2022
ESG INVESTOR BRIEFING
12 SEPTEMBER 2022
INVESTOR PRESENTATION AND REFERENCE PACK
Approved for distribution by ANZ’s Continuous Disclosure Committee
Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia
ABN 11 005 357 522

2022 ESG INVESTOR DISCUSSION PACKCONTENTS

ESG PRESENTATION

3

Shayne Elliott, Chief Executive Officer

3

Maile Carnegie, Group Executive, Australia Retail

10Mark Whelan, Group Executive, Institutional

16

ESG REFERENCE PACK

21

Environment

27

Social39

Governance48

1

2022 ESG INVESTOR DISCUSSION PACKDISCLAIMER & IMPORTANT NOTICE

The material in this presentation is general background information about ANZ’s activities
current as at the date of the presentation. It is information given in summary 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 orwithout professional advice when deciding if an investment is appropriate.
This presentation may contain forward-looking statements or opinions including statements
regarding our intent, belief or current expectations with respect to ANZ’s business operations,market conditions, results of operations and financial condition, capital adequacy, specificprovisions and risk management practices. When used in this presentation, the words‘forecast’, ‘estimate’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’, ‘risk’, ‘will’,‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to ANZ and its
management, are intended to identify forward-looking statements or opinions. Thosestatements: 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. These statements only speak as at the date of publication and no representation ismade as to their correctness on or after this date. Forward-looking statements constitute“forward-looking statements” for the purposes of the United States Private Securities Litigation
Reform Act of 1995. ANZ does not undertake any obligation to publicly release the result of
any revisions to these forward-looking statements to reflect events or circumstances after thedate hereof to reflect the occurrence of unanticipated events.

2

2022
ESG INVESTOR BRIEFING
SHAYNE ELLIOTTCHIEF EXECUTIVE OFFICER

2022 ESG INVESTOR DISCUSSION PACKOVERVIEWApproach to
Purpose, Strategy& ESG and how we’redriving value

Update on the‘Bank We’re Building’and setting up for
future growth

Current macroeconomic
environment
uncertainty

Customerperspective &assistance throughuncertain times

Environmental
Sustainability strategy& supporting
customers’ transition4

2022 ESG INVESTOR DISCUSSION PACKPURPOSE & STRATEGYOUR ESG APPROACH SUPPORTS THE EXECUTION OF OUR STRATEGYSTRATEGY
To improve the financial wellbeing & sustainability of our customers
We will do this by providing excellent services, tools and insights that engage and retain
customers and positively change their behaviour

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

Help people start or buy andsustainably grow their business

Help companies move goods andcapital around the region andsustainably grow their business

Platforms & people
Propositions
customers love;
services that meetchanging needs

Flexible and resilient
digital banking
platforms

Partnerships that
unlock value

Purpose and valuesled people52022 ESG INVESTOR DISCUSSION PACKBOARD & EXECUTIVE COMMITTEESBOARD ETHICS, ENVIRONMENT, SOCIAL AND
GOVERNANCE COMMITTEE (EESG)1ETHICS AND RESPONSIBLE BUSINESS MANAGEMENTCOMMITTEE (ERBC)1

32%

15%

24%

Governance

Who We Bank

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

17%
Who We Bank

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

14%
How We Measure& Communicate

7%
How We Measure& Communicate

28%

20%

How We Bank

How We Bank

24%
Our Priority Areas

19%
Our Priority Areas

1.

Indicative agenda and topics covered. FY22 to date (October 2021 to August 2022)

6

2022 ESG INVESTOR DISCUSSION PACKTHE BANK WE’RE BUILDING‘We are the Bank for those in Australia & New Zealand who want to

GIVING OUR CUSTOMERS ACCESS TO

buy and own a home or start, run, and grow a small business and for
those larger businesses trading and investing in Asia Pacific’‘We work with the best partners to offer competitive and engaging

Propositions
our customers
love

Purpose andvalues-led

Peoplesolutions that make our customer’s lives easier. We build loyalty by
improving our customer’s financial wellbeing and helping them run
their businesses more sustainably’‘We embrace a world of constant change, by building a nimble,
resilient organisation capable of anticipating needs, creating

Flexible digitalbanking

Platforms

Partnershipsthat unlock
new value

opportunities, and delivering what matters, quickly and safely’

72022 ESG INVESTOR DISCUSSION PACKOUR PEOPLEEMPLOYEE ENGAGEMENT1

WOMEN IN LEADERSHIP3

DIVERSITY & INCLUSION

Employee engagement score (%)

Representation (%)

Initiatives

86

35.3

84
81

77
74

72

73

29.9

31.1

32.0

32.5

35.4

33.4

Achieved Family Inclusive Workplacecertification

Launched Reconciliation Action Plan 2021-2024

Launched gender affirmation leave in Australia,
New Zealand, India, the Pacific and thePhilippines

Relaunched Notable Women program

Launched Mid Career Digital Jobs Program
2016 2017 2018 2019 2020 2021

20222

2016 2017 2018 2019 2020 2021

20224

1.

For further detail refer sustainability performance trends slide in the reference pack2.

ANZ My Voice employee engagement survey August 2022. New research-based Engagement index introduced from March 2022

3.

Measures representation at the Senior Manager, Executive and Senior Executive Levels. Includes all employees regardless of leave status but not contractors (which are included in FTE). 2022 % as at 31 July 2022

4.

As at 31 July, 2022. This information has not been independently assured

82022 ESG INVESTOR DISCUSSION PACKSTRONG ALIGNMENT OF PURPOSE AND CUSTOMER PROPOSITION

Purpose / Ambition

Strategy &priorities

How we’ll achieve
our strategy

ANZ

SUNCORP BANKTo shape a world where people and communities thrive

Create a brighter future

To improve the financial wellbeing & sustainability of our customers

Banking you can feel good about

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

Propositions
our customers
love

Help companies move goods
and capital around the regionand sustainably grow theirbusiness
Flexible digitalbanking
Platforms

Create opportunities, deliver whatmatters & succeed together

Help people start or buy
and sustainably grow theirbusiness

Partnershipsthat unlock newvalue

Purpose andvalues-led
PeopleDriving integrity, collaboration,accountability, respect & excellence

Win in homelending

Lead with digital

Accelerate Everyday
Banking

Optimise
distribution

High performance culture driving
outcomes

Grow business customers

Customerobsession

Automate,
partner &simplify

Invest in the capabilities required fortoday and tomorrow

People & culture
Financial wellbeing

ESG focus areas

Environmental
sustainability

Housing

Wellbeing

Sustainability

Diversity and inclusion

Fundamental to our approach is a commitment to fair and responsible banking

9

2022
ESG INVESTOR BRIEFING
MAILE CARNEGIEGROUP EXECUTIVE, AUSTRALIA RETAIL

2022 ESG INVESTOR DISCUSSION PACKOur PURPOSE

To shape a world where people and communities thrive

Our IMPACT

Improving the financial wellbeing of our customers

For our TARGET CUSTOMERS…
…we aim to DELIVER

Home owners and people who are serious about one day owning a home
Delightfully easy services with personalised, trusted coaching
and tools that improve our customers’ financial wellbeing

112022 ESG INVESTOR DISCUSSION PACK

AUSTRALIA HOUSING PORTFOLIOHOME LOANS REPAYMENT PROFILE1,2, 3

HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE1,3

Overdue2%>2 years ahead
33%

Structural, restrict
repayments in advance(eg fixed rate loans)

43%

March 2022

40%

On time and <1month ahead

New accounts(<6 months)
21%

March 2022
12%

1-2 years ahead

6%
24%
6%

6-12 months ahead

6%

3-6 months ahead

7%

Residual: <1 month
repayment buffer

Investment: interest
payments may receive
negative gearing /tax benefit4

1-3 months ahead

1.

