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Corporate Responsibility Report becoming a values driven company A by boobygibson


									Corporate Responsibility Report 2007
  …becoming a values-driven company

          A team of winners

         Relentless pursuit of
         customer satisfaction

         A great place to work

  Message from the Chairman                                  2

  Message from the Group Chief Executive                     3

  Living our values                                          4

  Marketplace                                                6

  Workplace                                                  12

  Community                                                  17

  Environment                                                22

  Group overview                                             26

  Global reporting initiative                                28

  Corporate Responsibility (CR) Programme                    29

  External Commentary by Business in the Community Ireland   30

  External Assurance Statement                               31

  Our CR programme - at a glance                             32
                                                  Message from the

                                                                           This is our fourth annual Corporate           In addition, we have developed a
                                                                           Responsibility (CR) Report. This is also      community involvement programme that
                                                                           our first report that has been externally      strengthens our ties with communities
                                                                           verified. In Irish Life & Permanent, we have   throughout Ireland. This is not only good
                                                                           set ourselves an objective to take a lead     for these communities but also good for

                                                                           in CR reporting among financial services       our business. Of course, it takes time for
                                                                           companies in Ireland and we believe that      community programmes to reach their full
                                                                           we are achieving this objective.              potential. We have set ourselves targets
                                                                                                                         that allow us to measure the impact of
                                                                           Of course, CR is not just about reporting,
                                                                                                                         each of our programmes and we carry
                                                                           it is also about developing successful and
                                                                                                                         out regular reviews with our community
                                                                           sustainable businesses. Our group vision is
                                                                                                                         partner organisations.
                                                                           to become the leading provider of personal
                                                                           financial services in Ireland. We believe      Finally, in 2007 we reviewed and restated
                                                                           that a company that behaves responsibly       our core group values. During 2008, we
                                                                           will, in the long-run, be more successful     will embed these new values into the way
                                                  Gillian Bowler           than its competitors. By identifying the      we do business throughout the group.
 2                                                Chairman                 key stakeholders in our business and
                                                                                                                         Our CR programme is now well-established
                                                  Irish Life & Permanent   engaging in dialogue with them, we can
   I rish L ife & Perma n en t CR Rep or t 2007

                                                                                                                         and we are making good progress. We will
                                                                           respond more effectively to their needs
                                                                                                                         continue to develop and expand our CR
                                                                           and secure the success of our business.
                                                                                                                         activities in 2008 and beyond.
                                                                           We engage with our stakeholders in many
                                                                           different ways. We have a comprehensive
                                                                           Investor Relations programme to make
                                                                           sure that large institutional shareholders,
                                                                           analysts and brokers are kept up to date
                                                                           on developments and business results in
                                                                           the group. Our AGM provides a forum
                                                                           for any shareholder to ask questions
                                                                           of myself and the Board. We carry out
                                                                           regular employee surveys in all of our
                                                                           businesses. And we are unique among
                                                                           financial services companies in Ireland
                                                                           in having branded customer satisfaction
                                                                           programmes structured around the results
                                                                           of yearly customer satisfaction surveys.
Message from the
Group Chief Executive

                         The theme of this year’s CR Report is          We have adopted a partnership approach
                         “Becoming a values-driven company”.            to community involvement because
                         We believe that value-centred leadership       we believe that this is the best way of

                                                                                                                     Chief Executive
                         offers some major benefits for our              making a positive and lasting impact. Our
                         businesses:                                    partners are much better placed than
                                                                        we are to understand the needs of local
                         n it makes a very clear and public
                                                                        communities. We have expertise in areas
                           statement of what the group stands for;
                                                                        such as marketing, event management,
                         n it helps to bind different parts of the      public relations, communications and
                           group together. This is particularly         project management. By working with
                           important in a group that was formed         selected community partners, we can
                           from the merger of different businesses      share our expertise and resources and
                           with their own strong traditions; and,       achieve a better outcome for our local
                         n it helps us all work towards a set of
                           common goals.                                In other areas, we have also made very
Denis Casey                                                             good progress – we are achieving very
Group Chief Executive
                         Our 2008 business plans have been
                                                                        high results on our customer satisfaction
                         constructed under the three core values:
Irish Life & Permanent                                                  indices; we are continuing our programme

                                                                                                                        Irish L ife & Perma n ent CR Rep or t 2 00 7
                         n A team of winners,                           to improve accessibility for our customers
                         n Relentless pursuit of customer               and our employees and in 2007 we won
                           satisfaction and                             our first O2 Ability Award. We also became
                                                                        one of the first corporate partners of the
                         n A great place to work.                       national Power of One campaign which
                         Ultimately, we expect that every member        promotes energy efficiency for Ireland.
                         of staff will have a clear understanding of    We now have in place a clear business
                         what these values mean for themselves.         strategy, a clear set of business values
                         In 2007, we continued to develop our CR        and a comprehensive CR programme.
                         programme.                                     We believe that this approach will allow
                                                                        us create a successful and sustainable
                         We completed the first full year of our         company in the long-term.
                         three flagship community programmes
                         with our community partners - Foróige
                         (the permanent tsb Foróige Youth
                         Citizenship Awards), Age Action Ireland
                         (Care & Repair services for older people
                         sponsored by Irish Life) and Trinity College
                         (the Irish Longitudinal Study of Ageing
                         - also sponsored by Irish Life).
                                               Living our values

                                               During 2007, we reviewed our core group        Relentless pursuit of                              The link between our values and our
                                               values and restated them as follows:                                                              activities is shown in the chart below.
                                                                                              customer satisfaction
                                               n   A team of winners                                                                             In the remainder of the report, we set
                                                                                              For us, this means putting the customer            out in detail the progress we made in
                                               n   Relentless pursuit of customer
                                                                                              at the heart of our business, constantly           2007 on our agendas under each of the

                                                                                              measuring customer satisfaction levels and         four “pillars” of corporate responsibility,
                                               n   A great place to work                      linking staff rewards to these customer            marketplace, workplace, community and
                                                                                              satisfaction levels.                               environment.
                                               A team of winners
                                                                                              A great place to work
                                               This value influences everything we do.
                                               We put an emphasis on teamwork and             We aim to create an environment where
                                               building a high-performance culture. We        staff can develop and contribute to their
                                               also want to create a desire to win and        maximum potential and where people
                                               to beat the competition. To do this, we        feel valued, respected and treated fairly.
4                                              need to recruit ambitious people and link      We also want to make a meaningful
                                               rewards to performance.                        contribution to the communities where
I rish Li fe & Perma n en t CR Rep or t 2007

                                                                                              we do business.

                                                   Our Core Values                       Marketplace                Workplace                   Community                Environment

                                                                                    n   Beating the           n   Creating a high          n   Setting ambitious     n   Aiming for best
                                                                                        competition               performance                  targets                   practice
                                                   A team of winners                                              culture                  n   Maximising impact
                                                                                                              n   Building stronger            from community
                                                                                                                  teams                        involvement
                                                                                    n   Customer              n   Linking staff            n   Treating customers    n   Green financial
                                                                                        satisfaction              rewards to                   fairly                    products
                                                   Relentless pursuit of                programmes                customer
                                                   customer satisfaction                                          satisfaction

                                                                                    n   Better customer       n   Staff surveys *          n   Volunteering          n   Power of One at
                                                                                        relationships from    n   Investment in            n   Support for Staff         Work campaign
                                                   A great place to work                more engaged              learning and                 Charities
                                                                                        employees                 development

                                               * To track and drive workplace improvements
How we manage our corporate responsibility (CR) agenda
We aim for continuous improvement across our full CR agenda. We do this through a process of deciding policy, taking action and
reviewing the results.

Governance Structure

Board of Directors:                             Marketplace            Workplace            Community            Environment
The Board of Irish Life & Permanent
sets overall CR policy and objectives
and receives regular updates on our
CR activities and plans.
Group CR Committee:
This committee meets regularly and
reviews progress in implementing
our CR programme. The Committee                                                     Actions                                             5
is chaired by our General Manager-
Investor Relations and has

                                                                                                                                    Irish L ife & Perm a n en t CR Repo r t 20 07
representatives from across our
businesses.                                                                         Results
Group Environmental Committee:
This committee sets environmental
policy for the group and reviews
progress on our environmental                                             Stakeholder engagement
agenda. The Committee is chaired                                               and feedback
by our Group CR Manager.

Group CR Manager:
Gerry Loughrey is our Group CR
Manager. He manages our Group CR
programme on a day-to-day basis. He
works with internal departments and
external stakeholders to develop and
promote our CR programme.

                                                                                        Gerry Loughrey
                                                                  Group Corporate Responsibility Manager
                                                                                         Tel: 01-704 2574
             Core value: Relentless pursuit of customer satisfaction
                                                                                       AT A
             Marketplace                                                              GLANCE

             Our policy is to offer our customers the best combination of choice,
             value and service on the market.

                           Customer and client service and satisfaction

              Irish Life Retail         Irish Life                permanent tsb        Irish Life
                                       Corporate                                     Investment
                                        Business                                      Managers

                 InTouch             BORU*                           Central        Commitment
               programme           programme                       programme        to service and
              running since       running since                   running since    communication
                   2004               1999                            2006           with clients

                                                                                   Management –
                Customer            Customer                         Customer
                                                                                   KPMG Financial
               satisfaction        satisfaction                     satisfaction
             score of 80.0%       score of 87.6%                  score of 84.2%
                                                                                    Award 2007

                                  *‘Building our reputation up’
                                                                               “Our Intouch programme has been running since
                                                                               2004. It has continued to provide us with invaluable
                                                                               feedback from our customers and has helped us
                                                                               to clearly understand what is important to them.
                                                                               Focusing on what is important has allowed us
                                                                               to identify the improvements we need to make
                                                                               to meet the expectations of our customers. Our
                                                                               determination to deliver an excellent service resulted
                                                                               in our index reaching its highest ever level of 80.0%”
                                                                               Bernie Healy
                                                                               (Team Manager - Intouch, Irish Life Retail)

Customer satisfaction -                      Effectively handling customer                   Some of the areas identified for us to focus
                                             complaints: We met our service metric           on in 2008 are:
Irish Life Retail                            of responding to 90% of complaints within
                                                                                             n   Handling customer complaints

 Irish Life Retail                           10 days. In addition, 400 staff completed
                                             competency testing on complaint
 Customer Satisfaction Index                 handling.                                       n   Effectively dealing with our customers’
 Year          Target        Actual          Answering the phone: Our customer
                                             service centre in Dundalk receives 8,000        n   The quality of our customer
 2005          77.4%         79.1%
                                             calls per week. From an existing position           communications; and
 2006          80.0%         76.8%           of 70% of calls answered in 10 seconds, we
                                                                                             n   Enhancing the Financial Adviser
                                             set ourselves the challenge to answer all
 2007          77.5%         80.0%                                                               relationship with customers.
                                             calls within 10 seconds. We consistently
                                             achieved scores of 98% and better on this
                                             critical service measure with no queues.        Customer and seller
                                             In 2007, Irish Life Retail                                                                                7
                                                                                             In 2007, we made changes to our
                                                                                             on-line services for customers and sales
                                             achieved its highest ever

