ANZ 2020 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

9 November 2020

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





ANZ 2020 ESG Supplement

Australia and New Zealand Banking Group Limited (ANZ) today released its 2020 ESG
Supplement.
It has been approved for distribution by ANZ’s Ethics, Environment, Social and
Governance Committee.

Yours faithfully




Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited

2020 ES G S U P P L E M E NT

Mount Zero Olives
Mount Zero Olives, home to Jane and Neil Seymour, is an organic olive grove set on about
200 acres at the base of Grampians, in the Wimmera district of regional Victoria.
“We bought this property back in the early 1990s
following the recession,” says Neil. “I grew up on
an apple orchard and had some horticultural
knowledge, but starting Mount Zero for us was
really about establishing a business that valued
sustainability, regionalism, provenance and
quality produce.”
Jane and Neil’s son, Richard Seymour, is Mount
Zero’s General Manager, overseeing marketing,
supply chain and business development.
“Early on we knew we could either be a small
producer selling to local markets, or we could
steer in a direction that would see us become
a strong, locally based business. We made a
commitment to grow and diversify, while still
keeping true to the values of where we’re from
and what we stand for,” says Richard.
According to Richard, underpinning Mount Zero’s
success is its focus on biodynamic and organic
farming, the use of native ingredients endemic
to the region, and strong links to the local
Indigenous community.
“In April each year, the local Indigenous
community helps us get out on a nearby pink
lake and scrape up the salt during harvest time.
For every kilo of salt we sell, $1 goes back to the
land council to support local initiatives.”
“We’re also privileged to work with Aunty Nancy,
an elder who grew up on a mission close to the
lake, for all the artwork on our packaging.”
Although currently having to reshape the
business in response to COVID-19, Mount Zero is
no stranger to adversity, having survived lengthy
periods of drought, as well as bushfires.
“In some respects, adversity is a driver of change
in business and it’s actually driven a lot of positivity
for us. First with diversifying and working with
grain and lentil growers in response to the
drought, and now with COVID-19 and pivoting
from selling to restaurants to consumers directly.”
ANZ has a long history of supporting the
agricultural sector in Australia, and customers like
Mount Zero align with our values and our focus
on environmental sustainability and social and
economic participation.
COVER STORY
Overview 1
Our 2020 reporting suite 1
2020 ESG performance snapshot 2
COVID-19 3
About our business 4
ESG governance and risk management 5
What matters most 6
Stakeholder engagement 9
Our ESG targets 11
Fair and responsible banking 13
Improving conduct and culture 13
Employee engagement, wellbeing
and development 15
Improving customer outcomes 17
Supporting customers experiencing
vulnerability 21
Managing customer complaints 23
Improving customer experience
through digital solutions 25
Cyber security, data protection
and privacy 27
Financial crime 30
Our approach to human rights 32
Managing ESG risks and opportunities
in our supply chain 35
Responsible business lending 37
Environmental sustainability 40
Reviewing our approach to
climate change 40
Supporting the transition to a net
zero carbon economy 42
Reducing our environmental footprint 46
Housing 49
Financial wellbeing 52
Workplace diversity and inclusion 57
Helping create opportunities for
Indigenous Australians 60
Building an accessible and inclusive bank 62
Community investment 65
Voluntary tax transparency 70
ESG data pack 72
UN Principles for Responsible Banking
self-assessment 72
UNGP Reporting Framework 80
Responsible business lending 82
Equator Principles 85
Supply Chain 86
Environment 87
Employees 89
Community 96
Customers 97
Voluntary tax transparency 99
Explanatory notes 100
KPMG assurance opinion 102
Cover Image: Richard and Neil Seymour harvesting salt from the nearby pink lake with the assistance of Wotjobaluk traditional owner, Adrian Morgan.
CONTENTS
ANZ 2020 ESG Supplement
Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
About this Environment, Social and Governance
(ESG) Supplement
This report provides stakeholders with more detailed information
on the Australia and New Zealand Banking Group Limited’s
1
ESG
performance and challenges. In response to stakeholder feedback,
for the first time, we are releasing our ESG Supplement at the same
time as the Annual Report.
This report 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 ESG targets.
The second section outlines 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 United Nations Principles of
Responsible Banking self-assessment, United Nations Guiding
Principles reporting framework index, Equator Principles data
and comparative performance data.
This report has been prepared in accordance with the GRI
Standards: Comprehensive option. A complete GRI Index
is available 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
3
and our 2020 Climate-related
Financial Disclosures report. A copy of KPMG’s independent limited
assurance report is on pages 102 – 103.
This report covers all ANZ operations worldwide over which,
unless otherwise stated, we have control for the financial year
commencing on 1 October 2019 and ending 30 September 2020.
Monetary amounts in this document are reported in Australian
dollars, unless otherwise stated.
You can trace our actions on human rights
throughout this report using this symbol
Our 2020 reporting suite
Reporting suite
We produce a suite of reports to meet the needs and requirements
of a wide range of stakeholders, including shareholders, customers,
employees, regulators, non-government organisations and the
community. In 2021 we intend to review our disclosures to ensure
they are meeting the evolving needs of our stakeholders.
Specifically, we will consider whether there are additional reporting
frameworks or metrics we could use to enhance our disclosures.
In this respect we are closely watching work underway by key
sustainability disclosure bodies to develop a coherent and
comprehensive corporate reporting system in which existing
sustainability standards and frameworks complement financial
accounting principles.
This ESG Supplement complements our 2020 Annual Report
available on anz.com/annualreport. In preparing pages 1 – 72
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 2020 Corporate Governance Statement discloses how we have
complied with the ASX Corporate Governance Council’s ‘Corporate
Governance Principles and Recommendations – 3rd edition’ and is
available at anz.com/corporategovernance.
Our 2020 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 in relation to this report to corporate.
sustainability@anz.com.
2020 ANNUAL REPORT
anz.com/annualreport
2020 ESG SUPPLEMENT
anz.com/cs
2020 CLIMATE-RELATED
FINANCIAL DISCLOSURES
anz.com/shareholder/centre
2020 CORPORATE
GOVERNANCE STATEMENT
anz.com/corporategovernance
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 2020 Annual Report and 2020
Annual Review: 2020 Performance Snapshot, What Matters Most, COVID-19 – Protecting
our Customers, People and Community, Becoming a fairer and more responsible bank, Our
Customers, Our People, Our Community, Our approach to climate change and ESG metrics
on page 72. 3. The 2020 Annual Review comprises pages 1 – 72 and 241 – 242 of the 2020
Annual Report and Remuneration Overview.
1
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
36%
reduction in
scope 1 and 2
greenhouse gas
emissions against
a 2015 baseline
1. Figure includes forgone revenue of $105 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 Full Time Equivalent (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. Refer to page 101 for methodology. 4. Including Aboriginal and Torres Strait Islander peoples, people with disability and refugees since 2016. 5. In 2020, ANZ set a new 2025 $50bn target with an expanded focus on environmental sustainability, housing and
financial wellbeing. 6. 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]”. Score is out of 100.
33.4%
representation
of Women in
Leadership roles
2
20.5%
of employees
volunteered
919 people
recruited from
under-represented
groups
4

$9.08b
funded and
facilitated in
sustainable
solutions since
2019
5
62.9
RepTrak® community
sentiment indicator
score
6
2020 ESG performance snapshot
86%
employee
engagement
1.07 million
people reached through our financial
wellbeing programs
3
More than
$139.5m
in community
investment
1
2
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
COVID-19 – protecting our customers, people and community
While our decisions in responding to the COVID-19 pandemic have had a short-term financial impact – on earnings, profitability
and shareholder value – our focus is on the long term. A healthy and sustainable community is in everyone’s best interests.
Protect
what matters
Adapt
to the changing
environment
Engage
with our
stakeholders
Prepare
for the future
Throughout the pandemic we have sought to balance the needs of all stakeholders.
Our approach has been guided by four key principles:
Statement of Intent
The four principles informed our Statement of Intent (available
on anz.com), which outlines support for customers impacted
financially by the pandemic.
Many of our retail, small business and commercial customers have
faced significant loss and uncertainty since the pandemic began.
We have been able to assist these customers, including through
the provision of loan payment deferrals. Some customers, however,
will continue to face payment difficulties and be unable to resume
repayments when the initial deferral period ends.
The Statement of Intent sets out our commitment to work
with each of these customers on a solution that is respectful, fair
and appropriate.
Our commitments to customers include:
•When entering into payment arrangements we will seek
to make those arrangements sustainable and realistic.
•Where we become aware that a customer is experiencing
vulnerability beyond financial difficulty, we will, if appropriate,
refer them to community support services, such as an
independent financial counsellor.
•Where we need to help customers wind up their borrowings,
including by potentially selling their assets or bringing their
business to an end, we will be ethical and sensitive in our actions.
•For our home loan customers, we will seek to find solutions that
will help keep them in their home if that is in their best interests.
In publicly setting out our intent we hope to provide customers with
some certainty at what is an uncertain and difficult time for many.
~137,000 applications for hardship assistance
from customers impacted by COVID-19
(since March 2020).
Of our ~1 million home loans in Australia,
~95,000 have received deferrals on their loan
repayments since March 2020, with ~74,000
deferred loans active at 30 September.
Of our ~529,000 home loans in New Zealand,
~24,000 have received deferrals on their loan
repayments since March 2020, with ~16,000
deferred loans active at 30 September.
Of our ~236,000 business loans in Australia,
~23,000 have received deferrals on their loan
repayments since March 2020, with ~20,000
deferred loans active at 30 September.
Enabled 95% of our non-branch employees to
work from home as at 30 April 2020.
$1.5m donated to the Brotherhood of
St Laurence, The Smith Family and the
Financial Counselling Foundation – for
education, employment, aged care and
financial counselling programs targeted at
disadvantaged people affected by COVID-19.
NZ$2m donated in total to Women’s Refuge,
Age Concern New Zealand, the NZ Salvation
Army, Red Cross and other local charities in the
Pacific to support those most affected by the
crisis. Foundation – for education, employment,
aged care and financial counselling programs
targeted at disadvantaged people affected
by COVID-19.
3
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
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 have embedded purpose
into our business strategy, including through our Environment,
Social and Governance (ESG) targets and performance objectives.
About our business
We provide banking and financial products and services to over 8.5 million
retail and business customers, and operate across 33 markets.
Our purpose and values
Our expertise, products and services make us a bank. Our people,
purpose, values and culture make us ANZ.
Our purpose is to help shape a world in which
people and communities thrive. That is why
we strive to create a balanced, sustainable
society in which everyone can take part and
build a better life.
Our values are the foundation of how we work – living our values
every day enables us to deliver on our strategy and purpose,
strengthen stakeholder relationships and earn the community’s
trust. All employees and contractors must comply with our Code
of Conduct, which sets the expected standards of professional
behaviour and guides us in applying our values.
Bringing our purpose to life
We are helping to respond to complex societal issues central to our
customers and our business strategy. In particular, 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; working with our
customers; harnessing the skills of our people; and supporting the
communities in which we live and work.
OUR VALUES ARE:
I NTEGRITY C OLLABORATION A CCOUNTABILITY R ESPECT E XCELLENCE
Supporting sustainable development
We are committed to the United Nations Sustainable
Development Goals (SDGs) and believe that business has an
important role to play in their achievement. Our ESG targets
support 11 of the 17 SDGs.
In 2019 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. We have
reported our progress towards implementing the Principles,
including the targets we have set, using the Reporting and
Self-assessment Index, available on pages 72 – 79.
4
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
ESG governance and risk management
Our governance framework provides the structure for effective
and responsible decision-making within the bank.
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 Ethics, Environment,
Social and Governance (EESG) Committee; the Audit 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 are overseen by the Board
and management through our Board EESG Committee and
management Ethics and Responsible Business Committee.
These Committees are also supported by a Royal Commission and
Self-Assessment Oversight Group (refer to page 16 – 17 of our Annual
Report available on anz.com/annualreport for further detail).
Our most material ESG issues (refer to page 6 – 8) are captured
and managed within the Group’s Key Material Risks (for further
information on risk management refer to pages 49 – 53 of our 2020
Annual Report available on anz.com/annualreport).
For further detail on our governance framework see our 2020
Corporate Governance Statement available on anz.com/
corporategovernance.
Ethics, Environment, Social and Governance
(EESG) committee
The EESG Committee, led by ANZ’s Chairman, is responsible for
assisting the Board by overseeing measures to advance ANZ’s
purpose, focusing on ethical and ESG matters.
This includes the oversight, review and/or approval of ESG
reporting and objectives, corporate governance policies and
principles, customer complaints and other conduct-related
matters. 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 2020 Annual
Report on pages 42 – 43 available on anz.com/annualreport.
Ethics and Responsible Business
Committee (ERBC)
The ERBC, chaired by the CEO, comprises Senior Executives
and members 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 seeks to ensure ANZ
operates responsibly and achieves fair, ethical and balanced
stakeholder outcomes.
The Committee considers the social and environmental impacts
of the industries, customers and communities that ANZ serves.
It also considers our products and services and how they are
provided, as well as stakeholder and community expectations.
The ERBC is accountable to the Board EESG Committee in the
effective discharge of its responsibilities. It operationalises Board
objectives and makes decisions on issues and policies. It also
approves the bank’s ESG targets and monitors performance
against them quarterly.
Issues discussed during 2020 included: ESG implications of COVID-19;
other emerging social issues, including modern slavery and water
markets; vulnerable customers; product suitability; accessibility and
diversity; carbon policy; human rights policy; sensitive wholesale
transactions; and management of high risk customers.
5
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
We use the results to inform our strategy, ESG targets and
external reporting.
In 2020, our materiality assessment had an emphasis on the
‘social’ aspects of ESG, and specifically our support for customers,
employees and the community in response to COVID-19.
External views were sought from institutional investors, retail
shareholders, consumer advocates, financial counsellors, customers
and analysts. One-on-one interviews were conducted with the
external stakeholders by an independent consultant.
The bank’s response was well regarded by external stakeholders,
with several commenting how the banking sector has responded
to the pandemic has helped to restore community trust lost during
the Royal Commission. They did note, however, that despite the
positive steps taken since the Royal Commission, trust should
remain a key focus and its recovery is fragile.
Both external and internal stakeholder groups identified fairness
and ethical conduct, financial wellbeing and customer
experience as priorities. Some external stakeholders also
highlighted the importance of continuing to act on climate
change, while internal stakeholders emphasised the importance
of fraud and data security.
These insights were presented to the executive Ethics and
Responsible Business Committee and the Board Ethics, Environment,
Social and Governance Committee and helped to inform the
development of our ESG targets, as well as our continued response
to COVID-19 (including our Statement of Intent).
Our material issues
We considered the following in order to identify any changes
in risks and opportunities that should be reflected in the list of
material issues (as published on pages 7 – 8 of our 2019 ESG
Supplement available on anz.com/cs):
•our key material risks (refer to pages 52 – 53 of our 2020 Annual
Report available on anz.com/annualreport);
•our strategy, values and code of conduct (refer to pages 10 – 11
of our 2020 Annual Report available on anz.com/annualreport);
•media analysis;
•recent regulatory developments;
•peer review;
•industry trends, including the Sustainability Accounting
Standards Board Materiality Map and the World Economic
Forum’s 2020 Global Risks Report; and
•the United Nations Sustainable Development Goals (SDGs).
We concluded that banking regulation and financial and economic
performance should be added to our list of material issues. We also
incorporated supply chain management under the heading of
corporate governance (sustainable supply chain was listed as
a stand-alone material issue in 2019).
What matters most
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
shareholders and other stakeholders.
6
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
Top 5 material issues,
ranked by stakeholders Description of issue Location of disclosures Relevant UN SDGs
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.
2020 Annual Report, pages 16 – 17
available on anz.com/annualreport
2020 ESG Supplement, pages 13 – 14
and 17 – 22
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.
2020 Annual Report, pages 31 – 33
available on anz.com/annualreport
2020 ESG Supplement, pages 52 – 56
Customer
experience
Delivering value and improved customer experience through
appropriate financial products and services for all customers, small
business and retail.
2020 Annual Report, pages 18 – 23
available on anz.com/annualreport
2020 ESG Supplement, pages 17 – 26
Fraud and
data security
Policies and processes in place to prevent fraud and protect customer
data and privacy. Includes customer access to personal data.
2020 Annual Report, pages 19 – 20
available on anz.com/annualreport
2020 ESG Supplement, pages 27 – 31
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.
2020 Climate-related Financial Disclosures
available on anz.com/annualreport
2020 Annual Report, pages 34 – 37
available on anz.com/annualreport
2020 ESG Supplement, pages 40 – 48
7
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
Other material issues
(not ranked)Description of issue Location of disclosures Relevant UN SDGs
Anti-money laundering
and terrorism financing
Compliance with international sanctions, anti-money laundering
and terrorism financing requirements.
2020 ESG Supplement, pages 30 – 31
Banking
regulation
Regulation of the banking sector, including Government policy
on customer remediation and protection, codes of practice and
capital adequacy.
2020 Annual Report, pages 4 – 5,
16 – 17, 25 – 27 and 43
available on anz.com/annualreport
Corporate
governance
Appropriate governance frameworks in place (ie. processes and policies, including
those relating to risk management, executive remuneration and accountability
and supply chain management) to ensure ANZ is managed in the long-term
interests of stakeholders.
2020 Annual Report, pages 38 – 48
available on anz.com/annualreport
2020 Corporate Governance Statement
available on anz.com/corporategovernance
2020 ESG Supplement, pages 5 and 35 – 36
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.
2020 Annual Report, pages 18 – 19
available on anz.com/annualreport
2020 ESG Supplement, pages 25 – 26
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.
2020 Annual Report, pages 28 – 30
available on anz.com/annualreport
2020 ESG Supplement, pages 57 – 64
Financial
performance
Delivering strong financial results in the short and long term, including lending
and customer deposit growth.
2020 Annual Report, pages 1, 25 – 27
and 54 – 71
available on anz.com/annualreport
Housing
Availability of suitable and affordable housing options for all Australians and
New Zealanders.
2020 Annual Report, pages 22 – 23
available on anz.com/annualreport
2020 ESG Supplement, pages 49 – 51
Investing in the
community
Supporting the communities in which we operate through workplace giving
and volunteering; and recovery from natural disasters.
2020 Annual Report, pages 31 – 33
available on anz.com/annualreport
2020 ESG Supplement, pages 65 – 69
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.
2020 ESG Supplement, pages 13 – 16
and 57 – 64
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.
2020 ESG Supplement, pages 32 – 34
and 37 – 39
8
ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
ESG data
pack
KPMG assurance
opinion
Stakeholder engagement
One of the ways we create long-term value and deliver on our business strategy is through a
collaborative and proactive approach to building and maintaining relationships with stakeholders.
2020 has been an exceptional year as we have navigated through the bushfires in parts of Australia at the start of the year, followed
by the COVID-19 pandemic. Throughout, we have sought to be transparent and responsive in our communications and relationships
to demonstrate trustworthiness and to build 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.
How we engaged with them
•Phone and video calls,
emails and letters from our
branch staff and relationship
managers for specific
customer support, eg. in
response to COVID-19 and
those impacted by bushfires
•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
•Complaints Resolution Centre
•Social media
Key issues raised
•COVID-19 deferral support,
government assistance such

