2023
ESG FORUM
19 JUNE 2023
PRESENTATION AND INVESTOR DISCUSSION PACK

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

ANZ 2023 ESG Investor Forum discussion pack

DISCLAIMER & 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 situationor needs of any particular investor. These should be considered, with or without 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, approach to climate change andother ESG issues, capital adequacy, specific provisions and risk management practices. Whenused in this presentation, the words ‘plan’, ‘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. Those statements: are usually predictive in character; or may be affectedby inaccurate assumptions or unknown risks and uncertainties; or may differ materially fromresults 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 is made 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 theresult of any revisions to these forward-looking statements to reflect events or circumstances
after the date hereof to reflect the occurrence of unanticipated events.

1

ANZ 2023 ESG Investor Forum discussion pack

Chief Executive Officer

Purpose, strategy & customer proposition

ESG governance including annual materiality process

CONTENTS3

4-6

7 - 12

ESG focus area – housing

13

Group Executive, Institutional

14

Our Environmental Sustainability strategy
Continuing our support for the transition to net zero
Customer engagement to support biodiversity
Head of Research, Development and Financial Wellbeing &Managing Director, Australia Retail Distribution
Financial wellbeing
Identifying and engaging with at-risk customers
A focus on accessibility and inclusion

15
16
17
18
19-20
21
22

2

2023
ESG FORUM
SHAYNE ELLIOTTCHIEF EXECUTIVE OFFICERANZ 2023 ESG Investor Forum discussion pack

OVERVIEW

Integrated
approach topurpose, strategy& ESG

Focus on how wegovern ESG and
our annualmateriality
assessment

The progress
we’re making inenvironmental
sustainability

Financial
wellbeing andcustomer fairness

4

ANZ 2023 ESG Investor Forum discussion pack

THE INTEGRATION OF PURPOSE, STRATEGY AND CUSTOMER PROPOSITION
Our purpose

To shape a world where people and communities thrive

Our strategy

To improve the financial wellbeing and sustainability of customers

Who we serve

ESG focus areas

Help people savefor, buy and own asustainable, liveable andaffordable home

Financial
wellbeing

Environmental
sustainability

Help people start or buy
and sustainably growtheir businessHousing

Customerexperience

Help companies movecapital and goods aroundthe region and sustainably
grow their businessInformation
security

Ethics, conductand culture

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

5ANZ 2023 ESG Investor Forum discussion pack

VALUE CREATION MODEL

Better customer propositions:‘purposeful’, engaging, efficient and‘safe’

Better access to capital andtalent, driving greater capacity toinvestBetter financial
outcomes

Better acquisition &retention,higher share of target
customers

Customers will havebetter financial
wellbeing, moresustainable practices andgenerate higher life-timevalue for shareholders

Better data,risk decisions and pricing

Better financial wellbeing& sustainability outcomesMore engaged
workforce

Higher customer engagement,
greater use of our products andservices

6ANZ 2023 ESG Investor Forum discussion pack

ANNUAL ESG MATERIALITY ASSESSMENT
This year’s
engagement
highlighted sixof our mostmaterial ESG
issues1 including
our three areas
we care about
most

Customer experience

Offering affordable, accessible and responsible financial products and services that meet customer needs. This includes
clear and transparent communications, selling practices, lending practices, and hardship and collections policies.

Environmental sustainability

Managing the business risks, opportunities and impact of our financing activities on climate change, biodiversity andnature, including our support to customers.

Ethics, conduct and culture

A strong corporate culture known for ethics, integrity and conducting our business responsibly and aligned to our
purpose and values.

Financial wellbeing

Building financial knowledge and resilience through our products, services and partnerships. This will help our people,
customers and communities meet their current financial commitments and future goals.

Housing

Improving the availability of and access to suitable and affordable housing for all Australians and New Zealanders.

Information security

Responding and continuously adapting to scams, fraud and cyberattacks that threaten the confidentiality and security ofsystems and data.

1.

