# 2023 ESG SUPPLEMENT Approved for distribution by ANZ’s Ethics, Environment, Social & Governance Committee --- # SHAPING A WORLD WHERE PEOPLE AND COMMUNITIES THRIVE More than ever, ANZ has shaped itself as a bank that supports our customers across 29 markets. And today, from individuals to businesses, we continue to build a bank that helps them achieve sustainable financial wellbeing. It’s an uncompromising purpose that helps our customers make the most of their world, every day. --- # CONTENTS **Overview and governance** 4 - Our reporting suite 4 - 2023 ESG performance snapshot 6 - About our business 7 - ESG governance and risk management 8 - What matters most to our stakeholders 10 - Stakeholder engagement 13 - Our ESG targets 15 **Environmental sustainability** 21 - Our approach to climate change 21 - Financing sustainability 22 **Housing** 23 - Improving the availability of suitable and affordable housing 23 **Financial wellbeing** 26 - Supporting financial wellbeing 26 - Community investment 32 **Customer experience** 35 - Helping customers better manage their money and save with ANZ Plus 35 - Digital banking in the Pacific 36 - Supporting customers in need of extra care and hardship 37 - Resolving customer complaints fairly 41 **Information security** 42 - Scams 42 - Cyber security 43 - Financial crime 44 - Data protection and privacy 45 **Ethics, conduct and culture** 46 - Improving conduct and culture 46 - Social and environmental risk management 49 - Managing ESG risks and opportunities in our supply chain 52 - Our approach to human rights 54 - Contributing to reconciliation in Australia 56 - Leading Indigenous transformational change in Aotearoa New Zealand 57 - Our approach to accessibility and inclusion 58 - Managing our industry associations and tax 60 **Employee wellbeing, engagement and inclusion** 61 - Meeting the needs of a changing workforce 61 - Wellbeing and engagement 62 - Attracting and retaining employees 63 - Learning and development 64 - Diversity and inclusion 65 **Explanatory notes** 69 **KPMG assurance opinion** 70 ### IMPORTANT NOTICE | Version | Date issued | Brief outline of change | | --- | --- | --- | | 1.0 | 13 Nov 2023 | Version for publication | | 1.1 | 10 Nov 2025 | Change: Financial resilience target withdrawn as outlined in footnote on page 19. | **Acknowledgement of Country and Traditional Owners** ANZ acknowledges the Traditional Custodians of Country throughout Australia and recognises the continuing connection to lands, skies and waterways. We pay our respects to Aboriginal and Torres Strait Islander cultures, and to Elders past and present. **Whakatauākī, ANZ New Zealand’s Proverb** *Tākiri-ā-Rangi* The expansive universe above *Tākiri-ā-Nuku* The beauty of the proceeding lands below *Tākiri Te Awatea* A new dawn beckons *Kia Puawai Ki Te Ao* A blossoming to the world *Te Kare A Roto E* With ripples of compassion and hope for all. Image: ANZ's Gothic bank branch, Melbourne. --- # OUR 2023 REPORTING SUITE ### About this report On 3 January 2023, Australia and New Zealand Banking Group Limited (ANZ BGL) established by a scheme of arrangement, a non-operating holding company, ANZ Group Holdings Limited (ANZ GHL), as the new listed parent holding company of the ANZ Group and implemented a restructure to separate ANZ’s banking and certain non-banking businesses into the ANZ Bank Group and ANZ Non-Bank Group (Restructure). This report provides stakeholders with more detailed information on ANZ GHL and its subsidiaries (referred to as “ANZ” or “the Group” or “our”) ESG performance and challenges. This report is structured in two sections. The first outlines our purpose and values; our approach to ESG governance and risk management; our approach to the identification and prioritisation of material issues; our stakeholder engagement and our ESG targets. The second section outlines our management of material ESG issues aligning with our focus areas of environmental sustainability; housing; financial wellbeing; customer experience; information security; ethics, conduct and culture; and information on employee wellbeing and inclusion. ### Frameworks Our Self-assessment Index for the United Nations Principles of Responsible Banking; comparative performance data, including Equator Principles data; and our United Nations Guiding Principles Reporting Framework index are contained in our separate 2023 ESG Data and Frameworks Pack available at [anz.com/esgreport](http://anz.com/esgreport). This report has been prepared in accordance with the Global Reporting Initiative (GRI) 2021 Standards. A complete GRI Index is available in our 2023 ESG Data and Frameworks Pack. We have considered aspects of the Sustainability Accounting Standards Board (SASB) Standards. Additional information can also be found in the Financed Emissions Methodology and the Social and Environmental Sustainability Target Methodology available at [anz.com/esgreport](http://anz.com/esgreport). ### Assurance KPMG has performed limited assurance with respect to this ESG Supplement and the ESG Data and Frameworks Pack, in accordance with the GRI Universal Standards. A copy of KPMG's independent limited assurance report is on pages 70-71. ### Boundaries This report covers all ANZ operations over which, unless otherwise stated, we have control for the financial year commencing on 1 October 2022 and ending 30 September 2023. Monetary amounts in this document are reported in Australian dollars, unless otherwise stated. ### Reporting suite We produce a suite of reports to meet the needs and requirements of a wide range of stakeholders including shareholders, customers, employees, regulators, non-government organisations and the community. This ESG Supplement complements our 2023 Annual Report available at [anz.com/annualreport](http://anz.com/annualreport). Our 2023 Climate-related Financial Disclosures, subject to limited assurance by KPMG, describes our progress towards implementing our Climate Change Commitment and Environmental Sustainability Strategy, in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) 2017 recommendations. ANZ joined the Net-Zero Banking Alliance (NZBA) in 2021 and the report sets out how we are taking action in line with this commitment. The report is available at [anz.com/esgreport](http://anz.com/esgreport). Our 2023 Corporate Governance Statement discloses how we have complied with the Australian Securities Exchange (ASX) Corporate Governance Council’s ‘Corporate Governance Principles and Recommendations – 4th edition’ and is available at [anz.com/corporategovernance](http://anz.com/corporategovernance). We are continually seeking to improve our reporting suite and welcome feedback on this report. Please address any questions, comments or suggestions in relation to this report to [corporate.sustainability@anz.com](mailto:corporate.sustainability@anz.com). > You can trace our approach to human rights throughout this report using this symbol --- # DISCLAIMER & IMPORTANT NOTICES The material in this report contains general background information about the Group’s activities current as at 9 November 2023. It is information given in summary form and does not purport to be complete. It has 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 ANZ Annual Report available at [anz.com/shareholder/centre/](http://anz.com/shareholder/centre/). 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, capital adequacy, sustainability objectives or targets, specific provisions and risk management practices. When used in the report, the words ‘forecast’, ‘estimate’, ‘goal’, ‘target’, ‘indicator’, ‘plan’, ‘pathway’, ‘ambition’, ‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to the Group and its management, are intended to identify forward-looking statements or opinions. Those statements are usually predictive in character; or may be affected by inaccurate assumptions or unknown risks and uncertainties or may differ materially from results ultimately achieved. As such, these statements should not be relied upon when making investment decisions. These statements only speak as at the date of publication and no representation is made as to their correctness on or after this date. Forward-looking statements constitute ‘forward-looking statements’ for the purposes of the United States Private Securities Litigation Reform Act of 1995. The Group does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. ### Climate-related information This report may contain climate-related statements, including in relation to climate-related risks and opportunities, climate-related goals and ambitions, climate scenarios, emissions reduction pathways and climate projections. While the Group has prepared the statements in 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 clients), and it may be necessary to rely on assumptions, estimates or proxies where that is the case. 2. **Uncertain methodologies and modelling** – methodologies, frameworks and standards used for calculations of climate-related metrics, modelling 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. **Complexity of calculations and estimates** – Estimating financed emissions (including allocating emissions to financing activities) and emissions reduction is complex and relies on assumptions and judgments, often made in respect of long periods of time. For facilitated emissions, suitable standards to allow financial institutions to calculate facilitated emissions are still under development as at October 2023. 4. **Changes to climate-related governing frameworks** – changes to climate-related policy, laws, regulations and market practices, standards and developments, including those resulting from legal proceedings and regulatory investigations. 5. **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. 6. **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 - ANZ Data and Frameworks Pack available at [anz.com/esgreport](http://anz.com/esgreport) - ANZ Financed Emissions Methodology available at [anz.com/esgreport](http://anz.com/esgreport) - ANZ Greenhouse Gas Reporting and Carbon Offset Guidelines available [anz.com.au/about-us/esg/environmental-sustainability/environmental-footprint/](http://anz.com.au/about-us/esg/environmental-sustainability/environmental-footprint/) - ANZ Social and Environmental Sustainability Target Methodology available at [anz.com/esgreport](http://anz.com/esgreport) --- # 2023 ESG PERFORMANCE SNAPSHOT - **Environmental sustainability**: ~$8.8B funded and facilitated$^1$ in social and environmental outcomes. - **Environmental sustainability**: 80% reduction in combined Scope 1 and 2 greenhouse gas emissions against a 2015 baseline. - **Financial wellbeing**: 36% of ANZ Plus customers have set up a savings goal since October 2022. - **Financial wellbeing**: More than 87,000 participants in our financial education programs$^2$. - **Housing**: Over $5.3B funded and facilitated to deliver more affordable, accessible and sustainable homes to buy and rent since 2018$^3$. - **Housing**: Supported more than 8,000 customers into healthier homes in New Zealand$^4$. - **Ethics, conduct and culture**: Spent $11.7M with 46 Indigenous businesses in Australia. - **Employee wellbeing and inclusion**: 87% employee engagement. - **Employee wellbeing and inclusion**: 37.3% of women in leadership$^5$. - **Information security**: Stopped more than $100 M going to criminals$^6$. $^1$ Target to fund and facilitate at least $100 billion by end 2030 in social and environmental outcomes through customer activities and direct investments by ANZ, commenced 1 April 2023. $^2$ Includes individuals who have participated in more than one program (for example, people who have participated in MoneyMinded as part of Saver Plus are counted twice as they are included in both the MoneyMinded and Saver Plus totals). $^3$ In Australia and New Zealand. $^4$ Cumulative, includes the following products that have been provided since 1 October 2020: Healthy Home Loan Package and Good Energy Home Loan. $^5$ Measures representation at the Senior Manager, Executive and Senior Executive levels. Includes all employees regardless of leave status but not contractors (who are included in Full Time Equivalents (FTE)). $^6$ Via our people and systems, in reference to scams protection. *Launched in 2022, ANZ Plus is a new digital way to bank. Starting with a save and transact proposition, ANZ Plus has grown to nearly 462,000 customers in 2023.* [READ MORE ON PAGE 35] Image: ANZ Plus Coach. --- # ABOUT OUR BUSINESS We provide banking and financial products and services to over 8.5 million retail and business customers, and operate across 29 markets. Our expertise, products and services make us a bank. Our people, purpose, values and culture make us ANZ. ### Our organisation On 3 January 2023, Australia and New Zealand Banking Group Limited (ANZ BGL) established by a scheme of arrangement, a non-operating holding company, ANZ Group Holdings Limited (ANZ GHL), as the new listed parent holding company of the ANZ Group and implemented a restructure to separate ANZ’s banking and certain non-banking businesses into the ANZ Bank Group and ANZ Non-Bank Group (Restructure). The ANZ Bank Group comprises the majority of the businesses and subsidiaries that were held in ANZ BGL prior to the Restructure. The ANZ Non-Bank Group comprises banking-adjacent businesses developed or acquired by the ANZ Group to focus on bringing new technology and banking-adjacent services to the ANZ Group’s customers, and a separate service company. ### Our divisions - **Australia Retail** – serves retail customers across Australia through our branch network, ATMs, digital and mobile banking applications including ANZ Plus. - **Australia Commercial** – serves commercial and private banking customers across Australia through our business centres, digital and mobile banking applications. - **Institutional** – serves institutional and business customers across Transaction Banking, Loans and Specialised Finance, and Markets. - **New Zealand** – serves retail and commercial banking customers in New Zealand and is one of the largest New Zealand companies based on profit and assets. - **Pacific** – provides products and services to retail and commercial customers located in the Pacific Islands, where our history dates back 139 years. - **Group Centre** – provides support to the operating divisions including Technology, Property, Risk Management, Financial Management, Treasury, Strategy, Marketing, Talent & Culture, Corporate Affairs and Investor Relations. ### Our purpose and strategy Our purpose is to shape a world where people and communities thrive. It explains why we exist and drives everything we do at ANZ, including the choices we make each day about those we serve and how we operate. We bring our purpose to life through our strategy: to improve the financial wellbeing and sustainability of customers through excellent services, tools and insights that engage and retain them, and help positively change their behaviour. Integrating ESG and purpose into our strategy has created an opportunity for us to better serve our customers and generate long-term shareholder value. Through our purpose we have elevated three areas facing significant societal challenges aligned with our strategy and our reach: - Improving the financial wellbeing of our people, customers and communities by helping them make the most of their money throughout their lives; - Supporting household, business and financial practices that improve environmental sustainability; and - Improving the availability of suitable and affordable housing options for all Australians and New Zealanders. ### Our values Our values shape how we deliver our purpose-led strategy. They are the foundation of how we work – living our values every day enables us to deliver on our strategy and purpose, strengthen stakeholder relationships and earn the community’s trust. All employees and contractors must comply with our Code of Conduct, which sets the expected standards of professional