2024
ESG FORUM
27 JUNE 2024
PRESENTATION AND INVESTOR DISCUSSION PACK

Approved for distribution by ANZ’s Continuous Disclosure Committee
ANZ Group Holdings Limited ABN 16 659 510 791
9/833 Collins Street Docklands Victoria 3008 Australia

ANZ 2024 ESG Investor Forum discussion pack

IMPORTANT INFORMATION – FORWARD-LOOKING STATEMENTS
The material in this presentation contains general background information about the Group’s activities current as at 26 June 2024. It is information given insummary form and does not purport to be complete.
It is not intended to be and should not be relied upon as advice to investors or potential investors, and does not take into account the investment objectives,
financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment isappropriate.
This presentation may contain forward-looking statements or opinions including statements regarding our intent, belief or current expectations with respect to
the Group’s business operations, market conditions, results of operations and financial condition, capital adequacy, sustainability objectives or targets, specificprovisions and risk management practices. Those matters are subject to risks and uncertainties that could cause the results and financial position of the Group todiffer materially from the information presented herein. When used in the presentation, the words ‘forecast’, ‘estimate’, 'goal', 'target', 'indicator', 'plan', 'pathway',‘ambition’, ‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate
to the Group and its management, are intended to identify forward-looking statements or opinions. Those statements are usually predictive in character; or may
be affected by inaccurate assumptions or unknown risks and uncertainties or may differ materially from results ultimately achieved. As such, these statements
should not be relied upon when making investment decisions. There can be no assurance that actual outcomes will not differ materially from any forward-looking
statement or opinions contained herein. Also see the additional ‘Important Information – Climate-Related Information’ on page 43 of this presentation. Thesestatements only speak as at the date of publication and no representation is made as to their correctness on or after this date. The Group does not undertake any
obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect theoccurrence of unanticipated events.
It also contains climate-related statements. Those statements should be read with the important notices in relation to the uncertainties, challenges and risks
associated with climate-related information included at the end of this presentation pack.
All amounts in this document are in Australian dollars unless otherwise stated. Sum of parts within charts and commentary may not equal totals due to rounding.

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ANZ 2024 ESG Investor Forum discussion pack

Chief Executive Officer

3

Purpose, strategy & ESG
Hardship, fraud & scams
ESG focus areas
Head of First Nations Strategy, Australia

13

Our Australian First Nations strategy
Reconciliation Action Plan

CONTENTS

Customer Fairness Advisor

16

Progress on scams
Investment in scams
Improving the hardship process
Reference Packs
Governance
Environment, Social & Governance – Targets, Housing and Financial
Wellbeing
Environment, Social & Governance – Climate

23
27
32

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2024
ESG FORUM
SHAYNE ELLIOTTCHIEF EXECUTIVE OFFICERANZ 2024 ESG Investor Forum discussion pack

Our purpose
is to shape a world where
people and communities
thrive4

ANZ 2024 ESG Investor Forum discussion pack

THE INTEGRATION OF PURPOSE, STRATEGY AND CUSTOMER PROPOSITION
To shape a world where people and communities thrive
Our Purpose

Our Strategy

Who We Serve

ESG Focus
Areas

It explains ‘why’ we exist and drives everything we do at ANZ, including the choices we make each day about those
we serve and how we operate

To improve the financial wellbeing and sustainability of customers through excellent services, tools and insightsthat engage and retain them, and help positively change their behaviour

Help people save for, buy
and own a sustainable,
liveable and affordable
home

Environmental
sustainability

Financial
wellbeing

Help people startor buy andsustainably growtheir businessHousing

Help companies move capitaland goods around the regionand sustainably grow theirbusiness

Protection
from fraud andscams

Responsible
customerengagement

5ANZ 2024 ESG Investor Forum discussion pack

ESG FOCUS AREAS
This year’s stakeholder engagement highlighted five of our most material ESG issues1:

Environmental sustainability

Supporting household, business andfinancial practices that improve
environmental sustainability

Financial wellbeing

Improving the financial wellbeing of ourcustomers, employees and the community
at large by helping them make the most of
their money throughout their lives

Protection fromfraud and scams

Housing

Improving the availability of suitable andaffordable housing options for all
Australians and New Zealanders

Responsible
customer engagement

UNDERPINNED BY ETHICS, CONDUCT AND CULTURE
1.

Topics are outlined in alphabetical order, not ranked

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ANZ 2024 ESG Investor Forum discussion pack

GOVERNANCE
Board Ethics, Environment, Social and Governance Committee(EESG), Time allocation FY24 YTD1

Ethics and Responsible Business Management Committee(ERBC), Time allocation FY24 YTD1
22%

11%
27%

Who We Bank

Who We Bank

GovernancePurpose:oversee measures toadvance ANZ’s purpose,
focusing on ethical,
environmental, social andgovernance matters

15%
How We Measure& Communicate

11%
Governance21%
How We Bank

25%
26%

How We Bank

Purpose:seeks to ensure ANZ
operates responsibly andachieves fair, ethical andbalanced stakeholder
outcomes

25%
How We Measure& Communicate

17%
Topics Important to
Our Purpose

Topics Important to
Our Purpose

1.

