REG - Phoenix Grp Hldgs - Phoenix Group Holdings - 2014 Annual Results <Origin Href="QuoteRef">PHNX.L</Origin> - Part 4
18/03/2015 07:01
- Part 4: For the preceding part double click ID:nRSR7166Hc
are estimated as full year data is not yet available for all
properties. A sample of emissions from fuel use for transport, back-up generation and fluorinated gases were calculated and
were determined to be non-material to the overall footprint, so have not been included.
Data reported is based on the main requirements of the ISO14064 Part 1 and the GHG Protocol Corporate Accounting and
Reporting Standard (revised edition); data gathered for on-going reporting against the UK Carbon Reduction Commitment
('CRC') scheme and energy and fuel consumption data for owned or occupied properties has been used to calculate the carbon
footprint. The Government's Conversion Factors for Company Reporting 2014 have been used to convert energy data into CO2e
emissions.
As this is the second year of mandatory greenhouse gas emissions reporting, previous years' emissions have been included.
Figures have been restated, including associated intensity metrics, as additional energy consumption data has been obtained
since the previous report.
GREENHOUSE GAS EMISSIONS
Global GHG emissions data in tonnes of CO2e
Emissions from: January to December 2014 January to December 2013
Combustion of fuel and operation of facilities (Scope1) 3,053 3,836
Electricity, heat, steam and cooling purchased for own use (Scope 2) 11,209 13,565
Total Carbon Footprint (Tonnes of CO2e) 14,262 17,401
Phoenix Group's chosen intensity measurement
Emissions reported above normalised to per m2 0.04 tonnes CO2e/m2 0.05 tonnes CO2e/m2
Emissions reported above normalised to kgs per m2 39.94 kgs CO2e/m2 46.77 kgs CO2e/m2
Emissions from Group corporate offices normalised to per FTE 5.79 tonnes of CO2e/FTE 4.96 tonnes of CO2e/FTE
91%
of employees participated
in the Group's employee
engagement survey
WORKPLACE - HOW WE TREAT EMPLOYEES, INCLUDING HOW WE ATTRACT, DEVELOP AND RETAIN THE BEST TALENT
We want staff to take personal responsibility for CR.
We want our staff to be healthy, engaged and productive and recognise the importance of each other's wellbeing.
The Group continues to attract, develop and retain talented staff by offering a comprehensive range of benefits and
development opportunities. The Group was included in 'Britain's Top Employers' listing for the third consecutive year,
which is an accreditation awarded to the best companies to work for in the UK. In addition, the Group achieved sixth place
in the mid-sized category for 'Britain's Healthiest Company'*.
* Benchmark in association with Pru Health, Mercer and The Telegraph.
The workplace agenda for 2014 focused on 'mental wellbeing'. A stress management training module was launched and the Group
signed the 'Time to Change' Pledge, a campaign led by Mind and Rethink Mental Illness to redress the stigma surrounding
mental health illness. In addition, a series of educational onsite wellbeing events were held, promoting the importance of
diet and exercise, in addition to providing on-site health-checks for staff.
91% of employees participated in the Group's employee engagement survey. The overall 2014 employee engagement survey
results represented a 2% increase compared to 2013 and again compared positively against the Financial Services benchmark.
In addition, 75% of staff actively participated in on-site CR events during the year.
The Group's business ethics and dignity at work principles have regard for, and are aligned to, relevant Articles of the
United Nations Universal Declaration of Human Rights.
Key employee metrics and diversity statistics are summarised below.
2014 2013
Total workforce 748 1,192
Male 424 679
Female 324 513
Directors (includes Non-Executive Directors) 10 11
Male 8 10
Female 2 1
Senior Managers 8 9
Male 7 6
Female 1 3
Workforce that is of Black, Asian or Minority Ethnic ('BAME') background 107 213
570 hours
donated to staff volunteering activity
COMMUNITY - THE CONTRIBUTION WE MAKE TO THE COMMUNITIES IN WHICH WE OPERATE AND OUR OBLIGATIONS TO THE BROADER SOCIETY
We want our local community to know we are a responsible corporate citizen.
