2019 ESG Supplement

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
ANZ Centre Melbourne, Level 9A, 833 Collins Street, Docklands VIC 3008

13 December 2019

Market Announcements Office
ASX Limited
Level 4
20 Bridge Street
SYDNEY NSW 2000





2019 ESG Supplement

Attached is the Australia and New Zealand Banking Group Limited (ANZ) 2019 ESG
Supplement. The 2019 ESG Supplement has been approved for distribution by ANZ’s
Ethics, Environment, Social & Governance Committee.

Yours faithfully




Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited

2019
ESG SUPPLEMENT
ANZ
Managing
our ESG
opportunities
and risks

Over the years they have faced many challenges, including
bushfires and the collapse of Tasmania’s apple export industry in
1973 (the result of Britain joining the European Common Market). In
response, Ian Smith, a third-generation orchardist, built controlled-
atmosphere cool stores and began exporting to Asia in the 1980s.
More recently his son Andrew has converted the orchard into an
organic farm, in the belief that growing food without the need
for chemical fertilisers and pesticides is better for their land, their
customers and the Tasmanian environment.
Willie Smith’s has had a banking relationship with ANZ for more
than 100 years. In June this year members of our Board and
Executive visited the cider production facilities and packing shed,
meeting with the workers and learning about what matters to
them and their local community.
“I have worked hard to evolve Willie Smith’s into a vertically
integrated agribusiness in the last 20 years. The key ingredients
have been innovation, hard work and good relationships. I feel
confident and comfortable in our working relationship with ANZ,”
said Andrew.
Supporting the agricultural sector is an important part of ANZ’s
history, and banking customers like Willie Smith’s aligns with our
focus on helping our customers grow their business sustainably.
Image: Andrew Smith
Willie Smith’s Organic Apples and
Cider is a family-run business in
Huonville, Tasmania. The family
started apple farming in 1888 and
the business has since evolved into a
premium supplier of organic apples,
cider and spirits.
COVER STORY
Growing business
sustainably
Contents
Our 2019 reporting suite 1
2019 ESG performance snapshot 2
About our business 4
ESG governance and risk management 5
What matters most
6
S
takeholder engagement
9
Bec
oming a fairer and more responsible bank 11
ESG targets
12
Impr
oving conduct and culture
14
Employee engagement, development and wellbeing 16
Delivering improved customer outcomes 18
Supporting cus
tomers potentially

vulnerable to financial difficulty 22
Managing customer complaints 24
Improving customer experience
thr
ough digital solutions
26
C
yber security
28
Data protection 29
Financial crime

30
R
especting human rights
32
Managing ESG risks in our supply chain

34
R
esponsible business lending
35
Supporting the transition to a net-zero carbon economy 37
Green Bond impact report – summary 40
Reducing our environmental footprint 41
Housing 44
Financial wellbeing
47
W
orkplace participation and diversity
53
Supporting Indigenous A
ustralians 56
Building an accessible and inclusive bank
58
C
ommunity investment
60
Voluntary tax transparency 64
2019 ESG performance summary 66
R
esponsible business lending
67
Environment 70
Employees
72
C
ommunity
78
Customers 79
V
oluntary tax transparency
81
Explana
tory notes
82
Independent Limit
ed Assurance Report to the
Directors of ANZ Banking Group Limited

83
ANZ 2019 ESG SUPPLEMENT

Reporting suite
We produce a suite of reports to meet the needs and requirements of a
wide range of stakeholders, including investors, customers, employees,
regulators, non-government organisations and the community.
This ESG Supplement complements our 2019 Annual Report
available on anz.com/annualreport. In preparing pages 1 to 65 of
the Annual Report we applied aspects of the International Integrated
Reporting Framework to describe how our business model, strategy,
governance and risk management processes are addressing risks and
opportunities in our operating environment and delivering value for
our stakeholders.
Our 2019 Corporate Governance Statement discloses how we have
complied with the ASX Corporate Governance Council’s ‘Corporate
Governance Principles and Recommendations – 3rd edition’ available
on anz.com/corporategovernance.
Our 2019 Climate-related Financial Disclosures are contained in a
separate document available on anz.com/annualreport.
Additional disclosures are available on anz.com/shareholder/centre.
We are continually seeking to improve our reporting suite and
welcome feedback on this report. Please address any questions,
comments or suggestions to corporate.sustainability@anz.com.
2019 Annual Report
anz.com/annualreport
2019 Corporate Governance Statement
anz.com/corporategovernance
2019 ESG Supplement
anz.com/cs
2019 Climate-related Financial Disclosures
anz.com/annualreport
About this Environment, Social and
Governance (ESG) Supplement
This provides stakeholders with more detailed information on
the Australia and New Zealand Banking Group Limited’s
1
ESG
performance and challenges.
It is structured in three 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 2020 ESG targets.
The second section our management of materially significant issues
aligning with our priority areas of fair and responsible banking,
environmental sustainability, housing and financial wellbeing.
The third section contains our comparative performance data.
This report has been prepared in accordance with the
GRI Standards: Comprehensive option. A complete GRI Index is
a
vailable on
anz.com/cs.
KPMG has provided limited assurance in respect of this ESG
Supplement, including considering whether the appropriate
indicators have been reported in accordance with GRI
Sustainability Reporting Standards Comprehensive level of
disclosure. KPMG has also provided limited assurance over ESG
content
2
within our Annual Report, Annual Review and our 2019
Climate-related Financial Disclosures report. A copy of KPMG’s
independent limited assurance report is on pages 83–84.
This report covers all ANZ operations worldwide over which,
unless otherwise stated, we have control for the financial year
commencing on 1 October 2018 and ending 30 September 2019.
Monetary amounts in this document are reported in Australian
dollars, unless otherwise stated.
Our 2019
reporting suite
1.
Group: Australia and New Zealand Banking Group Limited (the Company) and the entities it controlled at the year end and from time to time during the financial year (together, the Group).
2.
ESG content includes the following sections of the 2019 Annual Report and 2019 Annual Review: 2019 Performance Snapshot, What Matters Most, Working with our stakeholders, Becoming a
fairer and more responsible bank, Our Customers, Our People, Our Community, Risk Management: Our approach to climate change and ESG metrics on page 65.
3.
The 2019 Annual Review is comprised of pages 1 to 65 and 229 to 230 of the 2019 Annual Report and a Remuneration Overview.
Political donations
ANZ policy is that we will make an annual donation to each of
the major parties. On 6 October 2017, ANZ made donations of
$150,000 to the Federal Liberal and Labor parties. The payments
were incorrectly treated as having been reported for the
2016–17 financial year and were not reported in 2017–18.
ANZ filed an amended Australian Electoral Commission return
for the 2017–18 year in February 2019 on discovery of the error.
1

2019 ESG
performance
snapshot
in community investment
1
$19.1b
CO
2
32.5%
77%

730+


1 million
reduction in scope 1 and 2
greenhouse gas emissions
against a 2015 baseline
of employees
volunteered
42.4%
funded and facilitated in
environmentally sustainable
solutions since 2015
$142.2m
$
people reached
through our financial
wellbeing programs
3
Almost
representation of women
in leadership roles
2
people recruited from
under-represented
groups
4
Ranked
4
TH
Australia
5
and
New Zealand
6
retail
Net Promoter Score
25%
employee engagement
$
1.
Figure includes forgone revenue of $109 million, being the cost of providing low or fee
free accounts to a range of customers such as government benefit recipients, not-for-
profit organisations and students.
2.
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 FTE).
3.
MoneyMinded, MoneyBusiness and Saver Plus since 2002, employment and community
programs and targeted banking products and services for small business and retail customers.
4.
Including Aboriginal and Torres Strait Islander peoples, people with disability and
refugees since 2016.
5.
Roy Morgan Research Single Source, Australian population aged 14+, Main Financial
Institution, six-month rolling average to Sep’19. Ranking based on the four major
Australian banks.
6.
Retail Market Monitor, Camorra Research, six-month rolling average to Sep’19. Ranking
based on the five major New Zealand banks.
2
ANZ 2019 ESG SUPPLEMENT

Reshma arrived in Australia from Dubai seven years ago with her
husband and three children. Reshma and her husband were born
and grew up in the southern region of India however moved to
Dubai when her husband found work. In Dubai, life was a financial
struggle. The family were planning to move back to India, but an
opportunity arose to move to Australia.
Prior to MoneyMinded, the family manually recorded all their
expenses but it did not change their behaviour or attitude towards
money. MoneyMinded impressed upon Reshma the importance of
having savings goals and differentiating between needs and wants. It
gave purpose to the practice of tracking their spending.
Reshma’s daughter Asmaa had always been a good saver, she had
a casual job and always made sure she had money for a rainy day.
Asmaa focused so much on saving that she felt guilty spending
money or using money to enjoy life.
“I learned from MoneyMinded, that it’s not about completely not
spending it or completely spending it. It’s about having a goal to
work towards and having a budget for each thing. It doesn’t mean
that if you want to save, that you cut out on your fun time or any of
your entertainment expenses,” she said.
The rest of the family have also been influenced by MoneyMinded.
Reshma and Asmaa encourage them to distinguish between their
needs and wants, to search for better prices, and save towards
their goals.
The family are delighted about how much fun it is at home
discussing money, doing the research and saving up for their goals.
They are currently saving for a holiday to Dubai; this was not the
case before MoneyMinded.
“We have confidence now that we will save, so we made a decision
that we’ll go,” said Reshma.
As a family they have joined together to improve their financial
wellbeing, using the tools they learned in MoneyMinded.
Image: MoneyMinded participant Reshma and her daughers, Asmaa (also a
participant) and Faridah.
Reshma and her daughter Asmaa completed MoneyMinded through the
Brotherhood of St Laurence’s ‘Stepping Stones’ program.
COMMUNITY STORY
MoneyMinded – building the confidence to save
Over 87,000
people
participated in
MoneyMinded
in 2019
$
3

We provide banking and financial products and services to around eight million
individual and business customers, and operate in and across 33 markets.
About our business
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. We are focusing our efforts on:
•financial wellbeing – improving the financial wellbeing of our
customers, employees and the community by helping them
make the most of their money throughout their lives;
•environmental sustainability – supporting household,
business and financial practices that improve environmental
sustainability; and
•housing
– improving the availability of suitable and affordable
housing options for all Australians and New Zealanders.
We are contributing to these challenges by: developing innovative
and responsible financial products and services; participating
in relevant policy development and research; strengthening
stakeholder partnerships; and harnessing the skills of our people.
Fundamental to our approach is a commitment to fair and
responsible banking – keeping pace with the expectations of
our customers, employees and the community, behaving fairly
and responsibly and maintaining high standards of conduct.
Throughout this report we illustrate how we are embedding
purpose into our business strategy, including through our ESG
targets and performance objectives.
The United Nations Sustainable Development Goals (SDGs)
seek to respond to the world’s most pressing challenges.
Business has an important role to play in helping achieve
the SDGs. Recognising this, we have continued to map our
material issues and ESG targets to relevant SDGs. In addition,
throughout this report we have sought to identify the relevant
SDG targets to which we are making a contribution.
Our culture and values
Our values are the foundation of how we work and are supported by our Code of Conduct. All employees and contractors must comply
with the Code, which contains guiding principles and sets the standards for the way we do business at ANZ.
ExcellenceIntegrityCollaborationAccountabilityRespect
We care about:
This year 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. From 2020, we will
report on our progress with respect to the Principles in our
annual reporting suite.
Across our 2020 target suite we
are supporting 11 of the 17 SDGs.
Our purpose
Our purpose is to help shape a world in
which people and communities thrive.
That means striving to create a balanced,
sustainable society in which everyone can
take part and build a better life.
4
ANZ 2019 ESG SUPPLEMENT

ESG governance and
risk management
Our governance framework provides the structure for
effective and responsible decision-making within the organisation.
Ethics, Environment, Social and
Governance (EESG) committee
The EESG Board Committee, led by ANZ’s Chairman, is
responsible for oversight, review and/or approval of matters
relating to our ESG priorities, including performance against
targets. The Committee also oversees the ethical and ESG
risks and opportunities relevant to the bank’s ability to
advance our purpose and operate as a fair, responsible and
sustainable business.
The EESG committee meets quarterly and each meeting
opens with an overview of the ESG operating environment,
covering current and emerging issues, including regulatory
and parliamentary inquiries, community sentiment,
competitor activity, relevant international developments and
our stakeholder engagement activities.
Further information on oversight activities and issues
discussed by the Committee during this year are outlined
in our 2019 Annual Report on pages 36–37 available on
anz.com/annualreport.
Ethics and Responsible Business
Committee (ERBC)
The ERBC, chaired by the CEO, is comprised of senior
executives from business divisions and Group functions.
Independent ethics adviser, Dr Simon Longstaff, also
participates as an observer.
The Committee is a leadership and decision-making body
that exists to advance ANZ’s purpose. It oversees ‘who
we bank’ and ‘how we bank’, seeking to align our lending
decisions and products, services and processes with our
purpose. It considers and decides on current and emerging
ethical and ESG risks and opportunities, particularly those that
have the potential to impact the bank’s reputation. It also sets
the bank’s ESG targets and monitors performance against
them quarterly.
Issues discussed during 2019 included: external perspectives
on community standards and expectations; product
suitability; customer due diligence in emerging economies;
supporting our customers in the transition to a low carbon
economy; ‘lessons learnt’ from the Royal Commission;
implementation of the 2019 Banking Code of Conduct
requirements; and our approach to live animal exports.
The Board is responsible for the oversight of the bank and its sound
and prudent management, with specific duties as set out in its
charter available on anz.com/corporategovernance.
There are six principal Board Committees – the Audit Committee,
the Ethics, Environment, Social and Governance (EESG) 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.
At management level, the Group Executive Committee comprises
ANZ’s most senior executives. There is a delegations of authority
framework that clearly outlines those matters delegated to the CEO
and other members of senior management. In addition, there are a
number of formally established management committees that deal
with particular sets of ongoing issues.
Our ESG governance processes have been strengthened over the
past two years by increased Board and management oversight
through our Board EESG Committee and management Ethics and
Responsible Business Committee. This was communicated at our
annual ESG market briefing and is set out in detail at
anz.com/shareholder/centre/reporting/sustainability.
These bodies‘ focus is also supported by a Royal Commission
and APRA Self-Assessment Oversight Group (refer to page 11 for
further detail), our Customer Fairness Officer, Colin Neave, who
reports directly to the CEO and our Customer Advocate in Australia,
who reports directly to the Group Executive, Australia Retail and
Commercial Banking (refer to page 25 for further detail).
Our most material ESG issues (refer to pages 6–8) are captured
and managed within the Group’s Key Material Risks (for further
information on risk management refer to pages 44–47 of our 2019
Annual Report available on anz.com/annualreport).
For further detail on our governance framework see
our 2019 Corporate Governance Statement available on
anz.com/corporategovernance.
5

What
matters
most
A focus on fair and responsible banking
Through our annual materiality assessment we engage with
internal and external stakeholders to inform our identification
of ESG risks and opportunities. We seek to identify those issues
that have the most potential to impact our ability to operate
successfully and create value for our stakeholders.
These issues may change over time, reflecting changes
in our business and external operating environment and
the expectations of stakeholders. We use the results of the
assessment to inform our strategy and our priority areas of
financial wellbeing, environmental sustainability, housing and
fair and responsible banking; reporting and targets; and to guide
the content of this report and the applicable GRI Standards.
A complete GRI content index is available on anz.com/cs.
This year, we focused our assessment solely on fairness and
ethical conduct, which has been ranked as our most material
issue for the last three years. Specifically, we sought external
stakeholder views on the actions we are taking following
the Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry (the Royal
Commission). Views were sought from institutional investors,
retail shareholders, consumer advocates, financial counsellors
and analysts. One-on-one interviews were conducted with
the stakeholders by an external consultant who specialises in
stakeholder engagement and governance, particularly in the
financial services sector.
These observations were presented to the Board Ethics,
Environment, Social and Governance Committee, the management
Ethics and Responsible Business Committee and the management
Royal Commission and Self-Assessment Oversight Group, and are
informing our continuing work on improving customer outcomes.
Our most material issues
While we focused on fairness and ethical conduct this year, we also
undertook some additional steps to identify any changes in risks
and opportunities that should be reflected in our full list of material
issues (as published in our 2018 Sustainability Review on page 11
available on anz.com/cs). We considered the following:
•our key material risks (refer to pages 46–47 of our
2019 Annual Report available on anz.com/annualreport);
•our strategy (refer to page 9 of our 2019 Annual Report available
on anz.com/annualreport);
•a media scan;
•annual emplo
yee engagement survey results ;
•peer review;
•industr
y trends, including the United States Sustainability
Accounting Standards Board Materiality Map and the 2019 Global
Risks Report by the World Economic Forum; and
•the United Nations Sustainable Development Goals (SDGs).
We concluded that the only change required to our list of material
issues was the addition of housing as an issue. We added housing
because it is a key priority within our strategy and a focus area within
the SDGs.
Stakeholders provided us with
three key observations:
1 There was surprise at the extent of the sector’s failings,
with many expressing the belief that unethical (not
just illegal) behaviour will erode shareholder value.
They expect us to focus on long-term value creation,
not short-term profit maximisation;
2
While the actions we have taken to date in response
to the Royal Commission are considered good and
necessary, they want us to do more. In particular,
they expect Board and management to demonstrate
customer-centric actions in line with the letter and the
‘spirit’ of the Royal Commission’s findings; and
3 They see a broader role for the Board in overseeing
conduct and culture and an expectation that real
and lasting change happens as a result of the
Royal Commission. They also expect transparent
disclosure on progress against our Royal Commission
commitments to improve customer outcomes (refer to
pages 11 and 18–25).
This year, we focused our
materiality
assessment solely
on fairness and ethical conduct,
ranked as our most material
issue for the last three years.
6
ANZ 2019 ESG SUPPLEMENT