Chart reflects the percentage of time spent on each agenda category October 2023 to May 2024; additional detail in Reference Pack – Governance

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ANZ 2024 ESG Investor Forum discussion pack

EXTERNAL ENVIRONMENT
Australia, June 2024
Employment to population ratio
Wage Price Index
Capacity utilisation
Inflation
House prices as a share of disposable income
Terms of Trade
Inflation expectations
ANZ-Indeed Job Ads as a share of the labour force
Business conditions
Home lending as a share of disposable income
Household consumption per person
Consumer confidence
-4

-3

-2

-1

<- Below long run avg
Current reading (annual ave)

0

1

2

3

4

Deviation(Z score)

Above long run avg ->Min (since 2010)

Max (since 2010)

Source: ABS, ANZ-Indeed Job Ads, ANZ-Roy Morgan, NAB, CoreLogic, ANZ Research

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ANZ 2024 ESG Investor Forum discussion pack

CUSTOMER RESILIENCE
Australia Home Loan repayment profile1, Mar 24

Retail & Commercial customer deposits2
Australia, $b>2 years ahead~31%

1-2 years ahead

262
43

270
44

278
45

288
47

163

173

185

194

56

53

48

47

Sep 22

Mar 23

Sep 23

Mar 24

104

105

106

109

60

64

67

70

44

41

39

39

Sep 22

Mar 23

Sep 23

Mar 24~7%

1-12 months ~21%ahead

% of total
accounts~3% Overdue

New Zealand, NZDb
~18%
On Time~20%<1 month ahead

1.
2.

OffsetSavings & Term Deposits

Includes Non-Performing Loans. Excess repayments based on available redraw and offset. Excludes Equity Manager Accounts
Australia includes Australia Retail and Australia Commercial customer deposits, New Zealand includes New Zealand Personal and Business customer deposits

Transact

9ANZ 2024 ESG Investor Forum discussion pack

THREE KEY ESG FOCUS AREAS• Supporting an increase in the supply of social and affordable housing by investing inemerging housing markets

Housing1.

• Target to fund and facilitate $10b of investment by end FY2030 to deliver more
affordable, accessible and sustainable homes to buy and rent (Australia/New
Zealand)1

Further detail about the target is set out in the FY23 ESG Supplement available at https://www.anz.com.au/about-us/esg/reporting/This page may contain forward-looking statements or opinions. Please refer to ANZ’s Disclaimer and Important Notice with respect to such statements on page 1

10ANZ 2024 ESG Investor Forum discussion pack

THREE KEY ESG FOCUS AREAS• Supporting an increase in the supply of social and affordable housing by investing inemerging housing markets

Housing

Financial
wellbeing1.

• Target to fund and facilitate $10b of investment by end FY2030 to deliver more
affordable, accessible and sustainable homes to buy and rent (Australia/New
Zealand)1• Aim is to have at least 2.5 million customers in Australia and New Zealand with afinancial buffer by the end FY20261• Our long-running partnerships with governments and community organisations
have helped 60,000 lower-income Australians save >$29m

Further detail about the target is set out in the FY23 ESG Supplement available at https://www.anz.com.au/about-us/esg/reporting/This page may contain forward-looking statements or opinions. Please refer to ANZ’s Disclaimer and Important Notice with respect to such statements on page 1

11ANZ 2024 ESG Investor Forum discussion pack

THREE KEY ESG FOCUS AREAS• Supporting an increase in the supply of social and affordable housing by investing inemerging housing markets

Housing

Financial
wellbeing

Environmental
sustainability• Target to fund and facilitate $10b of investment by end FY2030 to deliver more
affordable, accessible and sustainable homes to buy and rent (Australia/New
Zealand)1• Aim is to have at least 2.5 million customers in Australia and New Zealand with afinancial buffer by the end FY20261• Our long-running partnerships with governments and community organisations
have helped 60,000 lower-income Australians save >$29m• Target to fund and facilitate at least $100b by end FY2030 in social andenvironmental outcomes through customer activities and direct investments by
ANZ1,2• Engaging with certain customers on their transition plans for almost a decade, toexplore ways in which our customers can improve their plans

1.

Further detail about the target is set out in the FY23 ESG Supplement available at https://www.anz.com.au/about-us/esg/reporting/2.

Important information about eligibility requirements for the target is set out in the ‘Social and Environmental Sustainability Target Methodology’ (2023), available at https://www.anz.com.au/about-us/esg/reporting/This page may contain forward-looking statements or opinions. Please refer to ANZ’s Disclaimer and Important Notice with respect to such statements on page 1

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2024
ESG FORUM
SHELLEY CABLE
HEAD OF FIRST NATIONS STRATEGY, AUSTRALIAANZ 2024 ESG Investor Forum discussion pack

STRATEGIC PRIORITIESOur purpose
is to shape a world where
people and communities
thriveA First Nations strategy in Australia
helps us bring this purpose to life

• Priority is to develop a First Nations strategy for the Bank that is aligned toour purpose, strategy and business• Objective is to weave together meaningful actions, projects andcommitments that leverage our core business strengths•

Focus areas, to support First Nations peoples and communities to thrive, will
likely include:

Financial
wellbeing

Banking the First
Nations economy

Improving thecultural capabilityof our bank

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ANZ 2024 ESG Investor Forum discussion pack

RECONCILIATION ACTION PLAN AND ACHIEVEMENTS
Our achievements in 2023 included:•

Launched a First Nations Commercial banking proposition•

Spent almost $12m with First Nations businesses, exceeding
our target spend•

Ongoing partnership with BlackCard to provide cultural
capability training•

Partnered with Indigenous Business Australia to host a CEO
Business Growth Clinic for six leaders of First Nations
businesses•

Delivered eight Money Business training sessions tocommunity workers and financial counsellors working withFirst Nations

ANZ Reconciliation Action Plan https://www.anz.com.au/content/dam/anzcomau/documents/pdf/aboutus/esg/workplace-participation-diversity/anz-rap-2021-2024.pdf

15

2024
ESG FORUMEVELYN HALLSCUSTOMER FAIRNESS ADVISORANZ 2024 ESG Investor Forum discussion pack

SUPPORTING OUR CUSTOMERSInvesting in new security measures and capabilities

Protecting our systems, services and customer data

Helping protect customers & community from threat of scams &financial crime

Resilient customer services with layers of defence to protect our systems,
services & data

Education

Prevention

Analysis

Blocking

Delivered new personalised
education resources forcustomers

Prevented the loss of>$100m to cyber criminals1>10b data events analysed
daily through our Security
Operations Centre>12.5m attacks blocked eachmonth against our customer
facing services

ANZ Falcon® ANZ’s trusted fraud detection and prevention technology
Real-time monitoring

1.

