# 2025 Climate Report **ANZ** Approved for distribution by ANZ Group Holding Limited's Board. --- We continue to be driven by our purpose: to shape a world where people and communities thrive. **ANZ network presence** * **Australia** – Retail, Commercial, Institutional * **New Zealand** – Retail, Commercial, Institutional * **International** – Institutional, Retail & Commercial in Pacific **Acknowledgement of Country and Traditional Owners** ANZ acknowledges the Traditional Custodians of Country throughout Australia and recognises their continuing connection to lands, skies and waterways. We pay our respects 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 Puāwai ki te Ao** A blossoming to the world * **Te Kare ā-Roto e** With ripples of compassion and hope for all. **Contents** | Overview | Risk management | 22 | | :--- | :--- | :--- | | Disclaimer and important notices | 1 | Metrics and targets | 30 | | Our 2025 reporting suite | 2 | TCFD-related metrics and industry exposures | 30 | | CEO's message | 3 | Funding, facilitating and direct investments in social and environmental activities through our $100 billion target | 31 | | About our business | 4 | Our approach to sectoral pathways | 32 | | Governance | 5 | Energy | 34 | | Strategy | 8 | Transport | 40 | | Our Climate and Environment Strategy | 8 | Industry | 43 | | Our Large Emitters Engagement Program | 12 | Buildings | 46 | | Supporting our customers' transition through financing | 16 | Other metrics | 48 | | Understanding nature risks and opportunities | 18 | Operational emissions | 52 | | Building our capability to help customers understand climate and nature risks | 20 | Appendices | 54 | | Collaborating with stakeholders to support the transition | 21 | Glossary of terms | 82 | | | | Independent Assurance Statement | 87 | **Important Notice** | Date issued | Brief outline of change | | :--- | :--- | | **1.0** 10 Nov 2025 | Version for publication | | **1.1** 21 Nov 2025 | Change: Chart on Page 14: 2026 LEEP customers by sector - industrial manufacturing customer cohort added to the pie chart | We are continually seeking to improve our reporting suite and welcome feedback on our ESG and climate reporting. Please address any questions, comments, or suggestions to **esg@anz.com** --- # Overview ## Disclaimer and important notices The material in this report contains general background information about the Group's activities current as at 7 November 2025. It is information given in summary form and does not purport to be complete. It has a sustainability focus and does not reflect the totality of the Group's business activities. For a more complete overview of the Group's business, see the 2025 Annual Report available at **anz.com/annualreport**. It is not intended to be and should not be relied upon as advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment 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 and financial condition, sustainability objectives or targets and risk management practices. Those matters are subject to risks and uncertainties that could cause the actual results and financial position of the Group to differ materially from the information presented herein. 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. There can be no assurance that actual outcomes will not differ materially from any forward-looking statements or opinions contained herein. Also see the notice about climate related information on this page which may affect climate-related forward-looking statements or opinions and the information in Appendix 5 which may affect forward-looking statements or opinions relating to the Group's financed and facilitated emissions. The forward-looking statements or opinions only speak as at 7 November 2025 and no representation is made as to their correctness on or after this date. No member of the Group undertakes to publicly release the result of any revisions to these statements to reflect events or circumstances after this date 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 statements were prepared in good faith, climate-related statements are subject to significant uncertainty, challenges and risks that may affect their usefulness, accuracy and completeness, including: 1. Availability and reliability of data – emissions and climate-related data may be incomplete, inconsistent, unreliable or unavailable (including information from the Group's customers), and it may be necessary to rely on assumptions, estimates or proxies where that is the case. 2. Uncertain methodologies and modelling – methodologies, frameworks and standards used for calculations of climate-related metrics, modelling and climate data are 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. Scenario analysis limitations – analysis of climate scenarios is limited by its reliance on assumptions, estimates and projections that are not exact. 4. Complexity of calculations and estimates – estimating financed or facilitated emissions (including allocating emissions to banking activities) and emissions reduction is complex and relies on assumptions and judgments, often made in respect of long periods of time. 5. 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 and regulatory investigations. 6. Lack of consistency in definitions and climate-science terminology subject to changes – definitions and standards for climate-related data and assessment frameworks used across industries and jurisdictions may vary, and terminology and concepts relating to climate science and decarbonisation pathways may evolve and change over time. These inconsistencies and changes can also make comparisons between different organisations' climate targets and achievements difficult or inappropriate. 7. Reliance on third parties for data or involvement – the Group may need to rely on assistance, data or other information from external data and methodology providers or other third parties, which may also be subject to change and uncertainty. Additionally, action and continuing participation of third parties, such as stakeholders, may be required (including financial institutions and governmental and non-governmental organisations). Due to these uncertainties, challenges and risks, statements, assumptions, judgments, calculations, estimates or proxies made or used by the Group may turn out to be incorrect, inaccurate or incomplete. Readers should conduct their own independent analysis and not rely on the information for investment decision-making. The information in this notice should be read with the qualifications, limitations and guidance included throughout this report and in: * Appendix 4 ANZ Climate Scenario Analysis Methodology * Appendix 5 ANZ Financed and Facilitated Emissions Methodology * Appendix 7 Scope 1, Scope 2 and Scope 3 Operational Greenhouse Gas Emissions Reporting Methodology * ANZ Social and Environmental Sustainability Target Methodology available at **anz.com/esgreport** * 2025 ESG Data and Frameworks Pack available at **anz.com/esgreport** --- # Our 2025 reporting suite | Where to find | Annual Report | Full Year Results announcements | Corporate Governance Statement | Climate Report | ESG Report | ESG Data and Frameworks Pack | Modern Slavery and Human Trafficking Statement | Voluntary Tax Transparency Report | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial | $\blacksquare$ | $\blacksquare$ | | | | | | | | Governance | | $\blacksquare$ | $\blacksquare$ | | | | | | | Strategy | | | | $\blacksquare$ | $\blacksquare$ | | | | | Risk | | | | $\blacksquare$ | $\blacksquare$ | | | | | ESG disclosures and performance | | | | $\blacksquare$ | $\blacksquare$ | $\blacksquare$ | $\blacksquare$ | $\blacksquare$ | | Climate disclosures and performance | | | | $\blacksquare$ | | $\blacksquare$ | | | ## About this report Our 2025 Climate Report outlines ANZ Group Holdings Limited (ANZGHL) ABN 16 659 510 791 and its subsidiaries' (referred to as "ANZ" or "the Group" or "our" or "we") approach and progress towards our Climate and Environment (C&E) Strategy vision to finance a sustainable transition. This year, the report is prepared in accordance with the Task Force on Climate-related Financial Disclosures (TCFD). See Appendix 2 for our TCFD index. Under the Corporations Act 2001 (Cth), the Australian Sustainability Reporting Standard AASB S2 - Climate-related Disclosures (the Australian equivalent of International Financial Reporting Standards (IFRS) S2) will apply to ANZGHL for the financial year commencing 1 October 2025. This report is also informed by the Taskforce on Nature-related Financial Disclosures (TNFD) framework for nature disclosures, Glasgow Financial Alliance for Net Zero (GFANZ), and Transition Plan Taskforce (TPT) guidance and framework in our disclosures on transition planning. The report also details our actions in setting pathways and targets to reduce our financed and facilitated emissions in key sectors, informed by the UN Guidance for Climate Target Setting for Banks and the Partnership for Carbon Accounting Financial (PCAF) guidance. See page 32. KPMG has performed assurance over the disclosures in this report. A copy of KPMG's independent assurance statement can be found on pages 87-89. ## Reporting boundaries and periods The processes, approaches and policies described in this report may vary in application across ANZ's operations to reflect specific legal requirements of the jurisdictions in which ANZ operates. Data and information within this report relates to the consolidated Group for the financial year ending 30 September 2025, referred to as "2025" or "this year", throughout the report, except for: | Year | Data | As at | Page | | :--- | :--- | :--- | :--- | | 2025 | Australian home loan portfolio assessed as vulnerable to physical risks | 30 June | Page 28 | | 2024 and 2025 progress | Financed emissions and sector-level progress | 30 June | Pages 32-47 | | | Facilitated emissions from capital market activities¹ | | | For further information on specific methodologies and definitions (including boundaries), see Appendix 4 and 5. ## Reading this report Words underlined like 'this' are explained in the Glossary of terms on pages 82-86. Monetary amounts in this document are reported in Australian dollars (AUD), unless otherwise stated. Throughout this report, the sum of parts within charts and commentary may not equal totals due to rounding. ## Suncorp Bank On 31 July 2024, the Group acquired 100% of the shares in SBGH Limited, the immediate holding company of Norfina Limited ABN 66 010 831 722 (previously called Suncorp-Metway Limited) ("Suncorp Bank"). Following the acquisition, Suncorp Bank commenced a phased transition to adopt the policies and processes of ANZ. During this transition period Suncorp Bank will be subject to a combination of ANZ and Suncorp Bank policies. As part of the ongoing transition, Suncorp Bank will seek to align to ANZ policies and practices, where appropriate. Where Suncorp Bank is included or excluded in policies, standards or metrics throughout the report, this is denoted. Noting Suncorp Bank is excluded from prior year metrics, in this report. Suncorp Bank's operations continue to be supervised by key regulatory bodies and seeks to meet all due diligence obligations mandated by law. The following ANZ policies and standard, which embed our approach to climate, currently apply to Suncorp Bank or applied to Suncorp Bank during the reporting period: * Non-Financial Risk Policy * Performance and Remuneration Policy - Group² * Climate Risk Standard (approved 30 September 2025) During the reporting year, Suncorp Bank retained the following policies: * Responsible Banking Policy * Credit Risk Management Policy * Operational Resilience Policy --- # Governance ## ANZ Board and committees ANZ Group Holdings Limited's Board (Board) is responsible for oversight of the Group. The Board, with the support of its committees, is also responsible for overseeing ANZ's governance framework. The framework seeks to provide for effective and responsible decision making, assisting ANZ to deliver on its strategy and purpose. > The Board and each Board committee has its own charter setting out its roles and responsibilities available at **anz.com/corporategovernance** > More information on ANZ's governance framework is provided in the 2025 Corporate Governance Statement available at **anz.com/corporategovernance** ## Board skills and experience The Board has the collective skills, capabilities and experience needed to allow the Board to perform its role and discharge its responsibilities. The 2025 Corporate Governance Statement (refer to **anz.com/corporategovernance**) details the categories that the Board considers relevant to assessing the collective skills and experience of the Board and is what the Board is looking for in its own composition. One of the categories is sustainability, including climate. ## Our ESG governance framework Our ESG governance framework is evolving with our ESG approach and the expectations of our stakeholders. This year, the following changes have occurred relating to committees with oversight of our ESG approach and climate risks and opportunities: * The Board Ethics, Environment, Social and Governance (EESG) Committee was discontinued and its responsibilities reallocated, as appropriate, to the Board and its sub-committees. * The management Ethics and Responsible Business Committee (ERBC) was discontinued and where appropriate, matters previously considered by the ERBC are referred to the Executive Committee (ExCo).¹ * A new and more focused management Climate and Environment Committee (CEC) was established in March 2025 reporting to ExCo. ### Board of Directors | Principal Board committees | | :--- | | $\text{Search}$ Audit Committee | $\text{Add}$ Risk Committee | $\text{People}$ People and Culture Committee | $\text{Laptop}$ Digital Business and Technology Committee | $\text{Star}$ Nomination and Board Operations Committee | --- The Board and management committee structure below outlines relevant committees that have oversight of climate risks and opportunities across the Group. It reflects changes to our ESG governance structure this year with the Board committee changes effective from 5 September 2025. ### ANZ Group Holdings Limited Board | Board committees | Audit Committee | Risk Committee | People and Culture Committee | Nomination and Board Operations Committee | | :--- | :--- | :--- | :--- | :--- | | | Oversees financial reporting principles and policies, controls and procedures. | Oversees the implementation and operation of the Group's Risk Management Framework, including climate risk. Responsible for endorsing the Risk Appetite Statement. | Oversees the effective operation of the Performance and Remuneration Framework and other Talent and Culture matters. | Oversees matters to do with the proper functioning of the Board, including in relation to ongoing composition and overall Board operations. | | Key management committees | Credit and Market Risk Committee | Executive Committee | Climate and Environment Committee | | :--- | :--- | :--- | :--- | | | Primary Group management forum responsible for the oversight and control of credit, market and other material financial risks across the Group. This includes relevant climate-related financial risks. Chaired by the Chief Risk Officer. | Comprises ANZ's most senior executives. A delegations of authority framework outlines those matters delegated to the Chief Executive Officer (CEO) and other members of senior management. Chaired by the CEO. | A decision-making committee that is responsible for the execution of our Climate and Environment Strategy (C&E Strategy). This includes past, current and emerging climate and environment risks and opportunities and climate and environment targets. Chaired by the Group Executive, Institutional. (Established March 2025) | | Other management committees and forums | Climate and Environment Forum | Climate Disclosure Program Steering Committee | | :--- | :--- | :--- | | | Responsible for overseeing delivery of our C&E Strategy, and provides recommendations and escalations to the CEC, Board and other management committees. (Established February 2025) | Responsible for overseeing delivery of the Group-wide Climate Disclosure Program to meet Australian mandatory climate-related disclosure requirements. (Established October 2024) | | Key management roles | Chief Risk Officer | Group Executive, Institutional | Group General Manager, Climate | Group Head, Corporate Affairs | Chief Financial Officer | | :--- | :--- | :--- | :--- | :--- | :--- | | | Responsible for the management of the Group's risk function, including policies, systems and processes for identifying, assessing and managing risk (including climate risks). | Responsible for overseeing execution of our C&E Strategy. | Leads the Group's policy response to climate change, including supporting the implementation of the Large Emitters Engagement Program (LEEP) and setting sectoral pathway targets. | Responsible for voluntary climate and ESG disclosures and ESG governance. | Executive Sponsor for Group-wide Climate Disclosure Program and accountable for ensuring the program delivers on its objective of meeting Australian mandatory climate-related disclosure requirements applicable to ANZ from 1 October 2025. | --- ## Climate-related focus areas of Board¹ and management committees During 2025, we engaged on a range of ESG topics with our Board, senior executives, regulators, government and non-government organisations. Directors also received briefings to build knowledge in areas such as climate and nature. ### Board EESG Committee and Management ERBC and CEC Climate-related topics were discussed at four Board EESG Committee meetings (two meetings of the full Board)² and each management CEC and ERBC³ meeting. Some topics included: * C&E Strategy; * Climate-related targets including sectoral pathways; * Preparation for mandatory climate-related disclosures in Australia; and * Customer engagement on climate and nature, including LEEP. ### Board Risk Committee (BRC) and Group Management Risk Committee (Credit and Market Risk Committee (CMRC)) Climate risk content was considered at every meeting of the BRC and the CMRC, with papers on Climate Risk (as a Material Risk) as required. ## Governance over ESG and sectoral pathway targets The setting of climate targets, including sectoral pathways, is reviewed by CEC and ExCo, and approved by the Board. Targets are also monitored by ExCo and the Board. In 2025, we introduced an internal reporting mechanism for our sectoral pathways to provide more regular updates to internal stakeholders to help monitor our progress. Refer to page 32 for our sectoral pathways and Appendix 5 for the Financed and Facilitated Emissions Methodology. ### Executive remuneration ANZ's Remuneration Report within our Annual Report, available at **anz.com/annualreport**, details how performance and remuneration outcomes are determined for our most senior leaders. The CEO's Short Term Variable Remuneration (STVR) is assessed against the ANZ Group Scorecard, adjusted by the 'How' Modifier, which takes into consideration the CEO's leadership of ANZ's values and behaviours and ANZ's risk and compliance standards. Performance objectives are set for Disclosed Executives through Divisional Scorecards, aligned with the ANZ Group Scorecard. For Disclosed Executives, STVR is assessed on 'What' assessment (ANZ Group Scorecard and Divisional Scorecard) x 'How' Modifier. The weighting to Divisional Scorecards varies from 50% to 75% for Disclosed Executives. ANZ's Group Scorecard includes relevant objectives and key performance indicators (KPIs). For example, the 2025 Group Scorecard includes delivery against Environmental, Social and Governance (ESG) objectives and KPIs, such as: * **Strengthen our reputation; enhancing our employee value proposition and our social license to operate:** * Deliver environmental ESG targets as planned⁴ Divisional Scorecards also include objectives and KPIs as relevant to the particular business. Group/Divisional Scorecards are not designed to capture all of our ESG targets - however our senior leaders are accountable for ensuring we focus on and seek to adhere to our commitments and policies. ### Sectoral Pathway Transaction Escalation Process (STEP) For our material energy transactions, we apply an enhanced due diligence process, requiring review of the proposed transaction by internal senior subject matter experts. Our experts evaluate the customer's transition plan using the LEEP assessment framework (see page 12 for further details) and having regard to ANZ's Climate Change Commitment.⁵ In some instances, material energy transactions are escalated for consideration by our Group Executive Institutional, Group Chief Risk Officer and Group General Manager, Climate. Reasons for escalation vary and may include consideration of larger transactions, more significant impacts to emissions reduction pathways, reputational risk, or where ANZ has assessed a customer's transition plan as not yet in the 'Mature' phase (refer to page 13 for detail). Our approach extends beyond each lending decision to decisions relating to non-lending transactions, for certain energy customers where we consider certain capital markets activities as part of our transaction escalation processes. In 2025, we expanded our escalation process to include material lending transactions that impact our industry and transport sectoral pathways. Reflecting its expanded coverage, the process was renamed the Sectoral Pathway Transaction Escalation Process. In 2026, we intend to include certain capital markets activities for customers in-scope of our industry and transport sectoral pathways. In 2025, a total of 6 transactions were escalated to the senior executives, as mentioned above, with 1 declined and 5 approved. --- # Strategy Our vision at ANZ is to finance a sustainable transition. Our Climate and Environment Strategy (C&E Strategy) sets out our objective to be a trusted partner for our customers, supporting them to adapt and become more resilient to a changing environment and economy. In particular, we aim to be a leading bank in supporting an effective and orderly transition for our large business customers. ## Our C&E Strategy We have established three core ambitions, supported by four action pillars that bring together the themes of the steps we are taking to deliver on our ambitions. These ambitions and action pillars are supported by having specific focus areas and prioritised action plans for our Institutional, Australia Commercial, Australia Retail and New Zealand divisions that we commenced implementing aspects of this year. ```mermaid graph TD A[Vision] --> B(Financing a sustainable transition) B --> C{Ambition} C --> C1[Building our capability to help customers understand climate and nature risks] C --> C2[Transitioning our lending portfolio to net zero financed emissions] C --> C3[Supporting our customers' transition and resilience] C1 --> D1[Understanding risks and opportunities] C1 --> D2[Building capability and capacity] C2 --> E1[Driving customer engagement and propositions] C3 --> E2[Collaborating with stakeholders to support an economy wide transition] %% Link actions to ambitions (simplified) subgraph Ambitions C1 C2 C3 end subgraph Action pillars D1 D2 E1 E2 end ``` ## Our approach to transition planning In 2025, we took further steps to progress our transition planning.