NRMA Sustainability report 2016 - Thrifty
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NRMA Sustainability report 2016
contents
04 08 10
About CEO Creating
the NRMA message shared value
Contents 16
Stakeholders and
22
Member
32
Business
important issues value value
62 72 76
Social Future mobility and GRI Index
value connectedness
2 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 3
about this report about the nrma
About Who we are
this report The NRMA is one of Australia’s largest Member-owned
organisations with more than 2.4 million Members in
NSW and the ACT. With 96 years of expertise in motoring,
This is our eighth Sustainability Report, formerly known
as our Corporate Responsibility Review. This Report covers we’re always there to help keep people moving. And as
the NRMA Group performance in Australia and New Zealand the world changes, we’re opening up new and exciting
(our Thrifty business) across the period from 1 July 2015 possibilities for our Members.
to 30 June 2016, with our previous Review published online We’re driving a new strategic direction toward the
in October 2015. Our Sustainability Report is in accordance focus areas of My Car, My Journey and My Destination.
with the Core option of the Global Reporting Initiative Not only do these core pathways provide new business
(GRI) G4 guidelines. opportunities, they also contribute to shared value by
improving safety through reducing breakdowns and
We are refreshing our annual corporate reporting suite
accidents, shrinking commute times and improving
to better articulate the value that NRMA creates for
access for all and stimulating regional economies to
Members and the broader community. This report is a
create more sustainable communities.
transition for a more integrated approach in 2016-2017.
4 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 5
about the nrma about the nrma
22
car servicing and repair
2,481,577 locations including our 1,800+
Members in NSW new country site in employees
& ACT Wagga Wagga
meeting our Members needs
for anything related to their vehicle
advocacy on mobility issues including
road safety, vehicle safety, fuel prices,
and integrated transport
1.725m
roadside
4,758,134
calls 60,000+ customer reach across
Australia and
helping Members move for help hours in driver
answered training delivered New Zealand
throughout their day
Members get exclusive deals
and travel assistance with our
travel business
177
Thrifty rental
encouraging people to get out 1.4m+ magazines
including
locations in
nights at our Holiday Australia
and about in the car and explore what bi-monthly
Parks, Travelodge
our country has to offer
and Hotel Kurrajong
magazine ‘Open
Road’ (the most-read
28
in New
magazine in NSW)
Zealand
6 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 7
ceo message
At the NRMA, we keep people the community and for our such a large fleet of vehicles,
moving. We’re famous for it. Members. We’re aiming big. sustainable practices are
The world around us When we’re number one in critical and they make good
is changing rapidly and everything we do, the value business sense. In addition,
the NRMA welcomes the we offer will increase. our corporate buildings use
challenge of building a A key focus in 2016 has a third less energy following
sustainable future for our been getting the right team efficiency programs that also
2.4 million Members. in place to support our future delivered significant cost
We are responding to the and gender diversity is a focus. savings. We’ll move into our
changing world with a new Women represent two-thirds purpose-built headquarters
strategic direction built on (67%) of our Board and a at Sydney Olympic Park,
the concept of shared value. third (33%) of our executive delivering even more
Broadly speaking, shared leadership team* resulting in a efficiency and productivity.
value is what happens when leading 50:50 gender balance. In this year’s report, we
we deliver on the things that We’re transforming our have identified how our
are most important to our business practices, improving strategic goals are improving
Members, our stakeholders our digital reach and still the outcomes for our
and our business strategy. relying on the human touch. community and helping to
We know transport is the Our in-school education deliver the UN’s Sustainable
vital lifeline connecting programs are empowering Development Goals (SDGs).
people to economic and children and drivers of all ages We believe these objectives
social opportunities. So for to take greater responsibility are complementary in
us, shared value means for their own safety. We also delivering an NRMA that
sustainable communities in help drought-affected farmers keeps people moving.
our regions and cities, access by servicing their vehicles and
for all and safer mobility. repairing equipment.
As a mutual, we start We’ve committed to going
with a social purpose in carbon neutral by 2020 and
mind. But profit and growth are well on track, having
are still vital so we can reduced our emissions by 16 Rohan Lund
continue to deliver value to per cent since 2010. With Group Chief Executive Officer
8 NRMA sustainabilty report 2016 *
In FY17 women represent 50% of our executive leadership team. NRMA sustainabilty report 2016 9
creating shared value
Creating
shared value
Our new direction provides opportunities to create
shared value for our business, our Members and our
community. This report demonstrates how we are
creating value in all three dimensions.
10 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 11
creating shared value
Headwinds Our purpose
We Keep People Moving
Our vision
Since 1920, NRMA has Today is no different. Disruption and changing times To create indispensable connections
responded positively are the new ‘norm’ and NRMA is subject to our own set
to global trends and of headwinds. It is an exciting time as we transition to
to Membes mobility
changes. Born at the embrace the future of mobility and continue to deliver
time of great disruption value to our Members. Our shared value
with the advent of the With this comes a range of challenges for the organisation.
motor car and in a A key challenge that we’re currently tackling is remaining
Shared value is our response to things that are important
world subject to great relevant to our Members and attracting new ones, in an to our Members, our stakeholders and our new business
turbulence, the NRMA environment where digital engagement, new automotive strategy creating sustainable business delivering value
has always had our technologies and community expectations are rapidly
Members’ interests at evolving. The NRMA is responding to these challenges for members and the community.
the heart of everything with a new business strategy which has shared value
we do. at its core.