Behavioural analysis

Multi-layered fraud
prevention

Continuously evolving
detection

12-month period to March 2024

17

ANZ 2024 ESG Investor Forum discussion pack

‘SCAM SAFE’ FOR ANZ PLUS

18

ANZ 2024 ESG Investor Forum discussion pack

HARDSHIP ACTION PLAN

Improvingpolicies, procedures andtraining for our staff

Ensuring
executive levelend-to-end value
chain oversight

Improving
our customer
communications sothey are clearer and more
personalised

Evolving
our customer
experience, throughreporting and surveys
to gauge progress

Providingspecialist support tovulnerable customers infinancial difficulty

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2024
ESG FORUM
Q&A

2024
ESG FORUM
FURTHER INFORMATIONANZ 2024 ESG Investor Forum discussion pack

OUR ESG RELATED DISCLOSURESESG Supplement

ESG Briefings

Annual eventto brief
investors on
ESG matters

ESG information& progressagainst our ESG
targets

https://www.anz.com.au/about-us/esg/reporting/https://www.anz.com/shareholder/centre/reporting/
ESG/

Modern Slavery Statement

HousingOurapproach toModernSlavery

https://www.anz.com.au/content/dam/anzcomau/about-us/anz-2023-modern-slaverystatement.pdf

ANZ-CoreLogic
Housing
Affordability Report,
guide to trends &drivers of housing
affordability acrossAustralia
https://www.anz.com.au/about-us/esg/housing/

Climate Change Disclosures

Climate changecommitment andclimate related
financialdisclosures

https://www.anz.com.au/aboutus/esg/environmental-sustainability/climatechange/

Financial Wellbeing

Our financial
wellbeing programs,incl. ANZ Roy Morgan
financial wellbeing
indicator

https://www.anz.com.au/about-us/esg/financialwellbeing/

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2024
ESG FORUM
REFERENCE PACK – GOVERNANCEANZ 2024 ESG Investor Forum discussion pack

ESG GOVERNANCE OVERVIEW
Indicative responsibilities demonstrate how committees manage ESG
Ethics, Environment, Social and Governance (EESG) Board Committee

Ethics and Responsible Business Management Committee (ERBC)

Purpose: oversee measures to advance ANZ’s purpose, focusing on
ethical, environmental, social and governance matters

Purpose: seeks to ensure ANZ operates responsibly and achieves fair,ethical and balanced stakeholder outcomes

Oversight of the Ethics andResponsible Business Committee

Oversight and approval of ANZ’ssustainability objectives

Oversight and approval of ESG
reporting

Review and monitor ethical and ESG
risks and opportunities

Discuss and decide on ethical and
ESG risks and opportunities

Establish decision-making
principles and guide choices on
industry sectors, customers andtransactions we bank and how webankOversight and approval of corporate
governance policies and principles

Review the fairness of ANZ’s
approach to customers
requiring extra care

Monitor progress against ANZ’ssustainability priorities including
ESG targets and the ‘What We Care
About Most’ focus areas

Oversight of elements ofwhistleblowing

Consider ANZ’s products andservices and how
they are provided, as well as
stakeholder and community
expectations

Review and decide sensitive
wholesale transactions

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ANZ 2024 ESG Investor Forum discussion pack

BOARD COMMITTEE GOVERNING OUR APPROACH
Board Ethics, Environment, Social and Governance (EESG) Committee – Indicative agenda topics1

21%
26%

15%

27%
11%

Topics important to our purpose• Housing• Financial wellbeing• Environmental sustainability

How we bank
• First Nations banking• Family violence• Human rights

How we measure and communicate• Annual reporting suite, inc. ESG
reporting and external assurance• Setting and monitoring ESG targets• External ESG ratings

Governance• Whistleblower program• Developments in climate reporting• Corporate governance

Who we bank2• Supporting our customers and industries to transition, including our Large
Emitters Engagement Program• Oil and gas policy

1.

Chart reflects the percentage of time spent on each agenda category October 2023 to May 2024

2.

Topics in the “Who we bank” category may also relate to the “Topics important to our purpose” category, but have only been counted towards the “Who we bank” category

25

ANZ 2024 ESG Investor Forum discussion pack

EXECUTIVE COMMITTEE GOVERNING OUR APPROACH
Ethics and Responsible Business Committee (ERBC) – Indicative agenda topics1

17%

25%

Topics important to our purpose• Housing• Financial wellbeing• Environmental sustainability

How we bank
• Family violence• Human rights

How we measure and communicate• Reviewing and monitoring ESG
targets

Governance• Materiality assessment• Developments in climate reporting

25%
11%

Who we bank2• Supporting our customers and industries to transition, including our Large Emitters
Engagement Program• Oil and gas policy

22%

1.

Chart reflects the percentage of time spent on each agenda category October 2023 to May 2024

2.

Topics in the “Who we bank” category may also relate to the “Topics important to our purpose” category, but have only been counted towards the “Who we bank” category

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2024
ESG FORUM
REFERENCE PACK – ENVIRONMENT, SOCIAL & GOVERNANCE TARGETS, HOUSING AND FINANCIAL WELLBEING
Based on ANZ 2024 Half Year Results – Results Presentation and
Investor Discussion Pack

ANZ 2024 ESG Investor Forum discussion pack

SNAPSHOT OF 31 MARCH 2024 HALF YEAR PERFORMANCE AGAINST ESG
TARGETS
TargetPerformance
Relevant SDGs
Fund and facilitate at least $100 billion by end 2030, including $15 billion in
FY24, in social and environmental outcomes through customer activities anddirect investments by ANZ. This includes initiatives that help lower carbon
emissions, protect nature and biodiversity, increase access to affordable
housing and promote financial wellbeing.