¹ Our C&E Strategy forms the basis for our approach, including how we plan to support an effective and orderly transition for our large business customers. We also draw on guidance from the Glasgow Financial Alliance for Net Zero (GFANZ) and the Transition Plan Taskforce (TPT) transition planning frameworks to inform areas of focus in our C&E Strategy. Refer to Appendix 1 for relevant Indexes. Our C&E Strategy ambition is supported by our Climate Change Commitment of transitioning our lending portfolio to net zero financed emissions, reflecting where we can have the most significant impact. We estimate our lending to Institutional customers contributes approximately two-thirds of our total financed emissions. The remaining financed emissions arise from our lending to our commercial and retail customers. Our Climate Change Commitment will be available prior to our Annual General Meeting at **anz.com/climate-change**.² The actions under our C&E Strategy demonstrate our progress towards credible transition planning. We acknowledge that ongoing work is required to satisfy a robust and well-developed transition plan. In this report, we set out the actions we have progressed and how we have been supporting our customers' transition. ## Our targets Our climate and environment targets support the delivery of our C&E Strategy. We continue to make progress, including funding and facilitating \$84.72 billion towards our \$100 billion target in social and environmental activities³ by 2030. Separately, eight of our revised sectoral pathways are 'on-track', two are 'close to on track', and none are 'off track'. We also recognise our role in reducing the emissions from our operations and have continued to reduce our combined Scope 1 and Scope 2 emissions across our operations.⁴ Refer to pages 10-11 for further details on our 2025 climate and environment targets and performance, including our sectoral pathways.⁵ Reflecting the upcoming mandatory climate-related disclosures in Australia and a changing internal and external operating environment - we are reviewing our climate and environment targets to ensure they continue to be relevant and aligned with our strategy. ## How we are driving our ambitions The below initiatives and activities illustrate how our actions connect to our three ambitions, supporting the progress of our C&E Strategy in actions 2025. | | Ambitions | For further information | | :--- | :--- | :--- | | Our Large Emitters Engagement Program | $\text{T\}$ $\text{Cloud}$ $\text{People}$ | Page 12 | | Supporting our customers' transition through financing | $\text{CO}_2$ | Page 16 | | Understanding nature risks and opportunities | $\text{T\}$ $\text{Cloud}$ $\text{People}$ | Page 18 | | Building our capability to help our customers understand climate and nature risks | $\text{T\}$ $\text{People}$ | Page 20 | | Collaborating with stakeholders to support the transition | $\text{T\}$ $\text{Cloud}$ $\text{People}$ | Page 21 | | Managing climate risk | $\text{T\}$ $\text{Cloud}$ | Page 22 | | Progress on our targets and metrics | $\text{T\}$ $\text{Cloud}$ $\text{People}$ | Page 10 and 30 | ### Our future focus We continue to evolve our approach to enable us to deliver our C&E Strategy ambitions. | Building our capability to help customers understand climate and nature risks | Transitioning our lending portfolio to net zero financed emissions | Supporting our customers' transition and resilience | | :--- | :--- | :--- | | Improve our understanding of how climate and nature risks and opportunities affect customers and our lending portfolio by continuing to focus on training, data and tools used to support our customer engagement. | Continue to engage with our LEEP and certain sectoral pathways customers to support our commitment to transition our lending portfolio to net zero. Continue to integrate climate risk and opportunities into policies, financing and risk decision making where relevant. | Enhance customer propositions and engagement to support our customer transition and improve their resilience. | --- # Risk management ANZ recognises Climate Risk as a Material Risk within the Group Risk Management Framework (RMF). Climate risk is also considered to be a driver of other Material Risks within our RMF. ANZ continues to integrate and embed climate risk within our RMF, which is overseen by a dedicated Climate Risk team. This is a multi-year journey, acknowledging the complexities and challenges that arise from an evolving regulatory landscape; limitations on the availability of, and access to, reliable and consistent data; and the need to uplift systems, tools, and capability across the Group. This year we focused on: * Further enhancing and embedding climate risk management requirements across the Group through our Climate Risk Standard and Non-Financial Risk Framework. * Expanding the escalation process to include material lending transactions that impact our industry and transport sectoral pathways (refer to page 7). * Enhancing our Climate Change Risk Assessment (CCRA) through exploring the use of generative artificial intelligence (refer to page 23). * Enhancing our climate scenario analysis capability, including through: * the recruitment of specialist resources; * identifying and assessing our material climate risks; and * undertaking a physical risk assessment of our Australian home loan portfolio (refer to pages 28-29). * Delivery of a Group-wide capability to undertake geospatial climate risk assessment through ANZ's Climate Risks and Opportunities Platform (CROP), initially focusing on our Australian home loan portfolio (refer to pages 28-29). ## Our Risk Management Framework The RMF comprises three key pillars, the Group Risk Management Strategy (RMS), the Group Risk Appetite Statement (RAS) and the Group Strategic Planning process, supported by Risk Principles, which helps guide risk management and foster an appropriate risk culture across the Group. Collectively the RMF helps ANZ identify, measure, evaluate, monitor, report and control or mitigate our material risks including climate risk. The RMS includes a description of climate risk, how it is governed and our approach to managing and overseeing it. The RMS also sets out our Three Lines-of-Defence model, with defined roles and responsibilities to support the management of material risks, including climate risk. Further details on our RMF, including our Three Lines-of-Defence Model, is available in the Risk Management section of our 2025 Annual Report available at **anz.com/annualreport**. The RAS includes climate risk and conveys the maximum level of risk that the Group is willing to accept. The RAS includes a high-level qualitative statement as well as quantitative metrics and tolerances that align with our policies for lending to large business customers within certain sensitive sectors. We will seek to continue to enhance our risk appetite metrics as we evolve our work on climate risk or as the external risk environment evolves. ## Our Policy Framework ### Social and Environmental Risk Policy ANZ Bank Group assesses and manages potential social and environmental impacts of our lending decisions to large business customers through the application of our Social and Environmental Risk Policy (S&E Risk Policy), Social and Environmental Risk Standard (Standards),¹ and Climate Risk Standard (Standards).²,³ The Policy and Standards apply to ANZ Bank Group, excluding Suncorp Bank.³ Our S&E Risk Policy outlines ANZ Bank Group's approach to the management and mitigation of social and environmental risks arising from large business customer activities, including the impacts of climate and nature risks. It is applied to other customers where ANZ perceives that a customer or their activities may have a material impact and is otherwise used to guide decision-making. The Social and Environmental Risk Standard provides bankers with more detail on internal requirements and the expectations we have of our large business customers, having regard to ANZ's more specific policy positions, as applicable. It includes core requirements such as consideration of human rights and the protection of culturally or environmentally sensitive areas. ANZ will not tolerate land acquisition and involuntary resettlement that we consider improper. The core requirements apply to decisions relating to large business customers, in addition to the requirements specific to sensitive sectors (listed below). * Energy Industry * Extractives Industry * Land and Forest Management * Water Management * Military Equipment More than one set of sensitive sector requirements may apply to the same customer/activity under consideration. Our Climate Risk Standard is principles-based and seeks to provide a consistent approach to identifying, assessing and managing climate risk. This includes key elements taken into consideration when making decisions that may result in actual or potential climate risks and impacts to our customers or ANZ. The Standard includes requirements relating to: * Acting in accordance with our S&E Risk Policy, C&E Strategy and Climate Change Commitment; * Identifying, assessing and managing climate risks in our lending portfolios and capital markets activity; and * Monitoring and reporting of potential climate risks and impacts to relevant forums and committees. Refer to pages 5-7 for more information on our governance structure for the oversight of climate risks and opportunities. ## Tools and processes The table below outlines examples of key tools and processes that are used within the credit process across different customer cohorts to help identify, assess and manage climate risks. | Tools | Customer Cohort | | :--- | :--- | | **Agri Viability Tool** | Small to Medium Agricultural customers within Australia Commercial division. | | **Climate Change Risk Assessment (CCRA)** | Select higher emitting customers of Institutional, including Project Finance¹ and LEEP customers. | | **Climate Variability Analysis** | Agricultural customers within Australia Commercial. | | **Social and Environmental Screening Tool** | Customers within Institutional (our large business customers). | ## Climate Scenario Analysis We recognise the importance of climate scenario analysis in helping us understand our material climate risks and opportunities¹, including the resilience of our business model and strategy. Scenario analysis also supports insights into sector and portfolio vulnerabilities and informs risk assessments, strategic planning and decision-making across different time-horizons. In 2025, we used climate scenario analysis to identify and assess the material climate risks to our business model and conducted a quantitative physical risk assessment of our Australian home loan portfolio refer to pages 28-29.² We continue to invest in resources, data and systems to mature our approach to scenario analysis. ## Identification and assessment of our material climate risks We used a combination of quantitative and qualitative factors to identify and assess the potential impacts of climate risk drivers on ANZ's business model to identify our material climate risks, including their interaction with the ANZ's material risk³ categories. This assessment was informed by external expert advice, climate scenario analysis, ANZ's existing RMF and input from more than 50 internal stakeholders across a range of functions. Judgement and assumptions were applied to support the identification and assessment of our material climate risks. These were documented through each stage of the process, where relevant, for input and validation by relevant stakeholders. To assist with maintaining an up-to-date understanding of our climate risks, we seek to update this assessment periodically. The outcomes inform our ongoing efforts to integrate and embed climate risk into ANZ's RMF and decision-making processes. Details of the process are outlined on page 25. The assessment showed the Group is exposed to climate risk either directly through its operations, or indirectly through lending to customers. Our material climate risks arise from lending to business and retail customers, contributing to credit risk. Climate risk was also identified as a driver of non-financial risk. See Potential impacts of climate risk drivers to the Group's material risk categories on pages 26-27 for further details. The impact of these climate risks may be widespread, including through second-order impacts. For example, the economic impact of a drought may extend beyond primary producers to other customers and sectors, including suppliers to the agricultural sector and businesses operating within affected communities. The sectors identified as being most affected by climate risk include agriculture, commercial and residential property and emissions intensive sectors. ## Scenario selection and time horizon Our assessment focused on ANZ's inherent risk, explored through two climate scenarios and multiple time horizons. The scenarios, selected from the Network for Greening the Financial System (NGFS), represent divergent climate pathways to help identify where our material climate risks may arise. Two NGFS scenarios were chosen as they provide comprehensive coverage of both transition and physical climate risks across economic sectors. ### NGFS Net Zero 2050 (a 1.5°C future): Represents an orderly and coordinated global response to achieving net zero emissions by 2050 and limiting warming to 1.5°C in line with the Paris Agreement. It is characterised by consistent and stringent climate policy action and rapid adoption of low emission technologies, leading to a sharp rise in global carbon prices and a transition from fossil fuels to renewables and electrification. While near-term transition costs are higher, physical climate risks are moderate due to avoided climate impacts. This scenario was selected to assess ANZ's business model exposure to high transition risk. ### NGFS Current Policies Hot House World (a >3°C future): Represents the continuation of today's climate policies without additional ambition, resulting in substantial warming above 3°C. Transition costs are lower but physical damages increase due to more frequent and severe extreme weather events. This scenario was selected to assess ANZ's business model exposure to high physical risks. ### Time horizons In defining our time horizons, we considered existing internal decision-making processes, including those relating to credit risk assessment, strategic and capital planning processes and target setting. | Time Horizon | Years | | :--- | :--- | | Short-term | 0-1 (2026) | | Medium-term | 1-5 (2030) | | Long-term | 5+ (2050) | ## Climate risk identification and assessment process ```mermaid graph TD A[Step 1. Business Model and Value Chain Mapping] --> B B(Mapped ANZ's business model and value chain (refer to page 4). Identified key financial drivers for each division within the business model. Assessed financial materiality for each division to determine the scope of the assessment.) --> C C[Step 2. Climate Risk Assessment] --> D D(Selected the appropriate climate scenarios and time horizons. Identified key physical and transition risk drivers relevant to each division and mapped these to corresponding financial drivers. Developed a methodology to assess: i) the severity of climate risks across the selected climate scenarios and time horizons, ranging from low to very high levels of change; and ii) the potential financial materiality of these risks, classified as low, medium or high. Risks identified with minimal variation or no direct climate impact were excluded from the assessment.) --> E E[Step 3. Financial Impact and Materiality Assessment] --> F F(Assessed inherent financial risks to ANZ using the methodology developed in Step 2. A risk was assessed as material if it was rated as having "high" or "very high" severity and "high" potential financial materiality. Assessed inherent non-financial risks to ANZ using ANZ's Non-Financial Risk Framework (NFR) to evaluate the likelihood and impact of each risk. These were combined using ANZ's NFR risk matrix to determine an overall consequence rating. Risks rated with "very high" consequence were considered material.) ``` ## Potential impacts of climate risk drivers to the Group's material risk categories ### Transition risk | Climate risk driver | Examples of potential impacts | ANZ Material Risk Category | ANZ Severity Rating | NGFS Net Zero 2050 | NGFS Current Policies | Division¹ Managing the risk | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Economic transition** | Impacts to customers from the shift to a lower emissions economy, including in response to the regulatory and policy environment in which the customer operates, disruption from new technology and changes in demand to lower carbon products and services. | Credit Risk | S M L | S M L | (1) (2) (3) (4) (5) (6) | We manage climate-related credit risks to our customers through the application of certain policies, tools and processes within the credit process. For further details, refer to page 23. Delivery of actions under our C&E Strategy are also expected to help support our customers' transition. | | **Climate litigation** | Increasing risk of climate-related litigation or enforcement action, which may lead to potential fines and reputational impacts. | Non-Financial Risk: Conduct Risk | S M L | S M L | (7) | We seek to manage this through transparent disclosure of our climate-related financial risks, and through risk management policies and processes. Further, we seek to manage the potential conduct risk in this context by monitoring our own legal risks and claims brought against other organisations to better understand emerging trends. | | **Stakeholder perception** | Risk of negative external stakeholder perception of ANZ's management of climate risk, including through our external commitments and ANZ's C&E Strategy, impacting reputation. | Non-Financial Risk: Conduct Risk | S M L | S M L | (7) | ANZ has a collaborative and proactive approach to building and maintaining relationships with stakeholders, including customers and shareholders. We also seek to manage this through transparent disclosure of our climate-related financial risks, and through risk management policies and processes. | | **Regulatory change** | Risk of failure to act in accordance with laws, regulations and regulatory expectations, including statutory reporting requirements in the jurisdictions in which we operate, in response to introduction of regulatory climate requirements. | Non-Financial Risk: Regulatory Risk and Statutory Reporting and Tax Risk | S M L | S M L | (7) | Climate risk is integrated into ANZ's NFR framework. Our Climate Risk team is working with teams in other jurisdictions, in which we operate, that are affected by emerging and maturing climate-related regulations, to oversee and support them in developing their approach to compliance. ANZ has a Group-wide Climate Disclosure Program in place to help us meet our Australian mandatory climate disclosure requirements. | ### Physical risk | Climate risk driver | Examples of potential impacts | ANZ Material Risk Category | ANZ Severity Rating | NGFS Net Zero 2050 | NGFS Current Policies | Division¹ Managing the risk | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Insurability** | Impacts to the affordability, availability and adequacy of insurance coverage for customers with assets exposed to climate-related physical risks, including as a result of direct impacts of extreme weather events. | Credit Risk | S M L | S M L | (1) (2) (3) (4) (5) (6) | This year, we undertook a physical risk assessment of the Australian home loan portfolio, including insurability risk. For further details, refer to page 28. | | **Asset damage** | Impacts to the value of assets held as security, as a result of direct impacts of extreme weather events. | Credit Risk | S M L | S M L | (1) (2) (3) (4) (6) | ANZ recognises the role it can play in supporting affected customers and acknowledges that this support can assist ANZ in its management of associated credit risk. For example, ANZ supports customers via our Disaster Relief Package and our relevant risk policies and frameworks. For further details, refer to page 22. | | **Business disruption** | Operational disruption, including impacts to customer productivity and revenue as a result of the occurrence of extreme weather events. | Credit Risk, Non-Financial Risk: Operational Resilience Risk and Physical Security Risk | S M L | S M L | (1) (2) (3) (5) (6) (7) | We manage this through the application of certain policies, tools and processes within the credit process. For further details, refer to page 23. Physical risks to our operations are identified, assessed, and managed through ongoing application of our NFR Framework. For example, the Group's Business Continuity and Disaster Recovery Plans are in place to support alternative banking arrangements for potential communities affected. | ## Limitations and uncertainties in our use of climate scenarios Climate scenarios include assumptions, estimates and projections that are not exact. While scenarios describe a potential future, these are not a prediction or signal to future conditions or events, and events may turn out very differently to the scenarios considered. The publicly available source scenarios and data used to identify and assess material climate risks and impacts could become out of date and different methods and assumptions in the source scenarios may create inconsistency across results. Climate risk drivers identified are also uncertain. See Appendix 4 for further information about our approach to climate scenario analysis, as well as the Disclaimer and Important Notices on page 1 for information about forward-looking statements, and the uncertainties, challenges and risks associated with climate-related information. --- # Metrics and targets ## TCFD-related metrics and industry exposures We continue to disclose our Exposure at Default (EAD)¹ against four of the key sectors identified by the TCFD to highlight potential concentrations of carbon-related assets most exposed to climate-related risks. Our overall exposure to these four emissions intensive sectors remains approximately 16% of the Group's EAD. This is consistent with 2024 and is down from approximately 17% in 2023. We are disclosing 2024 and 2025 EAD data as at 30 June, with 2023 EAD data reflecting the position as at 30 September. The 2025 data includes Suncorp Bank EAD for each sector. These sectors are: * Energy * Transportation * Materials and Buildings * Agriculture, Food and Forest Products ### EAD trends for climate exposed sectors (\$b) ```mermaid xychart-beta title "EAD trends for climate exposed sectors (\$b)" x-axis "Sector" {type: category} y-axis "EAD (\$b)" bar [2023, 2024, 2025] "Agriculture" : [44.1, 45.0, 53.6] "Energy" : [29.9, 27.4, 31.0] "Transportation" : [15.9, 15.0, 17.9] "Materials and buildings" : [103.9, 104.3, 116.6] ``` ### Subsector trends in EAD (\$b) ```mermaid xychart-beta title "Subsector trends in EAD (\$b)" x-axis "Subsector" {type: category} y-axis "EAD (\$b)" bar [2023, 2024, 2025] "Coal" : [0.9, 0.7, 0.7] "Electric utilities" : [13.5, 13.6, 19.8] "Oil and gas" : [15.5, 13.1, 10.5] ``` ### EAD breakdown for carbon exposed sectors 2025 (\$b/%) ```mermaid pie title EAD breakdown for carbon exposed sectors 2025 ($b/\%) "16% Carbon-exposed sector EAD" : 16 "84% Other sector EAD" : 84 ``` Refer to Appendix 6 for a breakdown of climate exposed sub-industries. ## Funding, facilitating and direct investments through our $100 billion target This year, we continued to make good progress towards our target to fund and facilitate at least \$100 billion by end 2030 in social and environmental activities through customer transactions and direct investments by ANZ. As at 30 September 2025, we have contributed \$84.72 billion in total towards the target since it commenced on 1 April 2023. The total comprises funding and facilitating \$81.05 billion across 412 customer transactions and directly investing \$3.67 billion through 61 labelled green, social and sustainability bond purchases held on ANZ's balance sheet.