42
Environmental, Social and Governance
 
Macquarie’s Board and Management recognise the importance of sound Environmental, 
Social and Governance (ESG) practices as part of their responsibility to our clients, shareholders, 
communities, people and the environment in which Macquarie operates. 
ESG approach
Macquarie’s ESG approach is structured around focus areas 
considered to be material to our business.
Clear dialogue with stakeholders is important to building 
strong relationships, understanding external dynamics, earning 
and maintaining trust, enhancing business performance and 
evolving our ESG approach. We regularly engage with a broad 
range of stakeholders including clients, shareholders, investors, 
analysts, governments, regulators, staff, suppliers and the 
wider community.
ESG governance
The Board is responsible for approving Macquarie’s ESG 
framework including major ESG policies. In accordance with 
its Charter, the Board Governance and Compliance Committee 
(BGCC) assists the Board in adopting appropriate governance 
standards and reviewing the operation of environmental 
and social risk management policies. Responsibility 
for implementation of the ESG framework and related 
board‑approved policies resides with Management.
ESG governance:
External stakeholder interests
ESG focus areas
Environmental and 
social risk management
Environmental and 
social financing
Climate 
change
Sustainability in 
direct operations
391
transactions
assessed under our 
Environmental and Social 
Risk (ESR) Policy
$A9.0b
invested or arranged in 
renewable energy and energy 
efficiency projects in FY2020
12,800 MW
of renewable energy 
assets in operation or 
under management 
at 31 March 2020(1)
13.6%
of total funded equity 
investments exposed 
to renewable energy 
at 31 March 2020(2)
2.2%
of total funded equity 
investments exposed 
to conventional energy 
at 31 March 2020(2)
100%
renewable electricity 
by 2025
Emissions per capita 
reduced by
45%
from FY2010 baseline 
(18% reduction from 
FY2019) 
(1)	 MW of renewable energy assets in operation or under management reflect 100% generating capacity of each asset, not the proportion owned/managed 
by Macquarie.
(2)	 Equity investments are reported on a funded balance sheet basis and therefore exclude equity hedge positions and non controlling interests. Macquarie’s 
carrying value of its interest in East Anglia ONE Limited is $A2.8 billion, which has been partially funded with asset-specific borrowings of $A2.3 billion at 
31 March 2020. Total funded equity investments amount to $A7.4 billion as at 31 March 2020 ($A5.9 billion at 31 March 2019).

43
Macquarie Group Limited and its subsidiaries  2020 Annual Report
About
Governance
Directors’ Report
Financial Report
Further Information
	–
Board oversight 
	–
What We Stand For (principles of Opportunity, Accountability and Integrity) and Code of Conduct 
	–
ESG risk management
Risks and opportunities identified by the business
Client  
experience
People and  
workplace
Business conduct  
and ethics
Community 
Partnerships Gold Award 
2019 for Financial Advisor 
of the Year
Mozo Experts Choice 
Awards 2020 for Excellent 
Banking App, Internet 
Banking and Exceptional 
Everyday Account
Canstar Outstanding Value 
Transaction Account 
(2018 and 2019)
3,000 classroom events 
and 350,000 online courses 
and knowledge tests 
delivered to our staff
Tailored training, workshops 
and leadership sessions 
provided to over
8,700 
staff(3) 
The Macquarie Group 
Foundation is the 
philanthropic arm 
of Macquarie. 
Further information can be 
found on pages 62 to 65 of 
this Annual Report


About these disclosures
Macquarie’s FY2020 ESG disclosures have been prepared 
in accordance with the GRI Standards: Core option. The 
ESG disclosures comprise relevant sections of Macquarie’s 
2020 Annual Report and Macquarie’s website. The content 
of the disclosures is based on Macquarie’s ESG focus areas, 
which have been reviewed and updated in FY2020 following 
secondary research, market benchmarking, media analysis 
and extensive engagement with internal representatives of 
Macquarie’s businesses across all regions. The adjustments 
to our focus areas reflect the issues that we have observed are 
most important to our stakeholders.
	 Full details of the changes made to the focus areas 
and a GRI Index table are available at
macquarie.com/ESG
(3)	 Content includes conduct and conduct risk, psychological safety (aimed at staff and supervisors) and ethical decision‑making. Macquarie also requires 
staff to undertake mandatory online Code of Conduct training.

44
Environmental, Social and Governance
Continued
Environmental and social risk management
Macquarie recognises that failure to manage ESG risks could expose the organisation to 
commercial, reputational and regulatory impacts and affect communities, the environment 
and other external parties. Assessing and managing Macquarie‑wide ESG risks is a key 
business priority and an important component of our broader risk management framework, 
detailed in the Risk Management section of this Annual Report. 
Under the Code of Conduct all staff share responsibility 
for identifying and managing environmental and social issues 
as part of normal business practice. Staff are supported by 
the ESR team.
The ESR team coordinates a diverse range of ESG activities 
across business groups and regions, including developing and 
implementing Macquarie‑wide and business‑specific policies, 
conducting transaction reviews, providing advice on ESG 
risks and opportunities and facilitating training. The ESR 
team sits within the Risk Management Group and regularly 
reports to the Chief Risk Officer (CRO) and to the BGCC on 
ESG‑related matters.
ESR in transactions
Environmental and social risks are managed through 
the implementation of the ESR and Work Health and 
Safety (WHS) policies.
Macquarie’s ESR Policy describes our approach to ESR 
management in client on‑boarding and across a broad range 
of transactions including equity investments, financing, leasing 
and advisory mandates. The ESR Policy provides a robust 
process to assess, manage, mitigate, monitor and report 
environmental and social risks and takes a precautionary 
approach to ESR issues including labour and employment 
practices, climate change, human rights, resource efficiency, 
pollution prevention, biodiversity and cultural heritage. Based 
on international guidelines, including the International Finance 
Corporation Performance Standards, the ESR Policy provides 
escalated decision‑making and approval processes, alongside 
the credit approval process, for material environmental and 
social risks. Transactions with material environmental and social 
risks are referred to the CRO and may be escalated to the 
Executive Committee or Macquarie Board.
The ESR team oversees the operation of the ESR Policy, 
reviewing transactions and providing specialist advice 
and targeted training.
509 
80
staff received ESR 
and WHS training 
in FY2020(4)
staff received specialist 
Human Rights training 
in FY2020
Macquarie’s WHS Policy sets out our commitment to seek 
to operate zero harm workplaces through maintaining high 
WHS standards and performance across all our activities 
globally. For operating assets in which Macquarie has an 
equity interest or manages on behalf of a fund, we continued 
to facilitate WHS and environmental improvements through:
	–
conducting due diligence prior to investment
	–
training our staff
	–
regular monitoring of performance
	–
sharing lessons learnt and best practices across our 
portfolio
	–
ongoing audits.
These activities are documented in the WHS and ESR policies 
and associated frameworks, which are based on international 
standards.(5) These are updated periodically to respond to 
identified opportunities for improvement and emerging issues.
(4)	 Includes risk managers and those in specific business groups with greatest potential exposure to environmental, social and WHS risks.
(5)	 ‘Occupational health and safety management systems – Requirements with guidance for use’ ISO 45001:2018 and ‘Environmental management systems – 
Requirements with guidance for use’ ISO 14001:2016.