The Group chose to continue with a single cause again in 2014 for all staff-led fundraising and in excess of £232,000 was
donated to Midlands Air Ambulance Charity and London's Air Ambulance. An additional £6,000 was donated to other charities
the Group supported during the year, and £14,000 through the staff matched fundraising scheme, for causes supported by
employees outside of work. £10,000 was donated to community-based initiatives, selecting partners from within the
communities in which the Group's core sites are based. Support was provided to three local primary schools and a secondary
school during the year, including funding towards a new mini-bus for school partners and other community groups.
Staff donated 570 hours to volunteering activity in the communities closest to our main office locations, which included
support to Business in the Community's ('BITC') 'Give and Gain' Day, which is their national day of employee volunteering.
The Group continued its partnership with The Money Charity, delivering financial education workshops to over 720 pupils.
All core sites were involved in assisting those in need in our local communities, through on-site collections of food items
for local charities SIFA Fireside and the national Trussell Trust Food Bank, further promoting the Group's 'give-back
initiative'.
EXTERNAL STAKEHOLDERS - OUR RELATIONSHIPS WITH THIRD PARTIES
We want our external stakeholders to know we are a responsible corporate citizen.
The Group has been a member of BITC since 2010 and with their guidance completed the Corporate Responsibility Index
benchmark for the first time. This Index is a benchmark which is independently assessed alongside peers and other
industries, to highlight the Group's contribution to future sustainability. Results will be communicated in 'Responsible
Business Week 2015' and will help shape the Group's on-going CR programme.
The Group's relationships with customers, investors, outsource partners and other business partners, suppliers, regulators,
Government and the media remain key in the development of its CR programme.
The Group is tackling the rise in pension scams by working with its partners to try and prevent transfers to suspicious
schemes, whilst communicating this message to customers. So far, the Group's actions have prevented 1,074 people losing a
total of £22.3 million in potential pension fraud. The Group's Financial Crime team is involved with the Pensions
Liberation Industry Working Group and is contributing to the industry code of practice for preventing such scams.
Conclusion
2014 has been an important year with regards to the scale of CR achievements. Most notable the high levels of staff
engagement, the embedding of CR into its corporate culture and addition of high-profile management sponsorship - all
helping to create and drive a sustainable business into the future.
91% of staff completed the annual engagement survey, which included four questions specifically around CR. 68% of staff
think it is important that the Group supports the wider community. 70% agree the Group places an appropriate level of
importance on CR. 87% believe the Group does the right amount to promote CR internally, whilst 73% believe they take
personal responsibility for CR.
Key Performance Indicators will be launched for each of the goals during 2015, with a view to creating further transparency
and continued CR best practice.
The Group's new debt structure better matches our debt repayments to our cash flows.
Governance
48
Board of Directors
50
Our Executive
management team
51
Corporate Governance report
60
Directors' remuneration report
83
Directors' report
Board of directors
Howard Davies
chairman
Howard Davies was appointed Chairman of the Board of Directors of the Company on 1 October 2012. Howard is the Chairman of
the British Government's Airport Commission. He is also a Professor of Practice at the French School of Political Science
in Paris (Sciences Po).
He was previously the Director of the London School of Economics and Political Science from 2003 until May 2011. Prior to
this appointment he was Chairman of the UK Financial Services Authority from 1997 to 2003. From 1995 to 1997 he was Deputy
Governor of the Bank of England, after three years as the Director General of the Confederation of British Industry.