Enhance our management of climate risks and opportunities by intensifying
our engagement with our largest emitting business customers. We will expect
and encourage them to strengthen their low carbon transition plans, by:• focusing our engagement and raised expectations on our 100 largest
emitting customers with the aim that by end 2025, compared to theirstarting point more customers achieve a well developed or advanced rating
for their low carbon transition plans; and• extending the use of our Climate Change Risk Assessment (CCRA)
methodology so that by end 2024 it has been used to support ourengagement with the revised list of our 100 largest emitting customers.

• Since 1 April 2023, we have funded and facilitated $20.32 billion1,2,
across 131 transactions of which $11.28 billion is funded and $9.04
billion is facilitated.
• This includes $11.53 billion1,2 allocated in the first half towards the$15 billion FY24 sub-target.
• Our detailed Social and Environmental Sustainability Target
Methodology is available at anz.com/esgreport.

• We are in the process of engaging with our 100 largest emitting
business customers, to expect and encourage them to strengthen
their low carbon transition plans by end 2025, including by utilising
our Climate Change Risk Assessment (CCRA) methodology.
• For further details on our Large Emitters Engagement Program(LEEP) refer to ANZ’s 2023 Climate-related Financial Disclosures
Report available at anz.com/esgreport.

See our 2023 ESG Supplement and Climate-related Financial Disclosures for the complete suite of FY24 ESG targets and details on 2023 full year performance1.

FY24 half year performance subject to limited independent assurance by KPMG. Refer to independent assurance opinion on ANZ website: anz.com/esgreport2.

Q3 and Q4 FY23 performance included transactions validated as eligible for inclusion in the target up to 22/09/2023. Q1 and Q2 FY24 includes transactions validated as eligible for inclusion in the target from 23/09/2023 to 22/03/2024

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ANZ 2024 ESG Investor Forum discussion pack

SNAPSHOT OF 31 MARCH 2024 HALF YEAR PERFORMANCE AGAINST ESG
TARGETS Target
Performance
Relevant SDGs
Fund and facilitate at least $10 billion of investment
by end 2030, including $750 million in FY24, todeliver homes to buy and rent that are more
affordable, accessible or sustainable.

• Since October 2018, we have funded and facilitated $5.78 billion1,2 to support the delivery of
more affordable, accessible and sustainable homes to buy and rent.
• This includes $477.1 million1,2 allocated in the first half towards the $750 million FY24 subtarget.
• Eligible housing transactions that also meet the eligibility criteria for the social andenvironmental target to achieve $100 billion by end 2030 may contribute towards bothtargets.
• For detail regarding the scope of this target refer to ANZ’s 2023 ESG Supplement available
at anz.com/esgreport.

Helping New Zealand homeowners improve thesustainability of their homes and/or reduce theirtransport emissions through discounted lending of atleast NZ$670 million in aggregate to at least 16,000
households by end 2025. (New Zealand)• Since October 2020 we have helped 12,9423 households to improve the sustainability of theirhomes and/or reduce their transport emissions through discounted lending of NZ$524
million3.

See our 2023 ESG Supplement and Climate-related Financial Disclosures for the complete suite of FY24 ESG targets and details on full year 2023 performance1.

FY24 half year performance subject to limited independent assurance by KPMG. Refer to independent assurance opinion on ANZ website: anz.com/esgreport2.

Q3 and Q4 FY23 performance included transactions allocated towards the target validated as eligible up to 22/09/2023. Q1 and Q2 FY24 includes transactions validated as eligible for inclusion in the target from 23/09/2023 to 22/03/2024

3.

Data is unaudited

29

ANZ 2024 ESG Investor Forum discussion pack

DELIVERED $5.78B OF HOUSING SUPPLY SINCE OCTOBER 20181

Delivered $5.78b into the
housing sector, with $477.1m in
1H24
ANZ’s housing target is to fundand facilitate at least $10b ofinvestment by end 20302

ANZ provided financing to the Ground Lease Model 2 project, a public private partnership between the Victorian
Government and the Building Communities consortium, comprising Tetris Capital, Icon Construction,
Community Housing (Vic) Limited, Women’s Property Initiative Limited and Aboriginal Community Housing (Vic)
Limited.
ANZ, alongside Housing Australia and Sumitomo Mitsui Banking Corp (SMBC), provided a green and social loan
for the project. ANZ also acted as the sustainability coordinator for the loan.
Under the project Homes Victoria will lease public land to the consortium to finance, design and build 1,370 newsocial, affordable, specialist disability and market rental dwellings across four sites in Victoria.

1.

As at 31 March 2024

2.

Including $750m in FY24. Target is to deliver homes to buy and rent that are more affordable, accessible or sustainable

30

ANZ 2024 ESG Investor Forum discussion pack

FINANCIAL WELLBEING – CENTRAL TO OUR STRATEGYANZ is focused on improving the financial wellbeing of our people, customers and communities by helping them make the mostof their money throughout their lives
CUSTOMERSCapability

COMMUNITY
Community• Regular research of Australian and New Zealand Financial Wellbeing with quarterly snapshots through the ANZ Roy
Morgan Financial Wellbeing Indicator.
• The total financial wellbeing of Australians declined to a score of 54.0 (out of 100) from 56.6 in the 12 months to December
2023. The trend for individuals from diverse cultural and linguistic backgrounds is lower again.

• Our long running financial education programs - MoneyMinded, Saver Plus and MoneyBusiness – are delivered withgovernment and community partners, reaching more than 927,500 participants1 since 2002. In 2024 we will pilot our Saver
Plus program in Fiji.
• In 2024 we have created a new Scams module for MoneyMinded and have partnered with community organisations todeliver scam awareness workshops directly with participants and referred customers.

