IAG has strengthened its climate action plan, introducing milestones for the next three years and a scorecard for responsible executives.

It sets out an agenda to contribute to wider government policy and proposals to improve the company’s internal performance in responding to the issue.

“Taking action on climate change and its impacts makes sense for our communities and our business,” CEO Peter Harmer told the annual general meeting in Sydney on Friday. “We have set ourselves an ambition to be a regional leader in tackling this huge, important socioeconomic challenge.”

IAG produced an action plan framework in June, noting it was underpinned by the Paris Agreement to limit global climate change to two degrees of warming above pre-industrial levels.

Projects include a pilot to reduce emissions from the Australian vehicle fleet, engaging with New Zealand local governments on adaptation and contributing to government reviews, inquiries and policy setting.

All group executives are tasked with collaborating across the company’s relationships and networks, and the CEO is responsible for an annual update on progress.

Chairman Elizabeth Bryan also told the meeting IAG will use findings from the Hayne royal commission to improve its performance.

“From the moment the royal commission was announced, we adopted an approach that would maximise our learnings from the process,” she said.

Ms Bryan concedes the company could have acted earlier after realising add-on products sold through vehicle dealerships were not meeting customers’ needs.

While the royal commission is continuing, “it is already clear that many of the issues highlighted so far are the result of a failure to consider the best outcomes for customers. In our own backyard this certainly was the case with the add-on insurance sold by Swann through car yards.”