Suncorp Group Limited

SUN

AU000000SUN6

Property & Casualty Insurance

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Suncorp : FY20 Responsible Business Report

August 20, 2020 at 06:29 pm EDT

Responsible Business

Report 2019-20

Building futures and protecting what matters

Suncorp Group Limited

ABN 66 145 290 124

Contents

OUR BUSINESS
Suncorp at a glance	01

Highlights	02

2020 performance against targets	03

Message from our Chairman	04

OUR STAKEHOLDERS
Stakeholder engagement	06

Materiality	07

OUR RESPONSIBILITY
Corporate Responsibility Principles	12

Corporate responsibility governance	13

Commitments and frameworks	14

Trust and transparency	15

Responsible financial services	21

Sustainable growth	26

Resilient people and communities	30

OUR PERFORMANCE
Five-year performance summary	36

Contact information	42

COVER IMAGE: Suncorp assessors at Batemans Bay,

New South Wales, following the bushfires in January 2020.

About this Report

The 2019-20 Suncorp Responsible Business Report (Report) details our approach, progress and future commitments to building a resilient and sustainable organisation that values customer, shareholder and stakeholder outcomes.

We publish this Report on 21 August 2020 as part of our Annual Report suite of documents. It covers the period 1 July 2019 to

30 June 2020, and where appropriate, references events that have occurred since the end of the financial reporting period, but before the publication of this Report.

This year we have built upon our comprehensive assessment of material environmental, social and governance topics conducted in 2019 to reflect topics that have emerged and increased in priority for Suncorp to address during the Reporting period.

Our approach to non-financial disclosures continues to evolve and for the first time we have reported our performance against targets published in our 2018-19 Responsible Business Report.

Significant organisational changes since last year's report include the divestment of Suncorp's Capital S.M.A.R.T and ACM Parts businesses. Suncorp also welcomed a new Chief Executive Officer for the Group. On 1 July 2020, Suncorp announced a new operating model and leadership structure. Details can be found at suncorpgroup.com.au/news

Global Reporting Initiative

The material in this Report has been developed in accordance with the Global Reporting Initiative (GRI) Standards: Core option. For a full list of disclosures referenced in this Report, please refer to the GRI Content Index available at suncorpgroup.com.au/corporate- responsibility/reports

Our other Reports

Find the 2019-20 Annual Report suite of documents online at suncorpgroup.com.au/investors/reports

Find Suncorp's Tax Transparency Report, Reconciliation Action Plan, Financial Inclusion Action Plan, Climate Change Action Plan, and Environmental Performance Plan online at suncorpgroup.com.au/ corporate-responsibility/reports

BUSINESS OUR

OUR

Corporate Governance

Statement2019-20

what matters

Building futures and protecting

STAKEHOLDERS

Annual Report

Corporate

Suncorp Climate-

Governance

Related Disclosures

2019-20

Statement 2019-20

(TCFD) 2019-20

Suncorp Proxy

Voting Summary

2019-20

matters

Building futures and protecting what

OUR

Suncorp Tax

Proxy Voting

Transparency Report

Summary 2019-20

2018-19

RESPONSIBILITY

Financial Inclusion Action

Climate Change Action

Plan 2018-20

Reflect Reconciliation

Environmental

PERFORMANCE OUR

Action Plan 2018-20

Performance Plan 2020-22

Suncorp 2019-20 Responsible Business Report

Suncorp at a glance

Suncorp Group Limited offers insurance, banking and wealth products and services through some of Australia's and New Zealand's most recognised financial brands.

Our Purpose: building futures and protecting what matters

GROUP SNAPSHOT

Suncorp Group's	$96 billion
heritage dates
in group assets
back to 1902

3.8 million active	More than
digital users	13,500 employees

How Suncorp contributes to the economy

$13.8bn1

Revenue 2019-20

$8.7bn2	Claims paid to
customers

$1.8bn	Employee salaries,
superannuation
and other benefits

$2.0bn3 Suppliers and other fees paid

$0.9bn	Dividends paid
during 2019-20

$0.3bn	Income tax paid

$0.1bn4	Reinvested to
fund growth

1. Net of interest expense 2. Insurance claims paid to customers 3. All operating expenses that are not salaries or other employee benefits 4. Change in retained profits not distributed as dividends

BUSINESS OUR

Photographed February 2019

Suncorp 2019-20 Responsible Business Report

Highlights

	Total dividends to		Net profit after tax		Excess Common
	ordinary shareholders			Equity Tier 1 capital
Our financial	cents	$	913m	$	823m
performance	36per share

		Claims paid	High performer		Investment in
		to customers	retention		local communities
		8.7bn	93		m
Our customers,	$		$	10.3
	%
people and
society

		Reduction in	Acceptance of
		greenhouse gas
	Invoices paid	Supplier Code
	emissions
	within 30 days1	of Practice3
	year-on-year2
	98	7.2	100
Our value chain	%	%	%
and environment

BUSINESS OUR

1. Complaints resolved within 30 days from first date received, managed by Internal Customer Relations team. Exceeds 45-dayASIC requirement 2. Based on Scope 1 & Scope 2 emissions for Suncorp Australia and New Zealand 3. Material/strategic suppliers with spend >$500K in the reporting period. Excludes New Zealand and Suncorp Insurance Ventures.

02	Suncorp 2019-20 Responsible Business Report

2020 performance against targets

			2019-20	PROGRESS
SUNCORP'S CORPORATE RESPONSIBILITY PRINCIPLES	METRIC	2019-20 TARGET1	PERFORMANCE	TO TARGET


TRUST AND TRANSPARENCY
We are committed to building trust and doing	Code of Conduct training completion rate	98%	99%
the right thing. We are open and transparent in

our dealings with our stakeholders.

RESPONSIBLE FINANCIAL SERVICES	Level 2 complaints resolved within	Increase proportion year-on-year	71%
30 days (Australia)2
We put our customers at the heart of everything


we do and help them make good choices. We		Improve from 2018-19
provide customers with access to affordable	Consumer Net Promoter Score (Australia)	+5.2
(Score of +5.0)
financial services that meet their needs.


SUSTAINABLE GROWTH	Scope 1 and Scope 2 greenhouse gas	51% absolute reduction by 20303	7.2%
emissions

We seek to innovate and optimise economic,	Invoices paid within 30 days4
95%	98%
social and environmental outcomes throughout	Funds invested in social and low-carbon

our business and value chain.	5% of total shareholders' funds	6.7%
	impact investments5


	Lost-time injury frequency rate	At or below Finance Industry	1.2
	Group Average6
RESILIENT PEOPLE AND COMMUNITIES
Women in leadership	50%	51%

We respect human rights and invest in the

wellbeing and resilience of our people and	Women in senior leadership	45%	44%

communities. We are there for our people and
Women on the Board	40%	40%

our communities in times of need.
	Community investment	0.7% pre-tax profit by 2022
	0.8%

Performance met or exceeded target

Performance below target

1. As per targets published in the 2018-19 Responsible Business Report 2. Complaints resolved within 30 days from first date received, managed by Internal Customer Relations team. Exceeds 45-day ASIC requirement 3. From 2017-18 baseline for Suncorp corporate operations in Australia and New Zealand 4. From receipt of a valid invoice. Excludes New Zealand and suppliers with terms beyond 30 days and Suncorp Insurance Ventures 5. Based on Global Investor Coalition definition 6. Based on combined average of industry peers published for 2018-19

BUSINESS OUR

03	Suncorp 2019-20 Responsible Business Report

Message from our Chairman

The past 12 months have brought extraordinary challenge and uncertainty for people and communities across the globe. As a relentless drought was impacting the lives of many regional families, we are now also dealing with the immediate impacts of the COVID-19 global pandemic and summer of disasters on our people, customers, and communities, and the long-term implications for our economies and environment.

These events further highlight the important role Suncorp plays in supporting both the immediate and long-term recovery of our customers, communities and the economy. Our purpose - to build futures and protect what matters

- is at the heart of how we respond.

Improving our business practices

Our ability to respond to the challenges faced this year was due in large part to a culture that appropriately balances customer and community outcomes, financial performance and risk management.

In dealing with the significant impacts of the COVID-19 pandemic, the health and safety of our people was our immediate priority. We also moved quickly to support our customers with relief packages and other measures.

More broadly this year, we have strengthened support for customers facing hardship, and introduced greater transparency and enhanced protections for customers. This has underpinned our transition to the updated General Insurance Code of Practice and the commencement of our Responsible Banking & Insurance Policy implementation.

Suncorp continues to welcome regulatory change that creates improved outcomes for customers. We regularly advocate with government and regulators on matters impacting our business and key stakeholders, with a focus on ensuring that change does not have unintended consequences for consumers. This year, our advocacy included a submission to Treasury on the implementation of reforms flowing from the Royal Commission into Banking and Financial Services (the Royal Commission), focusing on the anti-hawking provisions, breach reporting, and the enforceability of industry codes.

Conduct and culture remain a priority

Strengthening trust by improving our conduct and culture remained a priority this year. We conducted an employee engagement and culture assessment, refreshed our Code of Conduct, strengthened our risk culture and risk and compliance capability, and increased transparency of our non-financial performance metrics.

During the year Suncorp initiated a review of pay and leave entitlements. Regrettably, early analysis of historical data indicated inconsistencies in relation to the Group's rostering and pay systems. The Board Risk Committee is overseeing the review and is committed to a timely and accurate remediation process, which will be communicated with employees and shareholders upon completion.

BUSINESS OUR

We take our responsibilities as a large business seriously and are always looking for ways to improve outcomes for all stakeholders.

Building long-term resilience

This year we deepened our understanding of the strategic and financial risks and opportunities presented by the changing climate through comprehensive scenario analysis. The insights gained will help us manage risks posed by the increasing severity of natural hazards, act on new and emerging opportunities, and support an orderly transition to a net-zero emissions economy.

Suncorp has taken a careful and considered approach to building resilience to the physical risks of climate change, as well as reducing the impacts of economic and transition risks, to ensure our business is sustainable into the future.

We continue to advocate for greater investment by government in effective natural hazard resilience building, which will also provide much-needed economic stimulus in the current environment, particularly in our regional communities.

The actions our organisation takes to address our most material social and environmental issues, combined with our advocacy for change, are critical to ensuring Suncorp remains well positioned to be a more resilient company for the benefit of all its stakeholders.

CHRISTINE MCLOUGHLIN CHAIRMAN

21 AUGUST 2020

04	Suncorp 2019-20 Responsible Business Report

Our

Stakeholders

05	Suncorp 2019-20 Responsible Business Report

Stakeholder engagement

Suncorp collaborates with a broad range of stakeholders to identify and manage business risks and opportunities, to advocate for positive outcomes and to ultimately create long-term value.

OUR APPROACH

Stakeholder engagement is highly valued by Suncorp as an important means of building trust and confidence; it helps us make informed and balanced decisions and determine our approach to addressing topics most material to us and our stakeholders.

We use a process of ongoing formal and informal engagement methods, which are based on a set of principles that ensure we are proactive, respectful, transparent and uphold the highest of ethical standards. They also ensure we are disciplined and considered in the way we manage the engagement, with clear relationship owners. Our approach evolves in line with our strategy and emerging trends and issues that may impact our business and the community.

We identify key stakeholders based on the level of interest and impact they have on our business, as well as the opportunity to collaborate for more positive outcomes.

This year we engaged with our key stakeholder groups on the following economic, environmental, social and governance topics.

STAKEHOLDER	HOW WE ENGAGE	SUMMARY OF TOPICS RAISED
GROUP


Customers	Daily interactions via contact centres, branches	Support for customers impacted by disasters and COVID-19, customers
	and digital platforms, customer surveys, dispute	experiencing vulnerability, financial resilience, business continuity,
	resolution processes and dealings with the	customer experience, cyber and data security, scam and fraud awareness
	Suncorp Group Customer Advocate	and support, elder financial abuse, digital capability and innovation.

Employees	Internal communication channels, annual executive	Employee health, safety and wellbeing, business continuity, workforce
	town halls and regular employee engagement	planning, engagement and employee experience, remuneration practices,
	surveys and pulse-checks, business leader	conduct and ethics, digital capability, resource use and efficiency, diversity
	presentations and webcasts	and inclusion, reconciliation and cultural learning, cyber security.

Shareholders,	Meetings, executive and director roadshows,	Impacts of natural disasters, COVID-19 and business continuity, remuneration
investors,	full and half year results presentations	practices, non-financial performance and targets, climate change business
analysts and	(including webcasts), analyst briefings and	and customer impacts, modern slavery, responsible investment, responsible
credit rating	conferences, annual credit rating reviews and	underwriting and lending, conduct and culture.
agencies	the Annual General Meeting

Federal, state	Meetings and conferences, submissions	The Royal Commission recommendations implementation, natural
and local	to inquiries, background briefings and	hazard resilience, disaster response, climate change, conduct and culture,
government	correspondence	fairness and value, affordability and accessibility, support for people and
		communities experiencing vulnerability.

Regulators	Regular liaison meetings, industry conferences,	Climate-related financial risk, transparency and disclosure, conduct and
	regular meetings with executives and directors, annual	culture, fairness and value, responsible lending and underwriting, modern
	prudential consultations and ongoing site visits	slavery, financial soundness, compliance requirements and technology risk.

Industry	Committee and working group participation,	Disaster response, response to COVID-19, support for people experiencing
associations	informal interactions, Australian Banking	vulnerability, climate change business and customer impacts, responsible
	Association Council membership, Insurance Council	supply chains and modern slavery, cyber and data security.
	of Australia, Insurance Council of New Zealand and
	Financial Services Council Board membership

Suppliers and	Formal and informal meetings, contract renewals	Impacts of COVID-19 and business continuity, digital capability,
partners	and risk assessments	responsible supply chain and modern slavery, cyber and data security.

Media	Media releases, background briefings, direct	Business continuity, conduct, culture, natural hazard resilience, disaster
	engagement and one-on-one interviews, social	response, affordability and accessibility, cost of living, support for people
	media channels and informal interactions	experiencing vulnerability, community investment, workforce planning.

