Materiality Assessment

Materiality Assessment

The sustainability reporting standards we follow include materiality as a core principle. We consider information to be material if it relates to our significant economic, environmental and social impacts or if it would substantively influence the assessments and decisions of our members or other key stakeholders. Understanding what’s material helps us prioritize what we manage and report. Each year we review and update our list of material topics and corresponding measures to include in our annual reports. Our external sustainability assurance providers—Ernst & Young in 2012—also conduct their own process to ensure we report the material issues relating to our sustainability performance. For example, the following are topics members have told us are of most importance to them:

• Member service and advice, including financial literacy

• Privacy of personal/financial information, and fraud

• Technology, including renewal of our core banking system and related applications

• Employee practices, including paying a Living Wage

• Access to affordable housing and the high cost of living

• Lending and granting decisions and impacts/community well-being

• Financial performance and risk management

Determining material topics is a complex and often subjective process, and topics and interests evolve over time. We’d benefit from a more formal, coordinated and consistent approach to collect and aggregate key insights from our members and communities. We’d also benefit from a more formal and replicable approach to prioritize and respond to material risks and opportunities within the context of our operating environment and business strategy. We plan to address this by enhancing the way we engage with stakeholders, and assessing the implications