Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — ESG Presentation (September 2022)
54 slides from Anz's sustainability presentation, Sep 12, 2022
Slide 1: 2022 ESG Investor Briefing
For personal use only 2022 ESG INVESTOR BRIEFING 12 SEPTEMBER 2022 INVESTOR PRESENTATION AND REFERENCE PACK 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: Contents
2022 ESG INVESTOR DISCU CONTENTS ESG PRESENTATION Shayne Elliott, Chief Executive Officer Maile Carnegie, Group Executive, Australia Retail Mark Whelan, Group Executive, Institutional ESG REFERENCE PACK Environment Social Governance
Slide 3: Disclaimer & Important Notice
2022 ESG INVESTOR DISCUSSION PACK DISCLAIMER & IMPORTANT NOTICE The material in this presentation is general background information about ANZ's activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be
Slide 4: Chief Executive Officer
ersonal use only p SS FO 2022 ESG INVESTOR BRIEFING wn = > x z m m r 5 fe) 4 + CHIEF EXECUTIVE OFFICER
Slide 5: Overview
For personal use only 2022 ESG INVESTOR DISCUSSION PACK OVERVIEW Approach to Purpose, Strategy & ESG and how we're driving value Current macro- economic environment uncertainty Customer perspective & assistance through uncertain times Environmental Sustainability strategy & supporting customers’ tra
Slide 6: Purpose & Strategy: Our ESG approach supports execution of our strategy
For personal use only 2022 ESG INVESTOR DISCUSSION PACK PURPOSE & STRATEGY OUR ESG APPROACH SUPPORTS THE EXECUTION OF OUR STRATEGY To improve the financial wellbeing & sustainability of our customers We will do this by providing excellent services, tools and insights that engage and retain customers
Slide 7: Board & Executive Committees
2022 ESG INVESTOR DISCUSSION PACK BOARD & EXECUTIVE COMMITTEES BOARD ETHICS, ENVIRONMENT, SOCIAL AND GOVERNANCE COMMITTEE (EESG)! 32% Governance 15% Who We Bank Purpose: oversee measures to advance ANZ’'s purpose, focusing on ethical, 14% environmental, social and How We Measure governance matters &
Slide 8: The Bank We're Building
2022 ESG INVESTOR DISCUSSION PACK THE BANK WE’RE BUILDING ‘We are the Bank for those in Australia & New Zealand who want to buy and own a home or start, run, and grow a small business and for those larger businesses trading and investing in Asia Pacific’ ‘We work with the best partners to offer comp
Slide 9: Our People
SS. — i ) @) i) 2022 ESG INVESTOR DISCUSSION PACK OUR PEOPLE " EMPLOYEE ENGAGEMENT! WOMEN IN LEADERSHIP? DIVERSITY & INCLUSION Employee engagement score (%) Representation (%) Initiatives 86 35.3 35.4 84 Achieved Family Inclusive Workplace 81 certification 77 74 2 73 Launched Reconciliation Action P
Slide 10: Purpose, strategy and priorities, ESG focus areas
For personal use only Purpose / Ambition Strategy & priorities How we’ll achieve our strategy People & culture ESG focus areas
Slide 11: Group Executive, Australia Retail
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Slide 12: The Bank We're Building in Australia Retail
2022 ESG INVESTOR DISCUSSION PACK The Bank We're Building in Australia Retail Our PURPOSE To shape a world where people and communities thrive WIMDACT proving finan wellbeing of our customers For our TARGET CUSTOMERS... Home owners and people who are serious about one day owning a home we aim to DEL
Slide 13: Australia Housing Portfolio
2022 ESG INVESTOR DISCUSSION PACK AUSTRALIA HOUSING PORTFOLIO e HOME LOANS REPAYMENT PROFILE!2: 3 HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE! Overdue >2 years ahead * Structural, restrict repayments in advance (eg fixed rate loans) New accounts (<6 months) Ontimeand<1 ==> month ahead March 2022 40%
Slide 14: Australia & New Zealand Consumer Portfolio
2022 ESG INVESTOR DISCUSSION PACK AUSTRALIA & NEW ZEALAND CONSUMER PORTFOLIO 90+ DPD AS A % OF TOTAL PORTFOLIO BALANCES! 14 1.2 1.0 0.8 0.6 04 0.2 0.0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Jun 17 17 18 18 19 19 20 20 21 21 22 — Australia Home Loans — Australia Consumer Cards —- NZ Home Loans I
Slide 15: Data Analytics Supporting Proactive Customer Engagement
For personal use only 2022 ESG INVESTOR DISCUSSION PACK DATA ANALYTICS SUPPORTING PROACTIVE CUSTOMER ENGAGEMENT A NEW PLATFORM USING DYNAMIC CUSTOMER DATA AUTOMATED PRO-ACTIVE CONTACT STRATEGIES ff = Savings Credit Offset accounts accounts accounts y + + (===) Analyses customer transaction accounts