Sustainable
communities Business Access
for all
Structural Multiple players in On demand
headwinds have our value chain models
been attacking
Connectivity Autonomous
our relevance technology technology
Ageing Shared
mobility
Member Social
population
Emerging Urbanisation
competitors
Electrification Safe
mobility
12 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 13
creating shared value
Our operational move Our shared value focus areas
We’re returning to our roots, because as Australia’s largest Member-owned mutual, our Buying a product or service from the NRMA means a lot more than just a simple transaction to
Members’ interests are at the heart of everything we do. us. We aspire to build lifelong relationships with our Members by delivering meaningful progress
towards our goal of keeping people moving and delivering on our shared value together.
My car My journey
We are putting Members back in Parking shortages, failing roads and increased
control with proactive car maintenance congestion affects us all. The solution is in Sustainable communities
by helping them through the whole connected cars, innovative parking solutions, We are committed to connecting communities
motoring journey: finding the right car, ride sharing and multimodal transport. across the ACT, NSW and beyond. By connecting
getting finance, servicing, insurance, NRMA is ensuring the best outcomes for our communities, we deliver sustainable
motoring advice and driver training. Members around the state by looking at the communities, supported by a framework of
whole journey from A to B. economic, social and environmental wellbeing.
My destination My membership
Driving holidays are a favourite Australian We are listening to our Members Access for all
pastime. With a range of NRMA Holiday and working hard to develop a new The world of mobility is undergoing the most
Parks and Travelodge Hotels, plus the customer value proposition delivering substantial transformation since the introduction
Kurrajong Hotel, NRMA is reconnecting services people really value making of the motor car. NRMA stood at the vanguard of
Members with the love of touring and NRMA Membership indispensable. the introduction of the motor car and aspires to
encouraging them to explore the country. facilitate the next wave of reform supporting mobility
In doing so we are supporting the regions as a service, new modes of travel and seamlessly
where many Members live and work. connected journeys enabling greater access for all.
Our corporate values
Our culture is built on our values of: Safe mobility
Safe mobility is a requirement of economic, social
and environmental wellbeing in our modern
society. We seek to provide our Members and the
broader community with appropriate mobility
Energy Courage Humility Ownership
options to suit their needs and capacity.
14 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 15
stakeholders and important issues
Stakeholders and
important issues
16 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 17
stakeholders and important issues
Stakeholder engagement
Members & customers
We constantly seek
Member feedback
every week of the year via multiple channels
1.1M
readership
490k
social media interactions
(1.4M circulation)
45% interactive advocacy
lift in mobile
patronage
9.9M
website views
700,000
unique views in 2016
and 50 new
Speak Out
submissions
7,000
Member forum
attendees
Government, industry, business & community partners
48 11 Regular face to
face meetings
stakeholder surveys submissions
Fit to Drive Member Forum, Newcastle 2015
18 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 19stakeholders and important issues
Materiality and stakeholder engagment process Being part of something bigger
This report covers our In 2015-16, we deepened our stakeholder engagement In September 2015 The SDG goals are to help end poverty, fight inequalities
most important issues, and sustainability materiality journey. We refreshed and the United Nations and tackle climate change, while ensuring that no one
as determined both by validated our prioritised material issues by asking 48 of our outlined a range is left behind.
our stakeholders and key stakeholders (key partners, suppliers, Thought Leaders of Sustainable The NRMA strongly aligns with the SDGs relating to
our own assessment and customers) what are important issues for us and where Development Goals motoring and mobility (see below). We’ve also mapped
of the topics that are we create social value. (SDGs) in an effort to the relevant SDGs to our activities in our GRI content index.
most relevant to our We also undertook a scan of emerging big issues that are mobilise countries
organisation right now. material to key stakeholders, NRMA and Australia. This scan and business.
along with our stakeholder research, helped help us shape
our new strategic direction based on a better understanding
our social value and to respond to issues that are material
to our key stakeholders.
During our annual GRI reporting cycle, we engaged key
stakeholders from the business to collect information about the
prioritised material issues in response to our changing business
strategy. These relevant (material) issues are drawn from:
• The views of our stakeholders
• What is important to achieving our business goals Halve the number of global Double the global rate of Develop sustainable and
• The broader context of sustainable development. deaths and injuries from improvement in energy efficiency resilient infrastructure with
road traffic accidents affordable access for all
We’ve displayed how these issues impact our stakeholder groups and indicated the internal or external boundary of each (see table). Reduce deaths and
illnesses from pollution
Stakeholders
Employees & contractorsrs
Members & customers
Community partners
Industry peers
Government
Community
Suppliers
Board
Material Issue in FY16 Issue boundary Page/reference
Road safety & assistance Outside the organisation, for our Members, and internally for our Safety and wellbeing; pg. 48
road safety assistance
Access to safe, affordable transport Outside the organisation for our Members and the broader Advocacy for our members;
systems community pg. 29
Financial sustainability Internally for our entire organisation Building a more sustainable
business; pg. 50
Leveraging connectedness Internally for our organisation and employees, and externally for our Future mobility and
Members and potential Members. connectedness; pg. 72 Provide access to safe, Develop sustainable tourism Strengthen resilience and
Adapting to disruption Internally for our organisation and employees Future mobility and affordable, accessible and that creates jobs and promotes adaptive capacity to climate-
connectedness; pg. 72
Attract and retain good people Internally for our organisation and workforce 34 Supporting our people;
sustainable transport local culture and products related hazards and natural
pg. 16 systems for all disasters
Managing environmental performance Internally for our operations and externally for the NSW community Environment; pg. 53 Rationalise inefficient fossil-fuel
Accountability and transparency Internally as we improve our systems and processes and externally Building a more sustainable subsidies that encourage
for all our stakeholders business; pg. 31, 51
wasteful consumption
Supporting communities Externally the communities and organisations we partner to support 7.2 Community investment;
pg. 60
20 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 21member value
Member value
As a mutual, we exist for our Members.
