Diapositiva 1

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Abbey Corporate Social ResponsibilityEngaging
Communities, Engaged Employees
UPEACE 28 November 2007 Sharon Squire, Head of CSR
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Santander and Abbey

• Abbey is the sixth largest bank and one of the
  largest providers of mortgages and savings in the
  UK
• Part of Santander group since 2004, the seventh
  largest bank in the world by profit
• 69 million customers, 10,800 branches, 129,000
  employees and 2.3 million shareholders (1.3
  million in the UK)
• A presence in 40 countries
• Global CSR activity built around core theme of
  education contributing to future economic and
  social success

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Abbey CSR Programme
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CSR Objectives

• To contribute long-term value and profit by
  building a sustainable, responsible company
• To treat customers fairly whilst helping to make
  their money work for them
• To deliver a positive experience for our
  employees
• To make a positive contribution to the
  communities where we operate
• To encourage our suppliers to undertake social,
  ethical and environmental practices
• To minimise the environmental impacts of our
  operations and manage the environmental risks of
  our investments and lending

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CSR Governance Framework

• ABBEY BOARD

• Executive Committee
• CSR Representative

CSR COMMITTEE How we do Business
CSR Working Group
Management Framework

• Employees

Customers
Environment
Community
Suppliers
Individual policy statements for each area.
Referenced as part of How we do Business.
Stakeholder Groups
Government
Regulators
NGOs
Media
Investor
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Our CSR Journey

• Abbeys CSR Programme commenced
• First Corporate Citizenship report published
•  
• Programme not developed during re-launch and
  
  sale of the business
• Activity reduced to reporting functions only
• Lack of strategic direction, objectives or
  measures meant CSR
  was not embedded
• CSR Manager role established
• Programme reviewed internally and externally
  (PricewaterhouseCoopers)
• New director level CSR Committee established to
  govern programme
• Governance structure embedded
• CSR programme developed and 3 year plan approved
  by ExCo identified gap areas to address and good
  practice areas to build on
• Year one of 3 year plan activity to address gaps
  and expand good practice
• Internal and external communications programme
  begins

2000
2001
2003-04
2004
2005
2006
2007
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CSR Strategic Approach

• To address the historic lack of CSR focus, Abbey
  will need to invest resources and funding to the
  programme.
• The roadmap - phased in tandem with the 3 year
  plan - will enable Abbey to move its CSR
  activities from a risk management to an
  opportunity model and regain a mid-ranking
  positioning.

• Embedding basic CSR management principles into
  Abbey business as usual activity
• Address lack of understanding of CSR issues and
  achievements through targeted communications plan
• Identification of priority areas development of
  outline proposals
• Active engagement of stakeholders, particularly
  employees and customers
• Focus on addressing areas of under-activity
• Emphasis on existing success areas, maximise
  opportunities of current good practice
• Abbey CSR programme back to mid peer group level
  
• Pilot flagship initiatives with low-level of
  investment
• Contribution to Best Bank strategy through
  small number of industry-leading programmes
• Competitive advantages and benefits gained
• Increased PR through CSR award schemes

2006 Compliance level
2007 Addressing gaps
2008 Proactive development
2009 Best Bank benefits
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Identification of key themes

• Themes to be adopted to ensure relevance of CSR
  programme to core business
• To be used to provide strategic direction and
  focus activity on realistic measures

• Industry drivers
• Primary theme to be focused on customer issues
  financial exclusion and understanding
• - addresses key area of criticism of FSS
• - benefits Abbey improving customer financial
  literacy will directly impact on revenues
• - impacts on all areas of customer interface
  product
• development, marketing, service
• Santander drivers
• Group CSR programme focused on education and
  culture
• - higher education targeted through Santander
• Universities programme
• - involvement in arts patronage and sponsorship
• - UK market emphasis on secondary education
• Business drivers
• Core element of Abbey 3 Year Plan to drive
  mortgages
• Significant existing business with Registered
  Social Landlords

