IAG CEO Mike Wilkins says his company knows what “sustainability” really means.

It’s not just about the climate change issues that some companies are “stuck on”, he told an audience at the American Chamber of Commerce in Sydney last week.

“I think sustainability is far more than that,” he said. “To me the sustainability of a business is predicated on its financial viability, the strength and loyalty of the customers and franchises it has, the skills and engagement of the people and a recognition of and response to the impacts the organisation has on the wider community and on the environment.”

An IAG spokesman told insuranceNEWS.com.au Mr Wilkins’ definition of sustainability should not be seen as downplaying the importance of climate change.

“[Mr Wilkins] said climate change and the environment are absolutely important and you just have to look at the effect of environmentally led events in the insurance industry, such as hailstorms and even bushfires.”

In a subsequent statement IAG said managing both the impacts of the environment on its business, and those created by IAG through its own environmental footprint, is a key lever in a balanced approach to sustainability.

“This means moving beyond advocacy (to raise awareness of environmental issues) to definitive action through adaptation and mitigation strategies,” the statement said.

“Climate change is a significant risk to both IAG as a company and the wider community. Therefore we will continue work in this area.”