2023

ESG SUPPLEMENT
Approved for distribution by ANZ’s Ethics, Environment, Social & Governance CommitteeSHAPING A WORLD
WHERE PEOPLE AND
COMMUNITIES THRIVE

More than ever, ANZ has shaped
itself as a bank that supports ourcustomers across 29 markets.
And today, from individuals tobusinesses, we continue to build
a bank that helps them achievesustainable financial wellbeing.
It’s an uncompromising purposethat helps our customers makethe most of their world, every day.

ANZ 2023 ESG Supplement

CONTENTS
Overview and governance

4

Information security42

Our reporting suite

4

Scams

42

2023 ESG performance snapshot

6

Cyber security

43

About our business

7

Financial crime44

ESG governance and risk management

8

Data protection and privacy

45

What matters most to our stakeholders

10

Stakeholder engagement

13

Ethics, conduct and culture46

Our ESG targets

15

Improving conduct and culture46

Social and environmental risk management 49

Environmental sustainability

21

Our approach to climate change

21

Managing ESG risks and opportunities
in our supply chain

52

22

Our approach to human rights

54

Contributing to reconciliation in Australia

56

Leading Indigenous transformationalchange in Aotearoa New Zealand57

Financing sustainability

Housing23

Improving the availability ofsuitable and affordable housing

23

Financial wellbeing

26

Supporting financial wellbeing

26

Community investment

32

Customer experience35

Helping customers better manage
their money and save with ANZ Plus

35

Digital banking in the Pacific36

Supporting customers in needof extra care and hardship37

Resolving customer complaints fairly

41

Our approach to accessibility and inclusion 58
Managing our industry associations and tax 60

Employee wellbeing,engagement and inclusion

Acknowledgement of Country and Traditional Owners

61

Meeting the needs of a changing workforce 61
Wellbeing and engagement

62

Attracting and retaining employees

63

Learning and development

64

Diversity and inclusion

65

Explanatory notes

69

KPMG assurance opinion

70

ANZ acknowledges the Traditional Custodians of Country
throughout Australia and recognises the continuing connection
to lands, skies and waterways. We pay our respects to Aboriginal
and Torres Strait Islander cultures, and to Elders past and present.
Whakatauākī, ANZ New Zealand’s Proverb
Tākiri-ā-Rangi The expansive universe above
Tākiri-ā-Nuku The beauty of the proceeding lands below
Tākiri Te Awatea A new dawn beckons
Kia Puawai Ki Te Ao A blossoming to the world
Te Kare A Roto E With ripples of compassion and hope for all.

Image: ANZ's Gothic bank branch, Melbourne.

4

ANZ 2023 ESG Supplement

OUR 2023
REPORTING SUITE
About this report
2023 Annual Reportanz.com/annualreport
2023 ESG Supplement
anz.com/esgreport
2023 ESG Data and Frameworks Packanz.com/esgreport
2023 Climate-related
Financial Disclosuresanz.com/esgreport
2023 Modern Slavery Statement
anz.com/esgreport
2023 Corporate
Governance Statement
anz.com/corporategovernance2023 Voluntary Tax
Transparency Reportanz.com/annualreport

On 3 January 2023, Australia and New Zealand
Banking Group Limited (ANZ BGL) established by ascheme of arrangement, a non-operating holding
company, ANZ Group Holdings Limited (ANZ GHL),
as the new listed parent holding company of the
ANZ Group and implemented a restructure to
separate ANZ’s banking and certain non-banking
businesses into the ANZ Bank Group and ANZ
Non-Bank Group (Restructure).
This report provides stakeholders with moredetailed information on ANZ GHL and its subsidiaries(referred to as “ANZ” or “the Group” or “our”) ESG
performance and challenges.
This report is structured in two sections. The firstoutlines our purpose and values; our approachto ESG governance and risk management; ourapproach to the identification and prioritisationof material issues; our stakeholder engagement
and our ESG targets.
The second section outlines our management ofmaterial ESG issues aligning with our focus areasof environmental sustainability; housing; financial
wellbeing; customer experience; information
security; ethics, conduct and culture; andinformation on employee wellbeing and inclusion.

Frameworks
Our Self-assessment Index for the United Nations
Principles of Responsible Banking; comparative
performance data, including Equator Principles
data; and our United Nations Guiding Principles
Reporting Framework index are contained in our
separate 2023 ESG Data and Frameworks Packavailable at anz.com/esgreport.

This report has been prepared in accordance with
the Global Reporting Initiative (GRI) 2021 Standards.
A complete GRI Index is available in our 2023 ESG
Data and Frameworks Pack. We have considered
aspects of the Sustainability Accounting Standards
Board (SASB) Standards.
Additional information can also be found in
the Financed Emissions Methodology and theSocial and Environmental Sustainability Target
Methodology available at anz.com/esgreport.

Assurance
KPMG has performed limited assurance withrespect to this ESG Supplement and the ESG Data
and Frameworks Pack, in accordance with the GRI
Universal Standards. A copy of KPMG's independent
limited assurance report is on pages 70-71.

Boundaries
This report covers all ANZ operations over which,unless otherwise stated, we have control for thefinancial year commencing on 1 October 2022 andending 30 September 2023. Monetary amounts inthis document are reported in Australian dollars,
unless otherwise stated.

Reporting suite
We produce a suite of reports to meet the needs
and requirements of a wide range of stakeholders
including shareholders, customers, employees,
regulators, non-government organisations andthe community.
This ESG Supplement complements our 2023
Annual Report available at anz.com/annualreport.
Our 2023 Climate-related Financial Disclosures,subject to limited assurance by KPMG, describes ourprogress towards implementing our Climate Change
Commitment and Environmental Sustainability
Strategy, in accordance with the Task Force on
Climate-related Financial Disclosures (TCFD) 2017
recommendations. ANZ joined the Net-Zero Banking
Alliance (NZBA) in 2021 and the report sets out how
we are taking action in line with this commitment.
The report is available at anz.com/esgreport.
Our 2023 Corporate Governance Statement
discloses how we have complied with the Australian
Securities Exchange (ASX) Corporate GovernanceCouncil’s ‘Corporate Governance Principles andRecommendations – 4th edition’ and is available
at anz.com/corporategovernance.
We are continually seeking to improve ourreporting suite and welcome feedback on thisreport. Please address any questions, comments
or suggestions in relation to this report tocorporate.sustainability@anz.com.

Overview and governanceOur reporting suite2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion

You can trace our approach tohuman rights throughout thisreport using this symbol

Explanatory notes
KPMG assurance opinion

5

ANZ 2023 ESG Supplement

Overview and governance

DISCLAIMER & IMPORTANT NOTICES

Our reporting suite
The material in this report contains general backgroundinformation about the Group’s activities current as at
9 November 2023. It is information given in summary
form and does not purport to be complete. It has asustainability focus and does not reflect the totalityof the Group’s business activities. For a more complete
overview of the Group’s business, see the ANZ Annual
Report available at anz.com/shareholder/centre/.
It is not intended to be and should not be relied uponas advice to investors or potential investors, and does
not take into account the investment objectives, financial
situation or needs of any particular investor. These should
be considered, with or without professional advice, when
deciding if an investment is appropriate.

Forward-looking statements
This report may contain forward-looking statements or
opinions including statements regarding our intent, belief
or current expectations with respect to the Group’s business
operations, market conditions, results of operations andfinancial condition, capital adequacy, sustainability objectives
or targets, specific provisions and risk management practices.
When used in the report, the words ‘forecast’, ‘estimate’,'goal', 'target', 'indicator', 'plan', 'pathway', ‘ambition’,‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’,‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’and similar expressions, as they relate to the Group and its
management, are intended to identify forward-looking
statements or opinions. Those statements are usually
predictive in character; or may be affected by inaccurate
assumptions or unknown risks and uncertainties or may
differ materially from results ultimately achieved. As such,these statements should not be relied upon when making
investment decisions. These statements only speak as at thedate of publication and no representation is made as to theircorrectness on or after this date. Forward-looking statements
constitute ‘forward-looking statements’ for the purposesof the United States Private Securities Litigation Reform Act of1995. The Group does not undertake any obligation to publicly
release the result of any revisions to these forward-looking
statements to reflect events or circumstances after the datehereof to reflect the occurrence of unanticipated events.

Climate-related information
This report may contain climate-related statements,
including in relation to climate-related risks and opportunities,
climate-related goals and ambitions, climate scenarios,
emissions reduction pathways and climate projections.
While the Group has prepared the statements in goodfaith, climate-related statements are subject to significant
uncertainty, challenges and risks that may affect theirusefulness, accuracy and completeness, including:
1. Availability and reliability of data – emissions andclimate-related data may be incomplete, inconsistent,
unreliable or unavailable (including information fromthe Group’s clients), and it may be necessary to rely on
assumptions, estimates or proxies where that is the case.
2. Uncertain methodologies and modelling –methodologies, frameworks and standards used for
calculations of climate-related metrics, modelling andclimate data are not universally applied, are rapidly evolving
and subject to change. This may impact the data modelling,
approaches, and targets used in preparation of this report.
3. Complexity of calculations and estimates – Estimating
financed emissions (including allocating emissions tofinancing activities) and emissions reduction is complex
and relies on assumptions and judgments, often made in
respect of long periods of time. For facilitated emissions,suitable standards to allow financial institutions to calculate
facilitated emissions are still under development as at
October 2023.
4. Changes to climate-related governing frameworks –changes to climate-related policy, laws, regulations
and market practices, standards and developments,
including those resulting from legal proceedings andregulatory investigations.
5. Lack of consistency in definitions and climate-scienceterminology subject to changes – definitions andstandards for climate-related data and assessment
frameworks used across industries and jurisdictions mayvary, and terminology and concepts relating to climate
science and decarbonisation pathways may evolve andchange over time. These inconsistencies and changes canalso make comparisons between different organisations’climate targets and achievements difficult or inappropriate.

6. Reliance on third parties for data or involvement –the Group may need to rely on assistance, data orother information from external data and methodology
providers or other third parties, which may also be
subject to change and uncertainty. Additionallyaction and continuing participation of third parties,
such as stakeholders, may be required (including
financial institutions and governmental and nongovernmental organisations).
Due to these uncertainties, challenges and risks, statements,
assumptions, judgments, calculations, estimates or proxies
made or used by the Group may turn out to be incorrect,
inaccurate or incomplete. Readers should conduct theirown independent analysis and not rely on the information
for investment decision-making.
The information in this notice should be read with:

2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets
Environmental sustainability
Housing
Financial wellbeing• The qualifications, limitations and guidance
included throughout this report

Customer experience• ANZ Data and Frameworks Pack available atanz.com/esgreport

Information security• ANZ Financed Emissions Methodology available atanz.com/esgreport• ANZ Greenhouse Gas Reporting and Carbon
Offset Guidelines available anz.com.au/about-us/esg/
environmental-sustainability/environmental-footprint/• ANZ Social and Environmental Sustainability
Target Methodology available anz.com/esgreport

Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

6

ANZ 2023 ESG Supplement

2023 ESGPERFORMANCE SNAPSHOT
Environmental
sustainability

Financial
wellbeing~$8.8B36%

funded and facilitated1 insocial and environmental
outcomesof ANZ Plus customers
have set up a savings
goal since October 2022

80%

More than

reduction in combined
Scope 1 and 2 greenhousegas emissions against
a 2015 baseline

87,000participants in our financial
education programs2

Overview and governance

Housing

Our reporting suite2023 ESG performance snapshot

Over

About our business$5.3B

ESG governance and risk management
What matters most to our stakeholders

funded and facilitated todeliver more affordable,
accessible and sustainable
homes to buy and rent
since 20183

Stakeholder engagement
Our ESG targets
Environmental sustainability

Supported more than

Housing

8,000

Financial wellbeing
Customer experiencecustomers into healthierhomes in New Zealand4

Information security
Ethics, conduct and culture

Ethics, conductand culture

Employee wellbeing
and inclusion

Information
security

Spent

87%

Stopped more than

$11.7M
with 46 Indigenous
businesses in Australia

employee engagement

37.3%

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion$100 M
going to criminals6

of women in leadership5

Launched in 2022, ANZ Plus is a new digital way to bank.
Starting with a save and transact proposition, ANZ Plus
has grown to nearly 462,000 customers in 2023.
READ MORE ON PAGE 35

1. Target to fund and facilitate at least $100 billion by end 2030 in social and environmental outcomes through customer activities and direct
investments by ANZ, commenced 1 April 2023. 2. Includes individuals who have participated in more than one program (for example, people whohave participated in MoneyMinded as part of Saver Plus are counted twice as they are included in both the MoneyMinded and Saver Plus totals).
3. In Australia and New Zealand. 4. Cumulative, includes the following products that have been provided since 1 October 2020: Healthy Home
Loan Package and Good Energy Home Loan. 5. 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 Full Time Equivalents (FTE)). 6. Via our people and systems, inreference to scams protection.

Image: ANZ Plus Coach.

7

ANZ 2023 ESG Supplement

ABOUT OUR
BUSINESS

We provide banking and financial products and services to over 8.5 million
retail and business customers, and operate across 29 markets.

Through our purpose we have elevated three areas
facing significant societal challenges aligned with
our strategy and our reach:

Our expertise, products and services make us a bank. Our people, purpose,values and culture make us ANZ.

• Improving the financial wellbeing of our people,
customers and communities by helping themmake the most of their money throughout
their lives;

Our organisation
On 3 January 2023, Australia and New Zealand
Banking Group Limited (ANZ BGL) established by ascheme of arrangement, a non-operating holding
company, ANZ Group Holdings Limited (ANZ GHL),
as the new listed parent holding company of the
ANZ Group and implemented a restructure to
separate ANZ’s banking and certain non-banking
businesses into the ANZ Bank Group and ANZ
Non-Bank Group (Restructure).
The ANZ Bank Group comprises the majority ofthe businesses and subsidiaries that were held in
ANZ BGL prior to the Restructure. The ANZ Non-Bank
Group comprises banking-adjacent businesses
developed or acquired by the ANZ Group to focus
on bringing new technology and banking-adjacentservices to the ANZ Group’s customers, and aseparate service company.

Our divisions• New Zealand – serves retail and commercial
banking customers in New Zealand and is oneof the largest New Zealand companies basedon profit and assets.
• Pacific – provides products and services to retailand commercial customers located in the PacificIslands, where our history dates back 139 years.
• Group Centre – provides support to the operating
divisions including Technology, Property, Risk
Management, Financial Management, Treasury,
Strategy, Marketing, Talent & Culture, Corporate
Affairs and Investor Relations.

Our purpose and strategy
Our purpose is to shape a world where people
and communities thrive. It explains why we exist
and drives everything we do at ANZ, including the
choices we make each day about those we serveand how we operate.

• Australia Retail – serves retail customers
across Australia through our branch network,
ATMs, digital and mobile banking applications
including ANZ Plus.

We bring our purpose to life through our strategy:
to improve the financial wellbeing and sustainabilityof customers through excellent services, tools andinsights that engage and retain them, and help
positively change their behaviour.

• Australia Commercial – serves commercial
and private banking customers across Australia
through our business centres, digital andmobile banking applications.

Integrating ESG and purpose into our strategy
has created an opportunity for us to better
serve our customers and generate long-term
shareholder value.

• Institutional – serves institutional and businesscustomers across Transaction Banking, Loans
and Specialised Finance, and Markets.

• Supporting household, business and financial
practices that improve environmental
sustainability; and• Improving the availability of suitable andaffordable housing options for all Australians
and New Zealanders.

Our values
Our values shape how we deliver our purpose-led
strategy. They are the foundation of how we work –living our values every day enables us to deliveron our strategy and purpose, strengthen stakeholder
relationships and earn the community’s trust. All
employees and contractors must comply with our
Code of Conduct, which sets the expected standardsof professional behaviour and guides us in applying
our values.
Our values are

Integrity
Collaboration
Accountability
Respect
Excellence

Supporting sustainable development

Overview and governance

We are committed to the United Nations
Sustainable Development Goals (SDGs) andbelieve that business has an important roleto play in their achievement. Our current ESG
targets strive to support all of the 17 SDGs.

Our reporting suite

In 2019 we became a founding signatory to the
UN Principles for Responsible Banking. Under
the Principles we are required to set at least
two targets that address our most significant(potential) positive and negative impacts, alignedwith the SDGs and the Paris Climate Agreement.
We have reported our progress towards
implementing the Principles using the Reporting
and Self-assessment Index, available in our ESG
Data and Frameworks pack at anz.com/esgreport.
This year KPMG have also provided limited
assurance over our Self-assessment Index.

2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

8

ANZ 2023 ESG Supplement

ESG GOVERNANCE
AND RISK MANAGEMENT
ESG governance and risk management
The ANZ Group Holdings Limited Board (Board)is responsible for the oversight of the Group, andits overall governance and performance, withspecific duties as set out in its charter available
at anz.com/corporategovernance.
The Board, with the support of the Board
Committees, is also responsible for oversight of
ANZ’s governance framework. The framework
seeks to provide for effective and responsible
decision making, assisting ANZ in delivering
on its strategy and purpose.
There are six principal Board Committees: theEthics, Environment, Social and Governance(EESG) Committee; the Audit Committee; the Risk
Committee; the Human Resources Committee; theDigital Business and Technology Committee; andthe Nomination and Board Operations Committee.
Each Committee has its own charter settingout its roles and responsibilities. Further details
about Board Committees are contained in ANZ’s
Corporate Governance Statement available
at anz.com/corporategovernance.
At management level, the Group Executive
Committee comprises ANZ’s most senior executives.
A delegations of authority framework outlines
those matters delegated to our Chief Executive
Officer (CEO) and other members of senior
management. In addition, a number of formallyestablished management committees deal withparticular ongoing issues.

1. Executive Committee members, excluding the CEO.

Our ESG approach and its implementation, including
how we manage our ESG risks and opportunities, areprimarily overseen by the Board and management
through our Board EESG Committee and executive
Ethics and Responsible Business Committee (ERBC).
Governance and oversight of risk management,
while embedded in day-to-day activities, is thefocus of committees and forums across the bank.
Refer to ANZ’s 2023 Annual Report, available atanz.com/annualreport, for an overview of ANZ’s
governance structure.

Board and Board Committees
ANZ’s Board
The Board is responsible to shareholders forthe governance of the Group and oversees its
operations and financial performance.
The role of the Board includes the promotion of thelong-term interests of ANZ. To fulfil its role the Board
sets and monitors the long-term implementation of
ANZ’s strategies and financial objectives. The Board
has a specific responsibility to oversee and assessmanagement’s performance in achieving strategies
and budgets approved by the Board and inmonitoring and managing risk across ANZ.
ANZ’s strategy is to improve the financial wellbeing
and sustainability of our customers. We are focusedon integrating our purpose and ESG approach into
our business strategy.

Through our purpose – we have elevated threeareas facing significant societal challenges alignedwith our strategy and reach. For more information
about our purpose and strategy see page 7.
Further, specific updates on our material ESG issues
and related targets are presented periodically to
the Board.
Board Ethics, Environment, Socialand Governance (EESG) Committee
The Board EESG Committee, chaired by ANZ’s
Chairman, is responsible for assisting the Board by
providing oversight of measures to advance our
purpose, focusing on ethical and ESG matters.
In undertaking this role, the EESG Committee is
responsible for oversight, review and approval of
our ESG approach, objectives and performance,
including our ESG targets.
The Board EESG Committee generally meets atleast four times annually, meeting five times in
2023. Meetings typically open with an overview of
the ESG operating environment, covering current
and emerging issues, including regulatory andparliamentary inquiries, community sentiment,
relevant international developments and our
stakeholder engagement.
The Board EESG Committee also reviews ERBC
meeting minutes and discusses material mattersreferred to the Committee from that body.
The charter of the EESG Committee is available
at anz.com/corporategovernance.

Board Risk Committee

Overview and governance

The Board Risk Committee (BRC) oversees theimplementation and operation of the Group’s
risk management framework, including new
and emerging risks, such as climate-related
and biodiversity risks.

Our reporting suite

The BRC meets at least four times annually,meeting eight times in 2023. The charterof the Board Risk Committee is available atanz.com/corporategovernance.

2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets

Board Human Resources Committee

Environmental sustainability

The Human Resources (HR) Committee supports
the Board on remuneration and other HR matters.
It reviews the remuneration policies and practicesof the Group, and monitors market practice andregulatory and compliance requirements inAustralia and overseas.

Housing

The HR Committee has a strong focus on therelationship between business performance,risk management and remuneration, alignedwith our business strategy.

Ethics, conduct and culture

A concurrent meeting of the HR, Risk and Audit
Committees was held to review 2023 performanceand variable remuneration recommendations at
both the Group (i.e., assessment of the ANZ Group
Performance Framework which included ESG-related
objectives), CEO and Disclosed Executive1 level. Refer
below for ESG objectives and measures. Refer also
to our Remuneration Report from page 46 of our
Annual Report available at anz.com/annualreport.

Financial wellbeing
Customer experience
Information security

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

9

ANZ 2023 ESG Supplement

Management Committees and Forums

Board skills

Ethics and Responsible BusinessCommittee (ERBC)The ANZ Board Skills Matrix, as set out in the 2023
Corporate Governance Statement, which is available
at anz.com/corporategovernance, outlines the
key skills and experience the ANZ Board is looking
to achieve in its membership and the number of
directors with each skill or experience. Includedin the skills matrix is Sustainability.

The ERBC, chaired by the CEO, comprises Senior
Executives and members from business divisionsand Group functions.
The ERBC is a leadership and decision-making bodythat exists to advance our purpose and seeks toensure that ANZ operates responsibly and achieves
fair, ethical and balanced stakeholder outcomes.
The ERBC approves relevant ANZ policies, such as
those policies identified in ANZ’s Climate Change
Commitment. The ERBC provides leadership on our
ESG risks and opportunities, monitoring progress(quarterly) against our ESG targets, which include
those related to climate change.
The ERBC considers the social and environmental
impacts of the industries, customers and communities
ANZ serves. The ERBC is responsible for overseeing
the ERBC Sub-Committee for sensitive wholesaletransactions.
The ERBC is accountable to the Board EESG
Committee in the effective discharge of its
responsibilities. It operationalises Board objectives
and makes decisions on issues and policies.
The ERBC meets at least four times annually,meeting five times in 2023.

Our Directors collectively bring a broad rangeof skills, and current and prior experience which
includes having held roles across sectors suchas infrastructure, energy, mining, banking andagriculture. For further details on the experienceof our Directors refer to anz.com/annualreport.
In addition to having individuals on the Board
with a variety of technical skills and experiences,the Board seeks to ensure that the Directors
operate as a team. The Board is focused on thelong-term success of the Group. Each Director has
an individual perspective which facilitates respectful
and constructive challenge of management andeach other and allows for robust debate that may
be required when navigating complex issues.
The Skills Matrix is reviewed by the Nomination and
Board Operations Committee on a regular basis.

OREC and CMRC have responsibility for the overview
of ANZ’s management of new and emerging risks
within their respective risk areas, which may include
risks that are climate-related. This year, OREC and
CMRC met eight and ten times respectively.

Other management committees play a role inthe management of risks.

Executive remuneration

Overview and governance

ANZ’s Remuneration Report within our Annual
Report, available at anz.com/annualreport, details
how remuneration outcomes are determined forour most senior employees. In general, remuneration
outcomes for the CEO and Disclosed Executives1
take into consideration performance against
ANZ’s Group Performance Framework – which
include ESG objectives and measures. For example,
the 2023 Group Performance Framework includes:

Our reporting suite

Activities undertaken by the ERBC will at times
overlap, and inform, topics raised in OREC and
CMRC as part of the executive oversight and risk
management required to deliver on ANZ’s purpose
and strategy.

• Maintaining industry leading employee
engagement.

Issues discussed this year at the Board
EESG Committee and ERBC

Individual/Divisional performance scorecards also
include ESG measures as relevant to the particularbusiness. It is important to note that Group/Divisionperformance objectives are not designed to capture
all of our ESG targets – however our senior leaders
are accountable for ensuring we focus on andachieve these, with regular review and oversightby the ERBC.

Both committees discuss the areas of ‘how we bank’and ‘who we bank’. This year the committees haveconsidered the below topics, including receiving
briefings from internal and external subject matter
experts. These briefings and meetings provide
opportunities to support knowledge building
and capability in a range of areas, for example:• Biodiversity

Other management committees

Operational Risk Executive Committee (OREC)
is the primary senior executive management forum
responsible for overseeing Operational Risk andCompliance Risk, risk profile, and the related Control
Environment across the Group; and1. Executive Committee members, excluding the CEO.

Credit and Markets Risk Committee (CMRC)
is the senior executive management forum
responsible for the oversight and control of credit,
market, insurance, and other material financial risks
across the Group.

• Engaging with 100 of our largest emitting
business customers• Decarbonisation pathways• ANZ’s reconciliation journey• Scams• Family violence• Accessibility and disability inclusion• Making meaningful progress on environmental
sustainability strategies (e.g. fund and facilitate
at least $100 billion by end 2030).