behaviour and guides us in applying our values. **Our values are** - Integrity - Collaboration - Accountability - Respect - Excellence ### Supporting sustainable development We are committed to the United Nations Sustainable Development Goals (SDGs) and believe that business has an important role to play in their achievement. Our current ESG targets strive to support all of the 17 SDGs. In 2019 we became a founding signatory to the UN Principles for Responsible Banking. Under the Principles we are required to set at least two targets that address our most significant (potential) positive and negative impacts, aligned with the SDGs and the Paris Climate Agreement. We have reported our progress towards implementing the Principles using the Reporting and Self-assessment Index, available in our ESG Data and Frameworks pack at [anz.com/esgreport](http://anz.com/esgreport). This year KPMG have also provided limited assurance over our Self-assessment Index. --- # ESG GOVERNANCE AND RISK MANAGEMENT ### ESG governance and risk management The ANZ Group Holdings Limited Board (Board) is responsible for the oversight of the Group, and its overall governance and performance, with specific duties as set out in its charter available at [anz.com/corporategovernance](http://anz.com/corporategovernance). The Board, with the support of the Board Committees, is also responsible for oversight of ANZ’s governance framework. The framework seeks to provide for effective and responsible decision making, assisting ANZ in delivering on its strategy and purpose. There are six principal Board Committees: the Ethics, Environment, Social and Governance (EESG) Committee; the Audit Committee; the Risk Committee; the Human Resources Committee; the Digital Business and Technology Committee; and the Nomination and Board Operations Committee. Each Committee has its own charter setting out its roles and responsibilities. Further details about Board Committees are contained in ANZ’s Corporate Governance Statement available at [anz.com/corporategovernance](http://anz.com/corporategovernance). At management level, the Group Executive Committee comprises ANZ’s most senior executives. A delegations of authority framework outlines those matters delegated to our Chief Executive Officer (CEO) and other members of senior management. In addition, a number of formally established management committees deal with particular ongoing issues. Our ESG approach and its implementation, including how we manage our ESG risks and opportunities, are primarily overseen by the Board and management through our Board EESG Committee and executive Ethics and Responsible Business Committee (ERBC). Governance and oversight of risk management, while embedded in day-to-day activities, is the focus of committees and forums across the bank. Refer to ANZ’s 2023 Annual Report, available at [anz.com/annualreport](http://anz.com/annualreport), for an overview of ANZ’s governance structure. ### Board and Board Committees **ANZ’s Board** The Board is responsible to shareholders for the governance of the Group and oversees its operations and financial performance. The role of the Board includes the promotion of the long-term interests of ANZ. To fulfil its role the Board sets and monitors the long-term implementation of ANZ’s strategies and financial objectives. The Board has a specific responsibility to oversee and assess management’s performance in achieving strategies and budgets approved by the Board and in monitoring and managing risk across ANZ. ANZ’s strategy is to improve the financial wellbeing and sustainability of our customers. We are focused on integrating our purpose and ESG approach into our business strategy. Through our purpose – we have elevated three areas facing significant societal challenges aligned with our strategy and reach. For more information about our purpose and strategy see page 7. Further, specific updates on our material ESG issues and related targets are presented periodically to the Board. **Board Ethics, Environment, Social and Governance (EESG) Committee** The Board EESG Committee, chaired by ANZ’s Chairman, is responsible for assisting the Board by providing oversight of measures to advance our purpose, focusing on ethical and ESG matters. In undertaking this role, the EESG Committee is responsible for oversight, review and approval of our ESG approach, objectives and performance, including our ESG targets. The Board EESG Committee generally meets at least four times annually, meeting five times in 2023. Meetings typically open with an overview of the ESG operating environment, covering current and emerging issues, including regulatory and parliamentary inquiries, community sentiment, relevant international developments and our stakeholder engagement. The Board EESG Committee also reviews ERBC meeting minutes and discusses material matters referred to the Committee from that body. The charter of the EESG Committee is available at [anz.com/corporategovernance](http://anz.com/corporategovernance). **Board Risk Committee** The Board Risk Committee (BRC) oversees the implementation and operation of the Group’s risk management framework, including new and emerging risks, such as climate-related and biodiversity risks. The BRC meets at least four times annually, meeting eight times in 2023. The charter of the Board Risk Committee is available at [anz.com/corporategovernance](http://anz.com/corporategovernance). **Board Human Resources Committee** The Human Resources (HR) Committee supports the Board on remuneration and other HR matters. It reviews the remuneration policies and practices of the Group, and monitors market practice and regulatory and compliance requirements in Australia and overseas. The HR Committee has a strong focus on the relationship between business performance, risk management and remuneration, aligned with our business strategy. A concurrent meeting of the HR, Risk and Audit Committees was held to review 2023 performance and variable remuneration recommendations at both the Group (i.e., assessment of the ANZ Group Performance Framework which included ESG-related objectives), CEO and Disclosed Executive$^1$ level. Refer below for ESG objectives and measures. Refer also to our Remuneration Report from page 46 of our Annual Report available at [anz.com/annualreport](http://anz.com/annualreport). $^1$ Executive Committee members, excluding the CEO. --- # MANAGEMENT COMMITTEES AND FORUMS ### Ethics and Responsible Business Committee (ERBC) The ERBC, chaired by the CEO, comprises Senior Executives and members from business divisions and Group functions. The ERBC is a leadership and decision-making body that exists to advance our purpose and seeks to ensure that ANZ operates responsibly and achieves fair, ethical and balanced stakeholder outcomes. The ERBC approves relevant ANZ policies, such as those policies identified in ANZ’s Climate Change Commitment. The ERBC provides leadership on our ESG risks and opportunities, monitoring progress (quarterly) against our ESG targets, which include those related to climate change. The ERBC considers the social and environmental impacts of the industries, customers and communities ANZ serves. The ERBC is responsible for overseeing the ERBC Sub-Committee for sensitive wholesale transactions. The ERBC is accountable to the Board EESG Committee in the effective discharge of its responsibilities. It operationalises Board objectives and makes decisions on issues and policies. The ERBC meets at least four times annually, meeting five times in 2023. ### Board skills The ANZ Board Skills Matrix, as set out in the 2023 Corporate Governance Statement, which is available at [anz.com/corporategovernance](http://anz.com/corporategovernance), outlines the key skills and experience the ANZ Board is looking to achieve in its membership and the number of directors with each skill or experience. Included in the skills matrix is Sustainability. Our Directors collectively bring a broad range of skills, and current and prior experience which includes having held roles across sectors such as infrastructure, energy, mining, banking and agriculture. For further details on the experience of our Directors refer to [anz.com/annualreport](http://anz.com/annualreport). In addition to having individuals on the Board with a variety of technical skills and experiences, the Board seeks to ensure that the Directors operate as a team. The Board is focused on the long-term success of the Group. Each Director has an individual perspective which facilitates respectful and constructive challenge of management and each other and allows for robust debate that may be required when navigating complex issues. The Skills Matrix is reviewed by the Nomination and Board Operations Committee on a regular basis. ### Other management committees Other management committees play a role in the management of risks. **Operational Risk Executive Committee (OREC)** is the primary senior executive management forum responsible for overseeing Operational Risk and Compliance Risk, risk profile, and the related Control Environment across the Group; and **Credit and Markets Risk Committee (CMRC)** is the senior executive management forum responsible for the oversight and control of credit, market, insurance, and other material financial risks across the Group. OREC and CMRC have responsibility for the overview of ANZ’s management of new and emerging risks within their respective risk areas, which may include risks that are climate-related. This year, OREC and CMRC met eight and ten times respectively. Activities undertaken by the ERBC will at times overlap, and inform, topics raised in OREC and CMRC as part of the executive oversight and risk management required to deliver on ANZ’s purpose and strategy. ### Issues discussed this year at the Board EESG Committee and ERBC Both committees discuss the areas of ‘how we bank’ and ‘who we bank’. This year the committees have considered the below topics, including receiving briefings from internal and external subject matter experts. These briefings and meetings provide opportunities to support knowledge building and capability in a range of areas, for example: - Biodiversity - Engaging with 100 of our largest emitting business customers - Decarbonisation pathways - ANZ’s reconciliation journey - Scams - Family violence - Accessibility and disability inclusion ### Executive remuneration ANZ’s Remuneration Report within our Annual Report, available at [anz.com/annualreport](http://anz.com/annualreport), details how remuneration outcomes are determined for our most senior employees. In general, remuneration outcomes for the CEO and Disclosed Executives$^1$ take into consideration performance against ANZ’s Group Performance Framework – which include ESG objectives and measures. For example, the 2023 Group Performance Framework includes: - Maintaining industry leading employee engagement. - Making meaningful progress on environmental sustainability strategies (e.g. fund and facilitate at least $100 billion by end 2030). Individual/Divisional performance scorecards also include ESG measures as relevant to the particular business. It is important to note that Group/Division performance objectives are not designed to capture all of our ESG targets – however our senior leaders are accountable for ensuring we focus on and achieve these, with regular review and oversight by the ERBC. $^1$ Executive Committee members, excluding the CEO. --- # WHAT MATTERS MOST TO OUR STAKEHOLDERS We engage with internal and external stakeholders through our annual materiality assessment. The results help inform our strategy, business practices – including Group Performance Framework – ESG targets and external reporting. External views were sought across our major geographies through interviews with institutional investors, consumer and environmental non-government organisations, and our community partners on a broad range of ESG issues. ### Our material ESG issues We’re continuing to bring our purpose to life through our focus on complex issues of importance to society and our business strategy: - **Environmental sustainability** remains one of the highest priority issues for our stakeholders, seen in terms of both risks and opportunities. - The prevailing economic conditions mean **financial wellbeing** is recognised as particularly important. - **Housing** is also identified as a key concern with our stakeholders, noting the close connection this has with financial wellbeing and the challenges associated with housing affordability and availability. Our materiality assessment this year also highlighted the importance of three other issues: - Customer experience - Ethics, conduct and culture - Information security Customer experience and ethics, conduct and culture have been material ESG issues at ANZ for a number of years and remain foundational concerns for the bank; the latter is also core to our social licence to operate. Discussions with our stakeholders about information security also frequently referred to scams and their increasing prevalence and financial impact. These six issues are largely consistent with our 2022 assessment. ### Our assessment process This year, we increased our level of external engagement and review of the external environment. Our assessment approach is consistent with the Global Reporting Initiative (GRI) Standard GRI G3: Material topics 2021 and draws on the Sustainability Accounting Standards Board (SASB) Conceptual Framework 2017. Our approach considered our impact of ESG issues on the economy, environment, and people, including impacts on their human rights, as well as the impact ESG issues may have on our operating performance. To do this, we used double materiality – seeking views from stakeholders on both: ANZ’s impact – both positive and negative – on society and the environment (externally focused), and ANZ’s ability to create value (internally focused). Our alignment with the GRI reporting framework and considers the SASB reporting framework, among others, are contained in our 2023 ESG Data and Frameworks Pack available at [anz.com/esgreport](http://anz.com/esgreport). To identify changes in our ESG risks and opportunities that should be reflected in the list of material issues (refer to pages 10-12), we considered the following: - Our purpose, strategy, values and Code of Conduct (refer to pages 7 and 46) - Our Key Material Risks (refer to pages 29-31 of our 2023 Annual Report available at [anz.com/annualreport](http://anz.com/annualreport)) - Recent regulatory developments, including developments in sustainability reporting standards - Industry research and trends - Investor reports and priorities - Peer review - Media review and analysis - The United Nations Sustainable Development Goals (SDGs) This year we also revised our longer list of material issues and our description of each issue based on feedback from stakeholders engaged through the process. ‘Environmental sustainability’ now covers climate change, and nature including biodiversity. Biodiversity, which we identified last year, continues to advance rapidly as important issues for ANZ to consider. ‘Investing in the community’ is renamed ‘Thriving communities’ to reflect our purpose. ‘Employee capability and wellbeing’ is renamed ‘Employees’ to incorporate all issues relating to our people. ‘Innovation and technology’ is renamed ‘Digital banking experience’. ‘Anti-money laundering and terrorism financing’, ‘Banking regulation’, ‘Corporate governance’ and ‘Fairness and ethical conduct’ are consolidated into ‘Ethics, conduct and culture’ and ‘Regulation and risk management’. ‘Diversity and inclusion’ has also been included once again. Image: ANZ Centre, Melbourne. --- # OUR MOST MATERIAL ESG ISSUES (NOT RANKED) | Description of issue | Location of disclosure | Related UN SDGs | | --- | --- | --- | | **Customer experience**: Offering affordable, accessible and responsible financial products and services that meet customer needs. This includes clear and transparent