ANZ 2022 Climate-related Financial Disclosures

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

25 November 2022

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





ANZ 2022 Climate-related Financial Disclosures

Australia and New Zealand Banking Group Limited (ANZ) today released its 2022
Climate-related Financial Disclosures.
It has been approved for distribution by ANZ’s Ethics, Environment, Social & Governance
Committee.

Yours faithfully




Simon Pordage
Company Secretary
Australia and New Zealand Banking Group Limited

WE’RE CONTINUING TO
SHAPE A WORLD WHERE PEOPLE
AND COMMUNITIES THRIVE
ANZ 2022

CLIMATE-RELATED FINANCIAL DISCLOSURES
Approved for distribution by ANZ’s Ethics, Environment, Social & Governance Committee

Image: ANZ Centre, Melbourne.
This report describes Australia and New Zealand Banking Group
Limited’s progress towards implementing our Climate Change
Commitment and Environmental Sustainability Strategy.
DISCLAIMER & IMPORTANT NOTICE:
The material in the Climate-related Financial Disclosures report contains general background information about the
Bank’s activities current as at 24 November 2022. It is information given in summary form and does not purport to be
complete. It is not intended to be and should not be relied upon as advice to investors or potential investors and does
not take into account the investment objectives, financial situation or needs of any particular investor. These should
be considered, with or without professional advice when deciding if an investment is appropriate. The Climate-related
Financial Disclosures may contain forward-looking statements or opinions including statements regarding our intent,
belief or current expectations with respect to ANZ’s business operations, market conditions, results of operations and
financial condition, capital adequacy, specific provisions and risk management practices. When used in Climate-related
Financial Disclosures, the words ‘forecast’, ‘estimate’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’,
‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to ANZ and its management, are
intended to identify forward-looking statements or opinions. Those statements: are usually predictive in character; or
may be affected by inaccurate assumptions or unknown risks and uncertainties; or may differ materially from results
ultimately achieved. As such, these statements should not be relied upon when making investment decisions. These
statements only speak as at the date of publication and no representation is made as to their correctness on or after
this date. Forward-looking statements constitute ‘forward-looking statements’ for the purposes of the United States
Private Securities Litigation Reform Act of 1995. ANZ does not undertake any obligation to publicly release the result of any
revisions to these forward-looking statements to reflect events or circumstances after the date here of to reflect the
occurrence of unanticipated events.
This report has been prepared in accordance
with the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations 2017.
We have sought to incorporate the additional
recommendations of the TCFD (2021 Annexe).
ANZ joined the Net Zero Banking Alliance
(NZBA) in 2021 and have prepared this report
in accordance with this commitment. We have
also drawn on aspects of the Glasgow Financial
Alliance for Net Zero (GFANZ) requirements.
The report covers all operations over which,
unless otherwise stated, we have control for the
financial year commencing on 1 October 2021
and ending 30 September 2022. Monetary
amounts in this document are reported in
Australian dollars, unless otherwise stated.
We have disclosed our Scope 1 and 2 emissions
and climate-related matters for many years. Since
2017, we have disclosed our progress according
to TCFD Recommendations with a summary in
our Annual Report and detail within a stand alone
report. Our TCFD Index can be found on page 48.
Further detail about our approach to developing
metrics, pathways and targets for our priority
sectors, can be found in ANZ’s Financed
Emissions Methodology available here.
KPMG has performed limited assurance over
the disclosures in this report. A copy of KPMG’s
limited assurance report is on page 49.
About this reportContents
About this report 2
2022 Climate snapshot 3
ANZ Climate Approach –
Progress snapshot 4
Governance 5
Strategy 8
Risk management 21
Metrics and targets 27
Task Force on Climate-related
Financial Disclosures (TCFD) Index 48
Independent Limited Assurance
Report to theDirectors of
Australia and New Zealand
Banking Group Limited 49
Our 2022
reporting suite
2022 Annual Report
anz.com/annualreport
2022 ESG Supplement
anz.com/annualreport
2022 Climate-related
Financial Disclosures
anz.com/annualreport
2022 Corporate
Governance Statement
anz.com/corporategovernance
2022 ESG Data Pack
anz.com/annualreport
2022 Voluntary Tax
Transparency Report
anz.com/annualreport
ANZ 2022 Climate-related Financial Disclosures
2

$40.04B
funded and facilitated in
sustainable solutions
3
Completed
127
sustainable finance deals
61
of our 100 largest emitting
business customers now have ‘well
developed’ or ‘advanced’ transition
plans versus 42 in September 2021
2
90%
of our project finance portfolio
consists of renewables projects
1. See page 27 for further detail. 2. As part of our target to encourage 100 of our largest emitting business customers them to strengthen
their low carbon transition plans so that more customers achieve a ‘well developed’ or ‘advanced’ rating.
3. Since 2019.
Net zero aligned pathways set for six sectorsTarget reduction
1
2022 Climate
snapshot
1
LARGE-SCALE
COMMERCIAL REAL ESTATE
STEEL
CEMENT
ALUMINIUM
POWER
GENERATION
OIL AND GAS
50%
60%
26%
20%
30%
28%
ANZ 2022 Climate-related Financial Disclosures
3

ANZ Climate Approach – progress snapshot
FuturePastPresent
* All years referenced on this page refer to calendar years.
2015
Issued first Green Bond,
certified by the Climate
Bonds Initiative.
Committed to funding
and facilitating at
least $10 billion by
2020 in low carbon and
sustainable solutions
(target increased to
$15 billion in 2017).
2007
Became a
member of CDP
and respond to
the annual climate
change disclosure
program survey.
2022
Set targets for carbon intensive sectors for oil and gas
and building materials: cement, aluminium and steel.
$40.04 billion funded and facilitated towards our
$50 billion sustainable solutions target by 2025.
Progressively developing metrics
and targets for key sectors, in line
with our NZBA commitment, aimed
at ensuring the majority of our
portfolio emissions are covered
by end 2024.
2017
First Australian bank to
align our reporting to the
TCFD recommendations.
Established the Board
Ethics, Environment,
Social & Governance
Committee (formerly
the Governance
Committee).
Established the
management Responsible
Business Committee.
2018
Set a target to
encourage and
support 100
of our largest
emitting business
customers and
where appropriate,
strengthen
existing low
carbon transition
plans, by 2021.
2021
First Australian bank
to join the United
Nations Environment
Programme Finance
Initiative’s Net-Zero
Banking Alliance
(NZBA), reflecting our
commitment with other
leading banks globally
to enable the transition
by aligning our lending
portfolio with net zero
emissions.
Set targets for carbon
intensive sectors for
large-scale commercial
real estate in Australia
and global power
generation.
Extended our
engagement with
100 of our largest
emitting business
customers to support
them to improve their
low carbon transition
plans and enhance
their efforts to protect
biodiversity by
end 2024.
Joined the Taskforce
on Nature-related
Financial Disclosures
(TNFD) Forum to
support its work.
2019
Joined RE100 and
announced our commitment
to procure 100% renewable
electricity for our operations
by 2025.
Founding signatory to the
UN Principles for Responsible
Banking.
Committed to funding and
facilitating at least $50 billion
by 2025 towards sustainable
solutions for our customers,
having exceeded our target
of $15 billion.
2020
First bank to issue
a Sustainable
Development
Goals (SDG) Bond
in Australia.
2010
Signatory to the
United Nations
Global Compact.
Carbon Neutral
operations.
2006
Adopted
the Equator
Principles.
ANZ 2022 Climate-related Financial Disclosures
4

Climate Advisory
Forum
Credit and
Market Risk
Committee
ESG Governance Team – supports effective
identification and management of our material ESG
risks and opportunities through our senior executive
and Board decision making processes and structures
Social and Environmental Risk Management Team provides risk
oversight over the Social & Environmental Risk Policy and associated
requirements and supports the delivery of workstreams to improve
our management of climate change risks
ESG Analytics and Advisory Team – provide "subject
matter expertise" advice on social and environmental
issues affecting our business lending decisions, such
as public policy, regulation, emerging community standards
and expectations, and managing the development of
carbon metrics and targets
Institutional Strategic Planning and Execution team – supports our
customer engagement program and the Climate Advisory Forum (CAF)
ESG Disclosures and Reporting Team – delivers the Group’s
ESG disclosures, reporting, ESG market briefings and oversight
of forthcoming reporting standards, practices and frameworks
Audit
Committee
Ethics, Environment,
Social and
Governance
Committee
Operational
Risk Executive
Committee
Risk
Committee
Ethics and
Responsible
Business Committee
Digital Business
and Technology
Committee
Group Executive
People
Committee
Nomination
and Board
Operations
Committee
Human
Resources
Committee
Executive Committee
ANZ’s most senior executives meet
regularly to discuss performance
and review shared initiatives.
Enterprise
Accountability
Group
Group Performance Execution Committee
ANZ’s key Management Committee charged with oversight
of the Group’s overall operational performance and position
and execution of the operating plan.
Group
Principal Board
Committees
BOARD OF DIRECTORS
KEY MANAGEMENT COMMITTEES
KEY SUPPORT TEAMS
Board and Executive oversight
of ANZ’s climate strategy
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 at
anz.com/corporategovernance.
We have defined a clear governance
structure to oversee our ESG approach,
including how we manage our climate
risks and opportunities.
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. A delegations of authority
framework clearly outlines those matters
delegated to our Chief Executive Officer (CEO)
and other members of senior management.
In addition, a number of formally established
management committees deal with particular
ongoing issues. Our ESG governance
processes are overseen by the Board and
management through our Board EESG
Committee and executive Ethics and
Responsible Business Committee (ERBC).
Governance
ANZ 2022 Climate-related Financial Disclosures
5

Board Committees
Board Ethics, Environment, Social
and Governance (EESG) Committee
The Board EESG Committee, chaired
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 approval
of sustainability (including climate-related)
objectives and performance, including goals
and targets to support action on climate change.
The Board EESG Committee generally meets
four times annually and more frequently if
deemed necessary. Meetings typically open
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.
The Board EESG Committee also provides
oversight of ANZ’s ERBC, including receiving the
minutes of that body and discussing material
matters referred to the Committee from that
body. The charter of the Board EESG Committee
is available at anz.com/corporategovernance.
Board Risk Committee
The Board Risk Committee (BRC) has responsibility
for the overview of ANZ’s management of new
and emerging risks, including climate-related
risks. Climate is covered regularly at the BRC
via the Chief Risk Officer’s report and, for
example, via sector and country specific updates.
The BRC meets at least quarterly and more
frequently if deemed necessary. The charter
of the Board Risk Committee is available at
anz.com/corporategovernance.
Board skills
The ANZ Board Skills Matrix, available at
anz.com/corporategovernance, outlines the
key skills and experience the ANZ Board is looking
to achieve in its membership and the number of
Directors with each skill/experience. Included in
the skills matrix is: corporate governance, risk
management/compliance and/or sustainability
experience.
Our Directors collectively bring a broad range
of skills, and current and prior experience which
includes having held roles across sectors such
as infrastructure, energy, mining and banking.
For further details on experience of our directors
refer to anz.com/annualreport.
In addition to having individuals on the Board
with a variety of technical skills and experiences
listed in the skills matrix available, the ANZ Board
seeks to ensure that its own membership will
operate as a team, focused on the long-term
success of the business and comprising different
personalities and viewpoints, who will respectfully
challenge management and each other, and
participate in robust debate to work together
to arrive at new solutions.
The ANZ Board Skills Matrix composition
criteria and the process for non-executive
director selection and appointment are reviewed
by the Nominated and Board Operations on
a regular basis.
Management Committees
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 participates as an observer
every second meeting.
The Committee is a leadership and decision-
making body to advance ANZ’s purpose and
ensure ANZ operates responsibly and achieves
fair, ethical and balanced stakeholder outcomes.
The ERBC sets relevant ANZ policies, such as
those policies identified in ANZ’s Climate Change
Commitment. The ERBC provides leadership
on our ESG risks and opportunities, monitoring
progress against targets, including those related
to climate change.
The Committee considers the social and
environmental impacts of the industries,
customers and communities ANZ serves,
overseeing the ERBC Sub-Committee
for Sensitive Wholesale transactions. 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 (for
recommendation to the Board EESG Committee)
and monitors performance against them quarterly.
The ERBC meets at least quarterly and more
frequently if deemed necessary.
Two other management committees play
important roles in the management of key
material risks and potential sensitive matters
for ANZ:
a. Operational Risk Executive Committee, which
addresses current and emerging operational
and compliance risks; and
b. Credit Markets Risk Committee, which
approves credit and market risk management
frameworks and associated risk appetite
parameters.
Activities undertaken by the ERBC will at times
overlap, and inform, topics raised in Operational
Risk Executive Committee and Credit Markets Risk
Committee as part of the executive oversight and
risk management required to deliver on ANZ’s
purpose and strategy.
ANZ 2022 Climate-related Financial Disclosures
6

Climate Advisory Forum
Our Climate Advisory Forum, chaired
by our Group Executive Institutional,
includes our Chief Risk Officer, Group
General Manager ESG and other executives.
The forum oversees implementation of
ANZ’s Climate Change Commitment –
ensuring coordination between the various
workstreams including our Environmental
Sustainability Strategy and our sectoral
decarbonisation pathways. The Forum
meets approximately monthly.
Both committees discuss the areas of
‘how we bank’ and ‘who we bank’.
Climate is a standing item on both the
EESG Board Committee and ERBC
management committee’s agenda. These
committees dedicate approximately 20%
of their time to reviewing and approving
our approach to climate-related objectives
and performance, including goals and
targets to support action on climate
Areas of focus by the Board EESG and
management ERBC committees
change. This includes receiving briefings
from internal and external subject matter
experts.
We also run a regular program of CEO and
Senior Executive meetings with civil society
leaders including environmental Non-
Government Organisations, representatives
of carbon intensive sectors, regulators and
academics.
Enhanced due diligence for
energy sector customers
This year we have implemented an
enhanced due diligence and new decision-
making process to seek to ensure that
customers and transactions we support
in the energy sector, including oil and
gas companies, are consistent with
ANZ’s Climate Change Commitment.
All new material energy sector transactions
are required to go through an ‘escalation
evaluation process’. This includes customers and
transactions likely to have an impact on the size
or carbon intensity of our energy sector portfolio,
or that represent heightened reputational risk.
The ‘escalation evaluation process’ considers the
transactions' alignment with our Climate Change
Commitment and evaluates transition plans
using criteria we apply in our engagement
with 100 of our largest emitting business
customers, outlined on page 15 of this report.
All ‘material’ energy transactions are referred to
senior subject matter experts to review alignment
with ANZ’s Climate Change Commitment prior
to proceeding.
A small number of transactions require escalation
to three of our senior executives for decision
on whether to support. These executives
are primarily responsible for monitoring
our climate progress – they are our Group
Executive Institutional, Chief Risk Officer and
Group General Manager ESG.
In 2022, seven transactions were escalated to the
above group. Four were declined and three were
approved after considering, among other things,
alignment with our Climate Change Commitment.
Our energy portfolio will be reshaped over
the coming years as we learn more about our
customers’ transition plans and their alignment
with the strengthened commitments we
announced over the last two years.
Refer to page 25 for further details on
other polices and tools in place to ensure
that customers and transactions we support
in the energy sector, including oil and gas
companies, are consistent with ANZ’s Climate
Change Commitment.
Executive remuneration
Management incentives for delivering our
Climate Change Commitment are in place at the
most senior levels of the organisation, including
our Group Executive Committe. Our Group
Performance Framework incorporates whether
we have strengthened our position as a leading
sustainability bank in the region, and our
performance against the S&P Global corporate
sustainability assessment. Refer to page 79 of our
2022 Annual Report for further details, available
at anz.com/annualreport.
In addition, ANZ’s CEO has ultimate responsibility
for all key climate change statements and policies.
These include policies aimed at reducing our
financed emissions and our facility 'footprint'
reduction targets. The CEO also has ultimate
responsibility for meeting ANZ’s 6-year target of
funding and facilitating at least $50 billion by 2025
towards sustainable solutions for our customers.
Enhance alignment with:
•Australian Prudential Regulation Authority
(APRA) CPG 229 guidance on Climate Change
Financial Risks; and
•The New Zealand Financial Sector
(Climate-related Disclosures and Other Matters)
Amendment Act 2021.
NEXT STEPS AND
FUTURE PRIORITIES
ANZ 2022 Climate-related Financial Disclosures
7

