Anz Group Holdings Limited · ASX:ANZ
Anz — Australia and New Zealand Banking Group — ESG Presentation (September 2020)
51 slides from Anz's sustainability presentation, Sep 7, 2020
Slide 1: ESG Presentation & ESG Reference Pack
2020 ESG PRESENTATION & ESG REFERENCE PACK — 7 SEPTEMBER, 2020 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 2020 ESG PRESENTATION & ESG REFERENCE PACK ESG Presentations 2 CEO Presentation 2 Group Executive Australia Retail & Commercial Presentation 10 ESG Reference Pack 14 Case studies 16 Governance 23 Sustainability 28 Remediation 33 Royal Commission & APRA Self-assessment 35 Carbon 37 Human Rig
Slide 3: ESG Presentation – Shayne Elliott, CEO
2020 ESG PRESENTATION SHAYNE ELLIOTT CHIEF EXECUTIVE OFFICER
Slide 4: Our Purpose
OUR PURPOSE OUR PRIORITIES 1 Suitable and affordable housing 2 Environmental sustainability 3 Financial wellbeing Fundamental to our approach is a commitment to fair and responsible banking 3
Slide 5: ESG Target Performance
ESG TARGET PERFORMANCE SCORECARD SNAPSHOT (March 2020) March 2020 Progress vs target FAIR & RESPONSIBLE BANKING Improve reputation and community trust1 1st of peers On track ENVIRONMENTAL SUSTAINABILITY Fund and facilitate at least $50b by 2025 in sustainable solutions $4.1b On track Reduce scope 1
Slide 6: Our Approach
OUR APPROACH PROTECT ADAPT ENGAGE PREPARE … our people, … to the … even more … for the future our customers & changing proactively with our shareholders environment stakeholders Our approach has guided a ‘statement of intent’ reflecting our commitment to supporting our customers A summary of ANZ’s ‘
Slide 7: Protecting our customers, our people, our ability to operate
PROTECTING OUR CUSTOMERS, OUR PEOPLE, OUR ABILITY TO OPERATE OUR OUR BALANCE CUSTOMERS PEOPLE SHEET ~200,000 ~90% $44b loans provided with COVID-19 relief of our people working from home increase in customer deposits measures across 32 markets (Sep 19 to Jun 20) ~$7b 85% $1.3b lending1 to Institutio
Slide 8: Reviewing our response to the pandemic through an ESG lens
REVIEWING OUR RESPONSE TO THE PANDEMIC THROUGH AN ESG LENS Ethics, Environment, Social and Governance Ethics and Responsible Business Board committee Management committee Oversees measures to advance ANZ’s purpose, Operationalises objectives and makes decisions on focusing on EES&G matters issues an
Slide 9: Stakeholder Engagement
STAKEHOLDER ENGAGEMENT Customers Government & Regulators Employees Non-Government Organisations (NGOs) Industry Shareholders Associations 8
Slide 10: Group Objectives
GROUP OBJECTIVES Improve the financial wellbeing and experience of our customers Maintain risk discipline focused on good customer and regulatory outcomes Build a diverse and adaptable team who listen and learn Run core businesses well and deliver sustainable operational improvements 9
Slide 11: ESG Presentation – Mark Hand
2020 ESG PRESENTATION MARK HAND GROUP EXECUTIVE AUSTRALIA RETAIL & COMMERCIAL
Slide 12: Supporting our Customers
SUPPORTING OUR CUSTOMERS RETAIL COMMERCIAL Home loans with deferred repayments ~22,000 business loans with deferred repayments (% of Home loan portfolio, July 2020) (Australia, deferrals by industry by % of EAD July 2020) Commercial Property 9% & Construction Other Industries 19% 26% Agriculture, 6%
