GRI 3.2 GRI 3.3

As this is our third annual Sustainability Report, we continue the process of reporting movements in our performance using a number of indicators which are compared against our performance in 2006 and baseline data that was established in 2005.

The Report aims to inform readers how mecu is going about the task of embedding sustainable development principles into our organisational culture, operations and personal finance products and services.

After obtaining some stakeholder feedback, we decided not to produce the full Report on CD but rather make it available:

Online: through our website www.mecu.com.au
Annual Report: integrated an overview of our Sustainability Report into the Annual Report
Printed: Summary Report.

2.1 Scope GRI 2.3 GRI 2.4 GRI 2.5 GRI 3.1 GRI 3.6 GRI 3.8

The reporting period is 1 July 2006 to 30 June 2007 [unless otherwise stated]. The Report incorporates the activities of mecu Limited and its subsidiary Ed Credit Services Pty Ltd. Both organisations are solely based in Australia and headquartered in Kew, Victoria. mecu has service centres in Brisbane, Canberra, North Ryde, Glen Waverley, Moe, Morwell and Traralgon which all form part of mecu’s operations and are included as part of this Report [unless otherwise stated].

Data pertaining to Ed Credit Services Pty Ltd is incorporated into all figures [unless otherwise stated]. Ed Credit Services Pty Ltd is the Trustee for a Unit Trust that was established to provide, among other things, operational leases to schools. mecu is the sole beneficiary of the Unit Trust and the Trust reports directly to mecu.

2.2. Our readers

mecu aims to ensure the content of this Report is relevant and of importance to its readers who we believe are primarily our members, staff and EPA Victoria. Other stakeholders who may have an interest in learning about our performance include representatives of mecu’s strategic communities, finance sector representatives and regulators as well as domestic and international organisations working in the area of sustainability.

2.3 Determining the content of the Report GRI 3.5

2.3.1 Stakeholder engagement

In 2007 mecu sought to identify issues of material importance to members by inviting them to rank a series of sustainability attributes according to the importance they place on each attribute and mecu’s performance. Information on mecu’s performance according to the top ten attributes is included in the Report.

Furthermore the Board and management engage with all key stakeholders. Stakeholder engagement activities are reported to the Board each quarter. Issues of importance arising from these engagements also help shape the content of this Report.

Material issues (determined through our stakeholder feedback) covered in this report include:

delivering member benefit
conducting banking according to an ethical policy
our socially responsible approach to banking
employee relations
environmental performance

2.3.2 Sustainability Covenant CSR1

mecu has made a series of commitments to sustainable development, which are included in our Sustainability Covenant with EPA Victoria. Furthermore as a signatory to the UNEP Statement by Financial Institutions on the Environment and Sustainable Development we have committed to a sustainable approach to banking.

Each of these commitments helps shape the content of this Report.

2.3.2

Objectives of the Sustainability Covenant with EPA Victoria are to:

Increase the efficiency with which mecu uses resources to develop and deliver its products and services;
Help to alleviate negative environmental and social impacts through our products and services;
Encourage and assist our members to live more sustainable lives;
Apply prudent financial business practices to our operations to ensure economic and financial sustainability; and
Support developments within the finance sector that encourage others to embrace sustainability.

Throughout the Report, you’ll see the following handshake symbol.

This is used to indicate commitments mecu has made under our Sustainability Covenant with EPA Victoria and commitments that were made in our 2006 Sustainability Report. Upon reporting these commitments, the circle symbols (below) will be used to illustrate our level of progress in relation to each commitment.

	Fulfilled (will be removed as a commitment for subsequent Reports unless otherwise stated)
	Partially fulfilled (these commitments will be carried over until they are fulfilled unless otherwise stated)
	Not fulfilled (these commitments will be carried over until they are fulfilled unless otherwise stated)
	New (the progress of these commitments will be reported in next years Report)

You will notice that we are ‘cleaning up’ and preparing to remove many of the commitments of the past two years from the Report as we have fulfilled many of them and also because we are amalgamating some commitments to allow us to concentrate now on monitoring and improving our economic, social and environmental performance in the future.

Commitment 2006/2007	Progress
Continue to improve performance in the economic, social and environment aspects of mecu’s business.

2.4 Changes GRI 3.11

There are no significant changes or limitations [unless specified] from previous reporting periods in the scope, boundary, or measurement methods applied in the Report.

2.5 Framework GRI 3.9

Data measurement techniques and the basis of calculations (including assumptions and techniques underlying estimations) applied to the compilation of the indicators and other information used in the Report are based on Global Reporting Initiative (GRI) G3 protocols. In instances where this may not be the case, this is stated.

Both the Stakeholder engagement and our Sustainability Covenant assist us in determining which GRI indicators to report against.

2.6 Reporting and assurance GRI 3.13

During 2007 mecu engaged the Net Balance Management Group to undertake a systems diagnosis. This was to ensure collection methods for data to be included in the Report were robust and met the requirements of the revised Global Reporting Initiative (GRI) G3 guidelines and finance sector social and environmental supplements which have been used as a reference.

mecu has also engaged the services of the Net Balance Management Group to provide an independent assurance of the Report. This is consistent with mecu’s past practice and ongoing commitment to assure stakeholders on the quality of the Credit Union’s data collection, transfer and reporting processes.

A GRI Index identifying the location of all standard disclosures is included in the Report.

Spotlight

Our findings through producing a sustainability report

We have been producing a sustainability report since 2005. Reporting has helped us to:

Identify gaps within our processes and procedures – allowing us to improve on these and become more efficient in the way we operate our business.
Build brand awareness through recognition from organisations such as Banksia Foundation and Association of Chartered Certified Accountants (ACCA) for our approach to sustainability. This type of recognition has proved valuable for a small organisation such as mecu.
Benchmark ourselves against our competitors and the finance industry.
Create a new avenue for stakeholder engagement through feedback. This has helped us to refine the process of determining materiality and to identify what matters to our stakeholders.
Use the Report not only as a document to report on our social, environmental and economic performance but also as a promotional tool to showcase our approach and sustainability initiatives which has allowed us to differentiate ourselves in the marketplace.

2.7 Feedback GRI 3.4

Of course we’d be delighted to know what you think of the way we report our performance and the relevance of our reporting to you. We therefore invite you to provide us with your comments or ask questions by filling out the online feedback (located in the 'contact us' section or the Homepage of this Report), emailing sustainability@mecu.com.au or phoning 132 888. Your comments are valued and will assist us to further improve next year’s Report.