Sustainability

Introduction

At Santam we strive to maximise socio-economic welfare, enhance stakeholders’ sustainability and build a more resilient world by providing risk solutions in selected emerging markets, while delivering on our brand promise of Insurance good and proper.

An economy requires a functioning and stable financial system to work effectively. We create value by contributing to a robust, inclusive and responsible general insurance industry that offers stakeholders value and stability – in all the markets where we operate. This supports sustainable social, environmental and economic development.

Santam has served the general insurance market in South Africa for almost 100 years, which means that it has been adaptable and resilient, and has a deep understanding of systemic risk.

Santam was included in the 2016 FTSE4Good Emerging Index and we retained our inclusion in the FTSE/JSE Responsible Investment Index. Currently, we are on the FTSE/JSE Responsible Investment Top 30 Index Reserve List.

Strategic sustainability framework

Our sustainability approach is rooted in the concept of shared value to ensure that our initiatives create social and business value, are measurable and scalable. The Santam sustainability framework – which is aligned to the five strategic focus areas - feature four focus areas:

  • Reaching the insured and uninsured markets: We develop and implement our emerging market strategy through appropriate channels in the business to support growth and diversification. This includes developing products to reach the emerging market in line with the Financial Services Charter (FSC) targets and criteria.
  • Resilience through shared value partnerships: We work with local municipalities through the Partnerships for Risk and Resilience programme, focusing on disaster risk management and reduction.
  • Develop sustainable business efficiencies (internal and external): We manage the quality and impact of our own risk pool through addressing pressures on human, social and environmental capital by continuously increasing efficiency and delivering on our brand promise, Insurance good and proper.
  • Responsible investment and solvency: We influence responsible systemic risk responses through vehicles such as the Santam Resilient Investment (SRI) Fund, the South African SME fund, enterprise and supplier development and corporate social investment (CSI) initiatives.

Each focus area is activated by key initiatives, which, among others, include applying the Treating Customers Fairly (TCF) approach, contributing to safety and security in communities, supplier and scarce skills development. We measure and report on these initiatives to our stakeholders, and ultimately to the board’s social and ethics committee, whose mandate is to monitor our activities in terms of legislation, regulation and codes of best practices relating to ethics, empowerment and stakeholder engagement. The committee also assists the board in ensuring that the sustainability strategy and objectives are effectively integrated into the business.