¹ This includes activities that aim to help lower emissions, protect or restore nature, increase access to affordable housing and promote financial wellbeing. This year, we exceeded our 2025 goal to contribute at least \$18.5 billion towards our target, with \$45.75 billion added across 186 customer transactions and 61 bond purchases.² This comprised: * \$21.86 billion attributed to ANZ's on-balance sheet loans and other credit lines; * \$20.22 billion facilitated by ANZ; and * \$3.67 billion via direct investments (labelled bond purchases) held on ANZ's balance sheet. In order to count towards the \$100 billion target, customer transactions and direct investments are assessed against the criteria for eligible banking activities and eligible social and/or environmental activities specified in the methodology for the target. They may include: * labelled sustainable finance; * unlabelled banking activities; and * ANZ's direct investments. Some labelled sustainable finance and unlabelled transactions detailed on pages 16-17 may not meet the above criteria and, if that is the case, are not eligible for inclusion in the target. For further detail on ANZ's approach for assessing the eligibility of customer transactions and direct investments for inclusion towards the target, refer to the ANZ Social and Environmental Sustainability Target Methodology available at **anz.com/esgreport** ### Progress towards our $100 billion social and environmental sustainability target – 1 April 2023 to 30 September 2025 **Funded \$42.09 billion³** * 40.32% Sustainability-Linked⁴: \$16.97b * 1.35% Social and Environmental: \$0.57b * 48.37% Environmental: \$1.93b Clean Transport, \$8.83b Energy, \$7.95b Green building, \$1.55b Other environment * 8.51% Social⁶: \$2.04b Affordable housing, \$1.54b Other social * 1.45% Sustainability-Linked and Environmental: \$0.61b **Facilitated \$38.96 billion** * 14.93% Social and Environmental: \$5.82b Other social and environment * 51.22% Environmental: \$1.49b Clean Transport, \$10.72b Energy, \$4.35b Other environment, \$3.40b Green building⁷ * 5.94% Social⁸: \$0.20b Affordable housing, \$2.12b Other social * 27.90% Sustainability-Linked⁴: \$10.87b **Direct investments \$3.67 billion** * \$0.73b Green * \$0.47b Social * \$2.47b Sustainability This year we supported Intellihub with approximately \$3 billion in Green Loans to continue its roll out of smart meter, solar, battery, EV charging and swimming pool efficiency technology. Certified by the Climate Bond Initiative, this was the fourth syndicated Green Loan for Intellihub since 2021. ANZ acted as Green Loan Coordinator and Agent for all four loans. ## Nature-related financing We expect the nature finance market to develop over the short to medium term, as global sustainable finance taxonomies, nature impact and dependency frameworks, guidance and standardised metrics evolve. This is demonstrated through the release of the Australian Sustainable Finance Taxonomy this year which encourages nature-positive investments. This year, Endeavour Energy secured \$2.07 billion in financing through a Sustainability-Linked Loan (SLL), aligned with the Asia Pacific Loan Market Association's SLL Principles. Key performance indicators include Scope 1 and Scope 2 emissions reduction, operational waste diversion from landfill, and net habitat gain, with a new Scope 3 emissions target also introduced. ANZ acted as Joint Sustainability Coordinator, Lender, and Mandated Lead Arranger and Bookrunner. ## Other targets | Target | Baseline | Target year | Performance | Page # | | :--- | :--- | :--- | :--- | :--- | | Operational emissions and non-emissions | Reducing combined Scope 1 and Scope 2 emissions by 85% | 2015 | 2025 (96%) | 52 | | | Reducing combined Scope 1 and Scope 2 emissions by 90% | 2015 | 2030 (96%) | | | | Being powered by the equivalent of 100% renewable electricity | N/A | 2025 97% | | | | Reducing waste to landfill by 40% | 2017 | 2025 (79%) | | | | Reducing water consumption by 40% | 2017 | 2025 (61%) | | | | Reducing paper consumption (office and ANZ originated customer paper use) by 70% | 2015 | 2025 (77%) | | | Revised operational emissions | Reducing combined Scope 1 and Scope 2 emissions by 85%² | 2024 | 2030 | Performance to be reported in 2026 | 53 | | Agribusiness data coverage cohort | Data coverage target to seek the disclosure of Scope 1 and Scope 2 emissions at a standard equivalent to the 'Australian National Greenhouse Account Factors' by 100% of the Agribusiness data coverage cohort. | N/A | 2027 61% | 49 | ### Other metrics | Metric | Page # | | :--- | :--- | | Australian residential home loans | 48 | | Operational emissions | 52 | --- # Our targets and performance ## Sectoral pathways¹ | Value chain coverage | 2030 interim target | Baseline year | Performance against Pathway | Page # | | :--- | :--- | :--- | :--- | :--- | | **Power generation** | Generation | 54% reduction in emissions intensity | 2020 | On-track | 34 | | **Oil and gas** | Upstream Midstream & downstream (integrated companies only) | 32% reduction in absolute emissions | 2020 | On-track | 36 | | **Thermal coal** | Mining | 100% reduction in absolute emissions | 2020 | On-track | 38 | | **Auto manufacturing** | Light duty passenger vehicle manufacturers | 18-33% reduction in emissions intensity | 2022 | On-track | 40 | | **Aviation** | Commercial passenger transport | 16-26% reduction in emissions intensity | 2019 | Close to on-track | 41 | | **Shipping** | Shipping operators | 23-30% reduction in emissions intensity | 2022 | Close to on-track | 42 | | **Aluminium** | Alumina refining and smelting | 17-30% reduction in emissions intensity | 2021 | On-track | 43 | | **Cement** | Production | 13-25% reduction in emissions intensity | 2021 | On-track | 44 | | **Steel** | Production | 11-22% reduction in emissions intensity | 2021 | On-track | 45 | | **Australian large-scale commercial real estate** | Owners | 60% reduction in emissions intensity (office buildings and shopping centres) | 2019 | On-track | 46 | * **On-track** - On or below pathway or range ($\le 0\%$) * **Close to on-track** - $>0\%$ to $\le +10\%$ above the pathway or range * **Off track** - $>+10\%$ above the pathway or range ## $100b Social and Environmental Sustainability Target | Target | Baseline | Target year | Performance | Page # | | :--- | :--- | :--- | :--- | :--- | | **\$100 billion** | Fund and facilitate at least \$100 billion in social and environmental activities through customer transactions and direct investments. | 1 April 2023 (commencement) | 2030 | \$84.72 billion | 31 | ## Large Emitters Engagement Program | Target | Baseline | Target year | Performance | Page # | | :--- | :--- | :--- | :--- | :--- | | **Large Emitters Engagement Program (LEEP)** | Enhance our management of climate risks and opportunities by intensifying our engagement with our largest emitting business customers. We will expect and encourage them to strengthen their low carbon transition plans, by focusing our engagement and raised expectations on our 100 largest emitting business customers with the aim that by end 2025, compared to their starting point more customers are assessed as being in a 'Mature' phase of their low carbon transition plans. | 2024 | 2025 | Achieved, 45 customers were assessed as being in a 'Mature' phase of their low carbon transition plans, up from 42 in 2024.¹ | 12 | ## Other targets | Target | Baseline | Target year | Performance | Page # | | :--- | :--- | :--- | :--- | :--- | | **Operational emissions and non-emissions** | Reducing combined Scope 1 and Scope 2 emissions by 85% | 2015 | 2025 (96%) | 52 | | | Reducing combined Scope 1 and Scope 2 emissions by 90% | 2015 | 2030 (96%) | | | | Being powered by the equivalent of 100% renewable electricity | N/A | 2025 97% | | | | Reducing waste to landfill by 40% | 2017 | 2025 (79%) | | | | Reducing water consumption by 40% | 2017 | 2025 (61%) | | | | Reducing paper consumption (office and ANZ originated customer paper use) by 70% | 2015 | 2025 (77%) | | | **Revised operational emissions** | Reducing combined Scope 1 and Scope 2 emissions by 85%² | 2024 | 2030 | Performance to be reported in 2026 | 53 | | **Agribusiness data coverage cohort** | Data coverage target to seek the disclosure of Scope 1 and Scope 2 emissions at a standard equivalent to the 'Australian National Greenhouse Account Factors' by 100% of the Agribusiness data coverage cohort. | N/A | 2027 61% | 49 | ## Other metrics | Metric | Page # | | :--- | :--- | | Australian residential home loans | 48 | | Operational emissions | 52 | --- # Energy ## Power Generation **Targeting a 54% reduction in emissions intensity by 2030¹** | Target Baseline | Emissions Scope 1 | Scenario IEA WEO NZE (2024)² | EAD as at 30 June 2025 | % Group EAD | Status | Performance vs pathway (33%) | Performance vs baseline (51%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | | | \$14.1b | 1.03% | On-track | | | ### Graph 1.1: Performance ```mermaid xychart-beta title "Graph 1.1: Performance" x-axis "Year" {type: category, categories: [2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "GHG intensity (kg CO₂-e/MWh)" line "2030 target pathway (54% reduction)" : [458, 449, 438, 425, 412, 399, 386, 373, 360, 347, 334] line "Global average emissions intensity" : [458, 458, 458, 458, 458, 458, 458, 458, 458, 458, 458] line "Actual performance against our target" : [500, 410, 300, 250, 156, 120] ``` ### Graph 1.2: Emissions intensity movements GHG intensity (kgCO₂-e/MWh) ```mermaid xychart-beta title "Graph 1.2: Emissions intensity movements" x-axis "Movement" {type: category} y-axis "GHG intensity (kgCO2-e/MWh)" bar [] "ANZ 2024 climate performance" : [156] "Portfolio change Increase" : [0] "Portfolio change Decrease" : [2.7] "Total" : [156] "ANZ 2025 climate performance" : [120] ``` *(Note: The provided data points in Graph 1.2 structure are inconsistent with a standard bar chart representation, so the mermaid chart above is a simplified interpretation based on the text numbers: 156 (ANZ 2024), (2.7) Decrease, Total (implied change from 156 to 120 is -36, but text shows (32.8) Decrease, Total 120 for ANZ 2025). Using the explicit numbers provided next to the graph for 2024 and 2025 performance).* The emissions intensity of our in-scope power generation customers has decreased by 51% from our 2020 baseline to 120 kgCO₂-e/MWh. This is below the 2023 global average of 458 kgCO₂-e/MWh.³ We are on-track to meet our 2030 target of reducing the emissions intensity of our pathway portfolio by 54%.¹ As at 30 June 2025, 84% of our in-scope EAD to the power generation pathway portfolio financed generation from renewables and other lower-emissions energy sources (Graph 1.4). This is a 16-percentage point increase since 2020 with \$11.9 billion of our in-scope EAD financing renewable and other lower-emissions energy production, which includes nuclear and waste-to-energy projects. The net \$6.7 billion growth in our in-scope power generation EAD since 2020 has primarily financed customers that generate electricity from renewable and other lower-emission energy sources, while our in-scope EAD to customers generating electricity from fossil fuels reduced by more than \$167m over the same period. ### Graph 1.3: Breakdown of ANZ's power generation pathway EAD ### Graph 1.4: ANZ pathway EAD to electricity generation fuel and technologies ```mermaid xychart-beta title "Graph 1.4: ANZ pathway EAD to electricity generation fuel and technologies" x-axis "EAD (\$b)" {type: category} y-axis "ANZ exposure (EAD) (\$b)" bar [2023, 2024, 2025] "Fossil fuels - Coal" : [0.9, 0.7, 0.7] "Fossil fuels - Oil" : [0.0, 0.0, 0.0] "Fossil fuels - Gas" : [1.5, 1.3, 1.0] "Other low emissions - Fossil fuels related" : [0.1, 0.0, 0.0] "Other low emissions - Biomass" : [0.0, 0.0, 0.0] "Other low emissions - Bioenergy" : [0.1, 0.1, 0.1] "Other low emissions - Nuclear power" : [0.0, 0.0, 0.0] "Other low emissions - Waste-to-energy" : [0.0, 0.0, 0.0] "Renewables - Wind" : [1.9, 2.2, 3.8] "Renewables - Solar" : [1.1, 1.4, 3.0] "Renewables - Geothermal" : [0.0, 0.0, 0.0] "Renewables - Hydropower" : [0.0, 0.0, 0.0] "Renewables - Ocean power" : [0.0, 0.0, 0.0] "Renewables - Power storage" : [0.0, 0.0, 0.0] ``` *(Note: The provided Graph 1.4 structure is highly detailed; the mermaid chart above is a conceptual mapping of the categories shown.)* ## How is ANZ supporting the transition? * **Customer engagement via our LEEP** As at 30 June 2025, 18 customers contributing 21% of EAD and 84% of the debt-weighted financed and facilitated emissions intensity of our power generation pathway were captured within our LEEP. Refer to page 12 for more details on the program including how we select LEEP customers. * **Prioritisation of customers with lower emissions assets, stronger emissions reduction targets and/or diversification strategies** % EAD of power generation customers in-scope for financed emissions that have set interim emissions reduction targets¹: 78% % EAD of power generation customers in-scope for financed emissions that have publicly committed to net zero 2050¹: 77% * **Specific policies in place to steer our lending decisions** We will: * Not directly finance any new coal-fired power plants, expansions of existing coal-fired power plants or extensions to operating life. Existing direct financing to coal-fired power generation will run off by 30 September 2030.²,³ * Continue to support existing diversified customers but will not provide lending to new customers that derive more than 10% revenue, installed capacity or power generation from thermal coal.³ * Engage with existing large business customers who have more than 35%⁴ thermal coal exposure by revenue, installed capacity or power generation to support diversification plans. Refer to page 12 for further detail on LEEP. * **Potential options for our customers to reduce their emissions** * Increase in renewable energy capacity. * Investment in enabling infrastructure and technology, such as transmission/distribution networks and energy storage. * Energy efficiency improvements. --- # Energy ## Oil and Gas **Targeting a 32% reduction in absolute financed and facilitated emissions by 2030¹** | Target Baseline | Emissions Scope 1, 2 and 3 (category 11 only) | Scenario IEA WEO NZE (2024)² | EAD as at 30 June 2025 | % Group EAD | Status | Performance vs pathway (55%) | Performance vs baseline (62%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | | | \$4.3b | 0.32% | On-track | | | ### Graph 2.1: Performance ```mermaid xychart-beta title "Graph 2.1: Performance" x-axis "Year" {type: category, categories: [2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "ANZ financed and facilitated emissions (MtCO2-e)" line "2030 target pathway (32% reduction)" : [13.9, 13.4, 12.9, 12.4, 11.9, 11.4, 10.9, 10.4, 9.9, 9.4, 8.9] line "Global average emissions intensity" : [13.9, 13.9, 13.9, 13.9, 13.9, 13.9, 13.9, 13.9, 13.9, 13.9, 13.9] line "Actual performance against our target" : [13.9, 10.0, 8.0, 6.1, 5.3, 5.24] ``` ### Graph 2.2: Absolute emissions movements GHG emissions (MtCO₂-e) ```mermaid xychart-beta title "Graph 2.2: Absolute emissions movements" x-axis "Movement" {type: category} y-axis "GHG emissions (MtCO2-e)" bar [] "ANZ 2024 climate performance" : [8.06] "Portfolio change Increase" : [0.06] "Portfolio change Decrease" : [2.77] "Total" : [5.24] "ANZ 2025 climate performance" : [5.24] ``` The absolute emissions of our in-scope oil and gas customers has decreased by 62% from our 2020 baseline to 5.24 MtCO₂-e. We remain below our pathway reduction target and are on-track to meet our 2030 target of reducing the absolute emissions of our pathway portfolio by 32%.¹ Our EAD to oil and gas customers in-scope for financed emissions declined by \$1.6 billion from the prior year and \$5.9 billion since September 2020.⁵ This reduction is partially due to actions we have taken to reduce our exposure to customers who have less mature transition plans. Around \$2.3 billion of this decline since 2020 was associated with independent oil and gas companies whose activities are focused on the upstream segment of the oil and gas value chain (Graph 2.3). In 2023, we set an additional target to reduce our Group EAD to oil and gas extraction customers³ by 40% by 30 September 2025 from a 2020 baseline.⁴ We have successfully met this target, having reduced our EAD by 56%⁵ as at 30 September 2025.⁶ ### Graph 2.3: Breakdown of ANZ's oil and gas pathway EAD ## How is ANZ supporting the transition? * **Customer engagement via our LEEP** As at 30 June 2025, 13 customers contributing 88% of EAD and 89% of the absolute financed and facilitated emissions of our oil and gas pathway were captured within our LEEP. Refer to page 12 for more details on the program including how we select LEEP customers. * **Prioritisation of customers with lower emissions assets, stronger emissions reduction targets and/or diversification strategies** % EAD of oil and gas customers in-scope for financed emissions that have set interim emissions reduction targets¹: * Scope 1 and Scope 2: 93% * Scope 3: 45% % EAD of oil and gas customers in-scope for financed emissions that have publicly committed to net zero 2050¹: * Scope 1 and Scope 2: 88% * Scope 3: 45% * **Specific policies in place to steer our lending decisions** Gas helps firm renewables², assists the exit of thermal coal and is a critical feedstock for the industrial, manufacturing and agricultural sectors. We continue to assess the role of gas within the context of the broader energy market, public policy developments, and stakeholder and shareholder expectations. We will: * Not directly finance new or expansion upstream gas projects (including new liquefied natural gas (LNG) liquefaction plants, floating production storage and dedicated offloading infrastructure); and * Not on board any new to bank upstream gas customers. Should national energy security issues arise and our assistance is sought, we will consider exceptions on a case-by-case basis. * **Potential options for our customers to reduce their emissions** * **Scope 1 and Scope 2 emissions** * Minimise methane leaks through leak detection and repair programs and upgrading leaky equipment.³ * Avoidance of non-emergency flaring and venting. * Electrification of upstream operations. * Carbon capture, utilisation and storage (CCUS). * **Scope 3 emissions** * Reducing the amount of oil and gas sold. * Reweighting overall production to natural gas. * Supporting the use of CCUS by their customers. --- # Energy ## Thermal Coal **Targeting a 100% reduction in absolute financed and facilitated emissions by 2030** | Target Baseline | Emissions Scope 1, 2 and 3 (category 11 only) | Scenario IEA WEO NZE (2024)¹ | EAD as at 30 June 2025 | % Group EAD | Status | Performance vs pathway (92%) | Performance vs baseline (96%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | | | \$0.10b | 0.01% | On-track | | | ### Graph 3.1: Performance ```mermaid xychart-beta title "Graph 3.1: Performance" x-axis "Year" {type: category, categories: [2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "Absolute financed and facilitated emissions (MtCO2-e)" line "2030 target pathway (100% reduction)" : [9.0, 8.1, 7.2, 6.3, 5.4, 4.5, 3.6, 2.7, 1.8, 0.9, 0.0] line "Actual performance against our target" : [9.0, 5.0, 3.0, 1.0, 0.38, 0.26, 0.10, 0.35] ``` ### Graph 3.2: Absolute emissions movements GHG emissions (MtCO₂-e) ```mermaid xychart-beta title "Graph 3.2: Absolute emissions movements" x-axis "Movement" {type: category} y-axis "GHG emissions (MtCO2-e)" bar [] "ANZ 2024 climate performance" : [0.26] "Portfolio change Increase" : [-0.01] "Portfolio change Decrease" : [0.01] "Total" : [0.35] "ANZ 2025 climate performance" : [0.10] ``` The absolute emissions of our in-scope thermal coal customers has decreased by 96% from our 2020 baseline to 0.35 MtCO₂-e. We remain on-track to exit our exposures (subject to limited exceptions²) to thermal coal mining ahead of our 2030 target. A small number of customers (less than 10) make up our exposures within this pathway. The remaining direct exposures are largely attributable to existing customers with mining rehabilitation bonds to enable them to fulfil their responsibilities relating to rehabilitation and exiting of mine sites. Given the small remaining exposure to in-scope thermal coal mining customers, the financed emissions of our thermal coal pathway will be sensitive to minor customer movements as we continue to wind down support to thermal coal miners. We continue to have other indirect exposures to thermal coal, through metallurgical coal miners and diversified mining customers that produce thermal coal. Some of these customers are among the world's largest producers of transition metals and minerals. These exposures are not within scope of the pathway. Further, facilitated emissions from capital markets activities for customers outside of our thermal coal pathway are not included. We will continue to provide finance to and to facilitate, through capital markets activities, metallurgical coal miners and diversified miners, subject to our policies. In 2023, applying the same EAD criteria and threshold as our pathway at that time, we quantified the breakdown of our financed emissions to each customer type, shown in Table 3.3 on page 39. ## How is ANZ supporting the transition? * **Customer engagement via our LEEP** As at 30 June 2025, customers contributing 39% of EAD and 21% of the absolute financed and facilitated emissions of our thermal coal pathway were captured within our LEEP. Refer to page 12 for more details on the program including how we select LEEP customers. * **Specific policies in place to steer our lending decisions** We will: * Not provide lending¹ to new to bank extractives customers² that derive more than 10% revenue from thermal coal mining. * Not directly finance any new thermal coal mine, or expansions or extensions to the operating life of existing mines. In each case, this refers to mines with production or reserves greater than 35% thermal coal. Existing lending will run off by 2030.