2014
Corporate Social
Responsibility
ReportIntroduction from David Stevens,
CSR Board Representative

At Admiral Group, one of the UK’s largest providers of car insurance, we
continue to pursue our commitment to Corporate Social Responsibility.
Admiral serves a real social purpose – our business is to protect people,
as much as we can, from the adverse consequences of car accidents,
or from damage to their home. In addition to providing protection
for our customers, we aim to contribute positively to the wider
communities in which we operate.
We centre our business on four of our significant stakeholders (ourcustomers, our people, our community, and our environment). Thesefour stakeholders also drive the core focus of our Corporate Social
Responsibility strategy.
Admiral exists to help limit the risks faced by more than 4 million
customers across 5 countries, often at key moments in their lives– when they learn to drive, when they pass their driving test, when
they buy a house....and so on. The ever increasing developmentof technology is one that we are harnessing to look for new ways
to improve the service we offer to our customers. During 2014 welaunched customer support twitter accounts to help queries throughthis channel. We continue to communicate with our customers insmarter ways through the use of email and seek feedback through theuse of SMS text. On average our customers rate our staff very highlywith all departments scoring over 9/10.
I am very proud of our staff, who go out of their way to provide an
excellent service by exceeding our customers’ expectations everyday. People who like what they do, do it better, so we strive to ensure
our staff not only enjoy coming to work, but have a challenging, funenvironment where we recognise their talents and allow them to thrive.
This year, we were proud to be named 2nd Best place to work in the
Sunday Times Best Companies To Work For list.

2014 Corporate Social Responsibility (CSR) Report

I am very proud of our staff,
who go out of their way toprovide an excellent service
by exceeding our customers’
expectations every day.

We are committed to supporting our local community through bothcharitable giving and community partnerships. In 2014 we donated£148,000 to local and national charities and £202,000 to sponsor
events and organisations. Our people are passionate about helping
out a good cause and we encourage suggestions on which localorganisations and charities we should support. Through the adventof technology we are now able to share some of the good things we
do on our Admiral Community Youtube page (www.youtube.com/
theadmiralcommunity).
Finally, as we continue to grow and develop as a business, we remain
focused on managing and minimising our environmental impact. 2014
marked a major milestone for us, as we moved into brand new buildingsin Cardiff and Newport. The Cardiff building has been built to a BREEAM(BRE Environmental Assessment Method) standard of ‘excellent’(the leading environment assessment method for buildings) and the
Newport building to a ‘very good’ standard. Both reflect best practice insustainable design.
This report summarises the Admiral Group’s ongoing Corporate
Social Responsibility strategy and how we have engaged with our four
major stakeholders throughout 2014: our customers, our people, ourcommunity and our environment.
Enjoy the read!

David Stevens
Chief Operating Officer
4 March 2015

2014 Corporate Social Responsibility (CSR) Report

Admiral Group’s Corporate Social Responsibility (CSR) strategy is vitalto the sustainable growth of our business, with employee engagement
and customer satisfaction both assuming core roles in our businessmodel and strategy (p.12-13, Admiral Group Annual Report 2014).

ContentsPage

1 Our Customers .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12 Our People .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 43 Our Community  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
4 Our Environment .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16

4 Contents

2014 Corporate Social Responsibility (CSR) Report

1Awards 2014/15

WINNER

Best Car Insurance

In 2014, we won Best Motor
Insurance Provider at the
Personal Finance Awards,
which is based on
consumer opinion

Our Customers

We value our customers above everything else and believe that good
service and customer satisfaction is crucial for success. Very simply,
if Admiral didn’t have any customers, it wouldn’t have a business.
With that in mind, it stands to reason that everything we do every
day revolves around attracting, keeping and satisfying our customers
and ensuring they get good value for money. Our employee incentive
schemes have been designed with this ethos in mind, which ensuresthat appropriate emphasis is placed on the quality of service provided
to our customers.
The nature of our business means we may not be able to satisfy
every single one of our customers and complaints happen. We havea number of customer-focused metrics to gauge performance. Ourcontact centres measure complaint volumes and analyse comment
forms and/or SMS feedback. We also monitor calls, complaints andbreaches. These metrics are continually monitored to ensure we areoffering an excellent level of service and to challenge departments tomake continual improvements.

Conduct Risk
We have continued the evolution of our conduct risk approach in2014, ensuring that our customers’ experiences of our processes andservices match their expectations when they purchase our products.
Details of the risks posed to customers, together with relevant
mitigating controls, are maintained by each department and arereviewed monthly.
Each business area owns the initial management of conduct risk as
they are closest to the processes and procedures we have established.
Conduct Risk Management Information (CRMI) is discussed in acommittee made up of senior management from each business area.