Supporting our customers and
industries to transition
•Executing our Environmental
Sustainability strategy
•Funding and facilitating at least
$50 billion by 2025 to support our
customers to achieve improved
environmental outcomes, including
the reduction of their greenhouse
gas emissions
•Equipping Institutional bankers in
key customer segments such as
resources, energy and agribusiness
with a deeper understanding of
climate risks and opportunities
Aligning our lending decisions to
the Paris Agreement goals
•Continuing to improve the
management of climate change
risks within our risk management
framework. This includes factoring
climate change into lending
decisions for large business
customers
•Expect our existing business
customers in higher-emitting
sectors such as energy, building
products and transport to
integrate climate change risk into
their company strategies
•Expect existing energy customers
to integrate climate change
risk into their business strategy
and new business customers or
projects to disclose Paris-aligned
business plans
Engaging constructively and
transparently with stakeholders
•Continuing to engage with 100
of our largest emitting business
customers to encourage them
to strengthen their low carbon
transition plans to achieve a 'well
developed' or 'advanced' rating
and efforts to protect biodiversity
by 2024
•Engaging with stakeholders on
climate change and increase
our transparency
•Public reporting, aligned with
TCFD standards
•Disclosing metrics on the
emissions impact of our financing
and setting targets to reduce this
impact
Reducing emissions
from our operations
•Sourcing 100% of the
electricity needed for our
business operations from
renewables by 2025
1
•Lowering our Scope 1 and 2
emissions by 85% by 2025 and
90% by 2030, against a 2015
baseline
•Seeking to empower our
employees to live and work
more sustainably
Opportunities
•Technology Opportunity
(cost of replacement technology
driving credit demand)
•Market Opportunity
(increased market demand
for Sustainable Finance)
•Reduce operational cost due to
reduced resource consumption
•Positive reputational impact,
increased customer loyalty
Physical Risk*
Acute
(eg. customer
exposure to
storms, cyclones,
flood, fire)
Chronic
(eg. customer
exposure to longer
term climate trends
eg. increased
drought)
Transitional Risk*
Policy
Risk
Market
Risk
Regulatory
Risk
Technology
Risk
Reputational
Risk
The diagram below outlines the opportunities and risks that climate change represents. We are responding to these challenges
and opportunities in four key areas described below. These four areas are expanded in our Climate Change Commitment.
Board Ethics,
Environment, Social
and Governance
Committee
Climate Advisory Forum (Executive level)
Board Risk
Committee
Ethics and Responsible Business Committee
(Executive level)
Strategy
We want to be the leading Australia-
and New Zealand – based bank in
supporting customers’ transition to
net zero emissions by 2050.
Our Climate Change Commitment
provides the framework to achieve our
strategy of enabling the transition, by aligning
our lending portfolio with net zero emissions
by 2050. We recognise historic levels of
investment and lending will be needed
from business, governments and financial
institutions to support the Paris Agreement
goals. Our Environmental Sustainability
strategy identifies priority sectors,
technologies and financing opportunities.
The most important role we can play in
meeting the Paris Agreement goals is to help
our customers reduce emissions and enhance
their resilience to a changing climate. We
support an orderly transition that recognises
and responds to social impacts. This aligns
with our purpose to shape a world where
people and communities thrive. Supporting
household, business and financial practices
that improve environmental sustainability
is a key part of our purpose.
1. Self-generated renewable electricity, direct
procurement from offsite grid-connected
generators e.g. Power Purchase Agreement (PPA)
and default delivered renewable electricity from the
grid, supported by credible attributes in accordance
with RE100 technical guidelines.
Our full Climate Change
Commitment is available here.
ANZ 2022 Climate-related Financial Disclosures
8

Examples of how we are directing our
finance into key priority areas and sectors
of opportunity this year include:
•Participating in a new $1.45 billion Green
Loan for the Intellihub Group to fund the
rollout of smart meters across Australia and
New Zealand.
•Financing the first-ever EV battery
manufacturing plant in South-East Asia for HLI
Green Power, a joint venture bringing together
the Hyundai Mobis, Hyundai Motor Company,
Kia Coporation and LG Energy Solutions in
Korea, demonstrating the value of our regional
network, which is the broadest and deepest of
the Australian banks.
•Piloting the trading of tokenised carbon
credits, using ANZ’s Australian-dollar stable coin.
The transaction was successfully executed with
long-term customer, Victor Smorgon Group.
•Finally, we have a memorandum of
understanding to develop a carbon farming
and biodiversity project that combines native
reforestation and biomass harvesting. This
project has potential to support our customers
by contributing to supply and distribution
capabilities for high-quality carbon credits. The
project is expected to provide opportunities for
rural landowners in the Wheatbelt community
in Western Australia, developed together with
major corporate customers INPEX and Qantas.
The diverse nature of these examples show
the breadth and growth in our environmental
sustainability capabilities across our portfolio.
To successfully deliver this strategy we are:
•continuing to expand our financial
products, services and solutions to support
investment in our environmental priority
growth areas; and
•building and strengthening core
capabilities across the bank including,
for example, ES culture and mindset,
data, insights and technology and risk.
1. Supporting sustainable resource extraction in areas such as iron ore, lithium, nickel, cobalt, rare earths, copper and bauxite.
2. Supporting basic materials production including green steel and low-carbon aluminium production. 3. Supporting new technology
projects focused on upstream hydrogen and carbon capture use and storage.
4. Initial focus on financing high-efficiency residential
buildings and retrofits.
5. Supplying green investment options for environmental sustainability-focused funds/insurers and partnering
with financial institutions to deliver alternative capital.
Climate related opportunities
The pathway to net zero emissions presents
significant financing opportunities.
Supporting our customers to transition to net zero
Key priority areas and sectors we’ll pursue:
Supporting sustainability
in resource extraction¹,
basic materials² and
new technologies³
Banking the
decarbonisation and
electrification of
the transportation
value chain
Increasing
our support for
companies transition
to low carbon
Enabling the
transition towards
lower emissions
buildings⁴
Assisting
sustainable food,
beverage and
commodities
practices and
supply chains
Offering solutions to,
and partnering with,
sustainability-focused
financial institutions⁵
ANZ has an opportunity to assist customers as
they invest in new capabilities, technologies and
assets, provide lower emissions energy and power,
or adapt to a less carbon intensive economy.
Our Environmental Sustainability
(ES) strategy identifies priority sectors,
technologies and financing opportunities
to help support our customers’ transition
to net zero emissions by 2050.
ANZ 2022 Climate-related Financial Disclosures
9

1. Of the 127 sustainable finance deals we participated in, $4.4 billion was attributed to ANZ via our distribution
capability, and $13 billion via on balance sheet loans and other credit lines.

$155B

$71 billion (38 deals) from
Diversied Industries

$22 billion
(15 deals) from Food,
Beverages and Agriculture
$24 billion (25 deals) from
Financial Institutions Group

$10 billion (22 deals)
from Property and Health
$28 billion (27 deals) from
Resources, Energy and
Infrastructure
During 2022
We participated in 127 sustainable
finance deals with a total deal
size of $155 billion
1
, compared
to 81 deals with a total deal size
of $119 billion in 2021:
$112B
(64deals) from
International
$33B
(41deals) from
Australia
$10B
(22 deals) from
New Zealand
Our progress funding and
facilitating the transition
The sustainable finance market represents a
significant opportunity for ANZ, as demand
for sustainable finance products and services
continues to increase. Our Sustainable Finance
team works closely with customers, to help
fund and facilitate their transition.
Sustainable finance facilities provide borrowers
with access to the capital required to help
transition to a net zero emissions economy
and adapt to the physical impacts of a warming
climate, as well as to respond to relevant social
and environmental sustainability risks.
The sustainable finance market is driving
incremental revenues, and strengthening
relationships with our borrower and investor
client base who are seeking our expertise.
Increasing demand for these and other similar
products is assisting us to re-orientate our
balance sheet towards customers who are
implementing credible transition strategies.
Customer demand for sustainable finance
products and services continued to grow this
year, in both transaction volume and financing
format. Sustainability-linked loan volumes increased
significantly, while green, social, sustainability and
sustainability-linked bond issuance volumes were
impacted due to prevailing challenges in capital
markets globally. Following the expansion of our
sustainable solutions product suite, we provided
the bank’s inaugural green and sustainability-linked
guarantees, and sustainability-linked derivatives
for customers.
We participated in 127 sustainable finance
deals with a total deal size of $155 billion,
compared to 81 deals with a total deal size
of $119 billion in 2021.
Sustainable finance growth over time
Sustainable nance total deal size – growth $b
59
119
155
140
160
180
202020212022
120
100
80
60
40
20
0
ANZ 2022 Climate-related Financial Disclosures
10

Progress against our sustainable solutions target
We have committed to fund and facilitate at least $50 billion by 2025
towards sustainable solutions for our customers, including initiatives that
help improve environmental sustainability, increase access to affordable
housing and promote financial wellbeing.

$2.7 billion
Energy

$5.3 billion
Green Building
$0.2 billion
Waste

$0.3 billion
Water
$0.8 billion
Transport

$14.2 billion
Sustainability-
linked Facilities
$1.5 billion
Aordable Housing

$0.03 billion
Environmental
Markets
3

$0.3 billion
Information &
Communication
Technology
4

$0.5 billion
Other Social
$25.8B
Funded
Environmental
37%
ENVIRONMENTAL
Social
8%
Sustainability-
linked
55%

SOCIAL
SUSTAINABILITY-
LINKED

$1.1 billion
Green Buildings/Renewable Loan
Distribution

$0.5 billion
Advisory

$12.6 billion
ESG-format Bonds
Facilitated
$14.2B
8%
89%
3%
$1.1 billion
Green Buildings/Renewable Loan
Distribution

$0.5 billion
Advisory

$12.6 billion
ESG-format Bonds
Facilitated
$14.2B
8%
89%
3%
1. Includes Wind/Solar/Battery/Transmission Infrastructure/Energy Transition/Energy Efficiency. 2. Low carbon transportation projects such
as light rail, electric vehicle manufacturing.
3. Corporate loans for businesses in environmental/carbon project development which facilitate
the transition to net zero or create nature positive outcomes.
4. Networks, management and communication tools which facilitate the
transition to net zero, e.g. power management, broadband.
5. Corporate loans to borrowers across multiple industry sectors where terms are
linked to improved performance against agreed environmental and/or social targets that reflect the borrower’s material sustainability risks,
e.g. emissions reduction, increased renewable energy consumption, labour force diversity.
6. Includes credit lines to global development
banks and agencies providing support to emerging economies, and social component of Sustainability Loans.
7. Green, Social, Sustainable,
Sustainability-Linked and Transition Bonds and other ESG-related bonds within the sustainable finance market.
8. Loans initially underwritten
by ANZ and subsequently sold on to other lenders, e.g. other banks, fund managers and super funds.
Since October 2019 we have funded
and facilitated $40.04 billion across 332
transactions. This includes green, social,
sustainability, sustainability-linked and
transition loans and bonds, energy
and affordable housing. $25.8 billion
of transactions are on balance sheet
loans and other credit lines provided to
borrowers by ANZ, while $14.2 billion
has been facilitated – including through
advisory services; ESG-format bonds; and
loans initially underwritten by ANZ- and
subsequently sold on to other lenders.
The majority of transactions included in our
progress towards our target provide funding
for sustainability-linked facilities, green buildings,
energy and affordable housing (55%, 21%, 11%
and 6% of funded transactions respectively),
and facilitate ESG-format bond issuance (89%
of facilitated transactions).
ANZ 2022 Climate-related Financial Disclosures
11

Providing the products and services required for transition to a low carbon economy
We are focused on identifying opportunities to support our customers’ path to net zero emissions and
enhance their resilience to a changing climate.
Examples of products we provide include:
Sustainable productsPurpose
Green, Social and
Sustainability Loans
Lending to deploy capital into green, social and sustainability initiatives, where borrowers are required to use the
proceeds of a loan to invest in qualifying green and/or social assets
Sustainability-Linked Loans
Lending which incentivises the borrower’s achievement of ambitious, predetermined sustainability performance targets
Green and Sustainable
Infrastructure (Project) Finance
Project financing to support the development of long-term sustainable infrastructure, e.g. renewable energy, schools
and transport
ESG-format bonds
Distribution of capital into green, social and sustainability initiatives, e.g. green buildings, renewable energy or where
bond terms are linked to improved performance against predetermined sustainability performance targets
Green and Sustainability
Linked Guarantees
•Green Guarantees secure contractual obligations and link them to the use of proceeds from environmentally
sustainable projects
•Sustainability-linked guarantees include a pricing component tied to sustainability performance targets
Sustainability-Linked Derivatives
Derivatives which include a pricing component tied to the sustainability targets of an underlying sustainability-linked
bond or loan. This includes swaps, forwards, cross currency swaps, interest rate and foreign exchange options executed
alongside sustainability-linked bonds or sustainability-linked loans
Corporate Finance Advisory
Services for Renewables
Advisory services relating to buying, selling and raising capital for renewable energy projects
ANZ/Clean Energy Finance
Corporation (CEFC) Energy Efficient
Asset Finance (EEAF) Program
Financing to incentivise Australian Commercial and Agribusiness customers to invest in energy efficient and renewable
energy technologies to reduce energy costs and carbon emissions
Good Energy Home Loan
1
top up
Available for New Zealand retail customers to upgrade homes with solar panels, heating and insulation, double glazing,
ventilation systems and rainwater tanks. It can also be used for electric and hybrid vehicles, and electric vehicle chargers
Healthy Home Loan Package
Offers discounts on home loan interest rates and other benefits for energy efficient homes. New Zealand customers can
apply for the package if they are buying, building, renovating, or already own a home with a 6 Homestar rating or higher
Business Green Loan
Available for New Zealand business customers to finance (or refinance) renewable energy and energy efficiency
initiatives, green buildings, sustainable land, water and wastewater projects that make a positive environmental impact.
Launched in early September 2022, businesses are able to borrow up to NZ$3 million at a special floating interest rate
For further information on how
ANZ is funding and financing the
transition, refer to page 22-24 of
our ESG Supplement available at
anz.com/annualreport
1. This product requires customers to have an ANZ Home Loan to qualify.
ANZ 2022 Climate-related Financial Disclosures
12