⁴ * Engage with existing large business customers that have more than 35%⁵ thermal coal exposure by revenue to support diversification plans. * **Potential options for our customers to reduce their emissions** While our emissions reduction target is to reduce our financed and facilitated emissions to in-scope pathway customers by 100% by 2030 from a 2020 baseline, there are still actions that mining companies that produce thermal coal can take to reduce their Scope 1 and Scope 2 emissions, including: * Reducing fugitive coal mine methane emissions. * Use of biofuels and electric powered alternatives to replace diesel use in mining equipment. * Renewable energy investments. --- # Industry ## Aluminium **Targeting a 17-30% reduction in emissions intensity by 2030¹** | Target Baseline | Emissions Scope 1 and 2 | Scenario IAI 1.5°C and IAI B2DS² | EAD as at 30 June 2025 | % Group EAD | Status | Performance vs pathway (7%) | Performance vs baseline (14%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 | | | \$0.46b | 0.03% | On-track | | | ### Graph 7.1: Performance ```mermaid xychart-beta title "Graph 7.1: Performance" x-axis "Year" {type: category, categories: [2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "GHG intensity (tCO2-e/t aluminium)" line "2030 target pathway (17% to 30% reduction)" : [8.31, 7.98, 7.65, 7.32, 7.00, 6.67, 6.35, 6.02, 5.70, 5.37] line "Global average emissions intensity" : [9.47, 9.47, 9.47, 9.47, 9.47, 9.47, 9.47, 9.47, 9.47, 9.47] line "Actual performance against our target" : [8.31, 7.5, 6.5, 5.88] ``` ### Graph 7.2: Emissions intensity movements GHG intensity (tCO₂-e/t aluminium) ```mermaid xychart-beta title "Graph 7.2: Emissions intensity movements" x-axis "Movement" {type: category} y-axis "GHG intensity (tCO2-e/t aluminium)" bar [] "ANZ 2024 climate performance" : [8.31] "Portfolio change Increase" : [0.39] "Portfolio change Decrease" : [2.04] "Total" : [5.88] "ANZ 2025 climate performance" : [5.88] ``` The emissions intensity of our in-scope aluminium customers has decreased by 14% from our 2021 baseline to 5.88 tCO₂-e/t aluminium. This is below the 2024 global average of 9.47 tCO₂-e/t aluminium (primary and secondary production).⁴,⁵ We are on-track to meet our 2030 target of reducing the emissions intensity of our pathway portfolio by 17-30%.¹ A small number of customers (fewer than 10) make up our exposure in this pathway. Previously, we relied on company level data where asset level data was unavailable. We now use asset level third party data. This change results in a worsening of our data quality score however it better reflects the emissions intensity of our finance. ## How is ANZ supporting the transition? * **Customer engagement via our LEEP** As at 30 June 2025, customers contributing 100% of EAD and 100% of the debt-weighted financed and facilitated emissions intensity of our aluminium pathway were captured within our LEEP. Refer to page 12 for more details on the program including how we select LEEP customers. * **Prioritisation of customers with lower emissions assets, stronger emissions reduction targets and/or diversification strategies** % EAD of aluminium customers in-scope for financed emissions that have set interim emissions reduction targets: 100% % EAD of aluminium customers in-scope for financed emissions that have publicly committed to net zero by 2050: 91% * **Potential options for our customers to reduce their emissions** * Decarbonisation of electricity supply used in aluminium production. * Limiting the use of aluminium in final products via 'lightweighting' and efficiency in design. * Investment in the commercialisation of currently expensive technologies such as carbon-free anodes. * Increased secondary production of aluminium via electric arc furnace⁶, noting this is limited by scrap availability. --- # Industry ## Cement **Targeting a 13-25% reduction in emissions intensity by 2030¹** | Target Baseline | Emissions Scope 1 and 2 | Scenario IEA WEO NZE and APS (2024)² | EAD as at 30 June 2025 | % Group EAD | Status | Performance vs pathway (1%) | Performance vs baseline (7%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 | | | \$0.18b | 0.01% | On-track | | | ### Graph 8.1: Performance ```mermaid xychart-beta title "Graph 8.1: Performance" x-axis "Year" {type: category, categories: [2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "GHG intensity (tCO2-e/t cement)" line "2030 target pathway (13% to 25% reduction)" : [0.66, 0.63, 0.60, 0.57, 0.54, 0.51, 0.48, 0.45, 0.42, 0.39] line "Global average emissions intensity" : [0.66, 0.66, 0.66, 0.66, 0.66, 0.66, 0.66, 0.66, 0.66, 0.66] line "Actual performance against our target" : [0.66, 0.65, 0.62, 0.62] ``` ### Graph 8.2: Emissions intensity movements GHG intensity (tCO₂-e/t cement) ```mermaid xychart-beta title "Graph 8.2: Emissions intensity movements" x-axis "Movement" {type: category} y-axis "GHG intensity (tCO2-e/t cement)" bar [] "ANZ 2024 climate performance" : [0.62] "Portfolio change Increase" : [0.02] "Portfolio change Decrease" : [0.02] "Total" : [0.62] "ANZ 2025 climate performance" : [0.62] ``` The emissions intensity of our in-scope cement customers has decreased by 7% from our 2021 baseline to 0.62 tCO₂-e/t cement. This is below the 2024 global average of 0.66 tCO₂-e/t cement.⁴ We are on-track to meet our 2030 target of reducing the emissions intensity of our pathway portfolio by between 13-25%.¹ A small number of customers (fewer than 10) make up our exposure in this pathway. The limited availability of cost-effective technologies to reduce hard-to-abate emissions of cement production provides greater uncertainty in the pathway towards our target, relative to other sectors. However, customer engagements to date have been positive, indicating that the sector is investing in research and development of decarbonisation initiatives. ## How is ANZ supporting the transition? * **Customer engagement via our LEEP** As at 30 June 2025, customers contributing 100% of EAD and 100% of the debt-weighted financed and facilitated emissions intensity of our cement pathway were captured within our LEEP. Refer to page 12 for more details on the program including how we select LEEP customers. * **Prioritisation of customers with lower emissions assets, stronger emissions reduction targets and/or diversification strategies** % EAD of cement customers in-scope for financed emissions that have set interim emissions reduction targets: 100% % EAD of cement customers in-scope for financed emissions that have publicly committed to net zero by 2050: 45% * **Potential options for our customers to reduce their emissions** * Substituting clinkers for supplementary cementitious materials (e.g., fly ash granulated slag, limestone, and calcined clay). * Alternate fuels for kilns (e.g., biomass instead of fossil fuels). * Decarbonisation of electricity supply. * Plant and end-user efficiencies. * CCUS technologies.⁷ --- # Industry ## Steel **Targeting a 11-22% reduction in emissions intensity by 2030¹** | Target Baseline | Emissions Scope 1 and 2 | Scenario IEA WEO NZE and APS (2024)² | EAD as at 30 June 2025 | % Group EAD | Status | Performance vs pathway (17%) | Performance vs baseline (21%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 | | | \$0.67b | 0.05% | On-track | | | ### Graph 9.1: Performance ```mermaid xychart-beta title "Graph 9.1: Performance" x-axis "Year" {type: category, categories: [2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "GHG intensity (tCO2-e/t steel)" line "2030 target pathway (11% to 22% reduction)" : [2.10, 1.97, 1.84, 1.71, 1.58, 1.45, 1.32, 1.19, 1.06, 0.93] line "Global average emissions intensity" : [2.04, 2.04, 2.04, 2.04, 2.04, 2.04, 2.04, 2.04, 2.04, 2.04] line "Actual performance against our target" : [2.10, 2.00, 1.93, 1.66] ``` ### Graph 9.2: Emissions intensity movements GHG intensity (tCO₂-e/t steel) ```mermaid xychart-beta title "Graph 9.2: Emissions intensity movements" x-axis "Movement" {type: category} y-axis "GHG intensity (tCO2-e/t steel)" bar [] "ANZ 2024 climate performance" : [1.93] "Portfolio change Increase" : [0.02] "Portfolio change Decrease" : [0.25] "Total" : [1.66] "ANZ 2025 climate performance" : [1.66] ``` The emissions intensity of our in-scope steel customers has decreased by 21% from our 2021 baseline to 1.66 tCO₂-e/t steel. This is below the 2024 global average of 2.04 tCO₂-e/t steel.³ We are on-track to meet our 2030 target of reducing the emissions intensity of our pathway portfolio by 11-22%.¹ A small number of customers (fewer than 10) make up our exposure in this pathway. Given the significant technological advances required to enable commercialisation of lower emissions steel making, the decarbonisation of the steel sector will likely be slow moving. However, we are seeing adoption of efficiency measures and investment into research and development in the steel sector, including by some of our customers. ## Metallurgical Coal As at 30 June 2025, our EAD to metallurgical (coking) coal mining (ANZSIC code 1101) was \$0.51 billion.⁴ We acknowledge that there are no readily available and commercially viable substitutes for the use of metallurgical coal in steel production at-scale. We continue to support our metallurgical coal mining customers. There are several metallurgical coal customers included in our LEEP, and we are engaging with those LEEP customers to encourage them to strengthen their low carbon transition plans. ## How is ANZ supporting the transition? * **Customer engagement via our LEEP** As at 30 June 2025, customers contributing 85% of EAD and 92% of the debt-weighted financed and facilitated emissions intensity of our steel pathway were captured within our LEEP. Refer to page 12 for more details on the program including how we select LEEP customers. * **Prioritisation of customers with lower emissions assets, stronger emissions reduction targets and/or diversification strategies** % EAD of steel customers in-scope for financed emissions that have set interim emissions reduction targets: 87% % EAD of steel customers in-scope for financed emissions that have publicly committed to net zero by 2050: 100% * **Potential options for our customers to reduce their emissions** * Decarbonisation of electricity supply, combined with Electric Smelting Furnace and Electric Arc Furnace technologies. * Direct-reduced iron and utilisation of low-grade ores. * Plant and end-user efficiencies. * CCUS technologies. --- # Buildings ## Australian large-scale commercial real estate **Targeting a 60% reduction in emissions intensity by 2030 – office buildings and shopping centres¹** | Target Baseline | Emissions Scope 1 and 2 | Scenario IEA B2D² | Status | EAD as at 30 June 2025 | Performance vs pathway | Performance vs baseline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2019 | from building operational energy use Scope 3 category 3 - fuel and energy related emissions | | On-track | Current metric is not tied to our lending | Offices (60%) Shopping centres (36%) | Offices (73%) Shopping centres (57%) | ### Graph 10.1: Performance (Offices) ```mermaid xychart-beta title "Graph 10.1: Performance (Offices)" x-axis "Year" {type: category, categories: [2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "GHG intensity (kgCO2-e/m² NLA)" line "2030 target pathway (60% reduction)" : [80.21, 72.19, 64.17, 56.15, 48.13, 40.11, 32.09, 32.09, 32.09, 32.09, 32.09, 32.09] line "Actual performance against our target" : [80.21, 75.0, 65.0, 55.0, 45.0, 35.0, 21.52] ``` ### Graph 10.2: Performance (Shopping centres) ```mermaid xychart-beta title "Graph 10.2: Performance (Shopping centres)" x-axis "Year" {type: category, categories: [2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030]} y-axis "GHG intensity (kg CO₂-e/m² NLA)" line "2030 target pathway (60% reduction)" : [89.75, 80.78, 71.80, 62.83, 53.85, 44.88, 35.90, 35.90, 35.90, 35.90, 35.90, 35.90] line "Actual performance against our target" : [89.75, 80.0, 70.0, 60.0, 50.0, 40.0, 38.43] ``` The emissions intensity of our in-scope Australian large-scale commercial real estate (CRE) customers' office buildings has decreased by 73% from our 2019 baseline to 21.52 kgCO₂-e/m² NLA. This is below the 2025 Australian average of 40.51 kgCO₂-e/m² NLA.³ Similarly, the emissions intensity of our in-scope CRE customers' shopping centres has decreased by 57% from our 2019 baseline to 38.43 kgCO₂-e/m² NLA. This is below the 2025 Australian average of 39.92 kgCO₂-e/m² NLA.³ We are on-track to meet our 2030 target of reducing the emissions intensity of our pathway portfolio by 60%. Our current CRE target does not directly reflect ANZ's financial exposures as they relate to customers' emissions. Rather, we calculate emissions intensity using the combined net lettable area (NLA) of all office buildings and shopping centres that are owned or operated by our in-scope customers. Our target also excludes some emissions arising from energy use in building tenancies, or emissions embodied in building materials. Limitations on the availability of data in the sector has impacted the review of our CRE sectoral pathway approach, including exploring the potential use of alternative reference scenarios. We may consider adjusting our approach as the availability of data increases. ## How is ANZ supporting the transition? * **Customer engagement via our LEEP** As at 30 June 2025, 5 of our CRE pathway customers were captured within our LEEP. Refer to page 12 for details on the program including how we select LEEP customers. * **Specific policies in place to steer our lending decisions** * ANZ will only finance the construction of new large-scale office buildings¹ if they achieve an 'as designed'² NABERS energy rating of at least 5 stars³ (or equivalent international rating). * **Potential options for our customers to reduce their emissions** * Electrification and transition to lower emissions electricity sources. * Implementing energy efficiency measures. --- # Other metrics ## Australian residential home loans ### Graph 11.1: Australian residential home loan portfolio emissions intensity¹ ```mermaid xychart-beta title "Graph 11.1: Australian residential home loan portfolio emissions intensity¹" x-axis "Year" {type: category, categories: [2023, 2024, 2025]} y-axis "Emissions per dwelling (tCO2-e)" bar [Electricity, LPG, Gas, National average] "2023" : [2.5, 1.0, 1.5, 4.64] "2024" : [2.4, 0.9, 1.4, 4.5] "2025" : [2.3, 0.8, 1.0, 4.10] ``` | Outstanding loans² at 30 June 2025 | 2025 emissions intensity (tCO₂-e per dwelling) | | :--- | :--- | | \$371.58b | 4.10 | **Emissions included** * Scope 1 and 2 * Natural gas and liquified petroleum gas (LPG) & electricity use sourced from grid The emissions intensity of our Australian residential home loan portfolio in 2025 was 4.10 tCO₂-e per dwelling, 4% below 2024. This is slightly lower than the Australian average emissions intensity of 4.64 tCO₂-e per dwelling. Suncorp Bank is included within scope. Our emissions intensity calculation utilises an outstanding loans balance that is not indicative of ANZ's entire Australian Residential Home Loan book. Refer to our Financed and Facilitated Emissions Methodology in Appendix 5 for further details on applicable eligibility criteria. ANZ has not committed to an emissions target for its Australian residential home loan portfolio. We project that the emissions intensity of ANZ's Australian residential home loan portfolio would need to reduce by at least 53% by 2030³ (from 2023) to align with the goal to limit global warming to 1.5°C above pre-industrial levels. This reduction to our portfolio emissions is unlikely to be linear considering our customers' Scope 2 emissions profile from home energy use is significant. In Australia, this is mostly influenced by the electricity grid's reliance on coal-fired generation. However, as power stations are gradually replaced by lower emitting sources of generation, we expect that there will be reductions in the emissions intensity of electricity supplied to our customers' homes. See the power generation section on page 34 for details on ANZ's role in financing renewable electricity generation. In 2025, we supported customers through our participation in the Australian Government's trial of the Nationwide House Energy Rating Scheme (NatHERS) for existing homes. The trial provides select ANZ customers the opportunity to identify energy efficiencies and cost-savings for their property through a free physical evaluation and home energy rating trial certificate.⁴ We have also progressed customer education programs through the Forgotten Fuel series, created in partnership with the Energy Efficiency Council. It presents practical steps Australians can take to improve the energy efficiency of their homes and the financial benefits of making households more sustainable.⁵ ## Potential opportunities for emissions reduction in the sector * **ANZ** * Supporting the higher penetration of renewable and other lower emissions sources of electricity in Australia through our lending and facilitation activities in the debt capital markets. * Continuing to provide financing to build new homes and explore potential opportunities to support the retrofitting of existing homes to improve energy efficiency. * **Governments and regulatory bodies** * Facilitating the increased penetration of renewables into Australia's electricity grids and improving the energy efficiency of homes through policy developments. * **Customers** * Improving the energy efficiency of their homes. * Electrification of home equipment (e.g., hot water systems, space heating and gas appliances). * Increasing the use of rooftop solar supported by batteries. ## Agribusiness data coverage cohort **Targeting 100% of the Agribusiness data coverage cohort to disclose Scope 1 and Scope 2 emissions at a standard equivalent to the 'Australian National Greenhouse Account Factors'¹ by the end of financial year 2027.** | EAD as at 30 June 2025 | % Group EAD | % of Agribusiness data coverage cohort disclosing their Scope 1 and Scope 2 emissions² | | :--- | :--- | :--- | | \$5.62b | 0.41% | 61% | ANZ has not committed to an emissions reduction target for our Institutional Agribusiness sector or sub-sectors, concluding that it remains premature to set a target while the availability and quality of emissions data remains challenging. Data availability and quality impacts our ability to accurately estimate financed and facilitated emissions. For this reason, we remain focused on seeking enhanced disclosures from the large Agribusiness customers in our data coverage cohort. ANZ's data coverage target aims to encourage and support the provision of high quality and comparable emissions data by the customers in our cohort. The agribusiness data coverage cohort comprises large Institutional Agribusiness customers who either have significant operations in Australia or are headquartered in Australia³ and own assets or operate in one or more of the following parts of the agribusiness value chain: * Farm input providers (e.g., fertiliser manufacturers) * Producers (e.g., of beef, lamb, grain, poultry, and aquaculture products) * Processors (e.g., bulk-handlers, meat processors) * Retailers (e.g., supermarkets) * Quick-service restaurants (e.g., large fast-food chains) Currently, 61% of our agribusiness data coverage cohort customers are disclosing Scope 1 and Scope 2 emissions to an Australian National Greenhouse Account Factors (NGA) standard or equivalent, a decrease of 2% compared with last year. These customers disclosed their emissions publicly or to the Australian Clean Energy Regulator through the National Greenhouse and Energy Reporting Scheme.⁴ The decrease was due to some customers not seeking assurance of their Scope 1 and Scope 2 emissions data in the current reporting year (but having done so in the previous reporting year). Overall, the number of cohort customers publicly reporting emissions increased from 81% to 87% in 2025, however some of these disclosures were not subject to assurance and therefore did not meet our data coverage target criteria. We will continue to engage with the agribusiness data coverage cohort customers who do not report Scope 1 and Scope 2 emissions, or do not report in accordance with the data coverage target criteria, to understand and encourage their progress towards disclosure and assurance. --- # Operational emissions Operational emissions are greenhouse gas (GHG) emissions associated with operating our business. Scope 3 financed emissions and facilitated emissions (see page 32) and emissions associated with ANZ's investments are not included as part of operational emissions. In previous years, we reported our operational emissions for the period 1 July to 30 June. In 2025, we updated our operational emissions reporting period to align with ANZ's financial year end of 30 September in preparation for ANZ's first mandatory climate reporting period, commencing 1 October 2025. In this transition year, we have disclosed operational emissions for both reporting periods ending 30 June 2025 and 30 September 2025. Data in respect of prior years remains reported for the period 1 July to 30 June. Both the operational targets, detailed on page 53, and the year-on-year comparisons made below will also remain by reference to the periods ending 30 June. For further information on our measurement approach, refer to ANZ's Scope 1, Scope 2 and Scope 3 Operational GHG emissions reporting methodology at Appendix 7. The decrease to combined Scope 1 and Scope 2 (location-based) emissions in 2025 was primarily due to the reduction in gas consumption in our Melbourne headquarters and reduced electricity and diesel consumption across our international offices. The decrease to combined Scope 1 and Scope 2 (market-based) emissions in 2025 was primarily due to ANZ procuring 97% of our electricity needs from renewable sources, up from 57% in 2024. In 2025, ANZ signed a second Power Purchase Agreement (PPA) with Mortlake South Wind Farm, complementing the Murra Warra Wind Farm PPA established in 2019. In addition, ANZ has deployed 16 rooftop solar systems through a retail solar PPA program since its commencement in 2023. Internationally, ANZ sources renewable energy through a portfolio of measures tailored to each region. In New Zealand, 100% renewable electricity was achieved through the purchase and surrender of New Zealand Energy Certificate's (NZECs) from our electricity supplier. For other international operations, where energy demand is comparatively lower, we source renewable electricity through retail products or unbundled renewable energy certificates - tradable instruments that represent renewable electricity but are sold separately from the physical electricity itself. The portfolio of measures allows us to source renewable electricity based on market availability and our electricity needs. ## Emissions by Scope | Emissions ($tCO2-e) Location-based | 1 Oct to 30 Sep 2025¹ | 1 Jul to 30 Jun 2025 | 1 Jul to 30 Jun 2024 | | :--- | :--- | :--- | :--- | | Scope 1 emissions | 6,314 | 6,269 | 5,958 | | Scope 2 emissions | 74,556 | 74,955 | 76,020 | | Scope 3 measured operational emissions | 77,173 | 80,146 | 68,845 | | **Total emissions (location-based)** | **158,043** | **161,370** | **150,823** | | Emissions ($tCO2-e) Market-based | 1 Oct to 30 Sep 2025¹ | 1 Jul to 30 Jun 2025 | 1 Jul to 30 Jun 2024 | | :--- | :--- | :--- | :--- | | Scope 1 emissions | 6,314 | 6,269 | 5,958 | | Scope 2 emissions | 2,138 | 2,272 | 36,076 | | Scope 3 measured operational emissions | 70,410 | 73,358 | 66,992 | | **Total emissions (market-based)** | **78,862** | **81,899** | **109,026** | | Emissions ($tCO2-e) by region (Scope 1 and Scope 2 location-based) | 1 Oct to 30 Sep 2025¹ | 1 Jul to 30 Jun 2025 | 1 Jul to 30 Jun 2024 | | :--- | :--- | :--- | :--- | | Australia | 61,838 | 61,633 | 60,638 | | New Zealand | 3,684 | 3,567 | 3,351 | | Asia Pacific, Europe and America | 15,348 | 16,023 | 17,990 | | **Total Scope 1 and Scope 2 (location-based)** | **80,870** | **81,224** | **81,978** | | Emissions ($tCO2-e) by region (Scope 1 and Scope 2 market-based) | 1 Oct to 30 Sep 2025¹ | 1 Jul to 30 Jun 2025 | 1 Jul to 30 Jun 2024 | | :--- | :--- | :--- | :--- | | Australia | 4,675 | 4,592 | 32,458 | | New Zealand | 1,524 | 1,561 | 1,918 | | Asia Pacific, Europe and America | 2,253 | 2,388 | 7,658 | | **Total Scope 1 and Scope 2 (market-based)** | **8,452** | **8,541** | **42,034** | | Emissions ($tCO2-e) Scope 3 | 1 Oct to 30 Sep 2025¹ | 1 Jul to 30 Jun 2025 | 1 Jul to 30 Jun 2024 | | :--- | :--- | :--- | :--- | | Category 1: Purchased goods and services | 9,215 | 9,288 | 6,489 | | Category 2: Capital goods | 799 | 908 | 3,118 | | Category 3: Fuel and energy related activities | 12,008 | 12,257 | 9,907 | | Category 4: Upstream transportation and distribution | 4,409 | 4,406 | 4,156 | | Category 5: Waste generated in operations | 686 | 660 | 834 | | Category 6: Business travel | 22,179 | 24,904 | 20,459 | | Category 7: Employee commuting | 27,716 | 27,562 | 22,008 | | Category 8: Upstream leased assets | 161 | 161 | 1,873 | ## Value chain emissions In 2025, ANZ's reported Scope 3 (location-based) operational emissions were 80,146 tCO₂-e, 16% higher than 2024. In 2025, we continued to work with our suppliers to better understand our impact and identify opportunities to reduce emissions. --- # Climate-related operational targets Since setting our current range of operational targets in 2022, we have made strong progress across the business to support us in meeting our ambitions. Several of our targets, detailed below, expired as at 30 June this year. As a result, this year we have chosen not to restate the baseline years and performances towards our targets from 30 June to a 30 September reporting period, to align with our banking financial year-end. Similarly, existing targets have not been restated for the Suncorp Bank acquisition.