as Job Keeper
•Financial assistance packages,
advice and treatment of
customers in financial difficulty
or hardship
•Conduct and culture
•Product suitability
•Customer service
•Fees and charges
•Updates to ANZ’s digital apps
and internet banking platform
How we responded
Our response to the issues raised
by customers can be found on
pages 3, 13 – 14 and 17 – 31.
How we engaged with them
•‘My Voice’ survey of employee
engagement and regular pulse
surveys during COVID-19 crisis
•Regular interactive webcasts
and teleconferences with CEO
and Executive Committee
members
•Direct people leader
communication, including
regular performance
check-ins and formal annual
performance appraisals with
people leaders
•Internal communications
channels, including intranet
and Yammer
•Meetings with unions
representing ANZ employees
Key issues raised
•Our COVID-19 response with
a focus on employee health,
safety and wellbeing
•Strategic focus and business
priorities, including purpose
and values
•Growth and development,
including ‘New Ways of Leading’
•‘Speak up’ culture, including
raising ideas, issues and
concerns without fear of
negative consequences
•Engaging on key priority
areas (eg. financial wellbeing,
environmental sustainability
and housing) and our purpose
•Diversity and inclusion
•Flexible working arrangements
•Organisational restructuring
•Performance management
•Remuneration and reward
How we responded
Our response to the issues raised
by employees can be found on
pages 3, 13 – 16, 32 – 34, 46 – 58
and 57 – 69.
CUSTOMERSEMPLOYEES
How we engaged with them
•Appearance before House
of Representatives Standing
Committee on Economics
•Meetings with political
stakeholders, public officials
and regulators
•Submissions to parliamentary
committee inquiries (including
the House of Representatives
Standing Committee on
Economics) and other
government and regulatory
consultations
Key issues raised
AUSTRALIA:
•Response to COVID-19,
including how we are
supporting our customers

and employees
•Implementation of Royal
Commission recommendations,
and related government and
industry reforms
•Consultations on consumer
protection reforms, cyber
security and the consumer
data right
•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
•Economic analysis and outlook
provided by our Research team
NEW ZEALAND:
•COVID-19 response
•Regulatory issues including
responsible consumer
lending, conduct of financial
institutions, prudential
supervision and financial
advice
•Public policy development
on issues including climate-
related financial disclosures,
retirement savings, alternative
monetary policy tools, financial
inclusion, open banking and
the consumer data right, and
fresh water management
How we responded
We seek to listen to and
engage constructively with
government, regulators and
policy makers. In addition to
appearing before the House
of Representatives Standing
Committee on Economics,
we have participated in a
wide range of government
consultations and parliamentary
inquiries. We have also provided
data to Government to help
it understand the impact of
COVID-19 on the economy.
An overview of the work
underway in response to issues
raised is outlined on pages 3,
17 – 22, 27 – 31 and 49 – 56.
GOVERNMENT AND REGULATORS
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ANZ 2020 ESG Supplement Contents

Overview
Fair and responsible
banking
Environmental
sustainability
HousingFinancial
wellbeing
Voluntary tax
transparency
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pack
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opinion
How we engaged with them
•Interim and full-year results
briefings, and Quarterly
Trading Updates
•Strategy briefings,
Environment, Social and
Governance (ESG) analyst
briefings and other market
updates
•Annual General Meeting
•Disclosure documents,
including Results
Announcements, investor
presentations, external
reporting suite and other

ASX lodgements
•Dedicated ANZ shareholder
website
Key issues raised
•Approach to managing
the bank and supporting
stakeholders during and post
the COVID-19 pandemic
•Opportunities and challenges
associated with the current
operating environment
•ANZ’s strategic focus and
business priorities, including
the execution of our strategy
•Financial performance,
composition and sustainability
of earnings
•Capital and balance sheet
management, including
quantum of capital held,
impact of current regulatory
proposals and efficient use

of capital
•Balance sheet quality and
liquidity and funding positions
•Dividend decisions, franking
and dividend policy
•ESG approach, commitments
and progress
How we responded
We seek to provide shareholders
with quality information in a
timely manner through our
reporting suite, announcements
and briefings to the market, half-
yearly shareholder letters and
our dedicated shareholder site
at anz.com/shareholder.
In 2020, in addition to interim
and full-year results briefings,
we held our third annual ESG
briefing providing an update
on our approach to ESG, with
a focus on ESG in the context
of the current environment,
including social impacts of
COVID-19 and our response.
How we engaged with them
•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
•Support for customers
impacted financially by
COVID-19
•Economic impact of COVID-19
•Support for customers and
communities impacted by
bushfires, drought and other
natural disasters in Australia
•Responsible gambling
initiatives and policies
•Role in supporting Indigenous
social and economic
development
•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
•Opportunities and challenges
associated with homelessness
in Australia
•Vulnerable customers,
hardship programs and
consumer protection
•Conduct and culture
•Remediation and
compensation schemes
•Regulatory reform in financial
services, including the impact
of open banking
•Specific matters relating to
business lending customers
such as: carbon risk
management, the role of banks
in supporting the transition to
a low carbon economy, and
social and economic impacts
on immediately affected
communities
•Climate change policy and
priorities
•COVID-19’s impact on climate
change progress
•Mining companies’
management of high impact
activities
•Human rights grievance
mechanisms
•Animal welfare principles

How we responded
Our response to the issues
raised by NGOs can be found
on pages 3, 13 – 14, 17 – 22,
27 – 69. Our 2019 Climate-
related Financial Disclosures
are contained in a separate
document available at
anz.com/annualreport.
How we engaged with them
ANZ is a member of a number
of industry associations. Key
memberships include the
Australian Banking Association
(ABA), the Business Council of
Australia, Insurance Council
of Australia, the New Zealand
Bankers’ Association, and
Business New Zealand.
Through these memberships we:
•participated in discussions
about industry-wide issues and
strategy, particularly relating to
COVID-19; and
•provided input to industry
association responses to
parliamentary inquiries and
government consultations.
Key issues raised
•Response to COVID-19
•Implementation of Royal
Commission recommendations
•Industry initiatives to support
customers
•Open banking
•Climate change policy positions
as part of our review of industry
associations

How we responded
We engaged with key industry
associations, including the ABA,
to respond to COVID-19 and to
develop strategic responses to
reputational issues.
This year we also conducted
a review of our industry
associations to understand
alignment on key policy
positions such as climate change.
To date, all associations
reviewed are aligned, or at
least partly aligned, with ANZ
on climate change matters,
when considering their policies
overall. We will continue to seek
alignment on material issues
over time.
SHAREHOLDERS NON-GOVERNMENT ORGANISATIONS NGOs INDUSTRY ASSOCIATIONS
10
ANZ 2020 ESG Supplement Contents

Overview
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Progress against our targets is reviewed by the
Ethics and Responsible Business Committee and
twice a year by the Board Ethics, Environment,
Social and Governance Committee. Performance
against our 2020 targets, many of which are
aligned with the United Nations Sustainable
Development Goals (UN SDGs), is discussed
throughout this report.
As a founding signatory to the UN Principles for
Responsible Banking, we have set targets that
address our most significant potential impacts;
and are aligned with the UN SDGs and the Paris
Climate Agreement. These targets are indicated
with
Our ESG targets
Each year we set public targets that reflect our ESG priorities, support the delivery
of our business strategy and respond to our most material issues.
42% Achieved
37% Partially achieved or in progress
21%
Not achieved
2020 ESG targets
performance
This year we have achieved or
made good progress against
the majority of our targets.
FAIR AND RESPONSIBLE BANKING
Our ESG targets
1
Keeping pace with the expectations of our customers, employees
and the community, behaving fairly and responsibly and maintaining
high standards of conduct.
Targets
Relevant United
Nations SDGs
Develop and commence implementation of a new Vulnerable
Customer Framework to improve the support we provide to
customers experiencing vulnerability, by end 2021. (Australia)
Design and commence implementation of a human rights
grievance mechanism, using the UN Guiding Principles on
Business and Human Rights, by end 2021.
Achieve the 22 commitments (supported by 78 actions) in our
Reconciliation Action Plan, by end 2023. (Australia)
1. Unless otherwise noted, targets are Group-wide and cover the financial year 1 October – 30 September.
11
ANZ 2020 ESG Supplement Contents

