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D ig ng r S t n ty
environmental social economic
e Co-operators Sustainability Report 2007
Mission Statement
The Co-operators: financial security for Canadians and their communities
Our Vision
environmental We will be…
> the Canadian champion
social
> where Canadians are, with the financial security products and services
they need, when they need them, however they wish to buy them
> a member of, and contributor to, a strong co-operative community
economic
> a catalyst for a sustainable society
Statement of Values
sustainability
The Co-operators believes…
> in holding the highest level of integrity as our standard of conduct
> that our success depends on meeting and anticipating our clients’ needs
environmental >
>
>
in enhancing the excellence of our products and services through innovation
in fostering open communication, teamwork and team spirit throughout the organization
in balancing economic, environmental, and social priorities as a responsible corporate citizen
social >
>
in the co-operative principles, which complement our values
that we are accountable for operating our business within a closed ecosystem
economic Seven Co-operative Principles
1. Voluntary and open membership
2. Democratic member control
sustainability 3.
4.
Member economic participation
Autonomy and independence
5. Education, training, and information
environmental 6.
7.
Co-operation among co-operatives
Concern for community
social
* Note: Bolded items were added in June 2007 to better reflect our commitment to sustainability.
1 The Co-operators Sustainability Report 2007
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Contents
Mission, Vision, Values and Principles 1
Message to Stakeholders 3
Report Profile 5
Company Profile 6
Organizational Chart/ Business Profile 7
Economic Performance 8
Governance 9
Illustrations by Jason A. Smith, The Co-operators Group Limited.
Stakeholder Relations 15
Socio-Economic Contribution 31
Please take a few moments to provide feedback about this report and our initiatives by responding
to an e-survey, available at www.cooperators.ca/sustainability_report. For every response we receive Environmental Practices 37
$5 will be donated to the Tree Canada Foundation.
2007 Target Report Card 41
2
Message to Stakeholders
Ensuring our communities are healthy, safe, sustainable, and able to maintain a quality Although our activities in these areas are under various stages of development, The Co-operators
of life is what the insurance industry is about; it’s also a mission that aligns naturally with is committed to continuous improvement in what we do and how we do it. Our 2007 and
co-operative principles. We have long supported and funded the development of community- future sustainability reports will communicate progress on our sustainability journey.
oriented co-operatives and social enterprises, and as an insurer, worked hard to contribute to
Canadian communities. We are now moving toward balancing the components of our triple
Our climate change challenge
bottom line — economic, social, and environmental. We recognize the components are The world has always been fraught with adversity. We are in the wake of what may be our
interdependent and our success will be contingent upon fully embracing sustainable practices greatest challenge yet — the realization of our planet’s vulnerability. As an industry that
in every part of our business. identifies and manages risk, we recognize that the increasing unpredictability and severity
of weather-related events will test us. The ability to adapt, innovate, and show agility will
Designing a sustainable future determine our success in the future.
We aspire to become a catalyst for sustainability, both in the insurance industry and in the Climate change is a global concern and has certainly caught the attention of the insurance
co-operative sector. We are sincere in our commitment to becoming a better, more sustainable industry. It has become an increasing threat to the sustainability of our planet’s resources;
organization and we have begun the journey in earnest. it has been named the greatest risk facing the insurance industry in its history.
One of our first steps in demonstrating our commitment was to amend our Vision and Values There is a growing amount of scientific research that indicates global warming is contributing
statements to better reflect our change in focus. A Sustainability Steering Committee, comprised to the intensity and frequency of hurricanes, droughts, wildfires, and floods. In 2007,
of senior leaders from key areas and representatives from each organization within our group of for example, we saw an increase in claims severity due to summer storm activity in western
companies, is leading the development of our new sustainability policy and strategy. In addition Canada. The cost of the damage resulting from natural disasters has doubled every five to
to adopting a sustainability policy and strategy, the Board of Directors also established a seven years since the 1950s. This is an alarming and unsustainable trend for the insurance
Sustainability Committee to provide governance over our sustainability progress. industry, no less so for our organization.
Our sustainability strategy has four key components: As part of the climate change strategy we are developing, The Co-operators will continue to
1. Develop a climate change strategy, starting with an assessment of our current look at its impact on the climate and on how it can help clients and communities effectively
environmental performance and determining measurable targets to guide our progress. manage the climate risks they face. We are committed to measuring our energy usage and
setting targets to reduce our consumption, and to engaging clients on this critical issue.
2. Implement sustainable practices within our operations including moving toward zero As investors, we have joined the Carbon Disclosure Project, an initiative that seeks to assess
waste, reducing paper consumption, aligning purchasing and vendor relations with our the carbon impact of our investments. Further development of our climate change strategy
sustainability objectives, and engaging staff and agencies in our sustainability efforts. will realize opportunities we can pursue to reduce our emissions and the emissions of our
3. Develop sustainable products and services, and engage and educate clients on stakeholders.
sustainability. Our staff members are fully engaged in our sustainability initiatives, helping us to meet
4. Engage strategic stakeholders such as member-owners, the co-operative sector, youth, our goals and holding us accountable for our actions. Indeed, we anticipate that as our
communities, governments, non-governmental organizations (NGOs), and industry staff become more engaged in our sustainability efforts they will bring this information and
leaders to advance sustainability and incorporate our sustainability goals into our experience to their other roles in life; their families; as consumers and investors; and in the
community investment programs. communities in which they live.
3 The Co-operators Sustainability Report 2007
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Since incorporating sustainability into our Vision and Values statements in June, we have Our commitment to sustainability started when the organization was born, with the formation
seen an increase in engagement from our staff members wanting to see improvement in our of a co-operative that provided financial security for Saskatchewan farmers. The journey
sustainability performance. Our sustainability policy and strategy are only the foundation; will continue as long as the organization exists. We must continue to grow profitably so that
it is our engaged workforce that will give them life, and carry us forward to success. we can fully embed sustainability into our business practices and meet the changing needs of
our communities. We will remain committed to the needs of the environment, our staff and
Nurturing stakeholder relations our communities, and preserve the financial strength of our organization.
Our focus on stakeholder relations remains strong as we look for innovative ways to meet the
We look forward to building on our solid co-operative foundation and further integrating a
needs of our clients, member-owners, staff members, agents and broker partners, co-operative
sustainability perspective into how we operate. We realize that there will be challenges along
organizations, and communities. By reaching out to stakeholders, we have been able to respond to
the way, but we are prepared to grow and learn. How we have begun to design sustainability
needs with enhanced product solutions. For example, Community Guard was launched in 2007
into what we do unfolds in the following pages. Please share your comments and suggestions
to respond to the unique insurance needs of the voluntary non-profit sector.
with us. Your feedback is integral to our success.
We continue to see higher than average (when compared to other Canadian employers)
Sincerely,
staff engagement scores in our annual engagement surveys. In fact, we ranked 13th in
The Globe and Mail’s Report on Business (includes The Co-operators Group Limited,
Co-operators General, HB Group, CDCL and CICL), with other companies ranking as well
(L’UNION CANADIENNE ranked 39th and in the small company category The Sovereign
General ranked 24th). Although we have not yet achieved our engagement target of 80 per cent Kathy Bardswick Richard Lemoing
across the group of companies, we are proud of what our staff members have to say about President and Chief Executive Officer Chairperson, Board of Directors
the organization. In 2007, 88 per cent of our staff members believed that The Co-operators
adds value to Canadian communities.
We remain committed to expanding the diversity and representation of our member-owners;
in 2007, we increased our membership by six, and are now represented by 40 major co-operative,
credit union, and like-minded organizations across Canada. Strong financial results in 2007
allowed us to give back $13 million in loyalty payments to our member-owners.
Community involvement is central to our co-operative values. The volunteer hours and
support that our staff members, agents and broker partners contribute to their communities
is noteworthy. Our support remains strong at a corporate level as well, with $4.2 million going
towards the betterment of Canadian communities.
Looking ahead
We are committed to addressing the impacts and threats that climate change will bring,
and aim to become part of the solution. The planet will not allow us to take a leisurely
approach to climate change. We believe the time to act is now.
4
Report Profile
Our fourth Sustainability Report — Designing for Sustainability — covers activities undertaken organization’s assets), we will report on their progress in future years.
across Canada from January 1 to December 31, 2007. This report discloses our activities in
This report has also been informed by the Global Reporting Initiative’s G3 Guidelines.
compliance with the Public Accountability Statement (PAS) requirements under the Insurance
Starting in 2008, The Co-operators plans to more formally align its reporting with these
Companies Act and helps us move toward best practices in sustainability reporting.
global sustainability reporting standards.
In an effort to achieve greater transparency, this report has been modified from our previous
2006 Corporate Responsibility Report to include increased performance metrics and to align Reporting Process
more closely with our new sustainability policy and strategy. Under the leadership of the Director, Sustainability and Corporate Citizenship, who served as project
This report is produced for our major stakeholders — clients, member-owners, staff members, sponsor, a Sustainability Report Committee was tasked with co-ordinating, writing, designing, and
agents and broker partners, co-operative organizations, government, media, suppliers, and distributing The Co-operators fourth Sustainability Report. Key contacts within The Co-operators
Canadian communities. It offers information and data related to our economic, social, and group of companies were identified and over 100 staff members were involved in providing
environmental performance. relevant information. English and French editorial teams were created to review the material.
The report includes information on our activities from the following companies owned by A survey was administered in April 2006 to gauge the response of stakeholders to the 2005
The Co-operators Group Limited. There are instances in the report when brand names for Corporate Responsibility Report. We received feedback from clients, staff members, member-
different subsidiaries of The Co-operators are used. References to these companies include: owners, and external consultants, and have taken steps to address the identified gaps in our
Co-operators General Insurance Company (Co-operators General); The Sovereign General reporting — in particular, our impact on the environment.
Insurance Company (The Sovereign General); L’UNION CANADIENNE, COMPAGNIE
D’ASSURANCES (L’UNION CANADIENNE); Co-operators Life Insurance Company In the 2005 Corporate Responsibility Report online survey, there were
(Co-operators Life); HB Group Insurance Management Ltd. (HB Group); three recurring themes from the over 800 staff members who responded:
Co-operators Investment Counselling Limited (CICL); Co-operators Development 1) Proud to work for The Co-operators — “I am very proud to work for a
Corporation Limited (CDCL); TIC Travel Insurance Co-ordinators (TIC). company that cares for their business, clients, and staff.”
There are a number of smaller subsidiaries excluded from the scope of this report due to their 2) Great report — 99 per cent agreed it was easy to read and understand.
size and number of staff members — Harlock Murray Underwriting Ltd.; The Equitable 3) More needed on the environment — “We need to make a
General Insurance Company; UNIFED Insurance Brokers Limited; Federated Agencies Limited stronger commitment to environmental issues.”
(Federated); COSECO Insurance Company.
For more information on these subsidiaries, please refer to our website Reporting Access and Feedback
at www.cooperators.ca and click on, About Us, Our Companies.
Companies
The Co-operators Sustainability Report 2007 is produced in English and French, and is available
Reporting continues to evolve at The Co-operators, most of which is currently focused on on our website at www.cooperators.ca/sustainability_report. To contact us, provide feedback,
the larger insurance operations, including Co-operators General, The Sovereign General or obtain an additional print version of the report, call 1- 800-265-2612, e-mail the Director,
and L’UNION CANADIENNE. As more baseline information becomes available from our Sustainability and Corporate Citizenship at sustainability@cooperators.ca, or visit your local
subsidiaries (i.e., CICL which is responsible for the sustainable management of the Co-operators agent for a copy.
5 The Co-operators Sustainability Report 2007
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Company Profile group of companies
our
The Co-operators Group Limited
Listed below are the organizations that comprise The Co-operators group of companies, excluding our smaller subsidiaries, and the products and services that are offered through each. All of The Co-operators group of
companies are 100 per cent Canadian-owned and operated.
Co-operators Financial Services Limited is a Canadian TIC Travel Insurance Coordinators Ltd. offers travel insurance
insurance holding company with over $7 billion in assets. The two products through Co-operators General’s agency distribution
principle subsidiaries of the company are Co-operators General network, online, independent brokers, travel agents, and their call
and Co-operators Life. centre headquartered in Toronto, ON.
