Cover images clockwise from top:
Graheme Lawrie, Amanda Wood,
Joanna Koulianos, Mark Buyck.
(ANZ Staff Members)

Contact

07
Shareholder Updatewww.anz.com
Contact 07 Shareholder Update

Chairman’s report

Chief Executive Officer’s review
satisfaction and the Division’s financial performance.

We have earned a reputation over the last 10 years for good costmanagement. In the half, this enabled us to bring down our costincome ratio to 44.3%. Our continued focus on efficiency serves
partly to help fund investment initiatives but also to enhancebottom line results.

Our Institutional Division delivered a solid performance withearnings up 11% assisted by recoveries from previously
provided doubtful debts. Over recent years, we have sought tocurtail low margin asset growth and to reduce our reliance on
lending. These steps have subdued revenue growth but we
expect the Division will deliver value to shareholders over the
longer term.

Dear Shareholders
Welcome to the 2007 edition of Shareholder Contact. Enclosedwith this edition is the advice of your 2007 Interim Dividend
entitlement. Your Directors were pleased to increase the interim
dividend by 11% to 62 cents per share fully franked.
The increase in the dividend reflects a good business performance
driven by strong revenue growth, careful management of costs,
and a prudent approach to risk.
ANZ recorded a record profit after tax of $2,102 million for thehalf year ended 31 March 2007, up 16%. The result included a
one-off gain on the sale of Esanda Fleet Partners and adjustingfor these, cash earnings per share were up 11%.
Again, we had strong results in our Personal Division inAustralia with earnings up 22%. Over recent years we have been
investing in our retail franchise. For example, in the first half,
we opened nine new branches. The benefits of this investment
are continuing to show through in high levels of customer

Our New Zealand Business was up 8% and continues to showpromising momentum. Other highlights include our wealthmanagement joint venture, ING Australia, where earnings wereup 29%; and International Partnerships where profit grew 57%
assisted by a full six month return from Bank of Tianjin in China.
We also took a major strategic step with the announcement ofan $833 million investment to acquire 24.9% of Malaysia’s fifthlargest financial services group, AMMB Holdings Berhad.
Continued attention to managing costs during the half brought
down our cost income ratio to 44.3%.
Our focus on creating a vibrant, engaging and flexible culture
also showed results. Staff engagement at ANZ is the highest of
any major Australian company, up 4% to 64%. Our culture is an
important asset and has begun to differentiate ANZ as an
employer of choice.
Importantly, we are continuing to invest in the community. This
includes helping those in most need with financial literacy andsavings, staff volunteering and local community initiatives.
There is still much for us to do but we are committed to taking
the hard steps to show customers, the community, shareholders
and staff that ANZ is a company of which they can be proud.
Looking ahead, with a strong first half and good momentum
going into the second half, we are confident of a good result for
the year as a whole.
Charles Goode

We have reduced risk. In the half, although provisioning rosefrom historic lows, it ended below our expectations as a resultof large recoveries late in the period.
We had particularly strong results in Personal. Once the weakestof ANZ’s businesses a decade ago, it was again a highlight withearnings up 22%.
Institutional continues to reinvent itself to adapt to changing
markets and intense competition. Profit growth was doubledigit, benefiting from net provision recoveries although it was
weaker in revenue and profit before provisions.
Dear Fellow Shareholder
When I joined ANZ as your Chief Executive in 1997, our vision
was to create a very different bank. The aim was simple: to build
an organisation that consistently delivered on its promises toshareholders by transforming our cost base, lowering risk andcreating a new foundation and capability for the organisation.
Today, a consistent focus on our strategy and our ability to
execute against that strategy with no surprises, has createda very different bank – Australia’s third largest bank, the leadingbank in New Zealand and one of the most significant presencesin Asia among Australian companies.

New Zealand Businesses, where we are now clear market leader,came in with their best underlying result in recent years, but was
impacted by provisions increasing from unsustainably low levels.
I firmly believe that the best for ANZ is yet to come and so weare continuing to work hard and invest in the future.
Over the past year, we added 2,120 people, and opened 26 newbranches in Australia and New Zealand. We announced ourintention to expand our international franchise in Malaysia,
China, Guam and Laos. Looking ahead, the growth we are now
seeing from Asia will become more material to ANZ.