communications, selling practices, lending practices, and hardship and collections policies. | 2023 ESG Supplement pages 35-41 | | | **Environmental sustainability**: Managing the business risks, opportunities and impact of our financing activities on climate change, nature including biodiversity, which includes supporting our customers to transition to a low carbon economy and supporting them to protect, restore and mitigate biodiversity loss. | 2023 ESG Supplement pages 21-22; 2023 Climate-related Financial Disclosures available at [anz.com/esgreport](http://anz.com/esgreport); 2023 Annual Report pages 12-13 available at [anz.com/annualreport](http://anz.com/annualreport) | SDGs 6, 7, 11, 13, 14, 15, 17 | | **Ethics, conduct and culture**: Maintaining a strong corporate culture known for ethics, integrity and conducting our business responsibly, and aligned to our purpose and values. | 2023 ESG Supplement pages 46-60; 2023 Annual Report pages 17 and 31 available at [anz.com/annualreport](http://anz.com/annualreport) | SDGs 10, 16 | | **Financial wellbeing**: Building financial knowledge and resilience through our products, services and partnerships to help our people, customers and communities meet their current financial commitments and future goals. | 2023 ESG Supplement pages 26-34; 2023 Annual Report pages 6 and 9-10 available at [anz.com/annualreport](http://anz.com/annualreport) | SDGs 1, 8, 10, 17 | | **Housing**: Improving the availability of and access to suitable and affordable housing for all Australians and New Zealanders. | 2023 ESG Supplement pages 23-25; 2023 Annual Report pages 6-8, 10 and 24 available at [anz.com/annualreport](http://anz.com/annualreport) | SDGs 9, 10, 11, 17 | | **Information security**: Responding and continually adapting to scams, fraud and cyberattacks that threaten the confidentiality and security of systems and data. | 2023 ESG Supplement pages 42-45; 2023 Annual Report pages 8 and 25-26 available at [anz.com/annualreport](http://anz.com/annualreport) | | --- # OTHER ESG ISSUES (NOT RANKED) | Description of issue | Location of disclosure | Related UN SDGs | | --- | --- | --- | | **Digital banking experience**: Keeping pace with technology innovation to deliver banking products and services through reliable and convenient digital channels and services. | 2023 ESG Supplement pages 35-36; 2023 Annual Report pages 4, 6-8 and 24 available at [anz.com/annualreport](http://anz.com/annualreport) | SDG 9 | | **Diversity and inclusion**: Supporting a diverse and inclusive culture for our workforce and community to better serve the varied needs of customers. | 2023 ESG Supplement pages 65-68 | SDGs 5, 10 | | **Employees**: Attracting and retaining capable and engaged employees by supporting their wellbeing, ensuring fair and equitable remuneration, and helping them develop their career. | 2023 ESG Supplement pages 61-64 | SDGs 5, 8, 10 | | **Human rights**: Supporting and respecting the human rights of our people, customers and communities, including through the expectations we have of our business customers, suppliers and partners. | 2023 ESG Supplement pages 54-55 | SDGs 8, 16 | | **Regulation and risk management**: Having appropriate governance frameworks, policies and processes to comply with evolving regulatory requirements and to manage emerging environmental, social and governance risks. | 2023 ESG Supplement pages 8-9 and 49-50; 2023 Annual Report pages 24-31 available at [anz.com/annualreport](http://anz.com/annualreport) | SDG 16 | | **Thriving communities**: Supporting the communities in which we operate through volunteering, grants, workplace giving and disaster relief to contribute to thriving communities. | 2023 ESG Supplement pages 32-34 | SDGs 1, 8, 17 | --- # STAKEHOLDER ENGAGEMENT One of the ways we help create long-term value and deliver on our business strategy is through a collaborative and proactive approach to building and maintaining relationships with stakeholders. To demonstrate trustworthiness and build on existing confidence, we have communicated openly, embedding stakeholder engagement in our policies, processes and operations. Outlined below are the key issues raised by our stakeholders throughout the year and how we responded. ### Customers **How we engaged** - Branch staff and relationship managers (in-person and via calls, emails and letters) for specific customer support - ANZ’s online customer research community - Online forums, surveys, focus groups, and individual in-depth interviews - ‘Voice of Customer’ platform capturing feedback on customers’ experience with ANZ - Conversations with our Complaints Resolution Centre, Extra Care Hub and related functions - Social media **Key issues raised** - Increasing interest rates and how it impacts cost of living pressures - Conduct and culture - Products, fees and charges - Customer service including access to branches in regional Australia - ANZ’s digital propositions and the ANZ Plus app launch - Agreement to acquire Suncorp Bank - Information security, scams and data privacy - Societal challenges including Indigenous Voice to Parliament, housing affordability and natural disasters **How we responded** Our response to the issues raised by customers can be found on pages 23-27, 34-35, 38 and 42-48 of this document. ### Employees **How we engaged** - Annual ‘My Voice’ survey and regular ‘pulse’ surveys - Interactive webcasts and teleconferences with CEO, Executive Committee and other internal or external guest speakers - Direct people leader communication - Internal communications channels, including email, intranet and Viva Engage - Meetings with unions representing ANZ employees **Key issues raised** - Attracting, building and retaining workforce capability - Business strategy and priorities including the agreement to acquire Suncorp Bank - Professional growth and development - ‘Speak up’ culture - Our purpose and ESG focus areas - Indigenous Voice to Parliament - Diversity and inclusion - Flexible working arrangements and return to the office - Remuneration and reward; performance management **How we responded** Our response to the issues raised by employees can be found on pages 46-48 and 61-68 of this document. ### Government and regulators **How we engaged** - Meetings with members of Parliament, public officials and regulators - Submissions to and appearances before Parliamentary committee inquiries and government and regulatory consultations **Key issues raised: AUSTRALIA** - Cost of living pressures, including the impact of interest rates on our customers and the economy - Initiatives concerning financial crime, including reforms to Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) laws, scam prevention and cyber security - Initiatives concerning technology and privacy, including artificial intelligence, the consumer data right, reforms to Australia’s privacy laws and digital identity - ANZ’s commercial activities, including the announced agreement to acquire Suncorp Bank and the measures required from government which are conditions precedent to the acquisition - The provision of banking services in regional Australia and in respect of concerns relating to branch closures - Initiatives relating to Australia’s climate targets, including climate-related financial disclosures, support for hydrogen and sustainable financing - Proposed reforms to the regulation of payment systems and licensing of payment functions - The review into the quality of financial advice **Key issues raised: NEW ZEALAND** - Regulatory issues including responsible consumer lending, the consumer data right, AML/CTF, environmental planning reforms for agribusinesses, merchant service fees, deposit compensation and prudential supervision - Public policy development on issues including competition in retail banking, accessibility of banking services, climate resilience and climate-related financial disclosures, scams, housing, macroprudential tools, and payments - Economic analysis and outlook provided by ANZ Research **How we responded** We listen to and seek to engage constructively with government, regulators and policy makers, including participation in government consultations and parliamentary inquiries. An overview of the work underway in response to issues raised is outlined on pages 21-22, 26-28, 38 and 42-45 of this document and pages 25-29 and 34-42 of the Climate-related Financial Disclosures available at [anz.com/esgreport](http://anz.com/esgreport). --- # STAKEHOLDER ENGAGEMENT (CONTINUED) ### Shareholders **How we engaged** - Disclosures including results announcements, investor presentations, external reporting suite and ASX lodgements - Shareholder engagement program including ANZ’s shareholder centre website updates, written communication and shareholder discussions - Interim and full-year results briefings - ESG investor briefings, strategy and other market updates - Annual General Meeting **Key issues raised** - Approach to managing the bank and supporting stakeholders through a challenging economic environment - Opportunities and challenges associated with current and future operating conditions - ANZ’s strategic focus, business priorities and competitive advantage - ANZ’s purpose and ESG approach, targets and progress - Financial performance including revenue trends, cost management and contribution from our divisions - Capital and balance sheet management including liquidity and funding positions, portfolio credit quality and risk management - Establishment of ANZ’s non-operating holding company structure - Agreement to acquire Suncorp Bank - Dividends - Indigenous Voice to Parliament **How we responded** We seek to provide shareholders with quality information in a timely manner through our reporting suite, announcements and briefings to the market, shareholder communications and our dedicated shareholder site. This year, we held a climate-focused investor roundtable and our sixth annual ESG investor briefing. Our response to the issues raised by shareholders can be found on pages 7 and 15-20 of this document and pages 4-11, 24-26, 32-44, 84 and 126 of the 2023 Annual Report available at [anz.com/annualreport](http://anz.com/annualreport). ### Non-Government Organisations (NGOs) **How we engaged** - Regular program of CEO and senior executive meetings with civil society leaders - Direct engagement with NGOs and academics - Regular engagement with peak bodies for professional community services such as financial counselling - Regular meetings with our community partners **Key issues raised** - Cost of living pressures - Support for customers, employees and communities impacted by family violence and financial abuse - Indigenous social and economic development - Homelessness in Australia - Customers requiring extra care, hardship programs and consumer protection - Conduct and culture - Climate change policies and risk management, and biodiversity **How we responded** Our response to the issues raised by NGOs can be found on pages 20-21, 25-29, 37-40 and 46-48 of this document, pages 25-29 and 34-42 of our 2023 Climate-related Financial Disclosures available at [anz.com/esgreport](http://anz.com/esgreport). ### Industry associations **How we engaged** ANZ is a member of a number of industry associations. Key memberships include the Australian Banking Association (ABA), the Business Council of Australia, the New Zealand Banking Association (NZBA), and Business New Zealand. Through our memberships we: - participate in discussions about industrywide issues and strategy - provide input to industry association responses to Parliamentary committee inquiries and government consultations - engage with consumer representatives to discuss issues affecting customers - participate in relevant ABA and NZBA working groups **Key issues raised** - Review of the Banking Code of Practice - Information security, scams and data privacy - Climate change policy, climate risks and opportunities, climate-related financial disclosures - Consumer data right and consumer credit reforms - Modern slavery - Housing including responding to Government initiatives and consultations **How we responded** We seek to contribute constructively to public policy formation and understand the perspectives of our community’s elected representatives, policymakers and regulators. We contribute to policy on business, economic, social and environmental issues affecting our customers and shareholders. Our response to the issues raised by industry associations can be found on pages 21-25, 42-45 and 55 of this document, and pages 25-29 and 34-76 of our 2023 Climate-related Financial Disclosures available at [anz.com/esgreport](http://anz.com/esgreport). Image: ANZ Centre, Melbourne. --- # OUR ESG TARGETS Each year we set public targets that reflect our ESG focus areas, support the delivery of our business strategy and respond to our most material ESG issues. Progress against targets is reviewed by the executive Ethics and Responsible Business Committee quarterly and twice a year by the Board Ethics, Environment, Social and Governance Committee. **2023 TARGET PERFORMANCE STATUS** - 3 have been achieved - 6 are partially achieved or in progress *Five of the targets were revised during 2023 or for 2024.* Details of our 2023 targets and performance are set out on pages 16-18. **OUR MATERIAL ESG ISSUES** - Customer experience - Environmental sustainability - Ethics, conduct and culture - Financial wellbeing - Housing - Information security Details of our material issues are set out on pages 19-20. --- # 2023 ESG TARGETS PERFORMANCE SUMMARY | Targets | Performance | Status | Related UN SDGs | | --- | --- | --- | --- | | Have 30% or more of ANZ Plus Save customers set a savings goal, by end 2023. | 36% of ANZ Plus customers have created a savings goal. | Achieved | SDG 10 | | Establish seven new partnerships to expand the reach and improve the impact of MoneyMinded for disadvantaged communities, by end 2023. | We have established 14 new MoneyMinded partnerships since October 2020. These partnerships have enabled us to deliver MoneyMinded to more lower income people across the markets we operate in to help improve their financial wellbeing. | Achieved | SDGs 1, 8, 10, 17 | | Fund and facilitate at least $100 billion by end of 2030 in social and environmental outcomes through customer activities and direct investments. This includes initiatives that help lower carbon emissions, protect nature and biodiversity, increase access to affordable housing and promote financial wellbeing. | Since 1 April 2023, we have funded and facilitated approximately $8.8 billion, across 54 transactions, of which $4.1 billion is funded and $4.7 billion is facilitated. On 31 March 2023 ANZ concluded its $50 billion by 2025 sustainable solutions target. We had funded and facilitated close to $47.0$^1$ billion across 387 transactions and were forecast to meet our $50 billion target well in advance of 2025. | Revised during 2023 | All 17 SDGs | | Engage with 100 of our largest emitting business customers to encourage them to, by end 2024: - strengthen their low carbon transition plans so that more customers achieve a ‘well developed’ or ‘advanced’ rating; and - enhance their efforts to protect biodiversity. | - We re-engaged with all 100 customers on their low carbon transition plans and efforts to protect biodiversity this year. - 64 customers now have ‘well developed’ or 'advanced' plans versus 42 in September 2021. - We prioritised engagement with ‘underdeveloped / starting out’ and ‘no public plans’ rated customers (those with less developed or no public plans) to seek improvements in their plans. Seven customers have improved from ‘no public plans’ to ‘underdeveloped / starting out’ in 2023. - For biodiversity, 54 customers have targets, policies or strategies in place to protect biodiversity, with 61 making disclosures of their efforts to protect biodiversity. - We are revising this target with a new phase of engagement with our largest emitting business customers commencing in 