Consumer	Customer issues management and interactions via	Support for vulnerable people, affordability and accessibility, fairness and
advocacy	the Suncorp Group Customer Advocate, meetings	value, disaster response, financial resilience, natural hazard resilience,
groups	and conferences, industry forums and the annual	conduct and ethics, responsible banking and underwriting, customer
	Consumer Advocate Day	experience.

Community	Meetings and conferences, industry collaborations	Financial resilience, natural hazard resilience, digital capability, support
partners and	and community partnerships	for people experiencing vulnerability, disaster preparedness and response,
NGOs		talent attraction, diversity and inclusion, reconciliation, cultural heritage and
		environmental preservation, social inclusion and community investment.

Universities,	Joint research projects, meetings, conferences and	Climate change business and customer impacts, responsible investment,
academics	presentations	responsible underwriting and lending, natural hazard resilience, cyber
and climate		security and scams, responsible supply chain.
specialists

STAKEHOLDERS OUR

06	Suncorp 2019-20 Responsible Business Report

Materiality

OUR APPROACH

Suncorp proactively manages the material economic, social and environmental risks and opportunities identified by our key stakeholders and our business.

Regular materiality assessments help us identify and prioritise the topics of most significance for our business, ensuring they reflect the needs and expectations of our stakeholders, and society, both now and in the future. The results of our materiality assessment inform our corporate responsibility approach, strategic priorities and reporting. Suncorp's material topics are managed through the lens of our four key Corporate Responsibility Principles, which help guide our decision making and balance customer outcomes, financial performance and risk management.

This year we built upon the comprehensive materiality assessment conducted in 2019, to reflect changes to our operating environment and emerging priorities resulting from the unprecedented events of the COVID-19 global pandemic and the Australian bushfire crisis.

RESPONDING TO OUR CHANGING OPERATING ENVIRONMENT

This year has seen unprecedented change in our region and globally, resulting in new material topics, as well as a shift in the importance and impact of several topics identified in our last materiality assessment.

Changes from our 2018-19 assessment include:

the emergence of new material topics including business continuity and product innovation, and a heightened focus on employee health and wellbeing, support for people experiencing vulnerability, financial resilience, workforce planning and digital capability as a result of the COVID-19 pandemic
the heightened importance to stakeholders of natural hazard resilience, support for people experiencing vulnerability, and climate change impacts on our business, customers and communities, since the summer of disasters
human rights, including modern slavery as a new material topic for Suncorp to address, particularly in response to the introduction of the Modern Slavery Act in Australia.

The most material topics based on their importance to stakeholders and the potential impact on our business are outlined on the next page (see diagram) .

Our updated materiality assessment this year is based on:

Identification

a review of global megatrends, media and peer activities across Australia and New Zealand, including industry trends
incorporation of stakeholder expectations and responses to COVID-19 and the Australian bushfire crisis including from investors, analysts, customers, government and community representatives, consumer advocates, NGOs, partners, suppliers and peers
a review of our performance in key sustainability rating benchmarks
feedback from formal and ongoing informal stakeholder engagement throughout the year (as outlined in table on page 6)
employee engagement and culture assessment responses

Prioritisation

an internal materiality survey of business representatives and management to identify and prioritise environmental, social and governance topics

Validation

validation of the most significant topics via an internal management group and input from senior leaders

STAKEHOLDERS OUR

07	Suncorp 2019-20 Responsible Business Report

Our most material environmental, social and governance topics

Conduct and ethics

Transparency and disclosure

Cyber and data security

Remuneration practices

Fairness and value

Affordability and accessibility

Support for vulnerable people

Financial resilience

Customer experience

Materiality

STAKEHOLDERS OUR

TRUST AND

TRANSPARENCY

RESPONSIBLE

FINANCIAL

SERVICES

Digital capability and product innovation

Employee health, safety

and wellbeing RESILIENT PEOPLE

Responsible investment, underwriting and lending

SUSTAINABLE

Responsible supply chain

Business continuity and workforce planning

AND COMMUNITIES

GROWTH

Human rights including modern slavery

Talent attraction and retention

Diversity, inclusion and employee experience

Indigenous engagement

Community investment

Topic increased in importance

New topic for 2020

Resource use and efficiency

Natural hazard resilience

Climate change: business impacts

Climate change: customer and community impacts

08	Suncorp 2019-20 Responsible Business Report

Materiality

Addressing our most material environmental, social and governance topics

The following table defines our ten most material topics and summarises our response to each.

TOPIC	OUR RESPONSE
	CONDUCT AND ETHICS
	- Refreshed Code of Conduct

	Ensuring ethical and appropriate behaviour and	- Introduced Ethical Decision-Making course for leaders
Trust	practices of directors, management and employees.	-	Established Data Ethics Principles and Data Ethics Advisory Committee
	-	Developed Risk Culture Principles
and
TRANSPARENCY AND DISCLOSURE	- Published performance against non-financial targets and set 2020-21 targets

Transparency	Committing to the disclosure of economic, social and - Published performance of sustainability assessments and participated in the Dow Jones Sustainability Index, CDP,
environmental risks, opportunities and performance.		London Benchmarking Group (LBG) and Workforce Gender Equality Agency (WGEA) benchmarking exercises
	Ensuring product and service information is easy to	- Updated materiality based on emerging priorities and changes to our operating environment
	locate and understand.	- Published 2019-20Climate-related Financial Disclosure, Tax Transparency Report, and Proxy Voting Principles
			and Summary
		- Improved transparency of premium changes through General Insurance Code of Practice implementation
		- Became a signatory to the United Nations Environmental Programme Finance Initiative (UNEP FI) Principles
			for Responsible Banking
		- Integrated the UNEP FI Principles for Sustainable Insurance
	FAIRNESS AND VALUE	- Transitioned to updated General Insurance Code of Practice


	Ensuring products and services provide fair value	- Further implemented Banking Code of Practice
Responsible	and balance the needs of different stakeholder	-	Commenced implementation of Responsible Banking & Insurance Policy
groups.	- Responded to COVID-19, including customer relief and retention packages

		- Engaged with our stakeholders and advocated for better customer and consumer outcomes
	SUPPORT FOR VULNERABLE PEOPLE	- Extended a suite of hardship and relief measures in response to COVID-19 and the Australian bushfires,
Financial	Providing support to people experiencing a period of		and donated to a range of community groups to support those most vulnerable
or ongoing vulnerability in their life. This may include	- Implemented Customers Experiencing Vulnerability Strategy, Standards and Guidelines, including
	people impacted by financial hardship, domestic		Domestic and Family Violence statement
Services	violence, financial abuse, illness or a disability,	-	Continued financial inclusion and customer vulnerability training for Australian employees and extended to
or faced with barriers due to ethnic/cultural		New Zealand teams

	or socio-economic characteristics.	- Expanded community sector partnerships to improve external referral pathways
	FINANCIAL RESILIENCE	- Launched AAMI-brandedmicro-enterprise business insurance
	Improving the capability, resources and access to	- Piloted Financial Literacy workshops with Multicultural Australia clients to build financial resilience and economic
	suitable insurance, banking and wealth products		participation for culturally diverse communities
	and services for our customers and community	- Worked with Thriving Communities Partnership on a research report to better understand role of essential services
	to enhance their ability to withstand and adapt to		in recovering from a natural disaster
	financial shock or adversity.	- Worked in partnership on a Sorry Business financial hardship solution to address challenges faced
			by Indigenous Australians when paying for the funerals of loved ones
	DIGITAL CAPABILITY AND PRODUCT INNOVATION	- Rapidly deployed new digital solutions for customer experience, claims handling and employee communication
	Keeping pace with the increasing digitisation and		during COVID-19 response
	demand for personalised financial products and services.

WHERE THE IMPACT OCCURS

Customers		Investees1		Suppliers		Our people		Community

STAKEHOLDERS OUR

	1. Companies that Suncorp has invested in through its investment portfolios
09	Suncorp 2019-20 Responsible Business Report

Addressing our most material environmental, social and governance topics

TOPIC	OUR RESPONSE
	NATURAL HAZARD RESILIENCE
	- Continued advocacy through our Natural Hazard Resilience Strategy

Sustainable	Helping our customers and communities build	- Expanded Storm Ready Streets community engagement across Queensland
resilience to natural hazards including floods, storms	-	Completed first phase of climate change scenario analysis to understand community resilience to insurable
and bushfires, while also appropriately pricing risk		and uninsurable risk

	and maintaining insurance affordability in high-risk
	communities.
Growth	CLIMATE CHANGE: BUSINESS IMPACTS	- Continued to implement our Climate Change Action Plan
Addressing the impacts of climate change on	- Published Climate-Related Financial Disclosures
	Suncorp's operations and business activities.	- Developed a Renewable Energy Strategy and joined RE100
		- Refreshed our Environmental Performance Plan
	EMPLOYEE HEALTH, SAFETY AND WELLBEING	- Responded to COVID-19, including new social distancing and hygiene protocols


	Protecting and maximising the physical and mental	- Strengthened Safety and Wellbeing Policy
Resilient	health, safety and wellbeing of our workforce.	-	Supported safety and wellbeing for expanded work-from-home arrangements
	- Introduced unlimited paid Emergency Response Volunteer leave

		- Conducted Gender Equality and Gender Equity Pay Review
People		-	Introduced Employee Assistance Program specialists for Indigenous employees
	- Established two new Employee Resource Groups

And		- Refreshed Employee Giving program
BUSINESS CONTINUITY AND WORKFORCE	- Responded to COVID-19, including crisis response, scenario planning and stress testing
Communities
unplanned incident, crisis or major disruption. It		swiftly put in place to meet capacity needs
	PLANNING	- Deployed Business Continuity Plans (BCPs) for all business units
	Ability to respond to and ensure core business	- Deployed BCPs with all overseas outsource partners
	operations are not severely impacted by an	- Deployed work-from-home arrangements for the majority of our people, with increased technology infrastructure
	includes planning for and addressing impacts on	- Enabled business-critical work to continue at our workplaces through COVID-19 safety measures
	our workforce as a result of changed conditions,	- Reviewed long-term people and workplace plans
	technology and demographic trends.	-	Expanded Future Ready learning program

Materiality

WHERE THE IMPACT OCCURS

Customers	Investees1	Suppliers	Our people	Community

STAKEHOLDERS OUR

1. Companies that Suncorp has invested in through its investment portfolios

10	Suncorp 2019-20 Responsible Business Report

Our

Responsibility

Photographed October 2019

11	Suncorp 2019-20 Responsible Business Report

Corporate Responsibility Principles

Suncorp aims to optimise economic, social and environmental outcomes for stakeholders, which is core to strengthening trust and building a resilient, responsible and sustainable business.

For Suncorp, this approach helps us live our company's purpose to build futures and protect what matters. Our commitment

to continuously improve our business practices and increase

transparency about our operations and performance underpins our ongoing ability to maintain our social licence to operate.

Our Board-approved Corporate Responsibility Principles

(the Principles) guide our approach to governance and risk management, policy development, business decision making, and disclosure of non-financial performance.

SUSTAINABLE DEVELOPMENT GOALS

Suncorp is committed to driving awareness and action in support of the United Nation's Sustainable Development Goals (SDGs), which are a set of 17 goals

The Principles we aspire to:

RESILIENT PEOPLE

AND COMMUNITIES

RESILIENT PEOPLE AND COMMUNITIES

We respect human rights and invest in the wellbeing and resilience of our people and communities. We are there for our people and our communities in times of need.

TRUST AND TRANSPARENCY

We are committed to building trust and doing the right thing. We are open and transparent in our dealings with our stakeholders.

SUSTAINABLE GROWTH

We seek to innovate and optimise economic, social and environmental outcomes throughout our business and value chain.

that define global sustainable development priorities and aspirations for 2030. The SDGs call for action to address significant economic, social and environmental challenges such as poverty, inequality, improving health and education and climate action. Suncorp's responsible business activity contributes to eight of the 17 SDGs as outlined here. Read more about our contribution to the SDGs at suncorpgroup.com. au/corporate-responsibility/our-approach/sustainable-development-goals

RESPONSIBILITY OUR

TRUST AND

TRANSPARENCY

RESPONSIBLE	SUSTAINABLE
FINANCIAL SERVICES	GROWTH

RESPONSIBLE FINANCIAL SERVICES

We put our customers at the heart of everything we do and help them make good choices. We provide customers with access to affordable financial services that meet their needs.

12	Suncorp 2019-20 Responsible Business Report

Corporate responsibility governance

The Suncorp Board stewards corporate governance, culture, strategy, and our social licence to operate. Our governance structure provides for effective and responsible decision- making within the organisation.

OUR APPROACH

Suncorp's Board believes high standards of governance and corporate responsibility are essential for achieving business objectives, sustaining long-term financial performance and creating value for our customers, shareholders and key stakeholders.

The Board and its five Committees regularly review the corporate governance framework and associated policies and practices to ensure they keep pace with regulatory change, industry best practice and community expectations.

Collectively, the Board is responsible for approval of objectives, strategies and policies to address economic, social and environmental risks and opportunities for Suncorp. This includes new policy development and the setting of metrics and targets for non-financial performance reporting.

Mr Lindsay Tanner, a Non-executive Director of the Suncorp Group Limited Board, chairs Suncorp's Customer Committee, which oversees and aligns initiatives that underpin our priority to deliver great customer outcomes and experiences. The Customer Committee met three times during 2019-20.

Ms Sally Herman, a Non-executive Director of the Suncorp Group Limited Board, chairs Suncorp's Risk Committee, which provides oversight of all categories of risk, including risk culture. It approves and oversees the processes used to identify, evaluate and manage risk. The Risk Committee met seven times during 2019-20.

Several Executive Leadership Team sub-committees help govern Suncorp's corporate responsibility commitments.

Suncorp's Group CEO chairs the Corporate Responsibility Council, which formally oversees our corporate responsibility commitments and the development of strategies to address economic, social and environmental risks and opportunities. The Corporate Responsibility Council met three times during 2019-20.

Suncorp's Group CEO chairs the Diversity Council, which oversees how we foster diversity and inclusion initiatives and tracks our progress against the objectives and targets set out in our Diversity & Inclusion Plan and Diversity Policy. The Diversity Council met quarterly during 2019-20.

