Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — ESG Presentation (November 2021)
46 slides from Anz's sustainability presentation, Nov 26, 2021
Slide 1: 2021 ESG Investor Pack Roundtable
For personal use only 2021 ENVIRONMENT, SOCIAL AND GOVERNANCE (ESG) INVESTOR PACK ROUNDTABLE 26 NOVEMBER 2021 Approved for distribution by ANZ’s Continuous Disclosure Committee Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522
Slide 2: Disclaimer & Important Notice
DISCLAIMER & IMPORTANT NOTICE For personal use only The material in this presentation is general background information about ANZ’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be and should
Slide 3: Contents
CONTENTS OVERVIEW 4–7 For personal use only Key messages 5 Our approach 6 OUR ENVIRONMENTAL SUSTAINABILITY STRATEGY 8 – 11 Supporting our customers and steering our portfolio 9 Enabling our business strategy 11 CLIMATE RISK 12 – 13 OUR UPDATED CLIMATE CHANGE COMMITMENT 14 – 16 Summary of key changes
Slide 4: Overview
For personal use only 2021 ESG INVESTOR PACK OVERVIEW
Slide 5: Overview
OVERVIEW For personal use only 1 Significant opportunities arising from a decarbonising economy 2 ANZ well positioned to facilitate the transition to net zero emissions 3 Responding through a new Environmental Sustainability Strategy and priority areas of focus 4 Our updated Climate Change Commitmen
Slide 6: Key Messages
KEY MESSAGES RESPONDING TO CLIMATE RISKS AND EMBRACING THE OPPORTUNITIES For personal use only • Climate change is a financial risk, and a shared challenge for our customers, governments and the financial sector • The transition to a low carbon economy also presents new and significant opportunities
Slide 7: Our Approach
OUR APPROACH For personal use only ANZ’s CLIMATE AMBITION To be the leading Australia- and New Zealand-based bank in supporting customers to transition to net zero emissions by 2050 The opportunity The pathway to net zero emissions presents significant financing opportunities, which we’ll realise to
Slide 8: A Global Transformation Is Required
A GLOBAL TRANSFORMATION IS REQUIRED TRANSITION TO NET ZERO REQUIRES ~$125 TRILLION¹ IN INVESTMENT, WITH >50% REQUIRED ACROSS ASIA–PACIFIC REGION For personal use only Critical minerals Transitioning energy Electrification of Food, beverage and sector2 from high to low transport commodities carbon Gl
Slide 9: Our Environmental Sustainability Strategy
For personal use only 2021 ESG INVESTOR PACK OUR ENVIRONMENTAL SUSTAINABILITY STRATEGY
Slide 10: Supporting Our Customers and Steering Our Portfolio
SUPPORTING OUR CUSTOMERS AND STEERING OUR PORTFOLIO AMBITION TO BE THE LEADING AUSTRALIA-AND NEW ZEALAND-BASED BANK IN SUPPORTING CUSTOMERS TO TRANSITION TO NET ZERO EMISSIONS For personal use only KEY PRIORITY AREAS AND SECTORS WE’LL PURSUE Supporting sustainability in resource extraction¹, basic m
Slide 11: Well Positioned to Support Our Customers
WELL POSITIONED TO SUPPORT OUR CUSTOMERS INSTITUTIONAL For personal use only • Helping companies move goods and capital across the region Transaction Banking • Trade; Payments & Cash Management; Supply Chain • Operating in 32 markets globally, in Asia for 50+ years Corporate Finance • Support multi-
Slide 12: Enabling Our Business Strategy
ENABLING OUR BUSINESS STRATEGY INVESTING IN KEY PARTS OF OUR BUSINESS For personal use only To deliver on our ambition to be the leading Australia- and New Zealand-based bank in supporting customers to transition, we will invest in our business across a number of areas Deepening our Strengthening ou