Topics are listed in alphabetical order, not ranked

7

ANZ 2023 ESG Investor Forum discussion pack

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

Ethics and Responsible Business Management Committee (ERBC)

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

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

Oversight of the Ethics andResponsible Business Committee

Review and monitor ethical and
ESG risks and opportunities

Establish decision-making
principles and guide choices on
Discuss and decide on ethical andindustry sectors, customers and
ESG risks and opportunities
transactions we bank and how webankOversight and approval of ANZ’ssustainability objectives

Oversight and approval of
corporate governance policies andprinciples

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 thepolicy and the ANZ Code of
Conduct and Ethics

Brand and values are aligned withour community investment,
strategic partnerships andcorporate sponsorships

Review and decide sensitive
wholesale transactions

8

ANZ 2023 ESG Investor Forum discussion pack

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

14%

14%

14%

14%
44%

1.

Our purpose• Housing• Financial wellbeing• Environmental sustainability

How we bank
• Accessibility and disability inclusion• Family violence• ANZ’s Reconciliation Action Plan

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

Governance• Whistleblower program• ESG target benchmarking• Review of Ethics and Responsible BusinessCommittee minutes• Modern slavery

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

FY23 to date (October 2022 to June 2023)

9

ANZ 2023 ESG Investor Forum discussion pack

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

25%

21%

8%
29%
17%

1.

Our purpose• Housing• Financial wellbeing• Environmental sustainability

How we bank
• Product fairness• Accessibility• Scams and data security

How we measure andcommunicate• Reviewing and monitoring ESG
targets• External ESG ratings

Governance• Materiality Assessment• ESG stakeholder engagement framework• Preparing for expanded ESG reporting

Who we bank
• Customer reviews• Climate change commitment and transition plans for 100 of our largest emitting
business customers• Biodiversity• Sensitive sector transactions

FY23 to date (October 2022 to June 2023)

10

ANZ 2023 ESG Investor Forum discussion pack

HOW WE MEASURE AND COMMUNICATE
External report card
ESG ratings are reported regularly to the Board Ethics, Environment, Social and Governance (EESG) Committee with context provided forany material shifts.
Agency1.

Rating type

Scale

(best to worst)

2020

2021

2022

2023

Year-on-year

S&P Global Corporate
Sustainability Assessment(CSA)

100 – 0

85

85

83

To be released~November

Declined1

CDP Climate Change
Questionnaire

A – D-A-A-A-

To be released~November

StableSustainalytics ESG Risk
Rating0 – 100

23.2

24.2

19.4

18.9

Improved

ISS ESG Corporate Ratings
Assessment

A+ – D-

C

C

C

C

StableMSCI ESG Rating

AAA – CCC

A

A

AA

AA

StableThe S&P CSA score decline is attributable to increased expectations regarding decarbonisation strategies – with a rerating across the banking sector

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.

11

ANZ 2023 ESG Investor Forum discussion pack

ETHCIAL DECISION MAKING FRAMEWORKOur ethicalThe framework is made up of seven principles
decision making
framework assists
Protect and enhance each person’s ability and freedom to choose
our staff whendeliberating
Minimise potential and actual harm, especially for the vulnerable
complex issues toconsider both
Support progressive practices that benefit people, communities, and industries
what we should
do and what weHave the greatest impact on what we care about mostcan do in various
scenarios.
Show leadership: challenge convention and complacency
Advance ANZ’s strategic and commercial interests
Be proud to offer a complete public account of our decisions and actions

12

ANZ 2023 ESG Investor Forum discussion pack

IMPROVING THE AVAILABILITY OF SUITABLE AND AFFORDABLE HOUSING>$4.4bFunded and facilitated todeliver more affordable,
accessible and sustainable
homes to buy and rent
since 2018 in Australia& New Zealand.

AUSTRALIA

Assemble – Homes for change

End-to-end “build-to-rent” developer and operations
manager.

Building secure, social and affordable “build-to-rent-to-own”
and “build-to-rent” apartments in suburbs where this type of
housing is needed most.

Our commitment is todeliver $10 billion by 2030.

1.
2.

NEW ZEALAND
Good Energy Home Loan1

Blueprint to Build

Supported 4,800 households with over
NZ$200 million in new lending2, sincelaunch in 2022.