Based on accounts.

2.

Includes Non Performing Loans3.

% of Owner Occupied and Investment Loans that have any amount ahead of repayments. Excess repayments based on available Redraw and Offset. Excludes Equity Manager Accounts

4.

The current classification of Investor vs Owner Occupied, is based on ANZ’s product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer’s obligation to advise ANZ of any change in circumstances

12

2022 ESG INVESTOR DISCUSSION PACK

AUSTRALIA & NEW ZEALAND CONSUMER PORTFOLIO
90+ DPD AS A % OF TOTAL PORTFOLIO BALANCES1

1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Mar
17

Sep
17
Australia Home Loans

1.

Mar
18

Sep
18

Australia Consumer Cards

Mar
19

Sep
19

Mar
20

Sep
20

Mar
21

Sep
21

Mar
22

Jun
22

NZ Home Loans

Includes Non Performing Loans ; ANZ delinquencies are calculated on a missed payment basis for amortising and Interest Only loans; Australia Home Loans 90+ between Mar-20 and Jun-20 excludes eligible Home Loans accounts that had requested COVID-19 assistance but
due to delays in processing had not had the loan repayment deferral applied to the account13

2022 ESG INVESTOR DISCUSSION PACKDATA ANALYTICS SUPPORTING PROACTIVE CUSTOMER ENGAGEMENTA NEW PLATFORM USING DYNAMIC CUSTOMER DATA

Savings
accounts

Creditaccounts

Offsetaccounts

Analyses customer transaction accounts to help understandfinancial behaviour and potential future outcomes

Analyses events (including interest rate changes, increases inliving expenses and cashflow), and what the impact will be
on a financial position

Helps to identify (i) positive financial position to meet future
repayments; (ii) potential financial stress in the next 12 months
with forecast rate increases.

1.

AUTOMATED PRO-ACTIVE CONTACT STRATEGIES

Courtesyreminders of next
due date

Insufficient
funds in direct
debit account
ANZ payment
behaviour

CCR1 repayment
behaviour

Potential
hardship

Automated
SMS Contact
Strategies

Offer to set up
automated
payment

Offer to help if
situation changes

Other reminders& offers forcontact

Comprehensive Credit Reporting. Information is being used in accordance with The Privacy Act 1988

14

2022 ESG INVESTOR DISCUSSION PACKFINANCIAL WELLBEING PRINCIPLES

Guiding the way we aretransforming the bankand developing services

15

2022
ESG INVESTOR BRIEFINGMARK WHELANGROUP EXECUTIVE, INSTITUTIONAL

2022 ESG INVESTOR DISCUSSION PACK

ANZ’s CLIMATE AMBITION

To be the leading Australia and New Zealand-based bank in supporting customers to transition to net zero emissions by 2050
The opportunity
The pathway to net zero emissions presents significant financing opportunities, which we’ll realise together with our customers
Our environmental sustainability strategy
Support our customers in shifting to low carbon business models and operations through directing our finance, services and advice
into key priority areas and sectors
Our key focus areas to achieve our net zero ambition

Help our customers andindustries to transition

Align lending decisions
to the Paris goals

Engage constructively andtransparently with stakeholders

Facilitated by…
Our Climate Change
Commitment

Our sensitive sector
policies andscreening tools

An integrated risk
management
approach

Industry and productexpertise

Reduce our own impact
and emissions

Staff with deep
understanding ofclimate risks andopportunities17

2022 ESG INVESTOR DISCUSSION PACK

EXAMPLES1 OF OUR STRATEGY COMING TO LIFE

GREEN LOANS

ANZ/CLEAN ENERGY FINANCE CORPORATION ENERGYEFFICIENCY ASSET FINANCE PROGRAM

Lending to deploy capital into green initiatives, where borrowers are
required to invest in qualifying green assets or where loan terms arelinked to improved performance against agreed sustainability targets

Financing that incentivises small-to-medium sized business customers
to invest in energy efficient and renewable energy technologies thatwill help reduce their energy costs and carbon emissions

HIGHLIGHT

HIGHLIGHT• November 2021 – New $1.45b 5-year Green Loan for The Intellihub Group, an
Australian and New Zealand based smart utility infrastructure-as-a-service
company, in support of its rapid rollout of smart electricity meters acrossAustralia and New Zealand• August 2022 – ANZ announced extension of $200m funding program with the
Clean Energy Finance Corporation (CEFC) to help ANZ business customers
transition to net zero emissions• World’s first certification under Climate Bonds Standard Electrical Grids andStorage Criteria• ANZ was Sole Green Coordinator Joint Arranger, and Lender1.

• Small to medium sized business customers will continue to have access to a
0.50 basis point discount on their asset finance rate for eligible energy efficient
related assets and projects• Over the past 5 years, ANZ has been working with CEFC in helping to support
Australian businesses invest in emission reducing infrastructure that will be
resilient to a changing climate

Further examples included in the ‘Environment’ section of this pack18

2022 ESG INVESTOR DISCUSSION PACKALIGNING OUR LENDING TO THE PARIS AGREEMENT GOALS•First Australian bank to sign up to the Net Zero Banking Alliance (NZBA)•

On track to set 2030 targets for nine priority sectors by 2024•

In 2021, set emissions intensity pathways and targets for power generationand large-scale commercial real estate•

Later this year will be releasing pathways and targets for oil and gas andbuilding products•

Our targets, pathways and disclosures demonstrate how we are aligning ourlending to the Paris Agreement•

Our disclosure is TCFD aligned, and our target setting will be guided by thePartnership for Carbon Accounting Financials (PCAF) standard

19

2022 ESG INVESTOR DISCUSSION PACKCUSTOMER ENGAGEMENT PROGRAM
100 OF OUR LARGEST EMITTERS BY SECTOR
EXPANDING THE SCOPE OF OUR CUSTOMERENGAGEMENT TO INCLUDE BIODIVERSITY FOCUS

Electricity Gas & Water Supply
Resources (Mining)3•

Biodiversity risk is recognised across our sensitive sector lending
policies•

Upgraded biodiversity focus acknowledged in our Climate Change
Commitment

Based on % of Exposure
at Default (EAD)1•

Customer engagement to date indicates a group of leaders – somewith ‘no net loss’ and others ‘positive impact’ commitments

60% NZ / International
40% domestic•

Larger group of customers have developing focus and response•

Engagement is helping refine our screening, improving ourknowledge, enhancing capacity to further engage•

Participating in the Taskforce on Nature-related Financial
Disclosures (TNFD) forum

Transport and Storage

Manufacturing2

Other4

1.

Based on September 2021 EAD (most recent annual disclosure)2.

Includes steel, aluminium

3.

Includes coal, oil and gas

4.

Includes education, telecommunications, waste management, healthcare facilities and accommodation

20

2022
ESG INVESTOR BRIEFING
12 SEPTEMBER 2022
REFERENCE PACK

2022 ESG INVESTOR DISCUSSION PACKOUR ESG RELATED DISCLOSURESESG Supplement

ESG Briefing

Annual eventto brief
investors on
ESG matters

ESG information& progressagainst our ESG
targets

https://www.anz.com.au/aboutus/esg/reporting/esg-reporting/

Human Rights

Our
approach tohuman rights

https://www.anz.com.au/about-us/esg-priorities/fairresponsible-banking/human-rights/

Climate Change Disclosures

Climate changecommitment andclimate related
financialdisclosures

https://www.anz.com/content/dam/anzcom/shareh
older/ESG-Investor-presentation.pdf

https://www.anz.com.au/about-us/esgpriorities/environmentalsustainability/climate-change/

Housing

Financial Wellbeing

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

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

https://www.anz.com.au/about-us/esgpriorities/financial-wellbeing/222022 ESG INVESTOR DISCUSSION PACKESG AT A GLANCE1ENVIRONMENTSOCIAL

GOVERNANCE

SUSTAINABLE FUNDING &FACILIATION2EMPLOYEE ENGAGEMENTTRAINING
UNDERTAKEN$31b
of our targeted $50b commitment by 2025

RENEWABLE ENERGY

36%
of our operations were powered by renewableelectricity in 2021 (against our target of 100%by 2025)84%
Engagement score from My Voiceemployee survey 2022

36.6
Average hours of training
per non-manager

RECRUITMENT FROM UNDERREPRESENTED GROUPSLEARNING AND
DEVELOPMENT

255$49.2mincluding Aboriginal and Torres Strait Islander
peoples, people with disability and refugees

Investment in 2021

1.