Slide 13: Climate Risk
For personal use only 2021 ESG INVESTOR PACK CLIMATE RISK
Slide 14: Managing Climate Risk
MANAGING CLIMATE RISK ACTIVELY MANAGING CLIMATE RISK WITHIN OUR GROUP RISK MANAGEMENT FRAMEWORK For personal use only Focused on managing the risks and the opportunities of climate change This includes: • Engaging closely with our largest emitting business customers on the work they’re doing to tran
Slide 15: Our Updated Climate Change Commitment
For personal use only 2021 ESG INVESTOR PACK OUR UPDATED CLIMATE CHANGE COMMITMENT
Slide 16: Our Updated Climate Change Commitment
OUR UPDATED CLIMATE CHANGE COMMITMENT OUR KEY FOCUS AREAS For personal use only 1 2 3 4 Supporting customers and Aligning our lending Reducing our footprint Engaging constructively and industries to transition decisions to the Paris transparently with Agreement goals stakeholders • Implementing our
Slide 17: Summary of Key Changes in Our 2021 Climate Commitment
SUMMARY OF KEY CHANGES IN OUR 2021 CLIMATE COMMITMENT For personal use only FOCUS AREA CHANGE Supporting the State our ambition to be the leading Australia-and New Zealand-based bank in supporting customers to transition transition and how we will achieve this Employee development Commit to equip ou
Slide 18: Aligning Our Lending Decisions to the Paris Agreement Goals
For personal use only 2021 ESG INVESTOR PACK ALIGNING OUR LENDING DECISIONS TO THE PARIS AGREEMENT GOALS
Slide 19: Supporting Our Energy Customers to Reduce Their Emissions
ALIGNING OUR LENDING DECISIONS TO THE PARIS AGREEMENT GOALS SUPPORTING OUR ENERGY CUSTOMERS TO REDUCE THEIR EMISSIONS For personal use only • Our success in supporting a net zero transition will be driven by our financing of customers to reduce their emissions • To achieve this, we are: • Focusing o
Slide 20: Finance to Back Customers Reducing Emissions
FINANCE TO BACK CUSTOMERS REDUCING EMISSIONS TARGETS¹ SET FOR CARBON INTENSIVE SECTORS For personal use only • We have set emissions intensity reduction targets for large-scale commercial buildings in Australia and global power generation. This means more finance for less emissions • We will progres
Slide 21: More Finance for Less Emissions
MORE FINANCE FOR LESS EMISSIONS EMISSIONS INTENSITY TARGETS SET OUR PATHWAYS For personal use only • Using our two new emissions intensity 2030 targets for our large-scale Australian commercial buildings and global power generation portfolios, we have defined and disclosed net zero aligned pathways
Slide 22: Aligning Portfolio Emissions with 2050 Pathways
ALIGNING PORTFOLIO EMISSIONS WITH 2050 PATHWAYS EVERY SECTOR HAS ITS OWN TRANSITION PATH For personal use only COMMERCIAL REAL ESTATE POWER GENERATION 2030 2030 21
Slide 23: Backing Customer Decarbonisation
BACKING CUSTOMER DECARBONISATION ILLUSTRATIVE EXAMPLES OF CUSTOMER PATHWAYS THAT ALIGN WITH OUR PORTFOLIO TARGETS For personal use only COMMERCIAL PROPERTY POWER GENERATION “Property Company Corp.” “Energy Company Corp.” Paris-aligned In 2020: Disclosed Paris-aligned plans and decarbonisation In 202
Slide 24: Engaging Constructively and Transparently with Stakeholders
For personal use only 2021 ESG INVESTOR PACK ENGAGING CONSTRUCTIVELY AND TRANSPARENTLY WITH STAKEHOLDERS
Slide 25: Customer Engagement to Support Emissions Reductions
CUSTOMER ENGAGEMENT TO SUPPORT EMISSIONS REDUCTIONS 100 OF OUR LARGEST EMITTING BUSINESS CUSTOMERS For personal use only • Now engaged with 100 of our largest emitting business customers, supporting them to establish or strengthen transition plans • These customers produced more than 150 million ton