Co-operators General Insurance Company provides home, Federated Agencies Limited offers specialty personal,
auto, farm, and commercial insurance through an exclusive agency commercial, and wealth management products that complement
distribution network across Canada. This agency network also the offerings of our strategic business partners. Federated Agencies
distributes life and travel insurance, and wealth management is also the vehicle for our insurance broker investments.
products for Co-operators Life.
HB Group Insurance Management Ltd. offers home and
The Sovereign General Insurance Company writes auto insurance products through three contact centres under
commercial, marine, warranty and special risk insurance through The Co-operators brand to employer groups, affinity groups,
independent brokers across Canada, and also offers personal associations, and credit union members. Business developed by
insurance products in select geographic areas of the country. HB Group is primarily insured by COSECO.
L’UNION CANADIENNE, COMPAGNIE D’ASSURANCES writes Co-operators Investment Counselling Limited provides
personal and commercial insurance in Quebec through independent discretionary investment advisory services to pension plans,
brokers and provides auto and property insurance products through insurance companies, endowments, foundations, government
an insurance broker in Newfoundland. corporations, and mutual funds.
COSECO Insurance Company is the underwriting company for Co-operators Development Corporation Limited provides
our group insurance product. asset management, and investment services to The Co-operators
group of companies, and to a broad spectrum of clients from the
business and investment communities at large.
Co-operators Life Insurance Company provides life and travel
insurance, as well as wealth management products, to individuals,
and group insurance and pensions to a wide variety of employee
and association groups.
6
Organizational Chart and Business Profile
The Co-operators Group Limited
Co-operators Financial Services Limited Co-operators Investment Counselling Limited
> Co-operators General Insurance Company
> The Sovereign General Insurance Company
Co-operators Development Corporation Limited
> L’UNION CANADIENNE, COMPAGNIE D’ASSURANCES
> COSECO Insurance Company
> Co-operators Life Insurance Company
> TIC Travel Insurance Coordinators Ltd.
> Federated Agencies Limited
> HB Group Insurance Management Ltd.
Business Profile
> The Co-operators is a leading Canadian-owned, multi-product insurance company > Insures 300,000 employees through group benefit plans
> Assets totalling over $7 billion > Provides coverage to 44,000 farms and 132,000 businesses
> 4,481 staff members and 471 exclusive agents with 616 retail outlets, 1,057 independent > Provides travel insurance to more than 1 million Canadians and visitors to Canada
broker offices, four contact centres and one call centre for our travel insurance business
> Offers a wide range of wealth management products including mutual funds
> Insures more than 1.2 million clients across Canada
> Provides investment and asset management services
> Protects 845,000 homes, 1.1 million vehicles, and 600,000 lives
7 The Co-operators Sustainability Report 2007
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Economic Performance for stability
designed
Embedded in our mission statement, Vision, and Values is the promise to offer financial Financial Results
security to Canadians and remain accountable to our clients in the event of a claim.
The following are our 2007 financial results, including: assets of our insurance companies;
Strong financial returns and economic stability allow us to deliver on this promise. It is also
return on equity; revenue by company; written premium across Canada; and our invested
at the core of our operation which enables long-term commitment to our member-owners,
assets.
along with sustainable practices for Canadian communities, our environment, and the
co-operative movement.
Assets of Insurance Companies 2007 Revenue by Company 2007
(in millions) (in millions)
Co-operators General (47%) $3,581 Co-operators General (51%) $1,449
Co-operators Life (34%) $2,627 Co-operators Life (26%) $738
The Sovereign General (7%) $559 L’UNION CANADIENNE (9%) $254
Targets & Highlights
COSECO (6%) $455 COSECO (7%) $197
2007 Highlights
L’UNION CANADIENNE (6%) $426 The Sovereign General (7%) $190
> Return on Shareholders’ Equity (ROE)
of 13.1 per cent
> Revenue of $2.9 billion
Premium Across Canada 2007 Invested Assets Mix 2007
2008 Targets
(in millions) (in thousands)
BC (8%) $209 Bonds (59%) $3,519,351 > Return on Shareholders’ Equity (ROE)
Alberta (21%) $589 Stocks (20%) $1,196,684 of 10.2 per cent
Man/Sask (7%) $201 Mortgages (14%) $804,166 > Revenue of $3.35 billion
Ontario (44%) $1,218 Other (4%) $253,847
Quebec (10%) $280 Short Term Investments (3%) $160,197
Atlantic (10%) $274
To view our three-year comparison results and six-year financial review, visit www.cooperators.ca/sustainability_report
and click on Financials. For detailed 2007 financial results, visit www.cooperators.ca and click on About Us, Media
Resource Centre, Annual Reports.
8
Governance on co-operative principles
designed
In 1945, four Saskatchewan farmers joined together to form an insurance co-operative. Engaging people at all levels of our organization is essential to creating and adopting a strategy
The organization’s purpose extended far beyond the bottom-line to enhancing the well-being that would bring significant changes to our business practices. Senior management consulted
of its members and the community at large. with staff members nationwide through ten focus groups. We heard from over 90 delegates,
our Board of Directors, and guests at similar focus groups conducted at our Annual General
Today, we continue to integrate co-operative principles into all that we do. Democracy is at
Meeting. Through the lens of our guiding sustainability principles, we conducted a
the root of our governance structure and process, where our member-owners have a voice
sustainability analysis of our organization by benchmarking The Co-operators against 11
around the decision-making table and open dialogue is encouraged at all levels of our
international and national businesses and interviewing ten international sustainability leaders.
organization. We look beyond increasing profits to satisfy the needs of clients, staff members,
member-owners, and communities. With this input, we developed The Co-operators Sustainability Policy and Strategy which
was adopted by our Board of Directors in June 2007. Our corporate Vision and Values were
Sustainable Governance amended to underscore our commitment to sustainability (refer to page 1 of this report for
Embedding Sustainability Principles our amended Vision and Values). Our Board Sustainability Committee provides guidance and
leadership and our newly established department of Sustainability and Corporate Citizenship
As an insurer, investor, employer, co-operative and community partner, we believe that ensures needed resources are in place to bring consistent progress towards meeting our
thinking and acting responsibly today is key to creating a sustainable tomorrow. We have sustainability goals.
always believed in conducting our business in a sustainable manner — it is part of who we
are as a co-operative. This year, we have further solidified our commitment to sustainability Engaging Stakeholders
by developing a sustainability policy that includes four guiding principles (see page 10). Providing an opportunity for our stakeholders to understand the threats, issues, and opportunities
Moving forward, we are incorporating the policy and strategy into our business decisions. related to sustainability is an important part of realizing our strategy. In conjunction with TNS
Achieving economic growth and fulfilling the needs of our clients, while minimizing the Canada, we developed a customized interactive e-learning course that describes the issues faced
impact on natural systems, is a challenge we face in designing a sustainable organization. by our natural environment and the impact that we have on our planet. In 2007, over 500
To tackle this challenge, a cross-company Sustainability Steering Committee (SSC) was directors, delegates, and staff members registered for the course.
established in 2007 to develop the sustainability policy and strategy. Development of the Prior to developing our sustainability policy and strategy, and as part of our strategic planning,
policy and the strategy was based on a sustainability planning approach called “backcasting we held focus group sessions with our staff members where we asked for their feedback on our
from sustainability principles,” also known as The Natural Step Framework. The Natural Step sustainability efforts. Our staff members agreed that sustainability was an important issue for us,
(TNS) Canada is an international non-profit research, education, and advisory body that and that sustainable thinking needed to be integrated to the core of our organization. Feedback
guides organizations in their sustainability journeys. To help ensure that we are taking from our directors and delegates indicated we should “take an active leadership role,” “embed
meaningful actions towards a holistic and robust understanding of sustainability, the SSC sustainable thinking into all business processes and operations,” “get our own house in order,”
has been advised throughout this process by TNS Canada and Strandberg Consulting Ltd. and become an advocate for sustainability practices both publicly and in the co-operative sector.
Since developing The Co-operators Sustainability Policy and Strategy, we have conducted
workshops with both Community Advisory Panels (community forums with whom we regularly
9 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
interact) and staff members. Beginning in June, over 500 staff members from various levels of
the organization were involved in sustainability presentations and workshops. We will continue When asked about our sustainability policy, staff members
to provide ongoing education to staff members, agents, and their agency staff through our responded that:
intranet, internal staff publications, and events. > Our sustainability policy is well-aligned with our corporate
Vision and Values
Our sustainability strategy is a work in progress. Much of our initial effort in this area will focus
> An emphasis needs to be placed on staff engagement
on getting our own house in order. This includes establishing a baseline of our sustainability
> We need to review all areas of the business to find
impacts and identifying the means to reduce our environmental footprint, and to engage others
sustainable solutions
in advancing sustainability in Canada. Future reports will include more robust metrics and
targets which we are using to guide and measure our performance.
1 2
Sustainability Policy
The Co-operators recognizes that our business, our communities, and the whole global economy In a sustainable society, In a sustainable society,
exist within the closed system of the Earth, which provides unique and irreplaceable resources nature is not subject nature is not subject
to systematically to systematically
and support for all forms of life. We also recognize that the capacity of the Earth, to continue to increasing concentra- increasing concentra-
provide these resources and supports, is threatened by growing demand and by the degradation tions of substances tions of substances
of natural and social systems. extracted produced by society.
3 4
from the Earth’s crust.
As an insurer, employer, investor, community partner, and a co-operative, The Co-operators
believes that we can and must lead the way in ensuring a sustainable future.
In a sustainable society, In a sustainable society,
To us, sustainability is about balancing economic, environmental, and social priorities as a
nature is not subject people are not subject
responsible corporate citizen. to systematically to conditions that
increasing degradation systematically
We are committed to developing our business in a way that builds on our financial strength and undermine their capacity
by physical means.
seeks both to minimize any negative effects that our activities could have on the environment to meet their needs.
and society at large and, further, to perform a restorative function through innovation in business
practices, product development, public engagement, and partnerships with our stakeholders.
The Sustainability Principles (source: The Natural Step)
The nature of our activities is such that from a sustainability perspective the indirect impact of
our products, services, and stakeholder relationships is more significant than the direct impact Step by step, The Co-operators will strive to align our business operations, products and
of our operations. However, we commit ourselves to a continual assessment of all we do and to services, and stakeholder relationships with these fundamental sustainability principles
the ongoing pursuit of alignment with these four sustainability principles: in ways that advance our long-term financial objectives.
10
Board Governance In April 2007, we welcomed five new directors; four were appointed to replace retiring
directors, and one additional director position was created in recognition of our growth in
Board Configuration Quebec. This brings our total director count to 22. We have representation from each of our
Co-operatives and credit unions have found a way to successfully compete in the marketplace seven regions, bringing unique perspectives and increased diversity to our governance team.
without abandoning the values and principles that set them apart from other business models. With 23 per cent (5) female directors and 77 per cent (17) male, we also benefit from gender
diversity on our Board.
The Co-operators Group Limited is 100 per cent Canadian and co-operatively owned by its
40 member-owners representing seven regions across Canada in six sectors — agricultural,
financial, service, retail/consumer, health, and labour. Our Board’s key responsibilities include:
Our member-owner organizations employ 27,456 people and have total assets exceeding > Monitoring our financial viability
$24.7 billion. > Monitoring and overseeing our operations
> Ensuring our position in the insurance industry
> Leading the way in good corporate citizenship and sustainability
The Co-operators Group Limited > Providing leadership in the co-operative movement
Democratic Structure
40 member-owners Board Mandate and Responsibilities
appoint Our member-owner organizations appoint delegates from their region to nominate the
directors of the Board (who each serve a three-year term) and elections take place at our
110 delegates to Annual General Meeting. Our Board’s primary purpose is to act on behalf of the members of
The Co-operators and in the interest of the users of its services. They also direct the activities
related to our corporate mission. Its independent structure contributes directly to the Board’s
7 region committees effectiveness as it oversees the strategic direction and significant operating decisions, and is
who elect independent from the day-to-day management of the business.