Data as at 30 September 2021 other than Sustainable funding and facilitation as at March 2022 and My Voice employee engagement survey as at August 2022

2.

This information has not been independently assured

232022 ESG INVESTOR DISCUSSION PACK

SNAPSHOT OF 2022 HALF YEAR ESG TARGET PERFORMANCEESG target

Progress

Relevant SDGs

ENVIRONMENTAL SUSTAINABILITY
Fund and facilitate at least AU$50 billion by 2025 towards sustainable solutions for our customers,
including initiatives that help improve environmental sustainability, support disaster resilience,increase access to affordable housing and promote financial wellbeing

Since October 2019, we have funded and facilitated AU$31 billion to support sustainable
solutions for our customers

Engage with 100 of our largest emitting customers to encourage them to strengthen their low
carbon transition plans so that more customers achieve a ‘well developed’ or ‘advanced’ rating; andenhance their efforts to protect biodiversity, by end 2024

We continue to engage with 100 of our largest emitting business customers, encouraging
them to strengthen their low carbon transition plans and enhance their efforts to protect
biodiversity

FINANCIAL WELLBEING
Establish seven new partnerships to expand the reach and improve impact of MoneyMinded, ouradult financial education program, by 2023

Since October 2020, we have established four new partnerships across Australia, New
Zealand and the Pacific, to expand the reach and improve the impact of MoneyMinded

HOUSING
Fund and facilitate AU$10 billion of investment by 2030 to deliver more affordable, accessible andsustainable homes to buy and rent (Australia /New Zealand)

Since October 2018, we have funded and facilitated over AU$4 billion of investment tosupport the delivery of more affordable, accessible and sustainable homes to buy and rent

Support more customers into healthier homes with our Healthy Home Loan Package and Interestfree Insulation Loans – through a 2% increase of funds under management and a 4% increase incustomer numbers by 2025 (New Zealand, off a 2021 baseline)

Since October 2020, we have supported 1,396 households into healthier homes, throughour Healthy Home Loan Package and our Interest-free Insulation Loans

FAIR AND RESPONSIBLE BANKING
Implement ANZ’s new Customer Vulnerability Framework, including enhanced training of 5,000
employees to build their capabilities with respect to identifying, supporting and referring impacted
customers, by end 2022 (Australia)

We are implementing our Customer Vulnerability Framework

Achieve the 17 actions in our Reconciliation Action Plan, by end 2024 (Australia)

We continue to work towards achieving the 17 actions in our new Reconciliation Action
Plan by end 2024

Enhanced training has been delivered to 3,200 employees to date

OUR ESG TARGETS SUPPORT 12 OF THE 17 UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
Note: This information has not been independently assured. KPMG will provide assurance over ANZ’s full year performance against targets in its annual ESG reporting to be released in November 2022. Results as at 31 March 2022
See our 2021 ESG Supplement for the complete suite of FY21 ESG targets and details on full year performance242022 ESG INVESTOR DISCUSSION PACKESG PERFORMANCE TRENDS
COMMUNITY INVESTMENT1MONEYMINDED & SAVER PLUSSUSTAINABLE FINANCE $50b TARGET3

Total community investment ($m)

Estimated # of people reached

Funded and facilitated ($b)
Annual contributions towards
ANZ’s 2020 $15bn target

131.0

142.2

136.9

139.5

139.7

80,07488,30890,72412.9
61,367

2017

2018

2019

2020

2021

2017

2018

Annual contributions towards
new 2025 $50bn target

2019

2020

67,620

9.1

7.6

2021

4.5

4.6

2017

2018

2019

2020

EMPLOYEE ENGAGEMENT2ENVIRONMENTAL FOOTPRINT TARGETWOMEN IN LEADERSHIP4

Employee engagement score (%)

Scope 1 & 2 greenhouse gas emissions (k tonnes CO2-e)

Representation (%)

72

2017
1.
2.
3.
4.

73

2018

77

2019

86

2020

81

2021

84

2022

181

2017

171

2018

157

2019

134

2020

31.1

32.0

32.5

33.4

2017

2018

2019

2020

2021

35.3

35.4

2021

2022

111

2021

Figure includes forgone revenue (2021 = $106m), being the cost of providing low or fee-free accounts to a range of customers such as government benefit recipients, not-for-profit organisations and students
The 2017 My Voice engagement survey was run as a pulse survey sent to 10% of the bank’s employees with a 57% response rate. For all other years the My Voice employee engagement survey was sent to all staff. 2022 as at August 2022
2016 – 2019 figures represent annual contributions towards ANZ’s 2020 $15bn sustainable solutions target, which had an environmental focus. In FY20, ANZ set a new 2025 $50bn target with an expanded focus on environmental sustainability, housing and financial wellbeing.
2020-2021 figures represent annual contributions towards ANZ’s 2025 $50bn target
Measures representation at the Senior Manager, Executive and Senior Executive Levels. Includes all employees regardless of leave status but not contractors (which are included in FTE). 2022 % as at 31 July 2022. This information has not been independently assured

25

2022 ESG INVESTOR DISCUSSION PACKHOW WE MEASURE AND COMMUNICATE
EXTERNAL REPORT CARD – REPUTATION INDICATORSCONTEXT• Reputation indicators are increasingly being used byinvestors and analysts to understand our approach to
ESG issues and to measure our ESG performanceagainst our peers.
• We are rated based on our ESG disclosures, analysis of
media coverage and, in the case of S&P, a detailed
survey. Indicators are firmly weighted towards
governance and how we manage staff and customers.

In 2022, ANZ received an ESG Risk Rating of 19.4 (out of100, lower = better) and was assessed by Sustainalytics to
be at low risk of experiencing material financial impacts
from ESG factors, down from 24.2 & medium risk in 2021

In 2022, ANZ received a rating of AA (on a scale of
AAA-CCC) in the MSCI ESG Ratings assessment, up
from A in 2020.

In 2022, ANZ received a rating of C (on a scale of A+ to D-) in
the ISS ESG Corporate Ratings assessment

In 2022 received SAM Silver Class distinction with a score of 85(out of 100) in the 2021 Dow Jones Sustainability Indices
Corporate Sustainability Assessment

We achieved a CDP climate disclosure
score of A- in 2021

Disclaimer: The use by ANZ of any ESG research data, logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of ANZ by those companies.

26

2022
ESG INVESTOR BRIEFING
12 SEPTEMBER 2022
ENVIRONMENT

2022 ESG INVESTOR DISCUSSION PACKA GLOBAL TRANSFORMATION IS REQUIREDTRANSITION TO NET ZERO REQUIRES ~$125 TRILLION¹ IN INVESTMENT, WITH >50% REQUIRED ACROSS ASIA–PACIFIC REGION

1.
2.
3.
4.
5.
6.
7.
8.
9.