2024 triggered, in part, by the Safeguard Mechanism in Australia. | Revised for 2024 | SDGs 12, 13, 15 | $^1$ This number is a restatement from our 2023 half year unaudited disclosures made on 5 May 2023. The $50 billion target was closed after reaching $47.09 billion; the closing audited balance has since been confirmed as $46.99 billion. --- # 2023 ESG TARGETS PERFORMANCE SUMMARY (CONTINUED) | Targets | Performance | Status | Related UN SDGs | | --- | --- | --- | --- | | **Improve the management of climate change risks through the following activities by end 2023**: | | Achieved | SDG 13 | | - Preparing a set of risk standards based on regulatory obligations, to be applied across all countries and territories where ANZ operates; | We engaged an external provider to undertake an assessment comparing regulatory expectations across seven of the jurisdictions in which we operate: Australia, New Zealand, Singapore, Hong Kong, the United Kingdom, Europe and the USA. The assessment will help inform the integration of climate risk standards and obligations into our Non-Financial Risk Framework commencing from 2024. | | | | - Extending our Climate Change Risk Assessment (CCRA) methodology beyond our Project Finance business, starting with Institutional customers in higher emitting sectors such as resources and energy; | The CCRA has been digitised and integrated into our credit risk assessment process via our Online Customer Profile platform, alongside our Social & Environmental Risk screening tool. The CCRA is being expanded beyond our Project Finance business starting with Institutional energy sector customers subject to the enhanced due diligence process and customers in our Large Emitters Engagement Program. The CCRA will continue to be rolled out to Institutional customers in a phased approach across 2024 and 2025. | | | | - Developing a data strategy to inform our approach to sourcing and integrating climate data into sectoral transition pathways, scenario analysis, stress testing and analytics. This will include lessons learned from the New Zealand climate risk program. | An Environmental Sustainability (ES) data strategy has been developed and endorsed by Data Prioritisation Forum members. We expect the data strategy will help us to develop a more coordinated, centralised approach to climate data that can be shared across divisions and jurisdictions in which we operate. | | | | **Reduce the direct impact of our business activities on the environment$^1$ by**: | | Revised for 2024 | SDGs 6, 7, 12, 13 | | - Reducing Scope 1 and 2 emissions by 85% by 2025 and 90% by 2030 (against 2015 baseline); | Scope 1 and 2 emissions have decreased by 80% since 2015 | | | | - Increasing renewable electricity to 100% by 2025$^2$; | 49% of electricity consumption associated with our operations came from renewable sources in 2023 | | | | - Reducing water consumption by 40% by 2025 (against 2017 baseline); | Global water consumption has decreased by 61% against a 2017 baseline | | | | - Reducing waste to landfill by 40% by 2025 (against 2017 baseline); | Waste to landfill generated by global operations has decreased by 71% since 2017 | | | | - Reducing paper consumption (both office and customer paper use) by 70% by 2025 (against 2015 baseline). | Paper consumption has decreased 71% since 2015 | | | $^1$ Environmental reporting year is 1 July – 30 June, in line with the Australian regulatory reporting year. $^2$ Self-generated renewable electricity, direct procurement from offsite grid connected generators e.g. Power Purchase Agreement (PPA) and default delivered renewable electricity from the grid, supported by credible attributes in accordance with RE100 technical guidelines --- # 2023 ESG TARGETS PERFORMANCE SUMMARY (CONTINUED) | Targets | Performance | Status | Related UN SDGs | | --- | --- | --- | --- | | Fund and facilitate $10 billion of investment by 2030 to deliver more affordable, accessible and sustainable homes to buy and rent. (Australia /New Zealand) | This year we have funded and facilitated around an additional $610 million, bringing our total since October 2018 to over $5.3 billion$^1$. | Revised for 2024 | SDGs 9, 10, 11 | | Support more customers into healthier homes through discounted lending of NZ$300m funds under management and 12,000 households by end 2025. (New Zealand) | Since Oct 2020: We have supported 9,482 households into healthier homes and drawn down NZ$379.09 million through: - Our Healthy Home Loan package - Our Good Energy Home Loan Top Up - Interest-free Insulation Loans$^2$ | Revised for 2024 | SDGs 9, 11 | | Achieve the 17 actions in our Reconciliation Action Plan, by end 2024. (Australia) | We continue to make good progress against the 17 actions in our RAP, delivering all objectives that fell due in 2023. This year, we: - Launched a Commercial banking proposition, appointing two Indigenous Small Business Managers to work with our Indigenous Commercial customers. - Partnered with Indigenous Business Australia to host a one-day CEO Assessment Clinic for the leaders of six Indigenous businesses. - Spent $11.7 million with Indigenous businesses ($24.4 million since the RAP commenced). - Implemented a Cultural Learning Strategy designed to improve the cultural competency of Australia-based non-Indigenous employees to meet the needs of Aboriginal and Torres Strait Islander customers, employees and community partners. - Embedded First Nations design principles into the design concepts for key offices and branch refurbishments or new builds, in consultation with local Traditional Owners. - Developed and implemented ANZ’s First Nations Recruitment, Retention and Professional Development Strategy (2024-2026) to drive greater representation across all levels of the organization. - Partnered with BlackCard to provide cultural capability training to more than 280 Australia-based employees. - Delivered eight MoneyBusiness coach training sessions to community workers and financial counsellors working in remote communities. | | SDGs 1, 8, 10, 17 | $^1$ Includes a cumulative $4.4 billion disclosed in 2022, around $610 million achieved in 2023 and an additional $288 million in deferred deals from 2022 that have not previously been disclosed. $^2$ Product rolled off in July 2022. --- # ESG TARGETS FOR 2024 | | TARGETS | MATERIAL ISSUES | RELATED UN SDGS | | --- | --- | --- | --- | | **New** | Encourage our customers to build and maintain financial resilience with the aim of having at least 2.5 million customers$^1$ with a financial buffer of approximately 6 weeks’ expenses by end 2026. (Australia/New Zealand)$^2$ | $ | SDG 10 | | | Pilot a savings program$^3$ for people on lower incomes in Fiji and Vanuatu by end 2025, with at least 80% of participants having demonstrated a savings habit$^4$ upon completion. (Pacific) | $ | SDGs 1, 10, 17 | | **Revised during 2023 and for 2024** | Fund and facilitate at least $100 billion by end 2030, including $15 billion by end 2024, in social and environmental outcomes through customer activities and direct investments by ANZ. This includes initiatives that help lower carbon emissions, protect nature and biodiversity, increase access to affordable housing and promote financial wellbeing. | $ | All 17 SDGs | $^1$ From a baseline of approximately 2.4 million customers as at 30 September 2023. $^2$ We have withdrawn our financial resilience target in 2025 due to identifying anomalies in the calculation methodology. $^3$ Saver Plus. $^4$ Eight out of 10 months saving (as per Saver Plus program), measured by participant survey data. --- # ESG TARGETS FOR 2024 (CONTINUED) | TARGETS | MATERIAL ISSUES | RELATED UN SDGS | | --- | --- | --- | | **Revised for 2024**: 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 customers with the aim that by end 2025, compared to their starting point more customers achieve a ‘well developed’ or ‘advanced’ rating for their low carbon transition plans; - extending the use of our Climate Change Risk Assessment methodology so that by end 2024 it has been used to support our engagement with the revised list of our 100 largest emitting customers. | | SDGs 12, 13, 15 | | **Reduce the direct impact of our business activities on the environment$^1$ by**: - Reducing combined scope 1 and 2 emissions 85% by 2025 and 90% by 2030 (against 2015 baseline); - Increasing renewable electricity to 100% by 2025; - Reducing water consumption by 40% by 2025 (against 2017 baseline); - Reducing waste to landfill 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). | | SDGs 6, 7, 12, 13 | | Fund and facilitate at least $10 billion of investment by end 2030, including $750 million by end 2024, to deliver homes to buy and rent that are more affordable, accessible or sustainable$^2$. | | SDGs 9, 10, 11 | | Helping New Zealand homeowners improve the sustainability of their homes and/or reduce their transport emissions through discounted lending of at least NZ$670m in aggregate to at least 16,000 households by end 2025. (New Zealand) | | SDGs 9, 11 | | **Continues unchanged**: Achieve the 17 actions in our Reconciliation Action Plan, by end 2024. (Australia) | | SDGs 1, 8, 10, 17 | $^1$ Environmental reporting year is 1 July – 30 June, in line with the Australian regulatory reporting year. $^2$ Eligible housing transactions that also meet the eligibility criteria for the social and environmental target to achieve $100 billion by end 2030 may contribute towards both targets. --- # OUR APPROACH TO CLIMATE CHANGE ANZ has chosen some key focus areas as part of our Environmental Sustainability Strategy: ```mermaid graph TD A[Providing the products and services required for transition to a low carbon economy] --> B[Banking the decarbonisation and electrification of the transportation value chain] A --> C[Enabling the transition through lower emissions buildings] A --> D[Assisting sustainable food, beverage & agricultural practices and supply chains] A --> E[Offering solutions to, and partnering with, sustainability-focused financial institutions] A --> F[Increasing our support for the transition to low carbon] A --> G[Supporting sustainability in resource extraction, basic materials and new technologies] ``` We want to be the leading Australian and New Zealand-based bank in supporting customers’ transition to net zero emissions by 2050. Our Climate Change Commitment provides the framework to achieve our strategy of transitioning our lending to net zero in line with the goals of the Paris Agreement. We joined the Net-Zero Banking Alliance (NZBA) in 2021, reflecting that commitment and setting pathways to support customers’ emissions reductions. Our Environmental Sustainability Strategy identifies focus areas, technologies and financing opportunities to help achieve our climate ambition. The most important role we can play in the transition to net zero is to support our customers to reduce emissions and enhance their resilience to a changing climate. We support an orderly transition that recognises and responds to social impacts. This aligns with our purpose to shape a world where people and communities thrive. Supporting household, business and financial practices that improve environmental sustainability is a key part of our purpose. We are continuing to evolve our work to encourage and support large emitting customers to implement robust and credible transition plans and will begin a new phase of this work in 2024, triggered, in part, by the Safeguard Mechanism reforms in Australia. This engagement and our expanding sectoral pathways help steer our decisions about which customers we will support. Our social and environmental sustainability target of $100 billion funding and facilitation by the end of 2030 makes our aspiration clear. We have achieved close to $8.8 billion in the first six months of this target. This target includes initiatives that help lower carbon emissions, protect nature and biodiversity, increase access to affordable housing and promote financial wellbeing. Detailed climate and nature-related disclosures are available in our 2023 Climate-related Financial Disclosures report available at [anz.com/esgreport](http://anz.com/esgreport). > The information in this section should be read together with our disclaimer and important notices available on page 5 and our Climate-related Financial Disclosures and our Financed Emissions Methodology. Both documents are available at [anz.com/esgreport](http://anz.com/esgreport) --- # FINANCING SUSTAINABILITY ### New $100 billion social and environmental sustainability target On 31 March 2023 ANZ concluded its $50 billion by 2025 sustainable solutions target. We had funded and facilitated close to $47.0 billion$^1$ across 387 transactions and were forecast to meet our $50 billion target well in advance of 2025. Refer to page 83 of the 2023 Climate-related Financial Disclosures available at [anz.com/esgreport](http://anz.com/esgreport) for details. Therefore, on 1 April 2023 ANZ commenced a new social and environmental sustainability target to fund and facilitate at least $100 billion by the end of 2030 in social and environmental outcomes through customer activities and direct investments by ANZ. The target applies to the Group and includes initiatives that help lower carbon emissions, protect nature and biodiversity, increase access to affordable housing and promote financial wellbeing. Under this target, we have funded and facilitated approximately $8.8 billion across 54 transactions. This includes green, social, sustainability and sustainability-linked loans and bonds, and energy and affordable housing transactions. Of these, $4.1 billion of transactions are on-balance sheet loans and other credit lines provided to borrowers by ANZ, while close to $4.7 billion has been facilitated – almost entirely through ESG-format bonds. The majority of transactions included in the new social and environmental sustainability target to date were funding for sustainability-linked facilities, energy, affordable housing and green buildings (66%, 13%, 10% and 5% of funded transactions respectively) and facilitation of ESG-format bond issuances. Since 2015, we have achieved $74.9 billion in sustainable funding and facilitation over three sustainability targets. ANZ achieved $19.13 billion on our $15 billion target, close to $47.0 billion on our $50 billion target and approximately $8.8 billion on our $100 billion target so far. We include both customer transactions and direct investments by ANZ towards the $100 billion social and environmental sustainability target. Customer transactions can be either unlabelled social and environmental sustainability activities or labelled sustainable finance transactions that are aligned with any of the 17 United Nations Sustainable Development Goals (SDGs). This recognises the importance of supporting sustainability and increasing demand from customers across more SDGs including those covering social issues, nature and biodiversity. Our detailed Social and Environmental Sustainability Target Methodology is available at [anz.com/esgreport](http://anz.com/esgreport). ### Progress towards our $100b social and environmental sustainability target - **Funded$^2$ $4.1 billion** - 13% SOCIAL - $0.4 billion Affordable Housing - $0.09 billion Other Social - 66% SUSTAINABILITY-LINKED - $2.7 billion Sustainability-Linked Facilities - 21% ENVIRONMENTAL - $0.5 billion Energy - $0.2 billion Green Building - $0.04 billion Transport - $0.08 billion Waste - **Facilitated$^3$ $4.7 billion** - 100% $4.6 billion ESG-format Bonds - 0% $0.005 billion Affordable Housing ### HIGHLIGHT: KMD Brands Limited KMD Group refinanced its syndicated debt facilities into NZ$310 million equivalent sustainability-linked facilities, including guarantee lines in May 2023. The facilities featured updated sustainability targets of the KMD Group including reducing greenhouse gas emissions, continued B Corp certification, and improving transparency within its supply chain. ANZ acted as Sole Sustainability Coordinator, Sole Mandated Lead Arranger & Bookrunner, Facility Agent, and Security Trustee. ### HIGHLIGHT: Impact Investment Exchange IIX In December 2022, ANZ led the inaugural US$50 million four-year Women’s Livelihood Bond for Impact Investment Exchange (IIX), the world’s first sustainable debt issued under the Orange Bond Principles which aims to mobilise gender-lens investing under an orange-labelled asset class. The structure securitises a portfolio of loans to enterprises that are deemed to have a positive impact on women’s livelihood and may not have access to international capital markets. The Bond’s proceeds are intended to support approximately 280,000-300,000 women across Asia and Africa to transition to more sustainable, climate-resilient livelihoods. The Women’s Livelihood Bond Series leverages innovative financial instruments to advance gender equality at scale. ANZ has been involved in all five bond issuances totalling more than US$120 million. --- # IMPROVING THE AVAILABILITY OF SUITABLE AND AFFORDABLE HOUSING We are focused on helping improve the availability of suitable and affordable housing options for all Australians and New Zealanders by: - increasing the supply of new social and affordable housing into the market; - backing new housing models from pilot to scale to support delivery of a housing pipeline; and - financing emerging markets such as build-to-rent-to-own, specialist disability accommodation and land lease communities. ### Bringing more homes to market In 2018, ANZ announced a public target to fund and facilitate $1 billion of investment by 2023 to deliver more affordable, secure and sustainable homes to buy and rent. In 2020, having exceeded that objective, ANZ extended the target. Today, ANZ’s current housing target is to fund and facilitate $10 billion in investment by 2030 for more affordable, secure and sustainable homes to buy and rent. We have already delivered around $5.3 billion$^1$ into the housing sector, with around $610 million delivered in 2023, a testament to our focus and the market’s appetite. Our target is focused on delivering more new housing supply to market. Specifically, how financial institutions can play their part in changing the market to deliver more of the right housing, in the right locations at the right price point for both rental and purchase. This can be completed through the ongoing delivery of housing supply including backing of emerging markets, new market models and scalable pilot projects. Investment in social and affordable housing not only provides financial returns to investors, but also supports both the economy and society. ### HIGHLIGHT This year, ANZ supported the launch of a new project to market by specialist affordable housing fund manager Super Housing Partnership (SHP) and their venture partner, Assemble. SHP provides institutional investors with access to equity investments in new build-to-rent housing projects with a focus on social and affordable housing in Australia. In September, construction commenced on SHP’s first project located in Kensington, Victoria. The residential development comprises 362 apartments including 73 social, 73 affordable, 14 specialist disability accommodation and 202 private market rental homes. Partnering with SHP, Assemble, HESTA, Treasury Corporation of Victoria, and Housing Choices Australia has delivered a project that clearly demonstrates the role innovative financial solutions can play when purpose-aligned organisations across government, the private market and the community sector, come together. It is significant that this represents a deal with no underlying government subsidy to deliver this project. Image: Artist's render of the Super Housing Partnership's Kensington project. --- # DELIVERING $5 BILLION OF HOUSING SUPPLY IN FIVE YEARS Since 2018, ANZ has continued to focus on supporting our customers across each of our major housing strategy pillars, maintaining our focus on long-term supply initiatives. Examples of projects we have supported include: - **Social and Affordable Housing**: Housing supply for government to meet the needs of vulnerable communities and for rental or purchase at 80% or below local market price. This includes affordable market housing, community and public housing, or affordable seniors living such as Land Lease Communities. - **Accessible Housing**: Funding the development of homes, which are aimed at supporting people with disability to pursue their goals, realise their full potential and to exit inappropriate forms of existing accommodation such as hospitals and residential aged care. - **Secure Housing**: Housing supply that provides security of tenure for both rental and purchase. This includes build-to-rent-to-own, build-to-hold, and build-to-rent. - **Sustainable Housing**: Housing supply that delivers above regulatory minimum standards for energy, water or waste. Includes 7-star NATHERS or above, carbon neutral, net zero and Green Star Communities. ### HIGHLIGHT: Social and Affordable Housing Funded a $57 million facility to support the Conscious Investment Management Group’s affordable housing investment fund in a partnership with Housing First to provide 307 apartments. Includes a 10-year subsidy from the Victorian Government which demonstrates the role the finance sector can play when the funding gap is bridged. ### HIGHLIGHT: Accessible Housing ANZ is a leading financier with more than $300 million of investment in the Specialist Disability Accommodation (SDA) sector since 2018 which finances groups, such as MySas and Synergis, that have developed purpose built accommodation for up to 530 SDA participants. ### HIGHLIGHT: Secure Housing Supporting the expansion of Assemble’s build-to-rent-to-own (BTRTO) model with three projects underway or completed including construction of a 199-apartment BTRTO project in Kensington, Victoria. The model seeks to overcome two major housing market hurdles: security of tenure and the deposit gap. ### HIGHLIGHT: Sustainable Housing In partnership with the Clean Energy Finance Corporation, completed a $160 million green loan for residential developer Mulpha Australia to deliver nearly 200 apartments powered by 100% renewable energy with an all-electric and gas-free design. --- # AFFORDABLE AND SUSTAINABLE HOUSING IN NEW ZEALAND In 2023, ANZ continued to support New Zealanders looking to combat rising energy and fuel costs and improve the environmental sustainability of their homes, encouraging better housing standards for both owner occupiers and renters through: - Our **Healthy Home Loan** package offers interest rate discounts and fee savings for eligible customers who are buying, building, renovating or already own a home with a 6 Homestar rating or higher. - Our **Good Energy Home Loan** top up is available to existing eligible home loan customers to upgrade their homes with solar panels, heating and insulation, double glazing, ventilation systems or rainwater tanks. It can also be used for electric and hybrid vehicles, electric bikes, and electric vehicle chargers. It allows customers to borrow up to NZ$80,000 at a 3-year fixed interest rate of 1% per annum. Across the two products since October 2020, 8,091 households drew down the loans, for an aggregate amount of NZ$372.7 million. This year, more than 11,000 Kiwis also took advantage of our new Home Loan Check-In. An average of 55% of these customers decided to take action following the check in, including making changes to their loan. The check in is designed to support customers through the current economic environment, to help ensure their home loan meets their needs. Our ongoing partnership with the New Zealand Green Building Council includes support for HomeFit – a free online tool to check the health, comfort, energy efficiency and safety of new homes, or advise on how New Zealanders can improve the health of their current home. ### In-depth housing market analysis ANZ continues to play a role in supporting the development of housing policy. We maintain ongoing engagement with industry stakeholders from across the sector, offering both public policy and market expertise to support government, the community and our customers. Our ongoing partnership with CoreLogic (a leading provider of property data and analytics) delivers housing affordability research and in-depth market analysis for the Australian housing market. In 2023, CoreLogic research showed fluctuations in interest rates, inflation and migration created a mismatch of housing supply and demand, creating a deterioration of rental affordability with a particular pain-point for low-income households leading to increased pressure on social housing providers and homelessness service providers. For first home buyers, record high rent values, a rising deposit hurdle and rising interest costs presented an unprecedented combination of challenges in the current housing market dynamic. These insights further support our focus on delivering security of tenure for renters, including the opportunity to purchase; and the need to increase the supply of social and affordable housing. For more information visit [anz.com.au/about-us/esg/housing/](http://anz.com.au/about-us/esg/housing/) ### ANZ Community Foundation housing grants This year, the ANZ Community Foundation provided a number of grants to not-for-profit organisations providing appropriate housing for Australians experiencing vulnerability and at risk of homelessness, including: - **Anika Legal (VIC)** – A free online legal service that provides reliable legal advice for renters to take control of their living arrangements. Provided a grant of $20,000 to support people transitioning from homelessness into housing to understand tenant’s rights. - **YWCA (NT)** – A non-profit organisation providing safe and affordable accommodation and services to support women and gender diverse people experiencing homelessness, family violence or other crises. Provided a grant of $23,500 to upgrade emergency accommodation for youth experiencing homelessness. --- # SUPPORTING FINANCIAL WELLBEING Financial wellbeing is the extent to which someone is able to meet all their current commitments and needs comfortably and has the financial resilience to maintain this in the future. ANZ has been exploring the financial literacy, capability, attitudes and behaviours of Australian adults for more than 20 years. This body of research has informed our approach to improving the financial wellbeing of our people, customers and communities by helping them make the most of their money throughout their lives. Beyond providing core banking services, we have played a key role in leading research into what is influencing financial wellbeing in Australia and New Zealand. Insights from our research are shared publicly so they can be used by government, community and corporate sectors to inform their work, and we use these insights to inform our products and services including ANZ Plus, as well as our financial education programs Saver Plus and MoneyMinded. More information on ANZ Plus can be found on page 35 and our financial inclusion programs can be found on pages 29-31. ### Measuring financial wellbeing Financial wellbeing is measured by converting participants’ responses to a series of questions into scores (out of 100) against components considered to make up overall personal financial wellbeing. An overall financial wellbeing score is created as an average of these components: **Four dimensions of financial wellbeing** - **MEETING EVERYDAY COMMITMENTS**: How well people meet their current expenses - **FEELING COMFORTABLE**: How comfortable people feel about their current financial situation (next 12 months) - **FINANCIAL RESILIENCE**: The ability to cope with financial setbacks - **FEELING SECURE FOR THE FUTURE**: A long-term view of future financial security --- # TRACKING FINANCIAL WELLBEING ANZ tracks the financial wellbeing of Australians with the ANZ Roy Morgan Financial Wellbeing Indicator, with the latest release comparing March 2023 results with June 2023. The update pointed to a continued downturn in financial wellbeing in Australia this year. As a result, the proportion of Australians considered ‘struggling’ with their financial wellbeing (a score of less than 30 out of 100) increased to 19% of the population, up more than 3 ppt from the same time in 2022. The proportion of those struggling varied widely across demographics, including: - Renters: 31.3% - Households with incomes of less than $100,000 a year: 25.2% - People looking for work: 22.3% - People living in country areas: 21.9% - Aboriginal and Torres Strait Islander people: 28.3% - People aged 14-24: 23.2% - Women: 22.0% As the cost of living increased in early 2023, Australians began to feel less comfortable about their financial situation which led to a decline in their financial wellbeing. By September, Australians were finding it increasingly difficult to meet their everyday commitments. The decline in meeting commitments for the March 2023 quarter was more evident among renters (down 4.9%) than those paying off their mortgage (down 0.8%) or those who own their home outright (down 0.7%). To ‘make ends meet’, renters appear to have several strategies including drawing down on savings, increasing purchases on credit and seeking additional employment. Although people paying off their mortgage were also drawing down on their savings and increasing purchases on credit, they were not seeking additional employment, and people who own their home outright were primarily increasing purchases on credit. > More information about the Financial Wellbeing Indicator can be found at [anz.com.au/about-us/esg/financial-wellbeing/](http://anz.com.au/about-us/esg/financial-wellbeing/) --- # A SPOTLIGHT ON AUSTRALIAN WOMEN ANZ research examined the factors driving a persistent gap between the financial wellbeing outcomes of women and men in Australia to help improve how we support female participants through our financial education programs. The research was released in March to recognise International Women’s Day. The research found Australian women consistently experience lower financial wellbeing than men at every life stage. Socio-economic factors such as employment opportunities, household living arrangements and looking after dependents had a greater impact on the financial wellbeing of women than men throughout their lives. These factors have an ongoing influence on the ability for women to save and build financial resilience. While women and men tried equally to save, even if only a small amount, 17% of women reported not having any savings to fall back on compared to 10% of men. Women were also less likely to be building resilience for their longer-term future with lower levels of investment in long-term assets. Fewer women (35%) felt they would be able to save enough money to last them to the end of their life than men (45%). While socio-economic factors were key to this, financial confidence also played a significant role. At all age groups, women felt less confident about their ability to plan their financial future and were less likely to feel they understood the risks associated with financial products, particularly long-term investment products. Most concerningly, the gap in financial wellbeing begins early in adulthood with 18–24-year-old women having lower investment in risk assets than their male counterparts. This same demographic felt more anxious about their future financial situation than young men. With these findings in mind, supporting women to build financial resilience and long-term financial security despite challenging socio-economic conditions appears key to their financial wellbeing. Fostering opportunities to build financial knowledge, particularly in longer-term investment risks and nurturing a workplace culture that supports all people to balance work and family commitments may also aid in growing financial confidence, behaviours and wellbeing. Refer to pages 65-68 for information on our approach to diversity and inclusion. > The research can be found at [anz.com.au/about-us/esg/financial-wellbeing/](http://anz.com.au/about-us/esg/financial-wellbeing/) --- # MONEYMINDED: SUPPORTING FINANCIAL WELLBEING ACROSS OUR REGION MoneyMinded is ANZ’s flagship financial education program, supporting adults on lower incomes to build their financial skills, knowledge, and confidence. The program is delivered by community organisations in Australia and New Zealand. In addition, this year MoneyMinded was delivered in 14 markets across Asia and the Pacific region by community organisations and ANZ employees. An estimated 927,500 people have participated in MoneyMinded, including MoneyBusiness, since 2002, with 83,974 participating this year. ### A partnership approach to building financial wellbeing with MoneyMinded The success of MoneyMinded has relied on our partnerships with community organisations and individuals who are best placed to deliver the program within vulnerable and disadvantaged communities. We have exceeded our target of establishing seven new partnerships by the end of 2023 to expand the reach and impact of MoneyMinded within these communities. Since October 2020, we have established 14 new MoneyMinded partnerships across New Zealand, Fiji, Timor Leste, and elsewhere in Asia and the Pacific. To continue this work, we have set a new target to pilot a savings program$^1$ for people on lower incomes in Fiji and Vanuatu by the end of 2025, with at least 80% of participants having demonstrated a savings habit$^2$ upon completion. ### Family violence education for prevention and recovery In 2016, ANZ introduced an extension of MoneyMinded designed specifically for people in the community experiencing family violence. It’s not always easy to recognise victim survivors of abuse, but they are people we may have contact with every day in our families, workplaces, and neighbourhoods. In many cases, a person may not immediately realise they’re experiencing family violence as the impacts extend beyond physical and emotional abuse. One form of family violence is financial abuse in which perpetrators may control their victim’s finances or create debt in the victim survivor’s name. This limits the victim survivor’s capacity to meet basic needs, their freedom of choice and impacts their actions now and into the future. Berry Street has been training family violence specialists in the enhanced MoneyMinded program – including a new range of visual resources, prompt cards, animations, and interactive handouts, supporting community professionals to talk about financial abuse with their clients in accessible ways. Nearly 200 MoneyMinded for family violence coaches have been accredited this year to use these tailored resources with their clients following the program refresh. --- # COMMUNITY INVESTMENT We invest in the communities in which we operate and play a role in supporting their capacity and resilience – supporting our purpose to shape a world where people and communities thrive. Throughout the year we have continued to work closely with our community partners to seek to provide support in a respectful, fair, and appropriate way, especially as cost-of-living pressures increase. ### 2023 contribution by type$^1$ - CASH: $23,851,566 - TIME: $3,048,733 - MANAGEMENT COSTS: $5,492,071 - IN KIND: $38,135 - FORGONE REVENUE: $109,216,186 - **TOTAL: $141,646,691** Since 2005, we have measured the dollar value of our community investment in accordance with the Business for Societal Impact Framework (formerly known as London Benchmarking Group), a widely adopted standard for measuring and managing social impact. In 2023, our community investment was $141.6 million. In addition, we facilitated more than $24.9 million in donations to community organisations through our employees, customers, shareholders, other partners, and the public, including through our digital giving platform Shout for Good. Approximately $8.4 million of our community investment totals (around 31% of our cash, time and in-kind contributions) contributed to programs and initiatives that support women and girls. We recognise women’s social and economic empowerment is critical to achieving gender equality. $^1$ Cash: gross monetary amount paid in support of a community organisation/project. Time: cost to the company of the paid working hours contributed by employees to a community organisation or activity. In-kind services: other non-cash resources to community activities (e.g. company products or services or corporate resources). Management costs: costs incurred in making contributions, such as salaries and overheads. Forgone revenue: the cost of providing low or fee-free accounts to a range of customers such as government benefit recipients, not-for-profit organisations, students, and the elderly. International transfer fees were waived for funds sent from Australia and New Zealand to Turkiye, Sri Lanka, Ukraine and the Pacific to support communities impacted by disaster-related events. This figure does not include remediation funds distributed to charity. --- # SHOUT FOR GOOD This year, ANZ’s digital giving platform Shout for Good, which supports charities in Australia with free and innovative digital fundraising solutions, facilitated over $15.3 million in donations for more than 390 charities. In 2023, Shout for Good launched a dedicated ticketing component to their existing product suite which provides charities the ability to set up and sell digital tickets to fundraising events. Further information can be found at shoutforgood.com. ### Disaster relief and building resilience We are supporting our customers and communities to manage and recover from natural disasters. Our Disaster Relief and Recovery Policy guides an efficient, coordinated and proportionate response to disasters. The policy encompasses a range of measures including charitable donations, hardship assistance, financial advice and employee volunteering to assist with community rebuilding. This year, we activated financial relief packages for customers in Australia affected by floods across Victoria, New South Wales, South Australia, Tasmania, Kimberley/Derby region and by Cyclone Ilsa in Western Australia. In addition, ANZ donated $50,000 to local organisations for flood recovery efforts in the Kimberley/Derby region in January. We implemented our New Zealand customer assistance package for those affected by severe weather events in the North Island including Cyclones Gabrielle and Hale, and floods throughout January and February. In addition, we donated NZ$100,000 to the Auckland Mayoral Relief Fund to support local communities impacted by the January flooding event and pledged NZ$3 million in donations to communities affected by Cyclone Gabrielle. This included NZ$1 million to support businesses and communities through local relief funds and *Iwi* organisations in affected regions, NZ$1 million to support horticulture and agriculture sector groups and a NZ$1 million donation to the New Zealand Red Cross Disaster Fund through a special fundraising event with New Zealand Cricket. We also launched a new low-interest ANZ Business Regrowth Loan in New Zealand aimed at creating a more enduring solution for those in need of finance following extreme weather events. To help the flow of funds to communities impacted by the cyclones, ANZ waived transfer fees on foreign currency international transfers from Australia to New Zealand. ANZ also waived international monetary transfer fees for transfers from Australia and New Zealand to Turkiye and continued to waive transfer fees to communities in Ukraine, Sri Lanka and Pacific communities. ### Distributing remediation funds to charity Our remediation program seeks to put things right for customers who may have been impacted by errors we’ve made. While we seek to ensure remediation payments reach those impacted, there are some cases where that does not occur, for example, when we cannot locate a former customer. In most cases, we distribute the remediation payment amount to charity. In 2023, we distributed more than $6 million in remediation funds to charities throughout Australia including Berry Street, The Smith Family and community legal centres. These donations have funded more than 20 projects focused on delivering long-term benefits to disadvantaged communities or those in need of extra care across metropolitan and regional areas. --- # HELPING CUSTOMERS BETTER MANAGE THEIR MONEY AND SAVE WITH ANZ PLUS Launched in 2022, ANZ Plus is a new digital way to bank. Starting with a save and transact proposition, ANZ Plus has grown to nearly 462,000 customers in 2023, 36% of whom are actively saving towards a financial goal. We are building the digital tools, data insights and coaching to help bring the nine financial wellbeing principles underpinning ANZ Plus to life for our customers: - Spend less than you earn - Put money aside for a rainy day - Save regularly towards your goals - Protect what you can’t afford to lose - Borrow within your means - Pay your most expensive debt first - Build towards your retirement - Invest in things that grow - Give back to family, friends and the community when you can This year, we have focused on upgrading existing and releasing new features for ANZ Plus to improve the customer experience, including: - **Video chat with a Coach**: This feature gives customers peace of mind that conversations regarding their most valuable assets are taking place in a secure setting inside the ANZ Plus app, with the support of an expert ANZ Plus Coach. - **Higher payment limits, protected by Selfie ID**: High-value, self-service payments have been enabled on ANZ Plus via BPAY and Pay Anyone, making it easier to pay a deposit for a new home, buy a new car or make a payment on a renovation. When changing a Pay Anyone or BPAY limit, customers need to successfully authenticate using SelfieID. Payments are also protected by behavioural biometrics and FalconX controls. - **Visa Card Authentication Service (VCAS)**: Handing over your card details to a new merchant can concern some customers, especially for high-value transactions. To help with this, ANZ Plus has introduced Visa Card Authentication Service which allows customers to approve transactions identified as higher risk in the ANZ Plus app, improving security. - **Home lending**: We built a digital-first, data-driven and automated home lending (refinance) solution on modern technology and tested this with a small number of staff customers. ANZ Plus is focused on reducing the risk of fraud and improving protection for our customers. ANZ Plus safety features and controls start with a secure onboarding process which ensures identity documents are authentic and biometrically match the customer’s “selfie” provided when joining. --- # INFORMATION SECURITY ### Scams This year, we continued to review and adjust our capabilities to keep customers safe as new scams emerge and cyber criminals change how they operate. In 2023, our people and our systems stopped more than $100 million being sent to criminals and our Scam Assist team investigated around 12,300 individual scams impacting retail$^1$ and commercial customers in Australia. We attempt to recover funds reported as scams or fraud. However, the ability to recover funds depends on a number of factors including how quickly it is reported to us and the speed in which funds are transferred on by scammers. In many instances, scammers transfer funds within minutes or use them to purchase cryptocurrency. Given this, we introduced friction and delays to some payment destinations with high scam or fraud density. We also worked with major telecommunications companies to activate anti-spoofing technologies such as the Do Not Originate (DNO) service and technology to prevent scammers from using the “ANZ” brand in text messages. This practice, known as ‘spoofing’, has become increasingly common in Australia and involves scammers sending an SMS purporting to be from a legitimate organisation, making it very difficult to spot a scam because it is contained in the same text message thread as previous communication from the company being impersonated. As an extension to our behavioural biometrics technology delivered last year, ANZ invested in a new security capability designed to detect mule accounts being used to receive funds from scam victims and other criminal activities. By using artificial intelligence and machine learning, the mule detection capability recognises money mules and mule accounts. This year, the mule detection technology identified nearly 1,400 high risk accounts. Once identified, these accounts are reviewed by our fraud and scam experts and, if it is found to be linked to a potential or realised fraud or scam, the accounts are closed. This process is supported by a new and dedicated mule detection team who work alongside more than 400 ANZ customer protection specialists. We take the education of our customers and bankers seriously. This includes training our people to recognise new scams, helping them to protect customers and supporting our customers to be more secure through new education resources and regular alerts. For more information visit [anz.com.au/security/fraud-detection/latest-security-alerts/](http://anz.com.au/security/fraud-detection/latest-security-alerts/) --- # ETHICS, CONDUCT AND CULTURE ### Code of conduct Our Code of Conduct sets expected standards of behaviour and guides us in applying our values. **This includes:** - be ethical and professional; - act with integrity; - protect competition and the competitive process; - treat everyone with dignity and respect; - manage conflicts of interest; - protect privacy and confidentiality; and - call out unacceptable behaviour and stand up for what is right. Our Code requires all employees and contractors to comply with the law as well as our policies and procedures. It is supported by a suite of policies reviewed regularly to reflect legislative changes and remain fit for purpose. We expect our partners (such as suppliers, service providers and other relevant third parties) to adopt and maintain conduct and ethics principles similar to those outlined in the Code and supporting policies. All employees and contractors are required to complete training courses within two months of commencing with ANZ and then on a regular basis. Courses include training on ‘Living the Code’, ‘Equal Opportunity Essentials’ (includes anti-discrimination and sexual harassment), ‘Financial Crime Essentials’ (including Anti-Money Laundering), ‘Operational Risk’, ‘Security Essentials’ (includes information and cyber security) and ‘Privacy, Competition Law and Consumer Protection’. This year, 99.6% of our employees and contractors completed their mandatory training courses. Individuals who fail to complete this training or other mandatory learning requirements within 30 days of the due date are (in the absence of genuinely exceptional circumstances) ineligible for any fixed remuneration increase or variable remuneration as part of our annual Performance and Remuneration Review. ### Encouraging whistleblowers to speak up The Whistleblower Policy and Program is a key component of our strong and effective conduct risk management and corporate governance framework. We apply Australian whistleblower regulations across the markets in which we operate. The Whistleblower Program is one of many channels encouraging and empowering our people to speak up and raise misconduct concerns, freely and without fear of reprisal. The policy and program provide strong protections for individuals who disclose misconduct and play a pivotal role in maintaining the integrity of the organisation. There were 170 new reports made through the Whistleblower Program this year (up from 142 reports in 2022) demonstrating a continued willingness of individuals speaking up to raise misconduct concerns. Our focus this year was on continuing to build awareness and confidence in the program, strengthening governance and risk management frameworks, and the timely management of whistleblower matters. --- # SOCIAL