45
Macquarie Group Limited and its subsidiaries  2020 Annual Report
About
Governance
Directors’ Report
Financial Report
Further Information
ESR Policy referrals
Americas
36%
Asia
11%
EMEA
30%
Australia
23%
Transactions
391
Client on-boarding
174
Advisory 
mandates
41
606
ESR reviews
(469 in FY19)
Transactions assessed under the ESR Policy by sector
Transport 
18
Manufacturing 15
Technology 18
Agriculture
19
Mining
56
Energy
53
Infrastructure
45
Real estate 
26
Gaming & 
Entertainment
28
Defence 37
Renewables 38
Consumer Finance Products 9
Chemicals & 
Pharmaceutical 
16
Other 13
391 
transactions 
(273 in FY19)
Safe construction of Formosa 1 wind farm in Taiwan
Macquarie’s Green Investment Group (GIG) and its joint venture partners Orsted, JERA 
and Swancor, successfully delivered Taiwan’s first commercial scale offshore wind farm, 
Formosa 1 in late 2019. GIG along with joint venture partners JERA and Swancor 
Renewable have now commenced delivering Formosa 2 through its construction phase. 
Together Formosa 1 and Formosa 2 are important milestones in the realisation of Taiwan’s 
commitment to deliver 5.7 GW of offshore wind capacity by 2025, and together will 
generate enough electricity to power around 500,000 homes in Taiwan.
The 128 MW Formosa 1 project, involving 22 offshore turbines, was completed on time 
having accumulated over 4.33 million hours worked without serious injury to workers and 
a Lost Time Injury Frequency Rate (LTIFR) of 0.23 (comparable to European wind farms).(6)
Macquarie joined the project in 2017 and set an ambitious work health, safety and 
environment (WHSE) vision and strong expectations for the project that reflect our global 
commitment to WHSE. Macquarie fulfilled key management roles in the project with 
technical experts (including the Construction Director, and Risk, Commercial, Contracts, 
WHSE, Permits, Consents and Package Managers) to ensure the success of the project 
in challenging weather conditions in an emerging market.
Working closely with Taiwan government authorities and the local supply chain throughout 
the project, Macquarie has made a significant contribution to Taiwan’s competitiveness 
and ability to deliver world‑class offshore wind developments. The project has been 
important in the development of WHSE standards and culture in Taiwan. It has also 
contributed significantly to expanding industry skills and creating jobs and opportunities 
in the local supply chain.
More detailed information is available at 
macquarie.com/ESG
(6)	 Lost time Injury (LTI) is an incident that results in time lost from work equal to or greater than a full day/shift. The LTI Frequency Rate (LTIFR) is the number 
of Lost Time Injuries resulting in a compensable claim per million workhours.

46
Environmental, Social and Governance
Continued
Environmental and social financing
We have seen further growth in demand for environmental and social finance, often associated 
with infrastructure and energy. This is driven largely by the global energy transition and areas like 
transport and mobility, digital infrastructure, housing and healthcare where social needs are seeing 
client demands for capital, innovative financing solutions and support for new technologies.
Macquarie continues to support our clients seeking to manage 
and respond to sustainability challenges and capitalise on 
emerging opportunities. Drawing on our global network, sector 
expertise and strong record, Macquarie provides a diverse 
range of products and services with an ESG focus to corporate, 
government and institutional clients. Our activities span the 
investment cycle from research on alternative energy to tailored 
capital solutions for the development and construction of 
renewable assets.
Our capabilities
Finance and Develop
	–
Investment in development projects, 
platforms and businesses
	–
Debt and equity investment
	–
Asset financing, including demand side 
management, energy efficient assets, 
distributed generation and battery storage 
and electric vehicles.
Advise
	–
Financial advisory
	–
Debt and equity arrangement
	–
Green financial institution advisory
	–
Green impact assessment, reporting 
and ratings.
Manage
	–
Real asset management, including green 
infrastructure, equity and debt, asset finance 
and real estate
	–
Securities investment management and 
structured access to funds
	–
Equity‑based products and alternative assets.
Research
	–
Specialist ESG and alternative 
energy research
	–
Corporate and investor ESG 
engagement programs.
Trade
	–
Emission allowances and renewable 
energy certificates
	–
Inventory financing for environmental markets 
	–
Derivative financing for renewable 
energy projects
	–
Environmental risk management solutions.
To help finance its growing role in renewables financing, 
Macquarie issued a £500 million Green Loan facility 
in 2018.
In 2019 we released our first Green Finance Impact Report 
detailing how the proceeds of that loan had been used. 
In line with the Asia Pacific Loan Market Association 
(APLMA) Green Loan Principles, the report provides full 
transparency over the projects that have been supported 
by the Green Loan, including how they have been selected 
and their environmental benefits.
More detailed information is available at 
macq.co/GreenReport
Finance, develop and advise
Macquarie has a substantial and longstanding commitment 
to the renewable energy sector, offering a full range of financial 
services and products across the organisation that target 
investments in green infrastructure projects to support the 
transition to a low carbon economy. We service clients across 
various renewable energy technologies including solar, wind, 
waste to energy, bioenergy and energy efficiency.
Through the GIG, a signatory to the UN Principles for 
Responsible Investment (PRI) and Equator Principles, 
Macquarie is dedicating a growing proportion of our resources 
to early‑stage project development to help bridge the gap of 
development stage funding and accelerate the global energy 
transition. Currently, GIG is progressing 25 GW of development 
projects and is focused on delivering that pipeline into 
construction and expanding on it.
Macquarie also advises, sponsors and invests in social 
infrastructure, assisting public and private entities to deliver 
essential services including hospitals, schools, social housing 
and justice facilities.

47
Macquarie Group Limited and its subsidiaries  2020 Annual Report
About
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Financial Report
Further Information
Accelerating the energy transition by bringing innovative projects to life
Floating LiDAR system
With its broad range of technical expertise in green infrastructure, Macquarie’s GIG 
is ideally placed to invest in emerging technologies, products and services and bring 
them to new markets.
In Korea, GIG has been involved in the emerging offshore wind sector by completing 
the installation of a floating LiDAR system for their floating offshore wind project at 
Ulsan with target capacity of 1.5 GW. The LiDAR will provide critical wind resource 
data to support GIG in developing the project. GIG was the first developer to install 
a floating LiDAR in Korean waters.
GIG has also established an active role in the growing global Power Purchase 
Agreement (PPA) market. PPAs act as an alternative source of revenue making 
projects economically viable in low to no‑subsidy environments. To date, GIG has 
originated PPAs supporting over 3 GW of renewables projects with over 15 corporate 
clients and other counterparties globally.
In Europe, GIG acquired the 42 MW Kisielice and the 48 MW Zaj ˛aczkowo onshore 
wind farms in its first two investments in Poland. Generating enough renewable 
electricity to power the equivalent of over 80,000 homes per year, the wind farms 
have a positive impact on the energy mix in a country that is still largely reliant on coal.
GIG has also been active in the solar market, constructing their first project in Spain 
and announcing an agreement with Tesco to install and operate solar PV systems 
at a number of the food retailer’s sites across the UK. This deal will help Tesco work 
towards its commitment to generate 10% of its energy needs onsite by 2030.
In the US, GIG provided debt financing for an innovative battery‑based energy 
storage project in Southern California. The fleet of energy storage systems will be 
used for utility grid services (including flexible and reserve capacity, solar integration 
and voltage management) in addition to retail energy services such as demand 
management, back up generation and power quality enhancement.
BloombergNEF Carbon Score
In 2019, GIG partnered with BloombergNEF (BNEF), combining its pioneering 
Carbon Score methodology with BNEF’s market‑leading renewable energy project 
data to create a tool to assess the green impact of over 40,000 wind and solar 
assets globally.
GIG’s methodology is designed to address the lack of information that makes 
it difficult to integrate climate‑related risks and opportunities into investment 
decisions, by generating a simple and intuitive Carbon Score for renewables assets. 
This enables BNEF clients to quickly, clearly and consistently assess and compare 
the positive carbon impact of individual assets, fund portfolios or PPAs.
Through the partnership, GIG’s Carbon Score has been applied to over 60% 
of the world’s consented wind and solar projects to date. Power off‑takers can 
identify opportunities to purchase high‑impact clean power, while asset owners 
and managers have access to robust data to quantify and report on the contribution 
of renewable energy assets and portfolios to carbon reduction more accurately.