Critical minerals sector2

Transitioning energy from highto low carbon

Electrification of transport

Food, beverage andcommodities

Globally expected to double to US$100b
by 20303

E.g. renewable energy projects pipeline
carries global investment value of~A$270b4

Sector likely to need total transition spendof US$10 trillion 5, as the world converts toelectric vehicles

Sector likely to need A$5.7b6 ininvestment each year to meet net zero by2050

Basic materials and newtechnologies

Property

Environmental markets9

ESG advisory

Projected global hydrogen demand~200Mt - ~400Mt from 2040 to 20507>60 global carbon capture use & storage
projects operational/in train8

A$3b6 in investment each year in Australia
and New Zealand to meet net zero by
2050

Expected to increase 15x by 20306 driven
by net zero commitments

Increasing requirements for corporates &funds to develop / deliver environmental
sustainability strategies

Source: Vivid Economics, McKinsey
Includes: Lithium, Copper, Nickel, Cobalt and rare earths
Source: Department of Industry, Science, Energy and Resources and Australian Trade and Investment Commission Australia’s Critical Minerals Strategy (2019)
Source: Bloomberg NEF, ANZ Research
Source: ANZ and McKinsey
Source: McKinsey
Source: Australian Hydrogen Council’s ‘National Hydrogen Strategy’Source: ANZ
Includes: Sequestration, carbon-offsets, reduction and environmental market units282022 ESG INVESTOR DISCUSSION PACKMANAGING CLIMATE RISKACTIVELY MANAGING CLIMATE RISK WITHIN OUR GROUP RISK MANAGEMENT FRAMEWORKThe risks and the opportunities of climate change:• Engagement with our largest emitting business customers on the work they’re doing to transition to a low carbon future• Understanding significant reductions in the cost of energy alternatives, aided by new technology• Understanding how the transition to net zero emissions will impact global demand for natural resources and the flow-on effects to prices• Engaging with our regulators on climate risk guidance for banks and financial institutions

Recent actions to actively manage climate risk:• Continued to improve our management of climate risks through workstreams focused on regulatory monitoring, policy & processes, risk appetite, data and analytics• Refined our Risk Appetite Statements for Institutional and included climate risk in lending criteria documents in the Australia Retail, Commercial and New Zealand portfolios• Participated in APRA’s Climate Vulnerability Assessment, which examined the material climate-related exposures and financial risks• Out of this, we are considering: a data strategy for sourcing climate risk data; further training to uplift capabilities in climate scenario analysis; and work to further integrate
climate change risk assessment into our credit processes• Participated in APRA’s Prudential Practice Guide CPG 229 self-assessment survey, along with 63 other APRA-regulated entities. The voluntary survey was designed to provide insights
into how we are aligning our practices with the expectations set out in CPG 229. We will use the results of the peer benchmarking to consider any potential enhancements to ourapproach in applying CPG 229

29

2022 ESG INVESTOR DISCUSSION PACKOUR CLIMATE CHANGE COMMITMENTOUR KEY FOCUS AREAS

1

2

3

4

Supporting customers andindustries to transition

Aligning our lending decisions to
the Paris Agreement goals

Reducing our footprint

Engaging constructively andtransparently with stakeholders•

Implementing our environmental
sustainability strategy
Providing finance, services and advice• Setting targets for renewableelectricity usage, loweringgreenhouse gas emissions• Engaging with our largest emitting
business customers••

Supporting an orderly transition• Metrics, pathways and targets to
support low emissions lending(including two emissions intensity
reduction targets for large-scalecommercial buildings in Australia
and global power generation)• Empowering and educating our
employees• ESG market briefings androundtables• Reporting risks and opportunities
using TCFD recommendations30

2022 ESG INVESTOR DISCUSSION PACKCUSTOMER ENGAGEMENT TO SUPPORT EMISSIONS REDUCTIONS
100 OF OUR LARGEST EMITTING BUSINESS CUSTOMERS•Engaging with 100 of our largest emitting business customers, supporting them to establish or strengthen transition plans•

These customers produced >150 million tonnes of direct (Scope 1) CO2 emissions during 2019–20 for their Australian-based operations. This is ~ 30% of the national total for Australia•

We consider three key elements constitute a robust low carbon transition plan: governance, targets and disclosures (preferably aligned with the Taskforce on Climate-related
Financial Disclosures)•

We are seeing good progress: customers have improved their governance, strategies and targets or disclosures••

Many customers have clearly demonstrated their intention to develop Paris-aligned or science-based targets•

As part of our engagement we expect more customers to make substantive progress towards their targets and improve their plans

We are also encouraging them to establish or strengthen their approach to biodiversity through effective Board governance, policies, strategies and disclosures using recognised
indicators or metrics

100 OF OUR LARGEST EMITTERS – BY CATEGORY¹
40

Customer transition plans in 2021
were grouped into levels of maturity

30

(A)

ADVANCED

20(B)

DEVELOPING/INTERMEDIATE

10

(C)

UNDERDEVELOPED/STARTING OUT(D)NO PUBLIC PLANS

0

1.
2.
3.
4.

100 OF OUR LARGEST EMITTERS1 – BY SECTOR

A

B

C

D

Data as at September 2021
Includes steel, aluminium
Includes coal, oil and gas
Includes education, telecommunications, waste management, healthcare facilities and accommodation% based on Exposure at Default
Manufacturing2
~25%

~30%

Electricity Gas & Water Supply
Transport and Storage

~10%
~15%

Resources (Mining)3~20%

Other4• ~60% NZ/INTERNATIONAL• ~40% DOMESTIC

31

2022 ESG INVESTOR DISCUSSION PACKPROGRESS WITH OUR 100 LARGEST EMITTING BUSINESS CUSTOMERSEXAMPLES OF IMPROVEMENT THROUGH CATEGORIESADVANCED

DEVELOPING / INTERMEDIATEUNDERDEVELOPED / STARTING OUT

B

C

A

NO PUBLIC PLANS

D

ENERGY COMPANY

DIVERSIFIED INDUSTRIAL COMPANY

LARGE COMMODITIES COMPANY• During our engagement, customer has moved up
from Category B to Category A• Governance: • Targets: • Disclosures: • During our engagement, customer has moved up
from Category C to Category B• Governance: • Targets: • Disclosures: • During our engagement, customer has moved up
from Category D to Category C• Governance: • Targets: • Disclosures: • Customer:• Customer:• Customer:• In place / met In progress

Acknowledges climate risk is a material risk
and opportunity; has well-developed plans
and actions (by reference to their governance,
targets, disclosures, and committed to net
zero emissions by 2050)•

Climate resilience is a key pillar of its
sustainability strategy•

Public goal of net zero emissions by 2050
across its portfolios•

TCFD-aligned reporting•

Strong governance in place to manage
climate risk•

At a developing / intermediate category:
acknowledgement, well developed plans andactions•

At an underdeveloped / starting out category:
acknowledgement, but with limited plans
and/or actions•

Public climate change commitment; climate
issues are considered by Sustainability
Management Committee that reports to its
Board

•

Sustainability and climate risk discussed with
Board Risk Committee at regular intervals;
Chairman and CEO oversee their climate
approach•2030 emissions reductions targets in place••

Reports using the TCFD guidelines, scope to
improve

Has targets to reduce ‘emissions intensity’
across some of its operations••

A long-term vision of striving for net zero by
2050

Moving towards TCFD-aligned reporting; hasa ‘TCFD index’ in its reporting322022 ESG INVESTOR DISCUSSION PACKANZ’S $50 BILLION SUSTAINABLE FINANCE TARGETHELPING IMPROVE THE ENVIRONMENTAL SUSTAINABILITY OF CUSTOMERS
Target to fund and facilitate at least A$50 billion by 2025 towards helping our customers improve environmental sustainability, increase access to affordable
housing and promote financial wellbeing
1H22 progress1• ~A$31 billion of our targeted A$50 billion sustainable funding and facilitation commitment by 2025 completed since October 2019
• ~A$19 billion of transactions are on balance sheet loans and other credit lines provided to borrowers by ANZ, whilst ~A$12 billion have been facilitated,
including through advisory services; ESG-format bonds; and loans initially underwritten by ANZ and subsequently sold on to other lenders• 266 transactions have contributed towards 10 Sustainable Development Goals (SDGs)
FUNDED2

FACILITATED3
Sustainability-Linked facilities

ESG-format Bonds

Affordable Housing

Advisory

Sustainable Development

Green Buildings / Renewable Loan Distribution

Energy~A$19b(Mar-22)

Transport
Green Building
Water~A$12b(Mar-22)

Waste
Info. & Communication Technology
Environmental Markets
1.
2.