Our financial performance has been consistently strong. We arecontinuing to systematically invest in our customers and ourpeople to underpin future earnings.

We are continuing to invest in advancing the foundation andcapability of the organisation. We have a culture that others
would find difficult to replicate. We also have strong customer,
community and shareholder recognition.

What is particularly pleasing is we achieved strong revenue growthof 9.1% in the half, which was above the top end of our target range.

Although there is still much more to do, ANZ is now clearly seen
as a very different bank, and we are poised to take the next step.
John McFarlane
Contact 07 Shareholder Update Mike Smith appointed ANZ’s new CEO

Ian Macfarlane joins
ANZ Board

Mr Smith has led the Hongkong and Shanghai Banking Corporation
Limited and HSBC Holding’s Asian business, since August 2003.
It has 60,000 employees in 22 countries, with total assets ofA$523 billion and a profit before tax of A$10.6 billion.
“Michael has worked in most continents across the globe. This
includes senior management positions in Hong Kong, United
Kingdom, Australia, Argentina and Malaysia, and in places asdiverse as Oman and the Solomon Islands. He brings to ANZ
considerable experience of the Asian market place and a strong
commercial banking background,” Mr Goode said.

ANZ Chairman Mr Charles Goode announced on 12 June that theBoard had appointed Mr Michael Smith, 50, to be ANZ’s Chief
Executive Officer from 1 October 2007. Mr Smith will also join
the Board of ANZ.
Mr Smith is President and Chief Executive Officer of the Hongkong
and Shanghai Banking Corporation Limited, Chairman ofHang Seng Bank Limited and Chairman of HSBC Bank Malaysia
Berhad. He is also the Global Head of Commercial Banking for
the HSBC Group.
Mr Smith will succeed Mr John McFarlane who will leave ANZ on
30 September this year after 10 years as Chief Executive Officer.
“Michael is well qualified to take ANZ forward in its next stageof development. He is an outstanding all-round banker. In his
29 years with the HSBC Group he has developed an impressive
track record across multiple businesses and geographies withextensive experience in retail and corporate banking,”
Mr Goode said.

Commenting on his appointment Mr Smith said: “I am looking
forward to being ANZ’s Chief Executive Officer, a significant
publicly listed Australasian bank, and building on its strengths
and culture. I lived and worked in Australia for five years and mywife and I really look forward to coming back. Two of our threechildren were born in Melbourne”.
In making the announcement Mr Goode also paid tribute to
Mr McFarlane’s contribution to ANZ.
“John McFarlane has played a significant role in the developmentof ANZ. Under his leadership ANZ has become Australia’s thirdlargest bank, the leading bank in New Zealand and has a strong
foundation for growth in Asia.
“Importantly, he has created an organisation with a reputation for
consistently delivering on its promises to shareholders bytransforming ANZ’s cost base, lowering risk and creating a new
foundation and capability for the organisation. This is mostnotable in ANZ’s vibrant culture and in ANZ’s strong customer
and community recognition,” Mr Goode said.
Mr McFarlane said: “I am delighted that we have been able toattract an outstanding, internationally recognised banker and I
know that with Mike’s appointment ANZ will be well led and has
a great future.”

Shareholder Information
39th Annual General
Meeting - PerthEffective 16 February 2007, Mr Ian Macfarlane joined the ANZ Board.
Mr Macfarlane is a director of Woolworths Limited (from 2007),
Leighton Holdings Limited (from 2007) and Lowy Institute forInternational Policy (from 2004) and a member of the International
Advisory Board of Goldman Sachs International (from 2007).
Mr Macfarlane was appointed Governor of the Reserve Bank in
1996, having been appointed Deputy Governor in 1992. His
term as Governor ended on 17 September 2006.
Prior to that, he was Assistant Governor (Economic) and Chief
Manager (Financial Markets Group). He has been closely involved
with the development of monetary policy in Australia since hejoined the Reserve Bank in 1979.
Before joining the Reserve Bank, Mr Macfarlane worked in the
Economics Department of the OECD in Paris for six years, andbefore that he was with the Institute of Economics and Statistics
at Oxford University.
Mr Macfarlane holds an Honours and Masters Degree in Economics
from Monash University, an honorary Doctor of Science (Economics)
from Sydney University, an honorary Doctor of Letters fromMacquarie University and an honorary Doctor of Commerce from
Melbourne University. He was elected a Fellow of the Academy ofSocial Sciences in Australia in 1998.
In announcing Mr Macfarlane’s appointment, Mr Goode said:“Ian has been one of Australia’s leading economic policy makers.
He understands financial markets and has had a long involvementwith Asia. We are very pleased to have someone of Ian’s calibre
and experience join the Board.”