We’re passionate about creating value by
delivering great Member benefits, providing
best in class customer service, and being
a voice on issues that matter to our
Members and the broader community.
22 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 233
member value
Member $105m new car servicing locations,
including our first country site
benefits
in Wagga Wagga
in Member savings from a range
employing
seven locals
including two
16%
more cars serviced
Whether it’s helping out on the of special offers and discounts
apprentices
road or providing savings through
exclusive special offers and discounts,
we continue to deliver great value
to our Members. Here are some
230,000+
highlights of our year:
days of rentals booked with Thrifty across
1.725m
Australia and New Zealand
our child restraint fit and check
5.5%
roadside assistance calls grew service keeps us at the forefront
for help answered of family safety
nights of booked accommodation at
our Holiday Parks, Travelodge and
Hotel Kurrajong Canberra
Top 5 roadside issues
Lockouts Car electrics Cooling systems Wheels & tyres Batteries
14%
more driver training
Members get deals on flights,
accommodation, cruises,
packages and more
students
24 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 25member value
Customer experience Customer feedback & improvements
4%
in customer satisfaction with
Going beneath Net Promoter Score (NPS) is a key measure used across roadside assistance customer
service centre from improving
the numbers. industries to assess customer satisfaction – that is, how
likely our Members and customers are to recommend us
increase empathy and first call resolution
changes to our
to others. With a possible score range of -100 to +100.
telephone call
classifier helped to
Our roadside NPS
for 2015/16 was 1 compliment
an admirable for every 5 complaints in 2015/16. the number of
complaints
Now an area for improvement in 2017
We’re proud of our results, but we’re not resting on them.
7 point increase in NPS after car
servicing and repairs introduced new booking
system
flexible drop
off/collection
SMS update
system
Focussing on the top three Member concerns about each of
our business units, we’ve invested in service improvements
to boost NPS and reduce complaints. We’ve also brought More service improvements:
senior managers closer to our Members and customers
to increase understanding and inspire improvement.
new group needs-based review of review of new driver holiday parks capital
membership sales capability contractor terms and training booking improvements
system program relationships conditions system program
Customer satisfaction Customer satisfaction
FY 14/15 FY 15/16
roadside customer roadside roadside customer roadside
satisfaction NPS satisfaction NPS
81.7% +77 84.2% +80.5
26 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 27member value
Member/customer Advocacy for
data and privacy our Members
Since December 2015 We’re focussed on mitigating the risk of data-related For nearly 100 During the financial year, we invested over 4% of our
we’ve been managing breaches and issues. There are a number of safeguards years, the NRMA Membership revenue on advocacy and community programs.
Member and customer already in place, and we’ll continue to evolve our data- has been the voice In 2016 our Speak Out and social media platforms
data on our own Group governance policies and procedures. of our Members in received more than 700,000 unique visits from over
Membership System. NSW, the ACT and 450,000 people. We also published 50 Member campaign
beyond, delivering suggestions which were voted on by thousands of Members
results on safer roads, on our Speak Out site, generating important awareness and
better transport discussion about road safety, fuel prices, public transport
infrastructure and and many other important issues.
fairer petrol pricing.
Our Privacy & Spam Committee is Recognising the need for an 8,000 7,000
responsible for the NRMA privacy policy and growing focus on data, the Board Members told us which roads senior Members joined 22 Fit to
requirements. Helping us achieve compliance established a new Data, Digital & needed fixing in our Seeing Red Drive forums to talk about issues
with Privacy and Spam legislation and it is and Technology Board Committee in on Roads Survey with driving later in life
constantly being refreshed December 2015
In FY16, we had no loss of customer data.
All privacy concerns raised were fully
In FY17, we are committed to developing a
new data governance framework which will
Over 50
Member campaign suggestions were
17,000
mentions across across TV, radio,
investigated and rectified. [G4-PR8] be implemented across the NRMA group voted on by thousands of people on newspapers and online
social media
28 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 29member value case study
Advocacy focus area success
Saving lives on the road
• 200 additional portable speed advisory signs deployed in regional blackspots
• Speed limit now displayed on mobile speed camera signage.
• Drug Driving Roundtable led to Government funded Mobile Drug Testing (MDT)
awareness campaign and to triple the number of roadside drug tests by 2017. A truck load
• Helping older drivers with 22 Fit to Drive Forums across NSW & ACT.
• Improving vehicle safety standards through the AAA Keep Australia
of interest
Moving campaign. When the NRMA went on a ride-along
with trucking industry activist Rod
Saving Members money Hannifey, we only intended to learn more
• Improved fuel price transparency with all fuel retailers in NSW now required to about the hazards truckies face on the
upload their prices in real time – which can be accessed on the my nrma app. open road and what ordinary motorists
• Released report into reducing the cost of public infrastructure in Australia in could do to make life safer for everybody.
conjunction with the McKell Institute. What we got was a social media
• After opposing many of the IPART proposals to increase rail fares, the NSW phenomenon: more than 750,000 people
Government announced a much milder increase to fares than originally proposed. watched the video and many thousands
more liked, shared and commented on
• Continued the fight for a greater share of the Commonwealth Fuel Excise to
the issues raised.
be spent on fixing roads and public transport.
Shorter travel times
• Travel Time survey found a 74% time saving and a 30% fuel saving by using
motorways instead of alternate routes.
• NSW Budget put $11.6 million to plan for and build the F6.