AND ENVIRONMENTAL RISK MANAGEMENT We regularly review our lending practices and policies, taking into account current and emerging social and environmental issues. These potential issues which, through our lending to customers, could result in risks to the business are also considered by our executive Ethics and Responsible Business Committee (ERBC) and Board Ethics, Environment, Social and Governance Committee (EESG). See pages 8-9 for more information about our ESG governance. We seek to assess and manage the impacts of our lending decisions through the application of our Social and Environmental Risk Policy (the Policy) and accompanying Requirements including for ‘sensitive sectors’: - ENERGY - EXTRACTIVE INDUSTRIES - FORESTRY AND FORESTS - HYDROELECTRIC POWER - MILITARY EQUIPMENT - WATER The Policy outlines the social and environmental factors to be taken into account by our bankers when considering large business transactions. It incorporates our approach to human rights, including our ‘zero tolerance’ for land acquisition and involuntary resettlement that we consider improper, as well as labour rights issues such as modern slavery. We review the Policy at least every three years, with oversight from our ERBC to ensure it remains fit-for-purpose. The review takes into account changes to customer practices, international standards, emerging social and environmental issues, and stakeholder feedback. In 2023, we improved our credit risk assessment process via our Online Customer Profile platform by integrating our Social and Environmental Risk screening tool for large business customers. This allows us to improve our identification of financial and non-financial risks (including reputational risk) we may face through our customer activities, both at an individual customer level and across our portfolio. We intend to extend the application of the screening tool to some large business customers who do not borrow money from us but use other products such as payment and cash management services. ### Animal welfare principles ANZ is a proud supporter of Australian agriculture, with over 180 years of history in providing banking services to the sector. We believe good animal welfare standards in Australian agriculture are critical to the industry’s sustainability and are an important part of our ESG focus. Our Animal Welfare Principles were developed in line with ANZ’s approach to managing lending risk – noting animal welfare practices can impact the risk profile of a business. The Principles are available at [anz.com.au/about-us/esg/policies-practices](http://anz.com.au/about-us/esg/policies-practices). --- # EQUATOR PRINCIPLES The Equator Principles is a risk management framework for determining, assessing and managing social and environmental risks in large infrastructure and industrial projects. As a member of the Equator Principles Association since 2006, we seek to ensure the projects we finance and advise on are developed in a manner that is socially responsible and reflect sound environmental management practices. We commit to implementing the Equator Principles through our internal environmental and social policies, procedures and standards for financing projects. We will not provide Project Finance, Project-Related Corporate Loans to Projects or Project-Related Refinance and Project-Related Acquisition Finance to projects which do not comply with the relevant Equator Principles requirements. We use the Equator Principles as a minimum standard for due diligence and monitoring to support responsible decision-making for Project Finance. The Equator Principles complement our sensitive sector Requirements and our Social and Environmental Risk Policy which also apply to Project Finance transactions. If we determine that the Equator Principles apply, we conduct initial due diligence to inform our view of the likely Equator Principles rating. This due diligence includes reviewing any Environmental Impact Assessment the customer provided as part of the project approval process, as well as considering the project’s alignment with our Social and Environmental Risk Policy and sensitive sector Requirements. We will engage a third-party expert to prepare a social and environmental due diligence report (EP DD) where our initial due diligence indicates a likely Category A or Category B rating under the Equator Principles. --- # MANAGING ESG RISKS AND OPPORTUNITIES IN OUR SUPPLY CHAIN In 2023, ANZ spent $4.9 billion with suppliers procuring goods and services across our 29 operating markets. The majority (90%) was spent in Australia and New Zealand. Contracted suppliers, including subcontracted suppliers, are screened as part of Group Procurement’s ongoing supplier due diligence using a third-party tool to assess performance against 28 ESG issues across the topics of environmental footprint, community relations, employee relations and corporate governance. In 2023, we undertook nearly 5,300 checks which included our top 100 suppliers, by spend. These checks identified potential issues in 12 instances. Our Supplier Code of Practice (SCOP) outlines our minimum requirements for suppliers including in relation to human rights and workplace relations, occupational health and safety, ethical business practices, information management and confidentiality, accessibility, environmental management and supplier diversity. ### Working with our suppliers As a signatory to the Business Council of Australia’s Supplier Payment Code, we are committed to paying Australian small business suppliers within a maximum of 30 days of receiving a correct invoice or otherwise in accordance with the Code, unless the contract stipulates a shorter term. However, our aim is to pay small businesses and all Aboriginal and Torres Strait Islander businesses regardless of size as promptly as possible upon approval of the invoice. In New Zealand, we support the New Zealand Banking Association’s initiative established to assist small-to-medium businesses during COVID-19. To date, we have processed approximately 78% of payments (excluding purchasing card transactions) within the 10 business days target. > In 2023, we undertook nearly 5,300 checks which included our top 100 suppliers, by spend. These checks identified potential issues in 12 instances. --- # OUR APPROACH TO HUMAN RIGHTS Our Human Rights Statement (Statement) outlines our approach to respecting human rights, and our Human Rights Grievance Mechanism (Mechanism) provides a process for people whose human rights have allegedly been impacted by an ANZ Institutional or Corporate business lending customer, to be raised with ANZ. ### Our Human Rights Statement ANZ seeks to support and respect the human rights of our employees, customers and the people in our communities. We expect the same commitment to human rights from everyone who works for, or with, us including our employees and people with whom we have business relationships. Our approach is consistent with our policies and other relevant documents available at anz.com including: - Anti-Bribery and Anti-Corruption Policy - Land Acquisition Position Statement - Approach to Accessibility and Financial Inclusion - Climate Change Commitment - Diversity and Inclusion Policy - Equal Opportunity, Bullying and Harassment Policy - Modern Slavery Statement - Reconciliation Action Plan - Social and Environmental Risk Policy and Screening Tool - Supplier Code of Practice - Complaints processes ### Salient human rights We have identified our salient human rights issues according to where we could potentially cause or contribute to the most significant negative human rights impacts. These include: - Safety and security of our people - Labour rights, including modern slavery - Privacy and consumer protection - Corruption and bribery - Environmental protection - Land access and rights > You can trace our approach to human rights throughout this report using this symbol --- # CONTRIBUTING TO RECONCILIATION IN AUSTRALIA ANZ’s vision for reconciliation is an Australia that is unified around a shared history that celebrates and honours the unique contributions of Aboriginal and Torres Strait Islander peoples. This work has evolved since our first Reconciliation Action Plan (RAP) in 2007 and we aim to continue to develop our approach. Our 2021–2024 Stretch RAP, focuses on four key areas: - Improve the financial wellbeing of individuals to develop financial resilience - Provide employment and career progression opportunities to enable economic participation - Support the growth of Indigenous businesses and organisations to enable economic participation - Improve our understanding of Aboriginal and Torres Strait Islander cultures to create culturally safe and supportive spaces, show respect and combat racism We continue to make good progress against the 17 actions in our RAP, delivering all that fell due in 2023. This year, we: - Launched a Commercial banking proposition, appointing two Indigenous Small Business Managers to work with our Indigenous Commercial customers. - Partnered with Indigenous Business Australia to host a one-day CEO Assessment Clinic for the leaders of six Indigenous businesses. - Spent $11.7 million with Indigenous businesses ($24.4 million since the RAP commenced). - Implemented a Cultural Learning Strategy designed to improve the cultural competency of Australia-based non-Indigenous employees to meet the needs of Aboriginal and Torres Strait Islander customers, employees and community partners. - Embedded First Nations principles into the design concepts for key offices and branch refurbishments or new builds, in consultation with local Traditional Owners. - Developed and implemented ANZ’s First Nations Recruitment, Retention and Professional Development Strategy (2024-2026) to drive greater representation across all levels of the organisation and empower our First Nations employees to build meaningful careers at ANZ. - Partnered with BlackCard to provide face-to-face cultural capability training to more than 280 Australia-based employees. - Delivered eight MoneyBusiness coach training sessions to community workers and financial counsellors working in remote communities. --- # LEADING INDIGENOUS TRANSFORMATIONAL CHANGE IN AOTEAROA NEW ZEALAND Launched in 2022, ANZ Bank New Zealand’s *Tākiri-ā-Rangi* strategy aims to: - Develop stronger relationships with Māori, iwi (tribe) and hapū (sub-tribe) across the country, acknowledging the growing contribution Māori businesses make to the economy; - Support indigenous financial inclusion to improve Māori financial wellbeing; and - Conduct a program to enhance ANZ’s own understanding of *Te Ao Māori* (the ‘Māori world view’). The strategy will be implemented until 2040 and aims to deepen ANZ’s understanding of the values that are intrinsic to Māori. This year, we have made substantial progress against these goals, including: - Arranging our first loan agreement with a Māori business which includes a statement of intent in *Te Reo Māori*. - Launching *Te Waka-Ā-Reo*, ANZ’s own reo Māori program. The online and facilitated language courses were designed to increase proficiency and confidence in the language, with more than 1,200 online modules completed this year. - As part of *Te Tohu o Matariki o ANZ* – which introduced Māori design, photography and language to our brand assets, marketing campaigns and branches – over 2,900 customers applied for a new bank card featuring the work of Māori artist Geoff Popham. - Releasing ANZ’s *Watch Wāhine Win* report, which recognised and celebrated the women who make up New Zealand’s rich cultural fabric. - Changing ANZ Bank New Zealand’s social media handles to ‘ANZ Aotearoa’. - Launching *Ngā Whetū E Pīata Mai Ana* – an innovative recruitment program, partnering with a private training entity to find and educate our next generation of Māori bankers. - Introducing *Te Taumata o Tākiri-ā-Nuku*, a biannual gathering of Māori staff. ### Engaging with the community This year, ANZ also hosted Dame Annette King (the High Commissioner of New Zealand to Australia) who, alongside ANZ CEO Shayne Elliott, opened the ANZ *Te Tiriti O Waitangi* (the Treaty of Waitangi) Exhibition at our headquarters in Melbourne. ANZ Bank New Zealand’s leadership team also met with Māori leaders from across Aotearoa New Zealand to talk about *Te Tiriti O Waitangi*, the ‘price of citizenship’ and role being played by Māori Trusts to help rebuild their regions after extreme weather events. --- # OUR APPROACH TO ACCESSIBILITY AND INCLUSION Our refreshed 2023-2025 Accessibility and Inclusion Plan is registered with the Australian Human Rights Commission. The Plan includes a refined set of obligations for ANZ to continue to build a more accessible bank for our customers, employees and the community. Importantly, the Plan now extends to New Zealand for the first time. The new obligations in the Accessibility and Inclusion Plan are grouped across four areas: - **INCLUSIVE DESIGN**: We use inclusive design principles so as many people as possible can use our products, services and working environments with dignity, convenience and independence. - **EMPLOYEE EXPERIENCE**: As a disability-confident workforce, we create safe and welcoming working environments where people with disability can thrive. - **CUSTOMER EXPERIENCE**: We identify and address barriers to banking to promote equitable access for everyone in the community. - **COMMUNITY AND PARTNERS**: Through a wide range of partnerships and ongoing consultation with leading disability organisations, changemakers, and industry groups, we are a voice for change, raising awareness and closing social and economic gaps for people with disability. ### HIGHLIGHT: Financial wellbeing of people with disability or long-term health conditions To support the delivery of obligations in our new Accessibility and Inclusion Plan, ANZ released research examining the financial confidence and wellbeing of Australians living with disability or long-term health conditions. The research found people with disability or long-term health conditions, particularly those of working age, had much lower financial wellbeing than other Australians. > The research found people with disability or long-term health conditions, particularly those of working age, had much lower financial wellbeing than other Australians. --- # MANAGING OUR INDUSTRY ASSOCIATIONS AND TAX ### Contribution to public policy We seek to contribute constructively to public policy formation and understand the perspectives of our community's elected representatives, policy makers and regulators. This includes business, economic, social and environmental focus areas. We work in a collaborative and open way as members of associations that have similar interests and approaches to ours. **In 2023, our key membership payments included:** - Australian Banking Association: $3,040,391 - Business Council of Australia: $104,500 - New Zealand Banking Association: NZ$2,260,248 - Business New Zealand: NZ$46,460 ### Managing our tax affairs We maintain the highest standards of tax governance and compliance with the tax laws and obligations in the jurisdictions in which we operate. We pay tax consistent with our business presence and operations. We apply the Australian Board of Taxation’s Voluntary Tax Transparency Code and provide the recommended disclosures. > Refer to our Voluntary Tax Transparency Report available at [anz.com/annualreport](http://anz.com/annualreport). --- # MEETING THE NEEDS OF A CHANGING WORKFORCE We’re responding to the needs of a changing organisation by investing in simple and seamless core human resources (HR)-related tools and services, supporting our people to adapt and progress so they can focus on, and deliver, what matters. We launched a new HR platform this year, helping create a connected technology experience for our people across recruitment, onboarding, performance management, learning, career development, progression, reward and recognition, pay and offboarding. This investment in our HR