#1ANZ 2022 APPROACH TO CLIMATE CHANGE INVESTOR REFERENCE PACK 25 NOVEMBER 2022 Approved for distribution by ANZ's Continuous Disclosure Committee Australia and New Zealand Banking Group Limited 9/833 Collins Street Docklands Victoria 3008 Australia ABN 11 005 357 522#2ANZ 2022 Approach to Climate Change Investor Reference Pack DISCLAIMER & IMPORTANT NOTICE This presentation should be read in conjunction with ANZ's 2022 Climate-related Financial Disclosures report available here: https://www.anz.com.au/about-us/esg/environmental-sustainability/climate-change/ The material in this presentation is general background information about ANZ's activities current as at the date of the presentation. 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. This presentation 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 this presentation, 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 hereof to reflect the occurrence of unanticipated events. 1#3ANZ 2022 Approach to Climate Change Investor Reference Pack CONTENTS OVERVIEW Our progress in aligning our lending to the Paris goals ENVIRONMENTAL SUSTAINABILITY Supporting our customers and steering our portfolio CLIMATE RISK More finance for customers on the right path STAKEHOLDER ENGAGEMENT Customer engagement to support emissions reductions ADDITIONAL REFERENCE MATERIAL 3 4 5 5 8 00 9 20 20 25 2#4ANZ 2022 Approach to Climate Change Investor Reference Pack ACCELERATING OUR APPROACH FOR THE TRANSITION TO NET ZERO Today we are accelerating our support for the transition to net zero: We have set a new $100 billion by 2030 sustainable solutions target to back our customers lowering their carbon emissions and achieving improved sustainability outcomes (FY23-FY30). This will be periodically reviewed and revised to ensure it continues to match our ambition For our largest emitters with good transition plans - around 60 per cent of this group - this means more finance To assist further, we will focus on financing corporate customers' energy efficiency plans to reduce their energy costs We will align our lending to four new sectoral pathways and targets in oil & gas, aluminium, cement and steel. These are in addition to our two existing pathways and targets for power generation and large-scale commercial property; by the end of November we'll have targets for six priority sectors For our largest emitting business customers who have not improved their transition plans by 2025, after significant engagement, we will reduce our exposure 3#5ANZ 2022 Approach to Climate Change Investor Reference Pack PROGRESS IN ALIGNING OUR LENDING TO THE PARIS GOALS • Our pathways, targets and reporting demonstrate how we are aligning our lending to the Paris Agreement goals We were the first Australian bank to join the Net-Zero Banking Alliance (NZBA) in 2021 and set emissions intensity pathways and targets - for power generation and large-scale commercial real estate. In doing so, we became one of 19 banks globally to set targets ahead of schedule We are on track to set 2030 targets for nine priority sectors - with six set as of today - aimed at ensuring at least 75% of our portfolio emissions are on a net zero pathway by end 2024 Other priority sectors are well progressed. Our direct exposure to thermal coal mining has reduced by ~83% since 2015; our exposure is now less than 0.02% of Group exposure at default (EAD). And we are on track to exit all direct lending to thermal coal mining1 well ahead of our 2030 target Our Climate Change Commitment sets out our "more finance for customers on the right path" targets, available at anz.com.au/about-us/esg/environmental-sustainability/climate-change/ We will back customers that have the right plans and commitments in place. Our disclosure is TCFD2-aligned and our target setting guided by the Partnership for Carbon Accounting Financials (PCAF) standard Our 2022 Climate-related Financial Disclosures report and Financed Emissions Methodology are available at anz.com.au/about- us/esg/reporting/ 1. Excluding some residual exposures to rehabilitation bonds as per our policy 2. Taskforce on Climate-related Financial Disclosures#6ANZ 2022 Approach to Climate Change Investor Reference Pack SUPPORTING OUR CUSTOMERS AND STEERING OUR PORTFOLIO Ambition to be the leading Australia and New Zealand-based bank in supporting customers to transition to net zero emissions Key priority areas and sectors we will pursue Banking the decarbonisation and electrification of the transportation value chain Supporting sustainability in resource extraction¹, basic materials² and new technologies³ Enabling the transition towards lower emissions buildings4 Increasing our support for companies to transition to low carbon Offering solutions to, and partnering with, sustainability-focused financial institutions5 Assisting sustainable food, beverage and commodities practices and supply chains 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 12345 3. 