3.

This information has not been independently assured
Energy: wind, solar, battery, transmission infrastructure, energy transition and energy efficiency; Sustainability-linked facilities: corporate loans to borrowers across multiple industry sectors where terms are linked to improved performance against agreed environmental and / orsocial targets that reflect the borrower’s material sustainability risks, e.g. emissions reduction, increased renewable energy consumption, labour force diversity; Sustainable development: includes credit lines to global development banks and agencies providing support toemerging economies / social component of sustainability loans; Transport: low carbon transportation projects such as light rail, electric vehicle manufacturing; Environmental markets: corporate loans for businesses in environmental/carbon project development which facilitate
the transition to net zero or create nature positive outcomes; Information and communication technology: networks, management and communication tools which facilitate the transition to net zero, e.g. power management, broadband
Green buildings / renewables loan distribution: loans initially underwritten by ANZ and subsequently sold onto other lenders, e.g. other banks, fund managers and super funds; ESG format bonds: green, social, sustainable, sustainability-linked and transition bonds and other ESG
related bonds within the sustainable finance market

332022 ESG INVESTOR DISCUSSION PACKSUSTAINABILITYSUSTAINABLE BOND LEAGUE TABLES1

WHERE WE’LL SUPPORT OUR CUSTOMERSAustralian Sustainable Bond Cumulative League Table
Bookrunner (Ranking on Market share)

VolumeNo. of deals

Market share

ANZ (#1)

$9.9b

43

16.1%

Closest peer (#2)

$6.1b

40

10.0%

New Zealand Sustainable Bond Cumulative League Table

1.

Bookrunner (Ranking on Market share)

VolumeNo. of deals

Market share

ANZ (#1)

$7.0b

44

34.0%

Closest peer (#2)

$5.8b

33

28.0%

Electrifying thetransportation
value chain

Increasing
our support
for companies intransitioning
energy fromhigh to low
carbonSupporting
sustainability inresource extraction,
basic materials &new technologies

Enabling
transition
towards lower
emissionsbuildings

B

Offering
Environmental
Sustainability
solutions / partneringwith ES focused FIs

Assistingsustainable
food, beverage& agriculture
practices andsupply chains

All issuers, Includes all sustainable bonds issued in the Australian and New Zealand markets by local and international issuers. 1 Jan 2014 to 2022 YTD. Source: KangaNews 4 August 2022

34

2022 ESG INVESTOR DISCUSSION PACKGROWTH IN SUSTAINABLE FINANCESPOTLIGHT ON ANZ’S SUSTAINABLE FINANCE BUSINESS1HIGHLIGHT DEAL

During the first three quarters of FY22, ANZ’s sustainable finance team completed 97
deals worth more than A$100b

Endeavour Energy• A 76% increase in the number of deals compared with the same period in FY21.
46 of the deals were sustainability-linked loans• ~A$62b (45 deals) was from International; ~A$30b (35 deals) was from Australia;~A$9b (17 deals) was from New Zealand• ~A$35b (31 deals) from Diversified Industries; ~A$26b (22 deals) from Resources,
Energy and Infrastructure; ~A$21b (19 deals) from Financial Institutions Group;~A$8b (17 deals) from Property and Health; and ~A$12b (8 deals) from Food,
Beverages and Agriculture

A$920m sustainability-linked loan
The deal• In March 2022, Endeavour Energy signed its inaugural sustainability-linked loan(“SLL”), the first known SLL for an Electricity Distribution Network Service Provider• The financing supports Endeavour Energy’s commitment to drive enhanced
environmental performance and to improve sustainability outcomes; the SLL
includes ambitious sustainability performance targets across greenhouse gas
emissions reduction, landfill waste diversion, net habitat gain, and mental health &wellbeing
ANZ’s role
• ANZ acted as the Joint Sustainability Coordinator and Joint Lead Arranger

DEALS IN FY22 YTD (9 months)• This inaugural deal was structured in line with market best practice aligned to the
APLMA sustainability-linked loan principles, including external review.
25%

31%

97
8%

Diversified Industries
Food, Beverage & Agriculture
Financial Institutions

Deals

Property & Health
12%Resources, Energy & Infrastructure

Highlights• The term facility is believed to be the first Sustainability Linked Loan for an
Electricity Distribution Network Service Provider in Australia• Transaction received strong support with 17 domestic and international banksjoining after a syndication process

21%

1.

Data is unaudited35

2022 ESG INVESTOR DISCUSSION PACKCUSTOMER ENGAGEMENT – FINANCING SUSTAINABILITY

GREEN LOANS

ESG-FORMAT BONDS

Lending to deploy capital into green
initiatives, where borrowers are required toinvest in qualifying green assets or where loan
terms are linked to improved performanceagainst agreed sustainability targets

Distribution of capital into green, social,transition and sustainability initiatives, e.g.
green buildings, renewable energy or wherebond terms are linked to improved
performance against agreed sustainability
targets

HIGHLIGHT DEALHIGHLIGHT DEAL•

November 2021 – New A$1.45b 5-year Green
Loan for The Intellihub Group, an Australianand New Zealand based smart utility
infrastructure-as-a-service company, in
support of its rapid rollout of smart electricity
meters across Australia and New Zealand•World’s first certification under Climate Bonds
Standard Electrical Grids and Storage Criteria•

ANZ was Sole Green Coordinator Joint
Arranger, and Lender•

April 2022 – A$800m transaction represents
the largest AUD green bond offering by anAustralian corporate on record and is also
the largest single tranche ESG-format bondoffering in the corporate A$MTN market•

Allowed NBN to further expand investor
base, attracting several new high-quality
investors, which were integral to thetransaction•

ANZ acted as Joint Sustainability
Coordinator and Joint Lead Manager

ANZ/CLEAN ENERGY FINANCECORPORATION ENERGYEFFICIENCY ASSET FINANCE
PROGRAM

GREEN AND SUSTAINABLE
INFRASTRUCTURE PROJECTFINANCE•

Project financing to support thedevelopment of long-term sustainableinfrastructure

Financing that incentivises small-to-medium
sized business customers to invest in energy
efficient and renewable energy technologies
that will help reduce their energy costs andcarbon emissions

HIGHLIGHT DEALHIGHLIGHT

June 2022 – The ~A$250m debt refinancing
supports TESA Education, the consortium
delivering the South Australian (SA) Schools
Public Private Partnership (PPP) Project inpartnership with the SA Government. The
consortium is comprised of Tetris Capital,
DIF, Sarah Constructions and ISS•

Project’s Sustainability Loan was accredited
on project-specific factors as a green andsocial loan in this refinancing•

ANZ was Sole Sustainability Coordinatorand Lender

•

•

•

August 2022 – ANZ announced extension of
A$200m funding program with the Clean
Energy Finance Corporation (CEFC) to help
ANZ business customers transition to net
zero emissions
Small to medium sized business customers
will continue to have access to a 0.50 basis
point discount on their asset finance rate for
eligible energy efficient related assets andprojects
Over the past 5 years, ANZ has been working
with CEFC in helping to support Australianbusinesses invest in emission reducing
infrastructure that will be resilient to achanging climate362022 ESG INVESTOR DISCUSSION PACKANZ RESOURCES PORTFOLIORESOURCES PORTFOLIO (EAD1 $b)

20.0
1.7
0.6
1.3
2.9

17.3
16.2
1.2

0.4

1.1
1.7

0.8
1.0

0.3

4.0

Sep 15

Thermal Coal Mining

1.