2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

10

ANZ 2023 ESG Supplement

WHAT MATTERS MOSTTO OUR STAKEHOLDERS
We engage with internal and external
stakeholders through our annual materiality
assessment. The results help inform ourstrategy, business practices – includingGroup Performance Framework –ESG targets and external reporting.
External views were sought across ourmajor geographies through interviews
with institutional investors, consumer
and environmental non-governmentorganisations, and our community
partners on a broad range of ESG issues.
Our material ESG issues
We’re continuing to bring our purpose tolife through our focus on complex issues ofimportance to society and our business strategy:
Environmental sustainability remains
one of the highest priority issues for our
stakeholders, seen in terms of both risks
and opportunities.
The prevailing economic conditions
mean financial wellbeing is recognisedas particularly important.
Housing is also identified as a key concern
with our stakeholders, noting the close
connection this has with financial wellbeing
and the challenges associated with housing
affordability and availability.

Overview and governanceOur materiality assessment this year also
highlighted the importance of three other issues:

Our reporting suite2023 ESG performance snapshot

Customer experience

About our business
ESG governance and risk management
What matters most to our stakeholders

Ethics, conduct and culture

Stakeholder engagement
Our ESG targets

Information security

Environmental sustainability

Customer experience and ethics, conduct andculture have been material ESG issues at ANZ for anumber of years and remain foundational concerns
for the bank; the latter is also core to our social
licence to operate. Discussions with our stakeholders
about information security also frequently
referred to scams and their increasing prevalence
and financial impact.
These six issues are largely consistent with our2022 assessment.

Our assessment processThis year, we increased our level of external
engagement and review of the external environment.
Our assessment approach is consistent with the
Global Reporting Initiative (GRI) Standard GRI G3:
Material topics 2021 and draws on the Sustainability
Accounting Standards Board (SASB) Conceptual
Framework 2017. Our approach considered our
impact of ESG issues on the economy, environment,
and people, including impacts on their human rights,
as well as the impact ESG issues may have on ouroperating performance. To do this, we used double
materiality – seeking views from stakeholders on
both: ANZ’s impact – both positive and negative –on society and the environment (externally focused),and ANZ’s ability to create value (internally focused).

Housing
Financial wellbeing
Image: ANZ Centre, Melbourne.

Our alignment with the GRI reporting frameworkand considers the SASB reporting framework,
among others, are contained in our 2023 ESG
Data and Frameworks Pack available atanz.com/esgreport.
To identify changes in our ESG risks and opportunities
that should be reflected in the list of material issues(refer to pages 10-12), we considered the following:• Our purpose, strategy, values and Codeof Conduct (refer to pages 7 and 46)• Our Key Material Risks (refer to pages 29-31
of our 2023 Annual Report available atanz.com/annualreport)• Recent regulatory developments, including
developments in sustainability reporting standards• Industry research and trends• Investor reports and priorities• Peer review• Media review and analysis• The United Nations Sustainable Development
Goals (SDGs)

Customer experience

This year we also revised our longer list of material
issues and our description of each issue basedon feedback from stakeholders engaged throughthe process.
‘Environmental sustainability’ now covers climatechange, and nature including biodiversity. Biodiversity,
which we identified last year, continues to advance
rapidly as important issues for ANZ to consider.
‘Investing in the community’ is renamed ‘Thriving
communities’ to reflect our purpose. ‘Employee
capability and wellbeing’ is renamed ‘Employees’
to incorporate all issues relating to our people.
‘Innovation and technology’ is renamed ‘Digitalbanking experience’. ‘Anti-money laundering andterrorism financing’, ‘Banking regulation’, ‘Corporate
governance’ and ‘Fairness and ethical conduct’ areconsolidated into ‘Ethics, conduct and culture’ and‘Regulation and risk management’. ‘Diversity andinclusion’ has also been included once again.

Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

Our most material ESG issues (not ranked)

Overview and governance
Related UN SDGs

Our reporting suite

Description of issue

Location of disclosure

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

2023 ESG Supplement pages 35-41

Managing the business risks, opportunities and impact of our financing
activities on climate change, nature including biodiversity, which includes
supporting our customers to transition to a low carbon economy andsupporting them to protect, restore and mitigate biodiversity loss.

2023 ESG Supplement pages 21-22

Our ESG targets

2023 Climate-related Financial Disclosuresavailable at anz.com/esgreport

Environmental sustainability

2023 ESG performance snapshot

Customer experience

Environmental
sustainability

About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement

2023 Annual Report pages 12-13 available atanz.com/annualreport

Housing
Financial wellbeing
Customer experience

Ethics, conductand culture

Financial wellbeing

Housing

Information security

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

2023 ESG Supplement pages 46-60

Information security

2023 Annual Report pages 17 and 31 available atanz.com/annualreport

Ethics, conduct and culture

Building financial knowledge and resilience through our products, services
and partnerships to help our people, customers and communities meettheir current financial commitments and future goals.

2023 ESG Supplement pages 26-34

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

2023 ESG Supplement pages 23-25

Responding and continually adapting to scams, fraud and cyberattacks
that threaten the confidentiality and security of systems and data.

2023 ESG Supplement pages 42-45

2023 Annual Report pages 6 and 9-10 available atanz.com/annualreport

2023 Annual Report pages 6-8, 10 and 24
available at anz.com/annualreport

2023 Annual Report pages 8 and 25-26 available atanz.com/annualreport

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

Other ESG issues (not ranked)

Overview and governance
Related UN SDGs

Our reporting suite

Description of issue

Location of disclosure

Keeping pace with technology innovation to deliver banking products
and services through reliable and convenient digital channels and services.

2023 ESG Supplement pages 35-36

About our business2023 Annual Report pages 4, 6-8 and 24 available atanz.com/annualreport

ESG governance and risk management

2023 ESG performance snapshot

Digital banking
experience

What matters most to our stakeholders
Stakeholder engagement

Diversity and inclusion

Supporting a diverse and inclusive culture for our workforce and community
to better serve the varied needs of customers.

2023 ESG Supplement pages 65-68

Our ESG targets
Environmental sustainability

Employees

Attracting and retaining capable and engaged employees by supporting
their wellbeing, ensuring fair and equitable remuneration, and helping
them develop their career.

2023 ESG Supplement pages 61-64

Supporting and respecting the human rights of our people, customers
and communities, including through the expectations we have of ourbusiness customers, suppliers and partners.

2023 ESG Supplement pages 54-55

Regulation andrisk management

Having appropriate governance frameworks, policies and processes
to comply with evolving regulatory requirements and to manage
emerging environmental, social and governance risks.

2023 ESG Supplement pages 8-9 and 49-50

Thriving communities

Supporting the communities in which we operate throughvolunteering, grants, workplace giving and disaster relief tocontribute to thriving communities.

2023 ESG Supplement pages 32-34

Housing
Financial wellbeing
Customer experience
Information security

Human rights

Ethics, conduct and culture
Employee wellbeing,engagement and inclusion

2023 Annual Report pages 24-31 available atanz.com/annualreport

Explanatory notes
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ANZ 2023 ESG Supplement

STAKEHOLDERENGAGEMENT
One of the ways we help create long-term value and deliver on our business strategy is through a collaborative and proactive approachto building and maintaining relationships with stakeholders.

Overview and governanceTo demonstrate trustworthiness and build on existing confidence, we have communicated openly, embedding stakeholder engagement in our policies,
processes and operations. Outlined below are the key issues raised by our stakeholders throughout the year and how we responded.

2023 ESG performance snapshot

Our reporting suite
About our business
ESG governance and risk management

Customers

Employees

Government and regulators

How we engaged

How we engaged

How we engaged• Branch staff and relationship managers(in-person and via calls, emails and letters)
for specific customer support• Annual ‘My Voice’ survey and regular ‘pulse’ surveys• Meetings with members of Parliament,
public officials and regulators• ANZ’s online customer research community• Online forums, surveys, focus groups,
and individual in-depth interviews• ‘Voice of Customer’ platform capturing feedback
on customers’ experience with ANZ• Conversations with our Complaints Resolution
Centre, Extra Care Hub and related functions• Social media
Key issues raised• Increasing interest rates and how it impacts costof living pressures• Conduct and culture• Products, fees and charges• Customer service including access to branches
in regional Australia• ANZ’s digital propositions and the ANZ Plus app launch• Agreement to acquire Suncorp Bank• Information security, scams and data privacy• Societal challenges including Indigenous Voice toParliament, housing affordability and natural disasters
How we responded
Our response to the issues raised by customers
can be found on pages 23-27, 34-35, 38 and 42-48
of this document.

• Interactive webcasts and teleconferences with CEO,
Executive Committee and other internal or external
guest speakers• Direct people leader communication• Internal communications channels, including email,intranet and Viva Engage• Meetings with unions representing ANZ employees
Key issues raised• Attracting, building and retaining
workforce capability• Business strategy and priorities including
the agreement to acquire Suncorp Bank
• Professional growth and development• ‘Speak up’ culture• Our purpose and ESG focus areas• Indigenous Voice to Parliament• Diversity and inclusion• Flexible working arrangements and returnto the office• Remuneration and reward; performance
management
How we responded
Our response to the issues raised by employees canbe found on pages 46-48 and 61-68 of this document.

• Submissions to and appearances before
Parliamentary committee inquiries andgovernment and regulatory consultations
Key issues raised
AUSTRALIA• Cost of living pressures, including the impact ofinterest rates on our customers and the economy• Initiatives concerning financial crime, including
reforms to Anti-Money Laundering/Counter Terrorism
Financing (AML/CTF) laws, scam prevention andcyber security• Initiatives concerning technology and privacy,
including artificial intelligence, the consumer
data right, reforms to Australia’s privacy lawsand digital identity• ANZ’s commercial activities, including theannounced agreement to acquire Suncorp Bankand the measures required from government
which are conditions precedent to the acquisition• The provision of banking services in regional Australia
and in respect of concerns relating to branch closures• Initiatives relating to Australia’s climate targets,
including climate-related financial disclosures,support for hydrogen and sustainable financing

What matters most to our stakeholders
Stakeholder engagement• Proposed reforms to the regulation of payment
systems and licensing of payment functions• The review into the quality of financial advice
NEW ZEALAND• Regulatory issues including responsible consumer
lending, the consumer data right, AML/CTF,
environmental planning reforms for agribusinesses,
merchant service fees, deposit compensation andprudential supervision• Public policy development on issues including
competition in retail banking, accessibility ofbanking services, climate resilience and climaterelated financial disclosures, scams, housing,macroprudential tools, and payments• Economic analysis and outlook provided by
ANZ Research
How we responded
We listen to and seek to engage constructively withgovernment, regulators and policy makers, including
participation in government consultations andparliamentary inquiries.
An overview of the work underway in response toissues raised is outlined on pages 21-22, 26-28, 38
and 42-45 of this document and pages 25-29 and 34-42
of the Climate-related Financial Disclosures available atanz.com/esgreport.

Our ESG targets
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

Shareholders
How we engaged• Disclosures including results announcements,
investor presentations, external reporting suiteand ASX lodgements• Shareholder engagement program including
ANZ’s shareholder centre website updates, written
communication and shareholder discussions• Interim and full-year results briefings• ESG investor briefings, strategy and othermarket updates• Annual General Meeting
Key issues raised• Approach to managing the bank andsupporting stakeholders through achallenging economic environment• Opportunities and challenges associatedwith current and future operating conditions• ANZ’s strategic focus, business priorities
and competitive advantage• ANZ’s purpose and ESG approach, targets
and progress• Financial performance including revenue trends, costmanagement and contribution from our divisions• Capital and balance sheet management including
liquidity and funding positions, portfolio credit quality
and risk management• Establishment of ANZ’s non-operating holding
company structure• Agreement to acquire Suncorp Bank
• Dividends• Indigenous Voice to Parliament
How we responded
We seek to provide shareholders with quality information
in a timely manner through our reporting suite,
announcements and briefings to the market, shareholder
communications and our dedicated shareholder site.
This year, we held a climate-focused investor roundtableand our sixth annual ESG investor briefing.
Our response to the issues raised by shareholders
can be found on pages 7 and 15-20 of this document
and pages 4-11, 24-26, 32-44, 84 and 126 of the 2023
Annual Report available at anz.com/annualreport.

Non-Government
Organisations (NGOs)

Industry associations

Overview and governance

How we engaged

Our reporting suite

How we engaged

ANZ is a member of a number of industry associations. Key
memberships include the Australian Banking Association(ABA), the Business Council of Australia, the New Zealand
Banking Association (NZBA), and Business New Zealand.

• Regular program of CEO and senior executive
meetings with civil society leaders• Direct engagement with NGOs and academics• Regular engagement with peak bodies for
professional community services such as
financial counselling• Regular meetings with our community partners
Key issues raised• Cost of living pressures• Support for customers, employees and communities
impacted by family violence and financial abuse• Indigenous social and economic development• Homelessness in Australia• Customers requiring extra care, hardship programs
and consumer protection• Conduct and culture• Climate change policies and risk management,
and biodiversity
How we responded
Our response to the issues raised by NGOs can befound on pages 20-21, 25-29, 37-40 and 46-48 of
this document, pages 25-29 and 34-42 of our 2023
Climate-related Financial Disclosures available atanz.com/esgreport.

Image: ANZ Centre, Melbourne.

Through our memberships we:• participate in discussions about industrywide issues
and strategy• provide input to industry association responses
to Parliamentary committee inquiries andgovernment consultations• engage with consumer representatives to discuss
issues affecting customers

2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets
Environmental sustainability
Housing
Financial wellbeing• participate in relevant ABA and NZBA working groups

Customer experience

Key issues raised

Information security• Review of the Banking Code of Practice• Information security, scams and data privacy

Ethics, conduct and culture• Climate change policy, climate risks andopportunities, climate-related financial disclosures

Employee wellbeing,engagement and inclusion• Consumer data right and consumer credit reforms

Explanatory notes• Modern slavery• Housing including responding to Government
initiatives and consultations
How we responded
We seek to contribute constructively to public policy
formation and understand the perspectives of ourcommunity’s elected representatives, policymakers
and regulators. We contribute to policy on business,
economic, social and environmental issues affecting
our customers and shareholders.
Our response to the issues raised by industry
associations can be found on pages 21-25, 42-45
and 55 of this document, and pages 25-29 and 34-76
of our 2023 Climate-related Financial Disclosuresavailable at anz.com/esgreport.

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ANZ 2023 ESG Supplement

OUR ESG TARGETS

Each year we set public targets that reflect our ESG focus areas, support
the delivery of our business strategy and respond to our most material
ESG issues. Progress against targets is reviewed by the executive Ethics
and Responsible Business Committee quarterly and twice a year by the
Board Ethics, Environment, Social and Governance Committee.

Overview and governanceOur reporting suite2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets

2023 TARGET PERFORMANCE STATUS

OUR MATERIAL ESG ISSUES
Environmental sustainability

This year we have achieved, or made good
progress against all targets.

Customer experience

3 have been achieved

Environmental sustainability

Housing
Financial wellbeing
Customer experience
Information security

partially achieved
6 are
or in progress

Ethics, conduct and culture$

Financial wellbeing
Five of the targets were revised
during 2023 or for 2024.

Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes

Housing
Information security

Details of our 2023 targets andperformance are set out on pages 16-18.

Details of our material
issues are set out on pages 19-20.

GO TO SECTION

GO TO SECTION

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ANZ 2023 ESG Supplement

2023 ESG TARGETS
PERFORMANCE SUMMARY
Targets

Performance

Have 30% or more of ANZ Plus Save customers
set a savings goal, by end 2023.

36% of ANZ Plus customers have created a savings goal.

StatusRelated UN SDGs

Overview and governanceOur reporting
Ourreportingsuite
suite2023 ESG performance snapshot
About our business
ESG governance and risk management

Establish seven new partnerships to expand thereach and improve the impact of MoneyMinded
for disadvantaged communities, by end 2023.

We have established 14 new MoneyMinded partnerships since October 2020. These partnerships
have enabled us to deliver MoneyMinded to more lower income people across the markets weoperate in to help improve their financial wellbeing.

Fund and facilitate at least $100 billion by end of 2030 insocial and environmental outcomes through customer
activities and direct investments. This includes initiatives
that help lower carbon emissions, protect nature andbiodiversity, increase access to affordable housing andpromote financial wellbeing.

Since 1 April 2023, we have funded and facilitated approximately $8.8 billion, across 54
transactions, of which $4.1 billion is funded and $4.7 billion is facilitated.
On 31 March 2023 ANZ concluded its $50 billion by 2025 sustainable solutions target. We had
funded and facilitated close to $47.01 billion across 387 transactions and were forecast to meet
our $50 billion target well in advance of 2025.

What matters most to our stakeholders
Stakeholder engagement
Our ESGOur
ESGtargets
targets
Environmental sustainability

Revisedduring2023

Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion

Engage with 100 of our largest emitting businesscustomers to encourage them to, by end 2024:• We re-engaged with all 100 customers on their low carbon transition plans and efforts
to protect biodiversity this year.

• strengthen their low carbon transition plans sothat more customers achieve a ‘well developed’or ‘advanced’ rating; and• 64 customers now have ‘well developed’ or 'advanced' plans versus 42 in September 2021.

• enhance their efforts to protect biodiversity.

• We prioritised engagement with ‘underdeveloped / starting out’ and ‘no public plans’ rated
customers (those with less developed or no public plans) to seek improvements in their plans.
Seven customers have improved from ‘no public plans’ to ‘underdeveloped / starting out’in 2023.

Explanatory notes

Revisedfor 2024• For biodiversity, 54 customers have targets, policies or strategies in place to protect biodiversity,with 61 making disclosures of their efforts to protect biodiversity.
• We are revising this target with a new phase of engagement with our largest emitting businesscustomers commencing in 2024 triggered, in part, by the Safeguard Mechanism in Australia.

1. This number is a restatement from our 2023 half year unaudited disclosures made on 5 May 2023. The $50 billion target was closed after reaching $47.09 billion; the closing audited balance has since been confirmed as $46.99 billion.

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ANZ 2023 ESG Supplement

2023 ESG TARGETS PERFORMANCE SUMMARY (CONTINUED)

Targets

Performance

StatusRelated UN SDGs

Overview and governanceOur reporting
Ourreportingsuite
suite

Improve the management of climate change risks
through the following activities by end 2023:

2023 ESG performance snapshot• Preparing a set of risk standards based on regulatory
obligations, to be applied across all countries
and territories where ANZ operates;• We engaged an external provider to undertake an assessment comparing regulatory expectations acrossseven of the jurisdictions in which we operate: Australia, New Zealand, Singapore, Hong Kong, the United
Kingdom, Europe and the USA. The assessment will help inform the integration of climate risk standards
and obligations into our Non-Financial Risk Framework commencing from 2024.

• Extending our Climate Change Risk Assessment(CCRA) methodology beyond our Project Financebusiness, starting with Institutional customers
in higher emitting sectors such as resourcesand energy;• The CCRA has been digitised and integrated into our credit risk assessment process via our Online
Customer Profile platform, alongside our Social & Environmental Risk screening tool.
• The CCRA is being expanded beyond our Project Finance business starting with Institutional energy
sector customers subject to the enhanced due diligence process and customers in our Large Emitters
Engagement Program.
• The CCRA will continue to be rolled out to Institutional customers in a phased approach across 2024 and 2025.

• Developing a data strategy to inform our approach
to sourcing and integrating climate data into sectoraltransition pathways, scenario analysis, stress testing
and analytics. This will include lessons learned fromthe New Zealand climate risk program.

• An Environmental Sustainability (ES) data strategy has been developed and endorsed by Data Prioritisation
Forum members.
• We expect the data strategy will help us to develop a more coordinated, centralised approach to climate datathat can be shared across divisions and jurisdictions in which we operate.

About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESGOur
ESGtargets
targets
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion

Reduce the direct impact of our business activities
on the environment1 by:• Reducing Scope 1 and 2 emissions by 85% by 2025
and 90% by 2030 (against 2015 baseline);

Scope 1 and 2 emissions have decreased by 80% since 2015

• Increasing renewable electricity to 100% by 2025 ;49% of electricity consumption associated with our operations came from renewable sources in 2023

• Reducing water consumption by 40% by 2025
(against 2017 baseline);

Global water consumption has decreased by 61% against a 2017 baseline• Reducing waste to landfill by 40% by 2025
(against 2017 baseline);

Waste to landfill generated by global operations has decreased by 71% since 2017

• Reducing paper consumption (both office and customer
paper use) by 70% by 2025 (against 2015 baseline).

Paper consumption has decreased 71% since 20152

1. Environmental reporting year is 1 July – 30 June, in line with the Australian regulatory reporting year. 2. Self-generated renewable electricity, direct procurement from offsite grid connected generators
e.g. Power Purchase Agreement (PPA) and default delivered renewable electricity from the grid, supported by credible attributes in accordance with RE100 technical guidelines

Revisedfor 2024

Explanatory notes
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ANZ 2023 ESG Supplement

2023 ESG TARGETS PERFORMANCE SUMMARY (CONTINUED)

Targets

Performance

StatusFund and facilitate $10 billion of investment by 2030
to deliver more affordable, accessible and sustainable
homes to buy and rent. (Australia /New Zealand)• This year we have funded and facilitated around an additional $610 million, bringing our total since
October 2018 to over $5.3 billion1.

Related UN SDGs

Overview and governanceOur reporting
Ourreportingsuite
suite2023 ESG performance snapshot

Revisedfor 2024

About our business
ESG governance and risk management
What matters most to our stakeholders

Support more customers into healthier homes
through discounted lending of NZ$300m funds undermanagement and 12,000 households by end 2025.
(New Zealand)

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

Since Oct 2020:

As at the end of Sep 2023 we have achieved:

We have supported 9,482 households into healthierhomes and drawn down NZ$379.09 million through:• 126% of our 2025 FUM target• 74% of our 2025 household target• Our Healthy Home Loan package• Our Good Energy Home Loan Top Up• Interest-free Insulation Loans2

Stakeholder engagement
Our ESGOur
ESGtargets
targets

Revisedfor 2024• Launched a Commercial banking proposition,
appointing two Indigenous Small Business
Managers to work with our Indigenous
Commercial customers.

• Embedded First Nations design principles into
the design concepts for key offices and branch
refurbishments or new builds, in consultation
with local Traditional Owners.

• Partnered with Indigenous Business Australia
to host a one-day CEO Assessment Clinic forthe leaders of six Indigenous businesses.

• Developed and implemented ANZ’s First
Nations Recruitment, Retention and Professional
Development Strategy (2024-2026) to drive greater
representation across all levels of the organization.

• Implemented a Cultural Learning Strategy designed
to improve the cultural competency of Australiabased non-Indigenous employees to meet theneeds of Aboriginal and Torres Strait Islandercustomers, employees and community partners.

Housing
Financial wellbeing

We continue to make good progress against the 17 actions in our RAP, delivering all objectives that fell due
in 2023. This year, we:• Spent $11.7 million with Indigenous businesses($24.4 million since the RAP commenced).

Environmental sustainability• Partnered with BlackCard to provide
cultural capability training to more than
280 Australia-based employees.
• Delivered eight MoneyBusiness coach training
sessions to community workers and financial
counsellors working in remote communities.

1. Includes a cumulative $4.4 billion disclosed in 2022, around $610 million achieved in 2023 and an additional $288 million in deferred deals from 2022 that have not previously been disclosed. 2. Product rolled off in July 2022.

Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

ESG TARGETS
FOR 2024

New

TARGETS

MATERIAL ISSUES

Encourage our customers to build and maintain financial resilience with the aim of having at least
2.5 million customers1 with a financial buffer of approximately 6 weeks’ expenses by end 2026.
(Australia/New Zealand)$

Pilot a savings program2 for people on lower incomes in Fiji and Vanuatu by end 2025, withat least 80% of participants having demonstrated a savings habit3 upon completion. (Pacific)$

RELATED UN SDGS

Overview and governanceOur reporting suite2023 ESG performance snapshot
About our business
ESG governance and risk management
What matters most to our stakeholders
Stakeholder engagement
Our ESG targets
Environmental sustainability

Revised during2023 and for 2024

Fund and facilitate at least $100 billion by end 2030, including $15 billion by end 2024, in social andenvironmental outcomes through customer activities and direct investments by ANZ. This includes
initiatives that help lower carbon emissions, protect nature and biodiversity, increase access toaffordable housing and promote financial wellbeing.

$

Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

1. From a baseline of approximately 2.4 million customers as at 30 September 2023. 2. Saver Plus. 3. Eight out of 10 months saving (as per Saver Plus program), measured by participant survey data.

20

ANZ 2023 ESG Supplement

ESG TARGETS FOR 2024 (CONTINUED)TARGETS

Revised for 2024

MATERIAL ISSUESRELATED UN SDGS

Overview and governanceOur reporting suite

Enhance our management of climate risks and opportunities by intensifying our engagement with
our largest emitting business customers. We will expect and encourage them to strengthen their low
carbon transition plans, by:2023 ESG performance snapshot• focusing our engagement and raised expectations on our 100 largest emitting customers with theaim that by end 2025, compared to their starting point more customers achieve a ‘well developed’or ‘advanced’ rating for their low carbon transition plans;

What matters most to our stakeholders• extending the use of our Climate Change Risk Assessment methodology so that by end 2024 it has
been used to support our engagement with the revised list of our 100 largest emitting customers.

About our business
ESG governance and risk management
Stakeholder engagement
Our ESG targets
Environmental sustainability

Reduce the direct impact of our business activities on the environment1 by:• Reducing combined scope 1 and 2 emissions 85% by 2025 and 90% by 2030 (against 2015 baseline);• Increasing renewable electricity to 100% by 2025;

Housing
Financial wellbeing• Reducing water consumption by 40% by 2025 (against 2017 baseline);

Customer experience• Reducing waste to landfill by 40% by 2025 (against 2017 baseline);

Information security• Reducing paper consumption (both office and ANZ originated customer paper use) by 70%
by 2025 (against 2015 baseline).