48
Environmental, Social and Governance
Continued
Manage
Macquarie’s asset management businesses are committed 
to evaluating ESG factors in investment decision‑making and 
engaging with investors on ESG issues. Macquarie Asset 
Management (MAM) is a signatory to the UN PRI. Divisions 
within MAM have established specific ESG policies and 
approaches that reflect the ESG considerations associated 
with their business.
This year, Macquarie Infrastructure and Real Assets (MIRA) 
has introduced carbon and energy reporting for its fund 
portfolio companies. These metrics will inform investment and 
asset management decisions and, over time, enable MIRA 
to set targets for the businesses within each fund portfolio 
to achieve a net reduction in greenhouse gas emissions.
Macquarie Investment Management (MIM)’s Equity and Fixed 
Income Investment teams have access to ESG analytical tools 
that provide insight into companies’ and portfolios’ carbon 
footprint, allow them to stress‑test issuers and portfolios for 
different carbon pricing scenarios, and offer guidance regarding 
material ESG factors that affect a given industry. MIM’s Fixed 
Income research team assigns their own proprietary ESG 
risk ratings to new issues that they analyse, and its Emerging 
Markets Debt team has established a differentiated approach 
towards assessing Emerging Market countries on ESG.
$A20.4b
renewable energy assets 
under management 
at 31 March 2020
$A2.0b
assets managed under 
MIM’s targeted Responsible 
Investment strategies
$A3.2b
funds managed in line with 
MIM’s clients’ specific ESG goals 
and screening preferences
MIRA agricultural fund
In 2019 MIRA reached final close of its carbon‑reduction‑focused agricultural fund, 
Macquarie Agriculture Fund – Crop Australia (MAFCA). MAFCA has a mandate to target 
improved on‑farm energy efficiency and reduced carbon emissions through sustainable 
farm management practices. Australia’s Clean Energy Finance Corporation (CEFC) is 
an investor in the fund and is working with MIRA and the Commonwealth Scientific and 
Industrial Research Organisation (CSIRO), a world‑leading scientific institution, to develop 
an emissions reduction benchmarking model to be shared with the broader farming sector.
MIRA has overseen and advised on the construction of an emissions calculation tool known 
as FarmPrint, with development conducted by CSIRO. FarmPrint is an emissions efficiency 
model that allows a farmer to input operational information pertaining to their farm and 
calculate the intensity of their current emissions footprint (i.e. their FarmPrint). The FarmPrint 
model calculates the ratio of emissions relative to land area and the volume of crop output 
that is produced for an individual farm.
By using FarmPrint, farmers will be able to identify and understand which parts of their 
production processes generate the most emissions, guiding decision‑making about which 
technologies and activities should be improved.
Social and affordable housing
Social infrastructure provides access to quality, affordable social services and offers 
investors long‑term opportunities in regulated non‑profit sectors. 
Specialist Disability Accommodation (SDA) was introduced in 2016 under the Australian 
National Disability Insurance Scheme (NDIS) to provide high‑quality housing to 28,000 
Australians with extreme functional impairment and very high support needs. Since 2017, 
Macquarie Specialised Accommodation Solutions (MSAS) has partnered with Summer 
Housing to provide 260 independent living SDA apartments across Queensland, New 
South Wales, Victoria, South Australia and Western Australia.
40 apartments completed along the east coast of Australia and dwellings in Fairfield 
(Victoria) and Newstead (Queensland) are fully occupied. This year, as more of the 
development pipeline completes, tenants will be able to transition into one of the 90 brand 
new, integrated, accessible and purpose‑built apartments within Australian communities.

49
Macquarie Group Limited and its subsidiaries  2020 Annual Report
About
Governance
Directors’ Report
Financial Report
Further Information
Research
It is important to us to keep our clients informed about 
emerging ESG trends. This year, Macquarie has made ESG 
a standard component of all Australian stocks initiations and 
issued specialist ESG reports covering topics such as human 
capital management, waste‑to‑energy, company ESG ratings, 
reporting season and AGM trends.
We also hosted a number of ESG‑themed events, including investor 
forums focused on climate change and waste management.
Top three rating for Australian ESG research by 
institutional investors in 2019 Peter Lee survey
From January 2020, Macquarie entered into a strategic 
partnership with Kepler Cheuvreux, a UN PRI signatory since 
2005. The partnership will expand our European expertise and 
provide our clients with access to a larger pool of alternative 
energy research.
In Asia, we are responding to increased client demand for 
ESG research with an expanded ESG team that will work 
alongside our existing equity and macro research teams. 
We are enhancing our existing governance screens on all stock 
initiations to include more in‑depth examination of social and 
environmental issues that can impact investment performance 
in the region.
Across our equity research, our ESG initiatives leverage 
strongly off Macquarie’s deep sector expertise in areas such 
as renewable energy, agriculture and technology.
Trade
The trading business within Commodity Markets and Finance 
(CMF) provides wholesale energy market access and hedging 
for a wide range of renewable energy suppliers, retailers and 
producers, such as waste‑to‑energy and biomass power plants. 
CMF enables clients to hedge their increasing exposure to 
European and global carbon emissions products, in particular 
it is one of the leading hedge providers in the European Union 
Emissions Trading System.
CMF is investing in leading infrastructure to give clients better 
market access, such as the recent strategic funding for Xpansiv 
CBL Holding Group (XCHG). XCHG is the first significant data 
and commodities platform that generates data on several 
factors including human and natural capital, enabling greater 
transparency to support trading in sustainable commodities.
More detailed information is available at macquarie.com/ESG 
and macq.co/MIRASustainability