ENVIRONMENTAL SUSTAINABILITYHOUSING
FINANCIAL WELLBEING
Supporting household, business and financial practices
that improve environmental sustainability.
Targets
Relevant United
Nations SDGs
Fund and facilitate at least $50 billion by 2025 towards
sustainable solutions for our customers, including initiatives
that help improve environmental sustainability, support disaster
resilience, 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 end 2021.
Develop an enhanced climate risk management framework
that strengthens our governance and is responsive to climate
change, by end 2022.
Achieve our 2021 – 2025 suite of environmental footprint
targets (outlined on page 46).
1
Improving the availability of suitable and affordable housing
options for all Australians and New Zealanders.
Targets
Relevant United
Nations SDGs
Fund and facilitate $10 billion of investment by 2030 to deliver
more affordable, accessible and sustainable homes to buy and
rent. (Australia/New Zealand)
Support more customers into healthier homes. (New Zealand)
Improving the financial wellbeing of our people, customers and communities
by helping them make the most of their money throughout their lives.
Targets
Relevant United
Nations SDGs
Support 250,000 customers to build a savings habit, by
end 2021. (Australia/New Zealand)
Publish Adult Financial Wellbeing Research to inform our product
design and financial literacy program delivery, by end 2022.
Establish seven new partnerships to expand the reach
and improve impact of MoneyMinded for vulnerable people,
by end 2023.
1. Our environmental footprint targets cover the period 1 July – 30 June.
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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.
Improving conduct and culture
We are working towards our aspirational culture and creating an environment
where employees are motivated and empowered to do the right thing and speak
up when they see something wrong.
1. A copy of our Code of Conduct and the full list of policies is available on anz.com/corporategovernance. 2. Percentages do not add to 100 due to rounding. 3. Total number of outcomes
does not equal 569 due to a small number of employees leaving ANZ with more than one open case against them.
We seek to support a strong ‘speak up’
culture and have increased opportunities
for two-way communication and
employee feedback through webinars,
team health checks and ‘pulse surveys.’
74% of our employees feel that they can raise issues and
concerns in ANZ without fear of reprisals or negative
consequences.
74%
five points from 2019
20202019
69%
Our Internal Audit group conducts culture reviews throughout the
year, supporting teams to understand their culture and impact on
ANZ’s aspirational and risk culture. The results of these reviews are
used to develop action plans to help tackle identified challenges
and drive a positive shift towards our desired culture.
We have continued to strengthen and embed the Accountability
and Consequence Framework. Further detail is provided on page 97
of the Annual Report, available on anz.com/annualreport.
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 remain
fit for purpose.
1
We expect our banking partners (such as suppliers,
service providers and other relevant third parties) to adopt and
maintain conduct and ethics principles similar 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 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 2020, 99.96% of our employees and contractors completed
the training. 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.
In 2020, there were 1,449 employee relations cases involving
alleged breaches of our Code, with 569 resulting in a formal
consequence or the employee leaving ANZ, down from 784 in
2019. Breaches ranged from general unacceptable behaviour
(37%) through to compliance/procedural breaches (26%),
attendance issues (17%), breaches of our Equal Opportunity,
Bullying and Harassment Policy (7%), email/systems misuse (6%),
fraud/theft (6%) and conflict of interest (2%).
2
Outcomes following
investigations of breaches this year included 93 terminations,
370 warnings and 97 employees otherwise leaving ANZ.
3
We recognise that we have more to do to ensure our people
feel comfortable speaking up.
EMPLOYEE ENGAGEMENT SURVEY (APRIL)
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Whistleblower policy
The Whistleblower Policy and program is a fundamental
component of a strong and effective risk management and
corporate governance framework. ANZ applies Australian
whistleblower regulations globally, save where local regulations
require a higher standard or impose differing obligations (reflected
in Country Schedules to the policy). The Whistleblower program
is one of many channels that encourages and empowers people
to speak up and raise concerns regarding misconduct freely and
without fear of reprisal.
The policy and program provide strong protections for individuals
who disclose wrongdoing, help uncover misconduct that may not
otherwise be detected, hold ANZ accountable to its ethical and
professional standards, and promote compliance with applicable
laws and the importance of a ‘speak up’ culture.
While new report volumes varied by month across the year,
year-on-year new report volumes are stable (156 reports in 2019),
demonstrating a continued willingness of individuals to raise
concerns.
Throughout the year, various initiatives designed to enhance the
effectiveness of the program have been completed, including: a
program of work to uplift reporting in order to support Board and
executive oversight of the program; and to deliver data-driven
insights to assist with the identification of emerging risks, trends
and themes in line with regulatory obligations and expectations.
A mandatory role-specific e-learning training module for employees
who have a designated role as an eligible recipient of Whistleblower
reports (over 350 employees across the organisation) has been
developed with allocation scheduled for 2021. This training reinforces
obligations under applicable Whistleblower laws and guides eligible
recipients on how to appropriately handle Whistleblower reports.
Additionally, to help drive continuous improvement, the program
undertook an external self-assessment benchmarking survey,
enabling the program to benchmark itself against international
survey participant organisations and validate key areas of focus and
future enhancements for the program.
We continue to raise employee awareness of the various ways
that they can ‘speak up’. All employees and contingent workers
are required to undertake annual mandatory training on the
Whistleblower Policy and their responsibilities and obligations
under it as part of the ‘Living the Code’ online module. In addition,
our Group Integrity team delivered 56 awareness sessions to
various business units across the organisation that referenced
the Whistleblower program/channel. COVID-19 restrictions have
impacted planned awareness-raising initiatives, including employee
awareness sessions. However, this has not adversely affected total
reporting volumes, which are in line with 2019.
Whistleblower investigation outcomes
Two-thirds of investigated reports in 2020 led to
recommended actions/outcomes. This is a strong indication
the Whistleblower program is effectively operating as
a channel to raise misconduct concerns and drive action
in response to staff ‘speaking up’.
In addition to staff disciplinary actions, where appropriate
(such as formal warnings and termination of employment),
substantiated matters resulted in recommendations for
other management action, including: policy and other
documentary review; coaching and informal counselling;
training; procedural remediation recommendations; cultural
reviews; and recommendations to issue communications
reinforcing expected standards of behaviour.
157 new Whistleblower
reports were made
during 2020.
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COVER R ESTYETveeriwiFa Contents

Engagement
In April, we ran our annual enterprise-wide employee engagement
survey including questions about our response to the COVID-19
pandemic to track whether our people felt they were receiving
adequate support. More than 31,000 employees (out of our
workforce of approximately 39,000) responded to the survey
with results showing a nine point increase in our engagement
score to 86%.
Since April, we have been running regular ‘pulse surveys’ to check
in with our employees and to see whether they continue to feel
supported – results have remained relatively stable.
In June we held an enterprise-wide, online discussion to give
employees the opportunity to talk about their wellbeing and also
reflect on their experiences during COVID-19. As part of this event
we asked people to undertake a team-based wellbeing survey –
the ‘Team Health Check’.
Employee engagement, wellbeing and development
We have continued to improve employee engagement, creating an environment
in which our people are able to learn and grow.
Many people said they were missing the social contact and face-
to-face interactions with colleagues, and that the blurring of work
life and home life had been a real challenge. Teams shared ideas
and tips on how to overcome these challenges, and our targeted
pandemic wellbeing tools were also discussed and promoted.
Wellbeing
At the start of the Australian ‘bushfire season’ we rolled out
wellbeing support for our employees – to those directly impacted
by the fires and those supporting distressed and traumatised
customers in impacted areas. This included:
•additional paid leave for impacted employees;
•mobilisation of employees from non-impacted locations
to provide relief in impacted areas;
•in-person critical incident counselling for teams and
individuals; and
•proactive wellbeing checks.
Resources developed by psychologists, including wellbeing tips
and tools for dealing with natural disasters, were made available
to our people. This included guidance for parents to help their
children manage the emotional trauma of the bushfires.
We also extended special paid leave for employees volunteering
in emergency services to ensure they were financially supported
while they served their community.
We have developed a range of online resources to support our
people through the COVID-19 pandemic and while working from
home. This includes guidance on managing work and the pressures
of home schooling; resources focused on the importance of keeping
connected with colleagues and family; and tips on managing
technology to help create clear boundaries between home and
work. We also launched HealthyMe Digital, an application that
provides a variety of expert wellbeing and psychological information.
It delivers bite-size content in a variety of formats including podcasts,
videos, articles, webinars and interactive activities. We also partnered
with a fitness club to offer a virtual exercise program for employees
and their families.
Our Employee Assistance Program (EAP) continues to be 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.
5.9% of our Australian
and 8.9% of our
New Zealand employees
used our EAP in 2020.
of employees said
ANZ is supporting
them during the
pandemic
of employees said
senior leaders have
been communicating
effectively
of employees
responded that
they felt supported
to manage their
psychological
wellbeing
94%95%84%
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Health and safety risks vary across the business, and our wellbeing
and safety plans include risk controls to account for these differences.
In response to the pandemic, we conducted a Group-wide COVID-19
risk assessment. We developed a response plan to manage wellbeing
and safety risks across all of our locations. This extended to ensuring
our contractors and visitors adhered to necessary protocols. Where
required, existing health and safety risk controls were reviewed to
include additional COVID-19-specific risk management.
We encourage early reporting of incidents/illness and hazards
in order to effectively support the wellbeing of our employees.
A Group-wide reporting tool to capture COVID-19 cases was
developed, along with clear guidelines on management of
suspected and confirmed cases, including support for impacted
employees and teams. Scenario planning for our large offices was
developed, and communication protocols agreed to ensure privacy
and confidentiality.
A training program was deployed to support employees working
differently, including from home. Guidance and support from
our wellbeing and safety team was also available for employees
experiencing physical discomfort while working or needing further
ergonomic guidance.
Data relating to our health and safety performance in 2020 is
available on page 94. This year we have seen a decrease in ‘lost
time injuries’, with no new identifiable trends. The majority of
these continue to be related to slips, trips, ergonomics and injuries
caused by bumping into stationary objects.
We also support the financial wellbeing of our people through
a number of programs and initiatives that are discussed in further
detail on pages 52 – 56 of this report.
Learning and development
We are investing in the development of our people, building the
capabilities critical to the delivery of our strategy.
Earlier this year we launched the ‘Creating Digital Minds’ on OWL
to help our people acquire the digital literacy skills required for the
future. ‘Creating Digital Minds’ is our most popular channel on OWL,
and includes targeted content to build a foundation in the basics
of banking, digital literacy and digital transformation.
In 2019 we collaborated with Melbourne Business School to
develop and deliver the ‘Data for Decision-Makers’ training program.
This year, following the success of the program, we digitised the
course content and made it available to all of our people via OWL.
The program enables our people to develop their data capabilities,
build a data analytics mindset and improve their decision-making
capabilities through the use of data. To date, over 1,700 of our
people have accessed the course online.

