AVBOB Integrated Annual Report 2018

SUSTAINABILITY REPORT We believe that as a mutual, AVBOB provides financial security and prosperity to communities and individuals. We have an inherent responsibility to ensure that our actions and operations are acceptable to stakeholders and the environment. As a mutual, it is essential to ensure that the manner in which we contribute towards the sustainability of our world will secure the future of our business. Sustainability is about how we manage the relationship between our business, society and the environment, and how we minimise negative effects and risks for all stakeholders now and into the future. Our role as a sustainable business has several components. As a business, we must comply with our fundamental legal and economic responsibilities in order to continue to participate in the market. As a mutual, our primary objective is to protect the financial wellbeing of our policyholders both in the event of a current misfortune and in terms of their long-term needs. The Board of Directors (Board) accepts that ultimate responsibility for sustainable development rests with them. Through the Group’s governance structures, this responsibility has been delegated to Board Committees and management. Our approach towards sustainability acknowledges the extent of the work that needs to be done in this area. We recognise that we continually need to enhance our responsible business practices to align them with our overall business priorities. This report describes the way in which we contribute to, and invest in, the communities we serve. It also shows our progress in building relationships with stakeholders, improving our workplace environment, as well as minimising our environmental impact. Stakeholder engagement The Group recognises that it operates in an environment where political, economic, social, technological, environmental and legal factors have a direct and indirect impact on business. Stakeholder engagement is an important aspect of business, especially with regard to corporate citizenship and reputation both of which are critical components in the long-term success of the Group. We are therefore committed to a policy of effective communication and engagement with our stakeholders on issues of mutual interest and are mindful of our statutory and regulatory obligations for the dissemination of information. Stakeholder engagement is crucial to our corporate accountability and we have identified key stakeholder groups who may have an effect on, or be affected by, our business strategy. 36