What matters most
Our annual materiality process is a key stakeholder engagement activity that assesses feedback gathered throughout the year. We use this process as well as information gathered from sustainability related activities and initiatives to identify what matters most to both our stakeholders and our business - our material matters.
Other materials assessed include:- trend reports and competitor analysis;
- ESG-related media coverage;
- guidance from the GRI standards;
- the UN Sustainable Development Goals;
- feedback from ESG-themed surveys;
- one-to-one interviews, focus groups and workshops; and
- an ESG panel discussion with participants from COTA NSW, the Australian Institute for Company Directors, Pollination and Australian Ethical.
Operating ethically, with strong governance practices and high levels of trust are critical to our ability to operate and deliver for our customers, shareholders, employees and the broader community. We recognise the importance of maintaining a strong culture and high levels of conduct; providing open and transparent disclosures; and responsibly managing risks.
Better customer outcomes
Challenger is committed to providing customer outcomes that lead to improved satisfaction and support our customers to achieve financial security for a better retirement. We do this by investing in research to understand our customers; designing products that meet their needs; and continuing to provide a trusted brand.
Economic, market and regulatory conditions
As an investment management company, Challenger is impacted by market volatility and uncertainty, and the low interest rate trend. The need for diversification and ensuring access to appropriate assets remains an important focus for our business and our stakeholders.
Investing responsibly
There has been growing pressure for companies to consider ESG issues when setting investment strategies. These considerations will help make Challenger more resilient. Changing stakeholder expectations highlight the importance of responsible lending and investment practices that support good ESG outcomes.
Climate risk
The physical and transition risks related to climate change will have financial impacts on Challenger if not considered. The physical risks will have an impact on Challenger’s real assets, considering their ability to withstand extreme weather events. Transition risks will be felt more widely through investment portfolios, with market, legal and reputation risks occurring across many industries.
Dynamic market conditions require innovation to ensure Challenger is keeping up with the pace of change. Ensuring we have appropriate digital tools and technology in place is key to this. In addition, partnerships and collaboration with stakeholders will allow us to develop products and services that continue to meet the changing needs of our customers.
Privacy and security
The global pandemic accelerated the growing trend to move business operations online. The speed of change has increased the risk of exposure to cyber threats and fraud. As we increase digital interaction with our customers, there is a greater focus on ensuring the privacy and security of both customer and business data.
Great place to work
At Challenger, we seek to provide an engaged and enabled workforce that embraces diverse thinking and has positive labour practices. We also recognise that maintaining a great culture and capabilities is critical to our success, and support us to deliver our business strategy. Providing the tools and technology to enable employees are essential elements of an engaged workplace.
Community connection and resilience
As a retirement income provider, Challenger plays a key role in contributing to fiscally responsible solutions to funding the ageing population. Using our internal expertise, Challenger supports the industry in understanding how to effectively plan for retirement to improve financial security. Investing strategically in the community to address a social issue further enhances Challenger’s contribution to this. Through our giving and volunteering programs, and plans for future community activities, Challenger aims to connect with and support the communities in which we operate.