Our approach to public policy and
Securing our future
political donations
• Our Accelerating our Smart Transport Future report called on government to
prepare for autonomous vehicles and make the most of new technology. To engage with political representatives and Full details of the total monetary value
• AAA submission in response to the Commonwealth Government’s Vehicle advance our advocacy of relevant issues on of these contributions, and the recipients of
Emissions Discussion Paper pushed for lower emissions, renewable energy behalf of Members, NRMA representatives them, are disclosed to the Australian Electoral
attend paid events organised by political Commission (AEC) each financial year.
and alternative fuels.
parties within Australia. Our Annual Disclosure Returns to
• Campaigning for Australia’s fuel security led to a Senate Inquiry, which
Monetary contributions made to the AEC are publicly available online
supported most of our recommendations.
political parties are strictly limited to at www.aec.gov.au year, as per the
• Promoting ridesharing saw the NSW government agree with many of our attendance at such events, for which requirements of the Commonwealth
recommendations, to legalise ridesharing and reduce compliance costs for taxis. there is a predetermined annual budget. Electoral Act 1918.
30 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 31business value
Business value
As a mutual, ‘how’ we do business is important so that we
can create more value for our Members and the community.
Our people, our economic performance and minimising
our environmental footprint are all key to a sustainable
business for the future.
32 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 33business value
Supporting our people
The NRMA has a clear We’ve been transforming our skills and expertise to
new direction. best suit our future, particularly in the areas of mobility
and technology. We’ve also focussed on growing
our leadership effectiveness and an engaged team,
developing a learning culture, fostering diversity and
inclusion and improving safety and wellbeing.
NRMA worforce profile 2015-16
Our workforce profile
Casual time employees Part time employees
47 148
53 31
Full time employees Employee total
563 41% 758
59%
1023 1107
1,865
34 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 35business value
Talent attraction and retention Leadership effectiveness and
Building the right We’re focused on ramping up commercial understanding an engaged team
team to deliver on and digital literacy across the business while keeping the
our strategic direction customer at the core. With new ways of Effective leadership capability at all levels is critical to
is key to being more Attracting and retaining talent, particularly on our working, our leaders deliver the strategy and culture transformation. A key focus
competitive, innovative frontline, remains a significant challenge. High turnover need be more agile, is to build leadership skills for the future to keep employees
and fit for the future. rates are common within the industries in which we flexible, collaborative engaged and encouraged to perform at their best.
operate. We are working to reduce our new starter turnover and results driven.
from 34% by creating career pathways and offering career
progression, training and other opportunities such as
flexible work arrangements and workplace volunteering.
Thrifty’s new
15%
starter turnover
reduced from
40%
80% FY17
engagement* Focus:
to of the NRMA (+1% from 2013), new approaches
which is above Highly to support leaders and
utilise flexible working industry norms. engaged measure success
arrangements such as team
working from home
28%
55%
Around Strengths:
reward and recognition
with better collaboration
recruitment supportive managers
onboarding,
redesigned
training and of female staff return to work
development after taking parental leave
Your Voice Culture Survey November 2015
36 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 37case study business value Our new HQ at Sydney Olympic Park The NRMA is all about keeping people moving, and we’re doing some moving ourselves – to brand new, purpose- built offices in Sydney Olympic Park. Our new home is designed to bring us together in new ways, with a central staircase connecting all levels, creative work spaces and state-of-the-art meeting technology to help get things done. The activity based working design allows us to operate on a smaller footprint and it’s rated 5 Green Stars, so it’ll be better for the environment too. 38 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 39
business value case study
Learning and development
We have continued Research tells us that the best way to develop staff is via a
our focus on shifting diverse mix of development activities including experience
Learning & Development in a role, exposure to different ways of thinking, and formal
(L&D) in the business education – the 3 E's. Aligned to our strategy and supported
from a training to a by our goal to keep people moving, development conversations
learning approach. and planning are helping to identify activities tailored to
meet individuals’ goals and objectives.
25,000 10% formal
hours of training education
to staff
14 20% exposure to
nrma’s
3 E’s
70% experience
hours average different ways in a role
of training per of thinking
employee
Developing our people
17
Masterclasses
Across 2015/16, 87 people attended one or more
Masterclass equating to 147 enrolments across all four Most of us want a job that takes us places, and Dave
classes. Approximately 50% of current managers attended Grounsell is a great example of where you can go at the
hours average a Masterclass. NRMA. Originally from the UK, Dave started his NRMA
of training per career as a customer service representative before taking
female employee Apprentice program on a team leader role. Dave’s experience with our Members
2015 saw the first apprenticeship cohort from our new and deep knowledge of our systems landed him on an
11
in-house program, through our partnership with Sydney important project and the great work he did there led him
TAFE. We welcomed 12 new apprentices in 2016. to where he is today: Quality Assurance Manager in our
Technology team.
Customer service representative training
hours average With a continued focus on frontline training, our customer
of training per services representatives are better able to match products
male employee with customer needs, identifying savings for them.
40 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 41business value
Appreciating our diversity Women in leadership
Diversity is an integral We look to embrace the unique skills and qualities of all 2016 2015
NRMA board members NRMA board members
part of our vision, our employees and maintain a culture that builds respect
culture, values and the
way we do business,
and fosters inclusiveness, so our people feel valued and
empowered to do their best every day. 63% 63%
37% 37%
offering tangible This means attracting and retaining the best people from
benefits for our a range of different backgrounds, cultures, ages and gender,
employees, customers and each building an understanding of not only our team
and members. mates’ needs, but also those of our diverse customer and
Membership base. A number of leaders have been trained NRMA executive leadership team NRMA executive leadership team
on diversity and inclusion, and this helps to drive a more
inclusive culture and workforce. 38% 14%
63% 86%
Gender diversity/equal remuneration
The number of women NRMA senior leadership team NRMA senior leadership team
7.2%
Continues to decrease:
39% 42%
in leadership positions
at NRMA is substantial.