Supported over 8,000 customers build a
new home through the provision of
NZ$4.5 billion of discounted lending.

https://www.anz.co.nz/personal/home-loans-mortgages/loan-types/good-energy/
As of 30 April 2023

13

2023
ESG FORUM
MARK WHELANGROUP EXECUTIVE, INSTITUTIONALANZ 2023 ESG Investor Forum discussion pack

OUR ENVIRONMENTAL SUSTAINABILITY STRATEGY
Key priority areas and sectors we will pursue

Banking thedecarbonisation
andelectrification ofthetransportation
value chain
Increasing our
support forcompanies totransition
to low
carbonSupporting
sustainability inresource extraction¹,
basic materials² andnew technologies³

B

Offering
solutions to, andpartnering with,sustainabilityfocusedfinancial institutions⁵

Enabling thetransition
towards lower
emissionsbuildings⁴

Assistingsustainable
food, beverage andcommodities
practices and supply
chains

New social and environmental sustainability target tosupport our strategy$100b
By 2030(Commenced 1 April 2023)

3.

Supporting new technology projects focused on upstream hydrogen and carbon capture use and storage

5.
6.

• protect nature and biodiversity• increase access to affordable housing• promote financial wellbeing

Previous $50 billion by 2025 sustainable solutions target was closed in
March 2023, reaching $47.09 billion6.

Supporting sustainable resource extraction in areas such as iron ore, lithium, nickel, cobalt, rare earths, copper and bauxite

4.

• help lower carbon emissions

Target will be periodically reviewed and revised to ensure it continues
to match our ambition.

1.
2.

To support outcomes for our customers,
including initiatives that:

Supporting basic materials production including green steel and low-carbon aluminium production
Initial focus on financing high-efficiency residential buildings and retrofits

Supplying green investment options for environmental sustainability-focused funds/insurers and partnering with financial institutions to deliver alternative capital

New $100b social and environmental sustainability target from 1 April 2023 was established as previous $50b sustainable solutions target was on track to be met well in-advance of 2025. Previous $50b target balance of $47.09b as at 31
March 2023 does not contribute to the new target. For more information see Climate Change Commitment at https://www.anz.com.au/about-us/esg/environmental-sustainability/climate-change/

15

ANZ 2023 ESG Investor Forum discussion pack

CONTINUING OUR SUPPORT FOR THE TRANSITION TO NET ZERO
An update on our sectoral decarbonisation targets

2021

2022

First Australian bank to join
the Net-Zero Banking Alliance(NZBA).

Announced four additional
sectoral pathways and targets
for1:

Set emissions pathways andtargets for1:-

Power generation

Large-scale commercial
real estate-

Oil & gas-

Cement-Aluminium
Steel

2023
Plan to disclose two new
pathways for:-

Thermal coalTransport, made up of
three sub-sectors:-

Auto-manufacturing,-shipping-

airlines and• We remain on track, by the end of 2024, to set 2030 interim targets for nine priority sectors aimed at ensuring at least 75% of ourportfolio emissions are on a net zero pathway.
• Our pathways steer lending decisions in line with the Paris Agreement goals. We expect the transition is likely to be uneven – andthere will be challenges in some sectors more than others2.

1.

2.

For more information on ANZ’s existing pathways see ANZ’s 2022 Climate-related Financial Disclosures: https://www.anz.com.au/content/dam/anzcom/shareholder/2022-anz-climate-related-financial-disclosures-report.pdf

For more information see ANZ’s Financed Emissions Calculation Methodology: https://www.anz.com.au/content/dam/anzcomau/about-us/2022-anz-financed-emissions-calculation-methodology.pdf

16

ANZ 2023 ESG Investor Forum discussion pack

CUSTOMER ENGAGEMENT TO SUPPORT BIODIVERSITY
100 of our largest emitting business customers1•

Biodiversity risk is recognised across our ‘sensitive sector’ lending policies.

•

It is a focus area acknowledged in our Climate Change Commitment and has been included in discussions with our largest emitting
business customers.2•

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

•

Findings from customer engagement include:••

customers have an increased willingness to improve governance and strengthening how they measure impacts on nature•customers are less progressed in setting biodiversity targets and disclosure, compared with climate transition plans.

Actions helping us consider biodiversity impacts and dependencies and inform our approach include:•

joining the TNFD3 Forum•

participating in a pilot study and provided feedback on the learnings and existing barriers to adopting and implementing the TNFD
Framework in the Australian context4•

joining the United Nations Principles for Responsible Banking – Nature Target Setting Working Group which is developing guidelines
on nature target setting and considering how banks can contribute to the Global Biodiversity Framework.

1.

As at 30 September 2022

3.

Taskforce on Nature-related Financial Disclosures

2.
4.