Aotearoa New Zealand Skills Pledge
ANZ New Zealand is demonstrating its commitment to
building workforce capability with its support of the Aotearoa
New Zealand Skills Pledge. Launched in May 2019 by the
Prime Minister and her Business Advisory Council, the Pledge
commits organisations to doubling investment in reskilling
and training hours by 2025, and to report annually on
that investment.
Over the last year, we reskilled people to meet our changing
customer needs, build resilience and to enable them to
move into in-demand areas of the bank. Examples include:
approximately 200 branch staff trained to support our
contact centre; and approximately 80 staff reskilled to
support our customer financial wellbeing team.
COVID-19 impacts and restrictions on classroom-based
learning have resulted in a decrease in formal learning
hours to 35,000 hours in 2020 (60,000 hours in 2019). We are
adapting our approach to more virtual delivery, including
coaching, digital applications, leader meetings/webinars and
videos – much of this learning is not currently captured, as
it occurs outside of our online learning platforms.
We will continue to invest in our employees’ learning and
development over the coming year and are confident we
can meet the Pledge requirements.
Almost 970,000 hours of
learning was delivered this year,
including over 530,000 hours
of compliance training.
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This year, like everyone, we have had to adapt how we work and
operate so as to better support our customers. We have sought to
help our customers access funds online or via mobile in the event
they were self-isolating, or their local branch was temporarily closed.
For example, in Australia, we have been issuing Visa debit cards
to transaction account customers who do not have Visa cards –
customers can choose whether they activate these cards. We have
also contacted passbook customers
1
to offer them an everyday
account – this includes a Visa debit card so they can use their
money to shop online or over the phone, and withdraw cash
at an ATM or in store.
For further details on how we are supporting our customers
through the pandemic, refer to pages 8 – 9 of the Annual Report,
available on anz.com/annualreport.
Providing suitable products and services
Our Product Suitability team is responsible for developing and
managing a number of ongoing customer contact programs together
with our Product teams. These programs seek to improve customer
outcomes and enhance financial wellbeing by helping our customers
better understand how to get value from their products.
This year, we continued to deliver our Concession Account
Suitability and Persistent Credit Card Debt programs. These
programs identify and contact customers that could be getting
better value from our products, providing them with options
to transfer to lower-cost options. Refer to the case study and
pages 18 – 19 of our Annual Report, available on anz.com/
annualreport for further details of the programs.
Both programs were paused in March to redirect staff to support
customers impacted by COVID-19. The Concession Account
Suitability program resumed in July. The Persistent Credit Card Debt
program will remain paused until the COVID-19 pandemic has eased.
Meeting our Design and Distribution Obligations
New Design and Distribution Obligations (DDO) will be effective
in Australia from October 2021. The legislation requires financial
product issuers and distributors to design products that are suitable
for a given target market and distribute them in a way so that
they reach that target market. This aligns to the work the Product
Suitability team has been doing to enable customers to choose
products that meet their needs.
To ensure compliance with these obligations, we have expanded
our Product Suitability team to include a dedicated DDO project
team responsible for the implementation of DDO across ANZ.
The team will work with our Product and Distribution teams to
determine the appropriate target markets for each product and
identify any required changes to our distribution practices.
Improving customer outcomes
While there has been significant focus this year on responding to the impacts of COVID-19,
we have not lost sight of our long-term priority to deliver better outcomes for our customers.
Our Persistent Credit Card Debt program identifies and contacts credit
card customers who are carrying persistent debt
2
on their card to help
them pay their debt faster.
Customers are offered financial education, and the opportunity
to close their card and repay the remaining debt at a lower
interest rate.
Earlier this year we contacted Chris,
3
an ANZ customer since
2015. Chris had a balance on his credit card of $6,914 (on a $7,000
limit) and the bulk of the debt was accruing interest at 20.24%
per annum. Chris hardly used his card for new purchases and
had been making payments only slightly above the minimum
monthly repayment amount.
Had he continued with this repayment behaviour Chris would
have taken more than eight years to pay off the debt – assuming
there was no further spending on the card – and accrued at least
$6,600 in interest charges over that time.
We contacted Chris to discuss potential options. He agreed to
an instalment plan with an interest rate of 7% that would enable
him to save around $4,800 in interest charges – and potentially
more if he was able to pay above the agreed instalment amount
each month.
Chris has taken the financial education to heart and has been
making additional repayments each month and is now on track
to pay off the debt in 3 years with interest savings of $5,500.
“Thank you very much for the call, love what the bank is doing.
You’ve been great at explaining everything in terms I understand
and I really appreciate it!,” said Chris.
To date, we have contacted 18,195 credit card customers carrying
persistent debt, with 1,450 customers taking up the instalment
plan offer.
CUSTOMER STUDY
HELPING CUSTOMERS TO GET ON TOP OF CREDIT CARD DEBT
1. Passbook customers need to go into a branch to withdraw money at the teller, as this
account type does not have the option to add an ATM card; nor does it have online or
telephone banking access. 2. 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. 3. Pseudonym.
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Helping our customers understand credit cards
In December 2019, we launched ‘ANZ Creducation’ an online
education series covering some of the basics of credit card
know how. Comprising five video tutorials and 18 articles,
the series spans several topics including payments, interest,
managing debt, balance transfers and budgeting.
Customers are able to explore topics such as how to make
the most of interest-free periods; what happens if they only
make the minimum monthly payment; things to watch out
for with promotional balance transfers; avoiding late fees; and
reasons to steer clear of cash advances.
Helping our customers understand how credit cards work
will help them get on top of their money and improve their
financial wellbeing.
Fixing things when we fail to get it right
We are committed to ensuring that fair, consistent and timely
remediation is provided to customers, with significant investment
being made across our Australia Retail and Commercial, Wealth
and New Zealand divisions to repay our customers where we
have fallen short.
Remediation is required when a systemic issue that has adversely
impacted customers is identified. The impact may be monetary
(eg. where we have incorrectly applied an interest rate or
overcharged fees), non-monetary (eg. updating terms and
conditions to provide a disclosure not previously given), or
a combination of both. In some cases, these mistakes are large
scale, affecting many thousands of customers.
Customer Remediation Principles, the key elements of which are
below, continue to guide our work to fix systemic errors, refund
impacted customers more quickly and learn from our mistakes
so they are not repeated in the future.
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
Our pace of remediation has been steadily increasing,
with approximately 1.8 million Australian customer
accounts remediated in the last 12 months, compared to
approximately 1.1 million customer accounts over the
18 months to September 2019.
1
We have implemented an ongoing education program to
share ‘lessons learnt’ and to highlight to staff the impacts
on customers when we fail to get it right. The program is
aimed at raising awareness and fostering a culture where
employees are clear on the role they play in delivering
quality customer outcomes and safeguarding our
customers’ interests.
We are fixing our past failures as quickly as possible and have
increased the number of people working on remediation. These
additional resources, together with an increase in infrastructure and
capability, are enabling the team to refund impacted customers
in a scalable and repeatable way. Our centralised and dedicated
customer remediation teams across Australia Retail and Commercial,
New Zealand and Wealth are focused on the prevention, detection
and execution of customer remediation activity.
CUSTOMER REMEDIATION PRINCIPLES
Customer focused
Fair, honest and efficient
Comprehensive, timely and transparent decision-making
Appropriate governance and oversight
Clear communication to customers impacted by
a remediation issue
Where relevant, a commitment to paying refunds or
compensation to customers without undue delay
1. The matter/stream is considered completed when all customer payments have been processed. In some cases, teams may continue to close out non-customer payments, closure
documentation and governance requirements beyond this point.
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As at 30 September 2020, there are around 1,200 people working
on customer remediation across the Group, both within and
outside dedicated remediation teams.
Our Australian Responsible Banking team has increased the number
of resources committed to remediating our customers from around
150 to around 370 since its inception in 2018. The team is currently
resolving identified fee or interest discrepancies with over 5.2 million
Retail and Commercial customer accounts. Since April 2018, we have
refunded approximately $223 million across approximately 2.9 million
customer accounts.
1
In addition, more than 610 people throughout
the Australia Retail and Commercial business are also focused on
smaller customer remediations, fixes and investigations.
Our Responsible Banking team in New Zealand has more than 110
dedicated remediation resources. As at 30 September 2020, they
have remediated nearly 105,000 customer accounts in total and
made payments of NZ$31.6 million.
Our Wealth Remediation team has almost 150 people dedicated
to remediation matters. As at 30 September 2020, the team has
remediated nearly 41,000 cases for inappropriate advice and fees
for no service in total and made payments of $124.1 million. This
includes the remediation matters which are being completed for
the ex-ANZ-owned aligned dealer groups (RI Advice, Financial
Services Partners, and Millennium 3) now owned by IOOF. ANZ acts
as the agent for IOOF to complete the remediation.
The Group’s customer remediation activities are regularly reviewed
by the Board. Directors are provided an overview of the status
of remediation matters; regulator engagement; repayments and
provisioning; and reviews underway to identify new matters.
Improving employee awareness of customer remediation
In Australia we have developed an ongoing education program
to share lessons and highlight the impacts on customers when
things go wrong. The program includes the following:
•education sessions in a purpose-built room designed to share
ANZ’s remediation journey – to date, over 1,200 people across
ANZ have attended sessions, including members of ANZ’s
Executive Committee and Board;
•employee awareness campaigns about our remediation
issues, highlighting the importance of individual
accountability;
•alerts for new customer remediations detailing what went
wrong, the customer impact, the key lessons and what we
are doing to put things right;
•knowledge sharing sessions with key senior leadership
groups across ANZ;
•tailored training activities for our frontline Retail and
Commercial teams; and
•weekly drop-in sessions where individuals and teams can
access the skills and expertise of specialists within the
Responsible Banking team.
In addition, we have delivered mandatory online Customer
Remediation training to targeted audiences within our Australia
Retail and Commercial, Technology and Transformation teams.
We have also established a Customer Remediation induction
program for new starters in our Business Transformation team.
In October 2020, the Federal Court of Australia approved
ANZ’s agreement with the Australian Securities and Investments
Commission (ASIC) to settle court action relating to the
charging of fees, prior to February 2016, for periodical payments
in some circumstances.
ANZ has previously conducted a remediation program in
relation to periodical payment fees charged over the period
since 1 January 2008 and, since 2016, has made or will make
payments totalling over $49 million. Certain periodical payment
fees were also the subject of a class action which was settled in
December 2018, with ANZ paying approximately $760,000.
In the action brought by ASIC, ANZ has acknowledged
contraventions which relate to:
•the wrongful charging of some periodical payment fees in
the period from 26 July 2013 to 24 September 2015; and
•not remediating some fees charged to customers between
July 2005 and December 2007.
ASIC had pursued ANZ in respect of 1.3 million occasions
of fees being charged. In the settlement, ANZ admits to
contraventions in respect of 327,895 occasions, relating to
fees totalling approximately $3.1 million. ANZ also admits
to six other related contraventions.
As part of the settlement ANZ will pay $10 million, and
$1 million towards ASIC’s costs.
ANZ AND ASIC SETTLEMENT OVER PERIODICAL PAYMENT FEES
1. In certain instances:
• we make a payment to one of our community partners in lieu of a payment to a customer account. As at 30 September 2020, charity payments were made for ~238k accounts totalling ~$744k;
• we pay the customer via cheque. As at 30 September 2020, cheques had been issued for ~521k accounts totalling ~$59m. A portion of the cheques remain unpresented;
• we offer certain customers access to payment via a payment portal. As at 30 September 2020, offers to access payment via payment portal have been issued for ~10k accounts totalling ~$379k;
• we transfer payments through a process for unclaimed monies (includes payments for de-registered companies). As at 30 September 2020, payments transferred via this process have been
made for ~2k accounts totalling ~$1m.
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Measuring customer trust and experience
One of the ways we gauge whether our behaviour is meeting
community expectations is through the RepTrak® community
sentiment indicator. Conducted quarterly by Reputation Institute,
RepTrak® measures the top 60 companies in Australia (by revenue)
asking survey respondents to ‘Rate your level of trust/admiration/
good feeling/esteem for [COMPANY ].’ It assesses seven dimensions:
products/services; innovation; workplace; citizenship; governance;
leadership; and performance.
TARGET
RepTrak® community sentiment indicator – lead and improve
relative to peers.
PERFORMANCE
ANZ’s RepTrak® community sentiment indicator has
increased to 62.9
1
(from 58.8 at 30 September 2019).
We are ranked 2nd relative to peers.
Across the industry, community sentiment scores have fluctuated
throughout the year. In the RepTrak survey we led for the majority of
2020 and were ranked second based on July to September results.
Net promoter score
In addition to measuring community sentiment, we continue to
measure the experience of our customers through our strategic Net
Promoter Score. Net Promotor Scores enable us to gauge whether
we are meeting customer needs and expectations, and how we are
performing relative to peers. It 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).
Retail: ranked 4th
(no change from 2019)
5
Commercial and agricultural:
ranked 5th
(no change from 2019)
6
Institutional: ranked 1st
(no change from 2019)
7
Retail: ranked 3rd
(up from 4th at end of 2019)
2
Commercial: ranked 4th
(down from equal 3rd at end of 2019)
3
Institutional: ranked 1st
(no change from 2019)
4
AUSTRALIA
NEW ZEALAND
While our performance relative to peers improved for our Australian
Retail customers, we failed to improve relative to peers for our
Australian Commercial and New Zealand Retail and Commercial
and Agricultural customers. Our Institutional ranking remains at
number one in both Australia and New Zealand.
1. RepTrak® community sentiment indicator score is out of 100. 2. Roy Morgan Single Source, Australian population aged 14+, Main Financial Institution, six-month rolling average to September
2020. Ranking based on the four major Australian banks. 3. DBM Business Atlas. Base: Commercial Banking (<$100 million annual turnover) Main Financial Institution customers. Six-month
average to September 2020. Ranking based on the four major Australian banks. 4. Peter Lee Associates, 2020 Large Corporate and Institutional Relationship Banking surveys, Australia. 5. Retail
Market Monitor, Camorra Research, six-month rolling average to September 2020. Ranking based on the five major New Zealand banks. 6. 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 2020. 7. Peter Lee Associates, Large Corporate
and Institutional Relationship Banking surveys, New Zealand 2020, ranked against the Top 4 competitors.
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Our research shows that COVID-19 has significantly impacted
people’s financial wellbeing. Loss of employment, or reduced
hours or pay, have disproportionately impacted people already
experiencing lower financial wellbeing. Through April and May, the
percentage of Australian adults struggling to meet bills and credit
payments, with little or no savings and low confidence about their
financial future, increased by 3.3 points to 15.5%.
1
We know that these people are more likely to be experiencing
vulnerability and are at risk of financial difficulty. We also recognise
that there are people experiencing vulnerability because of their
life circumstances.
The Banking Code of Practice requires that we ‘take extra care’
with customers experiencing vulnerability.
In July 2020, we established a dedicated Banking Code and
Customer Vulnerability team as part of our Customer Resolution
portfolio. We have set a target to develop a new Vulnerable
Customer Framework to improve the support we provide to
customers experiencing vulnerability, by end of 2021. This work
will be informed by input from key stakeholders – regulators,
customers, consumer advocates and financial counsellors.
Seeking to reduce problem gambling
In December 2018, we introduced a restriction on the use of
credit cards for gambling transactions. The restriction prevented
gambling transactions where the customer’s card has been utilised
beyond 85% of the account credit limit. This change was aimed at
reducing harm to potentially vulnerable customers by having credit
remain available for more essential purchases.
From implementation until September 2020, we have seen 12%
of the total gambling transactions attempted declined as a result
of this gambling control. We have also seen that the number of
declined gambling transactions from January to September 2020
has decreased by 28% against the prior comparative period
(from around 391,000 in 2019 to around 283,000 in 2020).
TARGET
Develop and implement a gambling self-exclusion capability
for consumer credit card accounts by end 2020. (Australia)
PERFORMANCE
We have commenced work on the development of
a gambling self-exclusion tool. We have engaged with
behavioural and psychology experts from Gambling Victoria
and Monash University to inform its design. It remains our
intention to implement this tool, however, our plans have
been impacted by the prioritisation of COVID-19 related
work. As part of 2021 planning, we will revisit the timing
for implementation.
Supporting customers in financial hardship
There are times when our customers are unable to meet their
financial commitments. In some cases, the financial difficulty
is temporary and our customers just need time to get back on
track. While in others, the challenge is permanent and customers
may need extra help to review and restructure their financial
arrangements. Whatever the situation, we work with customers
to find a solution that is respectful, fair and appropriate.
Assistance offered to customers includes payment moratoriums,
temporarily reducing payments, debt waivers, long-term payment
arrangements, referral to a financial counsellor, information in
relation to budgeting and access to our financial literacy programs.
Financial counsellors representing ANZ customers have access to
a hotline managed by Customer Connect, our dedicated customer
hardship team, and supported by an independent financial
counsellor liaison officer.
We endeavour to instil a culture of empathy and train our staff to
identify and respond appropriately to customers’ needs, assisting
them through a difficult period so they can get back on track.
In the first few months of the pandemic we received 93,953
2

applications for assistance, more than four times the volume of
applications received in 2019. We mobilised employees in our branch
network and other teams across ANZ to assist our customers and
provide COVID-19 support packages. Refer to pages 8 – 9 of our
Annual Report, available on anz.com/annualreport for further detail
of support provided to customers impacted by COVID-19.
Supporting customers experiencing vulnerability
We are supporting and building the financial wellbeing of customers potentially vulnerable to financial
exclusion, including those experiencing financial hardship, living on low incomes or with low levels of money
management capabilities and confidence.
1. The ANZ Roy Morgan Financial Wellbeing Indicator – quarterly update, July 2020. 2. Requests for COVID-19 assistance received between 1 March 2020 and 31 May 2020.
In the past year we have
received 154,104 applications
for hardship assistance in
Australia. Of these, 137,139 were
due to the impacts of COVID-19.
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Kildonan CareRing
Since the introduction of COVID-19 restrictions, we have observed
an increase in customers seeking assistance due to the impacts of
family and domestic violence. Customers in these situations may
also be experiencing financial hardship resulting from financial
abuse, unemployment or reductions in income.
We continue to support the CareRing program, an initiative started
five years ago in partnership with Uniting (Kildonan), to help make
a difference in the lives of these customers.
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.
A focus on family and domestic violence
Our specialised hardship team has received family and domestic
violence awareness training, delivered with the support of Financial
Counselling Australia.
We have also recently implemented a program, in partnership with
CareRing, providing triage support to customers requiring immediate
financial assistance in order to leave a domestic violence situation.
Assistance offered includes family counselling, drug and alcohol
support, mental health support, housing assistance and referrals
to other relevant services.
To date, we have assisted 30 customers and provided them with
a combined total of almost $41,000 to assist them on the journey
to recovery.
Financial counselling is a key support for women who experience
domestic and family violence. Financial stress and economic
dependency can keep women in, or cause them to return to,
abusive relationships. In cases where a relationship has ended,
women may be left with debt or may experience ongoing
economic abuse.
This year we donated $500k to the Financial Counselling
Foundation. The donation will be used to fund specialist domestic
and family violence financial counsellors, and to support the
wellbeing of financial counsellors.
Way Forward Debt Solutions
The Australian Banking Association supported initiative
‘Way Forward Debt Solutions’ (Way Forward) is now in its second
year of operation. Initially funded by donations from Australia’s four
major banks, Way Forward is a registered charity providing free debt
management services to assist 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 repayments though one regular payment
by the client to Way Forward, which is subsequently distributed
to creditors.
This year, we referred 30 customer accounts with over $573,000 in
lending. We support Way Forward because it is an alternative to
fee-for-service debt management firms.
In 2020 we referred
501 customers to the
CareRing program.
Many of our customers were impacted by the bushfires in Australia earlier
this year – with homes, business, properties and livestock destroyed.
We quickly implemented our financial relief package
1
and
provided direct financial support to home loan and small
business customers to help support families through
their financial difficulties and businesses that served their
local communities.
1,815 impacted customers accessed
our financial relief package following the
fires, and more than $259,000 was provided
in direct financial support to approximately
100 home loan and small business customers.