CAPABILITY
Customer• Encouraging our customers to build and maintain financial resilience with the aim of having at least 2.5 million customers
with a financial buffer of approximately 6 weeks’ expenses by end of 20262.
• Delivering proactive engagement to help customers as they head into challenging economic times.

1.

As at 30 September 2023

2.

From a baseline of approximately 2.4 million customers as at 30 September 2023

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2024
ESG FORUM
REFERENCE PACK – ENVIRONMENT, SOCIAL & GOVERNANCE– CLIMATE
Based on ANZ 2024 Half Year Results – Results Presentation
and Investor Discussion Pack

ANZ 2024 ESG Investor Forum discussion pack

OUR APPROACH TO CLIMATE
ANZ’s Climate Ambition

To be the leading Australia and New Zealand-based bank in supporting customers to transition to net zero by 2050

The opportunity
The pathway to net zero emissions presents significant financing opportunities. ANZ has an opportunity to assist customers as they invest in new capabilities,
technologies and assets, provide lower emissions energy and power, nature based solutions or adapt to a less carbon intensive economy.

Our climate change commitment
Provides the framework to achieve our strategy of transitioning our financed emissions to net zero by 2050 in line with the goals of the Paris Agreement.

Our key focus areas to achieve our net zero ambition

Support our customers
to transition

Transition our financed emissions
to net zero by 2050 in line with thegoals of the Paris Agreement

Engage constructively andtransparently with stakeholders

Reduce emissions fromour operations

Facilitated by…
Our Environmental
Sustainability Strategy

Our risk management
approach

Developing the rightinternal culture andmindsetOur sensitive sector
requirements

Targets and pathways

Industry and productexpertise

Customerengagement

Progressively deepening our staff’s
understanding of climate risks andopportunities

Strategic
partnerships
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ANZ 2024 ESG Investor Forum discussion pack

ENHANCED CUSTOMER ENGAGEMENT AND POLICY
Focusing where we can make the most impact

Our enhanced oil and gas (O&G) policy••

A new phase of customer engagement in 2024 (in place from 1 October 2023),

credible, disclosed transition plans2.

triggered in part by the Safeguard Mechanism reform in Australia1.
•

The new Large Emitters Engagement Program (LEEP) has seen us:•

Focus on our absolute 100 largest emitting business customers•

Raise our customer transition plan benchmarks•

Expect customers to obtain third-party assurance of emissions
performance and targets••

current energy needs and will do so for the foreseeable future.
•

set 2030 targets in two new sectors: Thermal Coal and Transport sub-sectors(Aviation, Shipping and Auto Manufacturing).

We will work with our energy customers, with robust plans aligned with our
climate policy framework, to help finance their transition whether that be throughdirect financing or general corporate facilities.

•

At the same time, we are taking a further step towards transitioning our oil and gas
lending to align with the goals of the Paris Agreement. We will no longer provide

The LEEP, together with sectoral pathways, are informing our credit decisions in

In 2023, we disclosed progress against our existing pathways in six key sectors andOur Climate Change Commitment and related market disclosures have also beenclear that we believe gas plays a material and important part in meeting Australia’s

direct financing to new or expansion upstream oil and gas projects. As well, we will

higher emitting sectors.
•

We have been clear that we want to support our oil and gas customers who have

not on board any new customers primarily focused on upstream oil and gas.
•

This step supports our 26 per cent emissions reduction by 2030 pathway3 and 40
per cent exposure at default reduction by end 2025 target3.

•

Should national energy security issues arise and our assistance is sought, we willconsider exceptions on a case-by-case basis.

1.

The Safeguard Mechanism in Australia (cleanenergyregulator.gov.au)2.

O&G transition plans – we expect customers to attain at least a ‘well developed’ (category B) plan by end 2025

3.

From a 2020 baseline. Subject to foreign exchange rates, given that a significant portion of our oil & gas exposures are denominated in USD. See our Climate-related Financial Disclosures and Financed Emissions Methodology for details including
the part of the sector’s value chain and the customers in scope of the pathway (as at 30 September 2023): anz.com/esgreport34

ANZ 2024 ESG Investor Forum discussion pack

ENHANCED CUSTOMER ENGAGEMENT TO SUPPORT EMISSIONSREDUCTIONS
Increased focus on whether customers are on track with their targets•

In FY24, an enhanced assessment framework is being applied to our 100 largest emitting business customers1. Refer next slide for detail.

•In FY25, remaining large emitters in our sectoral pathways captured in our engagement program.

•

By end 2025, continue to seek improved plans from Category C and D customers or look to reduce exposure2.

Climate Change Risk Assessment Scope3
Large Emitters Engagement Program (from FY24)
100 largest emitters

Large emitters in
sectoral pathways5

Safeguard Mechanism4

Other large emitters6

100 of our largest emitters

FY23

1.

2.
3.
4.
5.
6.

FY24

FY25

Our Large Emitters Engagement Program (LEEP) customers were identified based on information available in August 2023 from: (a) customers who were part of the previous phase of our engagement program, had operational control over or amajor financial stake in any Safeguard Mechanism facility or were included in our sectoral pathway targets; plus (b) customers that ANZ has otherwise identified as large emitters for the purpose of our customer engagement. We also assessed
whether the customer met specific credit limit thresholds and had an ongoing relationship with ANZ. Subsequently, the customers were ranked by emissions from highest to lowest, encompassing Scope 1 and 2 emissions for all customers andScope 3 emissions for Coal, Oil & Gas, and Mining Infrastructure customers. The top 100 customers with the highest emissions were identified as our 100 largest emitting business customers for LEEP. ANZ expects that this group of customers willcomprise the LEEP group for the target period, noting that additional customers may be added if a customer in this group ceases its relationship with ANZ or if engagement for some other reason is not practical
By the end of 2025 or we will likely reduce our exposure to them. Any customers rated 'C' or 'D' in 2024 that are included for the first time as part of our new phase of engagement will need to improve their plans by the end of 2026. Refer next slide
for transition plan categories
Climate Change Risk Assessment (CCRA) is an online tool that will be used to help guide customer engagement and assess and manage climate-related risks of certain customers in Institutional, including our largest emitting business customers.
Additional Safeguard Mechanism customers if not already covered in our 100 largest emitters (excluding those to whom ANZ’s exposure is considered immaterial)
Additional large emitters in sectoral pathways if not already covered in FY24, focusing on the most material exposures
Any remaining material corporate exposures in carbon-intensive sectors such as large agribusiness, or chemical manufacturers