Our material
issues and
ranking
Description of issueLocation of
disclosures
Relevant United
Nations Sustainable
Development Goals
Fairness and
ethical conduct
A strong corporate culture, known for ethics, values,
fairness and transparency. Simple and understandable
products and communications (ie. product disclosure,
including bank fees and charges) and appropriate
hardship/collections policies.
2019 Annual Report,
page 16, available on
anz.com/annualreport
2019 ESG Supplement,
pages 11, 14–15 and 18–25
Fraud and
data security
Policies and processes in place to prevent fraud and
protect customer data and privacy. Includes customer
access to personal data.
2019 Annual Report,
page 20, available on
anz.com/annualreport
2019 ESG Supplement,
pages 28–31
Customer
experience
Delivering value and improved customer experience
through appropriate financial products and services for
all customers, small business and personal.
2019 Annual Report,
pages 17–20, available on
anz.com/annualreport
2019 ESG Supplement,
pages 18–27
Corporate
governance
Appropriate governance frameworks in place (ie.
processes and policies, including those relating
to risk management, executive remuneration and
accountability) to ensure ANZ is managed in the long-
term interests of stakeholders.
2019 Annual Report,
pages 32–47, available on
anz.com/annualreport
2019 Corporate Governance
Statement available on
anz.com/corporategovernance
2019 ESG Supplement, page 5
Digital
innovation
Keeping pace with digital innovation to ensure we are
offering our customers competitive and convenient
products and services in a rapidly changing market.
2019 Annual Report,
page 20, available on
anz.com/annualreport
2019 ESG Supplement,
pages 26–27
Our material issues
(stakeholder ranking)
7

Our material
issues and
ranking
Description of issueLocation of
disclosures
Relevant United
Nations Sustainable
Development Goals
Responsible
business lending
Social and environmental impacts that may result from our
business lending, particularly our lending to large business
customers (eg. lending to sensitive sectors such as mining,
military etc.). Includes our due diligence processes in
relation to our customers’ human rights obligations.
2019 ESG Supplement,
pages 32–33 and 35–36


Financial
wellbeing
Promoting and enabling access to safe and affordable
products and services, particularly for lower-income and
vulnerable consumers. Work with cross-sector partners to
help customers, employees and the broader community
meet current financial commitments and needs, and
improve their financial resilience.
2019 Annual Report,
pages 28–31, available on
anz.com/annualreport
2019 ESG Supplement,
pages 47–63


Financial system
stability and
regulation
Financial system stability and regulation of the banking
sector, including government policy relating to access to
markets and bank licences.
2019 Annual Report, pages 4–5,
16 and 21–23, available on
anz.com/annualreport
2019 ESG Supplement,
page 11
Anti-money
laundering
and terrorism
financing
Compliance with international sanctions, anti-money
laundering and terrorism financing requirements.
2019 ESG Supplement,
pages 30–31
Diverse and
inclusive
workforce
Attracting and retaining an engaged, diverse and
inclusive workforce to help us serve our customers
better and drive strong business performance across the
markets in which we operate.
2019 Annual Report,
page 26, available on
anz.com/annualreport
2019 ESG Supplement,
pages 16–17 and 53–59

Climate change
Managing the business risks and opportunities associated
with climate change. Includes the role we play in
supporting our customers to transition to a low
carbon economy.
2019 Climate-related Financial
Disclosures available on
anz.com/annualreport
2019 Annual Report,
pages 48–49, available on
anz.com/annualreport
2019 ESG Supplement,
pages 37–43
Labour rights
and employee
wellbeing
Fair and equitable wages, freedom of association, safe
working conditions (including effective policies to maintain
physical and mental health and wellbeing), fair hours, no
discrimination, regular work and whistleblower policies.
2019 ESG Supplement,
pages 14–17 and 53–59

Investing in
the community
Supporting the communities in which we operate
through workplace giving and volunteering; and
recovery from natural disasters.
2019 Annual Report,
page 28–31, available on
anz.com/annualreport
2019 ESG Supplement,
pages 43, 46, 52 and 60–63

Sustainable
supply chain
Social and environmental impacts of our procurement
practices (ie. identifying and managing the risks and
opportunities associated with our supply chain).
2019 ESG Supplement
pages 32–34

Housing
1
Improving the availability of suitable and affordable
housing options for all Australians and New Zealanders.
2019 Annual Report,
pages 18 and 28–31, available
on anz.com/annualreport
2019 ESG Supplement,
pages 44–46

1.
Position in list not reflective of ranking. This issue was not ranked by stakeholders in 2018 as we only added it in this year. Stakeholders will be asked to rank this issue in our
2020 materiality assessment.
8
ANZ 2019 ESG SUPPLEMENT
What matters most continued

Stakeholder engagement
Stakeholder relationships are essential to our success and our ability to
create long term value.
CUSTOMERS
HOW WE ENGAGED
•ANZ’s online customer research
community
•Online and face to face, forums,
surveys, focus groups,
co-creation sessions and individual
in-depth interviews
•‘Voice of Customer’ platform
capturing feedback on customers’
experience with ANZ
•Conversations with our Customer
Advocate and Customer Fairness
Adviser
•C
omplaints Resolution Centre
•Social media
KEY ISSUES RAISED
•Conduct and culture, financial advice
and treatment of customers in
financial difficulty

•Product suitability
•C
ustomer service
•Fees and charges
•Dissatisfaction relating to
digital products
HOW WE RESPONDED
Our response to the issues raised
by customers can be found on
pages 11, 14–15 and 18–27.
SHAREHOLDERS
HOW WE ENGAGED
•Results briefings
•Strategy briefings, Environment,
Social and Governance (ESG)
briefings and other market updates
•Annual General Meeting
•Disclosur
e documents, including
results announcements, investor
presentations, external reporting
suite and other ASX lodgements
•Dedicated ANZ shareholder website
KEY ISSUES RAISED
•Opportunities and challenges
associated with the current
operating environment
•ANZ’s strategic focus and business
priorities, including the execution
of our strategy
•F
inancial performance, composition
and sustainability of earnings
•C
apital and balance sheet
management, including quantum
of capital held, impact of current
regulatory proposals and efficient
use of capital
•Balanc
e sheet quality and liquidity
and funding positions
•Dividend, franking and dividend policy
•ESG approach, commitment
and progress
HOW WE RESPONDED
We seek to provide shareholders
with quality information in a timely
fashion through ANZ’s reporting suite,
announcements and briefings to the
market, half-yearly shareholder letters
and our dedicated shareholder site at
anz.com/shareholder.
In 2019, in addition to interim and
full-year results briefings, we held
our second ESG briefing providing
an update on our approach to ESG,
including our purpose and priorities
and our governance structure.
EMPLOYEES
HOW WE ENGAGED
•‘ My Voice’ survey of employee
engagement
•Regular interactive webcasts with
CEO and Executive Committee
members
•Dir
ect communication and formal
twice-yearly performance appraisals
with line managers
•I
nternal communications channels,
including intranet and Yammer
•Meetings with unions representing
ANZ employees
KEY ISSUES RAISED
•Royal Commission – hearings,
impacts and implications
•Strategic focus and business
priorities, including purpose
and values
•Growth and development, including
‘New Ways of Leading’
•‘Speak up’ including raising ideas,
issues and concerns without fear of
negative consequences
•Employee health, safety and
wellbeing
•Engaging on key priority areas
under ANZ’s purpose (eg. financial
wellbeing)
•Diversity and inclusion
•F
lexible working arrangements
•Organisational restructuring
•P
erformance management
•R
emuneration and reward
HOW WE RESPONDED
Our response to the issues raised
by employees can be found on
pages 14–17 and 53–59.
Transparent and responsive stakeholder engagement is one of the most important ways we can demonstrate trustworthiness and
rebuild community confidence. Stakeholder engagement is embedded in our policies, processes and operations. Outlined below are
the key issues raised by our stakeholders throughout the year and how we responded.
9

NON-GOVERNMENT
ORGANISATIONS (NGOs)
HOW WE ENGAGED
•A regular program of CEO and
senior executive meetings with
civil society leaders to exchange
ideas and discuss material social,
economic and environmental issues
of mutual interest
•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
•Conduct and culture
•Remediation and compensation
schemes
•Responsible gambling initiatives
and policies
•Vulnerable customers, hardship
programs and consumer protection
•Support for customers and
communities impacted by
drought and other natural disasters
in Australia
•Climate change, carbon risk
management and the role of banks
in supporting an orderly and just
transition to a low carbon economy
•Strategies to tackle unemployment
and build social and economic
participation
•Building financial wellbeing in the
community across ANZ’s operations
in Australia, New Zealand, Asia and
the Pacific in partnership with the
community sector
•Oppor
tunities and challenges
associated with homelessness
in Australia
HOW WE RESPONDED
Our response to the issues raised by
NGOs can be found on pages 11,
14–15, 22–23, 32–39 and 44–63.
Our 2019 Climate-related Financial
Disclosures are contained in a
separate document available at
anz.com/annualreport.
INDUSTRY
ASSOCIATIONS
HOW WE ENGAGED
ANZ is a member of a number of
industry associations. The most
significant of these memberships
are the Australian Banking
Association (ABA), the Business
Council of Australia, the Financial
Services Council, the Association of
Superannuation Funds of Australia,
Insurance Council of Australia, the
New Zealand Bankers’ Association, and
Business New Zealand.
Via these memberships we
participated in:
•the development and
implementation of the industry
consumer protection reform
program in Australia
•discussions about industr
y-wide
issues and strategy
•providing input into industry
association responses to
parliamentary inquiries and
government consultations
KEY ISSUES RAISED
•Conduct and culture
•R
emuneration, particularly retail
sales commissions and product-
based payments and commissions
•Comprehensive credit reporting
and open banking
•Climate change policies and
alignment, including advocacy
HOW WE RESPONDED
We engaged with key industry
associations, including the ABA,
(we assumed the role of Chair Bank),
and the Financial Services Council
to develop strategic responses to
reputational issues.
Together with other Australian banks
we continued to implement the
industry reform program. As part of
this work, the Australian Securities
and Investments Commission (ASIC)
approved a new Banking Code of
Practice that came into effect in
July 2019. Refer to the Improving
Customer Outcomes section on

pages 18–19 for more detail.
GOVERNMENT AND
REGULATORS
HOW WE ENGAGED
•Appearance before, and written
submissions to, the Royal
Commission into Misconduct in
the Banking, Superannuation and
Financial Services Industry
•Regular meetings with political
stakeholders, officials and regulators
•Submissions t
o parliamentary
committee inquiries and other
government and regulatory
consultations
KEY ISSUES RAISED
Australia:
•Customer detriment caused by
poor conduct and governance
failures in the banking industry
•I
mplementation of Royal Commission
recommendations, related
government and industry reforms
•Consultations on remuneration,
responsible lending, consumer
data right, auditing, and trade and
the economy
•Public policy development on issues,
research and programs related to our
mutual interest in financial wellbeing
and capability
•Co-investment in financial capability
program Saver Plus
New Zealand:
•Conduct and culture
•R
egulatory issues including bank
capital, retirement savings, financial
advice, responsible consumer
lending and farm debt mediation
•P
ublic policy development on
issues including financial inclusion,
housing, open banking, the future of
cash and freshwater management
HOW WE RESPONDED
ANZ seeks to listen and engage
constructively with the Royal
Commission, regulators, government
and policy makers. In addition to
participating in the Royal Commission,
we have participated in a wide range
of government consultations and
parliamentary inquiries. An overview
of the work underway in response to
issues raised is outlined on pages
11, 14–15 and 18–27.
10
ANZ 2019 ESG SUPPLEMENT
Stakeholder engagement continued

Becoming a fairer and
more responsible bank
Our response to the Royal Commission
The Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry (the Royal
Commission) has had a profound impact on our organisation.
The Commission’s report led us to further examine how we serve
our customers. We identified eight lessons from our misconduct
and failures to meet community standards and expectations. These
lessons have informed our response to the ‘spirit and letter’ of the
Royal Commission. We are now identifying measures that will allow
us to be confident that these lessons have been acted on.
Our first step was to identify which Commission recommendations
we could quickly act on. This led to 16 initiatives to improve the
treatment of our retail customers, small businesses and farmers in
Australia. Some of the key commitments we have delivered on are:
•removing overdrawn and dishonour fees on our Pensioner
Advantage account (available to eligible recipients of Centrelink
or Veterans’ Affairs pensions);
•impr
oving our service to Indigenous customers in remote
communities by setting up a dedicated phone service and
giving them easier options to prove their identity;
•publishing pr
inciples to help family farming customers in
financial distress;
•publishing principles on acting as a model litigant in disputes
with our customers; and
•implementing pa
y reforms that replace individual-based bonuses
for most of our employees with an incentive based on the overall
performance of the Group.
In addition to progressing these 16 initiatives, Colin Neave,
former Commonwealth Ombudsman and our first Customer
Fairness Adviser (appointed in 2016), reviewed individual ANZ
cases highlighted at the Royal Commission, taking action where
appropriate to resolve matters.
The Royal Commission represented a critical moment for our
industry. As an organisation we are committed to doing the right
thing by our customers, and making the necessary changes to
improve our governance, accountability, culture, products and
practices. We are determined to learn from our failures and build a
bank that is worthy of the trust and respect of our customers and
the community.
APRA Self-Assessment
In late 2018, the Australian Prudential Regulation Authority (APRA)
asked a range of financial services companies, including ANZ, to
examine through a Self-Assessment Report their behaviours and
operations in the wake of highly publicised misconduct in the sector.
We submitted our Self-Assessment Report to APRA in November
2018, and have since developed a ‘roadmap’ to act on the themes
raised in that report.
We identified five focus areas in which to concentrate our efforts to
deliver better outcomes. These areas were identified both through
the self-assessment as well as issues that were examined by the
Royal Commission.
Focus areas
Simplification
of our business, products
and processes
Culture
including the way we reward
and recognise our people
Governance
and
accountability
including how we are held to
account, and how we manage
and execute change
Remediation
including expansion of
our specialist customer
remediation team
Management of
operational risk
review and improvement of
our operational risk framework
Executive Committee members have been assigned ‘ownership’
of each focus area and they are responsible for monitoring
performance.
We have established a Royal Commission and Self-Assessment
Oversight Group to oversee an integrated response to the Royal
Commission and Self-Assessment.
Further detail of our self-assessment can be found on
bluenotes.anz.com.
During this year we have continued to make changes to our culture,
governance and accountability mechanisms to help improve customer
outcomes and restore community trust.
11

ESG targets
Each year we set public ESG targets, many of which are aligned with
the United Nations Sustainable Development Goals, that reflect our
ESG priorities, support the delivery of our business strategy and respond
to our most material issues.
2020 ESG targets
Fair and responsible banking
Keeping pace with the expectations of our customers, employees and the community,
behaving fairly and responsibly, and maintaining high standards of conduct
RepTrak® community sentiment indicator – lead and improve relative to peers.
Complete a review of ANZ’s customer complaints policies and standards by end 2020 to validate the improvement in our internal
dispute resolution processes with respect to:
•recording, management and escalation of complaints; and
•systemic issue identification and management (Australia).
Develop and implement a gambling self-exclusion capability for consumer credit card accounts by end 2020 (Australia).
Continue to allocate dedicated resources to customer remediation to improve our processes and ensure that by 2020 we have:
•decreased the time taken to reimburse customers; and
•delivered an education program to employees to share ‘lessons learnt’ from customer remediation and to prevent future remediation
from occurring (Australia).
Progress against our targets is reviewed by the Ethics and
Responsible Business Committee quarterly and twice a year by the
Board Ethics, Environment, Social and Governance Committee.
2019 ESG targets performance
This year we have achieved or made good progress against the
majority of our targets. Detailed performance information is
available throughout this supplement.
21% Achieved
74% Partially achieved or in progress
5% Not achieved
12
ANZ 2019 ESG SUPPLEMENT

1.
These targets expire on 30 June 2020. We have already publicly announced a new target to achieve 100% renewable energy for ANZ’s global operations by 2025 (endorsed by the EESG in
September 2019). Additional new targets will be developed for Committee approval in Q2 FY20.
TARGETSRELEVANT UNITED
NATIONS SDGS
Housing
Improving the availability of suitable and affordable housing options for all Australians and New Zealanders
Fund and facilitate $1 billion of investment by 2023 to deliver ~3,200 more affordable, secure and
sustainable homes to buy and rent (Australia).
Provide NZ$100 million of interest-free loans to insulate homes for ANZ mortgage holders (New Zealand).
Expand the availability of financial coaching support to ANZ first home buyers (Australia and New Zealand).
Financial wellbeing
Improving the financial wellbeing of our people, customers and communities by helping them make the most
of their money throughout their lives
Help enable social and economic participation of 1 million people by 2020 through our initiatives to
support financial wellbeing, including our financial inclusion, employment and community programs,
and targeted banking products and services for small business and retail customers.
Build a diverse and inclusive workforce by:
•increasing the representation of Women in Leadership to 34.1% by 2020
•recruiting >1,000 people from under-represented groups including Indigenous Australians,
people with a disability and refugees, by 2020.
Environmental sustainability
Supporting household, business and financial practices that improve environmental sustainability
Fund and facilitate at least $50 billion by 2025 towards sustainable solutions for our customers, including
initiatives that help improve environmental sustainability and increase access to affordable housing and
promote financial wellbeing.
Encourage and support 100 of our largest customers in the energy, transport, buildings and food,
beverage and agricultural sectors to establish, and where appropriate, strengthen existing low carbon
transition plans, by 2021.
Reduce the direct impact of our business activities on the environment by
1
:
•reducing scope 1 and 2 emissions by 24% by 2025 and by 35% by 2030 (against a 2015 baseline);
•incr
easing renewable energy use in our Australian operations by 13% by 2020 (against a 2017 baseline);
•r
educing paper consumption in Australia and New Zealand (office and customer paper use only) by 40%
by 2020 (against 2015 baseline);
•incr
easing recycling rates in our Australian commercial offices (>20,000m
2
) by 12% by 2020
(against a 2017 baseline); and
•reducing water consumption in our Australian commercial offices (>10,000m
2
) by 15% by 2020
(against a 2015 baseline).
13