50
Environmental, Social and Governance
Continued
Climate change
Climate change presents one of the most significant challenges for society and the global 
economy. The financial sector has a critical role to play, alongside government, businesses, 
investors and the community, to support the transition to a low‑carbon and climate resilient 
economy. As a global financial services provider, we are committed to using our expertise 
in infrastructure, renewable energy, clean technology and environmental markets to connect 
global capital to opportunities that support this transition.
We anticipate that our businesses will adapt, adjust and continue to seek opportunities in response to the decarbonisation 
of the global economy.
Alongside the action being taken by our businesses, Macquarie continues to support the important work of the Task Force 
on Climate‑related Financial Disclosures (TCFD) and is actively implementing its recommendations based on the four key pillars 
of climate change governance; strategy; risk management; metrics and targets, as outlined in the table below.
TCFD Implementation Summary 
Climate change governance
Strategy
Progress to end of FY2019
	–
Board responsibility for approving ESG 
framework and key ESG policies
	–
BGCC oversight and monitoring effectiveness 
of ESG framework, including approach to 
climate change risk management
	–
Internal Global Green Committee to promote 
and coordinate climate change mitigation 
and adaptation opportunities.
	–
Connection of global capital with climate mitigation opportunities using our deep 
understanding and expertise in the renewable energy and clean technology sectors
	–
Supporting the MGL CEO’s role as a founding member of the United Nations’ Climate 
Finance Leadership Initiative (CFLI) and a Commissioner of the World Bank’s Global 
Commission on Adaptation (GCA)
	–
Assisting in the development of common international standards for sustainable 
finance through membership of the UK’s Green Finance Task Force, and other relevant 
advisory groups
	–
Extending GIG’s geographic scope to support the growth of the green economy globally. 
GIG is now active in over 25 markets across EMEA, Asia, North America and ANZ
	–
Supporting energy retailers in the UK by providing funding solutions for 
government‑mandated roll out of smart meters
	–
Carbon financing and trading to support voluntary and regulated emissions 
trading schemes
	–
Carbon neutral since 2010.
Progress during FY2020
	–
CRO nominated as accountable executive
	–
Established climate risk steering committee
	–
Expanded the scope of the Global Green 
Committee and enhanced briefing to Board, 
BGCC and Senior Management.
	–
Worked alongside the UN Green Climate Fund and other public finance bodies to support 
emerging market countries to create conditions conducive for green finance
	–
Utilised founding membership of the US Alliance for Sustainable Finance
	–
Delivery of CFLI and GCA reports to the United Nations during UN Climate Week
	–
Continued GIG growth into development stage investment and using PPAs to progress 
projects without public subsidy
	–
Evolved asset financing opportunities to support clients to transition vehicle fleets 
to ultra‑low emissions.
Focus beyond FY2020
	–
Ongoing implementation of relevant regulatory 
guidelines on climate risk governance
	–
Continue to refine and embed climate 
considerations within existing risk management 
framework
	–
Continue to enrich Board and executive insight 
into and visibility of climate‑related risks and 
opportunities.
	–
Continue to build internal expertise and capacity to support the energy transition into 
new markets and across new technologies
	–
Evolve approaches for integration into business strategy planning
	–
Work alongside businesses in further incorporating climate risk in product design 
and engaging with clients on climate risk
	–
Source 100% renewable energy for Macquarie premises by 2025 in line with 
our RE100 commitment.

51
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About
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Further Information
Risk management
Metrics
	–
Incorporated climate‑related risks into environmental and social risk 
and credit analysis for carbon intensive sectors
	–
Established approaches to transition risk analysis in the oil, gas, coal 
and power generation sectors of our lending and equity portfolios
	–
Conducted scenario analysis for these sectors representing transition 
pathways to 2°C warming and 3–4°C warming by 2100.
	–
$A7.9 billion invested or arranged in renewable energy and energy 
efficiency projects in FY2019
	–
13,530 MW of renewable energy assets in operation or under 
management at 31 March 2019(7)
	–
FY2019 emissions per capita reduced by 33% from FY2010 baseline 
(11% increase from FY2018)
	–
FY2019 absolute emissions reduced by 32% from FY2010 baseline 
(15% increase from FY2018)
	–
FY2019 scope 2 direct emissions reduced by 35% from FY2009 
baseline (10% reduction from FY2018).
	–
Included climate change risk within Group Risk Appetite and Risk 
Management Statements
	–
Generated physical and transition climate risk vulnerability heat maps 
for lending and equity portfolios across sectors and geographies
	–
Conducting transition risk analysis of lending and equity portfolios 
for the oil, gas, coal and power generation sectors, representing 
pathways to 1.5°C and 4oC warming by 2100, largely completed
	–
Analysing physical risk of Macquarie’s mortgage portfolio, 
representing pathways to 1.5°C and 4°C warming by 2100, 
in progress
	–
Evolved understanding of carbon emissions for the MIRA 
infrastructure assets.
	–
$A9.0 billion invested or arranged in renewable energy and energy 
efficiency projects in FY2020
	–
12,800 MW of renewable energy assets in operation or under 
management at 31 March 2020(7)
	–
FY2020 emissions per capita reduced by 45% from FY2010 baseline 
(18% reduction from FY2019)
	–
FY2020 absolute emissions reduced by 42% from FY2010 baseline 
(16% reduction from FY2019)
	–
FY2020 scope 2 direct emissions reduced by 40% from FY2009 
baseline (8% reduction from FY2019)
	–
Final close approaching on a $A1 billion agriculture fund targeting 
improvements in on‑farm energy efficiency and reducing 
carbon emissions.
	–
Continue integration of climate‑related risks through our risk 
management framework
	–
Refine scenario analysis and seek to extend to other industry sectors, 
where relevant
	–
Evolve integration of scenarios into existing risk processes 
and stress testing
	–
Assess vulnerability and resilience of our business premises 
to physical climate risks.
	–
A further 20% reduction in electricity use by 2023  
(from 2014 baseline)
	–
Source 100% renewable energy for Macquarie premises by 2025 
in line with our RE100 commitment
	–
80% of employees in sustainably‑rated premises(8)
	–
Ongoing enhancement of TCFD disclosures to be consistent with 
all relevant Task Force recommendations
	–
A commitment to develop 20 GW of renewable energy projects over 
the next five years, with 4 GW of this in non‑OECD emerging market 
countries.
To further refine understanding of the potential vulnerabilities to climate change risks for Macquarie, we have developed physical 
and transition risk heat mapping for our lending and equity portfolios under 1.5°C and 3–4°C scenarios. 
This analysis is intended to provide an assessment of relative exposures to physical and transition risks associated with each 
selected scenario across industry sectors and geographies. The analysis to date indicates the impacts on each of the sectors 
to which we are presently exposed would primarily be felt after 2030, and that the impact on Macquarie would not be considered 
material given the diverse nature of our portfolio, the short time horizon of our exposures compared to these scenarios and the 
limited size of our existing lending exposure to each sector. A more detailed report will be published as analysis progresses during 
the FY2021 year.
(7)	 MW of renewable energy assets in operation or under management reflect 100% generating capacity of each asset, not the proportion owned/managed 
by Macquarie. 
(8)	 LEED Gold, BREEAM Good, 5 Star Green Star or equivalent.