Pay equity
Eight of our nine Board gap (down from 8.6%)
Members are elected by
our Members, with the
final appointed based on a
61% 58%
specific skill set. Currently,
five of these are women.
With female representation
17%
at executive level rising from
Below national
14% to 33%, we’re delighted We understand the average of
to have a 50:50 gender importance of both
balance across the Board genders being able to
and our Executive Leader access flexible work
Team. The proportion arrangements. Of the 12% of NRMA staff
of women at senior on formal flexible work arrangements, 18%
management representation are men. At Thrifty, men represent 45% of Note 2016 SLT is for General Managers only. 2015 is a broader senior manager
remained steady at 42%. the 22% on flexible work arrangements. role (L2 and L3 managers is approximately 43%)
42 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 43business value case study
Cultural diversity Supporting
Our 2015/16 Your As part of our 2015/16 Your Voice Culture Survey we people
through
Voice Culture Survey asked our employees across the Group to share with
us which cultural or ethnic background they identified
diversity
the most with. Results showed the largest background
identified by our people, after Australian, is European
and Asian. Our Members come from all
over the world, which is why
bi-lingual team members like
Results from the FY16 Your Voice Culture Survey* Phillip Yoon are so important
for people who aren’t
confident speaking English.
2% Pacific
Islander 4% Americas (including Caribbean,
Central, North and South America)
“It’s comforting for Members
to know we can speak with
8% 7% Africa & the Middle East
them in the language they’re
most familiar with,” says
13%
Maori & NZ
Phillip, who is fluent in
Asia Korean. “Communication is
everything when we’re helping
a Member, and removing the
language barrier where we
19% Europe
can makes life much simpler
for them.”
61% Australian
7% Mixed ethnic or
other cultural
background
10% Prefer not to say
“Communication is
2% Aboringal/Torres Strait Islander
everything when we’re
Employees were able to choose more than one answer
*
helping a Member”
44 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 45business value
Our reconciliation action plan
At the NRMA we In 2016, NRMA CEO Rohan Lund signed a Statement of
believe in shared Commitment to develop our first Reconciliation Action Plan
progress. When we (RAP), which was launched in December 2016. This strategic
ensure equal access to framework outlines our commitment to building strong
mobility for everyone, relationships, respect and opportunities for Aboriginal and
communities thrive. Torres Strait Islander peoples.
Some key RAP initiatives already in the pipeline include:
Employment opportunities in our corporate
and apprenticeship programs.
Supplier diversity through our procurement
processes & Supply Nation membership.
Indigenous Learner Driver Mentoring Program
where Members mentor young drivers.
46 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 47business value case study
Safety and wellbeing “The more people
Our focus on safety is Training and improvement to incident reporting has been I teach, the more
paying off and we’ve
I learn!”
a focus this year as part of our Group Health, Safety and
seen a downward Environment Management System. Our FY16 Lost Time
trend in our serious Injuries totalled15 and Lost Time Injury Frequency Rate
incident rates. (LTIFR) was 4.43, which is our lowest to date. Soft tissue
knee, shoulder and lower back injuries makeup the majority
of workers’ compensation claims, reflecting the sometimes
hazardous nature of work involved.
Systematic approach Prevention is key
The NRMA Group Health, Safety and Our wellbeing program responds to areas
Environment (HSE) Management System that matter to staff: nutrition, stress
ensures we follow safe and sustainable management, regular physical activity
work practices. and excess body weight.
Safer driving is integral to who we are Training has been focus in FY16
Our Patrols have all undertaken 95% completion rates for HSE onboarding;
courses through the NRMA driver HSE due diligence training and over 80%
training school. for HSE Basics courses.
21% 15 4.43
reduction lost time frequency
NRMA Safer
Driving School
on injuries injuries rate For Noor Sheerazi, the lessons she learned
when starting out as an instructor were
invaluable. “I was suddenly very aware of
Frequency rate performance my own faults as a driver. But once you
NRMA Group LTI’s and LTIFR as of June 16 have that self-awareness, you can really
help people become better drivers. There’s
120 LTIS LTIFR
lots to love about my job. The work we do
90
makes a safer community and it’s flexible,
60
which is very helpful as a mum. And you
30
never stop learning. The more people I
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 teach, the more I learn!”
48 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 49business value business value
Building a more Group tax transparency
Our approach to tax
sustainable business
Our tax strategy and risk management are subject to
is built on integrity rigorous governance to ensure group tax liabilities are
and transparency. managed in a manner that balances our community and
Member responsibilities. At all times we consider the needs
of our Members and the wider community in planning our
tax strategies to ensure we deliver outstanding value.
We’re always We’re driven to be financially sustainable so that we Due to our mutual status, we are assessed as a corporate
working to improve can do more for our Members and the community. taxpayer but any income derived and costs incurred in our
our performance Being efficient in our operations means we can save transactions with our Members are not subject to company
across all aspects costs, reduce our environmental footprint and add income tax. This plus our carry forward tax losses and
of our business. value through our supply chain. franking credits reduced our corporate tax payable in
FY16 to nil.
Economic performance
NRMA Australia Group 2016 taxes paid
The NRMA reports all Financial snapshot
financial information A fresh direction is setting a strong foundation for Although we did not make
in the Annual Financial future growth. Our results are very pleasing, driven by any corporate income tax
Employer
Report 2016, which is strong investment income, cost reduction initiatives related taxes payments, in the 2016
available on our website. and better operating rhythm in all businesses. 16% financial year we remitted
over $68M in taxes.
