28 April 2011

To our Stakeholders,

I am pleased to confirm that mecu Limited reaffirms its support of the ten principles of the Global Compact with respect to human rights, labour, environment and anti-corruption.

With this communication we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations.

We support public accountability and transparency and therefore commit to submit a report on progress annually according to the Global Compact COP policy.

Yours faithfully,

Mr Damien Walsh
Deputy CEO

mecu is demonstrating leadership across the Australian mutual banking sector and to other organisations around the globe, by promoting and developing more responsible business practices. This responsible approach to banking includes addressing issues relevant to human rights.

mecu has developed a UN Global Compact Action Plan to address issues of human rights, approved by the Credit Union's Sustainable Development Committee. All action items are the specific responsibility of designated members of the Senior Management Team.

mecu has in place Human Resource policies covering equal opportunity, workplace behaviour, racial and religious tolerance, affirmative action, anti-discrimination, grievance and acceptable conduct.

A public statement on human rights is available in mecu's 2009/10 Sustainability Report:

http://www.mecu.com.au/reports/sustainability-report-2010/chapter-5/human-rights.html

In addition, there are various references to mecu's commitment to the UN Global Compact throughout mecu's 2009/10 Sustainability Report. Relevance to mecu's Sustainability Strategy can be found in Chapter 1:

http://www.mecu.com.au/reports/sustainability-report-2010/chapter-1/mecus-sustainability-strategy.html

Specific actions identified in mecu's UN Global Compact Action Plan include:

- mecu will maintain Human Resource policies covering equal opportunity, workplace behaviour, racial and religious tolerance, affirmative action, anti-discrimination, grievance and acceptable conduct.
- mecu will abide by all legislation relative to human rights in Australia.
- Through its participation in Credit Union Foundation Australia (CUFA), mecu will investigate and identify any opportunities to support protection of human rights.
- mecu will continue to maintain policies that uphold freedom of association, and employee rights to choose collective bargaining.
- mecu will maintain Human Resource policies to ensure equal opportunity, respectful workplace behaviour, racial and religious tolerance, anti-discrimination, grievance and acceptable conduct.

Progress against the above actions are reported to the Sustainable Development Committee quarterly and will be reported in mecu's 2010/11 Sustainability Report for the first time.

mecu strives to provide a rewarding, supportive and challenging work environment, with opportunities for employees to fully develop their personal and professional skills. Maintaining labour standards is integral to a sustainable work culture and ultimately to the longevity of the Credit Union. In line with mecu's responsible approach to banking, the Credit Union is demonstrating leadership across the Australian mutual sector and to other organisations around the globe, by promoting more responsible business practices in relation to labour standards.

mecu has developed a UN Global Compact Action Plan to address issues of labour rights, approved by the Credit Union's Sustainable Development Committee. All action items are the specific responsibility of designated members of the Senior Management Team.

mecu's approach to managing labour is publicly outlined in mecu's 2009/10 Sustainability Report:

http://www.mecu.com.au/reports/sustainability-report-2010/chapter-5.html

mecu will further develop communication to stakeholders with regards to labour rights in future reports.
In addition, there are various references to mecu's commitment to the UN Global Compact throughout mecu's 2009/10 Sustainability Report. Relevance to mecu's Sustainability Strategy can be found in Chapter 1:

http://www.mecu.com.au/reports/sustainability-report-2010/chapter-1/mecus-sustainability-strategy.html

Specific actions identified in mecu's UN Global Compact Action Plan include:

- Through its participation in CUFA, mecu will investigate and identify any opportunities to uphold constructive Labour Standards in countries where mecu funds are allocated to International Development.

Progress against the above actions are reported to the Sustainable Development Committee quarterly and will be reported in mecu's 2010/11 Sustainability Report for the first time.

The natural environment provides mecu with the resources required to carry out day-to-day operations. Minimising mecu's impact on the environment will help to ensure the Credit Union's sustainability by reducing operating costs and placing less strain on finite natural resources.

mecu has developed a UN Global Compact Action Plan to address issues of environmental protection, approved by the Credit Union's Sustainable Development Committee. All action items are the specific responsibility of designated members of the Senior Management Team.

mecu produces an annual Sustainability Report: http://www.mecu.com.au/reports/sustainability-report-2010.html

A description of mecu's approach to environmental management can be found in Chapter 7:

http://www.mecu.com.au/Reports/Sustainability-Report-2010/chapter-7.html

In addition, there are various references to mecu's commitment to the UN Global Compact throughout mecu's 2009/10 Sustainability Report. Relevance to mecu's Sustainability Strategy can be found in Chapter 1:

http://www.mecu.com.au/reports/sustainability-report-2010/chapter-1/mecus-sustainability-strategy.html

Specific actions identified in mecu's UN Global Compact Action Plan include:

- mecu will implement an Environmental Management System (EMS) which will see the Credit Union identify environmental aspects with a negative environmental impact. The EMS will provide the means for driving positive environmental outcomes and continual improvement across mecu.
- mecu will produce an annual Sustainability Report that is transparent and clearly outlines defined accountabilities and requirements under the UN Global Compact.

Progress against the above actions are reported to the Sustainable Development Committee quarterly and will be reported in mecu's 2010/11 Sustainability Report for the first time.

As a financial institution dealing with members’ money, mecu takes corruption very seriously. mecu has in place policies, procedures and controls to maintain a zero tolerance culture for corrupt behaviour and to ensure robust compliance with all legislation and codes. In addition, mecu has active representation on the Abacus' Fraud Prevention Network.

mecu's approach to ethics and governance, including corruption, is publicly available in mecu's 2009/10 Sustainability Report:
http://www.mecu.com.au/Reports/Sustainability-Report-2010/chapter-2.html

Furthermore, there are various references to mecu's commitment to the UN Global Compact throughout mecu's 2009/10 Sustainability Report. Relevance to mecu's Sustainability Strategy can be found in Chapter 1:

http://www.mecu.com.au/reports/sustainability-report-2010/chapter-1/mecus-sustainability-strategy.html

Specific actions identified in mecu's UN Global Compact Action Plan include:

- mecu will maintain a zero tolerance culture for corrupt behaviour including fraud.
- mecu will continue to comply with all relevant legislation and codes that are in place to protect members’ money and personal information.
- Through its participation in the Abacus’ National Fraud Prevention Network, mecu will strive to prevent corrupt activity across the mutual banking sector.
- Through its participation in CUFA, mecu will investigate and identify any additional opportunities to address the UNGC principle area of anti-corruption

Progress against the above actions are reported to the Sustainable Development Committee quarterly and will be reported in mecu's 2010/11 Sustainability Report for the first time.