bank mecu - responsible banking

Commitment 2009/2011

Progress

Comments

Ethics and governance  

Continue to improve performance in the economic, social and environment aspects of mecu's business.

bankmecu operates ethically, contributing to both social and financial sustainability outcomes. This commitment is addressed throughout bankmecu’s report.

Implement an Environmental Management System (EMS) across mecu.

bankmecu’s EMS has been finalised and is available on the staff intranet.

Develop a sustainable supply chain management system as an outcome of implementing an EMS.

A sustainable supply chain management system was developed as an outcome of bankmecu’s EMS. Relevant policy and procedures are available on the staff intranet.

Employees  

Develop an employee diversity policy.

bankmecu has developed a Reconciliation Action Plan (RAP) in part to support employee diversity. Diversity was updated in the Board Human Resource Management Policy in February 2011.

Develop a recognition program for those staff who make a significant contribution to sustainability in mecu's workplace.

bankmecu developed a staff recognition program through Footprints, with the inaugural ‘Sustainability Superstars’ competition taking place in May 2010.  Nominations for 2011 occurred in April. Eight staff members have been selected to participate in the second Landbank trip in September 2011. This program will continue on an annual basis.

Social impact  

Renew mecu's Community Partnership Program to further address issues facing our communities

bankmecu’s Community Investment Program was reviewed in January 2010 and was again reviewed in January 2011. 

In addition, to ensure bankmecu’s Community Investment Program is appropriately implemented and managed bankmecu has sought advice from PhilanthropyAustralia. 

bankmecu will continue to work with Philanthropy Australia to ensure the Community Investment Program is designed in a way which best suits the needs of bankmecu customer-owners.

Target up to 4% of mecu's budgeted post tax profits to sponsoring community partnerships.

bankmecu achieved a 4.15% community investment spend.

Continue to develop banking relationships with the not-for-profit and community-housing sectors with packages that specifically cater for their needs.

bankmecu continues to develop business in this sector. Customers from the community sector now represent some of bankmecu's largest investors. The value of this sector to bankmecu now exceeds $350m. The National Community Banking Manager has been set the task of working with Personal Banking to expand the product range offered to community sector customers, reduce the cost of funds sourced from the sector and to develop new business among the employees of community sector organisations which are bankmecu customers. 

The opportunities to develop new markets in the sector are also being explored including a review of the aged and disability sectors.

Environmental impact  

Optimise opportunities to move from paper-based to electronic communications where feasible, even in our dealings with members.

e-statements were implemented and offered to customers in June 2009. Note: customers who do not log into internet banking for a 90 day period of time are de-registered from receiving an e-statement. A number of new e-communications have been developed including e-direct marketing, web-based newsletters and on-line deposit product applications will shortly be launched. Other forms of appropriate on-line social media are also being considered.

Further develop the goGreen product range to incorporate environmental and social features.

The following new products are in development:

• Regular income account for people aged 55 +.   

• Car loan with a feature that encourages customers to purchase the safest cars available and which encourages young drivers to develop their driving skills.

• Home loan product with a price incentive to build more energy efficient homes when the size of the house exceeds 280m2.

The eligibility criteria for a goGreen home loan increased from 6 stars to 7 stars following the Government’s decision to increase the mandatory minimum rating from 5 stars to 6 stars.

Implement mecu's carbon management plan.

bankmecu’s carbon management plan is incorporated into bankmecu’s EMS Environmental Management Action Plan.

Leadership and Partnerships  

Attain a ‘Responsible Investment' accreditation for the purpose of developing SRI markets for the credit union sector.

bankmecu has become a signatory to the UN Global Compact and UN Principles for Responsible Investment. Corporate Goal # 4 has been updated to ensure a stronger responsible banking performance orientation. These outcomes replaces the need to achieve RIAA Responsible Investment accreditation. Focus group research has been conducted to identify the level of understanding amongst consumers regarding how ADIs invest their cash savings.

Develop a policy on lobbying and advocacy.

Decision taken for lobbying and advocacy to be conducted through Abacus - the mutual industry representative body. mecu does supports some non-Government organisations which do have a lobbying role.