Ethics, conduct and culture

Fund and facilitate at least $10 billion of investment by end 2030, including $750 million by
end 2024, to deliver homes to buy and rent that are more affordable, accessible or sustainable2.

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

Helping New Zealand homeowners improve the sustainability of their homes and/or reduce theirtransport emissions through discounted lending of at least NZ$670m in aggregate to at least 16,000
households by end 2025. (New Zealand)Continues unchanged

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

1. Environmental reporting year is 1 July – 30 June, in line with the Australian regulatory reporting year. 2. Eligible housing transactions that also meet the eligibility criteria for the social and environmental target to achieve $100 billion by end 2030 may contribute towards both targets.

21

ANZ 2023 ESG Supplement

OUR APPROACH
TO CLIMATE CHANGE

ANZ has chosen some key focus areas as partof our Environmental Sustainability Strategy:

Banking thedecarbonisation andelectrification of thetransportation value
chain

Increasing our
support for thetransition to low
carbonSupporting
sustainability inresource extraction,1
basic materials2 andnew technologies3

Providing the products
and services required
for transition to a low
carbon economy

Offering solutions to,and partnering with,sustainability-focusedfinancial institutions

We want to be the leading Australian and New Zealand-based bankin supporting customers’ transition to net zero emissions by 2050.

Enabling thetransition throughlower emissions
buildings

Assisting sustainable
food, beverage &agricultural practices
and supply chains

Our Climate Change Commitment provides theframework to achieve our strategy of transitioning
our lending to net zero in line with the goals of theParis Agreement. We joined the Net-Zero Banking
Alliance (NZBA) in 2021, reflecting that commitment
and setting pathways4 to support customers’emissions reductions.
Our Environmental Sustainability Strategy
identifies focus areas, technologies and financing
opportunities to help achieve our climate ambition.
The most important role we can play in thetransition to net zero is to support our customers to
reduce emissions and enhance their resilience to achanging climate. We support an orderly transition
that recognises and responds to social impacts.
This aligns with our purpose to shape a world
where people and communities thrive. Supporting
household, business and financial practices that
improve environmental sustainability is a key partof our purpose.
We are continuing to evolve our work to encourage
and support large emitting customers to implement
robust and credible transition plans and will begin
a new phase of this work in 2024, triggered, in part,

Overview and governance

Environmental sustainabilityby the Safeguard Mechanism reforms in Australia.
This engagement and our expanding sectoral
pathways help steer our decisions about whichcustomers we will support.

Our approach to climate change

Our social and environmental sustainability target of$100 billion funding and facilitation by the end of2030 makes our aspiration clear. We have achieved
close to $8.8 billion in the first six months of thistarget. This target includes initiatives that help lower
carbon emissions, protect nature and biodiversity,
increase access to affordable housing and promote
financial wellbeing. Detailed climate and naturerelated disclosures are available in our 2023
Climate-related Financial Disclosures reportavailable at anz.com/esgreport.

Housing

Financing sustainability

Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

The information in this section should be read
together with our disclaimer and important
notices available on page 5 and our Climate-related
Financial Disclosures and our Financed Emissions
Methodology. Both documents are available atanz.com/esgreport

1. Supporting sustainable resource extraction in areas such as iron ore, lithium, nickel, cobalt, rare earths, copper and bauxite. 2. Supporting basic
materials production including green steel and low-carbon aluminium production. 3. Supporting new technology projects focused on upstreamhydrogen and carbon capture use and storage. 4. Our sectoral pathways are how we are, over time, steering up to nine of our highest emitting
sectors in our loan portfolio towards the Paris Agreement goals as part of our commitment to the NZBA.

22

ANZ 2023 ESG Supplement

FINANCING
SUSTAINABILITY
New $100 billion social and environmental
sustainability target
On 31 March 2023 ANZ concluded its $50 billion
by 2025 sustainable solutions target. We had funded
and facilitated close to $47.0 billion1 across 387
transactions and were forecast to meet our $50 billion
target well in advance of 2025. Refer to page 83 of the2023 Climate-related Financial Disclosures available
at anz.com/esgreport for details.
Therefore, on 1 April 2023 ANZ commenced a newsocial and environmental sustainability target tofund and facilitate at least $100 billion by the endof 2030 in social and environmental outcomesthrough customer activities and direct investments
by ANZ. The target applies to the Group andincludes initiatives that help lower carbon emissions,protect nature and biodiversity, increase access toaffordable housing and promote financial wellbeing.

Under this target, we have funded and facilitatedapproximately $8.8 billion across 54 transactions.
This includes green, social, sustainability andsustainability-linked loans and bonds, and energy
and affordable housing transactions. Of these, $4.1
billion of transactions are on-balance sheet loans
and other credit lines provided to borrowers by
ANZ, while close to $4.7 billion has been facilitated –almost entirely through ESG-format bonds.
The majority of transactions included in the newsocial and environmental sustainability target to datewere funding for sustainability-linked facilities, energy,
affordable housing and green buildings (66%, 13%,
10% and 5% of funded transactions respectively)
and facilitation of ESG-format bond issuances.
Since 2015, we have achieved $74.9 billion insustainable funding and facilitation over threesustainability targets. ANZ achieved $19.13 billion

on our $15 billion target, close to $47.0 billion
on our $50 billion target and approximately $8.8
billion on our $100 billion target so far.
We include both customer transactions and direct
investments by ANZ towards the $100 billion socialand environmental sustainability target. Customertransactions can be either unlabelled social andenvironmental sustainability activities or labelledsustainable finance transactions that are alignedwith any of the 17 United Nations Sustainable
Development Goals (SDGs). This recognises theimportance of supporting sustainability andincreasing demand from customers across more
SDGs including those covering social issues,
nature and biodiversity. Our detailed Social andEnvironmental Sustainability Target Methodology
is available at anz.com/esgreport.

21% ENVIRONMENTAL

Facilitated$4.7 billion

3$0.4 billion Affordable Housing$0.09 billion Other Social

Funded 2$4.1 billion$0.5 billion Energy$0.2 billion Green Building$0.04 billion Transport$0.08 billion Waste

66% SUSTAINABILITY-LINKED

100% $4.6 billion

ESG-format Bonds

0%$2.7 billion Sustainability-Linked Facilities$0.005 billion
Affordable Housing

Overview and governance

KMD Brands Limited

Environmental sustainability

KMD Group refinanced its syndicated debt facilities
into NZ$310 million equivalent sustainability-linked
facilities, including guarantee lines in May 2023. The
facilities featured updated sustainability targets of
the KMD Group including reducing greenhousegas emissions, continued B Corp certification, andimproving transparency within its supply chain.
ANZ acted as Sole Sustainability Coordinator, Sole
Mandated Lead Arranger & Bookrunner, Facility
Agent, and Security Trustee.

Our approach to climate change

Impact Investment Exchange IIX
In December 2022, ANZ led the inaugural US$50
million four-year Women’s Livelihood Bond for
Impact Investment Exchange (IIX), the world’s firstsustainable debt issued under the Orange Bond
Principles which aims to mobilise gender-lensinvesting under an orange-labelled asset class.

Progress towards our $100b social and environmental sustainability target
13% SOCIALHIGHLIGHT

The structure securitises a portfolio of loans toenterprises that are deemed to have a positive
impact on women’s livelihood and may not haveaccess to international capital markets. The Bond’s
proceeds are intended to support approximately
280,000-300,000 women across Asia and Africa totransition to more sustainable, climate-resilient
livelihoods.
The Women’s Livelihood Bond Series leverages
innovative financial instruments to advance genderequality at scale. ANZ has been involved in all fivebond issuances totalling more than US$120 million.

1. This number is a restatement from our 2023 Half Year unaudited disclosures made on 5 May 2023 when the $50 billon target was closed after reaching $47.09 billion; the closing audited balance has since been confirmed as $46.99 billion. 2. For more information on funded categories see
ANZ's Social and Environmental Sustainability Target Methodology. 3. For more information on facilitated categories see ANZ's Social and Environmental Sustainability Target Methodology.

Financing sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

23

ANZ 2023 ESG Supplement

IMPROVING THE AVAILABILITY OF
SUITABLE AND AFFORDABLE HOUSING
Bringing more homes to market

We are focused on helping improve
the availability of suitable and affordable
housing options for all Australians
and New Zealanders by:• increasing the supply of newsocial and affordable housing
into the market;• backing new housing models frompilot to scale to support delivery
of a housing pipeline; and• financing emerging markets suchas build-to-rent-to-own, specialist
disability accommodation andland lease communities.

In 2018, ANZ announced a public target tofund and facilitate $1 billion of investment by
2023 to deliver more affordable, secure andsustainable homes to buy and rent. In 2020,
having exceeded that objective, ANZ extended
the target.
Today, ANZ’s current housing target is to fund andfacilitate $10 billion in investment by 2030 for more
affordable, secure and sustainable homes to buy andrent. We have already delivered around $5.3 billion1
into the housing sector, with around $610 million
delivered in 2023, a testament to our focus and themarket’s appetite.

Overview and governance

HIGHLIGHT

Environmental sustainability

This year, ANZ supported the launch of a new projectto market by specialist affordable housing fundmanager Super Housing Partnership (SHP) and theirventure partner, Assemble. SHP provides institutional
investors with access to equity investments in newbuild-to-rent housing projects with a focus on social
and affordable housing in Australia.
In September, construction commenced on
SHP’s first project located in Kensington, Victoria.
The residential development comprises 362
apartments including 73 social, 73 affordable,

14 specialist disability accommodation and202 private market rental homes.
Partnering with SHP, Assemble, HESTA, Treasury
Corporation of Victoria, and Housing Choices
Australia has delivered a project that clearly
demonstrates the role innovative financial solutions
can play when purpose-aligned organisations
across government, the private market and thecommunity sector, come together. It is significant
that this represents a deal with no underlying
government subsidy to deliver this project.

Improving the availability ofsuitable and affordable housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion

Our target is focused on delivering more new
housing supply to market. Specifically, howfinancial institutions can play their part inchanging the market to deliver more of theright housing, in the right locations at the rightprice point for both rental and purchase.

Explanatory notes
KPMG assurance opinion

This can be completed through the ongoingdelivery of housing supply including backing of
emerging markets, new market models and scalable
pilot projects. Investment in social and affordable
housing not only provides financial returns toinvestors, but also supports both the economy
and society.

1. Includes a cumulative $4.4 billion disclosed in 2022, around $610
million disclosed in 2023 and around an additional $288 million indeferred deals from 2022 that have not previously been disclosed.

Housing

Image: Artist's render of the Super Housing Partnership's Kensington project.

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ANZ 2023 ESG Supplement

DELIVERING $5 BILLION OF HOUSING SUPPLY IN FIVE YEARS

Overview and governance

Since 2018, ANZ has continued to focus on supporting our customers across each of our major housing strategy pillars, maintaining our focus on
long-term supply initiatives. Examples of projects we have supported include:

Environmental sustainability

Housing
Improving the availability ofsuitable and affordable housing
Financial wellbeing
Customer experience
Information security

Social and Affordable Housing

Accessible Housing

Secure Housing

Sustainable Housing

Ethics, conduct and culture

Housing supply for government to meet theneeds of vulnerable communities and for rental
or purchase at 80% or below local market price.
This includes affordable market housing, communityand public housing, or affordable seniors livingsuch as Land Lease Communities.

Funding the development of homes, which are
aimed at supporting people with disability to pursue
their goals, realise their full potential and to exit
inappropriate forms of existing accommodationsuch as hospitals and residential aged care.

Housing supply that provides security of tenure
for both rental and purchase. This includes buildto-rent-to-own, build-to-hold, and build-to-rent.

Housing supply that delivers above regulatory
minimum standards for energy, water or waste.
Includes 7-star NATHERS or above, carbon
neutral, net zero and Green Star Communities.

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

HIGHLIGHT

HIGHLIGHT

HIGHLIGHT

HIGHLIGHT

Funded a $57 million facility to support theConscious Investment Management Group’s
affordable housing investment fund in a partnershipwith Housing First to provide 307 apartments.
Includes a 10-year subsidy from the Victorian
Government which demonstrates the role the financesector can play when the funding gap is bridged.

ANZ is a leading financier with more than $300
million of investment in the Specialist Disability
Accommodation (SDA) sector since 2018 which
finances groups, such as MySas and Synergis, thathave developed purpose built accommodation
for up to 530 SDA participants.

Supporting the expansion of Assemble’s build-torent-to-own (BTRTO) model with three projects
underway or completed including constructionof a 199-apartment BTRTO project in Kensington,
Victoria. The model seeks to overcome two major
housing market hurdles: security of tenure andthe deposit gap.

In partnership with the Clean Energy FinanceCorporation, completed a $160 million green
loan for residential developer Mulpha Australia
to deliver nearly 200 apartments powered by
100% renewable energy with an all-electricand gas-free design.

25

ANZ 2023 ESG Supplement

Affordable and sustainable housing
in New Zealand
In 2023, ANZ continued to support New Zealanders
looking to combat rising energy and fuel costs andimprove the environmental sustainability of theirhomes, encouraging better housing standards forboth owner occupiers and renters through:• Our Healthy Home Loan package offersinterest rate discounts and fee savings for
eligible3 customers who are buying, building,renovating or already own a home with a
6 Homestar rating or higher.
• Our Good Energy Home Loan top up isavailable to existing eligible4 home loancustomers to upgrade their homes with solar
panels, heating and insulation, double glazing,
ventilation systems or rainwater tanks. It can also
be used for electric and hybrid vehicles, electricbikes, and electric vehicle chargers. It allows
customers to borrow up to NZ$80,000 at a
3-year fixed interest rate of 1% per annum.
Across the two products since October 2020,
8,091 households drew down the loans, foran aggregate amount of NZ$372.7 million.
This year, more than 11,000 Kiwis also took
advantage of our new Home Loan Check-In.
An average of 55% of these customers decided
to take action following the check in, including
making changes to their loan. The check in isdesigned to support customers through thecurrent economic environment, to help ensure
their home loan meets their needs.

Our ongoing partnership with the New Zealand
Green Building Council includes support for
HomeFit – a free online tool to check the health,comfort, energy efficiency and safety of new homes,
or advise on how New Zealanders can improve
the health of their current home.

These insights further support our focus
on delivering security of tenure for renters,
including the opportunity to purchase; andthe need to increase the supply of social andaffordable housing. For more information visit
anz.com.au/about-us/esg/housing/

In-depth housing market analysis

ANZ Community Foundation
housing grants

ANZ continues to play a role in supporting thedevelopment of housing policy. We maintainongoing engagement with industry stakeholders
from across the sector, offering both public policy
and market expertise to support government,
the community and our customers.
Our ongoing partnership with CoreLogic (a leading
provider of property data and analytics) delivers
housing affordability research and in-depth market
analysis for the Australian housing market.
In 2023, CoreLogic research showed fluctuationsin interest rates, inflation and migration created amismatch of housing supply and demand, creatinga deterioration of rental affordability with a particular
pain-point for low-income households leading toincreased pressure on social housing providers andhomelessness service providers. For first homebuyers, record high rent values, a rising deposit
hurdle and rising interest costs presented an
unprecedented combination of challenges in
the current housing market dynamic.

This year, the ANZ Community Foundation provided
a number of grants to not-for-profit organisations
providing appropriate housing for Australians
experiencing vulnerability and at risk ofhomelessness, including:• Anika Legal (VIC) – A free online legal service
that provides reliable legal advice for renters totake control of their living arrangements. Provided
a grant of $20,000 to support people transitioning
from homelessness into housing to understandtenant’s rights.
• YWCA (NT) – A non-profit organisation providing
safe and affordable accommodation and services
to support women and gender diverse people
experiencing homelessness, family violenceor other crises. Provided a grant of $23,500
to upgrade emergency accommodation foryouth experiencing homelessness.

For more information about community
giving see pages 32-34.

3. Important information: ANZ Health Home Loan Package: https://www.anz.co.nz/personal/home-loans-mortgages/loan-types/healthy-homes/. 4. Important information: ANZ Good Energy Home Loan:
https://www.anz.co.nz/personal/home-loans-mortgages/loan-types/good-energy/.

Overview and governance
Environmental sustainability

Housing
Improving the availability ofsuitable and affordable housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

26

ANZ 2023 ESG Supplement$

SUPPORTING
FINANCIAL WELLBEING¢

Financial wellbeing is the extent to which someone is able to meet all
their current commitments and needs comfortably and has the financial
resilience to maintain this in the future.
ANZ has been exploring the financial literacy,
capability, attitudes and behaviours of Australian
adults for more than 20 years. This body of research
has informed our approach to improving thefinancial wellbeing of our people, customers andcommunities by helping them make the most of
their money throughout their lives.
Beyond providing core banking services, we haveplayed a key role in leading research into what is

influencing financial wellbeing in Australia and
New Zealand. Insights from our research are sharedpublicly so they can be used by government,
community and corporate sectors to inform theirwork, and we use these insights to inform our
products and services including ANZ Plus, as wellas our financial education programs Saver Plus andMoneyMinded. More information on ANZ Plus canbe found on page 35 and our financial inclusion
programs can be found on pages 29-31.

Overview and governance
Environmental sustainability
Housing

Financial wellbeing
Supporting financial wellbeing
Community investment
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes

Measuring financial wellbeing

KPMG assurance opinion

Financial wellbeing is measured by converting participants’ responses to a series of questions into scores(out of 100) against components considered to make up overall personal financial wellbeing. An overall
financial wellbeing score is created as an average of these components:
Four dimensions of financial wellbeing

MEETING
EVERYDAYCOMMITMENTS

How well people meettheir current expenses

FEELINGCOMFORTABLE

FINANCIALRESILIENCEFEELING
SECURE FOR
THE FUTURE

How comfortable people
feel about their current
financial situation(next 12 months)

The ability to copewith financial setbacks

A long-term view of
future financial security

27

ANZ 2023 ESG Supplement

Tracking financial wellbeing

ANZ tracks the financial wellbeing of Australians with the ANZ Roy Morgan
Financial Wellbeing Indicator, with the latest release comparing March 2023
results with June 2023.
The update pointed to a continued downturn in financial wellbeing in Australia this year.
As a result, the proportion of Australians considered ‘struggling’ with their financial wellbeing(a score of less than 30 out of 100) increased to 19% of the population, up more than
3 ppt from the same time in 2022. The proportion of those struggling varied widely
across demographics, including:Renters

Aboriginal andTorres Strait Islander people

31.3%

28.3%

As the cost of living increased in early 2023,
Australians began to feel less comfortable about
their financial situation which led to a decline intheir financial wellbeing. By September, Australians
were finding it increasingly difficult to meet theireveryday commitments.
The decline in meeting commitments for the
March 2023 quarter was more evident among
renters (down 4.9%) than those paying off theirmortgage (down 0.8%) or those who own
their home outright (down 0.7%).
To ‘make ends meet’, renters appear to have several
strategies including drawing down on savings,

increasing purchases on credit and seeking
additional employment. Although people paying
off their mortgage were also drawing down on
their savings and increasing purchases on credit,
they were not seeking additional employment,
and people who own their home outright wereprimarily increasing purchases on credit.

More information about the Financial
Wellbeing Indicator can be found at
anz.com.au/about-us/esg/financial-wellbeing/

Customer experience
Information security

People living in country areas

21.9%

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

People aged 14-24

23.2%

62
60
58

55.0

Women

22.0%

54

52.9

52
50

Jan-14Apr-14Jul-14Oct-14Jan-15
Apr-15
Jul-15Oct-15Jan-16
Apr-16
Jul-16Oct-16
Jan-17
Apr-17
Jul-17Oct-17Jan-18Apr-18
Jul-18Oct-18Jan-19Apr-19Jul-19Oct-19Jan-20
Apr-20Jul-20
Oct-20Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22Oct-22
Jan-23Apr-23Jun-23

22.3%

Financial wellbeing

Ethics, conduct and culture

56

People looking for work

Housing

Community investment

64

25.2%

Environmental sustainability

Supporting financial wellbeing

Financial wellbeing in Australia, monthly spot data and 12-month moving average (Jan-14 to Jun-23)

Households with incomesof less than $100,000 a year

Overview and governanceIndicator spot result

12-month moving average

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ANZ 2023 ESG Supplement

A spotlight on Australian women

Overview and governance

ANZ research examined the factors driving a persistent gap between
the financial wellbeing outcomes of women and men in Australia tohelp improve how we support female participants through our financial
education programs. The research was released in March to recogniseInternational Women’s Day.

Financial wellbeing score by age andmale/female(out of 100)
90
80
73

70
60

60
54

50

68

63
57

58

63

49

40
30

18–24
Male

25–34
Female

35–49

50–64

Living with spouseno children

Living with spousewith children

SingleparentLiving
alone

71

61

42

65

Housing

Financial wellbeing
Supporting financial wellbeing
Community investment

The research found Australian women consistently
experience lower financial wellbeing than men
at every life stage. Socio-economic factors suchas employment opportunities, household living
arrangements and looking after dependents had agreater impact on the financial wellbeing of womenthan men throughout their lives. These factors havean ongoing influence on the ability for women to
save and build financial resilience. While womenand men tried equally to save, even if only a small
amount, 17% of women reported not having any
savings to fall back on compared to 10% of men.

80

Environmental sustainability

Impact of household type on women’s financial wellbeing score (out of 100)

65+

Australians feeling confident they
can plan their financial future

Australians feeling anxious about
their future financial situation

Women

Men

Women

Men

64%

71%

47%

37%

Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes

Women were also less likely to be building resilience
for their longer-term future with lower levels ofinvestment in long-term assets. Fewer women (35%)
felt they would be able to save enough money tolast them to the end of their life than men (45%).
While socio-economic factors were key to this,financial confidence also played a significant role.
At all age groups, women felt less confident about
their ability to plan their financial future and wereless likely to feel they understood the risks associatedwith financial products, particularly long-term
investment products.

With these findings in mind, supporting women
to build financial resilience and long-term financial
security despite challenging socio-economic
conditions appears key to their financial wellbeing.
Fostering opportunities to build financial knowledge,
particularly in longer-term investment risks andnurturing a workplace culture that supports all
people to balance work and family commitments
may also aid in growing financial confidence,
behaviours and wellbeing. Refer to pages 65-68
for information on our approach to diversity
and inclusion.

Most concerningly, the gap in financial wellbeing
begins early in adulthood with 18–24-year-old
women having lower investment in risk assets thantheir male counterparts. This same demographic felt
more anxious about their future financial situation
than young men.

The research can be found at
anz.com.au/about-us/esg/financial-wellbeing/

KPMG assurance opinion

29

ANZ 2023 ESG Supplement

MoneyMinded: supporting financial
wellbeing across our region

A partnership approach to building
financial wellbeing with MoneyMinded

MoneyMinded is ANZ’s flagship financial
education program, supporting adults onlower incomes to build their financial skills,
knowledge, and confidence. The programis delivered by community organisations
in Australia and New Zealand. In addition,
this year MoneyMinded was delivered in 14
markets across Asia and the Pacific region bycommunity organisations and ANZ employees.

The success of MoneyMinded has relied on ourpartnerships with community organisations andindividuals who are best placed to deliver the
program within vulnerable and disadvantaged
communities.

An estimated 927,500 people have participatedin MoneyMinded, including MoneyBusiness,since 2002, with 83,974 participating this year.
Feedback from MoneyMinded coaches andparticipants about the impact of MoneyMinded
is available in our annual Impact Reports at
anz.com.au/about-us/esg/financial-wellbeing/moneyminded/

We have exceeded our target of establishing seven
new partnerships by the end of 2023 to expand
the reach and impact of MoneyMinded withinthese communities. Since October 2020, we haveestablished 14 new MoneyMinded partnerships
across New Zealand, Fiji, Timor Leste, and elsewherein Asia and the Pacific.

To continue this work, we have set a new target
to pilot a savings program1 for people on lower
incomes in Fiji and Vanuatu by the end of 2025, withat least 80% of participants having demonstrateda savings habit2 upon completion. More details on
our ESG targets can be found on page pages 15-20.

Family violence education
for prevention and recovery
In 2016, ANZ introduced an extension of
MoneyMinded designed specifically for people
in the community experiencing family violence.
It’s not always easy to recognise victim survivors ofabuse, but they are people we may have contact
with every day in our families, workplaces, andCharacteristics of MoneyMinded participants

neighbourhoods. In many cases, a person may
not immediately realise they’re experiencing family
violence as the impacts extend beyond physicaland emotional abuse.
One form of family violence is financial abuse
in which perpetrators may control their victim’s
finances or create debt in the victim survivor’s name.
This limits the victim survivor’s capacity to meetbasic needs, their freedom of choice and impacts
their actions now and into the future.
Berry Street has been training family violence
specialists in the enhanced MoneyMinded program– including a new range of visual resources, prompt
cards, animations, and interactive handouts,
supporting community professionals to talk about
financial abuse with their clients in accessible ways.
According to one MoneyMinded for family violence
trainer, the program has focused on the needs ofvictim survivors, identifying the warning signs offinancial abuse and the tools to help them move
forward financially.