Date Tuesday, 18 December 2007
Venue Perth Convention Exhibition Centre
Time 10:00 am WST
Key Dates
Annual General Meeting andLive Webcast
Perth Convention Centre at
10:00 am (WST)
Tuesday, 18 December 2007
Announcement of Annual Results
Year ending 30 September 2007
Thursday, 25 October 2007
Ordinary shares
Final Dividend (2007) Payable
Tuesday, 18 December 2007
– Ex Dividend Date 8 November 2007
– Record Date 14 November 2007
StEPS payment dates:– 17 September 2007
– 17 December 2007
– 17 March 2008
– 16 June 2008

Contact 07 Shareholder Update Shareholder Information
Results summaryˆ
Profit after tax
Profit $2,102 million - up 16.1%
Cash* profit $1,936 million - up 11.8%
Cash* profit before provisions $2,995 million – up 12.1%
Shareholder ReturnEPS 113.2 cents – up 15.0%
Cash* EPS 104.2 cents – up 10.9%
Interim dividend 62 cents – up 10.7%
Business highlights *Strong revenue momentum and continued investment
with 2,120 new FTEs since March 2006
Strong result in Personal – revenue up 14.4%, profit
up 21.6%
Institutional profit up 10.6%. Profit before provisions moremodest at 4.2%
Good underlying momentum in New Zealand Businesses
up 13.5% but offset by provisioning lowering results to 7.9%
Continued growth in customer acquisition in Australia anda successful turnaround in New ZealandAchieved targeted revenue and productivity:- Revenue growth 9.1% (10.4% FX adjusted)- Cost-Income ratio 44.3% (down 1.5% from 45.8%,
medium-term target 40%)
Credit quality remains strong, better than expected provisions
due to recoveries late in the half
Adjusted Common Equity ratio middle of target range at 4.4%

E-Communications
As an ANZ shareholder, you can choose to receive yourshareholder communications electronically and help save theAustralian environment. With every registration through eTree,a donation of $2 will be made to Landcare Australia to go towardspecified reforestation projects that will bring direct benefit to
the environment.
To register, please visit www.etree.com.au or
www.anz.com/aus/shares/services/Program.asp
Dividend Alternatives
There are a number of ways in which you can receive yourANZ dividends, which are normally paid in July and December.
Your dividend can be directly credited to your bank account,reinvested into further ANZ shares under the Dividend
Reinvestment Plan or foregone if you wish to participate in the
Bonus Option Plan. Alternatively, Australian shareholders canalso elect to donate part or all of their dividend to one of thecharities participating in ANZ’s Dividend Charity Donation Program.
Shareholders may at any time change the way they receive theirdividend by completing and returning a Plan Election Form or
Dividend Charity Donation Form available from ANZ’s Share Registrar.
For more information about how to receive your dividends,
please contact ANZ’s Share Registrar (details following)or visit www.anz.com/aus/shares/services/dividends

ˆ All figures compared to March 2006 half year unless otherwise indicated.
* Adjusted for non-core items (including significant items, ANZ National
Bank incremental integration costs and AIFRS mark to market of certain
hedge gains/losses)

Contact details
Investor Relations
Level 22, 100 Queen Street
Melbourne VIC 3000
Australia
Telephone +61 3 9273 6466Facsimile +61 3 9273 4899
investor.relations@anz.com
ANZ Share Registrar
Australia
GPO Box 2975
Melbourne VIC 3001 Australia
Telephone 1800 11 33 99 (Australian Callers)+61 3 9415 4010
(Overseas callers)
Facsimile +61 3 9473 2500
anzshareregistry@computershare.com.au
New Zealand
Private Bag 92119
Auckland 1020
New Zealand
Telephone 0800 174 007 (New Zealand Callers)
Facsimile +64 9 488 8787
United Kingdom
PO Box 82
The Pavilions
Bridgewater Road
Bristol BS99 7NH
Telephone +44 870 702 0000
Facsimile +44 870 703 6101