Improving conduct and culture
We are developing the culture, capabilities and behaviours we need to
live our purpose and values and deliver our strategy.
Our desired culture is underpinned by our purpose, values
and Code of Conduct (Code), as well as being focused on
delivering great customer outcomes, making things simpler
and always learning.
We have continued to make changes to our culture, governance
and accountability mechanisms to help improve customer
outcomes and restore community trust. Highlights during the
year include: implementing our strengthened Accountability
and Consequence Framework; evolving our approach to
measurement and governance of culture initiatives; and
redesigning and launching changes to how we manage and
reward our people.
Accountability and Consequence Framework
TARGET
Implement strengthened Consequence Management
Framework, applicable to employees in breach of our Code of
Conduct, by 2019.
PERFORMANCE
We have strengthened the principles and guidance that
underpin our Accountability and Consequence Framework,
including the development of:
•C
onsequence Management Principles that guide a more
consistent approach to consequence management across
the bank, including impacts on remuneration;
•Accountability Principles that define the various categories
of accountability (eg. direct, indirect, collective); and
•Accountability Review Guidance to guide people leaders on
when and how to undertake accountability reviews.
The program of work has been implemented within FY19
as planned. The focus for FY20 and beyond will be to ensure
ongoing effectiveness through the oversight of our Consequence
Review Group, chaired by the Chief Executive Officer.
New Accountability and Consequence Principles set out when
and how an accountability review will be conducted following
a material risk or audit event, define the various categories of
accountability and provide guidelines for the relevant Group
Executive to consider in determining appropriate consequences.
The Consequence Review Group (CRG), chaired by the CEO,
oversees the implementation and ongoing effectiveness of the
1.
A copy of our Code of Conduct and the full list of policies is available on anz.com/corporategovernance.
Accountability and Consequence Framework, being cognisant of
its impact on the culture of ANZ. The CRG reviews material risk and
audit events and associated accountability and consequences. Refer
to our Remuneration Report on pages 66 to 98 of our 2019 Annual
Report for further detail available on anz.com/annualreport.
In 2019, there were 784 breaches of our Code by employees across
our operations that resulted in a formal consequence or resignation,
down from 1,114 in 2018. Breaches ranged from compliance/
procedural breaches through to email/systems misuse, fraud,
bullying and harassment. Outcomes following investigations of
breaches this year included 117 resignations, 151 terminations and
516 warnings.
Code of Conduct (Code)
Our Code describes how we work at ANZ. It sets the expected
standards of behaviour and guides us in applying our values. Our
Code explicitly requires all employees and contractors to be ethical
and professional, act with integrity, treat everyone with dignity
and respect, manage conflicts of interest, protect privacy and
confidentiality, and also 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 all of our policies and procedures.
The Code is supported by a suite of policies that are reviewed
regularly to ensure they reflect any legislative changes and
otherwise remain fit for purpose.
1
We expect our banking partners
(such as suppliers, service providers and other relevant third parties)
to adopt and maintain similar conduct and ethics principles 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 an
annual basis. The courses include training on ‘Living the Code’, ‘Equal
Opportunity Essentials’ (including in relation to sexual harassment),
and ‘Compliance Essentials’ (including in relation to Anti-Money
Laundering and Operational Risk Essentials). The Living the Code
course reinforces the importance of our values and Code, and seeks a
declaration of compliance with the Code. By completing the course,
participants are confirming they understand the Code’s principles and
have complied with them over the last 12 months.
In 2019, 99.5% of our employees and contractors completed the
training. From 2019, 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 salary increase or incentive as part of our annual
remuneration review.
Our Performance Assessment Guide, revised in 2018, continues to
be available to all employees on our intranet. It clearly articulates the
impact to overall performance outcomes and remuneration in our
annual performance and remuneration review when an employee’s
behaviour does not meet expectations.
Culture
For further information on how we are transforming our
culture refer to the ‘Our People’ section of our 2019 Annual
Report, available on anz.com/annualreport
14
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

1.
Dennis Gentilin, now a director in Deloitte’s Risk Advisory practice, was one of the whistleblowers in one of the largest foreign exchange trading scandals in Australian corporate history.
Whistleblower policy
We seek to support a strong ‘speak up’ culture and ensure managers
recognise exemplary risk and audit behaviours. We are incorporating
culture into leader-led team activities to facilitate open, purposeful
conversations about our culture and practices and create a
psychologically safe environment for employees to speak up.
Whistleblowing is one of the more high-profile channels for
speaking up and our global Whistleblower Policy (Policy) ensures
that all current and former employees, officers, associates, goods
and service providers (and their employees and subcontractors) and
relatives or family members of anyone in these categories can do so
without fear of repercussion.
The importance of speaking up
In August 2019 we held our inaugural
Whistleblower Awareness Week – an
interactive campaign to promote our
updated Whistleblower Policy and highlight
the continued importance of speaking up
and raise awareness of whistleblowing
channels at ANZ.
In Australia, employees learnt how the Whistleblower Program
works, including the process of making a report and the role
of Whistleblower Protection Officers. Elsewhere, awareness
raising events were held by Group Integrity in conjunction with
local business units, including in Auckland, Wellington, Sydney,
Adelaide, Brisbane, India and the Pacific.
During the week we hosted an interactive panel discussion
between external experts including: Warren Day, Executive
Director and Regional Commissioner at ASIC, who leads ASIC’s
Office of the Whistleblower; high-profile whistleblower Dennis
Gentilin
1
; A J Brown, Professor of Public Policy and Law at Griffith
University; and Rachel Nicolson, Partner at law firm Allens. The
session was broadcast across our sites and provided insight into
the challenges associated with speaking up, the importance
of whistleblowing and, more specifically, how the new laws
impact our employees and whistleblowers.
“You can have internal controls, you can have internal
audits, you can have all sorts of systems for making sure that
wrongdoing comes to light or that problems are dealt with,”
said Professor Brown. “But all the research shows that nothing
is as good as the human factor – people who are prepared to
simply say ‘hang on a minute, I don’t think that’s right’.”
The number of Whistleblower
reports made during 2019
increased to 156 disclosures,
up from 137 in 2018.
During the year we extensively redrafted our Policy to capture
the new Australian legal regime offering greater protections for
whistleblowers, which came into force on 1 July. The new legislation
recognises not only the protections needed for whistleblowers but
the value they deliver to organisations and the wider communities
in which they operate. Among other significant changes, the
new Policy uses plain English to outline the expanded categories
of individuals who may make a whistleblower disclosure; the
broadened subject matter of reportable disclosures; and the
investigative process and protection from detriment afforded
under the Policy and our Whistleblower Program.
Compliance training has been designed and rolled out to specific
individuals who have a designated role as an eligible recipient
under the new legislation. The training provides information on
our obligations under the new laws as well as the obligations
of the individual in relation to handling reports and protecting
whistleblowers, including maintaining the confidentiality of
whistleblowers’ identities. In 2019, over 400 eligible recipients
were identified across the Group and provided with the training,
including the Executive Committee, the Board of Directors,
Company Secretary, internal auditors and others.
We continue to raise employee awareness of the various ways that
they can ‘speak up’, and this year held our inaugural Whistleblower
Awareness Week. Our Group Integrity team delivered 177
awareness sessions throughout the year (up from 65 sessions in
2018) to various business units across our operations. The number
of Whistleblower reports made during 2019 increased to 156
disclosures, up from 137 in 2018.
HIGHLIGHT
15

Employee engagement,
development and wellbeing
We are creating an environment where our people can learn and grow
every day, helping us to build organisational agility and capability to
remain competitive.
Engagement
This year employee engagement increased to 77% (from 73%
in 2018). Over 30,000 employees participated in our annual
engagement survey providing feedback on various aspects of
our purpose, values, culture and conduct.
Over 30,000 employees
participated in our annual
engagement survey
The increase in engagement score is encouraging given the
findings of the Royal Commission, ongoing organisational
change, increasing regulatory pressure and community
expectations. In addition, we saw increases in scores relating
to ‘speaking up’ and raising issues, leadership and growth and
development, indicating that our continued focus on these areas
is having a positive impact.
Development
We are building the capabilities critical to delivering our strategy,
including investing in data and engineering talent with new roles
and development opportunities in data analysis and science.
In 2019 we collaborated with Melbourne Business School to
develop and deliver the ‘Data for Decision-Makers’ training
program. The program develops the data capabilities of our
business leaders, building a data analytics mindset and enabling
program participants to improve their decision-making
capabilities through the use of data. To date, almost 400 business
leaders across ANZ have completed the program.
In our Technology Division, our six-month intensive ‘Accelerator
Program’ fast-tracks the development of skills needed for
engineering roles within our business through classroom theory
and practical assignments. The program builds technical coding
and programming skills and equips participants with additional
skills such as customer research, design thinking and ‘lean start-
up’ techniques.
We are developing an ‘Always Learning’ culture, encouraging all
employees to create and action annual individual development
plans as part of our performance management framework. These
plans focus on developing the skills necessary to support the
employee in performing their role as well as their career aspirations.

Our people
Refer to the Our People section on pages 24–26 of our
2019 Annual Report, available on anz.com/annualreport for
further detail.
During 2019 we continued to embed our New Ways of Leading
– focusing on five behaviours relevant for all employees and
imperative for people leaders: be curious, create shared clarity,
empower people, connect with empathy and grow people
selflessly. We also launched Our Way of Learning (OWL) – a new
social learning platform offering employees free access to internal
subject matter experts at ANZ and external content providers and
user-generated content.
Wellbeing
We continue to make progress in supporting our people’s safety
and wellbeing. Our Health and Safety Policy and associated
programs outline our commitment to provide an environment
that enables employees to participate fully in the workplace and
perform at their best.
This year we launched our Wellbeing ‘channel’ – providing access
to resources and training on mental, physical, social and financial
wellbeing for all employees via our new social learning platform (OWL).
We completed the rollout of our facilitated mental health awareness
training to frontline managers in our retail environment in Australia
and New Zealand. We also released two online training programs
focused on mental health awareness, one for employees and one for
people leaders, available in all our geographies.
Our Employee Assistance Program (EAP) is available to all employees
and their immediate family members. The EAP provides confidential,
free counselling and guidance for work and personal problems, and
includes online resources covering topics such as managing stress,
mindfulness, and relaxation. In addition to this, proactive mental
health support is provided to employees in high-risk areas of the
business, for example frontline staff and employees involved in
regulatory matters.
16
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

Health and safety risks vary across our business and our wellbeing
and safety plans include risk controls to account for these
differences. A key focus this year has been improving our risk
controls for employees who visit non-ANZ locations and those
who drive for work. We have developed an interactive awareness
program that is available in all locations. The program provides
information on issues such as planning for trips; avoiding driver
fatigue; different risks to be aware of outside of ANZ locations and
what to do in dangerous or uncomfortable situations.
We encourage early reporting of incidents/illness and hazards, in
order to effectively support the wellbeing of our employees. This
also allows us to identify any trends so we can implement relevant
prevention programs to minimise injuries and enable employees to
remain at work, or return to work as soon as possible.
Data relating to our health and safety performance in 2019 is
available on page 77. This year we have seen a decrease in ‘lost
time injuries’, with no new identifiable trends. The majority of these
injuries continue to be related to slips, trips, ergonomics and injuries
caused by bumping into stationary objects.
We also support the social and financial wellbeing of our employees
through a number of programs and initiatives that are discussed in
further detail on pages 47–59 of this report.
We are developing an
‘Always Learning’ culture,
encouraging all employees
to create and action annual
individual development plans.
Starting a conversation
about mental wellbeing
In 2019, we established our Mental Health and
Wellbeing Network with the aim of creating
a positive workplace culture to ensure those
who experience mental health difficulties, and
those who support them, do not feel alone
and receive the support they need.
What started as one employee sharing her experience of living
with a mental health condition with her team in Australia,
the network has now grown to over 1,300 members globally.
Members share stories of struggles, encouragement and
triumph that, coupled with mental health awareness training,
help to break the stigma of mental illness.
The Network promotes
events such as ‘RU OK Day’
and World Mental Health Day
The Network promotes events such as ‘RU OK Day’ and World
Mental Health Day and provides information on the support
and resources available to all our employees. It highlights how
being curious, connecting with empathy and empowering
people is aligned with the bank’s purpose.
HIGHLIGHT
17

Delivering improved
customer outcomes
Customer remediation
Fair, responsible and efficient customer remediation is a focus for the
bank with significant investment being made across our Australia,
Wealth and New Zealand Divisions.
Our Australia Retail and Commercial Responsible Banking team has
increased the number of dedicated remediation resources working
on large scale customer remediation matters from around 150 to
around 275. More than 500 people throughout the Australia Retail
and Commercial business are also working on a number of smaller
customer remediations, fixes and investigations.
Similarly, the team within Wealth has expanded from around 120 to
around 170 over the last 12 months and our team in New Zealand
has almost 60 dedicated remediation resources. These additional
resources, together with an increase in infrastructure and capability,
are enabling us to refund impacted customers in a scalable and
repeatable way.
TARGET
Continue to allocate dedicated resources to customer remediation
to improve our processes and ensure that by 2020 we have:
•decreased the time taken to reimburse customers; and
•delivered an education program to employees to share ‘lessons
learnt’ from customer remediation and to prevent future
remediation from occurring (Australia).
PERFORMANCE
• At the end of September 2019, our Australia Retail and
Commercial Responsible Banking team has remediated over
one million customer accounts
1
and issued refunds of around
$62 million.
•We are delivering an ongoing education program to share ‘lessons
learnt’ and to highlight the impacts on customers when we fail
to get it right. In creating a collective understanding of the root
causes of our existing remediations, we continue to build a shared
accountability for the prevention of future issues.
Our Wealth team has remediated nearly 26,000 cases in total and
made payments of $95.2 million as at 30 September 2019.
For further information on our customer remediation, refer to page
19 of our 2019 Annual Report, available on anz.com/annualreport.
We seek to treat our customers fairly and responsibly, providing them with suitable
and appropriate products and services, supported by strong data protection.
Shining a light on mortgage pricing
Home buyers in Australia have been
experiencing record low interest rates for
some time and competition between lenders
has been intense.
At the same time, there have been calls for greater
transparency about mortgage pricing.
We regularly review interest rates, considering factors such as
competition and market conditions, the cost of funding, our
business performance and impacts on our customers.
This year we have passed on 57 basis points of the 75 basis
points of the Reserve Bank of Australia (RBA) official cash
rate cuts to our variable rate home loan customers. More
than 90% of our customers have chosen to use the rate cuts
to pay down their debt faster (ie. keeping their payments
the same and paying off principal). However, lower home
loan rates mean that depositors receive less, and balancing
the interests of borrowers, depositors and shareholders is a
continuing challenge.
Since July 2019 we have been reporting to regulators on the
average level of discounting for new and existing mortgage
customers. We believe publishing this data as an industry
average will help customers negotiate with mortgage
providers and deliver improved transparency.
We welcome the Australian Competition and Consumer
Commission (ACCC) inquiry into mortgage pricing in Australia.
The review provides an opportunity to ‘shine a light’ on how
mortgage pricing works. The ACCC is expected to deliver its
interim report by 30 March 2020 and a final report by
30 September 2020.
1.
In certain instances we make:
- a community service payment in lieu of a payment to a customer account. In 2019 charity payments were made for ~111,000 accounts totalling ~$355,000.
- the customer payment via cheque. In 2019 cheques were issued for ~178,000 accounts totalling ~$11,088,000. A proportion of these cheques remain unrepresented.
18
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