Slide 13: Supporting our People
SUPPORTING OUR PEOPLE Staff support to work from home Culture and employee wellbeing initiatives • ‘HealthyMe’ digital app • Employee Assistance Program Transition plans to the ‘future of work’ 12
Slide 14: Protecting our Stakeholders
PROTECTING OUR STAKEHOLDERS www.anz.com.au/security/protect-your-virtual-valuables/ 13
Slide 15: ESG Reference Pack
2020 ESG PRESENTATION & ESG REFERENCE PACK — ESG REFERENCE PACK
Slide 16: Our Purpose
OUR PURPOSE ONE OF THE WAYS WE ARE BRINGING OUR PURPOSE TO LIFE IS THROUGH HELPING TO ACT ON COMPLEX ISSUES THAT MATTER TO SOCIETY AND ARE CORE TO OUR BUSINESS STRATEGY. A COMMITMENT TO FAIR AND RESPONSIBLE BANKING UNDERPINS OUR APPROACH. CHOICES ABOUT WHO WE SERVE CHOICES ABOUT HOW WE OPERATE • WHO
Slide 17: Case Study – Financial Wellbeing
CASE STUDY – FINANCIAL WELLBEING HELPING OUR CUSTOMERS TO SAVE, THROUGH INSIGHTS, NUDGES AND GOALS 1 SET AND TRACK A SAVINGS GOALS THROUGH THE ANZ APP • ANZ’s Adult Financial Wellbeing Survey found active saving and not borrowing for everyday expenses, to be the greatest behavioural drivers of finan
Slide 18: Case Study – Social & Affordable Housing
CASE STUDY – SOCIAL & AFFORDABLE HOUSING: A NEW FIXED INCOME ASSET CLASS 2 SOCIAL & AFFORDABLE HOUSING HOUSING NEW ZEALAND, A SUBSIDIARY OF KĀINGA ORA HOMES & COMMUNITIES • Two transactions in April 2020 – NZD1Billion Dual Tranche Wellbeing Bond (5.1yr/10yr), April 2020 – NZD300m Inflation-Linked We
Slide 19: Case Study – Environmental Sustainability
CASE STUDY – ENVIRONMENTAL SUSTAINABILITY SUSTAINABLE FINANCE INITIATIVES 3 ANZ’S 2025 $50B SUSTAINABLE FINANCE TARGET $50B TARGET RESULTS - 1H VOLUME Half Year Progress BY SUSTAINABLE DEVELOPMENT GOAL • Target to fund and facilitate at least $50 billion by 2025 towards sustainable solutions for our
Slide 20: Case Study – Fair and Responsible Banking
CASE STUDY – FAIR AND RESPONSIBLE BANKING HELPING CUSTOMERS TO GET ON TOP OF PERSISTENT CREDIT CARD DEBT 4 CONTACTING CONSUMER CREDIT CARD CUSTOMERS WHO ARE CARRYING PERSISTENT DEBT AND PAYING LITTLE OFF TO GET THEM ON TO LOWER RATE CARDS AND ASSIST THEM TO PAY THEIR DEBT FASTER ANZ announced sixtee
Slide 21: Creating Value for our Stakeholders – March 2020
CREATING VALUE FOR OUR STAKEHOLDERS – 31 MARCH 2020 CUSTOMERS EMPLOYEES COMMUNITY SHAREHOLDERS5 ~8.7m total retail, commercial ~39,000 people employed $142m contributed in community >500,000 Retail & Institutional and Institutional customers (FTE) investment in FY193 shareholders $304b in retail & c
Slide 22: New COVID-19 Customer Support: Statement of Intent
NEW COVID-19 CUSTOMER SUPPORT: STATEMENT OF INTENT We are committed to supporting our customers through the COVID-19 pandemic, and the recovery period that will follow, in finding a solution that is respectful, fair and appropriate for them. Our approach is guided by four principles, each with its o
Slide 23: Community Support during COVID-19
COMMUNITY SUPPORT DURING COVID-19 Since March 2020, we have directed around $12 million to our community partners who are assisting those most disadvantaged in our communities. We are also delivering our financial literacy programs remotely so participants can continue learning key financial skills.