1 Our Customers

2014 Corporate Social Responsibility (CSR) Report

The committee reports its findings to the UK Risk Management
Committee, which will summarise its activities, including conduct risk
discussions, at the Group Risk Committee. The Chair of the Group
Risk committee provides a quarterly update to the Group Board. If arisk threshold is breached, the relevant business area manager will
investigate the issue and provide information on the reason, along witha plan to improve the result.
The information captured as part of the CRMI, combined with detailed
knowledge of the risks faced by customers and their relevant controls,
helps to formulate both the Compliance Monitoring Programme andactivities undertaken by the Risk and Audit areas.
The continued evolution of the conduct risk framework goes further
to ensure Admiral customers are treated fairly throughout theirinsurance journey.
The table below contains some of the measures of customer service
from the CRMI report:
Conduct Risk Measure

2013

2014

Target% customers who would renew
following a claim

91%

95%

>85%

Customer Services, New Business andRenewals call answer rates

92%

95%

>90%

Claims call answer rates

95%

98%

>90%

Complaints per 1,000 vehicles

1.2

1.0

<1.4

We encourage our customers to provide feedback on our products andservices. The main feedback method is our Customer Comment Form,
which is a key measure of the CRMI Report. Our Customer Comment
Form enables our customers to rate the service of our contact centre
staff on a scale of one to ten in five key areas including helpfulness,
efficiency, communication, knowledge, and politeness.

2 Our Customers

2014 Corporate Social Responsibility (CSR) Report

The feedback gained from our Customer Comment Form analysis and
SMS feedback allows us to pinpoint areas in need of improvement, andto identify employees who could benefit from further training. This
enables us to continue to provide excellent customer service as ourbusiness continues to grow.

Enhancing customer experience
During 2014 our Customer Contact Strategy (CCS) team’s focus
has been on a combination of proactive change and changes
driven by customer feedback, with a view to improving theoverall customer experience and, as far as possible, reducing
customer complaints.
One of the main initiatives our CCS team introduced during 2014
was the launch of a brand new design for the Admiral ‘contact us’
page. The design provides a simple experience for our customers
whilst ensuring they are using the correct contact numbers andchannels. Our CCS team also launched twitter accounts for all
brands and have been engaging with customers on this channel.

3 Our Customers

2014 Corporate Social Responsibility (CSR) Report2

Our People

People who like what theydo, do it better.
Simple yet strong, this philosophy runs throughout the whole of
Admiral and, according to the Great Place to Work Institute, this hashelped us to become one of the best employers in both the UK andEurope. In order to understand why we are rated as such a good
employer, it is useful to understand the four pillars upholding theworking culture at Admiral – communication, equality, reward &recognition and fun.
Communication at Admiral is open, transparent and two-way.
Our senior managers and Directors sit amongst their teams rather
than in their own offices, encouraging dialogue between staff of alllevels of seniority and across all areas of our business. Furthermore, ourChief Executive Officer (CEO) operates an ‘open door’ policy and, if any
member of our staff wants to ask him a question, they can email him
directly through our ‘Ask Henry’ intranet initiative. Our senior managers
and Directors also participate in regular online chats with staff. This
year we have held two online chats with our CEO, Henry Engelhardt, in
addition to several online chats with other senior managers.
Our employees benefit from a wide range of communication tools to
assist in understanding business goals and objectives, including theannual Staff General Meeting (SGM), internal newsletters, videos, teambriefings, suggestion schemes and staff forums. In the 2014 annual
Staff Survey, 80% of staff were happy with the amount of information
they receive about the company.

4 Our People

2014 Corporate Social Responsibility (CSR) Report

Engaging with our staff

The opening of these2014 has seen the opening of our new headquarters, Tŷ Admiral in
Cardiff, and a new office in Newport, Admiral House. The opening ofthese buildings were key events in the history of our company andprovided a huge opportunity for engaging with our employees in theprocess. Staff were consulted from early on in the planning of thebuildings through steering groups.

buildings are key events in
the history of our company

They gave their input from selecting paint colours for departments
and chillout areas, to names for meeting rooms. A canteen steeringgroup for each new site created the design specification for thecaterers’ contracts based on staff survey feedback. The groupthen met with the interested caterers and judged them against the
specified criteria to shortlist them to the final selection.
As the buildings came nearer to completion we put together
fortnightly updates via email and on our staff intranet to keep staff
fully informed through three key areas of information - Essential
Information, Did you Know? and Latest Updates. These were wellreceived by our staff. We also held online chats with the Head ofFacilities, Huw Llewellyn, and face to face meetings with Huw and/or
other members of the facilities department with staff from different
departments. This way we were able to reach and engage with as
many staff as possible. When staff moved into the new buildings they
were met by members of the facilities team to give them a personal
orientation and they all received specially designed desktop calendars
containing important information about the new buildings.