Product suitability
TARGET
Communicate with more than 700,000 of our retail and
commercial customers by 2019 to help them get more value
from our products and services and establish positive financial
behaviours, such as improved savings habits (Australia).
PERFORMANCE
We have contacted more than one million of our retail and
commercial customers, including customers who:
•are in receipt of eligible Centrelink or Veterans’ Affairs benefits
to offer to help them move to a low-cost, basic bank account.
Since June 2019, we have contacted 128,624 customers (via
email or letters);
•are experiencing persistent credit card debt;
•ha
ve Interest Only home loans set to expire within six months,
reminding them of the expiry period and notifying them of the
options available at the end of the period;
•ha
ve opened an ANZ Access Advantage account within the last
13–16 days, reminding them to credit their account with regular
salary payments; and
•have Progress Saver periodical payment or direct debit due to
expire in the next month to remind them an automated credit
can help them receive bonus interest on their account.
CUSTOMER STORY
Helping customers to get
on top of credit card debt
We have been contacting credit card
customers who are carrying persistent debt
1
on
their card to help them pay their debt faster.
Customers have been offered financial education, and the
opportunity to close their card and repay the remaining debt
at a lower interest rate. We have contacted 9,500 customers as
at 30 September 2019.
Earlier this year we contacted John*, a long-term customer
who has held a credit card facility with ANZ since 1976. John
had a balance of $9,500 (on a $10,000 limit) and the entirety of
the balance was on a cash advance interest rate of 21.74% per
annum. John had not transacted on the card since 2016 and
had been making payments only slightly above the minimum
monthly repayment amount.
Continuing his current repayment behaviour, John would
have taken more than 9 years to pay off the debt – assuming
there was no further spending on the card – accruing at least
$12,000 in interest over that time.
After contacting John and explaining his options, John agreed
to an instalment plan with an interest rate of 7% per annum.
This will enable him to pay off the debt in five years or less,
saving more than $10,000 in interest charges.
This program has been welcomed by many customers,
including John who said, “I wish this had happened a long time
ago ... it’s such a relief.”
1.
Where for at least the last 12 months a credit card has over 80% of the credit utilised
and the customer has been paying 2–3% of the outstanding balance on average
each month.
* Customer name has been changed.
19

Customer experience
Consistently delivering a positive customer experience enables
us to create value for all of our stakeholders and is critical to our
long-term success.
One way in which we measure the experience of our customers
is through Net Promoter Score. Net Promoter Score is measured
by asking customers how likely they are to recommend ANZ (on
a 0–10 scale) and is calculated by subtracting the percentage of
detractors (those who give a score of 0–6) from the percentage
of promoters (those who give a 9 or 10).
1.
Roy Morgan Research Single Source, Australian population aged 14+, Main Financial Institution, six-month rolling average to Sep’19. Ranking based on the four major Australian banks.
2.
DBM Business Financial Services Monitor. Base: Commercial Banking (<$100 million annual turnover) Main Financial Institution customers. Six-month average to Sep’19. Ranking based
on the four major Australian banks.
3.
Peter Lee Associates, 2019 Large Corporate and Institutional Relationship Banking surveys, Australia.
4.
Retail Market Monitor, Camorra Research, six-month rolling average to Sep’19. Ranking based on the five major New Zealand banks.
5.
Business Finance Monitor, TNS Kantar Research. Base: Commercial ($3 million – $150 million annual turnover) and Agricultural (>$500,000 annual turnover) customers. Four-quarter
rolling average to Q3’19. Ranking based on the five major New Zealand commercial/agricultural banks.
6.
Peter Lee Associates, 2019 Large Corporate and Institutional Relationship Banking surveys, New Zealand.
TARGET
Improve (or where ranked #1, maintain) our Net Promoter
Score ranking relative to peers in our Retail, Commercial and
Institutional businesses.
PERFORMANCE

Australia
•R
etail: ranked 4th (down from 3rd at end of 2018)
1
•Commercial: ranked equal 3rd (no change from 2018)
2
•Institutional: ranked 1st in 2019 (no change from 2018)
3
New Zealand

•R
etail: ranked 4th (no change from 2018)
4
•Commercial & Agricultural: ranked 5th (no change from 2018)
5
•Institutional: ranked 1st in 2019 (no change from 2018)
6
20
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

With respect to our Australian and New Zealand retail and
commercial customers we failed to meet our target to improve
our Net Promoter Score relative to peers.
Although we are currently ranked fourth among the majors in the
Australian retail market, our Net Promoter Score has been improving
since mid-2019. Our reputation was severely impacted by the Royal
Commission. Perceptions of service were also impacted by this time
but have since been recovering.
We are ranked fourth among the majors in the New Zealand retail
market. We noted a decline in our New Zealand Net Promoter
Scores following the departure of CEO David Hisco and we
recognise the impact this has had on our reputation.
While we will continue to report publicly on our Net Promoter Score
results, next year we will also disclose our performance against
a reputation assessment. Conducted quarterly by Reputation
Institute, RepTrak® community sentiment indicator measures
the top 60 companies in Australia (by revenue) asking survey
respondents to “Rate your level of trust/admiration/good feeling/
esteem for [COMPANY ]”.
Banking Code benefiting customers
We are changing our practices in line with the new Banking Code
of Practice to benefit all customers, particularly those experiencing
vulnerability.
In order to comply with the Code we made changes to our policies,
processes, systems and product offerings, training more than 8,000
frontline employees in the new requirements.
Key customer improvements
implemented to meet our 2019
Banking Code of Practice commitments
Being inclusive and accessible
•employees trained to better respond to the needs of
customers experiencing vulnerability
•active promotion of affordable banking products and a
dedicated telephone service to assist Aboriginal and Torres
Strait Islander peoples with their banking needs (refer to
page 57 for further information)
A responsible approach to lending
•a new process for bankers to ensure co-borrowers
understand the risks associated with entering into a loan
•in ex
ercising the care and skill of a diligent and prudent
banker, improved assessment of a small business’ ability to
repay based on financial position or account conduct
•ceased the sale of credit card insurance and personal loan
protection insurance
Small business
•clearer direction provided on information required for a small
business loan application
•simpler and fairer small business loan contracts, accompanied
by a Key Terms Sheet
•at least thr
ee months’ advance notice of facility expiry date to
enable customers to repay or refinance in an orderly manner
Helping customers in need
•new correspondence notifying customers when listed with a
credit reporting bureau or when debt is sold to a third party
•use of data analytics to improve identification of customers
who may be at risk of experiencing financial difficulty and direct
customer contact before they default on their payments
Guaranteeing a loan
•thr
ee-day signing period to provide guarantors the necessary
time to consider the borrower documentation
•guarantor notifications if a borrower gets into financial
difficulty or enters into a repayment arrangement
Account management
•clear
ly disclosed account acquisition fees for deposit and
lending products and a clear record of agreement
•credit card process changes such as: not retrospectively
charging interest; online facility for card holders to cancel or
reduce limits; and notification of expiring introductory credit
card balance transfer offers
Throughout the year we gathered more
than 400,000 pieces of feedback from our
customers in Australia. This feedback is
integral to helping us understand how our
customers experience our products and
services – whether positively or negatively
– and informs our efforts to improve
customer satisfaction.
21

Financial wellbeing contributes significantly to overall social and
economic participation.
Customer hardship
There are times when our customers may be unable to meet their
financial commitments. Some customers may struggle to meet
their loan repayment obligations for a period of time, but may
get back on track if they are given the time and flexibility to deal
with their situation. Events such as job loss, unexpected medical
needs or a relationship breakdown can lead to these difficulties.
Whatever the reason, we work with customers who are in hardship
and experiencing financial difficulty, and seek to assist them fairly,
respectfully and with dignity.
We have changed the way we report customer requests for hardship
assistance – we now measure applications for hardship assistance, as
opposed to the number of accounts flagged as receiving hardship
assistance. This effectively means that if a customer applies for
hardship assistance and has both a personal loan and a credit card,
this will be counted as one application, whereas in previous years
it would have been counted as two. In 2019 we received 21,979
applications for hardship assistance in Australia
2
.
Supporting customers potentially
vulnerable to financial difficulty
Our research
1

identifies that 13% of Australian adults fall into
the lowest category of financial wellbeing and struggle to meet
day-to-day commitments, have little or no savings, often borrow
to meet every-day expenses, and have low confidence in their
money management and ability to control their financial future.
We know that these people are more likely to be experiencing
vulnerability and are at risk of financial difficulty. We also know
that there are people, who because of their life circumstances
are at risk of vulnerability.
The revised Banking Code of Practice (the Code) includes new
provisions requiring banks to ‘take extra care’ with customers
who may be vulnerable.
This year we have focused on ensuring compliance with
the Code and acting on related issues examined by the
Royal Commission.
A number of initiatives have been delivered, including:
implementation of mandatory training on customer
vulnerability for frontline and operational employees,
providing them with the skills and confidence to support
customers encountering difficult life circumstances;
developing vulnerable customer reference documents
for use by frontline employees to assist them to identify
potentially vulnerable customers; and
centralised management of customers in financial
hardship who have been affected by family and
domestic violence to ensure their situations are
handled with care by a specialist team trained with the
assistance of Financial Counselling Australia.
When a customer is experiencing vulnerability and at risk of
financial hardship, they may need to engage with multiple
service providers – from their bank to their telecommunications,
energy and water service providers. We see the value of working
with other organisations to take collective action to minimise
the impact on the customer. Our membership of the Thriving
Communities Partnership provides an avenue to develop
cross-industry initiatives to improve support for customers
experiencing vulnerability or hardship.
1.
2017 Survey of Adult Financial Wellbeing, available on https://www.anz.com.au/about-us/sustainability-framework/financial-wellbeing.
2.
Number is not comparable to previous years’ due to the change in methodology.
Seeking to reduce harm caused
by problem gambling
We have introduced a restriction on the use
of credit cards for gambling.
Gambling transactions are blocked when the customer’s card
has been utilised beyond 85% of its limit. The purpose is to
reduce harm to potentially vulnerable customers who are using
credit cards for gambling, while minimising consequences for
the general population of card users. We consulted with industry
and community groups before implementing this measure.
As at 30 September more than 149,000 credit cards have
had over 473,000 transactions (to the value of $44.9 million)
declined as a result of these restrictions.
In response to stakeholder concerns about the accrual of credit
card debt by problem gamblers we are developing a tool which
will enable our credit card holders to elect to block gambling
transactions. As part of our ongoing engagement with the
Australian Securities and Investments Commission following
their credit cards industry Report (Report 580 Credit card lending
in Australia), we have committed to implement this capability
in 2020.
These initiatives operate alongside our responsible lending
policies which are aimed at ensuring credit is provided only
to those who can afford it.
HIGHLIGHT
22
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

CASE STUDY
Rosie’s Story (CareRing)
Rosie, the primary carer for her three young
children, was referred by us to CareRing due
to ongoing debts in excess of $30,000 and
her difficult personal circumstances.
Having experienced domestic violence and suffering from
several serious health issues, Rosie was finding it hard to deal
with her finances, manage daily life and provide a stable
home for her children. Rosie was also facing eviction from her
rental property as she was several months in arrears.
A CareRing Case Worker referred Rosie to the Tenancy
Assistance and Advocacy Program (TAAP). The TAAP assisted
by negotiating with Rosie’s property provider and paying the
outstanding rent with funds provided by a CareRing partner.
With the support of her CareRing Case Worker, Rosie was able
to manage her anxiety sufficiently to take the necessary steps
towards stability and apply for the Disability Support Pension
from Centrelink.
Rosie also engaged with a CareRing Financial Counsellor
over the phone, disclosing the nature of her debts that
included a personal loan taken out to purchase a car for her
former partner, still in his possession. The Financial Counsellor
negotiated with Rosie’s creditors who, after receiving
evidence of Rosie’s medical issues, income, expenses and
successful pension application, waived the outstanding
debts. Rosie was also provided with financial literacy support
to help her to manage her money so that she does not fall
back into debt.
Now debt free, Rosie has maintained her rental payments
and will soon sign a longer term lease, providing further
stability for herself and her children.
Assistance offered to our hardship customers includes payment
moratoriums, temporarily reducing payments, debt waiver, long-
term payment arrangements, referral to a financial counsellor and
information in relation to budgeting and financial literacy. Customers
have access to a financial counsellor hotline managed by Customer
Connect, our dedicated customer hardship team, and supported by
an independent financial counsellor liaison officer. Each Customer
Connect team member receives specialised training enabling them
to deal effectively and empathetically with customers experiencing
hardship. We continue to refer customers requiring holistic support
and not just financial counselling services to CareRing.
This year we facilitated a Hardship Awareness training program for
employees in the Australian Branch Network in Western Australia
targeted at supporting customers impacted by the mining
downturn and related decline in property prices. This training will
be rolled out to the rest of our branch network in the coming year.
The Australian Banking Association supported initiative ‘Way
Forward Debt Solutions’ (Way Forward) has now been in operation
for a year. Funded initially by donations from Australia’s four major
banks, Way Forward is a registered charity providing free debt
management services to support people in financial difficulty to
return to financial stability.
Debt solutions are provided through two key services:
•advocating on the client’s behalf to establish affordable
arrangements with their creditors; and
•management of debt r
epayments though one regular payment
by the client to Way Forward, which is subsequently distributed
to creditors.
As at 30 September, we had referred 32 customers to Way Forward,
representing close to $709,000 of debt. For further information on
Way Forward refer to wayforward.org.au
.
Kildonan CareRing
We understand that customers experiencing financial hardship may
also be struggling with unemployment, a family situation, health
concern or other bills. In recognition of the need for a more holistic
approach, ANZ and Uniting (Kildonan) launched CareRing for our
customers in hardship in 2015.
Customers requiring more than financial counselling assistance
are referred to CareRing, a centralised, single point of contact
connecting customers to a coordinated range of support services
including housing support, social worker counselling, drug and
alcohol services, home energy assessments and employment
services. Clients of the CareRing program can also be referred to our
MoneyMinded program to develop their basic budgeting skills.
This year we have extended our financial support of CareRing to
deliver a pilot program for those who have experienced domestic
violence. The program provides triage support to customers
who require immediate financial assistance as a result of leaving
a domestic violence situation. Assistance offered includes family
support, drug and alcohol support, mental health support, housing
assistance and referrals to other services.
23

Managing customer complaints
Retail and small business complaint volumes increased this
year. At the same time, the performance of our complaints
handling declined. We are taking too long to respond to and
resolve customer complaints. Our Customer Fairness Advisor
is advising on our work to improve our complaints handling
processes and procedures.
Both the Australian Financial Complaints Authority (AFCA) and
the Australian Securities and Investments Commission (ASIC)
raised the need for significant improvements.
We have established a detailed action plan which sets out our
commitment to improve how we manage complaints, including:
•faster and better complaint resolution through investment in
resourcing, training, process and technology enhancements
and expert support and advice;
•implementing a public complaint management policy that is
accessible, easy to understand and clear on our intent to meet
complaint management standards;
•improving complaint recording, management and analysis,
including those complaints which are resolved at the first
point of contact; and
•establishing a systemic issues management capability to
identify, investigate and manage potential systemic issues
arising from complaints.
We have also set a target to complete a review of our customer
complaints policies and standards in Australia by the end
of 2020 to assess the performance of our internal dispute
resolution (IDR) processes.
Listening to our customers and responding to their complaints in a timely,
transparent and fair way is key to maintaining their confidence and trust in us.
Dispute resolution principles
TARGET
Implement new Dispute Resolution Principles by 2019 (Australia).
PERFORMANCE
New Dispute Resolution Principles, incorporating model litigant
guidelines, have been released. The principles apply to our
people and our representatives when managing individual
retail and small business customer complaints, disputes and
litigation in Australia.
In April 2019 we released our dispute resolution principles to ensure
customer complaints and legal matters are handled fairly and meet
community expectations. The principles provide a template for
employees and external lawyers involved in any disputes, complaints
or legal matters with individual retail and small business customers to
act fairly and as model litigants.
The principles have been written in plain English to make them easily
accessible and understandable to all parties involved in a relevant
dispute resolution process. They will continue to evolve with experience
and input from interested parties such as community groups.
Complaints management
We encourage our frontline employees to resolve complaints on
first contact. If this is not possible the complaint can be escalated
to the relevant IDR team. Alternatively, our customers can complain
directly to the IDR team. A dedicated specialist will then investigate
the complaint and seek to resolve it with the customer. If a customer
is not satisfied with the proposed resolution of their complaint, they
may escalate their complaint to our Customer Advocate or AFCA in
Australia, or the Banking Ombudsman Scheme (BOS) in New Zealand.
Data relating to complaints is available on pages 79–80.
Australia – retail and commercial customers
Retail and commercial complaint volumes increased 12% from 2018.
Issues generating the most complaints included product interest rates
and fees, service quality, activist complaints (eg. fossil fuel funding and
live animal export trading) and dissatisfaction with our decision to
cease offering banking services within Australia Post outlets.
The percentage of complaints resolved within the first day of
receipt decreased to 36% (39% in 2018); however, the percentage of
complaints resolved within five and 21 days of receipt increased to
65% (61% in 2018) and 87% (84% in 2018) respectively.
As a result of the sale of our OnePath pensions and investment
business to IOOF Holdings Limited, and the sale of our life
insurance business to Zurich Financial Services Australia, we have
transitioned the management of complaints relating to lenders
mortgage insurance, share investing, general insurance distribution
and our financial planning businesses to our Australia Retail and
Commercial business.
24
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

