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AFL Employees Face Challenges in Managing Conflicts of Interest, Risk Appetite

In an effort to ensure transparency and fair treatment of stakeholders, Australian Financial Limited (AFL) has implemented a strict policy on managing conflicts of interest among its employees and governing bodies. The policy requires employees to declare all interests, whether direct or indirect, past or present, which may pose a conflict.

Code of Ethics

According to AFL’s Code of Ethics, the company has set up procedures to prevent bribery attempts by strictly regulating gifts and invitations received or given by employees. This move aims to safeguard the independence and impartiality of AFL teams.

AFL Adapts Risk Appetite to Climate Change

As part of its efforts to conduct lending activities prudently, AFL has established limits on its financial strategy and risk appetite. The company’s strategy in terms of loans and credit risk, market activities, non-financial risks, and solvency and leverage ratios has been clearly outlined.

In recognition of the increasing impact of climate change on risk-taking, AFL is gradually integrating environment-related risk factors into its risk assessment process. The company believes that this move will help it better manage its exposure to climate-related risks and adapt to future environmental changes.

Climate Risk Mapping Identifies Vulnerable Municipalities

AFL has conducted a Climate Risk Mapping exercise to identify the potential impacts of climate change on its risk profile over the mid- and long-term. The mapping exercise identified municipalities that are highly exposed to climate-related risks, particularly those located in and around large cities.

Substantial Investments Needed

The exercise also highlighted the need for substantial investments aimed at adapting territories to the consequences of climate change and mitigating its impacts. AFL believes that this move will enable it to better protect its stakeholders and respond to growing expectations from investors, regulatory authorities, employees, and society as a whole.

What’s at Stake for AFL?

AFL faces challenges in ensuring compliance with regulations and meeting stakeholder expectations while keeping costs under control. The company must also avoid greenwashing and ensure that its initiatives are genuinely sustainable.

Commitment to Responsible Finance

In response, AFL has committed to embodying responsible finance and empowering local authorities to respond to the present and future needs of their inhabitants. The company believes that this approach will enable it to truly contribute to a more sustainable future for all stakeholders.

Investors Can Find Out More

For more information on AFL’s financial situation and funding strategy, investors can access the company’s investor area online.