Total Operating GST
Revenue Net assets Members profit 22%
+4.8% +3.6% +2.8% 36.8m
$557.6m $884.0m 2.482m before significant
one-off costs
Employee taxes
remitted
62%
To find out more visit our full financial report at mynrma.com.au/annual -reports
50 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 51business value
Our social investments continue to Environment
perform well Management of our The environmental footprint a key environmental
environmental of our operations differs issue common to all our
Strengthening Impact investing: performance is across our family of products operations. We are keenly
our Membership We’ve continued to support the an important part and services. Our activities aware that the impacts
proposition is core Benevolent Society through our of delivering a range from ensuring we of climate change will
to ensuring ongoing investment in the Social Benefit sustainable business. have effective management increasingly affect our
financial sustainability. Bond. Proceeds from bond sales are used to fund a New practices in place for key Members and regions where
South Wales program to reduce the number of family environmental risks such we operate. Therefore, we’re
Our investment portfolio breakdowns and children placed in the foster care system. as managing the storage seeking new ways to reduce
aims to create stable Not only is this a good outcome for families, but the of fuel at our Thrifty car our carbon footprint and
income flows to support implied return on investment to date is approximately rental operations as well support Australia’s transition
and enhance services 5%. This is an attractive return considering the current ascontaining leaks from to a low carbon transport
to Members. In FY16 we interest rate environment, with the cash rate at 1.5%. broken down vehicles at economy through our
saw strong returns in our the roadside, through advocacy activities.
investment income which Our investment in the secondary Public Private Partnership to helping improve the
increased 4% to $46.5 social infrastructure fund has also continued to perform, biodiversity and natural
million (Please see the reporting a rolling 12 month return of approximately 7%. environment surrounding
NRMA Annual Financial The fund invests in social infrastructure assets that benefit our Holiday Parks.
Report for further details). the broader community by providing maintenance services Improving energy
We ensure that a portion to assets, such as schools and hospitals. efficiency and reducing
of our portfolio invests in our carbon footprint is
opportunities that consider Our investment in start-up business
both financial return and Sendle is growing. Sendle provides
social purpose. a low flat-rate door-to-door parcel
sending service Australia wide. This
year, Sendle has transferred parcels across 100 million
kilometres around Australia and offset more than 500 Since 2006 we’ve undertaken a number activities
million parcel kilometres worth of carbon. On the last supporting the need to reduce Australia’s dependence on
100,000 parcels transferred, Sendle has saved small oil. Leading to Senate committee inquiry into Australia’s
Australian businesses $881,000 on delivery costs, which transport energy resilience and sustainability.
equates to an average saving of $8.80 per parcel.
We’re continuing our commitment to exploring
new technologies such as electric vehicles and
local options important for the economy and
Australia’s transport future.
52 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 53business value business value
Energy efficiency & carbon emissions NRMA Group carbon emissions 2015/16 Total carbon footprint after offsetting
The NRMA is working towards a low carbon vision for 2020. Since 2010, we’ve set annual
targets to reduce our carbon emissions. A focus on energy efficiency actions in delivering Scope 1
7,535 tCO2-e
both cost savings and environmental benefits. 3,862 tCO2-e
Reducing fuel use in our fleet by replacing our patrol
fleet with vehicles that provide 50% lower fuel
consumption, 20% lower carbon emissions, 25 per cent
lower operating costs and better functionality and safety.
Scope 2
3,862 tCO2-e
Energy efficiency efforts have 7,535 tCO2-e
In FY16 emissions offset
our Group delivered a 6% reduction in
carbon emissions electricity use in the past
were 16% lower year, and 31% reduction on Total emissions 11,397 tCO2-e Total footprint after offsets 7535 tCO2-e
our 2010 baseline. Our new
3% 2%
than the baseline reduction from reduction from
year FY 2010 and office at Sydney Olympic Park
has a 4.5 star NABERS rating which last year last year
3.2% lower than
FY15 (Scope 1 & 2). will help deliver even more savings.
Emissions by business area
We’ve Our energy efficiency
installed program complements Holiday Parks MotorServe
solar offsetting carbon emissions from 34% 11%
panels at four fuel used by NRMA roadside Thrifty
12%
car servicing assistance vehicles and Thrifty’s
locations, and corporate fleet. This year we’ve
our head office sourced carbon offsets through one
has solar panels of our Members in the Bourke Shire,
assisting our hot creating positive environmental, NRMA
43%
water systems. social and economic outcomes.
*
NABERS (National Australian Built Environment Rating System)
54 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 55business value case study
Carbon offset
This year, the NRMA have accessed carbon offsets from
the Wapweelah Regeneration Project owned by farmers
and NRMA Gold Members, Phillip and Diane Ridge.
Located in the Bourke Shire of north-west New South
Wales, the area is characterised by stunning red earth
and the mighty Darling River.
Key aspects of the project include:
• The regeneration of even-aged permanent native
forests. Prior to the projects’ commencement, high
grazing pressure triggered the severe depletion of the
pastures, causing livestock to graze areas of native
forest instead. This suppressed the vegetation and
caused erosion.
• Sustainability-focused farming practices to improve
the quality of the land and allow regeneration. These
include better management of the timing and extent
of grazing of livestock, fence upgrades, the installation
of water infrastructure and the humane management
of feral goats.
• Diversifying income sources to improve resilience.
This allowed Phillip and Diane to remain on their land
despite pressures from the many difficulties Australian
farmers face. The additional funds from the sale of
Carbon Credit Units can be put back into the property,
making it even more sustainable and profitable.