4. Supporting new technology projects focused on upstream hydrogen and carbon capture use and storage 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 5#7ANZ 2022 Approach to Climate Change Investor Reference Pack ANZ'S CAPABILITY IN FINANCING SUSTAINABILITY GREEN, SOCIAL, SUSTAINABILITY, SUSTAINABILITY-LINKED AND TRANSITION LOANS Lending to deploy capital into green and social initiatives, where borrowers are required to invest in qualifying green and/or social assets or where loan terms are linked to improved performance against agreed sustainability performance targets GREEN, SOCIAL, SUSTAINABILITY, SUSTAINABILITY-LINKED AND TRANSITION Spotlight on Sustainable Finance Sustainable Finance volumes AUD365bn BONDS Distribution of capital into green, social, transition and sustainability initiatives, e.g. green buildings, renewable energy or where bond terms are linked to improved performance against agreed sustainability targets Total volume (AUD equivalent) of sustainable finance transactions¹ since 2015 including Green, Social, Sustainability, Sustainability-Linked and Transition Bonds, Loans, Trade Finance and Derivatives, across Australia, New Zealand, Asia, Europe/UK and America in AUD, NZD, USD, SGD, CNH, HKD, JPY, GBP and EUR AUD5.2bn ANZ as an Issuer has raised AUD5.2b (AUD equivalent) GREEN AND SUSTAINABLE INFRASTRUCTURE PROJECT FINANCE Project financing to support the development of long-term sustainable infrastructure ANZ/CLEAN ENERGY FINANCE CORPORATION ENERGY EFFICIENCY ASSET FINANCE PROGRAM Financing that incentivises small-to- medium sized business customers to invest in energy efficient and renewable energy technologies that will help reduce their energy costs and carbon emissions Sustainable Finance transactions1, # 81 +57% 127 39 including AUD600m Green Bond (May 2015), EUR750m Sustainability (SDG) Bond (Feb 2018) EUR1.0bn Sustainability (SDG) Bond (Nov 2019), AUD1.25bn Sustainability (SDG) Bond (Aug 2020), EUR750m Sustainability (SDG) bond (Jan 2021) FY20 FY21 FY22 All data current as at 30/09/2022 1. Institutional labelled products only 6#8ANZ 2022 Approach to Climate Change Investor Reference Pack ANZ'S $50 BILLION SUSTAINABLE SOLUTIONS TARGET Helping improve the environmental sustainability of customers We remain committed to our existing target to fund and facilitate at least AUD50 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, which we are on track to exceed That is why we are setting a new 8 year AUD100 billion by 2030 sustainable solutions target to back our customers lowering their carbon emissions and achieving improved sustainability outcomes (FY23-FY30). This will be periodically reviewed and revised to ensure it continues to match our ambition. FY22 progress¹ . . . We have funded and facilitated AUD40.04 billion since October 2019, with 332 transactions contributing towards 10 Sustainable Development Goals AUD25.8 billion of transactions are on balance sheet loans and other credit lines provided to borrowers by ANZ AUD14.2 billion have been facilitated, including through advisory services; ESG-format bonds; and loans initially underwritten by ANZ and subsequently sold on to other lenders Funded² AUD25.8bn (Sep-22) Sustainability-Linked facilities Affordable Housing Other Social Energy Transport Green Building Water Waste Info. & Communication Technology Environmental Markets Facilitated³ ESG-format Bonds Advisory AUD14.2bn (Sep-22) Green Buildings / Renewable Loan Distribution 1. 2. 3. This information has been independently assured by KPMG as part of the 2022 ESG Supplement and 2022 ESG Supplement Data Pack assurance engagement. Energy: includes Wind/Solar/Battery/Transmission Infrastructure/Energy Transition/Energy Efficiency. Transport: low carbon transportation projects such as light rail, electric vehicle manufacturing. Environmental markets: corporate loans for businesses in environmental/carbon project development which facilitate the transition to net zero or create nature positive outcomes. Information & Communication Technology: networks, management and communication tools which facilitate the transition to net zero, e.g. power management, broadband. Sustainability-linked Facilities: 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. Other Social: includes credit lines to global development banks and agencies providing support to emerging economies, and social component of Sustainability Loans. ESG-format Bonds: Green, Social, Sustainable, Sustainability-Linked and Transition Bonds and other ESG-related bonds within the sustainable finance market. Green Buildings/Renewable Loan Distribution: loans initially underwritten by ANZ and subsequently sold on to other lenders, e.g. other banks, fund managers and super funds. 