                                                                                                                                               Irish L ife & Perm a n en t CR Repo r t 20 07
Our yearly survey of customer satisfaction
                                                                                             consultants to improve our service to
was conducted in January and February        customer satisfaction                           them:
2008 and involved 1,600 customers chosen
at random. The 80.0% satisfaction result     rating of 80%                                   n   Customers can now view all their plan
exceeded our target. In 2007, our customer                                                       details on line including up-to-date
satisfaction improvement programme                                                               values, projected values, benefit details,
                                             More financial reviews: Our customers
(Intouch) focused on the following                                                               payments and claims. They can switch
                                             told us that they wanted more frequent
priorities:                                                                                      funds on line and no paperwork needs
                                             contact with their financial adviser. In
                                                                                                 to be completed.
Providing quality advice: We provide         2007, more than 67,000 customers had
continuous training for Customer Service     one-to-one meetings with their financial         n   Customers can track how their funds
staff and, in 2007, 200 staff completed      adviser and received a personalised                 are performing by clicking on fund
product and technical training.              financial review report. We track the                graphs and tracking the performance
                                             feedback from this process and customer             of any fund over any timeframe.
Keeping our promises: In 2007, we
                                             satisfaction is consistently achieving scores
developed a work management system
                                             above 92%.
that captures promises we make to
customers. The system then prompts us        In 2008, we are moving to transactional-
when the time is approaching to fulfil the    based research. This will help us to identify
promise and allows us to reflect on how       specific actions to improve service, based
well we do in meeting this basic customer    on the experience of our customers when
requirement.                                 they contact us for a particular transaction.

             More than

             life customers had one-to-one
             meetings with their financial adviser
                                                “Our BORU change programme gives all of our people
                                                a voice in how we deliver constant business and customer
                                                service improvements in Corporate Business. We track
                                                customer service performance using two measures - an
                                                internal CSI index and an external independent survey
                                                – and we performed very well on both during 2007. We
                                                are particularly pleased that in the external survey we
                                                were once again ranked first on service in 2007, widening
                                                our lead over the next best company.”
                                                Damian Fadden
                                                (Sales Development Director, Irish Life
                                                Corporate Business)

                                                n   Our seller self-service allows our        Customer satisfaction - Irish                Getting closer to the customer: In 2007,
                                                    financial advisers to access an existing                                                we tested a number of ideas including
                                                                                              Life Corporate Business                      personalised service for our top clients to
                                                    customer’s information on line before

                                                    meeting them. This allows them to          Irish Life Corporate Business               improve our service to our customers
                                                    provide a customer with all their
                                                                                                                                           Development of a new work-tracking
                                                    current plan details when they are         Customer Service Index
                                                                                                                                           system: In 2007, we developed a new
                                                    discussing their financial needs and        Year          Target         Actual         system that will completely change the
                                                                                                                                           way work is tracked and allocated to
                                                                                               2005          74.0%          73.7%
                                                                                                                                           people working in Corporate Business.
                                                Over 550,000 Intouch                           2006          78.0%          78.7%          We expect that this will result in further
                                                newsletters issued                             2007          85.0%          87.6%
                                                                                                                                           substantial service improvements in the
                                                                                                                                           future. Implementation will be completed
                                                In 2007, we issued more than 550,000                                                       in the first half of 2008.
                                                newsletters to customers- an increase of
                                                over 150,000 on the previous year. We also                                                 Irish Life Corporate Business also
                                                                                                                                           commissions an independent yearly
 8                                              updated our newsletter each quarter to
                                                                                                                                           survey of brokers and consultants to
                                                make customers aware of the most recent
                                                improvements made in our business.                                                         assess their levels of satisfaction with
 I rish L ife & Perma n en t CR Rep or t 2007

                                                                                                                                           insurance companies operating in the
                                                                                              The Irish Life Corporate Business
                                                                                                                                           group business area. This survey is carried
                                                Employee incentive                            customer service index measures actual
                                                                                                                                           out by Millward Brown IMS. The results of
                                                During the past three years we have           performance against target service levels
                                                                                                                                           the survey for the last three years are as
                                                also run a customer service excellence        across 12 key administrative services
                                                incentive for employees. In 2007, following   carried out for clients.
                                                a nomination process, 22 employees            Actions taken in 2007 to improve service     Irish Group Business Companies
                                                were selected as winners and were taken       included:
                                                                                                                                           Brokers’/Consultants’ Satisfaction
                                                on a weekend trip to Copenhagen. The
                                                                                              Migration of pensioners to a new
                                                winners were those employees who went                                                      Year      Irish Life Next best Gap
                                                                                              payroll system: In 2007, we developed a
                                                above and beyond the call of duty in
                                                                                              more efficient payroll service for c.30,000   2005      72.3%      65.6%       6.7%
                                                making customer satisfaction a priority.
                                                                                              pensioners whose pensions and tax we
                                                                                                                                           2006      72.0%      65.4%       6.6%
                                                                                              process each month. The new system
                                                                                              goes fully live in April 2008.               2007      77.4%      70.1%       7.3%
                                                For the third year in a row,
                                                Irish Life Corporate Business                                                              Irish Life Corporate Business has not only
                                                was ranked 1st in an                                                                       topped the survey in each year but in
                                                                                                                                           2007 it also widened the gap between it
                                                independent service survey                                                                 and the second-ranked company.

                                                                We issued more than

                                                                Intouch newsletters
                                                                to life customers
                                                                                   “Putting the customer at the heart of
                                                                                   everything we do is an absolute priority for
                                                                                   permanent tsb. Maintaining high levels of
                                                                                   customer satisfaction really helps us build a
                                                                                   strong platform to drive our sales targets. Our
                                                                                   research clearly shows us that our customers
                                                                                   are more likely to recommend us to others and
                                                                                   less likely to defect from us and this is a key
                                                                                   pillar on which we build our business agenda.”
                                                                                   Brendan Lynott
                                                                                   (General Manager -
                                                                                   Operations, permanent tsb)

Customer satisfaction -                       Innovation programmes: we launched a         measures of performance. The satisfaction
                                              range of ‘Innovation’ programmes across      score increased for every single measure.
permanent tsb
                                              the bank aimed at improving customer
                                                                                           We also participate in a European-wide

 permanent tsb                                service and reducing bureaucracy.
                                                                                           benchmarking exercise and we have
                                              More than 400 ideas were submitted by
                                                                                           discovered that we have one of the
 Customer Satisfaction Index                  employees. These ideas are being put into
                                                                                           highest customer satisfaction ratings in
 Year          Target        Actual           practice and have already begun to have
                                                                                           Europe. We aim to hold this exceptional
                                              an impact.
                                                                                           position through a range of further
 2005          *****         82.0%
                                              Customer service awards: we have             actions. These include:
 2006          82.0%         81.3%            monthly and yearly customer service
                                                                                           Ambassador programme: Under this
                                              awards where staff who go that extra mile
 2007          82.5%         84.2%                                                         programme we will have a Customer
                                              are recognised by our customers and are
                                                                                           Central ‘ambassador’ in every single
                                              formally acknowledged.
                                                                                           branch and in all our central support
                                                                                           functions. An innovative training
                                              In permanent tsb, we have                    programme has been developed for these
                                                                                           ambassadors. The first course has taken
                                              one of the highest customer                  place and we have received very positive

                                                                                                                                         Irish L ife & Perma n ent CR Rep or t 2 00 7
Customer Central – the customer
satisfaction programme in permanent tsb       satisfaction ratings in Europe               feedback from the participants.

- is driven by a senior executive supported                                                Moments of Truth: ‘Moments of
by a steering group with representatives                                                   Truth’ are key customer interactions
                                              Service level agreements: we have
from all areas of the bank. Priorities                                                     with members of staff that have an
                                              developed rigorous internal service level
for action are identified from a yearly                                                     important influence on the attitude of the
                                              agreements between the central support
customer satisfaction survey. The results                                                  customer to permanent tsb. A detailed
                                              areas and the staff dealing directly with
of the survey are communicated across                                                      examination of 11 key ‘Moments of Truth’,
                                              customers to make sure that the quality
the organisation and detailed action plans                                                 (identified through customer research), is
                                              of our service is matching our customer
are put in place to address the issues                                                     underway using Lean/Six Sigma business
raised.                                                                                    improvement methodology and we will
                                              We believe that these actions are reflected   launch the programme across the bank in
In 2007, detailed briefings on the
                                              in our latest customer satisfaction rating   May 2008. We will then begin to carry out
programme were given to every member
                                              of 84.2% for 2007- an increase of 2.9%       daily surveys of customers based on their
of staff and the following actions were
                                              on 2006. This latest survey took place       experience in our branches using these
                                              between November 2007 and February           ‘Moments of Truth’. We plan to carry out
                                              2008. More than 2,500 customers were         10,000 of these surveys in 2008.
                                              asked their views on our services using 28

                                                                 More than

                                                                 ‘Innovation’ ideas were
                                                                 submitted by bank employees
                                                                 permanent tsb –
                                                              Baggot Street, Dublin

                                                New current account                              Customer Concerns and Complaints
                                                customers                                        Company                        permanent tsb                       Irish Life

                                                During 2007, permanent tsb added                                             2006            2007            2006                2007
                                                a further 69,000 new current account
                                                                                                 Total Received             3,211            3,009          4,316         One & Done
                                                customers . Since the ending of normal
                                                                                                                                                                           – 18,318
                                                transaction fees in 2005, customers have
                                                opened more then 220,000 new current                                                                                      Investigation
                                                accounts with permanent tsb and the                                                                                          – 2,442
                                                bank now has more then half-a-million
                                                                                                 Ombudsman                    34              24             113                 135
                                                current account customers.
                                                Customer complaints and
                                                                                                 Complaints                    2              5                7                  9
                                                concerns                                         Upheld
10                                              permanent tsb                                    Not Upheld                   12              12              75                  80
                                                The Customer Feedback Management                 Partly Upheld                 7              5               28                  14
 I rish L ife & Perma n en t CR Rep or t 2007