3

AUSTRALIANEW ZEALAND

ASIA-PACIFIC

Female

74.8%

60.0%

53.5%

Male

24.3%

37.0%

46.4%

Non-binary

0.9%

3.0%

0.1%

Sole parents

32.3%

36.9%

7.1%

Unemployed

20.3%

45.0%

23.9%

Aboriginal or Torres
Strait Islander heritage

8.5%

N /A

N /A

“The program is designed to be flexible anduser friendly, adaptable to the needs of thevictim survivor and the focus of the supporting
agency,” they said. “I love the online tools andresources – they are so easy to use. As anexperienced practitioner, I feel more confident
to have conversations around money to support
victim survivors.”
Nearly 200 MoneyMinded for family violencecoaches have been accredited this year to use
these tailored resources with their clients following
the program refresh.

1. Saver Plus. 2. Eight out of 10 months saving (as per Saver Plus program), measured by participant survey data. 3. Characteristics are from the 2023 MoneyMinded survey responses and do not include MoneyBusiness survey responses.

Overview and governance
Environmental sustainability
Housing

Financial wellbeing
Supporting financial wellbeing
Community investment
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

MoneyMinded in Australia
Community professionals working in a client facingrole within the not for profit sector are eligible toattend MoneyMinded coach training, delivered
in-person and virtually to support people accessing
the training across Australia. Accredited coaches are
given access to a suite of both physical resourcesand online resources they can use with their clients.
According to one accredited MoneyMinded coach,the resources and information were easy and useful.
“I was recommended this training a while ago andfinally decided to attend,” they said. “I really like thesession planning tool, so easy to use and able to be
tailored for each person’s unique needs.”
Another accredited MoneyMinded coach said theinformation and discussions were relevant andprovided a toolbox of information to better support
the families they work with to expand their skills andknowledge. “It helps to better develop their money
skills including creating a budget, reduce debt andwork towards saving more regularly,” they said.

MoneyMinded in Fiji
Since 2010, MoneyMinded has been delivered acrossthe Asia Pacific region, including in Fiji where ANZ
and Fiji Rugby Union (FRU) have formalised a newpartnership to help players, FRU staff and members
improve their money skills, knowledge, andconfidence.
A spokesperson for FRU said they “were pleased
to strengthen our Vuvale partnership by locking in
financial literacy training for our players, our staff
and members, helping us to create a better financial
future for our Fiji Rugby vuvale (family).”

According to ANZ Fiji Country Head Rabih Yazbek,
Rugby Union players are some of the mostimportant role models in Fiji. “When the country
sees them making progress on their personal
financial journey, it has a huge impact on theirfellow Fijians,” he said.

MoneyMinded in New ZealandCommunity Colleges NZ (Comcol) is one of
ANZ Bank New Zealand’s main MoneyMinded
delivery partners. With five locations across theSouth Island, they have over 40 years’ experience
providing quality, hands-on learning and practicaltraining to rangatahi (youth). Services include
youth support, vocational training and preparationfor employment.
More than 35 youth coaches have been trained
to deliver MoneyMinded at Comcol, ensuring
clients from Rangiora in North Canterbury down
to Invercargill in Southland have the opportunity
to learn and practice budgeting and goal-setting
skills, standing them in great stead for their futures.
This year, more than 250 clients have been reachedthrough the program with ComCol.
Andrea Meier has delivered MoneyMinded at
Comcol since 2022, leading over 20 clients throughthe course. She finds getting clients to go throughtheir needs and wants using a series of cards is areal eye-opener. “It can vary so much from person
to person,” she says. “But before our students canlearn to budget successfully, it’s so important they
separate their spending habits into the things they
can’t get by without and those which are nice tohave, but not absolutely necessary.”

MoneyBusiness in Australia

MoneyBusiness was developed tobuild the money management skills andconfidence of Indigenous Australians
and develop a stronger savings culture
in remote communities.

Developed in 2005 by ANZ in partnership with
the Australian Government, it followed researchshowing financial exclusion was a significant
challenge for Aboriginal and Torres Strait Islander
people, particularly those living in remotecommunities. An estimated 90,400 people
have participated in MoneyBusiness since2005, with 4,702 participating this year.

Overview and governance
Environmental sustainability
Housing

Financial wellbeing
Supporting financial wellbeing
Community investment

Case study

Customer experience
Information security

Overcoming remote challenges
As a team leader for Wunan Foundation,
Ahmuth travels across remote communities
in Western Australia including Kununurra,
Wyndham, Doon Doon and Kalumburu
to conduct financial education workshops
specific to the unique needs of each
community.
Ahmuth initially completed MoneyBusinessin 2016 and refreshed his training when the
MoneyBusiness resources were updated.
“The transportable MoneyBusiness kit has
proven to be an indispensable asset along
my journey,” he said. “It’s convenient andthe comprehensive resource is very reliable
and accessible. It has supported my ability

Ethics, conduct and culture

to overcome remote challenges and capacity
to build trust with participants, contributing to
the success of the program in remote areas.”
Ahmuth says the resources not only allows him
to run efficient and effective workshops, theyalso align with with his values of sustainability
and environmental responsibility with electricity
a common theme in his workshops this year.
“MoneyBusiness facilitates community
engagement sessions, bringing together
individuals who face similar changes,” he said.
“Through these group discussions, clients canshare experiences, exchange ideas and findcollective solutions to alleviate the impactof high electricity costs”.

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

Overview and governanceCase study

Environmental sustainability
Housing

Meet Danielle, a Saver Plus participant
For many Australians, owning their own
home is a dream that feels out of reach.
As a mother to six children, Danielle foundit hard to save for rainy days and evenharder saving for a long-term goal.
Image: Saver Plus participant Danielle with her program coordinator.

Saver Plus
Saver Plus is a matched savings and financial
education program developed in 2003 by ANZ
and the Brotherhood of St Laurence. Funded by
ANZ and the Australian Government, Saver Plus
is delivered in partnership with Berry Street,
Brotherhood of St Laurence, and The Smith
Family. The Saver Plus program supports lower
income earners to build a savings habit, accessfinancial education and receive matchedsavings of up to $500 from ANZ to support
their own, or their children’s, education.
This year, Saver Plus celebrated 20 yearsof improving peoples’ financial wellbeing
by expanding from 60 individual sites toa national online program. The program is
now available online to anyone in Australia
who meets the eligibility criteria.

1. Refer to "Saver Plus: pathways to wellbeing" report (2018).

Saver Plus participants open an ANZ savings
account, set a savings goal and make deposits
regularly over 10-months while attending
MoneyMinded financial education sessions.
Research has shown many participants go
on to establish a lasting savings habit toachieve their financial goals and improvetheir financial wellbeing.
More than 3,200 Australians participatedin Saver Plus this year, totalling more than
58,000 since 2003 who have saved morethan $29 million and received more than
$24 million in matched savings from ANZ
for education costs. More than 80% ofparticipants in the program are women1,
half of all participants are single parents
and 80% are not working full-time.

Danielle participated in the Saver Plus programin 2014 while studying to become a counsellorand continued to use the Saver Plus ethos andher ANZ Progress Saver account after finishing
the program.
“[One thing] that stuck with me was therepetition,” she said. “Making sure to put money
aside every week and I’m still doing that today.”
Like many others, Danielle has had ups anddowns. “I ended up losing work through COVID,”
she said. “But we managed to still save thanks

to Saver Plus.” Danielle learnt a few tips
throughout her time in the program aboutsaving little amounts of money here and there.
During this difficult time, Danielle also reached
out to her former Saver Plus coordinator foradvice and support. “They told me to keep
focusing on my long-term goal, which wassaving a deposit for a house,” she said.
Through determination and savings
fundamentals, Danielle and her husband achieved
their long-term goal of being homeowners.
“We’re currently living in that dream house,”
she said. “A sense of achievement came outof managing to put all that money aside allby myself. I feel very empowered.”Financial wellbeing
Supporting financial wellbeing
Community investment
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

COMMUNITYINVESTMENT

We invest in the communities in which we operate andplay a role in supporting their capacity and resilience –supporting our purpose to shape a world where people
and communities thrive. Throughout the year we havecontinued to work closely with our community partners toseek to provide support in a respectful, fair, and appropriate
way, especially as cost-of-living pressures increase.

2023 contribution by type1
CASH$23,851,566
TIME$3,048,733
MANAGEMENT COSTS$5,492,071
IN KIND$38,135

Since 2005, we have measured the dollar
value of our community investment inaccordance with the Business for Societal
Impact Framework (formerly known as
London Benchmarking Group), a widelyadopted standard for measuring andmanaging social impact.
In 2023, our community investment was$141.6 million. In addition, we facilitated morethan $24.9 million in donations to community
organisations through our employees, customers,
shareholders, other partners, and the public,
including through our digital giving platform
Shout for Good.
Approximately $8.4 million of our community
investment totals (around 31% of our cash, time andin-kind contributions) contributed to programs andinitiatives that support women and girls. We recognise
women’s social and economic empowerment is
critical to achieving gender equality.

FORGONE REVENUE$109,216,186
TOTAL$141,646,691

1. Cash: gross monetary amount paid in support of a community organisation/project. Time: cost to the company of the paid working hours contributed by employees to a community organisation or activity. In-kind services: other non-cash resources to community activities (e.g. company products
or services or corporate resources). Management costs: costs incurred in making contributions, such as salaries and overheads. Forgone revenue: the cost of providing low or fee-free accounts to a range of customers such as government benefit recipients, not-for-profit organisations, students, andthe elderly. International transfer fees were waived for funds sent from Australia and New Zealand to Turkiye, Sri Lanka, Ukraine and the Pacific to support communities impacted by disaster-related events. This figure does not include remediation funds distributed to charity.

Overview and governance
Environmental sustainability
Housing

Financial wellbeing
Supporting financial wellbeing
Community investment
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

GivingOur workplace giving program enables employees
in Australia to make contributions to around30 charity partners aligned to our focus areas offinancial wellbeing, housing and environmental
sustainability through regular or once-off pre-tax
payroll deductions. Donations are ‘double matched’ –ANZ donates two dollars for every dollar donated byan employee (up to $5,000 per employee in a taxyear). This year, ANZ and our Australian employees
donated $1,380,780 to our charity partners throughworkplace giving.
ANZ also double matches donations made byemployees in New Zealand and Fiji through payroll totheir respective staff foundations (charitable trusts thatprovide small grants). Together with our employees,
we donated $2,937,136 to charitable organisations
in Australia, New Zealand, and Fiji in 2023.

Case study$

ANZ Seeds of Renewal
grant programThis year marks the 20th anniversaryof our partnership with the Foundation
for Rural and Regional Renewal (FRRR)
to deliver the ANZ Seeds of Renewal
program, with more organisations
across Australia receiving grants in 2023.

The program provides grants of up to$15,000 to help build vibrant and sustainablecommunities in regional Australia. This year,
we funded $250,000 in community grants,
shared between 20 projects.
In the 20 years since the program’s inception,
ANZ has donated more than $5.75 million insmall grants to over 800 community groups
and supported more than 900 projects inregional Australia.

Volunteering

Overview and governance

Our Volunteer Leave Policy applies to permanent,
regular, and fixed-term employees, providing atleast one day of paid volunteer leave each year.

Environmental sustainability

In 2023, our people volunteered 75,812.5 hours
to community organisations. This represents morethan 9,477 working days and $3,048,733 in value
to the community.
In 2023, ANZ Singapore was recognised by theSingapore National Volunteer & Philanthropy Centre(NVPC) as a Champion of Good. We were commended
for our long-term dedication to giving back inthe community, despite the challenges posedby the pandemic. For example, ANZ employees
in Singapore are helping their community thrive
through volunteering with Willing Hearts where
they’ve cooked and packed more than 10,000
meals for vulnerable families.
ANZ staff also worked hard to move in-person
volunteer opportunities online, enabling thecontinued delivery of ANZ’s flagship financial
literacy program MoneyMinded.

Community grants$1.71 million in community grants were
provided this year:$250,000$440,000in ANZ Seeds
of Renewal
community grants

in ANZ Community
Foundation grants

NZ$1.05 M

FJ$71,226

in ANZ BankNew Zealand Staff
Foundation grants

in ANZ Fiji Staff
Foundation
donations

Image: Woodend CFA 2nd Lieutenant and Community Safety Officer Susan Hobbs and Ex-Captain and Deputy Group Officer
Michael Dornau
Image: ANZ Singapore staff volunteering for Willing Hearts.

Housing

Financial wellbeing
Supporting financial wellbeing
Community investment
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

Shout for Good

Disaster relief and building resilience

This year, ANZ’s digital giving platform Shoutfor Good, which supports charities in Australia
with free and innovative digital fundraisingsolutions, facilitated over $15.3 million in
donations for more than 390 charities.

We are supporting our customers and communities
to manage and recover from natural disasters.
Our Disaster Relief and Recovery Policy guides anefficient, coordinated and proportionate response
to disasters. The policy encompasses a rangeof measures including charitable donations,hardship assistance, financial advice and employee
volunteering to assist with community rebuilding.

In 2023, Shout for Good launched a dedicatedticketing component to their existing product suite
which provides charities the ability to set up andsell digital tickets to fundraising events. Further
information can be found at shoutforgood.com.

This year, we activated financial relief packages
for customers in Australia affected by floods
across Victoria, New South Wales, South Australia,
Tasmania, Kimberley/Derby region and by Cyclone
Ilsa in Western Australia. In addition, ANZ donated$50,000 to local organisations for flood recovery
efforts in the Kimberley/Derby region in January.

We implemented our New Zealand customer
assistance package for those affected by severe
weather events in the North Island including
Cyclones Gabrielle and Hale, and floods
throughout January and February.
In addition, we donated NZ$100,000 to the
Auckland Mayoral Relief Fund to support local
communities impacted by the January flooding
event and pledged NZ$3 million in donations tocommunities affected by Cyclone Gabrielle. This
included NZ$1 million to support businesses andcommunities through local relief funds and Iwi
organisations in affected regions, NZ$1 million to
support horticulture and agriculture sector groups
and a NZ$1 million donation to the New Zealand
Red Cross Disaster Fund through a special
fundraising event with New Zealand Cricket.
We also launched a new low-interest ANZ Business
Regrowth Loan in New Zealand aimed at creating
a more enduring solution for those in need offinance following extreme weather events.
To help the flow of funds to communities impacted
by the cyclones, ANZ waived transfer fees on foreign
currency international transfers from Australia
to New Zealand. ANZ also waived internationalmonetary transfer fees for transfers from Australia
and New Zealand to Turkiye and continued towaive transfer fees to communities in Ukraine,
Sri Lanka and Pacific communities including the
Cook Islands, Fiji, French Polynesia (AU only),
Kiribati, New Caledonia, Papua New Guinea, Samoa,
Solomon Islands, Timor Leste, Tonga and Vanuatu.

Image: A vineyard in New Zealand's Esk Valley impacted by Cyclone Gabrielle.

For more information, please seeanz.com.au/about-us/esg/community

Distributing remediation funds to charity

Overview and governanceOur remediation program seeks to put things
right for customers who may have been impacted
by errors we’ve made. While we seek to ensure
remediation payments reach those impacted,
there are some cases where that does not occur,for example, when we cannot locate a former
customer. In most cases, we distribute theremediation payment amount to charity.

Environmental sustainability

In 2023, we distributed more than $6 million in
remediation funds to charities throughout Australia
including Berry Street, The Smith Family andcommunity legal centres. These donations havefunded more than 20 projects focused on delivering
long-term benefits to disadvantaged communitiesor those in need of extra care across metropolitan
and regional areas.
Projects include:
Job readiness for long-term unemployed
women in regional and rural areas to findand retain employment
Preventing and responding to financial
abuse of older people
Financial education and mental wellbeing
workshops for Indigenous Australians

Housing

Financial wellbeing
Supporting financial wellbeing
Community investment
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

HELPING CUSTOMERS BETTER MANAGE
THEIR MONEY AND SAVE WITH ANZ PLUS

Launched in 2022, ANZ Plus is a new digital way to bank. Starting with a saveand transact proposition, ANZ Plus has grown to nearly 462,000 customers
in 2023, 36% of whom are actively saving towards a financial goal.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing

We are building the digital tools, data
insights and coaching to help bring the ninefinancial wellbeing principles underpinning
ANZ Plus to life for our customers:
Spend less than you earn
Put money aside for a rainy day
Save regularly towards your goals
Protect what you can’t aﬀord to lose
Borrow within your means
Pay your most expensive debt first
Build towards your retirement
Invest in things that grow
Give back to family, friends andthe community when you can

We are encouraging our customers to build andmaintain financial resilience with the aim of having
at least 2.5 million customers1 with a financial buffer2of approximately 6 weeks’ expenses by the endof 2026. For more information about our 2024
ESG targets see pages 19-20.

Customer experience
Helping customers better manage
their money and save with ANZ Plus
Digital banking in the PacificSupporting customers in needof extra care and hardshipThis year, we have focused on upgrading
existing and releasing new features for ANZ Plus
to improve the customer experience, including:Resolving customer complaints fairly• Video chat with a Coach: This feature gives
customers peace of mind that conversations
regarding their most valuable assets are taking
place in a secure setting inside the ANZ Plus app,with the support of an expert ANZ Plus Coach.
• Higher payment limits, protected by Selfie ID:
High-value, self-service payments have beenenabled on ANZ Plus via BPAY and Pay Anyone,making it easier to pay a deposit for a newhome, buy a new car or make a payment on arenovation. When changing a Pay Anyone or BPAY
limit, customers need to successfully authenticate
using SelfieID. Payments are also protected bybehavioural biometrics and FalconX controls.
• Visa Card Authentication Service (VCAS):
Handing over your card details to a new merchantcan concern some customers, especially forhigh-value transactions. To help with this, ANZ
Plus has introduced Visa Card Authentication
Service which allows customers to approvetransactions identified as higher risk in the
ANZ Plus app, improving security.

Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes

Image: ANZ Plus Journey Expert Chloe Yap and Coach Pranay Chathley

KPMG assurance opinion• Home lending: We built a digital-first, data-driven
and automated home lending (refinance) solution
on modern technology and tested this with asmall number of staff customers.
Self-service options continue to grow, making iteasier for customers to quickly complete simple
tasks in the ANZ Plus app. For example, customers
can change their address, cancel and order a newcard or dispute a suspicious transaction without
needing to make a phone call or visit a branch.

ANZ Plus is focused on reducing the risk of fraud
and improving protection for our customers.
ANZ Plus safety features and controls start with asecure onboarding process which ensures identity
documents are authentic and biometrically matchthe customer’s “selfie” provided when joining.
Importantly, the introduction of a multi-layered
approach to onboarding has not been at theexpense of the customer experience, withcustomers able to join ANZ Plus in minutes andstart banking almost instantly, proof that things
can be both simple to use and safe.

1. ANZ customers in Australia and New Zealand. From a baseline of approximately 2.4 million customers as at 30 September 2023. 2. An amount of money set aside for unplanned expenses.

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ANZ 2023 ESG Supplement

DIGITAL BANKING
IN THE PACIFIC

The island country of Kiribati,on the edge of the Pacific Rim, ishome to just over 120,000 people
and is the most remote locationin ANZ’s international networkwith no direct delivery services
to the country.
A combination of persistent COVID-related supply
chain disruptions and unexpected changes tothe levels of currency circulating in the economy
meant last year, Kiribati citizens found themselvesin a strange predicament: they ran out of coins.

As the only bank in the country, ANZ wasdetermined to help find a solution to provide
the desperately needed currency. Working with
Swire Shipping, ANZ sent 4.4 tonnes of coins acrossmore than 7,000 miles, before landing in Kiribati.
At the same time, ANZ has been focusing on
reducing Pacific customers' reliance on cash
through digital banking. This move will provide
our customers with more choice, lower costs
and promotes financial inclusion by providingbanking options to those in remote areas who
may have traditionally missed out in the past.
It gives Pacific people a platform to compete
on the international stage.

Over the past 12 months, customers in Kiribati
have been embracing digital services. The volumeof digital transactions in Kiribati increased 94%
and the value of transaction has grown by 63%
over 12 months. Although there are only around
9,300 ANZ Pacific app users in Kiribati comparedto nearly 42,000 in Fiji, digital transfers from
Kiribati customers are around half the volumeof Fiji customers, showing a shift in consumer
behaviour towards a digital future.
ANZ’s ‘banking the unbanked’ program is arural banking business model operating inFiji in partnership with the United Nations
Development Program. It delivers basic,
affordable, and reliable banking services
to remote and disadvantaged communities.

Overview and governance
Environmental sustainability
Housing

There are now more than65,800 active ANZ Pacific
App customers across Fiji,
Samoa, Vanuatu, Cook
Islands, Tonga, Solomon
Islands and Kiribati.

Financial wellbeing

Customer experience
Helping customers better manage
their money and save with ANZ Plus
Digital banking in the PacificSupporting customers in needof extra care and hardship
Resolving customer complaints fairly
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

Source: Swire Shipping.

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ANZ 2023 ESG Supplement

SUPPORTING CUSTOMERSIN NEED OF EXTRA CARE
We continue to make progress implementing
our strategy for customers in need of extra
care in Australia. We are focused on productdesign and data use to improve accessibility
and limit harm. We are also strengthening
frontline capability and undertaking
community and industry engagement.

The Extra Care Hub

Overview and governance

Our Extra Care Hub is a specialist team who
provide support to frontline staff. It has a focus on
supporting customers impacted by family violence
and financial abuse through early intervention, andreviewing and making changes to their banking
arrangements to limit potential harm. The Hub
has helped support 800 cases this year.

Environmental sustainability

Key areas of progress include:

In one case, branch staff supported a 79-year-old
Indigenous customer with limited mobility
experiencing cognitive decline. This customer lives
in an aged care facility and faces communication
challenges as a result of literacy and language
barriers. The customer was in receipt of regulargovernment payments. Branch staff noticed
suspicious activity such as the customer attending
the branch alongside others claiming to be family
to make large cash withdrawals as well as online
activity that appeared unlikely based on thecustomer’s capacity.

Helping customers better manage
their money and save with ANZ Plus

• Our terms and conditions are being updated
for savings and transactions products, including
ANZ Plus, to make it clear financial abuse will
not be tolerated. We will take action to suspend,
cancel or deny access to an account if a customer
uses it to cause harm.
• We continue to provide enhanced training toAustralian employees through a combination ofleader-led meetings and workshops to identify
and support customers in need of extra care.
Topics include family violence, elder financial
abuse, Powers of Attorney, gambling harm,
supporting customers with disability andthose experiencing bereavement.

ANZ seeks to support customers in financial hardship or inneed of extra care, and ensure our products and services areaccessible and inclusive to all people. This aligns to our strategic
focus on improving financial wellbeing and the expectationsof our regulators, customers and the community.

Branch staff referred the matter to the Extra Care
Hub for specialist assistance. Legal approval was
obtained to engage the aged care facility, who
confirmed the customer did not have access to
the withdrawn funds and was often unable tomeet their daily expenses due to insufficient funds.
With the assistance of the aged care facility, the casewas reviewed by the Northern Territory Office of the
Public Guardian and an adult guardianship order was
granted to manage the customer’s finances.

For more information about how we are responding
to scams see page 42.

Housing
Financial wellbeing

Customer experience

Digital banking in the PacificSupporting customers in needof extra care and hardship
Resolving customer complaints fairly
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

Supporting Aboriginal andTorres Strait Islander customers
ANZ recognises Aboriginal and Torres Strait Islandercustomers, particularly those living in remotecommunities, may experience barriers to banking
and financial inclusion.
We continue to support these customers through:• ANZ’s Aboriginal and Torres Strait Islander
Customer Support Line which commenced
operating as a dedicated team in August this year.
If required, overflow calls are taken by trained
bankers across the Customer Contact Centre.
• Providing ongoing training to build cultural
capability and awareness for staff working on our
dedicated Aboriginal and Torres Strait Islander
Customer Support Line and in branch.
• Raising awareness of the Aboriginal and Torres
Strait Islander Customer Support Line amongcommunity groups and the local community.
• Updating the Statement of Referee form, whichlists alternative forms of acceptable identification
for customers who do not have conventional
forms of identification to support more accessiblebanking. The form now also includes financial
counsellors, staff at Services Australia andcommunity lawyers as referees.

For more information about ANZ’s Reconciliation
Action Plan see page 56.

Broome Circle
ANZ’s Customer Advocate team participates in
Broome Circle’s ‘Help us understand your way’
roundtable which brings together community sector
groups, financial counsellors, regulators, essential
service providers and banks. The focus of theroundtable is to discuss barriers faced by residents
living in remote communities in Western Australia’s
Kimberley region and to collaborate on ways toimprove accessibility and outcomes for this group.
Some of these barriers include costly trips to theclosest branch and issues with re-authentication or
language. Many customers experience issues withmeeting identification requirements and havedifficulty opening a bank account, a fundamental
part of participating fully in the economy. Broome
Circle has also facilitated outreach trips to remotecommunities, which ANZ has participated in, tobetter understand the effects of financial exclusionon these communities.

Supporting diverse language
and communication needs
To better support our culturally and linguisticallydiverse customers, we offer an at-call interpreter
service, delivered with a independent provider,that staff can contact to assist customers withlimited English. Overall, customer experienceand response times have improved, with abroad range of languages and a high qualityof interpretation provided.
This year, use of the interpreter service was
extended to support more than 5,940 customers
in 67 languages. The interpreter service is available
across all Australia Retail teams for service enquiries,
making it easier for customers to communicate
over the phone or in-person in the language of
their choice.
We also offer written formats in languages otherthan English:• ATMs offer multilingual options covering eightlanguages (Hindi, Arabic, Traditional Chinese,
Simplified Chinese, Korean, Greek, Vietnameseand Italian).
• Our Australian Customer Complaints Guide isavailable in Easy Read English and a range oflanguages including Auslan format to support
customers whose first language is not English,
people with cognitive impairment or low
language literacy, and customers who are deafor hard of hearing. We have seen strong customer
use of these accessible formats, representing
more than 32% of downloads this year.