15.3
0.7

0.9

0.7

1.0

0.8

0.9

1.5

1.2
0.4

5.2

5.4

0.6

7.0

7.4

8.2

Sep 16

Sep 17

Sep 18

Sep 19Other Mining

Services to Mining

Metal Ore Mining

8.2

Sep 20

0.5
1.0

0.4
0.7

1.0
3.9

7.8

13.8

13.0

1.2

4.4

3.5

Metallurgical Coal Mining

0.5

17.0

1.2

1.4

4.9

8.6

0.7

14.0

0.8

4.8

5.9

6.4

Sep 21Mar 22

Oil & Gas Extraction

Exposure at Default

37

2022 ESG INVESTOR DISCUSSION PACK

BIODIVERSITYEXPANDING THE SCOPE OF OUR CUSTOMER ENGAGEMENT TO INCLUDE BIODIVERSITY FOCUS•

Biodiversity risk is recognised across our sensitive sector lending policies

THE NATURE CONSERVANCY GREAT CUMBUNG SWAMP•

Upgraded biodiversity focus acknowledged in our Climate Change Commitment•

Customer engagement to date indicates a group of leaders – some with ‘no net loss’
and others ‘positive impact’

ANZ financed a transaction involving the largest acquisitionof private property for blended sustainable agricultural andconservation land-use in Australia. Project outcomes include
generation of environmental credits (water, carbon,
biodiversity) and land management returned to traditionalcustodians (Nari land use tribe)•

Larger group of customers have developing focus and response

TIVERTON AGRICULTURAL IMPACT FUND•

Engagement is helping refine our screening, improving our knowledge, enhancing
capacity to further engage

ANZ helped finance the Fund’s investment into a West
Australian carbon reduction and offsets solutions company
to expand its portfolio and project development forenvironmental carbon credits•

Participating in the Taskforce on Nature-related Financial Disclosures (TNFD) forum

38

2022
ESG INVESTOR BRIEFING
12 SEPTEMBER 2022
SOCIAL2022 ESG INVESTOR DISCUSSION PACKFINANCIAL WELLBEING RESEARCHBETTER UNDERSTANDING OF WHAT DRIVES FINANCIAL WELLBEINGThe 2021 ANZ Financial Wellbeing Survey1 is the seventh national survey of Australian adult’s financial capability, attitudes, behaviours and wellbeing since 2002

Financial wellbeing is the extent to which someone is able to meet all their current commitments andneeds comfortably, and has the financial resilience to maintain this in the future.
Key findings:• Socio-economics had a larger role to play than previously thought accounting for 54.5% of a person’s
overall financial wellbeing• Health, unemployment, earning potential and life-stage were the most significant socio-economic
factors affecting financial wellbeing. Physical and mental health was the largest disruptor to financial
wellbeing, accounting for 13.7% of a person’s financial wellbeing score• An individual’s personality traits had a significant impact on financial wellbeing (accounting for 13.4%of their score) with optimism, future orientation, impulsivity and frugality the most influential• Financial behaviours including saving and spending behaviours, investment behaviours and money
management behaviours have a strong role to play, together accounting for 19.3% of the financial
wellbeing score. Active saving, not borrowing for everyday expenses and spending restraint continued
to be most important for building financial resilience• Financial confidence and control had a direct impact on behaviours such as saving, spending,borrowing for everyday expenses or investing in longer-term assets such as property and shares• 80% of Australians felt confident in their ability to manage their money day-to-day, but only 48% of
people struggling felt confident. Similarly, 67% of Australians felt confident in their ability to plan
their future, whereas only 22% of people struggling felt confident• 17% of Australians felt their financial situation was largely outside of their control. This was a greater
concern for people with low financial wellbeing, with 47% of people struggling feeling this way
1.

FINANCIAL WELLBEING
CATEGORIES IN AUSTRALIAFINANCIAL WELLBEING SCOREBY LIFE-STAGE (OUT OF 100)

43%

77

Doing OK
Australia Avg. (64)

17%

59

64

58

Getting by

11%
Struggling

29%
No worries

Young Young Older Retirees
adults families families

https://www.anz.com.au/about-us/esg/financial-wellbeing/40

2022 ESG INVESTOR DISCUSSION PACK

SAVER PLUS
SUPPORTING LOWER INCOME EARNERS BUILD A SAVINGS HABIT
Saver Plus is a financial education and matched savings program developed by ANZ and the Brotherhood of St Laurence in 2003.
It is funded by ANZ and the Australian Government and delivered in partnership with Berry Street and The Smith Family
17% of Australians are getting by in regard to their financial wellbeing• They are more likely to be women, have dependents and be part-time workers• Almost one-quarter do not have any savings, with more than half reporting to have less than twomonth’s income in savings• They had lower than average insurance ownership and 6% were unable to make a scheduled loan
repayment several times each year or more
• 63% felt anxious about their future financial situation and 63% did not have superannuation
The solution:• The Saver Plus program supports lower income earners to build a savings habit, access financial
education support and receive up to $500 from ANZ to support their own or their children’s education
The impact:• 50,000+ participants• More than 90% of participants are women, half of all participants are single parents and 80% are notworking full-time• $26+ million saved by participants and $21+ million matched by ANZ• Long-term behaviour change: 87% of participants save the same amount or more 3-7 years after
program completion• Increased financial wellbeing score from 36 to 64
Target:• Contributes to supporting 1.3 million customers to save regularly, by end 2022

Katrina’s story, South Australia
Katrina is a single mother who joined Saver Plus with the goal of saving fortechnology items for her daughter’s schooling. In the past, Katrina tried to save,but it was sporadic. As a result of Saver Plus Katrina now prioritises saving and has
established a regular savings plan and budget. Katrina discovered she had a lot ofsmall spending on unnecessary items which all added up to a large amount. She
is now very careful of her daily spending on small things that she doesn’t need
like take away coffees.
With the savings knowledge she has now, Katrina
wishes she could go back to her earlier years andsave much more, with an emergency fund set aside
for unexpected expenses.
She now saves regularly and has passed theknowledge she gained through the program onto
her daughter.

“When my daughter asks for something, we now
discuss if it is a ‘need’ or a ‘want’.
If it is a want, I can suggest that she save up for theitem”, says Katrina.

412022 ESG INVESTOR DISCUSSION PACKMONEYMINDEDTRAINING AND TOOLS TO HELP BUILD MONEY SKILLS AND CONFIDENCE
MoneyMinded is an education program that builds financial skills, knowledge and confidence to help participants make informed decisions about how to manage money

The context:• The Recognised Seasonal Worker (RSE) program in New Zealand plays a crucial role in filling gaps in
New Zealand’s workforce while delivering economic benefits and skills to the Pacific• An opportunity existed to support participants make the most of their income and maximise savings
while working in New Zealand
The solution:• MoneyMinded is an adult financial education program developed by ANZ in 2002. It supports
individuals on lower incomes and from disadvantaged communities to build their financial skills,
knowledge and confidence so they can make informed decision about how to manage their money• MoneyMinded is being delivered to RSE participants as part of their pre-departure briefings
The impact (global, since 2002):• Estimated 789,000+ participants• Increased financial wellbeing score from 36 to 69 out of 100
Target:• Establish seven new partnerships to expand the reach and improve impact of MoneyMinded forpeople experiencing vulnerability, by end 2023

Manueli’s story, Dogatuki village in Fiji
Growing up, Manueli was raised by a single father. They struggled and moved
frequently, never having a place of their own to call home.
In 2016, Cyclone Winston destroyed the house they were living in. That same year,
Manueli was chosen to participate in a Recognised Seasonal Worker (RSE)
program in Hawkes Bay, New Zealand.
Manueli took part in MoneyMinded training as part of his pre-departure briefings.
The financial education helped him establish clear goals for the money that hewould earn while working in New Zealand.
“I’m really, really thankful to you guys” .
MoneyMinded was the first time Manueli had ever beentaught about budgeting, saving and money skills. In
particular, he credits the vision board and the module on
assertiveness as the keys to helping him to achieve hisgoals.
Manueli has now completed four seasons of RSE work in
Hawkes Bay, meeting people from Samoa and Tonga whohave also taken part in MoneyMinded training. They
motivate each other to stay focused on achieving theirgoals.
His wife, Milika, has now taken part in MoneyMindedtraining too, because Manueli knows that with carefulbudgeting, planning and through the practical life skills
that MoneyMinded offers, your life can change.