                                                (CFM) system was introduced in 2006
                                                                                                 Outside Terms of             12              2                3                  31
                                                to improve the tracking and reporting of
                                                customer feedback within permanent tsb.
                                                                                                 Resolved                      1              0                0                  1
                                                During 2007, further enhancements were
                                                made to the CFM system to support
                                                                                                with customers. This course focused           concern and complaint handling. This
                                                branches and departments. Templates
                                                                                                on the main aspects of the bank’s             makes sure that all staff apply the same
                                                of standard letters and complaint
                                                                                                internal complaints procedures and on         standards when dealing with issues raised
                                                workflows have been added to the system
                                                                                                our obligations under the Consumer            by our customers.
                                                as a help tool to aid staff in branches
                                                                                                Protection Code implemented in 2007.
                                                and departments resolve complaints                                                            In 2007, we introduced a corrective action
                                                effectively at local level. A troubleshooting   Irish Life Retail                             process to make sure that we get to the
                                                guide was also introduced to help users                                                       root cause of a problem and that it does
                                                                                                In 2007, we received 2,442 complaints from
                                                navigate the system.                                                                          not happen again. This has resulted in an
                                                                                                our customers that required investigation.
                                                                                                                                              improved service for our customers.
                                                One-to-one training on the CFM system           We also responded to 18,318 customer
                                                was conducted throughout the year by            concerns where we were able to deal
                                                the Customer Relations Department and           with the issue raised by the customer         Complying with regulations
                                                will continue through 2008.                     immediately (“one and done”).                 Consumer Protection Code
                                                A complaints handling electronic learning       In 2007, all our customer service staff       A new Consumer Protection Code came
                                                course was launched in September                completed an electronic learning and          into effect on 1 July 2007. This contains
                                                2007 to all staff who deal directly             competency testing programme on               a complete set of rules setting out how

                                                                permanent tsb opened

                                                                new current accounts
                                                                                                  permanent tsb –
                                                                                                  Market Square, Roscommon

financial services companies should deal         regulate and supervise non-deposit taking     We carried out a more detailed assessment
with their customers. We made any changes       lenders and home reversion firms. A            of requirements in 2007. This showed that
necessary to our processes, procedures and      number of companies in the Irish Life &       in many cases more extensive works would

documents to make sure that we are fully        Permanent group will be subject to these      be required because the ATM was sitting
compliant with this code.                       new regulations and will be required to       on top of a night safe that would also have
                                                apply for authorisation to the Financial      to be repositioned.
Minimum competency requirements
                                                Regulator. These are: permanent tsb
                                                                                              In addition to ATMs, we are also committed
New minimum competency requirements             Finance Ltd, Blue Cube Personal Loans
                                                                                              to making all our permanent tsb branches
apply from 1 January 2007 to individuals        Ltd and Springboard Mortgages. The
                                                                                              accessible to wheelchair users. We
who give advice to consumers on                 compliance plan for 2008 includes putting
                                                                                              identified 11 branches that are not fully
retail financial products. A “Minimum            in place any changes to procedures that are
Competency Register” of all “accredited         required to deal with the new regulations.
individuals” was compiled in 2007 and a                                                       In 2007, we decided to prioritise the works
                                                Protecting customers and employees
programme of continuous professional                                                          on the 11 branches and defer work on the
development was put in place.                   In 2007 we introduced a new security          ATMs until 2008. Work on four branches
Markets in Financial Instruments
                                                monitoring service using McAfee Services      has now been completed including              11
                                                (Scanalert). This service probes our internet Baggot Street, Dublin and Market Square,
                                                infrastructure and alerts us to any potential Roscommon. Planning approval has been

                                                                                                                                              Irish L ife & Perma n ent CR Rep or t 2 00 7
The Markets in Financial Instruments            flaw that may require urgent remedial          received for another four and works are
Directive Regulations came into effect          action                                        due to begin shortly. Planning applications
on 1 November 2007. This is a major set                                                       have been lodged for two others and work
                                                We also took part in a media campaign
of regulations that replaces much of the                                                      on one branch has not proceeded but will
                                                led by the Irish Banker’s Federation called
Investment Intermediaries Act, 1995 (and                                                      be reviewed again in 2008.
                                                ‘Make It Secure’. The campaign included
other legislation) and applies to investment
                                                TV, radio and other media awareness           Following these works, all, except
business firms.
                                                messages targeting online customers.          one branch of permanent tsb will be
The main company in the Irish Life                                                            wheelchair accessible.
& Permanent group impacted by the                 Weblink:
                                                                                              As regards ATMs, a budget has been
regulations is Irish Life Investment Managers
                                                                                              allocated for repositioning of some
(ILIM). Throughout 2007, ILIM had in place      Accessibility                                 machines in 2008. Priority will be given
a major project to prepare for compliance
                                                In our 2006 CR Report, we said that           to repositioning of machines in locations
with the regulations by the due date. This
                                                we would improve physical access for          where there is no other machine within
work was completed on time and the group
                                                customers with disabilities by repositioning easy access.
is fully compliant with the regulations.
                                                10% of our ATMs. Following a survey in
                                                                                              In 2007, we also completed the installation
Regulation of non-deposit taking                2006, we had determined that 76 of these
                                                                                              of hearing aid loop systems in all of our
lenders                                         machines were positioned above the
With effect from 1 February 2008, the           level that would make them accessible to
Financial Regulator has new powers to           wheelchair users (950mm).

                                                                         more than

                                                                         customer issues handled by
                                                                         customer relations departments
             Core value: A great place to work
                                                     AT A
             Workplace                              GLANCE

             Our policy is to build a highly motivated workforce and develop
             our staff to their fullest potential. We also have specific policies
             covering equality and diversity, health and safety, and speaking up.

                                            Health and
                                                        in place to
                                            well-being                Investment
             Best practice    Regular                  support the
                                           programmes                 in learning
             recruitment     employee                  employment
                                             in place                     and
              procedures      surveys                    of people
                                           throughout                development
                                            the group

                                                         O2 Ability
                                            Health and   Category      Increase
                 1,159                      well-being Award winner of 23% in
              employees                       events   for Learning, training and
               recruited                     in three  Development development
                                            businesses      and      expenditure
                                                                                                         more than

                                                                                                         new employees
                                                                                                         recruited in 2007
 New employees taking part
     in an induction course

A Great Place to Work                        Recruitment and                                     We continue to receive huge numbers of
                                                                                                 job applications, although at a reduced
Our core group values include ‘A Great
                                             retention in 2007                                   level compared with 2006. This reflects
Place to Work.’ What does this mean in                                                           our size and reputation as a good

                                                                            2006        2007
practice? For us it means that we aim to                                                         employer.
create a work environment where:             Total number of
                                             employees at year-end         5,458        5,607    The average turnover rate increased
n   employees can develop and contribute                                                         from 14.0% in 2006 to 14.5% in 2007.
    to their maximum potential;              External applications                               The challenge to retain staff remains,
                                             for positions                21,450     16,800      particularly in some functions and
n   there is effective two-way
    communication;                           New employees                                       departments. Turnover levels tend to
                                             recruited1                    1,167        1,159    be higher than average in telephone
n   people feel valued, respected and
                                                                                                 contacts centres, and lower in areas of
    treated fairly;                          Seasonal employees                                  the organisation offering flexible working
n   managers provide real leadership and     recruited                       234          197    arrangements.
    support and employees are crystal        Internal appointments                               We recruited almost 200 temporary
    clear about what’s expected of them;     and promotions                  201          293    employees – mainly during the summer-
n   there is an informal and fun                                                                 to support our term-time flexible working
                                             Average turnover2           14.0% *        14.5%

                                                                                                                                                 Irish L ife & Perm a n en t CR Repo r t 20 07
    atmosphere; and,                                                                             policy.
                                             Average days absent        6.8 Days 5.8 Days
n   employees can make a meaningful                                                              The big increase in the level of internal
    contribution to the communities where                                                        appointments and promotions is
                                             1 Includes staff employed on fixed-term
    we operate.                                                                                  consistent with our policy of offering
                                               contracts but excludes seasonal staff.
We are determined to make Irish Life &                                                           career progression for suitable employees
                                             2 Excludes staff employed on fixed-term              throughout the group.
Permanent a great place to work and to
                                                contracts who joined and left within the year.
live this core value throughout the group.                                                       At the end of 2007, almost 20% of Irish
In the employment market in Ireland,         * as restated                                       Life and permanent tsb employees
competition for people with good skills      At a summary level, given our scale,                had some form of flexible working
and qualifications is very strong and         recruitment data for Irish Life & Permanent         arrangement, compared with 18.4% at
this is reflected in employee turnover        will tend to reflect the wider economic and          the end of 2006. This reflects both an
figures. So, it makes good sense for us to    employment landscape. However, it also              increasing demand for flexible working
create a work environment that not only      reflects the fact that we are continually            arrangements and a company policy to
encourages new employees to choose           changing and developing as a company and            promote family-friendly policies. We try to
us as their preferred employer but also      this creates opportunities for both existing        retain experienced people where possible
causes them to stay with us because they     and new employees. In 2007, at recruitment          by offering such arrangements.
recognise that we are a great place to       stage, we have seen a reduction in the
work and build their careers.                number of experienced people available for
                                             a range of vacancies in particular those with
                                             numeracy or IT skills.

                                                                                                 overall employee
                                                                                                 turnover in 2007 was

                                                                                                                                                                           Gerry Keenan,

                                                                                                                                                                           Chief Executive,
                                                                                                                                                                           Irish Life Investment
                                                                                                                                                                           Managers, accepting
                                                                                                                                                                           the O2 Ability Award

                                                     of employees have
                                                     permanent positions

                                                Analysis of our workforce                     By age profile                                  Recruitment of people
                                                at the end of 2007                            60%
                                                                                                                                              with disabilities
                                                The data analysing our workforce at the                                                       In 2007, we continued our participation

                                                end of 2007 is shown in the graphs below:                                                     in the Willing Able Mentoring (WAM)
                                                                                              40%                                             programme to support access to
                                                By contract and type                                                                          employment for graduates with disabilities.
                                                Part-time 17%                                 30%                                             The programme has now ended. It
                                                Temporary 1%
                                                                                                                                              was funded by the EU and was run in
                                                Permanent 16%                                 20%
                                                                                                                                              partnership with AHEAD (The Association
                                                Full-time 83%                                 10%
                                                                                                                                              for Higher Education Access and Disability).
                                                Temporary 3%
                                                Permanent 80%                                                                                 Under this programme, we offered work
                                                                                               0%                                             experience to four graduates, three of
                                                                                                    Under 30    30-50   Over 50
                                                                                                                                              whom accepted. Two of these are now
                                                                                                      2005      2006     2007                 permanent employees.
                                                                                                                                              At the end of 2007, we estimate that at least
                                                                                              By length of service                            4% of our employees have some form of
 I rish L ife & Perma n en t CR Rep or t 2007

                                                                                                                                              disability. This compares with a statutory
                                                                                                                                              target of 3% for the Public Service under the
                                                At the end of 2007, 96% of our employees                                                      Disability Act 2005 and with an estimate of
                                                were permanent. Over three years, this                                                        3% at the end of 2006.
                                                figure has increased (from 92% at end
                                                                                              30%                                             We continue to provide support and
                                                2005) and reflects both policy and need.
                                                We recruit temporary employees mainly                                                         advice to people with disabilities through a
                                                for specific fixed-term projects or positions                                                   network of 17 fully trained Disability Liaison
                                                and to support our flexible working policy.                                                    Officers.
                                                They also provide cover for staff who are
                                                absent during the summer period or who                                                        O2 Ability Award
                                                are on maternity leave.                              Under      5-10     10-20      Over      The O2 Ability Awards are the Irish business
                                                                                                     5 years    Years    Years     20 Years
                                                                                                                                              awards for best practice in the employment
                                                During 2007, we also took actions                              2005     2006      2007
                                                                                                                                              and inclusion of people with disabilities.
                                                following an equality/diversity audit
                                                in 2006. These included reviewing job         In 2007, 10% of new employees recruited         Irish Life & Permanent entered the O2 Ability
                                                advertisements, completing equality           were non-Irish nationals. This is in line       Awards for the first time in 2007 and we
                                                compliance training (facilitated by the       with overall population statistics. As a        were delighted to receive the award as the
                                                Irish Business Employers’ Confederation)      result, the number of non-Irish nationals       category winner for Learning, Development
                                                and a review of interview locations.          employed by the group has increased             and Progression. We also received awards
                                                                                              from c.4% at end 2006 to 4.7% at the end        for best practice in Leadership, Customer
                                                                                              of 2007.                                        Service, Recruitment & Selection, and
                                                                                                                                              Retention & Well-Being.