Slide 16: Financial Wellbeing Principles
For personal use only 2022 ESG INVESTOR DISCUSSION PACK FINANCIAL WELLBEING PRINCIPLES Guiding the way we are transforming the bank and developing services Spend less than you earn Build towards your retirement Soa your most expensive debt first 7 ~ — Save regularly towards your goals Vv > Borrow é
Slide 17: Group Executive, Institutional
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Slide 18: The Opportunity: Environmental Sustainability Strategy
2022 ESG INVESTOR DISCUSSION PACK The opportunity The pathway to net zero emissions presents significant financing opportunities, which we'll realise together with our customers Our environmental sustainability strategy Support our customers in shifting to low carbon business models and operations t
Slide 19: Examples of Our Strategy Coming to Life
2022 ESG INVESTOR DISCUSSION PACK EXAMPLES! OF OUR STRATEGY COMING TO LIFE GREEN LOANS Lending to deploy capital into green initiatives, where borrowers are required to invest in qualifying green assets or where loan terms are linked to improved performance against agreed sustainability targets f IN
Slide 20: Aligning Our Lending to the Paris Agreement Goals
2022 ESG INVESTOR DISCUSSION PACK (.) ALIGNING OUR LENDING TO THE PARIS AGREEMENT GOALS e — First Australian bank to sign up to the Net Zero Banking Alliance (NZBA) ¢ Ontrack to set 2030 targets for nine priority sectors by 2024 e In 2021, set emissions intensity pathways and targets for power gener
Slide 21: Customer Engagement Program of Our Largest Emitters by Sector
2022 ESG INVESTOR DISCUSSION PACK () Ve CUSTOMER ENGAGEMENT PROGRAM 100 OF OUR LARGEST EMITTERS BY SECTOR EXPANDING THE SCOPE OF OUR CUSTOMER Electricity Gas & Water Supply ENGAGEMENT TO INCLUDE BIODIVERSITY FOCUS Resources (Mining) * Biodiversity risk is recognised across our sensitive sector lendi
Slide 22: Reference Pack
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Slide 23: Our ESG Related Disclosures
2022 ESG INVESTOR DISCUSSION PACK OUR ESG RELATED DISCLOSURES Our Environmental, Social and Governance (ESG) approach Focusareas ea Final wating Fairand responsible banking — https.//www.anz.comau/about-us/esg-priorities/fair = ‘esponsible-banking/humantights/ ESG Supplement ESG information & progre
Slide 24: ESG at a Glance
2022 ESG INVESTOR DISCUSSION PACK ESG AT A GLANCE! ENVIRONMENT SUSTAINABLE FUNDING & FACILIATION? SOCIAL EMPLOYEE ENGAGEMENT $31b of our targeted $50b commitment by 2025 RENEWABLE ENERGY 36% of our operations were powered by renewable electricity in 2021 (against our target of 100% by 2025) 84% Enga
Slide 25: Snapshot of 2022 Half Year ESG Target Performance
2022 ESG INVESTOR DISCUSSION PACK SNAPSHOT OF 2022 HALF YEAR ESG TARGET PERFORMANCE ESG target ENVIRONMENTAL SUSTAINABILITY Fund and facilitate at least AU$50 billion by 2025 towards sustainable solutions for our customers, including initiatives that help improve environmental sustainability, suppor
Slide 26: ESG Performance Trends
2022 ESG INVESTOR DISCUSSION PACK ESG PERFORMANCE TRENDS COMMUNITY INVESTMENT! MONEYMINDED & SAVER PLUS Total community investment ($m) Estimated # of people reached 131.0 136.9 142.2 139.5 139.7 80074 88,308 90,724 = 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 @ — (©) EMPLOYEE ENGAGEMENT? ENV
Slide 27: How We Measure and Communicate: External Report Card
2022 ESG INVESTOR DISCUSSION PACK HOW WE MEASURE AND COMMUNICATE EXTERNAL REPORT CARD - REPUTATION INDICATORS CONTEXT * Reputation indicators are increasingly being used by investors and analysts to understand our approach to ESG issues and to measure our ESG performance against our peers. + Weare r
Slide 28: Environment
For personal use only 2022 ESG INVESTOR BRIEFING 12 SEPTEMBER 2022 ENVIRONMENT
Slide 29: A Global Transformation Is Required
2022 ESG INVESTOR DISCUSSION PACK A GLOBAL TRANSFORMATION IS REQUIRED TRANSITION TO NET ZERO REQUIRES ~$125 TRILLION’ IN INVESTMENT, WITH >50% REQUIRED ACROSS ASIA-PACIFIC REGION Critical minerals sector? Transitioning energy from high to low carbon Electrification of transport Food, beverage and co
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Slide 32: Customer transition plans by maturity level
