Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — ESG Presentation (September 2021)
50 slides from Anz's sustainability presentation, Sep 16, 2021
Slide 1: 2021 ESG Investor Briefing: Presentation & Reference Pack
For personal use only 2021 ESG INVESTOR BRIEFING 16 SEPTEMBER 2021 PRESENTATION & 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
CONTENTS 2021 ESG PRESENTATION & ESG REFERENCE PACK For personal use only ESG Presentations 3 CEO Presentation 3 CRO Presentation 13 ESG Reference Pack 20 Overview 20 ESG Priority Areas 26 Sustainability 33 Carbon & Financing Sustainability 40 Human Rights & Modern Slavery 47 2
Slide 3: ESG Investor Briefing - Presentation: Shayne Elliott, CEO
For personal use only 2021 ESG INVESTOR BRIEFING - PRESENTATION SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 4: Our ESG approach supports the execution of our strategy
OUR ESG APPROACH SUPPORTS THE EXECUTION OF OUR STRATEGY For personal use only STRATEGY To improve the financial wellbeing & sustainability of customers By providing relevant, efficient and connected services; tools and insights that engage & retain customers better and in doing so increase the lifet
Slide 5: Driving value
DRIVING VALUE For personal use only Alignment of Driving value Environmental Continuing to Our purpose & ESG, through our sustainability, strengthen our integrated risk with strategy people and both as a risk focus on financial management and outcomes culture and opportunity wellbeing approach 5
Slide 6: Embedding our purpose, ethics & values: Board EESG agenda
EMBEDDING OUR PURPOSE, ETHICS & VALUES For personal use only BOARD EESG1 INDICATIVE AGENDA AND TOPICS COVERED INDICATIVE AGENDA AND TOPICS COVERED (FY21) 8% How we bank (Customer fairness, product suitability, vulnerability, conduct, reconciliation) 6% Governance 33% (Materiality assessment, reporti
Slide 7: Embedding our purpose, ethics & values: Executive ERBC agenda
EMBEDDING OUR PURPOSE, ETHICS & VALUES For personal use only EXECUTIVE ERBC1 INDICATIVE AGENDA AND TOPICS COVERED INDICATIVE AGENDA AND TOPICS COVERED (FY21) How we bank 16% (Product suitability, accessibility, diversity, vulnerability) Governance 34% (Materiality assessment, Social & Environmental,
Slide 8: The bank we're building: purpose-led transformation
THE BANK WE’RE BUILDING PURPOSE-LED TRANSFORMATION WILL DRIVE BETTER OUTCOMES FOR ALL STAKEHOLDERS For personal use only Better access to capital and Better customer propositions talent, driving greater capacity that are ‘purposeful’, engaging, to invest well efficient and ‘safe’ Better financial ou
Slide 9: The bank we're building: giving customers access to
THE BANK WE’RE BUILDING GIVING CUSTOMERS ACCESS TO… For personal use only Propositions Platforms Partnerships People Easy to use services More agile and Integrated, A diverse team, who that improve the more resilient banking data-enabled, listen, learn and adapt to financial wellbeing infrastructure
Slide 10: Our people
OUR PEOPLE For personal use only EMPLOYEE ENGAGEMENT1 WOMEN IN LEADERSHIP1 DIVERSITY & INCLUSION (D&I) Employee engagement score (%) Representation (%) INITIATIVES 86 34.8 81 33.4 • Launched a new D&I strategy in 2021 32.5 77 • ANZ’s 2021-2024 Reconciliation Action 32.0 74 Plan soon to launch 73 31.