                                                     of employees are
                                                     non-Irish nationals
                                                                                                         of our managers
                                                                                                         are women
 Participants in the
FÁS Return to Work

    Gender balance                                  are looking for work outside the home           Health, safety and well-being
                                                    for the first time. Working with FÁS, we
    in the workforce                                developed a six-month training programme
                                                                                                    In 2007, we completed our sixth annual
                                                                                                    Health and Well-being Week in Irish Life
                                                    designed to develop those skills required on
                          2006        2007

                                                                                                    and a wider programme of activities in
                                                    the job and also to build the confidence of
                                                                                                    permanent tsb.
                       Male Female Male Female      the group.
                                                                                                    In Irish Life, the theme for the week was
     Clerical          30%    70%   30%      70%    Following the 2006 programme, 15
                                                                                                    ‘Live Well, Feel Great, Enjoy Life’. Activities
                                                    participants took up part-time and full-time
     Specialist        50%    50%   51%      49%                                                    included health-screening, workshops on a
                                                    positions with permanent tsb in early
                                                                                                    healthy breakfast and getting a good night’s
     Managerial 72%           28%   71%      29%    2007. A further 13 participants joined in
                                                                                                    sleep, and a food fair focusing on home-
                                                    January 2008.
     Total             42%    58%   42%      58%                                                    made and natural produce.
                                                                                                    In permanent tsb, the health & well-
    In our 2006 CR Report, we said that we                                                          being programme ran throughout the
    would see if comparative data on gender         Employee surveys                                year and was built around two elements
    balance is available for other organisations
                                                     Division            Survey Response Rate
                                                                                                    – physical activity and good nutrition.           15
    at home and abroad. We have checked                                                             permanent tsb teamed up with the Irish
    all Irish companies with total employees                                      2006       2007   Heart Foundation (IHF) and using its ‘Slí

                                                                                                                                                        Irish L ife & Perma n ent CR Rep or t 2 00 7
    of more than 2,000. Only a small number                                                         Na Sláinte’ campaign, promoted walking
    report employee numbers by gender. We            Irish Life Retail             80%       70%
                                                                                                    to employees – walking to work or to
    have also reviewed published data by major       Irish Life Corporate          87%       86%    meetings outside the office, using the stairs
    UK financial services companies.                                                                 instead of the lift, and walking for exercise
                                                     permanent tsb                 80%       74%
    Our conclusion is that the representation                                                       at weekends. The permanent tsb staff
    of women in our workforce at managerial          Irish Life Investment                          restaurant was awarded the IHF’s “Happy
    level is comparable with most companies          Managers                     N/A        84%    Heart” award recognising a commitment
    that have published relevant data. It is also    Cornmarket Group              55%       N/A    to offer healthy eating options.
    a more complex issue that is influenced not
    just by company policy but also by public                                                       Irish Progressive Services International
                                                    Employee surveys are important in
    policy and laws on employment, parental                                                         also ran various health and well-being
                                                    identifying actions to support our core value
    leave and financial provision for childcare.                                                     events during the year.
                                                    of ‘A Great Place to Work’. Actions identified
    We will continue to monitor this data and       following our 2007 surveys include a review      Accidents/Incidents            2006     2007
    will continue to look at ways of improving      of salary levels in administrative areas in      Reported to Group Health
    this balance.                                   one division, improved communication             and Safety Manager                32       32
                                                    and information flows, the launch of a
    permanent tsb took part in the FÁS Return                                                        Employees                         23       24
                                                    personal development framework and the
    to Work Programme for the second year in                                                         Third Parties                      9        8
                                                    introduction of a ‘Meeting Master’ system to
    2007. The programme is designed to provide
                                                    make meetings more effective.                    Notified to Health and
    opportunities to women who are returning
                                                                                                     Safety Authority                   2        2
    to the workplace after some time or who
                                                                                                     Fatalities                    None None

                                                                                                    staff survey response
                                                                                                    rates were

                                                                          A group of Irish
                                                                                                    or higher
                                                                          Life & Permanent
                                                                   Participants in the
                                                                 Access Development

                                                Many of the cases reported to the Group             n   QFA tutorials and Online Support; and       The programme is structured to provide a
                                                Health and Safety Manager are very minor                                                            wide range of learning and development
                                                                                                    n   development programmes.
                                                incidents but we encourage reporting                                                                opportunities, for example, in the form
                                                as they may be an indicator of a more               In 2007, permanent tsb delivered the            of workshops and group projects. It also

                                                serious issue.                                      new Smart Mortgage system to all parts          provides a strong social and support
                                                                                                    of the business and Group Learning              network across the group, with mentoring
                                                The Safety, Health and Welfare at Work              and Development provided training to            support included. This is a dynamic
                                                General Application regulations 2007 were           approximately 500 members of staff.             programme that will change as the needs
                                                enacted in November. These regulations                                                              of the business change, and in this way,
                                                support the main 2005 Act.                          Apart from our standard range of
                                                                                                                                                    will always remain relevant.
                                                                                                    programmes, we also continued to design
                                                                                                    and deliver specialist programmes to meet       The programme was launched in
                                                Learning and development                            the needs of the businesses. Examples           September with nine permanent tsb
                                                                            2006            2007    are:                                            participants and seven from Irish Life. It
                                                                                                                                                    presents an opportunity for participants
                                                 Training expenditure        5.2m           6.4m    n   a Branch Manager programme
                                                                                                                                                    to develop their own skills and to make a
                                                                                                        called ‘Creating the Future’. This
16                                               Training days             14,200         16,600        programme consisted of six modules of
                                                                                                                                                    meaningful contribution to the business.

                                                 Average/employee 2.7 Days               3.0 Days       management and leadership material          In 2008, Irish Life & Permanent will launch
 I rish L ife & Perma n en t CR Rep or t 2007

                                                                                                        tailored to the Branch Manager              a new learning management system and
                                                                                                        competencies. Between July and              this will be rolled out to all employees
                                                At Irish Life & Permanent we are
                                                                                                        December 2007 over 450 delegate days        across the group. This innovative system
                                                committed to giving our staff
                                                                                                        were delivered for this group; and          will allow all staff to map out their
                                                opportunities to learn and develop
                                                throughout their time with the group.                                                               learning and development needs by giving
                                                                                                    n   an employee development programme
                                                Through class-room training, e-learning                                                             them access to an on-line catalogue of
                                                                                                        called VEGA - Vitality, Education,
                                                and on-line support, we provide a                                                                   learning and development options, to
                                                                                                        Growth and Achievement. This
                                                varied mix of product, technical, sales,                                                            on-line course booking and to their
                                                                                                        programme offered the opportunity for
                                                management, coaching, facilitation and                                                              history of learning and development.
                                                                                                        professional and personal development
                                                other relevant skills.                                  in short modules covering topics such       It will help many of our staff in
                                                                                                        as ‘Influencing and Interpersonal Skills’,   maintaining their qualifications through
                                                We run many programmes on an ongoing
                                                                                                        ‘Developing My Leadership Skills’ and       providing on-line continuous professional
                                                basis to support the needs of the business
                                                                                                        ‘Introduction to Project Management’.       development as required under the
                                                such as:
                                                                                                                                                    Consumer Protection Code which
                                                                                                    We also introduced a new programme
                                                n   induction programmes for Irish Life,                                                            will also cover Minimum Competency
                                                                                                    called ‘Access Development’. This is a
                                                    permanent tsb and Open 24;                                                                      Requirements.
                                                                                                    two-year programme which is aimed at
                                                n   systems training;                               both existing employees and newly-hired
                                                n   product training;                               graduates to help them develop to their
                                                                                                    full potential.

                                                                                                                                                                A new Learning
                                                                                                                                                                Management System
                                                                                                                                                                will be launched in
  Core values: A great place to work                                A team of winners
                                                        AT A
  Community                                            GLANCE

                                                                                                           POLI C Y
  Our policy is to concentrate our community activities in Ireland.
  We aim to make a measurable difference to whatever causes
  we select and to create volunteering opportunities for our

                                                                                                           AC TI ON
                       Flagship                                           Other
                     Programmes                                        Programmes

          Irish Life              permanent tsb               Central                    Support
                                                             Corporate                   for Staff
                                                               Fund                      Charities
                                                          (Sponsorships and                (Matched
                                                             Donations)                    Funding)

Trinity College    Age Action           Foróige
 Ageing Study     Care & Repair    Youth Citizenship
    10 Year          3 Year           Programme        Ethnic Entrepreneur Awards1     1-to-1 Matching
 Commitment       Commitment            3-5 Year           Access to Education1        of funds raised
                                     Commitment                Visual Arts1               by staff for
                                                            Inner City Dublin2        selected charities
                                                              Serious Illness2
                                                                                                           RE S U LT S

                                                                               1 We have programmes
  First year of Flagship Community                                               in place for these

  Programmes successfully completed.                                           2 We make donations
                                                                                 (typically 500- 5,000)
                                                                                 to organisations who
  Measurable impact achieved.                                                    apply for financial
                                                                                 support and who fall
                                                                                 within these categories
                                                                                                                                                               permanent tsb

                                                                                                                                                               over 3 years
                                                 Ray D’Arcy with Aoife Forde – MCs                    Members of the Mount Temple
                                                 for the permanent tsb Foróige                        Foróige Club at the National
                                                 National Awards                                      Awards