Refer to page 69 for further detail on our response to the
Australian bushfires.
HELPING CUSTOMERS IMPACTED BY BUSHFIRES
CASE STUDY
1. Some of the support measures offered in the financial relief package included
suspension of repayments on loans, including credit cards, for up to three months; and
waiving of fees for restructuring business loans considered necessary due to the impacts
of the event.
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Managing customer complaints
We are improving our complaints management so we can provide
better experiences and fairer outcomes.
Internal Dispute Resolution (IDR) plays a vital role in protecting
customers. Fair and robust IDR assists with recognising and fixing
problems that arise, both at an individual customer level and across
the business. It allows us to ‘hear’ where changes need to be made
and serves to inform us when we are not meeting customer or
community expectations.
We have commenced a program to review and improve our
IDR policies, systems and practices, with updates provided to the
Board and the Australian Securities and Investments Commission.
Capability and quality improvement initiatives support our
objectives of fair, consistent and well-communicated complaint
outcomes to our customers.
Further detail on the improvements made to our IDR is provided
on pages 20 – 21 of our 2020 Annual Report, available on anz.com/
annualreport.
TARGET
Complete a review of ANZ’s customer complaints policies and
standards by end 2020 to validate the improvement in our IDR
processes with respect to:
•recording, management and escalation of complaints; and
•systemic issue identification and management. (Australia)
PERFORMANCE
We have completed the review and identified improvements
to our internal dispute resolution processes and capabilities.
A significant number of these improvements have now been
completed, with the remainder on track, for completion in 2021.
We have established a Customer Resolution portfolio that
is dedicated to working with our customers when they have
a problem. The portfolio is focused on improving the way
we handle our customers’ complaints in order to resolve
complaints earlier and improve overall complaint resolution
timeframes. We have recruited additional employees to
support timely complaint resolution.
A Systemic Issues Management function has been
established with a focus on using complaint data and
advanced techniques (such as machine learning and
artificial intelligence) to identify issues early.
Our internal assurance teams will review and assess the
operational effectiveness of changes.
Complaints management
We encourage our frontline employees to resolve complaints on first
contact. If this is not possible the complaint can be escalated, by our
employees or the customer, to our specialist complaint resolution
team to investigate and seek to resolve the complaint. If a customer
is not satisfied with the proposed resolution of their complaint, they
may escalate their complaint further to our Customer Advocate or
the external Australian Financial Complaints Authority, or the Banking
Ombudsman Scheme (BOS) in New Zealand.
Data relating to complaints is available on pages 97 – 98.
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Australia
Retail and Commercial escalated customer complaint volumes
1

decreased 11% from 2019, with a reduction across all categories
except those relating to customer financial hardship and channel
accessibility. Complaints relating to delays in processing requests
increased, with the bushfire and COVID-19 impacts driving
activity in loan assessments (increased by 16%), requests for
financial relief packages (increased by 33%) and, more generally,
customers to contact the bank (increased by 6%). Issues generating
the most complaints included product interest rates and fees
(14% of complaints received), service quality (14% of complaints
received) and customers experiencing financial difficulty
(9% of complaints received).
Complaints associated with our consumer credit and general
insurance, direct life, smart choice super, share investing and our
financial planning business increased by 26%, from 1,676 complaints
in 2019 to 2,107 complaints in 2020. This increase was driven
primarily by: a 30% increase in complaints about Consumer Credit
Insurance being applied to credit cards where the customer hadn’t
requested or didn’t require the insurance; and a 47% increase in
complaints about our Share Investing business – mostly the result
of processing delays encountered when opening a new account.
The percentage of complaints resolved within the first day
of receipt decreased to 26% (34% in 2018); the percentage of
complaints resolved within five days of receipt increased to 66%
(63% in 2019); and the percentage of complaints resolved within
21 days of receipt increased to 83% (80% in 2019).
We have increased resources in our complaints function, and
are improving monitoring and training. We are developing a new
complaints recording and management system that will enable
improved insights and analytics of complaint themes and support
improved case triage, allocation, complaint resolution and systemic
issue management. Rollout of the new system is scheduled for
completion by end September 2021.
New Zealand
In 2020, we changed our complaint capture methodology to align
with other New Zealand banks and to meet the data requirements
for the New Zealand Banking Ombudsman Scheme’s complaints
dashboard (which was released in August 2020). As a result we
excluded complaints received via customer feedback surveys and
overall complaint volumes have decreased by 10% from 2019.
Excluding complaints received via customer feedback surveys in
2019, Retail and Business Banking complaint volumes increased by
4% in 2020. Complaints relating to customer service issues accounted
for 40% 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. There was also an increase in complaints related to
online scam activity, the use of remote-access software and blocked
international money transfers. Complaint trends observed during
COVID-19 lockdown included: complaints about wait times to access
hardship services; branch availability and opening hours; and manual
authentication issues for customers calling contact centres.
Wealth-related complaint volumes almost tripled, from 345
complaints in 2019 to 932 complaints in 2020. This increase was
driven by: customer concerns about investment or KiwiSaver losses
as a result of the investment market response to COVID-19; and
the wind-up of our Bonus Bonds scheme which led to a spike in
complaints about the process to redeem bonds.
The percentage of complaints resolved within the first day
of receipt increased to 80% (79% in 2019); the percentage of
complaints resolved within five working days remained relatively
stable at 91% (decreased 0.2% from 2019); and the percentage of
complaints resolved within 21 calendar days of receipt improved
to 96% (94% in 2019).
ANZ Customer Advocate
The volume of reviews completed by the Customer Advocate
fell by 12% compared to the prior year, primarily as a result of the
sale of our Wealth businesses. The majority of reviews related to
disputes about general banking products (eg. mortgages, savings
accounts and credit cards). Data regarding volumes and outcomes
is included on page 98.
21 days
2020
2019
83%
80%
2020
63%
66%
2019
5 days
1 day
2020
2019
26%
34%
AUSTRALIA COMPLAINT RESOLUTION RATES
21 days
2020
2019
96%
94%
1 day
2020
201979%
80%
NEW ZEALAND COMPLAINT RESOLUTION RATES
2020
91%
91%
2019
5 days
1. Includes complaints associated with our consumer credit and general insurance, direct life, smart choice super, share investing and our financial planning businesses.
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Improving customer experience through digital solutions
We believe our products and services should provide great functionality and help build financial wellbeing.
DIGITALLY ACTIVE CUSTOMERS USING
ANZ APP OR INTERNET BANKING
THE POPULARITY OF DIGITAL TRANSACTIONS
VIA ANZ APP OR INTERNET BANKING
CONTINUES TO INCREASE IN 2020
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 120 million in 2019 to 192 million in 2020 in Australia.
1. Customers active in the last 60 days. 2. Customers active in the last 90 days.
3.7 million
1
1,103 million
40%
1.55 million
2
178 million
35%
(up from 3.6 million in 2019)
(up 12% from 2019)
(up 10% from 2019)
(up from 1.50 million in 2019)
(up 7.4% from 2019)
(up from 26% in 2019)
AUSTRALIANEW ZEALAND
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the streamlining of our hardship application process; automation
of credit decisions for our retail customers; and our online business
lending platform for small businesses (refer to case study on page 19
of our Annual Report, available on anz.com/annualreport).
In New Zealand, we have developed digital solutions to make
it easier for our business customers to manage their finances as
they run and grow their business. This year, we partnered with
Expensify to link ANZ transactional data with their business expense
management software, automating the expense management
process. In addition, we have expanded our partnership with Smart
Payroll to enable an additional 5,000 ANZ business entities to access
cloud-based payroll solutions.
We continue to develop new features in our ANZ App, goMoney
and internet banking to make banking easier and improve the
financial wellbeing of our customers. This includes the ability to
open new accounts, activate a card, set or change a card PIN and
temporarily block and unblock a card to protect an account from
theft and fraud. For further details refer to page 18 – 19 of our
Annual Report, available on
anz.com/annualreport.
Our customers have changed the way they do their banking
in recent years. They are visiting branches less frequently,
with the percentage of value transactions conducted in
branch declining year-on-year. At the same time, demand
for our contact centres and hardship teams has grown
significantly. An increasing majority of our customers prefer
the convenience of doing their banking when it suits them
– via our apps, online and through call centres. While many
of our customers have already changed their banking habits,
we recognise the transition will be more challenging for
some customers.
This year, we reduced the number of branches by 79 in
Australia and 23 in New Zealand. We wrote to customers to
let them know about these closures in advance, allowing
time to discuss alternative banking methods with them,
including online, telephone and mobile banking. We also
worked with our potentially vulnerable customers to help
them with alternative branches, digital options, using the
contact centre and debit cards.
Most of our products and processes were designed for cash, cheques,
passbooks, paper application forms and manual operations. We need
to simplify our product and technology systems, and offer solutions
that create more value for our customers and for our shareholders.
We are using digital technologies to transform our business, so
that we can:
•better meet rapidly evolving customer expectations;
•simplify our products, processes and systems;
•improve our customers’ financial wellbeing;
•lower risk through highly automated systems and processes; and
•strengthen our financial performance.
This year, in Australia, we activated our new One Customer View
platform (OCV ). OCV provides a centralised holistic view of our
customer records, pulling together information from over 70
systems. This has many customer benefits, such as improved
identification of existing ANZ customers at time of application,
avoiding unnecessary requests for information that we should
already have. The implementation of OCV has also supported
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Cyber security, data protection and privacy
ANZ has many layers of security controls to protect and defend the bank, and maintains
a 24/7 Security Operations Centre to help keep the bank, our staff and customers safe online.
Cyber and information security – embracing
innovation securely
We manage a considerable amount of personal and confidential
information about our customers and internal operations. Failure
to adequately manage our cyber and information security risk
may result in significant financial losses, major business disruption,
inability to deliver customer services, or loss of data or other sensitive
information and may cause associated reputational damage.
We have observed a significant increase in the pace, scale and
sophistication of cyber-attacks across the industry, including
ransomware
1
and denial-of-service attacks.
2
In response, this
year we have continued to invest in cyber security across the
organisation on technology and other capabilities. This investment
helps ensure we remain in a strong position to keep our systems,
data and customers safe from cyber-attacks and information
breaches, while enabling innovation and transformation.
We blocked over 12 million malicious
emails intended for our employees in the
month of July 2020 alone, an increase of
more than 8 million emails when compared
to October 2019.
OUR REFRESHED ENTERPRISE SECURITY STRATEGY PRIORITISES THE FOLLOWING THREE STRATEGIC OBJECTIVES:
Embrace innovation
Enable early adoption of new
technologies for our customers to
deliver business value and great
customer experiences at reduced cost
and increased speed of delivery.
Embrace security
Embed security in everything we do,
ensuring security culture is set at the
top, practised by everyone, designed
into systems and operation, and
meets regulatory requirements.
Secure our foundations
Secure ANZ, our systems and
customer information from cyber-
attacks and information breaches.
1. Malicious software that locks out computer functionality, for example, encrypting personal data, and offers to restore the functionality for a fee, which is extortion. Paying the fee does not
guarantee removal of the ransomware, which can lay dormant ready for attack in the future (eg. the impact of WannaCry). 2. A distributed denial-of-service (DDoS) attack is an attempt to
make an online service unavailable by overwhelming it with traffic.
To ensure financial institutions have the right capability and plans in place to
keep up with advancing cyber threats, the Australian Prudential Regulation
Authority introduced Prudential Standard CPS 234 Information Security (CPS 234),
which took effect on 1 July 2019.
A major focus of CPS 234 is to make sure that responsibility for
information security is shared right across an organisation – not
just in the IT or security departments.
Our comprehensive information security policy and standards
align with CPS 234 requirements. We have well-established
processes for: updating our security policy and standards in line
with changing threats; and managing information and cyber
security risks through our Risk Management Framework (RMF).
Our Three Lines-of-Defence Model ensures overall governance
of risk management across ANZ. Further detail
on our RMF and Three-Lines-of-Defence is available on page 50
of our Annual Report, available on anz.com/annualreport.
We have assessed our maturity against each of the 24
requirements within CPS 234 and concluded that the bank is
compliant. An external review and assurance of ANZ’s readiness,
adoption and compliance to CPS 234 noted that our current
approach is comparable to our peers.
CPS 234, APRA’s INFORMATION SECURITY STANDARD
CASE STUDY
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This year, as part of our Security Behaviours and Influence program we launched ‘Security
Essentials’, a dedicated online cyber security training course for our people.
Split across three modules, the course incorporates relevant
and engaging cyber security education for both home and
the workplace, using scenario-based activities to improve the
learning experience. It equips our people with simple steps to
protect themselves, ANZ and our customers from cyber threats
and information breaches.
A phased roll-out was undertaken across the year, adopting a
test and learn approach (from a technical testing and customer
feedback perspective) in order to facilitate greater engagement
and adoption. Response to the course material has been very
positive, demonstrating both the personal and
workplace applicability of the content.
All of our people and contractors are required to complete
‘Security Essentials’ within two months of commencing with
ANZ and then on an annual basis. By September 2020, over
98% of our people had completed the training.
The delivery of ‘Security Essentials’ is integral to achieving our
strategic objective to ‘embed security’ in everything we do.
SECURITY ESSENTIALS: NEW MANDATORY LEARNING FOR ALL STAFF
CASE STUDY
Data protection and privacy
A recent survey of Australian community attitudes to privacy
1