Training and development
Our central training department, Admiral Academy, is an approved
Institute of Leadership and Management (ILM) Centre, which provides
nationally recognised management qualifications to employees. The
programme Admiral Academy has developed with the ILM will mean thatfrom the outset of their career with Admiral, staff can pursue a professional
qualification that complements their professional development. It also
provides a strong incentive to progress within Admiral.
5 Our People

2014 Corporate Social Responsibility (CSR) Report

Since becoming ILM accredited, over 800 employees have gained ILM
qualifications through Admiral Academy to date.
Admiral Academy offers a prospectus which contains over 100 pagesof courses, workshops and training programmes. Such is the successof the courses on offer, in 2014 Admiral delivered over 7,500 training
sessions for our people. This includes training provided for specific UK
departments and any training that has been provided by our UK trainers
in any of our overseas offices, in addition to courses provided in the UK
by Admiral Academy.
In conjunction with an external supplier, Admiral Academy offers a new
training course in which over 400 of our staff can brush up on theirliteracy, language, numeracy and ICT skills. Employee Engagement is the
Academy’s most recent management programme based on the fourpillar principles of communication, equality, reward & recognition and fun.
The two day programme ensures teams and individuals are engaged.
Admiral Academy also encourages self learning through its Buy aBook scheme, whereby Admiral Academy will fund the purchase ofany book, DVD or download if it will help an individual with their careerdevelopment. These books are then theirs for the staff member
to keep but often many departments keep libraries of books foreveryone in the company to share. In 2014 £48,015 was spent on the
2,351 books purchased via the scheme. This brings the total to over
£260,000 since the scheme was introduced in 2002.
We also encourage staff to consider using our sponsorship scheme
to gain professional qualifications and attend courses externally. We
support employees as they complete qualifications with the Chartered
Institute of Insurance and other professional bodies.
In order to measure how our people feel about training anddevelopment, we ask them to complete evaluation forms after training
courses. In 2014 our overall feedback score was 9.4/10.

6 Our People

2014 Corporate Social Responsibility (CSR) Report

Equality
To further promote diversity,
this year Admiral Academy
has trained over 358 staff inworkplace diversity.

We have a really simple approach to equality. Our people are our greatest
asset and we respect and value the individuality and diversity of all of ourpeople. Our Equality, Diversity and Dignity at Work policy ensures thatevery employee is treated equally and fairly and that all employees areaware of their obligations. The Group is fully committed to the healthand safety and the human rights of its employees, regardless of theirbackground. In addition, we maintain an employee code of conduct
regarding appropriate ethical standards in the workplace.
Our Equality, Diversity and Dignity at Work policy includes guidance on how
to promote diversity, alongside advice for our people on how to identify andreport any instances of unfair discrimination. To further promote diversity,
this year Admiral Academy has trained over 358 staff in workplace diversity.

Gender diversity
The table below provides a breakdown of the gender of Company
Directors and employees at the end of the financial year:
Male

FemaleCompany Directors*1

7

4

Other senior managers*2

22

12All employees

3,598

3,601

Notes
[*1]
Company Directors consists of the Board of Directors, as detailed
on p.42-43 of the Admiral Group Annual Report 2014, excluding PennyJames who was appointed to the Board on 1 January 2015.
‘Other senior managers’ is as defined in the Companies Act
2006 (Strategic Report and Directors’ Report) and includes: persons
responsible for planning, directing or controlling the activities of theCompany, or a strategically significant part of the Company, other thanCompany Directors. Any other Directors of undertakings includedin the consolidated accounts that are not considered strategicallysignificant have not been included.
[*2]

7 Our People

2014 Corporate Social Responsibility (CSR) Report

The Group’s principles of respect for human rights, diversity, healthand safety and workplace ethical standards apply not only to staff
directly employed by Admiral, but also to staff employed by the Group’s
outsourced partner in Bangalore, India. To meet this commitment,
Admiral Group maintains regular contact with its outsourcer’s
management team and the Group’s senior managers pay visits to theoutsourcer, whilst the Group also provides training and development
to ensure that the team uphold these principles. In addition, AdmiralGroup has appointed a manager based permanently at the outsourced
operation, who is responsible for ensuring that the Group’s principles
are adhered to by the outsourced partner and that the wellbeing ofoutsourced staff is monitored.