Dividend Charity Donation program
The Shareholder Dividend Charity Donation Program is open to allshareholders who are Australian resident taxpayers and who
receive a cash dividend in Australian dollars. This program is aconvenient way for a shareholder to contribute to charities thatthey value and have that contribution matched by ANZ.
The program gives ANZ shareholders the opportunity to donate
some or all of their cash dividends to one of 28 charities. ANZ will
match donations on a dollar-for-dollar basis up to an aggregate
total of $250,000 in the first year of the program, which includes
the December 2006 and July 2007 dividend payments. This offer
has now been extended to include the December 2007 dividend
payment. In 2006, over $160,000 was donated to charity fromthis program.

Shareholder Privilege Package
ANZ announced earlier this year that it would end the Shareholder
Privilege Package in its current form, effective 30 March 2007.
This followed a review of the package that found very few of ourshareholders were using the product offers within the package.
However we were committed to minimising the impact on
existing users of the package. As a result, we also announced
that for shareholders who were using the package, most benefits
on facilities in place as at 30 March 2007 would continue until
further notice, while the shareholder held more than 300 shares.
This did not include bank cheques and travellers cheques.
Discounts on bank cheques and travellers cheques are now only
available to eligible shareholders who have held a transaction
or savings account with ANZ since 30 March 2007 or earlier.
To obtain these discounts, you will need to retain your 2006
Shareholder card and present it to branch staff.

Contact 07 Shareholder Update Leading and inspiring our people
At ANZ, we are committed to building a workplace where people
feel valued, respected and challenged. This will help us attract
and retain the best people and ensure we maximise their talents.
Improving employee engagement
Employee engagement is the extent to which staff are willing
to be advocates for their business, are committed to staying
with their employer, and are motivated to contribute theirbest to the organisation they work for every day.
Our employee engagement score has risen from 60%(February 2006) to 64% (March 2007), which is well above
the benchmark for Australian financial services organisations(58%).
Our people have identified Customer Satisfaction, Customer
Focus, Profit and Community Involvement as the values mostevident in the way we work.

ANZ employee engagement
40%

58% Banking & Finance Avg.
60% ANZ overall 2006
64% ANZ overall 2007

25%

Destructive Zone
Serious Zone
Indifferent Zone
High performance/best employer zone

Creating an inclusive culture
We have set targets for women in management roles and thepercentage of females in executive positions increased from20% (September 2006) to 22% (March 2007).
We are piloting flexible working arrangements, whereby ourpeople agree when, where and how they work and structure
their careers.
We were the first bank to have a float in the Sydney Gay andLesbian Mardi Gras – a demonstration of our support for our
diverse workforce and customer base (March 2007).

Creating employment opportunities for Indigenous Australians
We have employed 55 Indigenous school-based trainees,in Metropolitan Sydney and rural NSW and WA.
We have announced significant Indigenous employment
targets as part of our Reconciliation Action Plan (April 2007).
Recognition for our progress
We have received a Hewitt special award for ‘Consistently
Driving Engagement in the Business’ following our year-onyear improvements in employee engagement (March 2007).

We have been included in the Adage Top 20 list of employers
supporting the advancement of mature and experienced
employees (April 2007).

We held our first-ever Disability Awareness Week inDecember 2006.
Motherhood matters at work
Jackie Uhi, a Senior Project Manager in ANZ’s Retail Branch
Network, knows first-hand about the improvements to ANZ’sparental leave policy.

Exploring the future of learning
We are opening the ANZ Breakout Centre – a new world-classlearning and development centre of excellence to accelerate
our people’s development and leadership opportunities(second half 2007).

In 2000 Jackie took the maximum allowable four weeks paid
parental leave. In 2004 it was six weeks and in 2006 Jackie
enjoyed a full 12 weeks paid leave.

1200 people attended our first-ever Future of Learning Expo
showcasing the learning opportunities available at ANZ(March 2007).