                                                Supporting youth work                             Regional awards
                                                                                               At the end of June 2007, the first regional
                                                in Ireland
                                                                                               youth citizenship awards were held over two
                                                Foróige is a leading Irish youth organisation. weekends in four locations around Ireland –

                                                In January 2007, permanent tsb                 Cork, Portlaoise, Claremorris and Cavan. This
                                                launched a partnership with Foróige - the      is the first time that Foróige Clubs and Projects
                                                permanent tsb Foróige Youth Citizenship        were recognised at regional level. More than
                                                programme - with a commitment to invest        13,000 young people took part, 148 projects
                                                  2m over three years in cash, marketing       were completed and 85 of these were
                                                support and volunteering. The programme showcased at the awards.
                                                consists of projects that young people
                                                around Ireland carry out to improve their      National awards
                                                local communities. In last year’s report,      The highlight of the year was the national
                                                we said that we were aiming over time          awards event that took place in Croke Park
                                                to expand the programme in four ways:          on 2 November 2007. Twenty projects were
18                                              n developing regional structures and
                                                                                               selected for recognition and more than 600
                                                                                               young people and 200 adults attended the
                                                                                               awards hosted by radio personality, Ray D’Arcy
 I rish L ife & Perma n en t CR Rep or t 2007

                                                n promoting volunteering by permanent          and Aoife Forde of Foróige. A full list of projects
                                                   tsb staff;                                                                                               “Our partnership with
                                                                                               awarded can be found on the Foróige website.
                                                n   using our branch network to showcase                                                                    permanent tsb and the huge
                                                    the activities of Foróige clubs and            
                                                                                                                                                            financial commitment that
                                                    projects; and,                                                                                          they are making to Foróige is
                                                n   inviting other youth groups and               Volunteering                                              allowing us to expand our youth
                                                    organisations to get involved in the          A volunteering scheme for permanent tsb                   citizenship programme. As a
                                                    programme.                                    employees was launched in October 2007.
                                                                                                  Employees were asked to volunteer for a                   result, many more young people
                                                So, how are we doing so far?
                                                                                                  period of three months or six months with                 will be involved in developing
                                                                                                  training to be provided. All volunteers undergo           both their communities and
                                                Youth citizenship programme                       Garda vetting before working with young
                                                                                                                                                            themselves. The commitment
                                                is developing with financial                       people. To date, 60 employees have signed-up
                                                                                                  for the programme.                                        that permanent tsb staff have
                                                and other support from
                                                                                                                                                            made to volunteer with Foróige
                                                permanent tsb                                     Branch Network                                            will also make a real difference
                                                                                                  In some locations, permanent tsb branches
                                                                                                  have been used to feature the work of local
                                                                                                                                                            to the impact of our work
                                                                                                  members and in other locations a very good                throughout Ireland.”
                                                                                                  working relationship has developed between
                                                                                                  the branches and the local Foróige Club.                  Sean Campbell (CEO Foróige)

                                                                                                                              Participants at the Foróige

                                                                                                                              National Awards

                                                                                                         to 10-year
                                                                                                         Ageing Study
       TILDA Steering Committee

Involving other youth                                     Trinity Long-Term Study
organisations                                             of Ageing (TILDA)
The 2008 Awards have been opened to                       In 2006, Irish Life agreed to act as anchor

other youth groups and organisations and                  sponsor for this important study. The
this was communicated in an extensive                     research will provide valuable information
radio and press campaign in November                      on the lifestyles, health and well-being of
2007. More than 200 enquiries were                        older people that will help us to serve our
received from other organisations indicating              customers better.
a high level of interest in the awards.
                                                          The study is being led by Trinity College
                                                          and will survey 10,000 people aged 50 and
Improving the quality                                     over. It will collect detailed information
                                                          on all aspects of their lives, including
of life for older people
                                                          the economic dimension (pensions,
Irish Life is the biggest provider of pensions            employment, living standards etc.), health
and related products in Ireland apart from                aspects (physical, mental, service needs and
the State. We pay out pensions to more                    usage etc.) and social aspects (contact with
than 30,000 people every year, so we                      friends and kin, formal and informal care,

                                                                                                                                                 Irish L ife & Perma n ent CR Rep or t 2 00 7
have many older and retired people as                     social participation etc.).
customers. In 2006, we launched two major                                                                “Irish Life’s leadership and
                                                          In 2007, the focus was on putting the
programmes focusing on older people                                                                      financial support were very
                                                          structures in place to support the study
– the first ever long-term study of ageing
                                                          including the full research team, governance   important in helping to make
in Ireland (TILDA) and a Care & Repair
                                                          structure, setting up links with other
programme for older people.                                                                              this innovative study programme
                                                          international ageing studies and with key
                                                          Government departments. The total cost         a reality. Our older people are
                                                          of the study over 10 years is estimated        amongst the least healthy in
                                                          to be 29m of which Irish Life will
                                                                                                         Europe and the proportion of
                                                          contribute 4m.
                                                                                                         older Irish people living in income
                                                                                                         poverty (40%) is highest in the
                                                          Care & Repair services                         EU 15. We need to know why
                                                          In October 2007, Age Action Ireland            this is and what needs to be done
                                                          launched an innovative programme called        to develop the best models of
                                                          ‘Care & Repair’ offering a minor DIY service
                                                          and a home visiting service to older people    care for our older citizens”.
                                                          in Ireland. Irish Life has agreed to sponsor
                                                                                                         Roseanne Kenny
                                                          the programme for the first three years with
Jennifer Connolly and Sean Silke of Age Action with the
Living Dublin Award.                                      funding of 250,000 a year.                     (Principal Investigator of TILDA)

                                                            Don Hanks of

                                                            Age Action Care
                                                            and Repair with
                                                            Michael Brady,

                                                                                                         Care &
                                                                                                         Repair jobs
                                                    Presentation of
                                                   cheques to Irish
                                                Life staff Charities

                                                                                                                                                         entries for Ethnic

                                                The launch followed a six-month pilot study       immigrants in the economic life of the
                                                to test the demand for the new services           country and their contribution to society in
                                                and the level of support from suitable            general. Our sponsorship also recognises
                                                volunteers. By the end of the year, a total of    that non-Irish nationals account for 10%

                                                511 jobs had been carried out in Dublin and       of the population and that many of our
                                                Galway by 59 volunteers and by tradesmen          own customers now come from these new
                                                who had been vetted by the Care & Repair          communities.
                                                team. The jobs included gardening, painting
                                                                                                  An additional feature of this year’s awards
                                                and minor carpentry and electrical works.
                                                                                                  is that the overall winner will be invited to
                                                The client pays only the cost of materials
                                                                                                  become a member of the Ryan Academy for
                                                used. The demand for the home visiting
                                                                                                  Entrepreneurship (
                                                service has been quite low with very few
                                                                                                  and to attend the Ryan Academy Strategic
                                                calls and we are looking at ways to structure
                                                                                                  Leadership Series.
                                                this differently in 2008.
                                                                                                  The awards will be held in Dublin in
                                                These new services help to improve the
20                                              quality of life for older people - particularly
                                                                                                  April 2008.

                                                those who are living alone – and may allow        Weblinks:
 I rish L ife & Perma n en t CR Rep or t 2007

                                                them to live longer in their own homes  
                                                which is what the vast majority of them 
                                                want to do.                                                                                           “Irish Life’s funding of Care
                                                The Care & Repair programme was the               Staff charities                                     & Repair has had a multiplier
                                                winner in the Community Development               In 2007, we continued our policy of                 effect, bringing forward
                                                category of the 2007 Living Dublin Awards.        supporting the two staff charity organisations
                                                                                                                                                      volunteers, and forging links
                                                                                                  in Irish Life and permanent tsb, by matching
                                                 Weblink:                        funds raised by staff for their chosen charities.   between groups and statutory
                                                                                                  Charities selected for support in 2007 were:        authorities, with the bottom line
                                                Wide range of other                               Irish Life                                          of enabling older people live for
                                                support activities                                • Cystic Fibrosis Association                       longer in their own homes. Irish
                                                                                                  • Aids Partnership for Africa (APA)                 Life’s involvement in this project
                                                Ethnic entrepreneurs
                                                permanent tsb’s sponsorship of the first           permanent tsb                                       is an excellent example of the
                                                Ethnic Entrepreneur Awards programme              • St. Francis Hospice, Dublin                       impact which good corporate
                                                in Ireland continued for a second year in
                                                                                                  • Rosbrien Suicide Awareness Group                  social responsibility can have
                                                The number of entries increased from 45
                                                                                                  The total amount of money raised by Irish           on society.”
                                                                                                  Life staff in 2007 was 80,000 (compared
                                                in 2006/7 to 73 in 2007/8. These awards
                                                                                                  with 68,000 in 2006) and this was matched           Robin Webster
                                                recognise the increasing participation of
                                                                                                  by the company. Each charity received a             (CEO Age Action Ireland)

                                                                                                                                                      raised by staff
Ciaran Long of Irish                                                                                                 Restoration of former
Life & Permanent                                                                                                     Labour Exchange,
with Samuel Bodiu,                                                                                                   Gardiner Street,
one of the New Irish                                                                                                 Dublin
Community Students
of the Year

cheque for this amount in December. In           Sponsorships and donations                    Mentoring programmes
permanent tsb, the staff charities operate       In 2007, we made contributions from           Our partnership with Patrician College,
to a March year-end. Total funds raised were     our Central Corporate Fund totalling          Dublin strengthened during the year with
  73,000 - also ahead of the result for 2006/7     270,000 including:                          the introduction of a supervised study

( 52,000).                                       n 50,000 once-off donation to the             scheme for sixth-year students. We got
                                                  Trinity Church Network towards the           very positive feedback from both students
Other group companies                             cost of restoration of the former Labour     and teachers and we have continued with
Irish Progressive Services International          Exchange in Gardiner Street beside           the scheme in 2008. Also, we introduced
(IPSI) took part in the Santa Letter project      our group headquarters in Dublin. The        one-to-one mentoring for students and
for the fourth year running. In December          donation will be used to install two lifts   again, the feedback was very good.
2007, IPSI staff distributed Christmas            for disabled and buggy access;               Social Entrepreneurs Ireland is an
presents to the students of Scoil Mhuire,
                                                 n 10,000 to Lifestart Ballymun, Dublin        organisation that supports people who set
Ballyboden, Co. Dublin.
                                                  - a home-based, educational and family       up businesses to create social value rather
Cornmarket Group specialises in designing         support programme for parents of             than profit. They do this by tackling social
financial services that are tailored to the        children aged birth to five years;            problems and finding long-term solutions.
needs of employees in the public sector          n 10,000 to The Jack & Jill Foundation        During 2007, we introduced a scheme            21
such as teachers, nurses, civil servants and      who help babies born with severe             to offer mentoring support to a small

