersisavailableatampstomorrowfund.com.au

AMP Foundation’s Community ProgramThroughitsCommunityProgram,theAMPFoundationencouragesandsupportsemployeestodonatetheirtimeandresourcestoarangeofcharitiesthatmakeapositiveimpactonthecommunity.Thisprogramismulti-facetedandcontainsthefollowingcomponents:– Volunteering:AMPemployeescan

volunteerasindividualsorteamswithanumberofnon-profits,includingthroughskilledvolunteering.TheAMPFoundationprovidesfundingtonon-profitstocoveranyassociatedcosts.

– Mentoring:OurseniorleaderscanmentortheCEOsofnon-profits.Employeesarealsoabletomentorschoolstudentsandhelpthemwithcareerchoices.

– Fundraising and payroll giving:TheAMPFoundationmatchesemployeefundraising,anddonationsthroughpayrollgivingtomorethan100charities.In2017theAMPFoundationorganisedanAustralian-firstcharityziplineeventbetweenthetwoAMPbuildingsatSydney’sCircularQuay,raisingmorethan$1millionfor15communitypartners.

– Unsung Heroes:CharitieswhereAMPemployeesvolunteerformorethan80hoursayearorserveontheboard,receiveadonationtosupporttheirwork.

AMP Cancer Council Pro Bono ProgramTheAMPCancerCouncilProBonoProgramenablesAMPfinancialadviserstosharetheirexpertisewithpeopleaffectedbycanceratnocost.TheAMPFoundationfundstherunningofthisprogram,whichenablespeopleaffectedbycancertoreceivefreeguidanceonissuessuchasaccessingCentrelinkbenefits,applyingforearlyaccesstosuperannuationandinsurancebenefits,budgetingandplanningforthefinancialfutureoftheirfamily.Theprogramoperatesacrossthenationand,in2017,itsupported667familieswithfreeadvice.

Other AMP giving AMP Capital Shopping CentresAMPCapitalShoppingCentresinAustraliaandNewZealandcoordinatearangeofactivitiestosupportcharitiesofimportancetothelocalcommunity.In2017,theyformedpartnershipswithlocalnon-profitorganisations,providingfundraising,volunteeringandpromotionalsupport.CharitiesincludedOmanuBeachSurfLifesaving,BellyfulEastAuckland,AnimalWelfareLeague,KidsFund,TheSalvationArmy,EdmundRiceCamps,FiFoFamiliesandOzHarvest.

International givingInNewZealand,AMPprovidedtotalfundingof$200,000to24NewZealanderstopursuetheirdreamsthroughtheAMPScholarshipsprogram.AMPalsoworkedwithYouthtownandTheCommissionforFinancialCapabilitytohelpyoungNewZealandersunderstandfinancialbasicsthroughaseriesofworkshopsandinitiatives.ApartnershipwasalsoannouncedwithKeyToLifetohelpreducethehighratesofsuicideinNewZealand.

AMPCapitalsupportedthecharitableeffortsofemployeesworkinginsomeofitsinternationaloffices.ItprovidedfundingtoTADA,achildren’scharityfortheperformingarts(NewYorkoffice),CancerResearchUKthroughacharityfunrun(London)andCommunityChest(HongKong).

Moreinformationhowweinvestinthecommunityisavailableatamp.com.au/ampfoundation

Community investment breakdown

AMPFoundationdirectgiving $5,719,982

OtherAMPdirectgiving $252,163

Employeegivingandfundraising1 $1,184,723

Employeevolunteeringcontribution $1,908,062

ValueofserviceprovidedbyAMPfinancialadvisers2throughtheAMPCancerCouncilProBonoProgram

$667,000

Inkindsupport3 $655,262

1 Includesemployeefundraisingandpayrollgiving.2 Basedon$1,000perprobonocase.3 Includesdonateduseofmeetingrooms,freeordiscountedrent,AMPCapital

shoppingcentrespacedonatedtocommunitygroups.

2018 goals– Continue to build the scope

and diversity of the AMP Tomorrow Fund

– Support our community partners to build their capacity

– Facilitate skilled volunteering to support our community partners

AMP 2017 towards sustainability report34

Contact usphone +612 9257 5000web amp.com.au

facebook.com/AMPaustralia

@AMP_AU or @ampfoundation

linkedin.com/company/amp