Overview and governanceOur branch network

Environmental sustainability

Over the past decade, we have seen along-term shift in how our customers
want to bank with us with the numberof customers coming into a branch fortransactions reducing significantly.

Housing

Closing a branch is never a decision taken
lightly and we carefully consider a numberof factors. This includes long-term analysis of
how many customers are visiting a branch,
how they’re using it and what the alternativebanking options are. As part of this analysis,
we look at customer behaviour data,
including whether these customers areusing ATMs, phone or digital banking.

Helping customers better manage
their money and save with ANZ Plus

We understand it’s important to speak withour customers at this time and ensure thatthose requiring assistance with their banking
needs are contacted as a priority. We also
engage with the local representatives of alllevels of government each time we closea branch.

Financial wellbeing

Customer experience

Digital banking in the PacificSupporting customers in needof extra care and hardship
Resolving customer complaints fairly
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

SUPPORTING CUSTOMERSIN FINANCIAL HARDSHIPWe provide customers with a range of options
to help address their circumstances:

There are times when our customers are unable to meet theirfinancial commitments. In some cases, financial difficulty is
temporary, and our customers simply need time to get back on
track. While in others, the challenge is permanent and customers
may need extra help to review and restructure their financial
arrangements. Whatever the situation, we work with customers
to find a solution that is respectful, fair and appropriate.

1

Temporarily reducing or pausing repayments

2

Change to an interest only period

3

Loan restructuring including capitalisationof arrears

4

Provide information and access to ourfinancial literacy programs

5

Referrals to financial counselling via the
National Debt and/or small business helpline

6

We may reduce the amount of debt owing
and, in sensitive circumstances, consider
debt forgiveness on a case-by-case basis

Data plays an important role in the early identificationof customers who may fall into hardship. Analysis
of savings, credit and offset account data helps us
to understand customers’ financial behaviour andpotential future outcomes. Further, this data helps
us to identify customers who may be receiving
unemployment benefits or experiencing a reductionof more than 10% of their income. We can proactively
contact these customers, who may be at risk ofexperiencing hardship, and provide them withinformation about what assistance ANZ may be able
to offer. Additionally, ANZ staff are trained to identify
hardship triggers when engaging with customers.
When determining what assistance may be suitable,
we adopt a holistic approach which takes into
account all of the customer’s lending facilities.
Hardship experts are embedded across a number ofour hardship teams and are responsible for coaching
and uplifting the capability of hardship staff anddealing with escalated and/or complex customer
hardship requests. This helps position our teams wellto help those who may need assistance through any
economic uncertainty and we are ready to support
customers through periods of financial hardship. We
endeavour to instil a culture of empathy and train
our staff to identify and respond appropriately toeach customers’ needs, assisting them througha difficult period so they can get back on track.

Using artificial intelligence to help
identify stressThis year, ANZ piloted a daily “transaction score” inAustralia which can be used for hardship handling,developed in conjunction with global analytics
software leader FICO. The transaction score is
calculated using banking data fed into machinelearning, which provides a score on a customer
account where there may be early signs of financial
stress. This allows our people to get in touch withcustomers, by either SMS or telephone, to see if
there’s anything we can do to help.
Under the new transaction scoring system,
ANZ analyses both balance breakdowns andinternal dynamics. For example, the solution canpick up when a customer is suddenly spending
excessively compared with savings and earnings.
It can also capture when there is a high level ofinternal transfers between savings and transaction
accounts or reflect when a customer moves onto
government payments.
A total of 5 billion transactions over a 36-month
period were analysed to build out the scoring
solution. Everyday we are scoring 7.7 million retailand commercial customers with the software
which translates to processing 17 million customer
accounts and 15 million transactions on a daily basis.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing

Customer experience
Helping customers better manage
their money and save with ANZ Plus
Digital banking in the PacificSupporting customers in needof extra care and hardship
Resolving customer complaints fairly
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

Australia
Over the past 12 months, we proactively contacted
more than 164,000 home loan customers eachmonth to check-in and ensure the ongoingsuitability of their loan arrangements. Assistance
ranges from proactive, early hardship offerings to
simple repayment reminders to ensure sufficient
funds are in the payment account – these reminders
have been particularly successful with a 22%
improvement in on-time payment for those wereached out to. Despite ongoing interest rateincreases this year, our data continues to indicate
low levels of financial stress.
This year, we received 26,693 applications forhardship assistance in Australia, a decrease from36,326 in 2022. Our priority is always to help ourcustomers get back on track, and over 66% ofcustomers who contact us in hardship are back ingood shape with their home loan within 12 months.

New ZealandHardship application volumes in New Zealand haveincreased to 4,441 this year, compared to 3,338 for2022. Themes of illness, relationship break downs
and job loss or reduced hours remained consistent.
Based on a pilot in 2022, we have developed aproactive contact program and marketing campaign
to reach out to home loan customers identified
using data analytics as potentially in need ofsupport. We contacted 293,169 home loancustomers as part of the program including
outbound calls to 1,541 customers to discuss
whether they required assistance such as
restructuring their lending. Contact details areprovided should the customer need assistancein the future.

We continue to work with MoneyTalks, a free service
offering access to financial mentors located across
New Zealand who are fluent in several languages,
where we direct customers to obtain assistancewith financial budgeting options. Customers receivea call from a trained professional within 24 hoursof a referral from ANZ.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing

Customer experience

Referral programs

Helping customers better manage
their money and save with ANZ Plus

Customers may need extra care for a range ofreasons including as a result of loss from family
breakup, illness including permanent injury, or
natural disasters. In addition to our hardship teamworking with our customers, accessing financial
counselling can be a key step towards improving
financial wellbeing and regaining economic stability.
Economic dependency can also keep a person
locked into, or cause them to return to, anabusive relationship. In circumstances where arelationship has ended, a person may be left withdebt or may experience ongoing economic abuse.
Independent financial counselling and specialist
support can help a person on the path towards
economic independence.
We have processes in place to refer customers
in need of extra care to community partners
to receive appropriate assistance including:• Way Forward Debt Solutions – this registeredcharity provides free debt management services
to assist people in need of extra care to establish
affordable arrangements with their creditorsand management of debt repayments. This year,
we referred 61 customer accounts with current
funds under management of around $5.4 million.

Digital banking in the PacificSupporting customers in needof extra care and hardship
Resolving customer complaints fairly
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes• CareRing – run by Uniting, this program connects
customers to a coordinated range of support
services including housing support, social
workers, drug and alcohol services, homeenergy assessments and employment services.
We referred nearly 500 customers to CareRing thisyear. Clients of the CareRing program can also bereferred to our MoneyMinded program to develop
their basic budgeting skills. ANZ also provides a
specific program through CareRing for those inneed of immediate financial assistance to escapedomestic violence. This year, we have assisted
38 customers to access this support, providing
a combined total of more than $29,000 to assist
them on their journey to recovery.

• Fitted for Work (FFW) – this independent
Australian-based not-for-profit organisation
supports female-identifying unemployedcustomers to improve their employment prospects
by developing a résumé, writing a cover letter andprovisioning appropriate work clothes. This year,
340 hardship customers looking for work werereferred to FFW. Since inception, approximately
25% of referred customers who have completed
the FFW program have found employment.

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ANZ 2023 ESG Supplement

RESOLVING CUSTOMERCOMPLAINTS FAIRLY
We focus on investing in our capabilities,
embedding a culture where complaints
are valued as an opportunity to learn, anddelivering better customer outcomes. We
strive to deliver excellent products andservices to our customers, but if we get things
wrong we want to know, and seek to resolve
complaints with empathy and fairness.

Customers are able to lodge a complaint with ANZ
via online or customer-facing staff for Retail andCommercial in Australia and New Zealand, enabling
the recording and resolution of complaints at firstpoint of contact. In some cases, where additional
support is required, complaints are escalated
internally to specialist complaint resolution teams
who work with the customer to find a resolution.
If a customer is not satisfied with the proposed
resolution of their complaint, they can escalate theircomplaint to the Australian Financial Complaints
Authority (AFCA) or the Banking Ombudsman
Scheme (BOS) in New Zealand.
Reporting to the CEO, ANZ’s Customer Fairness
Adviser Evelyn Halls also provides advice to enable
a consistent and focused approach to customer
fairness. Through this role, Evelyn participates invarious internal customer forums as well as advisingon the industry’s approach to complaints and othercomplex matters. The focus of Evelyn’s work thisyear has included product design, service delivery
and scams.

Australia
Our ability to identify and analyse complaint data forsystemic issues continues to evolve via the use ofadvanced analytical techniques, including machinelearning, to help proactively identify emerging issues
from complaints.
The Customer Advocate function supports the fairtreatment of bank customers by providing advice
and guidance on sensitive and complex customer
matters, conducting thematic reviews to identify
trends, and leading the Customer Advocacy Forum.
Thematic reviews have led to additional awarenessraising for staff of the complexities regarding
1. Categorised by AFCA – includes scams where a customer was misled into authorising the transactions, fraud and disputed transactions.

non-standard identification documents, family
and domestic violence and Powers of Attorney.
The Customer Advocacy Forum monitors andoversees identified and emerging issues that may
impact retail or small business customers, witha focus on influencing fair customer outcomes
and limiting customer harm and detriment. A
Complaint Governance Forum, held bi-monthly,
provides oversight of the end-to-end complaints
management ecosystem, and promotes reductionof key complaint drivers.
In February 2023, ANZ commenced the reportingof internal complaints data to the Australian
Securities and Investments Commission (ASIC) on a
six-monthly basis. This year, ANZ recorded 328,154
complaints across a broad range of categories
including service quality; channel accessibility suchas branch or call centre queues and wait times; fees,
interest and rewards; account set-up/maintenance;
and fraud and scams. Complaints data and insights
are regularly reported to senior management andthe Board. This year, 5,444 complaints were referredby customers to AFCA, a 16% increase since 2022.
Unauthorised transaction complaints comprised
21% of complaints that progressed to AFCA this year.
These include a high number of customers being
targeted by investment scams where funds are
moved to various crypto accounts and become
untraceable. ANZ impersonator scams also continue
to drive complaints despite warnings by ANZ
on mobile and internet banking. Staff work withcustomers and consider individual circumstances
to resolve these issues.
1

The percentage of all complaints resolved within
30 days of receipt remained unchanged at 98%
this year (98% in 2022).

New Zealand

Overview and governanceComplaints recorded in New Zealand decreased
by 1% from 2022 with 37,475 recorded. We haveobserved a growing trend of complainants seeking
an independent review of their concerns andresolution offer, which has led to a 10% increase inreferrals to our internal escalation team and, in turn,referrals to BOS increasing by 41%. We continue towork with BOS to improve our complaints process
and support our customers to have confidence
we are adequately managing their issues.

Environmental sustainability

Service issues accounted for 40% of total complaints
received, with ‘request actioned incorrectly’ being
the top service related issue in 2023. Credit cards,
transactional accounts and home loans were theproducts with the most complaints. Common
concerns included account fees, requests actioned
incorrectly and maintenance fees.

Supporting customers in needof extra care and hardship

The percentage of complaints resolved within
five working days remained unchanged at 91%(91% in 2022); and the percentage of complaints
resolved within 30 calendar days of receipt remained
at 97% (97% in 2022).
Data relating to complaints is available in our2023 ESG Data and Frameworks pack available
at anz.com/esgreport.

Further information on how ANZ is responding
to scams can be found on page 42.

Housing
Financial wellbeing

Customer experience
Helping customers better manage
their money and save with ANZ Plus
Digital banking in the PacificResolving customer complaints fairly
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

INFORMATIONSECURITY
Scams

Cyber events, data breaches, scams
and fraud activity continued to risein 2023, affecting our customers andthe community more broadly.
We have a focus on safeguarding theconfidentiality, integrity and availabilityof our systems, services and information
to enable successful operations, businessgrowth and the financial wellbeingof our customers.

This year, we continued to review andadjust our capabilities to keep customers
safe as new scams emerge and cyber criminals
change how they operate. In 2023, ourpeople and our systems stopped more than$100 million being sent to criminals andour Scam Assist team investigated around
12,300 individual scams impacting retail1
and commercial customers in Australia.
We attempt to recover funds reported as scams or
fraud. However, the ability to recover funds depends
on a number of factors including how quickly it isreported to us and the speed in which funds aretransferred on by scammers. In many instances,
scammers transfer funds within minutes or use
them to purchase cryptocurrency. Given this, we
introduced friction and delays to some payment
destinations with high scam or fraud density.
We also worked with major telecommunications
companies to activate anti-spoofing technologies
such as the Do Not Originate (DNO) service andtechnology to prevent scammers from using the“ANZ” brand in text messages. This practice, known
as ‘spoofing’, has become increasingly common inAustralia and involves scammers sending an SMS
purporting to be from a legitimate organisation,
making it very difficult to spot a scam because it
is contained in the same text message thread asprevious communication from the company
being impersonated.

1. Excluding ANZ Plus.

As an extension to our behavioural biometrics
technology delivered last year, ANZ invested ina new security capability designed to detect muleaccounts being used to receive funds from scam
victims and other criminal activities. By using
artificial intelligence and machine learning, themule detection capability recognises money mules
and mule accounts.

Customers can also take steps to protect themselves
by remaining vigilant and suspicious of unsolicitedcontact or requests for funds from unknown
individuals. For more information about how toprotect yourself against, or report, a potential scam
visit anz.com.au/security/protect-your-virtualvaluables/scams/.

Overview and governance

A money mule is a person or company recruitedby criminals to transfer illegally obtained moneyor goods on their behalf. Typically, money mules
will receive funds into their bank accounts and be
instructed to transfer the money to another financial
institution, or via alternative payment methods,
such as the purchase of cryptocurrency.

HIGHLIGHT

Information security

This year, the mule detection technology identified
nearly 1,400 high risk accounts. Once identified,these accounts are reviewed by our fraud and scam
experts and, if it is found to be linked to a potential
or realised fraud or scam, the accounts are closed.
This process is supported by a new and dedicatedmule detection team who work alongside morethan 400 ANZ customer protection specialists.
We take the education of our customers andbankers seriously. This includes training our people
to recognise new scams, helping them to protect
customers and supporting our customers to be
more secure through new education resources
and regular alerts. For more information visit
anz.com.au/security/fraud-detection/latestsecurity-alerts/

Detection and prevention in New Zealand
There has been a significant rise in fraud and scam
events across New Zealand this year with somecustomers complaining if reimbursement claims
are unsuccessful. To address this growing issue,
ANZ Bank New Zealand invested in both detection
and prevention. We also joined a newly establishedindustry working group whose members include
representatives from the New Zealand Banking
Association and senior representatives from all the
major banks in New Zealand. The CEOs of New
Zealand's major banks meet regularly to discuss
this issue, among others.
The television education series, “You’ve Been
Scammed” was also funded and promoted by local
banks to help educate consumers on how to better
protect themselves. It was the fourth most popularshow on TVNZ in the month it aired.

Environmental sustainability
Housing
Financial wellbeing
Customer experience

Scams
Cyber security
Financial crime
Data protection and privacy
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

CYBER
SECURITY
Our enterprise security strategy is
guided by three clear goals: enablebusiness transformation, strengthen
our resilience and embed security.
Under each are a set of priorities outlining
a desired target state to:allow ANZ to confidently move into
new areas of growth by creating a secure,flexible environment for our customers,
staff, and partners to do business;advance ANZ’s readiness to rapidly detect,
respond and recover from a major cyberattack; andminimise the likelihood and consequenceof a cyber-attack through an in-depth
defense approach which includes ourpeople, third parties and controls coverage.

Our strategy, along with prioritised investment, hashelped build a security risk posture1 and operational
cyber security capability commensurate with thesize and extent of threats to our organisation.
Our information security assurance approachdraws on multiple layers of security testing andintelligence, seeking to ensure sustainable security
practices are in place to protect information andassets. We have layers of defence within ANZcomplemented by robust governance.
We use industry benchmarking as well as a seriesof exercises to map and simulate potential threats.
This helps us identify and understand emerging
threats, and adapt processes, technology andeducation to address the increase in customer
fraud and scams. We maintain strong relationships
and strategic partnerships with government,
industry, community groups and law enforcement
agencies locally and internationally to promote
cyber security resilience across jurisdictions.

Fostering a security-centric culture

Customers and third parties

Overview and governance

Educating employees

Our customer security education service includes
training frontline bankers to recognise newscams, helping them to engage with and support
customers. We also directly enable customers
through educational resources and regular alerts
in our digital and branch channels. The education
program includes events and seminars, webinars,
tips, guides and continued alerts in digital banking
channels, social media and via frontline to drive
awareness of increasing scams. In particular, we
aim to educate customers about how to identify
and protect themselves from bank impersonation.

Environmental sustainability

Governance processes and education at all levelsof the organisation are essential to fostering asecurity-centric culture within the organisation. Thishas helped ANZ to respond to the rapidly changing
threat environment, reducing the likelihood of an
attack, and maintaining our security risk position.
To help staff understand their responsibilities, annual
mandatory learning focused on cyber security iscompleted by all staff and contractors, including
targeted security training for developers andengineers. For more information about mandatory
learning see page 46.
The targeted education program has been
extended to include a network of 634 cybersecurity ambassadors from across the organisationand more than 50 divisional representatives who
help embed security across the organisation. These
representatives share security education resources topromote and support improved security behaviours
across ANZ, including with customers, which has led
to a 36.2% increase in the internal index we use tomeasure security behaviours. For more information
about employee learning and development see
page 64.
This year, we have continued to evolve ourcomprehensive phishing resilience and capability
program, including regular simulated exercises
and phishing drills to educate all staff about how
to detect suspicious emails aiming to phish for
information. Drills and exercises are increasing inboth frequency and complexity, informed by threat
intelligence to enable readiness against growing
sophistication. This year, 11 drills were delivered –an increase from seven in 2022.

We ran a campaign in June to align with the endof financial year and tax time which resulted in
more than 5,600 customers opening security
educational material on the ANZ Security Centre
website, followed by a further increase of around250% following bank impersonation alerts.

Housing
Financial wellbeing
Customer experience

Information security
Scams
Cyber security
Financial crime
Data protection and privacy
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes

Third parties managing sensitive ANZ information
are expected to meet requirements to seek toprotect information and management systems.
We have a robust management process and mature
security testing program in place to comply with
the Australian Prudential Regulation Authority (APRA)CPS 234 Information Security.

1. The level of security risk to which a system is exposed. A system with a strong security posture is exposed to a low level of security risk while a system with a weak security posture is exposed to a high level of security risk (The Australian Signals Directorate’s Australian Cyber Security Centre).

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ANZ 2023 ESG Supplement

FINANCIAL
CRIME
We perform risk-based due diligence on customers
and their activities in proportion to the ML/TF risk
posed. We seek to identify unusual or suspicioustransactions, activities and/or behaviours througha combination of transaction monitoring and othermethods of observation, reporting suspicious
activity to appropriate authorities.

Sanctions compliance
Our sanctions compliance program guides ourGroup-wide approach to meeting our sanctions
obligations. Sanctions risks are assessed to identify,
manage and mitigate the potential for breaches.

We maintain a strong focus on financial
crime data collection, monitoring andscreening with ongoing upgrades acrossAnti-Money Laundering/Counter-Terrorism
Financing (AML/CTF), sanctions and fraud
platforms. These upgrades also improve ourability to collaborate with external parties
to fight financial crime.
Our employees and contractors undertake
mandatory annual training to ensure they
understand their role in preventing financial
crime. This year, 96% of employees andcontractors completed the training (for more
information about our Code of Conduct see
page 46). Additional training is tailored forspecific roles, including senior management
and Board.

Fraud
Our Fraud Policy sets the standards for theprevention, detection, investigation and reportingof fraud. Processes to support the policy include theongoing assessment and management of fraud risk,
the use of advanced analytical and detective systems
to monitor and identify suspected fraud, and theprinciples and responsibilities for investigating
both internal and external incidents.

Anti-Money Laundering andCounter-Terrorism Financing
Our AML/CTF Program guides our approach todetecting and deterring money laundering andterrorism financing (ML/TF). Risk assessments arecompleted at both an enterprise and country levelto identify, manage and mitigate ML/TF risk acrossthe organisation.

Customer relationships and activities that pose ahigher sanctions risk are subject to enhanced due
diligence measures, monitoring and approval. We
are enhancing our monitoring of transactions andstrengthening customer due diligence processes
to seek to continue to support transactions within
our risk appetite and in a manner compliant withapplicable regulatory obligations.
Details of ANZ’s Financial Crime policies including
sanctions, AML/CTF, anti-bribery and anti-corruption,and fraud are available on anz.com.

Abuse in transactions
ANZ is a founding member of the AustralianTransaction Reports and Analysis Centre (AUSTRAC)
led Fintel Alliance, formed in 2017 to strengthen thefinance industry’s capability to tackle serious crimes
and to better support police investigations.
The Fintel Alliance pays particular attention to abuseand domestic violence threats facilitated throughfinancial transactions. ANZ has measures in place

to help block transactions where abusive language
is detected in transaction descriptions. Our Financial
Crime team monitors for indicators of abuse,including potential family violence. When these
indicators are identified, they are investigated by aspecialist team and, where appropriate, referred to
AUSTRAC and law enforcement. ANZ referrals have
led to arrests and prosecutions in some instances.

Overview and governance

Details are also escalated to ANZ’s Customer
Advocate team for further action, which can
include referring customers to support services.
If perpetrators are identified, warnings are issued
to cease using ANZ platforms for inappropriate
behaviour, and controls can be implemented torestrict banking services or close accounts if thisbehaviour continues. Where the Financial Crime
or Customer Advocate teams believe there is apotential imminent threat to life, the matter is
escalated to law enforcement and AUSTRAC for
immediate attention. ANZ also proactively contacts
customers and escalates matters to local police
authorities to conduct welfare checks on customers
where potential self-harm threats are identified.

Information security

A recent example involved identification of acustomer sending abusive messages via financialtransactions threatening violence. The perpetrator
was arrested and charged for breaching an
Apprehended Domestic Violence Order (ADVO)
as a direct result of ANZ’s reporting.

For more information about how ANZ is supporting
customers in need of extra care refer to pages 37-38.

Environmental sustainability
Housing
Financial wellbeing
Customer experience

Scams
Cyber security
Financial crime
Data protection and privacy
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

DATA PROTECTION
AND PRIVACY

Assessing applicable data protection
and privacy risks is a key aspect of
our operations. It is also critical tomaintaining the trust of those whoshare their personal information
with us.

Overview and governanceWe continue to use andrefine targeted training
and events for staff andcustomers to improveawareness of good dataprotection and privacy
practices.

Our data event management processes are focusedon potential and actual data breaches, and how
we can rapidly respond to, and mitigate, the risk ofharm to individuals. Data event root cause analysis,
post-incident reviews and up-to-date threat
intelligence are used in combination to ensure
continuous improvement and fine tuning of ourapproach to data protection, privacy compliance,
incident management and education for individuals.
This year, we have continued to invest in a variety
of initiatives and measures to seek to ensure weappropriately protect and respect the privacy ofthe various individuals whose personal informationis handled across our business – includinginternationally – or on our behalf. These individuals
include customers, customer representatives,
staff, shareholders and a range of third parties.
A key part of this approach is seeking to ensurecompliance with applicable privacy and dataprotection laws and related regulatory requirements.
We are continuing to respond to significant, ongoingreform and refinement of privacy laws in numerous
jurisdictions including in Indonesia, China andVietnam. In Australia, we participated in the ongoing
consultation on privacy reform to seek to ensure
individuals’ privacy rights are appropriately protected
while enabling ANZ to run its business and efficiently
and safely deliver financial products and services.

Environmental sustainability
Housing
Financial wellbeing
Customer experience

Information security
Scams
Cyber security
Financial crime
Data protection and privacy
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion

As unauthorised access to personal information
is often enabling of, or central to, cyber incidents
and financial crime, many aspects of our approachto protecting personal information rely on
multidisciplinary teams and collaboration acrossrelevant stakeholders. This is reflected in the various
processes, procedures and response mechanisms
we have developed for responding to incidents
which do or may involve personal information.
Additionally, with a number of recent, large-scaleand high-profile cyberattacks on other companies
in Australia, we have assisted a number of ourcustomers who have raised concerns with us about
the potential impact of those cyberattacks on the
security of the services they receive from ANZ –notwithstanding that our systems, services ordata were not subject to the attacks.

We continue to use and refine targeted training andevents for staff and customers to improve awarenessof good data protection and privacy practices suchas the ANZ Privacy Week campaign and carefully
crafted customer alerts and communications.
This year, ANZ notified three data breaches to the
Office of the Australian Information Commissioner(OAIC) and impacted individuals under the Notifiable
Data Breach Scheme (zero in 2022). One of thesebreaches occurred as a result of a cyberattack ona third-party service provider to ANZ. The othertwo breaches involved discrete data sets relating
to two individual ANZ customers.