Slide 11: Environmental sustainability
ENVIRONMENTAL SUSTAINABILITY For personal use only FUNDED & FACILITATED $14B TOWARDS SUSTAINABLE FINANCE1 55 TRANSACTIONS IN ANZ’S SUSTAINABLE FINANCE BUSINESS FUNDED: $8b # OF DEALS IN FY21 YTD (9 MONTHS: 55 DEALS, $91b) FACILITATED: $6b 7% 18% 25% 13% 36% 8% 13% 62% 22% 74% 22% Environmental (Ener
Slide 12: Financial wellbeing
FINANCIAL WELLBEING For personal use only SAVINGS GOALS MONEYMINDED & SAVER PLUS #000 SET A SAVINGS GOAL (CUMULATIVE)1 Top savings goals2 ESTIMATED NUMBER OF PEOPLE REACHED House: 23% Holiday: 14% Car: 11% 90,724 495 88,308 80,074 429 65,549 61,367 327 184 0 Sep 19 Mar 20 Sep 20 Mar 21 Jul 21 2016 2
Slide 13: ESG Investor Briefing - Presentation: Kevin Corbally, CRO
For personal use only 2021 ESG INVESTOR BRIEFING - PRESENTATION KEVIN CORBALLY CHIEF RISK OFFICER
Slide 14: Approach to risk management
APPROACH TO RISK MANAGEMENT For personal use only RISK CULTURE Right risk Clear roles & Right risk policies behaviours responsibilities & processes KEY RISKS MATERIAL & EVOLVING Capital Liquidity & Cyber Compliance Credit Geopolitical adequacy funding security Culture & Climate Market Operational St
Slide 15: Risk initiatives & developments
RISK INITIATIVES & DEVELOPMENTS For personal use only RISK APPETITE STATEMENT (RAS) RISK APPETITE STATEMENT (RAS) DEVELOPMENTS Conveys: RAS review undertaken in 2020/21 with additional metrics and Key Risk Indicators approved to ensure • The degree of risk that ANZ is prepared to accept Board Risk C
Slide 16: Climate risk
CLIMATE RISK For personal use only PRIORITY AREAS & HOW WE ARE MAKING CHANGE ENGAGING WITH 100 OF OUR LARGEST EMITTING BUSINESS CUSTOMERS ON THEIR TRANSITION PLANS CUSTOMER TRANSITION PLAN STATUS #CUSTOMERS1 Help our customers 90 by encouraging them to identify climate risks and opportunities, creat
Slide 17: Supporting our people
SUPPORTING OUR PEOPLE For personal use only ‘HealthyMe’ Employee Assistance Program ‘How We Work’ digital app (EAP) model • Digital resources dedicated to personal & • Confidential counselling service • Remote first professional wellbeing available to all ANZ employees • Workplace first • Accessible
Slide 18: Security at ANZ
SECURITY AT ANZ For personal use only CYBER SECURITY ANTI MONEY LAUNDERING 12 million Network & Link Malicious emails Analysis capability blocked per month Better detect syndicated Financial Crime crimes Data Hub & Intelligence 24/7 Security Ecosystem Dynamic Algorithms Operations Centre Agile monit
Slide 19: Emerging risks
EMERGING RISKS For personal use only In the area of In the area of In the area of Environmental Sustainability Financial Wellbeing Housing BIODIVERSITY CYBER SCAMMING ECONOMIC DISPARITY 19
Slide 20: ESG Investor Briefing – Reference Pack: Overview
For personal use only 2021 ESG INVESTOR BRIEFING – REFERENCE PACK OVERVIEW
Slide 21: Protecting our customers, our people, our ability to operate through COVID-19
PROTECTING OUR CUSTOMERS, OUR PEOPLE, OUR ABILITY TO OPERATE THROUGH COVID-19 For personal use only OUR OUR BALANCE CUSTOMERS PEOPLE SHEET >200,000 ~90% $50b loans provided with COVID-19 relief of our people working from home increase in customer deposits measures since March 2020 across 32 markets
Slide 22: ESG – Governance overview
ESG – GOVERNANCE OVERVIEW 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:
Slide 23: 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 24: 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 How we bank Our priority areas • Customer vulnerability strategy, including accessibility 33% • Housing • Customer fairness • Financial well
Slide 25: 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 26: ESG Investor Briefing – Reference Pack: ESG Priority Areas
For personal use only 2021 ESG INVESTOR BRIEFING – REFERENCE PACK ESG PRIORITY AREAS
Slide 27: Case study – Financial wellbeing: helping customers to save