Slide 24: Governance
2020 ESG PRESENTATION & ESG REFERENCE PACK — GOVERNANCE
Slide 25: ESG – Governance Overview
ESG – GOVERNANCE OVERVIEW BOARD OF DIRECTORS David Gonski, Chairman Audit Committee Risk Committee Ethics, Environment, Digital Business Human Resources Nomination and Social and Technology Committee Board Operations and Governance Committee Committee Committee Chair: Chair: Chair: Chair: Chair: Cha
Slide 26: Board and Executive Committees Work Together
BOARD AND EXECUTIVE COMMITTEES WORK TOGETHER INDICATIVE RESPONSIBILITIES DEMONSTRATE HOW COMMITTEES MANAGE ESG Ethics, Environment, Social and Governance Ethics and Responsible Business Board committee Management committee Purpose: oversee measures to advance ANZ’s Purpose: Operationalise Board obje
Slide 27: Board Ethics, Environment, Social and Governance Committee
BOARD ETHICS, ENVIRONMENT, SOCIAL AND GOVERNANCE COMMITTEE (EESG) INDICATIVE AGENDA AND TOPICS COVERED, GENERALLY MEETS FOUR TIMES A YEAR How we measure and communicate • ESG reporting and targets • ESG external assurance Governance • Climate risk analysis 13% • Governance and regulatory updates • E
Slide 28: Ethics and Responsible Business Management Committee
ETHICS AND RESPONSIBLE BUSINESS MANAGEMENT COMMITTEE (ERBC) INDICATIVE AGENDA AND TOPICS COVERED, GENERALLY MEETS FIVE TIMES A YEAR Governance • Materiality Assessment • Social and Environmental Risk policy • Governance framework for external Who we bank ESG commitments 12% 43% • Industry sector rev
Slide 29: Sustainability
2020 ESG PRESENTATION & ESG REFERENCE PACK — SUSTAINABILITY
Slide 30: ESG Target Performance
ESG TARGET PERFORMANCE SCORECARD SNAPSHOT We are committed to the United Nations Sustainable Development Goals (SDGs). Our ESG targets support 11 of the 17 SDGs. FAIR AND RESPONSIBLE BANKING March 2020 Relevant SDGs 58 (1st) Improve reputation and community trust RepTrak® community sentiment indicat
Slide 31: How We Measure and Communicate
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. We are rated based on our ESG disclosures, a
Slide 32: Sustainability Performance Trends
SUSTAINABILITY PERFORMANCE TRENDS COMMUNITY INVESTMENT1 MONEYMINDED & SAVER PLUS ENVIRONMENTAL FINANCING $15B TARGET Total community investment ($m) Estimated # of people reached Funded and facilitated ($b) 131 137 142 88,308 90,927 19.1 80,074 69,826 11.5 90 65,549 75 6.9 2.5 2015 2016 2017 2018 20
Slide 33: External Reporting
EXTERNAL REPORTING RECOGNITION We achieved a CDP Member of the Ranked amongst the top AWEI Platinum Status Ranked amongst the Top climate disclosure score FTSE4Good Index 100 companies for LGBTI Employer of 10 Best Workplaces to of A- in 2019 gender equality globally Choice in 2019 Give Back in Aust
Slide 34: Remediation
2020 ESG PRESENTATION & ESG REFERENCE PACK — REMEDIATION
Slide 35: Customer Remediation
CUSTOMER REMEDIATION CUSTOMER REMEDIATION CUMULATIVE CUSTOMER REMEDIATION CONTINUING OPERATIONS CONTINUING & DISCONTINUED OPERATIONS 485 1,832 PRE TAX $m PRE TAX $m 1,579 546 119 422 928 753 352 256 181 1,157 1,286 29 220 51 153 572 672 86 1H17 2H17 1H18 2H18 1H19 2H19 1H20 1,401 POST TAX $m 1,216 4
Slide 36: Royal Commission & APRA Self-Assessment
2020 ESG PRESENTATION & ESG REFERENCE PACK — ROYAL COMMISSION & APRA SELF-ASSESSMENT
Slide 37: Royal Commission & APRA Self-Assessment
ROYAL COMMISSION & APRA SELF-ASSESSMENT OUR APPROACH, OUR RESPONSE WE ARE TAKING ACTION TO THE ‘SPIRIT AND THE LETTER’ OF THE ROYAL COMMISSION Governance – aligned response to the Royal Commission and ANZ Actions - Progress on our 16 commitments the APRA Self-Assessment 11 • Our Royal Commission & A
Slide 38: Carbon
2020 ESG PRESENTATION & ESG REFERENCE PACK — CARBON
Slide 39: Our Approach to Climate Change
OUR APPROACH TO CLIMATE CHANGE We support an economy-wide shift : we support and encourage key industries to identify their risks and plan for the transition, while simultaneously helping industries that are able to create new job opportunities for their workforces HELP SUPPORT OUR EMERGING REDUCE C