Current updates and information
including our privacy policy are available
at anz.com.au/privacy/centre/policy/

Explanatory notes
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ANZ 2023 ESG Supplement

IMPROVING CONDUCTAND CULTURE
Code of conduct

Our Code of Conduct sets expected
standards of behaviour and guides
us in applying our values.

This includes:be ethical and professional;
act with integrity;protect competition and thecompetitive process;treat everyone with dignity and respect;manage conflicts of interest;

protect privacy and confidentiality; andcall out unacceptable behaviourand stand up for what is right.

Our Code requires all employees and contractors
to comply with the law as well as our policies andprocedures. It is supported by a suite of policies
reviewed regularly to reflect legislative changes
and remain fit for purpose.1 We expect our partners(such as suppliers, service providers and otherrelevant third parties) to adopt and maintainconduct and ethics principles similar to thoseoutlined in the Code and supporting policies.
All employees and contractors are required tocomplete training courses within two months ofcommencing with ANZ and then on a regular basis2.
Courses include training on ‘Living the Code’, ‘Equal
Opportunity Essentials’ (includes anti-discriminationand sexual harassment), ‘Financial Crime Essentials’(including Anti-Money Laundering), ‘Operational
Risk’, ‘Security Essentials’ (includes informationand cyber security) and ‘Privacy, Competition
Law and Consumer Protection’.
The Living the Code course reinforces theimportance of our values and seeks a declarationof compliance with the Code. By completing thecourse, participants are confirming they understandthe Code’s principles and have complied with themover the last 12 months.
This year, 99.6% of our employees and contractors
completed their mandatory training courses.
Individuals who fail to complete this training
or other mandatory learning requirements within
30 days of the due date are (in the absence of
genuinely exceptional circumstances) ineligible
for any fixed remuneration increase or variable
remuneration as part of our annual Performanceand Remuneration Review.

Our Group Performance Framework includes anannual assessment for two distinct components:‘how’ employees have demonstrated our
behaviours and ‘what’ outcomes they have achieved.
Performance management guides and othermaterials are updated regularly and made available
to all employees on our intranet. This guidance
includes articulated impacts to performance andremuneration outcomes in our annual Performanceand Remuneration Review for employees who
do not meet expected standards of performanceor behaviour.

The Whistleblower Program is one of manychannels encouraging and empowering ourpeople to speak up and raise misconduct concerns,
freely and without fear of reprisal. The policy andprogram provide strong protections for individuals
who disclose misconduct and play a pivotal rolein maintaining the integrity of the organisation.
Information received through the Whistleblower
channel helps us identify misconduct that may
not otherwise be detected and to act on issues
which do not support our purpose, values andexpected behaviours.

This year, there were 1,330 employee relations cases
involving alleged breaches of our Code, with 501
resulting in a formal consequence or the employee
leaving ANZ (down from 518 in 2022). Breaches
ranged from compliance/procedural breaches(23.7%) through to general unacceptable behaviour(31.7%), email/systems misuse (9.2%), attendanceissues (20.8%), fraud/theft (5.4%), conflict of interest(5.6%), and breaches of our Equal Opportunity,
Bullying and Harassment Policy (3.6%). Outcomes
following investigations of breaches this year
included 314 warnings, 100 terminations and87 employees otherwise leaving ANZ.

There were 170 new reports made through theWhistleblower Program this year (up from 142
reports in 2022) demonstrating a continued
willingness of individuals speaking up to raisemisconduct concerns.

Encouraging whistleblowers to speak up
The Whistleblower Policy and Program is a key
component of our strong and effective conduct
risk management and corporate governanceframework. We apply Australian whistleblower
regulations across the markets in which we operate.
Additional jurisdiction-specific regulations imposing
higher or contrary obligations are captured inschedules within the Policy.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights

Our focus this year was on continuing tobuild awareness and confidence in the
program, strengthening governance andrisk management frameworks, and the timely
management of whistleblower matters.
In addition to initiatives run throughout the year, aninternational awareness campaign was run to markWorld Whistleblower Day in June. This included aconversation guide designed to support people
leaders with team discussions on the importanceof speaking up and promotion of the program.
A Group-wide employee survey indicated continued
high levels of awareness and confidence in the
program, reporter protections, and appropriate
handling of whistleblower reports, with year-on-year

1. A copy of our Code of Conduct and the full list of policies are available at anz.com/corporategovernance. 2. Due to migration to a new HR technology platform in 2023, some employees and contractors completed training courses with an extension to this timeframe. For more information see page 61.

Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

increases in awareness and confidence levels
reported across the organisation. Survey insights
enabled opportunities to build ongoing awarenessand trust in the program and process and to tailor
communication initiatives. In addition, our Group
Integrity team delivered 210 awareness sessions
to business units (195 in 2022).

All employees and contingent workers are
required to undertake annual mandatory learningon their obligations and responsibilities under
the Whistleblower Policy. Role-specific training
for whistleblower investigators, Whistleblower
Protection Officers, and eligible recipients ofwhistleblower reports (including Executive

Committee members and new Board members) was
delivered to ensure relevant employees understandobligations under applicable laws and how toappropriately handle and investigate reports. In
2023, the program ran awareness sessions with‘speak up’ advocates across the organisation onwhistleblower protections. For more information
about mandatory learning see page 46.

Whistleblower investigation outcomes
In 2023, the Whistleblower Program received reports
covering a broad range of allegations including
potential Code of Conduct and other policy
breaches; bullying, harassment, and discrimination;
conflicts of interest; fraud (internal and external);
and privacy and confidentiality breaches.
Of investigated reports, 73% led to recommended
actions (76% in 2022), including formal warnings
and termination of employment. This is a strong
indication the Whistleblower Program is operating
as an effective channel to raise misconduct concernsand drive action in response to staff ‘speaking up’.
In addition to staff disciplinary actions, substantiatedand unsubstantiated matters resulted in otherrecommendations for management including
policy, process, and procedures review andremediation; coaching and informal counselling;
improved oversight; additional training; andcommunications reinforcing expected standardsof behaviour.

Anti-Bribery and Anti-Corruption
We have zero tolerance for bribery and corruption
in our business dealings. Our Anti-Bribery andAnti-Corruption (ABAC) Business Integrity Policy
sets out the principles and conduct provisions which
apply to employees, customers, and third parties.
Image: ANZ Centre, Melbourne.

This includes:

Overview and governance
Environmental sustainability

knowing who we are doing business with;doing business with integrity;transparency in our relationships; andensuring employee awareness ofwhat constitutes good conduct.
The policy is supported by operating standards
and tools that help us to be transparent in
disclosing financial and ownership interests
and to identify social and governance risks
in our third-party relationships.
ABAC training is mandatory for all employees
and contractors, and regular risk assessments areundertaken to identify and manage bribery andcorruption risks. For more information aboutmandatory learning see page 46 and for more
information about risk assessments see page 48.
We have a dedicated ABAC team focused on
responding to growing regulation and social
expectations to combat bribery and corruption.
Enhancement has been made to our third-party
due diligence program to:• improve visibility of, and transparency in, ourdealings with our vendors and suppliers; and• empower employees through ongoing learning
to identify high-risk social and governance factors– such as jurisdiction and industry – so enhanced
due diligence can be conducted.

Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

OUR SHAREDCULTURE AT ANZ
We bring our culture to life throughour behaviours which provide acommon anchor for everyone at ANZ:
Our new behaviours are:Create opportunities by bringing in
the best ideas from inside and outside
ANZ to create long-term value for ourcustomers and the bank;Measuring our culture
We measure culture by reviewing, understanding
and taking action to address the themes identified
through the following key metrics:• Annual risk culture maturity assessments
governed by our Operational Risk Executive
Committee and Board Risk Committee• Culture reviews conducted by Internal Audit• Data collected through our My Voice employee
engagement survey and our new 360° behaviourassessment tool

Deliver what matters by executing
well on the things that matter most; andSucceed together by engaging
the right people, listening to andchallenging each other.
This year, we have continued to embed our
behaviours across the organisation. We invested
in uplifting capability to help leaders drive culture,and employees to create habits to demonstrate
our behaviours consistently. We launched two
multi-level leadership programs with dedicatedmodules on culture as well as a new Leadership
360° assessment tool which supports leaders inseeking behaviour-framed feedback and insights.
You can find more about how we developed
leaders and their teams on page 64.

More information about our survey results
and performance against external benchmarks
is available on page 62.

Annual risk culture assessments
This year we continued to strengthen our risk
culture with an improvement in Risk Culture Survey
outcomes across the Group, particularly in recognition
and reward for effective risk management.
Risk culture is measured annually to support
the Board to form a view of ANZ’s risk culture byproviding insight into how well actions aimed
at promoting the importance, understanding
and awareness of risk culture have progressed.
Risk culture assessments consider our people’s
perceptions of risk management behaviours andpractices, risk and business outcomes, with a focus
on how risk is considered in our decision-making.
Outcomes of the assessments are a considerationin annual Performance and Remuneration Reviews.

Results of these assessments are reported to theBoard and used by executives, senior leaders andpeople leaders to develop Risk Culture Action Plans.
To support leaders and employees in taking action,a Risk Culture Toolkit continues to be promoted toraise awareness and support actions to embed ourtarget risk culture. This includes ethical scenariosthat support embedding our target risk culture
behaviours; risk culture self-assessment templates forpeople leaders; and training materials for leaders toraise awareness of risk culture in a meaningful way.

Overview and governance

Culture reviews

Improving conduct and culture

This year, Internal Audit completed eight culture
reviews (covering nearly 8,000 employees across fivedivisions/functions) focused on identifying themes,
underlying factors, root causes and actions to drive
sustainable change toward the bank’s cultural
framework – our behaviours, underpinned by ourvalues and the Code of Conduct. Each culture review
requires the business area to develop an action
plan which is monitored, evidenced and reassessed
where appropriate to understand cultural shift overtime. This year, one of these reassessments was also
completed to analyse progress on identified issues.

Social and environmental
risk management

The reviews highlighted the growing Group-wide
focus on further strengthening our culture andembedding our behaviours, enabled by employees
doing the right thing to achieve our purpose andstrategy. The Internal Audit culture reviews aredesigned to support:• the Board and management by providing
independent cultural insight; and• the Board in meeting regulatory requirements
such as the Banking Executive Accountability
Regime (BEAR) and APRA Prudential Standard
CPS 220 Risk Management.

Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture

Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion

This year, we launched
two multi-level leadershipprograms with dedicatedmodules on culture as well
as a new Leadership 360°
assessment tool which
supports leaders in seeking
behaviour-framed feedback
and insights.

Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

SOCIAL AND ENVIRONMENTALRISK MANAGEMENT

We regularly review ourlending practices andpolicies, taking into accountcurrent and emerging socialand environmental issues.

These potential issues which, through ourlending to customers, could result in risks
to the business are also considered by our
executive Ethics and Responsible BusinessCommittee (ERBC) and Board Ethics,
Environment, Social and GovernanceCommittee (EESG). See pages 8-9 for more
information about our ESG governance.
We seek to assess and manage the impacts of
our lending decisions through the applicationof our Social and Environmental Risk Policy(the Policy) and accompanying Requirements
including for ‘sensitive sectors’:
ENERGYEXTRACTIVE INDUSTRIESFORESTRY AND FORESTSHYDROELECTRIC POWER

MILITARY EQUIPMENT

WATER

1. Transactions involving our Institutional and Corporate customers.

The Policy outlines the social and environmental
factors to be taken into account by our bankers
when considering large business1 transactions.
It incorporates our approach to human rights,
including our ‘zero tolerance’ for land acquisition
and involuntary resettlement that we consider
improper, as well as labour rights issues such as
modern slavery.
We review the Policy at least every three years,
with oversight from our ERBC to ensure it remains
fit-for-purpose. The review takes into accountchanges to customer practices, international
standards, emerging social and environmental
issues, and stakeholder feedback.
In 2023, we improved our credit risk assessment
process via our Online Customer Profile platformby integrating our Social and Environmental Risk
screening tool for large business customers. This
allows us to improve our identification of financial
and non-financial risks (including reputational risk)
we may face through our customer activities,
both at an individual customer level and across
our portfolio. We intend to extend the applicationof the screening tool to some large businesscustomers who do not borrow money from us
but use other products such as payment and cash
management services. This screening is in addition
to other screening such as Anti-Money Laundering,Anti-Bribery and Anti-Corruption (ABAC) risk
assessments. For more information about ourapproach to ABAC see page 47.
Educating employees on our policies and standards
and how they are applied in practice is important
for the effective management of the social andenvironmental risks associated with lending to ourlarge business customers. Our training focuses on

the Policy, Requirements for 'sensitive sectors'
and our approach to human rights. This training
is mandatory for new employees authorised tomake credit decisions relating to large businesscustomer transactions.

Overview and governance

Animal welfare principles

Customer experience

ANZ is a proud supporter of Australian agriculture,with over 180 years of history in providing banking
services to the sector. We believe good animal
welfare standards in Australian agriculture are
critical to the industry’s sustainability and are
an important part of our ESG focus. Our Animal
Welfare Principles were developed in line with
ANZ’s approach to managing lending risk – noting
animal welfare practices can impact the risk profile
of a business. The Principles are available atanz.com.au/about-us/esg/policies-practices.
Our agribusiness team in Australia developed online
training to increase staff awareness of our animal
welfare principles and inform staff of the appropriate
channels within our business to seek clarificationand support. These modules are available to all ANZ
employees and contractors and are recommended
for all regional business bankers. This year, nearly
200 employees or contractors have undertaken thelearning pathway, with around 15% completing themore detailed learning and assessment process.

Environmental sustainability
Housing
Financial wellbeing

Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

Due diligence
Prior to entering into a relationship with a large
business customer or entering into any newmaterial transaction, bankers are expected toconsider the customer's management of its
material social and environmental issues and any
associated potential impacts. Bankers must also
consider the customer’s history of, and approach todealing with, any potential (or historical) impacts.
Under our credit policy, we review our large
business customers at least annually. This includes
the consideration of issues specified in our Socialand Environmental Risk Policy and, where relevant,sensitive sector Requirements. We expect ourcustomers in all sectors to implement appropriate
stakeholder engagement strategies and plans, andwe have included this consideration in the Socialand Environmental Risk screening tool.
We seek to apply enhanced due diligence anddecision-making processes to customers andtransactions in the energy sector via our Energy
Transactions Escalation Process, which includes
reviewing alignment with ANZ’s Climate Change
Commitment. In this context, the energy sector
includes thermal coal, and oil and gas companies.
We have also extended the use of our Climate
Change Risk Assessment methodology so thatby the end of 2024, it will have been used tosupport our engagement with the revised listof our 100 largest emitting business customers.
For further information on our enhanced due
diligence process, customer engagement program,and Net-Zero Banking Alliance (NZBA) aligned
sectoral pathways and targets see our Climaterelated Financial Disclosures available atanz.com/esgreport.

We also seek to undertake enhanced humanrights due diligence for large business customers
operating in higher-risk geographies and sectors.
By undertaking enhanced due diligence, we seek
to better understand our customers’ approachto human rights (including modern slavery), toassess the risk implications, and avoid or mitigate
potential impacts.
Where a customer’s practices may not be
consistent with our policies, we work with themto understand the circumstances and, where
necessary, encourage them to identify specificand time-bound improvement plans. If customers
are unwilling to adapt their practices in an
appropriate timeframe, we may decline further
financing or exit the relationship. We monitor
certain social and environmental risks of our large
business customers each month through reports
from our ‘Reputation Risk Radar’ service. We also
rely on regular dialogue between relationshipmanagers and their customers to alert us to issues.
Notable incidents and allegations are referred,
where appropriate, to our risk management
forums in which social, environmental andcredit risks are considered.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

51

ANZ 2023 ESG Supplement

EQUATORPRINCIPLESThe Equator Principles is a risk management
framework for determining, assessing andmanaging social and environmental risks inlarge infrastructure and industrial projects.
As a member of the Equator Principles
Association since 2006, we seek to ensure
the projects we finance and advise on
are developed in a manner that is socially
responsible and reflect sound environmental
management practices.
We commit to implementing the Equator Principles
through our internal environmental and social
policies, procedures and standards for financing
projects. We will not provide Project Finance,
Project-Related Corporate Loans to Projects or
Project-Related Refinance and Project-Related
Acquisition Finance to projects which do not comply
with the relevant Equator Principles requirements1.
These types of finance we refer to collectively as“Project Finance”.
We use the Equator Principles as a minimum
standard for due diligence and monitoring tosupport responsible decision-making for Project
Finance. The Equator Principles complement oursensitive sector Requirements and our Social andEnvironmental Risk Policy which also apply to
Project Finance transactions. For more information
about these topics refer to pages 49-50.
If we determine that the Equator Principles apply,
we conduct initial due diligence to inform ourview of the likely Equator Principles rating. This due
diligence includes reviewing any Environmental

Case study

Impact Assessment the customer provided aspart of the project approval process, as well as
considering the project’s alignment with ourSocial and Environmental Risk Policy and sensitive
sector Requirements.
We will engage a third-party expert to preparea social and environmental due diligence report(EP DD) where our initial due diligence indicatesa likely Category A2 or Category B2 rating under theEquator Principles. The EP DD will assess the project’s
compliance with the Equator Principles and typicallyconsiders the following issues:• Social and environmental risks arising fromthe project• Customer capacity to manage socialand environmental issues• How an Environmental Impact Assessment (if any)
will be implemented through the company’s
Environmental Management System• The level of community concern regarding
potential impacts of the project, for example onwater or land, and effectiveness of the company’s
stakeholder engagement in response
Where ANZ approves financing following the EP DD,
any issues identified in the EP DD will commonly
be addressed as conditions in the Project Financeloan documentation.

Information on this year’s Project Finance
Advisory Services and transactions is available
in our 2023 ESG Data and Frameworks packavailable at anz.com/esgreport.

1. Source: Equator Principles (EP4) July 2020. 2. Category A: Projects with potential significant adverse social or environmental impacts that are
diverse, irreversible or unprecedented. Category B: Projects with potential limited adverse social and environmental impacts that are few in number,generally site-specific, largely reversible and readily addressed through mitigation measures. Category C: Projects with minimal or no social orenvironmental impacts.

Solar farm in eastern Australia
In 2023 ANZ was invited to participate in a solar
farm project on a rural site in eastern Australia.
ANZ undertook initial due diligence anddetermined the project would require an EP DD
to fully examine the potential environmental
and social risks associated with the project.
The independent adviser assessed the impacts
and appropriate mitigants, and recommended

Solar farm in southern Australia
In 2023 ANZ participated in another solar projectin southern Australia, a reflection of the changing
dynamics in the power sector.
ANZ determined this transaction required an
EP DD.
An independent technical adviser was engaged
to prepare the EP DD and recommended the
project be categorised as B2 under the Equator
Principles, supporting ANZ’s initial assessment.

the project be categorised as a B2 under theEquator Principles. This means there were some
limited adverse environmental and social risks.
As a consequence, ANZ was able to approve
the financing on the condition the borrower
would meet our requirements and accept
regular monitoring throughout construction
to ensure impacts were being mitigated inaccordance with the EP DD.

In conducting our initial due diligence on the
project, including of its Environmental Impact
Assessment, we categorised the project as a C2
under the Equator Principles, meaning it had
low environmental and social risk.

Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Given the location of the project, physicalclimate change risk was identified as aconsideration. Potential increases in temperatureand rainfall density were highlighted as risks andthe proponent was able to demonstrate design
improvements to mitigate these risks.
ANZ subsequently approved the financing on
the basis the customer would accept regularmonitoring and continue to meet relevant
environmental and social laws and permit
conditions, as well as actively manage any
new issues that may arise.

EV battery manufacturer in Europe
In 2023 ANZ provided Project Finance for thedevelopment of an EV battery manufacturing
plant in Europe.

Overview and governanceAs the project was located in a “designated country”
as defined in the Equator Principles, we wereable to rely on the local environmental and social
approval and permits by government authorities
to ensure appropriate standards were being met.
Financing was approved on the conditions
all regulatory requirements continued tobe met and compliance with them wasmonitored regularly.

Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

52

ANZ 2023 ESG Supplement

MANAGING ESG RISKS ANDOPPORTUNITIES IN OUR SUPPLY CHAIN

In 2023, ANZ spent $4.9 billion
with suppliers procuring goods
and services across our 29 operating
markets. The majority (90%) was
spent in Australia and New Zealand.

Contracted suppliers, including subcontracted
suppliers, are screened as part of Group
Procurement’s ongoing supplier due diligence using
a third-party tool to assess performance against
28 ESG issues across the topics of environmental
footprint, community relations, employee relations
and corporate governance. In 2023, we undertooknearly 5,300 checks which included our top 100
suppliers, by spend. These checks identified potential
issues in 12 instances. We requested further detailfrom the suppliers to determine whether they had
adequate measures in place to resolve the identified
issue/s. We worked with these suppliers tounderstand the issue/s and mitigating steps.
Our Supplier Code of Practice (SCOP) outlines our
minimum requirements for suppliers including in
relation to human rights and workplace relations,occupational health and safety, ethical businesspractices, information management andconfidentiality, accessibility, environmental
management and supplier diversity.
We endeavour to include SCOP clauses in new
and renewed supplier contracts with 85% of alllive supply contracts including the SCOP clause.
Since 2021 our usual practice is to include separate
contractual clauses covering human rights andmodern slavery in ANZ standard contract templates
and where we are using the supplier’s standard
contract. For more information about our approachto human rights see pages 54-55.
We endeavour to ensure suppliers conduct theirbusiness in accordance with our expectations.
While not a contractual requirement, we seek anannual attestation of adherence to the SCOP frommajor suppliers1 managed under our Operational
Contract Management Framework (OCMF).

In 2023, 79% of suppliers provided an attestationof adherence to our SCOP. We also seek attestations
from a sample of suppliers each year in countries
such as India, China, the Philippines, Vietnam,
Papua New Guinea and Pacific nations. We continue
to encourage suppliers to attest to the SCOP.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience

Working with our suppliers
As a signatory to the Business Council of Australia’s
Supplier Payment Code, we are committed to
paying Australian small business suppliers within amaximum of 30 days of receiving a correct invoiceor otherwise in accordance with the Code, unlessthe contract stipulates a shorter term. However,
our aim is to pay small businesses and all Aboriginal
and Torres Strait Islander businesses regardless of
size as promptly as possible upon approval of theinvoice. On average, payment to small business ismade within approximately 14 days of receipt of
the invoice. In the latest Australian Government’s
Payment Term Reporting Scheme (June 2023)
we reported payment to 91% of all small businesssupplier invoices within 30 days.
In New Zealand, we support the New Zealand
Banking Association’s initiative established to assist
small-to-medium businesses during COVID-19.
To date, we have processed approximately
78% of payments (excluding purchasing cardtransactions) within the 10 business days target,with average payment made within approximately
8 days of receipt of a valid invoice.

1. Supplier relationships whereby those contracted services are deemed to be of critical importance and/or high risk to ANZ, or by nature of the goods and services, require an active management plan.

Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand

In 2023, we undertooknearly 5,300 checks which
included our top 100
suppliers, by spend. Thesechecks identified potential
issues in 12 instances.

Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

53

ANZ 2023 ESG Supplement

Case study

Supporting supplier diversity
We are a member of Social Traders, anorganisation helping to create jobs for
disadvantaged Australians by linking businessand government to social enterprises. This year,
we spent $7.1 million1 with social enterprises.
In New Zealand, we are a member of Ākina, abuyer group to access a wide range of certifiedsocial enterprise suppliers. We spent NZ$144,000
with social enterprises in 2023 and seek to influence
our suppliers to also use social enterprises in theirown supply chain.
This year, we also joined WEConnect International,
a global organisation seeking to promote theuse of women-owned businesses in corporate
supply chains.

Procurement with Indigenous
businesses in Australia
We spent $11.7 million with 46 Indigenous
businesses in Australia this year. We are amember of both Supply Nation and Kinaway(the Victorian Indigenous Chamber ofCommerce) and were proud to be recognisedwith their Corporate Member of the Yearaward in 2023.
As part of our Reconciliation Action Plan (RAP),
we have an objective to spend $6 million with
Aboriginal and Torres Strait Islander-owned
businesses. To-date, we have spent $24.4 million
towards this objective. For more information
about our RAP refer to page 56.

1. Includes sponsorship spend.

Overview and governance

Enhancing security
through opening doors

Environmental sustainability
Housing

In 2022 ANZ signed a large multi-year software
deal with Supply Nation certified company
Baidam Solutions. Baidam distributes 52%
of its profits back to community outcomes
for First Nations people, including creating
employment opportunities in science,technology, engineering and mathematics(STEM) roles through Indigenous student
sponsorships, helping create technology
role models for young Indigenous kids.

Financial wellbeing

This includes two endowed scholarships for
Indigenous STEM students to the Australian
National University in Canberra and The
University of Queensland. Baidam also
recently opened a co-designed Indigenous
staffed and managed Security Operations
Centre in central Brisbane.

Managing ESG risks and opportunities
in our supply chain

According to Baidam Solutions GroupCEO and co-founder Jack Reis, theorganisation wants to allow for more
Indigenous involvement in the national
technology community.
“We are facing a very diverse threat landscapein the cyber security world. We want toharness the critical and problem-solving
thought processes of a diverse workforce,
including First Nations people,” he said. “Not
only does that strengthen our defence against
cyber threats, it brings different thinking thatwill solve problems in a different way. That is
the great benefit of diversity in this field.”

Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management

Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

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ANZ 2023 ESG Supplement

OUR APPROACH
TO HUMAN RIGHTS
Overview and governance

Our Human Rights Statement (Statement) outlines our approach to respecting human rights,
and our Human Rights Grievance Mechanism (Mechanism) provides a process for people whose
human rights have allegedly been impacted by an ANZ Institutional or Corporate business lending
customer, to be raised with ANZ.
Our Human Rights Statement
ANZ seeks to support and respect the humanrights of our employees, customers and thepeople in our communities. We expect the samecommitment to human rights from everyone whoworks for, or with, us including our employees andpeople with whom we have business relationships1.
Our Statement is informed by the United Nations
Guiding Principles on Business and Human Rights(UNGPs) and includes:• No tolerance for retaliation against individuals,
communities or human rights defenders;• Reference to our Climate Change Commitment,
which refers to the human rights impacts of
the net zero transition;• Support for an open civic space;• Our approach when domestic laws conflictwith international human rights standards; and• Our process when a customer’s human rights
practices are inconsistent with our expectations.

Our approach is consistent with our policies
and other relevant documents available atanz.com including:• Anti-Bribery and Anti-Corruption Policy:
outlining standards of conduct for ANZ, ouremployees and our contingent workers, andappropriate due diligence on third parties.
• Land Acquisition Position Statement:
outlining our support for customers who are
implementing appropriate standards for landacquisition and resettlement, including engaging
their engagement with the community andother key stakeholders.
• Approach to Accessibility and Financial
Inclusion: making our products, services,
workplace and culture supportive of people
with disability and improving outcomes for
those at risk of financial exclusion.
• Climate Change Commitment: responding
to the social, environmental and economic
challenges of climate change.
• Diversity and Inclusion Policy: committing to
strive to a workplace that reflects the communities
in which we operate and provides opportunities
to underrepresented groups.

1. ‘Business relationships’ means business customers, suppliers and partners.

• Equal Opportunity, Bullying andHarassment Policy: committing to strive
to a workplace free from discrimination,harassment, bullying and victimisation.
• Modern Slavery Statement: reporting how
we identify, assess and manage modern slavery
risks including forced labour, child labour andhuman trafficking.
• Reconciliation Action Plan: stating ourcommitment to social and economic participationof Aboriginal and Torres Strait Islander peoples.

Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia• Social and Environmental Risk Policy
and Screening Tool: outlining our social andenvironmental standards and due diligencefor large business customers of ANZ.

Leading Indigenous transformationalchange in Aotearoa New Zealand• Supplier Code of Practice: outlining ourrequirements for suppliers including in relation
to labour rights, workplace health and safety
and freedom of association.

Managing our industry associations
and tax• Complaints processes: providing communication
channels to raise complaints including our Human
Rights Grievance Mechanism.

Our approach to accessibility
and inclusion

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

55

ANZ 2023 ESG Supplement

ANZ Human Rights Grievance Mechanism

Material risks and key exposures

Salient human rights

Overview and governanceWe support the UNGPs, including via access to
our Mechanism. This is available to people andcommunities who believe their human rights
have been impacted by ANZ’s Institutional or
Corporate lending customers.

ANZ takes a Group-wide approach to managing
modern slavery risks in its operations andsupply chain.

We have identified our salient human rights issues
according to where we could potentially cause orcontribute to the most significant negative humanrights impacts. These include:

Environmental sustainability

For a grievance to be accepted into the
Mechanism, the customer must consent toboth ANZ disclosing the existence of a current
or former lending relationship to the Affected
People and to participating in the Mechanism.
The Mechanism is designed to promoteresponsible business conduct, under aframework through which:• efforts can be made to resolve grievances; and• recommendations aimed at strengthening
our due diligence processes can be provided.

ANZ considers that our policies and tools help
to mitigate modern slavery risk and support ourability to seek to influence changes in practice andbehaviours at a stakeholder level. Modern slavery
risk, at a group level, is assessed for three key
workstreams and for our people as follows:• Supply chain – higher risk due to volume andbreadth of goods and services procured, andour international banking presence in a numberof higher risk countries;• Customers – higher risk due to both some ofthe sectors and some of countries in which we,and our customers, operate;

This year we received one grievance to the
Mechanism. At the date of this report, thegrievance has not been formally accepted into
the Mechanism. Consideration of the grievanceis paused whilst a parallel process is underway.

• Investments – moderate to lower risk forinvestments made by our third-party fundmanagers and New Zealand fund managers3
due to risk-based drivers including our overall
investment philosophy and selection of fundmanagers; andThe Grievance Mechanism frameworkand our grievance reporting is available atanz.com.au/about-us/esg/fair-responsiblebanking/human-rights/.

• People – lower risk due to the skills required
for employment, visibility of employment
arrangements, and the location of most of
our employees4.

Modern slavery
Modern slavery1 is estimated to affect 50 million
people worldwide, with one in four victims being
children2. An effective response to modern slavery
requires the combined effort of government,
law enforcement, non-government organisations(NGOs) and business.

This assessment enables us to prioritise programsof work that will have the most effective impact,
as a Group, to respond to modern slavery risk.
We comply with both the Australian CommonwealthModern Slavery Act 2018 and the United Kingdom’sModern Slavery Act 2015. Further detail on our
approach to modern slavery is provided in our2023 Modern Slavery Statement, to be released later this year at anz.com/esgreport.

• Safety and security of our people• Labour rights, including modern slavery• Privacy and consumer protection• Corruption and bribery• Environmental protection• Land access and rights
Although we cannot control or avoid all ofthese, we seek to reduce their likelihood andrespond appropriately.

Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights

You can trace our approach tohuman rights throughout thisreport using this symbol

Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes

1. Serious exploitation of people through threats, coercion or
deception, which are used to exploit and undermine victims or
deprive them of their freedom – Commonwealth Modern Slavery
Act 2018, Guidance for Reporting Entities (2023). 2. Walk Free, The
Global Slavery Index (2023). 3. External fund managers are used for
private bank customers in Australia. ANZ New Zealand Investments
Limited (a subsidiary of our New Zealand business) use external andinternal fund managers. 4. Australia and New Zealand have lower
prevalence and vulnerability to modern slavery according to the
Global Slavery Index (2023).

KPMG assurance opinion

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ANZ 2023 ESG Supplement

CONTRIBUTING TO
RECONCILIATION IN AUSTRALIA
Our 2021–2024 Stretch RAP1, focuses on four
key areas:• Improve the financial wellbeing of individuals
to develop financial resilience• Provide employment and career progression
opportunities to enable economic participation• Support the growth of Indigenous businesses andorganisations to enable economic participation• Improve our understanding of Aboriginal andTorres Strait Islander cultures to create culturally
safe and supportive spaces, show respect andcombat racism
Progress against our RAP is guided and monitored
by a Steering Committee of senior leaders fromacross the business, an external First Nations Advisor
and the Chairs of both the Ngarga Wangaddja2 andthe ANZ Reconciliation Network to ensure we deliveron our objectives.

ANZ’s vision for reconciliation is an Australia that is unified
around a shared history that celebrates and honours the uniquecontributions of Aboriginal and Torres Strait Islander peoples.
This work has evolved since our first Reconciliation Action Plan
(RAP) in 2007 and we aim to continue to develop our approach.
Image: ANZ Centre, Melbourne.

We continue to make good progress against the
17 actions in our RAP, delivering all that fell due
in 2023. This year, we:• Launched a Commercial banking proposition,
appointing two Indigenous Small Business
Managers to work with our Indigenous
Commercial customers, providing tailoredfinancial solutions to help them start, run orgrow their businesses.
• Partnered with Indigenous Business Australia
to host a one-day CEO Assessment Clinic forthe leaders of six Indigenous businesses as partof our objective to actively promote Business
Growth training.

• Spent $11.7 million with Indigenous businesses($24.4 million since the RAP commenced), towards
our objective of $6 million by 2024 (refer page
53 for more information).
• Implemented a Cultural Learning Strategy
designed to improve the cultural competencyof Australia-based non-Indigenous employees
to meet the needs of Aboriginal and Torres
Strait Islander customers, employees andcommunity partners.
• Embedded First Nations principles into thedesign concepts for key offices and branch
refurbishments or new builds, in consultation
with local Traditional Owners.
• Developed and implemented ANZ’s First
Nations Recruitment, Retention and Professional
Development strategy (2024-2026) to drive
greater representation across all levels of theorganisation and empower our First Nations
employees to build meaningful careers at ANZ.
• Partnered with BlackCard3 to provide face-to-facecultural capability training to more than 280
Australia-based employees (nearly 900 since the
RAP commenced), exceeding our objective of
300 employees by 2024.
• Delivered eight MoneyBusiness coach training
sessions to community workers and financial
counsellors working in remote communities(14 since the RAP commenced). For more
information on MoneyBusiness see page 30.

1. Per Reconciliation Australia’s RAP Framework, a “Stretch RAP” spans a two or three year period, and is focused on longer-term strategies, and working towards defined measurable targets and goals. 2. Ngarga Wangaddja means mob talking in the language of the Nurungga people, and was thename chosen for the employee reference group formed to represent the voices of Aboriginal & Torres Strait Islander employees at ANZ. 3. BlackCard is a 100% Aboriginal owned specialist consultancy providing cultural capability training and consultancy services to enable people and organisations
to work effectively with members of the Aboriginal community.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliationin Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

57

ANZ 2023 ESG Supplement

LEADING INDIGENOUS TRANSFORMATIONAL CHANGE
IN AOTEAROA NEW ZEALAND
Launched in 2022, ANZ Bank New Zealand’s
Tākiri-Ā-Rangi strategy aims to:

Overview and governance
Environmental sustainability

Develop stronger relationships with Māori, iwi(tribe) and hapū (sub-tribe) across the country,
acknowledging the growing contribution
Māori businesses make to the economy;

Housing
Financial wellbeing
Customer experience
Information security

Support indigenous financial inclusion to
improve Māori financial wellbeing; andEthics, conduct and culture
Conduct a program to enhance ANZ’s
own understanding of Te Ao Māori(the ‘Māori world view’).

Improving conduct and culture

2

1

The strategy will be implemented until 2040 and aims
to deepen ANZ’s understanding of the values thatare intrinsic to Māori, with a purpose to kia hanga
i te ao e ora ai, e tipu ai te tangata me te kāinga (shapea world where people and communities thrive).

• Releasing ANZ’s Watch Wāhine Win report, which
recognised and celebrated the women who makeup New Zealand’s rich cultural fabric, and restated
ANZ’s support for Māori women to build their own
path to a better future through economic equality.

Te Tiriti O Waitangi (the Treaty of Waitangi) Exhibitionat our headquarters in Melbourne. The art exhibition
recognised the 40th Anniversary of the Australia-New
Zealand Closer Economic Relationship Trade Agreement
between Aotearoa New Zealand and Australia.

This year, we have made substantial progress against
these goals, including:• Changing ANZ Bank New Zealand’s social media
handles to ‘ANZ Aotearoa’ to reflect the
Māori language name for New Zealand.

Launching the exhibition Shayne said, “ANZ has along and proud history in New Zealand, dating all
the way back to 1840, when barely a month after
the signing of the Treaty of Waitangi, the Union
Bank of Australia opened its first branch in Petone,
across the harbour from Wellington City.”• Arranging our first loan agreement with a Māoribusiness which includes a statement of intent
in Te Reo Māori (the Māori language).
• Launching Te Waka-Ā-Reo ANZ’s own reo Māori
program. The online and facilitated language
courses were designed to increase proficiency
and confidence in the language, with more than
1,200 online modules completed this year.
• As part of Te Tohu o Matariki o ANZ – which
introduced Māori design, photography andlanguage to our brand assets, marketing
campaigns and branches – over 2,900 customers
applied for a new bank card featuring the workof Māori artist Geoff Popham during our Matariki(Māori New Year) ‘My Photo Card’ campaign,
exceeding the target of 400 applications.

• Launching Ngā Whetū E Pīata Mai Ana – aninnovative recruitment program, partneringwith a private training entity to find andeducate our next generation of Māori bankers.
• Introducing Te Taumata o Tākiri-ā-Nuku, a biannual
gathering of Māori staff to hear their voices andviews in supporting the long-term objectivesof Tākiri-Ā-Rangi.

Engaging with the community
This year, ANZ also hosted Dame Annette King (theHigh Commissioner of New Zealand to Australia) who,alongside ANZ CEO Shayne Elliott, opened the ANZANZ Bank New Zealand’s leadership team also
met with Māori leaders from across Aotearoa
New Zealand to talk about Te Tiriti O Waitangi, the‘price of citizenship’ and role being played by Māori
Trusts to help rebuild their regions after extreme
weather events. This ongoing kōrero rangatira (chiefly
conversation) was led by ANZ Bank New Zealand
Chairman Sir John Key and ANZ Group Executive and
CEO New Zealand Antonia Watson. Antonia and herleadership team continued this conversation witha meeting at Waitangi in September.

Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

3

Image 1: ANZ Bank New Zealand bank cards featuring the work of
Māori artist Geoff Popham. Image 2: ANZ Te Kaitohu Rautaki Māori
Karleen Everitt. Image 3: ANZ Bank New Zealand Group Executive and
CEO Antonia Watson at the launch of the Watch Wāhine Win report.

58

ANZ 2023 ESG Supplement

OUR APPROACH TO
ACCESSIBILITY AND INCLUSION
Our refreshed 2023-2025 Accessibility and Inclusion
Plan is registered with the Australian Human Rights
Commission. The Plan includes a refined set ofobligations for ANZ to continue to build a moreaccessible bank for our customers, employees andthe community. Importantly, the Plan now extends
to New Zealand for the first time.
Our new obligations are the result of extensive
consultation including with employees via the ANZ
Abilities Network and a survey with non-governmentalorganisations. Recommendations from the 2021
Access and Inclusion Index Benchmark Reportby the Australian Network on Disability were also
considered to inform priority areas.

The new obligations in the Accessibility andInclusion Plan are grouped across four areas:

Many of the obligations are a continuationof existing focus areas, such as seeking to:

INCLUSIVE
DESIGN• Build disability confidence and capability across ANZ
for people leaders, recruiters and customer services
employees through training and resources and bystrengthening the employee Abilities Network.

We use inclusive design principles so as many
people as possible can use our products,
services and working environments with dignity,
convenience and independence.
EMPLOYEEEXPERIENCE

As a disability-confident workforce, we create safe
and welcoming working environments where
people with disability can thrive. We anticipate theneeds of employees with disability and make thenecessary adjustments to support high engagement
and performance.
CUSTOMER
EXPERIENCE

We identify and address barriers to banking topromote equitable access for everyone in thecommunity. We embrace and integrate intuitive andinnovative accessibility features into our products
and services.
COMMUNITY
AND PARTNERS

Through a wide range of partnerships and ongoing
consultation with leading disability organisations,changemakers, and industry groups, we are a voicefor change, raising awareness and closing social andeconomic gaps for people with disability.
Image: The Wind by Victoria Atkinson.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience• Ensure employee and customer technology
solutions are accessible and inclusive for all.

Information security• Improve analytics, insights and reporting on
the experience of our workforce using bothquantitative (e.g. representation in leadership) andqualitative (e.g. employee My Voice survey) data.

Ethics, conduct and culture
Improving conduct and culture• Embed inclusive design by actively consulting withpeople with disability in the design, development,
testing and implementation of banking solutions.

Social and environmental
risk management

Key areas of progress this year include:

Our approach to human rights• Our Australian Digital Team launched the DequeAxe tool for software engineers to create accessible
digital experiences. The tool integrates into
engineer workflows and monitors ANZ web pages
for compliance to industry accessibility standards.

Contributing to reconciliation in Australia

Managing ESG risks and opportunities
in our supply chain

Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion• More than 170 Australian employees completed
accredited Mental Health First Aid training.
• Improved the workplace adjustments process
for new and existing employees, including
Personal Emergency Evacuation Plans (PEEP)
as part of onboarding or cross boarding toenhance workplace safety for all employees.
• Published research results on the financial
wellbeing, attitudes and behaviours of people withdisability or a long-term health condition, sharing
these insights with key stakeholder groups.

For more information about employee wellbeing
see page 62.

Managing our industry associations
and tax

More than 170 Australian
employees completed
accredited Mental HealthFirst Aid training.

Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

59

ANZ 2023 ESG Supplement

Overview and governance

HIGHLIGHT

Environmental sustainability

Financial wellbeing of people withdisability or long-term health conditions
To support the delivery of obligations in our new
Accessibility and Inclusion Plan, ANZ released
research examining the financial confidence andwellbeing of Australians living with disability or
long-term health conditions. The research foundpeople with disability or long-term health conditions,particularly those of working age, had much lower
financial wellbeing than other Australians.
Reduced earning potential, employment
opportunities and poor mental health allcontributed to lower levels of financial

wellbeing, particularly for working age Australians
with disability. Housing security and access tosocial support also played a significant role.
People with disability were budgeting, planningand regularly monitoring their finances withthree-quarters making a budget for how theyused their income – on par with people without
disability. Despite this, socio-economic factors
were impacting their ability to build a savings
buffer with 22% reporting they had no savings
compared to only 11% of those without disability.
This reduced resilience made it more difficult
to deal with unexpected expenses.

Financial confidence and the capacity to build
long-term security also impacted their financial
wellbeing. Only half of working age Australians
with disability or long-term health conditions felt
confident in their ability to plan their financial futurecompared to 66% of all Australians. One-third ofAustralians with disability who wanted to own
a home did not feel it was a realistic goal for themcompared to 15% of people without a disability
or long-term health condition.
Programs and tools to help develop financial
confidence and positive saving and spending habits
such as MoneyMinded and Saver Plus can provide
skills to lessen the impact of socio-economic

disruptions on financial wellbeing. However, these
insights highlight the importance of addressing
structural supports to enable full inclusion. Reducing
barriers to employment, providing formal andinformal social support, and improving housing
security all have a role to play in enabling people
to participate socially and economically to theirfull potential. Refer to pages 26-31 for further
detail on ANZ’s approach to financial wellbeing.

Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture

The research can be found at
anz.com.au/about-us/esg/financial-wellbeing/

Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion

The research found people with disability or long-term healthconditions, particularly those of working age, had much lower
financial wellbeing than other Australians.

Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

60

ANZ 2023 ESG Supplement

MANAGING OUR
INDUSTRY ASSOCIATIONS AND TAX
Contribution to public policy
We seek to contribute constructively to public
policy formation and understand the perspectivesof our community's elected representatives, policy
makers and regulators.
This includes business, economic, socialand environmental focus areas. We work ina collaborative and open way as membersof associations that have similar interests
and approaches to ours.

Payment to the New Zealand Banking Association
includes our annual fee as well as expenditure
related to the expanded trial of regional banking
hubs, contribution to an industry partnership with anationwide financial capability charity, the operationof an industry whistleblower scheme run by the
Banking Ombudsman and industry initiatives in
response to regulatory issues.
We understand our stakeholders are interested
in the position we take on issues such as banking
accessibility, scams and climate change, and ourmembership of industry associations that develop
policies and undertake advocacy on these issues.

Managing our tax affairs
In 2023, our key membershippayments included:
Australian Banking Association$3,040,391

We maintain the highest standards of tax
governance and compliance with the tax laws andobligations in the jurisdictions in which we operate.
We pay tax consistent with our business presence
and operations. We apply the Australian Board of
Taxation’s Voluntary Tax Transparency Code andprovide the recommended disclosures.

Business Council of Australia$104,500
New Zealand Banking Association

NZ$2,260,248
Business New Zealand

NZ$46,460

Refer to our Voluntary Tax Transparency Reportavailable at anz.com/annualreport.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security

Ethics, conduct and culture
Improving conduct and culture
Social and environmental
risk management
Managing ESG risks and opportunities
in our supply chain
Our approach to human rights
Contributing to reconciliation in Australia
Leading Indigenous transformationalchange in Aotearoa New Zealand
Our approach to accessibility
and inclusion
Managing our industry associations
and tax
Employee wellbeing,engagement and inclusion
Explanatory notes
KPMG assurance opinion

61

ANZ 2023 ESG Supplement

MEETING THE NEEDS OFA CHANGING WORKFORCE

We’re responding to the needsof a changing organisation by
investing in simple and seamlesscore human resources (HR)-related
tools and services, supporting ourpeople to adapt and progress sothey can focus on, and deliver,what matters.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture

Employee wellbeing,engagement and inclusion

We launched a new HR platform this year,
helping create a connected technology experiencefor our people across recruitment, onboarding,
performance management, learning, careerdevelopment, progression, reward and recognition,
pay and offboarding.

Meeting the needs of achanging workforce
Wellbeing and engagement
Attracting and retaining employees
Learning and development

This investment in our HR technology
infrastructure is designed to deliver businessbenefits and an enhanced experience for ourpeople long-term.

Diversity and inclusion
Explanatory notes
KPMG assurance opinion

Through new position management structures, dataand insights capabilities, and people cost controls
we are well positioned to make data-driven decisions
to achieve this strategy for our workforce.

Image: ANZ Centre, Melbourne.

62

ANZ 2023 ESG Supplement

WELLBEINGAND ENGAGEMENT

We continue to focus on providing
programs to support the wellbeingof our people across all domains,
including physical, mental, socialand financial wellbeing.

Our regular wellbeing webinars continue to havestrong engagement, with nearly 4,450 employees
attending throughout the year.
We commenced a Group-wide review to explore
the factors which have the greatest influence on
the mental health and wellbeing on our people. The
outcomes of this review will help us to understand
how we can continue to uplift our risk controls.
In Australia, we implemented Mental Health First
Aid training, with more than 170 employees now
accredited to support colleagues experiencing
mental health issues. We also introduced suicideand self-harm guidelines in India, in addition to
those already used in Australia, New Zealandand Manila. For more information about ourAccessibility and Inclusion plan see page 58.

Engagement
Our bi-annual Group-wide engagement survey,
My Voice, continues to be one of the primaryways we receive feedback from our people andunderstand their experience of working at ANZ.
Our results continue to exceed the global Finance& Insurance (F&I) benchmark on all items – and, insome cases, exceed the Global Best in Class (GBIC)
benchmark (top 10% of organisations globally).
Our engagement scores are level with the GBIC
benchmark and 6 ppt above the global F&I industry
average. Further, 89% of respondents said theywould recommend ANZ as a great place to work.

Psychological safety is fundamental to our risk
culture. This year, we continued to focus on ensuring
all our employees feel motivated and empowered
to do the right thing and challenge constructively.
Since the introduction of our ‘Speak Up’ index in
the August 2022 My Voice survey, our result hasremained strong at 84%, up 1ppt since March.
For more information on risk culture see page 48.
Other key areas of improvement identified thisyear include creating opportunities for people
to achieve their career goals at ANZ and building
work processes which allow us to be as productive
as possible.

Customer aggression continues to be one of the
key risks to employee wellbeing. In recognitionof this, a refreshed capability framework wasdeveloped and revised inappropriate customer
behaviour training is in development. Both initiatives
aim to support our frontline employees to safely
de-escalate instances of customer aggression.

Image: ANZ Centre, Melbourne.

We also support employees to achieve positive
health outcomes, irrespective of whether the injury
or illness is work-related. This year, 324 employees
across Australia have received assistance for nonwork-related illness or injury.

Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture

Employee wellbeing,engagement and inclusion
Meeting the needs of achanging workforce
Wellbeing and engagement

August 2023 My Voice survey results:
This year, nearly 2,080 employees acrossthe Group were supported by our Employee
Assistance Program.

Overview and governance

Attracting and retaining employees
Learning and development

Employeeengagement

Inclusion

Wellbeing

Experience matches
expectations

87%

85%

83%

92%

Explanatory notes

March 2023: 87%

March 2023: 87%

March 2023: 83%

March 2023: 92%

KPMG assurance opinion

Diversity and inclusion

63

ANZ 2023 ESG Supplement

ATTRACTING AND
RETAINING EMPLOYEESOur employee attrition rate1 fell to 9.5% this year – down from
13.9% in 2022 and slightly below our pre-COVID rate of 10.6%.
We have observed an easing of the highly competitive labour
market seen in previous years across our major geographies, withapplications per job ad increasing and overall job ads declining.
However, with ongoing low unemployment in Australia (3.6%2)
and New Zealand (3.6%3), competition in some role types remains
tight, particularly for engineers and data professionals.

Other role types where candidate supply remains a
key focus include compliance and non-financial risk,
credit risk, and customer relationship roles. Our focus
on attracting and retaining talent in Bengaluru is
ongoing as competitors continue to expand, driving
demand for talent in artificial intelligence, operations
and digital.

We also introduced new "capability channels"learning content designed to further support
our engineers to uplift their skills across a rangeof technical areas including security, Cloudand DevOps.

Overview and governance

Building capabilities in ESG

Customer experience

We implemented a range of initiatives this year,
including:

Our Mindset 2030 learning program supports our
employees to better understand our Environmental
Sustainability strategy, research and publications,and how we are engaging with our customers inline with our Climate Change Commitment.

• A campaign in Bengaluru focused on engaging
with engineers and data professionals to build
the awareness of our brand in anticipation ofincreasing need for these capabilities.
• Redesigning the New Zealand careers website
to better showcase our culture, diversity andopportunities. Built with the candidate experiencein mind, the site provides the information
candidates require at each stage of theirjob search to encourage applications.
• Ongoing investment in leadership capabilities
across the bank, refer to page 64 for details.