• Broader environmental benefits for the Mulga
Lands Bioregion, with mulga forming the dominant
vegetation type. The local environment has suffered
from grazing and irrigation pressure, invasive
species and erosion. Key threatened species include
threatened flora and fauna, such as the endangered
Greater Bilby, the Red-tailed Black Cockatoo and the
elusive nocturnal Night Parrot, which has been so
rarely sighted in the wild it was assumed to be extinct
until 2013.
56 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 57business value case study
Other environmental activities
Water and stormwater Battery recycling
153,774
We use water to wash vehicles
in our Thrifty and Car Servicing
operations. When vehicles are
not especially dirty, Thrifty uses
batteries recycled, totalling
a quick turnaround method reducing time
and water use. 2230 tonnes this year. Most
Our holiday parks operate swimming of these are recycled at
pools and water parks, and have facilities in
landscaping areas. Using established NSW including
stormwater management practices
including diversion, harvesting and bush
Wagga
regeneration helps reduce erosion during Wagga and
storm events and saves water. Unanderra.
680
Open Road saved 680 tonnes of paper through:
• Changing the paper type (12%)
tonnes
• Reducing the paper size (11%)
• Cutting duplication waste (21%)
of paper saved
• Plus 285,000 Members’ switching to
digitial renewals
Holiday parks treading lightly
One of the reasons that our holiday parks conservation, saving energy and water, and
are fantastic places to stay is that they better waste and recycling management.
are located near beautiful waterways and Darlington Beach – which among other
Environmental compliance beaches and in unique bushland settings. initiatives is working with University of
We’re committed to continually improving Sydney and Coffs Harbour City Council in
Our Group Health, Safety and Environment a number of environmental licences issued their environmental performance to a kangaroo fertility control program – has
Management System helps ensure consistent by statutory bodies or water authorities preserve and enhance the local area and maintained Gold Gumnut status. This is a
management practices to identify and in the regions where the NRMA operates. offer guests the best experience. fantastic achievement as from amongst
reduce our environmental risk and maintain These licences primarily control trade waste The Gumnut Awards Program run by the over 500 parks in NSW, there are less
compliance with environmental laws and discharges from workshops and washbays Caravan and Camping Industry Association than ten Gold Gumnuts awarded. Ocean
regulations. If a significant environmental operating at MotorServe and Thrifty locations. in NSW provides recognition for meeting Beach and Merimbula have also previously
risk was presented then the Board Audit There have been no significant known strict objectives and proving continued achieved the Silver Gumnut level and
and Risk Management Committee oversees breaches of environmental regulations or commitment. Ten areas of sustainability Treasure Island, Murramarang and Myalls
decision making in response. The Group holds licence conditions. are considered including biodiversity Lakes Holiday Parks attaining Bronze.
58 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 59business value
Our supply chain
Thrifty and NRMA In addition, we are There has been no change to
are supporting supplier members of Supply Nation, NRMA’s supply chain during
diversity and aim to a non-profit organisation this reporting period.
give Indigenous Suppliers supported by the Australian The NRMA Supplier
equal opportunity to Government to grow Engagement Principles
compete in procurement. Aboriginal and Torres (SEP) outline the
Strait Islander businesses. expectations of suppliers
The organisation certifies on their commitment and
businesses as at least compliance to health, safety
51% owned, managed and and environment, local
controlled by Indigenous labour practices and human
Australians, and we commit rights laws, and their impact
to achieving an agreed on society.
amount of procurement with This year, a key focus
these suppliers. of the procurement team
Our core supply chain has been reviewing all
is categorised as follows: our existing contracts to
automotive requirements ensure we’re getting value
(tyres, fuel, spare and identifying areas for
parts); products that we improvement. Next year, as
purchase and on-sell to part of our Reconciliation
Members and customers Action Plan (RAP), we’ll be
(batteries, tyres, and other reviewing opportunities to
products); contractors incorporate greater supplier
and sub-contractors who diversity across the Group.
deliver services to our One of our first actions
Members and customers; is to review procurement
office consumables and policies to identify barriers to
promotional merchandise; Indigenous businesses.
and professional services
consultants who provide a mynrma.com.au/about/
service directly to NRMA. reconciliation-action-plan.
60 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 61social value
Social value
As a mutual, helping and being part of the community
has always been part of who we are. We’re building our
community program to create shared value around our
new strategy. A key part of this is improving access to
transport and supporting regional communities. In addition,
we’re delivering fantastic community outcomes through
our education programs, from empowering kids to take
more responsibility for their own safety through to helping
older drivers as their needs change.
62 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 63social value
Stimulating regional Community
economies investment
Nearly half of our 100% NSW and ACT coverage Inspiring local journeys A new Community Investment Strategy is being developed to shift the
Members live in a rural We have a strong network We encourage Members to focus towards a shared value model, resulting in strategically aligned
or regional locations, of country service centres get out and explore what programs that address material and social issues important to our
so it’s important ensuring Members can get the country has to offer. Members and stakeholders. Understanding issues in our regional areas is a
that we always look help when and where they We continue to support the key factor in developing our new Community Investment Strategy in FY17.
for ways to help need it. We're expanded Royal Easter Show, the Elvis
create sustainable our car servicing business Festival in Parkes, and the
communities beyond into regional areas with our Open Road regularly features Highlights from our community program
metro areas. Our new Wagga Wagga centre great road trips, providing
operations also bringing job opportunities to indirect economic benefits Indigenous Learner learner drivers. Through Children’s Foundation,
help bring indirect the community. through increased tourism. Driver Mentor Program an FIA Road Safety Grant, RSPCA NSW and more.