Suncorp's Group CEO chairs the Non-Financial Risk Committee, which oversees non-financial-related risks and mitigation strategies. This committee was formed in April 2019 and convenes monthly.

The Group Data Council governs data ownership and accountability across Suncorp, acting as a point of escalation for data-related decisions and maintaining a focus on data as a strategic asset. This year an advisory committee was established to oversee the implementation of our Data Ethics Principles.

RESPONSIBILITY OUR

In 2019-20, prominent environmental, economic, social and governance topics addressed by the Board included remuneration practices, conduct and culture, responsible investment, underwriting and lending, climate change and natural hazard resilience, financial inclusion and support for customers experiencing vulnerability, and inclusion and diversity. In response to the COVID-19 pandemic, the Board closely oversaw measures to protect the health, safety and wellbeing of our people and customers and ensured ongoing investment in the community.

GOVERNANCE STRUCTURE

Throughout 2019-20 our governance arrangements have been consistent with the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (3rd edition). Detailed information on Suncorp's corporate governance framework and developments during the year is provided in the 2019-20 Corporate Governance Statement, available at suncorpgroup. com.au/about/corporate-governance

GOVERNANCE OF CORPORATE RESPONSIBILITY COMMITMENTS

SUNCORP GROUP LIMITED BOARD

People and		Audit		Risk		Customer	Nomination
Remuneration
	Committee		Committee		Committee	Committee
Committee


		EXECUTIVE LEADERSHIP TEAM
	Corporate	Diversity	Group Data		Non-Financial
	Responsibility
	Council	Council		Risk Committee
	Council

13	Suncorp 2019-20 Responsible Business Report

Commitments and frameworks

IMPROVING OUR PRACTICES

We value being benchmarked on the progress of our work and our performance as we strive to deliver better economic, governance, social and environmental outcomes.

EXTERNAL ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RATINGS AND BENCHMARKS

Sustainability ratings and industry benchmarks enable us to improve our performance and transparency. We take part in a wide range of external assessments and benchmarking initiatives including:

Dow Jones Sustainability Index (DJSI): In 2019, Suncorp actively participated in the

Corporate Sustainability Assessment and improved its score by 25 points, scoring
57 out of 100 points. This year the threshold for inclusion in the Australian Index was 67.
CDP: Suncorp has participated since 2011 as both a responding company and as an asset owner and manager. In 2019, we received a B- rating, an improvement from a C the year prior.
FTSE4Good Index: Suncorp has been included in the Index since 2013. FTSE4Good reviews publicly available information on listed companies and screens for performance against ESG standards.
Sustainalytics: Suncorp has participated since 2016. This year, Suncorp received an ESG risk rating score of 20.5/100 (where 0 equals low risk and 100 equals high risk).
Morgan Stanley Capital International (MSCI): During the year, Suncorp achieved an A rating from MSCI ESG Research, an uplift from our previous BBB rating.
Institutional Shareholder Services (ISS): Suncorp has participated in the ISS ESG QualityScore assessment since 2017 and currently scores a 2 for 'E' (environmental),
1 for 'S' (social) and 1 for 'G' (governance), where one equals lower governance risk and 10 equals higher governance risk.

Commitments and frameworks

MEMBERSHIPS AND SIGNATORIES

United Nations Global Compact (UNGC)

Suncorp has been a signatory to the UNGC since June 2019. We use the framework to help drive sustainable business practices in the areas of human rights, labour, environment and anti- corruption and align our activity to broader societal goals. Over the past year, Suncorp has actively participated in a range of capability building and networking programs hosted by the UNGC.

United Nations Environmental Programme Finance Initiative (UNEP FI)

UNEP FI is a partnership between UNEP and the global financial sector to mobilise private sector finance for sustainable development. Suncorp is a signatory to all three UNEP FI frameworks, which are aimed at integrating sustainability into financial market practice.

Principles for Responsible Investment (PRI)

Suncorp has been a signatory to the PRI since 2019, joining more than half the world's institutional investors who apply the Principles to their investment decisions.

During the year Suncorp completed its first PRI Transparency Report, available at

unpri.org/signatory-directory/suncorp-group/4682.article

Principles for Sustainable Insurance (PSI)

Suncorp became a signatory to the PSI in 2019, with the aim of working with the industry and other stakeholders to reduce risk, develop innovative solutions, improve business performance, and contribute to environmental, social and economic sustainability.

Principles for Responsible Banking (PRB)

Launched in September 2019, Suncorp became Australia's first non-major Bank to endorse and become a signatory to the PRB, which aim to accelerate the banking industry's contribution

to achieving the UN Sustainable Development Goals and the Paris Agreement. Suncorp will complete its first self-assessment over the coming year.

Task Force on Climate-related Financial Disclosures (TCFD)

In 2018, Suncorp became one of the first 250 companies globally to become a signatory to the Financial Stability Board's TCFD. The framework guides Suncorp's financial risk disclosures that are associated with climate change, including physical, liability and transition risks. Our Climate-related

Financial Disclosure is available at suncorpgroup.com.au/corporate-responsibility/reports

RE100

This year Suncorp became a member of the RE100 global corporate renewable energy initiative that brings together hundreds of businesses committed to 100 per cent renewable energy in an aim to accelerate a global shift to clean energy and zero carbon grids.

London Benchmarking Group (LBG)

Suncorp has been a member of LBG Australia and New Zealand since 2009. LBG provides the global standard for measuring and benchmarking corporate community investment.

Workforce Gender Equality Agency (WGEA)

This year, Suncorp was recognised as an Employer of Choice for Gender Equality by WGEA, an Australian Government statutory agency, for the seventh consecutive year, demonstrating our ongoing commitment to advancing gender equality and promoting inclusion at all levels of our organisation. Our

annual WGEA reports are available at suncorpgroup.com.au/corporate-responsibility/reports.

Chartered Institute of Procurement and Supply (CIPS)

Suncorp has been recognised on the CIPS Global Corporate Ethical Register over the past year for our commitment to safeguarding against unethical conduct in procurement. We complete an annual capability assessment and formal submission to achieve ongoing recognition.

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14	Suncorp 2019-20 Responsible Business Report

Trust and transparency

OUR FOUNDATIONS

Corporate Governance Statement

We are committed to building trust and doing the right thing. We are open and transparent in our dealings with our stakeholders.

OUR APPROACH

We take the trust our stakeholders place in us and our role in society seriously. We proactively engage with our stakeholders to understand the things that matter most, and advocate for change. We are increasing the transparency of our business operations and performance, and the decisions we make.

MEETING CUSTOMER AND COMMUNITY EXPECTATIONS

Being responsive to changing community concerns and expectations is central to earning the trust required to maintain Suncorp's social licence to operate. The significant events during 2019-20 have only served to heighten our focus on meeting the immediate needs of our people, customers and community, while ensuring we build a resilient, sustainable organisation that creates long-term value for all.

We maintain a sharp focus on strengthening our conduct and culture to ensure good outcomes for customers and remain committed to working with regulators to implement changes following the recommendations outlined in

the Royal Commission.

INCREASING TRANSPARENCY

Increasing the transparency of Suncorp's business activity and non-financial performance is key to meeting stakeholder expectations. We communicate openly and comprehensively about our corporate responsibility commitments, approach and performance. This year, for the first time, we report on our performance against the customer, people, community, environment and value chain targets we published in 2018-19. See page 3 for our 2019-20 performance against targets.

Outlines Suncorp's approach to corporate governance and its principal governance practices. suncorpgroup.com.au/about/ corporate-governance

Code of Conduct

Sets out the standards of behaviour we expect from our people, and guides how we work together, make decisions and meet our customers' needs. It is guided by our cultural principles of doing the right thing, being courageous, and caring for others. suncorpgroup.com.au/ about/corporate-governance

Policies to support regulatory compliance

Ensures our people and systems comply with the requirements of a highly regulated industry. suncorpgroup.com.au/about/ corporate-governance

Whistleblower Policy

Outlines the confidential service available to all our people and suppliers to raise concerns of suspected or actual misconduct. suncorpgroup.com.au/uploads/ Whistleblower-Policy_8.pdf

Political Engagement Position

Statement

Commits us to high ethical standards in our approach to political engagement. suncorpgroup.com.au/ about/corporate-governance

Suncorp Group Privacy Policy

Details how we collect, use, disclose, store and secure personal information. Our people complete mandatory privacy training annually. suncorpgroup.com.au/about/ corporate-governance/privacy-policy

Keith Howard, Suncorp Customer

Support Specialist

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15	Suncorp 2019-20 Responsible Business Report

2021 TARGET

98% of employees complete Code of Conduct training annually

OUR PROGRESS

Suncorp continued to strengthen our practices and culture and embrace regulatory change to deliver better outcomes for our customers and the community, and build a resilient, sustainable business.

STRENGTHENING CONDUCT AND CULTURE

During 2019-20 Suncorp sharpened its focus on managing conduct risk and developing a risk culture that embeds risk awareness, transparency and accountability at every level, and exemplifies responsible and ethical behaviour. Doing the right thing by our people, our customers, our shareholders and the community is our priority, and core to sustaining long-term financial performance.

Culture assessment

This year Suncorp undertook an independent Group-wide culture assessment to better understand our current culture and identify opportunities to shift the culture to more effectively deliver on our strategy. The survey highlighted the willingness of our people to do the right thing by our customers and build trust, and the care they have for each other. More than 89 per cent of people noted that compliance requirements were a priority, while the survey also identified areas for improvement such as delivering greater clarity and connection to our strategy, and driving a deeper understanding of how our risk practices support growth and innovation.

Conduct risk

Robust management of conduct risk is central to driving the right behaviours at both an individual and organisational level, ensuring we act in the interests of customers and the community and confidence in our organisation is maintained. This year

we continued to improve our governance, systems, processes, reporting and people practices as key enablers to identifying and managing conduct risk.

We also embedded our online tool, which enables employees to raise issues by lodging risk incidents. Risk culture principles, which outline attributes and behaviours of the risk culture we expect from everyone at Suncorp, have been incorporated into key policies and governance, including Suncorp's Code of Conduct.

Suncorp New Zealand's Conduct Uplift Program continued to improve conduct capability across the business, with more than 70 measures implemented resulting in enhanced product and system training, improved readability of our policies and customer communications, and a deeper understanding of customer outcomes and experiences.

Code of Conduct

This year Suncorp refreshed its Code of Conduct to be easier to understand and more reflective of the current regulatory environment. Our refreshed Code of Conduct helps bring our purpose to life and is guided by our cultural principles. It is aligned to our Risk Culture Principles, the General Insurance Code of Practice and the Banking Code of Practice, with strengthened focus on supporting customers experiencing financial difficulty or vulnerability, transparent customer communications, and taking ownership of good customer and community outcomes.

Changes to elevate the importance and weighting of the risk category in the Group Scorecard structure were approved by the Board. Throughout the year, all executive and non-executive employees' performance assessments included confirmation of their adherence to the behavioural standards outlined in Suncorp's Code of Conduct.

In 2019-2020, Suncorp's Consequence Management Framework was introduced to strengthen the link between conduct and individual performance and reward outcomes. During the year, there were 239 Code of Conduct breaches identified that resulted in formal consequences, including 66 employees leaving Suncorp, 28 employees receiving nil variable rewards; and the remaining 145 employees receiving a minimum 20 per cent reduction in variable rewards.

Ethical Decision-Making

During 2020 Suncorp partnered with the Ethics Centre to create an Ethical Decision-Making Masterclass for all leaders. The program complements Suncorp's Code of Conduct, and helps participants develop and apply ethical knowledge and skills to all decision making. It positions leadership as an ethical practice, enhances awareness of ethical blind spots and biases, and provides tools for navigating daily decisions. Using a scenario-based approach, leaders apply an ethical lens to navigate complex decisions and are encouraged to consider the impacts on a range of stakeholders.

Trust and transparency

TAX TRANSPARENCY REPORT

Suncorp's Tax Transparency Report 2018-19 details our tax contributions and overall approach to tax strategy: suncorpgroup.com.au/ corporate-responsibility/ reports

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16	Suncorp 2019-20 Responsible Business Report

We advocate for:

Competition and fair

Trust and transparency

outcomes

Natural hazard resilience and disaster preparedness

Financial inclusion and economic opportunity

Social connection and

support

Inclusion and diversity

REMUNERATION PRACTICES

Suncorp is committed to a fair, transparent and responsible remuneration framework. The Board ensures Suncorp's remuneration arrangements are strategically aligned and reinforce executive accountability, responsible business practices, effective risk management, as well as drive a company culture. Suncorp's 2019-20 Remuneration Report is available at suncorpgroup.com.au/investors/reports

Pay and leave entitlements review

In late 2019, Suncorp initiated an internal review of pay and leave entitlements, with early analysis of historical data indicating inconsistencies in relation to the Group's rostering and pay systems. This may have led to errors in payments of overtime, shift penalties and public holiday loadings. The analysis to date identifies potential instances of underpayments and overpayments. The review is ongoing.

The Board Risk Committee is overseeing the review and is convening regular meetings to closely monitor progress; ensure remediation processes are timely and accurate and are communicated with employees and shareholders upon completion; and ensure new processes are sufficiently robust so that this does not reoccur.

ADVOCATING FOR THE THINGS THAT MATTER

In 2020, Suncorp integrated its approach to advocacy as a core pillar of our company strategy. We promote regular, two- way dialogue about our opportunities and challenges with our stakeholders, which helps inform the decisions we make and enables us to understand what matters most. We advocate for effective responses to the topics of most significance to our stakeholders and business with a focus on affecting positive change. Our advocacy and our actions as an organisation work together to build the resilience of our customers, communities, people and industry by focusing on financial, social and natural hazard resilience. Being transparent and actioning evidenced- based insights from customers, governments and community groups to create measurable impacts underpins our approach.

EMBRACING REGULATORY CHANGE

Suncorp continued to actively respond to the changing regulatory requirements faced by the financial services industry during 2019-20 and embraced the opportunity to improve customer value, enhance our risk management approach and better meet community expectations.

Under Suncorp's customer and regulatory engagement program, solid progress has been made in responding to the findings of the Royal Commission, and Risk Governance Self-Assessment outcomes. Scorecards and remuneration frameworks have been updated and the Non-Financial Risk Committee has invested in greater compliance resourcing and improved incident management and risk practices.