In 2019 we received 2,832 complaints relating to the continuing
operations of Wealth, a decrease of 55% from 2018. This decrease is
largely attributable to the resolution of technical issues experienced
by customers when we changed our online share trading platform
in September 2018, resulting in a spike in complaints that month.
Excluding the complaints about our share investing business,
complaints associated with lenders mortgage insurance, general
insurance distribution and our financial planning businesses
increased from 943 in 2018 to 1,484 in 2019. This increase has
been driven primarily by complaints relating to disputed sales and
incorrect processing or information provision at point of sale.
Complaints relating to our divested Wealth Australia businesses
decreased by 6% from 2018. Key complaint drivers included the Royal
Commission’s examination of the `fee for no service’ issue, repricing of
insurance products and the sale of our Wealth businesses.
New Zealand – retail, business banking
and wealth customers
Complaint volumes increased 26% from 2018. Complaints relating
to a range of customer service issues accounted for nearly 43% of
total complaints received, with account fees being the single most
complained about issue. Credit and debit cards, transaction accounts
and home loans were the most complained about products. We
also observed a high number of transaction disputes and fraud
complaints attributed to online scam activity, the use of remote-
access software and fraudulent international money transfers.
The percentage of complaints resolved within the first day of
receipt increased to 79% (78% in 2018); however the percentage of
complaints resolved within five and 21 days of receipt decreased to
92% (93% in 2018) and 94% (consistent with 2018) respectively.
We resolved 92% of customer
complaints in New Zealand
within five days of receipt.
ANZ Customer Advocate
The Customer Advocate works with customers and ANZ to facilitate
fair complaint outcomes.
Retail and small business customers in Australia can ask AFCA or the
Customer Advocate to review their complaint if they are not satisfied
with the outcome of our dispute resolution process.
The volume of reviews completed by the Customer Advocate in
2019 increased 22% from 2018, with the majority of reviews relating
to disputes about general banking products (eg. home loans, savings
accounts and credit cards), with a much smaller number relating to
insurance, financial advice and investments. Data regarding volumes
and outcomes is included on page 80.
CASE STUDY
Maladministration
In 2010, Mr and Mrs Adams* obtained a loan
of $352,200 over a 30-year term, with the
primary purpose of refinancing an existing
loan and renovating their home.
The customers were reliant on a government pension and
planned to sell the newly renovated property quickly and
downsize, as they would not be in position to afford the
repayments in the longer term.
Mr and Mrs Adams unsuccessfully marketed their property
over a four-year period, during which time their loan fell
into arrears. We agreed to their request for a three-month
repayment moratorium. While the property sold during
this period, they believed a higher price would have been
achieved had they been given further time to sell and raised
this concern with the Customer Advocate.
The Customer Advocate’s review concluded that, given the
Adams’ efforts to sell the property over the previous four
years, the customers obtained the best possible price at the
time. The Customer Advocate was unable to identify any
breach of duty or obligation by us in refusing further time for
the customers to sell their property.
The Customer Advocate did, however, observe that the
customers were reliant on a pension income and, as part of
the review, considered whether we had complied with our
responsible lending obligations.
It was found that we should have made further enquiries to
clarify Mr Adams’ income given the declared income included
the full government pension and a salary of $2,193 per
month. If these enquiries were made, it is likely that we would
have become aware that Mr Adams was only receiving the
government pension and had no further income.
Mr and Mrs Adams accepted the Customer Advocate’s
recommended settlement of $106,000.
*Names have been changed.
X
25

Improving customer experience
through digital solutions
The popularity of digital transactions via ANZ App
or Internet Banking continues to increase in 2019
The proportion of retail product purchases
completed over digital channels
The use of mobile payment devices continues to increase with
the number of wallet transactions, such as Apple and Google Pay,
increasing from 64.2 million in 2018 to 120 million in 2019 in Australia.
Digitally active customers using
ANZ App or Internet Banking
AUSTRALIANEW ZEALAND
3.6 million
(up from 3.5 million in 2018)
901 million
(up 17% from 2018)
30%
(up 25% from 2018)
1.5 million
(up from 1.4 million in 2018)
150 million
(up 10% from 2018)
26%
(up 21% from 2018)
2019 digital performance highlights
26
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

Digitisation making bank guarantees
faster and more secure
Together with two of our domestic peers, and
IBM and Scentre Group, we have developed
a platform that enables the complete
digitisation of bank guarantees.
Bank guarantees, often required as part of a retail property
lease, have historically been issued manually on paper and
relied on physical delivery, storage and verification. Digitising
the process reduces the risk of fraud for all parties involved,
decreases the potential for errors and significantly increases the
speed of execution.
The platform, called Lygon, uses blockchain technology –
allowing secure communication between authorised parties on
an ‘immutable ledger’ (a blockchain term which essentially means
that, once entered on the ledger, a record cannot be changed).
Currently in the pilot phase of development, initial findings
suggest that the platform has the potential to reduce the time
it takes to issue a bank guarantee from up to a month to on, or
around, the same day.
We have developed new features in the ANZ App to help our
customers work towards their financial objectives by setting and
tracking goals. Currently in the pilot phase, new features include
data-driven ‘nudges’ (messages) to customers via the app, with
milestones and tips to help them meet their savings goals. We
rolled out PayID Registrations and Payments for eligible ANZ App
users, meaning customers can now enjoy faster payments in less
than 60 seconds. We introduced clearer transaction descriptions
for credit and debit card customers enabling identification of
transactions through relevant merchant details such as trading
name and location. We have also given our customers greater
control over how we contact them for marketing offers and
promotions through the new ‘Offers & Promotions Preference
Centre’, available in Internet Banking.
We are seeking to ensure our products and services are inclusive
and accessible to everyone. Advances in technology provide
opportunities to create or improve accessible services for our
customers with disability. This year we improved the accessibility
of the ANZ App for customers with vision impairment through
enhanced ‘VoiceOver’ and ‘TalkBack’ efficacy. Using spoken word,
vibration and other audible feedback, customers know what is on
their screen, what they are touching, and the functions that can
be performed. Refer to pages 58–59 for further information on our
commitment to accessibility.
1.
Guarantees are a mechanism to pay a stated or maximum sum of money to a named party (beneficiary) on presentation of a written demand for payment, in the event of non-performance
or default by a party in the underlying relationship.
HIGHLIGHT
Less than 10 percent of our customers’ banking transactions
occur in a bank branch.
This year, we reduced the number of branches by 52 in Australia
and 15 in New Zealand. Customer interactions in branch now
tend to be focused on more complex banking requirements
such as home or business loans.
We recognise the impact that branch closure may have on
our customers, especially small business customers with cash
handling needs. Our decision in 2018 to no longer provide
banking services through Australia Post outlets has also had
an impact on customers and we have been working with
customers affected by closures. For example, we have helped
around 100 customers by providing them a cash pick up service
with Armaguard as an interim measure and more than 200
customers continue to use a cheque mailing service. A small
number of customers have decided to leave ANZ and we have
helped them with the transition.
We continue to explore opportunities to use advanced technologies
to improve our products and services. This year we applied machine
learning to perform pre-checks on nearly 90% of incoming requests
for limits, terms and facility conditions for Institutional Trade
Guarantees
1
. The benefits include:
•faster transaction times for customers, with an average of
20 minutes saved per transaction;
•a 40% improvement in the amount of time it takes us to respond
to customer requests; and
•an estimated reduction in printing of approximately two million
sheets of A4 paper.
Open banking regulation came into force at the start of July in
Australia, supporting the sharing of generic product data with third
parties, with the aim of making it easier for customers to compare
products. We are now working towards the implementation of Stage
2 of Open Banking in early 2020 – the application of the Consumer
Data Right legislation. This will enable consumers to access data
about themselves and share it with accredited third parties of their
choice. For further detail on Open Banking, refer to page 20 of the
Annual Report, available on anz.com/annualreport.
27

Cyber security
CASE STUDY
Simplifying cyber security
This year we ran ‘Simplifying Cyber’, a series
of interactive and educational 45-minute
sessions designed to enable ANZ employees
to ‘get on top’ of their cyber security.
The sessions were provided face-to-face to more than 9,000
employees, with content personalised to increase relevance
and make cyber security easy to understand and action.
Of those who completed the post-event survey, 99% felt
empowered or better equipped to get on top of their cyber
security and 96% would recommend the session to a friend or
work colleague. The feedback also revealed that employees were
eager to continue to strengthen their cyber security abilities.
The effectiveness of the Simplifying Cyber sessions was
reinforced by a subsequent shift in our Security Behavioural
Index (SBI) – a single indicator between 1 and 10 measuring
employee behaviours that impact information protection
and cyber compromise. Following the sessions we noted an
improvement in SBI demonstrating greater cyber security
awareness and ability.
The Simplifying Cyber sessions have since been modified
for ANZ branch and small business presentations. We have
also provided a number of ‘train-the-trainer’ classes to ensure
our people are equipped to spread the ‘simplifying cyber’
messaging to our customers and the community.
Our focus this year has been on:
protection – to prevent unauthorised access to
ANZ systems and information;
detection and response – to identify successful attacks
quickly, assess the impact, remediate the damage, and
notify key stakeholders; and
education of employees and customers – to build
the necessary skills and behaviours to keep ANZ and its
customers secure.
We seek to safeguard our customers’ money and personal information.
We do this by striving to be a leader in threat intelligence capability
and information sharing, regularly engaging with law enforcement,
government, global peer banks and major security vendors. Our cyber
security team works closely with industry and research organisations
to seek to ensure we have the ability to detect, respond and recover in
the event that a cyber threat becomes reality.
While technical controls are important, people are our first line of
defence. Educating our employees and customers is key to fostering
a security-centric culture within the bank and, more broadly, across
the community.
This year we produced a number of education materials, including
videos and articles, designed to make cyber security easy to
understand and implement for our employees, customers and
the community. Many of our cyber security team members also
volunteer their time to build community and industry cyber security
awareness through regular speaking roles at schools, universities and
community groups.
Cyber security is everyone’s responsibility, and our educational
campaigns such as our ‘Protect your Virtual Valuables’ campaign
and internal ‘Simplifying Cyber’ workshops have proven successful
in informing and empowering employees, customers and
communities on how to play their part.
CASE STUDY
Protect Your Virtual Valuables
During the year we launched ‘Protect Your
Virtual Valuables’, a campaign encouraging
people to protect their online valuables as
they would their physical ones – such as
locking their house or car.
Central to the campaign was the introduction of ‘PACT’ – four
simple steps people can take to improve their cyber security:
PAUSE before sharing personal information
ACTIVATE two layers of security with Two Factor Authentication
CALL OUT
suspicious messages
TURN ON automatic software updates
Our employees and customers were encouraged to make
a PACT to protect their virtual valuables through a series of
speaker events and a national media program.
We also released a four-part digital video series across social
media to both employees and customers. Using simple
language and wit, as opposed to ‘scare tactics’, the videos
aimed to disrupt people’s traditional view of cyber security by
demonstrating how simple it is to start adopting safer online
habits. The series reached 72% of ANZ’s Facebook community
and 82% of our YouTube followers.
We have invested heavily in our cyber security capability, and are in a strong
position to keep our systems, data and customers safe from the increasing
pace, scale and sophistication of cyber attacks.
28
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

Data protection
We want our customers to feel confident when entrusting us with their data.
The importance of data protection is in sharp focus, with highly publicised
data breaches happening around the world over the last 12 months.
In response, governments are increasingly strengthening or enacting
regulatory and legislative requirements to protect their citizens’ data.
These changes have the capacity to impact ANZ’s operations.
Privacy Month
In early 2019 we held our inaugural Privacy
Month, a campaign focused on increasing
employee awareness and protecting our
customers’ privacy.
The campaign highlighted increasing customer concerns
about how their personal information is being collected,
used and shared, and what employees can do to mitigate
the risk of a data breach. Employees were challenged to
consider the customer perspective and to understand that
a loss of personal information is not seen just as ANZ’s data
loss, it has the potential to impact a customer’s personal life.
Awareness sessions for employees focused on the impact
of the Open Banking regime on privacy rights and
included training on the European General Data Protection
Regulations. This training is mandatory for our European,
United Kingdom and Institutional employees and optional
for all others.
As part of the campaign we launched our new Customer
Privacy Centre on anz.com, providing customers with a
simplified Privacy Policy and making it easier for them to
understand how we collect, use and share their personal
information.
Protecting customer information
is absolutely integral to our
brand, to our integrity, and what
our customers expect from us.
Our Enterprise Data Governance (EDG) team works proactively to
ensure that ANZ policies and standards for the collection, storage,
use, disclosure, transfer, retention and disposal of information are
compliant with legislative requirements in the countries in which
we operate. The team has Group-wide oversight, collaborating
with divisional data governance and compliance teams to drive
improvements in data quality and management, and to monitor and
report on compliance with ANZ policies and regulatory requirements.
We have refined our data breach processes in line with the Office
of the Australian Notifiable Data Breach Scheme and the European
Union EU General Data Protection Regulation requirements. These
inform a centrally driven and consistent approach to how we
respond to data events, assisting employees to:
•make an initial assessment as to whether there is a possible risk
of serious harm to the individuals affected;
•determine whether a data breach has occurred;
•report the breach to the relevant internal stakeholders for further
investigation; and
•ensure agreed actions for remediation are undertaken by the
appropriate team and monitored closely until completion.
HIGHLIGHT
29

Financial crime
We have teams of experts that act swiftly and collaboratively to manage threats
posed to our customers and the community by money launderers, financial
supporters of terrorism, fraudsters, sanctions evaders and other perpetrators of
financial crime. We work with regulators, security and law enforcement agencies
to deter, discover and disrupt financial crime.
Employees and contractors are required to undertake annual
training to ensure awareness and understand their role in preventing
fraud, bribery, corruption, money laundering, terrorism financing
and sanctions.
We work in partnership with industry, government and other
organisations to minimise, disrupt and prevent the impacts of
financial crime more broadly across the community. We have
supported International Fraud Awareness Week and Australia’s
National Scams Awareness Week. We partner with ID Care, an
Australian and New Zealand not-for-profit charity dedicated to
support the victims of identity and cyber concerns.
In addition, we have been an active member in numerous
industry groups, including Fintel Alliance Scams working group;
Financial Coalition Against Child Pornography and Future Financial
Intelligence Sharing.
Fraud
The increased use and complexity of technology used by
fraudsters increases the need for a swift and effective response to
emerging threats.
Our approach to fraud risk management is focused on proactively
identifying fraud to minimise the occurrence and its consequences
to customers, shareholders and employees.
Our Fraud Policy and Requirements establish minimum standards
for the prevention, detection and investigation of fraud.
The policy outlines each person’s responsibilities to prevent
and detect fraud and how to report suspected or actual fraud.
The policy directs that all instances of fraud (whether internal or
external) must be reported in accordance with defined internal
reporting requirements.
The implementation of the policy is supported by requirements
including the assessment of fraud risk, measurement against a
defined risk appetite, and the use of technology and controls to
detect and prevent fraud. The requirements also detail the standards
for investigating incidents, including those involving employees.
We use advanced analytical
and detective systems to
monitor and detect suspected
fraudulent behaviour.
We also provide customer education and awareness on common
fraud scenarios and we continue to develop and implement better
ways to secure customer interactions with us. For example, we have
been working with aged care providers to raise awareness in relation
to fraud and scams targeted at elderly persons.
30
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

Anti-money laundering and
counter terrorism financing
Our Anti-Money Laundering and Counter Terrorism Financing
Program (AML/CTF Program) establishes minimum standards,
guiding and directing our Group-wide approach to detecting
and deterring money laundering and terrorism financing (ML/TF)
activities. Risk assessments are completed both at the enterprise
level as well as country level to identify, manage and mitigate ML/TF
risk across the organisation.
We apply mandatory standards to customer due diligence.
Verification of identity is undertaken using independent and reliable
documents or electronic data. Customers identified as posing a
high risk of money laundering or terrorism financing are subjected
to enhanced due diligence measures and monitoring, senior
management review and compliance approval.
We undertake monitoring to identify transactions that appear to
be abnormally complex, unusual or have no apparent economic or
visibly lawful purpose. Transaction monitoring enables us to identify
and manage potential money laundering or terrorism financing.
Sanctions compliance
Our Sanctions Compliance Program establishes minimum
standards, guiding and directing our Group-wide approach to
meeting our sanctions obligations. Risks are assessed to identify,
manage and mitigate the sanctions risk across the organisation.
Customer relationships and activities that pose a higher sanctions
risk are subject to enhanced due diligence measures, monitoring
and approval.
Anti-bribery and anti-corruption
Our Anti-Bribery and Anti-Corruption (ABAC) Policy prohibits
employees and contingent workers from engaging in activity that
constitutes bribery and corruption, and puts in place a framework
to ensure that bribery and corruption risks within ANZ’s business
are properly identified, mitigated and managed. The ABAC Policy
defines unacceptable behaviour and activity relating to bribery and
corruption and the implementation of the policy is supported by
detailed requirements which serve as a single and consistent anti-
bribery and anti-corruption standard across the bank.
As part of the prevention, detection and management of bribery
and corruption issues, mandatory training is conducted throughout
ANZ, with additional role-specific training tailored to particular
roles. Regular risk assessments and monitoring activities are also
conducted to identify and manage bribery and corruption risks.
The ABAC Policy mandates thresholds and recording systems for
gifts, entertainment or sponsored travel given or received. The
framework requires a risk-based approach to the development and
management of key anti-bribery controls, including third-party and
employee due diligence, and outlines the approach with respect to
donations, sponsorships, risk assessments, record keeping, reporting
and training.
Update on actions to prevent
financial crime
Following shareholder queries, we recently provided
an update on the actions ANZ has taken to assist in the
prevention of financial crime in the Australian banking
system. We also confirmed ANZ is not aware of any
impending litigation from the Australian Transaction
Reports and Analysis Centre (AUSTRAC).
In a statement released to the media, ANZ Chief Risk Officer
Kevin Corbally said: “Protecting the Australian banking
system from criminal use is one of our most important roles
and one all of our people are trained in and take incredibly
seriously.”
“ANZ has been working with AUSTRAC, law enforcement
and the broader industry to detect, prevent and disrupt
serious financial crimes. This includes money laundering,
terrorism, human trafficking, tax evasion and child
exploitation.”
“Given recent issues identified by AUSTRAC within the
industry, we have been reviewing the systems and
processes we use to transfer money to ensure we are
reporting the information required by regulators. While the
review is ongoing, it has found no material issues to date,”
Mr Corbally said.
In March 2017, ANZ joined the Fintel Alliance, a public-
private partnership led by AUSTRAC to combat serious
financial crime, including child exploitation.
31