economic benefits to We’re helping Aboriginal we contributed professional
local communities. From Albury to Armidale and Torres Straits lessons, safer drivers courses, Leukaemia Foundation
and Temora to Tweed Heads Islander people increase funding for licence fees and patient transport service
Through our Member Benefit their access to mobility training for volunteer NRMA The NRMA provided funding
partners we’ve teamed up through a Learner Driver Members to supervise extra for two vehicles to transport
with businesses in regional Mentor Program. With log book hours. patients to hospital for
NSW to provide great access to mobility comes treatment, and our Patrols
savings for Members in opportunities to reach Member and Staff volunteer every fortnight to
local areas through our healthcare, employment, Volunteering drive patients to and from
Member benefits program. education, family and We support numerous their medical appointments.
friends across the country. volunteering initiatives
In December 2015 we encouraging staff and NRMA Starlight
got involved with Driving Members in giving back Escapes program
Our Holiday Parks help provide local employment Change in Wagga Wagga; to the community. We’ve The NRMA has continued
The George Institute for partnered with Alzheimer’s its support by helping 40
opportunities. We source locally where we can Global Health Australia’s Australia NSW, Conservation Starlight families get some
and each $1 spent in a holiday park generates driver licensing support Volunteers Australia, much needed rest and
$1.38 of economic activity in the local community.1 program for Aboriginal Dress for Success, Exodus recreation at one of our
1. Caravan, RV & Accommodation Industry of Australia Economic Benefit Report, 2012. and Torres Strait Islander Foundation, Starlight holiday parks.
64 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 65case study social value
NRMA mechanics head west
Since 2014, the NRMA has sent around over 700,000 times, and can be seen at
40 patrols and Car Servicing mechanics mynrma.com.au/lightningridge, where
“...helps ease the
to dozens of drought-affected farms in volunteering information can be found
Lightning Ridge to fix farming equipment and donations made to support regional
such as tractors, windmills and harvesters, farming communities.
burden, even just a
delivering over $100,000 worth of work. NRMA Patrolman George Whisker, who
To highlight the struggles facing farming led the tour for the third year in a row, said
communities, the NRMA this year released the impact the drought has on the land and
little bit, then it’s
Where the Black Rays Shine; a tribute video communities needs to be seen to be believed.
to farming families and the challenges they “If taking our tools and expertise out
face to survive one of the worst droughts west to get equipment running again helps
well worth it ”
recorded in far-Western NSW. The video, ease the burden, even just a little bit, then
featuring a poem by Lightning Ridge it’s well worth it and I’m glad we are going
farmer Robert Turnbull. has been viewed to continue providing that level of support.”
66 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 67social value
Safe motoring Science and Road Safety Day
The innovative Science
education
By using theatre and science demonstrations, the
& Road Safety Day program makes it easy for children to understand
from the NRMA is the forces that act on them in motion and how
a free touring road safety equipment keeps them safe. A unique feature
safety program for of the program is the importance placed on teaching
primary schools children how to recognise unsafe behaviours,
Through a variety Young driver programs Primary school reaching more than especially incorrectly fitted seatbelts and bike
of platforms and We work with our Driver program 140,000 children over helmets, and how to correct them.
initiatives, the NRMA Training on the Keys2Drive Our Science and Road the past three years.
delivers high-quality program that supports Safety Day includes
education for children, parents of learner drivers. theatrical shows and
young people, the The program addresses educational resources that Improvement in children’s road safety knowledge
aged and the wider the required mindset shift empower children to look
community. from child to independent out for their own safety Bike helmet correctly fitted Child not to sit in front seat of car
young driver using interactive on the road and to then
Aimed at increasing group participation. influence those around
road safety and raising The My First Car program them. We also partner with 25% 61% 40% 56%
awareness of mobility and offers live demonstrations many schools to educate before after before after
144% 40%
future transport options. from our mechanics on car parents and the community. increase increase
Our core focus continues maintenance and what to
to be centred on road look for when finding your Sustainability & Future
safety, but we are always first car. Mobility Program How to correctly fit a seatbelt Need to replace a bike helmet after a crash
looking to evolve our We delivered workshops
offering and respond to Older driver programs on sustainable transport
the changing needs of our
community. We’ve also
We continue to service our
older Members with our
to 6,000 students at the
Youth Eco Summit (YES) and
50% 78% 41% 85%
before after 56% before after 107%
identified new parents as a Years Ahead and Pedestrian hosted the YES 21st Century
increase increase
group in need of programs programs that ensure they Learning Awards.
that will help them protect are independent and mobile
and educate their children for as long as possible.
Child not to exit on road side of car
and make informed
decisions on their safety.
68% 83%
before after
22%
increase
68 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 69social value case study
Youth Eco Summit
Over 3000 students aged between 10 and 18 years
attended the Youth Eco Summit (YES) at Newington Armory
in late October, to learn about alternative transport options
such as electric and hydrogen fuel cell cars. The NRMA is a
founding member of the summit, first held five years ago.
“We want students to think about new technologies…as
these are the cars they will be buying in the future” said
Senior Manager Motoring Education Venera Owens. “We
need them to also understand that the infrastructure to
support these new technologies has not been built and it
won’t get built until they speak up to demand change.”
We invited Members and schools to choose their
favourite school-based sustainability project as part of our
sponsorship of the NRMA YES People’s Choice Award, and
in one week received 15,353 votes. The winning school was
Mawarra Public School, Eldersie, and we visited them to
run a day of exciting sustainable transport workshops.
70 NRMA sustainabilty report 2016 NRMA sustainabilty report 2016 71You can also read