7#9ANZ 2022 Approach to Climate Change Investor Reference Pack MANAGING CLIMATE RISK Actively managing climate risk within our group risk management framework The risks and the opportunities of climate change • Engaging with our largest emitting business customers on the work they're doing to transition to a low carbon future . Understanding significant reductions in the cost of energy • Understanding how the transition to net zero emissions will impact global demand for natural resources and the flow-on effects to prices • Engaging with regulators and industry on climate-related policies and guidance for banks and financial institutions Recent actions to actively manage climate risk We continue to improve our management of climate risks through workstreams focused on regulatory monitoring, policy governance, risk appetite, data and analytics. This year we focused on: . reviewing and assessing current and emerging regulatory requirements across the jurisdictions in which we operate; ⚫ refining our Risk Appetite Statements for Institutional and included climate risk in lending criteria documents in the Australia Retail, Commercial and New Zealand portfolios; and • participating in APRA's Climate Vulnerability Assessment Our next steps involve: • developing a data strategy to help us identify and source reliable data to improve how we manage climate risks; • ensuring we have a consistent approach to meet evolving regulatory requirements across the jurisdictions in which we operate; and • extending our Climate Change Risk Assessment process to Institutional customers in higher emitting sectors including resources and energy – this is currently being piloted in Project Finance.#10ANZ 2022 Approach to Climate Change Investor Reference Pack MORE FINANCE FOR CUSTOMERS ON THE RIGHT PATH Absolute emissions and emissions intensity targets set our pathways • Our pathways set our strategy and course out to net zero by 2050 and use credible decarbonisation scenarios • The pathways allow us to: o Determine how each sector is performing against a Paris-aligned path Better pinpoint and manage customers that may be more exposed to transition risks; and help them to capture the growing opportunities that come with the transition 。 Assess the speed and extent to which we are transitioning our exposure to key sectors o Provide transparency about how our financing is aligned with climate scenarios We will use these pathways to steer our lending decisions in line with the Paris Agreement goals • We expect the transition is likely to be uneven - and there will be challenges in some sectors more than others 0#11ANZ 2022 Approach to Climate Change Investor Reference Pack FINANCE TO BACK CUSTOMERS ON THE RIGHT PATH New targets set for four carbon intensive sectors We have set a new absolute emissions reduction target for oil and gas Oil and Gas¹ NEW TARGET: 26% absolute emissions reduction by 2030 A variety of opportunities exist for the oil and gas sector to reduce emissions across the value chain A priority for oil and gas companies is to minimise methane leaks through a focus on leak detection and repair • Over time we will weight our financing to customers with stronger emissions reduction targets and diversification strategies 1. Oil and Gas Absolute Emissions (Mt CO2-e) ANZ vs. target pathway +7% 18 16 14 11 וו 12 10 80 6 4 2 0 2020 2025 2030 2035 2040 2045 2050 · Actual Performance -- IEA Net Zero Emissions 2050 Pathway -- - 2030 Target (-26%) We measure the portfolio emissions for the oil and gas sector using an 'absolute emissions' approach. We assess financed emissions on an 'all products' basis. Refer to ANZ's Financed Emissions Methodology for detail >10% above the pathway <10% above pathway Below pathway 10#12ANZ 2022 Approach to Climate Change Investor Reference Pack FINANCE TO BACK CUSTOMERS ON THE RIGHT PATH New targets set for four carbon intensive sectors We have set a new emissions intensity reduction target for aluminium Aluminium GHG2 Intensity (tCO2-e/t aluminium) 12 ANZ vs. target pathway -4.8% Aluminium¹ NEW TARGET: 30% emissions intensity reduction by 2030 The opportunity for decarbonisation for the aluminium sector is significant and is focused on a switch to renewable energy • Efforts to decarbonise the grid will be necessary for decarbonisation of the aluminium sector • Our 2021 portfolio baseline of 8.30 tCO2/tonne aluminium is below the 2021 global average of 10.29 tCO2/tonne aluminium • Over time we will weight our lending to customers with stronger emissions targets 10 8 6 4 2 0 2020 2025 2030 2035 2040 2045 2050 · Actual Performance -- International Aluminium Institute 1.5 pathway -- - 2030 Target (-30%) Global average International Aluminium Institute 1.5 pathway 1. 