Environmental impact

As a group that operates in the personal financial services sector, our impact on the environment is moderate.

It arises mainly from our size and scale of operations rather than from any direct impact from the products and services that we produce.

We recognise that we have a role in promoting awareness of environmental issues among staff and the wider community.

• Direct and indirect impacts

• Our main impacts on the environment are as follows:

  
• Energy management

• Energy use
  Total energy consumption in 2009 at 26.8 GWh showed a reduction of 4% on 2008. This was mainly due to vacating premises and reduced energy use in a group head office building occupied by Irish Life Investment Managers.

  Other reasons for the reduction were:

  • we were able to reduce the level of air conditioning in our computer room through a more efficient configuration of equipment;
  • close management of electricity use in our permanent tsb head office allowed us to achieve a 6% reduction for this building; and,
  • the managers of the Irish Life Centre, Irish Estates, also achieved reductions in energy use by close monitoring during the year and we benefited through a reduction in service charge.

  Our group head office building in Dublin accounts for c.25% of our total group electricity use. In 2009, we completed the installation of additional electricity meters in this building to improve our management of electricity use.

• Waste management

• Our waste recycling levels have increased each year in the past three years, reaching almost 80% in 2009. A good proportion of the balance of waste is organic waste from staff restaurants. During 2009, we tested an organic waste recycling machine (eCorect) in the staff restaurant in our group head office. This machine reduces organic waste by up to 90% and converts it to biomass particles that can be used as fuel or soil nutrient. The test was successful and we will install one of these machines in 2010.

  In 2007, we installed an “intelligent” recycling machine for aluminium cans and plastic bottles in our group head office. Although the machine processes this waste very efficiently, the volume of material being put through the machine was not economic. Most of this waste is processed through on-floor recycling bins and therefore we removed this machine in 2009.

  To improve levels of waste recycling, we have simplified our on-floor waste segregation procedures and relabelled our waste bins in our group head office.

• Use of resources

• Use of other resources

  Paper use continues to be a focus of attention for us. During 2009, our main print supplier, Wood Printcraft, reassessed the basis that they have been using for measuring the volume of printed material supplied to us. This has resulted in usage figures for 2008 that are significantly lower than calculated previously. In addition, reduced business activity has further reduced paper use in 2009. We plan to review all paper use data during 2010 and publish three-year data in next year’s CR Report.

  In 2009, we also launched two initiatives aimed at customers:

  • permanent tsb now issues fewer statements on its Switch current account product. Statements are now based on transactions or charge frequency instead of being issued automatically. Approximately 305,000 customers are now receiving green statements.
  • Irish Life Corporate Business launched its improved “Pension Planet” interactive service (www.pensionplanetinteractive.ie) allowing brokers, administrators and pension scheme members access to pension plan information on-line and to carry out tasks over the internet. Investment in Pension Planet Interactive will continue throughout 2010, adding a wide range of new functionality to the service.

  Following the adoption of a resolution at the company’s 2008 annual general meeting, the group is now allowed to publish annual reports and to issue other shareholder communications in electronic form. As a result, we were able to reduce the number of annual reports printed by 80% from 125,000 in 2008 to 25,000 in 2009.

  In 2009, our Group Communications function switched from paper to mainly electronic form for staff newsletters. This resulted in a saving of more than 200,000 A4 pages. The newsletters are produced using “U-turn” software that simulates page turning when reading an electronic document.

• Other environmental issues

• Business travel
  Business air travel arrangements are handled separately by each business in the group. During 2009, we considered setting up a central data gathering system to record all travel but for cost reasons decided against it. However, with a general focus on cost reduction, cutbacks on business travel are likely to have resulted in reduced emissions from this source in 2009.

  On 1 January 2009, a new government scheme to encourage people to cycle to work came into force (www.bikescheme.ie/). Under this scheme, employees receive tax relief on the purchase of a bicycle for cycling to work and they can also make repayments through salary deduction. Irish Life & Permanent took part in this scheme and more than 200 employees signed up for it in 2009.

  The proportion of diesel cars in our car fleet increased from 25% at the beginning of the year to 30% at year end.

  B.I.D.S.
  Business Improvement Districts (B.I.D.S.) is an initiative by Dublin City Council to improve the environment and the quality of life for residents, workers and visitors in the business area within the Dublin City 1 and 2 postal districts. Irish Life & Permanent is a city centre tenant and a participant in B.I.D.S. Services under B.I.D.S. is funded by an additional levy on rates.

• Key performance indicators
• 
  

  
  ^* Green energy percentages are calculated using data for sources of energy provided by our energy suppliers.

  ^** Includes company car emissions.

  ^* The level of waste we generate is dependent, among other things, on the number of premises refurbishments carried out each year. This can result in major fluctuations in waste generated from year to year and in the proportion of waste recycled.

  ^** Excluding 1,060 tonnes (880 tonnes recycled) exceptional waste from demolition work in the Abbey Street Group Head Office Complex.

• Participation in indices

• Irish Life & Permanent plc is a selected participant company of the FTSE4Good Index. This index measures the performance of companies which meet globally recognised corporate responsibility standards and encourages investment in those companies.

  

  Irish Life & Permanent is represented in the Kempen SNS Smaller Europe SRI Universe. In addition, although we are not members of the Dow Jones Sustainability Index, we were assessed in 2009 and we achieved an overall score of 60% for sustainability performance – an increase of 2% on the result for 2008 – with a score of 57% in the environmental section. This index measures the performance of companies which meet globally recognised corporate responsibility standards.

  Since FTSE4Good was launched in July 2001, the inclusion criteria have been enhanced annually including:

  • 2002: Environmental Criteria strengthened;
  • 2004-2005: Supply Chain Labour Standards Criteria introduced; and,
  • 2005-2006: Countering Bribery Criteria introduced.

  Kempen/SNS Smaller Europe SRI Index
  We also are now represented in the Kempen/SNS Smaller Europe SRI index. This is the first sustainable index for smaller European companies and it rates business conduct and socio-environmental practice.