Slide 26: Progress with Our Largest Emitting Business Customers
PROGRESS WITH OUR 100 LARGEST EMITTING BUSINESS CUSTOMERS EXAMPLES OF IMPROVEMENT THROUGH CATEGORIES For personal use only ADVANCED DEVELOPING / INTERMEDIATE UNDERDEVELOPED / STARTING OUT NO PUBLIC PLANS A B C D ENERGY COMPANY DIVERSIFIED INDUSTRIAL COMPANY LARGE COMMODITIES COMPANY • During our eng
Slide 27: Next Steps
For personal use only 2021 ESG INVESTOR PACK NEXT STEPS
Slide 28: Next Steps
NEXT STEPS For personal use only 1) Supporting customers and industries to transition: • To deliver on our Environmental Sustainability Strategy we will invest in building out our existing strengths to capture the opportunities, including in: • Developing new capabilities and products; investing in
Slide 29: Additional Reference Material
For personal use only 2021 ADDITIONAL REFERENCE MATERIAL ROUNDTABLE 26 NOVEMBER 2021 Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522
Slide 30: Making Strong Progress Against Key Indicators
MAKING STRONG PROGRESS AGAINST KEY INDICATORS SNAPSHOT OF OUR ENVIRONMENTAL SUSTAINABILITY PERFORMANCE For personal use only Lower emissions Our sustainable Engaged with 100 of financing target finance participation our largest emitting business customers $21.95b 2020 2021 towards $50b target¹ 88% G
Slide 31: Key Business Area Initiatives
KEY BUSINESS AREA INITIATIVES SUPPORTING OUR CLIMATE AMBITION For personal use only RETAIL SMALL & COMMERCIAL BUSINESSES INSTITUTIONAL • Supporting household practices to • ANZ / Clean Energy Finance • Implementing our Environmental improve environmental sustainability, Corporation Energy Efficiency
Slide 32: Market Leading Position
MARKET LEADING POSITION SUSTAINABLE FINANCE VOLUMES DOUBLED IN FY21 For personal use only Global Sustainable Finance Annual Volume1 ANZ is recognised as ANZ has led a range of a market leader in landmark transactions in FY21 USDbn Australia and NZ 2012–2020 TOP 5 CORPORATE BANK BONDS IN ASIA CAGR ~6
Slide 33: Customer Engagement – Financing Sustainability
CUSTOMER ENGAGEMENT – FINANCING SUSTAINABILITY For personal use only Green, Social, Sustainability and ESG-format bonds Green and Sustainable Infrastructure Sustainability-Linked Loans Project Finance Distribution of capital into green, social, Lending to deploy capital into green, social transition
Slide 34: Customer Engagement – Financing Sustainability
CUSTOMER ENGAGEMENT – FINANCING SUSTAINABILITY For personal use only Corporate Finance Advisory Services for Green Guarantees and Sustainable ANZ/Clean Energy Finance Corporation Renewables Supply Chain Energy Efficiency Asset Finance program Providing advisory services in relation to the Trade faci
Slide 35: Our Resources Portfolio
OUR RESOURCES PORTFOLIO For personal use only RESOURCES PORTFOLIO EXPOSURE AT DEFAULT (EAD) $b THERMAL COAL MINING EXPOSURE EXPOSURE AT DEFAULT (EAD) $b 20.0 2.0 1.7 1.5 0.6 17.3 17.0 1.3 16.2 0.8 0.5 1.0 15.3 0.7 0.8 1.2 1.0 2.9 0.7 0.9 0.4 14.0 14.2 0.5 1.1 0.7 1.5 1.2 0.5 0.8 0.9 0.6 13.0 0.3 0.4
Slide 36: Defining Emissions Intensity per Sector
DEFINING EMISSIONS INTENSITY PER SECTOR OUR TARGETS MEASURE THE CARBON INTENSITY OF OUR SECTOR-SPECIFIC LENDING For personal use only • We have used sector-specific emissions intensity¹ metrics rather than absolute emissions² metrics for the development of our new sectoral targets because we believe
Slide 37: Our Operations
