AAMI recognises the need to reduce waste and conserve natural resources.

Unlike typical environmental 'motherhood statements', AAMI's commitment to creating a sustainable environment is enshrined in the AAMI Customer Charter, where the self-imposed penalty for failure is $25,000.

Among the 16 customer service guarantees, which are supported by monetary penalties in AAMI's ninth Customer Charter, is a promise to measurably reduce the company's impact on the environment.

Current environmental goals
In 2005, AAMI is committed to ensuring that less than 20 per cent of waste sent to landfill comprises paper or cardboard. The promise, number 17 in the 2004-2005 AAMI Customer Charter, also commits AAMI to offset its fleet car emissions by subscribing to a national tree-planting program.

AAMI's corporate fleet of almost 240 vehicles has been subscribed to Greenfleet. For each vehicle, AAMI will donate $40 annually, which will enable planting and maintenance of 17 native trees. In one year, the 17 trees per vehicle will absorb the greenhouse gas emission produced by the cars. The trees will also help tackle salinity, improve water quality and provide habitat for endangered species.

Penalty for failure
The self-imposed penalty for breaching promise 17 in the 2004-2005 AAMI Customer Charter, is $25,000, to be donated by AAMI to a not-for-profit organisation directed at environmental activities.

Ongoing positive effects
The 'green' promise, introduced in 2001, committed the company to achieve a 10 per cent reduction in its waste-sent-to-landfill.

AAMI achieved three times the target: an actual 30 per cent reduction in waste. When growth in the number of employees is taken into account, a 38 per cent reduction was achieved. The results were independently audited by KPMG.

Strong commitment from staff has enabled AAMI's green promise to develop and expand over the past three years.

Environmental awareness
Introduction of AAMI's first 'green promise' in its 2001-2002 AAMI Customer Charter has helped to raise awareness of the waste we create and the need to utilise recycled materials wherever possible, as well as reduce our use of raw materials.

AAMI's green promise has also led to other company-wide environmental initiatives, including use of recycled paper in all our printed materials, recycling printer cartridges and buying back these materials as useable products for our customer service centres.

AAMI has implemented smart building guidelines in our customer service centres, such as using clear sheeting in roofs to reduce the need for lighting, using natural, recyclable products where possible such as wool carpets, and using timers and sensors on some office lights to reduce electricity wastage.

Also, AAMI has trialled devices that reduce the electricity usage for lighting in its offices and customer service centres. As a result, devices have now been installed at approximately 20 of AAMI's sites. As leases are confirmed, devices will be installed in remaining AAMI locations.