Earlier in his career he worked in the Foreign and Commonwealth Office, the Treasury, McKinsey and Co. and as Controller of
the Audit Commission. He has been an Independent Director of Morgan Stanley Inc. since 2004, and is Chairman of the risk
committee. He is also Chairman of the risk committee at Prudential PLC, whose board he joined in 2010. He is a Director of
the Royal National Theatre, whose board he joined in 2011. He is a member of the Regulatory and Compliance Advisory Board
of Millennium LLC, a New York-based hedge fund. He has also been a member of the International Advisory Council of the
China Banking Regulatory Commission since 2003 and, from 2012, is Chairman of the International Advisory Council of the
China Securities Regulatory Commission. He is Chairman of the Board Nomination Committee. As previously reported and
referred to within the 2014 Annual Report, Howard Davies will be leaving Phoenix at the end of August 2015 to become
Chairman of the Royal Bank of Scotland.
Clive bannister
Group chief executive officer
Clive Bannister joined the Group in February 2011 as Group Chief Executive Officer. Prior to this, he was Group Managing
Director of Insurance and Asset Management at HSBC Holdings plc. He joined HSBC in 1994 and held various leadership roles
in planning and strategy in the Investment Bank (USA) and was Group General Manager and CEO of HSBC Group Private Banking.
He started his career at First National Bank of Boston and prior to working at HSBC was a partner in Booz Allen Hamilton in
the Financial Services Practice providing strategic support to financial institutions including leading insurance
companies, banks and investment banks. Mr Bannister is also Chairman of the Museum of London. Mr Bannister was appointed to
the Board of Directors of the Company on 28 March 2011.
James McConville
Group finance director
James McConville was appointed to the Board of Directors of the Company as Group Finance Director on 28 June 2012. During
2011 and 2012, Mr McConville was a non-executive director of the life businesses of Aegon UK. Between April 2010 and
December 2011, he was Chief Financial Officer of Northern Rock plc. Prior to that, between 1988 and 2010, he worked for
Lloyds Banking Group plc (formerly Lloyds TSB Group plc) in a number of senior finance and strategy related roles, latterly
as Finance Director of Scottish Widows Group plc and Director of Finance for the Insurance and Investments Division. In
2014, Mr McConville joined the board of Tesco Personal Finance Plc. Mr McConville qualified as a Chartered Accountant
whilst at Coopers and Lybrand.
RenÉ-pierre azria
Non-executive director
René-Pierre Azria is a senior partner of Lion Tree Advisors LLC, a US private advisory firm specialising in strategic
financial analysis and mergers and acquisitions. Previously, Mr Azria was the founder and Chief Executive Officer of Tegris
LLC. Prior to this he was a worldwide partner with Rothschild & Co. Prior to joining Rothschild in 1996, Mr Azria served as
Managing Director of Blackstone Indosuez and president of Financiére Indosuez Inc. in New York. Mr Azria serves as a
director of two privately-held book publishers in France and the US. Mr Azria was appointed to the Board of Directors of
the Company on 2 September 2009. He is a member of the Company's Board Risk Committee.
Alastair Barbour
Non-executive director
Alastair Barbour has had over 30 years' audit experience with KPMG where he worked across a full spectrum of financial
services clients from large general insurers and reinsurers to the life assurance and investment management sector, working
on a range of operational and strategic issues. Mr Barbour is the former Head of Financial Services, Scotland for KPMG. He
retired from KPMG in 2011 to build a non-executive career. He is a director and the Audit Committee Chairman of RSA
Insurance Group plc, Standard Life European Private Equity Trust plc and Liontrust Asset Management plc (all London Stock
Exchange listed companies). He is also a director and Audit Committee Chair of CATCo Reinsurance Opportunities Fund Ltd, a
Bermuda-based investment company listed on the London Stock Exchange and of The Bank of N.T. Butterfield & Son Limited, a
company listed in Bermuda. Mr Barbour was appointed to the Board of Directors of the Company on 1 October 2013 and is
Chairman of the Board Audit Committee and a member of the Board Risk Committee.
Tom Cross Brown
Non-executive director
Tom Cross Brown was Global Chief Executive of ABN AMRO Asset Management (which managed E160 billion of assets, with offices
in 30 countries around the world) from 2000 to 2003, as well as Chairman of ABN AMRO Asset Management in the UK from 1997
to 2003. Prior to this, he spent 21 years with Lazard Brothers in London, latterly as Chief Executive Officer of Lazard
Brothers Asset Management. Mr Cross Brown is Non-Executive Chairman of Just Retirement Group plc and is a Non-Executive
Director of Artemis Alpha Trust plc, as well as of other private companies and charities. He was appointed to the Board of
Directors of the Company on 24 September 2009. He is a member of the Board Nomination and Board Risk Committees.