“The additional parental leave has been great to bond withthe babies and to help my husband establish a new familyroutine,” said Jackie. “It meant I could return to work withoutworrying about how he and the children were coping.”

Valuing Health, Safety and Wellbeing
We have launched a Global Health, Safety and Wellbeing
strategy, which aims to keep our people safe and to actively
promote the health and wellbeing of our people, wherever
they are in the world.

Jackie is also mother to two other adopted girls, and herexperience balancing motherhood with her career has madeher “passionate about helping women build the resilience
required for being a working mother.”

In Australia, our Lost Time Injury Frequency Rate (LTIFR) has
declined from 3.8 (September 2006) to 3.4 (March 2007).
LTIFR is one of the standard measures we use to determine theeffectiveness of our Occupational Health and Safety programs.
The Uhi family (from left): Josephine, Stanley, Ofa, Bob, Jackie, Tom and Koti

We have been recognised as an Employer of Choicefor Women for the fifth consecutive year by the Equal
Opportunity for Women in the Workplace Agency(February 2007).

Jackie is now a sponsor of a women’s networking groupwithin ANZ focusing on attracting, developing and retaining
talented women.

Contact 07 Shareholder Update Putting our customers first
Bank of the YearANZ has been recognised by CANNEX
as ‘Bank of the Year’ for 2007 - theseventh time ANZ has received this awardin eight years. In addition, we have been
named the Socially Responsible Bank of
the Year, Home Lender of the Year andBusiness Bank of the Year.

Convenient, simple and responsible service is vital to the successof ANZ. We have again increased our customer satisfaction levels
and are on track with our program of opening more branches
and ATMs. Formal measures are also in place to ensure we area responsible lender.

Highest customer satisfaction of any major bank
ANZ is well ahead of the other major banks in customer
satisfaction ratings produced by Roy Morgan Research. Retailcustomer satisfaction was at 76.5% at 30 March 2007, whichis 1.5% up on our September 2006 result.

Convenient access and reliable service
We continue to expand the branch network to better meet theneeds of our customers. In the 6 months to 30 March 2007,
we opened nine new branches and installed a further 120 new
ATMs around Australia.

We have broken away from the sector average of 72.4% andalso lead some of our regional competitors.

Opening hours in 125 branches have also been extended in
response to customer demand for Saturday and Thursday andFriday evening openings.

Taking the next step on responsible lending
ANZ is regarded as an industry leader in responsible consumer
lending.
We were the first bank to introduce a public and auditable
responsible lending code which contains promises not to send
unsolicited credit card limit increases to vulnerable customers,
including those we know are receiving government benefits.
This has cut by 11% the pool of customers otherwise eligible
for these offers. We are now following this initiative with aproject to identify and assist credit card customers in earlystages of financial difficulty. The aim is to offer timely assistanceto these customers before their situation becomes
unmanageable.
ANZ recognised for Internet Banking Security
ANZ has received an award for an innovative fraud detection
system for internet banking. The FraudLink BillPay system isdesigned to identify and flag potentially fraudulent internet

banking transactions, allowing the bank to take action tominimise any potential loss to customers. It works in a similar
way to ANZ’s Falcon credit card fraud detection system,
which monitors credit card accounts for suspect or unusualtransactions which may suggest the customer’s card has beenstolen or used for unauthorised transactions.
12th FINA World Championships
March 2007 saw the 12th FINA World Championships staged
in Melbourne, with ANZ as an Official Partner and the Official
Financial Services Institution of the Championships.
ANZ’s sponsorship of the World Swimming Championships washailed a success, with more than 215,000 people attending,breaking the previous record of 205,000 set in Barcelona in
2003. ANZ blue was everywhere leading up to and during thechampionships due to an extensive range of activities
designed to highlight our sponsorship and generate greater
visibility of our brand.