Building capability to recognise and
assess climate risk and opportunity
This year we launched our Mindset 2030
Program to build the knowledge and skills of our
employees, to help our staff better understand
our own and our customers’ environmental
sustainability risks and opportunities.
Mindset 2030 includes an employee portal
with information about our environmental
sustainability strategy, research and publications,
and how we are financing customers to shift to low
carbon business models and operations that put
them on a path to net zero emissions. To date, 935
people have accessed the Mindset 2030 learning
program with a total of 1,955 modules completed.
In New Zealand we provided a ‘Carbon 101’
education series to over 500 New Zealand
business bankers with insights into why
environmental sustainability and carbon
emissions management have the potential to
be an important part of every business’ strategy.
In addition, we continue to equip our staff
with the skills and knowledge to undertake
assessments of 100 of our largest emitting
business customers' transition plans. The training
outlines example case studies and provides
guidance on what success looks like from
a customer engagement perspective.
Aligning our lending decision to the
Paris Agreement Goals
To reduce our portfolio emissions, we commit
to aligning our lending with the goals of the Paris
Agreement. We are applying emerging tools used
by peer banks to measure and compare our efforts
in reducing emissions, including how we can
report on the impact of our lending decisions.
As a Net Zero Banking Alliance (NZBA) signatory,
ANZ is committed to transition all operational and
financed
1
emissions from our lending portfolios to
align with pathways to net zero by mid-century,
consistent with a maximum temperature rise of
1.5°C above pre-industrial levels by 2100.
Refer to pages 24 to 26 for more information
on how we are integrating climate change risk
into policy and process.
1. Scope 3 emissions attributable to lending.
ANZ 2022 Climate-related Financial Disclosures
13

Engaging constructively and
transparently with our stakeholders
Engaging with 100 of our largest
emitting large business customers
We committed to engage with 100 of
our largest emitting business customers,
to encourage them to strengthen their
low carbon transition plans and enhance
their efforts to protect biodiversity.
Last year, transition plans for 100 of our largest
emitting business customers were grouped into
levels of maturity – advanced, well developed,
underdeveloped/starting out, and no public
plans. Low-carbon transition plans are typically
re-assessed annually, with engagement occurring
throughout the year. As part of this engagement
we expect more customers to further improve their
plans to a ‘well developed, or ‘advanced’ stage.
Customers continue to value our engagement on
this topic, and our perspectives. Several customers
outside of the 100 have sought to engage with us,
seeking clarity on our expectations, or requesting
suggestions to improve their approach. For those
customers starting out, we provide support in the
form of insights into enhanced customer practices
we have observed through our engagements.
Where customers are further advanced, we
encourage them to find ways to strengthen their
approach and provide options for how we could
potentially assist including setting ‘stretch’ targets
linked to improved financing terms in the form
of sustainability-linked lending.
Within each industry, our customers have
different starting points. Since the initial maturity
assessment in 2021, many customers have
improved their governance, strategies and
targets or disclosures, leading to an improved
level of transition planning.
This is a positive step change over a 12-month
period, as our customers continue to build their
capacity to transition. For example, while many
customers already had targets in place, we have
observed a ‘strengthening’ in approach with a
rise in the intention to develop ‘Paris-aligned’ or
‘science-based’ targets and in those intending
to report under the TCFD framework.
Discussions are typically led by our Relationship
Managers and can include discussions with the
Institutional Group Executive, Chief Risk Officer
and senior executives from our customers.
Where a customer remains in the ‘no public
plan’ category, or in situations where there
is a continued misalignment in approach,
we will consider the most appropriate actions
on a customer-by-customer basis.
Over the course of our engagement with
our customers, there have been instances
where we declined finance or have reduced
limits to customers that have less developed
plans or a misalignment in approach. These
decisions were made in line with our Climate
Change Commitment and Social and
Environmental Risk Policy.
Overall, our engagement with our largest emitting
customers has progressed well this year – we’ve
completed discussions with 99 customers on their
progress in enhancing their low carbon transition
plans and efforts to protect biodiversity. 61% of
customers now have well developed or advanced
transition plans versus 42% in September 2021.
This keeps us on track to meet our public target
for more customers to achieve this level of
maturity in their plans by end 2024.
100 of our largest emitting business customers – by transition plan category
40
30
20
10
0
Sep 2021
Sep 2022
BACD
38
27
36
27
22
11
23
15
Since September 2021 we have upgraded
our assessment of 29 customers:
7 from B to A
13 from C to B
5 from D to C
1 from C to A
3 from D to B
Customer transition plan categories
A – Advanced B – Well developed C – Underdeveloped/starting out D – No public plans
1. We replaced six customers in 2022 due to exits or significantly reduced exposures, or due to mergers and
acquisition activities. Replacements on this list are typically from a similar sector, located in the same country
or region, a similar level of exposure and emissions and at a similar stage of their transition planning.
ANZ 2022 Climate-related Financial Disclosures
14

We consider three key elements constitute a robust low carbon transition plan:
A clear framework outlining Board and senior management
accountability and oversight of management of climate
change risks and opportunities.
Good
Governance
Public greenhouse gas emission reduction targets to support government
policies up to 2030 in key markets of operation, ie. at a minimum aligning with
country-specific Nationally Determined Contributions (NDCs).
Company policies or statements setting out long-term goals, including whether
they support or commit to achieving net zero emissions by 2050.
Targets &
Policies
Public reporting aligned with the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations, or comparable framework(s), to
enable stakeholders to assess the robustness of their business plans against
a range of climate scenarios, preferably including a “well below” 2-degree
scenario or 1.5 degree-aligned scenario.
Public
Disclosures
ANZ 2022 Climate-related Financial Disclosures
15

Examples of characteristics of customers within categories:
Energy company –
Category A
Governance
Targets
Disclosures
CUSTOMER
•Acknowledges climate risk is a
material risk and opportunity; has
well developed plans and actions
(by reference to their governance,
targets, disclosures, and committed
to net zero emissions by 2050)
•Climate resilience is a key pillar
of its sustainability strategy
•Public goal of net zero emissions
by 2050 across its portfolios
•Strong governance in place to
manage climate risk
•TCFD-aligned reporting
Diversified industrial company –
Category B
Governance
Targets
Disclosures
CUSTOMER
•At a well developed stage with
well developed plans and actions
•Public climate change commitment;
climate issues are considered by
Sustainability Management Committee
that report to their Board
•2030 emissions reductions targets
in place
•A long-term vision of striving for
net zero by 2050
•Reports using the TCFD guidelines,
scope to improve
Large commodities company –
Category C
Governance
Targets
Disclosures
CUSTOMER
•At an underdeveloped/starting out stage:
acknowledgement, but with limited plans
and/or actions
•Sustainability and climate risk discussed
with Board Risk Committee at regular
intervals; Chairman and CEO oversee
their climate approach
•Has targets to reduce ‘emissions intensity’
across some of its operations
•Moving towards TCFD-aligned reporting;
has a ‘TCFD index’ in its reporting
1
Large retailer –
Category D
Governance
Targets
Disclosures
CUSTOMER
•No public plans evident; however, is
establishing an Executive Sustainability
Committee which will provide greater
oversight
•Developing sustainability projects at
a business and franchisee level
•Has engaged an external consultant to
help develop a sustainability framework
•Acknowledges the need to develop a
transition plan, though unclear at this
stage whether it will be made public
•Has not reported against TCFD
In place/met In progress
We have four transition plan categories:
A – Advanced B – Well developed C – Underdeveloped/starting out D – No public plans
Illustrative examples of characteristics of customers within these categories are shown below
1. Others in category C may be reporting against TCFD, with uplift required in key areas such as governance, metrics and targets.
ANZ 2022 Climate-related Financial Disclosures
16

Biodiversity
We acknowledge the need to protect, restore
and mitigate biodiversity loss including as a
result of species extinction or decline, ecosystem
degradation and nature loss. We seek to understand
the impacts – positive and negative – our large
business customers can have on biodiversity and
the impacts that biodiversity loss may have on
the customer. We recognise the contribution
we can make by working with our customers
to understand risks and opportunities posed by
their operations and to manage their impacts.
We are committed to working with customers that
support social and environmental sustainability
in their approach.
We acknowledge biodiversity risks are closely
linked to climate-related risks. In relation to
biodiversity, risks can arise from lending to
customers that are significantly dependent
on biodiversity and ecosystem services, or
who may have negative impacts on biodiversity.
In addition to physical risks associated with
biodiversity loss, risks can also arise from changing
societal preferences and regulatory or policy
changes (including potential reforms to halt and
reverse forest loss, species extinctions and land
degradation). These changes may impact the
bank directly, but the greater impact is likely
to be through the impact of these changes on
some of the bank’s customers. We understand
that failure to manage these risks may lead to
financial and non-financial risks and adverse
impacts to the Group’s position.
In line with our Social and Environmental
Risk Policy, we expect our business customers
to use internationally accepted industry practices
to manage social, environmental and
economic impacts, including potential
impacts on biodiversity.
Our Land Acquisition Statement acknowledges
we will not knowingly support customer
activities that significantly impact on culturally
or environmentally sensitive areas, including:
World Heritage Areas, wetlands on the Ramsar
list, designated national parks and conservation
areas, activities that threaten species listed in
CITES, the IUCN Red List or relevant national
legislation, activities that result in the broad-scale
conversion of intact native forests and High
Conservation Value Areas, or activities which
are in breach of agreed international treaties
and agreements.
This year we broadened our engagement with
100 of our largest emitting business customers
to include a focus on biodiversity, encouraging
and supporting them to identify and manage
their potential impacts and dependencies on
biodiversity – so far, we’ve engaged with 99
customers with this in mind. We encourage
them to establish or strengthen their approach to
biodiversity through effective Board governance,
policies and strategies, and disclosures using
recognised indicators or metrics.
Our engagement with our largest emitting
business customers on biodiversity has been
positive. We are seeing increased customer
awareness of biodiversity and an increasing
willingness to improve holistic management
approaches, for example by putting in place
governance and strengthening how they
measure their impacts on nature. Currently,
76 customers have robust governance in
place on biodiversity, to support their
management of existing environmental laws
and regulations. For example, customers in the
mining sectors are subject to environmental
regulations encompassing biodiversity.
We look to understand the impacts of a customer
on biodiversity, and the impacts that biodiversity-
loss may have on the customer. Currently
customers are less progressed in setting targets
and disclosure around biodiversity compared with
their progress in developing low carbon transition
plans, though we expect progress to continue in
line with developments in the Taskforce on
Nature-related Financial Disclosures (TNFD).
Currently, 50 customers have targets, policies or
strategies in place to protect biodiversity, with
58 making disclosures on their efforts to protect
biodiversity using recognised indicators or metrics.
Customers
100 of our largest emitting business
customers biodiversity status
76
50
58
70
80
90
100
GovernanceTargets, policies
or strategies
Disclosures
60
50
40
30
20
10
0
Customers engaged
Customer engagement to date indicates a group
of leaders – some with ‘no net loss’ and others with
‘positive impact’ commitments. One customer in
our largest emitting customer group is identifying
and understanding the material biodiversity issues
at their operations, including deforestation
management, and is conducting an audit of wildlife
sightings to ensure more robust measurement.
We are considering how we might apply what we
learn from our customer engagement to identify
and engage with other large business customers
likely to have significant impacts on biodiversity.
We welcome the establishment of
the TNFD and have joined the TNFD
Forum to support their work. We
recognise their important role in driving
widespread and improved disclosures
of biodiversity impacts.
ANZ 2022 Climate-related Financial Disclosures
17

Partnerships and initiatives
We are implementing partnerships to
support our environmental sustainability
strategy, some examples include:
Australian Sustainable Finance Institute
ANZ is a founding member of the Australian
Sustainable Finance Institute (ASFI), which has
developed a roadmap to re-align Australia’s
financial system to enable the transition to a
more resilient and sustainable economy. The
roadmap sets out 37 recommendations tackling
a broad suite of challenges including climate
change, biodiversity loss and economic inequality.
In calendar year 2022, the Institute made ongoing
progress towards implementing priority
recommendations. This includes establishing
the Taxonomy Technical Advisory Group and
the Taxonomy Steering Committee to begin
development of the Australian Sustainable
Finance Taxonomy. The Institute also supports
and contributes to a well-informed Australian
voice in the development and implementation
of the Taskforce for Nature-related Financial
Disclosures (TNFD).
ASFI members have participated in several
workshops organised by the Australian
Government designed to educate and raise
awareness on development of the TNFD.
Pollination
In February 2022, ANZ entered a strategic
partnership with climate advisory and investment
firm Pollination to deliver innovative solutions and
opportunities to customers, and helping to drive
the transition to net zero and support biodiversity.
The strategic partnership will focus on the
transition needs of ANZ’s customers globally
in the areas of Sustainable Finance, Project &
Export Finance, Carbon Markets and Corporate
Advisory, including mergers and acquisitions.
Toitū Tahua Centre for Sustainable Finance
ANZ New Zealand is a founding member of the
Toitū Tahua Centre for Sustainable Finance (CSF),
established in July 2021 as a charitable trust
under the umbrella of the Aotearoa Circle. The
Aotearoa Circle is a partnership of public and
private sector leaders, committed to the pursuit
of sustainable prosperity and reversing the decline
of New Zealand’s natural resources. In calendar
year 2022, the CSF began implementing the
Aotearoa Circle Roadmap for Sustainable Finance,
focusing on three key areas: changing mindsets,
transforming the finance system and financing the
transformation. It aims to support the stakeholder
engagement process that underpins CSF. One of
the most recent gatherings was the Toitu Tahua
Inclusion Summit, held in July 2022, attended by
Māori/Iwi organisations, corporates, community
organisations and government/regulators to
collectively consider new models for increasing
accessibility of services to communities and
formulate ideas for action.
Thought leadership
Toitū Envirocare
This year, ANZ New Zealand released a series
of insight papers and webinars in partnership
with climate advisory and carbon certification
firm Toitū Envirocare to help small and medium
sized businesses understand their emissions, set
reduction targets and identify initiatives to achieve
them. We are also growing the knowledge and
expertise of our staff through this partnership.
The ANZ Hydrogen Handbook
Last year ANZ became a member of the
Australian Hydrogen Council (AHC), the peak
body for the Australian Hydrogen Industry, as part
of our commitment to the emerging hydrogen
economy. The bank’s membership has allowed
ANZ to draw on the collective expertise of the
council and better understand customer needs
in financing hydrogen projects. For hydrogen to
help in the energy transition to net zero, it must
be produced with renewable energy. Green
hydrogen is produced by using wind or solar
power to split water to form hydrogen and oxygen.
We want to help our customers develop new
technologies, products and services to facilitate
this growth. To assist our customers we launched
“The ANZ Hydrogen Handbook – AH2” – the
publication consists of numerous research papers
with up to date and practical information on this
developing opportunity.
Regulator and policy engagement
The risks associated with climate change are
subject to increasing regulatory, political and
societal focus domestically and internationally.
Recent developments in our home markets include:
•In Australia, the Australian Prudential Regulation
Authority (APRA) released a prudential practice
guide CPG 229 in November 2021 that is
designed to assist regulated entities (including
the Group) in managing climate-related risks
and opportunities as part of their existing risk
management and governance frameworks.
This year we participated in APRA’s Prudential
Practice Guide CPG 229 Climate Change
Financial Risks self-assessment survey, along
with 63 other APRA-regulated entities in March.
The voluntary survey was designed to provide
insights into the alignment of climate risk
practices by APRA-regulated institutions
with the expectations set out in CPG 229.
The findings recently published show that
an area for improvement for entities is metrics
and targets, with forward looking exposure to
physical and transition risk disclosures being
limited. However, APRA recognised that climate
risk is an emerging discipline compared with
other traditional risk areas and assessing and
managing climate risk is complex and resource-
intensive. Sophisticated risk analysis will require
strategic effort and investment.
We will use the findings of the survey to
consider any potential enhancements to
our approach in applying CPG 229.
Earlier this year we participated in
APRA’s Climate Vulnerability assessment.
See page 26 for more information.
ANZ 2022 Climate-related Financial Disclosures
18