In FY22

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

17

2023
ESG FORUM
MOHAMED KHALIL
HEAD OF RESEARCH, DEVELOPMENT AND FINANCIAL WELLBEING
KATHERINE BRAY
MANAGING DIRECTOR, AUSTRALIA RETAIL DISTRIBUTIONANZ 2023 ESG Investor Forum discussion pack

FINANCIAL WELLBEING – CENTRAL TO OUR STRATEGYANZ is committed to improving the financial wellbeing of our people, customers and communities by helping themmake the most of their money throughout their lives
CUSTOMERS• Strong uptake of ANZ Plus savings goal functionality with 27% of Plus customers having set a savings goal since
October 20221• Financial Wellbeing Hub content in Australia and New Zealand with personalised messaging• Delivering proactive customer support including communications and webinars to help customers as they head
into challenging economic times

COMMUNITY• Long running financial education programs - MoneyMinded, Saver Plus and MoneyBusiness – are delivered withgovernment and community partners• Training and employment opportunities to support economic participation for under-represented groups including
Indigenous Traineeships, Given the Chance and Return to Work• Signed the United Nations Environment Program Finance Initiative Commitment to Financial Health and Inclusion

CAPABILITY• Regular research of Australian and New Zealand Financial Wellbeing with quarterly snapshots through the ANZ Roy
Morgan Financial Wellbeing Indicator• Enhancing capability in line with commitments in our Reconciliation Action Plan, Accessibility and Inclusion Plan,
and Financial Inclusion Action Plan
• Building internal capability with financial wellbeing and behavioural science expertise1.

As at 30 March 2023

19

ANZ 2023 ESG Investor Forum discussion pack

FINANCIAL 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 Store

1.

Findings from ANZ’s Adult Financial Wellbeing Survey

20ANZ 2023 ESG Investor Forum discussion pack

IDENTIFYING AND ENGAGING WITH AT-RISK CUSTOMERS
Targeted communications• Designed to encourage at-risk customers to take steps to
avoid falling behind on loan repayments and to contact ANZ
as early as possible if they are experiencing financial difficulty

Identifying customers at risk of missing repayments•

A broader scope of attributes beyond financial difficulty are
considered to assist with early identification of a wider rangeof customers at-risk of missing repayments so we can offer
assistance to help these customers manage their loans

Customers experiencing financial hardship• Identified common reasons customers provide forexperiencing financial hardship, such as reduced income,over-commitment, medical illness, separation or natural
disasters

1. Proactive Hardship
Identify common reasons for customers entering hardship
2. Repayment Management
Identify and address root cause(s) for non-payment relapse
3. Non-Payment Propensity
Assessing customers’ likelihood of meeting on-going payment
obligations

Hi Jeffrey, we’d like to let you know you have an upcoming Personal
Loan payment for account ending in 3089 due on DD/MM/YYYY.
We’ve noticed that you recently missed a payment on your account. You
can set up a Direct Debit so your Personal Loan repayment is madeautomatically. This reduces the chance of being charged late fees.
Please call ANZ on +61 3 8595 2642 or 1300 756 981 (from overseas,call charges may apply) to discuss any changes to your situation that
may be affecting your ability to pay the amount due.

21

ANZ 2023 ESG Investor Forum discussion pack

A FOCUS ON ACCESSIBILITY AND INCLUSIONANZ Plus

ANZ Breathe Branches

22

2023
ESG FORUM
Q&A

2023
ESG FORUM
FURTHER INFORMATIONANZ 2023 ESG Investor Forum discussion pack

OUR ESG RELATED DISCLOSURESESG Supplement

ESG Briefings

Annual eventto brief
investors on
ESG matters

ESG
information &progressagainst our ESG
targets
https://www.anz.com.au/about-us/esg/reporting/https://www.anz.com/shareholder/centre/reportin
g/ESG/

Human Rights

HousingOurapproach to
humanrightshttps://www.anz.com.au/about-us/esg/fairresponsible-banking/human-rights/

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

Climate Change Disclosures

Climate changecommitment andclimate related
financialdisclosures

https://www.anz.com.au/aboutus/esg/environmentalsustainability/climate-change/

Financial Wellbeing

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

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

25

ANZ 2023 ESG Investor Forum discussion pack

SHAREHOLDER CENTRE & INVESTOR RELATIONS CONTACTSANZ Shareholders Centre

ANZ Debt Investors Centre

Equity Investors

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

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

Retail Investors

Debt Investors

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

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

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

26