• Financial Health
• Financial inclusion
• capability

• Education
• Schools FE

• Housing
• Socially excluded

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Industry CSR Focus

• Key FS sector and industry impact areas are
  addressed through co-ordinated CSR programmes at
  leading banks, covering all stakeholder groups
• Common themes covered by all peers with
  comprehensive activities in support
• - emphasis on ethical dimension of core business
• - activities over and above legal requirements
• - significant resources targeted in selected
  areas
• - joined up activities across departments

• Employees

Customers
Environment
Communities
Suppliers

• Financial Inclusion
• Treating Customers Fairly
• Responsible lending
• Customer service
• Small businesses
• Social housing
• Accessibility
• Diversity
• Micro credit

• Diversity
• Reward
• Development
• Well-being
• Opinion survey
• Union
• Health Safety

• Charitable donations
• Social sponsorship
• Volunteering
• Fundraising
• Recognition

• Energy use
• Waste recycling
• Carbon emissions
• Business travel
• Project financing

• Supplier audits
• Ethical Codes
• Green purchasing
• Diversity

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Prioritisation of key issues for Abbey

• 3 Year CSR Plan to focus on tiered approach i.
  addressing gaps in CSR activities
• ii. building on success of existing good
  practice
• iii. creating flagship programmes

Gap Areas
Good Practice
Flagship

• Financial Inclusion/Capability
• Diversity
• Volunteering
• Charitable donations
• Carbon neutrality
• Energy reduction
• Ethical evaluations

• Social housing
• Well-being
• Fundraising

• Universities
• Financial Capability
• Housing

• Customers

• Employees

• Community

• Environment

• Suppliers

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Abbey CSR 3-year plan

• Strategy developed to address bottom-of-the
  pack positioning of Abbey CSR
• 3 year roadmap with increasing investment phased
  in line with the Abbey 3 year plan.
• 7 gap areas prioritised for 2007, along with 3
  areas of good practice to maintain positive PR.
• Core themes of financial health, education and
  housing agreed to drive programme.
• CSR Committee to oversee development of full
  proposals and implementation of plans.
• On successful completion of Abbeys 3 year
  turnaround plan, investment can then be made into
  
• developing flagship programmes for the CSR
  programme to enable Abbey to take a leadership
  position
• in the key theme areas
• Abbey Universities
• Financial capability
• Housing partnership

2006 Compliance level
2007 Addressing gaps
2008 Proactive development
2009 Best Bank benefits
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Abbey Community
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Community Relations Programme

• Corporate Donations
• c. 3m donations/year
• 3 priority areas
• Employee-led CPGs make local decisions

• Social Sponsorship
• c. 250k / year
• 6 charities / year
• Selected based on employees/customers

• Volunteering
• Schools-based events
• Abbey programmes for key office locations
• Matched time

• Fundraising
• Key national charities
• Branch head office events
• Matched giving

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Volunteering Programme
Employees can claim 5 days per year for community
activity, personal choice or Abbey scheme Abbey
Schools Programmes Abbey schools-based volunteer
programmes for staff based at key office sites in
Bradford, Sheffield, Milton Keynes, London,
Belfast - Number Partners/Reading Partners -
School Governors and Mentoring schemes - Young
Enterprise (Business and entrepreneur) Skills
Development Embedding volunteering as part of LD
through induction materials, community-based
learning aligned to PDPs and be-spoke events for
senior manager schemes Abbey People
Award Recognition event for community
involvement, grants of 1,000 to winners
charities Abbey Community Events ACE CSR
programme review identified volunteering as a gap
area for Abbey Single day of action introduced to
support community projects around the UK Timed to
coincide with national Volunteers Week in
June Created to increase employee volunteering
and take up of existing schemes
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ACEAbbey Community Events
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Starting Out

• Agreement from Executive Committee in late 2006,
  project management began January 2007
• Project sourcing
• Community Service Volunteers commissioned to
  source local projects for 7 main Abbey sites.
• Further opportunities secured through charities
  who received Abbey Charitable Trust donations.
• Targeted campaign for branch network developed
  with Cancer Research UK.
• Project types
• Project criteria based on the Abbey Community
  themes of finance, education and regeneration
• - Interview skills day with 16 and 17 year olds
• - Garden makeovers / Wildlife and wildflower
  conservation
• - Decorating community halls and meeting places
• - Creating outdoor classrooms
• - Painting murals for schools and kids clubs
• Project management
• Central co-ordination by Community Relations
  team, local co-ordination by individual
  departments.
• Abbey teams nominated a project leader to
  co-ordinate the local ACE event.
• Supported with an ACE briefing pack, downloadable
  from the intranet, and 1-1 on an ongoing basis.