Additionally, Board members fulfil roles on various standing and adhoc Board Committees:
the 22-member Executive, Resolutions, Investment Policy, Audit, Conduct Review, Corporate Governance,
Board of Directors of Sustainability, Community Economic Development Funds, Youth Initiatives,
and Special Donations.
The Co-operators Group Limited
11 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Growing our Membership
Our newly formed Board Sustainability Committee is responsible A broad membership base provides us with the diversity we need to represent Canadians
for overseeing the development and implementation of our coast-to-coast. Efforts to increase our membership resulted in six new member-owners
long-term sustainability policy and strategy. in 2007.
For more information, visit www.cooperators.ca/sustainability_report and click on
Our Member-Owners.
Board Development
Our Board of Directors has a wide range of business experience and varying levels of Public Policy
understanding when it comes to the insurance industry and governance trends. To enhance
Partnering with organizations and governments to advance sustainability in the insurance
director knowledge in these areas, in 2007 our Board of Directors attended two education
industry, co-operative movement, and in society will be an important part of customizing our
days (19 of the 22 directors attended the June Education Day, all 22 attended the
sustainability approach going forward. Throughout 2007 we sought opportunities to collaborate
November day) and 100 per cent of Board members were registered for TNS sustainability
with other like-minded organizations and to further sustainability dialogue, including:
e-learning course.
> United Nations Environment Programme-Finance Initiative (UNEP-FI) — In August,
In addition to Board education days, four new member-owners and 20 delegates attended
we became a signatory of UNEP-FI, a public-private partnership between the United
orientation days to learn more about the insurance business and The Co-operators group of
Nations and the financial sector. Our membership will allow us to network and
companies. In turn, the sessions provided an opportunity for our product specialists to learn
contribute to sustainability. The Co-operators is a working member of two ongoing
more about the specific requirements of our members. A substantial training and development
committees — the North American Task Force and the Insurance Working Group (IWG).
allowance (up to $18,000 per director per three-year term) is provided.
We are the first Canadian insurer to join the IWG.
Directors, with a minimum of one-year service, also participated in a peer-to-peer
> The Institute for Catastrophic Loss Reduction (ICLR) — ICLR works to reduce
assessment program. The program is designed to measure the contribution and effectiveness
disaster deaths, injuries, and property damage. It is committed to the development of
of our individual Board members on an annual basis. Summarized reports are prepared for
disaster prevention knowledge and the broad dissemination of these research findings.
each Board member and for review with the Chairperson of the Board. This feedback supports
Our President and CEO is Chairperson of the ICLR Board, and membership allows
continuous improvement and helps to shape individual director training and development
access to research findings that will assist us in understanding loss prevention and our
plans. Along with individual director assessment, the Board of Directors also measures its
risks and opportunities as an insurer.
effectiveness as a Board annually. An action plan to address issues and opportunities is then
developed and implemented.
12
Fostering Compliance In our agents: Compliance staff in our Agency Services and Sales Support department
ensure that agents and brokers carry on business in accordance with government regulations
Encouraging Transparency relating to licensing, continuing education, and general compliance. This includes making
Transparency is embedded in our corporate values and dedication to good corporate sure that agents and brokers adhere to a code of conduct and that licensing requirements
citizenship. As such, The Co-operators Group Limited and each of our major subsidiaries are met.
have an appointed Chief Compliance Officer who sits on our compliance committee. Meeting Compliance with Regulation and Legislation
three times a year, the committee shares best practices and reviews new compliance legislation.
In addition to overseeing compliance at the group level, The Co-operators Group Limited As a group of financial institutions, The Co-operators is required to make numerous filings
Chief Compliance Officer is responsible for liaising with our Board of Directors and with regulatory officials at the federal and provincial levels. In 2007, there were a few
facilitating information sharing among all of our subsidiary compliance officers. oversights where delays or omissions occurred. In all cases, action was taken to improve
these processes and ensure that such errors would not happen in the future.
In our leadership: To encourage investor confidence, the Ontario Securities Commission
set forth regulations in 2006 for companies listed on the Toronto Stock Exchange. As such, Co-operators General, The Sovereign General, L’UNION CANADIENNE, COSECO,
our CEO and CFO are required to make specific certifications regarding Co-operators Federated, and HB Group have created a compliance strategy that includes such elements as
General’s control over public disclosure and financial reporting. The Risk Management team improving processes, continuing education, and enhancing communication. We have a culture
is working with business units to implement the final requirements of the regulations and to of compliance and do our utmost to comply with the various filing regimes governing us.
establish plans to ensure compliance with these certifications.
In our staff members: When staff are hired, they are asked to review and commit to adhering
to our Staff Code of Ethics Statement (Terms and Conditions of Employment) and renew that
commitment on an annual basis. The agreement reflects policies regarding our code of ethics,
positive work environment practices (i.e., harassment policy), information security, and
privacy. One hundred per cent of staff members from The Co-operators Group Limited,
Co-operators General, HB Group, and CICL agreed to adhere to our policies. In 2007,
we moved to an online system at The Co-operators Group Limited, Co-operators General,
HB Group, and CICL. The automation of this process ensures that agreements are
recommitted to annually and reduces our paper usage.
13 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Targets & Highlights
2007 Highlights
> Developed The Co-operators Sustainability Policy and Strategy
> Amended The Co-operators Vision and Values statements
> Registered 100 per cent of our Board of Directors for TNS
sustainability e-learning course
> Established a Board Sustainability Committee
> Joined the United Nations Environment Programme-Finance Initiative
> Increased our membership by six to 40
> Developed practices for — and hosted — a greener Annual General Meeting
2008 Targets
> Develop metrics and targets to guide implementation of the
sustainability strategy and report on progress
> Deliver a baseline sustainability survey to our staff, agents,
and member-owners, and report on progress
> Increase our membership by two to 42
14
Stakeholder Relations
designed on trust
Building positive relationships enables us to identify and achieve what is most important Customizing Solutions for Co-ops
to our stakeholders. Our stakeholders are defined as those who influence our business;
The Co-operators aims to be the preferred insurance provider for Canadian co-operatives.
they include our clients, member-owners, staff members, agents and broker partners,
In working with our member-owners, we develop customized insurance solutions for the sector.
suppliers, government, media, co-operative organizations, and communities.
In 2007, we made adjustments to our Farm Program, designed for members of our agricultural
To achieve sustainable growth and ongoing success, the perspectives, ideas and input
member-owners. First launched in 2005, the program provides enhanced benefits including
of our stakeholders are needed. Through ongoing dialogue, education and engagement,
additional property coverage, a benefit for travel insurance, and the ability for farmers to
we will continue to progress towards achieving our economic, environmental, and
purchase life, health and disability benefits on a group basis. Enrolment numbers in the
social commitments.
benefit program were extremely low, with only 3,000 of a possible 44,000 farm policies
Member and Co-operative Relations participating. To increase awareness of the insurance benefits offered by our agricultural
member-owners, this program is now marketed through our agency distribution network.
Our involvement with the co-operative sector extends far beyond the relationships we have
with our member-owners. As such, we participate in efforts to ensure the long-term viability Engaging our Membership
and success of the co-operative sector.
Delegates and directors from each region meet face-to-face, along with senior management,
at spring and fall region committee meetings. An extensive report of our significant activities
is prepared and distributed prior to these meetings. Issues are discussed, applications for
Co-op and Credit Union Business 2005 2006 2007
membership are reviewed, the director election process is initiated, and ideas for new products
or services to enhance our co-op business are generated. It is also an opportunity to educate
Per cent of member-owners who choose
97% 94% 92.5% delegates on the insurance industry and our business initiatives, in addition to reporting on
to do business with us
our financial progress and strategic plans.
Per cent of member-owners who are
66% 59% 64.8% We also distributed our Insurance 101 series to 21 of our member-owners. The series
multi-product clients
introduces and explains fundamental insurance terminology and processes.
Total premium from the co-operative/credit union sector
$228 $246 $256 In 2007, our third member-owner engagement survey was administered by Hewitt Associates,
($ millions)
an external human resources firm. Results of our previous survey, and reviews with each
member-owner, show that we are improving. Results from 2007 will be analyzed, shared with
each member-owner, and action plans will be put in place to address areas with lower
engagement scores. Four additional questions were added to the engagement survey this year
to benchmark our member-owners’ perspectives on our trust and reputation, and our
sustainability activities and initiatives.
15 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Member-Owner Engagement > Members of our Board of Directors, senior management team, and staff members
2004 2005 2007
Survey Results* participated in the Canadian Co-operative Association’s (CCA) Annual General
Overall engagement score 73% 76% 81%
Meeting held in St. John’s, NL.
I believe that The Co-operators acts > The Co-operators partnered with the CCA to develop and deliver the Co-operative
100% 100% 100%
as a good corporate citizen. Corporate Governance conference in Ottawa, ON.
I feel proud to be a member-owner. 81% 84% 94%
> At the 2007 World Credit Union Conference, our President and CEO moderated a
The Co-operators is our product provider of choice. 54% 67% 57% session among credit union leaders from the United States and Poland on how credit
unions have supported and empowered lower-income and marginalized people in
I feel like a valued member-owner. 81% 88% 94%
their respective countries.
**The Co-operators balances economic,
environmental and social priorities in its N/A N/A 97% As part of our sustainability strategy, one of our key objectives is to raise awareness of
strategies and actions. sustainability issues. Throughout the year, we have engaged a broad range of co-operative
**The Co-operators is helping to increase my stakeholders in our sustainability vision:
co-operative’s awareness of sustainability N/A N/A 50%
issues and opportunities. 2007 International Co-operative and Mutual Insurance Federation
(ICMIF) Biennial Conference: As ICMIF Chairperson, our President
**I have a good understanding of
N/A N/A 58% and CEO spoke on the topic of Strategies for the Sustainable Insurance
The Co-operators sustainability priorities.
Company of the Future, and encouraged ICMIF members to adopt
**How would you rate The Co-operators
N/A N/A 93% economic, social, and environmentally sustainable practices. Our
reputation as a dedicated community partner?
involvement in the ICMIF allows us to explore challenges and
Percentages are those respondents answering ‘agree’ to ‘strongly agree’. opportunities being faced by our industry globally.
* Beginning in 2005, this survey moved from being done annually to biennially.
** Questions added in 2007 to benchmark perspectives on our trust and reputation, The ICMIF has been working actively with other interested stakeholders through the
and sustainability activities and initiatives. International Association of Insurance Supervisors and the International Labour Organization
on the provision and regulation of micro-insurance to the poor in developing countries.
Engaging the Co-operative Sector Staff members of The Co-operators have provided in-kind assistance from a structural,
Our approach to engagement in the co-operative sector involves active participation in events delivery and legal perspective. The project is ongoing and The Co-operators intends to
and forums that foster information sharing. In 2007: continue supporting this initiative.
> The organization played an active role in bringing together 125 representatives from
the Canadian co-operative and credit union sector at the 2nd Annual Corporate Social
Responsibility Forum in Guelph, ON.
16
Building Co-operative Futures Youth Conference: Our Director of Sustainability and > ICMIF Fees
Corporate Citizenship delivered a presentation on building sustainable communities at the
international youth event hosted by the Ontario Co-operative Association (On Co-op). 2005 2006 2007
Over 75 youth, aged 19 to 35, from around the world attended to consider the future of ICMIF Fees
co-operatives and their roles within the co-op movement. $15,534 $18,400 $16,536
On Co-op’s Annual Co-operative Conference and Gala: Speaking to a group representing
> The Americas Association of Co-operative/ Mutual Insurance Societies Fees
co-operatives and credit unions from across the province, our President and CEO delivered a
keynote speech on how principles of economic, social, and environmental sustainability align
naturally with co-operative values, along with sharing The Co-operators sustainability goals. 2005 2006 2007
AAC/ MIS Fees
Saskatchewan Co-operative Youth Program: Co-operators Life supports the development $15,966 $19,302 $19,697
of youth through this program co-ordinated by the Saskatchewan Co-operative Association.
In 2007, they sponsored ten youth and eight staff members to attend the week-long seminars. > Co-op Association Membership Dues
2005 2006 2007
Supporting Co-operative Growth Co-op Association Membership
Dues
$457,997 $498,928 $512,913
We continue to provide national support to the development of co-operatives in a variety
of ways:
> Emerging and expanding co-operatives benefit through our Co-operative
> Member-owners share in our success through the Member Loyalty Program.