CASE STUDY – FINANCIAL WELLBEING HELPING OUR CUSTOMERS TO SAVE, THROUGH INSIGHTS, NUDGES AND GOALS For personal use only Set and track a savings goal through the ANZ app Launching soon: The ‘Your Money Report’ • Active saving and not borrowing for everyday expenses – the greatest • With a central te
Slide 28: Case study – Financial education program helping Pacific workers
CASE STUDY – FINANCIAL WELLBEING FINANCIAL EDUCATION PROGRAM HELPING PACIFIC WORKERS For personal use only ANZ’s MoneyMinded financial education program – designed to help participants build budgeting, saving and money skills – is helping Pacific workers during their mandatory two-week quarantine pe
Slide 29: Case study – Access to housing choice
CASE STUDY – ACCESS TO HOUSING CHOICE DELIVERING MORE HOUSING OPTIONS FOR AUSTRALIANS For personal use only Specialist Disability Accommodation Land Lease Communities An affordable housing option for the over 50’s market; an alternative to It is estimated there is an immediate need for at least 10,0
Slide 30: Case study – ANZ's $50 billion sustainable finance target
CASE STUDY – ENVIRONMENTAL SUSTAINABILITY ANZ’S $50 BILLION SUSTAINABLE FINANCE TARGET For personal use only Helping improve the environmental sustainability of our customers • Target to fund and facilitate at least $50 billion by 2025 towards sustainable solutions for our customers • Since October
Slide 31: Case study – Growth in sustainable finance
CASE STUDY – ENVIRONMENTAL SUSTAINABILITY GROWTH IN SUSTAINABLE FINANCE For personal use only Spotlight on ANZ’s Sustainable Finance business1 Highlight Deal During the first three quarters of FY21, ANZ’s sustainable finance team Royal Adelaide Hospital $2.2b Sustainability (Green & Social) Loan com
Slide 32: Case study – Developing a new customer vulnerability strategy
CASE STUDY – FAIR AND RESPONSIBLE BANKING DEVELOPING AND IMPLEMENTING A NEW CUSTOMER VULNERABILITY STRATEGY For personal use only Using Data analytics to help prevent harm In late 2020, ANZ announced a new target to: “Develop and commence implementation of a new Vulnerable Customer Framework to impr
Slide 33: ESG Investor Briefing – Reference Pack: Sustainability
For personal use only 2021 ESG INVESTOR BRIEFING – REFERENCE PACK SUSTAINABILITY
Slide 34: Our ESG targets
OUR ESG TARGETS SUPPORT 10 OF THE 17 UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS For personal use only ESG target Relevant SDGs ENVIRONMENTAL SUSTAINABILITY 1. Fund and facilitate at least $50 billion by 2025 towards sustainable solutions for our customers 2. Encourage and support 100 of our larges
Slide 35: Progress on our ESG targets
PROGRESS ON OUR ESG TARGETS SNAPSHOT OF HALF YEAR ESG TARGET PERFORMANCE For personal use only ESG target (refer prior slide for further detail) Progress Relevant SDGs ENVIRONMENTAL SUSTAINABILITY 1. Sustainable solutions for our customers ($50 billion by 2025) Funded and facilitated AU$13.95 billio
Slide 36: Diversity and inclusion (D&I) at ANZ
DIVERSITY AND INCLUSION (D&I) AT ANZ For personal use only Our vision is for the combined power of our diverse workforce and inclusive culture to improve decision making and drive innovation, resulting in financial outperformance Commitments and Achievements: Women in Leadership¹ People with disabil
Slide 37: How we measure and communicate: external report card
HOW WE MEASURE AND COMMUNICATE EXTERNAL REPORT CARD – REPUTATION INDICATORS For personal use only 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. We are rated based on
Slide 38: Sustainability performance trends
SUSTAINABILITY PERFORMANCE TRENDS FULL YEAR 2020 DISCLOSURE For personal use only COMMUNITY INVESTMENT1 MONEYMINDED & SAVER PLUS SUSTAINABLE FINANCE $50B TARGET³ Total community investment ($m) Estimated # of people reached Funded and facilitated ($b) 142 140 88,308 90,724 9.08 131 137 80,074 7.6 0.