Suncorp is compliant with the Sedgwick Remuneration Review Recommendations1 from 1 July 2020, excluding Recommendation 18 relating to Mortgage Broker remuneration given the Government's policy reform.

The COVID-19 pandemic has resulted in the deferral of several key regulatory reforms by the Australian government and regulators, including the implementation of commitments made following the Royal Commission, and Design and Distribution Obligations. Suncorp remains well positioned to meet the new proposed implementation timeframes, where clarity has been provided on the requirements.

Banking Executive Accountability Regime

Suncorp continues to support the principles of the Banking Executive Accountability Regime (BEAR), a regulatory initiative that helps drive greater clarity of accountability and good governance practices across the Australian banking sector. Accountability statements outlining the individual accountabilities for relevant Suncorp executives and Board members have been lodged with the Australian Prudential Regulatory Authority (APRA). All Accountable Persons have a BEAR-compliant remuneration structure. The Suncorp Executive Leadership Team have had this structure since 1 July 2018. Further detail is provided in the Remuneration Report in the 2019-20 Annual Report, available at suncorpgroup.com.au/investors/reports

RESPONSIBILITY OUR

1. This refers to Stephen Sedgwick's retailbankingremreview.com.au Retail Banking Remuneration Review dated 19 April 2017.

Suncorp 2019-20 Responsible Business Report

Trust and transparency

Breaches and remediation

Suncorp is committed to treating all customers fairly. We maintain, monitor and continuously improve our processes and practices to identify, assess and rectify any breaches that do occur, ensuring we learn from mistakes and remediate impacted customers in a timely manner. We continue to focus on our product design and distribution strategies to enhance customer value and experience.

This year, Suncorp New Zealand established a customer remediation programme and is currently assessing and remediating a limited number of situations affecting customers.

With oversight from the Australian Securities & Investments Commission (ASIC), Suncorp finalised the remediation of customer outcomes on the quality of advice provided by our former financial planning business, Guardian Advice. We also completed a review and remediation program related to the sale of consumer credit insurance to home and personal lending customers.

In line with statutory requirements and regulator expectations, in 2019-20 Suncorp reviewed its approach to grandfathered commissions. Effective 1 October 2019, Suncorp Financial Services elected to cease receipt of grandfathered commissions, with appropriate benefits passed on to its members.

Suncorp Portfolio Services Limited (SPSL), our wholly owned superannuation company with an independent Board, ceased all payments of grandfathered commissions to independent financial advisers on 30 June 2020.

In July 2020, the APRA announced the outcome of its review and licence conditions on the superannuation licence held by SPSL arising from a review of the period 2013-2017. The condition requires SPSL to document how it considers and prioritises members interests when making decisions that materially affect their interests. APRA's investigation did not conclude that SPSL breached the Superannuation Industry (Supervision) Act 1993.

MANAGING AND PROTECTING DATA

Managing and protecting data is critical to maintaining the trust and confidence of our stakeholders. In response to growing customer expectations, increasing use of digital channels by our customers and the changing regulatory environment, Suncorp continues to strengthen its approach to managing data and invest in leading technologies to protect customers.

Data Ethics Principles

In 2019-20, Suncorp developed a set of Data Ethics Principles which reflect the Australian Government's AI Ethics Principles. The Principles support Suncorp's Enterprise Risk Management Framework, Privacy Policy and Code of Conduct to protect the rights of our stakeholders when we collect, use and retain their data. A Data Ethics Advisory Committee has been formed to integrate the Principles into our business practices.

Cyber security and financial crime

As the digital environment evolves, Suncorp continues to evolve its capabilities in protecting our customers from the threat of cyber and financial crime. Our dedicated Financial Crime and Anti-Money Laundering / Counter-Terrorism Financing systems leverage world-class detection and prevention technologies.

This year, we invested in advanced data analytics and fraud- detection technology to ensure we can intervene early and disrupt criminal activity, before it impacts our customers. We also enhanced our policies and practices, including the development of an Anti-Bribery & Corruption Policy for employees and further alignment of our investigation practices with updated industry Codes of Practice.

Suncorp supports law enforcement and intelligence agencies to help address cyber crimes. We run ongoing employee and customer education programs on cyber security risks and work with community groups to support customers impacted by financial crimes and scams. This year we collaborated with Queensland University of Technology in industry-leading scam research, which we've extended to industry working groups. We also invested in scam-intervention techniques to reduce the impact on our customers, including enhanced support for victims of identity theft.

More information on Suncorp's approach to data governance and cyber security is available in our 2019-20 Corporate Governance Statement at suncorpgroup.com.au/about/corporate- governance

Data Ethics

Principles:

Generate net benefits

Protect human rights

Fairness

Transparency and

explainability

Contestability

Accountability

ENGAGING WITH GOVERNMENT AND INDUSTRY

Suncorp proactively participates in government inquiries and public policy advocacy on key reforms affecting our business as well as our customers. Through our engagement with government we seek to deliver enhanced outcomes and positive changes for our customers and other stakeholders.

We are committed to conducting these activities transparently, ethically and honestly. In accordance with our Political Donations Policy Statement, Suncorp does not make any cash donations to political stakeholders or organisations.

During the year, Suncorp made 20 submissions to government inquiries, consultation processes or draft legislation in Australia and New Zealand. All of our publicly available government submissions can be found at suncorpgroup.com.au/news/ public-submissions

We continue to work through our industry associations including the Australian Banking Association (ABA), the Insurance Council of Australia (ICA), the Insurance Council of New Zealand, and the Financial Services Council in Australia and New Zealand, to address systemic issues, improve standards and ensure better outcomes for our customers and stakeholders.

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18	Suncorp 2019-20 Responsible Business Report

Our engagement with government and industry this year focused on the following issues

COVID-19 pandemic: Suncorp worked through our industry associations - the ABA and ICA - to develop and implement support packages for our small business banking and insurance customers impacted by COVID-19. We also worked with the relevant authorities to allow our impacted wealth customers access to their superannuation under the Australian Government's early release of superannuation initiative.

Royal Commission into Banking, Superannuation and Financial Services Industry: Suncorp is well progressed in implementing the Royal Commission reforms relevant to our business and customers. During the year, Suncorp provided input into the Australian Government's consultation on Royal Commission recommendations

including those relating to the hawking of financial products, claims handling as a financial service, deferred sales models and the enforceability of industry codes.

During 2019-20, Suncorp executives appeared before the House of Representatives Standing Committee on Economics as part of its Review of the Four Major Banks and other Financial Institutions. Our former

CEO Banking & Wealth appeared in November 2019 and former CEO Insurance in April 2020.

Insurance affordability: Suncorp continues to advocate for measures that will improve the affordability and accessibility of insurance, especially for those who live in areas of high natural disaster risk. During the year we continued to participate in the Australian Competition and Consumer Commission's Northern Australia Insurance Inquiry process. We also made submissions to the Royal Commission into National Natural Disaster Arrangements, the NSW Government's Independent Bushfire Inquiry, the Victorian Inspector-General for Emergency Management's Inquiry into the 2019-20 Victorian Fire Season, and the Senate Finance and Public Administration References Committee's Inquiry into Lessons to be learned in relation to the 2019-20 bushfire season.

Increasing competition in the banking sector: Suncorp, along with other regional banks, continues to advocate for greater competition in the Australian banking sector. We believe addressing the structural inequalities faced by smaller banks in the banking system will help to improve competition and provide better access to banking products for all consumers.

Compulsory third-party (CTP) scheme reform: We continue to advocate for better insurance cover for consumers and fairer competition in CTP schemes across the country. Scheme reform allowed competitive underwriting with a limited number of insurers in South Australia from 1 July 2019, with AAMI quickly establishing a market-leading position. In the Australian Capital Territory, a new scheme that offers insurance cover for all people injured in motor accidents was approved for implementation from 1 February 2020, providing treatment, care and income benefits for up to five years. We continue to push for reform that will provide coverage for all Queenslanders injured in motor accidents through engagement with the government and other stakeholders. In New South Wales we work with the government to ensure the stability of the scheme and improve customer outcomes.

New industry codes: Suncorp was actively involved in updating the Banking and General Insurance Codes of Practice in Australia. We implemented the updated ABA Banking Code of Practice on 1 July 2019 and have continued to enhance processes, products and services to provide greater rights and protections to our customers. The transition to the 2020 General Insurance Code of Practice commenced on 1 January 2020. Implementation of new requirements regarding vulnerable customers and financial hardship was brought forward to 1 July 2020, to assist customers impacted by COVID-19. Suncorp is on track to implement the new requirements in accordance with the required timeframes.

Case

Study

Read more about Suncorp's

response to COVID-19 at suncorpgroup.com.au/news/ suncorp-coronavirus-updates

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19	Suncorp 2019-20 Responsible Business Report

Trust and transparency

OUR PERFORMANCE

OBJECTIVE	PERFORMANCE HIGHLIGHTS	2019-20 PERFORMANCE METRICS FUTURE ACTIVITY	2020-21 TARGETS

Engage meaningfully with our stakeholders

Co-developed and implemented extensive range of COVID-19 customer response and relief packages with the ABA and ICA

Reviewed our assessment of the material economic, governance, social and environmental topics considering major events in 2020

Continue work with industry and government in response to COVID-19 pandemic

Explore measurement and insights into social licence to operate and trust with customers and stakeholders

CONDUCT AND ETHICS

Respond strategically to material economic, social and environmental topics

Commenced transition to the revised General Insurance Code of Practice in Australia, with the provisions relating to support for customers experiencing vulnerability and family violence already delivered

Further implemented Banking Code of Practice and supported the ABA Banking Reform Program

Refreshed our Code of Conduct

Commenced implementation of our Responsible Banking & Insurance Policy

Signed the UNEP FI Principles for Responsible Banking

Established Risk Culture Principles

Established Data Ethics Principles and Data Ethics Advisory Committee

Launched Ethical Decision-Making course for leaders

99%

of employees completed Code of Conduct training

Fully implement the revised General Insurance Code of Practice

Further align business activity to the United Nations Global Compact and Sustainable Development Goals, as well as the UNEP FI Principles for Responsible Investment, Responsible Banking and Sustainable Insurance

98%

of employees complete

Code of Conduct training annually

RESPONSIBILITY OUR

TRANSPARENCY AND DISCLOSURE

Communicate transparently on our performance

Published performance against targets for key non-financial metrics

Published the Suncorp 2018-19 Tax Transparency Report

Participated in the Dow Jones Sustainability Index assessment

Disclosed ESG ratings agency scores

28.5%

effective global tax rate 2019-20

Continue to evolve non-financial performance metrics and targets and disclose performance

Develop roadmap for move to integrated reporting and external assurance of non-financial performance

20	Suncorp 2019-20 Responsible Business Report

Responsible financial services

OUR FOUNDATIONS

Suncorp's Office of the Customer Advocate

Champions the voice of the customer across the organisation and reviews complex and sensitive complaints to ensure a quick resolution for our customers.

We put our customers at the heart of everything we do and help them make good choices. We provide customers with access to affordable financial services that meet their needs.

OUR APPROACH

Suncorp takes its responsibility as an essential services provider seriously. We are committed to being responsive and providing suitable, fair and affordable products and services that meet the needs of our customers and help build their financial resilience. We grow our business inclusively and serve the whole community.

UNDERSTANDING WHAT OUR CUSTOMERS VALUE

Delivering value and meeting the needs of our customers consistently through quality, personalised services is core to Suncorp's strategy. Each day we play an important role in our customers' lives, helping them build - and sometimes rebuild

their futures, and protect what matters. We are focused on gaining a better understanding of what our customers need and expect from us as at every interaction and conduct more than one million surveys each year to gather feedback on their experiences with us. We also track how likely it is for them to recommend our brands via the Net Promoter Score (NPS) survey. The insights we receive help us to improve our products and services to better meet our customers' needs and determine where controls need to be in place to ensure mistakes are not repeated.

INVESTING IN DIGITAL AND DATA CAPABILITY

Suncorp is adapting to the changing landscape and consumer expectations by investing in technology such as artificial intelligence (AI), robotics and telematics to improve access, quality, simplicity, personalisation, design and delivery of products and services for our customers. We are prioritising digital initiatives for our customers, and designing simpler, more efficient processes for our business. We leverage comprehensive security capabilities to protect customers from cybercrime, and use data to proactively support our customers, including those at risk of hardship. Our Data Ethics Principles guide our use of data.

suncorp.com.au/contact-us/customer- relations

Responsible Banking and

Insurance Policy

Outlines our organisational-wide commitment to improving our business practices and decision-making, ensuring environmental, social and governance considerations are made and commits us to delivering products and services that are fit-for-purpose, accessible and affordable, as well as remunerating and incentivising with customers' best interests in mind suncorpgroup.com. au/uploads/Responsible-Banking-Insurance-Policy-Public.pdf

Financial Inclusion Action Plan

Outlines our actions to build the financial resilience and wellbeing of our customers and the broader community. suncorpgroup.com.au/corporate- responsibility/responsible-financial-services/financial-resilience

Access to affordable services

A suite of products designed to meet the needs of low-income earners. Our promotion, distribution and communication channels ensure customers can easily access the right products. suncorpgroup.com.au/ corporate-responsibility/responsible-financial-services/access-to-affordable-services

Natural Disaster Customer

Response Plan

Details our approach to supporting our customers in the event of major natural disasters and weather events. suncorpgroup.com.au/cr/natural- disaster-response

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21	Suncorp 2019-20 Responsible Business Report

Case

Study

Read more about Suncorp's response to the Australian bushfires at suncorpgroup. com. au/news/australian- bushfire-updates

OUR PROGRESS

RESPONDING IN TIMES OF NEED

This year Suncorp responded to large-scale natural disasters including the Australian bushfires, floods and storms, and the COVID-19 pandemic, which together have seen many of our customers and communities impacted throughout the year. Suncorp remains committed to supporting both their immediate needs and long-term recovery.