                                                                                                                                                Irish L ife & Perma n ent CR Rep or t 2 00 7
local government staff.                           developmental delay; and,                    number of these social entrepreneurs and
                                                                                               this will continue during 2008.
In 2007, Cornmarket launched the Global          n 10,000 to the Niall Mellon Township
Schoolroom Project, a training programme          Trust. One of our senior executives took     Weblink:
for teachers in the northeast of India.           part in the 2007 Building Blitz in South
                                                  Africa, raising almost 50,000.               The Social Finance Foundation
400 Indian teachers benefited from
training provided by eight Irish teachers        We also support access to education           The Social Finance Foundation is a
who travelled to India during the Irish          programmes in Dublin and Cork. The            not-for-profit company set up by the
school holidays. All costs were funded by        Dublin programme is a collaboration           Government to make funding available at
Cornmarket. Feedback from all participants,      between Trinity College, University           affordable rates for social finance projects.
both Irish and Indian, was very positive.        College Dublin and Dublin City University.    Social finance projects are community-
                                                 It is intended to address the challenges      based and support local development.
In 2008, Global Schoolroom will fund 15                                                        The Foundation was incorporated in
                                                 faced by immigrants in accessing third-
teachers, both primary and secondary, in                                                       January 2007 and received seed funding
                                                 level education, and includes awards to
further developing the programme.                                                              of 25m from the banking sector. Irish Life
                                                 New Irish Community Students of the
This team will be based in India for four                                                      & Permanent’s contribution was 3.1m.
                                                 Year. We also support the ‘Bridging the
weeks in July.
                                                 Gap’ programme in University College          Weblink:
                                                 Cork. We have committed 45,000
                                                 per year over three years to these
              Core values: A great place to work                                    A team of winners
                                                                          AT A
              Environment                                                GLANCE

              Our policy is to minimise our impact on the environment
              and to promote awareness of environmental issues among
              staff and the wider community.

                                Energy                                          Waste             Use of resources

                 Minimising           Maximising use                         Recycling              Minimising
                    use                of renewable                                                 use (paper,
                                           energy                                                  water, other)

                   Corporate               Renewable                          Recycling of              Some
Su mmar y

                   partner of             electricity in                    office waste in            paper-free
                 national Power           use in nearly                    place throughout        communications
                of One campaign           all branches                         the group             launched in
                                       of permanent tsb                                                 2007
                                      plus a small number
                                       of other buildings

                   Centralised            Will continue                     Will complete            Will increase
D e tail

                printing in major        to have multiple                    a review of           number of water
                 office centres           energy suppliers                     recycling            meters and target
                                                                              facilities              reductions

               All refurbishments        Will assess usage                Ellicro ‘intelligent’    Will extend use
                 include energy            of renewable                   recycling machine         of paper-free
                    reduction            energy for new                   installed in group       communications
                    measures              permanent tsb                        head office
                                            head office

               Supporter of DTO
                One Small Step

                 11.5% electricity            30% green                   76% of total waste       Projected savings

                    reduction                energy* use                   recycled in 2007        of 0.5m A4 pages
                achieved in group                                                                  from one specific
               head office (selected           37% green                                            initiative in 2007
              areas over 11 months)           electricity
                  5% reduction
                   achieved in
                 permanent tsb        *Total energy = electricity, gas
                head office (Q4)       and oil
Power of One

Energy management                               n   switching of all equipment at the end of     Maximising use of
                                                    each day;                                    renewable energy
Minimising energy use                           n   unplugging mobile phone chargers; and,       In 2007, we maintained our supply of

In 2007, Irish Life & Permanent became          n   replacement of PC monitors with flat-         electricity from renewable sources and we
one of the first corporate partners of               screen monitors.                             have now achieved a green energy usage
the national Power of One campaign                                                               level of 30% (v. 29% in 2006). Our policy is
                                                We will continue to use the Power of One
promoting energy efficiency for Ireland.                                                          to maintain a balance of supply from both
                                                campaign as a focus for our campaign
This followed the launch of a Power of                                                           renewable and non-renewable sources
                                                for energy efficiency and we will aim to
One project in Irish Life in February. The                                                       that keeps us ahead of public policy
                                                achieve further reductions in electricity
campaign was extended to permanent                                                               benchmarks.
                                                use throughout the group. We will also see
tsb in October.                                                                                  Looking ahead, the next major opportunity
                                                if we can identify a benchmark position
The focus for the campaign was achieving        for electricity use for our size, nature         for increasing our use of renewable energy
reductions in electricity use in defined         of business and type of premises. This           will be in the development of the new
areas of our Head Office buildings where         will allow us to set realistic targets for       permanent tsb head office - due for
staff could influence the level of use. In                                                        completion in 2010. The specification for
Irish Life, the total energy saving target
                                                reductions in electricity use.
                                                                                                 this development will include the use of       23
                                                Weblink: (at work)
was 125,000KWh (5%) for 11 months                                                                renewable energy where possible.

                                                                                                                                                  Irish L ife & Perm a n en t CR Repo r t 20 07
and in permanent tsb it was 25,000KWh
(5%) for three months. The campaign was         Energy Standard IS393                            Waste management
supported by a group of staff who acted as      During 2007, we met with Sustainable Energy
‘Power of One Champions’.                                                                        We have had full waste recycling facilities
                                                Ireland (SEI) to discuss future accreditation
                                                                                                 in place in our head office locations for
A feature of the campaigns was that             to the IS393 energy management system.
                                                                                                 a number of years now and in a small
savings were linked to a donation to staff      The IS393 standard was developed in Ireland
                                                                                                 number of permanent tsb branches.
charities by the company. Irish Life and        and helps organisations to integrate energy
                                                                                                 In the last quarter of 2007, we extended
permanent tsb both have staff charities         management into their business structures
                                                                                                 recycling facilities to almost the whole of
that were set up and are run entirely           so that they save energy, save costs and
                                                                                                 the permanent tsb branch network. The
by staff. In Irish Life, the reduction in       improve energy and business performance.
                                                                                                 only exceptions are a small number of
electricity use achieved, at 11.5%, was well    SEI also arranged to have free energy audits     branches e.g. in shopping centres where
ahead of the target and this resulted in a      carried out in our group and permanent tsb       we do not control waste collections.
donation of 15,500 to the staff charities;      head offices in Dublin. These audits showed
in permanent tsb, the reduction achieved                                                         During 2007, we also reviewed our on-floor
                                                some scope to achieve further energy
was in line with target and a donation of                                                        recycling facilities and we plan to make
                                                reductions in specific areas and this will form
  5,000 was made to the charities.                                                               some changes in 2008 to increase the level
                                                part of our Power of One campaign in 2008.
                                                                                                 of compliance with waste segregation.
Specific actions that resulted in the savings    We will also begin the process of achieving      This will include new, clearer labelling for
included:                                       accreditation to the IS393 standard.             recycling bins.
n   installing movement sensors for lights in   Weblink:
    common areas;

               Recycling bins
                in Irish Life &
                  Head Office
                                                                                                        energy from
                                                                                                            Stephen Fennell,

                                                                                                         Facilities Manager,
                                                                                                         demonstrating the
                                                                                                         Ellicro “intelligent”
                                                                                                          recycling machine
                                                                                                        in the Irish Life staff
                                                       of shareholders have                                        restaurant

                                                       agreed to electronic

                                                Intelligent recycling                          reports and documents by email -                  about 50% of the average for Dublin and the
                                                At the end of 2007, we arranged for the        a 10% increase on 2006. However, this still       proportion of those using public transport
                                                installation of an ‘intelligent’ recycling     represents only 6% of our total shareholder       was more than double the average.

                                                machine in our group head office in             base of 133,700. We are looking at ways of
                                                Dublin. The machine was supplied by            increasing this in 2008.                          Mode of travel (Dublin)
                                                Ellicro Environmental Care Limited which       Most of the paper we use is for                   Mode               share* %     Irish Life %
                                                has been supplying reverse vending             communicating with customers and
                                                machine technology in Ireland since                                                              Car driver              50.8           26.0
                                                                                               intermediaries. In 2007 in Irish Life, we
                                                2003. The machine uses computer chip           started looking at ways of reducing this.         Car passenger            3.9            5.0
                                                technology to recognise and segregate          We began by targeting duplicate customer
                                                                                                                                                 Bus/Coach               14.9           23.3
                                                aluminium cans and plastic bottles             benefit statements issued to intermediaries.
                                                placed in the machine. Items are then          We have introduced a default of electronic        Train/Dart/Luas           7.7          27.5
                                                crushed, reducing the volume of waste          statements for our OneSource & Direct             Walk                    13.7           11.2
                                                by almost 90%.                                 channel and an option for brokers to choose
                                                                                               electronic. This move is expected to deliver      Cycle                    4.0            2.7
24                                              Restaurant waste                               annual savings of 500,000 pages of A4 size        Motor cycle/scooter      1.3            1.1
                                                Our staff restaurants in our head office        paper. The next step will be to extend
                                                                                                                                                 Other                    3.7            3.2
 I rish L ife & Perma n en t CR Rep or t 2007

                                                locations are managed by Campbell              paper-free communication to customer
                                                Catering. In 2008, we plan to review the       correspondence.                                   Total                 100.0          100.0
                                                procedures for the disposal of restaurant
                                                                                                                                                 * 2006 Census
                                                waste with them including possible             Water
                                                recycling of organic waste.                    Our group head office is in a multi-tenanted
                                                                                               centre in Dublin and water metering is in         Other environmental issues
                                                Use of resources                               place for the centre. It is not in place in any
                                                                                                                                                 Strengthening our environmental
                                                                                               other office locations. We plan to extend the
                                                Paper                                                                                            management system
                                                                                               use of metering to allow us to manage and,
                                                Apart from energy, we do not currently         where possible, reduce our use of water.          In last year’s report, we said that we were
                                                have group-wide procedures for directly                                                          having some difficulties in getting accurate
                                                monitoring the use of natural resources i.e.   Transport                                         monthly data from a number of our
                                                mainly paper and water.                                                                          suppliers. This difficulty continued into 2007
                                                                                               In 2007, Irish Life became one of the first
                                                                                                                                                 and we were not happy to release data
                                                We have been encouraging the use of            corporate partners of the One Small
                                                                                                                                                 publicly until we had carried out further
                                                electronic communication by shareholders       Step campaign being run by the Dublin
                                                                                                                                                 checks. We are releasing data with this
                                                (annual reports, notice of meetings and        Transportation Office (DTO). We took
                                                                                                                                                 report and this includes some degree of
                                                other correspondence) for a number of          part in a survey of mode of travel to work
                                                                                                                                                 estimation for 2006. We do not believe that
                                                years now. By the end of 2007, more than       and the results showed that of those who
                                                                                                                                                 this has any material impact on the accuracy
                                                8,600 shareholders had registered to receive   responded, the proportion of car drivers was
                                                                                                                                                 of the data.