•In New Zealand – the Financial Sector
(Climate-related Disclosures and Other Matters)
Amendment Act 2021 will require ‘climate
reporting entities’ to annually prepare, seek
independent assurance for and make public
disclosures on the management and effects
of climate change to their business. First
disclosures will be due for the financial year
ending 30 September 2024. ANZ New Zealand
has been actively engaging in the development
of the climate-related disclosure standards
via the External Reporting Board (XRB). ANZ
New Zealand joined 17 New Zealand banks
collaborating to design climate scenarios to
create better informed climate scenario analysis
in the New Zealand finance sector.
•ANZ is also a member of a number of
industry associations. We seek to contribute
constructively to public policy formation
and understand the perspectives of our
community’s elected representatives,
policymakers and regulators. We contribute
to policy on business, economic, social and
environmental issues. This year we participated
in the Australian Banking Association (ABA)
Climate Risk working group which aims to
develop an industry position on the practical
response to climate change. In addition, ANZ
participated in an ABA industry response on
the draft International Sustainability Standards
Board standards.
We have begun a process of periodically
reviewing our membership of key associations
and will publicly disclose outcomes and any
material change to our position. In 2020 we
conducted a review of the alignment of ANZ’s
policy position on climate change with those
of our industry associations. The outcomes
of the review can be found in our Industry
Association review (October 2020) available
at anz.com.au/about-us/esg.
We continue to engage constructively with
stakeholders on our approach through ESG and
carbon market briefings, investor roundtables,
civil society engagement and other avenues.
ANZ 2022 Climate-related Financial Disclosures
19

Carbon footprint calculator
Beyond our centralised operational
footprint, we also looked to reduce
emissions by engaging our people to
reduce their personal emissions while
working flexibly. A personal carbon
footprint calculator was developed
in partnership with external provider,
Trace, and has been used by almost
500 staff at ANZ.
Green Ambassador Summit
Our Green Ambassador program,
launched in 2018, empowers our people
to live sustainably through education
and by providing pathways to act.
This year, we held our second Green
Ambassador Summit, a professional
learning and development opportunity
for employees to build sustainable
Continue to engage with 100 of our
largest emitting business customers
to support them to, by end 2024:
•implement and strengthen their
low carbon transition plans and
•enhance their efforts to
protect biodiversity
Continue to enhance banker capability to
identify climate risks and opportunities
Extend transition plan engagement with
other large emitting business customers
into our regular customer assessments
Pilot the Taskforce on Nature-related
Financial Disclosures (TNFD)

capabilities, mindsets and culture. Over
the month of August, more than 1,500
participants attended virtual panel discussions,
workshops and in-person tours, and heard
from business and community leaders on
the latest sustainability insights.
Sustainable Coastlines
In partnership with Sustainable Coastlines,
staff volunteered in annual planting
activities across New Zealand. The program
includes education and awareness raising
of environmental issues and helps staff and
communities understand the importance
of biodiversity.
For further initiatives see our
2022 ESG Supplement available at
anz.com/annualreport
Sustainable staff initiatives
Reducing our own emissions
In our own operations, emissions reductions
continued this year due to property consolidation
and ongoing flexible working arrangements for
our non-branch staff. Our aspiration is to limit
consumption to less than pre-pandemic levels
on a per-capita basis as staff gradually return to
the office.
The COVID-19 pandemic has unquestionably
changed the way ANZ does business, making
it necessary to reset our 2025 and 2030
environmental sustainability footprint targets
to align with more flexible working arrangements
for employees. See page 28 for performance
against our current targets and page 30 for the
new targets we have set. For further details
see our 2022 ESG Supplement available at
anz.com/annualreport.
1. Self-generated renewable electricity, direct procurement
from offsite grid connected generators e.g. Power Purchase
Agreement (PPA) and default delivered renewable electricity
from the grid, supported by credible attributes in accordance
with RE100 technical guidelines.
We joined the RE100 initiative
in 2019, which commits us to 100%
1

renewable electricity by 2025 across our
operations. We will achieve this target
through solar installations, solar leasing
and power purchase agreements (PPA)
and purchasing renewable energy
Australian operations
continue to be certified as
carbon-neutral under the
Climate Active certification.
certificates (International Renewable Energy
Certificate (I-RECs), New Zealand Energy
Certificate System (NZECs) etc) in countries
where solar and PPAs are not appropriate. This
year, our operations were powered by 39%
renewable energy, avoiding approximately
55,400 tonnes of greenhouse gas emissions.
Use of lower-emissions sources of energy:
NEXT STEPS AND
FUTURE PRIORITIES
ANZ 2022 Climate-related Financial Disclosures
20

Risk
management
Risk management at ANZ
We have disclosed our most material
economic, social and environmental risks
in our 2022 Annual Report (available at
anz.com/annualreport) in accordance
with the ASX Corporate Governance
Council’s ‘Corporate Governance Principles
and Recommendations – 4th edition’.
We include climate change as one of
our Principal Risks and Uncertainties
(available at anz.com/shareholder/centre).
Our most material climate-related risks
result from our lending to business and retail
customers, including credit-related losses
incurred as a result of a customer being
unable to repay debt, or impacting the value
and liquidity of collateral. Under our Risk
Management Framework, our material risk
category of Credit Risk considers the risks
associated with lending to customers that
could be impacted by climate change,
including physical and transition risks. While
climate change risk primarily manifests as
financial risks, it may also result in additional
market, operational or other risks. We manage
climate-related impacts in accordance with
the risk management strategies associated
with the applicable key material risks.
Climate change risk is an emerging discipline
compared with other traditional areas of
risk – and our understanding of the impacts
continues to evolve and mature. We are taking
steps to further embed climate risk into our
Risk Management Framework, in order to
adapt our operations and business strategy
to consider both the risks and opportunities
posed by climate change and the transition
to a low carbon economy.
We continue to develop an organisational
culture that encourages regular discussion and
consideration of emerging climate-related risks.
Our Risk team is working with our bankers to seek
ongoing engagement with customers about
managing the risks and opportunities associated
with climate change, assisting us to progress our
engagement with our largest emitting business
customers on their transition plans.
Climate-related risk
Climate change risks include both physical risk
(the effects of changes to the frequency or
magnitude of different extreme weather events
such as bushfires, floods, severe storms and
drought) and transition risk (the impact of
changes to domestic or international policy and
regulation, technological or market changes).
The risk to the Group from credit-related issues
with customers could result directly from
climate-related events, and indirectly from
changes to laws, regulations, or other policies
such as carbon pricing and climate risk adaptation
or mitigation policies, which may impact the
customer’s supply chain.
ANZ classifies risk time horizons as follows,
aligning with our classification of limits.
From
(years)
To
(years)
Short-term01
Medium-term15
Long-term530
Climate related risks that may potentially
impact our performance include:
Policy risk:
Policy risk exists in a range of climate exposed
sectors. For example, the global energy sector
is in a state of rapid transition. Across ANZ’s key
markets, jurisdictions are pursuing various energy
policies to meet their respective carbon emissions
targets. In Australia, energy policy uncertainty
has contributed to constrained energy market
developments. This year, Australia’s energy market
saw extreme energy volatility, contributing to
closure of several small retailers. There is broad
agreement from energy regulators for large scale
investment to ensure energy market stability.
Future policy changes or uncertainty may affect
the operating costs of customers in a range of
carbon intensive industries. For example, through
more aggressive emissions reductions targets,
a mandated shift to lower carbon processes or
policies to allocate or levy costs associated with
carbon emissions. We manage this risk through
a combination of customer engagement and by
assessing relevant publicly available information,
recognising that the levels of risk exposure and
potential impacts vary across industry sectors
and individual businesses.
A potential risk also exists should prudential
regulators implement measures such as capital
overlays on high carbon assets in recognition
of their increased transition risk. Should this
eventuate, it may increase the cost of funding
and reduce our ability to support customers
in carbon-intensive sectors to transition.
Timeframe:
L
M
S
Long term
L
Medium
M
Short
S
ANZ 2022 Climate-related Financial Disclosures
21

Legal risk
Increased regulatory oversight will require
financial institutions to dedicate additional and
ongoing resources to identify, assess, manage
and disclose climate risks and opportunities,
leading to increased operational costs.
‘Greenwashing’ risk may arise where an entity
misrepresents its climate-related risks, business
credentials or strategies. If ANZ is found to have
engaged in ‘greenwashing’, this may lead to
penalties and reputational impacts, which could
lead to a decline in ANZ’s future earnings. We
manage this risk through disclosing transparently
our climate-related financial risks and through our
risk management policies and processes. We also
closely monitor both our own legal risks (to the
extent that they arise) and claims brought against
other organisations to better understand
emerging trends.
We also monitor our customers’ exposure to
legal risk which may manifest as potential
credit and reputational risks through our Social
& Environmental Risk Screening process and
credit process, for those customers identified
to be vulnerable to legal risks.
Timeframe:
L
M
S
Technology risk
New technologies may disrupt the economics
of certain products and services. For example, we
are seeing emerging technologies being applied
to renewable energy projects (both generation
and storage), which may reduce demand for coal
and gas fired electricity generation faster than
expected and result in assets becoming stranded
and bring forward decommissioning costs.
This risk may result in credit losses, which can
occur when a customer becomes unable or
unwilling to repay debt. We seek to minimise
the risk of losses, through customer selection,
working actively with those customers facing
difficulties and actively managing our exposure
towards lowest cost producers.
Timeframe:
L
M
Market risk
Market risks arise from lending to companies with
large exposures to high carbon assets. If these
companies experience a decline in demand for
their products or services, this may affect their
ability to repay loans.
Market demand, supply and prices for climate
exposed sectors, such as energy generation,
can be subject to a number of influences and
may change unpredictably.
We manage this risk through a combination
of customer engagement and by assessing
relevant publicly available information,
recognising that the levels of risk exposure
and potential impacts vary across industry
sectors and individual businesses.
Timeframe:
L
M
S
Reputational risk
Failure to apply appropriate standards to our
decisions and respond effectively to stakeholder
concerns about our involvement in particular
transactions can result in public criticism and
activism, potentially damaging our brand and
reputation. Negative stakeholder perceptions
may adversely affect our business relationships
and access to funding.
We manage this risk through our Social and
Environmental Risk Policy, which sets out
the principles and standards we apply to all
Institutional and Corporate banking customers
to ensure consistent management and mitigation
of social and environmental risks. Where customer
practices are identified that may not be consistent
with ANZ’s policies, we work with the customer
to understand the circumstances and, where
necessary, identify specific and time-bound
improvement plans. If prospective or existing
customers do not meet our standards and
they are not willing to adapt their practices
in an appropriate time-frame, we may decline
financing or exit the relationship.
Timeframe:
M
S
Acute physical risk
Customers exposed to acute climate-related
events may adversely affect our collateral position
in relation to credit facilities extended to those
customers. Our largest exposures are associated
with residential mortgages in Australia and New
Zealand. To protect ANZ from these events, all
property mortgaged by ANZ must be insured
under a policy acceptable to ANZ and must
be maintained for the period that ANZ holds
the mortgage.
Timeframe:
L
M
S
Chronic physical risk
We support a range of agribusinesses across
Australia and New Zealand. Agriculture requires
specific weather and soil conditions, and farmers
congregate in locations that have historically
provided the right environment. As the climate
changes, some customers might find they are
unable to cope with the magnitude or frequency
of the climatic ‘down periods’ such as drought,
that may reduce income and impact asset values,
potentially affecting their ability to repay loans.
To help overcome this uncertainty we work
with our agribusiness customers to understand
any significant climatic changes in their region.
See next page for further detail.
Timeframe:
L
M
Long term
L
Medium
M
Short
S
ANZ 2022 Climate-related Financial Disclosures
22