In the 6 months to 30 March 2007, we served 86% of customers
within 5 minutes and 98% within 10 minutes*. 169 out of our
209 Q-matic branches met our initial wait time standard to serve
80% of customers in 5 minutes

80

70* Figures based on data from ANZ branches using the Qmatic system whichmeasures wait times for customers
31

60

50
Apr 07Peer 49Peer 3Peer 211

10Peer 1

4

ANZ

9Customer satisfaction with main
financial institution %* Source: Roy Morgan
Research – Main
Financial Institution% Satisfied (veryor fairly satisfied),
6 monthly
moving average

14

Sep 00Target new branches

1H05 2H05 1H06 2H06 1H07 2H07

New branches

Contact 07 Shareholder Update 11

Earning the trust of the community
Earning community trust
ANZ is committed to enhancing the well-being and prosperityof the communities where our people live and work, and where
our business operates. Our involvement is underpinned by oneof our values which is to earn community trust.

ANZ’s Reconciliation Action Plan sets out specific andmeasurable steps ANZ will take to:increase employment opportunities for Indigenous
Australians – including employing 100 school-based trainees
each year.

As a bank, we aim to be leaders in addressing the major social
issues that involve the financial services industry - in particularfinancial literacy and inclusion. Our programs also provide
opportunities for our staff to support causes that are importantto them.

improve financial literacy and inclusion – including
integrating the Saver Plus matched savings program
into Indigenous financial literacy and inclusion programs
MoneyBusiness and Opening Financial Pathways.

Our focus is on developing innovative programs, with clear
aims, and real outcomes, that make a lasting difference topeople’s lives - particularly amongst the most vulnerable. ANZ
was recognised by winning the Prime Minister’s Special Impact
Award for Excellence in Community Business Partnerships in 2006.

build the capacity of Indigenous organisations supporting
financial inclusion objectives.

Reconciliation Action Plan
In April 2007, ANZ released its Reconciliation Action Plan . It
outlines the specific steps ANZ will take to help improve thewellbeing of Indigenous Australians, including ambitious
targets for the employment of Indigenous Australians.
We talked to stakeholders including Indigenous leaders,
community organisations involved in Indigenous financial
inclusion and government agencies when deciding what our
Action Plan should focus on.

12

improve cultural recognition and awareness among ANZ
people, and

ANZ will be reporting on progress against the Action Plan in its
Corporate Responsibility Reports.
Financial literacy and inclusion
ANZ’s financial literacy and inclusion programs are leading theway in building the financial skills and knowledge of those whoare most in need. We rely on partnerships with not-for profit
organisations which enable effective programs to be developedand implemented in the community.
Saver Plus
Saver Plus is a financial literacy and matched savings program
helping people on low incomes improve their financial
knowledge, build a long-term savings habit and save for theireducation expenses. Since the program started in 2003, wehave helped 669 families save a total of $617,000, which ANZthen matched with a further $1.14 million. An RMIT evaluationof Saver Plus demonstrates the program’s ongoing success,finding 75% of participants continue to save the same amountor more, 12-24 months after completing the program.

The Progress Loan
The Progress Loan gives people on low incomes access to loansof between $500 and $3,000 to pay for essential household
items such as white goods. ANZ and the Brotherhood of St
Laurence have piloted the program for the past 12 months, andalmost 140 people on low incomes have benefited in Victoria.
The majority of loans were provided to women, with an averageloan size of $1,500.

make informed decisions about their money. The programprovides unbiased consumer education and is delivered bycommunity educators and financial counsellors in their everyday work with people who have the most to gain from improved
financial literacy. MoneyMinded is now also available online
for more convenient access. In 2006 more than 15,000 people
participated in MoneyMinded.

Progress Loan customers have been able to improve their standardof living by purchasing beds for their children and refrigerators.
Many customers would not have ordinarily approached a bankand had a limited range of alternatives. A loan helps them obtainessential items with the dignity of paying for it themselves.
Progress loans provides an alternative to ‘predatory’ lenders
such as loan sharks, pay day lenders, pawnbrokers and store
credit providers that can charge very high interest rates.

MoneyBusiness
MoneyBusiness is an innovative program delivered inpartnership with the Australian Government Department of
Families, Community Services and Indigenous Affairs, to build
the money management skills and confidence of Indigenous
people. The program is being piloted in six remote sites in the
Northern Territory and Western Australia, with the aim ofproviding coaching in financial literacy, budgeting, bill paying
and developing savings plans.

MoneyMinded
MoneyMinded is a comprehensive suite of adult financial
education programs developed to assist people, in particular
those on low incomes, to build their financial knowledge and

ANZ’s contribution includes funding of $1.25 million over three
years to develop appropriate financial literacy resources for use
by Indigenous Australians and to introduce Saver Plus to
Indigenous families who are involved with MoneyBusiness.