COVID-19 PANDEMIC

As the COVID-19 pandemic emerged, Suncorp quickly evolved its ways of working, activating its business continuity plan to protect its people, customers and business. New solutions and a suite of support packages were offered to ensure customers remain protected and their financial needs are met during these challenging circumstances. As at 30 June 2020, we provided discounts and premium waivers to 11,000 home insurance customers and 20,000 motor insurance customers, and supported 14,400 home and business loan customers under temporary deferral arrangements. In early June, the Bank commenced three-monthcheck-ins with impacted home loan customers and by 31 July 2020, approximately 51 per cent of accounts receiving temporary deferral arrangements were returning to normal repayments. As at 30 June 2020, the Wealth business had facilitated approximately $99 million of early superannuation payments to around 13,000 members. As at 31 July, a further $66 million of early superannuation payments had been facilitated to 8,300 members. More than 38,000 online applications for hardship and support were received from customers. We work closely with consumer advocates to assist customers whom have suddenly found themselves in a vulnerable position, many for the first time in their lives.

AUSTRALIAN BUSHFIRE CRISIS

The bushfire crisis over the Australian summer saw widespread destruction across the country, impacting Suncorp customers, employees and communities. Suncorp's national resources, including support teams, assessors and builders, were deployed to affected communities as soon as it was safe to do so, with measures put in place to assist our banking and insurance customers, including financial relief and on-the-ground claims support. We provided wellbeing support for our people and

introduced paid emergency volunteer leave for those assisting as part of the volunteer group relief efforts.

While the COVID-19 pandemic added to the challenges faced by bushfire-affected customers, we have maintained our focus in getting them back on their feet as quickly as possible. We implemented WebChat capabilities, extended online claims functionality, used drones to complete roof inspections and offered virtual claims assessments for commercial and consumer property customers to keep the process moving while protecting the health and safety of all involved.

As at 30 June 2020, Suncorp Group had completed 88 per cent of home and 86 per cent of motor insurance claims for customers impacted by the summer bushfires.

IMPROVING OUR BUSINESS PRACTICES

In 2019-20, we transitioned to the improved General Insurance Code of Practice and made further enhancements in the Bank to support customers and commenced implementation of our Responsible Banking & Insurance Policy.

Insurance

Suncorp worked closely with the Insurance Council of Australia to shape the updated General Insurance Code of Practice and led the industry in implementing improvements ahead of the

1 July deadline. Key improvements include:

transparency of premium changes for retail and small business customers and simpler communications that help consumers understand any changes in their policies and premiums
enhanced support for customers experiencing vulnerability and hardship through process improvements, system updates and specialist training for our teams, suppliers and distributors
launch of a Domestic and Family Violence statement that includes greater protections for survivors with measures to protect the contact details and addresses for joint policy holders and the garaged address of any mobile assets held by the survivor
specialist support services for customers who are subject to domestic and family violence, including fairer claims outcomes for those impacted by violence, addictions or mental illness.

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22	Suncorp 2019-20 Responsible Business Report

Responsible financial services

Bank

Following implementation of the Australian Banking Association's Banking Code of Practice (Code) on 1 July 2019, Suncorp has continued to enhance its processes, products and services to provide greater financial protections to our customers. During 2019-20 Suncorp:

ceased charging default interest on agricultural loans while farmers are affected by drought or natural disaster
extended protections to small business loan guarantors and clarified the restrictions on non-monetary defaults on small business loans
removed fees relating to informal overdrafts and dishonoured transactions on basic, low fee or no fee accounts for concession card holders, with basic accounts unable to become overdrawn in most situations
removed account-keeping fees associated with personal and business deposit accounts.

Supporting Customers Experiencing Vulnerability

This year, Suncorp made solid progress in improving support for customers experiencing vulnerability, a core element of our Financial Inclusion Action Plan and a focus for recent industry code of practice updates following the Royal Commission.

To support the implementation of Suncorp's Responsible Banking

Insurance Policy, a Customer Vulnerability Standard and supporting guidelines were developed to help our teams navigate complex issues facing customers including financial hardship, domestic and family violence, scams and fraud, and financial elder abuse. Our guidelines and information on financial hardship, domestic and family violence and general support services for customers in need is available on our brand websites.

We continued to build awareness and capability across our workforce through our dedicated vulnerability training, with more than 11,000 employees, suppliers and distributors trained to date. This year, all New Zealand employees completed the vulnerability awareness training, with advanced training undertaken by customer facing teams and key leaders. A centralised Community of Practice was established to share learnings and build knowledge and skills about specific areas of vulnerability, with expert coaching sessions delivered to provide deeper insights into complex issues.

Our dedicated customer vulnerability specialist teams assisted more than 2,000 insurance and banking customers, providing flexible, tailored, end-to-end case management for customers requiring additional support, including referral to qualified social workers and specialist services. This year Suncorp's Office of the Customer Advocate reviewed 68 complex customer cases that were escalated to them.

Complaints management

Despite increased numbers of insurance claims as a result of the Australian bushfires, floods and storms, and the ongoing financial pressures of drought and impacts of the COVID-19 pandemic, Suncorp maintained its focus on delivering better customer experience and complaint service levels, resolving

95 per cent of our complaints received by our customer-facing teams within five business days. The New Zealand business used analysis of external dispute resolution outcomes and industry themes to strengthen its complaints reporting.

Suncorp is investing in an enterprise-wide approach to complaints management, including improved systems and capability building across the Group to enhance the quality of our controls and data and the delivery of timely and meaningful outcomes for our customers.

INVESTING IN DIGITAL AND DATA

This year, Suncorp advanced its digital capability and experience for customers, with the COVID-19 pandemic prompting fast- tracking of digital solutions. We introduced a dedicated digital hub for those impacted by the pandemic, delivered an automated online application process for customers to make hardship applications, and extended the capabilities of WebChat and our intelligent virtual assistants to respond to customer queries.

Our ongoing investment in automation boosted our ability to deliver in a consistent and timely manner for our customers and meet their increased demand for digital solutions. These measures also enhanced our support for customers impacted by bushfires and storms across Australia. At the height of the bushfire and storm season, almost 34 per cent of claims were made online. This year, digital self-service transactions increased by 25 per cent year on year, and claims lodged online increased by 19 per cent.

This year, a retirement simulator digital tool was introduced for current and future superannuation customers to assess their retirement outcomes and develop appropriate superannuation strategies. We also introduced an online tool to help members better understand the impacts of any early release of superannuation on their balance.

Suncorp continued to invest in AI and machine learning to help inform accurate pricing for its insurance products, including advanced modelling for bushfires, storms and cyclones.

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23	Suncorp 2019-20 Responsible Business Report

Engagement and advocacy: building financial resilience and advocating for things that matter

Suncorp Group Customer Advocate, Matt Leslie

Suncorp participates in a wide range of industry roundtables and community forums to share best practice and discuss solutions. This year we hosted events to hear important insights from consumer advocates and our customers.

We also advocated for greater awareness and measures to protect customers against scams and worked to build the financial resilience of our community.

Consumer Advocate Day 2020

In March 2020, Suncorp hosted its annual Consumer Advocate Day in Melbourne with more than 35 consumer advocates representing a wide range of community groups in attendance. The event provided an opportunity for two-way dialogue between Suncorp leaders and consumer advocates, who share important insights into the issues impacting people in the communities we serve. Hosted by Suncorp's Group Customer Advocate and attended by Suncorp's senior executives, this year the discussions centred on protection for customers experiencing vulnerability, regulatory reform and the impacts of climate change.

Driving industry change to address scams

To better protect our customers against the rise of scams in Australia, this year Suncorp took the lead in the banking sector to work with Queensland University of Technology's (QUT) School of Justice and Dr Cassandra Cross, an expert in the field of fraud and scams. Suncorp and QUT hosted a

Scam Prevention Workshop that brought together more than 50 experts from across the justice, finance and government sectors to explore the impact scams have on Australians and how we can work together to better protect customers from the threat of this criminal activity. Learn more at suncorpgroup. com.au/news/community/suncorp-qut-scam-prevention- workshop

Collaborating for Financial Inclusion

Suncorp is an active member of the Financial Inclusion Action Plan initiative and Thriving Communities Partnership (TCP), both aimed at bringing together government, community and businesses to help drive greater inclusion, support and financial wellbeing for all Australians.

Strengthening access to essential services

Suncorp's AAMI brand has partnered on the development of a new initiative with Global Sisters, a not-for-profit organisation that supports women who are often financially excluded to become financially independent. Together we have tailored the AAMI products to be suitable for micro enterprises requiring a simple, low cost insurance solution. The product enables 'Sisters' within the community to access public and product liability, and property cover for business equipment and stock, as they build their enterprises. It includes lower priced premiums, one excess- free claim per period of insurance, and a dedicated support team to help eligible customers through the process. The offering will help remove some of the barriers that have prevented this community from accessing business insurance and achieving financial independence in the past.

Suncorp also joined forces with Thriving Communities Partnership to release the research report: Disaster Planning and Recovery Collaborative Research Project. The report focuses on the experiences of people and local businesses in Townsville immediately following the devastating North Queensland Monsoon Disaster in 2019. The community's experiences post event will assist in forming a valuable understanding of how different interactions with essential services and other organisations can vitally affect people's recovery following a crisis. Read the report at thriving.org.au/what-we-do/disaster-planning-and-recovery

Financial education for our newest Queenslanders

This year Suncorp continued to work in partnership with Multicultural Australia to build the financial resilience of refugees and new migrants living in Queensland. We piloted a financial literacy program with 39 clients in Toowoomba and Brisbane, which was adapted for their needs and designed to help them navigate financial services in Australia.

Building financial fitness in New Zealand

This year Suncorp New Zealand worked with ANZ to host more than 110 of our people at a series of Financial Fitness workshops, designed to help them better understand and manage their financial future. In addition, Suncorp New Zealand participated in the Insurance Council of New Zealand's annual Insurance Day event during Money Week, spending the day with 40 Pasifika school students to help them learn about risk and how insurance can help protect people.

FINANCIAL INCLUSION ACTION PLAN

Suncorp's Financial Inclusion Action Plan underpins our commitment to grow inclusively and build the financial resilience and wellbeing of our customers and broader community. Find at: suncorpgroup.com.au/corporate- responsibility/responsible-financial-services/financial-resilience

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24	Suncorp 2019-20 Responsible Business Report

Responsible financial services

OUR PERFORMANCE

OBJECTIVE	PERFORMANCE HIGHLIGHTS	2019-20 PERFORMANCE METRICS	FUTURE ACTIVITY	2020-21 TARGETS

CUSTOMER EXPERIENCE, FAIRNESS AND VALUE

Improve the satisfaction and advocacy of our customers

Commenced implementation of Responsible Banking & Insurance Policy to strengthen our approach to responsible financial services practices

Scoped design of portfolio ESG3 risk assessments

Integrated systems and processes to further improve complaints processes

95%

Level 1 complaints resolved in 5 days1

71%

Level 2 complaints resolved in 30 days2

Continue to implement Responsible Banking & Insurance Policy and review and develop Sensitive Sector Guidelines

Conduct portfolio ESG3 risk assessments

Maintain proportion

year-on-year of Level 2

complaints resolved in 30 days

FINANCIAL RESILIENCE AND SUPPORT FOR VULNERABLE PEOPLE

Improve the financial inclusion and financial resilience of our customers

Implemented Customers Experiencing Vulnerability Strategy, Standards and Guidelines

Continued financial inclusion and customer vulnerability training for Australian employees and extended to New Zealand teams

Expanded community sector partnerships to improve external referral pathways for customers experiencing vulnerability

Piloted Financial Literacy workshops with Multicultural Australia clients to build financial resilience and economic participation for culturally diverse communities

Launched AAMI Micro Enterprise Insurance in partnership with Global Sisters

117,329
customers assisted during
financial hardship4
5,389	Continue to evolve Customers Experiencing Vulnerability Strategy and

customers with Essentials by	Roadmap

AAI Insurance	Continue to implement Standards and Guidelines to support customers
12,294	experiencing vulnerability including domestic and family violence,
financial vulnerability and hardship, wellbeing and accessibility issues

customers with Everyday	Continue product development of Sorry Business Savings and Insurance
Essentials bank account	for Aboriginal and Torres Strait Islander consumers
25,079
members with Everyday
Super balance

RESPONSIBILITY OUR

1. Handled by customer-facing teams. Excludes New Zealand 2. Managed by Customer Relations Team. Excludes New Zealand 3. ESG - environmental, social and governance 4. Excludes New Zealand and Australian Life Business. General Insurance 'Peace of Mind' support calculated at a policy level

25	Suncorp 2019-20 Responsible Business Report

Sustainable growth

OUR FOUNDATIONS

Climate Change Action Plan

We seek to innovate and optimise economic, social and environmental outcomes throughout our business and value chain.

OUR APPROACH

To create sustainable value, Suncorp adapts to evolving market conditions. We take a long-term view and actively respond to changes in the economy, society and the environment. We manage our impacts to ensure the sustainable growth of both our business and the communities in which we operate.

RESPONDING TO CLIMATE CHANGE AND MANAGING OUR ENVIRONMENTAL FOOTPRINT

Suncorp conducts business in a way that protects and sustains the environment. We continue to reduce our environmental impact and be transparent about our environmental performance. Climate change presents strategic and financial risks and opportunities for our organisation and our community. Suncorp is committed to playing our part in reducing carbon emissions, preparing for the physical impacts of climate change and supporting the transition to an economy that achieves net-zero emissions by 2050.

COLLABORATING FOR ACTION

Suncorp works with and participates in industry initiatives to address climate change including the Climate Measurement Standards Initiative, Climate-KIC, Insurance Council of Australia Climate Change Action Committee, Business Council of Australia Adaptation and Resilience Working Group, ABA Sustainability Working Group and the Actuaries Institute Climate Change and Affordability Working Group. Suncorp

is also collaborating with the newly established Minderoo Foundation Wildfire and Disaster Resilience Program. Suncorp New Zealand is a member of the Sustainable Business Council and Climate Leaders Coalition. We are a signatory

to the Principles for Responsible Investment, Principles for Sustainable Insurance and Principles for Responsible Banking, international frameworks committed to driving collective action and sustainable practices across the finance sector.