revealed that Australians view identity theft and fraud along with
data security and data breaches, as the biggest risks to privacy. In
addition, over half of Australians were more concerned about the
protection of their personal information as a result of COVID-19.
We collect personal information to provide banking services to our
customers. We are obligated to use that information in a way that
builds trust and mitigates the potential for negative impacts on
financial wellbeing, privacy and human rights.
Our use of data must not only satisfy all legal and regulatory
requirements, but also align with our Data Ethics Principles
(Principles). All new data-use proposals are reviewed against these
Principles. The Principles supplement our Code of Conduct and
guide our people to ask not only ‘can we use data in this way?’
but also ‘should we?’.
When developing products, services, and insights for our
customers, employees, and the wider community, we use the
Principles to seek to ensure that our use of data:
•puts the interests of our customers first;
•builds trust;
•respects human rights; and
•goes beyond compliance with the applicable laws and
regulations.
Failure to use our customers’ data ethically can result in significant
reputation damage, loss of customer trust, regulator investigations
and penalties for ANZ, including fines and liability for compensation.
We recognise that to be successful as a digital bank we need to
deliver innovative, secure and reliable products and services faster.
To ensure security is built into the design and delivery of every
new product and service, we have integrated security support
services throughout our business and delivery teams. This enables
us to deliver new products and features faster, without introducing
new risk.
While technical controls are important, people are our first line of
defence. We know that while our controls enable us to block millions
of malicious emails each month, some emails still make it through to
our employees. As well as a range of technical measures, education
is also a key strategy – fostering a security-centric culture within
the bank and, more broadly, across the community. We operate
a comprehensive Security Behaviours and Influence awareness
program that includes delivery of customer education.
We track the effectiveness of our staff education program through
our Security Behavioural Index (SBI) comprising several data points,
including phishing click throughs and data loss protection events.
The SBI continues to evolve to incorporate new behaviours and to
reflect improvements to our data protection capability, which will
enable greater visibility on potential data loss events caused by
staff behaviours.
This year, customer education initiatives included podcasts and
education materials encouraging four simple steps for improved
cyber security. Our educational campaigns such as ‘Protect your
Virtual Valuables’ (external focus) and ‘Simplifying Cyber’ (internal
focus), which has transitioned to a series of podcasts during
COVID-19, have helped to engage and educate employees,
customers and communities on how to play their part in
securing their data and personal information.
1. Office of the Australian Information Commissioner, Australian Community Attitudes to Privacy Survey 2020, September 2020.
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We have provided social and economic insights to Australian and
New Zealand governments to inform their development of targeted
recovery programs through COVID-19.
Insights included:
•shutdown impacts on households, businesses and the
broader economy;
•household and business financial measures, including
mortgage delinquency rates and working capital usage; and
•government stimulus impact on households
and the economy.
To protect the human rights and privacy of our customers we
removed all personal information and focused on geographic
and industry-related insights and trends.
SUPPORTING AUSTRALIAN AND NEW ZEALAND AUTHORITIES WITH COVID-19 DATA INSIGHTS
CASE STUDY
Our Data Event Management process puts our customers’ interests first by
managing the risk of harm to them through loss of their data.
In 2019, an industry-wide breach related to a property valuation
provider in Australia meant some of our customers’ data was
publicly exposed. When we were made aware of the third-party
breach, our Data Event Executive Response team suspended
the use of the valuer and investigated specifically which ANZ
customers were affected.
We notified our potentially impacted customers and placed
‘red flag’ alerts in our systems to prevent any fraudulent activity
resulting from the breach. We also provided our
customers with an international credit alert system
subscription to allow them to monitor their credit activity.
We then completed a vendor reassessment that identified key
issues to be resolved by the property valuation company, and
ensured all the identified key issues were remediated before lifting
the suspension on use of their services.
PROTECTING OUR CUSTOMERS’ DATA PRIVACY
CASE STUDY
Data governance at ANZ
Our approach to managing the risks associated with data
protection is guided by our Data Governance Framework (DGF),
our Group Privacy Policy and relevant legislative requirements.
Our Data Protection Officer (DPO) and Enterprise Data Governance
(EDG) team have Group-wide oversight of privacy related risks.
Our DPO provides advice on privacy and data protection at an
enterprise level. The EDG team collaborates with divisional and
country privacy experts and legal counsel to ensure compliance
with applicable laws. They provide coaching, education and tools
for divisions and business units to embed privacy obligations
and awareness across operations.
We have reviewed and improved our data breach processes
to ensure that our employees and suppliers are aware of their
responsibilities in line with both the European Union General Data
Protection Regulation and the Office of the Australian Information
Commissioner (OAIC) Notifiable Data Breach Scheme. These
processes inform a centrally driven and consistent approach to
how we respond to actual or potential data breaches.
This year, we had two privacy incidents that were reported to the
OAIC under the Notifiable Data Breach Scheme. These breaches
were the result of human error and not a malicious or criminal
attack. We contacted 22 customers directly to outline the potential
impacts to them, what actions we had taken to remedy the breach
and how to contact us if they had further questions. In addition to
this we have proactively notified ANZ customers who have been
potentially impacted by third-party data breaches, refer to case
study for further information.
As the global privacy landscape is changing rapidly, we have
also updated our privacy training. This course is mandatory for all
employees and covers Privacy, Competition Law and Consumer
Protection Law. It is aligned to ANZ’s updated Privacy Policy and
has interactive content and real-life scenarios to enable employees
to understand how the privacy policy can be applied to their
day-to-day operations.
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Financial crime
During the COVID-19 pandemic, online criminal activity has
increased to an unprecedented level.
Within weeks of the start of the pandemic, thousands of new
COVID-related websites had been created around the world. Some
of these websites have been hosting phishing attacks; selling fake
COVID-19 testing kits, supplements or cures; offering fake income
support from governments; and generally trying to entice people
to enter their personal details, subsequently leading to identity
theft or fraud.
Our retail and commercial customers have increasingly fallen victim
to investment and remote access scams. Remote access scams
typically target people at home and the increase in victims is not
unexpected given the stay-at-home health directions. We have also
seen a number of customers trying to supplement lost income
through risky investments purported to be high yield, such as
crypto-currencies.
This year, our Scam Assist team investigated over 5,000 individual
scams impacting our Australian Retail and Commercial customers.
Following a victim making a payment to a scammer, the scammers
will typically rapidly move the money through various bank
accounts and often the money is ultimately sent overseas. This
rapid movement of value limits the ability of banks to retrieve
funds for victims with significant amounts unrecoverable each year.
However, notwithstanding these challenges in recovering funds,
we were successful in recovering approximately $25 million on
behalf of victims. Refer to page 20 of the Annual Report, available
on anz.com/annualreport for further detail.
Our Financial Crime Portfolio consists of over 400 experts who act
swiftly and collaboratively to identify and manage threats to our
customers and the broader community from money launderers,
financial supporters of terrorism, sanctions evaders and other
perpetrators of financial crime.
Our employees and contractors undertake annual training to
ensure they understand their role in preventing financial crime.
We work in partnership with regulators, security and law
enforcement agencies, government and industry, to disrupt and
prevent the impacts of financial crime across the community. This
includes our participation in industry groups (eg. the Fintel Alliance
Scams working group in Australia) and Public Private Partnerships (eg.
Fintel Alliance in Australia and Financial Crime Prevention Network
in NZ), with a focus on areas such as enhanced financial intelligence
sharing and protecting the community through initiatives such as
the Coalition Against Child Pornography in Australia.
We have supported International Fraud Awareness Week and
Australia’s National Scams Awareness Week. We are a founding
member of the Australian Financial Crimes Exchange, and partner
with ID Care (an Australian and New Zealand not-for-profit charity
dedicated to supporting victims of identity theft).
Fraud
Our Fraud Policy sets minimum standards for the prevention,
detection and investigation of fraud. The Policy outlines employees’
responsibilities to prevent and detect fraud and how to report
suspected or actual fraud. The Policy directs that instances of fraud
(whether internal or external) must be escalated in accordance
with defined internal reporting requirements and considered for
external regulatory reporting also.
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 advanced analytical and
detective systems to monitor and detect suspected fraudulent
behaviour. There are also standards for investigating incidents,
including those involving employees.
Anti-money laundering and counter-terrorism
financing (AML/CTF)
Our AML/CTF Program guides our approach to detecting and
deterring money laundering and terrorism financing (ML/TF). Risk
assessments are completed both at an enterprise and country level
to identify, manage and mitigate ML/TF risk across the organisation.
We perform due diligence on our customers and their activities
and complete an enhanced level of due diligence where the risk
is deemed to be high. We seek to identify unusual or suspicious
transactions, activities and/or behaviours through a combination
of transaction monitoring and other methods of observation, and
report suspicious activity to the appropriate authorities.
During COVID-19, we have adapted our mandatory customer
due diligence procedures in line with the temporary measures
published by the AML/CTF regulator, AUSTRAC. We have
supplemented these processes through the use of digital
technology – for example, using video calls in place of face-to-face
discussions. This has ensured existing and prospective customers
are not unfairly disadvantaged or excluded from accessing our
products or services due to restrictions on physical movement.
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Sanctions compliance
Our sanctions compliance program guides our Group-wide
approach to meeting our sanctions obligations. Sanctions risks
are assessed to identify, manage and mitigate the potential for
breaches. Customer relationships and activities that pose a higher
sanctions risk are subject to enhanced due diligence measures,
monitoring and approval.
In response to increased trade tension between some key
jurisdictions during 2020 (eg. USA and China) and the resultant
restrictions imposed on some global brands, we have enhanced
our monitoring of transactions and strengthened our customer
due diligence process to ensure we fully understand the risks of
supporting each specific trade transaction in a compliant manner.
Anti-bribery and anti-corruption (ABAC)
Our Anti-Bribery and Anti-Corruption (ABAC) Policy and Framework
prohibit employees and contingent workers from engaging in
activity that constitutes bribery and corruption, and puts in place
measures to identify, mitigate and manage bribery and corruption
risk in ANZ. We have a risk-based approach to the development
and management of key anti-bribery controls, including third-party
and employee due diligence. Risk assessments are conducted to
identify and manage bribery and corruption risks.
The Framework sets clear requirements for the declaration of gifts,
entertainment or sponsored travel given or received. Requirements
relating to donations, sponsorships, record keeping, reporting and
training are outlined. Mandatory ABAC training is provided to all
employees, with additional training tailored to particular roles.
While the ABAC Framework is periodically assessed to ensure
its effectiveness and appropriate focus in the face of evolving
regulatory and reputation risks, the COVID-19 pandemic has given
impetus to this year’s review. Several policy enhancements made
early in 2020 have been supported by structural and human
resource changes. The ABAC Office has moved from Financial
Crime to Group Integrity to foster closer relations with forensic
investigations teams, while retaining vital working links with the
Financial Crime community. In addition, new ABAC leadership has
been appointed and a comprehensive review of operations and
focus areas is underway to ensure we stay ahead of rising ABAC
regulatory and reputation risks.
The COVID-19 pandemic has brought renewed attention to the problem of illegal wildlife trafficking (IWT) given the connection
between the virus and wildlife trade.
In 2018 we became signatories to the Mansion House Declaration, an initiative led by United for Wildlife
1
to work with financial
institutions to help raise awareness and disrupt IWT. With an estimated worth of up to US$23 billion, IWT is the fourth-largest
financial crime globally.
Wildlife traffickers exploit weaknesses in the financial and non-financial sectors to move, hide and launder the proceeds of their
crimes. As a financial institution, we have a role in helping to combat IWT by following the money flows. We collaborate with the
Australian Federal Police, Border Force and the Fintel Alliance to share insights, knowledge and expertise.
In 2020, we have been working closely with the relevant government and law enforcement stakeholders to combat the export of
native reptiles from Australia. We have contributed to several investigations and developed a series of financial indicators linked
to Australian-specific reptile trafficking in an effort to disrupt this criminal activity. While it is early days, we know based on past
experience that data driven insights and knowledge sharing are key to detecting, preventing and disrupting serious criminal
activity like IWT.
FOLLOWING THE MONEY TO DISRUPT ILLEGAL WILDLIFE TRAFFICKING
1. United for Wildlife is a project of the Royal Foundation of the Duke and Duchess of Cambridge. The organisation works to tackle the illegal wildlife trade by bringing together conservation
organisations, governments and global corporations specifically, to protect endangered species, including elephants, rhinos, tigers and pangolins.
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2020 progress and focus for 2021
In our 2019 ESG reporting suite we identified two priority focus
areas for 2020:
•review and improve our human rights policy and processes, and
•prepare our first Australian Modern Slavery Act statement.
Both of these are in progress and you can read about them in this
report. The Modern Slavery statement will be publicly available on
anz.com/cs before the end of this year.
We have begun a comprehensive review of our human rights
policies, processes and disclosures.
Our approach is being informed by a working group of external
stakeholders, including NGOs, academics, trade unions, customers,
industry associations and human rights experts. Their involvement
does not infer endorsement of the outcomes of this review or other
work carried out by ANZ.
We have set a target to design and commence implementation
of a human rights grievance mechanism, using the United Nations
Guiding Principles on Business and Human Rights (UNGP) as a
foundation, to be completed by end 2021.
We are disclosing new information this year to improve our
transparency and demonstrate our commitment to human rights.
We are including the UNGP reporting framework (refer to pages 80
– 81), reporting our Equator Principles project finance names (refer
to page 85), providing an update on our Modern Slavery program
and including case studies that describe how we manage human
rights risks.
We have identified our salient human rights risks according
to where we could potentially cause or contribute to the most
significant negative impacts. These include:
•safety 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 are unable to avoid all these risks, though we are able to reduce
their likelihood and respond to them appropriately. Some examples
of our actions to manage these risks are provided throughout this
report – identified using
Demonstrating respect for human rights
In our human rights standards, Respecting People and Communities,
we commit to supporting the rights and principles that are set
out in the International Bill of Rights and the International Labour
Organization Declaration on Fundamental Principles and Rights
at Work. We also commit to implementing the UNGP.
We are putting these international standards into practice,
incorporating key principles from them into Group-wide policies,
training programs and screening tools.
We recognise that our business activities and those of our business relationships
can impact on the human rights of people and communities.
Our approach to human rights
ANZ, Inclusive Development International (IDI) and Equitable
Cambodia (EC) reached an agreement in February 2020 on
how to assist Cambodian communities that were adversely
affected by an economic land use concession granted for
a sugarcane project.
The agreement resolves the complaint made against ANZ
about a loan in Cambodia. The agreement was made with
the assistance of the Australian National Contact Point
(AusNCP).
ANZ acknowledges its due diligence on the project funded
by our loan was inadequate and recognises the hardships
faced by the affected communities.
Following dialogue with IDI and EC in 2014, we encouraged
our customer to act on the adverse human rights impacts
caused by the land concession granted for the project. Our
efforts were unsuccessful.
The agreement includes:
•A contribution by ANZ of the gross profit we earned from
the loan to help alleviate the hardships faced by the
affected communities and support their efforts towards
rehabilitation.
•A commitment by ANZ to review and strengthen its
human rights policies, including its customer social and
environmental screening processes, and specific grievance
mechanisms accessible to affected communities.
UPDATE: PHNOM PENH SUGAR
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We respect the human rights of our people including employees
and contractors. Some of the standards included in policies include:
•recognising the rights of people to freedom of association,
industrial action and collective bargaining;
•providing a safe and healthy environment for people working on
behalf of ANZ and for customers and visitors to our premises;
•providing fair and competitive compensation which is
commensurate with the job and complies with applicable
domestic wage laws; and
•creating a diverse workforce and inclusive culture and encouraging
participation of people from under-represented groups in our
workforce, including Aboriginal and Torres Strait Islander peoples,
people with disability and refugees.
Further detail is available on pages 13 – 16 and 57 – 64 and in the
Our People section on pages 28 – 30 of our 2020 Annual Report,
available on anz.com/annualreport.
We expect our business customers to respect human rights and
we seek to engage with those who demonstrate a high degree of
governance and responsibility.
Our Supplier Code of Practice outlines our minimum requirements
for suppliers in relation to human rights, workplace relations, and
other practices. Further detail is available on pages 35 – 36.
Demonstrating our commitment to the UNGPs
We engage with stakeholders in a meaningful way on our
human rights approach and specific issues. We expect the same
of our suppliers or business customers dealing with social and
environmental issues.
We undertake human rights due diligence for our business
customers and our suppliers. For business customers, our Social
and Environmental Risk policy and screening tools guide bankers
on human rights issues, including enhanced criteria for sectors and
countries with a higher risk of human rights impacts.
We provide for or cooperate in remediation including through
legitimate processes where we identify that we have caused or
contributed to adverse human rights impacts. We also recognise
that adverse human rights impacts can be directly linked to our
operations, products or services by a business relationship. We are
designing a new human rights grievance mechanism for affected
communities that we will finalise in 2021 (refer to page 34).
We report publicly on our progress and performance including in
annual ESG disclosures. This year we have expanded our disclosures
including a human rights index aligned to the UNGPs reporting
framework (refer to pages 80 – 81).
ANZ’s commitment to international standards
In addition to the three key standards mentioned on page 32
there are others we use to identify and manage our human
rights risks across the business, including:
•International Labour Organization declaration on
Fundamental Principles and Rights at Work;
•International Covenant on Civil and Political Rights;
•International Covenant on Economic, Social and
Cultural Rights;
•International Finance Corporation performance standards;
•Equator Principles;
•United Nations Global Compact, including the Women’s
Empowerment Principles;
•Organisation for Economic Co-operation and
Development Guidelines for Multinational Enterprises; and
•United Nations Standards of Conduct for Business for
Tackling Discrimination against LGBTI People.
We strive to apply our human rights standards in a way that respects
the sensitivities of the countries in which we operate.
We are currently working on several issues in Pacific countries,
including gender-based violence and basic standards of living.
We became aware of Pacific countries where, despite paying
market or above market wages, some of our people were unable
to maintain basic standards of living. To understand the extent of
this issue we conducted a survey of employee living standards
in the Solomon Islands, Vanuatu, Tonga, Samoa, American
Samoa and Kiribati – responses indicated that employees were
at times unable to access electricity, water and medical services
due to financial constraints.
We are responding to the survey findings, including through
the provision of medical insurance for staff and education
allowances. Staff in the Solomon Islands, where hardship
is most pronounced, were awarded an 8% salary increase.
To manage COVID-19 challenges, staff in the
Solomon Islands, Vanuatu, Tonga, Samoa, Kiribati
and Timor-Leste were given an allowance of around
$500 to assist with additional financial responsibilities.
The Pacific has some of the highest rates of domestic violence
(more than 68% in Kiribati, and over 60% in most countries) and
we have been providing training to educate our staff about
their rights, how ANZ will support employees who experience
domestic violence and how they can access services. This has
resulted in an increasing number of our staff accessing EAP
and reaching out to our Talent and Culture team for help.
ENSURING THE SAFETY AND FINANCIAL WELLBEING OF OUR PEOPLE
CASE STUDY
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We have zero tolerance for retaliation against anyone raising concerns or complaints
and we expect our suppliers and customers to do the same.
Our people
•Should first contact their line manager, ‘skip’ line manager, or the Risk, Compliance,
or Talent and Culture teams at ANZ.
•ANZ has a Whistleblower protection policy (refer to page 14) and disclosures can also be
made to an independent third party via ANZ’s External Reporting Service, which is
managed by Deloitte.
Our customers
•May access ANZ’s customer complaint resolution process in all geographies
anz.com.au/support/contact-us/compliments-suggestions-complaints/
•Where a customer is not satisfied with the outcome of ANZ’s internal dispute resolution
process they can, in some locations, access a Customer Advocate and/or refer their
complaint to the relevant external dispute resolution scheme.
Communities and affected individuals
•Communities and individuals who have been impacted by a customer of ANZ can
contact our Chief Compliance Officer via mail, email or phone:
MAIL ANZ, Level 2, Core D, 839 Collins St
Docklands VIC 3008, Australia
EMAIL Sustainable.Development@anz.com
PHONE +61 (0) 3 9273 5555
Suppliers
•Suppliers, their employees and subcontractors can raise concerns with their supplier
relationship point of contact, or via email to GroupProcurement@anz.com
•Alternatively, actual or suspected misconduct can be reported under ANZ’s
Whistleblower Policy.
Preparing our Modern Slavery statement
We have reported against the United Kingdom’s Modern Slavery Act for four years and this year
we are preparing our first statement in response to the Australian Modern Slavery Act.
Modern slavery is serious exploitation of people that undermines or deprives them of their
freedom including forced labour, deceptive recruiting and child labour.
The Australian legislation requires organisations to identify, assess and manage risks in their
business operations and supply chain. We have identified three key areas in which to improve
practices across our operations and supply chain:
•building awareness of modern slavery through training and education;
•policy and process improvements; and
•enhancing our due diligence.
Our focus for 2021 includes:
–using data to improve how we identify and target specific ‘high-risk’ areas;
–learning and sharing good practice with finance sector peers and stakeholders including
customers, suppliers and investors;
–measuring the effectiveness of our actions;
–training our people on modern slavery, providing materials to build awareness and support
risk management in their business area; and
–improving our due diligence and screening to include modern slavery risk.
HOW GRIEVANCES AND COMPLAINTS CAN BE RAISED WITH ANZ
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We seek to identify and manage the social and environmental risks
and opportunities associated with our supply chain. Our approach
is guided by our:
•Purchasing Policy that defines the principles and behaviours
of everyone involved in procurement to ensure fair, safe and
responsible conduct; and our
•Supplier Code of Practice (SCOP) that outlines our minimum
requirements for suppliers in relation to human rights, workplace
relations, workplace health and safety, ethical business practices,
information management and confidentiality, accessibility,
environmental management and supplier diversity.
Human rights and workplace relations
Occupational health and safety
Ethical business practices
Environmental management
Informational management and confidentiality
Accessibility
Supplier diversity
In 2020, we spent over $5 billion with suppliers procuring goods and
services across the 33 markets in which we operate. The majority
of our expenditure (92%) is located in Australia and New Zealand
with key areas of spend being technology, Group services (including
property) and people and professional services.
SPEND BY COMMODITY AREA
20%
39%
41%
Group services
(incl. property)
Technology