52
Environmental, Social and Governance
Continued
FY2020 scenario analysis
The use of scenario analysis, in the form of physical and transition risk heat mapping across our lending and equity portfolios, 
has refined our understanding of the potential vulnerabilities to climate change risks for Macquarie. These heat maps are intended 
to provide an assessment of relative exposures to physical and transition risks associated with various scenarios across industry 
sectors and geographies, based on the current composition of the portfolio assuming no changes across all time horizons.
FY2020 energy sector exposures
1.3% of total funded loan assets(9) 
and 2.2% of total funded equity investments(10) 
exposed to conventional energy at 31 March 2020
13.6% of total funded equity investments(10) 
exposed to renewable energy at 31 March 2020
As a managed global energy transition continues, it is clear 
that there will be an ongoing role for conventional energy, 
including gas, for some time as the deployment of renewable 
energy rapidly grows. Macquarie has played a leading role 
in facilitating the shift toward renewables and the wider 
decarbonisation of the global economy. Particular focus was 
placed on trying to address the various challenges that remain 
to full transition including energy storage, land use, the need for 
a greater number of investible projects, particularly in emerging 
economies, and greater levels of investment in adaptation and 
resilience projects. In FY2020 these efforts continued globally, 
see pages 18–19 of this Annual Report. 
The table below provides Macquarie’s equity and loan 
portfolio exposures to the coal, oil, gas and renewables 
sectors as at 31 March 2020.
Equity and loan portfolio exposures to the oil, gas, coal 
and renewables sectors:
FY19
FY20
Loan 
assets
$Ab
Equity 
investments 
$Ab
Loan 
assets
$Ab
Equity 
investments
$Ab
Oil 
0.7
0.2
0.5
0.1
Gas
0.4
—
Coal
0.2
–
0.2
—
Renewables
–
0.9
—
1.0
Transition risk
There are numerous possible future pathways for the world to reach a particular climate outcome. We selected three divergent 
scenarios for transition risk, representing plausible transition pathways to 1.5°C warming by 2100 relative to pre‑industrial levels 
(including an orderly and a disorderly transition) and a 3–4°C warming by 2100 relative to pre‑industrial levels (or baseline scenario). 
These were based on scenarios that informed the Intergovernmental Panel on Climate Change’s (IPCC) Special Report on 1.5°C 
and used the Potsdam Institutes’ Advance REMIND models.
In selecting these scenarios, a detailed review was conducted of a wide range of public climate scenarios. Our selection was 
based on models that covered various climatic outcomes; provided information for the sectors and geographies most relevant 
to Macquarie’s exposures; are widely recognised and used by the industry; and are regularly updated.
Scenario assumptions
1.5°C – ORDERLY
1.5°C – DISORDERLY
BASELINE SCENARIO (3–4°C)
Time horizons
2025, 2035, 2050
Policy
Immediate policy action consistent 
with limiting warming to 1.5°C 
by 2100.
Policy action is delayed until after 
2030, from which point action is 
taken to limit warming to 1.5°C 
by 2100.
The (Intended) Nationally 
Determined Contributions to the 
Paris Agreement by 2030 are 
implemented, with an extrapolation 
of implied effort beyond 2030.
Energy
By 2050, total electricity generation 
comprises 91% renewables and 
primary energy demand comprises 
68% renewables.
Renewables comprise 19% of 
primary energy demand in 2030 
but reach similar levels to the 
orderly scenario by 2050.
By 2050, total electricity generation 
comprises 76% renewables and 
primary energy demand comprises 
31% renewables.
(9)	 Total funded loan assets include loan assets held at amortised cost adjusted to exclude certain items such as assets that are funded by third parties with 
no recourse to Macquarie. In addition, loan assets at amortised cost per the statutory balance sheet are adjusted to include fundable assets not classified 
as loans on a statutory basis (e.g. assets subject to operating leases). Total funded loan assets amount to $A86.5 billion as at 31 March 2020 ($A82.3 billion 
as at 31 March 2019).
(10)	 Equity investments are reported on a funded balance sheet basis and therefore exclude equity hedge positions and non controlling interests. Macquarie’s 
carrying value of its interest in East Anglia ONE Limited is $A2.8 billion, which has been partially funded with asset-specific borrowings of $A2.3 billion at 
31 March 2020. Total funded equity investments amount to $A7.4 billion as at 31 March 2020 ($A5.9 billion at 31 March 2019).

53
Macquarie Group Limited and its subsidiaries  2020 Annual Report
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Further Information
For each scenario, we analysed the vulnerability of our lending and equity portfolios at 30 September 2019, using modelling to assess 
the impact of climate transition at a sector and regional level. In line with industry practice, our modelling assumed that there were no 
changes to the portfolio across all time horizons, which will not be the case given the relatively short duration of our balance sheet 
investments and lending. Analysis of our lending portfolio showed that less than 10% could be exposed to sectors with a higher 
vulnerability to transition risk under the Orderly Scenario in 2025, rising but below 20% by 2050. Under the Disorderly Scenario, 
a similar proportion of the lending portfolio could be exposed to sectors with a higher vulnerability to transition risk by 2050. 
For our equity portfolio, the analysis indicated that under a Disorderly Scenario, less than 5% could be exposed to sectors that 
by 2050 demonstrate a higher vulnerability to transition risk while under an Orderly Scenario this would be around 5%. 
The sectors most negatively impacted by 2050 as a result of carbon pricing and related policies include fossil fuel intensive industries 
such as coal mining, carbon intensive power generation, and oil and gas exploration and production. The utilities sector experiences 
a high variation in impact, with the least carbon intensive companies experiencing positive growth. Within the transport sectors, 
air transportation is more affected than shipping, with road and rail transportation least affected due to the relative availability 
of electrification.
Regional variations were identified at a sector level, influenced by the characteristics of the companies operating in each region 
including emissions intensity and market variations.
An example of the transition risk heat mapping is presented in the following graph. This reflects the potential transition risk impact 
at a global level for key sectors and is based on the average impact across all companies analysed within each sector. The heat map 
presents the anticipated transition risk for these industry sectors and does not reflect Macquarie’s exposure to these sectors, which 
is detailed on page 52.
TRANSITION RISK
ORDERLY SCENARIO
DISORDERLY SCENARIO
WORLD
WORLD
Macquarie Sector Groups
2025
2035
2050
2025
2035
2050
Agriculture
Consumer Staples (including Food and Beverages)
Commercial and Professional Services
Consumer Discretionary 
Consumer Discretionary: Automobiles 
Consumer Discretionary: Automobiles – Electric Vehicles
Financials
Health and Education
Technology and Telecommunications
Aircraft and Airlines
Rail Transport 
Road Transport
Shipping
Chemicals
Heavy Building Materials 
Metals and Mining
Metals and Mining (Green Minerals)
Coal Mining (Coking)
Coal Mining (Thermal)
Gas Exploration and Production
Oil Exploration and Production
Capital Goods
Capital Goods: Renewables Equipment
Property and Real Estate
Utilities: Power and Gas
Utilities: Power Generation – High Carbon(11)
Utilities: Power Generation – Low Carbon
Utilities: Water and Sewerage
Legend – Transition Gradient scale 
Positive profit impact 
No or limited profit impact
Negative profit impact
(11)	 	Represents those companies with emissions intensity above the median and low carbon represents those companies with emissions intensity below 
the median.