Development Program (CDP). Since its inception in 1992, the CDP has provided
In 2007, $13 million was returned to Canadian co-operatives and credit unions
more than $1 million in grants and investments to 79 organizations. In 2007,
for their continued growth.
we directed $110,000 to 11 co-operative organizations.
2005 2006 2007
Member Loyalty 2005 2006 2007
Payments Total CDP Grants
$10.5 million $10.3 million $13 million
$122,500 $102,000 $110,000
> We support provincial, national, and international co-operative associations with
For more information about the CDP, recipients, and application forms,
over $0.5 million paid annually in membership fees. Funding is used to develop visit www.cooperators.ca and click on About Us, Corporate Responsibility,
new co-operatives and provide education and training opportunities. In the Community, Co-op Dev Program.
17 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
A Co-op Advocate > This past year marked the first graduating class from the St. Mary’s University
Masters in Management of Co-operatives and Credit Unions program. Three of
Working jointly with governments and co-operative associations, we continue to be an advocate
our staff members were among the ten to graduate this year. As a founding member,
for the co-operative movement.
our Board of Directors directed an additional $100,000 to the program.
> In partnership with co-operatives nationwide, we publicly supported a proposal
> We also provide funding to various other universities related to co-operative studies and
submitted to the federal government by the Canadian Co-operative Association
associations, including: the Association of Co-operative Educators; University of Victoria
and le Conseil Canadien de la Coopération. The proposal calls to double the
(BC Institute for Co-operative Studies); and University of Saskatchewan (Centre for the
existing Co-operative Development Initiative funding from $15 million to
Study of Co-operatives).
$30 million, to support new and emerging co-ops.
> Working together with On Co-op and other members of the co-operative sector,
we were successful in educating members of the Ontario Legislative Assembly Targets & Highlights
about the significance of co-operative business. We achieved unanimous consent in
passing a resolution that calls for the creation of a provincial co-operative secretariat. 2007 Highlights
The main objective of the secretariat would be to create a single structure within > Introduced the Insurance 101 series to 21 member-owners
government, equipped and mandated to develop and support Ontario co-operatives.
> Led the co-ordination and delivery of the 2007 Corporate Social
Responsibility Forum for credit unions and co-operatives
Global Ranking > Registered 69 per cent of our member-owner delegates for
The International Co-operative Alliance published TNS sustainability e-learning course
the Global 300 listing of major co-operatives and
2008 Targets
mutuals around the world. The Co-operators
ranked as the 120th largest co-operative in 2007. > Provide opportunity for all new member-owner delegates
Full details are available at www.global300.coop to register for TNS sustainability e-learning course
> Develop and share green meeting guidelines with
other co-operatives
Investing in Formal Education
> Develop a strategic sustainability partnership with member-owners
Teaching co-operative values and principles through formal education not only complements
> Develop plans to host the 2009 International Co-operative and
the core co-operative belief in education, training, and information sharing, but also builds
Mutual Insurance Federation Biennial Conference
awareness of the sector. This is why we continue to sponsor several scholarships and programs
across Canada in co-op education, including:
18
Agent and Broker Relations
Co-operators General maintains the third largest share of the
From its inception in 1945, our organization was built on providing insurance solutions to a Canadian property and casualty insurance market.
wide range of Canadian communities through our agency distribution network. Today, we
have expanded our client outreach with the addition of our broker partners and contact centres.
Coast-to-Coast-to-Coast Distribution Our Distribution Network
We recognize that our clients have unique needs. Our multi-level distribution network
Clients have access to our multi-level distribution network
accommodates our clients’ preferences by offering products and services face-to-face with
our agents, through a broker relationship, or over the phone with one of our contact centres. Co-operators agent retail outlets and broker partners
of The Sovereign General and L’UNION CANADIENNE 1,673
> 471 exclusive agents offer auto, home, farm, business, and travel insurance to
Contact centres 4
309 communities across Canada; 66 are licensed to sell mutual fund products.
This network is supported by 491 associate agents, of which 25 are licensed TIC Travel Insurance Coordinators Ltd.
to sell mutual fund products. Call Centre 1
For a list of agency locations visit www.cooperators.ca and click on Find an Agent.
*131 brokers represent both
> 307 brokerage contacts across Quebec. Through this network, L’UNION The Sovereign General and
L’UNION CANADIENNE
CANADIENNE markets personal and commercial insurance products, and
provides auto and property insurance through a broker in Newfoundland/ 3 4
Labrador with 11 broker offices.
1
43
> The Sovereign General is one of the major commercial insurers in Canada, 445
offering its products exclusively through 739 independent broker offices. 280 222 67 46 440 12
1 49
62
> Over 200 Licensed Insurance Representatives deliver service to clients over the 2
phone at one of HB Group’s contact centres. Three contact centres service group
1
insurance clients.
> One Agency Contact Centre supports agents by assisting auto and home clients
through extended hours of operation. Growing our distribution network continues to be a key focus in delivering on our promise
to serve Canadians in the communities in which they live.
> Our TIC call centre employs 50 Licensed Insurance Advisors who assist clients
seeking travel insurance. In 2007, work began on an agency growth strategy which focuses on identifying recruitment
opportunities, along with developing a better understanding of our agents’ growth barriers.
19 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
With this strategy, we set targets to realize significant growth in our agency distribution In 2006, we embarked upon a project to review and make recommendations about how
network over the next four years. to provide better training support to the field. The review has focused on creating a model
that supports profitable growth and helps us to be more client-focused. Implementation of
In 2006, our intention to expand distribution of our life insurance product in Quebec was the review will take place over the next three years.
announced. In spring of 2007, we redefined our approach and as such, efforts to expand in
Quebec temporarily ceased. We remain fully committed to long-term, sustainable growth Open lines of communication with our agent network is of extreme value and importance.
in Quebec, and in September appointed a President of Quebec Operations, a newly created Our President’s Agent Council (PAC), comprised of 12 agents from three regions across
position. A comprehensive growth strategy has been developed in collaboration with our the country, and the Vice-President of Agency and Sales Support, meet twice a year to discuss
subsidiaries that have existing touch points within the Quebec market. Moving forward, and resolve agent issues. We continually update our agency distribution network on corporate
our strategy will focus on incorporating our product and service offerings and activities through several vehicles, including our intranet site and internal publications.
distribution channels. We encourage and solicit feedback in the form of an annual agent engagement survey.
Based on results, an action plan is developed in tandem with our distribution managers, PAC,
Distribution 2005 2006 2007 Field Advisory Council (a group of agents from each district brought together to review issues
and opportunities with management), and Human Resources to manage and resolve critical
Agents 437 455 471 engagement issues. Creating a positive relationship with our agents has resulted in an
exceptional four-year retention rate of 95.1 per cent.
Broker Outlets 997 1,077 1,057
Client Relations
As a strategic focus, The Co-operators strives to meet the insurance and financial needs
of our clients. It’s more than just providing products and services — it’s fostering a positive
The Insurance Brokers Association of British Columbia named client experience built on trust and respect. We continue to look for opportunities to exceed
The Sovereign General number one among brokers, based on expectations and build long-lasting relationships.
a number of operational categories.
Building a Foundation for Client Relations
Our Client Relationship Management (CRM) is a business strategy that is entirely focused on
Supporting our Agents relationships and successful client interactions. Enterprise Contact Management (ECM) supports
Committing to our agents’ success in the field means providing strong support from our head our CRM philosophy. ECM is the primary tool developed to support collaboration across
office. Our Agency and Sales Support department is comprised of 18 staff members who different distribution channels to effectively manage the client experience, and is used to
provide ongoing assistance to our agents in five distinct areas: compliance; development; document and summarize our interactions to provide a 360-degree or complete view of each client.
services; systems; and support. The development area delivers extensive training programs, Providing service to clients — how and when they want it — is central to achieving our
manuals, and toolkits to our field managers, agents, and associates, and is uniquely designed client-centric focus. Based on feedback we received in focus groups, the Agency Contact
to improve recruitment, selling, and business management. Centre (ACC) was piloted in 2006 in central Ontario, to respond to clients outside regular
20
office hours. The ACC responded to 8,093 after-hours and Saturday calls in 2007. Plans are
to expand the ACC to 125 agencies in all regions (except the Atlantic due to limitations with Our Products and Services
our internal systems) in 2008. > Individual and group home, auto, and life insurance
> Farm and commercial insurance
Educating our Clients > Travel insurance
> Investment counselling
We continue to reach out to our clients through our Insurance 101 series. Our goal is to > Retirement planning
empower clients through education. The better they understand insurance, the better choices > Group benefits
and purchases they can make. The series is shared through media releases, on-hold messages, > Special risk coverage
advertorials, and is posted on our website.
2006 Insurance 101 topics:
> Why do we need insurance? Measuring Client Education
> What factors impact rates? Ensuring that our clients are well-informed is key to establishing trust. In our brand tracking
> How do insurers settle claims? survey, conducted biannually, we ask both clients and non-clients about how they feel we
> How can you manage your insurance costs? educate them about insurance.
2007 Insurance 101 topics:
> Regulatory framework Measuring Client Education
> Home insurance basics
> Auto insurance basics Apr 05 Nov 05 May 06 Nov 06 Apr 07 Nov 07
> Insurance crime and its effect on premium Clients 47% 54% 58% 59% 58% 62%
Non-Clients 23% 30% 26% 20% 24% 28%
To view our Insurance 101 series visit www.cooperators.ca,and click on About Us, Percentages are respondents giving an 8–10 rating on a 10-point scale where 10 is the best rating
Media Resource Centre, Insurance 101. From our proprietary brand tracking study completed on our behalf by Northstar Research Partners.
We also keep in touch with our clients through the Your Better Place newsletter, which is In 2006, we developed measurement tools to track our score for Trust and Reputation — one
available in both French and English to over 1.5 million households biannually. The newsletter of our six strategic areas of focus. These tools enable us to identify areas of strength and adapt
focuses on providing safety and prevention information, such as our Buckle Up Bears car seat to changes that best serve our clients and the broader community. The bi-annual results
safety program, along with insurance education. With our focus on sustainability, we released measure our trust and reputation and that of other organizations from the perspective of
our first “green” issue in June. In this issue, we asked clients to consider receiving the publication our clients and non-clients.
online; this prompted 600 clients to request an online newsletter.
21 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Providing Continuous Service
Trust and Reputation
Our commitment to providing service to our clients when they need us the most is why we
Non-Clients Clients
carefully plan how we will deliver services in the event of a crisis situation affecting our
The Co-operators Our Competitors The Co-operators Our Competitors
operations. As part of this preparation, all key corporate, regional, district, and branch
Spring offices have up-to-date business continuity plans. In 2007, we developed standards for
49% 40% 70% 58%
2006
the content, maintenance, and testing of these plans which will apply to all offices. We also
Fall have plans to deal with the special issues that could arise in the event of a pandemic.
46% 43% 73% 63%
2006
Spring In September, a large-scale simulation exercise was conducted at our Co-operators General
42% 41% 75% 62% head office, and included over 90 participants from 40 business units. Subsidiary operations
2007
Fall (The Sovereign General, L’UNION CANADIENNE, and HB Group) conducted similar
47% 45% 78% 67%
2007 simulations to test the efficiency of their plans.
Percentages are respondents giving an 8–10 rating on a 10-point scale where 10 is the best rating. Designing Fair Processes
From our proprietary brand tracking study completed on our behalf by Northstar Research Partners.
Unique to the industry, we developed four regional Service Review Panels in 1989. The panels
In 2007, we launched our client satisfaction survey to determine how well we are meeting
are comprised of clients who volunteer their time to meet four to six times per year to resolve
our clients’ expectations. The survey measures the client experience around transactions,
claims and service concerns of Co-operators General and HB Group clients. All panel decisions
claims processing, and other operational details. An external research group surveys 800
are accepted, provided the terms of the policy in question are honoured. Clients are always
Co-operators General and 340 HB Group clients monthly, for a total of over 13,000 clients
able to appeal if the decision is not in their favour.
annually. Survey results allow us to track clients’ experience over time, address service
delivery issues, and provide feedback on a regional/district and transactional basis.