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Recruitment

• Launch Tactics
• Launch communication issued direct from ExCo
  champion to Directors with call to action
• ACE story placed on the intranet, in Ideas
  magazine and on Branch Radio
• Posters circulated to all main head office sites
• Response
• Instantaneous response to the campaign from
  majority of regions
• Further promotion needed in Glasgow, Sheffield
  and Belfast
• Heavily oversubscribed in Milton Keynes and
  Camden -
• additional projects sourced in order to supply
  demand
• Majority of divisions represented Retail,
  Finance, CMP, Legal,
• Risk, IT, Marketing, AFI, Cater Allen, Customer
  Service.
• Communications
• Ongoing Series of intranet stories placed
  highlighting each sites involvement
• ACE news item secured on Santander Today
• Press releases issued to all local media
• Follow up Dedicated newsletter/poster showcasing
  every project circulated to all sites and
  directors

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Media Coverage
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"Everyone thoroughly enjoyed the day and found it
very fulfilling - it was well timed in the
terrible week of the floods to have a day away
doing something positive in some rare good
weather. Sheffield Charity Sheffield Botanical
Gardens

• The nature of our work means that we often work
  independently, this was a good opportunity to
  work together. Although we were all aching
  afterwards it was actually a de-stress and a bit
  of a reality-check, providing context to our
  everyday stresses. Bradford. Charity Marie
  Curie Hospice

"It was a really effective team building event
that was thoroughly enjoyed by every one and the
charity benefited significantly. The Campsite
Manager told one of the group that we had saved
him four weekend's worth of work! Milton Keynes.
Charity The Quarries Guide and Scout Camp.
"The team enjoyed it and felt it helped with team
building, it also gave a sense of achievement
they felt they'd given something back to the
community. Teesside. Charity Oxbridge Lane
Gardens.
"Very successful event, achieved a lot in one
day. Great for staff morale and team building.
Staff in Belfast will now be providing
volunteering support to the hospice on an ongoing
basis. Belfast Charity Marie Curie Hospice
"I think we learnt that no matter how busy we all
are some 'time-out' working together to achieve
something other than meetings, power-point and
emails was extremely rewarding in terms of
understanding how to interact as a team. Camden.
Charity Regents Park Day Care Centre
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Zoes Hospice / Mortgage Operations Teesside
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Results

• Original targeted participation rate of 1 of
  FTE exceeded, achieved 2.75
• 28 community projects supported around the UK
• 400 staff participated in an ACE event in their
  local area
• 60 branches organised a Big Breakfast
  fundraising event for Cancer Research UK
• 7 Head Office sites involved Belfast,
  Bradford, Camden, Glasgow, Milton Keynes,
  Sheffield, Teesside
• 490,000 circulation achieved through media
  coverage
• Tremendous sense of achievement and enjoyment
  experienced by c. 400 employees
• - 95 respondents to feedback questionnaire said
  they would participate in ACE again
• Positive response received from the 28 charity
  and community groups
• - all said they were extremely happy with the
  support they received and in many cases
• the work exceeded their expectations.
• Benefits
• Raised morale
• Built stronger teams and improved networking
• Provided skills development opportunities
• Increased awareness of volunteering

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Key Learnings and Next Steps

• First ACE event was an overwhelming success
• Critical to have senior leadership through ExCo
  champion
• Lead time of at least 4 months needed for
  effective planning and recruitment
• Goals now set for 2008 event
• - increase the number of staff / departments
  participating
• - increase the amount of coverage received
• - provide opportunities for ExCo and other
  Directors to participate
• - encourage staff to build ongoing
  relationships with community organisations
• - encourage take up of other Abbey volunteering
  initiatives