54
Building on the heat mapping, we are conducting scenario analysis of carbon intensive sectors using a combination of portfolio 
level analysis and company level analysis to assess the potential financial implications of the transition scenarios. Initial analysis 
is presented below with more detailed reporting available later in the year. 
Oil and Gas
Coal
Transition risk 
scenario analysis(12) 
By 2050 under both scenarios, lending portfolio average default 
rates are forecast to double compared to the baseline.
Estimated losses for the equity portfolio are similar under both 
scenarios and could be up to 50% of the current asset value by 2050.
The overall impact on Macquarie under both scenarios would be 
limited and would not be considered material given the size of our 
existing total lending and equity exposures. We note that the analysis 
assumes no changes to the portfolio across all time horizons, which 
would not in practice be the case.
Under both scenarios, lending portfolio average 
default rates are anticipated to rise by almost five 
times, peaking in 2030 under the Orderly Scenario 
and peaking in 2050 under the Disorderly Scenario.
Equity portfolio – De minimis exposure to this sector.
The overall impact on Macquarie would not be 
considered material given the limited size of our 
existing lending exposure to this sector.
Learnings and 
next steps
Macquarie acknowledges the benefits of the combined portfolio level (top‑down) and company level (bottom‑up) analysis that 
was undertaken in FY2020 and will build on this as we continue to refine our approach to climate‑related scenario analysis. 
The company level approach highlighted limitations with the availability and granularity of data and the need to continue 
working closely with our clients as part of ongoing relationships to support their plans to reduce their carbon intensity. 
Physical risk
We selected two contrasting warming scenarios for the physical 
risk analysis corresponding to global average temperature 
increases of approximately 1.5°C warming by 2100 and 4°C 
warming by 2100 relative to pre‑industrial levels. These are 
derived from the output of climate models driven by the 
warming scenarios of Representative Concentration Pathways 
(RCP) 2.6 and RCP 8.5. The RCP scenarios are the greenhouse 
gas concentration trajectories adopted by the IPCC. 
Three time horizons were selected: including one to capture 
the present day (2020), one for the medium term (2030s), and 
one for the longer term (2050s).
The physical risk scenarios and time horizons used in the 
analysis are shown in the table below.
1.5°C
4°C
Time horizons
2020, 2030s, 2050s
IPCC Representative 
Concentration Pathway (RCP)
RCP 2.6
RCP 8.5
Warming by 2100 relative to 
pre‑industrial levels
1.6°C
4.3°C
Using these scenarios, climate datasets were defined that 
aligned with the modelling time horizons. The datasets 
included chronic climate changes, extreme weather events 
and climate‑related hazards such as wildfires. We then used 
sub‑sector vulnerability indicators that consider both direct and 
indirect impacts of physical climate risks to overlay the data with 
our equity and lending portfolios to assess the physical risk 
vulnerabilities of these portfolios.
The heat maps provide a strategic tool to identify potential 
areas of vulnerability and will be used to help inform further 
analysis and investment decision making in our business as 
lending and equity portfolios continually evolve.
The findings of this exercise were consistent with our 
expectations that climate hazards are anticipated to increase 
across the three time horizons, with the most severe impacts 
occurring after 2050. Country‑level analysis has resulted in 
some smoothing of climatological variations which is more 
pronounced across large and diverse geographic regions such 
as the US or Australia. Consequently, both the US and Australia 
were assessed to have relatively higher physical risk profiles in 
comparison with other countries, reflecting that the anticipated 
changes in climate‑related hazards are above the global 
average for these countries. While the heat map indicated 
variations in vulnerabilities across sectors and sub‑sectors, 
these were highly dependent on the country of exposure.
Detailed physical risk scenario analysis of our retail mortgage 
portfolio in Australia is in progress and will be completed later 
in the year.
Supporting global activity to better understand, 
mitigate and adapt to the impacts of climate change
Macquarie continues to support global efforts to better 
understand the impact of climate change on society, our clients 
and our business. This involves a diverse range of activity 
including engaging clients and assets; research projects into 
areas such as reducing agricultural emissions with CSIRO; 
active engagement in initiatives like TCFD; and initiating 
collaborative working with other financial institutions through 
the CFLI and broader multi‑stakeholder initiatives like the GCA. 
Through this engagement, Macquarie is working to improve our 
understanding of the risks associated with climate change while 
also pursuing opportunities to work with clients to advance 
mitigation and adaptation.
More detailed information on our approach to 
Climate Change is available at 
macquarie.com/ESG
Environmental, Social and Governance
Continued
(12)	 Scenario analysis was completed at 30 September 2019 assuming a static book with no changes in composition over the modelling time horizons and 
does not include impacts associated with COVID‑19.

55
Macquarie Group Limited and its subsidiaries  2020 Annual Report
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Financial Report
Further Information
Sustainability in direct operations
Macquarie’s direct environmental and social impacts predominantly relate to the resources we 
consume in our offices, data centres, air travel, and our procurement activity. We seek to manage 
these impacts by monitoring and reducing resource use, maintaining innovative and sustainable 
workplaces, maintaining carbon neutrality and improving the sustainability of our supply chain.
This year, Macquarie launched its 2025 Sustainability Plan, which 
formalises our corporate sustainability commitments with specific 
and measurable targets across environmental and social pillars.
Emissions from energy use and flights
This year, Macquarie’s absolute emissions decreased by 
16% from FY2019 attributed to a reduction in Scope 2 and 
3 emissions. Scope 1 emissions are not considered to be 
material, comprising 0.6% of Macquarie’s total emissions.(13)
FY2020 Scope 2 emissions reduced 8% from FY2019, due 
to a continued focus on energy use in all Macquarie premises 
globally, including retrofit and fit‑out projects that have delivered 
more energy efficient premises and our IT cloud transformation 
strategy that enables rationalisation of servers. Macquarie’s 
corporate offices are fitted with water and energy efficient 
fittings and fixtures and are continually monitored for energy 
performance, environmental quality and staff comfort.
Macquarie sourced 18% of global electricity from renewable 
power in FY2020, up from 6% in FY2019, in line with our 
RE100 commitment to reach 100% by 2025.
This year, energy audits were completed in EMEA in response 
to the European Union Energy Efficiency Directive requirements.
Macquarie’s FY2020 Scope 3 emissions decreased by 
20% compared with FY2019 due to a decrease in flight miles. 
We continue to encourage the use of virtual conferencing 
that facilitates collaboration and helps reduce the need for 
business travel.
Carbon neutrality
Since 2010, Macquarie has maintained our carbon neutral 
commitment by working to reduce and offset emissions. 
In FY2020, to meet this commitment, Macquarie purchased 
and retired a portfolio of Australian Carbon Credit Units (ACCUs) 
and other voluntary carbon offsets that meet the Gold Standard 
or Verified Carbon Standard and Climate, Community and 
Biodiversity Standard. The projects were selected based on 
quality and verifiable emissions reductions. Supported by the 
sale of carbon credits on international markets, they provide 
solutions to reduce carbon emissions in each of the regions 
in which Macquarie operates.
Carbon and energy data for FY2020
Scope 1 (TCO2-e)
Scope 2 (TCO2-e)
Energy (TJ)
Scope 3 (TCO2-e)
Baseline(14)
FY18
FY19
FY20
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
0
50
100
150
200
250
Carbon emissions in TCO2-e
Energy use in TJ
(13)	 PwC has provided limited assurance over selected information for the FY2020 reporting period as detailed in its independent assurance report available 
on Macquarie’s website. The assurance report includes a table outlining Macquarie’s carbon and energy data for FY2010 to FY2020 as well as a definition 
of the different scopes. 
(14)	 Note that the baseline for Scope 2 electricity emissions is FY2009 while, due to data availability, the baseline for Scope 3 business air travel emissions 
is FY2010.

56
Environmental, Social and Governance
Continued
Resource efficiency
We continue to raise staff awareness and improve recycling 
rates across our regional headquarters, including the 
successful completion of a program to eliminate single use 
cups at 1 Martin Place, Sydney. In all major Sydney offices and 
our London headquarters, we reached an average recycling 
rate of 44%.
In FY2020, paper use decreased by 12% compared to FY2019. 
Paper use data is collected across the majority of Macquarie’s 
offices, representing approximately 90% of Macquarie staff. 
Managed print was rolled out to 100% of Macquarie offices. 
The environmental impacts of paper use are also being 
addressed through an ongoing commitment to use certified 
sustainable or recycled paper stock.
Sustainable procurement
In FY2020, Macquarie rolled out a new Supplier Governance 
Policy that includes a risk‑based approach to environmental 
and social due diligence in our supply chain. In addition, 
Macquarie includes environmental and social risk requirements 
within commercial agreements and tender documents.
Over the last two years, over 800 strategic suppliers responded 
to Macquarie’s ESG questionnaire developed to assess their 
ESG credentials. We continued to communicate our Principles 
for Suppliers and implemented an ongoing risk‑based 
assurance programme which involved an in‑depth assessment 
and onsite meetings with suppliers exposed to high human 
rights risks based on country of operation and service category.
Macquarie responded to the transparency requirements of 
the UK Modern Slavery Act 2015, producing our fourth slavery 
and human trafficking statement that sets out the steps taken 
to identify and mitigate the risk of modern slavery within the 
supply chain and business operations.
In FY2020, Macquarie spent over $A8 million with 
minority‑owned businesses in our tier one supply chain.(15)
Further information is available at macquarie.com/ESG
The Principles for Suppliers are available at
macquarie.com/suppliers
The UK Modern Slavery Transparency Statement is available at 
macquarie.com/MSA19
(15)	 Includes qualified businesses from traditionally under‑represented groups such as companies owned and operated by minorities, women, 
Indigenous Australians and small business.