Happy and healthy

By signing the pledge wewanted to improve knowledge
and understanding about

In April this year we signed a pledge with ‘Time to Change Wales’
which is the first national campaign to end the stigma anddiscrimination faced by people with mental health problems. We
have seen an increase in the number of mental health related cases
we deal with, as have many businesses across the UK. Our staff arevery important to us and we wanted to demonstrate our supportin promoting the awareness of mental health issues and providing
greater sign posting of support for staff.

mental illness

In conjunction with ‘Time to Change Wales’ we developed an action
plan and committed to various activities to promote mental healthawareness. Such actions have included stress awareness training
with all of our managers, the opportunity to partake in a 6 week
health challenge promoting activity and nutrition and greater workwith third party agencies like Remploy in order to support our staff.
The campaign is needed because, although mental health problems
are very common, it can still be a taboo subject. People who
experience mental illness often face stigma and discrimination in theworkplace, socially and within families. By signing the pledge we wanted
to improve knowledge and understanding about mental illness and,most importantly of all, get people talking about mental health.
8 Our People

2014 Corporate Social Responsibility (CSR) Report

Fundamental to equality, and also important for Reward andRecognition, is our performance-related pay structure and shareownership scheme. We like to reward and recognise our people forboth their own personal achievement and the overall performance of
the Group. All employees are rewarded for the overall success of theGroup through our approved Free Share Incentive Plan (SIP), a key
feature of employee remuneration.
According to our annual
Staff Survey, 80% of ourpeople are more likely tostay with us because of ourstaff share schemes.

As of 31 December 2014 an employee who joined us on 1 January 2005
would have received a total of 2,937 shares, of which 2,241 would now
have matured and 1,820 which could be sold free of income tax andnational insurance. If none of the matured shares had been sold, theseshares would be worth £29,648 (based on the share price of £13.23 on
31 December 2014).
In addition to our SIP, we also operate an unapproved Discretionary
Free Share Scheme (DFSS) to reward managers and ‘star performers’– employees who have excelled in their role, regardless of businesslocation or level of seniority. Further details of our salary structure andour share schemes are available in the Directors’ Remuneration Reporton p.58-72 of our Annual Report 2014.
Our Board firmly believes that share ownership motivates employees,
decreases attrition and makes it easier to recruit successfully.
According to our annual Staff Survey, 80% of our people are more likely
to stay with us because of our staff share schemes.

Recruitment
In further support of our reputation as a good employer within the local
community we received over 10,800 applications for contact centre
positions during 2014 (2013: 9,300). The increase in applications is
testament to the fact that Admiral is a great place to work and shows
the desire from the local community to work with us.

9 Our People

2014 Corporate Social Responsibility (CSR) Report

Celebrating excellent performance
We host a series of annual award ceremonies to reward and recognise ourpeople, both for their own individual achievements and for the collective
performance of their team, department or site.

The Managers’ Awards
Back in 1992, before the first Admiral policy had even been sold, Henry
Engelhardt (CEO) gave each senior manager an award to present in theirname, to a deserving member of staff. Eighteen awards are now available,
such as the David Stevens’ ‘Large Volume of High Quality Work’ Award
and Geraint Jones’ ‘Bend over Backwards’ Award. The names of the award
winners are permanently inscribed in Admiral’s history on plaques displayedin the reception area of our headquarters in Cardiff, South Wales.

10 Our People

2014 Corporate Social Responsibility (CSR) Report

Fun plays a vital role in helping us to ensure that our people enjoy theirwork, encouraging and motivating each and every individual to produce
excellent results.

Work hard, play hard
The Ministry of Fun (MOF) operates throughout Admiral, organising
exciting events for all of our people to take part in.
A different department takes responsibility for organising games andcompetitions each month to ensure that the programme remains
fresh and to give everyone the opportunity to take ownership. Someof the MOF organised events during 2014 have included egg roulette,treasure hunts and decorate your pumpkin.

So how do we know that this approach works?
Our staff tell us. One of the most important tools that we use tomeasure employee satisfaction is our anonymous annual Staff Survey,
which collects views on what it is like to work for us. The survey results
are analysed by department and each department manager sharesthe findings with their team, exploring any issues and concerns before
making improvements.