Respecting human rights
The Standards are embedded in our business activities via
our group-wide policies, including our Code of Conduct, our
internal training programs and our customer and supplier
screening tools and policies.
Managing our human rights risks
We review our major business customers regularly and seek to
understand how they manage their human rights risks. There
are a range of tools to assist with this review, including due
diligence and screening, dialogue with customers, their ESG
reporting, stakeholder engagement and assessment of publicly
reported allegations. Our review informs discussions with
customers and enables us to consider whether we may have
contributed to, or are directly linked to any actual or potential
human rights impacts.
We take the following steps when investigating our business
customers’ potential human rights impacts:
•under
take a desktop review of allegations using independent
third party databases that collate media reports and other
sources of information (government, union, NGO reports);
•engage a cross-disciplinary team of internal specialists and
bankers to consider our response;
•consider the customer response, including through
engagement with the business to examine how they have
responded to the issue/s and met stakeholder expectations
with regard to responsiveness, transparency and actions; and,
if appropriate,
•escalate concerns to relevant executives within the bank
including the Ethics and Responsible Business Committee, led
by the CEO.
In instances where our Standards have not been met, our
preference is to work with our business, supporting them to
improve with an agreed specific and time-bound plan. We
follow-up on progress and public reporting against such plans.
Where a customer does not, over time, meet our expectations of
performance improvement, we consider exiting the relationship.
CASE STUDY
Applying our Standards
We were provided with an opportunity to
consider financing a large industrial park
development in a regional developing economy.
The proposed site was being used for farming. The company
had obtained all necessary legal permits and did not have any
significant outstanding allegations regarding management of
similar developments.
Our Land Acquisition Statement and Human Rights Standards
explicitly discuss the importance of appropriate land acquisition,
including potential economic resettlement. Economic
resettlement does not involve physical displacement but it
can lead to permanent or temporary “loss of assets or access
to assets that leads to loss of income sources or other means
of livelihood.”
1
For example, a household may have a portion of
their land acquired for the development of an access road.
The bank conducted an initial review of the financing request
with internal ESG specialists. After consideration, we decided
not to participate in the financing of the project. One of the
contributing factors for the decision not to proceed was the
complexity of assessing whether the potential resettlement

and other social and environmental issues were aligned with
our standar
ds.
1.
International Finance Corporation performance standard 5, 2015.
We review our major business
customers regularly and seek to
understand how they manage
their human rights risks.
Our Human Rights Standards reflect international norms for responsible
business conduct including the United Nations Guiding Principles on
Business and Human Rights (UN Guiding Principles).
32
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

Our salient human rights risks
When we established our Standards, we undertook a process
to identify the most significant negative human rights impacts
we could potentially cause or contribute to through our own
activities and business relationships. These were reviewed with
an independent expert. These are our salient human rights risks
and they include:
•saf
ety and security of our people;
•labour rights, including modern slavery;
•privacy and consumer protection;
•corruption and bribery;
•environmental protection; and
•land access and rights.
We review our salient risks to ensure they remain ‘fit for
purpose’ through both internal and independent expert
reviews and taking into account stakeholder feedback.
What is a salient human right?
A company’s salient human rights issues are those rights most
at risk due to the company’s activities or business relationships.
The nature and operations of a particular company will
influence an assessment of its salient risks. A bank’s risks will
differ from a mining or forestry company though some will
be common to each – for example labour rights will typically
feature in every company’s list of salient risks.
Our progress in 2019 and focus for 2020
This year we have focused on improving our human rights
performance in:
•our lending policies, which now require our customers to
have grievance mechanisms in place, especially for large
infrastructure projects;
•our due diligence scr
eening assessments for business
customers, which were strengthened. For example, seeking
to ensure that our customers in higher-risk sectors respect
labour rights, including rest and meal breaks; and
•staff training
, which continues to be provided to ensure
compliance with our Social and Environmental Risk policy
and our Standards.
In 2020 we plan to review and improve our human rights policy
and processes and will seek input from a range of internal and
external stakeholders.
We will also prepare our first Australian Modern Slavery Act
statement in 2020, aligning this with our existing UK Modern
Slavery Act reporting.
Update: Phnom Penh Sugar
The final report on a complaint against ANZ under the
Organisation for Economic Co-operation and Development’s
Multinational Enterprise Guidelines was released during the
year. The complaint was made by NGOs in 2014 about our
involvement with the Phnom Penh Sugar Company Co. (PPS).
The report recommended we take steps to improve our due
diligence, promote internal compliance with our Standards,
and establish a grievance mechanism to support the effective
operation of our Standards.
We have made a number of changes, including to improve our
human rights due diligence in line with the recommendations.
For example, we now expect our customers to establish
effective, transparent grievance mechanisms for communities,
especially for large projects.
We continue to participate in discussions on this matter with
the relevant stakeholders.
Our human rights grievance processes
Stakeholders – including our employees, customers, suppliers and
affected communities – need to be able to raise concerns regarding
potential human rights impacts.
We provide a number of channels for grievances, including:
•Employees: detailed complaints processes are available on our
intranet or ‘people assist’ phone service, including steps and
timeframes for complaint resolution on matters such as alleged
bullying or harassment. Our Whistleblowing policy is an important
mechanism for employees who feel unable to raise their concerns
via their line manager (refer to page 15 for further detail).
•Retail and small business customers: can access a customer
complaint resolution process, including our Customer Advocate
if a customer is not satisfied with the outcome of our internal
dispute resolution process (refer to pages 24–25 for further detail).
•C
ommunities: our existing practice – access to a senior executive
– will be subject to a major review in 2020.
Modern Slavery Act – Australia
The Modern Slavery Act (MSA) was passed into legislation in
Australia on 1 January 2019. We will respond and publicly release
our first statement as required prior to March 2021.
We are currently assessing potential risks and gaps in our processes
and policies; identifying possible improvements in our due diligence
processes; and seeking to build awareness internally of human rights
impacts arising from our business activities, including those relating
to modern slavery.
33

Supporting social enterprises
We have a responsibility to facilitate social and economic
growth in our communities through collaboration with our
suppliers. This year we joined Social Traders, an organisation
helping to create jobs for disadvantaged Australians by linking
business and government to social enterprises. In our first year
of membership we spent over $2 million with member firms.
In New Zealand we have joined Akina as a member of the Buyer
Group through which we can access a wide range of certified
social enterprise suppliers as we continue to explore ways to
increase our engagement with social enterprises.
Managing ESG risks
in our supply chain
A key way in which we seek to minimise those impacts is
through our Supplier Code of Practice (SCOP). The SCOP applies
to all suppliers across our operations and outlines our minimum
requirements on human rights, workplace relations, workplace
health and safety, ethical business practices and environmental
management. We will be undertaking a review of our SCOP in
2020 to ensure it meets legislative requirements and leading
practice, including requirements under the Modern Slavery Act in
Australia. Further information on our SCOP is available on
anz.com/cs.
The way we ensure suppliers conduct their business in
accordance with our expectations is through managing their
adherence to the SCOP via contractual commitment. We request
an annual attestation to adherence to the SCOP for our major
suppliers managed at Group level.
The supplier screening program utilises a third-party tool
which screens suppliers, including subcontractors and named
fourth parties, through a lens of 28 environmental, social and
governance issues, including human rights.
We have publicly released statements under the UK Modern
Slavery Act since 2016 and we are consulting with groups such as
the United Nations Global Compact to ensure we are prepared
to meet the obligations for the new modern slavery legislation
in Australia. In anticipation of this we have refreshed and rolled
out our training for procurement managers to ensure they
understand what modern slavery is, where potential risks to ANZ
may occur and how to minimise the likelihood of occurrence. We
have also extended our whistleblower program, which already
includes suppliers and contractors, to cover subcontractors as
well as family members and dependants of our suppliers.
1.
A small business supplier is defined as one with whom our spend is less than $1 million in a 12-month period.
We recognise that late payment of invoices can have a significant
effect on the health of businesses and we are a signatory to
the Business Council of Australia’s Supplier Payment Code. As a
signatory, we are committed to paying eligible Australian small
business suppliers
1
within 30 days of receiving a correct invoice. Our
aim is to take far fewer days than that and, on average, payment is
made in around 16 days from receipt of the invoice. Purchasing and
invoicing guides, available on anz.com/cs, provide our suppliers
with the necessary information to issue invoices in accordance with
our requirements.
In Australia in 2019 we processed an average of 58,000 payments
to suppliers per month (including purchasing card transactions),
with small business suppliers making up approximately 55% of
these transactions.
We recognise that our procurement activities have social and
environmental impacts.
We screen suppliers through
a lens of 28 environmental,
social and governance issues,
including human rights.
34
ANZ 2019 ESG SUPPLEMENT
Fair and responsible banking

Responsible
business lending
The Policy incorporates social and environmental considerations into
lending decisions for all customer sectors. Relationship managers
are required to examine and consider a broad range of social and
environmental questions before the bank enters into a relationship
with any major business customer. Under our credit policy we
typically review our business customers annually, including the
consideration of relevant social and environmental issues.
The Policy incorporates our Human Rights Standards, including our ‘zero
tolerance’ for improper land acquisition and involuntary resettlement.
To ensure the Policy remains ‘fit for purpose’ we review it annually,
considering changes to customer practices, international standards,
emerging social and environmental issues and stakeholder
expectations.
Due diligence
All major business customers undergo regular screening using
our social and environmental risk screening tool. We expect our
customers in all sectors to implement appropriate stakeholder
engagement strategies and plans and we have included this
consideration in our screening tool. We continue to apply a
strengthened due diligence for thermal coal extraction and
associated transport and power generation customers.
Where a business’ practices may not be consistent with our policies,
we work with the customer to understand the circumstances and,
where necessary, identify specific and time-bound improvement plans.
If customers are unwilling to adapt their practices in an appropriate
timeframe, we may decline further financing or exit the relationship.
We monitor the social and environmental risks of our business
customers through our monthly ‘Reputation Risk Radar’. Notable
publicly reported incidents and allegations are referred to our regular
risk management meetings that consider social, environmental,
governance and credit risks. We also rely on regular dialogue between
relationship managers and their customers to alert us to issues.
Consideration of emerging social issues
We regularly consider both current and emerging ESG issues to
determine whether we should review our policy and lending
approach. There are some industries we restrict our involvement
with even though we may not have a specific policy. This year we
restricted retail customers’ use of ANZ credit cards for gambling in
order to reduce impacts on customers experiencing vulnerability –
see case study on page 22.
Our Board Ethics, Environment, Social and Governance Committee
and our executive Ethics and Responsible Business Committee also
considered a range of emerging social issues that, through our lending
to customers, could result in risks if not managed appropriately. Issues
considered this year included animal welfare, obesity, aged care, data
privacy, emerging technologies and genetic data.
We update the committees at least annually on these issues (and
others as they emerge).
CASE STUDY
Engaging with stakeholders
on emerging social issues
Animals Australia (AA) has been
campaigning for banks to cease business
with companies engaged in live animal
export and other intensive farming practices.
We received over 2,000 complaints in the first six months of
2019 supporting AA’s position, all of which we responded to
with an offer to discuss further.
We met with AA and confirmed that, following the expiry of
our 12-month drought relief measures at the end of 2019,
we will introduce incentives for farmers to incorporate
‘sustainability’ initiatives in their practices. These initiatives
could include drought resilience, animal welfare, sustainable
farming practices and efficient resource management.
Our agribusiness team in Australia is also working to improve
the awareness and understanding of staff with regard
to animal welfare industry standards. In 2020 we will be
introducing face-to-face training for our agri-bankers, which
includes a module on animal welfare and industry standards.
We seek to assess our business customers’ social and environmental risks through the application of our
Social and Environmental Risk Policy (the Policy) and accompanying ‘sensitive sector’ requirements for:
WaterEnergyExtractive
industries
Forestry
and forests
Military
equipment
Hydropower
35

1.
Under the EP, projects are categorised as ‘A’, ‘B’ or ‘C’ based on the magnitude of potential social and environmental risks and impacts. Category B projects are those with potential limited
adverse social and environmental risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
Employee training
We have a range of social and environmental training programs
to educate our employees on our policies and standards and how
they are applied in practice. This year we expanded the scope of
our online Social and Environmental Risk training to our research
and analytics team in Bengaluru, India. This team helps to screen
our large business customers on their social and environmental
performance as part of the credit assessment process. The training
covered our sensitive sector requirements and our approach to
human rights. This training is mandatory for new employees able to
make credit decisions for business customers.
Equator principles
The Equator Principles (EP) is a risk management framework
adopted by ANZ for determining, assessing and managing social
and environmental risks in major projects such as mines, windfarms
and pipelines. The EP provide a minimum standard for due diligence
and monitoring to support responsible decision-making in four
financial products: advisory services, project finance, project-related
corporate loans and project-related bridge loans.
We regard the EP as complementary to our sensitive sector
requirements and our Social and Environmental Risk Policy.
When determining whether a project complies with the EP, a social
and environmental due diligence report prepared by an independent
expert is typically commissioned. Matters we examine include:
•client capacity and commitment to manage environmental and
social issues;
•the scope of the transac
tion which includes the value of the loan
and whether it is specific to a project or for general corporate
purposes;
•how an Environmental Impact Assessment (if required) will be
addressed through the company’s Environmental Management
System; and
•the level of community concern regarding potential impacts of
the projects, for example on water or land and effectiveness of the
company’s stakeholder engagement in response to any significant
community concern.
We will not provide finance to projects where the customer will not,
or is unable to, comply with EP. Information on our 2019 project
finance advisory services and transactions is available on page 69.
In recent years the EP have been under review by the Equator
Principles Association and we have actively participated in this
process. An updated version, EP4, was recently adopted by the
Association and will apply from 1 July 2020. The key changes are:
•r
evised approach to Free, Prior and Informed Consent (FPIC) in
Designated Countries;
•str
engthened human rights commitments;
•r
ecognition of the Paris Agreement and introduction of the
climate change risk assessment for physical and transition risks,
aligned with the risk categories of the Financial Stability Board
Taskforce on Climate-related Financial Disclosures; and
•a r
educed threshold for project-related corporate loans and
named reporting of these transactions.
For further information refer to: https://equator-principles.com/ep4.
CASE STUDY
Equator Principles –
Metallurgical coal mine
In 2019 we participated in the funding of
the development and operation of a new
metallurgical coal mine in Australia.
On initial assessment we determined that the project would
need to be assessed against the EP.
The project was categorised as ‘B’ under EP
1
. Accordingly an
independent consultant was appointed to undertake a social
and environmental due diligence report.
Issues identified were discussed with the client and
commitments were included in the loan documentation to
ensure that the mine would be constructed and operated in
accordance with local laws, our Human Rights Standards and
social and environmental management plans.
CASE STUDY
Equator Principles –
Coal seam gas project
In 2018 we were approached to fund a coal
seam gas extraction project in Queensland.
The project had achieved government approvals however,
we required the project be subject to an EP due diligence
assessment.
The project was categorised as a ‘B’

under the EP
1
, and
therefore triggered the requirement for an independent
report to be prepared to review all social and environmental
issues that could arise during construction and operation.
Issues such as water management, land access and
stakeholder engagement were seen as key for a project of
this nature. We therefore required commitments to ensure
these issues were effectively managed through appropriately
designed and implemented management systems and plans.
36
ANZ 2019 ESG SUPPLEMENT
Responsible business lending continued
Fair and responsible banking

Supporting the transition to
a net-zero carbon economy
Climate-related financial disclosures
This is the third year we have reported using the
recommendations of the Financial Stability Board Taskforce on
Climate-related Financial Disclosures (TCFD).
For further detail on our approach to climate change and
our ability to manage the associated risks and opportunities,
refer to our pages 48–50 of our 2019 Annual Report and our
standalone 2019 Climate-related Financial Disclosures, available
on anz.com/annualreport.
Our Climate Change Statement is available on anz.com/cs.
Sustainable finance opportunities
The provision of finance to support the transition is essential if
the objectives of the Paris Agreement are to be met.
TARGET
Fund and facilitate at least $15 billion by 2020 towards
environmentally sustainable solutions for our customers,
including initiatives that help lower carbon emissions, improve
water stewardship and minimise waste
PERFORMANCE
We have funded and facilitated $19.1 billion in
environmentally sustainable solutions such as ‘green’
buildings, low emissions transport, green bonds,
renewable energy and efficient irrigation, since 2015,
exceeding our target ahead of time
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
7.2 By 2030, increase substantially the share of
renewable energy in the global energy mix.
9.1 Develop quality, reliable, sustainable and resilient
infrastructure, including regional and transborder
infrastructure, to support economic development
and human wellbeing, with a focus on affordable and
equitable access for all.
9a Facilitate sustainable and resilient infrastructure
development in developing countries through
enhanced financial, technological and technical support.
15.2 By 2020, promote the implementation of
sustainable management of all types of forests, halt
deforestation, restore degraded forests and substantially
increase afforestation and reforestation globally.
This year we funded and facilitated $7.6 billion in
environmentally sustainable solutions, across 61 transactions.
The majority of these transactions were in the green building
and renewables sectors (49% and 38% of total transactions
respectively), with the remaining transactions in sectors
including sustainable forestry, conservation, water, and transport.
Our communities and customers could be impacted by climate
change directly through increasing severity of weather events
(‘physical risks’), or through legislative, regulatory or policy responses,
such as carbon pricing and climate change adaptation or mitigation
policies (‘transition risks’). While we are aware of the transition and
physical risks of climate change, we also understand it can present
significant opportunities.
We are taking action to support the transition to a net-zero carbon
economy, focusing on:
1.
providing finance and advisory services for activities such as
energy efficiency improvements, low carbon energy generation,
resilient infrastructure and carbon abatement;
2.
helping our business customers to transition by encouraging
them to identify their climate change risks, create transition plans
and report publicly on their progress; and
3.
r
educing our own impact by managing and reducing our
environmental footprint.
We have funded and facilitated
$19.1 billion in environmentally
sustainable solutions since 2015.
We are working with our customers to support the transition to a
net-zero carbon economy.
37
Environmental sustainability