57
Macquarie Group Limited and its subsidiaries  2020 Annual Report
About
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Directors’ Report
Financial Report
Further Information
Client experience
Clients are at the core of our business. They put their trust in Macquarie by choosing to 
work with us, and we seek to maintain this trust by focussing on delivering exceptional client 
experiences and outcomes.
Macquarie relies on building and maintaining enduring 
relationships with our co‑investors, corporate, institutional, 
government and retail clients across all our businesses. 
Client feedback shapes business decisions
Our specialist teams engage with our clients through a 
variety of channels including one‑to‑one contact, video and 
online, knowledge‑based conferences and events, and other 
insight‑based communications.
Macquarie Capital’s diverse mix of advisory, capital markets 
and principal investing capabilities results in a broad array of 
client and stakeholder relationships, ranging from close and 
collaborative relationships with partners and co‑investors 
to more intermittent and transaction‑focused contact. 
Across the business, clients’ needs are central to everything 
Macquarie Capital does, and we aim to become a trusted 
adviser and long‑term partner. The team regularly collates 
informal feedback, as well as formal feedback through tailored 
engagement sessions. This feedback is used to help us 
evaluate the strength of our client relationships and identify 
opportunities for improvement and innovation. 
In FY2020, to better meet the needs of our clients, MAM 
brought together product distribution teams from across its 
platform to form a single, integrated client service function. 
The change has enabled MAM to provide an enhanced product 
and service offering to its institutional investor base across its 
global suite of alternatives, equities, and fixed income solutions. 
During the period, we continued to invest in our technology 
to improve the client experience, including through the 
development of our client portal and the upgrade of our digital 
presence. We regularly survey our clients to better understand 
their perspectives and investment needs. For example, in 
response to growing interest in sustainability, MAM held its first 
client survey on the subject during FY2020. The results from 
this survey are helping to inform ongoing work to enhance 
our sustainability‑focused offerings and reporting across our 
infrastructure and real asset funds.
In Commodities and Global Markets, clients range from global 
corporates and institutions through to small and medium 
sized enterprises. We seek to provide a consistent offering 
that is client focused, puts risk management at the centre of 
what we do, and leverages the specialist technical expertise 
of our people. We invest in having deep, longstanding client 
relationships which is demonstrated by 85% of our client 
revenue being generated from existing relationships.(16)
Macquarie’s Banking and Financial Services (BFS) business 
uses client insights to prioritise new initiatives and shape how 
we deliver products and services. For example, BFS has 
embedded Human Centred Design (HCD) and proactively 
measures customer advocacy at specific interaction points 
to understand the experience clients have with Macquarie. 
Combined with other insights, BFS then makes data‑based 
decisions to ensure we are building the right experiences 
for clients.
Supporting clients in times of need
We understand the impact unexpected life events can have 
on our clients. In addition to offering tailored assistance and 
support to those experiencing financial difficulty, BFS has 
embedded support measures to ensure we identify clients 
experiencing vulnerability, and respond with extra care, respect 
and compassion. All BFS staff are now trained in how to identify 
and support clients experiencing vulnerability. BFS’ holistic 
approach has also included enhancing our financial assistance 
program and implementing proactive response programs to 
support clients impacted by natural disasters and emergencies. 
This also includes a comprehensive support package to 
assist clients and businesses impacted by the evolving 
COVID‑19 situation.
Recognising the potential impact of COVID‑19 and movements 
in global oil prices on listed and unlisted assets, MAM delivered 
a proactive engagement strategy to assist clients as they 
navigated the resulting market volatility. MAM supplemented its 
regular reporting for most of our infrastructure and real asset 
funds with additional timely information and provided clients 
with access to internal expertise so they could make informed 
decisions about their investment strategies.
(16)	 For the nine months ended 31 December 2019, excludes Specialised and Asset Finance (SAF) and Cash Equities.

58
Environmental, Social and Governance
Continued
Fair and efficient resolution of issues
Macquarie has a robust complaint management framework 
across our retail banking business to ensure client matters 
are resolved quickly and fairly. Our teams analyse complaint 
data to understand the root causes of complaints so they 
can be addressed at their source, with oversight from senior 
management. In FY2020, 91% of BFS complaints were 
resolved within five business days.
Macquarie’s Customer Advocate is independent of the 
operating, risk and support groups including our internal 
dispute resolution teams and reports directly to the CEO. 
The Customer Advocate’s role is to promote fair and 
reasonable customer complaint outcomes, to review and 
assist with determining escalated customer complaints, 
and to provide a customer‑centric voice when making 
recommendations to improve customer experience.
Banking Code of Practice
Reflecting our commitment to our clients, Macquarie Bank 
Limited subscribed to the Australian Banking Association 
2019 Banking Code of Practice (the Banking Code) on 1 July 
2019, as updated effective 1 March 2020. Implementation 
of the Banking Code has involved the review and alignment 
of impacted products and services, disclosures, policies 
and processes. Training was delivered to all BFS staff and 
Banking Code compliance remains an ongoing focus area 
with embedding and monitoring work ongoing to ensure strong 
understanding and awareness across the business.
Further information is available at macq.co/CompanyBFS
Further information on the Customer Advocate office 
is available at macquarie.com/customer-advocate
The Banking Code of Practice can be downloaded at 
macq.co/TheCode

59
Macquarie Group Limited and its subsidiaries  2020 Annual Report
About
Governance
Directors’ Report
Financial Report
Further Information
People and workplace
Macquarie recognises that our most important assets are our people. We recruit talented 
individuals and encourage them to realise their potential in an environment that values excellence, 
innovation and creativity. By supporting their development and wellbeing, we ensure Macquarie 
continues to meet the highest standards and serves the evolving needs of our stakeholders.
Leadership, talent and culture
Macquarie is continuously building a culture of high performing 
talent by developing our people. We focus on our leaders 
and their leadership impact as they are our culture carriers. 
They set the tone for our people and directly influence the way 
people think and act. We seek to attract the right talent and 
develop our people to reach their full potential in order to deliver 
measurable business outcomes that benefit our clients, our 
shareholders and our people.
78%
of Macquarie’s 320 Executive Directors 
completed or are currently completing the 
Macquarie Executive Director Leadership Program 
(EDLP) since its inception
This program builds the capability of leaders to better 
understand their impact and to inspire and develop others. 
It also equips them to address the pace and complexity of 
change and to cultivate and support a culture of innovation.
289
Division and Associate Directors completed the 
Macquarie Director Program (MDP) in the year 
(1,930 since its inception in 2014)
The MDP is designed to accelerate the development of 
directors through building the breadth and depth of their 
capabilities with the benefit of achieving faster outcomes 
and improved results. 
To understand the future of leadership at Macquarie, a strategic 
project was undertaken this year to develop a point of view 
on the leadership attributes required by our future leaders. 
This point of view, developed through an extensive review of 
academic literature and interviews with diverse stakeholders, 
will inform the design of new leadership development initiatives.
For the broader organisation, Macquarie supports the career 
development of its people through a number of manager and 
strategic leadership programs and investment in executive 
coaching and mentoring initiatives.
Learning opportunities are provided to all staff, to meet the 
needs of Macquarie’s diverse talent base and to provide the 
workforce with the skills to realise future opportunities in a 
rapidly changing environment. Development areas range 
across both professional and personal skillsets including 
self‑awareness and leadership impact, wellbeing, cultivating 
environments of inclusion, innovation, technical mastery and 
effective collaboration to identify opportunities and support 
each other.
3,000 classroom events and 
350,000
online courses and knowledge tests 
delivered to staff in FY2020
During the employee onboarding and orientation process, 
Macquarie offers a series of learning and development activities 
(including events hosted by the CEO) designed to communicate 
and embed the Macquarie culture and reinforce the ongoing 
importance of meeting behavioural expectations and effective 
risk management across all our businesses and regions.
Regular appraisals, including goal setting and ongoing career 
development, are a key part of performance measurement and 
talent management, and support Macquarie’s merit‑based 
culture. As well as encouraging regular and ongoing feedback 
with managers, Macquarie requires all staff to have at least one 
formal appraisal session with their manager.
Alongside the structured learning and development curriculum, 
Macquarie recognises and encourages the social and 
developmental benefits of skilled volunteering and wider 
community engagement by staff. During FY2020, reciprocal 
development initiatives between staff and non‑profit organisations 
have been built through the Macquarie Group Foundation.