11 Our People

2014 Corporate Social Responsibility (CSR) Report

The most significant results are provided in the table below. There areno specific targets with respect to the survey results, as our executive
team use the data to identify trends in employee perception, rather
than absolute values.

Staff Survey results
Survey question

2008

2009

2010

2011

2012

2013 2014*1

Morale is good within
Admiral

90%

93%

89%

90%

93%

89%

75%

Morale is good within mydepartment

90%

86%

84%

85%

87%

75%

67%

I am happy at Admiral

90%

91%

88%

89%

91%

88%

78%

Every effort is madeto understand thethoughts and opinions of
employees

86%

87%

88%

88%

91%

85%

78%

I am proud to be
associated with Admiral

94%

96%

95%

95%

96%

94%

82%

I would recommend
Admiral as a good place
to work

94%

95%

94%

95%

96%

93%

83%

I am more likely to stay at
Admiral because of theshare schemes

71%

79%

78%

79%

79%

81%

80%

Admiral is truly
customer-orientated

90%

90%

86%

87%

90%

90%

85%

Admiral treats its
customers fairly

87%

88%

86%

86%

88%

87%

N/A

In 2014 we changed the way we collect our staff survey results.
We now use the Great Place to Work (GPTW) Best Workplaces survey
as our annual Staff Survey and every single person in Admiral Group(including our overseas operations) will be filling it out. As a result not
every question is a direct match to previous years. From 2015 we will
present this new question set.

*1

12 Our People

2014 Corporate Social Responsibility (CSR) Report

As a Group we participate in a number of independently managed
surveys, including The Sunday Times 100 Best Companies to Work For
and the Great Place to Work Institute’s Best Workplaces in the UK andBest Workplaces in Europe.
This year we have continued to win awards for employee satisfaction,
adding to those achieved previously. Notably, Admiral was named 2nd
Best Company to Work For in the Sunday Times 100 Best Companies
to Work For list, as well as being named 3rd Best Large Workplace in the
UK and 3rd Best Multinational Workplace in Europe by the Great Place
to Work Institute. The table below shows how we have performed inthese surveys historically:

External survey results

13 Our People

2001

32nd

32nd

2002

42nd

42nd

2003

46th

7th

2004

60th

16th

2005

20th

17th

2006

20th

8th

2007

21st

Top 10

2008

57th

10th

2009

37th

6th

16th

2010

16th

10th

26th

2011

9th

9th

21st

2012

6th

1st

4th

2013

11th

2nd

2nd

2014

2nd

3rd

3rd

2014 Corporate Social Responsibility (CSR) Report3

Our Community

We play a positive role in the community through charitable giving andsponsorship of local community partnerships. As an employer, we promote
payroll giving and provide matched funding for eligible staff initiatives. In
2014, the Group donated £148,000 to various local and national charitiesand £202,000 to support local events and organisations. The amount wedonate fluctuates annually due to changes in sponsorship initiatives andemployee demand for matched funding.
Our strategy on charitable giving and community sponsorship aims to:• Contribute to the local communities surrounding our offices;• Support events that are likely to appeal to our people;• Reflect our culture of vibrancy and fun; and• Raise our profile as a good employer within the local community.
Our strategy provides further opportunities for employee engagement
by providing opportunities for our people to participate in charity
fundraising or community projects. This also enables us to secure
additional employee benefits, such as free event tickets and local
discounts thereby supporting local businesses and events. It also helps
us to attract new staff and to minimise recruitment costs, reinforcing
our strategy of focusing on profit and controlling costs in order tomaintain our market-leading expense ratio.

Admiral Community Chest
Admiral Community Chest is a fund set up to provide funding forcharities and local organisations which our people and their families
are involved with. The Chest has been running for over ten years andin that time we have been able to contribute to over 700 charities andorganisations. In 2014 we donated £114,000 to over 200 charities
and organisations through the Chest (2013: £112,000). This year wehelped keep an Age Connect shop running for another year, paid fortransport for Clydach Disabled & Friends Social Club to use on a day
trip and bought a new kit for a men’s Roller Derby Team.

14 Our Community

2014 Corporate Social Responsibility (CSR) Report

Supporting the national sport of Wales
We continue to be sponsors of the Welsh Rugby Union (WRU) andthe Admiral logo will remain on the national team jersey until the
Rugby World Cup in 2015. The agreement enables us to secure staff
benefits such as free rugby tickets, kit discounts and opportunities toattend team training sessions and meet players.
Our WRU sponsorship gives
our people the opportunity
to train with the Welsh
national rugby team.