                                                        Public transport
                                                        use in Irish Life is
                                                        more than twice
                                                        the average for
                                                                    In 2007,
                                                                    permanent tsb
                                                                    launched Ireland’s
                                                                    first green loan

Suppliers                                      Products that qualify for a green loan        Key Performance Indicators
Our policy is to review the environmental      include insulation, double/triple glazing,
practices of at least 10% of our major         solar energy systems and pellet/wood           Energy                    2006        2007

                                               chip boilers. The scheme offers a 1%           Consumption
suppliers every year. We have approximately
50 major suppliers including Woodprintcraft    discount against standard personal loan
                                                                                              Electricity – total       19.7        19.3
(printed materials), Axis (computer            rates. For each loan taken out we also         (GWh)
supplies), Noonan Services (contract           plant a tree in the name of the borrower-
                                               managed through the Tree Council of            Green electricity           7.1         7.1
cleaning), Greenclean and Greenstar (waste
                                               Ireland.                                       (GWh)
recycling). We completed reviews for 11
suppliers in 2007 and they confirmed that       To date, the take-up has been quite low        Gas (GWh)                   4.5         3.7
they are continuing to follow best practice.   with a total of 94 green loans drawn down
                                                                                              Oil (GWh)                   0.5         0.2
                                               (to the end of February 2008) with a total
Participation in indices                       value of 1.8m.                                 Total energy              24.7        23.2
Irish Life & Permanent has retained its
membership of the FTSE4Good index in           Company cars
                                                                                              Green energy %            29%         30%
2007 and continues to be represented in the    In his first carbon budget, delivered in                                                       25
Kempen/SNS Smaller Europe Index. In our        December 2007, the Minister for the            *CO2 emissions          10,206       9,225

                                                                                                                                               Irish L ife & Perma n ent CR Rep or t 2 00 7
FTSE4Good rating, we hold a best practice      Environment announced changes to both
score of 5 for Stakeholder Management and      Vehicle Registration Tax (VRT) and Motor      * Includes company car emissions
a good practice score of 3 for Environment.    Tax to encourage consumers to buy cars
                                               with low CO2 emissions.
Weblinks:                                                                   Waste                   2006        2007
                       The changes will take effect on 1 July         generation
                                               2008. Under the new system, the CO2            (tonnes)*
Green financial products                        emissions of a car rather than engine
                                                                                              Total                    1,530       1,424
                                               size will determine both the level of VRT
In 2007, permanent tsb launched
                                               payable at the point of registration and       Waste to landfill           365         348
Ireland’s first green loan. A 10m fund
                                               the level of motor tax. VRT rates will
was made available to allow customers                                                         Waste recycled           1,165       1,076
                                               range from 14% for the lowest emitting
to borrow money to improve the energy                                                         or reused
                                               cars to 36% for those with the highest
efficiency of their home. This was the first
                                               emissions. Similarly, motor tax rates will     Waste recycled            76%         76%
scheme of its kind in Ireland. It was also
                                               range from 100 to 2,000.
selected to be showcased at a European                                                        Hazardous waste             5.3        3.4
Marketplace on CSR held in Brussels in         Clearly, these changes have major
November 2007 and attracted a lot of           implications for the cost of company cars.    *The level of waste we generate is dependent,
interest from delegates.                       We have more than 700 company cars and        among other things, on the number of
                                               we are reviewing our policy in the light of   premises’ refurbishments carried out each
                                               the tax changes.                              year. This can result in major fluctuations in
                                                                                             waste generated from year-to-year and in the
                                                                                             proportion of waste recycled.
                                                 Group Overview
                                                 Irish Life & Permanent was formed in 1999 from the merger of Irish Life and Irish
                                                 Permanent. TSB bank joined the group in 2001. The group has 5,600 employees
                                                 and has a strategic focus on the Irish personal financial services market.

                                                   Our Core Values                                                                             Irish Life & Permanent Group
Group Overview

                                                                 A team                                                                      100%                                 100%                        30%

                                                                of winners                                                          Irish Life                                   permanent tsb                 Allianz

26                                                            pursuit of                                             Retail          Corporate              ILIM*                ptsb         CHL**          Allianz-Irish
                                                              customer                                            Individual         Group life             Fund           Mortgages,       Mortgages
  I rish Li fe & Perma n en t CR Rep or t 2007

                                                                                                                     life,         and pensions         management,          current          (UK)             General
                                                             satisfaction                                          pensions,
                                                                                                                                   via employers
                                                                                                                                    and affinity
                                                                                                                                                         active and
                                                                                                                                                                           car finance,

                                                                                                                 and savings           groups             products           savings,
                                                                                                                                                                           credit cards

                                                      A great place
                                                                                                                * Irish Life Investment Managers
                                                         to work                                                ** Capital Home Loans Limited
                                                                                                                Note: Irish Life international, Irish Progressive Services International, Cornmarket Group Financial
                                                                                                                Services Limited, Blue Cube Personal Loans Ltd and Springboard Mortgages are also group companies.

                                                                                                                    1800                       1930                                                         1960
                                                                     Irish Life                                                                    1939                             1947                     1965
                                                                     A Government-owned life assurance                                             Irish Life Assurance             Restructuring            UK Branch
                                                                     company. The largest life and pensions                                        formed (amalgamation of          – Minister for           operation
                                                                     company in Ireland.                                                           nine British and Irish life      Finance acquires         begins
                                                                     Expertise in life and pensions business                                       assurance companies)             90% shareholding
                                                                     and fund management.
                                                     Group History

                                                                     Irish Permanent                                       1884                                       1940
                                                                     The largest building society in Ireland.
                                                                                                                           Irish Temperance                           Name changed to
                                                                                                                           Permanent Benefit                           Irish Permanent
                                                                     Expertise in mortgage business and                    Building Society                           Building Society
                                                                     car finance.                                          formed

                                                                     TSB                                             Early 1800’s                                                                                  1976
                                                                                                                     First Trustee                                                                                 Dublin Savings
                                                                     Formed from the merger of various
                                                                     trustee savings organisations.                  Savings Banks                                                                                 Bank and
                                                                                                                     formed                                                                                        Monaghan
                                                                     Expertise in retail banking and branch                                                                                                        Savings Bank
                                                                     services.                                                                                                                                     merge
                                                                                        Fountain and sculpture (‘Chariot of
                                                                                        Life’ by Oisín Kelly) in the Plaza of the
                                                                                        Irish Life Centre, Abbey Street, Dublin.

Group Strategy                                    Markets and Market Share

                                                                                                                                                                    Group overview
                                                    Market Shares                                               2006                     2007
 ‘Ireland First’ strategy
                                                    Retail Life                                                 24% E                  25.1% E
 We focus on personal financial
 services in Ireland.                               Corporate Life                                              40% E                    46% E

                                                    Mortgages                                                   22% E                    21% E
 Product strength and
                                                    Current Accounts                                            11% E                    12% E
 distribution reach
                                                    Fund Management                                            25.3%                    28.6%
 We have a wide range of
 financial products and a wide                     E = Estimate

 variety of access channels.                      Financial Results                                                                                                  27
                                                                                                         Full Year 2006             Full Year 2007

                                                                                                                                                                       Irish Life & Permanent CR Repor t 2007
 Opportunistic approach
                                                    Operating profit                                              529m                     590m
 to acquisitions

 We will consider acquisitions                      Profit after tax                                              561m                     408m

 that fit our ‘Ireland First’                        New lending                                                 12.9bln                 12.4bln
                                                    Loan book                                                   33.8bln                 39.2bln

                                                    Life and investment new business                             706m                    1,014m

This report covers the 12 month period to 31 December 2007. Our last report covered the 12 month period to 31 December 2006.

       1980                                           1990                                                                                    2000
         1982                                           1991                                                                           1999
         Controlling interest                           Public                                                                         Merger with Irish
         in Church & General                            flotation of                                                                    Permanent
         acquired                                       Irish Life plc                                                                 Acquisition of

                                        1989                      1992           1994                         1996                     1999
                                        Building Societies        Irish          Public flotation              Capital Home             Merger
                                        Act – societies           Permanent      of Irish                     Loans, a mortgage        with
                                        can expand                Finance        Permanent plc                lender in the UK,        Irish Life
                                        services                  established                                 acquired

                     1986                1988                1992                                                                                2001
                     Cork Savings        TSB Dublin          TSB Bank created from                                                               TSB Bank
                     Bank and            and TSB             the merger of TSB Dublin                                                            joins Irish Life
                     Limerick Savings    Waterford           and Cork and Limerick                                                               & Permanent
                     Bank merge          merge               Savings Bank                                                                        group
                                                      Global Reporting Initiative

                                                      This report has been prepared with                  consist of principles for defining report               year’s report. We self declare that we have
                                                      reference to the Global Reporting Initiative        content and ensuring the quality of                    applied the GRI Reporting Framework to
                                                      G3 guidelines. These were issued in                 reported information as well as standard               application level ‘B+’. A ‘B+’ application
Global reporting

                                                      October 2006 and we were one of the first            disclosures comprising performance                     level requires reporting on a specified
                                                      Irish companies to adopt them.                      indicators and other disclosure items.                 range of criteria and reporting on a
                                                                                                                                                                 minimum of 20 performance indicators.
                                                      The “Global Reporting Initiative” (GRI) is          Organisations have the option of using
                                                                                                                                                                 It also requires that external assurance has
                                                      a large network of thousands of experts,            independent, external assurance to
                                                                                                                                                                 been applied for the report.
                                                      in dozens of countries worldwide, whose             provide opinions about a sustainability
                                                      mission is to provide the global standards          report. We have chosen to do this for                  The second table below lists the sections
                                                      for sustainability reporting.                       our 2007 report and the statement from                 to the guidelines that we have reported on
                                                                                                          the independent external consultant is                 and where we have reported on them. The
                                                      The GRI network has developed a
                                                                                                          presented on page 31 of this report.                   full GRI Content Index is available on our
                                                      Sustainability Reporting Framework,
                                                                                                                                                                 website –
                                                      the core of which is Sustainability                 The first table below sets out our
                                                      Reporting Guidelines. The Guidelines                assessment of the level of disclosure in this

  28                                                                                       2002 In
                                                                                                                 C                 C+               B                   B+               A             A+
       I rish Li fe & Perma n en t CR Rep or t 2007

                                                                         Declared                                                                                       ¸
                                                                         Third Party
                                                                         Checked                                                                                        ¸

