Corporate responsibility

Novae’s long-term commercial success depends upon ethical treatment of its investors, clients, staff and suppliers; on its relationship with the community in which it operates; and on its approach to environmental issues. Novae’s policies in these areas, which have been built on a stakeholder review conducted in 2007, are therefore central to its business practice.

Investors

Novae’s registrars are provided with detailed information on the Group’s corporate activity for the support of private investors. The Company Secretary’s department also provides shareholders with direct assistance. Regular meetings are held with corporate investor advisory bodies. Direct contact with major shareholders is described in the corporate governance statement. The Group’s dialogue with corporate investors and their advisory bodies, as well as with analysts, is open and continuous.

Clients

Novae’s clients and their brokers can expect the Group’s staff to uphold its reputation for professionalism and integrity. The staff handbook and procedures manuals provide clear statements to the Group’s staff of Novae’s corporate values and they are consistent with its regulatory obligations. They are reviewed annually to keep pace with changing commercial and regulatory circumstances. Potential conflicts of interest or duty facing the directors of Group companies are addressed in accordance with the provisions of the Companies Act 2006. In addition, all directors and staff record gifts and corporate entertainment they receive in excess of a modest threshold. Moderate hospitality is an accepted business courtesy, but there are strict limits imposed on the entertainment by Novae staff of the Group’s clients and their brokers. Agreements entered into by the Group with insurance intermediaries are fully disclosed to clients. Novae has no corporate political affiliations and makes no political donations of any kind.

Staff

Novae’s success in attracting, retaining and motivating the highest calibre staff at all levels is dependent not simply on salary levels, but also on the Group’s input to training, equal opportunities, family life, health and safety, extra-curricular team activities and equity participation. Novae’s commitment to these aspects of HR management benefits the Group by underpinning staff commitment to Novae and providing opportunity for personal development. Both in-house and external training is led by the appraisal system, which identifies skills gaps and development needs. Staff are provided with study leave and the training fees are paid by the Group. Success in professional examinations is recognised by the payment of bonuses. Staff are recruited, trained, and rewarded on the basis of merit and contribution to Novae, irrespective of their sex, age, disability, nationality, ethnic origin, religion, sexual orientation, political persuasion, or party or union membership. Working wholly or partly from home, where this is feasible for the role, is supported by IT provision. This forms part of Novae’s flexible working arrangements for parents of younger children and helps to recruit and retain the best people. Child-care vouchers for staff who have young children are provided.

Novae aims to provide a safe working environment and to promote good health among staff. The Group’s health and safety policy forms part of the staff handbook and is published on the Group’s intranet. Novae carries out regular reviews to ensure that office equipment is safe and properly used. The Staff Sports and Social Committee has its own budget and co-ordinates sporting, social and community events. Novae teams competed in football and netball events in 2009. The Group pays for kit for use by Novae sports teams and sponsors their participation in internal and external competitions. Corporate membership has been negotiated at a gym close to the London office. Sickness absence as a proportion of total working time has improved to 0.9% (12 months to December 2009) from 1.1% (12 months to December 2008). Novae’s All Employee Share Ownership Plan was introduced in 2001. Now operating as the Share Incentive Plan (SIP), it enables staff at all levels in the Group to build a stake in Novae and 57% of eligible staff participate. In 2008 the Group introduced a Novae-sponsored Self-Invested Personal Pension Plan (SIPP) to encourage further equity participation and pension planning. The SIP and SIPP may be linked: 9% of staff participate in the latter. Increased equity participation is not simply an attractive employee benefit. The resulting alignment of the interests of staff and investors fosters long term staff commitment to Novae. Staff turnover remains lower among our SIP participants than non-participants.

Suppliers

Novae deals fairly, openly and in accordance with agreed terms of trade with its suppliers and other business partners.

Community

Novae’s support for community programmes that contribute positively to society benefits the Group by providing its staff with team-building tasks and opportunities outside the work place for personal development. The Group’s Charities Committee has an annual budget of £10,000. Staff participate in sponsored events raising funds for charities in which they have a particular interest. Subject to a cap, Novae matches the funds raised. Some funding is given following staff nominations of charities and there is a particular emphasis on the support of charities for which the
Group’s donation will make a difference. Novae also supports staff who give their time and effort to the Lloyd’s Community Programme. Novae’s support for the Prince’s Trust continues. As patrons, the Group contributed over £34,500 in 2009: £25,000 through corporate membership; and over £9,500 through fundraising events in which the Group’s staff participated. Total donations to charities from these activities in 2009 amounted to £47,434 (£37,342 in 2008; £24,963 in 2007; £10,400 in 2006). Novae provides financial and practical support to Richard Reeks, a decathlete training for the 2012 Olympic Games.

Environment

Novae is committed to a rigorous recycling and waste policy. All paper, glass, cans and, where possible, plastics are recycled. Many of the environmental initiatives have been promoted by members of staff. The percentage of waste material sent to landfill sites has fallen again in 2009 to 35% (36% in 2008). A review of the Group’s paper archive was implemented in 2008 and the storage arrangements were revised in 200 to reduce the physical archive. Where possible, unwanted paper records are recycled, improving data security, and the environmental impact of document recovery is reduced by recalling scanned records. Within the limits of a multi-tenanted building, Novae is working to reduce energy consumption. Where possible, computer equipment is switched off at night and lighting systems are programmed. The document management system was overhauled in 2009, not only to improve business practices, but also to reduce paper consumption. Double-sided printing and copying equipment is provided across all areas of the business. The internal environment of Novae’s head office building is controlled by an energy efficient system. According to figures produced by the landlord, the building consumes 30% less energy and emits 33% less carbon dioxide than a conventionally air-conditioned building. No company cars are provided and staff use mass public transport wherever possible on the Group’s business. Novae also subsidises staff in the Ride to Work scheme.

Accreditation

Novae is a constituent company in the FTSE4Good Index Series. This identifies companies that are considered by the FTSE to be working towards environmental sustainability and developing positive relationships with stakeholders.

The Group continues to review policies in those areas over which it has direct control, such as working practices and community involvement, and to support credible initiatives for making a positive contribution in other areas where Novae’s impact is less direct.