15 Our Community

2014 Corporate Social Responsibility (CSR) Report

4

Our Environment

Our Environmental Policy is aligned with our vision for sustainablegrowth and our focus on profitability, as outlined by our Groupbusiness model and strategy on p12-13 of our Annual Report 2014.
By monitoring and reporting on our annual carbon emissions, we canidentify areas of the business where energy usage could be reduced,
leading to the potential for cost-savings. Furthermore, by improving
our buildings to drive energy efficiency, we are able to create a betterworking environment for our people.
We are committed to:• Raising and maintaining employee awareness of, and ensuring that
all of our people are actively engaged in, activities to reduce ourenvironmental impact;• Measuring and monitoring key aspects of our environmental
performance and regularly reviewing progress to reduce the amountof resources consumed per employee; and• Complying with the requirement to report annual levels ofgreenhouse gas emissions in line with guidance provided by the
Department for Environment, Food and Rural Affairs (DEFRA) in
partnership with the Department for Energy and Climate Change(DECC). We have never been subject to prosecution or fines as aresult of non-compliance with environmental reporting regulations.
We have a cross-functional team in place to monitor and report on
our annual greenhouse gas (GHG) emissions, including employees
from our Finance and Facilities departments. One of the major
responsibilities of our Facilities team is to continuously reduce ourenvironmental impact. The reporting process is centralised at our UK
head office and our international businesses send their data to theteam each month. This way, our people can be engaged in recording
and monitoring their environmental impact and we hope that this willencourage each of our sites to make continual improvements. The
data is reviewed annually and reported to David Stevens, our Corporate
Social Responsibility Board representative.

16 Our Environment

2014 Corporate Social Responsibility (CSR) Report

We uphold a structured consultation process to gauge stakeholder
views on our environmental performance. In 2014, the Staff Survey
revealed that 84% of our people think we are working to reduce ourenvironmental impact. Each department manager feeds back theresults to their employees, encouraging a forum for positive discussion
to gain employee ideas on what more we can be doing to limit ourenvironmental impact.

Performance Data
GHG
Emissions(CO2eTonnes*1)

% Of
Group
Total

GHG
Emissions(CO2eTonnes*1)

% Of
Group
Total

2014

2014

2013

2013

Owned transport

14

0.02%

36

0.57%

Total Scope 1

14

0.02%

36

0.57%

Purchased electricity(including green energy)

5,908

86.42%

5,294

82.94%

Total Scope 2

5,908

86.42%

5,294

82.94%

T & D*2 Electricity

522

7.64%

475

7.44%

Business travel

310

4.53%

523

8.19%

Waste Disposal

82

1.20%

55

0.86%

Total Significant Scope 3

914

13.37%

1,053

16.50%

Total CO2e Emissions

6,836

Scope 1

Scope 2Significant Scope 3

17 Our Environment

6,383

*1

‘Tonnes’ refers to metric tonnes*2‘T&D’ refers to the transport and distribution of electricity.

2014 Corporate Social Responsibility (CSR) Report

Intensity Ratio
We have used average employees as the measure for our intensity ratio
as this is the most relevant indication of our growth and provides forthe best comparative measure over time.
Scope 1 CO2e per employee*1

1.19 tonnes (2013: 1.11)- Average employee number excludes employees from offices forwhich data could not be collected.

*1

Methodology

Reporting period
1 January 2014 – 31 December 2014
Measuring and reporting approach
We have followed UK government guidance on how to measure andreport greenhouse gas emissions. In particular, the data has been
prepared with reference to the WRI/WBCSD Greenhouse Gas Protocol:
A Corporate Accounting and Reporting Standard (Revised Edition) and inaccordance with the guidance for corporate reporting issued by DEFRA.
Greenhouse gases
All GHG emissions figures are in tonnes of carbon dioxide equivalents(CO2e) and include all six GHGs covered by the Kyoto Protocol.
Organisational boundary
We have chosen to use the operational control approach because
we maintain the ability to direct the operating policies of each of ourorganisations, with a view to achieving economic benefits.
Specifically excluded from the organisational boundary is our outsourced
contact centre in Bangalore, India, which we do not have control over.