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ANZ 2024 ESG Investor Forum discussion pack

ENHANCED ASSESSMENT FRAMEWORK FOR OUR 100 LARGEST EMITTINGCUSTOMERS
Three key elements of a robust low carbon transition plan (governance, targets, disclosures)
Enhanced assessment framework (in place from 1 October 2023) includes a sharper focus on whether our customers are implementing their plans, e.g., toachieve an 'A' rating customers will need to be 'on track’ or ‘almost on track' with meeting their Scope 1 & 2 targets. Illustrative examples of characteristics ofcustomers within each category are shown below

Category A

Category B‘Advanced’GovernanceTargetsDisclosuresStrong governance in place tomanage climate risk
Acknowledges climate risk is amaterial risk and opportunity
Decarbonisation trajectory is
on track for Scope 1 & 2"Paris-aligned" targets
Discloses material scope 3
emissions
Incorporates climate change
performance into executive
remuneration
TCFD-aligned reporting

Category C‘Well Developed’

Public climate changecommitment“Paris-aligned” 2030
emissions reductions targets1
for Scope 1 & 2

TCFD-aligned reporting

Category D‘Underdeveloped’

Climate and environment risk
discussed with senior leaders

Targets to reduce ‘emissions
intensity’ across material partsof its operations‘No public plans’
Acknowledges theneed to develop a transitionplanNo public targets or otherplans to reduce emissions
Developing
sustainability projects
Developing
sustainability frameworkMoving towards TCFD-aligned
reportingHas not reported against
TCFD


1.

In Progress In place/ met

Our expectation is that Energy customers will achieve at least a 'B' by end 2025 and disclose:•

Material Scope 3 emissions and any progress towards reducing those emissions•

How company strategy, targets and planned capital expenditure is aligned with the Paris goals

36

ANZ 2024 ESG Investor Forum discussion pack

BACKING THE TRANSITION THROUGH FINANCING SUSTAINABILITYANZ Sustainable Finance deals6

Supporting our customers to transition

Sustainable Bond League Tables

ANZ has chosen some key focus areas as part ofour Environmental Sustainability Strategy:

Aus. Sustainable Bond Cumulative League Table4
Bookrunner(Ranking on Market
share)

VolumeNo. of deals Market share

6.

Number of deals(cumulative)$16.8b

71

13.7%

FY18

8

8

Closest peer (#2)

$13.2b

72

10.8%

FY19

26

34

FY20

39

73

FY21

81

154

FY22

127

281

Bookrunner(Ranking on Market
share)

5.

Number of deals(in period)

ANZ (#1)

NZ Sustainable Bond Cumulative League Table5

1.
2.
3.
4.

PeriodVolume(NZD)

No. of deals Market share

ANZ (#1)

$9.6b

59

30.9%

FY23

111

392

Closest peer (#2)

$8.1b

46

26.2%

1H24

71

463

Supporting sustainable resource extraction in areas such as iron ore, lithium, nickel, cobalt, rare earths, copper and bauxite
Supporting basic materials production including green steel and low-carbon aluminium production
Supporting new technology projects focused on upstream hydrogen and carbon capture use and storage
All issuers, includes all sustainable bonds issued in the Australian markets by local and international issuers. 1 Jan 2014 to 2024 YTD. To qualify bonds must be aligned with recognised external global principles/standards (ICMA and CBI Climate
Bonds Standard) Source: KangaNews 10 April 2024
All issuers, includes all sustainable bonds issued in the New Zealand markets by local and international issuers. 1 Jan 2014 to 2024 YTD. To qualify bonds must be aligned with recognised external global principles/standards (ICMA and CBI Climate
Bonds Standard). Source: KangaNews 16 March 2024
Number of labelled Sustainable Finance deals, including bonds & loans, that ANZ has participated in. Data is unaudited

37

ANZ 2024 ESG Investor Forum discussion pack

BACKING THE TRANSITION THROUGH FINANCING SUSTAINABILITY
ANZ is supporting our customers through labelled and other financing products and services
Sustainable Finance•

ANZ’s Sustainable Finance team is helping our customers by encouraging them to identify climate and nature-related risks and opportunities.

•

The team is financing and facilitating the deployment of capital into eligible green, social and sustainability initiatives.

•

Highlight: ANZ arranged a US$940 million green export credit agency backed facility for Hyundai Mobis America Inc to supply parts for the production ofelectric vehicles. Among other roles, ANZ acted as Sole Green Loan Coordinator and Lead Export Credit Agency Coordinator.

Supporting customers’ sustainability ambitions•

We are doing this through unlabelled1 financing products and services, such as relationship lending, project and export finance, asset finance, loan
syndications, advisory, trade finance and markets solutions including debt capital markets.

•

Highlight: ANZ acted as the Mandated Lead Arranger for the $1.1 billion secured term loan facilities for eight wind, solar and battery storage assets acrossfive states in Australia for Neoen Australia, the largest renewable energy company in the country.

Progress against our target to fund and facilitate at least $100 billion by end 20302•$20.32 billion delivered across 131 transactions of which $11.28 billion was funded and $9.04 billion was facilitated since the target commenced twelve
months ago3,4.

•This includes $11.53 billion allocated in the first half of FY24 towards the $15 billion FY24 sub-target3,4. See slide 136 for a snapshot of our half year
performance against our ESG targets.