Residential mortgages
Despite their severity and widespread
geographical impact, the calendar year
2022 floods in New South Wales did not
result in any material credit related impacts
in our retail mortgages portfolio. While
many homes were unfortunately lost in the
floods, most customers were protected by
an insurance policy (in accordance with
their mortgage contract) resulting in
minimal losses to the bank. We are
continuing to develop scenarios
estimating the potential financial impact
of extreme weather events in the future.
This year we have improved our
identification and valuation of natural
hazard risk in the Australian Home Loans
portfolio. Where ANZ intends to hold a
mortgage over a property as security
against a loan, and the property is flagged
in our Property Intelligence Hub as being
in an extreme rated fire or flood risk
and the application loan to value ratio
is greater than 70%, then that property
will be subject to full or kerbside valuation
that contains detailed relevant information
related to natural hazard risk. An automated
valuation model or desktop valuation will
not be used for these properties.
This updated approach is designed to
provide adequate assessment of properties
where flood and fire hazard present higher
risk, for better risk assessment of potentially
vulnerable securities.
ANZ operates across Australia, New
Zealand, Asia Pacific, Europe and America.
Countries in these regions are vulnerable
to extreme weather events, including
cyclones, storms and flooding that are
increasing in frequency and severity as a
result of climate change. We are also facing
higher risk of extreme floods, such as those
that occurred in 2020–21 and calendar
year 2022 along the eastern-seaboard of
Australia. While on occasion these events
can cause damage to ANZ property and
infrastructure resulting in branch closures,
Agricultural sector
Our Australian agricultural business has
worked with external stakeholders such as
United Nations Environment Programme for
Financial Institutions (UNEP FI) to understand
credit risk under various climate warming
scenarios. While the impact of physical climate
risks can be serious for individual customers or
locations, to date, across its portfolio diversified
by both commodity and geography, the bank
has experienced a low level of credit loss due
to events such as bushfire, flood and drought.
Testing of customer’s financial resilience to
climatic events is embedded in our agricultural
business, for example, when customers
purchase properties in areas identified as
having low rainfall or more likely to experience
rainfall variation, we test their financial resilience
to climatic events like drought and rainfall
variation. Customers with lower resilience
may be subject to enhanced underwriting
standards – for example, loan approval may be
dependent on a lower loan to valuation ratio,
higher repayments, or evidence of savings or
equity. Our bankers also need to document the
customer’s knowledge of recent rainfall and
climate trends where their farm is located.
Work is underway in New Zealand to test the
resilience of dairy, sheep and beef farming
customers to various drought scenarios and
carbon prices as part of the Reserve Bank of
New Zealand's (RBNZ's) climate sensitivity
analysis program. This work will be completed
in early 2023.
our Business Continuity Plans and Disaster
Recovery Plans have been tailored through
experience to quickly establish alternative
banking arrangements for the communities
and people affected.
Physical risks associated with climate change,
such as damage to ANZ’s physical assets or
business disruption due to the occurrence of
natural disasters, are identified, assessed and
managed through ongoing application of our
Operational Risk Management Framework.
Physical risk to residential and agricultural sectors spotlightPhysical risk to ANZ’s operations
ANZ 2022 Climate-related Financial Disclosures
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Refined our Risk Appetite Statements for Institutional and included
climate risk in lending criteria documents in Australia Retail, Commercial
and New Zealand portfolios.
Implemented an additional screening process for energy transactions,
which includes escalation requirements for material transactions.
Risk Appetite
Reviewed and assessed current and emerging regulatory
requirements across the jurisdictions in which we operate.
Regulatory
Monitoring
Piloted a Climate Change Risk Assessment (CCRA) for all Project Finance
credit assessments (new transactions and Annual Reviews). The CCRA aims
to identify and evaluate climate risks, including physical and transition risk.
Outcomes of the assessment are included in and inform the credit decisions.
Added a new climate risk topic within our Wholesale Judgemental Credit
Requirements, which defines climate risks to help bankers consider these
risks as part of customer credit assessments.
Digitised our Social & Environmental Risk Screening tool, used to assess
Institutional and Corporate customers. This work will be completed within
the first quarter of next year, enabling us to better collect and analyse data
through our customer screening.
Policy & Process
Participated in the Australia Prudential Regulation Authority’s (APRA)
Climate Vulnerability Assessment.
Engaged with industry bodies and consultants to better understand
data that could be used to assess physical risks across our portfolio.
Completed analysis of physical and financial risks of inland flooding
(Auckland) for the Reserve Bank of New Zealand’s climate sensitivity
analysis (New Zealand).
Data & Analytics
How ANZ is integrating Climate Change Risk into our Risk Management
Monitoring climate regulation
As ANZ operates in 32 markets, one of our
priorities is to ensure we comply with climate
regulation in the jurisdictions in which we
operate. We have change management
processes in place to help us identify, assess
and manage new regulatory obligations when
they come into effect.
In some jurisdictions, climate-related risks
are being integrated into micro prudential
supervision of banks, aligned with the TCFD
recommendations. Regulators in our home
markets of Australia and New Zealand have
taken steps towards closer supervision
of financial institutions regarding climate
change risk.
In November 2021, APRA released its prudential
practice guide CPG 229 on Climate Change
Financial Risks. In early calendar year 2022, we
participated in APRA’s Climate Vulnerability
Assessment with Australia’s five largest banks –
see page 26 for further details.
We also participated in the APRA Prudential
Practice Guide CPG 229 Climate Change
Financial Risks self-assessment survey, along
with 63 other APRA-regulated entities in
March 2022. See page 18 for further details.
In New Zealand, the government has
introduced the Financial Sector (Climate-related
Disclosures and Other Matters) Amendment
Act 2021 – that makes climate risk reporting
based on the TCFD framework mandatory for
banks, asset managers and insurers by 2023.
Updates in climate change related regulation
across ANZ’s key markets are regularly provided
to our executive ERBC and our Credit and Market
Risk Committees. The updates are also discussed
with the Board Risk and EESG Committees. These
updates inform discussion on the adequacy of
our risk management, and internal policies and
processes in ensuring compliance with current
laws and regulations and in being able to adapt
to new laws and regulations.
Integrating Climate Change Risk
into Risk Appetite Statements
This year we have taken steps to refine our Group
and Institutional Risk Appetite Statements and
include climate risk in lending criteria documents
in the Australia Retail, Commercial and New
Zealand portfolios.
In Institutional, risk appetite is guided by the
requirements of our Social and Environmental
Risk Policy and oversight from ANZ’s Executive
ERBC Committee in customer selection and
lending decisions that align with ANZ’s purpose
and Climate Change Commitment.
ANZ’s Climate Change Commitment informs
risk appetite for certain priority carbon sensitive
sectors, which are reflected in sector-level
lending criteria documents, including for
resources, energy and large-scale commercial
real estate sectors in Institutional. New
technologies and markets required to support
the transition to net zero emissions may result
in a change to our risk appetite across the
Group, which we will continue to review and
refine as appropriate.
We continue to improve our management of climate change risks through Risk
workstreams focused on regulatory monitoring, policy governance, risk appetite,
data and analytics. The table below summarises some of the key focus areas in 2022:
ANZ 2022 Climate-related Financial Disclosures
24

Working with existing and new customers
in high emitting sectors
Our approach to managing our financed
emissions is to focus on priority high emitting
sectors. We expect our existing business
customers in higher-emitting sectors such
as energy, building products and transport
to integrate climate change risk into their
company strategies.
Specifically, for the energy sector:
•We expect new customers or projects to
disclose Paris-aligned business plans. This
includes the extent to which their company
strategy, emissions reduction targets and
planned capital expenditure are aligned
with the Paris goals.
•For existing customers or projects, by 2025
we expect our energy customers to:
–Establish specific, time bound, public
transition plans and diversification strategies.
–Report transparently on climate risks and
opportunities outlining how their business
will be resilient in a range of climate
scenarios, including scenarios aligned
with the Paris goals preferably using the
Task Force on Climate-related Financial
Disclosures (TCFD) framework.
–Participate in industry initiatives that
will contribute to reducing emissions,
for example, in the oil and gas sector,
capturing and storing methane in line
with the Methane Guiding Principles.
1

–Measure and disclose the Scope 3 emissions
from use of their products and any progress
in reducing those emissions.
–Measure and disclose their progress in
reducing emissions in their value chains –
for example, by reducing emissions from
shipping and distribution.
Integrating Climate Change Risk
into Policy and Process
Policy
Our Social and Environmental Risk Policy aims
to ensure globally consistent management and
mitigation of social and environmental risks.
The Policy has accompanying ‘sensitive sector’
requirements governing our Responsible
Business Lending, including our approach
with key sectors such as: Energy (including
our approach to financing coal), Extractive
Industries, Forestry and Forests, Hydroelectric
Power, Water and Military Equipment which are
publicly available at anz.com.au/about-us/esg.
The Social and Environmental Risk Policy and
sensitive sector requirements are key to informing
which customers and sectors we bank. Our largest
exposure to carbon sensitive sectors is to our
business customers in Institutional and Corporate,
which is where we can have the greatest impact in
supporting the transition to a low carbon economy.
Process
The Social and Environmental Risk Policy
is supported by the application of tools
and processes:
•Social and Environmental Screening Tool:
facilitates qualitative risk assessment of
potential reputational, social and environmental
issues (including climate), considers stakeholder
concerns and assesses the adequacy
of management mitigation strategies
for institutional customers.
•Reputation Risk Radar: monitors reports
of environmental, social and governance
incidents and allegations against existing
and prospective ANZ customers. Reports
are assessed for materiality based on the
number and severity of allegation/incident
and are referred to our risk management
forums for review.
•Climate Change Risk Assessment: facilitates
Institutional bankers to identify and evaluate
climate risks, including physical and transition,
for all Project Finance credit assessments.
•Energy Sector Screening Process (including
Oil and Gas): facilitates identification of
Institutional transactions to be referred to senior
subject matter experts to review alignment with
ANZ’s Climate Change Commitment. Where
required, this includes escalation to Executive
level for approval. See page 7 for further detail.
•Review and assessment of 100 of our largest
emitting business customers: facilitates
engagement with 100 of our largest emitting
business customers to encourage them to,
by end 2024:
–strengthen their low carbon transition
plans so that more customers achieve a
‘well developed’or ‘advanced’ rating; and
–enhance their efforts to protect biodiversity.
•Equator Principles: a risk management
framework for determining, assessing and
managing social and environmental risks in
major projects such as mines, windfarms
and pipelines.
We may decline lending to projects and
customers – new or existing – that do not
meet our expectations.
Data and Analytics
ANZ is developing capability to quantitatively
analyse climate risk, including scenario analysis
and stress testing using science-aligned climate
scenarios. This includes participating in regulatory
scenario analysis assessments, analysing the
impact of certain climate risks to specific portfolios
within the bank and engaging with industry
bodies and consultants to better understand
data that could be used to assess physical
and transition risks across our entire portfolio.
While the quality and availability of climate-related
data remains a challenge, ANZ is developing
a data strategy to identify and source reliable
data that will better inform our science-based
climate scenario development, stress testing
and modelling. The outcome of this assessment
will help us to quantify and manage climate-
related risks and inform decision making, strategy
and risk appetite.
1. https://www.ipieca.org/our-work/climate/emissions-management/ipieca-and-the-methane-guiding-principles/
ANZ 2022 Climate-related Financial Disclosures
25

Earlier this year we participated
in APRA’s Climate Vulnerability
Assessment (CVA), which assessed
the potential impact of physical
and transition risks to parts of our
Australian mortgages and business
lending portfolios.
We have completed and submitted phase 1 of RBNZ’s climate sensitivity analysis,
encompassing inland flooding risk (Auckland) and various sea level rise and storm
tide scenarios (nationwide) for our New Zealand residential mortgage book. The
results of this analysis were released by RBNZ as a combined industry disclosure,
in its November 2022 Financial Stability Report that is publicly available.
The three key objectives of the CVA were to:
•assess potential financial exposure
to climate risk;
•understand how banks may adjust
business models and implement
management actions in response
to different scenarios; and
•foster improvement in climate risk
management capabilities.
APRA’s CVA comprised two stress tests, a
counterparty assessment and data quality
assessment. APRA intends to disclose the
outcomes of the CVA in late calendar year 2022.
APRA’s Climate Vulnerability Assessment (CVA)
Reserve Bank of New Zealand’s (RBNZ’s) Climate Sensitivity Analysis
•Prepare a set of climate risk standards, based
on regulatory obligations to be applied across
all jurisdictions where ANZ operates
•Extend our Climate Change Risk Assessment
methodology beyond our Project Finance
business, starting with Institutional customers
in higher emitting sectors such as resources
and energy
•Develop a data strategy to inform our approach
to sourcing and integrating climate data into
sectoral pathways, scenario analysis, stress
testing and analytics. This will include learning
from the New Zealand climate risk program
•Enhance risk assessment capability for
our bankers through extending our
Climate Change Risk Assessment
•Extend analysis of physical climate risks
of fire and flood to segments of Australian
retail customers
•Conduct scenario analysis for key
New Zealand sectors
•Conduct analysis of drought vulnerability
for our Agricultural portfolio (Australia and
New Zealand) and the impacts of a change
in carbon price (New Zealand)
NEXT STEPS AND FUTURE PRIORITIES
ANZ 2022 Climate-related Financial Disclosures
26

Metrics
and targets
We are committed to transition
all operational and financed
carbon emissions from our
portfolio to net zero by 2050.
TargetsMetricPerformance
Exposure as at
Sept 30 2022
Target
reduction
1
2030Year
Baseline year
performance2022
% change
from baseline
% change
from pathwayEAD ($bn)% group EAD
Power
generation
50%119IntensitykgCO2-e/
MWh
2020237314+32%+47% 9.700.84%
Oil and Gas
26%11.1AbsoluteMt CO2-e202015.015.2+1.5%+7% 9.560.83%
Aluminium
30%5.79IntensitytCO2-e/t
aluminium
20218.307.64-8.0%-4.8% 0.690.06%
Cement
20%0.49IntensitytCO2-e/t
cement
2
20210.610.58-4.7%-2.5% 0.340.03%
Steel
28%1.36IntensitytCO2-e/t steel20211.901.95+2.6%+5.9% 0.970.08%
Large-scale
commercial
real estate
60%Shopping
centres:
35.90
Office
Buildings:
32.09
IntensitykgCO2-e/NLA2019Shopping
centres:
89.75
Office
Buildings:
80.21
Shopping
centres:
65.71
Office
Buildings:
49.56
Shopping
centres:
-27%
Office
Buildings:
-38%
Shopping
centres:
-12%
Office
Buildings:
-26%
Not Assessed
3
ANZ’s Climate targets
Portfolio financed emissions pathways and targets
1. See sectoral pathways (pages 35 to 47) for further information. 2. In line with the 2022 SBTi Cement Guidance when we refer to our intensity target in tCO2-e/t cement, we have set an intensity target per tonne of
‘cementitious product’ rather than per tonne of ‘cement’, per the Cement CO2 and Energy Protocol. For further details refer to the cement section within this report.
3. Large-scale Commercial real estate data has not
been apportioned in line with ANZ lending, this will be assessed in 2023.
>10% above the pathway <10% above pathway Below pathway
ANZ 2022 Climate-related Financial Disclosures
27

Metric categoryMetricTargetStatusFurther information
Capital deployment
toward climate-related
opportunities:
AUD funded and/or facilitatedFund 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
Page 11
Risk ManagementNumber of customers with ‘well
developed’ or ‘advanced’ ratings,
within group of our 100 largest
emitting business customers
Engage with 100 of our largest emitting business customers to encourage them to, by end 2024:
•strengthen their low carbon transition plans so that more customers achieve a ‘well developed’
or ‘advanced’ rating; and
•enhance their efforts to protect biodiversity.
Pages 14–16
Reduce the direct
impact of our business
activities on the
environment by
1
:
•GHG emissions Scope 1&2:
tonnes CO2 equivalent
•Renewable electricity:
MWh consumed
•Water consumption: Kilolitres
•Waste to Landfill: Tonnes
•Paper use: Tonnes
The COVID-19 pandemic has unquestionably changed the way we do business, making it necessary
to refine our 2025 and 2030 environmental sustainability footprint targets to align with more flexible
working arrangements for employees. Below outlines our performance against our Environmental
footprint targets until 30 June 2022.
Refer to our
2022 ESG Supplement
for further details
available at
anz.com/annualreport
•Reducing Scope 1 and 2 emissions by 24% by 2025 and by 35% by 2030
(against a 2015 baseline);
51% reduction
•Increasing renewable energy use to 100% by 2025;
2
39% reduction
•Reducing water consumption by 25% by 2025 (against 2017 baseline); 61% reduction
•Reducing waste to landfill by 30% by 2025 (against 2017 baseline); and75% reduction
•Reducing paper consumption (both office and customer paper use) by 60% by 2025
(against 2015 baseline).
69% reduction
Other quantitative and qualitative targets – 2022 performance summary
1. Environmental footprint reporting year is 1 July to 30 June, in line with the Australian regulatory reporting year. 2. Self-generated renewable electricity, direct procurement from offsite grid connected
generators e.g. Power Purchase Agreement (PPA) and default delivered renewable electricity from the grid, supported by credible attributes in accordance with RE100 technical guidelines. Set in 2019, no
change from 2021 target.
Refined
target set
Partially achieved
or in progress
ANZ 2022 Climate-related Financial Disclosures
28