422022 ESG INVESTOR DISCUSSION PACKFINANCIAL WELLBEING – YOUR MONEY REPORT & SAVINGS GOALSHELPING OUR CUSTOMERS TO UNDERSTAND THEIR SPEND AND SAVE FOR THEIR GOALSYOUR MONEY REPORT1

SAVINGS GOAL AND NOTIFICATIONS FEATURE2• Your Money Report available monthly via ANZ App and Internet Banking is a
PDF report that shows a monthly and 12-month view of money in versus
money out, categorized by category and merchant.
• In-app notifications have been encouraging customers to view their monthly
Your Money Report. As at end of July 22, 3.1m nudges have been sent to 1.9m
customers with 12.6% of these been seen by customers.
• ANZ Financial Wellbeing Program link connects customers with tools and ideas
which could help them change their money habits for the better.
• Since going live in Oct 21, there has been over 669k unique views to date.

• 705k+ goals have been set up by customers in the ANZ App••••

Top goals as a % of total savings goals: House 20%; Holiday 15%; Car 11%
Over 58.3 million in app notifications sent to 2.6 million customers (at Jun 22)‘Home goal’ – customers with these notifications were the most engaged
Customers with a goal• have a savings balance 2x that of a customer without a goal• save nearly 2x faster than they did before setting a goal

SAVINGS GOALS (#000 set a savings goal, cumulative3)
634
429

705

494

325

Sep 201.

Eligible ANZ accounts only

2.

At July 2022

3.

Launched end October 2019, represents total savings goals set through the ANZ App (Australia). 2022 numbers are unaudited

Mar 21

Sep 21Mar 22

Jul 2243

2022 ESG INVESTOR DISCUSSION PACKFINANCIAL WELLBEING – ANZ PLUS
ANZ PLUS: DIGITAL FIRST A PLUS FOR FINANCIAL WELLBEING

Financial wellbeing is the guiding principle for ANZ Plus
Provides tools and insights to help customers better manage
their money by spending less, saving more and building
healthy money habits

MORE VISIBILITY
AND CONTROLSET MULTIPLE
SAVINGS GOALS

IN-APP SUPPORTFINANCIAL WELLBEING COACH APPOINTMENTS

Active saving - a key behavioural driver of financial wellbeing1
ANZ Plus allows you to set and track multiple goals and earninterest on all goals under your ANZ Save accountCustomers have visibility of their spending
ANZ Plus shows money in and money out, spending by
category, detailed transaction data and upcoming expense
predictions
Financial Wellbeing appointments with a Coach
Available for ANZ Plus customers via phone or in Store1.

findings from ANZ’s Adult Financial Wellbeing Survey

442022 ESG INVESTOR DISCUSSION PACKACCESS TO HOUSING CHOICE
DELIVERING MORE HOUSING OPTIONS FOR AUSTRALIANS
ANZ’s housing target is to fund and facilitate $10 billion in investment by 2030 for more affordable, secure and sustainable homes to buy and rent. We continue
to invest in customers and projects that best support deliver of housing supply into the market. Our recent half year results are testament to that, with over $4.4
billion having been funded and facilitated into the housing sector in just over three years.
NEW HOUSING SUPPLYThe Assemble model is a global first, delivering a Build
to Rent to Own model into the Australian marketplace.
ANZ provided the funding for the first project, which is
now complete with residents moved into their new
homes in August 2022.
This model seeks to overcome two major hurdles in themarket, security of rental tenure and the deposit gap
challenge.
ANZ also continues to lead the way on supporting
emerging asset classes including:• the lead commercial financer of Specialist Disability
Accommodation• leading commercial financer for Land Lease
Communities, an emerging growth market inretirement living, offering an affordable housing
option for the over 55’s market. ANZ has $1.33bn offunding in place• backing Build to Rent to support a growing pipelineof sustainable rental housing, that seeks to provide
security of tenure with an additional focus on projectpipelines offering affordable housing and/or
partnerships with community housing providers

BOND MARKETANZ is proud to be the sole domestic bank that has
been able to support all of National Housing Financeand Investment Corporation’s bond issuances(totalling nearly $2b) into the market.
We welcome the Australian government’s ongoingcommitment to the bonds being backed bygovernment guarantee. This is the beginning of thejourney to have social and affordable housing
recognised as an asset class.
Our ongoing partnerships with Kāinga Ora (Homes andCommunities) has continued with ANZ acting as joint
lending manager on a wellbeing bond issuance bysubsidiary Housing New Zealand, which helped fundsustainably constructed affordable, sustainable homes.

GREEN HOMES, RETAIL
In 2022, ANZ continues to support New Zealanders
looking to address rising energy and fuel costs andimprove the environmental sustainability of theirhomes; encouraging better housing standards for bothowner occupiers and renters in New Zealand through:Our Healthy Home Loan Package.
• This package offers discounts on home loan interest
rates and other benefits for energy efficient homes
Customers can apply for the package if they arebuying, building, renovating, or already own a homewith a 6 Homestar rating or higher.
This year, ANZ launched a new low-interest home loan
rate for customers wanting to increase the energy
efficiency of their home.
• The ANZ Good Energy Home Loan top up allows
customers to borrow up to NZ$80,000 at a 3-year
fixed rate of 1% per annum• The loan can be used to upgrade homes with solar
panels, heating and insulation, double glazing,
ventilation systems and rainwater tanks. It can also
be used for electric and hybrid vehicles, and EV
chargers

45

2022 ESG INVESTOR DISCUSSION PACK

DIVERSITY AND INCLUSION AT ANZ
VISION IS FOR THE COMBINED POWER OF OUR DIVERSE WORKFORCE AND INCLUSIVE CULTURE TO IMPROVE DECISION MAKING
AND DRIVE INNOVATION, RESULTING IN FINANCIAL OUTPERFORMANCECOMMITMENTS AND ACHIEVEMENTS:

WOMEN IN LEADERSHIP¹PEOPLE WITH DISABILITY⁴

Board: 33.3%

ANZ Global: 3.7%

KMP²: 37.5%

ANZ Australia: 3.5%

Leadership³: 35.4%

ANZ New Zealand: 5.4%

• Launched Reconciliation Action Plan 2021-2024

LGB+ SEXUAL ORIENTATION4

INDIGENOUS PEOPLES4• Launched gender affirmation leave in Australia, New Zealand, India, thePacific and the Philippines(Asexual, lesbian/gay andbisexual/pansexual)

Aboriginal & Torres Strait Islander
people in ANZ Australia: 1.0%

Top Performer• Top 100 Graduate Employers 2022 (by applicants), Grad Connection• No.4 best place to work in Banking & Financial Services in Australia & NZ
Certification• Achieved Family Inclusive Workforce certification
Initiatives• Relaunched Notable Women program

ANZ Global: 8.3%

• Launched Mid Career Digital Jobs Program

ANZ Australia: 7.4%

Future commitment

Māori in ANZ New Zealand: 6.9%

ANZ New Zealand: 7.7%

• Preparing launch of our refreshed Accessibility Plan 2023-2025

1.