Kory Sorenson
Non-executive director
Kory Sorenson is currently a non-executive director of SCOR SE, the global reinsurer listed on the Euronext Paris stock
exchange, its US subsidiaries: SCOR Reinsurance Company (US) and SCOR Global Life Americas Reinsurance Company, and UNIQA
Insurance Group AG, a leading insurance group in Austria and Central and Eastern Europe listed on the Vienna Stock
Exchange. Ms Sorenson has over 20 years' financial services experience, most of which has been focused on insurance and
banking. She was Managing Director, Head of Insurance Capital Markets of Barclays Capital from 2005 to 2010 and also held
senior positions in the capital markets or financial institutions divisions of Credit Suisse, Lehman Brothers and Morgan
Stanley. Ms Sorenson is also a director of the Institut Pasteur, a non-profit, private foundation created in 1887 by Louis
Pasteur, focused on biomedical research, public health and teaching. Ms Sorenson was appointed to the Board of Directors of
the Company on 1 July 2014 and is a member of the Board Remuneration and Board Audit Committees.
Isabel Hudson
Non-executive director
Isabel Hudson is a former Executive Director of Prudential Assurance Company Limited and a former Non-Executive Director of
QBE Insurance. She was also Chief Financial Officer at Eureko BV and a Non-Executive at The Pensions Regulator. Ms Hudson
is Non-Executive Chair of the National House Building Council. In addition during 2014, Ms Hudson was appointed to the
Boards of Standard Life PLC and BT Group plc. Ms Hudson is an ambassador to Scope, a UK charity, and has 33 years'
experience in the insurance industry in the UK and mainland Europe. She was appointed to the Board of Directors of the
Company on 18 February 2010. She is a member of the Board Audit and Board Remuneration Committees.
David Woods
Non-executive director
David Woods is a Fellow of the Institute of Actuaries, Non-Executive Chairman of Standard Life UK Smaller Companies Trust
plc and a Non-Executive Director of Murray Income Trust plc and Barbon Insurance Group. He is also Chairman of the pension
fund trustee companies responsible for the governance of all the UK pension schemes in the Steria Group and is Director of
Santander (UK) Group Pension Trustees Ltd. He was appointed to the Board of Directors of the Company on 18 February 2010
and is Chairman of the Board Risk Committee and a member of the Board Audit Committee.
Ian Cormack
Senior Independent Director
Ian Cormack was appointed to the Board of Directors of the Company on 2 September 2009 and was appointed Senior Independent
Director on 1 October 2013. Ian Cormack is Non-Executive Chairman of Maven Income & Growth VCT 4 plc and is a Senior
Independent Director of Partnership Assurance Group plc, Bloomsbury Publishing Plc and Xchanging plc. Mr Cormack was Chief
Executive Officer of AIG, Inc. in Europe from 2000 to 2002 and prior to that he spent 32 years at Citibank where he was
Chairman of Citibank International plc and co-head of the Global Financial Institutions Client Group at Citigroup. Mr
Cormack is Chairman of the Board Remuneration Committee and a member of the Board Nomination Committee.
Our executive Management team
Executive management of the Group is led by the Group Chief Executive Officer, Clive Bannister, who is supported by the
Executive Committee ('ExCo').
CLIVE BANNISTER
GROUP CHIEF EXECUTIVE OFFICER
- Leads the development of the Group's strategy for agreement by the Board
- Leads and directs the Group's businesses in delivery of the Group strategy and business plan
- Leads the Group to safeguard returns for policyholders and grow shareholder value
- Embeds a risk-conscious Group culture which recognises policyholder obligations in terms of service and security
- Manages the Group's key external stakeholders.
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