Slide 39: External reporting
EXTERNAL REPORTING For personal use only RECOGNITION We achieved a CDP Member of the Recognised as a leading Ranked amongst the Top Named as the Best Place to climate disclosure score FTSE4Good Index organisation in the 10 Best Workplaces to Work in Banking and Financial of A- in 2020 2020-21 Access
Slide 40: ESG Investor Briefing – Reference Pack: Carbon & Financing Sustainability
For personal use only 2021 ESG INVESTOR BRIEFING – REFERENCE PACK CARBON & FINANCING SUSTAINABILITY
Slide 41: Our approach to climate change
OUR APPROACH TO CLIMATE CHANGE COMMITTED TO PLAYING OUR PART & SUPPORTING OUR CUSTOMERS IN THE TRANSITION TO NET-ZERO EMISSIONS BY 2050 For personal use only • Funding and facilitating at least $50 billion by 2025 to help our customers improve Help our customers environmental sustainability, increas
Slide 42: Example customer disclosure towards low carbon future: Coles
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 released its latest Climate Change Position Statement and announced new targets to red
Slide 43: Example customer disclosure: Coles sustainability strategy
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 44: Customer engagement – Financing sustainability: loans, project finance, bonds
CUSTOMER ENGAGEMENT – FINANCING SUSTAINABILITY For personal use only Green and Sustainability-Linked Loans Green and Sustainable Infrastructure Green and Sustainability-Linked Bonds Project Finance Lending to deploy capital into ‘green’ and Distribution of capital into ‘green’ and sustainability ini
Slide 45: Customer engagement – Financing sustainability: advisory and energy efficiency
CUSTOMER ENGAGEMENT – FINANCING SUSTAINABILITY For personal use only Corporate Finance Advisory Services ANZ/Clean Energy Finance Corporation for Renewables Energy Efficiency Asset Finance program Providing advisory services in relation to Financing that incentivises corporate and the purchase, sale
Slide 46: Our resources portfolio
OUR RESOURCES PORTFOLIO For personal use only RESOURCES PORTFOLIO THERMAL COAL EXPOSURE EXPOSURE AT DEFAULT (EAD) $b 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 0.3 0.0 1.7 1.0 1.2
Slide 47: ESG Investor Briefing – Reference Pack: Human Rights & Modern Slavery
For personal use only 2021 ESG INVESTOR BRIEFING – REFERENCE PACK HUMAN RIGHTS & MODERN SLAVERY
Slide 48: Improving our approach to human rights
IMPROVING OUR APPROACH TO HUMAN RIGHTS ACTING ON THE AUSTRALIAN NATIONAL CONTACT POINT (ANCP) FOLLOW UP STATEMENT, WITH A PROGRAM OF WORK TO IMPROVE OUR POLICY, PROCESS AND DISCLOSURE For personal use only • In February 2020, ANZ, Inclusive Development International (IDI) and Equitable Cambodia (EC)
Slide 49: Our response to the Australian Modern Slavery Act
OUR RESPONSE TO THE AUSTRALIAN MODERN SLAVERY ACT OUR FIRST STATEMENT RESPONDING TO THE AUSTRALIAN MODERN SLAVERY ACT’S MANDATORY CRITERIA, DESCRIBING HOW WE IDENTIFY AND ACT ON KEY MODERN SLAVERY RISKS IN OUR OPERATIONS AND SUPPLY CHAIN, WAS SUBMITTED IN 2020 For personal use only We remain focusse
Slide 50: Further information
FURTHER INFORMATION For personal use only ANZ Shareholder Centre Corporate Overview & Sustainability Climate Related Financial disclosures Annual Review Our Key sections ANZ ESG information approach from our shareholder and progress to climate 2020 Annual information against our ESG change Report ta
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