Metric categoryMetricTargetStatusFurther information
Risk managementCompletion of risk
management initiatives
Develop an enhanced climate risk management framework that strengthens our governance
and is responsive to climate change, by end 2022:
We have continued to improve our management of climate risks within our risk management
framework through workstreams focused on regulatory monitoring, policy and processes,
risk appetite, data and analytics through:
•Reviewing and assessing current and emerging regulatory requirements across the jurisdictions
in which we operate;
•Refining our Risk Appetite Statements for Institutional and including climate risk in lending
criteria documents in the Australia Retail, Commercial and New Zealand portfolios; and
•Participating in the Australia Prudential Regulation Authority (APRA) Climate Vulnerability
Assessment, which assessed the potential impact of physical and transition risks to parts
of our Australian mortgages and business lending portfolios.
While progress has been made against this target, climate risk management is an emerging
component of risk. Throughout 2022 we have identified further steps that we can undertake
to improve the management of climate risk. See page 30 for our refined target.
Refer Risk section
for further detail on
pages 24–25
Other quantitative and qualitative targets – 2022 performance summary – Continued
Refined
target set
Partially achieved
or in progress
ANZ 2022 Climate-related Financial Disclosures
29

Metric categoryMetricTargetFurther information
Risk ManagementCompletion of risk
management initiatives
Improve the management of climate change risks through the following activities by end 2023:
•preparing a set of risk standards based on regulatory obligations, to be applied across all countries and
territories where ANZ operates;
•extending our Climate Change Risk Assessment methodology beyond our Project Finance business starting
with Institutional customers in higher emitting sectors such as resources and energy; and
•developing a data strategy to inform our approach to sourcing and integrating climate data into sectoral
transition pathways, scenario analysis, stress testing and analytics. This will include learning from the New Zealand
climate risk program.
Refer to page 29 for
performance against our
2022 target and the Risk
section for further detail
on page 21
Reduce the direct
impact of our business
activities on the
environment by
1
:
•GHG emissions Scope 1&2:
tonnes CO2 equivalent
•Renewable electricity:
MWh consumed
•Water consumption: Kilolitres
•Waste to Landfill: Tonnes
•Paper use: Tonnes
The below refined targets commencing 1 July 2022 increase our environmental sustainability footprint ambitions
and performance in line with our purpose, while balancing the expected ‘normalisation’ of consumption associated
with staff returning to workplaces.
Refer to our
2022 ESG Supplement
for further details
available at
anz.com/annualreport
•Reducing Scope 1 and 2 emissions 85% by 2025 and 90% by 2030 (against 2015 baseline);
•Increasing renewable energy use to 100% by 2025;
2
•Reducing water consumption by 40% by 2025 (against 2017 baseline);
•Reducing waste to landfill by 40% by 2025 (against 2017 baseline); and
•Reducing paper consumption (both office and customer paper use) by 70% by 2025
(against 2015 baseline).
Refined targets for 2023
The following targets will be introduced to extend our work underway in key focus areas.
1. Environmental footprint reporting year is 1 July to 30 June, in line with the Australian regulatory reporting year. 2. Self-generated renewable electricity, direct procurement from offsite grid
connected generators e.g. Power Purchase Agreement (PPA) and default delivered renewable electricity from the grid, supported by credible attributes in accordance with RE100 technical guidelines.
Set in 2019, no change from 2021 target.
ANZ 2022 Climate-related Financial Disclosures
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TCFD-related metrics and
industry exposures
We continue to disclose our credit metrics
and exposure to various sub-industries in
four key sectors identified by the TCFD to
be most exposed to climate-related risks:
energy;
transportation;
materials and building; and
agriculture, food and forest products.
This is in response to the TCFD recommendations
that "banks should describe significant
concentrations of credit exposure to carbon
related assets" and provide a breakdown of
this data by industry, geography, credit quality
and average tenor.
We want to support an orderly transition of
these carbon exposed sectors that recognises
and responds to the social, economic and
environmental impacts of achieving net zero.
Our success in supporting and accelerating a
net zero transition by 2050 will be driven by
our ability to help our customers reduce their
emissions. We support the evolution of sectors
and the development of new industries and
innovative business models that underpin the
transition. Our approach is to manage financed
emissions in climate exposed portfolios. See
pages 35–47 for more detail on this.
Our overall exposure to these four sectors is
around 18% of the Group exposure at default
(EAD), up from ~16% in 2021 (~19% in 2020).
The remaining Group EAD is financing sectors
outside the four identified by the TCFD.
EAD breakdown for carbon exposed sectors –
2022 ($bn/%)

9%
Materials
and building

4%
Agriculture,
food and forest
products

3%
Energy

1%
Transportation
83%
Other sector EAD
17%
Carbon-exposed
sector EAD
Our increase in exposure this year has been
driven by the Materials and Building sector,
which is dominated by lending to real estate
management and property development. We
also saw an increase in lending to the energy
sector this year, driven in large part by record
high wholesale electricity prices, causing some
companies to face unusually high margin calls
on their existing hedge contracts – requiring
them to post cash collateral to margin accounts
to cover these positions – including some
existing ANZ customers. You can read more
about this on page 36.
EAD trends for carbon exposed sectors ($bn)
$100
$120
$80
$40
$20
$60
Material &
building
Agriculture,
food and forest
products
EnergyTransportation
–
2020
20222021
In terms of credit metrics, we have observed an
increase in the percentage of exposures rated
as investment grade with 58% of our exposures
across the four sectors achieving this benchmark
in 2022 compared to 52% in 2021. Our non-
performing loans were re-baselined to align
with APRA’s revised Prudential Standard APS 220
Credit Risk Management (APS 220). This revision
in reporting methodology has generally resulted
in slightly higher overall percentages of non-
performing loans reported in financial years 2020,
2021 and 2022, however the overall trend of low
and decreasing rates of non-performing loans
remains evident across the four sectors. The
consistently low levels of non-performing loans
across the four sectors identified by the TCFD
indicate that transition and physical risks of
climate change have not yet manifested as
material credit risks for ANZ.
Industry Groups and
Credit Quality
1
Exposure at
Default ($bn)
Non performing Loans
(% of sector EAD)
2
Investment Grade
(% of Sector EAD)
Sector202220212020202220212020202220212020
Agriculture, Food and
Forest Products
$42.9$41.7$41.21.1%1.4%2.5%43.8%36.5%32.6%
Energy$31.7$27.9$31.20.1%0.1%0.1%89.3%85.1%80.1%
Transportation$16.1$15.5$16.90.4%1.7%2.1%66.7%67.2%62.2%
Materials and Building$104.7$92.3$96.20.4%0.5%0.6%52.5%47.2%45.9%
Total$195.4$177.4$185.60.5%0.7%1.1%57.8%52.4%50.2%
1. Values may not add to totals due to rounding. 2. Non-performing loans have been restated to align with APS 220.
ANZ 2022 Climate-related Financial Disclosures
31

This year, we continue to disclose a more
detailed industry and sub-industry breakdown
of our exposures to the four sectors identified
by the TCFD.
In the energy sector, along with our increased
exposure to the electricity sector (see page 36)
we also saw an uptick in exposure to oil and gas
extraction driven by a change in client exposure
in the portfolio, and compounded by changes in
foreign exchange rates and energy prices.
Since 2015, we have reduced our direct lending
to thermal coal mining by around 83% – it is now
less than 0.02% of our Group EAD. At the same
time, our direct lending to renewables projects
has gone up by around 63%.
As part of our energy policy we are:
•not directly financing any new coal-fired
power plants, including expansions. Existing
direct lending will run off by 2030.
•engaging with existing customers that have
more than 50% thermal coal exposure
1
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.
2

Subsector trends in EAD – Energy ($bn)
$18
$20
$8
$10
$6
$4
$2
$12
$14
$16
CoalElectric utilitiesOil & Gas
–
2020
20222021
Climate exposed sub-industry exposure ($bn)
202020212022
Agriculture$41.20 $41.70 $42.90
Agriculture$30.20 $30.60 $30.20
Beverages$3.40 $3.30 $3.50
Paper and Forest Products$0.90 $0.80 $0.80
Packaged Foods and Meats$6.70 $7.00 $8.40
Energy$31.20 $27.90 $31.70
Coal
3
$1.20 $1.10 $0.70
Electric Utilities
4
$12.40 $12.30 $14.90
Oil & Gas
5
$17.60 $14.60 $16.10
Transportation$16.90 $15.50 $16.10
Air Freight$3.70 $3.00 $3.00
Automobiles$5.20 $4.50 $5.40
Maritime Transportation$1.80 $1.50 $1.60
Passenger Air$0.00 $0.20 $0.10
Rail Transportation$1.90 $1.80 $1.70
Trucking Services$4.30 $4.50 $4.30
Materials and Buildings$96.20 $92.30 $104.70
Capital Goods$18.20 $17.30 $21.40
Chemicals$2.80 $2.10 $2.80
Construction Materials$1.70 $1.30 $1.30
Metals and Mining$8.80 $7.20 $8.60
Real Estate Management & Development$64.70 $64.40 $70.60
Grand Total$185.60 $177.40 $195.40
1. 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.
2. 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 3-day settlement limits will be excluded from this cap.
3. Coal mining includes exposures
to metallurgical (coking) coal used for steel making ($0.5b) and thermal coal used for energy generation ($0.2b).
4. Electric utilities
includes exposures to electricity generators that own or operate a mix of thermal and renewable generation assets as well as
transmission and distribution infrastructure.
5. Exposure to oil and gas includes all of the oil and gas value chain such as exploration,
extraction, transport, refining and retail. Page 73 of ANZ's Full Year Results Investor Discussion Pack includes exposure to "upstream"
exploration and extraction only as the focus is on resources (mining) exposure in line with ANZSIC industry groupings.
ANZ 2022 Climate-related Financial Disclosures
32

Performance against our targets
Financed Portfolio emissions
As we transition to a low carbon economy,
essential goods and services will continue to
be required in the global economy. In some
sectors, replacing high-emitting technologies
with lower-emitting alternatives is required,
so that the carbon intensity of these sectors
is reduced. The drivers, and timing of this
transition are referred to as a “pathway.”
As part of our commitment to transition to
net zero emissions by 2050, we were the first
Australian bank to join the Net-Zero Banking
Alliance (NZBA) in 2021. As part of that
commitment, we developed and disclosed two
new pathways and associated targets for our
lending to the power generation and large-scale
commercial real estate sectors in Australia
(shopping centres and large office buildings), to
illustrate how we plan to support these sectors
towards achieving the Paris Goals. We chose to
start with these two sectors as electricity
generation is responsible for around one third
of Australia’s national emissions, with the
non-residential buildings sector among the
largest end users of electricity.
Supporting our customers’ efforts to reduce
carbon emissions from their electricity supply
and reduce the energy needs of large-scale
commercial real estate will be a key focus for
ANZ over the coming decades. While they cover
a relatively small part of our overall loan book
at this stage, they are ‘material’ sectors to help
reduce emissions in the economy.
The targets we set in 2021 are aimed at providing
greater transparency about how our financing
is aligned with climate scenarios.
This year, we are disclosing our progress against
these two targets, as well as new pathways and
associated targets for the oil and gas sector,
and the materials and building products sector,
with specific pathways and targets disclosed
for aluminium, cement and steel.
We will progressively expand our coverage
of key sectors up to 2024, in line with our NZBA
commitment and the evolution of globally
recognised standards and methodologies. We
expect that by 2024 we will have established
pathways and targets for sectors representing
at least 75% of our financed emissions.
Key elements of our approach
to sectoral pathways
In building our approach to our portfolio
financed emissions, and their associated
targets and pathways, we considered the
following important key elements:
Science-based targets
Decision useful metrics
Best available data
Science-based targets
In setting our sectoral pathways and targets, we
have referenced the International Energy Agency’s
Net Zero Emissions by 2050 World Scenario (NZE
2050) for power generation, oil and gas, steel and
cement, along with other relevant sector-specific,
science-based scenarios in other sectors (details
provided in the discussion of individual sectoral
targets and pathways below). We are guided by the
Global GHG Accounting and Reporting Standard for
the Financial Industry published by the Partnership
for Carbon Accounting Financials (PCAF) to assess
data quality, and for calculation methods. The use
of science-based scenarios and methodologies
ensures our targets are, at a minimum, aligned
with the goals of the Paris Agreement.
Decision useful metrics
ANZ’s role in supporting the transition to
a net zero economy is through our lending and
financing decisions and through facilitating
our clients’ transition.
For each sector, we have defined a relevant
metric and set specific targets and pathways,
disclosed below. These targets and pathways
will help provide guidance for our business
teams who make decisions on how we finance
customers in these sectors. We expect these
pathways will provide an important input to our
decision making as we seek to meet our interim
2030 targets over the coming years.
For some sectors, we have disclosed additional,
or complementary metrics, which have also
been useful to inform our decision making.
Best available data
Developing and reporting metrics is a new and
evolving practice, which depends on good quality
data. We aim to source the highest quality data
available, recognising that data limitations exist
even in sectors with well-established reporting
protocols. To maximise the quality of the data
we used to calculate our financed emissions,
we are guided by the Global GHG Accounting
and Reporting Standard for the Financial Industry
published by the Partnership for Carbon
Accounting Financials (PCAF), and have provided
data quality scores for absolute emissions of
steel, aluminium, cement, and oil and gas. We
continue to develop our methodologies to
improve data quality where required, as better
quality data becomes available.
ANZ 2022 Climate-related Financial Disclosures
33