Sustainable finance market growth
ANZ is a market leader in the Australian and New Zealand
green, social and sustainability bond and loan market.
Further examples of some of our recent transactions are
available on page 50 of our 2019 Annual Report, available on
anz.com/annualreport.
Eleven of the 61 transactions were labelled as green bonds or loans.
This included Woolworths Group Limited’s (Woolworths) inaugural
$400 million green bond, the first Climate Bonds Initiative (CBI)
certified green bond issued by a supermarket retailer globally, and
by a retailer in Australia. ANZ acted as sole green bond adviser and
joint lead manager, working with Woolworths to implement its
Green Bond Framework, determine the portfolio of eligible assets,
and facilitate assurance and certification under the Green Bond
Principles and the CBI criteria.
We are also providing incentives for customers to reduce emissions,
facilitating, in partnership with government, concessional loans
for corporate and agribusiness customers to buy energy-efficient
equipment. This year we announced an additional $100 million
commitment to the ANZ/Clean Energy Finance Corporation Energy
Efficient Asset Finance Program, taking our total commitment
to $250 million since December 2017. Through this program we
have helped finance almost $130 million of investment in over 666
clean energy technology deals (to end of September 2019) for our
Business and Private customers. Energy Efficiency remains the major
asset category, with customers seeing rapid paybacks associated
with upgrades to new and more efficient plant and machinery.
Having this year exceed our $15 billion by 2020 environmentally
sustainable solutions target, we have set a new $50 billion by 2025
sustainable finance target. This target will fund and facilitate initiatives
that will help improve environmental sustainability, increase access to
affordable housing and promote financial wellbeing.
2019 Transactions
Renewables 38%
Transport 5%
Other 2%
Conservation 1%
Forestry 5%
Green buildings 49%
CUSTOMER STORY
Supporting customers to improve
environmental sustainability
Infratec is supporting the development
of renewable generation and distribution
systems in New Zealand, the Pacific and
ASEAN countries.
In July 2019 the company completed its latest project – four
solar power plants delivering reliable renewable energy to
four islands in the southern group of the Cook Islands. The
company also has projects in Solomon Islands, Nauru, Kiribati
and Tuvalu, where it has focused on giving local communities
the skills and knowledge to run and maintain their plants
themselves.
“Our mission is to deliver renewable energy solutions,” says
Chris Service, Infratec’s Pacific Business Development Manager.
“We’re deploying innovative technology, but the innovation
we’re really proud of is how we engage locally to make sure
there’s added value for local communities.”
Banking customers like Infratec aligns with our commitment
to support businesses that improve environmental
sustainability – an issue particularly relevant in the Pacific
given the impacts of climate change.
Our presence in the Pacific has directly benefited Infratec,
providing access to local employees in countries where it is
considering new projects, as well as introductions to other
customers, leading to new business opportunities.
“The opportunities we can open up to our customers can
make a real difference,” says Nathan Wilson, ANZ’s Head of
Commercial – Fiji. “Projects like those carried out by Infratec
are critical to the future and sustainability of Pacific nations
and their local economies.”
“We have provided a number of introductions which will
hopefully lead to the first solar battery mini grid in the outer
Islands of Fiji – that’s a really powerful sort of matchmaking.”
38
ANZ 2019 ESG SUPPLEMENT
Supporting the transition to a net-zero carbon economy continued
Environmental sustainability

Customer engagement
Our Institutional business has a key role to play in helping our
business customers in their transition. In seeking to support the shift
to a net-zero carbon economy we are seeking long term, publicly
available transition plans from 100 of our major emitting customers.
We chose these customers informed by key criteria that includes:
•dir
ect emissions, ie. emissions from company owned or
operated assets;
•indirect emissions from their ‘value chains’, ie. both upstream
and downstream emissions associated with their operational
footprint; and
•the depth and strength of our relationships.
We have started engaging with these customers to encourage and
support them to develop and publish their low carbon transition
plans. We know our customers have different starting points and
strategies when it comes to the transition – just as we are seeking
to improve our own disclosures we can play a role in helping our
customers to do the same.
TARGET
Encourage and support 100 of our largest emitting customers
in the energy, transport, buildings and food, beverage and
agricultural sectors to establish, and where appropriate,
strengthen existing low carbon transition plans, by 2021.
PERFORMANCE
We have analysed the carbon disclosures of over 80 of
our largest emitting customers and engaged with 29 of
these to support them to establish, and where appropriate,
strengthen existing low carbon transition plans.
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
13.1 Strengthen resilience and adaptive capacity to climate-
related hazards and natural disasters in all countries.
To help our relationship managers talk with customers about climate
change as part of their regular engagement, we have provided
training and prepared guidance materials that can be shared with
customers. We have also published a podcast interview with our
Managing Director, Institutional Australia to explain our work, to
ensure the reasons for engaging with customers are transparent to
our external stakeholders, including customers, investors, regulators
and civil society organisations.
All of the customers we have engaged with have understood why
we are doing this work and are happy to share their progress with us.
This engagement will inform the development of a model applicable
to our broader customer base enabling us to encourage customers
to improve the management and disclosure of their climate-
related risks and opportunities. Both through customer discussions
and reviews of public disclosures we are developing a better
understanding of our customers’ preparation for, and management
of, their most likely climate-related risks and opportunities.
We are providing regular updates regarding our progress on this
work to our ERBC and Board EESG committees. For further detail
of our customer engagement refer to our 2019 Climate-related
Financial Disclosures, available on anz.com/annualreport.
CASE STUDY
Customer transition –
starting out
We met with local representatives of an
international public transport company to
discuss their low carbon transition planning.
This company has a decentralised ESG model with local
corporate social responsibility (CSR) leads in most countries
responsible for the implementation of a group-wide ESG
strategy – including targets.
During the conversation between our social and
environmental specialists and the customer management
team we learnt that there was little public reporting in
alignment with the TCFD, and no publicly disclosed climate
scenario analysis.
We have maintained our engagement with the local CSR
team and are assisting them to identify opportunities to
improve the company’s transition planning.
CASE STUDY
Customer transition –
advanced planning
BHP has an integrated strategy that focuses
on: reducing operational GHG emissions;
addressing value chain (scope 3) emissions;
managing climate-related risk and
opportunity; and working with others to
enhance the industry and global response
via policy engagement, support for market
mechanisms and disclosure.
Commitments and initiatives related to transition
planning include:
1.

tar
gets to hold net operational emissions at or below 2017
levels by 2022 while continuing to grow their business,
and achieve net-zero operational emissions in the latter
half of this century, consistent with the Paris agreement;
2. investments in emerging and existing technologies
that make step-change reductions in GHG emissions,
both from their own operations (including introduction
of electric vehicles into mining fleet) and from the
downstream processing and use of their products (eg.
carbon capture, utilisation and storage for steelmaking);
3.

ac
tive stewardship role working with customers, suppliers
and other value chain participants to influence reductions
in scope 3 emissions; and
4.
increasing integration of climate risk (both threats and
opportunities) into strategic planning via scenario analysis
and internal carbon pricing.
CO
2
39

Green Bond impact
report – summary
ANZ issued a $600 million, five year fixed rate green bond to wholesale
investors in June 2015 (Green Bond).
The Green Bond finances in part, a portfolio of loan assets for
renewables energy projects and low carbon buildings in the Asia
Pacific region (eligible assets) totalling approximately $700 million
(as at 30 September 2019).
This is the second time we are reporting on the environmental
impact and other benefits from the Green Bond Proceeds. The full
Green Bond Impact report is available on debtinvestors.anz.com.
Green Bond impacts
Low carbon buildings
Buildings financed in part by the Green Bond
have been specifically designed to minimise
operational energy use and the associated
emissions arising from that use of energy.
Renewable energy projects
The wind power projects financed in part
by the Green Bond are helping to displace
electricity generated from the burning of
fossil fuels. This helps to lower the overall
emissions intensity of the grid that final
energy users draw their electricity from.
1.
Refer to debtinvestors.anz.com/green-sustainability-bonds for the full Green Bond Impact Report, including the methodology used to calculate this data.
3,302
The equivalent cars off the
road for a year
1
377,912
The equivalent cars off the
road for a year
1
4.99
The weighted-average energy rating
of low carbon buildings – well above
the average of 4.30 stars
2.19 million MWh
The renewable energy supplied
by the 12 operational wind
projects financed by ANZ
10,604 tCO
2
-e
The estimated greenhouse gas
emissions saved overall by the projects
1.21 million tCO
2
-e
The estimated greenhouse gas
emissions saved overall by these projects
8.98 million kWh
The combined energy savings
achieved compared to equivalent
office buildings
543,900
The equivalent households powered
by this energy
1

1,578
The equivalent households powered
by these energy savings
1
119
ANZ PROPORTIONAL IMPACT
(equivalent households powered
by this energy)
224,157
ANZ PROPORTIONAL IMPACT
(equivalent households powered
by this energy)
391
ANZ PROPORTIONAL IMPACT
(equivalent cars off the road for a year)
160,718
ANZ PROPORTIONAL IMPACT
(equivalent cars off the road for a year)
40
ANZ 2019 ESG SUPPLEMENT
Environmental sustainability

Reducing our
environmental footprint
Reducing our carbon emissions
TARGET
Reduce scope 1 and 2 emissions by 24% by 2025 and by 35% by
2030 (against a 2015 baseline)
1
PERFORMANCE
Scope 1 and 2 emissions have decreased by 25%, tracking
ahead of the required reduction to meet our targets
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
7.3 By 2030, double the global rate of improvement in
energy efficiency.
13.3 Improve education, awareness-raising and human
and institutional capacity on climate change mitigation,
adaptation, impact reduction and early warming.
Our 25% reduction in emissions (against our 2015 baseline year)
is mostly due to:
•divestment and consolidation of our property portfolio across
Asia Pacific, Europe and America;
•improved energy efficiency in our new data centres;
•continuous improvement in energy efficiency initiatives, such as
lighting upgrades within our branches and corporate offices; and
•the closur
e of our 100 Queen Street, Melbourne office and
relocation of employees to our new, energy-efficient building,
‘ANZ Campus’, in Docklands.
Since 2010 our business
operations have been
carbon neutral.
Renewable energy
TARGET
Increase renewable energy use in our Australian operations by
13% by 2020 (against a 2017 baseline)
PERFORMANCE
We have entered into a Power Purchase Agreement to
‘off-take’ power from Murra Warra Wind Farm 1 (Victoria).
ANZ wind turbines commenced generation in May 2019.
Renewable energy certificates received from the project will
be retired to deliver against our renewable energy target
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
7.3 By 2030, double the global rate of improvement in
energy efficiency.
13.3 Improve education, awareness-raising and human
and institutional capacity on climate change mitigation,
adaptation, impact reduction and early warming.
1.
This target was submitted to the Science Based Targets Initiative (SBTI) for informal review, and SBTI provided written confirmation that it may be considered and communicated as science-
based. We prepared our target using the Science Based Targets Initiative (SBTI) methodology, however this does not include emissions arising from our financing activities (scope 3) given
there is currently no standard framework or SBTI methodology to account for these emissions. We will continue to monitor and consider participating in future developments in this area.
Our environmental footprint targets seek to reduce the impact of our operations
through innovation and efficiency. We are focused on energy, water and waste due
to their relevance to the customers we bank and the markets in which we operate.
CO
2
As at 1 July 2019, the
Murra Warra Wind Farm
turbines have generated
1,672 MWh of electricity.
RE100
In September this year we announced our
commitment to procure 100% renewable
electricity for our operations by 2025.
Moving to 100% renewable electricity by 2025 not only makes
good business sense, it is good for the planet and reflects our
ongoing support for the goals of the Paris Climate Agreement.
HIGHLIGHT
41

Paper
TARGET
Reduce paper consumption in Australia and New Zealand
(office and customer paper use only) by 40% by 2020 (against
a 2015 baseline)
PERFORMANCE
Paper consumption has decreased by 38%, tracking
ahead of the required reduction to meet our target
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
12.5 By 2030, substantially reduced waste generation
through prevention, reduction, recycling and reuse.
Increasing digitisation is driving a reduction in paper use,
as is improved employee awareness of printing behaviours
and customers’ preference towards receiving electronic
communications.
Recycling
TARGET
Increase recycling rates in our Australian commercial offices
(>20,000m
2
) by 12% by 2020 (against a 2017 baseline)
PERFORMANCE
Recycling rate has increased by 1% since 2017, tracking
below the required increase to meet our 2020 target
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
12.5 By 2030, substantially reduced waste generation
through prevention, reduction, recycling and reuse.
When we established our waste and recycling baseline our
estimated average recycling rate was 43%. We sought to lift
this by 12% to 55% in alignment with the unofficial industry
benchmark for office-service-based corporations. Since
establishing this target our data capture and analysis methods
have improved. We have determined our 2017 baseline average
recycling rate was 67% – while a more positive baseline
percentage, we have continued our target to increase our
recycling rate by 12%, focusing on the following to
lift performance.
Site
relocation
We implemented our ‘triple R’ approach to reduce, redistribute
and recycle waste streams during the closure of our 100 Queen
Street office and relocation of employees to ANZ Campus.
We focused on a range of waste streams including stationary,
furniture and electronics, resulting in a 3% improvement in our
recycling rate at 100 Queen Street (from 2017).
Infrastructure improvement
We implemented new and improved waste separation and recycling
infrastructure across numerous commercial sites and branches.
Waste signage and recycling infrastructure was also updated.
We have increased the number of recyclable waste streams available
to employees, including additional battery recycling options and the
extension of the #kickthecup coffee cup recycling program to our
five largest commercial buildings in Australia.
Employee
engagement
Our ‘Green Ambassador’ employee engagement program has
expanded to 11 markets. The program helps employees reduce their
environmental footprint, connect with nature and develop solutions
to environmental problems. In response to employee surveys, the
program’s primary focus this year has been on waste minimisation.
Water
TARGET
Reduce water consumption in our Australian commercial offices
(>10,000m
2
) by 15% by 2020 (against a 2015 baseline)
PERFORMANCE
Water consumption has decreased by 8% since July 2015,
tracking behind the required reduction to meet our 2020 target
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
6.4 By 2030, substantially increase water-use efficiency
across all sectors and ensure sustainable withdrawals
and supply of freshwater to address water scarcity and
substantially reduce the number of people suffering
from water scarcity.
During this year faults with both the blackwater treatment plant and
river water heat rejection system at our Melbourne headquarters
impacted progress on our water target. Capital works are underway
to rectify these issues.
We continue to implement water saving initiatives and ensure that
our sites operate as efficiently as possible. We have installed flow
restrictors in our ‘end-of-trip’ facilities, upgraded sensors to improve
use of rainwater tanks for irrigation and implemented water saving
equipment as part of our standard design approach for new and
refurbished branches.
42
ANZ 2019 ESG SUPPLEMENT
Reducing our environmental footprint continued
Environmental sustainability

We partnered with Sustainable
Coastlines as part of our annual
employee volunteering drive to
support our focus on environmental
sustainability.
Sustainable Coastlines’ mission is to enable people to look after
coastlines and waterways through education and large-scale events.
“The number of staff using their volunteer leave has grown steadily,
so we’re now in a place to take ANZ’s volunteering to the next level
by organising several mass volunteering events,” said Mike Bullock,
ANZ Chief Operating Officer NZ.
Over 1,250 employees volunteered 18,360 hours to clean up over

60 beaches across New Zealand, collecting more than 10,000 litres
of rubbish at se
ven coastal clean-up events during March and April.
Image: ANZ volunteers cleaning up New Zealand’s coastlines.
COMMUNITY STORY
Cleaning up New Zealand’s coastlines
Over 1,250
employees
volunteered
18,360 hours to
clean up over
60 beaches
43