18 Our Environment

2014 Corporate Social Responsibility (CSR) Report

Operational scopes
All Scope 1 (direct GHG emissions), Scope 2 (indirect GHG emissions)and significant Scope 3 emissions have been reported for operations
within the organisational boundary, with the exception of exclusions
listed below.
Where appropriate, emissions from multi-occupancy offices are
determined on the basis of the recharge statement provided to theGroup by the relevant managing agents.
Exclusions to operational scopes
We have excluded our call centre in Gurgaon, New Delhi, from our Scope
1, 2 and 3 emissions because this operation was not able to provide us
with the data requested. Our operations in France (L’olivier Assurancesand LeLynx) and in the US (Elephant Auto and compare.com) are also
excluded from all of our emissions scopes. These offices together total
less than 8% of our Group headcount and are, therefore, considered
immaterial. We are working to set up processes in these offices for thecollection of data with the aim to include in future disclosures.
Excluded from our Scope 1 emissions are air conditioning emissions
produced by all of our operations. We were unable to obtain data fromany sites for this reporting period because our building managing agentsare responsible for air conditioning at the majority of sites and they wereunable to provide us with emissions data. Gas has also been excludedin this reporting period. Only three of our sites have gas usage and the
managing agent does not provide us a breakdown of the gas elementof the service charge we pay and therefore this data was not available tocollect for inclusion in our reported emissions figures. We continue towork with the managing agents to target obtaining this data in the future.
Operational scopes – calculation approach, conversion tools
and emission factors
The carbon emissions linked to the activities listed above have been
determined on the basis of measured or estimated energy and fueluse, multiplied by relevant carbon conversion factors.

19 Our Environment

2014 Corporate Social Responsibility (CSR) Report

The large majority of our fuel and energy consumption is based on
actual mileage data, purchase invoices and information supplied by
the managing agents of our leased buildings. However it has beennecessary to make estimations in some circumstances, where thisform of evidence has not been available. In particular we have madeestimations when monthly invoices have not been available for thefull reporting period. Where this was the case, an average of available
invoices was applied to the months for which invoices were unavailable.
This process of estimation represents less than 10% of data.
We have calculated emissions using the 2014 carbon conversion factors
downloaded from the DEFRA website, which are valid until 31 May 2015.

Geographical breakdown
Tonnes of CO2e
2014

Scope 1

Scope 2

Scope 3

Total

Total global

14

5,908

914

6,836

UK

14

4,971

810

5,795

Italy

-

230

23

253

Spain

-

93

11

104

India

-

90

26

116

Canada

-

524

44

568

Carbon offsetting
We are not a carbon-intensive business and as such, we do not see any
significant need to offset our Scope 1 and Scope 2 carbon emissions atpresent. However, this will continue to be monitored in line with futurebusiness growth.

20 Our Environment

2014 Corporate Social Responsibility (CSR) Report

Green tariffs
During 2013 we announced plans to switch to 100% green tariffs inseveral offices. In 2014, we moved over to green tariffs for all of our UK
offices; a total of 10 buildings. In the offices we manage ourselves wehave set up our own green tariffs, whereas in our leased offices we have
now achieved the same status with our landlords.
Our international offices either select their own tariffs or use those
selected by the managing agents of the buildings they reside within.
However, international procurement is not yet centralised at our UK
head office hence there is no record of the number of internationalsites using green tariffs.

Annual achievements• In order to raise employee awareness of our environmental impact,
our staff intranet now features a category called ‘Help Us Go Green’,
which includes our Environmental Policy and our annual Greenhouse
Gas (GHG) Report. We have seen a positive impact with our staff andwe continue to drive this forward through various initiatives such as
updates in our employee magazine and through staff forum meetings.

• We introduced a strategy for recycling which has been rolled out
to the majority of our offices with the following results – Newport
58% of waste recycled, Cardiff 56% and Swansea 37%. Dry mixed
recycling was introduced in Swansea in November 2014 and we haverolled out new, clearly labelled bins in Swansea and we expect to see
an improvement here.

• All of our multi function devices (photocopiers and printers) continue
to be stocked with recycled paper. We now have all of our offices
linked into a secure print function which has seen a reduction in
printing of 19%.

21 Our Environment

2014 Corporate Social Responsibility (CSR) Report• We have an online Customer Portal through which our UK customers
can choose to receive electronic copies of their insurance policy
documents, instead of having paper copies sent via post. By actively
encouraging our customers to use this facility, we have significantly
reduced paper usage. As of 31 December 2014, 68% of ourpolicyholders were registered on our Portal.

• Wherever possible, we use SMS to contact our customers in order toprovide a convenient service and to further reduce paper usage.

• We have re-used/recycled all of the furniture in Cardiff (450 desks)
and in Newport (200 desks) plus all of the chairs and pedestals. All of
the meeting room furniture, breakout furniture etc. has been reusedin our Swansea office.

