Doing Business the Right Way
To help us act responsibly and inclusively in every way we can, we have internal systems and practices, controls and procedures to govern our conduct across all areas of our operations.
We will continue to incorporate Environmental, Social and Governance factors in our decision-making, how we operate our business, where we place our investments and the products and services we provide.
Our progress: Doing Business the Right Way
Responsible Investments
| Priorities | Aims for 2023 | Delivered in 2023 | Aims for 2024 | Longer-term aims |
| Equity and corporate bond portfolios | Make progress against our longer-term aims of delivering 50% emissions reduction in NFU Mutual equity and corporate bond portfolios by 2030 and 100% reduction by 2050 | Comparing 2023 to a 2019 base year, emissions from our equity and corporate bonds in our general insurance investment portfolio have reduced by 29% | Make progress against our longer-term aims | 50% reduction in total carbon emissions (tCO2e) in NFU Mutual’s equity and corporate bond portfolios by 2030 against a 2019 base year 100% reduction in total carbon emissions (tCO2e) in NFU Mutual’s equity and corporate bond portfolios by 2050 against a 2019 base year |
| Affiliations - UK Stewardship Code | Retain external and independent accreditation/validation of NFU Mutual’s Environmental, Social and Governance credentials, by fulfilling commitments and meeting agreed benchmarks |
Maintained affiliations with the Principles for Responsible Investment and the UK Stewardship Code |
Renew signatory to the UK Stewardship Code, |
Renew signatory to the UK Stewardship Code, |
| Affiliations - Principles for Responsible Investment | Retain external and independent accreditation/validation of NFU Mutual’s Environmental, Social and Governance credentials, by fulfilling commitments and meeting agreed benchmarks |
100% of funds NFU Mutual invest in was managed by a signatory to the UN Principles of Responsible Investment |
Maintain 100% of funds managed by signatories to the Principles for Responsible Investment |
Maintain 100% of funds managed by signatories to |
| Environment, Social and Governance performance - customers' understanding | New aim |
45% of customers agree to understanding our approach to active stewardship |
Over 40% of customers agree that they understand NFU Mutual’s approach to active stewardship |
50% of customers agree that they understand NFU Mutual’s approach to active stewardship  |
| Environment, Social and Governance performance - fund managers | New aim |
50% of internal fund managers have achieved Environmental, Social |
Make progress against our longer-term aim |
100% internal fund managers to have achieved |
Responsible Property Investments
| Priorities | Aims for 2023 | Delivered in 2023 | Aims for 2024 | Longer-term aims |
| Emission reduction | Make progress against our longer-term aim of delivering 100% emissions reduction in NFU Mutual’s property portfolio by 2050 | Comparing 2023 to a 2019 base year, emissions from our property investment portfolio had reduced by more than 50%. The sale of assets contributes to this figure, and emissions may increase again as our portfolio grows and changes. | Make progress against longer-term aim | 100% emissions reduction (tCO2e) in NFU Mutual property portfolios by 2050 |
| Green leases | 100% of new leases and lease variations to benefit from green lease clauses | 100% of new leases and variations since January 2022 have included green lease provisions: 100% with a partial green lease clause, 82% with a full green lease clause, due to a small number of legal drafting compromises being required due to occupier refusal to approval |
Make progress against longer-term aims | 100% of Energy Performance Certificates across NFU Mutual’s property investment portfolio to be C or better by 2027 100% of Energy Performance Certificates across NFU Mutual’s property investment portfolio to be rated B or better by 2030 |
| Priorities | Aims for 2023 | Delivered in 2023 | Aims for 2024 | Longer-term aims |
| Governance | New aim | 80% of NFU Mutual employees agree that NFU Mutual operates a Responsible Business | Maintain 80% of NFU Mutual employees agree that NFU Mutual operates a Responsible Business | 85% of NFU Mutual employees agree that NFU Mutual operates a Responsible Business by 2028 |
| Supplier diversity | Increase spend with social enterprises by 10% compared to 2022 | NFU Mutual spent £794,631 with social enterprises and not-for-profit organisations in 2023, signifying an increase of 38% | Continue to work with social enterprises as part of the Social Enterprise UK Buy Social Corporate Challenge and increase spend by a future 10% | Widen our use of social enterprises across NFU Mutual’s supply chain |
| Our Supply Chain and Climate Change |
Calculate carbon footprint for strategic, key and operational suppliers Develop our procurement processes to include climate change impact |
We developed and piloted maturity assessment criteria for climate change to inform how we engage and work with our suppliers We have actively contributed to the development of an industry supplier information database (FSQS) to enhance climate-related information capture. We are continuing to develop how we calculate the carbon footprint of our top suppliers |
Embed the use carbon emissions calculations for strategic and key suppliers. Develop supply chain targets in support of our Climate Change Strategy |
Monitor the supply chain scope 3 metrics and provide support to suppliers that need it |
| Our Supply Chain and Environmental, Social and Governance |
Environmental, Social and Goverancen assessment in supplier selection and management processes in 2023 |
We now include an Environmental, Social and Governance weighting factor within the supplier selection process |
Make progress against our longer-term aim | To embed the use of Environmental, Social and Governance analysis for the supply chain as part of NFU Mutual’s day-to-day business operations |
| Anti-bribery and Corruption |
Mandatory completion of annual internal training for all employees |
99% completion rate of annual internal training |
Mandatory completion of annual internal training for all employees | Mandatory completion of annual internal training for all employees |
| Tax Strategy and Transparency |
Maintain low risk tax rating from HMRC |
Maintained low risk tax rating from HMRC |
Maintain low risk tax rating from HMRC | Maintain low risk tax rating from HMRC |
| Exec Remuneration |
Introduce carbon emission reduction targets into senior management Long Term Incentive Plans |
Introduce carbon emission reduction targets into senior management Long Term Incentive Plans |
Increase the weighting of carbon emissions to 5% for the 2024-26 senior management Long term Incentive Plan | Continuing to monitor the effectiveness of including carbon emissions reduction targets in Executive Bonus Schemes |
| Modern Slavery and Human Trafficking |
Publish NFU Mutual’s Moderns Slavery Statement and work with Slave-Free Alliance to train additional business areas |
The Modern Slavery Statement for the 2022 financial year was published in May 2023 Additional business areas, including Claims, Risk Management Services and IT, have attended training from Slave-Free Alliance. During Anti-Slavery Week in October, training was also held for NFU Mutual’s agency network. |
Publish NFU Mutual’s Modern Slavery Statement and continue to train additional business areas Refine supply chain assessment through introduction of a due diligence question se |
Ensure NFU Mutual’s meets any amendments to the Modern Slavery Act 2015 |