Details our actions for for managing climate-related risks and opportunities, including our Environmental Performance Plan to proactively reduce our environmental footprint. suncorpgroup. com.au/corporate-responsibility/sustainable-growth/reducing-environmental-impacts

Responsible Investment Policy

Describes our approach to the long-term sustainability of investment returns and management of environmental, social and governance risks and opportunities in our investment portfolios, our approach to impact investing and the governance of proxy voting activity. suncorpgroup.com. au/corporate-responsibility/sustainable-growth/responsible-banking-insurance- investing

Responsible Banking and Insurance Policy

Outlines how we integrate environmental, social and governance considerations into business practices and decision making. suncorpgroup.com.au/uploads/ Responsible-Banking-Insurance-Policy- Public.pdf

Sensitive Sector Guidelines

Ensure consistent decision making across our investment, banking and insurance portfolio on issues including fossil fuels, tobacco and controversial weapons. suncorpgroup.com.au/corporate- responsibility/sustainable-growth/responsible-banking-insurance-investing

Supplier Code of Practice

Outlines the standards expected of our suppliers in Australia and New Zealand, ensuring our supply chain is cost effective, innovative, responsible, fair and manages ethical business practices, human rights risks and workplace conditions, product safety and impacts on the environment appropriately. suncorpgroup.com.au/ about/procurement

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26	Suncorp 2019-20 Responsible Business Report

2030 TARGET

Sustainable growth

51% absolute reduction in Scope 1 and Scope 2 GHG emissions1

Case

Study

Read more about Suncorp's Storm Ready Streets program at suncorpgroup. com.au/news/community/ suncorp-storm-ready-streets-community-program

Our progress

Suncorp continues to proactively address climate-related risks and opportunities and embed environmental, social and governance considerations across our value chain.

CLIMATE-RELATED FINANCIAL DISCLOSURES

Suncorp continues to integrate climate change considerations into governance, risk management and strategy processes in line with the Financial Stability Board's Task Force on Climate- related Financial Disclosures framework (TCFD), to which Suncorp became a signatory in 2018.

This year Suncorp further investigated the emergence of climate-related risks and opportunities through scenario analysis of different emission concentration pathways and at fixed points in time. A copy of our full TCFD report is available at suncorpgroup.com.au/corporate-responsibility/reports.

REDUCING ENVIRONMENTAL IMPACTS

This year Suncorp continued to reduce operational emissions and waste, set renewable energy targets and refreshed our Environmental Performance Plan (EPP) for our Australian and New Zealand operations. This three-year plan set our priorities in becoming a low-emissions and resource-efficient organisation focusing on:

Reducing emissions: We are accelerating efforts to reduce Suncorp's emissions and overall costs, aligned with global action on climate change
Reducing waste: We are developing a group-wide approach to resource efficiency and measurement which minimises waste and maximises opportunities for reuse and recycling

CLIMATE CHANGE

ACTION PLAN

Suncorp's Climate Change Action Plan matures our assessment, management and disclosure of climate change risks and opportunities.

Find at suncorpgroup.com.au/ corporate-responsibility/reports

Creating a sustainable workplace: We are developing programs and inspiring spaces that engage and enable our people to have a positive environmental impact.

This year we partnered with our suppliers on sustainability innovation: with our fleet vehicle provider to switch to fuel-efficient hybrid cars and use telematics to encourage good driving behaviours; our building managers to install rooftop solar in two locations; and our event venues to reduce waste. We worked with Qantas Future Planet to make our annual Business Leaders' Summit carbon neutral and Simply Cups to introduce coffee cup recycling at all major commercial offices.

To fulfil our target to reduce emissions by 51 per cent by 2030, we developed a Renewable Energy Strategy which saw Suncorp join RE100 and commit to purchasing 100 per cent renewable electricity by 2025.

BUILDING NATURAL HAZARD RESILIENCE

Suncorp continues to help our customers and communities be aware, protected, and prepared for natural disasters, and to better adapt to our changing climate. We do this through our advocacy and collaboration with key industry, government and community stakeholders and through products that recognise and reward customers' own resilience building. Suncorp's Natural Hazard Resilience Program focuses on:

Deepening climate change and natural hazard risk insights and risk intelligence
Engaging with stakeholders and contributing to the development of community-level risk reduction
Extending our capability and product solutions.

During the year, Suncorp partnered with researchers to deepen climate change and natural hazard risk insights to enable stronger risk selection and pricing. We were a leading voice in advocating for greater government investment in infrastructure to protect communities from natural hazards. Through our Storm Ready Streets program we worked with community partners to raise awareness of natural disaster risk and rewarded Queensland households, residents and businesses that actively prepared for extreme weather. We continued to offer our Cyclone Resilience Benefit to homeowners, with 45,749 customers receiving insurance premium reductions.

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1. From 2017-18 baseline for Suncorp corporate operations in Australia and New Zealand. Calculated using science-based target methodologies.

Suncorp 2019-20 Responsible Business Report

RESPONSIBLE UNDERWRITING, LENDING AND INVESTMENT

Sensitive Sector Guidelines

In 2020, we strengthened our Fossil Fuels Sensitive Sector Guideline to cease underwriting, financing or directly investing in new oil and gas projects, phase out underwriting and financing oil and gas by 2025, and directly investing by 2040. This builds on our commitment to phase out of existing thermal coal by 2025.

Under Suncorp's Responsible Investment Policy, our external investment managers are required to apply a shadow carbon price to their analysis of investment opportunities to manage the risk of stranded assets as we transition to a net-zero emissions economy.

As at 30 June 2020, fossil fuel extraction and electricity generation activities made up less than 0.1 per cent of general insurance gross written premium. Fossil fuel exposure is less than 0.5 per cent of our insurance and shareholder investment assets, and less than 1.5 per cent of total investment assets under management (i.e. inclusive of wealth and investment assets managed on behalf of third parties).

Suncorp's commercial lending portfolio has no exposure to fossil fuels via either extraction or power generation. Suncorp will continue to underwrite, lend to and invest in companies whose business is clearly consistent with the transition to a net-zero emissions economy by 2050.

Under our Tobacco and Controversial Weapons Guidelines, we continued to exclude tobacco, recreational cannabis, land mines, cluster munitions, biological and chemical weapons from our investment portfolios.

Our Responsible Investment Policy commitments to uphold the United Nations Universal Declaration of Human Rights also saw several companies excluded from our investment portfolios. As a result of improvements in eliminating human rights abuses in supply chains and through the Responsible Cobalt Initiative in particular, the exclusion of some companies was lifted this year, although much work remains in eliminating child labour and forced labour from value chains.

Impact investing

In support of our Responsible Investment Policy, Suncorp proactively seeks opportunities to engage in social impact investing that meets both our investment and social impact assessment criteria. In 2019-20, Suncorp expanded its social impact investments by becoming one of the first investors in the Synergis Disability Housing Fund, which aims to address the substantial undersupply of housing for people living with a disability. It's estimated that 12,000 National Disability Insurance Scheme (NDIS) participants currently have no access to much-needed specialist disability housing.

We remain committed to investments in renewable energy infrastructure and low-carbon solutions that deliver both financial and environmental outcomes. During the year, Suncorp's $15 million commitment to the Palisade Renewable Energy Fund became fully drawn down. Palisade completed the development of a large-scale solar energy project in Townsville and progressed the Granville Harbour wind project in Tasmania. As at 30 June 2020, Suncorp's investment in low-carbon solutions was $236 million.

The transition to a net-zero emissions economy offers increased opportunity for low-carbon investment. Suncorp actively participates in a global working group with the Science Based Targets to develop standards for the measurement of Scope 3 carbon emissions in the financial sector.

Proxy Voting Governance

Suncorp is committed to ensuring all proxies are voted in a manner consistent with Suncorp's Responsible Investment Policy and Corporate Responsibility Principles.

In 2019-20, Suncorp undertook a continuous improvement- focused review of our Proxy Voting Principles, with a strengthened commitment to the independence of the Chair, properly constituted polling on substantial matters, and communication about the Principles that will guide how we vote on shareholder sponsored resolutions. We also finalised and published our Proxy Voting Summary, which includes our Principles. This year, Suncorp voted all eligible proxy resolutions, voting at 336 meetings on 2,766 resolutions in 21 countries.

Since becoming a signatory to the Principles for Responsible Investment (PRI) in 2019, Suncorp completed its first PRI Transparency Report this year, available at unpri.org/signatory- directory/suncorp-group/4682.article.

Sustainable growth

Case

Study

Learn more about the Synergis Disability Housing Fund at suncorpgroup.com. au/news/news/suncorp- invests-in-Synergis-NDIS-disability-housing

RESPONSIBLE SUPPLY CHAIN

Addressing modern slavery

Suncorp continues to proactively respond to the Modern Slavery Act 2018 (Cth), by identifying and managing the direct and indirect risk of human rights abuses, such as modern slavery and child labour, throughout our value chain. This includes our people, our customers, suppliers and their workforces, as well as monitoring financial transactions and reporting any suspicions of criminal activity associated with them.

In 2019-20, Suncorp commenced the inclusion of modern slavery risks and controls into existing systems and processes with initial focus on procurement, outsourcing and investments. We engaged human rights specialists to lead modern slavery training for key teams across our business to drive awareness about the issue and legislation, and build capability in identifying, managing, mitigating and reporting risks of modern slavery. We also participated in the development of the ABA's Modern Slavery guidance for member banks. Suncorp has developed processes to identify and improve how we operate and partner to reduce instances of modern slavery. Suncorp is establishing modern slavery contract clauses in all new supplier agreements, including a requirement for key suppliers to complete annual statements of exposure and risk management.

Suncorp will publish a Modern Slavery Statement in 2020-21 and report on how we are identifying and addressing the risks of modern slavery in our operations and supply chain, across Australia and New Zealand.

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28	Suncorp 2019-20 Responsible Business Report

Sustainable growth

OUR PERFORMANCE

OBJECTIVE	PERFORMANCE HIGHLIGHTS	2019-20 PERFORMANCE METRICS	FUTURE ACTIVITY	2020-21 TARGETS

RESOURCE USE AND EFFICIENCY

Reduce

Suncorp's environmental footprint

Developed a Renewable Energy Strategy and joined RE100

Refreshed our Environmental Performance Plan

Launched Guidelines for Real Estate Resource Efficiency and Sustainable Events

Reduced land transport emissions through fuel-efficient hybrid cars and telematics

Continued Sustainable Suncorp and Here for Good staff engagement programs

4.6%

reduction in electricity

consumption

23.5%

reduction in land transport emissions from fuel-efficient hybrid cars and telematics

Implement Renewable Energy Strategy

Implement refreshed Environmental Performance Plan

ADDRESSING CLIMATE CHANGE

Reduce Suncorp	Met targets to reduce Scope 1 and Scope 2 GHG
greenhouse gas
emissions through carbon reduction initiatives
(GHG) emissions


Build customer	Continued to implement our Climate Change
and community
Action Plan
resilience to
Continued advocacy and community engagement
natural disasters
	through our Natural Hazard Resilience Strategy

Prepare for	Completed first phase of climate change
a net-zero	scenario analysis
emissions	Integrated the UNEP FI Principles for
economy
Sustainable Insurance

14.41%

cumulative reduction in Scope 1 and Scope 2 GHG emissions

45,749

customer policies received premium reduction from Cyclone Resilience Benefit

Continue carbon reduction initiatives in real estate including consolidation, energy efficiency, and vehicle fleet

Refresh our Climate Change Action Plan

Continue climate change scenario analysis

Finalise discovery phase of Natural Hazard Resilience Program to expand product, customer and community solutions to reduce risk

51%

absolute reduction in

Scope 1 and Scope 2 GHG

emissions by 20301

Net-zero

Scope 1 and Scope 2

GHG emissions by 2050

RESPONSIBILITY OUR

RESPONSIBILITY IN OUR VALUE CHAIN

	Published our Proxy Voting Principles
Optimise our	Finalised and published our Proxy Voting Summary
social and	Embedded Supplier Code of Practice in all new
environmental
supplier agreements and engaged existing material
impact across
suppliers in Australia
our value chain
Committed $2 million to Synergis Fund for social

	impact through specialist disability housing

98% of new and 100% of material and strategic suppliers in Australia accepted Supplier Code of Practice

91% of total assets under management (AUM)

covered by Responsible Investment Policy

99.4% proxies voted

$238m in social and low carbon investments

Conduct portfolio ESG risk assessments

Publish a Modern Slavery Statement that addresses modern slavery risk in our operations and supply chain

95%

of invoices paid within 30 days2

of total shareholders' funds

in social and low carbon

impact investments3

1. From 2017-18 baseline for Suncorp corporate operations in Australia and New Zealand. Suncorp previously published a target to reduce emissions intensity for our industrial operations (Suncorp Insurance Ventures). As Capital S.M.A.R.T. and ACM Parts were sold on 31 October 2019 this intensity-based target for Suncorp Insurance Ventures is no longer relevant and will no longer be tracked 2. From receipt of a valid invoice. Excludes Suncorp Insurance Ventures. Excludes New Zealand and suppliers with payment terms beyond 30 days. 3. Based on Global Investor Coalition definition.

29	Suncorp 2019-20 Responsible Business Report

Resilient people and communities

OUR FOUNDATIONS

We respect human rights and invest in the wellbeing and resilience of our people and communities. We are there for our people and our communities in times of need.

Our approach

Suncorp is committed to building the financial, social and natural hazard resilience of our people and communities. We aspire to have an inclusive culture and diverse workforce. We support our people in the causes they care about and actively promote their involvement in the community.

INVESTING IN THE COMMUNITY

We work in partnership with a range of community organisations and encourage our employees to be active in the community through our Brighter Futures employee giving program which promotes relationship-building, giving and volunteering opportunities, with matched-giving by Suncorp.

RESPECTING HUMAN RIGHTS

Suncorp remains committed to human rights and is a signatory to the United Nations Global Compact which commits to supporting and protecting human rights, eliminating all forms of forced and compulsory labour and the effective abolition of child labour. Suncorp's Responsible Banking and Insurance Policy, Responsible Investment Policy, Code of Conduct and Supplier Code of Practice help us operationalise our human rights commitments.