For personal use only • • • • • • • % based on Exposure at Default Customer transition plans in 2021 were grouped into levels of maturity Manufacturing2 ADVANCED Resources (Mining)3 ~25% ~30% DEVELOPING/INTERMEDIATE Electricity Gas & Water Supply UNDERDEVELOPED/STARTING OUT Transport and Storage ~10
Slide 33: Transition plan maturity assessment examples
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 • • • • ✓ • ✓ • ✓ • ✓ • ✓ • ✓ • ✓ • ✓ • ✓ • • • • • • • • • • • • • • • • • ✓ ✓
Slide 34: ANZ's $50 Billion Sustainable Finance Target
2022 ESG INVESTOR DISCUSSION PACK ANZ’S $50 BILLION SUSTAINABLE FINANCE TARGET HELPING IMPROVE THE ENVIRONMENTAL SUSTAINABILITY OF CUSTOMERS Target to fund and facilitate at least A$50 billion by 2025 towards helping our customers improve environmental sustainability, increase access to affordable h
Slide 35: Sustainable Bond League Tables
2022 ESG INVESTOR DISCUSSION PACK SUSTAINABILITY SUSTAINABLE BOND LEAGUE TABLES! Australian Sustainable Bond Cumulative League Table Bookrunner (Ranking on Market share) Volume No.of deals Market share ANZ (#1) $9.9b 43 16.1% Closest peer (#2) $6.1b 40 10.0% New Zealand Sustainable Bond Cumulative L
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Slide 38: ANZ Resources Portfolio
2022 ESG INVESTOR DISCUSSION PACK ANZ RESOURCES PORTFOLIO RESOURCES PORTFOLIO (EAD! $b) Sep 15 Sep 16 Sep 17 Hl Thermal Coal Mining [1] Metallurgical Coal Mining Ill Other Mining 1. Exposure at Default Sep 18 Sep 19 Sep 20 Services to Mining Il Metal Ore Mining Il Oil & Gas Extraction Sep 21 Mar 22
Slide 39: Biodiversity
2022 ESG INVESTOR DISCUSSION PACK BIODIVERSITY EXPANDING THE SCOPE OF OUR CUSTOMER ENGAGEMENT TO INCLUDE BIODIVERSITY FOCUS * Biodiversity risk is recognised across our sensitive sector lending policies * Upgraded biodiversity focus acknowledged in our Climate Change Commitment * Customer engagement
Slide 40: Social
For personal use only 2022 ESG INVESTOR BRIEFING 12 SEPTEMBER 2022 SOCIAL
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For personal use only • • • • • • • 1. https://www.anz.com.au/about-us/esg/financial-wellbeing/
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Slide 45: Financial Wellbeing - ANZ Plus
2022 ESG INVESTOR DISCUSSION PACK () FINANCIAL WELLBEING - ANZ PLUS " ANZ PLUS: DIGITAL FIRST A PLUS FOR FINANCIAL WELLBEING Financial wellbeing is the guiding principle for ANZ Plus MORE VISIBILITY SET MULTIPLE IN-APP SUPPORT —_ FINANCIAL WELLBEING COACH APPOINTMENTS. AND CONTROL SAVINGS GOALS Prov
Slide 46: Access to Housing Choice
2022 ESG INVESTOR DISCUSSION PACK ACCESS TO HOUSING CHOICE DELIVERING MORE HOUSING OPTIONS FOR AUSTRALIANS ANZ’s 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 continue to invest in customers and projec
Slide 47: Vision: diverse workforce and inclusive culture
VISION IS FOR THE COMBINED POWER OF OUR DIVERSE WORKFORCE AND INCLUSIVE CULTURE TO IMPROVE DECISION MAKING For personal use only AND DRIVE INNOVATION, RESULTING IN FINANCIAL OUTPERFORMANCE • • • • • • • •
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Slide 49: Governance
For personal use only 2022 ESG INVESTOR BRIEFING 12 SEPTEMBER 2022 GOVERNANCE
Slide 50: ESG Governance Overview
2022 ESG INVESTOR DISCUSSION PACK ESG GOVERNANCE OVERVIEW OF DIRECTORS airman AUDIT RISK COMMITTEE COMMITTEE Chair: Christine O'Reilly Chair: Graeme Liebelt ETHICS, ENVIRONMENT, DIGITAL BUSINESS. SOCIAL AND GOVERNANCE AND TECHNOLOGY (EESG) COMMITTEE COMMITTEE Chair: Paul O'Sullivan Chair: Jane Halto
Slide 51: Board and Executive Committees at Work Together
2022 ESG INVESTOR DISCUSSION PACK BOARD AND EXECUTIVE COMMITTEES AT WORK TOGETHER INDICATIVE RESPONSIBILITIES DEMONSTRATE HOW COMMITTEES MANAGE ESG Ethics, Environment, Social and Governance Board Committee Purpose: oversee measures to advance ANZ’'s purpose, focusing on ethical, environmental, soci
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Slide 54: Further Information
2022 ESG INVESTOR DISCUSSION PACK FURTHER INFORMATION Logonte ESG Briefing Computershare Monday, 12th September 2022 at 4:00 pro cktinks ‘About ANZ Corporate governance ‘our Purpose and stiategy Calendarand events Investor toolkit Latest reports Francalealendar shar pice datas Annual Report Reviews
Australia and New Zealand Banking Group — ESG Presentation (September 2022) on 6ix