1.

Unlabelled refers to our existing banking products and services where no specific sustainability related label is applied. Labelled refers to sustainable finance banking products with a specific sustainability related label

2.

Our detailed Social and Environmental Sustainability Target Methodology is available at anz.com/esgreport3.

Q3 and Q4 FY23 performance included transactions validated as eligible for inclusion in the target up to 22/09/2023. Q1 and Q2 FY24 includes transactions validated as eligible for inclusion in the target from 23/09/2023 to 22/03/2024

4.

FY24 half year performance subject to limited independent assurance by KPMG. Refer to independent assurance opinion on ANZ website: anz.com/esgreport38

ANZ 2024 ESG Investor Forum discussion pack

SUPPORTING OUR COMMERCIAL CUSTOMERS SHIFT TO LOW CARBON
BUSINESS MODELS AND HOMEOWNERS TO IMPROVE ENERGY EFFICIENCY1
Helping commercial
customers invest inenergy efficiency

Supporting NZ
business and retailcustomers
implementsustainable
initiatives• Continuing to work with the Clean Energy Finance Corporation (CEFC) Energy Efficient Asset Finance Program to support
Australian businesses to invest in emission reducing infrastructure.
• Since its launch in 2017, this program has helped finance more than $289 million of investment in 1,311 clean energy technology
deals up to March 2024.

In the first half of FY24 ANZ New Zealand:• Provided NZ$139 million to more than 3,4002 New Zealand households to improve the sustainability of their homes and/or
reduce transport emissions through our Good Energy Home Loan top up2.
• Business and agriculture customers drew down NZ$15 million3 in lending to fund assets or projects that demonstrated
environmental benefits through the ANZ Business Green Loan3, taking the total since launch to NZ$42 million.

Building internal
capacity and helping • ANZ’s Environmental Markets team is building capability to help customers to devise innovative carbon credit acquisition
strategies and to help relevant stakeholders bring high quality carbon credits to market and streamline carbon trading.
customers with carbon
credits

1.

Data is unaudited2.

anz.co.nz/personal/home-loans-mortgages/loan-types/good-energy/

3.

https://www.anz.co.nz/business/borrow/anz-business-green-loan/

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ANZ 2024 ESG Investor Forum discussion pack

SECTORAL PATHWAYS AND TARGETS1 AS AT 30 SEPTEMBER 20232
Sectoral pathways and targets backing
customer decarbonisation
•

•

•

•

Existing Pathways2

2030 Interim Target2

Status2

50% reduction (2020 baseline)

On track

26% reduction (2020 baseline)

On track

30% reduction (2021 baseline)

Not on track

20% reduction (2021 baseline)

On track

28% reduction (2021 baseline)

Close to on track

60% reduction (2019 baseline)

On track

100% reduction (2020 baseline)

On track

20% reduction (2019 baseline)3

On track

28% reduction (2022 baseline)

On track

10% reduction (2022 baseline)

On track

As a member of the Net-Zero Banking Alliance(NZBA), we have committed to transitioning ourlending portfolio to align with net zero by 2050.
In 2023, we disclosed progress against ourexisting pathways in six key sectors and set 2030
targets in two new sectors: Thermal Coal andTransport sub-sectors (Aviation, Shipping andAuto Manufacturing).
This does not currently include targets inrelation to ‘facilitated’ emissions such as bonds.
However, the updated NZBA guidelines releasedin March 2024 will require banks to include
bonds in targets by November 2025.

New Pathways2

We will review our existing – and any new pathways and targets to incorporate bonds orother relevant facilitated emissions by
November 2025.

1.

Please see the important information about forward-looking statements and climate-related information at the start and end of this presentation pack2.

See our Climate-related Financial Disclosures and Financed Emissions Methodology for details on sectoral pathways and targets including the part of each sector’s value chain and, the customers included in the scope of each pathway as well as
detail on our performance against the targets (as at 30 September 2023): anz.com/esgreport Also see footnote 3 for a restatement post publication of our 2023 Disclosures

3.

We have restated this target due to an error. We previously stated that our 2030 emissions intensity target for aviation required a 30% reduction from our 2019 baseline whereas, in fact, it only requires a 20% reduction from our 2019 baseline. The
target remains unchanged

40

ANZ 2024 ESG Investor Forum discussion pack

OUR RESOURCES PORTFOLIO
Thermal Coal Mining, EAD1 $b

Resources Portfolio, EAD1 $b

2.0

20.0

1.7
0.6
1.3
2.9

1.5
16.2
1.2
0.4
1.1

1.7
4.9
4.0

8.6

Sep 15

7.8

Sep 16

14.0
0.8

0.3

1.0
1.4

15.3
0.7
0.7
0.9
1.2

17.3
0.8

0.7

1.0
1.5

0.5

0.8

0.9
1.2
5.4

5.2
4.4

3.5

1.0

17.0
0.5
13.0
0.4
0.6
1.2
1.0

14.5
0.2 0.5
1.0
1.0

0.0
12.9
0.3
0.6
0.6
0.9

13.1
0.3
0.6

4.8

4.2

7.4

8.2

Sep 17

Sep 18

Sep 198.2
5.9

Sep 20

Sep 21

1.2

4.9

3.9

7.0

1.0

7.0

Sep 2212.2
0.2 0.7
0.8

1.2
4.0

5.6

5.8

5.4

Mar 23

Sep 23

Mar 24

Thermal Coal Mining

Other Mining

Metal Ore Mining

Metallurgical Coal Mining

Services to Mining

Oil & Gas Extraction

Sep Sep Sep Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar
15 16 17 18 19 19 20 20 21 21 22 22 23 23 24• Since 2015 our exposure to thermal coal mining has reduced by ~88%
• ANZ’s exposure to thermal coal mining is a small portion of our overall
lending (now comprising ~0.02% of Group EAD)

Movements in Oil and Gas and Thermal Coal Mining
exposures• Both our upstream oil & gas and thermal coal mining exposures2
have decreased, reflecting our ongoing portfolio management
initiatives.
• Our thermal coal mining exposures are now largely mining
rehabilitation bonds. Given the advanced state of portfolio runoff,
the rate of exposure reduction will likely slow.