¹ Future targets including our revised target below aligned with our financial reporting year of 1 October to 30 September and Suncorp Bank will be included in scope as relevant to the target. Refer to our Scope 1, Scope 2 and Scope 3 Operational GHG emissions reporting methodology in Appendix 7 for further details. ## Reducing combined Scope 1 and Scope 2 emissions by 85% by 2025 and 90% by 2030 against 2015 baseline | Objective | Scope 1 and Scope 2 emissions reduction (market-based) | | :--- | :--- | | Target Type | Absolute quantitative target | | Alignment | Informed by the Paris agreement (1.5°C degree alignment) | ### Scope 1 and Scope 2 operational emissions: Performance against target ```mermaid xychart-beta title "Scope 1 and Scope 2 operational emissions: Performance against target" x-axis "Year" {type: category, categories: [2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025]} y-axis "tCO2-e" line "2025 target" : [200, 180, 160, 140, 120, 100, 80, 60, 40, 20, 0] line "Actual performance against our target" : [200, 180, 160, 140, 120, 100, 80, 60, 40, 20, 0] ``` ANZ exceeded its 2025 target to reduce combined Scope 1 and Scope 2 (market-based) emissions by achieving a 96% reduction, driven principally from an increase in renewable electricity. A reduction of diesel cars from the New Zealand fleet and the reduction of natural gas use at the Sydney and Melbourne commercial offices also contributed to the reduction. ### Revised target: Reducing combined Scope 1 and Scope 2 emissions by 85% by 2030 against a 2024 baseline Having achieved our 2030 target of a 90% reduction (against a 2015 baseline) earlier than expected, we have revised our combined Scope 1 and Scope 2 emissions reduction target with a more ambitious baseline year of 2024 and to also include Suncorp Bank commencing 1 October 2025. ## Being powered by the equivalent of 100% renewable electricity by 2025² | Objective | Renewable energy procurement | | :--- | :--- | | Scope | ANZ global footprint under operational control | | Target Type | % of renewable energy purchased | | Alignment | Not applicable | | Performance | $\checkmark$ | As of 30 June 2025, 97% of ANZ's electricity needs were from renewable sources, just falling short of our target of 100% renewable electricity by 2025. This was principally due to the absence of recognised schemes or renewable electricity infrastructure in Papua New Guinea and Pacific countries. ## Non-emissions targets | Reducing water consumption³ by 40% by 2025 (against 2017 baseline) | Reducing waste to landfill⁴ by 40% by 2025 (against 2017 baseline) | Reducing paper consumption (both office and ANZ originated customer paper use) by 70% by 2025 (against 2015 baseline) | | :--- | :--- | :--- | | ANZ exceeded its 2025 waste reduction target, achieving a 79% decrease in waste to landfill against its 2017 baseline year. This result was driven by the continuation of zero waste principles in new retail branch fit outs across New Zealand, recycling of e-waste and office furniture, and employee engagement through internal campaigns and audits. | ANZ exceeded its 2025 paper reduction target, achieving a 77% decrease in consumption against its 2015 baseline year. This result was driven by the expansion of eSign usage which saved over 500,000 printed documents, the digitisation of brochures and customer statements across the branch network and the streamlining of internal workflows to reduce reliance on printed materials. | --- # Appendix 1: GFANZ and TPT index The index below provides section references of this report to the relevant GFANZ and TPT transition planning guidance framework. ${}^{1, 2}$ Our disclosures do not purport to be comprehensive or to satisfy all aspects of GFANZ or TPT's framework. | TPT Elements | Page reference | GFANZ Component | Page reference | | :--- | :--- | :--- | :--- | | **Foundations** | | **Foundations** | | | 1.1 Strategic ambition | 8-11 | Objectives and priorities | 8-11, ESG Targets - see our 2025 ESG Report located at **anz.com/esgreport** | | 1.2 Business model and value chain | Not met - see details of our business model and value chain on page 4 | | | | 1.3 Key assumptions and external factors | Not met - see details of our C&E strategy and approach to transition planning on pages 8-11 | | | | **Implementation Strategy** | | **Implementation Strategy** | | | 2.1 Business operations | 12-15, 26-27, 52-53 | Products and services | 12-21, 31 | | 2.2 Products and services | 16-17, 21, 31 | Activities and decision-making | 22-24 | | 2.3 Policies and conditions | 19, 22-24, 32-51 | Policies and conditions | 19, 22, 32-51 | | 2.4 Financial planning | Not met | | | | **Engagement Strategy** | | **Engagement Strategy** | | | 3.1 Engagement with value chain | 12-18, 31, 52 | Clients and portfolio companies | 12-18, 31, 52 | | 3.2 Engagement with industry | 21 | Industry | 21 | | 3.3 Engagement with government, public sector, communities and civil society | 21 | Government and public sector | 21, ESG Targets - see our 2025 ESG Report located at **anz.com/esgreport** | | **Metrics and Targets** | | **Metrics and Targets** | | | 4.1 Governance, engagement, business, and operational metrics and targets | 12-15, 30-53 | Metrics and targets | 10-11, 30-53, ESG Targets and Performances - see our 2025 ESG Report located at **anz.com/esgreport** | | 4.2 Financial metrics and targets | 31 | | | | 4.3 GHG metrics and targets | 32-53 | | | | 4.4 Carbon credits | 77 | | | | **Governance** | | **Governance** | | | 5.1 Board oversight and reporting | 5-7 | Roles, responsibilities and remuneration | 5-7 | | 5.2 Management roles, responsibilities and accountabilities | 5-7 | | | | 5.3 Culture | 5, 20 | Skills and culture | 5, 20 | | 5.4 Incentives and remuneration | Partially met - see page 7 | | | | 5.5 Skills, competencies and training | 6, 20 | | | --- # Appendix 2: Task Force on Climate-related Financial Disclosures (TCFD) Index | TCFD category | TCFD disclosure recommendation | ANZ response – page | | :--- | :--- | :--- | | **Governance** | Disclose the organisation's governance around climate-related risks and opportunities. | | | | a. Describe the board's oversight of climate-related risks and opportunities. | 5-7 | | | b. Describe management's role in assessing and managing climate-related risks and opportunities. | 6-7 | | **Strategy** | Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning where such information is material. | | | | a. Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term. | 24-27 | | | b. Describe the impact of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning. | 26-29 | | | c. Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. | 28-29 | | **Risk Management** | Disclose how the organisation identifies, assesses, and manages climate-related risks. | | | | a. Describe the organisation's processes for identifying and assessing climate-related risks. | 22-27 | | | b. Describe the organisation's processes for managing climate-related risks. | 22-27 | | | c. Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management. | 22-27 | | **Metrics and Targets** | Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. | | | | a. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process. | 12-15, 28-29, 30-52, 76 | | | b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks. | 32-52 | | | c. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets. | 10-11, 31-53 | --- # Appendix 3: Task Force on Nature-related Financial Disclosures (TNFD) Index | TNFD category | TNFD disclosure recommendation | ANZ response – page | | :--- | :--- | :--- | | **Governance** | Disclose the organisation's governance of nature-related dependencies, impacts, risks and opportunities. | | | | a. Describe the board's oversight of nature-related dependencies, impacts, risks and opportunities. | 7 | | | b. Describe management's role in assessing and managing nature-related dependencies, impacts, risks and opportunities. | 7, 18-19, 22 | | | c. Describe the organisation's human rights policies and engagement activities, and oversight by the board and management, with respect to Indigenous Peoples, Local Communities, affected and other stakeholders, in the organisation's assessment of, and response to, nature-related dependencies, impacts, risks and opportunities. | Partially met – see our Climate Change Commitment, available here prior to our AGM | | **Strategy** | Disclose the effects of nature-related dependencies, impacts, risks and opportunities on the organisation's business model, strategy and financial planning where such information is material. | | | | a. Describe the nature-related dependencies, impacts, risks and opportunities the organisation has identified over the short, medium and long term. | Partially met – see pages 18-19 | | | b. Describe the effect nature-related dependencies, impacts, risks and opportunities have had on the organisation's business model, value chain, strategy and financial planning, as well as any transition plans or analysis in place. | 18-19 | | | c. Describe the resilience of the organisation's strategy to nature-related risks and opportunities, taking into consideration different scenarios. | Partially met – see initial steps we are taking utilising the ENCORE tool on pages 18-19 | | | d. Disclose the locations of assets and/or activities in the organisation's direct operations and, where possible, upstream and downstream value chain(s) that meet the criteria for priority locations. | Not met | | **Risk Management** | Describe the processes used by the organisation to identify, assess, prioritise and monitor nature-related dependencies, impacts, risks and opportunities. | | | | a. (i) Describe the organisation's processes for identifying, assessing and prioritising nature-related dependencies, impacts, risks and opportunities in its direct operations. | Not met | | | a. (ii) Describe the organisation's processes for identifying, assessing and prioritising nature-related dependencies, impacts, risks and opportunities in its upstream and downstream value chain(s) | 22-24 | | | b. Describe the organisation's processes for managing nature-related dependencies, impacts, risks and opportunities. | 18-19, 22 | | | c. Describe how processes for identifying, assessing, prioritising and monitoring nature-related risks are integrated into and inform the organisation's overall risk management processes. | 18-19, 22 | | **Metrics and Targets** | Disclose the metrics and targets used to assess and manage material nature-related dependencies, impacts, risks and opportunities. | | | | a. Disclose the metrics used by the organisation to assess and manage material nature-related risks and opportunities in line with its strategy and risk management process. | Not met | | | b. Disclose the metrics used by the organisation to assess and manage dependencies and impacts on nature. | Not met | | | c. Describe the targets and goals used by the organisation to manage nature-related dependencies, impacts, risks and opportunities and its performance against these. | Not met | --- # Appendix 4: Climate Scenario Analysis Methodology ## Disclaimer and important notices The information in this methodology should be read together with Disclaimer and Important Notices on page 1 which contains information about forward-looking statements, and the uncertainties, challenges and risks associated with climate-related information. The purpose of this section is to outline our approach to climate scenario analysis. Further to scenario descriptions set out on pages 24-29 of this report, this section provides additional detail on the scenario-based assumptions that supported our assessment. ## Time horizons The table below details the considerations that we took into determining the time horizons. | Summary of our scenario time horizons | Short-term 0-1 year (2026) | Medium-term 1-5 years (2030) | Long-term 5+ years (2050) | | :--- | :--- | :--- | :--- | | | Aligns with our annual business cycle | Aligns with our stress testing horizons, group-level strategy cycle and our Internal Capital Adequacy Assessment Process (ICAAP) Aligns with our Climate-related intermediate targets | Aligns with the transition of our lending portfolio to net zero financed emissions by 2050 Maximum 30-year tenor of home loans | ## Inputs and assumptions ### Network for Greening the Financial System (NGFS) Scenarios ANZ selected two scenarios from the NGFS that represent divergent climate pathways to identify material climate risk. NGFS scenarios were chosen as they provide comprehensive coverage of both transition and physical climate risks across economic sectors. | NGFS scenario architectures¹ | Net Zero 2050 – Orderly Transition | Current Policies – Hot House World | | :--- | :--- | :--- | | Source | Both scenarios are sourced from the NGFS Climate Scenarios (November 2024 Phase V release). | | | Diversity of range of climate-related scenario used | The two scenarios selected represent divergent climate pathways to support the assessment of ANZ's business model in response to low physical risk and moderate transition risks (Net Zero 2050) and high physical risks (Current Policies). These are plausible scenarios that help us to understand where our most material climate risks may arise. | | | Climate-related transition risk or climate-related physical risks | Low physical and moderate transition risk with $\sim1.5^\circ\text{C}$ warming by 2100. | High and escalating physical risk with $>3^\circ\text{C}$ warming by 2100. Minimal transition risk. | | Alignment with the latest international agreement on climate change | Aligned to the goals of the Paris Agreement, which include: limiting the global temperature increase to well below $2^\circ\text{C}$ above pre-industrial levels, with efforts to limit it to $1.5^\circ\text{C}$; and achieving global net zero greenhouse gas emissions by the second half of the century. | N/A | | Scope of operations used in the analysis | The assessment considered the potential impact of climate risks to ANZ's business model, including the interaction with our Material Risk categories. | | | Value chain considered in the analysis | Upstream: capital providers and suppliers. Downstream: investments, customers, employees, and other stakeholders. | | ### Intergovernmental Panel on Climate Change (IPCC) Scenarios ANZ utilised IPCC Representative Concentration Pathway (RCP) scenarios for assessing climate risks to our Australian home loan residential mortgage portfolio (refer to pages 28-29). IPCC RCP scenarios were selected for their detailed physical climate projections essential for evaluating property-level risks such as flooding and extreme weather events. | IPCC scenario architectures² | RCP 2.6 - Strong Mitigation | RCP 8.5 - High Emissions | | :--- | :--- | :--- | | Global temperature increase by 2100 | $0.9^\circ\text{C} - 2.3^\circ\text{C}$ above pre-industrial levels | $3.2^\circ\text{C} - 5.4^\circ\text{C}$ above pre-industrial levels | | Sea level rise by 2100 | 0.3 - 0.6 metres | 0.5 - 0.8 metres | | Extreme weather events | Moderate increase in frequency and intensity | Significant increase in frequency and intensity | | Precipitation patterns | Regional variability with some areas experiencing increased drought and flooding | Substantial changes with more frequent droughts and intense precipitation events | | Coastal flooding risk | Elevated risk in low-lying areas | Severe and widespread coastal flooding | | Bushfire/wildfire risk | Moderately increased fire weather conditions | Substantially increased fire weather and extended fire seasons | | Reporting period | Scenario analysis was carried out in the 2025 reporting period | | ## Limitations | Limitation | Description | | :--- | :--- | | **Scenario Data and Modelling** | Climate scenario analysis relies on external data sets and models that have several limitations. These may include: Limited Detail by Region and Sector: Scenarios often lack the granular detail needed to assess risks specific to certain industries and/or locations. Simplified Physical Risk Modelling: The models distinguish between acute risks, which are short-term, high-impact events (e.g., cyclones, bushfires), and chronic risks, which are longer-term, gradual changes (e.g., rising temperatures, sea level rise). However, they may not fully reflect the severity or frequency of acute risks, particularly when multiple events occur close together or interact in complex ways. Idealised Transition Pathways: Transition scenarios often assume smooth policy implementation and cooperation, which may not reflect real-world political and/or economic challenges. Linear Assumptions on Technology and Behaviour: Models typically assume gradual changes in technology and consumer behaviour, limiting the ability to explore disruptive shifts and/or innovations. Lag in Scenario Updates: Scenarios are updated periodically and may not reflect the latest science or policy changes, especially in fast-moving environments. Framework-Specific Limitations: NGFS Scenarios focus on macroeconomic and transition risks but may underrepresent physical climate impacts and tail risks. IPCC Scenarios model physical climate outcomes based on emissions pathways but exclude socio-economic and policy assumptions. | | **Aggregating and Cascading Risks** | Climate risks often occur together or in sequence, but current models assess risks in isolation. This makes it difficult to understand the full impact when multiple risks interact or cascade through systems such as how a flood might disrupt supply chains and then affect financial markets. | | **Identifying Capital Risk** | Capital risk, that is, where ANZ might not hold enough capital to meet regulatory requirements, is challenging to assess using current climate risk assessment methodology. This is because capital adequacy depends on the combined impact of many financial and non-financial risks, which are not fully captured in scenario analysis. | | **Identifying Tail Risk** | Current models focus on certain scenarios which are useful for exploring plausible futures but may miss rare, high-impact events ("tail risks" or "black swans") that fall outside the scope of these scenarios. | --- # Appendix 5: Financed and Facilitated Emissions Methodology ## Disclaimer and important notices The information in this methodology should be read together with Disclaimer and Important Notices on page 1 which contains information about forward-looking statements, and the uncertainties, challenges and risks associated with climate-related information. The purpose of this appendix is to outline the methodologies that ANZGHL has used to establish targets for the reduction of financed and facilitated emissions and to measure the emissions profile of the relevant portfolios and capital markets activities. In some instances, ANZ has not set an emissions reduction target for a sector but has established a metric. Where that is the case, this methodology explains how the metric has been designed. ## Our approach to sectoral pathway targets ANZ has set sectoral pathway targets with the ambition to transition our lending portfolio to net zero financed emissions by 2050 in line with the goals of the Paris Agreement. ### 2025 review In 2025, we reviewed our sectoral pathway targets, including aviation which was suspended in 2024. The review has resulted in some material changes being made to pathways, including targets and our historical performance. The review was undertaken for the following reasons: * To include facilitated emissions associated with syndicated loans and bonds informed by UN Guidance for Climate Target Setting for Banks and the Partnership for Carbon Accounting Financial (PCAF) guidance * To assess whether customers of Suncorp Bank met our in-scope criteria for inclusion in our pathways and metrics * To update to use more recent reference scenarios where we considered appropriate, including the consideration of a target range * To reflect the UN Guidance for Climate Target Setting for Banks recommendation that targets are reviewed at a minimum every 5 years * To consider the opportunity to use an intensity metric for the shipping pathway Among other changes, the review resulted in changes to our baseline year performance and 2030 interim targets for some pathways. ## Restatement approach ANZ's general approach is to restate climate-related data where we identify that a restatement is appropriate. For example, to correct for errors in prior reporting periods (such as calculation mistakes, misinterpretations and errors in applying the methodology) that we assess as having a material impact on the reported data or to adjust climate-related data for any of the following events when it results in a material impact: * Changes in calculation methodology; * Structural changes (e.g., mergers, acquisitions and divestments of customers within the relevant pathway); and * Changes in data availability (e.g., replacing estimates with actuals). Materiality is assessed based on both qualitative and quantitative factors, including the impact of the change on users of the data and our ability to track and accurately report on performance against our targets. Where undertaken, a 5% materiality threshold is used as a guide for the quantitative assessment, but where the threshold is not met, ANZ may still make a restatement based on qualitative factors. In some circumstances, a restatement may have a consequential impact on related information. If that is the case, we may make other adjustments to the related information to reflect the restated position. The materiality threshold for financed and facilitated emissions metrics reflects the complexity and significant uncertainty in calculating Scope 3 emissions. When a restatement results in a change to a sectoral pathway baseline, we will consider the impact on the appropriateness of our target. As a result of the 2025 review described above, we have made changes to the oil and gas, power generation, thermal coal, auto manufacturing, shipping, aluminium, cement and steel sectoral pathways this year. In some instances, changes from the 2025 review may result in a consequential change that meets the restatement criteria, e.g., to reflect updated customer emissions data, correct for errors (such as calculation mistakes, misinterpretations and errors in applying the methodology), and to improve data granularity. Where that is the case, we have not separately identified the restatement. See Sectoral pathway targets detailed method on pages 62-73 which outlines key changes from 2024 for each sector. As part of the development of our financed and facilitated emissions sectoral pathways, we engaged a third-party to undertake a limited-scope technical review of some of our sectoral pathway targets. The review assessed the consistency of power generation and oil and gas target pathways with the IEA World Energy Outlook 2024 Net Zero Emissions by 2050 reference scenario, and the aviation target pathway with the IEA World Energy Outlook 2024 Net Zero Emissions by 2050 and Announced Pledges scenarios. ## ANZSIC codes ANZ aims to ensure in-scope customers are representative of our exposure to each sector. However, the approach is somewhat manual in nature and constrained by certain limitations. The first step in assessing whether a customer is in-scope for our sectoral pathway targets is reviewing its assigned Australia and New Zealand Standard Industrial Classification (ANZSIC) code. ANZ applies the 1993 ANZSIC codes, which ANZ may adapt where it considers appropriate, to allocate customers to industry sectors. The ANZSIC codes are allocated in ANZ's system by customer-facing employees or customer on-boarding back-office functions. The allocation is intended to reflect the primary business activity of the customer in terms of revenue. Where a customer operates in more than one industry, ANZ uses the ANZSIC code of the industry that generates most of the revenue. Where the customer is a parent company of subsidiaries operating in more than one industry, ANZ uses the ANZSIC code of the industry that generates most of their revenue. If the customer is a subsidiary, ANZ uses the ANZSIC code of the industry that generates most of the revenue of the subsidiary. Due to the manual nature of code application there is a possibility of error in assigning ANZSIC codes at the time of customer onboarding or other discrepancies due to changes in customer activities over time. Each customer allocated to the ANZSIC code relevant to the scope of the sectoral pathways is considered for the purpose of determining whether the customer is in-scope of that sectoral pathway. Through this process, a customer may not be included in the pathway, if they otherwise do not meet the pathway criteria. See pages 62-73 for sector specific inclusion and exclusion criteria. ## Boundaries When calculating our financed and facilitated emissions the following data collection and calculation dates are used: | | 2019 to 2023 | 2024 and 2025 | | :--- | :--- | :--- | | **Exposure at default** | 30 September of the relevant year. | 30 June of the relevant year. | | **Capital markets activity** | Deals occurring between 1 October and 30 September of the relevant year. | 2024 deals occurring between 1 October and 30 June as we transitioned to June end reporting period in line with the EAD change. 