Decisions by
2005 2006 2007
Service Review Panels
2007 Client Satisfaction Scores
Total appeals 54 50 80*
Co-operators General HB Group
Agreed with client 7 cases 8 cases 13 cases
Overall satisfaction 71% 68%
Agreed with
44 cases 38 cases 64 cases
Claims satisfaction 74% 67% The Co-operators
Likelihood to renew 83% 80% Reached a compromise 3 cases 4 cases 3 cases
Likelihood to recommend 74% 73%
*The increase in the number of cases is attributed to increased education and promotion of the
The results presented here are year-over-year comparison results based on the top two responses; complaint protocols by regulators and internally with our staff. In 2007, COSECO added the
“extremely satisfied” and “very satisfied”. Service Review Panel as an option to their complaint handling protocol.
22
Protecting Client Information
A Closer Look: When our Clients Need us the Most
In 2007, we addressed eight privacy inquiries in a timely and discrete manner. We received
one formal complaint, to which our Chief Privacy Officer submitted a response to the Federal
In the summer of 2007, Northwest Calgary experienced three total loss house fires.
Privacy Commissioner’s office, and are awaiting resolution.
One of these losses was a home insured by agent Bill O’Donnell. The client showed
To view our privacy policy, visit www.cooperators.ca and click on Life Events, Privacy/Legal.
T up at Bill’s office for advice just hours after the fire. Wearing only the clothes on her
Or obtain a copy at any of our agent offices. Questions, comments, or requests can be back and slippers on her feet, she told them her house had just burned down and
directed to the Chief Privacy Officer at 1-888-887-7773 or e-mail privacy@cooperators.ca she didn’t know what to do. When told her family would have to rent a hotel room
for the night, she realized her wallet was also gone.
Designing Sustainable Product Solutions
Bill responded by opening his wallet, handing her cash and his personal credit card.
Responding to clients’ unique needs is fundamental to our goal of providing financial
He also arranged accommodation for her family at a local hotel. The next morning,
security to Canadians. In 2007, we created products geared towards the sustainability of our
he attended the scene to assess the damage personally. This is the level of service
communities, solidifying client relationships, and protecting the environment.
we strive to offer our clients.
These products include:
Solutions for the voluntary/non-profit sector: To protect the sustainability of the voluntary/
non-profit sector, we designed the Community Guard product to specifically address the Delivering on our Claims Promise
insurance challenges of this important and underserved sector. We piloted Community Guard
When our clients have suffered a loss, they can count on over 1,299 claims staff in 75 locations
in Alberta in the fall of 2007, and have issued 24 policies effective December 31. A more
across Canada to deliver on the promise made at the point of sale. Since 2006, our clients have
formal plan to enhance financial support to the Canadian non-profit sector is being developed.
been backed by our Claims Guarantee. Designed to give clients peace of mind, the guarantee
Providing Insurance to Canada’s Muslim population: In 2007, in partnership with housing offers no-obligation claims counselling, 24/7 claims service, accident forgiveness in certain
co-operatives, we introduced insurance policies compliant with Sharia law, known as Takaful situations, and access to our service review panel.
insurance. The first policies were written with HB Group/COSECO in May 2007, and we now
have 27 policies. We are the first Canadian insurance provider to create products to serve the
CGIC Consolidated* Claims 2005 2006 2007
growing Canadian-Muslim population. dollars paid-all lines
(in millions) $1,065 $1,136 $1,274
Offering solutions for the wind energy industry: The Sovereign General’s new windmill
product (named Windsurance) has been designed with smaller investors in mind. *CGIC Consolidated is comprised of Co-operators General, The Sovereign General,
Traditionally, investors need to purchase separate coverages for each stage of the turbine L’UNION CANADIENNE, COSECO and Equitable.
construction. Windsurance coverage begins at the site-preparation phase and continues
through until the production phase, eliminating the need to seek various insurers/policies. To view our Claims Guarantee, visit www.cooperators.ca and click on Claims, Claims Guarantee.
23 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Satisfaction and Engagement
Encouraging a culture of highly-involved and committed staff members is a key focus
Targets & Highlights
area, as engagement affects our ability to retain and attract a highly-skilled workforce.
2007 Highlights Consequently, we have identified an engagement score of 80 per cent as one of our corporate
targets. This is an ambitious goal, and we are close to achieving it across all our companies.
> Created and launched our Community Guard product for the
We have seen increasing aggregate satisfaction year-over-year, as measured in our annual
voluntary/non-profit sector
engagement survey conducted by Hewitt and Associates, an external human resources firm.
> Introduced Takaful insurance, in partnership with housing
Results in 2007 indicated improved engagement in five out of eight of our companies.
co-operatives
Human Resource departments at each company review the results and work together with
> Developed Windsurance, a new windmill product designed with staff members and management to create action plans and address issues. To improve scores
smaller investors in mind in our subsidiaries, engagement has been added as an agenda item for every Human Resources
meeting, and an engagement target is included in our senior management’s performance agreements.
> Introduced four new educational themes into the Insurance 101 series
2008 Targets
Engagement scores across our companies
> Research opportunities to offer sustainability insurance products to
2005 2006 2007
support clients and manage their environmental risk
Aggregate 75% 76% 77%
> Develop and offer sustainability education information for our clients
In 2007, we had an 84 per cent participation rate in our staff engagement survey.
> Expand the Community Guard product across Canada
To view three-year results by company of our staff engagement scores,
visit www.cooperators.ca/sustainability_report and click on Staff Engagement.
Staff Relations A Workplace of Choice
The dedication and skill of our staff members will enable our success now, and into the future. Our efforts to create a positive workplace have resulted in a number of our companies achieving
That’s why we have built a positive work environment that respects the talents, challenges, and placement on the “50 Best Employers in Canada” list for the fifth consecutive year. Rankings are
goals of our workforce. Through flexible work options, competitive rewards, and tools that foster published annually in The Globe and Mail’s Report on Business, and are determined by examining
a balanced approach to work, we are designing a workplace that motivates our staff members staff members’ feedback, human resources practices, policies and procedures, and alignment
to excel. between staff members and senior management.
24
Diversity
A Closer Look: Taking Steps to Improve Engagement We are committed to workplace diversity and equity. Our hiring practices are based solely
As staff engagement is such a critical component of our organization’s success, on candidates’ qualifications, education, and experience.
we consider any gaps as a serious matter that requires action. In 2006, our
engagement survey feedback indicated that career opportunities and recognition
2005 2006 2007
were areas that needed focus.
Women in
To gain a better understanding of the issue, we administered a follow-up survey Management
E M S E M S E M S
to staff at The Co-operators Group Limited, Co-operators General, HB Group, CICL
and CDCL, in spring of 2007; 1,377 (48 per cent) of staff members responded. The Co-operators
30% 73% 100% 17% 61% 100% 29% 69% 100%
As a result, we created a new internal career opportunities website and have Group Limited
improved our Recruitment and Selection Guidelines to provide more clarity. We have Co-operators
24% 47% 78% 21% 54% 72% 20% 57% 74%
also reviewed our recognition programs to ensure there is clear understanding of General
the objectives. We will continue to focus on these areas to positively influence The Sovereign
0% 32% 68% 0% 40% 61% 0% 42% 75%
staff member scores. General
L’UNION
11% 48% 69% 11% 54% 56% 11% 40% 48%
CANADIENNE
Co-operators Life 27% 36% 92% 30% 41% 92% 44% 54% 79%
Among the “50 Best Employers in Canada” HB Group 0% 50% 64% 0% 62% 74% 0% 57% 56%
and “25 Best Small Companies”
The Co-operators Group Limited., CICL 27% 50% 100% 30% 67% 100% 40% 50% 100%
Co-operators General, HB Group, CDCL
and CICL were grouped as “The CDCL 0% 33% 0% 0% 0% 0% 0% 0% 0%
Co-operators” and ranked 13th. L’UNION
CANADIENNE ranked 39th. In the small TIC 38% 50% 71% 43% 58% 67% 40% 42% 73%
company category, The Sovereign General
E= Executive, M= Manager, S=Supervisor
ranked 24th out of 25.
25 The Co-operators Sustainability Report 2007
Our Workforce - Staff Count by Province
BC AB SK MB ON QC NB NS PE NL NT Total
The Co-operators Group Limited Staff Member Turnover and Retention
Full Time 0 1 6 0 102 4 0 0 0 0 0 113
The sustainability of our workforce lies in our ability to retain
Part Time 0 0 0 0 0 0 0 0 0 0 0 0 highly-skilled staff members. Our overall retention rates remain
Co-operators General high across the group of companies, with a two per cent increase
Full Time 17 484 40 10 1,349 0 236 35 14 40 0 2,225 since 2005. The average years of service dedicated by staff
members is 9.93, and is high in comparison with other
Part Time 0 6 3 1 69 0 3 0 0 2 0 84
Canadian companies.
The Sovereign General
Full Time 51 117 0 4 43 17 0 20 0 0 0 252
Our voluntary turnover rate across the group of companies
remains low. An area for improvement however, is within our
Part Time 0 9 0 1 0 2 0 0 0 0 0 12
claims call centres. In the west particularly, we experience high
L’UNION CANADIENNE turnover as a result of internal staff promotion to other parts
Full Time 0 0 0 0 0 346 0 0 0 0 0 346 within the organization. We have increased our focus towards
Part Time 0 0 0 0 0 31 0 0 0 0 0 31 a more structured selection process for these roles and are
Co-operators Life currently evaluating our assessment tools to ensure we are
recruiting those who find the contact centre more satisfying
Full Time 0 3 588 0 9 3 1 2 0 0 0 606
for a longer time frame than is currently the case.
Part Time 0 0 17 0 0 0 0 0 0 0 0 17
HB Group For the average years of service and additional human
resources information visit www.cooperators.ca
Full Time 5 10 12 1 383 49 5 0 0 15 0 480
/sustainability_report and click on Human Resources.
Part Time 0 1 2 0 10 3 0 0 0 0 0 16
Co-operators Investment Counselling Limited
2005 2006 2007
Full Time 0 0 12 0 28 0 0 0 0 0 0 40 Staff Retention Rates
Part Time 0 0 3 0 0 0 0 0 0 0 0 3 88% 91% 90%
Co-operators Development Corporation Limited
Full Time 8 1 0 0 11 0 0 0 0 0 0 20 2005 2006 2007
Voluntary Turnover
Part Time 0 0 0 0 0 0 0 0 0 0 0 0 Rates
6.09% 6.18% 6.54%
Travel Insurance Co-ordinators
Full Time 66 5 0 0 136 5 0 0 0 0 0 212
Part Time 2 0 0 0 22 0 0 0 0 0 0 24
Provincial 149 637 683 17 2,162 460 245 57 14 57 0 4,481
Totals
Total Full Time 4,294
Total Part Time 187 26
Performance Management Staff Recognition
Performance management is a collaborative process between managers and staff members Our unique Service Excellence program, created in 1985, rewards peer-nominated staff who
to set clear expectations and to assess progress. Our belief in pay-for-performance rewards excel in providing outstanding service to both clients and peers. Out of 580 nominations,
individual contributions and encourages the best possible performance. Regular dialogue 48 staff members were selected to attend the 2007 National Service Excellence Conference held
is encouraged throughout the year to ensure that performance is on track. in St. John’s, NL, where they met members of the senior management team and shared ideas on
enhancing service excellence. All of our companies (with the exception of L’UNION CANADIENNE
Compensation and Benefits and The Sovereign General) were involved in the Service Excellence program in 2007.
Each year we assess the marketplace to ensure our salaries are competitive with similar
positions within the insurance industry. We offer a comprehensive, premium-free benefits
Wellness
program, administered by our life insurance company. We offer an Employee Assistance Program (EAP), available 24 hours a day, seven days a week.
The program is a voluntary, confidential counselling and referral service accessible by all staff
We placed among “Canada’s 30 Best Pension and Benefits Plans,” published in Benefits Canada
members and their immediate family members at no cost. Services include self-assessment
magazine. This year, L’UNION CANADIENNE, The Co-operators (The Co-operators Group
tools and information regarding financial, family, mental health, addiction, and work matters.