FOSTERING FLEXIBILITY, INCLUSION AND DIVERSITY

At Suncorp, we build inclusion by providing an environment where everyone can be themselves and feel valued, involved and respected for their perspectives and contribution. Flexibility is an important part of Suncorp's culture and even before COVID-19 more than 80 per cent of our workforce took advantage of flexible working practices on a regular basis. As a result, Suncorp has a more engaged workforce, reduced absenteeism and workplace stress, and a greater ability to respond to the changing environment.

Safety and Wellbeing Policy

Promotes a culture of integrated, systematic management of safety and wellbeing. suncorpgroup.com.au/corporate- responsibility/resilient-people-and-communities/employee-safety-and-wellbeing

Equal Employment

Opportunity and Diversity

Policy

Fosters inclusion by providing an environment where everyone can be themselves and feel valued, involved and respected for their perspectives and contribution. suncorpgroup.com.au/corporate- responsibility/resilient-people-and-communities/diversity-and- inclusion

Suncorp Group Enterprise Agreement

Provides minimum terms and conditions of employment in Australia that support a culture that makes Suncorp a great place to work. suncorpgroup.com.au/ corporate-responsibility/resilient-people-and-communities/enterprise-bargaining

Community Investment

Strategy

Aims to make a positive impact on the financial, social and natural hazard resilience of the communities in which we operate. suncorpgroup.com.au/corporate- responsibility/resilient-people-and-communities/community- investment

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30	Suncorp 2019-20 Responsible Business Report

2022 TARGET

Resilient people and communities

0.7% pre-tax profit invested in the community

Our progress

Suncorp is building resilience for the major changes our people and communities face. This includes preparing for the workforce of the future, driving an inclusive and diverse workplace, and investing in the financial, social and natural hazard resilience of our customers and the community.

BUILDING A PURPOSE-DRIVEN CULTURE

During 2019-20, we refreshed our purpose to clearly articulate why we exist: building futures and protecting what matters. Suncorp's culture reflects the commitment of our people and is centred on three key principles:

Doing the right thing: We are a high-performing team that prioritises honest and fair conduct. We manage risks

while delivering results.

Caring for others: We are collaborative, inclusive

and we care about our customers, our people and the communities in which we operate. We are supportive of each other to safely achieve our goals.

Being courageous: We are purpose-led and embrace accountability. We are customer-driven and adapt to

evolving stakeholder needs, speaking up when it's needed.

This year 81 per cent of Suncorp's employees participated in our engagement and culture survey with our engagement score lifting to 67 per cent. Our people highlighted strengths such as our flexible and inclusive work environment, our customer- centric culture and genuine care displayed by our leaders for their teams, while greater focus is needed on supporting our people through change and innovation and ensuring the right resources are available to achieve the best outcomes.

LEADING OUR PEOPLE THROUGH CHANGE

As a large employer, Suncorp supports our workforce to build the skills needed to succeed in the future, ensuring they have the right capabilities to thrive in the economy of the future. Our learnings in responding to the COVID-19 pandemic are informing our workforce planning and new ways of working, so we are in the best possible shape as we emerge from the crisis.

Staying connected through COVID-19

The health and safety of our people and our customers is our priority. We moved the majority of Suncorp's workforce to work from home as the COVID-19 pandemic emerged, using our digital capabilities and well-established flexible working arrangements. We rapidly deployed computer equipment, remote access and digital licences to ensure our people were properly equipped, could continue to work and serve our customers, and felt connected and supported. We implemented new social distancing protocols and hygiene practices, especially for our store teams who continued to serve our customers in our retail locations. We deployed a wide range of leadership and resilience tools and training, regular pulse-checks on the wellbeing and safety of our people, and new digital communication channels to keep our people informed.

Workforce of the future

Suncorp's Future Ready learning program supports our people to manage their career and build skills for the future working environment. In 2019-20, more than 1,100 employees participated in Introductory Pathways and Accelerated Pathways for eight key capabilities. Future Ready has also hosted 50 Thrive personal resilience workshops and 30 My Future Career workshops.

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31	Suncorp 2019-20 Responsible Business Report

COMMUNITY INVESTMENT

In 2019-20 Suncorp invested $10.3 million in our communities. This includes $4.4million in strategic community partnerships, $1.3 million in support for communities impacted by COVID-19, $1 million in matching for employee giving and $1.8 million in other vital cash contributions.

TOTAL COMMUNITY INVESTMENT $10, 317, 049

Annual cash contributions $7,224,210

COVID-19 cash contributions $1,320,000

Management costs $1,081,279

Volunteering time $691,560

Bushfire relief and recovery

Suncorp donated $560,000 to support the immediate and long- term needs of communities affected by the 2019-20 bushfires across Australia. More than 2,000 Suncorp employees donated $80,000 of their own money which was double matched by Suncorp. Teams also volunteered to pack food hampers which provided relief to firefighters on the frontline. Suncorp introduced unlimited paid emergency response leave for employees who are members of volunteer organisations, to ease the financial challenges for those who volunteer during an emergency or natural disaster. Suncorp also offers several other flexible leave options and counselling for employees who live in bushfire-affected areas.

BUSHFIRE DONATIONS

$200k	to the Foundation for Rural and Regional Renewal
$100k	to the Australian Red Cross
$100k	to volunteer firefighting organisations in New South Wales,
Victoria, South Australia, Queensland and Western Australia

$160k	to double match our Employee donations

Supporting our communities through COVID-19

As a result of COVID-19, Suncorp donated $1 million to

The Smith Family in Australia to help combat the growing digital divide being faced by vulnerable school students and families. The donation saw 650 digital inclusion packs delivered to kids in need across the country, giving them access to a device, the internet and support they need to remain connected to their teachers and classmates. Suncorp New Zealand donated NZ$100,000 to Shine to help children affected by domestic violence stay connected with their schools and online learning.

We adapted the way we engage our customers through our partnership with Netball Australia providing virtual netball clinics for young Australians, and through our partnership with Financial Basics Foundation to provide free access to the financial literacy program Suncorp ESSI Money Challenge.

Local charity partnerships

This year, Suncorp employees selected 14 local charities to partner with across Australia and New Zealand to address issues they care most about in the communities where they live and work. These charities provide support for those experiencing mental health issues, homelessness, family violence, cancer, childhood illness, and drought.

Measuring social impact

This year Suncorp commissioned a review of current research on the most effective interventions for building the social, financial and natural hazard resilience of individuals and communities. This will inform the development of Suncorp's theory of change and impact measurement framework and provide Suncorp and its community partners a consistent approach to enhance the measurement of outcomes achieved for individuals and communities.

Resilient people and communities

RESPONSIBILITY OUR

Case

Study

This year Suncorp employees raised more than $1 million for important causes - and Suncorp matched it, bringing the total to more than

$2 million. Read more at suncorpgroup.com.au/news/ news/suncorp-matches-1-million-in-employee-giving

32	Suncorp 2019-20 Responsible Business Report

Resilient people and communities

Our employees marched proudly with the Broken Heel Festival float at Mardi Gras

Davor Strbac has won Veteran Employee of the Year at the Prime Minister's Veterans Employment Award

Clontarf Foundation

INCLUSION AND DIVERSITY

Advancing Reconciliation

This year, Suncorp strengthened its partnership with Clontarf Foundation, hosting career exposure days and work experience opportunities to improve education and employment outcomes for young Indigenous men. Suncorp attended Clontarf's employment forums where students broaden their horizons, learn new skills and discover a range of career options. Suncorp leaders also participated in immersive cultural experiences with the Clontarf Academies, deepening their understanding of the work Clontarf does to prepare students for transition from school to employment. Suncorp employed a Clontarf Foundation graduate into its store network this year.

Cultural diversity

Through Suncorp's partnership with Multicultural Australia, more than 56 employees participated cultural awareness training, cultural immersion, career mentoring and volunteering opportunities, which all help our people to better serve our diverse customers and work within diverse teams. We also supported employment pathways for Multicultural Australia's clients through job readiness and career mentoring sessions delivered to more than 400 people this year.

Awards

This year, Suncorp's partnership with Multicultural Australia received the Minister's Choice Award for Outstanding Engagement at the Multicultural Queensland Awards for its contributions to promoting diversity and inclusion. Suncorp New Zealand was awarded the Excellence in Workplace Diversity and Inclusion from the Australia and New Zealand Institute of Insurance and Finance.

Employee Resource Groups

Suncorp's Employee Resource Groups (ERGs) are networks created by our people, for our people. They foster a diverse and inclusive workplace and bring employees together around a common purpose, interest or background. This year Suncorp formed two new ERGs:

enAble was formed to support people with disability and accessibility requirements. It empowers members to achieve their best, showcase their abilities, helping to improve the experience for people with disabilities at Suncorp.

ARISE was formed to advocate for ethnic diversity within Suncorp and to ensure our teams at all levels reflect the communities in which we operate.

Suncorp's existing ERGs span Veterans, Reserves and Defence Families; Women Connect; Evolve; Life-X for mature-age workers and Amplify; Suncorp's LGBTIQ+ community and their allies.

Gender equality

Suncorp continues to take great pride in being an industry leader for workplace gender equality, with a focus not just on leadership roles but all levels across our organisation. In 2019-20, Suncorp was recognised as an Employer of Choice for Gender Equality by the Workplace Gender Equality Agency for the seventh consecutive year.

Gender pay equity review

Following ongoing role pay equity and gender pay equity gap analysis conducted across the organisation, this year Suncorp introduced a target to reduce the gender pay gap by five percentage points over five years. Suncorp actively reviews role pay equity throughout the year and actions any issues identified through our remuneration review process.

International Women's Day

RESPONSIBILITY OUR

33	Suncorp 2019-20 Responsible Business Report

Resilient people and communities

OUR PERFORMANCE

OBJECTIVE	PERFORMANCE HIGHLIGHTS	2019-20 PERFORMANCE METRICS	FUTURE ACTIVITY	2020-21 TARGETS

EMPLOYEE HEALTH, SAFETY AND WELLBEING

	Refreshed our purpose statement and
	launched cultural principles
Minimise the risk of	Conducted employee engagement
illness and injury and	and pulse surveys
maximise the safety	Supported safety and wellbeing for rapidly
and wellness of our
expanded work from home arrangements,
people
instituted health protocols and workplace

	safety measures, and launched new resilience
	tools and training in response to COVID-19

Build the skills our

people need for today Expanded our Future Ready program and the jobs of the future

1.2

Lost-time Injury Frequency Rate

67%

employee engagement

$1,616

invested in learning and development

per full time equivalent

Embed our purpose and cultural principles

Continue proactive and adaptive safety and wellbeing programs that are responsive to risk, including continued COVID-19 impacts

Lost-time Injury

Frequency Rate at or

below Finance Industry

Group average

DIVERSITY, INCLUSION AND EMPLOYEE EXPERIENCE

Ensure our workplace is inclusive and our workforce reflects the diversity of our community

Refreshed our Reconciliation Action Plan

Delivered Leading Inclusively training

Formed new Employee Resource Groups for people with disability and accessibility requirements, and those from culturally diverse backgrounds

51%

Women in leadership

1.2%

of our people identify as

Aboriginal and Torres Strait Islander

Launch and implement

our refreshed Reconciliation Action Plan

Progress Indigenous Employment Pathways

Continue education and awareness campaign on gender pay equity and the gender pay gap

50% 48% 40%

women in leadership

by FY23 women in senior leadership

women on the Board

RESPONSIBILITY OUR

COMMUNITY INVESTMENT

Build the financial, social and natural hazard resilience of our people and communities

Refreshed local community partnerships as part of Brighter Futures employee giving program

Introduced unlimited paid emergency response leave for members of volunteer organisations

Developed an evidence base for a theory of change and impact measurement framework

$10.3m

invested in the community

11,526hours

volunteered by our people1

Test and deploy a theory of change and impact measurement framework to enhance social impact measurement in our community partnerships

0.7%

pre-tax profit invested in the community by 2022

1. Based on paid employee volunteer time

34	Suncorp 2019-20 Responsible Business Report

Our

Performance

35	Suncorp 2019-20 Responsible Business Report

Performance summary

Note: some performance has been impacted by COVID-19

Shareholder

PERFORMANCE		2020	2019	2018	2017	2016
Cash return on average shareholders' equity	(%)	5.9	8.4	8.0	8.4	8.2
Return on average shareholders' equity	(%)	7.2	1.3	7.7	7.9	7.8
Return on average total assets	(%)	0.95	0.18	1.08	1.11	1.08
Basic cash earnings per share	(cents)	59.01	86.24	85.20	89.30	85.18
Basic earnings per share	(cents)	71.93	13.54	82.17	83.84	81.19
Net profit after tax attributable to shareholders	($m)	9131	1751	1,059	1,075	1,038
General insurance gross written premium	($m)	9,952	9,811	9,559	9,456	9,031
Reported insurance trading result	(%)	8.9	11.6	12.1	11.8	9.9
Underlying insurance trading result	(%)	11.1	12.3	10.6	11.5	10.6
Bank total lending	($m)	58,005	59,293	58,716	55,324	54,280
Bank net interest margin	(%)	1.94	1.90	1.94	1.93	1.96
Bank cost to income ratio	(%)	57.3	56.2	54.7	52.7	52.5
Effective income tax rate	(%)	32.1	29.8	32.0	32.5	30.7
FINANCIAL STRENGTH		2020	2019	2018	2017	2016
Total assets	($m)	95,744	96,235	99,333	97,109	95,748
Net assets	($m)	12,784	13,133	13,973	13,790	13,570
Net tangible assets backing per share	($)	5.89	5.93	6.39	6.20	6.02
Group excess to common equity tier 1 capital target	($m)	823	989	448	377	346
General insurance group total capital ratio	(times PCA2)	1.68	1.85	1.84	1.77	1.67

Bank common equity tier 1 capital ratio	(% RWA3)	9.34	9.27	9.07	9.23	9.21
SHAREHOLDER SUMMARY		2020	2019	2018	2017	2016
Ordinary share price at end of year	($)	9.23	13.47	14.59	14.82	12.18
Number of ordinary shares at end of period	(million)	1,276	1,293	1,292	1,285	1,279
Ordinary dividend per ordinary share, fully franked	(cents)	36	70	73	73	68
Special dividend per ordinary share, fully franked	(cents)	-	8	8	-	-
Dividend payout ratio (excluding special dividend)	(%)	60.7	81.2	85.8	81.9	79.8
Dividend payout ratio (including special dividend)	(%)	60.7	90.5	95.2	81.9	79.8
Market capitalisation	($m)	11,776	17,491	18,945	19,158	15,671