OUR OPERATIONS COMMITTED TO MANAGING OUR SCOPE 1 AND 2 EMISSIONS For personal use only The COVID-19 pandemic saw ~95% of our non-branch staff working from home, significantly reducing resource consumption across our property portfolio and consequently reducing our environmental footprint. GHG emissi
Slide 38: Example Customer Disclosure Towards Low Carbon Future
EXAMPLE CUSTOMER DISCLOSURE TOWARDS LOW CARBON FUTURE COLES – FOOD, GROCERY AND CONVENIENCE RETAILER For personal use only Coles’ ambition is to be “Australia’s most sustainable supermarket” • In March 2021, Coles announced new targets to accelerate climate action and reduce greenhouse gas emissions
Slide 39: Example Customer Disclosure Towards Low Carbon Future
EXAMPLE CUSTOMER DISCLOSURE TOWARDS LOW CARBON FUTURE COLES – FOOD, GROCERY AND CONVENIENCE RETAILER For personal use only Coles’ sustainability strategy Sustainability strategy Initiatives • Coles, in 2019, was the first major Australian retailer to announce a power purchase agreement for renewable
Slide 40: Biodiversity
BIODIVERSITY EXPANDING THE SCOPE OF OUR CUSTOMER ENGAGEMENT TO INCLUDE BIODIVERSITY FOCUS For personal use only • There is a link between climate change and biodiversity loss and we acknowledge the need to protect and restore ecosystems and mitigate biodiversity loss, including working to halt and r
Slide 41: ESG Governance
ESG GOVERNANCE For personal use only BOARD OF DIRECTORS Paul O'Sullivan, Chairman Audit Risk Ethics, Environment, Digital Business Human Nomination and Committee Committee Social and Governance And Technology Resources Board Operations (EESG) Committee Committee Committee Committee Chair: Chair: Cha
Slide 42: Board and Executive Committees Work Together
BOARD AND EXECUTIVE COMMITTEES WORK TOGETHER INDICATIVE RESPONSIBILITIES DEMONSTRATE HOW COMMITTEES MANAGE ESG For personal use only Ethics, Environment, Social and Governance Board Ethics and Responsible Business Management Committee Committee Purpose: oversee measures to advance ANZ’s purpose, foc
Slide 43: Board Ethics, Environment, Social and Governance Committee (EESG)
BOARD ETHICS, ENVIRONMENT, SOCIAL AND GOVERNANCE COMMITTEE (EESG) INDICATIVE AGENDA AND TOPICS COVERED, GENERALLY MEETS FOUR TIMES A YEAR For personal use only Our priority areas How we bank • Housing 33% • Customer vulnerability strategy, including • Financial wellbeing accessibility • Environmenta
Slide 44: Ethics and Responsible Business Management Committee (ERBC)
ETHICS AND RESPONSIBLE BUSINESS MANAGEMENT COMMITTEE (ERBC) INDICATIVE AGENDA AND TOPICS COVERED, GENERALLY MEETS FIVE TIMES A YEAR For personal use only How we bank Our priority areas • Customers experiencing vulnerability • Housing • Product suitability 34% • Financial wellbeing • Accessibility an
Slide 45: Our ESG Related Disclosures
OUR ESG RELATED DISCLOSURES For personal use only ESG Supplement ESG Briefing Climate Change Human Rights Housing Financial Wellbeing ANZ-CoreLogic Housing Our financial Affordability Report, the wellbeing programs, ESG information & Annual event to Update on Climate Our approach to pre-eminent guid
Slide 46: Further Information
FURTHER INFORMATION For personal use only https://www.anz.com/shareholder/centre/ Equity Investors Retail Investors Debt Investors Jill Campbell Cameron Davis Harsh Vardhan Michelle Weerakoon Scott Gifford Group General Manager Executive Manager Senior Manager Manager Head of Debt Investor Relations
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