How we support change in key sectors
We undertake the following key activities to meet our transition plans and deliver financed emissions
reductions in line with our sectoral pathways and targets:
ActionsPower
Generation
Large-scale
Commercial
Real Estate
Oil & Gas
(upstream)
AluminiumSteelCement
Engagement with our largest emitting business customers in these sectors to support and influence
them to encourage them to strengthen their low carbon transition plans and enhance their efforts to
protect biodiversity
Reallocation within sectors to tilt a portfolio towards less emissions intensive companies within
each sector
Policy measures apply to some sectors, such as to no longer onboarding any new business customers
1

with material
2
thermal coal exposures
*
Reducing lending to high-emitting companies that lack credible transition plans
Climate solution financing to activities such as renewable energy or green infrastructure (companies
and projects which reduce energy demand, such as improvements to building efficiency)
*We will no longer onboard new energy customers unless they have a Paris-aligned transition plan, existing customer are also expected to have a Paris-aligned transition plan in place by 2025.
The aim of our approach is to support our customers to transition to net zero emissions. This means providing transition finance to the companies that require this capital to decarbonise their
business models and thereby reduce real-world emissions.
For further detail on our approach to developing
metrics, pathways and targets for our priority
sectors, please refer to ANZ’s Financed Emissions
Methodology available here.
1. Entities or assets acquired from existing customers are not classified as new-to-bank customers. Applies to lending products only, ie excludes transaction banking, credit cards, performance guarantees,
meaning that only lending products that will help customers ‘fund’ their activities in a material way would be excluded.
2. More than 10% revenue, installed capacity or generation from thermal coal.
ANZ 2022 Climate-related Financial Disclosures
34

Portfolio emissions Pathways Performance Dashboard
GHG Intensity (kgCO-e/MWh)
Power generation
500
400
450
300
350
200
250
100
50
150
–
IEA Net Zero Emissions
by 2050 Pathway
2030 Target
Pathway (-50%)
Actual
Performance
Global Average
Emissions Intensity
ANZ vs. 2030 target pathway
+ 47%
2020
20252035
20302040
ANZ vs. pathway
– 11.8%
Commercial Real Estate – Shopping Centres
GHG Intensity (kgCO-e/m
²
NLA)
90.0
80.0
60.0
70.0
40.0
50.0
20.0
10.0
30.0
–
IEA Beyond 2°C Scenario
(B2DS) Alignment Pathway
2030 Target
(-60%)
Actual
Performance
100.0
2019202520302035204020452050
GHG Intensity (kgCO-e/m
²
NLA)
Commercial Real Estate – O ice Buildings
90.0
80.0
60.0
70.0
40.0
50.0
20.0
10.0
30.0
–
IEA Beyond 2°C Scenario
(B2DS) Alignment Pathway
2030 Target
(-60%)
Actual
Performance
ANZ vs. pathway
– 25.6%
2019202520302035204020452050
Absolute Emissions (Mt CO-e)
ANZ vs. 2030 target pathway
+7%
Oil and gas
18.0
16.0
12.0
14.0
8.0
10.0
4.0
2.0
6.0
–
IEA Net Zero Emissions
2050 Pathway
2030 Target
(-26%)
Actual
Performance
2020205020252035203020452040
IEA Net Zero Emissions
2050 Pathway
2030 Target
Pathway (-20%)
Actual
Performance
GHG Intensity (tCO-e/t

Cement)
ANZ vs. pathway
– 2.5%
Cement
0.7
0.6
0.4
0.5
0.2
0.1
0.3
–
2021205020252035203020452040
Global Average IEA
tracking report 22
GHG Intensity (tCO-e/t aluminium)
ANZ vs. pathway
– 4.8%
Aluminium
12.0
10.0
6.0
8.0
4.0
2.0
–
International Aluminium
Institute 1.5°C Pathway
2030 Target
(-30%)
Actual
Performance
Global Average
International Aluminium
Institute 1.5°C Pathway
2021205020252035203020452040
2030 Target
(-28%)
Actual
Performance
IEA Net Zero Emissions
2050 Pathway
GHG Intensity (tCO-e/t steel)
ANZ vs. pathway
+5.9%
Steel
2.5
2.0
1.5
1.0
0.5
–
2020205020252035203020452040
World Steel 2020 average
emissions intensity
>10% above the pathway <10% above pathway Below pathway
ANZ 2022 Climate-related Financial Disclosures
35

Power generation
GHG Intensity (kgCO-e/MWh)
ANZ vs. 2030 target pathway
+ 47%
Graph 1: Power generation
500
400
450
300
350
200
250
100
50
150
202020212022202320242025202620272028202920312032203320342035203620372038203920302040
–
IEA Net Zero Emissions
by 2050 Pathway
2030 Target
Pathway (-50%)
Actual
Performance
Global Average
Emissions Intensity
At the end of 2021, ANZ set a 2030 target to
reduce the emissions intensity of our power
generation portfolio by 50% from a 2020 baseline.
The metric we use to track the carbon intensity of
our portfolio reflects the debt weighted carbon
intensity of electricity generation (i.e. carbon
emissions per unit of generation) for Institutional
customers whose main business activity is the
generation of power for transmission.
An emissions intensity reduction target recognises
that 1.5°C aligned scenarios require substantially
more electricity to be generated in 2050 than
today. Almost all of that growth needs to come
from renewables with the IEA’s NZE 2050 scenario
showing renewables increasing from around 29%
of total global generation in 2020 to 88% of
generation by 2050. Renewable electricity
generation is forecast to grow eightfold between
2020 and 2050, while generation from unabated
fossil fuels – responsible for around 61% of global
electricity generation in 2020 – shrinks to
negligible levels.
Our emissions intensity metric and target for power
generation will help us track the extent to which
we are supporting the necessary transition.
While significant transformation of Australia’s
electricity industry still lies ahead, many of our
customers have already taken major steps to
reduce their emissions. Over the decade 2011–
2021, Australia’s annual electricity sector emissions
have reduced by around 40 million tonnes.
1
Performance against target
The emissions intensity of our Power
Generation portfolio increased this year to
314 kgCO2-e per MWh. This is 32% higher
than our 2020 baseline of 237 kgCO2-e per
MWh
3
and 47% above our target pathway.
This was due to short-term financing of
existing customers to help them manage
through unprecedented volatility in
Australia’s National Electricity Market.
This does not translate to an increase in
‘real world’ emissions, as they are existing
customers and assets. This uneven trajectory
towards our 2030 target may continue due
to ongoing electricity price volatility.
1. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2022. 2. Asset Resolution.
3. This is a restatement of the 2020 baseline we reported in 2021 of 258 kgCO2-e per MWh.
2030 Target
•50% reduction in emissions intensity from 2020 baseline
Activities Included
•Companies that own or operate one or more electricity generation
facilities that dispatch electricity into transmission grids
Company
Emissions Included
•Scope 1 (from electricity generation activities only)
Metric
•Emissions intensity of electricity generation (kgCO2-e/MWh)
Financing
Activities Included
•Exposure at Default. This reflects total committed loans (drawn
plus undrawn amounts) and all trade and market based products
Attribution
Approach
•Portfolio-weighted approach (measures ANZ’s financing
to customers relative to ANZ’s total financing to the power
generation sector)
Benchmarking
Scenario
•International Energy Agency (IEA) Net Zero Emissions by 2050 World
Scenario (NZE 2050)
Key External Data
Sources
•Customer disclosures
•Australian Clean Energy Regulator
•International Energy Agency
•Asset Resolution
2
Table 1 – Key design choices in calculating 2030 power generation target
We remain committed to our 2030 target
pathway and remain well below the IEA NZE
by 2050 Scenario pathway.
It’s also important to note that we are restating
our 2020 emissions baseline to 237 kgCO2-e per
MWh – down from 258 kgCO2-e per MWh. We
have retained our 50% reduction target, however,
meaning that our 2030 target of 119 kgCO2-e per
MWh is also lower than what we reported last
year. The restatement of our baseline and target is
mainly due to improvements in our ability to link
our financing to electricity generation assets that
our integrated energy customers are increasingly
moving towards.
ANZ 2022 Climate-related Financial Disclosures
36

Actions to achieve 2030 target
As our emissions intensity target is based on
a debt-weighted metric, we will need to prioritise
financing projects and customers generating
electricity at an average emissions intensity
below our 2020 baseline portfolio average
of 237kg CO2-e/MWh.
Since 2018, ANZ has been engaging with 100
of our largest emitting business customers,
including 12 that own or operate power
generation assets. Our engagement with these
customers has been focused on encouraging
them to strengthen their low carbon transition
plans. You can read more about our engagement
approach on pages 14–16.
Supporting our customers’ transition plans may
mean that the emissions intensity of our portfolio
goes up for a period as we might increase
exposure to these customers. However, as our
customers gradually bring online new clean
generation capacity and retire their existing fossil
fuel assets, we expect to see the emissions
intensity of our portfolio decline.
1. A full description of the PACTA for Banks methodology that is applied to the power generation sector is available here.
Power Generation Financing Mix
100%
80%
40%
20%
60%
ANZ
2021
ANZ
2022
World
2022
NZE
2030
NZE
2040
NZE
2050
–
Coal
Nuclear
OilNatural Gas
HydroRenewables
To support the reallocation of our portfolio
towards lower emitting projects and
customers, ANZ applies specific policy
measures that are differentiated between
existing and new customers, as detailed in
our energy policy.
ANZ continues to grow our direct lending
to renewable energy projects as part of our
drive to fund and facilitate at least $50 billion
by 2025 to support our customers to achieve
improved environmental outcomes. You can
read more on page 11.
ANZ continues to report a complementary
power generation metric that is aimed at
providing enhanced transparency of how
our finance is supporting the transition of
the power generation sector. The metric
shows the debt-weighted generation stack
of our customers that is based on the PACTA
for Banks methodology developed by the
2dii
1
in collaboration with global banks.
Under the methodology, the installed
capacity of generation assets owned by
our customers is allocated to ANZ based
on the proportion of their loan to our
overall exposures to the electricity
generation sector. For each customer,
the installed capacity of generation assets
allocated to ANZ are aggregated and
assigned to one of six technology types:
•Coal
•Gas
•Oil
•Nuclear
•Hydro
•Renewables
During 2022, there has been a marked
shift in our support for companies
whose portfolios are dominated by
clean-generation assets. This was mostly
brought about by our on boarding of
two new customers that own significant
clean generation capacity across Europe
and the United States, resulting in a
significant reweighting of our portfolio
to clean generation assets.
Fossil fuels now comprise 25% of our debt-
weighted power generation stack – down from
55% in 2021. This closely resembles the 2030
global generation mix modelled by the IEA
under their NZE 2050 scenario where just 23%
of global generation capacity is attributable
to fossil fuels. Our commitment to support the
clean electrification of the world’s energy supply
is reflected in renewables increasing from 12%
to 32% of the total portfolio over the past year.
While we expect continuing volatility in this
metric in the future, given that it skews results
towards large generators, it does serve to
highlight that financial flows from ANZ to the
power generation sector are increasingly being
allocated to cleaner generation sources.
ANZ’s debt-weighted generation stack
ANZ 2022 Climate-related Financial Disclosures
37

Oil and gas
Absolute Emissions (Mt CO-e)
ANZ vs. 2030 target pathway
+7%
Graph 2: Oil and gas
18.0
16.0
12.0
14.0
8.0
10.0
4.0
2.0
6.0
–
IEA Net Zero Emissions
2050 Pathway
2030 Target
(-26%)
Actual
Performance
2020205020222024202620282032203420362038203020422044204620482040202120232025202720292033203520372039203120432045204720492041
Oil and Gas Metrics Summary
Metric20202022
Absolute financed emissions (Mt CO2-e)15.015.2
Physical Emissions Intensity (kgCO2-e/GJ produced)70.670.2
Economic Emissions Intensity (kgCO2-e/$ lent)1.381.59
Data Quality Score
1

•Scope 1 & 2
•Scope 3
•Not scored
•Not scored
•1.41
•3.00
The key design choices we used to calculate our absolute financed emissions reduction
target for our oil and gas financing activities are summarised in Table 1.2 below.
2030 Target
•26% reduction in absolute financed emissions from 2020 baseline
Activities Included
•Exploration and production (includes dedicated upstream
companies, and LNG producers)
•Integrated oil and gas producers
Company
Emissions Included
•Scopes 1, 2 and 3 (Category 11, product use) for all companies
included in scope
Metric
•Absolute emissions (in million tonnes) (Mt)
Financing
Activities Included
•Exposure at Default. This reflects total committed loans (drawn
plus undrawn amounts) and all trade and market based products
Attribution Approach
•ANZ financing to customers as a proportion of customer value.
Customer values are based on the following definitions:
–Private company: Book value of debt and equity
–Public company: Enterprise value including cash (EVIC)
Benchmarking
Scenario
•International Energy Agency (IEA) Net Zero Emissions
by 2050 World Scenario
Key External
Data Sources
•Customer disclosures
•Wood Mackenzie
•Rystad
•International Energy Agency
Table 2 – Key design choices in calculating 2030 oil and gas target
1. The data quality score was calculated in accordance with guidance made available by the Partnership for Carbon
Accounting Financials (PCAF) in The Global GHG Accounting and Reporting Standard for the Financial Industry (available here).
ANZ 2022 Climate-related Financial Disclosures
38

ANZ has set a 2030 target to reduce the absolute
financed emissions from our oil and gas portfolio
by 26% from a 2020 baseline. Our target covers
the Scope 1, 2 and 3 (product use) emissions of
our customers involved in oil and gas exploration
and production (upstream) as well as integrated
oil and gas producers that operate across the oil
and gas value chain.
Our reduction target recognises that there are
limited opportunities to fully reduce the carbon
intensity of fossil fuel product in all 1.5°C aligned
scenarios. As seen on graph 2, a 26% reduction by
2030 aligns with the International Energy Agency
(IEA) Net Zero Emissions by 2050 World Scenario.
We observe that many energy companies are
diversifying into cleaner energy sources such as
renewables, hydrogen and biofuels. We will capture
the benefits of this transition in emissions intensity
metrics we develop for other sectors such as power
generation, transport and other industrial sectors
which will consume this cleaner energy.
Scope 3 emissions from burning oil and gas
products typically account for 80–90% of emissions
for the sector. ANZ accounts for these emissions
using our customers’ equity-based production of oil
and gas made available for sale – to measure how
our lending is supporting the real-world reduction
in oil and gas emissions. It also helps minimise the
risk of double counting of emissions.
Disclosure of our progress against the target
ensures we remain accountable for supporting
customers committed to reducing their
operational emissions and acting on their
transition plans.
Our choice to include all financial products
1
in our
calculation of financed emissions from our oil and
gas customers is recognition that we support our
customers with a range of products and services.
We believe this is a more transparent disclosure
than reporting only on lending products. As
shown on the graph below, where financed
emissions due to lending is shown in blue, our
financed emissions from lending products
demonstrates a steady decline broadly matching
the decline in gross emissions across our customer
base. We believe our more transparent
methodology provides a fuller picture of our suite
of products, though this measure is materially
influenced by prevailing foreign exchange (FX)
rates. As such, fluctuations in annual results need
to be considered in this context as well as
progress over a longer period of time.
Mt CO-e
Estimated nanced emissions
16
8
10
6
4
2
12
14
20202022
–
Non-lending products
Lending products
Impact of the
inclusion of
non-lending
products
Performance against target
Scope 1, 2 and 3 emissions across our customer
base declined by almost 9% over the last two
years and our overall sectoral exposure in EAD
terms have also decreased. Higher commodity
prices and foreign exchange movements drove
increased exposure to oil & gas majors. The
increased exposure to these relatively higher
emitting entities led to a greater attribution of
their emissions to our finance, leading to a 1.5%
increase in our financed emissions.
Actions to achieve 2030 target
Achieving our 2030 target means over time
we re-weight our portfolio towards customers
with stronger emissions reduction targets and
diversification strategies. A variety of opportunities
exist for the oil and gas sector to reduce emissions
across the value chain.
In relation to their own operations, a priority for
oil and gas companies is to minimise methane
leaks through a focus on leak detection and repair.
Other important steps include avoidance of
non-emergency flaring and venting along with
significant electrification of upstream operations.
In relation to Scope 3 emissions, a reduction will
depend on the combined actions of businesses,
governments and consumers.
1. As reflected in our Exposure at Default reporting, which includes trade finance and guarantees, and markets products to hedge
interest rate, foreign exchange and commodity risks. The scope of products excludes any facilitated debt capital market issuances.
ANZ 2022 Climate-related Financial Disclosures
39