60
Workplace health, safety and wellbeing
Macquarie recognises the value of effective WHS performance 
as an integral part of how we successfully manage our 
business. We seek to operate harm‑free environments through 
maintaining high WHS standards and performance across all 
our activities globally. We promote an integrated approach to 
safety and wellbeing matters and encourage our staff to speak 
up on any actual or potential health and safety issues.
Macquarie has a global WHS management framework that aims 
to prevent workplace incidents and injuries. This framework 
allows for the identification and assessment of hazards and 
application of appropriate control measures to prevent health 
and safety risks arising from work activities. Macquarie uses 
forums with health and safety representatives and staff to 
consult and communicate relevant information on health and 
safety matters. Macquarie also provides staff with appropriate 
training on safe work practices.
0.5
Lost Time Injury Frequency Rate (LTIFR) in the year 
ended 31 March 2020(17)
Macquarie’s holistic wellbeing program, Macquarie Plus, 
provides a comprehensive range of initiatives and benefits 
designed to equip our people with the tools and resources 
to own their wellbeing. With a strong focus on encouraging 
staff to balance all aspects of their lives. Macquarie Plus 
comprises four key elements:
	–
People: providing our people with access to a range of 
benefits and initiatives designed to support their physical, 
psychological and financial wellbeing through educational 
seminars, health screening, fitness classes and access 
to psychological support services
	–
Lifestyle: encouraging staff to make the most of the 
rewarding and inclusive culture at Macquarie and helping 
them to integrate life and work through initiatives from 
community groups through to school holiday programs
	–
Tools: promoting technology platforms to enable staff 
to tap into wellbeing information regardless of location 
or time of day 
	–
Space: designing places that are not only flexible and 
sustainable, but that also encourage collaboration and 
connection and offer staff choice in how they work.
10.9% global voluntary turnover rate(18)
The retention of our employees is a key indicator of our 
inclusive culture where people feel engaged and enabled.
Diversity & Inclusion
Macquarie’s ongoing commitment to workforce diversity 
& inclusion ensures that our business remains innovative 
and sustainable and continues to meet the evolving needs 
of our clients.
Macquarie’s broad range of experiences, skills and views are 
key strengths and critical to the wide range of services we 
deliver across a global operating environment.
Information on our approach to diversity & inclusion is provided 
in the Diversity & Inclusion section of this Annual Report
Further information is available at macquarie.com/ESG 
and macquarie.com/careers
Environmental, Social and Governance
Continued
(17)	 Lost time Injury (LTI) is an incident that results in time lost from work equal to or greater than a full day/shift. The LTI Frequency Rate (LTIFR) is the number 
of Lost Time Injuries resulting in a compensable claim per million workhours. 
(18)	 Rolling 12‑month voluntary turnover with leavers for the 12 month period divided by average headcount for the same period.

61
Macquarie Group Limited and its subsidiaries  2020 Annual Report
About
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Directors’ Report
Financial Report
Further Information
Business conduct and ethics
Macquarie’s organisational culture drives the way we do business and our expectations of our 
staff are outlined in the Code of Conduct. Our approach is based on three long‑held principles: 
Opportunity, Accountability and Integrity. 
Macquarie’s Risk Culture and Conduct team is responsible for:
	–
objectively assessing the risk culture of Macquarie’s 
businesses and functions, monitoring and providing insight 
into risk culture indicators, and advising on opportunities 
for positive change
	–
embedding understanding and supporting the identification 
and management of conduct risks across the group, in line 
with the approach outlined in the Macquarie‑wide Conduct 
Risk Management Framework.
Macquarie’s Integrity Office provides an internally independent 
and confidential point of contact for Macquarie staff and 
external parties to safely raise concerns about improper 
conduct. It is responsible for implementing the Whistleblower 
Policy and for managing the investigation of concerns raised 
under this policy, including any raised through the Macquarie 
Staff Hotline. The Integrity Office reports to the Macquarie CEO 
and provides regular reports to the BGCC.
The Integrity Office also promotes high ethical standards 
and good decision‑making through communications and 
engagement with staff.
Information on our risk culture and approach to conduct 
risk is provided in the Risk Management section of this 
Annual Report
Tax transparency
Macquarie acknowledges stakeholder expectations for 
increased transparency on tax‑related matters. Macquarie 
is a signatory to the Australian Board of Taxation’s voluntary 
Tax Transparency Code.
More detailed information on Macquarie’s approach 
to tax transparency is available at 
macq.co/FY20taxtransparency
Political contributions and engagement
Macquarie supports democratic systems of government. 
We believe we need to be engaged and understand the 
evolving policy and regulatory environments in Australia and 
other jurisdictions in which we operate, as these factors impact 
our business as well as our clients’ businesses.
As a listed financial institution operating in highly‑regulated 
sectors, we have a responsibility to our shareholders, clients, 
counterparties and employees to understand and contribute to 
public policy and to ensure that our organisation and operating 
environments are well understood by parliamentarians and 
policy makers. Additionally, our clients, many of whom also 
operate in regulated sectors, expect us to have detailed current 
knowledge of public policy issues and drivers when we provide 
advice and services to them.
Macquarie contributes to public policy in the following ways:
	–
making submissions to inquiries and industry consultation 
processes, where appropriate. These may be processes 
established by parliaments, government departments or 
government agencies such as regulators. Submissions 
may be made by Macquarie directly or as part of a broader 
industry group
	–
engaging with parliamentarians and policy makers through 
avenues such as formal meetings, speaking in public 
forums and appearing before parliamentary inquiries 
where appropriate
	–
contributing to the advocacy work done by industry groups 
in key markets around the world. Given the diversity of 
Macquarie’s business activities, we are members of industry 
groups representing sectors such as financial services and 
markets, infrastructure, energy as well as general business 
peak bodies.
In Australia, political parties are funded by a mix of public and 
private monies. As part of its engagement with the Australian 
political process, Macquarie provides financial support to 
the major political parties, primarily through paid attendance 
at events.
Macquarie has a full disclosure policy and declares all monies 
paid to political parties to the Australian Electoral Commission 
(AEC) regardless of any thresholds or other provisions that may 
otherwise limit the need to disclose. This disclosure is made by 
way of an annual AEC return on a 1 July to 30 June basis and 
is published by the AEC in the February following the end of 
the disclosure year. 
In the year ended 30 June 2019, Macquarie’s political 
contributions in Australia totalled $A285,900 comprising: 
$A132,520 to the Liberal Party of Australia; $A130,500 to the 
Australian Labor Party; and $A22,880 to the National Party. 
Contributions were to meet the costs of memberships of 
political party business forums, attendance at events and party 
conference corporate days, and sponsorship of events.
Data privacy and security
Whenever we handle personal information, we take steps to 
ensure appropriate standards of privacy practice and security 
are applied.
Further information is available at 
macquarie.com/leadership-corporate-governance
Our policies are available at macquarie.com/ESG