ESG Investor Briefing – Monday 19 June 2023

MARK WHELAN
Thanks Shayne.
Today I’ll update you on our Environmental Sustainability
strategy - in particular, our climate commitments and customerengagement.
We’re continuing to support our customers in the transition tonet zero.
For example, we played a leading role in a $540 million
financing for Lightsourcebp, to support the development ofsolar farms in New South Wales and Victoria.
And we helped fund our Queensland customer Tandy Group toupgrade to more fuel-efficient equipment. This was through ourpartnership with the Clean Energy Finance Corporation.
In April we launched a new target to fund and facilitate at leastan additional $100 billion in sustainable finance by the end of2030. This includes financing to help lower carbon emissions,protect nature and biodiversity, increase access to affordable
housing and support financial wellbeing. This would bring our
total sustainable finance commitment to $166 billion since
October 2015.
Let me turn now to our decarbonisation pathways and targets.

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We have six sectoral pathways in place, for power generation…
large-scale commercial property… oil and gas…..aluminum…
cement… and steel.
Our next steps are pathways for thermal coal and threetransport sub-sectors – auto-manufacturing, airlines, andshipping. We plan to disclose these in November.
We are also strengthening our due diligence and transaction
decision-making process in the energy sector.
Major energy transactions are scrutinised to, among otherthings, assess the robustness of a customer’s transition plan,
especially the milestones and trajectory of their commitments
and disclosures.
Transactions that are considered material are escalated forreview to myself, our Chief Risk Officer and the Group General
Manager ESG. If required senior level meetings are then heldwith the customer.
One of these approvals was for a new-to-bank energy
customer.
Their transition plan included Scope 1, 2 and 3 targets. 100%
renewables to power their operations within the next few
years, short and medium term targets and good disclosure.
More broadly, we are upgrading how we identify and evaluate
customer climate risks2This will further integrate our climate and credit risk
assessments, while also supporting frontline conversations withour customers.
The approach has been piloted for all Project Finance credit
assessments and over time we will expand this to cover more
Institutional customers in high emitting sectors.
We’re also further improving the tool with a focus on
simplification, digitisation and consolidation of existing climaterelated analytical tools. We will make further disclosure about
this at year end.
Many of you will be familiar with the program in place since
2018 focusing on engagement with 100 of our largest emitting
business customers.
In 2022, we broadened our engagement with these customersto include a focus on biodiversity. The aim is to encourage andsupport customers to identify and manage their potential
biodiversity impacts and dependencies.
Through our engagement, we had three key observations:First, customers are increasingly willing to improve oversightand management of biodiversity. For example, putting formal
governance in place.
Second, resource sector customers are particularly well placed
partly due to their focus on regulatory compliance for morethan two decades. They have progressively strengthened their3

commitments to what they will not do. For example, restricting
exploration or extraction of resources to protect high value
biodiversity areas.
Third, our customers are less progressed in setting biodiversity
targets and disclosures compared with their climate response.
This is not unexpected.
However, it is likely that adoption of the Taskforce on Naturerelated Financial Disclosure framework will see progress overtime.
While it’s early days, we are also starting to see customers
considering biodiversity KPIs in Sustainability Loans.
For example, we participated in North Queensland Airport’s
Sustainability Loan in September 2022 which included a KPI on
natural habitat restoration.
We also joined a pilot study of the TNFD framework’s
application to a particular sector of the economy. The aim wasto help us learn how to conduct better informed conversations
with customers.
Finally, I’d like to leave you with some insights from recent
discussions held with regulators and peers in the UK andEurope.
These conversations help us get a pulse check on what may
come next here in Australia.

4Our peers and regulators are at an early stage on biodiversity.
So, ‘good practice’ is still forming. Our customer engagement
was viewed positively by regulators and we plan to build on it,
as I said earlier.
In addition, the importance of building capability to support thetransition continues to be key. This includes bringing inexternal partnerships for their specialist expertise, such as ourpartnership with Pollination.
To summarise, we continue to support the transition to net
zero. We believe we are well positioned for future challenges
and opportunities.
And, I want to emphasise that we will continue to take ameasured approach, and that above all, we are conscious ofgetting the balance right.
With that, I’ll hand over to Mo.

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