Housing
Australia and New Zealand currently have among the highest levels
of home ownership in the world. At the same time, purchase and
rental affordability in our major cities is a significant issue.
Factors such as planning regimes, regulation, taxation laws,
infrastructure supply and population growth all affect the range and
availability of housing options available. Experts acknowledge there
is a supply gap between the number of houses built and current
and projected demand.
Both the Australian and New Zealand governments have been
targeting policies that aim to support first home buyers into the
market and growth in the affordable and social housing market.
We have undertaken significant engagement with industry
stakeholders to ensure that as an organisation we are directly linked
to the housing policy agenda, offering market expertise to support
government, customers and the community with relevant insights
to inform decision-making.
We have entered into a three-year partnership with CoreLogic to
deliver a bi-annual housing affordability report. The report provides
in-depth market analysis of the Australian housing market for both
buyers and renters.
Delivering on our housing commitments
Housing-related lending is a central activity of a bank. We lend to
home owners and investors, and for property development and
infrastructure. We believe we can play a broader role in improving
the availability and affordability of housing, including support for
innovative housing delivery models across the private, public and
not-for-profit sectors.
Increasing housing supply
TARGET
Fund and facilitate $1 billion of investment by 2023 to deliver
around 3,200 more affordable, secure and sustainable homes to
buy and rent (Australia).
PERFORMANCE
We are developing a housing supply pipeline through direct
engagement with our clients (new and existing), supporting
innovative models to finance new supply. This includes:
•jointly leading the inaugural bond issue of $315 million f
or the
Commonwealth’s National Housing Finance and Investment
Corporation (NHFIC), the largest social bond for housing in
Australia; and
•ar
ranging the first two financial wellbeing bonds in New Zealand
for Housing New Zealand Corporation (total NZ$1.1 billion).
We have established a Housing ‘Virtual Fund’ to access an additional
$100 million in finance to support emerging housing delivery models.
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
9.1 Develop quality, reliable, sustainable and resilient
infrastructure, including regional and transborder
infrastructure, to support economic development
and human wellbeing, with a focus on affordable and
equitable access for all.
10.2 By 2030, empower and promote the social,
economic and political inclusion of all, irrespective of
age, sex, disability, race, ethnicity, origin, religion or
economic or other status.
11.1 By 2030, ensure access for all to adequate,
safe and affordable housing and basic services and
upg
rade slums.
17.17 Encourage and promote effective public, public-
private and civil society partnerships, building on the
experience and resourcing strategies of partnerships.
Our Housing ‘Virtual Fund’ (the Fund) enables us to accommodate
non-conforming risk aspects of new housing models. Emerging
housing models generally come with increased risk for the
developer, the bank and the consumer, preventing innovative
models from being brought to market at scale. The Fund ensures
that we have a comprehensive internal review process, allowing us
to utilise all of our expertise in understanding and managing risk.
We are committed to helping improve the availability of suitable and affordable
housing options for Australians and New Zealanders, including the supply of
homes to buy, homes to rent, and access to safe accommodation.
44
ANZ 2019 ESG SUPPLEMENT
Housing

Support for first home buyers
TARGET
Offer all ANZ first home buyers access to financial coaching support
(Australia and New Zealand).
PERFORMANCE
We are continuing to improve the skills of our frontline staff
enabling them to provide tailored guidance and support to
first home buyers. This includes:
•providing over 3,300 frontline staff with Home Loan Coach
training across Australia and New Zealand;
•improving our First Home Coach training in Australia – nearly
800 of our frontline staff have completed this training; and
•pr
oviding Construction Coach training in New Zealand to
support customers building or renovating a home – more than
220 frontline staff have received training.
We are helping people save for, buy and own a sustainable and
affordable home.
Our research shows that 64% of first home buyers are uncertain of
what to do when it comes to buying their first property and they
want someone they can trust to guide them through the process. In
response, we are improving the skills of our frontline staff enabling
them to provide tailored guidance and support to first home buyers.
We have also developed the most accurate property price predictor
in the market to support customers in establishing the value of their
future home.
In recognition of our commitment to this customer segment we
have been named Bank of the Year for First Home Buyers by Canstar
for three years running (2017–2019).
Making homes healthier in New Zealand
TARGET
Provide NZ$100 million of interest-free loans to insulate homes for
ANZ mortgage holders (New Zealand).
PERFORMANCE
More than 1,800 interest-free home loans (to the value of
NZ$6.3m) have been drawn down as at 30 September 2019.
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
11.1 By 2030, ensure access for all to adequate, safe and
affordable housing and basic services and upgrade slums.
17.17 Encourage and promote effective public, public-
private and civil society partnerships, building on the
experience and resourcing strategies of partnerships.
According to research by the Building Research Association of
New Zealand, about half of the homes built are unsuitable for
the climate – they are not adequately insulated, have insufficient
heating and are damp with visible signs of mould.
We have set aside NZ$100 million so our customers can enjoy
warmer, healthier homes while potentially also keeping energy
costs down. Last year, we offered our home loan customers
(both owner-occupiers and investors) an interest-free home loan
top-up (up to NZ$5,000). The top-up offer was also expanded to
include heat pumps in July 2019.
In April 2019, we launched a Healthy Home Loan Package,
(an expansion of our Healthy Homes Initiative) that includes
discounts to standard home loan rates, as well as fee waivers
across a range of accounts, for customers buying, building or
renovating a home to 6 Homestar or above, in New Zealand.
It is still early days, but already 34 customers are on the package
(funds under management of NZ$11.7 million) and we are
working to identify existing eligible customers to transition them
across to the package.
Partnering for change
We have a long history of supporting the communities in
which we live and work through our workplace giving program,
employee volunteering and the ANZ Community Foundation
(refer to pages 60–63 for further detail). In the past year, we have
sought to extend more of some of that support to community
organisations seeking to end homelessness.
Sleeping out to support those
experiencing homelessness
This year 40 ANZ leaders – including our Chief Executive
Officer – participated in the St Vincent de Paul CEO Sleepout
(Australia) and Lifewise Big Sleepout (New Zealand),
collectively raising over $157,000 to help end the cycle of
homelessness. Of those participating, 70% were involved for
the first time. The total amount raised equates to more than
5,000 meals for those experiencing homelessness.
HIGHLIGHT
45

COMMUNITY STORY
A cup of coffee can change someone’s life
Property Industry Foundation (PIF)
For 20 years, the PIF has used the resources of the property
and construction industry to build bedrooms for homeless
young people. Individuals and teams from across the sector in
New South Wales, Victoria and Queensland donate their time,
expertise, resources and money in an effort to reduce youth
homelessness.
This year we entered into a three-year partnership with PIF,
committing $150,000 to support their ‘House Program’ which
aims to deliver 125 bedrooms by 2021.
The first ANZ-sponsored project will support the development
of two extra bedrooms and the refurbishment of four existing
bedrooms at PIF House Kingsford. The rooms are being built
for St Laurence House Youth Services and will provide a safe,
welcoming home for six homeless young people.
Social enterprise, Society Melbourne
runs a life-changing traineeship
program which pays trainee wages and
funds rental subsidies to help young
homeless gradually become self-
sufficient in private rental.
Through its home.two cafe located on The University of
Melbourne campus, Society Melbourne provides opportunities
for young people experiencing homelessness or who are at risk of
homelessness to ground themselves in stable accommodation, with
access to education that allows them for the first time to pursue
skills development.
Not only are students helped to prepare for the future, they are also
supported with a case worker and secure accommodation by one
of Victoria’s biggest homelessness and housing service providers,
Launch Housing through its Education First Youth Foyer program.
Co-founder and Managing Director of Society Melbourne
Tenille Gilbert believes the approach is best described as an
empowerment model.
“It’s about recognising that people who are in disadvantaged
circumstances, don’t just need a handout, they need a hand up,”
she says.
“The training program is about supporting young people who may
not have had a positive experience in employment before. We’re
trying to provide a safe community space for them to acknowledge
their value and realise they can be respected in the workplace.”
We provided 100% of the money raised through our 2018
Kaleidoscope charity art auction to Society Melbourne to help fund
the fit-out of home.two.
Image: home.two
HIGHLIGHT
46
ANZ 2019 ESG SUPPLEMENT
Housing

Financial wellbeing
Our financial wellbeing focus is centred on what role we can play to
help improve the capacity for a person to:
•meet their cur
rent financial commitments;
•ha
ve sufficient spare money for a comfortable life; and
•possess the r
esilience to maintain these elements into the future.
We have committed to evolve our understanding of financial
wellbeing through a full survey every three years, ensuring
our approach remains current and incorporates the latest
international thinking.
Combined with other customer and market insights, this work has
influenced the decision to elevate financial wellbeing to the core of
ANZ’s business strategy.
Specific insights gleaned from the survey have also resulted in a
number of further applications across the business such as: the
development of the ANZ Roy Morgan Financial Wellbeing Indicator;
increased focus on the financial wellbeing of older Australians;
and improved evaluation of the impact of our financial wellbeing
programs.
The
ANZ Roy Morgan Financial Wellbeing Indicator
T
he ANZ Roy Morgan Financial Wellbeing Indicator (FWI) will
become an important, statistically robust quarterly snapshot of the
personal financial wellbeing of Australians using the weekly Roy
Morgan single source survey of 50,000 Australians.
ANZ has partnered with Roy Morgan to replicate key financial
wellbeing questions from our 2017 Financial Wellbeing Survey. The
power of the Roy Morgan Single Source survey enables us to amplify
the results of our 2017 survey and examine financial wellbeing at
a more granular level. It will provide important new insights across
local geographies and for different population demographics.
The FWI will play a unique role in tracking financial wellbeing over
time and highlighting potential areas for greater action to improve
financial wellbeing. The FWI will provide time series data in a
previously untracked dimension of how Australians are faring.
Key summary insights from the FWI will be released at regular
instalments, and will focus on emerging issues of interest to policy-
makers, business and civil society.
We are also supporting selected cross-sector partners with access
to the data, to support further research and the development of
appropriate actions to build the financial wellbeing of individuals
and the broader community.
Financial
wellbeing of older Australians
I
n November 2018 we published an analysis by RMIT University into
the financial wellbeing of older people in Australia. The critical issues
facing Australia’s ageing population are often related to people’s
financial wellbeing and capability.
While our survey initially suggested that older Australians
generally enjoyed higher financial wellbeing than average, it
was important to explore some of the issues that may have
been masked in the high-level survey report. For example, the
increasing reliance on digital banking, apps and new payment
platforms can create a barrier for some older people in managing
their money.
This has led to a commitment in our Financial Inclusion Action
Plan (FIAP) to support our customers to build their digital
literacy skills, with a focus on older customers. The research
also emphasised the value of financial wellbeing programs
like MoneyMinded in addressing the concerns of some older
customers. Data from this study is being used by a range of
academics and other stakeholders to develop a clearer picture of
the financial wellbeing and capabilities of older people.
Evaluation
of ANZ’s flagship financial
wellbeing programs
Over many years, ANZ and research partners have demonstrated
impact on a range of measures for vulnerable and lower-income
participants in our financial wellbeing programs, MoneyMinded
and Saver Plus. In light of the financial wellbeing survey, we have
ensured the financial wellbeing measures identified have been
central to a recent evaluation of these programs.
Supporting our customers
The banking industry has a role to play in fostering financial
wellbeing within the community. We already reach millions of
people with our products and services, and therefore are well
placed to support people in developing their money skills and
confidence, through everyday conversations with our customers.
We also have a responsibility to apply our marketing influence in
a responsible way, helping to raise community awareness about
improving financial wellbeing and building resilience for the future.
Financial wellbeing starts with fair and
responsible banking
It is important to retain a focus on building the financial wellbeing
of those potentially vulnerable to financial exclusion, such as
customers experiencing financial hardship, people who live on
low incomes and people with low levels of money management
capabilities and confidence.
In light of findings from the Royal Commission and
implementation of the new Banking Code of Practice, our
approach to working with potentially vulnerable customers has
been refreshed, with strengthened oversight and accountability
and a bank-wide view of issues facing those customers. Refer to
pages 22–23 for further detail.
Our strategy is focused on improving the financial wellbeing of our customers;
having the right people who listen, learn and adapt; putting the best tools and
insights into their hands; and focusing on those few things that really add value
to customers and doing them right the first time.
47
Financial wellbeing

A focus on collective action and responsibility has seen us
continue our commitment to the Financial Inclusion Action Plan
(FIAP) program, managed by Good Shepherd Microfinance and
supported by the Australian Government. In December 2018 we
launched our second FIAP, together with our public commitments
to Accessibility. ANZ’s Approach to Accessibility and Financial Inclusion
demonstrates how many issues can result from diverse challenges
and vulnerabilities.
Financial wellbeing
TARGET
Enable social and economic participation of 1 million people by
2020 through our targeted initiatives to support financial wellbeing
(including financial inclusion, employment and community
programs) and banking products and services for small business and
retail customers.
PERFORMANCE
More than 998,470 people have been reached through our
financial wellbeing programs, and targeted banking products
and services for small business and retail customers.
RELEVANT UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
1
1.4 By 2030, ensure that all men and women, in particular
the poor and the vulnerable, have equal rights to
economic resources, as well as access to basic services
and financial services.
8.3 Promote development-oriented policies that support
productive activities and encourage the formalisation and
growth of micro, small- and medium-sized enterprises,
including through access to financial services.
10.2 By 2030, empower and promote the social,
economic and political inclusion of all.
17.16 Enhance the global partnership and multi-
stakeholder partnerships, to support the achievement of
the sustainable development goals in all countries.
As at 30 September 2019:
•Saver Plus had reached over 43,600 lower-income participants
(since the program commenced in 2003);
•over 668,520 people were estimated to have participated in
MoneyMinded across Australia, New Zealand, Asia and the Pacific
(since the program commenced in 2002);
•we have recruited 734 people from under-represented groups
(since the target commenced in 2016);
•more than 2,340 people have been assisted through our mentoring
programs, including those supporting start-ups and entrepreneurs,
as well as our Seeds of Renewal grants program; and
•more than 283,110 people have been assisted through our
products and services targeted towards small businesses and retail
customers, including our roll-out of goMoney™ mobile phone
banking in the Pacific.
Lifting
financial wellbeing through active saving –
Saver Plus
Over many years, evaluation of Saver Plus has shown that the program
utilises the combined power of goals, incentives and personal support
to assist lower-income people to build savings behaviour.
For the first time, RMIT’s program research, Saver Plus – Pathways
to Wellbeing, published in 2018, applied the measures of financial
wellbeing utilised in our Australian and New Zealand financial
wellbeing surveys. Importantly, the research also demonstrated that
87% of survey respondents continued to save the same amount or
more between three to seven years after completing the program.
Developed by Brotherhood of St Laurence and ANZ in 2003, program
participants open an ANZ savings account, set a savings goal and
save towards it regularly over 10 months while also attending
MoneyMinded financial education sessions. Upon reaching their goal,
savings are matched by ANZ dollar for dollar, up to $500, which must
be spent on education.
In 2019, 3,350 participants enrolled in Saver Plus, setting goals to
save over $2 million collectively. Since 2003, Saver Plus has reached
approximately 43,600 lower-income participants and is expected
to enable over $33 million of private sector funds to be invested in
education by 2020. The program is delivered in partnership with
community organisations and the Australian Government.
Financial wellbeing scores:
Before
Saver Plus
reported that they
gained more control
over their finances
After participating in Saver Plus:
After
Saver Plus
In Australia
2
were better
able to make
ends meet
were better able
to provide for
their families
% of survey respondentsAverage financial wellbeing score
1.
We have abbreviated the SDG ‘targets’ to highlight the most relevant contribution by ANZ (see https://www.un.org/sustainabledevelopment/sustainable-development-goals/ for full targets).
2.
Using Kempson et al. (2017) Financial Wellbeing Scale, which is comprised of three components: meeting commitments, feeling financially comfortable, and resilience for the future.
The financial wellbeing scores range from 0–100.
59643680
7873
48
ANZ 2019 ESG SUPPLEMENT
Financial wellbeing

While many Saver Plus participants are first drawn by the offer of $500 in
matched savings, it is the financial education that remains with participants
long after they have finished the program.
stress in the family. I reach my goals with automatic direct debits and
my children are better cared for now because I have money set aside
for food and everyday expenses.”
“I highly recommend everyone that is eligible to take up this
program. It is life changing and I feel so much more relaxed now that
I have my bills all ready to be paid by the due dates.”
Image: Saver Plus participant Georgia and her children
COMMUNITY STORY
Saver Plus – learning to budget can be life changing
In 2019, 3,350
participants
enrolled in
Saver Plus, setting
goals to save
over $2 million
collectively
Single mother of two, Georgia, signed up to Saver Plus when
hearing about the $500 in an effort “just to save”.
“I learned how to budget using different online accounts. I was
surprised how I was able to do this as I thought I don’t have a lot
of money to be budgeting with,” she said.
Since completing the program, Georgia has set up online
accounts for her car payment, for groceries and one for children’s
parties. “It’s a massive relief to learn how to budget; it reduces the
49

Lifting financial wellbeing through behaviours
and confidence – MoneyMinded
MoneyMinded is ANZ’s flagship financial education program,
supporting people with low levels of financial literacy and those
on lower incomes across 21 markets. The program is delivered by
community partner organisations in Australia and New Zealand,
and a mix of community organisations and ANZ employees in Asia
and the Pacific. Of the estimated 87,577 people who participated
in MoneyMinded (including MoneyBusiness, refer to page 56 for
further information) in 2019, the majority of them were women.
The flexibility of MoneyMinded enables a large network of accredited
facilitators to use the program to address the specific needs of
their clients. Over many years, the program has been successful
in supporting people engaged with family, mental health, youth,
migrant, disability, drug and alcohol and other community services.
This year for the first time we applied a consistent measure of
financial wellbeing outcomes to the evaluation of MoneyMinded in
different locations across the region (Australia, New Zealand, Fiji and
Kiribati). These results again show that MoneyMinded is effective in
changing behaviours and building financial wellbeing – and that,
provided our approach is consistent and in genuine partnership
with our customers and the community, we can play a role in lifting
financial wellbeing for many thousands of people every year.
Of New Zealand, Asia and Pacific MoneyMinded participants
are
male
Of Australian MoneyMinded participants
are
female
are
unemployed
are
sole parents
have Aboriginal
or Torres Strait
Islander heritage
37%63%
33%47%
45%6%n/a
47%16%67%
20
After MoneyMinded program
0406080
Financial wellbeing scores for
MoneyMinded participants
Australia
New Zealand
Fiji
Kiribati
Before MoneyMinded program
73
55
65
28
70
37
67
31
50
ANZ 2019 ESG SUPPLEMENT
Financial wellbeing