1.

Exposure at Default.

2.

This exposure is to the ANZSIC code 1102, i.e. those customers for whom thermal coal mining is their predominant activity. It does not include other thermal coal mining exposure to diversified miners, which will be captured under other ANZSIC
codes

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ANZ 2024 ESG Investor Forum discussion pack

CUSTOMER ENGAGEMENT TO SUPPORT BIODIVERSITY PROTECTION
Supporting customers to transition to nature based outcomes•

ANZ seeks to support our customers to transition to net zero and nature based outcomes.

•

Engagement with our largest emitting business customers on biodiversity in 2023, illustrated increased customer awareness of biodiversity and anincreasing willingness to improve holistic management approaches.

•

Our Climate Change Risk Assessment tool guides our bankers’ engagement with these customers to better understand their climate risks andopportunities and how they're managing their impacts on nature, including biodiversity.

•

Our engagement is helping to refine our screening, improve our knowledge and enhance our capacity to further engage.

Pilot of the TNFD ‘LEAP’ Framework•

In 2023, we participated in a pilot study of the TNFD1 framework’s application and provided feedback on the learnings and existing barriers to adopting
and implementing the framework in the Australian context2.

•

Piloting the approach enabled ANZ to develop an understanding of how nature-related risks and opportunities are expected to be identified, assessedand disclosed in line with the TNFD.
For more on customer engagement, including on biodiversity refer to the
podcast available on ANZ bluenotes:
Behind the numbers: ANZ’s climate-related risk and opportunities

1.

Taskforce on Nature-related Financial Disclosures2.

We acknowledge the Department of Climate Change, Energy, the Environment and Water for sponsoring the pilot study, which was facilitated by EY

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ANZ 2024 ESG Investor Forum discussion pack

IMPORTANT INFORMATION – CLIMATE-RELATED INFORMATIONThis presentation may contain climate-related statements, including in relation to climate-related risks and opportunities, climate-related goals and ambitions, climate scenarios,
emissions reduction pathways and climate projections. While the Group has prepared the statements in good faith, climate-related statements are subject to significant
uncertainty, challenges and risks that may affect their usefulness, accuracy and completeness, including:1.

Availability and reliability of data – emissions and climate-related data may be incomplete, inconsistent, unreliable or unavailable (including information from the Group’s
clients), and it may be necessary to rely on assumptions, estimates or proxies where that is the case.

2.

Uncertain methodologies and modelling – methodologies, frameworks and standards used for calculations of climate-related metrics, modelling and climate data are notuniversally applied, are rapidly evolving and subject to change. This may impact the data modelling, approaches, and targets used in preparation of this presentation.

3.

Complexity of calculations and estimates – Estimating financed emissions (including allocating emissions to financing activities) and emissions reduction is complex and relies
on assumptions and judgments, often made in respect of long periods of time.

4.

Changes to climate-related governing frameworks - changes to climate-related policy, laws, regulations and market practices, standards and developments, including thoseresulting from legal proceedings and regulatory investigations.

5.

Lack of consistency in definitions and climate-science terminology subject to changes – definitions and standards for climate-related data and assessment frameworks used
across industries and jurisdictions may vary, and terminology and concepts relating to climate science and decarbonisation pathways may evolve and change over time.
These inconsistencies and changes can also make comparisons between different organisations’ climate targets and achievements difficult or inappropriate.

6.

Reliance on third parties for data or involvement – the Group may need to rely on assistance, data or other information from external data and methodology providers or otherthird parties, which may also be subject to change and uncertainty. Additionally, action and continuing participation of third parties, such as stakeholders, may be required(including financial institutions and governmental and non-governmental organisations).

Due to these uncertainties, challenges and risks, statements, assumptions, judgments, calculations, estimates or proxies made or used by the Group may turn out to be incorrect,
inaccurate or incomplete. You should conduct your own independent analysis and not rely on the information for investment decision-making. The information in this notice
should be read with the qualifications, limitations and guidance included throughout this presentation, as well as the:
•
•
•
•
•

ANZ ESG Supplement available anz.com/esgreport
ANZ Climate-related Financial Disclosures available anz.com/esgreport
ANZ Financed Emissions Calculation Methodology available anz.com/esgreport
ANZ Greenhouse Gas Reporting and Carbon Offset Guidelines available anz.com/esgreport
ANZ Social and Environmental Sustainability Target Methodology available anz.com/esgreport
43

ANZ 2024 ESG Investor Forum discussion pack

SHAREHOLDER CENTRE & INVESTOR RELATIONS CONTACTSANZ Shareholders Centre

ANZ Debt Investors Centre

Equity Investors

Jill Campbell

Group General Manager
Investor Relations+61 3 8654 7749
+61 412 047 448
jill.campbell@anz.com

Cameron Davis

Executive Manager
Investor Relations+61 3 8654 7716
+61 421 613 819
cameron.davis@anz.com

Pavita Sivakumar

Senior Manager
Investor Relations+61 3 8655 2597
+61 466 848 027
pavita.sivakumar@anz.com

Retail Investors

Debt Investors

Michelle Weerakoon

David Goode

Manager
Shareholder Services & Events+61 3 8654 7682
+61 411 143 090
michelle.weerakoon@anz.com

Head ofDebt Investor Relations+61 410 495 399
david.goode@anz.com

Steve Aquilina

Associate Director
Debt Investor Relations+61 3 8654 7778
+61 447 744 542
steven.aquilina@anz.com

44