                                                                                                                                                              Performance Indicators
                                                        Source          Strategy     Organisation Report Governance Economic Environment Labour and                                      Society      Products
                                                                          and          Profile    Parameters           (EC)       (EN)      Human                                          (SO)          (PR)
                                                                        Analysis                                                           Rights
                                                        CR ’07             1.1,        2.1, 2.2, 2.3, 3.1, 3.2, 3.3, 4.4, 4.8, 4.9,                      3, 4, 5, 16,    LA1, 2, 7, 8,                 3, 5, 6
                                                                           1.2         2.5, 2.6, 2.7, 3.4, 3.7, 3.10 4.14, 4.15,                           18, 22         10, 11, 13,
                                                                                         2.8, 2.10                    4.16, 4.17                                             HR3
                                                        AR ’07                              2.8                         4.1, 4.2, 4.3,     1, 3
                                                                                                                        4.5, 4.6, 4.7,
                                                                                                                         4.10, 4.11
                                                        Web                            2.4, 2.8, 2.9   3.5, 3.6, 3.8,    4.8, 4.12,      MAD                MAD             MAD           MAD          MAD
                                                                                                        3.9, 3.11,         4.13          4, 6, 8          7, 17, 28      LA4, 5, 8, 12, 2, 3, 5, 6,   3, 4, 7, 8
                                                                                                        3.12, 3.13                                                         14, HR5         7, 8
                                                        NR                                                                                 2, 7            1, 2, 19          HR 2, 4         4
                                                        NA                                                                                              8, 11, 12, 20,       HR1, 6, 7       1            1
                                                                                                                                                        21, 23, 26, 27

                                                      n CR ’07: Corporate Responsibility Report 2007
                                                      n AR ’07: Annual Report and Accounts 2007
                                                      n Web: A copy of our complete GRI Content Index is available on our website –
                                                      n NR: Not reported – this indicator is currently not being measured or has not been reported on in IL&P’s CR report
                                                      n NA: Not applicable – this indicator is not considered relevant or material to IL&P’s operational activities
                                                      n MAD: G3 Management Approach Disclosures
CR Programme                                                                      Completed              Partly completed          Not yet completed

Plans for 2007                                     Progress in 2007                              Plans for 2008
Satisfaction Index reporting for our three main          Completed – results in this report      Continue to develop customer satisfaction
businesses and actions on results.                       (Pages 6-9)                             programmes
Complete training for permanent tsb staff in
use of Plain English.
Improve disability access:
Complete installation of hearing aid loop
                                                         Completed (page 11)                     N/A
                                                         Not completed. Priority switched to
Reposition 10% of our ATM machines.                      making all permanent tsb branches       Reposition some non-compliant ATMs.
                                                         accessible (see below).
                                                         A programme of works on 11
                                                         permanent tsb branches to
                                                         improve accessibility was started and   Complete works on remaining seven branches.

                                                                                                                                                       CR Programme
                                                         works on four branches have been
                                                         completed (Page 11)
Carry out employee surveys in Irish Life Retail,
permanent tsb, ILIM and Irish Life Corporate             Completed (Page 15)                     Carry out surveys in a number of our companies
n Review Job advertisements
                                                                                                 n Monitor compliance with equality legislation
n Equality compliance training                           Completed (Page 14)
                                                                                                 n Review equality policies of preferred agencies
n Use of application forms
n Interview locations
Achieve in excess of 3% employment level for
                                                         Achieved (Page 14)                      N/A
people with disabilities
                                                         New ‘Access Development’
                                                         programme launched (Page 16)
                                                                                                 Continue with programme                               29
                                                                                                 Launch new learning management system to all

                                                                                                                                                         Irish L ife & Perm a n en t CR Repo r t 20 07
                                                                                                 employees in the group
Develop structures for Regional Youth                                                            Raise profile of Youth Citizenship programme
                                                         Ahead of target (Page 18)
Citizenship Awards                                                                               and open awards to all youth organisations.
                                                                                                 Roll-out services nationwide using a franchise
Pilot Care & Repair services                             Completed (Page 19)
                                                                                                 Complete pilot study and launch Wave 1 of the
Seminars on ageing                                       Completed
                                                                                                 main ageing study.
                                                                                                 Expand volunteering programme in permanent
Launch Employee Volunteering Policy and
                                                         Partly completed (Page 18)              tsb and test model for employee volunteering in
secure employee involvement in volunteering.
                                                                                                 our group Head Office.
Match funds raised by Staff Charities up to                                                      Continue support for Staff Charities and match
                                                         Completed (Page 20)
 200,000                                                                                         funds raised.
                                                                                                 Continue to develop partnership with Patrician
n Fund supervised study scheme for Patrician
                                                                                                 College and consider partnering at least one
                                                         Partly completed (Page 21)              more school.
n Mentor at least 20 students under the Trinity
                                                                                                 Pilot business mentoring scheme with Social
  College e-mentoring scheme
                                                                                                 Entrepreneurs Ireland.
n Develop mentor training programme
Launch awareness initiatives at individual                                                       Continue to promote awareness using the Power
                                                         Completed (Page 23)
business level                                                                                   of One and One Small Step campaigns.
Move to monthly reporting of environmental                                                       Continue to refine data and use for target
                                                         Completed (Page 24)
data                                                                                             setting.
Set target date for achievement of ISO14001              Not done. Development of new data
                                                                                                 Set target date.
Standard                                                 system took longer than expected.
Continue to review practices of 10% of our
                                                         Completed (Page 25)                     Continue
Develop new approach to promote electronic                                                       Consider ways of increasing the percentage of
                                                         Partly completed (Page 24)
communications with our shareholders                                                             shareholders using electronic communication
                                                         New core group values launched
                                                                                                 Embed new values throughout the group
                                                         (Pages 2-4)
CR Management and Reporting
                                                         GRI compliance and external
                                                                                                 Achieve additional external benchmarks
                                                         assurance for CR report
                                                External commentary by
                                                Business in the Community Ireland

                                                This is the fourth stand-alone report          operations is an excellent initiative          its operations and how these are being
                                                issued by Irish Life & Permanent               and we certainly look forward to more          integrated into core decision-making.
                                                plc on their corporate responsibility          information on the results and impact of
                                                                                                                                              As noted in the introduction by the
                                                performance. We welcome this report as a       this programme.

                                                                                                                                              CEO, communicating on corporate
                                                statement of the company’s commitment
                                                                                               This is the first report by Irish Life          responsibility policies and the impact of its
                                                to transparency and accountability across
                                                                                               & Permanent plc with a verification             practices is about competitive advantage
                                                the board. This year’s report, themed
                                                                                               statement, which again demonstrates            and we congratulate the leadership
                                                “becoming a values-driven company”
                                                                                               the importance that transparency and           demonstrated by Irish Life & Permanent
                                                shows how corporate values are made
                                                                                               accountability have for the Group as           plc for its reporting practices which
                                                real in everyday operations and what
                                                                                               well as the use of the Global Reporting        are among best in class in the financial
                                                they mean in practice across the Group in
                                                                                               Initiative G3 Guidelines to allow for better   services sector in Ireland. We hope that
                                                everyday operations and across the Group
                                                                                               comparability and benchmark of data.           more businesses in this sector will adopt
                                                                                               The incorporation of an external               similar reporting practices and report on
                                                It is a difficult task for a company issuing    verification statement puts this report on      key issues that are relevant to customers
                                                their fourth corporate responsibility report   par with international best practice on        and other key stakeholders.
                                                to remain innovative and informative in        corporate responsibility communications.
30                                              the style and layout, but this report has
                                                                                               Looking at future reporting, we would
                                                succeeded in this challenge by presenting
 I rish L ife & Perma n en t CR Rep or t 2007

                                                                                               like to see information on the integration
                                                highlights of each area of corporate
                                                                                               of social and environmental criteria into
                                                responsibility in a short synopsis and later
                                                                                               products and services – further to the
                                                expanding into key initiatives.
                                                                                               launch of the green financial products,
                                                The report is noteworthy for its               on the impact of these products in             Tina Roche
                                                comprehensive section on customer              the market and how the sustainability          Chief Executive
                                                satisfaction, with key metrics on customer     message is communicated to customers.          Business in the Community Ireland
                                                satisfaction, complaints, training on          More information on engagement with  
                                                customer care and new initiatives              suppliers would be important as a key
                                                responding to customer concerns.               stakeholder for the Group. Finally, we
                                                In particular, the recent programme            would urge the Group to report on
                                                to promote innovation amongst staff            how it takes due regard to the indirect
                                                to improve efficiency across Group              environmental and social impacts of
External Assurance Statement

Irish Life & Permanent plc commissioned      Review Process                               n Statements made in the report are
GMJ Associates to provide independent                                                       supported by data or other objective
                                             n Interviews with Management
assurance of the information in the                                                         evidence
                                               responsible for the scope of the 2007
Irish Life & Permanent plc Corporate
                                               Report                                     n The report presents a balanced

Responsibility Report 2007. We have
                                                                                            and accurate assessment of the
previously consulted with Irish Life &       n Review and sample testing of data
                                                                                            Corporate Responsibility activities and
Permanent plc to provide some facilitation     including reference to supporting
                                                                                            measurement carried out during 2007
and research services in relation to           documentation and underlying records
community projects and environmental           where appropriate. Data sources            n The report has been prepared
policy. Irish Life & Permanent plc             reviewed included source data and            according to the GRI Reporting
management are responsible for the             the contents of reports produced by          Framework (including the Reporting
content of the report. GMJ Associates          various departments in Irish Life &          Principles) and the content meets the
were not involved in the scoping or            Permanent or contractors to Irish Life &     requirements of GRI G3 Application
compilation of the 2007 Corporate              Permanent which were used as inputs          Level B+
Responsibility report, the collection of       to the Corporate Responsibility Report
source data or in devising the internal
                                             n Interviews with a sample of individuals    GMJ Associates                              31
management and reporting systems that
                                               responsible for the collection and         Dublin
yielded the data.
                                               collation of data

                                                                                                                                        Irish L ife & Perm a n en t CR Repo r t 20 07
                                                                                          10 April 2008
Objectives                                   n Challenging of statements and claims
                                               made in the report
To provide assurance that:
                                             n Contents checked for compliance
n Statements made in the report are fair,
                                               with the requirements of GRI G3
  objective and can be verified
                                               Application Level B+
n Processes used to identify, collate
                                             n Review of final content of the report
  and report data and supplementary
  information are reliable
n Data reported is accurate and
                                             On the basis of the review performed, our
  consistent with source information
                                             opinion is that:
n The report meets the requirements of
                                             n Quantitative data is accurately
  Global Reporting Initiative (GRI) G3
                                               reported or where estimations have
  Application Level B+
                                               by necessity been made a reasonable
                                               margin of error has been allowed
I rish L ife & Perma n en t CR Rep or t 2007

                                                    At a glance

                                                                  Our CR Programme – At a glance

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