technology infrastructure is designed to deliver business benefits and an enhanced experience for our people long-term. Through new position management structures, data and insights capabilities, and people cost controls we are well positioned to make data-driven decisions to achieve this strategy for our workforce. --- # WELLBEING AND ENGAGEMENT We continue to focus on providing programs to support the wellbeing of our people across all domains, including physical, mental, social and financial wellbeing. Our regular wellbeing webinars continue to have strong engagement, with nearly 4,450 employees attending throughout the year. We commenced a Group-wide review to explore the factors which have the greatest influence on the mental health and wellbeing on our people. In Australia, we implemented Mental Health First Aid training, with more than 170 employees now accredited to support colleagues experiencing mental health issues. We also introduced suicide and self-harm guidelines in India, in addition to those already used in Australia, New Zealand and Manila. Customer aggression continues to be one of the key risks to employee wellbeing. In recognition of this, a refreshed capability framework was developed and revised inappropriate customer behaviour training is in development. Both initiatives aim to support our frontline employees to safely de-escalate instances of customer aggression. ### Engagement Our bi-annual Group-wide engagement survey, My Voice, continues to be one of the primary ways we receive feedback from our people and understand their experience of working at ANZ. Our results continue to exceed the global Finance & Insurance (F&I) benchmark on all items – and, in some cases, exceed the Global Best in Class (GBIC) benchmark (top 10% of organisations globally). Our engagement scores are level with the GBIC benchmark and 6 ppt above the global F&I industry average. Further, 89% of respondents said they would recommend ANZ as a great place to work. ### August 2023 My Voice survey results: - **Employee engagement**: 87% (March 2023: 87%) - **Inclusion**: 85% (March 2023: 87%) - **Wellbeing**: 83% (March 2023: 83%) - **Experience matches expectations**: 92% (March 2023: 92%) --- # ATTRACTING AND RETAINING EMPLOYEES Our employee attrition rate fell to 9.5% this year – down from 13.9% in 2022 and slightly below our pre-COVID rate of 10.6%. We have observed an easing of the highly competitive labour market seen in previous years across our major geographies, with applications per job ad increasing and overall job ads declining. However, with ongoing low unemployment in Australia and New Zealand, competition in some role types remains tight, particularly for engineers and data professionals. ### Focusing on key strategic capability areas **Engineering, Cloud, Data and Security** The Engineering Career Pathways program launched this year, is designed to help attract, grow and retain these critical skill sets. The pathways comprise eight specialisations and seven craft levels, providing career progression to people focused on mastering the craft of engineering. **Building capabilities in ESG** Our Mindset 2030 learning program supports our employees to better understand our Environmental Sustainability strategy, research and publications, and how we are engaging with our customers in line with our Climate Change Commitment. This year, we added new modules to the learning program, covering ESG topics such as financial wellbeing and risk management. Around 4,300 people have commenced the renamed ESG@ANZ learning program, with more than 8,800 modules completed. --- # LEARNING AND DEVELOPMENT ### Developing our leaders and their teams We continued to invest in developing the capability of our people this year with more than 1.36 million hours of learning delivered through our digital learning platforms. This included around 616,000 hours of compliance training and more than 484,000 hours of self-directed learning. A further 149,000 hours were dedicated to continuing professional development. Since launching our Executive Leadership Series last year, we delivered two modules targeted to senior leadership focusing on topics related to our strategy. The module on performance and culture was attended by over 70% of senior leadership with around 86% of attendees indicating it helped improve their leadership approach. The newly launched LEAD@ANZ program is designed to empower people leaders across the organisation and equip them with the skills and confidence to be an exceptional leader. Since launch, the program has been attended by more than 5,400 of our people across 29 markets. Topics covered include what it takes to be a great leader and how to bring our purpose and strategy to life. --- # ACHIEVING GENDER BALANCE IN OUR BUSINESS We are pleased to have increased Women in Leadership (WIL) to 37.3% in 2023, exceeding our target of 36.9% (an increase of 1.4 ppt since 2022). Women in revenue generating leadership roles improved by 2 ppt to 32.2% this year. In 2024 our target is to again increase WIL by 1 ppt, to 38.3%. We anticipate the changing shape of our business and increased focus on traditionally male-dominated roles may make it challenging to achieve the progress in WIL that we are seeking. To help support the achievement of this target, this year we developed an enterprise Women in Leadership (WIL) Action Plan which has a focus on increasing the representation of WIL and ‘building the pipeline’, and includes a sustained focus on prioritised segments such as Institutional and Technology, both of which have large leadership populations – a higher proportion of which are men. ### ANZ signatory to 40:40 Vision ANZ is signatory to the 40:40 Vision, an investor-led initiative which aims to achieve gender balance (40:40:20) in executive leadership teams of ASX300 companies by 2030. As at 30 September 2023, women as Key Management Personnel (KMP) had decreased to 30% (below the 40% target). This number included Richard Howell, who was Acting Group Executive Talent & Culture for three months during 2023. Elisa Clements was announced permanent Group Executive Talent & Culture commencing 9 October at which time women as KMP increased to 40%. Three of the four KMP roles with profit and loss accountability are held by women – our Group Executive Australia Retail Maile Carnegie, Group Executive Australia Commercial Clare Morgan, and Group Executive and CEO New Zealand Antonia Watson. --- # A FOCUS ON GENDER PAY EQUALITY We further evolved our approach to gender pay reporting by disclosing our total remuneration gender pay gap in Australia for the first time this year. The overall figure represents the difference between what women and men earn across all roles based in Australia. We have chosen to report the difference in total remuneration rather than salary this year, reaffirming our ambition to publish more transparent pay equity data and bridge the gender pay gap. ### Gender pay gap Australia | | AVERAGE | | MEDIAN | | | --- | --- | --- | --- | --- | | | 2023 | YoY change | 2023 | YoY change | | **Gender pay gap** | 19.9% | 1.9 ppt | 23.1% | 1.5 ppt | | **Pay equity gap** | 0.3% | 0.7 ppt | 0.01% | 0.5 ppt | --- # WORKPLACE DIVERSITY AND INCLUSION By having a diverse workforce and inclusive culture we aim to improve the quality of ANZ’s decision-making and drive innovation, making us a better bank for our customers. We are making good progress against our five diversity and inclusion strategic priorities: - Create an inclusive culture and improve the experience of our employees who represent all dimensions of diversity - Build the confidence and capability of people leaders to lead diverse and inclusive teams - Improve the diversity of our leadership population - Strengthen and empower our employee networks - Improve accountability and governance ### Our employee networks: creating an inclusive culture Our employee networks continue to play a critical role in shaping our inclusive culture and their importance is reflected in our Diversity and Inclusion Strategy. Groups representing our diverse workforce include Abilities, Reconciliation, Mental Health & Wellbeing, Cultural Inc, ForWARD, Faith, and Pride. We have begun establishing our first neurodiverse employee network to support and build connections with our neurodiverse community within ANZ. ### Return to Work Program This year saw the expansion of our Return to Work program which supports individuals who have been out of the workforce for two or more years back into meaningful employment. With opportunities across Technology, Commercial, Institutional and Retail, more than 40 new employees were hired across Australia and India. Women represented 90% of these employees. We are pleased that 77% of participants from the last two cohorts of this program have been retained. --- # PARTICIPATION OF UNDER-REPRESENTED GROUPS IN OUR WORKFORCE We also continue to run a range of employment programs designed to increase the diversity of our workforce, including: - Indigenous traineeships – 41 trainees (25 full-time and 16 school-based) in 2023 - Two new Spectrum program participants this year, in addition to continuing to support autistic secondary school students with 19 work experience placements - More than 260 participants in our Summer internships and graduate programs ### Chance For All In 2022, the Brotherhood of St Laurence (BSL) invited ANZ to participate in the “Chance For All” pilot, which expands on the Given the Chance program to include people with disability, recognising the barriers to employment that can also be experienced by this group. ### Given the Chance Since 2007, we have partnered with BSL on the Given the Chance program to assist refugee and asylum seekers with six to 12-month work placements, providing them with invaluable work experience to enter the local workforce. This year, we have placed 46 participants into work placements at ANZ. Approximately 57% of participants from the 2022 cohort have retained ongoing careers with us. --- # EXPLANATORY NOTES ### Target to fund and facilitate $10 billion in affordable, secure and sustainable housing by 2030 across Australia and New Zealand. ‘Affordable, secure and sustainable housing’ is defined as the products and services provided to our customers in Australia to the extent they are related to the defined activities below. The $10 billion target is reported as at 30 September 2023 and is a twelve-year Australia and New Zealand target, from 2018 to 2030. It includes all financing either funded or facilitated by ANZ through its products and services, including, but not limited to, loans, guarantees and bonds, markets products and advisory services. It also includes certain labelled sustainable finance products such as social/sustainability bonds and sustainability-linked loans (SLLs). The $10 billion target activities specifically include the construction of, or investment in, Australian and New Zealand housing supply that supports positive market change, including the following aims: - supporting social housing for vulnerable communities; - expanding the availability of affordable housing for rental or purchase; - increasing the availability of accessible housing that provides better design to support disability and aged persons; - delivering security of tenure for rental and/or including the opportunity to purchase; and - improving housing sustainability via design and features above minimum standards. --- # INDEPENDENT LIMITED ASSURANCE REPORT TO THE DIRECTORS OF ANZ GROUP HOLDINGS LIMITED ### Conclusion Based on the evidence we obtained from the procedures performed, we are not aware of any material misstatements in the ANZ 2023 ESG Reporting, which has been prepared by ANZ in accordance with the Criteria for the year ending 30 September 2023. ### Information Subject to Assurance ANZ Group Holdings Limited (ANZ) engaged KPMG to perform a limited assurance engagement in relation to the 2023 ESG Supplement and 2023 ESG Data and Frameworks Pack. KPMG’s scope of work comprises limited assurance over all material text and data claims presented in the 2023 ESG Supplement, and all data tabs and the GRI Index tab in the 2023 ESG Data and Frameworks Pack (“2023 ESG Reporting”). ### Criteria Used as the Basis of Reporting The 2023 ESG Reporting is prepared in accordance with the GRI Universal Standards published by the Global Reporting Initiative (GRI) version dated 2021 and management’s basis of reporting. ### Basis for Conclusion We conducted our work in accordance with Australian Standard on Assurance Engagements ASAE 3000 (Standard). In accordance with the Standard we have: - used our professional judgement to plan and perform the engagement to obtain limited assurance that we are not aware of any material misstatements in the 2023 ESG Reporting, whether due to fraud or error; - considered relevant internal controls when designing our assurance procedures, however we do not express a conclusion on their effectiveness; and - ensured that the engagement team possess the appropriate knowledge, skills and professional competencies. ### Summary of Procedures Performed Our limited assurance conclusion is based on the evidence obtained from performing the following procedures: - Enquiries with management to understand ANZ’s process for determining material ESG issues; and implementation of these across the business; - Interviews with relevant ANZ management and staff concerning ANZ's approach to ESG and policies for material ESG issues, and the implementation of these across the business; - Interviews with relevant staff responsible for developing the content (text and data) within the 2023 ESG Reporting to understand the approach for management, monitoring, collation and reporting of such information and the accuracy, completeness and existence of reported text and data within the 2023 ESG Reporting; - Comparing text and data (on a sample basis) presented in the 2023 ESG Reporting to underlying sources. This included considering whether all material matters are included, whether any are excluded and whether the reported text and data is accurately drawn from the underlying information; - Testing over ANZ’s 2023 ESG targets and the disclosed progress or achievement; - Reading the 2023 ESG Reporting (in its entirety) to ensure it is consistent with KPMG's overall knowledge of, and experience with, the ESG performance of ANZ; - Performing a consistency check of ANZ's ESG Disclosures included within the Climate-related Financial Disclosures Report; - Reviewing ANZ's assessment of the disclosures in relation to the GRI. --- # INDEPENDENT LIMITED ASSURANCE REPORT TO THE DIRECTORS OF ANZ GROUP HOLDINGS LIMITED (CONTINUED) ### ANZ’s Responsibility ANZ’s Management are responsible for: - determining that the Criteria is appropriate to meet their needs; - preparing and presenting the 2023 ESG Reporting and other ESG related information in accordance with the Criteria; and - establishing internal controls that enable the preparation and presentation of the 2023 ESG Reporting 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 2023 ESG Reporting for the year ended 30 September 2023, and to issue an assurance report that includes our conclusion. ### Our Independence and 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 Australian Professional and Ethical Standards Board, and complied with the applicable requirements of Australian Standard on Quality Management 1 to maintain a comprehensive system of quality management. We have also complied with ANZ’s Stakeholder Engagement Model for Relationship with External Auditor (available on anz.com). [KPMG signature] **Adrian King** Partner KPMG Melbourne 10 November 2023 © 2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with 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. --- [anz.com/esgreport](http://anz.com/esgreport) ANZ Group Holdings Limited (ANZ) ABN 16 659 510 791. 9/833 Collins Street, Docklands Victoria 3008 Australia. ANZ’s colour blue is a trade mark of ANZ.