Limited, Co-operators General, HB Group, CICL, CDCL), and Co-operators Life, ranked 14th,
24th and 25th respectively. According to our engagement survey, our staff satisfaction with LifeWorks provides our staff members with the tools and personal resources to improve their
benefits is on par with top employers across the country. Pension and benefits are available to work-life balance. They offer a wealth of information, support, and online resources, totally
all permanent full and part-time staff. For more information on the value of salaries and staff confidential.
incentives paid in 2007, please refer to page 35 of this report.
For more information, visit www.cooperators.ca/sustainability_report and click on Wellness.
To attract and retain top-notch talent, we also offer a wide-range of additional benefits as
part of the total compensation for staff members.
2005 2006 2007
Usage of EAP
For more information, visit www.cooperators.ca/sustainability_report and click on 30.51% 25.80% 25.92%
Additional Benefits.
Listening to our Staff
We look for opportunities to engage our staff members in discussion, solicit feedback,
In 2007, we introduced a Military Leave Policy to support our
and generate new ideas.
staff members in the military reserves.
Strategic Planning Sessions: When we were shaping our strategic plan and priorities
for the next four years, our President and CEO along with members of senior management,
conducted 15 focus group sessions with over 180 staff members across the country.
27 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Building Our Sustainability Strategy: Through focus groups, we talked to 150 staff members
to help build our sustainability policy and strategy and involved 500 staff members to provide 2005 2006 2007
CIP and FCIP designations
feedback on our challenges and ideas for implementation. We also created a sustainability
CIP FCIP CIP FCIP CIP FCIP
resource section on our intranet and established an internal e-mail box specifically for staff
questions and comments. Co-operators General 675 107 698 99 709 101
Idea Xchange: Launched in late 2007 as a three-month pilot project, this online forum
The Sovereign General 50 15 49 12 66 15
encourages staff members and our agency distribution network to share ideas on products,
services or trends related to The Co-operators and our industry. Everyone is able to comment L’UNION CANADIENNE 51 20 55 19 54 18
and vote on ideas, as well as refine those of others. In 2007, we had over 1,500 registered users,
and over 21,000 unique views for all posts. HB Group 57 10 55 10 47 9
Invested in Learning and Development Co-operators Life 14 0 14 0 14 0
We encourage our staff members’ growth and development through a variety of educational
programs. Staff members benefit from over 20 internal courses taught by our trained learning
specialists. Subjects taught include development in languages, leadership, career planning,
We granted a total of $28,750 to 23 students through our Scholarship
competencies, and TNS sustainability e-learning course.
Program, an increase from $24,400 and 19 students in 2006.
Money invested in 2005 2006 2007
Training and
Development $3 million $3.5 million $3.5 million Leadership Development
Our leaders play a vital role in shaping a workplace that is both positive and productive.
In 2007, an average of $781 per staff member was invested in training and development. We support leaders through various training programs including SHAPE, a program designed
This compares favourably with the average of $699 spent per staff member as determined by to build core supervisory skills and LEAD (Leadership Enhancement and Development),
the Conference Board of Canada, an independent, not-for-profit applied research Canadian a program designed to facilitate professional growth for our leaders. In 2007, 23 of our leaders
organization that creates and delivers insights about economic trends, public policy and across the group of companies completed our LEAD program and 18 attended SHAPE.
organizational performance.
Ensuring the long-term availability of a trained and skilled workforce in our industry is why
we recognize and reward staff members who receive their Chartered Insurance Professional
(CIP) or Fellowship Chartered Insurance Professional designations (FCIP). The number of
CIPs and FCIPs within our organization continues to grow.
28
their needs and develop solutions that will ensure their long-term viability. The following
two comments are illustrative of the value community members place on dialoguing with us
Targets & Highlights
on our plans and initiatives.
2007 Highlights
> Ranked one of the “30 Best Pension and Benefits Plans” “I wish there was an opportunity for all Canadians to delve into the
current issues around insurance as the CAP groups have. I believe
> Created a new policy to support staff members in the military reserves
the feedback provided by the diverse CAP members helps
> Five of The Co-operators group of companies ranked on the The Co-operators adapt to the changing needs of the
“50 Best Employers in Canada” list Canadian consumer.”
Diane Reid, Calgary, AB, CAP member.
> The Sovereign General ranked 24th on the “25 Best Small Companies” list
> Registered 403 staff members (10 per cent) for TNS sustainability “The CAP groups are just another great idea and example of
e-learning course The Co-operators leadership in the community. Through the CAPs,
The Co-operators reaches out to learn about and understand community
> Consulted over 650 staff members through the development and
concerns; share their strategies and successes; and demonstrate their
implementation of The Co-operators Sustainability Policy and Strategy
leadership role in the company, community, and country. I always find
> Achieved an aggregate staff engagement score of 77 per cent the meetings interesting, informative, and interactive. I look forward to
each and every one.”
> Involved 537 staff members in the “Paid Day to Volunteer” program
Ron Lord, Guelph, ON, CAP member.
2008 Targets
> Achieve an aggregate staff engagement score of 80 per cent
Establishing Forums of Discussion
> Register an additional 10 per cent of staff members in
We began establishing a number of Community Advisory Panels (CAPs) across Canada in
TNS sustainability e-learning course
2004. CAPs create a forum where we interact with community members, and listen to advice
> Implement a staff sustainability communications program and recommendations on our product and service offerings, as well as any matters relating
to our community involvement. We have established CAPs in Calgary, Guelph, Ottawa,
Moncton, Halifax, and most recently St. John’s. Each CAP is comprised of 10 –12
Community Relations knowledgeable community members from various sectors such as: healthcare, education,
business, environmental, co-operatives, youth, and seniors.
We believe in listening to what communities have to say. With an understanding of the
financial and insurance issues faced by Canadian communities, we can better respond to Each CAP meets three times per year and an independent facilitator ensures a productive
29 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
dialogue with our senior management. Topics
discussed in 2007 included: insurance fraud, CAP Member Engagement Survey Results 2005 2007
community safety, sustainability, emergency
preparedness, reinsurance, affordability and Have you felt comfortable sharing your views and opinions at the
availability of insurance, pandemics, and global 100% 100%
CAP meetings?
warming.
In general, have you found the information sessions informative
88% 98%
Sharing our Sustainability Message and useful?
In 2007, a presentation on The Co-operators Do you feel you have contributed to The Co-operators decision-making
n/a 95%
Sustainability Policy and Strategy was shared with process?
all CAP members who were asked for their feedback
Do you think that Co-operators senior management has a better sense
on our revised Vision and Values statements, 81% 96%
of what consumers and communities want due to the CAP’s feedback?
sustainability policy, and strategy. Their feedback
was forwarded to our Sustainability and Corporate Does the CAP provide an effective forum for The Co-operators to
78% 80%
listen to, understand, and respond to external concerns?
Citizenship Department for consideration and
inclusion in our plans moving forward.
Walt Palmer delivers Al Gore’s powerful The biennial survey was sent to 59 CAP members in 2007 with 46 responding for a 78 per cent
Based on a request received from our Guelph CAP, “An Inconvenient Truth” presentation. response rate, up significantly from just a 33 per cent response rate in 2005. Percentages are those
respondents answering “agree” to “strongly agree”.
we hosted a climate change presentation in May
with over 500 members of the community and staff members attending. The goal of the
presentation was to educate on the critical issues surrounding climate change in an engaging
way and to stimulate dialogue. Targets & Highlights
We also developed an interactive CAP website in 2007 featuring online reports and forms, 2007 Highlights
presentations, and a quick poll feature. This approach to ongoing communication will > Formed a new Community Advisory Panel in St. John’s, NL
dramatically reduce paper usage.
> Consulted our six Community Advisory Panels on The Co-operators
Measuring Engagement Sustainability Policy and Strategy
Every two years we survey all CAP members to measure engagement levels. Feedback 2008 Targets
received from the CAP evaluation is shared with our Board of Directors, senior management > Conduct “green” Community Advisory Panel meetings
group, regional vice-presidents, and district managers and is used to improve, revise,
or expand the program.
30
Socio-Economic Contribution
designed on accountability
As a responsible corporate citizen, we add to the sustainability of the Canadian economy We also support the campaign through staff secondments and senior management leads.
through tax contributions, employment opportunities, and community investment. This year, staff members of The Co-operators in Guelph were presented with the United Way
Operating exclusively in Canada, we believe in supporting the people and communities of Guelph and Wellington Campaign of the Year; the Leadership Giving Award (largest
that have contributed to our success for over 60 years. increase in leadership donors) and a Gold Award (based on participation and contribution
levels per staff member).
Community Investment
Directed Donations
We believe that an organization is only as strong as its community. Building strong Each year, staff members, directors and delegates are able to direct $50 and $100 respectively
communities across Canada is something we strive for through our volunteer efforts, through The Co-operators Directed Donations Program. In 2007, those amounts were
community partnerships, and financial support of local champions and organizations. raised to $75 and $125 respectively. For the first time, our director/delegate program was
As a corporate partner in communities across Canada, we are accountable to the places electronically delivered; this program saw $13,250 directed to 84 different organizations.
in which we do business — and believe that it is our role to help them flourish. Staff members chose 99 charitable organizations to receive a total of $210,825. The participation
Corporate Donations Policy rate among staff members, delegates, and directors was 95 per cent.
As a large Canadian co-operative organization providing insurance and related products, Corporate Giving
we provide support to organizations that contribute to safe, healthy, and sustainable communities. In 2007, we contributed $600,583 to organizations that support communities across Canada.
We’ve made donations to organizations who meet the following criteria: helps a significant For example:
number of people; helps people to help themselves; has The Co-operators involvement > AIESEC Canada: As the world’s largest student-run organization, AIESEC teaches
and/or support; and has broad community support. youth leadership skills and becomes involved in global internships in partnership
with business and 27 Canadian universities. As a local development partner,
Corporate Donations Programs
The Co-operators contributes to the future of young Canadians by supporting their
Our Corporate Giving Program — which includes supporting the United Way, Directed leadership development. An AIESEC member sits on most of our Community
Donations and Corporate Donations — supports national, charitable organizations in the Advisory Panels.
areas of health, business, education, environment, safety, and social well-being. In 2007,
> Community Foundations of Canada (CFC): The Co-operators is a founding partner
a total of $1,018,956 was contributed to these areas.
with CFC, which provides strategic philanthropic leadership to 155 community
United Way foundations across Canada. Our financial support enabled the development of a
Annually, we actively participate in the United Way Campaigns across Canada. In 2007, strategic report and the organization of a national forum for discussion.
our contributions totalled over $534,000, with more than $285,000 coming from staff member
contributions and events. Corporately, we contributed $47 per staff member, an increase of For more information on our Corporate Giving Program, visit www.cooperators.ca and
$3 from 2006. More than 60 staff volunteers organized events, arranged presentations, click on About Us, Corporate Responsibility, In the Community, Corporate Giving.
and solicited donations.
31 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Corporate Giving Program Allocations
The Co-operators has been a member of Imagine Canada since 1997 —
2005 $809,290 2006 $864,267 2007 $1,018,956
a program designed to promote public corporate giving, volunteering, and
support for the community. In 2007, we contributed over $2.6 million
across Canada representing 1.26 per cent of our pre-tax profit.
Community Economic Development
Corporate Giving (68%) $549,705 Corporate Giving (65%) $564,011 Corporate Giving (59%) $600,583 In 2007, we donated $315,000 to 16 organizations supporting marginalized individuals in our
Directed Donations (17%) $141,000 Directed Donations (18%) $152,900 Directed Donations (22%) $224,075
country. Since its inception in 1995, the Community Economic Development (CED) Fund has
United Way (15%) $118,585 United Way (17%) $147,356 United Way (19%) $194,298
contributed over $1.8 million to 51 organizations that improve the social economy in Canadian
communities and move individuals toward self-reliance.