Numbers as at 31 July. This data has not been independently assured

2.

KMP refers to Key Management Personnel which is defined as Disclosed Executives as set out in the Remuneration Report contained within the Annual Report3.

Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes all employees regardless of leave status but not contractors (who are included in FTE)

4.

Results are based on the percentage of respondents who voluntarily self-disclosed in the anonymous ANZ My Voice employee engagement survey August 2022

46

2022 ESG INVESTOR DISCUSSION PACKSUPPORTING OUR PEOPLEONGOING WELLBEING AND MENTAL HEALTH SUPPORTRETURN TO OFFICE• Wellbeing 82%, Inclusion 83%1

Whilst ANZ has successfully operated a distributed workforce for many years, thepandemic has uplifted our flexible working capacity and capability and we arecommitted to hybrid working. In order to set ANZ and its employees up for success,we are:• Ongoing Mental Health and Wellbeing support:• Healthy Me Digital: resources dedicated to personal and professional
wellbeing, including 85 webinars delivered2• three live events with mental health and wellbeing experts• Focus on Mental Health First Aid:
• Australian pilot: 22 employees accredited to provide Mental Health First Aid(Global Accreditation) with the program and training being rolled out in 2023
• New Zealand: 206 leaders accredited to provide Mental Health First Aid (New
Zealand accreditation)

1.

ANZ My Voice employee engagement survey August 20222.

to 12 August 2022

• supporting our leaders to develop the skills required for leading hybrid teams• driving a global program of work to ensure people are making the most of inoffice and remote working opportunities• experimenting with our property and technology as key enablers of effective
flexible working.

47

2022
ESG INVESTOR BRIEFING
12 SEPTEMBER 2022
GOVERNANCE

2022 ESG INVESTOR DISCUSSION PACKESG GOVERNANCE OVERVIEWBOARD OF DIRECTORSPaul O'Sullivan, Chairman

AUDIT
COMMITTEERISKCOMMITTEE

Chair: Christine O’Reilly

Chair: Graeme Liebelt

Ethics and Responsible Business Management
Committee (ERBC)
Accountable to the Board EESG Committee. Chaired byCEO
A leadership & decision-making body that exists toadvance ANZ’s purpose. It generally meets five times per
year. It comprises senior executives from businessdivisions & Group functions

ETHICS, ENVIRONMENT,SOCIAL AND GOVERNANCE(EESG) COMMITTEE
Chair: Paul O’Sullivan

DIGITAL BUSINESSAND TECHNOLOGYCOMMITTEE
Chair: Jane Halton

HUMAN
RESOURCESCOMMITTEE
Chair: Ilana AtlasNOMINATION AND
BOARD OPERATIONSCOMMITTEE
Chair: Paul O’Sullivan

Risk Governance Oversight Committee

Climate Advisory Forum

Accountable and reports to the Board

Chaired by our Group Executive Institutional

Chaired by CRO

The forum supports the execution of our climate policy,
disclosures and related matters including climate
opportunities across the Group, subject to approval bymanagement and Board Committee, ERBC and EESG.

A leadership and decision-making body that exists tooversee ANZ’s response to the self-assessment ofgovernance, culture and accountability. It is comprised ofGroup Executives from business divisions and Groupfunctions.

49

2022 ESG INVESTOR DISCUSSION PACKBOARD AND EXECUTIVE COMMITTEES AT WORK TOGETHER
INDICATIVE RESPONSIBILITIES DEMONSTRATE HOW COMMITTEES MANAGE ESG

Ethics, Environment, Social and Governance Board Committee

Ethics and Responsible Business Management Committee

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, ethicaland balanced stakeholder outcomes

Oversight of the Ethics andResponsible Business Committee

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 and transactions we bankand how we bankOversight and approval of ANZ’ssustainability objectives

Oversight and approval of corporate
governance policies and principles

Review the fairness of ANZ’s
approach to customers

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

Oversight and approval of ESG
reportingOversight of elements ofWhistleblowing, including the policy
and the ANZ Code of Conduct andEthicsBrand and values are aligned with ourcommunity investment, strategic
partnerships and corporate
sponsorships

Review and decide sensitive
wholesale transactions

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2022 ESG INVESTOR DISCUSSION PACKBOARD ETHICS, ENVIRONMENT, SOCIAL AND GOVERNANCE COMMITTEE(EESG)
INDICATIVE AGENDA AND TOPICS COVERED, GENERALLY MEETS FOUR TIMES A YEAR1

Our priority areas• Housing• Financial wellbeing• Environmental sustainability

How we measure and communicate• Annual reporting suite, inc. ESG reporting• Setting and monitoring ESG targets• ESG external assurance• External assessments / reputational indicators

19%

14%

15%

Who we bank
• Climate change commitment and transition plans
for largest emitting customers• Biodiversity• Human Rights policy• Emerging ESG issues

1.

20%

How we bank
• Customer vulnerability strategy, including accessibility• Conduct• Uluru Statement from the Heart• Ethical decision making

32%

Governance• Materiality Assessment• Company Secretary reporting, including policy review, shareholding details,
directorships• Committee forward agenda• Review of Ethics and Responsible Business Committee minutes
ESG TOPICS DISCUSSED BY FULL BOARD OR OTHER BOARD SUB-COMMITTEES
•
•
•
•
•

Employment conditions, inc. remuneration policy and practices
Financial crime, inc. Anti-Money Laundering/Counter-Terrorism Financing
Cyber security
Regulator enforcement activity
Diversity and inclusion and accessibility

Indicative agenda and topics covered. FY22 to date (October 2021 to August 2022)

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2022 ESG INVESTOR DISCUSSION PACKETHICS AND RESPONSIBLE BUSINESS MANAGEMENT COMMITTEE(ERBC)
INDICATIVE AGENDA AND TOPICS COVERED, GENERALLY MEETS FIVE TIMES A YEAR1

Our priority areas• Housing• Financial wellbeing• Environmental sustainability

How we measure and communicate• ESG targets – reviewing and monitoring• External assessments / reputational indicators

24%

7%

Governance• Materiality Assessment• Governance framework for external societal issues
17%

Who we bank
• Industry sector reviews• Human rights policy and Modern Slavery• Climate change commitment and transition plans forlargest emitting customers• Biodiversity• Sensitive wholesale transactions

1.

Indicative agenda and topics covered. FY22 to date (October 2021 to August 2022)

2.

As at August 2022

28%

How we bank
• Customers experiencing vulnerability• Accessibility• Changing community standards• Scams and cybercrime

24%

COMMITTEE MEMBERSHIP2• Chair: CEO• GGM, ESG• GM Credit, Specialised Lending and Headof Social and Environmental Risk
• GGM, Group Strategy• Group Executive, Institutional

•
•
•
•
•
•

MD, Retail Banking
MD, Commercial and Private Banking, Australia
MD, Retail & Business Banking, New Zealand
Regional Executive, PacificHead of Research, Development and Financial Wellbeing
Customer Fairness Advisor

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2022 ESG INVESTOR DISCUSSION PACKFURTHER INFORMATION

https://www.anz.com/shareholder/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

Harsh Vardhan

Senior Manager
Investor Relations+61 3 8655 0878
+61 466 848 027
harsh.vardhan@anz.com

Retail Investors

Debt Investors

Michelle Weerakoon

Scott Gifford

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

Head of Debt
Investor Relations+61 3 8655 5683
+61 434 076 876
scott.gifford@anz.com

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