Corporate Responsibility
Promoting the interests of our shareholders
KPI: Return on Equity
Our Approach to Corporate Responsibility
The majority of our shareholders are HBOS customers. This dynamic sets us apart from the competition. An integrated approach, with an emphasis on competitive products, helps define our brand.
We are a Platinum Performer in Business in the Community’s Corporate Responsibility Index; HBOS’s Carbon Disclosure Project rating is the highest of any UK bank; HBOS is one of only two UK banks in the Global 100 Most Sustainable Corporations; and we scored 81% in the Dow Jones Sustainability Index: the highest for a UK bank and one of the world’s top 5.
Governance
Our extensive governance framework was strengthened in 2007 with a new Climate Change Action Group, chaired by former Finance Director Phil Hodkinson. The Board reviews CR strategy annually, in addition to specific activities like climate change, diversity and financial inclusion.
The Way We Do Business (‘WWDB’) Action Group, also chaired by Phil Hodkinson, drives CR strategy alongside a framework of high-level action groups: the HBOS Communications Group, chaired by Group Chief Executive Andy Hornby; the Diversity Steering Group, also chaired by Andy Hornby; and the Financial Inclusion Committee, chaired by Jo Dawson, Chief Executive, Retail Distribution, Insurance & Investment.
Following Phil Hodkinson’s retirement early in 2008, the Climate Change Action Group will be chaired by Chief Operating Officer Philip Gore-Randall and the WWDB Action Group by Corporate Chief Executive Peter Cummings.
Stakeholder engagement
We hold detailed discussions with investors, customers and colleagues. Our new climate change strategy launched in March 2007 was a direct response to colleague feedback. It generated a larger response from colleagues than any previous campaign.
Last year, we held regular meetings with consumer groups, including Which?, Citizens Advice, National Consumer Council, Citizens Advice Scotland and the European Consumers’ Organisation. Increasing stakeholder engagement is necessary to further develop our programme. This is an important development area.