People and
professional
services
2020
We use our best endeavours to ensure that suppliers conduct
their business in accordance with our expectations. While not
a contractual requirement, we seek an annual attestation of
adherence to the SCOP from major suppliers managed under our
Operational Contract Management Framework (OCMF). We have
introduced centralised management, recording and oversight of
the collection of annual attestations and in 2020 45% of suppliers
provided an attestation of adherence to our SCOP.
Other suppliers commit to adherence via the inclusion of a SCOP
clause in new and renewing contracts. Written acknowledgement
increased to 73% from 70% in 2019 due to improved governance
over supplier contracts and the inclusion of the SCOP clause.
Managing ESG risks and opportunities in our supply chain
We have a fair, sustainable, responsible and ethical approach to procuring and delivering goods and services.
Strengthening our SCOP
This year we strengthened our SCOP to ensure
it continues to align with our values; considers
emerging risks and opportunities; incorporates recent
legislative changes; and remains fit-for-purpose.
The strengthened SCOP includes new requirements for
suppliers, including that they:
•act in an ethical, fair and professional manner in all
dealings with their supply chain, including adhering
to timely payments and not enforcing unfair contract
terms on suppliers;
•seek to ensure that their supply chain activities do not
adversely impact local communities, including human
rights and land rights, with specific consideration given
to Indigenous communities;
•are committed to identifying and removing gender
pay gaps in their workforce;
•maintain environmental objectives and targets, including
commitments to identify, measure and reduce significant
environmental impacts and identify business risks
associated with climate change;
•maintain the confidentiality and integrity of information
that we share with them; and
•support our commitment to embed accessibility and
Principles of Universal Design across all aspects of
our business.
We have also added a section on Supplier Diversity in the
expectation our suppliers will work with us to identify and
engage diverse businesses, such as social enterprises or
Indigenous owned, in the delivery of goods and services.
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Suppliers, including subcontractors, are screened as part of our
ongoing supplier due diligence using a third-party tool that assesses
performance against 28 environment, social and governance (ESG)
issues, including human rights. In 2020, we undertook 3,989 checks
including all of our top 100 suppliers by spend (up from 3,966 and
65% coverage in 2019). There were seven instances where our checks
identified potential issues. On each occasion we followed up with
the supplier requesting further detail to determine whether they
had adequate measures in place to resolve the identified issue/s.
Modern slavery
We have publicly released statements under the UK Modern Slavery
Act since 2016 and are now preparing to report under the new
modern slavery legislation in Australia. In anticipation of meeting
our obligations we have rewritten our training for procurement
managers. This training includes what modern slavery looks like;
its impact on individuals, companies and society; the background
to the Act; what ANZ is doing in response to the Act; how it impacts
our supply chain; and what staff can do to minimise the potential
risks. We also introduced a section on the impact of COVID-19 on
the supply chain and the potential impact on forced labour from an
increased number of vulnerable people searching for work globally;
increased potential for forced labour to meet increased demand for
products (eg. personal protection equipment); and disruptions to
anti-slavery efforts.
Our updated SCOP has been aligned with the Australian Modern
Slavery Act (2018). We have strengthened our approach to child
labour and included sections on fair and ethical treatment of
suppliers; and ensuring that supply chain activities do not adversely
impact local communities, including human rights and land rights.
In addition, we have strengthened our tender process. Potential
suppliers are asked how they minimise the risk of forced labour in
their business and operations. We also request potential suppliers
confirm that they do not use forced labour themselves, or tolerate
it in their supply chains.
We have partnered with a third-party software company to pilot a
program to understand the potential risks of modern slavery in the
extended supply chain of a sample of our suppliers. Still in the early
stages, we are working with our partner to analyse and understand
the output of the pilot. This work will continue into 2021.
Working with our suppliers
Supplier payments
We recognise that late payment of invoices can have a significant
effect on the health of businesses. 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 a maximum of 30 days of receiving
a correct invoice, unless the contract stipulates a shorter term.
Our aim is to pay as promptly as possible and, on average, payment
is made in around 19 days from receipt of the invoice (16 days in
2019). Purchasing and invoicing guides, available on anz.com/cs,
provide our suppliers with the necessary information to correctly
issue ANZ with invoices in accordance with our requirements.
In Australia this year, we processed an average of 39,000 payments
to suppliers per month (including purchasing card transactions),
with small business suppliers making up approximately 45% of
these transactions.
In New Zealand, we joined the New Zealand Bankers Association
initiative to support New Zealand’s small to medium businesses
during COVID-19 by committing to paying suppliers within
two weeks. To date we have processed approximately 189,500
payments (including purchasing card transactions), with average
payment made in around six days from receipt of the invoice.
Supporting social enterprise
We seek to facilitate social and economic growth through
collaboration with our suppliers. We are a member of
Social Traders, an organisation helping to create jobs for
disadvantaged Australians by linking business and government
to social enterprises. This year, we spent $1.85 million with
Social Enterprises (down from $2.4 million in 2019).
2
Our spend
has been impacted by COVID-19.
In New Zealand, we have joined Akina, a buyer group through
which we can access a wide range of certified social enterprise
suppliers. We have increased our strategic engagement with
these suppliers and are training our Procurement Team to
identify further opportunities within their categories. We spent
over $145,000 with Social Enterprises in 2020 (down from
$235,000 in 2019).
Supplier engagement on climate change
As part of ANZ New Zealand’s commitment to the Climate
Leaders Coalition (refer to page 47), the Procurement Team
surveyed our top 100 suppliers by spend in New Zealand
about their emissions and other ESG issues.
Of our top 100 suppliers:
•40 are reporting on their emissions and have reduction
targets;
•37 currently hold environmental accreditations and
standards such as ISO 14001, NZ Green Building
Council Five Green Star building ratings, or carboNZero
certification, and are working towards more; and
•51 suppliers have social impact targets, including diversity
when hiring, and publish modern slavery statements.
1. A small business supplier is defined as one with whom our spend is less than $1 million in a 12-month period. 2. Spend does not include sponsorships or donations.
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The Policy outlines the social and environmental considerations to
be taken into account by our bankers when determining business
transactions. It incorporates our Human Rights Standards, including
our ‘zero tolerance’ for improper land acquisition and involuntary
resettlement, and labour rights issues such as modern slavery.
We review the Policy annually, with oversight from our Ethics
and Responsible Business Committee (ERBC) to ensure it remains
fit-for-purpose. The review takes into account changes to
customer practices, international standards, emerging social
and environmental issues and stakeholder expectations.
This year’s review focused on several key areas:
•our approach to climate change, including our policies on
thermal coal (refer to pages 40 – 42 and our 2020 Climate-related
Financial Disclosures);
•human rights related changes, eg. ensuring appropriate
reference to modern slavery and to enhanced human rights
due diligence for certain countries and sectors;
•ensuring our mining customers are appropriately protecting
the cultural heritage of Indigenous peoples; and
•extending the application of the Policy to other business
customers, eg. small to medium enterprises, especially in relation
to military equipment requirements.
Due diligence
Prior to entering into a relationship with any large business
customer, relationship managers are expected to examine a broad
range of social and environmental issues. They must also have
specific knowledge of the customer’s history and approach to
dealing with any potential (or historical) impacts.
Under our credit policy we typically review our business customers
annually. This includes the consideration of relevant issues 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 the tool.
We continue to apply a strengthened due diligence for thermal coal
extraction and associated transport and power generation customers
and will broaden this due diligence to cover major oil and gas
companies. We also apply an enhanced human rights due diligence
for customers that operate in higher risk geographies and sectors.
By applying an enhanced due diligence to the higher risk activities
outlined above, we seek to avoid human rights infringements or
other impacts that could have an irreversible social or environmental
impact. If we fail to properly conduct due diligence we may
contribute or become directly linked to significant impacts, which
Responsible
business lending
Energy
Water
Extractive
industries
Forestry
and forests
Military
equipment
Hydropower
We seek to assess and
manage the impacts of
our lending decisions
through the application
of our Social and
Environmental Risk
Policy (the Policy) and
accompanying ‘sensitive
sector’ requirements for:
As stakeholder needs and expectations evolve, it is important
that the decisions we make are informed by a consistent and
robust approach to ethical, social, economic and environmental
considerations.
We have developed an Ethical Decision-Making Framework (the
Framework) that brings together our purpose (why we
exist) and values (what is good) with a set of new principles
(what is right).
The Framework, which complements our Social and
Environmental Risk Policy, is used by our the ERBC in its
deliberations, as well as business and risk leaders across
the bank.
It is also integrated with our Sensitive Wholesale Transaction
decision-making process. Our principles are:
•protect and enhance each person’s ability and freedom to
choose;
•minimise potential and actual harm, especially for the
vulnerable;
•support progressive practices that benefit people,
communities, and industries;
•have a real impact on some of society’s big challenges;
•show leadership and challenge convention;
•advance ANZ’s strategic and commercial interests; and
•be proud to offer a complete public account of our decisions
and actions.
ETHICAL DECISION-MAKING FRAMEWORK HELPS GUIDE OUR BANKERS
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is unacceptable to the bank and our stakeholders. Even if these are
acts of ‘omission’, we understand that the consequences for ANZ’s
reputation can be significant.
Where a business’s practices may not be consistent with
our policies, we work with the customer to understand the
circumstances and, where necessary, encourage the customer to
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’. We also
rely on regular dialogue between relationship managers and their
customers to alert us to issues. Notable incidents and allegations
are referred to our risk management meetings in which social,
environmental, governance and credit risks are considered.
Consideration of emerging social issues
We consider current and emerging ESG issues to determine
whether we should review our policies and lending approach.
Our Board Ethics, Environment, Social and Governance Committee
and our executive Ethics and Responsible Business Committee
also consider a range of emerging social issues that, through our
lending to customers, could result in risks to the business.
In 2019, we highlighted a series of issues that 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.
This year, we focused our attention on animal welfare issues,
including how we will engage with our customers to ensure they
are adhering to good practices and community expectations for
how animals should be treated.
Employee training
We recognise that educating employees on our policies and
standards and how they are applied in practice is key to effective
management of the social and environmental risks associated
with our business lending. Our training programs cover the Policy,
sensitive sector requirements and our approach to human rights.
This training is mandatory for new employees authorised to make
credit decisions for business customers.
This year we supplemented the online training with further training
for our teams in various locations across Asia, who requested the
training as a ‘refresher’ and to ensure they are familiar with the
expectations of our key stakeholders in our home markets
of Australia and New Zealand.
Equator Principles
The Equator Principles (EP) is a risk management framework for
determining, assessing and managing social and environmental
risks in major projects such as mines, windfarms and pipelines. The
EP provides 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
a third-party expert is typically commissioned. Matters
examined include:
•client capacity and commitment to manage social and
environmental issues;
•the scope of the transaction, including the value of the
loan and whether it is specific to a project or for general
corporate purposes;