Champion sustainability practices in the credit union sector.

mecu continues to champion sustainability through various forums.

Action Item

Progress

bankmecu will maintain Human Resource policies covering equal opportunity, workplace behaviour, racial and religious tolerance, affirmative action, anti-discrimination, grievance and acceptable conduct.

Maintained.

bankmecu will abide by all legislation relative to human rights inAustralia.

Management are satisfied bankmecu has complied.

Through its participation in Credit Union Foundation Australia (CUFA), bankmecu will investigate and identify any opportunities to support protection of human rights.

bankmecu has become a member of and is attending meetings of the UNGC Human Rights Working Group for Business. Through this membership bankmecushall gain a better understanding of how Human Resource (HR) issues are relevant to the business and what appropriate responses can be implemented. 

The GM Development has been appointed a Director of CUFA. CUFA has developed a set of policies which aim to ensure the protection of human rights.

bankmecu will continue to maintain policies that uphold freedom of association, and employee rights to choose collective bargaining. 

Maintained.

bankmecu will maintain Human Resource policies to ensure equal opportunity, respectful workplace behaviour, racial and religious tolerance, anti-discrimination, grievance and acceptable conduct.

Maintained.

Through its participation in CUFA, bankmecu will investigate and identify any opportunities to uphold constructive Labour Standards. 

GM Development has been appointed a Director of CUFA and will ensure that CUFA funded projects (to which bankmecu contributes funding) uphold constructive Labour Standards.

bankmecu will implement an Environmental Management System (EMS) which will see the Company identify environmental aspects with a negative environmental impact. The EMS will provide the means for driving positive environmental outcomes and continual improvement across bankmecu.

EMS developed and implemented.

bankmecu will maintain a zero tolerance culture for corrupt behaviour including fraud.

bankmecu has in place policies, procedures and controls to maintain a zero tolerance culture for corrupt behaviour. Ongoing. 

bankmecu will continue to comply with all relevant legislation and codes that are in place to protect members’ money and personal information.

bankmecu has in place policies, procedures and controls to ensure robust compliance with all legislation and codes. Ongoing. 

Through its participation in the Abacus’ National Fraud Prevention Network, bankmecu will strive to prevent corrupt activity across the mutual ADI sector.

bankmecu has active representation in Abacus' Fraud Prevention Network. Ongoing.

Through its participation in CUFA, bankmecu will investigate and identify any additional opportunities to address the UN GC principle area of anti-corruption.

GM Development is on the Board of CUFA which monitors CUFA's operations.

bankmecu will produce an Annual Report that is transparent and clearly outlines defined accountabilities and requirements under the UN Global Compact.

 Included in planning for the 2011 Annual Report.

Action Item

Progress

bankmecu will update its investment procedures to provide for compliance with bankmecu’s Responsible Investment & Lending Policy.

To be completed.

bankmecu will update its assessment procedures for credit applications from all community sector organisations to ensure compliance with bankmecu’s Responsible Investment & Lending Policy.

To be completed.

bankmecu will write to Standard & Poor’s requesting them to detail how ESG considerations are factored into the credit rating assessment process.

ESG considerations were discussed at mecu’s 2011 credit review. This item is closed.

bankmecu will lobby with the UNEP FI seeking its support to encourage all international rating agencies to factor ESG considerations into their credit rating assessments.

To be completed.

bankmecu will formally engage with MyState Financial, Data Action and Cuscal and encourage any other companies in which the credit union invests members’ funds to promote ESG practices.

 To be completed.

bankmecu will encourage all ADIs in which it invests its members' funds or in which it makes capital investments to produce a Sustainability Report preferably using the GRI standard.

To be completed.

bankmecu will incorporate ESG factors into Outsourcing Policy and all requests for proposals.

Policy review undertaken at March 2011 meeting of the Sustainable Development Committee. 

bankmecu will encourage Abacus to support ESG regulatory developments that are relevant to the banking sector.