Focusing on key strategic capability areas
Engineering, Cloud, Data and Security
The Engineering Career Pathways program launchedthis year, is designed to help attract, grow and retain
these critical skill sets. The pathways comprise eightspecialisations and seven craft levels, providing
career progression to people focused on mastering
the craft of engineering.
This year, we continued to grow our earlytalent engineering pipeline, hiring more than
1,180 engineers, with approximately 60%
of ANZ’s early talent in engineering roles.
1. Voluntary turnover of employees. 2. September 2023 data – Labour Force, Australia. 3. June 2023 data – Stats NZ.

This year, we added new modules to the learning
program, covering ESG topics such as financial
wellbeing and risk management. Around 4,300
people have commenced the renamed ESG@ANZ
learning program, with more than 8,800 modules
completed. We also ran 25 speaker events coveringkey ESG concepts to further embed the learning.
Our newly established champion network includes
more than 200 volunteers across our geographies
to create awareness and uplift capability more
broadly. For more information see our Climaterelated Financial Disclosures available atanz.com/esgreport.
Aotearoa New Zealand Skills Pledge
ANZ Bank New Zealand continues investing in the
personal and professional growth of our people,
achieving nearly 122,000 hours of learning (froma 2020 baseline of 35,000 hours) in support of the
Aotearoa New Zealand Skills Pledge which commits
signatories to doubling investment in re-skilling
and training hours by 2025, and report annuallyon progress.

Environmental sustainability
Housing
Financial wellbeing

Information security
Ethics, conduct and culture

Employee wellbeing,engagement and inclusion
Meeting the needs of achanging workforce
Wellbeing and engagement
Attracting and retaining employees
Learning and development
Diversity and inclusion
Explanatory notes
KPMG assurance opinion

64

ANZ 2023 ESG Supplement

LEARNING AND
DEVELOPMENT
Developing our leaders and their teams

We continued to invest in developing
the capability of our people this year withmore than 1.36 million hours of learning
delivered through our digital learning
platforms. This included around 616,000
hours of compliance training and morethan 484,000 hours of self-directed learning.
A further 149,000 hours were dedicated tocontinuing professional development.
We implemented a new Learning Management
System this year, with nearly 814,745 courses
completed since its launch in April. Our Way of
Learning (OWL) platform also continues to bewell used with over 10,000 users a month.
Since launching our Executive Leadership Series
last year, we delivered two modules targeted tosenior leadership focusing on topics related to ourstrategy. The module on performance and culture
was attended by over 70% of senior leadershipwith around 86% of attendees indicating it
helped improve their leadership approach.

Targeting all our people across the organisation,
we strengthened culture capability by launching aGroup-wide learning program focused on deeper
understanding, engagement, habit formation andskill building to directly support our culture.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing

The newly launched LEAD@ANZ program isdesigned to empower people leaders across theorganisation and equip them with the skills andconfidence to be an exceptional leader.

Customer experience
Information security
Ethics, conduct and culture

Since launch, the program has been attended
by more than 5,400 of our people across
29 markets. Topics covered include what it
takes to be a great leader and how to bringour purpose and strategy to life.

Employee wellbeing,engagement and inclusion
Meeting the needs of achanging workforce
Wellbeing and engagement

The 1% Better program was launched this year
to support our people to be aware of our cultural
behaviours, building the desired habits and skills
to demonstrate these every day. To date, over
5,000 participants have attended the modules
with more than 90% indicating they could
better demonstrate our behaviours.

Attracting and retaining employees
Learning and development
Diversity and inclusion
Explanatory notes
KPMG assurance opinion

The newly launched LEAD@ANZ
program is designed to empower
people leaders across theorganisation and equip themwith the skills and confidence
to be an exceptional leader.

Image: ANZ Centre, Melbourne.

65

ANZ 2023 ESG Supplement

ACHIEVING GENDER BALANCEIN OUR BUSINESSWe are pleased to have increased Womenin Leadership1 (WIL) to 37.3% in 2023,
exceeding our target of 36.9% (an increaseof 1.4 ppt since 2022). Women in revenue
generating leadership roles2 improvedby 2 ppt to 32.2% this year.
In 2024 our target is to again increase WIL by 1 ppt,
to 38.3%. We anticipate the changing shape ofour business and increased focus on traditionallymale-dominated roles may make it challenging
to achieve the progress in WIL that we are seeking.
To help support the achievement of this target,
this year we developed an enterprise Women in
Leadership (WIL) Action Plan which has a focus on
increasing the representation of WIL and ‘building
the pipeline’, and includes a sustained focus onprioritised segments such as Institutional andTechnology, both of which have large leadership
populations – a higher proportion of which are men.

This year, we established:• Group Executive and CEO New Zealand Antonia
Watson and Group Executive Institutional Mark
Whelan as executive sponsors of the plan, tochampion and advocate the criticality of theWIL agenda across the organisation;• a Business Leader Reference Group comprisingsenior leaders – of all genders and from acrossvarious geographies and divisions – who provide
input into the WIL efforts from the perspective ofboth their lived experience as a business leader
and the division they represent; and• a WIL Taskforce with representatives from theprioritised segments and Talent & Culture to alignWIL efforts on the initiatives that will have thegreatest impact, drive momentum and provide
a disciplined focus for the WIL agenda.
We also included additional gender equity questions
in our My Voice engagement survey this year tobetter understand gender equality perceptions andthe factors that can act as enablers or barriers to theachievement of gender equality in our workplace.
We developed an enterprise Sponsorship Playbook
to provide guidance for groups across the banklooking to run a sponsorship program, andcompleted a stocktake of our people policies,
processes and practices to identify opportunities

for improvement. Some of the adjustments weare now making include improvements to our exit
interview process and providing additional guidancefor hiring managers on inclusive recruitment.

Overview and governance

ANZ is signatory to the 40:40 Vision, an investor-led
initiative which aims to achieve gender balance(40:40:20) in executive leadership teams of ASX300
companies by 2030. As at 30 September 2023,
women as Key Management Personnel (KMP)3
had decreased to 30% (below the 40% target).
This number included Richard Howell, who was
Acting Group Executive Talent & Culture for threemonths during 2023. Elisa Clements was announced
permanent Group Executive Talent & Culturecommencing 9 October at which time womenas KMP increased to 40%. Three of the four KMP
roles with profit and loss accountability are held
by women – our Group Executive Australia
Retail Maile Carnegie, Group Executive Australia
Commercial Clare Morgan, and Group Executive
and CEO New Zealand Antonia Watson.

Financial wellbeing

Further detail on our gender diversity targets canbe found in our Corporate Governance Statement
and our Diversity and Inclusion Policy available
at anz.com/corporategovernance. For more
information about employee gender breakdowns
see our ESG Data and Frameworks pack available
at anz.com/esgreport.

1. 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). 2. Representation of womenat the Senior Manager, Executive and Senior Executive levels based on 'revenue proximity' field. 3. CEO and Disclosed Executives as set out in the Remuneration Report contained within the Annual Report.

Environmental sustainability
Housing

Customer experience
Information security
Ethics, conduct and culture

Employee wellbeing,engagement and inclusion
Meeting the needs of achanging workforce
Wellbeing and engagement
Attracting and retaining employees
Learning and development
Diversity and inclusion
Explanatory notes
KPMG assurance opinion

66

ANZ 2023 ESG Supplement

A FOCUS ON
GENDER PAY EQUALITY
We further evolved our approach to gender
pay reporting by disclosing our total
remuneration1 gender pay gap in Australia
for the first time this year (see table below).
The overall figure represents the difference
between what women and men2 earn acrossall roles based in Australia, complementing ourhistorical reporting methodology, available in
our ESG Data and Frameworks Pack available atanz.com/esgreport. We have chosen to report thedifference in total remuneration rather than salary3
this year, reaffirming our ambition to publish moretransparent pay equity data and bridge the gender
pay gap.

In early 2024, the Australian Workplace Gender
Equality Agency (WGEA) will be publishing private
sector employer pay gaps for the first time. ANZ’sgender pay gap is 19.9% which, while still muchhigher than we would like, is below the average
gender pay gap for the financial and insurance
services industry of 28.6% and the national
average of 22.8%4.
Like the industry overall, ANZ has a majority
female workforce (50.8%) but lower representationof women in leadership (37.3%). The key to closing
the gender pay gap continues to be increasing
the representation of women in senior andhigher-paying roles which is why implementing
our Women in Leadership Action plan is so critical.

AVERAGEMEDIAN

2023

YoY change

2023

YoY change

Gender pay gap

19.9%

1.9 ppt

23.1%

1.5 ppt

Pay equity gap

0.3%

0.7 ppt

0.01%

0.5 ppt

Increase (in favour of men)

Decrease (in favour of women)

Measuring gender pay equality
In calculating the overall gender pay gap5, we
assessed the overall differences in both average6
and median7 total remuneration. Unlike average
total remuneration which can be influenced byoutliers and can skew the result, the median is a
closer representation of the earnings typical of
our male and female employees.
A range of factors determine the level of variable
pay at ANZ, so our overall gender pay gap may
fluctuate year-on-year.
We were pleased to further reduce our overall
gender pay gap in Australia this year, as measured
by both the average and median remuneration.
We have achieved this primarily by increasing
the number of women in more senior and higher
paying roles.
Our overall pay equity gap8– which compares thetotal remuneration of women and men in the sameor similar roles – in Australia regressed marginallysince last year when the pay equity gap slightly
favoured women, to now slightly favouring men.
Although our overall pay equity gap remains
minimal, we recognise there are areas where
this gap is wider and we have more work to do.

We actively monitor and review both our gender
pay gap and pay equity gap, including as part ofour annual Performance and Remuneration Review
process and by the CEO, aiming to take positive
action to adjust where necessary.
This year, ANZ Bank New Zealand publicly reported
its gender pay gap for the second time (20.5%9
favouring men in 2022). For the first time, theMāori and Pasifika pay gap – the difference
between the average pay for Māori and Pasifika andfor European/Pākehā – was also disclosed at 23.3%10
in 2022 favouring European/Pākehā employees.
For comparable data measuring the averagesalary breakdowns by job category and for
women and men in the same or similar roles
see our ESG Data and Frameworks pack available atanz.com/esgreport. More information about ANZ’sremuneration report can be found in the 2023
Annual Report available at anz.com/annualreport.

1. Includes both fixed and variable remuneration, such as bonuses. 2. Gender data reported using binary female and male categories to ensure confidentiality of our non-binary and gender diverse employees. ANZ recognises and respects diverse gender identities and is committed to providing a safe,
respectful and inclusive workplace. 3. Fixed remuneration, such as base salary and superannuation. 4. Australia only. Includes Executive Committee, permanent, casual & temporary (fixed-term) employees, and trainees/interns. Excludes ANZ CEO and independent contractors. Effective date 9 September
2022. Includes both fixed and variable remuneration. Fixed remuneration data reflects actual earnings over 12-months (grossed up to 1 FTE and annualised). Variable pay is based on FY22 outcomes. 5. Australia only. Includes permanent employees. Excludes CEO, Executive Committee, casual employees,
temporary (fixed-term) employees and trainees/interns. Effective date 9 September 2022. Includes both fixed and variable remuneration. Fixed remuneration data reflects actual earnings over 12-months (grossed up to 1 FTE and annualised). Variable pay is based on FY22 outcomes. 6. Calculated bysumming all values in total number of values. 7. Calculated by sorting all values from highest to lowest and identifying the middle value in each data set. 8. Referred to in prior reporting as “like-for-like”. From 2023 measures total remuneration, not just base salary. 9. This data is permanent employeesof ANZ Bank New Zealand Limited, excluding the New Zealand CEO. Percentages are based on full-time equivalent average Total Pay (salary and superannuation, where it forms part of a fixed remuneration package, plus variable pay). Values are provided by ANZ on a voluntary basis and are as at 30
September of the relevant year. 10. The number of permanent employees of ANZ Bank New Zealand Limited who identify as Māori or Pasifika is 8.7% of the total permanent employee population, including employees who have not declared an ethnicity. Employees who haven’t provided ethnicity
data aren’t included in the ethnicity pay gap calculation. We recognise that our ethnicity pay gap is based on less than half of our workforce and does not provide a complete picture. Values are provided by ANZ Bank New Zealand Limited employees on a voluntary basis and are as at 30 September 2022.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture

Employee wellbeing,engagement and inclusion
Meeting the needs of achanging workforce
Wellbeing and engagement
Attracting and retaining employees
Learning and development
Diversity and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

WORKPLACE DIVERSITY
AND INCLUSION

By having a diverse workforce andinclusive culture we aim to improve
the quality of ANZ’s decision-making
and drive innovation, making us abetter bank for our customers.
We are making good progress against our five
diversity and inclusion strategic priorities:

Our employee networks: creating
an inclusive culture
Our employee networks continue to play a criticalrole in shaping our inclusive culture and theirimportance is reflected in our Diversity and Inclusion
Strategy. Groups representing our diverse workforce
include Abilities, Reconciliation, Mental Health &Wellbeing, Cultural Inc, ForWARD, Faith, and Pride.

Create an inclusive culture and improvethe experience of our employees who
represent all dimensions of diversity

We have begun establishing our first neurodiverse
employee network to support and build
connections with our neurodiverse community
within ANZ. For the first time this year, we
asked a question in our engagement survey tounderstand the representation and experienceof our neurodivergent colleagues.

Our ForWARD gender equity network, incollaboration with Pride, hosted a virtual panel
event on “None of the Above: Life Isn’t Binary”
for this year’s International Non-Binary People’s
Day to celebrate the non-binary community. In
addition to celebrating other important days on
the diversity and inclusion calendar, an employee
networks marketplace was held in celebration ofInternational Women’s Day to promote awarenessof the events, resources and different support
systems the networks make available to theirmembers across the bank globally.
Our Abilities Network was a finalist in the‘Disability Employee Network of the Year’ categoryof the annual Disability Confidence Awards run by
the Australian Network on Disability, recognising
the significant work being done to create a moreaccessible bank. For more information about ourAccessibility and Inclusion plan see page 58.

Build the confidence and capabilityof people leaders to lead diverse
and inclusive teams
Improve the diversity of ourleadership population

Return to Work ProgramThis year saw the expansion of our Return to Workprogram which supports individuals who have beenout of the workforce for two or more years back intomeaningful employment. With opportunities acrossTechnology, Commercial, Institutional and Retail,more than 40 new employees were hired acrossAustralia and India. Women represented 90% of
these employees, with nearly 70% of the full cohort
indicating caring responsibilities were a reason for
their career break and half having been out of theworkforce for a period of 4-5 years or more. We arepleased that 77% of participants from the last twocohorts of this program have been retained.

Strengthen and empower our
employee networks
Improve accountability and governance

Image: ANZ Centre, Melbourne.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture

Employee wellbeing,engagement and inclusion
Meeting the needs of achanging workforce
Wellbeing and engagement
Attracting and retaining employees
Learning and development
Diversity and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

PARTICIPATION OF UNDER-REPRESENTED
GROUPS IN OUR WORKFORCE

We are focused on continuously
improving our recruitment andselection processes to ensure
they are inclusive, barrier-free andaccessible. This year, we introduced
the ability for all applicants to include
pronouns, select Mx salutationand identify as non-binary in
the recruitment process.

We also continue to run a range of employment
programs designed to increase the diversityof our workforce, including:Indigenous traineeships – 41 trainees(25 full-time and 16 school-based) in 2023
Two new Spectrum program participants
this year, in addition to continuing tosupport autistic secondary school students
with 19 work experience placements
More than 260 participants in our Summer
internships and graduate programs

Chance For All
In 2022, the Brotherhood of St Laurence (BSL)
invited ANZ to participate in the “Chance For All”
pilot, which expands on the Given the Chance
program to include people with disability,
recognising the barriers to employment that
can also be experienced by this group. This year,
three of the eight pilot participants continued theircareers with ANZ. For more information about ourAccessibility and Inclusion plan see page 58.

Given the Chance
Since 2007, we have partnered with BSL on
the Given the Chance program to assist refugee
and asylum seekers with six to 12-month work
placements, providing them with invaluable work
experience to enter the local workforce. This year, wehave placed 46 participants into work placements at
ANZ. Approximately 57% of participants from the2022 cohort have retained ongoing careers with us.
During Refugee Week in June, we celebrated
15 years of the program at our Melbourne
headquarters with a panel of program alumni
who spoke about their experiences and how
impactful the organisations’ supported was.
BSL’s Executive Director, Travers McLeod, said
staff from refugee backgrounds not only bringa second language but also an understandingof the cultural context of the community.
“This can include knowledge about what’s
happening in their home country or region which
may impact their banking needs,” he said. “Trust andinside knowledge like this can’t be purchased.”

Overview and governanceCase study

Environmental sustainability
Housing

A family affair
Through the Given the Chance Program,
ANZ welcomed three siblings from a
refugee background into three different
locations across our New South Walesbranch network. Ayesha was the first to
join ANZ, commencing her role as a trainee
Banking Consultant in February 2023. She
reflected on ANZ being a welcoming place
for new people where she didn’t feel judged.
Inspired by her older sister’s experience,
Rubesha Angel applied to join the bankas a trainee Banking Consultant andcommenced her new role in June.
Upon hearing how much his two older
sisters were enjoying working at ANZ,
Yashaua also applied through the Given
the Chance Program and commenced work
as a trainee Banking Consultant in July.
Originally from Pakistan, the three siblings
fled to Bangkok where they lived for nearly adecade while waiting for their humanitarianvisas, eventually arriving in Sydney in 2022.

Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture

Employee wellbeing,engagement and inclusion
Meeting the needs of achanging workforce
Wellbeing and engagement
Attracting and retaining employees
Learning and development
Diversity and inclusion
Explanatory notes
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ANZ 2023 ESG Supplement

EXPLANATORY
NOTES
Target to fund and facilitate $10 billion inaffordable, secure and sustainable housing
by 2030 across Australia and New Zealand.

The $10 billion target activities specifically include
the construction of, or investment in, Australian and
New Zealand housing supply that supports positivemarket change, including the following aims:

Overview and governance‘Affordable, secure and sustainable housing’ isdefined as the products and services provided
to our customers in Australia to the extent they
are related to the defined activities below.

• supporting social housing for vulnerable
communities;

Financial wellbeing

The $10 billion target is reported as at
30 September 2023 and is a twelve-year Australia
and New Zealand target, from 2018 to 2030. It
includes all financing either funded or facilitated by
ANZ through its products and services, including,but not limited to, loans, guarantees and bonds,
markets products and advisory services. It also
includes certain labelled sustainable financeproducts such as social/sustainability bonds
and sustainability-linked loans (SLLs).

• increasing the availability of accessible housingthat provides better design to support disability
and aged persons;

Our approach to our $10 billion target:• aligns to United Nations Sustainable
Development Goals (SDGs), specifically SDG
9 Industry, Innovation and Infrastructure and
11 Sustainable Cities and Communities; and• commits to conducting an annual review ofactivities and methodologies used to guideactivities that qualify for the $10 billion target.
This may result in the inclusion of new activities
and any material changes will be transparently
disclosed. The inclusion of new activities will
not be applied retrospectively.

• expanding the availability of affordable housing
for rental or purchase;• delivering security of tenure for rental and/ or
including the opportunity to purchase; andEnvironmental sustainability
Housing

Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion• improving housing sustainability via design
and features above minimum standards.

Explanatory notes

The target includes products and services thathave been provided since 1 October 2018 above athreshold of $1 million. Transactions that qualify forthis target (excluding deferred deals) contributed
to the $50 billion target from 1 October 2019 to
31 March 2023, and contribute to the $100 billion
target from 1 April 2023.

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ANZ 2023 ESG Supplement

INDEPENDENT LIMITED ASSURANCE REPORT TO
THE DIRECTORS OF ANZ GROUP HOLDINGS LIMITED

Conclusion

Based on the evidence we obtained
from the procedures performed,
we are not aware of any material
misstatements in the ANZ 2023
ESG Reporting, which has been
prepared by ANZ in accordancewith the Criteria for the year ending
30 September 2023.

Information Subject to Assurance

Criteria Used as the Basis of Reporting

Summary of Procedures Performed

The 2023 ESG Reporting is prepared in accordancewith the GRI Universal Standards published by the
Global Reporting Initiative (GRI) version dated 2021
and management’s basis of reporting. A summaryof management’s basis of reporting is includedin the Explanatory Notes in the ANZ 2023 ESG
Supplement and the ANZ’s Social and Environmental
Sustainability Target Methodology, available atanz.com/esgreport.

Our limited assurance conclusion is based on
the evidence obtained from performing thefollowing procedures:

Basis for Conclusion
We conducted our work in accordance with
Australian Standard on Assurance Engagements
ASAE 3000 (Standard). In accordance with theStandard we have:

ANZ Group Holdings Limited (ANZ) engaged
KPMG to perform a limited assurance engagement
in relation to the 2023 ESG Supplement and 2023
ESG Data and Frameworks Pack. KPMG’s scope ofwork comprises limited assurance over all material
text and data claims presented in the 2023 ESG
Supplement, and all data tabs and the GRI Index
tab in the 2023 ESG Data and Frameworks Pack(“2023 ESG Reporting”).

• used our professional judgement to plan andperform the engagement to obtain limited
assurance that we are not aware of any material
misstatements in the 2023 ESG Reporting,whether due to fraud or error;

The ANZ 2023 ESG Supplement is attached tothis assurance report, and the 2023 ESG Data andFrameworks Pack is available at anz.com/esgreport.

• ensured that the engagement team possess
the appropriate knowledge, skills andprofessional competencies.

The 2023 ESG Reporting covers ANZ’s consolidated
group operations for year ended 30 September 2023
unless otherwise indicated.

• considered relevant internal controls when
designing our assurance procedures, however
we do not express a conclusion on theireffectiveness; and• Enquiries with management to understand ANZ’sprocess for determining material ESG issues; andimplementation of these across the business;• Interviews with relevant ANZ management
and staff concerning ANZ's approach to ESG
and policies for material ESG issues, and theimplementation of these across the business;• Interviews with relevant staff responsible fordeveloping the content (text and data) within the2023 ESG Reporting to understand the approachfor management, monitoring, collation andreporting of such information and the accuracy,completeness and existence of reported text
and data within the 2023 ESG Reporting;• Comparing text and data (on a sample basis)presented in the 2023 ESG Reporting tounderlying sources. This included considering
whether all material matters are included,
whether any are excluded and whether thereported text and data is accurately drawn
from the underlying information;• Testing over ANZ’s 2023 ESG targets andthe disclosed progress or achievement;

How the Standard Defines Limited
Assurance and Material Misstatement
A limited assurance engagement is restrictedprimarily to enquiries and analytical procedures.
The procedures performed in a limited assurance
engagement vary in nature and timing from, andare less in extent than for a reasonable assurance
engagement. Consequently the level of assurance
obtained in a limited assurance engagement issubstantially lower than the assurance that would
have been obtained had a reasonable assurance
engagement been performed.
Misstatements, including omissions, are consideredmaterial if, individually or in the aggregate, they
could reasonably be expected to influence relevant
decisions of the Directors of ANZ.

Use of this Assurance Report
This report has been prepared for the Directorsof ANZ Group Holdings Limited for the purposeof providing an assurance conclusion on the2023 ESG reporting and may not be suitable foranother purpose. We disclaim any assumption of
responsibility for any reliance on this report, to any
person other than the Directors of ANZ, or for any
other purpose than that for which it was prepared.

• Reading the 2023 ESG Reporting (in its entirety)
to ensure it is consistent with KPMG's overall
knowledge of, and experience with, the ESG
performance of ANZ;
• Performing a consistency check of ANZ's ESG
Disclosures included within the Climate-related
Financial Disclosures Report• Reviewing ANZ's assessment of the disclosuresin relation to the GRI.

© 2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under licenseby the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

Overview and governance
Environmental sustainability
Housing
Financial wellbeing
Customer experience
Information security
Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
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ANZ 2023 ESG Supplement

ANZ’s Responsibility

Our Responsibility

Overview and governance

ANZ’s Management are responsible for:Our responsibility is to perform a limited assurance
engagement in relation to the 2023 ESG Reportingfor the year ended 30 September 2023, and to issue
an assurance report that includes our conclusion.

Environmental sustainability

Our Independence and Management

Customer experience

We have complied with our independence andother relevant ethical requirements of the Codeof Ethics for Professional Accountants (including
Independence Standards) issued by the AustralianProfessional and Ethical Standards Board, andcomplied with the applicable requirements ofAustralian Standard on Quality Management 1
to maintain a comprehensive system of quality
management. We have also complied with ANZ’s
Stakeholder Engagement Model for Relationshipwith External Auditor (available on anz.com).

Information security• determining that the Criteria is appropriate
to meet their needs;• preparing and presenting the 2023 ESG Reportingand other ESG related information in accordancewith the Criteria; and• establishing internal controls that enable thepreparation and presentation of the 2023 ESG
Reporting that is free from material misstatement,
whether due to fraud or error.

KPMG

Adrian King
Partner
KPMG Melbourne
10 November 2023

© 2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMGInternational Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under licenseby the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

Housing
Financial wellbeing

Ethics, conduct and culture
Employee wellbeing,engagement and inclusion
Explanatory notes

KPMG assurance opinion

anz.com/esgreport

ANZ Group Holdings Limited (ANZ) ABN 16 659 510 791.
9/833 Collins Street, Docklands Victoria 3008 Australia.
ANZ’s colour blue is a trade mark of ANZ.