2025 deals occurring between 1 July and 30 June. | | **Customer emissions data** | We typically preference the use of the latest available customer emissions data. We typically apply the following data hierarchy when sourcing customer emissions data: i. public customer disclosures; ii. regulatory disclosures; iii. credible third-party vendors; and as a last resort iv. sector averages. We have applied a 30 September 2025 cut off for reporting by our customers of their emissions data for 2025 reporting purposes. | | | **Australian residential home loans outstanding loan amount** | 2023 and 2024 as at 31 May of the relevant year. | 2025 as at 30 June. | ## Exposure at Default We have taken a more conservative approach in calculating our financed emissions by using Exposure At Default (EAD) rather than the outstanding amount of loans and investments. EAD represents the exposure to the sector based on APRA's calculation formula which includes total committed loans (drawn plus a proportion of off-balance sheet exposures as specified by APRA). This is a departure from the PCAF approach, which recommends including the outstanding amount of loans and investments i.e. excluding undrawn amounts. While our approach means that we are attributing a higher proportion of our customers' emissions to ANZ, we consider this provides a more accurate representation of our support to our customers and the transition risks that we are potentially exposed to. Our choice to also include a proportion of undrawn loan amounts, rather than just the outstanding amount, also helps reduce the risk of volatility in customer drawdowns that may impact the achievement of our targets. When assessing which customers are in-scope for our sectoral pathways we use an EAD threshold (see pages 62-70 for sector specific thresholds). It is estimated that cumulative customer EAD below this threshold represents an immaterial part of our overall financing activities in the respective sector meaning we consider that the threshold does not materially affect the financed emissions included in-scope. We assess customers against the EAD threshold each year to determine if they are in-scope for the relevant year. ## Use of offsets Our sectoral pathways targets and reported financed and facilitated emissions are prepared on a gross basis and therefore do not currently consider the use of any offsets our customers use or may use to reduce their emissions. We recognise that many customers are proposing to use offsets to achieve their own emissions reduction targets. Given the 'hard-to-abate' nature of some emissions sources within some of these sectors, there may be residual and unavoidable emissions in 2050, if technology to eliminate those emissions does not exist, is in early stages of development or is not financially viable. We will look to further develop our position on customers' use of offsets in the coming years, however we apply a general principle that emissions should first be avoided by our customers, with offsetting used only to compensate for residual and unavoidable emissions. --- # Sectoral pathway targets detailed method ## Power generation – targeting a 54% reduction in emissions intensity by 2030, from a 2020 baseline | Key changes from 2024 | Update of reference scenario to use the 2024 IEA World Energy Outlook Inclusion of facilitated emissions | | :--- | :--- | | Target baseline | 245 gCO2-e/MWh | | Target metric | Portfolio weighted emissions intensity was chosen as the demand for electricity is expected to remain steady or increase under a 1.5°C aligned scenario. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario presented in the IEA's World Energy Outlook (2024) was chosen as a credible and well-recognised decarbonisation scenario. | | Target setting method | Sectoral decarbonisation approach aligned with a 1.5°C transition pathway. | ### In-scope customers (subject to meeting the criteria for In-scope lending or capital markets activity) Institutional, Commercial and Suncorp Bank customers allocated to ANZ industry code 3611 – electricity generation. For ANZ's purposes, ANZ industry code 3611 is an adaptation of 1993 ANZSIC code 3610 (electricity supply) to capture customers engaged in the generation of electricity as their predominant activity. ANZ's industry code 3611 does not include customers whose predominant activity by revenue is the transmission or distribution of electricity. ### Customer in-scope emissions * Scope 1 emissions from electricity generation activities. * We prioritise use of CO₂-e data inclusive of all relevant GHGs, where not available we use CO₂ emissions. * We prioritise the use of customer data based on the operational control approach, where not available we use the equity accounting approach. ### In-scope lending and capital markets activity | Financed | Where our lending to the customer could be used for the development and/or operation of power generation asset(s) and the EAD is greater than \$1m. | | :--- | :--- | | Facilitated | Where ANZ is a lead bookrunner for a syndicated loan to the customer or bond issued by the customer. No financial threshold is applied. Note that financed emissions of the customer are not included in the pathway unless the 'financed' requirement above is met. | ### Sector specific method A 2020 baseline was chosen to align the baselines across our energy sector pathways. 2020 predominantly relies on company emissions and production data from the 2019 calendar year (which wasn't impacted by COVID-19). Unless reported differently by our customers, assets that were based on nuclear, bioenergy, hydro or renewables technologies were all assumed to have an emissions intensity of zero. Unless reported differently by our customers, for greenfield projects that ANZ directly finances and that are still in the construction phase, ANZ applies the estimated emissions intensity of the asset from its expected operational date. We exclude emissions relating to electricity that our power generation customers may purchase from third-party generators either as part of a power purchase agreement or on the spot market unless they have operational control of the same asset(s). ### Data sources Customer disclosures, Australian Clean Energy Regulator, Asset Impact, International Energy Agency ### Supporting metrics reported * Absolute financed emissions and absolute facilitated emissions in-scope of the pathway (see page 75). * ANZ EAD to electricity generation fuel types and technologies: for each power generation customer in-scope for financed emissions, ANZ has apportioned our total EAD to that customer across different generation types based on the same proportion of generation last reported by the customer. ANZ then aggregates these generation weighted exposures across the power generation customers in-scope for financed emissions to determine our pathway generation weighted exposure. * Breakdown of ANZ's power generation pathway: ANZ has reported a breakdown of our EAD to power generation customers in-scope for financed emissions across five categories. For the corporate finance categories ANZ has assessed each customer based on their reported emissions intensity, which is calculated by dividing their total emissions from generation ($\text{kgCO}_2\text{-e}$) by their total electricity generation (MWh). ## Oil and gas – targeting a 32% reduction in absolute financed and facilitated emissions by 2030, from a 2020 baseline | Key changes from 2024 | Update of reference scenario to use the 2024 IEA World Energy Outlook Inclusion of facilitated emissions | | :--- | :--- | | Target baseline | 13.9 $\text{MtCO}_2\text{-e}$ | | Target metric | The choice of an absolute emissions reduction target recognises that 1.5°C aligned scenarios - such as those published by the IEA - show the need for an absolute reduction in the production and use of fossil fuels. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario presented in the IEA's World Energy Outlook (2024) was chosen as a credible and well-recognised decarbonisation scenario. | | Target setting method | Absolute contraction approach aligned with a 1.5°C transition pathway. | ### In-scope customers (subject to meeting the criteria for In-scope lending or capital markets activity) Institutional customers allocated to ANZSIC code 1200 - oil and gas extraction. We exclude customers that do not otherwise have an equity share in upstream producing assets or LNG production including dedicated refinery operators, fuel wholesale and distribution companies (including pipelines), fuel retailers and petrochemical producers. ### Customer in-scope emissions * Scope 1 and Scope 2 (market-based) emissions associated with oil and gas production and Scope 3 Category 11 use of sold products emissions. * We prioritise the use of $\text{CO}_2\text{-e}$ data inclusive of all relevant GHGs, where not available we use $\text{CO}_2$ emissions. * We prioritise the use of customer data based on the equity accounting approach, where not available we use the operational control approach. ### In-scope lending and capital markets activity | Financed | Where our cumulative EAD to entities within a corporate group exceeds \$10M and includes EAD to ANZSIC code 1200 - oil and gas extraction. For the purpose of calculating cumulative EAD, in addition to ANZSIC code 1200, we consider ANZSIC codes 1511 - petroleum exploration; 1512 - petroleum exploration service; 2510 - petroleum refining; and 4521 - petroleum product wholesaling. | | :--- | :--- | | Facilitated | Where ANZ is a lead bookrunner for a syndicated loan to the customer or bond issued by the customer. No financial threshold is applied. Note that financed emissions of the customer are not included in the pathway unless the 'financed' requirement above is met. | ### Sector specific method A 2020 baseline was chosen to align the baselines across our energy sector pathways. 2020 predominantly relies on company emissions and production data from the 2019 calendar year (which wasn't impacted by COVID-19). Although many of our customers now report Scope 3 emissions from the use of their sold energy products, boundaries are applied inconsistently by customers. Therefore, ANZ calculates the downstream Scope 3 emissions associated with the use of sold products for all customers on a consistent basis, using their publicly reported net production data (production available for sale where available) and which reflects their working interest or equity share in the producing asset. We acknowledge that this may present an over-estimation of our customers' emissions where a proportion of their production is used for non-energy purposes. For calculated financed emissions in 2020, 2021 and 2022 we have applied an adjustment factor to account for the estimated average reduction in financed emissions associated with the APRA Capital reforms that took effect on 1 January 2023. The introduction of the APRA Basel IV rules altered the way EAD is calculated. For our oil and gas portfolio, the aggregate impact of this change was a material reduction in EAD, which means a lower proportion of our customers' Scope 1, Scope 2 and Scope 3 emissions is attributed to us. Therefore, we apply the adjustment factor to improve comparability of emissions pre and post APRA reform. ## Thermal coal – targeting a 100% reduction in absolute financed and facilitated emissions by 2030, from a 2020 baseline | Key changes from 2024 | Inclusion of facilitated emissions | | :--- | :--- | | Target baseline | 9.00 $\text{MtCO}_2\text{-e}$ | | Target metric | The choice of an absolute emissions reduction target recognises that 1.5°C aligned scenarios - such as those published by the IEA - show the need for an absolute reduction in the production and use of fossil fuels. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario presented in the IEA's World Energy Outlook (2024) was chosen as a credible and well-recognised decarbonisation scenario. | | Target setting method | Absolute contraction approach aligned with a 1.5°C transition pathway. | ### In-scope customers (subject to meeting the criteria for In-scope lending or capital markets activity) Institutional customers allocated to ANZSIC code 1102 - Brown coal mining. ANZ considers the end-use of coal when allocating an ANZSIC code. If a customer's predominant activity is producing coal used for power generation, they are assigned to ANZSIC code 1102. This includes customers that predominantly produce black coal, when it is apparent to ANZ that the end use of the black coal is for power generation. ANZ excludes metallurgical coal miners and diversified miners that produce thermal coal from ANZSIC 1102 and therefore they are not included in our pathway. ### Customer in-scope emissions * Scope 1 and Scope 2 (market-based) emissions from thermal coal mining and Scope 3 category 11 use of sold products (thermal coal only). * We prioritise the use of $\text{CO}_2\text{-e}$ data inclusive of all relevant GHGs, where not available we use $\text{CO}_2$ emissions. * We prioritise the use of customer data based on the equity accounting approach, where not available we use the operational control approach. ### In-scope lending and capital markets activity | Financed | Where our EAD (excluding rehabilitation bonds and transaction banking/markets 3-day settlement limits) to the customer is greater than \$1m. | | :--- | :--- | | Facilitated | Where ANZ is a lead bookrunner for a syndicated loan to the customer or bond issued by the customer. No financial threshold is applied. Note that financed emissions of the customer are not included in the pathway unless the 'financed' requirement above is met. | ### Sector specific method A 2020 baseline was chosen to align the baselines across our energy sector pathways. 2020 predominantly relies on company emissions and production data from the 2019 calendar year (which wasn't impacted by COVID-19). The UN Guidance for Climate Target Setting for Banks states that any client with more than 5% of their revenues coming directly from thermal coal mining and coal-powered electricity generation activities should be included in the scope of targets (including dominant metallurgical coal mines that produce a thermal coal product). ANZ's thermal coal target includes customers that ANZ allocates to ANZSIC code 1102, (i.e., those customers for whom thermal coal mining is their predominant activity.) The target does not include diversified miners or metallurgical coal miners that produce thermal coal (i.e., customers that ANZ does not classify as ANZSIC code 1102). Analysis of this 5% revenue threshold found that diversified miners and metallurgical coal miners that produce thermal coal may fall in or out of the target boundary in any given year because of fluctuations in commodity prices. This creates challenges in both reporting and setting a target. For this reason, we have elected not to follow the Guidance in applying the 5% revenue threshold. Although many of our customers now report Scope 3 emissions from the use of their sold energy products, boundaries are applied inconsistently by customers. Therefore, ANZ calculates the Scope 3 emissions associated with the use of sold products for all customers on a consistent basis, using their publicly reported net production data (production available for sale where available). We acknowledge that this may present an over-estimation of our customers' emissions where a proportion of their production is used for non-energy purposes. ## Auto manufacturing – targeting a 18-33% reduction in emissions intensity by 2030, from a 2022 baseline | Key changes from 2024 | Update of reference scenario to use the 2024 IEA World Energy Outlook Inclusion of facilitated emissions Change from 1.5°C aligned target to 1.5°C - 1.7°C aligned target range recognising recent challenges with EV adoption and market development, including trade disruptions and changes in government policies. | | :--- | :--- | | Target baseline | 140 $\text{gCO}_2\text{-e/vehicle kilometre (vkm)}$ | | Target metric | Portfolio weighted emissions intensity was chosen as the demand for the output of the sector is expected to remain steady or increase under a 1.5°C aligned scenario. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario and Announced Pledges Scenario (APS) presented in the IEA's World Energy Outlook (2024) were selected as credible and well-recognised decarbonisation scenarios. | | Target setting method | Sectoral decarbonisation approach aligned with 1.5°C to 1.7°C transition pathways. | ### In-scope customers (subject to meeting the criteria for In-scope lending or capital markets activity) Institutional customers allocated to ANZSIC code 2811 - Motor vehicle manufacturing. ANZ's pathway cohort only includes customers that undertake light duty vehicle manufacturing (passenger cars). ### Customer in-scope emissions * Scope 3 category 11 emissions from the use of sold products, the estimated lifetime emissions associated with newly manufactured passenger vehicles on a tank-to-wheel basis (excluding electricity related emissions from EV charging). * We prioritise the use of $\text{CO}_2\text{-e}$ data inclusive of all relevant GHGs, where not available we use $\text{CO}_2$ emissions. * We prioritise the use of customer data based on the operational control accounting approach, where not available, we use the equity accounting approach. ### In-scope lending and capital markets activity | Financed | Where our EAD to the customer is greater than \$10m. ANZ excludes exposures not related to light vehicle manufacturing, e.g., manufacturing of trucks or customer leasing activities. | | :--- | :--- | | Facilitated | Where ANZ is a lead bookrunner for a syndicated loan to the customer or bond issued by the customer. No financial threshold is applied. Note that financed emissions of the customer are not included in the pathway unless the 'financed' requirement above is met. | ### Sector specific method A 2022 baseline was chosen as it was the most recent year prior to the first reported year (2023). When calculating customers' Scope 3 category 11 emissions from the use of sold products (tank-to-wheel, which excludes electricity related emissions from EV charging) intensity associated with the lifetime use of new vehicle sales, we assume that a passenger vehicle will travel 200,000 kms during its lifetime. For auto manufacturing entities' assets that ANZ directly finances and that are still in the construction phase (i.e. have not commenced vehicle production), ANZ applies an estimated emissions intensity based on the vehicles to be produced at the asset. ## Aviation – targeting a 16-26% reduction in emissions intensity by 2030, from a 2019 baseline | Key changes from 2024 | New target range in 2025 which includes facilitated emissions. | | :--- | :--- | | Target baseline | 871 $\text{gCO}_2\text{-e/revenue tonne kilometre (RTK)}$ | | Target metric | Portfolio weighted emissions intensity was chosen as the demand for the output of the sector is expected to remain steady or increase under a 1.5°C aligned scenario. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario and Announced Pledges Scenario (APS) presented in the IEA's World Energy Outlook (2024) were selected as credible and well-recognised decarbonisation scenarios. When setting our target range we applied the IEA WEO 2024 reference pathways for aviation. It is unclear whether the IEA WEO 2024 reference pathways for aviation include freight emissions. We have assumed that the IEA WEO 2024 reference pathways for aviation do not include freight emissions but as at 30 September, the position is unclear. However, if the IEA WEO 2024 reference pathways for aviation do include freight emissions, our aviation pathway may not align with the IEA WEO 2024 reference pathways' 1.5°C - 1.7°C trajectory. | | Target setting method | Sectoral decarbonisation approach aligned with 1.5°C to 1.7°C transition pathways. | ## Shipping – targeting a 23-30% reduction in emissions intensity by 2030, from a 2022 baseline | Key changes from 2024 | Move from absolute to emissions intensity reduction target Inclusion of facilitated emissions Update of reference scenario to use the 2024 IEA World Energy Outlook Change from 1.5°C aligned target to 1.5°C - 1.7°C aligned target range to reflect the hard-to-abate nature of the sector. | | :--- | :--- | | Target baseline | 11.49 $\text{gCO}_2\text{-e/tonne kilometre (t km)}$ | | Target metric | Portfolio weighted emissions intensity was chosen as the demand for the output of the sector is expected to remain steady or increase under a 1.5°C aligned scenario. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario and Announced Pledges Scenario (APS) presented in the IEA's World Energy Outlook (2024) were selected as credible and well-recognised decarbonisation scenarios. | | Target setting method | Sectoral decarbonisation approach aligned with 1.5°C to 1.7°C transition pathways. | ## Aluminium – targeting a 17-30% reduction in emissions intensity by 2030, from a 2021 baseline | Key changes from 2024 | Inclusion of facilitated emissions Change from 1.5°C aligned target to 1.5°C – 1.75°C aligned target range to reflect the hard-to-abate nature of the sector. | | :--- | :--- | | Target baseline | 6.81 $\text{tCO}_2\text{-e/t aluminium produced}$ | | Target metric | Portfolio weighted emissions intensity was chosen as the demand for the output of the sector is expected to remain steady or increase under a 1.5°C aligned scenario. | | Reference pathway | International Aluminium Institute (IAI) 1.5°C and International Aluminium Institute (IAI) B2Ds-Aligned (1.75°C) scenarios were selected as credible and sector specific decarbonisation scenarios. | | Target setting method | Sectoral decarbonisation approach aligned with 1.5°C to 1.75°C transition pathways. | ## Cement – targeting a 13-25% reduction in emissions intensity by 2030, from a 2021 baseline | Key changes from 2024 | Update of reference scenario to use the 2024 World Energy Outlook Inclusion of facilitated emissions Change from 1.5°C aligned target to 1.5°C – 1.7°C aligned target range to reflect the hard-to-abate nature of the sector. | | :--- | :--- | | Target baseline | 0.66 $\text{tCO}_2\text{-e/t cement produced}$¹ | | Target metric | Portfolio weighted emissions intensity was chosen as the demand for the output of the sector is expected to remain steady or increase under a 1.5°C aligned scenario. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario and Announced Pledges Scenario (APS) presented in the IEA's World Energy Outlook (2024) were selected as credible and well-recognised decarbonisation scenarios. | | Target setting method | Sectoral decarbonisation approach aligned with 1.5°C to 1.7°C transition pathways. | ## Steel – targeting a 11-22% reduction in emissions intensity by 2030, from a 2021 baseline | Key changes from 2024 | Update of reference scenario to use the 2024 World Energy Outlook Inclusion of facilitated emissions Change from 1.5°C aligned target to 1.5°C – 1.7°C aligned target range to reflect the hard-to-abate nature of the sector. | | :--- | :--- | | Target baseline | 2.10 $\text{tCO}_2\text{-e/t steel}$ | | Target metric | Portfolio weighted emissions intensity was chosen as the demand for the output of the sector is expected to remain steady or increase under a 1.5°C aligned scenario. | | Reference pathway | The Net Zero Emissions by 2050 (NZE) Scenario and Announced Pledges Scenario (APS) presented in the IEA's World Energy Outlook (2024) were selected as credible and well-recognised decarbonisation scenarios. | | Target setting method | Sectoral decarbonisation approach aligned with 1.5°C to 1.7°C transition pathways. | ## Commercial real estate – targeting a 60% reduction in emissions intensity by 2030, from a 2019 baseline | Key changes from 2024 | No changes have been made to our commercial real estate pathway. We will continue to consider adjusting our approach as the availability of data increases to improve transparency of the outcomes of this pathway. | | :--- | :--- | | Target baseline | Offices: 80.21 $\text{kgCO}_2\text{-e/m}^2$ NLA Shopping centres: 89.75 $\text{kgCO}_2\text{-e/m}^2$ NLA | | Target metric | Emissions intensity calculated using the net lettable area (NLA) of in-scope Australian office buildings and shopping centres. Our current metrics exclude attribution of ANZ's lending. | | Reference pathway | The International Energy Agency (IEA) Beyond $2^\circ\text{C}$ scenario (B2DS) presented in the IEA – Energy Technology Perspectives report (2017). This scenario was chosen based on guidance from the SBTi at the time the target was first reported in 2020. | | Target setting method | Sectoral decarbonisation approach not used. | --- # Other metrics ## Agribusiness data coverage cohort **Key changes from 2024** - None | Data coverage target | Seek the disclosure of Scope 1 and Scope 2 emissions at a standard equivalent to the 'Australian National Greenhouse Account Factors' by 100% of the Agribusiness data coverage cohort by the end of financial year 2027. | | :--- | :--- | | Target metric | Data coverage % | In-scope customers: Large Institutional agribusiness customers as at October 2023, that had and continue to have significant operations or headquarters in Australia. Customer in-scope emissions: Scope 1 and Scope 2 emissions (market- or location-based reflecting challenges in data availability). ## Australian residential home loans emissions intensity | Key changes from 2024 | We have included Suncorp Bank residential home loans in ANZ's reported 2025 performance. We have not re-calculated prior periods to include Suncorp Bank. Australian residential home loans outstanding loan amount was taken at 30 June 2025. For previous reporting years we used outstanding loan amount at 31 May. | | :--- | :--- | In-scope customers (subject to meeting the criteria for in-scope lending): Australia Retail and Suncorp Bank residential home loan customers' properties, including individual homes and multi-family housing with a small number of units. Customer in-scope emissions: Scope 1 and Scope 2 (location-based) emissions associated with home energy use (gas, LPG and electricity). In-scope lending: Attribution approach is calculated for each individual home loan property and based on a loan-to-value approach outlined in the PCAF standard¹. This is where the outstanding amount of loans at the end of June (May in previous reporting years) is divided by the property value at loan origination (or latest financing event). The calculation of the attribution factor varies depending on whether the property is linked to single or multiple loan accounts. In any case where the outstanding loan amount is greater than the property value, we assign an attribution factor of 1. --- # Calculation approach ## Capital markets activity In-scope capital markets activity includes deals where ANZ was listed as the lead bookrunner on the primary issuance of syndicated loans or bonds. Green and other use of proceeds bonds are out of scope.¹ We source deal information for individual transactions from Bloomberg, including ANZ's league table credit amount, being the proportion of the issuance facilitated by ANZ. For syndicated loans, ANZ will in most cases hold some of the debt that is issued. To ensure we avoid double counting these exposures as a source of both financed and facilitated emissions and to accurately represent the amount we facilitated, the limit held by ANZ is subtracted from ANZ's league table credit amount. We apply a 33% weighting factor aligned with the guidance issued by PCAF² and use a three-year rolling average to reduce volatility, given the cyclical nature of capital markets.³ To calculate ANZ's facilitated emissions and sector emissions intensity we calculate the facilitated amount for deals with our pathway customers in-scope for facilitated emissions. Customers in-scope for facilitated emissions and their associated emissions follow the same boundaries outlined in the sector specific method. Facilitated amount for deal with in-scope customer $$ = \frac{\text{ANZ league table credit - ANZ limit held (for syndicated loans only)}}{3} \times 33\% $$ ## Portfolio weighted emissions intensity ANZ uses a portfolio weighted emissions intensity metric (i.e., carbon emissions per unit of product or activity) to measure the extent to which our financing is supporting the transition of key carbon intensive sectors. An intensity metric was chosen for our power generation, auto manufacturing, aviation, shipping, aluminium, cement and steel targets as the demand for the outputs of these sectors is expected to remain steady or increase under 1.5°C aligned scenarios. Our role is to support continued production of these products by our customers as they move towards lowering their emissions intensity. By focusing on each customer's emissions intensity irrespective of the size of their fleet or volume of production - it allows for comparability. The debt-weighted emissions intensity for each in-scope customer is calculated using the following formula: $$\text{Customer weighted emissions intensity} = \frac{\text{Customer in-scope emissions}}{\text{Customer in-scope production or activity}} \times \frac{\text{ANZ EAD + facilitated amount to customer}}{\text{Total EAD + total facilitated amount of in-scope customers in pathway}}$$ To calculate the portfolio weighted emissions intensity for the sector, we sum the weighted emissions intensity of all in-scope customers. ## Absolute financed emissions¹ ANZ determines what portion of our pathway customers' in-scope emissions are attributable to our financing activities, by multiplying each of our pathway customers' in-scope emissions by an attribution factor using the formula below. $$\text{Customer absolute financed emissions} = \text{In-scope emissions from customer} \times \frac{\text{ANZ EAD to customer}}{\text{Customer total equity + debt (private company) or EVIC (public company)}}$$ To calculate the absolute financed emissions for each sector, we sum the customer absolute financed emissions of all customers in-scope for that sector. ## Absolute facilitated emissions ANZ determines what portion of our pathway customers' in-scope emissions are attributable to our facilitation activities, by multiplying each of our pathway customers' in-scope emissions by an attribution factor using the formula below: $$\text{Customer absolute facilitated emissions} = \text{In-scope emissions from customer} \times \frac{\text{ANZ facilitated amount to customer}^2}{\text{Customer total equity + debt (private company) or EVIC (public company)}}$$ To calculate the absolute facilitated emissions for each sector, we sum the facilitated emissions of all customers in-scope for that sector. ## Data quality Average data quality scores for absolute financed and facilitated emissions by sector are calculated in accordance with guidance in the PCAF Reporting Standard Part A and B. | Sector | Baseline Year | Scope | Absolute financed emissions data score | | | Absolute facilitated emissions data score | | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | | Baseline | 2023 | 2024 | 2025 | Baseline | 2023 | 2024 | 2025 | | Power generation | 2020 | 1 | Not Reported | 1.79 | 1.57 | 1.54 | Not Reported | 1.87 | 1.36 | 1.31 | | Oil and gas | 2020 | 1 and 2 | 1.19 | 1.18 | 1.18 | 1.13 | 1.30 | 1.14 | 1.08 | 1.47 | | Thermal coal | 2020 | 3 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | 3.00 | | | 2020 | 1 and 2 | 2.25 | 1.81 | 1.80 | 1.61 | 3.00 | | | | | Auto manufacturing | 2022 | 3 | 1.48 | 1.56 | 1.56 | 1.61 | 1.99 | 1.99 | 2.00 | 2.00 | | Aviation | 2019 | 1 | 1.87 | 1.57 | 1.74 | 1.66 | 2.00 | 1.00 | 1.00 | 1.00 | | Shipping | 2022 | 1 | 1.27 | 1.29 | 1.28 | 1.31 | 2.00 | 2.00 | | | | Aluminium | 2021 | 1 and 2 | 2.06 | 2.33 | 2.19 | 2.32 | 1.74 | 1.94 | 1.94 | 1.48 | | Cement | 2021 | 1 and 2 | 1.87 | 2.00 | 1.79 | 1.73 | 2.00 | 2.00 | 2.00 | | | Steel | 2021 | 1 and 2 | 1.30 | 1.09 | 1.09 | 1.13 | 1.49 | | | | | Australian residential home loans | - | 1 and 2 | - | 5.00 | 5.00 | 5.00 | - | | | | --- # Appendix 6: TCFD-related metrics and industry exposures ## Exposure at Default (\$b)¹ | Climate exposed sub-industry | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | | **Agriculture** | **44.1** | **45.0** | **53.6** | | Agriculture | 31.5 | 32.7 | 39.5 | | Beverages | 4.0 | 2.6 | 2.7 | | Paper and forest products | 1.0 | 1.1 | 1.0 | | Packaged foods and meats | 7.6 | 8.7 | 10.4 | | **Energy** | **29.9** | **27.4** | **31.0** | | Coal² | 0.9 | 0.7 | 0.7 | | Electric utilities³ | 13.5 | 13.6 | 19.8 | | Oil and gas⁴ | 15.5 | 13.1 | 10.5 | | **Transportation** | **15.9** | **15.0** | **17.9** | | Air freight | 3.1 | 2.7 | 3.4 | | Automobiles | 4.4 | 4.5 | 5.6 | | Maritime transportation | 1.4 | 1.2 | 1.0 | | Passenger air | 0.3 | 0.3 | 0.7 | | Rail transportation | 1.8 | 1.4 | 1.6 | | Trucking services | 4.9 | 4.9 | 5.6 | | **Materials and buildings** | **103.9** | **104.3** | **116.6** | | Capital goods | 21.2 | 21.0 | 21.4 | | Chemicals | 3.5 | 3.3 | 3.8 | | Construction materials | 1.3 | 1.2 | 1.2 | | Metals and mining | 8.0 | 7.4 | 7.3 | | Real estate management and development | 69.9 | 71.4 | 82.9 | | **Total** | **193.8** | **191.7** | **219.1** | --- # Appendix 7: ANZ Scope 1, Scope 2 and Scope 3 Operational GHG emissions reporting methodology ## Standards ANZ's Australian Scope 1 and Scope 2 (location-based) greenhouse gas (GHG) emissions are reported in accordance with the National Greenhouse and Energy Reporting (Measurement) Determination 2008. The remaining operational international greenhouse gas emissions are calculated in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004). ## Boundaries For 2025, Operational GHG emissions are reported for the periods: * 1 July to 30 June; and * 1 October to 30 September. From 2026, emissions will be reported from 1 October to 30 September. Emissions are expressed in terms of metric tonnes of carbon dioxide equivalent ($\text{tCO}_2\text{-e}$). We use the 'operational control' approach when reporting our Scope 1 and Scope 2 emissions, as it reflects the activities where we have the direct ability to implement, manage and influence emissions reduction initiatives. This approach also aligns with Australia's National Greenhouse and Energy Reporting Act 2007 (Cth). Our Scope 1 and Scope 2 emissions arise from activities undertaken at corporate offices, branches and business centres, data centres, and ATMs for the reporting period. We also include emissions arising from certain activities that are ancillary to the principal activity performed at another facility and which come under the 'overall control' of ANZ. These emissions arise from 'tool-of-trade' vehicles driven by our employees which are ancillary to the activities of a fixed location, e.g., a retail branch or business centre. We report Scope 2 emissions using both a location- and market-based method. Scope 2 (market-based) emissions allows us to reflect the impact of our procurement decisions on renewable energy. Our Scope 3 operational emissions include emissions upstream of our operations that are a consequence of business activities, but arise from sources in our value chain outside our direct operational control. Scope 3 emissions attributed to our financing, facilitation and investment activities are not included. ## Gases ANZ's annual operational GHG emissions inventory includes all seven GHGs listed under the Kyoto Protocol: * Carbon dioxide ($\text{CO}_2$) * Methane ($\text{CH}_4$) * Nitrous oxide ($\text{N}_2\text{O}$) * Hydrofluorcarbons ($\text{HFCs}$) * Perfluorcarbons ($\text{PFCs}$) * Sulphur Hexafluoride ($\text{SF}_6$) * Nitrogen Trifluoride ($\text{NF}_3$) ## Exclusions There are several sources of operational scope 3 emissions that have been excluded from our inventory on the basis that they are immaterial, or that their quantification is not currently technically feasible or cost effective. Excluded emission sources include, but are not limited to, the following: the use of sold products (such as internet and mobile banking), business travel (public transport used for business-related purposes), food and catering, cleaning services, and professional services. ## Restatements From time to time, ANZ may restate climate-related data to correct for errors in prior reporting periods, such as errors in calculation, interpretations, or methodology that are considered to have a material impact on the reported data. To ensure consistency, comparability, and accuracy over time, ANZ may also restate due to activities that result in a material change in our data, including changes in calculation methodology, mergers, acquisitions, and divestments, or changes in data availability like replacing estimates with actuals. We use the most current emission factors available for the reporting year, which in many jurisdictions are based on forecasts derived from prior year actuals. We do not revise previously reported data when these factors are updated. Materiality is assessed based on both qualitative and quantitative factors, including the impact of the change on users of the report and ANZ's ability to track and accurately report on performance against targets. For the quantitative assessment, a 5% materiality threshold of our total in-scope operational emissions is used as a guide, but this is not strictly applied due to the consideration of qualitative factors. When a restatement results in a change to a baseline, ANZ will review the impact this has on the appropriateness of its target. ## Use of offsets Our aim is to reduce emissions where ANZ considers practical, however, our residual measured Scope 1, Scope 2 and Scope 3 operational emissions are offset through purchasing, allocating and retiring eligible offsets. We procure and retire carbon offsets equivalent to all measured global Scope 1, Scope 2 and operational Scope 3 emissions. We may forward purchase carbon offsets, based on forecast future GHG emissions. Carbon offsets are retired upon purchase. There is an annual retrospective reconciliation process of the Group's Scope 1, Scope 2 and Scope 3 (market-based method) GHG emissions to carbon offsets retired and allocated to the reporting year. Our criteria for eligible offsets include: * Offset Projects are to be located in markets in which ANZ operates. * Projects considered by ANZ to be unsuitable (e.g., from an ethics, feasibility, reputation, community support, additionality and/or permanency perspective) are excluded. Examples of such projects include, but are not limited to: * Nuclear and Large-Scale Hydro Electricity projects; * Landfill gas, coal seam gas, coal mine gas or biogas, flaring and/or generation. --- # Glossary of Terms | Term | Definition | | :--- | :--- | | **"ANZ" or "the Group" or "our" or "we"** | ANZ Group Holdings Limited and its subsidiaries, unless otherwise indicated. | | **ANZ Bank Group** | ANZ BH Pty Ltd and each of its subsidiaries, including ANZBGL and ANZ Bank New Zealand. | | **ANZ Bank New Zealand** | ANZ Bank New Zealand Limited. | | **ANZ Group** | ANZBGL Group or the ANZGHL Group as a whole (including all businesses), as the context requires. | | **Absolute emissions** | Total amount of greenhouse gases emitted to the atmosphere over a specific period. | | **Absolute facilitated emissions** | The portion of our emissions attributable to ANZ's capital markets activity (where ANZ is a lead bookrunner for a syndicated loan or bond), calculated in accordance with Appendix 5: Financed and Facilitated Emissions Methodology. | | **Absolute financed emissions** | The portion of emissions attributable to ANZ's financing activities, calculated in accordance with Appendix 5: Financed and Facilitated Emissions Methodology. | | **Annual Average Loss (AAL)** | AAL estimates the annual average insurance losses from damage to property caused by insured perils. | | **Biodiversity** | The TNFD refers to 'biodiversity' as "the variability among living organisms from all sources, including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems". | | **Carbon offsets** | Carbon offset units are generated by projects that reduce, remove or capture emissions from the atmosphere. | | **Climate Change Risk Assessment / CCRA** | An online tool that is used to help guide customer engagement and assess and manage climate-related risks of large business customers, including LEEP customers. The CCRA includes an assessment of our customers' exposure to potential physical risks and transition risks and the maturity of the customer in developing a transition plan. | | **Climate Disclosure Program** | An internal program of work established to enable ANZ to meet the mandatory climate-related disclosure requirements legislated by the Australian Government in 2024. | | **Climate risk** | The financial and non-financial risks arising from climate change, including physical, transition and liability risks. | | **Customer transition plan assessment framework** | The internal assessment framework that ANZ developed to assess the maturity of a customer's transition plan. | | **Direct financing / directly finance** | Having a direct nexus to the asset, such as limited recourse project financing or a 'use-of-proceeds' or 'project-related' corporate loan. It does not include general corporate purpose lending. | | **Emissions intensity** | Volume of emissions per unit of some activity or output. | | **Emissions intensive sectors** | Sectors that generate high levels of greenhouse gas emissions, typically including fossil fuel extraction, power generation, steel, cement, chemicals, aviation, and shipping. | | **ENCORE (Exploring Natural Capital Opportunities, Risks and Exposures)** | The ENCORE tool consolidates international and national data from public databases. The ENCORE tool was developed by the Natural Capital Finance Alliance (the NCFA) and the World Conservation Monitoring Centre (the UNEP-WCMC). | | **Energy customer** | These are customers of our Institutional business (excluding Corporate Bank) with predominant activities in one of the following: Thermal coal mining, Oil and gas extraction, Petroleum services (comprising exploration service, refining, product wholesaling and distribution), Electricity generation. When identifying energy customers, ANZ considers the ANZSIC code applied to the customer. | | **Exposure at Default (EAD)** | Represents the Group's exposure based on APRA's calculation formula which includes total committed loans (drawn plus a proportion of off-balance sheet exposures as specified by APRA). | | **Facilitated emissions** | Emissions associated with certain capital markets activities of a financial institution. They are estimated based on an attributed proportion of the financial institution's customers' emissions. See Appendix 5: Financed and Facilitated Emissions Methodology for information about ANZ's facilitated emissions. | | **Financed emissions** | Emissions associated with financing through loans or other financial products that result in a credit exposure. They are estimated based on an attributed proportion of the financial institution's customers' emissions. These financed emissions are part of a financial institution's Scope 3, category 15 emissions. See Appendix 5: Financed and Facilitated Emissions Methodology for information about ANZ's financed emissions. | | **Financial materiality** | Information is material if omitting, misstating or obscuring that information could reasonably be expected to influence decisions that primary users of general purpose financial reports make on the basis of those reports, which include financial statements and sustainability-related financial disclosures and which provide information about a specific reporting entity. | | **Greenhouse gas (GHG)** | The greenhouse gases listed in the Kyoto Protocol being carbon dioxide ($\text{CO}_2$), methane ($\text{CH}_4$), nitrous oxide ($\text{N}_2\text{O}$), hydrofluorocarbons ($\text{HFCs}$), nitrogen trifluoride ($\text{NF}_3$), perfluorocarbons ($\text{PFCs}$), and sulphur hexafluoride ($\text{SF}_6$). | | **Greenwashing** | The practice of misrepresenting the extent to which an entity, product or strategy is environmentally friendly, sustainable or ethical. | | **Hard-to-abate** | Sectors where the reduction of carbon emissions or the transition to net zero by 2050 is difficult due to the lack of available technology to abate or prohibitive costs of abatement. | | **Insurable perils** | ANZ's physical risk assessment considers four climate perils: bushfires, cyclones, floods and storms collectively referred to as insurable perils. Insurance coverage for these events can vary depending on the insurer and the type of policy, such as building insurance compared with home and contents insurance, or standard coverage compared with optional add-ons. These four climate perils are generally included in standard building insurance policies. | | **Intergovernmental Panel on Climate Change (IPCC)** | The United Nations body for assessing the science related to climate change. | | **Labelled sustainable finance** | Existing banking products with a specific sustainability related label, e.g., Green, Social, Sustainability or Sustainability-Linked. | | **Large business customers** | The customers of ANZ Institutional division where ANZ has a credit exposure. | | **Large Emitters Engagement Program (LEEP)** | Our signature customer engagement program, which provides the framework for engaging with LEEP customers on their transition plans. | | Term | Definition | | :--- | :--- | | **LEEP customer selection** | Customers must satisfy both general requirements and cohort-specific requirements to be selected as LEEP customers. These requirements are explained below. ANZ maintains the discretion to include other customers within LEEP or remove customers, having regard to the factors identified on page 12. This may occur as a result of ANZ's periodic review of the requirements as they apply to ANZ's large business customers from time to time. General requirements: Each customer must have: A minimum of A\$3 million in advised credit limits, and An ongoing relationship with ANZ. If a customer's advised credit limits relate to direct financing such as project or asset-specific financing, they are not considered for inclusion in LEEP. Cohort-specific requirements: There are additional selection criteria for some cohorts of LEEP customers. These are: a) 100 largest emitting business customers: Customers identified by ANZ as the 100 customers with the highest reported or estimated emissions encompassing Scope 1 and Scope 2 emissions for all customers and the most relevant Scope 3 emissions for coal, oil and gas, and mining infrastructure customers. The list of customers is based on emissions calculated or estimated in August 2023. b) Safeguard Mechanism customers: Customers that are 'responsible emitters' in respect of a designated large facility (as defined in the National Greenhouse and Energy Reporting Act 2007 (Cth)) that remains subject to a declining baseline for the purposes of the Australian Safeguard Mechanism. The list of customers is based on designated large facilities that were mapped to customers in August 2023. c) Customers included in our sectoral pathways: The Financed and Facilitated Emissions Methodology explains how customers are selected for inclusion in each of our sectoral pathways. d) Other energy customers: Other energy customers that meet the requirements for LEEP customer selection (but excluding customers who own largely renewables assets and/or other lower emissions power generation assets). e) Other large emitters: Customers that ANZ has identified as large emitters such as large agribusiness customers or chemical manufacturers. LEEP comprises large business customers that meet the requirements for LEEP customer selection, as applicable, and includes customers from the following cohorts: a) 100 largest emitting business customers b) Certain Safeguard Mechanism customers c) Certain customers included in our sectoral pathways d) Other energy customers e) Other large emitters As a guide, ANZ's intention is to maintain 140-160 customers within LEEP. | | **Liability risk** | In the context of this report, potential litigation or regulatory action that may arise as a consequence of a failure to adequately consider or respond to the impacts of climate change (including physical and transition risks). This includes the risk of greenwashing. | | **Location-based** | Emissions accounting method that incorporates gross emissions from purchased electricity calculated using the emissions intensity of the national grid. | | **Market-based** | Emissions accounting method that incorporates net Scope 2 emissions from purchased electricity after renewable energy certificates have been taken into account. | | **Nature** | The TNFD refers to 'nature' as the "natural world, with an emphasis on the diversity of living organisms (including people) and their interactions among themselves and with their environment". | | **Net zero** | The state where greenhouse gas emissions are balanced by an equivalent amount of carbon removal from the atmosphere, resulting in no net increase in global emissions. | | **Network for Greening the Financial System (NGFS)** | A group of Central Banks and Supervisors willing, on a voluntary basis, to share best practices and contribute to the development of environment and climate risk management in the financial sector and to mobilise mainstream finance to support the transition towards a sustainable economy. This includes the development of NGFS climate scenarios that provide the starting point for analysing the impact of climate risks on the economy and financial system. | | **New to bank** | Customer where ANZ has had no meaningful lending relationship within the last 12 months. Entities or assets acquired from existing ANZ customers are not classified as new to bank customers. | | **Operational emissions** | Greenhouse gas emissions associated with operating the business excluding, for example, financed emissions. Our operational emissions comprise our Scope 1 and Scope 2 emissions, and certain categories of Scope 3 emissions, and excludes financed emissions, facilitated emissions and emissions associated with ANZ's investments. | | **Paris Agreement** | A legally binding international treaty on climate change adopted at the UN Climate Change Conference ($\text{COP21}$) in Paris in 2015. Its overarching goal is to hold "the increase in the global average temperature to well below $2^\circ\text{C}$ above pre-industrial levels" and pursue efforts "to limit the temperature increase to $1.5^\circ\text{C}$ above pre-industrial levels". | | **Paris agreement goals / goals of the Paris agreement** | The main goals of the Paris Agreement, which include: (i) limiting the global temperature increase to well below $2^\circ\text{C}$ above pre-industrial levels, with efforts to limit it to $1.5^\circ\text{C}$; (ii) achieving global net zero greenhouse gas emissions by the second half of the century. | | **Paris-aligned** | Paris alignment (or Paris-aligned) means aligning the Paris Agreement mitigation goal to strengthen the global response to the threat of climate change: a) By holding the increase in the global average temperature to well below $2^\circ\text{C}$ above pre-industrial levels; and b) Pursuing efforts to limit the temperature increase to $1.5^\circ\text{C}$ above pre-industrial levels. | | **Physical risk** | Risks arising from both longer-term changes in climate (chronic risk) as well as changes to the frequency and magnitude of extreme weather events (acute risk). Examples of chronic physical risk drivers include rising sea levels, rising average temperatures and ocean acidification. Examples of acute physical risk drivers include heatwaves, floods, bushfires, storms and cyclones. | | **Portfolio weighted emissions intensity** | A measure of the carbon intensity of ANZ's lending, other financial services and capital markets activities, calculated by weighting our in-scope customers' emissions intensity by ANZ's total in-scope financing and facilitation to the in-scope customer. To calculate the portfolio weighted emissions intensity for the sector, we sum the weighted emissions intensity of all in-scope customers. See Appendix 5: Financed and Facilitated Emissions Methodology for further detail. | | **Predominant activity** | The primary activity from which a company derives revenue. | | **Scope 1** | Direct greenhouse gas emissions from sources owned or controlled by a company. | | **Scope 2** | Indirect greenhouse gas emissions from consumption of purchased electricity, heat or steam. | | **Scope 3** | Other indirect greenhouse gas emissions not covered in Scope 1 or Scope 2 that occur in a company's value chain as described in table 5.1 of the Greenhouse Gas Protocol's Corporate Value Chain (Scope 3) Accounting and Reporting Standard. | | **Sectoral pathways** | Industry-specific trajectories of emissions reductions. | | **Sensitive sectors** | An industry or business category that ANZ considers may present heightened environmental, social, or governance risks, or significant potential negative impacts. These are: Energy Industry, Extractives Industry, Land and Forest Management, Water Management, and Military Equipment. | | **Sustainability-Linked** | A type of labelled sustainable finance where the economic characteristics (e.g., pricing outcomes) of the financial instrument are linked to predetermined sustainability performance objectives. | | **Sustainable Aviation Fuel (SAF)** | A renewable or waste-based alternative to conventional jet fuel, designed for direct use without engine modifications. It adheres to recognised sustainability standards and delivers a reduction in life cycle greenhouse gas emissions. | | **Thermal coal mining customer/thermal coal miner** | A large business customer allocated by ANZ to ANZSIC code 1102 (Brown coal mining). ANZ considers the end use of coal when allocating an ANZSIC code. If a customer's predominant activity is producing thermal coal used for power generation, they are assigned to ANZSIC code 1102. ANZ excludes metallurgical coal miners and diversified miners that produce thermal coal from ANZSIC code 1102. | | **Transition plan** | A climate-related transition plan is an aspect of an entity's overall strategy that lays out the entity's targets, actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its emissions. | | **Transition planning** | The strategic process that an entity follows to set its transition-related goals and plan its actions for its transition towards a lower-carbon and/or climate-resilient economy. | | **Transition risk** | Risks arising from the transition to a lower carbon economy, including changes in domestic and international policy and regulatory settings, technological innovation, social adaptation and market changes. | | **Uninsurable perils** | ANZ physical risk assessment considers two coastal climate perils: coastal erosion and coastal inundation - collectively referred to as uninsurable perils. Insurance coverage for these events can vary depending on the insurer and the type of policy, such as building insurance compared with home and contents insurance, or standard coverage compared with optional add-ons. These two climate perils are generally not covered under standard building insurance policies. | | **Upstream gas customer** | An energy customer within ANZSIC code 1200 (predominant activity is oil and gas extraction). Note: This definition includes customers with oil-related extraction activities. | --- # Independent Assurance Statement ## Independent Reasonable and Limited Assurance Report to the Directors of ANZ Group Holdings Limited **KPMG** ### Our Opinion and Conclusions i) **Limited Assurance Conclusion ANZ 2025 Climate Report** Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the ANZ 2025 Climate Report, has not been prepared by ANZ Group Holdings Limited, in all material respects, in accordance with the Criteria for the year ended 30 September 2025. ii) **Reasonable Assurance Opinion - 2025 operational GHG emissions Scope 1 and 2 (location-based)** In our opinion, the global operational GHG Emissions (Scope 1 and 2) (location-based) has been prepared by ANZ Group Holdings Limited in all material respects, in accordance with the Criteria for the year ended 30 September 2025. iii) **Limited Assurance Conclusion 2025 operational GHG emissions Scope 3 (location-based) and Scope 1,2 and 3 (market-based)** Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the global operational Scope 3 GHG Emissions (location-based) and global operational Scope 1, 2 and 3 emissions (market-based), has not been prepared by ANZ Group Holdings Limited, in all material respects, in accordance with the Criteria for the year ended 30 September 2025. ### Information Subject to Assurance and Criteria Used as the Basis of Reporting ANZ Group Holdings Limited (ANZ) engaged KPMG to perform a limited assurance and reasonable assurance engagement for the year ended 30 September 2025. KPMG's scope of work comprised: | Information subject to assurance | Level of assurance | Location | Criteria used as the Basis of Reporting (the "Criteria")¹ | | :--- | :--- | :--- | :--- | | i) ANZ 2025 Climate Report | Limited | Pages 3-81 | TCFD, ANZ Climate Scenario Analysis Methodology, ANZ Financed and Facilitated Emissions Methodology, ANZ Social and Environmental Sustainability Target Methodology | | ii) Global operational GHG Emissions (Scope 1 and 2) (location-based) being 80,870 $\text{tCO}_2\text{-e}$. ("GHG emissions (reasonable assurance scope)") | Reasonable | Page 52² | The GHG Protocol, ANZ Scope 1, Scope 2 and Scope 3 Operational GHG emissions reporting methodology | | iii) Global operational Scope 3 GHG Emissions (location-based) being 77,173 $\text{tCO}_2\text{-e}$ and global operational Scope 1, 2 and 3 emissions (market-based) being 78,862 $\text{tCO}_2\text{-e}$. ("GHG emissions (limited assurance scope)") | Limited | Page 52² | The GHG Protocol, ANZ Scope 1, Scope 2 and Scope 3 Operational GHG emissions reporting methodology | We assessed the information subject to assurance against the Criteria. The information subject to assurance needs to be read and understood together with the Criteria. 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 license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. --- ## Basis for Opinion and Conclusions We conducted our work in accordance with Australian Standard on Assurance Engagements ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information and ASAE 3410 Assurance Engagements on Greenhouse Gas Statements (Standards). We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our opinion and conclusions. In accordance with the Standards, we have: * used our professional judgement to assess the risk of material misstatement and plan and perform the engagement to obtain: * limited assurance that we are not aware of any material misstatements in the ANZ 2025 Climate Report and GHG emissions (limited assurance scope), whether due to fraud or error; and * reasonable assurance that the GHG emissions (reasonable assurance scope) is free from material misstatement, whether due to fraud or error. * considered relevant internal controls when designing our assurance procedures, however we do not express an opinion or conclusion on their operating effectiveness; and * ensured that the engagement team possess the appropriate knowledge, skills and professional competencies. ## Summary of Procedures Performed Our assurance opinion and conclusions are based on the evidence obtained from performing the following limited assurance procedures: * Enquiries with management responsible for developing the content (qualitative and quantitative) within the ANZ 2025 Climate Report to understand the approach for monitoring, collation and reporting; * Interviews with management to understand ANZ's process for the implementation of ANZ's Climate Risk Standard; * Comparing material text and data (on a sample basis) presented in the the ANZ 2025 Climate Report to underlying sources. This includes considering whether all material matters are included, whether any have been omitted and whether the reported text and data accurately reflect the underlying information; * Assessment that the information is presented in accordance with the Criteria, and an evaluation of the suitability of the ANZ Financed and Facilitated Emissions Methodology, ANZ Social and Environmental Sustainability Target Methodology and ANZ Scope 1, Scope 2 and Scope 3 Operational GHG emissions reporting methodology includes understanding how the inclusion of Suncorp Bank impacts the overarching Financed and Facilitated Emissions Methodology; * Sample testing over performance data relating to the Large Emitters Engagement Program and \$100 billion Social and Environmental Sustainability Target; * Sample testing over ANZ's sectoral metrics and targets for power generation, oil and gas, thermal coal, auto manufacturing, shipping, aluminium, cement, steel, large-scale commercial real estate, and aviation; * Sample testing over performance data relating to the new sectoral facilitated emissions; * Interviews with key personnel responsible for GHG emissions data collection and reporting to understand processes; * Assessment of emission factor sources and re-performing emissions calculations using the applied emissions factors; * Conducting walkthroughs and undertaking analytical procedures of key data sets; * Agreeing all significant GHG emissions to relevant underlying sources; * Reading the full ANZ 2025 Climate Report in its entirety to ensure it is consistent with KPMG's overall knowledge of, and experience with, the climate change performance of ANZ; * Conduct walkthroughs with management to understand the material climate risk identification process and climate scenario analysis development; * Assess the suitability and presentation of the scenario analysis disclosures against the scenario analysis methodology; * Conduct walkthroughs to understand management's classification criteria for geographic vulnerabilities, insurability, home insurance affordability (HIA), and financial impacts, and review hazard model selection, calculations, and exposure metrics across ANZ and Suncorp Bank datasets; and * Perform sample testing over high-risk properties to test the accuracy of the underlying Australian home loan portfolio data and assess the appropriateness of ANZ's financial quantification methodology. In addition, we performed the following reasonable assurance procedures over the GHG emissions (reasonable assurance scope): * Testing the operating effectiveness of key controls, including IT systems; * Evaluating the basis for determining operational control and reporting boundaries and testing back to underlying evidence; and * Substantive testing using larger sample sizes and reconciling samples of Scope 1 fuels (business transportation) and Scope 2 electricity transactions data back to source documentation. ### Inherent Limitations Inherent limitations exist in all assurance engagements due to the selective testing of the information being examined. It is therefore possible that fraud, or errors may occur and not be detected. Non-financial data may be subject to more inherent limitations than financial data, given both its nature and the methods used for determining, calculating, and estimating such data. The precision of different measurement techniques may also vary. The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, evaluation and measurement techniques that can affect comparability between entities and over time. As stated in the Disclaimer and Important Notices section of the ANZ 2025 Climate Report, greenhouse gas quantification is subject to inherent uncertainty. Reasons for this uncertainty include the nature of the information and the uncertainties inherent in: (i) the methods used for determining or estimating the appropriate amounts, (ii) information used to determine emission factors and (iii) the values needed to combine emissions of different gases. We specifically note that ANZ has used estimates, assumptions or proxies in the calculation of the estimated financed emissions of its lending portfolio and the baselines and performance for its targets. ### How the Standards Define Reasonable Assurance, Limited Assurance and Material Misstatement Reasonable assurance is a high level of assurance, but is not a guarantee that it will always detect a material misstatement when it exists. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Accordingly, we do not express a reasonable assurance conclusion. Misstatements, including omissions, are considered material 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 solely for the Directors of ANZ who have voluntarily commissioned this independent assurance over the information subject to assurance to enhance transparency and confidence in their oversight. This report may not be suitable for another 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. ## Management's Responsibility Management are responsible for: * Determining appropriate reporting topics and selecting or establishing suitable criteria for measuring, evaluating and preparing the information subject to assurance; * Ensuring that those criteria are relevant and appropriate to ANZ and the intended users; and * Establishing and maintaining systems, processes and internal controls that enable the preparation and presentation of the information subject to assurance that is free from material misstatement, whether due to fraud or error. ## Our Responsibility Our responsibility is to perform: * A limited assurance engagement in relation to the ANZ 2025 Climate Report and GHG emissions (limited assurance scope) for the year ended 30 September 2025; and * A reasonable assurance engagement in relation to the GHG emissions (reasonable assurance scope) for the year ended 30 September 2025 and to issue an assurance report that includes our opinion and conclusions based on the procedures we have performed and the evidence we have obtained. ## Our Independence and Quality Management We have complied with our independence and other relevant ethical requirements of the Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board, and complied with the applicable requirements of Australian Standard on Quality Management 1 to design, implement and operate a system of quality management. ## Appendix 1 * TCFD: Task Force on Climate-related Financial Disclosures 2021 * ANZ Climate Scenario Analysis Methodology in Appendix 4 of the ANZ 2025 Climate Report * ANZ Financed and Facilitated Emissions Methodology in Appendix 5 of the ANZ 2025 Climate Report * KPMG * 2024 ANZ Social and Environmental Sustainability Target Methodology available at **anz.com/esgreport** * The GHG Protocol: The World Resources Institute / World Business Council for Sustainable Development ($\text{WRI/WBCSD}$), The GHG Protocol Corporate Accounting and Reporting Standard * ANZ Scope 1, Scope 2 and Scope 3 Operational GHG emissions reporting methodology in Appendix 7 of the ANZ 2025 Climate Report **KPMG** **Sarah Newman** Partner Melbourne 7 November 2025 **KPMG** **Maria Trinci** Partner Melbourne 7 November 2025 --- **ANZ** **anz.com/esgreport** ANZ Group Holdings Limited (ANZ) ABN 16 659 510 791