1. 2020 impacted by the sale of Capital S.M.A.R.T and ACM Parts, which resulted in a $285 million gain. 2019 Impacted by the sale of the Australian Life Business, which resulted in a $910 million loss 2. Prescribed Capital Amount 3. Risk-weighted assets

36	Suncorp 2019-20 Responsible Business Report

PERFORMANCE OUR

Customer

CUSTOMER SATISFACTION AND ADVOCACY		2020	2019	2018	2017	2016
Customer satisfaction
- Consumer Australia4	(%)	78	77	77	77	79
- Business Australia4	(%)	76	81	83	80	77
- New Zealand5	(%)	-	78	76	74	75
Net Promoter Score
- Consumer Australia4		+5.2	+5.0	+7.3	+5.9	+6.2
- Business Australia4		+9.1	+2.1	+2.7	-0.6	-1.3
- New Zealand5		-	-6	-1	-2	-
COMPLAINTS AND DISPUTE RESOLUTION		2020	2019	2018	2017	2016
Customer complaints

- Banking & Wealth Australia		15,435	13,028	14,324	-	-
- Insurance Australia		175,475	142,399	113,210	-	-
- New Zealand6		6,492	6,059	4,322	-	-
- Number per 100,000 accounts7		677	565	-	-	-
- Number per 100,000 policies7,8		2,340	1,952	-	-	-
Level 1 complaints resolved in 5 days7,9	(%)	95	95	92	-	-
Level 2 complaints resolved in 30 days 7,10	(%)	71	73	-	-	-
Level 2 complaints resolved in 21 days 7,10	(%)	-	77	80	-	-

Complaints referred by customers to external dispute resolution bodies11

- Banking & Wealth Australia		531	416	349	-	-
- Insurance Australia		4,483	3,657	3,011	-	-
- New Zealand6		14	21	20	-	-
- Number per 100,000 accounts7		23	18	-	-	-
- Number per 100,000 policies7,8		48	45	-	-	-
- Proportion resolved by agreement with the customer
- Bank early resolution rate12	(%)	48	58	-	-	-
- Insurance early resolution rate12	(%)	39	41	-	-	-
- New Zealand6	(%)	30	10	-	-	-
- Proportion determined in the customer's favour
- Australia13	(%)	22	13	-	-	-
- New Zealand6	(%)	0	14	-	-	-
AFCA Sent on time results14
- Banking & Wealth Australia	(%)	96	Commenced disclosure in the current reporting period
- Insurance Australia	(%)	97

Complaints referred by customers to the Privacy Commissioner7	7	15	12	-	-

4. Source: DBM Consumer Atlas, 12-month rolling as at June 2020 5. Historical data relates to Asteron Life brand. NPS and Customer Satisfaction are now measured across Vero and Asteron and are under revision for future reporting 6. Excludes AA Insurance 7. Excludes New Zealand 8. Includes consumer insurance policies, excluding travel 9. Handled by customer- facing teams 10. Metric updated from 21 days from receipt by Internal Customer Relations team (ICR), to 30 days from first date received. Exceeds 45-day ASIC requirement. Managed

by ICR 11. Includes complaints received by multiple external dispute schemes (e.g. AFCA, SIRA, OAIC, IFSO) 12. From Complaints received in AFCA Benchmarking (Jun-19 to May-20). 2019 numbers reflect both Financial Ombudsman Service and AFCA reporting 13. From Complaints closed at decision with decision outcome in AFCA Benchmarking (Jun-19 to May-20). 2019 numbers reflect both Financial Ombudsman Service and AFCA reporting 14. From Complaints progressed to case management in AFCA Benchmarking (Jun-19 to May-20)

Performance summary

PERFORMANCE OUR

Suncorp 2019-20 Responsible Business Report

FINANCIAL INCLUSION AND RESILIENCE		2020	2019	2018	2017	2016
Customers assisted during times of financial hardship7,15		117,329	4,257	3,812	-	-

Reviews completed by the Customer Advocate Office		68	43	15	-	-

Essentials Insurance customers		5,389	3,464	1,855	1,055	-

Everyday Super members with a balance		25,079	26,233	23,904	-	-

Everyday Essentials bank account customers		12,294	10,769	9,606	-	-

ACCESSIBILITY		2020	2019	2018	2017	2016
Digital users16	(million)	3.83	3.35	-	-	-

People17

EMPLOYEES		2020	2019	2018	2017	2016
Full-time equivalent (FTE) employees		13,562	13,040	13,309	13,374	13,441
Total employee headcount		14,069	13,440	13,815	-	-
Full-time headcount		10,518	10,375	10,663	-	-
Part-time headcount		2,522	2,440	2,524	-	-
Casual headcount		43	29	41	-	-
Maximum-term contractor headcount		986	596	587	-	-
Employees covered by collective bargaining agreements7	(%)	99.6	99.6	99.6	-	-
SAFETY AND WELLBEING		2020	2019	2018	2017	2016
Employee engagement18	(%)	67	60	56	62	-

Employee-initiated turnover	(%)	12.6	14.2	14.4	12.1	13.0

Absenteeism rate19		7.2	7.5	7.6	-	-

Lost-time injury frequency rate		1.2	1.3	0.9	1.6	1.8

Fatalities20		0	0	0	-	-

DIVERSITY AND INCLUSION		2020	2019	2018	2017	2016
Women on the Board	(%)	40	50	38	-	-
Women in senior leadership roles	(%)	44	47	44	43	38
Women in leadership roles	(%)	51	51	51	49	47
Role pay equity21
- Women paid below the role median		334	386	-	-	-
- Men paid below the role median		309	304	-	-	-
- Employees who did not disclose their gender paid		1	-	-	-	-
below the role median

7. Excludes New Zealand 15. Excludes the Australian Life Business from 2019. General Insurance 'Peace of Mind' support calculated at a policy level 16. Visitors that have logged into Suncorp's authenticated assets like internet banking, mobile banking app, insurance policy self-service web and mobile applications 17. Excludes Suncorp Insurance Ventures

18. 2016 results using previous methodology can be viewed in previous reports 19. Unplanned absence days for permanent employees/average headcount 20. Work-related

fatalities excluding external contractors	21. Variances in fixed pay of >5%, excluding superannuation. Based on like-for-like roles
38	Suncorp 2019-20 Responsible Business Report

PERFORMANCE OUR

Performance summary

DIVERSITY AND INCLUSION		2020	2019	2018	2017	2016

Return to work from parental leave	(%)	98	96	96	953	91

- Women	(%)	97	94	-	-	-

- Men	(%)	99	100	-	-	-

Employees that identify as having a disability	(%)	2.8	2.7	-	2.3	-

Employees aged 55 years or over	(%)	11.9	11.4	11.1	10.6	10.7

Employees that identify as Aboriginal and	(%)	1.2	1.1	-	-	-
Torres Strait Islander


Employees accessing flexible work arrangements	(%)	84	84	-	-	-

LEARNING AND DEVELOPMENT		2020	2019	2018	2017	2016

Code of Conduct training completion rate	(%)	99	99	99	-	-

Formal learning and development	($/FTE)	1,616	1,663	1,947	-	-

TALENT ATTRACTION AND RETENTION		2020	2019	2018	2017	2016

High performer retention	(%)	93	92	-	-	-

Community

COMMUNITY INVESTMENT		2020	2019	2018	2017	2016

Total community investment	($000)	10,317	9,160	10,109	9,835	8,866

Total matched giving22	($000)	1,018	703	-	-	-

Volunteering23	($000)	692	838	701	625	1,385

(hours)	11,526	16,536	13,840	-	-

PERFORMANCE OUR

22. Includes matching for donations, fundraising, crowdfunding and personal volunteering 23. Based on paid employee volunteer time

39	Suncorp 2019-20 Responsible Business Report

Performance summary

Environment

ENVIRONMENTAL SUSTAINABILITY24		2020	2019	2018	2017	2016

Electricity consumption	( kWh/FTE)

- Australia		2,091	2,247	2,329	2,542	2,785

- New Zealand25		951	1,314	2,190	-	-

- Suncorp Insurance Ventures26,27		3,231	7,089	8,197	-	-

Total fuel usage

- Suncorp Insurance Ventures26,27	(GJ/FTE)	26	43	47	-	-

Fuel used in company vehicles	(litres/FTE)

- Australia		95	133	145	157	185

- New Zealand25		132	183	295	-	-

Air travel	(km/FTE)

- Australia		1,600	1,953	2,228	2,971	3,810

- New Zealand		1,332	2,027	3,038	-	-

Paper used for print and offices	(tonnes)

- Australia		373	446	618	659	900

- New Zealand		37	54	72	-	-

Proportion of office waste diverted from landfill

- Australia25	(%)	45	49	51	51	60

GREENHOUSE GAS EMISSIONS24		2020	2019	2018	2017	2016

Scope 1 greenhouse gas emissions	(CO2-e tonnes)
- Australia		2,796	3,741	4,211	4,519	5,306

- New Zealand25		363	467	566	-	-

- Suncorp Insurance Ventures27		1,305	3,836	3,870	-	-

Scope 2 greenhouse gas emissions	(CO2-e tonnes)
- Australia		21,323	22,160	23,741	25,480	28,378

- New Zealand25		103	133	214	-	-

- Suncorp Insurance Ventures27		3,067	8,747	9,181	-	-

Scope 3 greenhouse gas emissions28	(CO2-e tonnes)
- Australia		8,733	10,767	12,358	-	-

- New Zealand25		337	551	602	-	-

Total greenhouse gas emissions	(CO2-e tonnes)
- Australia		32,852	36,668	40,310	-	-

- New Zealand25		803	1,151	1,382	-	-

- Suncorp Insurance Ventures27		4,372	12,583	13,051	-	-

24. Environmental metrics are prepared on an 11+1 basis 25. 2019 numbers restated to reflect transition to improved methodology or updated data 26. To accommodate large variations in 2020 FTE due to divestment these metrics are presented as an average of annualised quarterly metrics 27. Reflects the performance of Suncorp Insurance Ventures including Capital S.M.A.R.T and ACM Parts up until the date of sale on 31 October 2019 28. Based on emissions from paper consumption, waste generated in operations, business air travel, and fuel and energy related activities

PERFORMANCE OUR

40	Suncorp 2019-20 Responsible Business Report

Performance summary

Our Value Chain

SUPPLIERS7,17		2020	2019	2018	2017	2016

Total spend with suppliers (includes claims) 29	($m)	3,690	3,537	3,681	-	-

Spend with material suppliers (includes claims)29,30	($m)	3,149	2,975	3,062	-	-

Number of material suppliers		734	745	760	-	-

Number of contracted suppliers31		1,387	1,348	1,530	-	-

Invoices paid within 30 days32	(%)	98	98	93	-	-

Acceptance of Supplier Code of Practice

- New suppliers onboarded	(%)	98	100	-	-	-

- Material suppliers	(%)	100	100	-	-	-

RESPONSIBLE INVESTMENT		2020	2019	2018	2017	2016

Responsible Investment Policy coverage33	(% total AUM)	91	90	87	-	-

	(# excluded	0	0	2	-	-
Compliance with Responsible	positions held)

Investment Policy exclusions	($m excluded	0	0	1	-	-
	positions held)


Assets managed by UNPRI signatories	(% total AUM)	99	97	89	-	-

Social impact investment	($m)	2	1	1	-	-

Low carbon investment34	($m)	236	310	36	-	-

Social and low carbon impact investments	% of total		-	-	-	-
	shareholders'	6.7
	funds

Proxies voted	(%)	99.4	99	-	-	-

PERFORMANCE OUR

Excludes New Zealand 17. Excludes Suncorp Insurance Ventures 29. Excludes taxes, fees, levies, reinsurance, debt recovery and government regulated services

Strategic suppliers with spend >$500K in the reporting period 31. Where Suncorp holds a current, duly executed contract 32. From receipt of a valid invoice.
Excludes suppliers with payment terms beyond 30 days 33. RI Policy does not apply to passive mandates and pooled vehicles where Suncorp is not the Responsible Entity 34. Based on Global Investor Coalition definition

41	Suncorp 2019-20 Responsible Business Report

To see more, go online suncorpgroup.com.au

Registered office

Suncorp Group Limited Level 28, 266 George Street Brisbane, Qld Australia 4000 +61 7 3135 2901

Shareholder enquiries

suncorp@linkmarketservices.com.au 1300 882 012 (inside Australia)

+61 2 8767 1219 (outside Australia)

Investors

investor.relations@suncorp.com.au

Corporate Responsibility

suncorpcorporateresponsibility@suncorp.com.au

General product enquiries

13 11 55

Connect

suncorpgroup.com.au

@SuncorpGroup

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Suncorp Group Ltd. published this content on 21 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2020 22:29:44 UTC

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Company Profile

Suncorp Group Limited is an Australia-based insurance and banking products and services provider. The Companyâs segments include Consumer Insurance, Commercial & Personal Injury, Suncorp Bank, Suncorp New Zealand, and Corporate. Consumer Insurance segment is engaged in the provision of insurance products to customers in Australia, including home and contents, motor and boat. Commercial & Personal Injury segment offers various insurance products, including commercial motor, commercial property, marine, industrial special risks, public liability and professional indemnity, workersâ compensation and compulsory third party to customers in Australia. Suncorp Bank segment is engaged in the provision of banking services to customers in Australia. Suncorp New Zealand segment offers general and life insurance products, such as home and contents, motor, commercial property, public liability and professional indemnity, life, trauma, total and permanent disablement and income protection.

Sector

Property & Casualty Insurance

Calendar

2024-08-18 - Q4 2024 Earnings Release

Related indices

S&P/ASX 200

More about the company

Income Statement Evolution

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Ratings for Suncorp Group Limited

Trading Rating

Investor Rating

ESG Refinitiv

A-

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Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

16.25 AUD

Average target price

16.82 AUD

Spread / Average Target

+3.49%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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Equities

SUN

AU000000SUN6

Property & Casualty Insurance

Suncorp : FY20 Responsible Business Report

EPS Revisions