Ongoing as required. 

bankmecu will encourage Outlook Financial Solutions to meet the needs of its customers who prefer SRI investments.

To be completed.

bankmecu will liaise with the Mutuals Code Compliance Committee where it believes the Mutuals Banking Code of Practice can be enhanced to better address ESG issues.

To be completed.

bankmecu will be an active member of the Responsible Investment Association of Australia, UNEP FI and UN Global Compact.

Ongoing. 

bankmecu will develop a network of mutually owned ADIs committed to implementing ESG practices into their businesses.

The network has been developed and held its first meeting in June 2011.

bankmecu will include details in its Sustainability Report as to how its commitment to the UNPRI is implemented.

Included in planning for the 2011 Annual Report. 

bankmecu will ensure its Sustainability Report discloses how ESG considerations are factored into its lending and other investment decisions.

Included in planning for the 2011 Annual Report. 

bankmecu will include its active ownership activity into the Sustainability Report.

bankmecu will include its active ownership activity into the Sustainability Report.

RELATIONSHIPS

Action

Measurable Target

Comments

Focus area: Engagement

Establish Working Group to monitor RAP progress and consult with Aboriginal and Torres Strait Islander stakeholders regularly.

• RAP Working Group has met quarterly and measured progress against RAP actions.

• RAP Working Group has consulted with Aboriginal and Torres Strait Islanders stakeholders at least twice for feedback on RAP actions and progress.

Develop a database of Aboriginal and Torres Strait Islander professional and community contacts / organisations to consult with in the development of programs relevant to Aboriginal and Torres Strait Islander people.

• Research project to identify contacts completed.

• Database developed and made available to all staff.

Ongoing. Established January 2011.

Develop an Aboriginal and Torres Strait Islander RAP engagement/communications strategy.

• Aboriginal and Torres Strait Islander engagement / communications strategy developed.

Communications of RAP launch Completed. The Annual Report will provide stakeholders with details on actions and performance. A formal communications strategy is yet to be developed.

RESPECT

Action

Measurable Target

Comments

Focus area: Awareness

Develop bankmecu’s staff engagement survey to include an audit of staff engagement with cultural awareness.

• Questions included in staff engagement survey with results to inform cultural development plans and relayed to cultural awareness training providers.

Questions were included in the staff engagement survey. The result indicated  that the majority of respondents 75% (2009/10:79%) did not believe they have undertaken specific cultural awareness training and 83% (2009/10: 78%) believe it is important to their personal and professional development. Diversity based training continues to be an annual training requirement for all staff and specific cultural awareness training is to be included as a core requirement in staff's annual training plans

Incorporate cultural awareness into bankmecu’s Sustainability Training program, to increase awareness, knowledge and respect for Aboriginal and Torres Strait Islander peoples, histories and culture.

• Cultural awareness incorporated into bankmecu’s on-line Sustainability Training program.

bankmecu’s online staff sustainability and brand training is currently being rolled out to Victorian,Queensland, ACT and Adelaide Service Centres, 15 sites are now fully complete.

Encourage staff participation in cultural events / awareness initiatives to build relationships and understanding.

• Staff participation in at least one Aboriginal and Torres Strait Islander cultural event / awareness initiative.

The Reconciliation Australia (RA) Share our Pride web portal was utilised to send RA fact sheets during a National Reconciliation Week awareness campaign across bankmecu. Over 50 staff participated in an end of week Quiz.

Three staff members from the RAP Working Group attended an Indigenous Walk in centralMelbourne. Further staff members will be encouraged to participate in the future.

Circulate information on ‘hot topics’ to staff on specific reconciliation issues.

• Minimum of four topics to be covered per annum.

Four topics were covered in the fact sheets during the National Reconciliation Week awareness campaign mentioned above.

Focus area: Protocols

Protocols developed for acknowledgement of country / Traditional Custodians and Welcome to Country at bankmecu owned and occupied properties.

• Protocols developed and made available to all staff for acknowledgement of country / Traditional Custodians and Welcome to Country at bankmecu owned and occupied properties.

The RAP Working group utilised the kit on Welcome to Country provided by Reconciliation Australia. Protocols are under Senior Management review.