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 emails in 2020 supporting AA’s position, all of which we responded to with an offer to discuss further.
We met with AA and Royal Society for the Prevention of Cruelty to Animals (RSPCA) to understand what these organisations –
and their supporters – expect from the bank. We were asked to develop and publish a policy that sets out our expectations of
agribusiness customers raising animals.
As a result of these discussions with AA and RSPCA, our customers and other stakeholders, we are committing to develop and
publish a set of principles on animal welfare that reflect our existing approach and to clarify our expectations of customers. We
expect these principles will be published in 2021.
Our agribusiness team in Australia is also working to improve the awareness and understanding of staff with regard to animal welfare
industry standards and will undertake training in 2021 for our agri-bankers once our principles are finalised.
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•how an Environmental Impact Assessment (if required) will
be implemented through the company’s Environmental
Management System; and
•the level of community concern regarding potential impacts
of the project, 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 the EP. Information on our 2020 project
finance advisory services and transactions is available on page 85.
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 October 2020. The changes expand
the scope of the EP and include enhanced due diligence and
reporting requirements such as:
•a revised approach to Free, Prior and Informed Consent (FPIC)
requiring Designated Countries, such as Australia, NZ, the USA,
Canada and Europe, to consider FPIC in special circumstances
where a project impacts on Indigenous Persons, in accordance
with the IFC Performance Standard 7 – Indigenous Persons;
•strengthened human rights commitments requiring, among
other things, a human rights impact assessment where a project
has the potential to cause adverse human rights impacts;
•recognition of application of the EP to the Paris Agreement and
introduction of a 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 reduced threshold for application of the EP to project-related
corporate loans and named reporting of these transactions.
For further information refer to equator-principles.com/ep4.
1. Category A projects are those with potential significant adverse social or environmental
impacts that are diverse, irreversible or unprecedented.
EQUATOR PRINCIPLES
In 2020 we funded a large infrastructure facility in Asia as a part of a syndicate of banks.
The social and environmental impacts of the project were
assessed as a ‘Category A’
1
EP project. Due to the categorisation,
a third-party social and environmental consultant was engaged
to undertake a due diligence report.
Key issues identified included air pollution and greenhouse gas
emissions. This led to certain requirements being made of the
customer, such as the implementation of an EP ‘Action Plan’, to fix
the gaps in compliance and to ensure that the EP and International
Finance Corporation (IFC) Performance Standards were met.
NGOs such as Banktrack have subsequently
raised concerns about this project, in particular whether the
customer had a sufficient grievance mechanism in place. This is
an important issue for ANZ, so we engaged with the customer
and were satisfied they had established appropriate grievance
mechanisms in line with the IFC Performance Standards. This
was validated by the third-party consultant and our findings
were conveyed to Banktrack.
CASE STUDY
In 2020 we joined a number of banks in providing finance that would ultimately
support the expansion of a large infrastructure facility in Asia.
While this was not a conventional project financing, we did
assess this to be a ‘Category A’
1
project-related corporate
loan under the EP. Consequently, a third-party consultant was
engaged by the banking syndicate to assess the social and
environmental risks.
A number of risks were identified including the economic/
livelihood impact on local fishermen. As a result, the banks
required that the customer cooperate in a process for identifying
and compensating affected fishermen.
In 2020, we funded a new solar farm in Australia.
On initial assessment we determined the project would need
to be assessed against the EP.
Although categorised under the Equator Principles as a ‘C’ –
with minimal social or environmental impact – we required a full
social and environmental risk assessment in line with our Social
and Environmental Risk policy to ensure that, should any issues
be identified or social or environmental incidents, etc. occur, we
have the ability under loan documentation to ensure the issues
are remedied.
We engaged a consultant to prepare a third-party
Environmental and Social Due Diligence, which
confirmed our initial assessment.
Despite this conclusion, loan documentation incorporated
requirements for the client to meet relevant social and
environmental requirements.
ENERGY INFRASTRUCTURE PROJECT
INFRASTRUCTURE EXPANSION PROJECT
RENEWABLES PROJECT
CO
2
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Reviewing our approach to climate change
We support the Paris Agreement’s goal of transitioning to net zero emissions by 2050 and
are committed to playing our part.
We must transition to a net zero and climate-resilient future, remaining well-below
a 2-degree rise (ideally 1.5 degrees) in global temperatures.
The global transition requires enormous investment and bank lending makes up the
significant source of funding for this transition.
In recognition of this, we reviewed our approach to climate change during the year to
ensure we act in support of customer, community and government efforts to facilitate
an orderly and just transition to net zero emissions by 2050.
IN SUPPORTING THE 2050 GOAL, OUR APPROACH IS TO:
Support transitioning
industries to help
grow the economy
Help our customers by
encouraging them to
identify climate risks and
opportunities, create
transition plans and report
publicly on their progress
Reduce our own impact
by managing and
reducing emissions from
our own operations
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TO SUPPORT THE TRANSITION TO NET ZERO EMISSIONS
BY 2050, OUR CLIMATE CHANGE STATEMENT FOCUSES
ON THREE AREAS:
We will do this by:
•engaging with 100 of our largest emitting customers to support
them to establish and strengthen their transition plans by 2021.
This work will be undertaken through a structured engagement
process
•improving transparency to show how our financing decisions
are supporting the achievement of the Paris goals. We will do
this by disclosing better metrics so that the emissions impact
of our financing can be tracked, beginning with commercial
property and power generation. Starting in 2020, we will disclose
these metrics annually and will set targets by 2021 to reduce the
financed emissions of each sector between now and up to 2030
•ensuring that discussion of climate risk becomes a part of our
everyday client engagement. By 2030 we expect to have a
deeper understanding of all our customers’ transition plans, and
that the implementation of those plans will be well-advanced.
Over time, we will move away from supporting customers that
don’t have specific, time-bound and public transition plans
•funding and facilitating at least $50 billion by 2025 to help our
customers lower carbon emissions. This may include increased
energy efficiency, low-emissions transport, green buildings,
reforestation, renewable energy and battery storage, emerging
technologies (such as carbon capture and storage, and
hydrogen-based technology), disaster resilience and climate
change adaptation measures
–allocating $1 billion of this towards supporting customers
and communities’ disaster recovery and resilience. We will
do this by allocating capital to fund or facilitate resilience
initiatives for weather-related events, or to build resilience
against non-weather-related disasters such as pandemics
•We support the evolution of sectors and the development of
new industries and innovative business models that underpin the
transition. This will include supporting more diversified energy
companies and increasing our lending to lower carbon energy.
•We will do this by:
–further reducing the carbon intensity of our electricity
generation lending portfolio by only directly financing low
carbon gas and renewable projects by 2030
–continuing to support diversified customers, which means we
will no longer bank any new business customers with material
1
thermal coal exposures
–engaging with existing customers who have more than 50%
thermal coal exposure
2
to support existing diversification plans.
Where these are not already in place, we will expect specific,
time-bound and public diversification strategies by 2025. We will
cap limits to customers that do not meet this expectation and
reduce our exposure over time
3
–not directly financing any new coal-fired power plants or
thermal coal mines,
4
including expansions. Existing direct
lending will run off by 2030
–only financing the construction of new large-scale office
buildings if they are highly energy-efficient, and being built to
either, at least a NABERS
5
5-star energy rating or 5-star Green Star
Design rating (or equivalent international rating)
–facilitating concessional loans for business customers to buy
energy-efficient equipment
–applying strengthened lending due diligence processes
•We will do this by:
–accelerating the reduction of our own emissions by sourcing
100% of the electricity needed for our business operations from
renewables by 2025
–setting public targets to lower our greenhouse gas emissions
by 24% by 2025 and 35% by 2030 (against a 2015 baseline)
–equipping our employees with knowledge and training to
minimise their own environmental footprint
Our Climate Change Statement is available on anz.com/cs.
1. More than 10% revenue, installed capacity or generation from thermal coal. 2. We will progressively reduce the 50% threshold so that by 2030 we will seek a diversification strategy from mining, transport and power generating customers with more than 25% thermal coal exposures.
3. We will continue to provide rehabilitation bonds for those existing customers with some thermal coal exposure to ensure their responsibilities with exiting mine sites are fulfilled. Transaction banking/markets three-day settlement limits will be excluded from this cap. 4. These are
mines whose reserves or production are at least 35% thermal coal. 5. NABERS (National Australian Built Environment Rating System) is a rating system measuring the environmental performance of Australian buildings, tenancies and homes, eg. energy efficiency, water usage, waste
management and indoor environment quality.
HELP OUR CUSTOMERS BY ENCOURAGING
THEM TO IDENTIFY CLIMATE RISKS AND
OPPORTUNITIES, CREATE TRANSITION PLANS
AND REPORT PUBLICLY ON THEIR PROGRESS
01
SUPPORT TRANSITIONING INDUSTRIES
TO HELP GROW THE ECONOMY
02
REDUCE OUR OWN IMPACT BY MANAGING
AND REDUCING EMISSIONS FROM OUR
OWN OPERATIONS
03
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Supporting customers with their transition
Our customers have an important role to play in the transition to
net zero emissions.
One of the main ways we work with our customers is to encourage
them to identify climate risks and opportunities, create transition
plans and report publicly on their progress.
Our existing target is to engage with 100 of our largest emitting
customers to establish, and where appropriate, strengthen existing
low carbon transition plans by 2021. We believe clear, long-term,
public transition plans will help our communities anticipate and
adjust to change over time.
We are also working to ensure that discussion of climate risk
becomes a part of our everyday client engagement. We are
working to have a deeper understanding of all our customers’
transition plans, and expect that by 2030 the implementation
of those plans will be well-advanced.
To support this, we continue to develop an organisational culture
that encourages regular discussion and consideration of emerging
climate-related risks. Our Risk team works closely with our relationship
managers, to talk with customers about managing the risks and
opportunities associated with climate change.
Relationship managers receive training and guidance materials
to ensure they have the right skills and knowledge to talk to our
customers about climate change. Last year, we provided training to
more than1,000 frontline bankers in our Institutional and Corporate
businesses. In 2020, we provided further training to frontline staff
to share insights from our initial customer engagement in 2019.
The training included information on how climate-related risks and
opportunities might manifest for our customers and what elements
we would expect to see in a robust transition plan.
TARGET
Encourage and support 100 of our largest emitting customers
to establish, and where appropriate, strengthen low carbon
transition plans, by end 2021.
PERFORMANCE
We have engaged with 83 of our largest emitting
customers to support them to establish, or strengthen
existing low carbon transition plans. We aim to engage
with all 100 customers by the end of December 2020. This
will help us establish a ‘baseline’ for how our customers
are responding to climate-risk and inform our ongoing
engagement with them.
Relevant United Nations Sustainable
Development Goals
13.1 Strengthen resilience and adaptive capacity
to climate-related hazards and natural disasters in
all countries.
Throughout 2020 we have continued to analyse the carbon
disclosures of our largest emitting business customers. To date,
we have been encouraged by the results of our engagement with
these customers.
Supporting the transition to a net zero carbon economy
An important part of this engagement includes giving careful
consideration to the impacts of the transition on local communities.
Employment opportunities have been created by the transition, but
some communities, particularly in regional areas, face significant
challenges. If the transition is not managed appropriately, these
communities may suffer substantial social and economic costs.
We believe we can assist with supporting local communities
and workers through this change, including by supporting the
development of new industries and innovative business models
to help diversify and grow local economies away from traditional
dependencies.
Climate-related financial disclosures
For further detail on our approach to climate change and
our ability to manage the associated risks and opportunities,
refer to pages 34 – 37 of our 2020 Annual Report and
our separate 2020 Climate-related Financial Disclosures,
available on anz.com/annualreport.
We seek to engage with all stakeholders in an open, transparent and constructive way to ensure
we are managing the long-term risks and opportunities associated with climate change.
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In particular, engagement with our energy customers is well-
progressed, especially amongst those with thermal coal operations.
A number of them have already disclosed robust transition plans,
while others have signalled an intention to improve disclosure.
Within each industry our customers have different starting points.
Discussions with our customers have generally been well-received
and have often revealed more detailed strategies and plans than
were apparent in previous engagements.
Through customer conversations and reviews of public disclosures
we are developing a better understanding of our customers’
preparation for, and management of, their climate-related risks
and opportunities. To ensure transition risk is part of our future
customer strategies, we will embed the results of this target into
our customer due diligence.
We provide regular updates regarding our progress on this work to
our executive ERBC and Board EESG committees. For further detail
of our customer engagement refer to our 2020 Climate-related
Financial Disclosures, available on anz.com/annualreport.
Sustainable finance
Another way we are supporting the transition to net zero emissions
is by our lending to help our customers lower carbon emissions.
We believe reducing carbon emissions is a shared responsibility
for every sector of the economy, requiring collaboration between
government, business and industry. The whole of economy
approach will necessitate significant investment presenting
a major opportunity for ANZ.
CUSTOMER TRANSITION
CASE STUDY
ELECTRIC CAMPERVANS PROVIDING AN ECO-FRIENDLY WAY TO TOUR NEW ZEALAND
INNOVATION IN SUSTAINABLE FINANCE
Tourism Holdings New Zealand (thl), is taking an innovative
approach to tackling the carbon emissions associated with
its campervans rented by travellers to tour New Zealand.
By investing in a fleet of electric campervans and charging
stations at holiday parks, it is providing customers with an
eco-friendly option.
Saskia Verraes, thl’s General Manager for Responsible
Management, says while its early days, the results are positive.
“We recognised that campervans and their use of diesel fuel
were responsible for a proportion of New Zealand’s carbon
emissions. We wanted to eliminate this as much as possible and
do our part transitioning to a net zero carbon future.”
“It took us a couple of years of trials to learn what it means to
have an electric engine and how to be ‘electric-vehicle’ ready
from an operational perspective, but we’ve used these insights
to deliver a terrific proposition to our customers and one that’s
great for the environment,” she says.
thl has also helped pave the way for other campervan rental
companies interested in going electric, having worked through
issues relating to registration, health and safety, insurance,
battery range and transport certification.
The company has plans to invest further in electric campervans
and is hoping to convert its larger berth vehicles and company
car fleet, as well as invest in e-bikes for use by employees.
ANZ has been a banking partner of thl for 10 years and is very
supportive of its sustainability plan.
“Doing the right thing and being a responsible tourism
operator has been core to our business for a long time. But
we’ve accelerated this in recent years and strengthened our
sustainability policies, practices and strategic risk management.
ANZ has helped us mature our approach and identify
opportunities to improve our transition planning,” says Saskia.
We recently supported Argosy Property Limited to link its
financing to sustainability goals under a green bond framework
– the first of its kind in the New Zealand property market.
The proceeds of the green bond will be used to invest in
buildings (including retro-fits) that meet ‘sustainability focused’
eligibility criteria, such as a minimum Green Star or NABERSNZ
rating threshold.
In addition to its focus on sustainable finance, Argosy, which
owns industrial, office and retail properties across New Zealand,
is implementing a range of initiatives to reduce its operational
impact – including energy and water efficiency measures
and recycling.
“We understand the impact our activities can have on the
environment and we are committed to responsibly managing
and reducing those impacts,” says Dave Fraser, Chief Financial
Officer at Argosy.
The company has also set a number of goals supporting its overall
ambition to create vibrant and sustainable workplaces for tenants.
These include obtaining independent energy efficiency
ratings on all office buildings by 2022; monitoring energy and
water consumption in all buildings; and developing a waste
management plan to be incorporated into all major projects.
“We look forward to continuing to improve the environmental
performance of our buildings and our operations, and are proud
to have ANZ as our banking partner supporting our transition
journey,” says Mr Fraser.
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ANZ 2020 ESG Supplement Contents