• After re-using 120 of the desks from Cardiff in our new office, theremaining desks have been recycled. The wood went to a local
company that makes John Lewis sofas. The metal work was recycled
and scrap value helped cover some of the cost of the removal.

• We refurbished 1,251 chairs which helped save us £70,000. Chairsover ten years old and cannot be saved as they are no longer fit foruse, will be recycled or offered to anyone that wants them.

• We have given a lot of the usable furniture to charity (a local autism
charity) and we have reused anything suitable in our Swansea office.
We are going to advertise other items to staff on our internal intranet
and hold an open day for anyone wanting furniture, used fridges orstorage units.

22 Our Environment

2014 Corporate Social Responsibility (CSR) Report

Targets for 2015
Currently, we do not set carbon emission reduction targets. Although
we appreciate the potential for such targets to lead to valuable costsavings and environmental benefits, it would be difficult to set realistic
targets at present. This is because in the majority of our buildings weare largely dependent upon property managing agents to reduce theconsumption of electricity and gas and the use of air conditioning. As
these sources combined account for the majority of our emissions, itwould be very challenging to reduce consumption in these areas whilst
lacking the authority to directly impact upon them.
It would also to be challenging to set realistic targets for 2015 as we moved
both our UK head office and our office in Newport, South Wales, to newly
built offices in 2014. Although these moves are likely to result in carbon
emission reductions because both of our new buildings will be moreenergy efficient, at present we have no way of predicting how significant
these reductions may be. This is an area that we will revisit once we havecollected more data and we will aim to set targets in our 2015 Corporate
Social Responsibility Report. Another area in which we hope to begin
setting targets is that of recycling. We will be using dry mixed recycling(DMR) in both of our new buildings, which will allow us to recycle at least
80% of waste produced by these buildings.
We are currently engaging with our utility consultants on the Energy
Saving Operation Scheme (ESOS) this year, and will be reporting theresults of this in 2016.
We will qualify for the Carbon Reduction Commitment (CRC) within thenext 4 years and will provide an initial view on this in 2016.
As part of the reformation of the electricity market we currently allow
for Contracts for Difference (CFD) in our billing where we are the sole
occupier of a property.

23 Our Environment

2014 Corporate Social Responsibility (CSR) Report

A green future
During 2014 we moved our head office from a multi-occupancy,
23-floor building erected in 1967, to a brand new, high density buildingin Cardiff city centre. Our Newport office also moved to a new site
within Newport city centre.
The buildings provide the combined capacity for 4,200 staff. The
Cardiff building has been built to a BREEAM*1 standard of ‘excellent’and the Newport building to a ‘very good’ standard. Both buildings
encompass thoughtful design features, such as high efficiency
glazing and recessed windows to reduce heat solar gain, as well as
an automated building management system to reduce electricity
consumption. Features such as electricity generating photo-voltaic
panels and high-efficiency, energy saving lighting with sensor
controls, significantly reduce the impact on the environment.
BREEAM (BRE Environmental Assessment Method) is the leading
and most widely used environmental assessment method forbuildings. It sets the standard for best practice in sustainable designand has become the de facto measure used to describe a building’s
environmental performance.

*1

Assurance statement
We have not received external assurance of our carbon emissions data
for the 2014 reporting year. However, as a Group we have completed
an internal peer review to assess the reasonableness, accuracy andcompleteness of the data presented. This included: recalculation of
formulae, checking conversion factors applied, agreement of data todetailed breakdowns and sample checks to source data. The process
did not highlight any uncorrected deficiencies in the reported data andwill help us to improve the efficiency and accuracy of our data collection
in future years, through tighter control procedures.

24 Our Environment

2014 Corporate Social Responsibility (CSR) Report

A FTSE4Good Index member

We are a constituent of the
FTSE4Good Index

25 Our Environment“FTSE Group confirms that Admiral has been independently assessed
according to the FTSE4Good criteria, and has satisfied the requirements
to become a constituent of the FTSE4Good Index Series. Created by
the global index company FTSE Group, FTSE4Good is an equity index
series that is designed to facilitate investment in companies that meetglobally recognised corporate responsibility standards. Companies in the
FTSE4Good Index Series have met stringent environmental, social andgovernance criteria, and are positioned to capitalise on the benefits of
responsible business practice.”2014 Corporate Social Responsibility (CSR) Report

5

Conclusion

This report summarises our ongoing corporate social responsibility
strategy and how this relates to the Group business model and strategic
objectives, in addition to outlining the progress we have made during
2014 in relation to our four key stakeholders: our customers, our people,
our community and our environment.

26 Conclusion