The key design choices we used in calculating our emissions intensity reduction target
for our aluminium production financing activities are summarised in Table 1.3 below.
Aluminium
1. The data quality score was calculated in accordance with guidance made available by the Partnership for Carbon
Accounting Financials (PCAF) in The Global GHG Accounting and Reporting Standard for the Financial Industry (available here).
2030 Target
•30% reduction in emissions intensity from 2021 baseline
Activities Included
•Companies that own or operate one or more alumina refineries
or aluminium smelters
Company
Emissions Included
•Scope 1 & 2 emissions
Metric
•Emissions intensity of aluminium production (tCO2-e/t aluminium)
Financing
Activities Included
•Based on Exposure at Default. This reflects total committed loans
(drawn plus undrawn amounts) and all trade finance and markets
products
Attribution
Approach
•Portfolio-weighted approach (measures ANZ’s financing to
customers relative to ANZ’s total financing to the aluminium sector)
Benchmarking
Scenario
•International Aluminium Institute (IAI) 1.5
O
C scenario
Key External Data
Sources
•Customer disclosures
•Wood Mackenzie
•Transition Pathways Initiative
•International Aluminium Institute (IAI)
Table 3 – Key design choices in calculating 2030 aluminium production target
GHG Intensity (tCO-e/t aluminium)
ANZ vs. pathway
– 4.8%
Graph 3: Aluminium
12.0
10.0
6.0
8.0
4.0
2.0
–
International Aluminium
Institute 1.5°C Pathway
2030 Target
(-30%)
Actual
Performance
Global Average
International Aluminium
Institute 1.5°C Pathway
205020222024202620282032203420362038203020422044204620482040202120232025202720292033203520372039203120432045204720492041
20212022
Emissions Intensity tCO2-e/t aluminium8.307.64
Absolute Emissions Mt CO2-e0.620.74
Portfolio-wide Intensity kgCO2-e/$ lent0.951.07
Data Quality Score
1
2.782.90
ANZ 2022 Climate-related Financial Disclosures
40

This year, ANZ has set a 2030 target to reduce
the financed emissions intensity from our global
aluminium portfolio by 30% from a 2021 baseline.
Our target covers the Scope 1 and 2 emissions
arising from customers that own or operate
alumina refineries or aluminium smelters.
Our choice of an emissions intensity target
recognises that aluminium will be a key material
used in technologies essential for the transition
to net zero emissions. Aluminium is strong, light
weight and recyclable, and accounts for ~2% of
total global emissions.
1
Industry scenarios aligned
with the Paris goals predict global demand for
primary aluminium is expected to increase by up
to 40% and secondary (recycled) production of
aluminium will more than triple through to 2050.
2

Primary aluminium production is highly electricity
intensive. Efforts to decarbonise the sector will be
heavily reliant on decarbonisation of the electricity
supply through switching to renewables.
Secondary production of aluminium (recycling),
has a significantly lower emissions intensity
than primary production, but is limited by scrap
availability. Limiting the use of aluminium in
final products through light weighting (design
upgrades to manufacture components with the
same performance standard using less material)
and efficiency in design are also key steps to
reduce emissions from the sector. Investment into
the commercialisation of promising but currently
expensive technologies such as carbon-free
anodes
3
, will be the key to eliminating the
harder to abate emissions of the sector.
We are committed to supporting the aluminium
industry’s move toward low emissions aluminium
production and our 2030 target of 5.79 tCO2-e/
tonne aluminium is in line with the decrease
modelled by the International Aluminium Institute
(IAI) in their 1.5
O
C scenario.
Performance against target
This is the first year ANZ has reported on the
emissions intensity of our aluminium financing
activities. Our 2021 portfolio baseline of 8.30
tCO2- e/tonne aluminium is below the 2021
global average of 10.29 tCO2-e/tonne aluminium.

Graph 3 shows that our aluminium producing
customers have made strong, early progress to
reduce the emissions intensity of production,
with the emissions intensity of our aluminium
production portfolio reducing by 8% from our
2021 baseline to 7.64 tCO2-e/tonne aluminium.
We expect this decline to continue in future, given
the decarbonisation trend underway in the global
electricity sector and the fact that several of our
customers have either set, (or are committed to
setting) targets or net zero commitments.
Our absolute financed emissions have increased
year-on-year, in line with increased lending to
the sector. However, as lending has increased to
customers with a relatively low emissions intensity
this has resulted in the reduction of our portfolio
emissions intensity.
Actions to achieve 2030 target
It is important to note we have a small number
of customers making up a material portion of
exposure to this sector. As our emissions intensity
target is based on a debt-weighted metric,
we will need to prioritise financing projects and
customers producing aluminium at an average
intensity below our 2021 baseline portfolio
average of 8.30 tCO2-e/tonne aluminium,
noting this 'average' will reduce over time.
We will continue to support customers that
produce aluminium above this average – in fact,
lending to support customers’ transition plans
may mean the emissions intensity of our portfolio
goes up for a period as we may increase exposure
to these customers. However, as our customers
gradually switch to renewable energy, retrofit or
bring online lower emissions production assets,
we expect to see the emissions intensity of our
portfolio decline towards our 2030 target.
We have begun, and will continue, to engage
with customers to understand their transition
plans, emissions reduction targets and how we
can assist in supporting these customers toward
lower emissions aluminium production.
1. Making Net-Zero Aluminium Possible – Aluminium Transition Strategy / September 2022. 2. International Aluminium Institute Aluminium Sector
Greenhouse Gas Pathways to 2050.
3. Elysis is a technology that replaces traditional carbon anodes (large carbon blocks which conduct electricity
during aluminium smelting, producing significant greenhouse. gas emissions) with carbon free anodes that produce only oxygen.
ANZ 2022 Climate-related Financial Disclosures
41

Cement
The key design choices we used in calculating our emissions intensity reduction target
for our cement production financing activities are summarised in Table 1.4 below.
*Refer to the 'Cementitious product' call out box on next page.
2030 Target
•20% reduction in emissions intensity from 2021 baseline
Activities Included
•Companies that own or operate one or more cement plants
Company Emissions
Included
•Scope 1 & 2 emissions
Metric
•Emissions intensity of production of cement (tCO2-e/t cement)
Financing
Activities Included
•Based on Exposure at Default. This reflects total committed loans
(drawn plus undrawn amounts) and all trade finance and markets
products
Attribution
Approach
•Portfolio-weighted approach (measures ANZ’s financing to
customers relative to ANZ’s total financing to the sector)
Benchmarking
Scenario
•International Energy Agency (IEA) Net Zero Emissions
by 2050 Scenario
Key External Data
Sources
•Customer disclosures
•Asset Resolution
•International Energy Agency
Table 4 – Key design choices in calculating 2030 cement production target
20212022
Emissions Intensity tCO2-e/t cement*0.610.58
Absolute Emissions Mt CO2-e2.241.64
Portfolio-wide Intensity kgCO2-e/$ lent5.374.85
Data Quality Score
1
1.871.76
Actual
Performance
GHG Intensity (tCO-e/t

Cement)
ANZ vs. pathway
– 2.5%
Graph 4: Cement
0.7
0.6
0.4
0.5
0.2
0.1
0.3
–
2030 Target
Pathway (-20%)
Global Average IEA
tracking report 22
IEA Net Zero Emissions
2050 Pathway
205020222024202620282032203420362038203020422044204620482040202120232025202720292033203520372039203120432045204720492041
1. The data quality score was calculated in accordance with guidance made available by the Partnership for Carbon
Accounting Financials (PCAF) in The Global GHG Accounting and Reporting Standard for the Financial Industry (available here).
ANZ 2022 Climate-related Financial Disclosures
42

ANZ has set a 2030 target to reduce the financed
emissions intensity from our global cement
portfolio by 20% off a 2021 baseline. Our target
covers the gross Scope 1 and 2 emissions arising
from customers that produce cement.
The global cement industry accounts for ~7% of
total global emissions.
1
The overall global demand
profile for cement under the IEA’s NZE 2050 remains
relatively flat
2
however the demand profile differs
between developed and developing countries.
While the cement sector faces pressure to
reduce emissions, this poses a major challenge.
The key raw material for cement is limestone,
which releases carbon dioxide as it is heated to
produce clinker. These production emissions
account for approximately 55% of the emissions
from cement production.
3

The Global Cement and Concrete Association
considers the opportunity for decarbonisation for
the cement sector will rely on substituting clinker
for supplementary cementitious materials
(e.g. fly ash)
4
, alternate fuels for kilns (e.g. biomass
instead of fossil fuels), decarbonisation of
electricity and plant and end-user efficiencies.
The cement industry will rely on carbon capture
and utilisation/storage (CCUS) technologies
becoming commercially and technically viable to
capture the remaining ‘hard-to-abate’ emissions
from the chemical reaction of heating limestone
to achieve net zero by 2050 for the industry.
Concrete
5
naturally re-absorbs carbon from the
atmosphere over its lifetime, but this is a fraction
of the impact of its initial production.
Due to the long average lifetimes of cement kilns
(around 40 years), ANZ will continue to engage
with customers on how we can best support
them with piloting important technologies as they
become available, to support the sector to make
its proportionate contribution to the achievement
of net zero emissions by 2050.
Our 2030 target of 0.49 tCO2-e/tonne cement
is in line with the decrease modelled by the IEA
NZE 2050 scenario.
1. Global Cement and Concrete Association. 2. IEA NZE by 2050 A roadmap for the Global Energy Sector, 2021. 3. Decarbonisation
Pathways for the Australian Cement and Concrete Sector, 2022.
4. Fly ash is a waste product from coal-fired power generation that is used
as a supplementary cementitious material.
5. Concrete is made of cement, sand, aggregates, water and admixtures. Cement is the ‘glue’
which binds the ingredients of concrete together.
6. The Cement CO2 and Energy Protocol. 7. IEA NZE 2050 Tracking report, 2022.
In line with the 2022 SBTi Cement
Guidance and our understanding of
industry practices, when we refer to
our intensity target in tCO2-e/t cement,
we have set an intensity target per tonne
of ‘cementitious product’ rather than per
tonne of ‘cement’. This delineation is
important as clinker substitutes – such as
gypsum, limestone and cement kiln dust –
are an important way to help decarbonise the
cement sector. ‘Cementitious product’ consists
of all clinker produced by our customers for
sale, plus all clinker substitutes consumed
for blending, plus all cement substitutes.
6

Cementitious product
Performance against target
This is the first year ANZ has reported on
the emissions intensity of our cement financing
activities. Our 2021 portfolio baseline of 0.61
tCO2-e/tonne cement is marginally above the 2021
global average of 0.59 tCO2-e/tonne cement.
7
Graph 4 shows the emissions intensity of
our cement production portfolio has reduced
by 5% to 0.58 tCO2-e/tonne cement from our
2021 baseline. The currently limited availability
of cost-effective technologies to reduce the
hard-to-abate process emissions of cement
production, makes the pathway towards our
target less clear in comparison to other sectors.
However, customer discussions to date have been
positive and revealed significant investment in
research and development is underway.
Our absolute emissions have decreased year-on-
year, in line with a reduction in lending to the
sector and a number of our customers achieving
emissions reductions.
Actions to achieve 2030 target
It is important to note we have a small number
of customers making up a material portion of
exposure to this sector. As our emissions intensity
target is based on a debt-weighted metric, we will
need to prioritise financing projects and customers
producing cement at an average intensity below
our 2021 baseline portfolio average of 0.61 tCO2-e/
tonne cement, noting this ‘average’ will reduce over
time. This does not mean we will no longer support
customers that produce cement above this average
– in fact, lending to support customers’ transition
plans may mean the emissions intensity of our
portfolio goes up for a period as we may have
increased exposure. However, as our customers
gradually switch to alternate fuels, increase
supplementary cementitious products, retrofit kilns
or bring online lower emissions production assets,
we expect to see the emissions intensity
of our portfolio decline.
We have begun, and will continue to engage
with customers to understand their transition
plans, emissions reduction targets and how we
can assist in supporting these customers toward
lower emissions cement production.
ANZ 2022 Climate-related Financial Disclosures
43

Steel
The key design choices we used in calculating our emissions intensity reduction target
for our steel production financing activities are summarised in Table 1.5 below.
2030 Target
•28% reduction in emissions intensity from 2021 baseline
Activities Included
•Companies that own or operate one or more steel production mills
Company
Emissions Included
•Scope 1 & 2 emissions
Metric
•Emissions intensity of steel production (tCO2-e/t steel)
Financing
Activities Included
•Based on Exposure at Default. This reflects total committed
loans (drawn plus undrawn amounts) and all trade finance
and markets products
Attribution
Approach
•Portfolio-weighted approach (measures ANZ’s financing to
customers relative to ANZ’s total financing to the steel sector)
Benchmarking
Scenario
•International Energy Agency (IEA) Net Zero Emissions
by 2050 Scenario
Key External Data
Sources
•Customer disclosures
•Asset Resolution
•International Energy Agency
Table 5 – Key design choices in calculating 2030 steel production target
20212022
Emissions Intensity tCO2-e/t steel 1.90 1.95
Absolute Emissions Mt CO2-e1.36 1.43
Portfolio-wide Intensity kgCO2-e/$ lent1.321.47
Data Quality Score
1
1.441.42
World Steel 2020 average
emissions intensity
2030 Target
(-28%)
Actual
Performance
IEA Net Zero Emissions
by 2050 Pathway
GHG Intensity (tCO-e/t steel)
ANZ vs. pathway
+5.9%
Graph 5: Steel
2.5
2.0
1.5
1.0
0.5
–
2020205020222024202620282032203420362038203020422044204620482040202120232025202720292033203520372039203120432045204720492041
1. The data quality score was calculated in accordance with guidance made available by the Partnership for Carbon
Accounting Financials (PCAF) in The Global GHG Accounting and Reporting Standard for the Financial Industry (available here).
ANZ 2022 Climate-related Financial Disclosures
44