Company-wide Giving Two significant modifications were made to the CED Fund in 2007. For the first time,
the CED Fund offered multi-year grants that provided recipient organizations with longer term
Our support of Canadian communities extends beyond our Corporate Giving Program planning options and increased financial stability. Six organizations received up to three years
with several members of our group of companies reaching out to make a difference. of funding. Secondly, we implemented a new funding formula that will permit us to make a
> The Children’s Wish Foundation continues to be The Sovereign General’s charity more pronounced impact on the Canadian social economy in the future. The formula links the
of choice, contributing $200,000 annually. Staff members and brokers remain growth of the fund to our equity and then applies a percentage of pre-tax profit as the means
involved with fundraising activities to further their support. to direct our annual contribution. Since 1995, The Co-operators has directed $5.2 million to
the CED Fund. The terms outlined by this new formula will mean that by 2012 the fund is
> HB Group contributed a total of $50,000 to four charities: Family Association anticipated to grow to as much as $10 million.
for Mental Health Everywhere, World Vision Canada, Canadian Breast Cancer
Foundation, and Soutien O Sinistres. For more information on our CED Fund, visit www.cooperators.ca and click on
> L’UNION CANADIENNE was named “2007 Corporate Star” for its support of About Us, Corporate Responsibility, In the Community, CED Fund.
Centraide-Quebec (United Way). Supporting the communities in which their
brokers operate, L’UNION CANADIANNE contributed over $77,000 to 53 With a total corporate contribution of $4.2 million, we strive to make a
charitable organizations. real difference in the quality of life of Canadians and the sustainability
> Co-operators Life contributed over $500,000 to various charitable organizations, of our communities. From volunteerism to community partnerships to
including the Regina Food Bank, Hospitals of Regina Foundation, Wiserider, philanthropy, our balanced approach to investing in communities helps
William Booth Special Care Home and Regina Symphony Orchestra. Canadians of all ages enhance their well-being.
32
> In an effort to enhance community safety, the familiar red and white Block Parent
A Closer Look: CED Multi-year Funding sign received a facelift in 2007. In addition to our annual support, we provided an
additional $40,000 to the Block Parent program to assist with the cost of replacing
“The Co-operators grants in the last three years have and designing signs with new security features. The redesigned signs will assure
been a key reason the Saint John Community Loan Fund adults and children that a Block Parent home is a safe haven. As of 2006, 201 agents
has been able to increase its impact in our community. (44 per cent of our agency force) participated in the program. In 2007, 14 more
This support has created a full-time staff dedicated to agents, for a total of 215 (46 per cent of our agency
300 participants in our financial literacy training and force) registered as a Business Block Parent.
doubled our loan pool. In 2006 at the Canadian Community
Investment Conference, we highlighted our programs, > To support our youth with responsible decision
how we work together and also said multi-year funding was key to creating stability making, we partnered with Juno award-winner,
and innovation in the sector. The Co-operators listened by taking my statement to Grammy-nominee Mitch Dorge (former drummer
their Board who acted by creating multi-year funding grants. This action indicates with the Crash Test Dummies) for In Your Face
how responsive The Co-operators is to the needs of their partners and their and Interactive. Mitch delivers a unique,
community. Very specifically it has meant a boost and has enabled us to pursue thought-provoking presentation that takes an
our latest project. The Co-operators has been key to our success at meeting local honest, intense look at responsible choices around
needs in an innovative and sustained way.” drugs and alcohol and personal safety issues.
Mitch visited 57 schools and spoke to over 20,000
Seth Asimakos, Executive Director, Saint John Community Loan Fund students across Canada.
Visit www.mitchdorge.com to learn more.
Committed to Safety for all Ages
> In partnership with Bringing an Awareness
As an insurer, we look for opportunities to minimize risk and promote safety among people of Senior Safety Issues to the Community
of all ages. Close to $350,000 was directed to philanthropic initiatives through the following (B.A.S.S.I.C.), we produced and distributed 165,000 copies of our Safe Seniors
programs: calendar. The free calendars are available in both French and English and offer
> Our Buckle Up Bears car seat safety clinics instruct parents and caregivers how tips and suggestions on how seniors can lead healthier, safer lives.
to properly buckle their children to increase their safety in vehicles. We trained
258 staff members, agents and community partners as car seat safety inspectors,
and conducted 96 car seat clinics, for a total of nearly 1,600 car seats inspected
in 2007.
33 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Staff Member Volunteerism Agent and Broker Volunteerism
Our staff members go above and beyond in their roles within the organization by actively Our unique distribution network across Canada allows for representatives of The Co-operators
supporting the communities in which they live, as demonstrated by their many hands-on to make a difference in communities coast-to-coast-to-coast. Our agents and brokers go
volunteer efforts. beyond meeting the insurance needs of their clients by actively contributing to the
communities in which they live and work.
Paid day to volunteer: As an organization that encourages volunteerism, six of our seven
companies offer one paid day to volunteer at a location of their choice. The Sovereign General Labrador City, NL: Leading Labrador City’s volunteer firefighter force as recently appointed
offers two paid days to volunteer, specifically with the Children’s Wish Foundation. In 2007, Deputy Chief, participating on various boards, and fulfilling duties as a member of the
537 staff members participated in the program, with over 4,252 hours contributed to Honour Guard, agent Rod Connolly spends on average 20 hours a month at the fire
communities across Canada. department conducting training, plus additional time responding to emergencies. As Rod
commented, “people recognize volunteers, everyone should do some form of volunteer work
Staff member volunteer group: Volunteers in Action is a staff-driven and led
in their community.”
grass-roots volunteer program. Beginning in Calgary in 2002, this group has expanded
to Guelph, Mississauga, and Moncton. Highlights include: Markham, ON: In an effort to provide affordable access to all local children, the Unionville
Milliken soccer club found itself in financial trouble five years ago. Agent Bill Bachra, having
> Calgary, AB – Raising $26,000 for the Alberta Amputee Sports and Recreation
been involved with the club for eight years, stepped in to help by becoming the Director of
Association during their annual golf tournament, the Calgary group also
Sponsorship. Over the last three years, Bill has raised close to $100,000 for the club, which
celebrated its fifth anniversary in 2007.
has translated into over 2,500 children being able to participate in affordable recreation.
> Guelph, ON – Partnering with Habitat for Humanity, this chapter participated
Airdrie, AB: The Airdrie Festival of Lights, the largest free outdoor walk through light display
in the first ever Guelph build. On a monthly basis, the group prepared and served
in western Canada, relies solely on the generosity of sponsors, visitor donations, and the
meals at the Norfolk Youth Food Program. Significant time contributions were
efforts of volunteers who accumulate more than 5,000 hours during the festival season.
also given to the Guelph Food Bank.
Agent Mike Acheson and staff from his agency rallied 32 volunteers to support the festival,
> Mississauga, ON – Volunteering and contributing to the Credit Valley and have contributed $2,750 to the cause.
Conservation Foundation, which is committed to the restoration and
St-Eustache, QC: An important part of the broker’s corporate culture is to encourage
rehabilitation of the Credit River.
philanthropic activities such as collecting funds and providing time and expertise to different
> Moncton, NB – Assisting once a month at the Mobile One Soup Kitchen, charities. Over the last few years, L’UNION CANADIENNE, in a joint effort with Le Groupe
and volunteering at the Pregnancy Resource Centre. Cyr Inc., has made various donations to the Émile-Laviolette Foundation which provides
breakfasts in elementary schools, assistance to teenagers with difficulties/problems in school
and also helps drop-outs with their social re-entry.
34
Adding Value to Canadian Communities
Our business operations provide job opportunities in many locations across Canada.
Headquartered in Guelph, ON, we have major offices in Calgary, Regina, Moncton,
Mississauga, Quebec City, and Montreal, as well as numerous sales and claims offices
across the country. We have more than 4,000 staff members with an annual payroll of
about $267 million. In 2007, we paid more than $12 million through our annual employee
incentive program to reward staff member performance.
Staff salaries ($ millions) $267.4
Employee incentive program ($ millions) $12.7
Debt Financing
Mitigating clients’ risk and protecting their assets lies at the heart of our business.
We contribute to Canadian communities through our various corporate donation programs.
In a few instances we have provided financial support to small business, mostly emerging
co-operatives in Canada. The chart below provides an outline of these loans.
Debt Financing by Province
British Columbia $362,000
Ontario $80,000
Total $442,000
35 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Taxes
To view three year comparative data of our consolidated tax expenses,
The following represents the federal and provincial income, capital, premium, and other visit www.cooperators.ca/sustainability_report and click on Tax Expenses.
taxes payable for 2007. Taxes in various forms make up a significant portion of our
operating expenses.
2007 CONSOLIDATED TAX EXPENSES (in $000 dollars)1
Targets & Highlights
Income Tax Capital Tax Premium Tax Other Taxes2
2007 Highlights
Federal $50,247 $0 $0 $34,773
Provincial > Exceeded the Imagine Canada guidelines by contributing 1.26 per cent
of our pre-tax profit to Canadian communities
British Columbia 1,023 6,197 446
Alberta 4,646 15,979 721 > Achieved 95 per cent participation in our Directed Donations Program
Saskatchewan 968 4,274 1,617 2008 Targets
Manitoba 444 74 1,776 37 > Contribute a minimum of 1 per cent of our pre-tax profit to
Ontario 13,974 178 32,694 20,704 Canadian communities
Quebec 1,270 23 9,334 1,506 > Expand the In Your Face and Interactive presentation on drugs,
New Brunswick 941 2,255 1 alcohol and personal safety to youth across Canada
Prince Edward Island 260 790 46 > Distribute a “how-to” DVD on car seat safety to educators and
Nova Scotia 812 110 3,073 70 public health organizations
Newfoundland 816 2,889 6,899
Territories 140 420 11
Total Provincial 25,296 385 79,681 $32,058
Total $75,543 $385 $79,681 $66,831
Total of all taxes paid $222,440
1
Income tax amounts are estimates for 2007 as at February 13, 2008.
2
Other taxes include commodity (provincial sales and goods and services taxes),
health levies, property and business, payroll and other miscellaneous taxes.
36
Environmental Practices balance
designed on
Balancing our triple bottom-line relies upon efforts to minimize the impact we have on As part of the world’s largest industry, we recognize that we have the potential to make
the natural environment. We believe in managing our daily operations in a way that is a significant impact on reducing climate-related financial losses. As well, we have the
environmentally responsible, and works towards our goal of decreasing our environmental opportunity to offer products that may reduce climate change impacts and encourage
footprint and helping our clients manage their own. environmentally responsible behaviour. Areas of opportunity include products related to
energy efficiency, green building design, renewable energy, bio-fuels, sustainable driving
Climate Change practices, and carbon emissions trading. We are just beginning to explore these ideas and
As an insurer, recognizing and managing risk is at the core of our business. Climate change recognize the need to move quickly in order to keep pace with our global competitors.
has become an increasing threat to the sustainability of our planet’s resources; it has also been
named as the greatest risk facing the insurance industry in history.
FortisBC presented CDCL with an environmental award for its Osoyoos,
The industry has been pressed to respond to an increasing number of severe and destructive
BC development, Casa Del Lago, in recognition of its outstanding
weather events. There is a growing amount of scientific research that indicates global warming
contribution to the environment and achievements in energy efficiency.
is contributing to the intensity and frequency of hurricanes, droughts, wildfires, and floods.
The cost of damage from natural disasters has doubled every five to seven years since the
1950s. In 2007, our company experienced an increase in claims severity as a result of the Safer homes prevent loss
summer storm activity in western Canada. This is an alarming trend for the insurance
industry, and is not sustainable. Loss prevention is a key focus for our industry, and is especially an area of concern and
opportunity as we look for innovative solutions to respond to high-risk coastal locations and
The impact of climate change on the insurance industry will go far beyond increased claims. those prone to storm activity. In partnership with the Institute of Catastrophic Loss Reduction
It will eventually impact the way the industry is regulated, how we underwrite risk, and our (ICLR), we have developed the Designed for … safer living program. Our first safer living
capital requirements. The ripple effects of these impacts will be felt in all facets of the home was built in 2006 in West Point, PE. It was built to withstand winds exceeding 200 km/hr;
global economy. its design and many special construction features far exceeds existing building codes.