Contact 07 Shareholder Update 13

Managing our environmental footprint
Our new building
ANZ’s new workplace in Melbourne’s Docklands precinct willreflect ANZ’s commitment to reduce its environmental impact.
The building, due for completion in late 2009, will be designed
to achieve a 6 star Green Star environmental rating. This design
includes stormwater re-use, water recycling, wind turbines, theuse of Yarra River water in the building’s cooling system andgreater use of natural light.
Green Star is a national, voluntary environmental rating systemestablished by the Green Building Council of Australia. The
system was developed to recognise environmental leadershipand set a standard of measurement for green building which isrelevant to the Australian marketplace and environmental context.
In seeking to achieve a 6 star Green Star rating, ANZ will invest
in innovative design initiatives that will make 833 Collins Street

Equator Principles
ANZ adopted the Equator Principles in December 2006.
The Principles are a set of voluntary standards designed to helpbanks identify and manage social and environmental risks
associated with the direct financing of large infrastructure
projects such as dams, mining and pipelines.
the largest green building in Australia and one of the top fourgreen large bank buildings in the world, alongside the RoyalBank of Scotland building in Edinburgh, the ING Headquarters
in Amsterdam and the Bank of America building underconstruction in New York.
Commercial buildings are responsible for around 15% ofAustralia’s greenhouse gas emissions. Compared to the average
Australian commercial building, ANZ’s new building in Docklands
will produce 60% fewer greenhouse gases each year. It will use
70% less fossil fuel generated energy and 60% less water.
The new workplace will reduce the number of commercial
properties ANZ occupies and will be home to 5,500 ANZ staff
from 2010.
Making responsible business decisions.
We continue to monitor and respond as best we can to stakeholder
concerns about our lending decisions in respect of some
Institutional clients, and have taken steps to improve thetransparency about how we make these decisions.
ANZ is also the first Australian bank to develop a Forests Policy,
which when completed in June 2007, will provide greatertransparency about how ANZ makes decisions on transactions
that have the potential to impact forests. This will be followed
by further social and environmental policies focusing on different
sectors, such as mining and water.

14

They describe the process banks should complete to ensure any
project they fund is developed and operated according to soundsocial and environmental standards, including those relating
to labour standards, pollution prevention and natural resource
management. The Principles are now considered global bestpractice for ensuring applicable project finance proposals meetthese standards.
We are progressively implementing the Equator Principles into
our project finance operations around the globe throughout 2007.
Projects assessed under the Equator Principles are categorised
according to their degree of potential social and environmental
impact into either category A (high), B (medium) or C (low). Higher
impact projects require more stringent measures such as public
consultation with communities affected by the project andindependent assessments of the project.

Hybrid purchase makes for greener fleet
ANZ currently leases more than 600 tool-of-trade vehicles foruse by staff as part of their work. To reduce the environmental
impact of this fleet, ANZ has introduced a policy specifying fuelefficient 4-cylinder cars as the preferred lease vehicle for staff.
These vehicles will replace 6 cylinder cars as leases expire.
ANZ Corporate Banking is taking a further step by converting
its entire fleet of pool cars used by staff to petrol-electric
hybrid vehicles.
Hybrid vehicles are powered by a combination of petrol andelectric motors and significantly reduce the emissions of CO2,
the main greenhouse gas contributing to global warming. The
model chosen by ANZ delivers a fuel economy figure of 4.4 litres
per 100 km and in the process produces only 106 grams of CO2
per kilometer, more than half of that of a typical family sedan.
Based on travelling 22,500 km per year, the hybrid vehicle
emits approximately four tonnes less greenhouse gas thana six-cylinder vehicle.

Since we adopted the Equator Principles in December 2006,
we have reviewed 7 new projects for social and environmental
impact under the Principles and approved 4 of those projects.
New projects reviewed since December 2006:
Number of
Projects
Reviewed

Number of
Projects
Approved

Category A (high impact)

53Category B (medium impact)2

1

Category C (low impact)

0

0

Total

7

4

Project classification

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Contact 07 Shareholder Update 15