OPPORTUNITIES

Action

Measurable Target

Comments

Focus area: Employment

Conduct an audit of Aboriginal and Torres Strait Islander recruitment and retention strategies, in collaboration with Indigenous stakeholders and employment professionals, to identify best practice for recruiting Aboriginal and Torres Strait Islander employees.

• Audit completed.
• Aboriginal and Torres Strait Islander recruitment and retention policies established.

Contact has been made and discussions are continuing with several organisations that could potentially provide the support bankmecu needs for Aboriginal Trainees:

• Gippsland TAFE
• Education Centre Gippsland (ECG); 
• MEGT (mecu’s current traineeship partner)
• BendigoIndigenous Employment Services
• Victorian Aboriginal Education Association (VAEAI).

Policies have been reviewed to ensure that they adequately considered Aboriginal andTorres StraitIslandrecruitment and retention.

Identify opportunities for work placement opportunities through bankmecu’s traineeship scheme.

• Opportunities identified.
• At least one Aboriginal and Torres Strait Islander trainees employed / commenced through trainee scheme.

A recruitment process took place during April/May to identify potential Aboriginal trainees for inclusion in bankmecu’s existing traineeship program. Two Aboriginal trainees commenced employment in May.

bankmecu continues to investigate the feasibility of introducing a school based trainee program.

Focus area: Financial literacy

Support the CUFA Indigenous Financial Literacy Initiative, including in-kind support and monetary contributions.

• Monetary contributions made.

Discussions are continuing with CUFA on the prospect of the CU sector supporting an Indigenous Literacy domestic program. Stakeholder engagement has been conducted and supports this work however an outcome has not yet been achieved.

Focus area: Financial products and services

Strengthen bankmecu’s capacity to market products effectively to Aboriginal and Torres Strait Islander customers (individuals, organisations and communities).

• Aboriginal and Torres Strait Islander customer base surveyed on customer satisfaction.

Ongoing.

bankmecu has approved finance for its first loan through the Indigenous Business Australia Housing Loan Scheme. Indigenous Business Australia (IBA) offers concessional housing loans to enable Indigenous Australians to purchase their first affordable family home.

Aboriginal and Torres Strait Islander customer base surveyed on customer satisfaction under consideration.

Focus area: Community investment

Support Aboriginal and Torres Strait Islander communities consistent with bankmecu’s community investment program.

• Existing community investment opportunities identified.
• Additional opportunities identified for funding through bankmecu’s Community Investment Program, in consultation with Indigenous stakeholder groups.
• 2-3% of annual funds allocated for community investment to be spent on Aboriginal and Torres Strait Islander programs.

bankmecu has invested $25,000 in the School Aid Children’s Indigenous Literacy program. A presentation was made at the RAP launch.

Focus area: Influence

Encourage existing contractors/suppliers to develop a RAP.

• 100% of all contractors/suppliers approached about creating a RAP.

 See below.

All bankmecu tender documents to encourage potential contractors to commit to develop a RAP.

• 100% of all bankmecu tender documents to encourage applicants and potential contractors to develop RAPs.

An Environmental Management System Supplier Questionnaire form has been developed. Amongst other key sustainability considerations, the questionnaire includes a section covering Reconciliation Australia’s RAP process.  The supplier questionnaire will be utilised where tenders are required.

Promote the work of bankmecu’s RAP, together with other responsible banking initiatives, to other credit unions.

• Engagement activity undertaken. For example, promotion of bankmecu’s RAP at industry forums and meetings.

bankmecu invited Paul Paulson, former Reconciliation Australia employee, to talk at the Credit Union Sustainable Development Network forum held on 28 June.

Encourage customer organisations and organisations bankmecu invests in to develop RAPs.

• Stakeholder engagement with bankmecu member organisations regarding the benefits of developing a RAP.

Ongoing.

Identify the RAP activities of CUFA and other credit unions in Australiathat bankmecu can collaborate with.

•  At least four activities per year undertaken with CUFA or another credit union.

 Ongoing.