We are approaching this issue in a holistic manner. In addition to evaluating and preparing The Co-operators funded the additional 20 per cent cost of engineering and fortifying the home.
for financial losses associated with the growing climate change risks, we are evaluating our In 2007, we built one additional safer living home in Sudbury, ON, and significantly reduced
own business practices, our opportunities to influence and incent our clients and stakeholders the extra costs of building to safer living standards. Our initial target of building four homes in
(including government policy), as well as evaluating our product offerings. Through our 2007 was not achieved due to difficulty in finding suitable candidates for the program due to
sustainability policy and strategy, we have made a commitment to develop a climate change the restrictive criteria.
strategy that will consider all of this, beginning with an assessment of our internal operations.
We will measure our carbon footprint, set targets, and continually look for ways to improve Scientific research related to loss prevention is gathered through the institute and shared with
our activities to reduce our greenhouse gas emission, to help our clients manage their own our organization. Ongoing involvement with ICLR will help us to better understand, identify,
climate risks, and to present our ideas to governments and the Canadian public. and prepare for loss prevention.
37 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
Weathering the Storm A Closer Look: Small Changes Have Big Impact
In 2007, Prince Edward Island was directly hit by tropical storm Noel.
Pending the development of Company-wide tracking mechanisms and
Owners of our first Designed for … safer living home noted the wind —
with gusts of 120 km/hr to 140 km/hr — was so loud that they couldn’t baseline targets for paper and waste reduction, some departments have
hear one another speak. The home however, stood strong against the begun to implement department-level sustainability goals. Our Financial
winds and was not damaged in the storm. Accounting Services (FAS) department is one that has made a concerted
effort to track and reduce their waste. In 2007, sustainability targets were
incorporated into each manager’s yearly goals to establish a baseline of
paper usage and reduce overall consumption by 10 per cent.
Sustainable Claims Practices
Co-operators General Claims 2005 2006 2007
FAS staff took up the challenge and formed the
FAS Sustainability Committee.The enthusiasm
# of major weather events 46 35 58
demonstrated by staff allowed the department
# of home claims filed 7,324 3,807 3,896
to exceed its goals and achieve a paper use
Note: Claims were higher in 2005 due to a major weather event in a densely populated area. reduction of 18 per cent or 1,350 pounds.
Damage incurred in automobile collisions and storm damage to property creates a significant
amount of waste to landfill. In our partnership with the ICLR, we are developing a better
Responsible Resource Management
understanding of how damage occurs in homes through a research project conducted with the
University of Western Ontario. We anticipate that research findings will be used to influence As a business with operations in hundreds of communities across Canada, we recognize
governments in modifying building codes as to avoid loss. that we have an important role to play in monitoring our resource usage and environmental
impact. Energy, paper use, waste, and our supply chain all contribute to the devastating
In 2007, we advised clients to repair rather than replace windshield damage covered under
effects of climate change. This is why as part of our sustainability strategy we will begin
auto policies. This resulted in a total of 3,500 windshields diverted from landfill, along with
measuring our outputs in these areas, and look for opportunities to mitigate our impacts.
reducing the natural resources used, energy and transportation costs associated with
manufacturing and shipping new windshields. Energy Conservation
To lower our energy usage we have reduced the use of lighting and air conditioners in the
summer months. Many of our facilities have made the switch to energy-efficient lighting.
The lighting system is wired so that 50 per cent of the lights can be switched off, while still
providing adequate illumination.
38
Conferencing eliminating shrink wrap in their shipments. Also, in order to avoid unnecessary carbon
emission, we have reduced the delivery days from daily to twice weekly, and require a
We encourage the use of video and teleconferencing services whenever possible to reduce the
minimum purchase amount.
carbon emissions caused by travel. In our Guelph head office, we billed over 2,100 video and
audio conferencing hours, which avoided the need to travel. Adopting Green Meeting Practices
Green Fleet In 2006, we committed to developing green meeting practices for our 2007 Annual General
Meeting themed ‘Sustainable, Responsible Growth’. In an effort to minimize the environmental
We are the first Canadian company to adopt the PHH GreenFleet program, which guided the
footprint of the meeting, several key areas were targeted. As a result, we reduced 40 per cent of
selection of fuel efficient vehicles, upgrading our maintenance program, and providing driving
our pre-meeting paper usage by e-mailing materials, purchased carbon offsets for a total of
tips for reducing emissions. We have committed that 95 per cent of fleet vehicles will not
590,000 air miles, and purchased renewable energy credits to offset the 9 MWh consumed
include trucks, vans, and SUVs with exceptions needing vice-president approval based on role or
during the meeting. We plan to further our efforts in these areas in future years, including
location. In our fleet, over a three-year period, each driver will have the option of selecting
sharing our experience with other co-operatives.
a hybrid vehicle or a vehicle that meets the performance criteria of ten litres of gasoline per
100 kms. Once the program is fully implemented to our entire fleet of over 400 vehicles, Recycling
we anticipate improving fuel economy by 20 per cent.
As part of our strategy to reduce the waste we commit to landfill, we seek opportunities to
Paper Usage partner in recycling efforts. In 2007, we launched an enhanced recycling program in our Guelph
head office, where we are now able to recycle cans, bottles, and plastic. As part of the recycling
Our paper usage is where we see the greatest opportunity to make a positive impact.
program launch, we have substantially reduced the use of plastic utensils, styrofoam containers,
Currently, our major publications, including The Co-operators Group Limited Annual Report
and disposable cups in our cafeteria. Take-out containers that are 100 per cent biodegradable
(the 2007 report will be online), The Co-operators Sustainability Report 2007 (we have reduced
and compostable are now provided. Additional recycling activities included:
the number of printed copies from 14,000 to 2,700 for 2007) and two internal bi-monthly
magazines are printed on 100 per cent post-consumer waste paper. Additionally, our two > Fine Paper — over 186,000 kilograms of fine paper was recycled at our
internal publications use acid-free paper, which is manufactured using wind power. Our Guelph locations.
marketing materials are now print on demand, which eliminates paper waste and ensures only
> Ink Jet Cartridges/Cell phones — used cell phones and ink cartridges donated
what is needed gets printed. We have also begun using 30 per cent recycled content in the
to the Think Food program to be used for remanufacturing. Think Food then
office paper supplied to all of our locations. We plan to implement further steps to both reduce
donates 50 per cent of the profits to local food banks. In 2007, we have sent
our paper usage and source more environmentally friendly paper going forward.
655 ink cartridges which equates to approximately 396 kilograms of food for
Sustainable Purchasing the food bank.
As part of our sustainability strategy, we will choose to work with environmentally responsible > Batteries — battery recycling stations are available for staff at L’UNION
suppliers. Our current office supplies vendor has taken great steps to reduce waste by CANADIENNE.
39 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
> Toner Cartridges — we have a partnership with Greentec International to recycle
copiers, fax machine and large printer cartridges. For every 12 cartridges recycled,
up to $5 is donated to the Children’s Safety Village in Cambridge, ON, and one Targets & Highlights
tree is planted locally.
2007 Highlights
> City Phone Books — we reduced our Guelph phone book orders by 300, from 450
> First Canadian company to adopt PHH GreenFleet program
to 150, and were involved in a community recycling program which resulted in a
for our company vehicles
$1,000 donation to the food bank. The total weight of recycled books was 350
kilograms, saving 170 trees and eliminating 272 kilograms of air pollutants. > Established an enhanced recycling program in our Guelph
head office locations
> Furniture — In Guelph, we donated approximately 10 tonnes of office furniture
and accessories to over 20 organizations, including local schools, drop-in centres, > Built Ontario’s first Designed for ... safer living home in Sudbury
daycares and Habitat for Humanity. Our new chair standard, the “Think Chair”
> Donated more than $134,566 to Canadian environmental initiatives
is 99 per cent recyclable, and contains 41 per cent recycled materials.
> Began using paper with 30 per cent recycled content in all of our
Supporting Environmental Programs
corporate office locations
We strive to make a difference in communities across Canada through partnership with
2008 Targets
organizations dedicated to environmental rehabilitation, education, and conservation.
In 2007, we contributed $134,566 to various environmental initiatives, including: > Measure our carbon footprint and implement measures
to reduce the footprint
Community Foundations of Canada: Focusing on addressing the root cause of issues, this
organization serves the needs of increasingly diverse communities, and focuses on developing > Develop a Climate Change Strategy
the kinds of leadership needed to sustain communities in the future. Our grant will fund
> Develop and implement a sustainability purchasing policy
environmental stewardship activities and youth leadership development.
> Build one Designed for ... safer living home
BC Sustainability Purchasing Network: In 2007 we provided a start-up grant to this network
to help provide training, information, networking, and advice to organizations seeking to
integrate environmental, social, and ethical aspects into their buying decisions.
40
2007 Target Report Card
Focus Area 2007 Target Status
Return on Shareholder Equity (ROE) of 11.2 per cent exceeded
Economic
Revenue of $3.0 billion not achieved
Increase member-owners by three to 37 exceeded
Develop and implement ‘green meeting’ practices for the 2007 Annual General Meeting achieved
Governance
Conduct third member-owner engagement survey achieved
Launch integrated member-owners/Board of Directors website to enhance communications achieved
Increase co-operative business premium by $10 million achieved
Co-operative Relations Engage three member-owners with the Insurance 101 series exceeded
Participate in the 2nd CSR Forum for Canadian co-operatives and credit unions achieved
Increase our Co-operators General agency distribution network to 470 across Canada* exceeded
Agent Broker Relations
Increase our broker distribution network (The Sovereign General) from 392 to 422 not achieved
Introduce four new educational themes into the Insurance 101 series achieved
Develop newsletter for L’UNION CANADIENNE policyholders not achieved
Client Relations
Capture $1.5 million (0.75%) of Quebec’s life insurance premium not achieved
Launch a new Community Advisory Panel in St. John’s, NL achieved
Achieve an aggregate staff engagement score of 80 per cent not achieved
Human Resources
Increase staff participation in the ‘paid day to volunteer’ program by 25 per cent not achieved
Contribute a minimum of one per cent of our pre-tax profit to Canadian communities exceeded
Community Relations Increase participation in Directed Donation program to 94 per cent exceeded
Develop an instructional DVD for basic car seat installation achieved
Build four Designed for ... safer living homes not achieved
Environmental
Track usage of recycling programs, such as paper, glass bottles, and cans not achieved
*In 2006, we reported that our growth target for our agency distribution network was 460, when in fact it was 470.
41 The Co-operators Sustainability Report 2007
D ig ng r S t n ty
In 2007, we created a look specifically for sustainability. Our new
sustainability logo represents another step toward institutionalizing
sustainable practices and benchmarks within our organization, and firmly
commits The Co-operators to economic, social and environmental responsibility.
Our logo was designed with our Vision and Values in mind:
> The Three Cs are a visual reference to The Co-operators
corporate logo, which also has three Cs that reflect
The Co-operators dedication to co-operatives, credit unions
and Canadians. This visually ties the two logos together.
> The Three Cs also represent the triple bottom line of economic,
social and environmental sustainability.
> The Three Cs get successively smaller, representing our shrinking
environmental footprint.
> The Three Cs each bear a different colour, in a reference to the
Earth, air and the Sun.
> The words, “Sustainability. Taking care of Tomorrow – Today”
sum up the central message of sustainability. Action today means
greener, fairer, more prosperous tomorrows.
42
In 2007, we reduced the number of printed copies of this report, from 14,000 to 2,700
by encouraging our staff members to access the report online.
Did you know? ... By printing this report on Rolland Enviro 100 Paper we:
> saved 13 mature trees
> reduced solid waste by 375 kg
> reduced water and wastewater flow by 35,506 litres
> reduced atmospheric emissions by 824 kg
> reduced use of natural gas by 54 m3
The Co-operators Sustainability Report 2007 is produced in English and French, and is available to view on our
website at www.cooperators.ca/sustainability_report. To contact us, provide feedback, or obtain an additional
print version of the report, call 1- 800 -265- 2612, e- mail the Director, Sustainability and Corporate Citizenship
at sustainability@cooperators.ca, or visit your local Co-operators agent for a copy.
We are affiliated with the following organizations in relation to corporate responsibility.
Released April 2008 COR407 (04/08)
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