Slide 40: ANZ Carbon Commitments and Disclosure
ANZ CARBON COMMITMENTS AND DISCLOSURE – FY19/20 HIGHLIGHTS HOW ANZ’S LENDING IS SUPPORTING THE PARIS GOALS Thermal Coal Mining Exposures: Oil & Gas Extraction Exposures: • Since 2015 (when the Paris Agreement was reached), we • Since 2015, our exposures to oil and gas extraction companies have more
Slide 41: ANZ Carbon Commitments and Disclosure
ANZ CARBON COMMITMENTS AND DISCLOSURE – FY19/20 HIGHLIGHTS HOW ANZ’S LENDING IS SUPPORTING THE PARIS GOALS Renewable Energy Exposures: Project Finance Power Generation Portfolio (Sept’ 19) • Since 2015, we have significantly expanded our lending support to the renewable energy sector. 9% • In our pr
Slide 42: ANZ Carbon Commitments and Disclosure
ANZ CARBON COMMITMENTS AND DISCLOSURE – FY19/20 HIGHLIGHTS FUTURE FOCUS AREAS & ACTIONS AROUND CLIMATE CHANGE TCFD Theme Focus Areas 2020/21 Beyond 2020 Vision Governance • Align with regulatory guidance on climate-related risk governance, • An enhanced risk management framework that is including st
Slide 43: Resources Portfolio
RESOURCES PORTFOLIO RESOURCES EXPOSURE AT DEFAULT (EAD) BY SECTOR THERMAL COAL EXPOSURE (EAD) $b $b 20.0 1.8 1.7 18.9 0.6 0.6 17.3 0.8 1.6 1.3 16.1 0.8 1.0 15.3 0.7 1.2 1.0 1.6 1.4 2.9 0.4 14.0 0.7 1.1 0.7 1.5 0.8 0.9 1.2 0.3 1.7 1.0 1.2 6.4 4.9 1.4 1.0 5.2 4.0 4.4 3.5 0.8 0.6 8.6 8.5 0.4 7.8 7.4 8.
Slide 44: Implementation of Customer Transition Plan Target
IMPLEMENTATION OF CUSTOMER TRANSITION PLAN TARGET Background • Our climate change policy, includes a commitment to “encourage and support 100 of our largest emitting customers in the energy, transport, buildings and food, beverage and agricultural sectors to establish or strengthen their low carbon
Slide 45: Example Customer Disclosure Towards Low Carbon Future
EXAMPLE CUSTOMER DISCLOSURE TOWARDS LOW CARBON FUTURE TRANSURBAN – TOLL ROAD OPERATOR Transurban’s Climate Change Framework aims to support its transition to a net-zero emissions future as well as ensuring the resilience of its infrastructure and operations. To support its transition to a net-zero e
Slide 46: Example Customer Disclosure Towards Low Carbon Future
EXAMPLE CUSTOMER DISCLOSURE TOWARDS LOW CARBON FUTURE SYNLAIT – MILK NUTRITION COMPANY Synlait’s aim is to have a net-positive impact on the planet and re-imagine all aspects of its business for a low emissions future. To meet this aim, Synlait has reviewed its environmental footprint and developed
Slide 47: Human Rights & Modern Slavery
2020 ESG PRESENTATION & ESG REFERENCE PACK — HUMAN RIGHTS & MODERN SLAVERY
Slide 48: Reviewing Our Approach to Human Rights
REVIEWING OUR APPROACH TO HUMAN RIGHTS We are acting on the Australian National Contact Point (ANCP) statement of the parties; And have a program of work to improve our policy, process and disclosure. WE ARE COMMITTED TO THE ANCP AGREEMENT BETWEEN ANZ AND EXTERNAL STAKEHOLDERS • In February 2020 ANZ
Slide 49: Our Response to the Australian Modern Slavery Act
OUR RESPONSE TO THE AUSTRALIAN MODERN SLAVERY ACT ANZ will report against the Australian Modern Slavery Act’s mandatory criteria in 2020, describing how we identify and act on key modern slavery risks in our operations and supply chain. OUR FOCUS IN FY20 IS ON RISK ASSESSMENT, BUILDING AWARENESS, PO
Slide 50: Additional Information
ADDITIONAL INFORMATION ANZ SHAREHOLDER WEBSITE: https://www.anz.com/shareholder/centre/ Royal Commission & Corporate Overview & AASB9 COVID-19 update Sustainability Update on implementation of Progress against our Environment, AASB9 overview and stages Hayne recommendations and Social & Governance (
Slide 51: Further Information
FURTHER INFORMATION Our Shareholder information anz.com/shareholder/centre/ Equity Investors Jill Campbell Cameron Davis Harsh Vardhan Group General Manager Executive Manager Manager Investor Relations Investor Relations Investor Relations +61 3 8654 7749 +61 3 8654 7716 +61 3 8655 0878 +61 412 047
Australia and New Zealand Banking Group — ESG Presentation (September 2020) on 6ix