2. We measure the portfolio emissions in the aluminium sector on an 'emissions intensity' basis. Refer to ANZ's Financed Emissions Methodology for detail Greenhouse gas emissions (GHG) >10% above the pathway <10% above pathway 11 ●Below pathway#13ANZ 2022 Approach to Climate Change Investor Reference Pack FINANCE TO BACK CUSTOMERS ON THE RIGHT PATH New targets set for four carbon intensive sectors We have set a new emissions intensity reduction target for cement Cement GHG2 Intensity (tCO2-e/t Cement) ANZ vs. target pathway -2.5% Cement¹ NEW TARGET: 20% emissions intensity reduction by 2030 The opportunity for decarbonisation for the cement sector will rely on substituting clinker for alternate cementitious materials • Industry bodies have articulated the need for carbon capture, utilisation and storage becoming commercially viable to capture emissions from the chemical reaction of limestone to achieve net-zero by 2050 for the industry • Our 2021 portfolio baseline of 0.61 tCO2/tonne cement is marginally above the 2021 global average of 0.59 tCO2/tonne cement 0.7 0.6 0.5 0.4 0.3 • Over time we will weight our lending to customers with stronger emissions targets 0.2 0.1 0.0 2020 2025 2030 2035 2040 2045 2050 · Actual Performance -- IEA Net Zero Emissions 2050 Pathway -- - 2030 Target (-20%) Global average IEA tracking report 22 1. 2. We measure the portfolio emissions in the cement sector on an 'emissions intensity' basis. In line with the 2022 SBTI Cement Guidance, when we refer to our intensity target in tCO2-e/t cement, we have actually set an intensity target per tonne of 'cementitious product' rather than per tonne of 'cement'. Refer to ANZ's Financed Emissions Methodology for detail Greenhouse gas emissions (GHG) >10% above the pathway <10% above pathway ●Below pathway 12#141. ANZ 2022 Approach to Climate Change Investor Reference Pack FINANCE TO BACK CUSTOMERS ON THE RIGHT PATH New targets set for four carbon intensive sectors We have set a new emissions intensity reduction target for steel Steel GHG2 Intensity (tCO2-e/t Steel) 2.5 ANZ vs. target pathway +5.9% Steel¹ NEW TARGET: 28% emissions intensity reduction by 2030 • The opportunities for carbon emission reductions for the steel sector are well defined, however the technologies facilitating these reductions are not yet commercially available and will require 'breakthrough technologies' such as carbon capture utilization/storage or direct reduction of iron-ore using renewable energy • Our 2021 portfolio baseline of 1.90 tCO2-e/tonne steel is in line with the 2020 global average of 1.89 tCO2-e/tonne steel Over time we will weight our lending to customers with stronger emissions targets. 2.0 1.5 1.0 0.5 " 0.0 2020 2025 2030 2035 2040 2045 2050 -- · Actual Performance IEA Net Zero Emissions 2050 Pathway -- - 2030 Target (-28%) World Steel 2020 average emissions intensity We measure the portfolio emissions in the steel sector on an 'emissions intensity' basis. Refer to ANZ's Financed Emissions Methodology for detail >10% above the pathway <10% above pathway ●Below pathway 13#15ANZ 2022 Approach to Climate Change Investor Reference Pack PROGRESS TOWARDS OUR PORTFOLIO EMISSIONS TARGET PATHWAYS - LARGE-SCALE COMMERCIAL BUILDINGS We set emissions intensity reduction targets for large-scale commercial buildings in 2021 80 Commercial Real Estate - Shopping Centres GHG1 Intensity, kg CO2-e/m²NLA (Net Lettable Area) • Large-scale commercial property EXISTING TARGET: 60% emissions intensity reduction by 2030 for major commercial buildings in Australia owned by our large REIT and funds customers We will finance the opportunities for faster and deeper cuts in emissions presented by: improved energy efficiency; greater electrification of final energy use; voluntary purchases of green electricity; and self-generation of electricity from solar PV installations Major customers have already committed to achieving net zero emissions targets by 2030 and are making good progress, investing in renewable energy, the electrification of building infrastructure and energy efficient. measures 00 60 00 40 40 20 0 2020 2025 Actual Performance - 2030 2035 ANZ vs. target pathway 12% - 2040 2045 2050 - 2030 Target (-60%) - IEA Beyond 2°C Scenario (B2DS) Alignment Pathway Commercial Real Estate - Office Buildings GHG1 Intensity, kg CO2-e/m²NLA (Net Lettable Area) • Building assets covered by the target represent around 20-25% of our total exposures to the non-residential building sector 80 60 60 40 40 0 2020 • Portfolio emissions intensity in the Commercial Building sector continues • to reduce and we are below our 2030 target pathways All new large-scale offices financed by ANZ in the commercial building sector are required to have a 5-star NABERS² rating or above Greenhouse gas emissions (GHG) 1. 2. National Australian Built Environment Rating Scheme 20 20 2025 2030 2035 Actual Performance 2030 Target (-60%) - -- ANZ vs. target pathway - 26% 2040 2045 2050 IEA Beyond 2°C Scenario (B2DS) Alignment Pathway >10% above the pathway <10% above pathway ●Below pathway 14#16ANZ 2022 Approach to Climate Change Investor Reference Pack PROGRESS TOWARDS OUR PORTFOLIO EMISSIONS TARGET PATHWAYS - POWER GENERATION • Financial challenges of a changing energy sector • • . Wholesale electricity prices increased to record highs in parts of Australia earlier this year. Electricity companies routinely hedge the price of their future energy generation on the ASX electricity futures market, to mitigate against price fluctuations Due to these record high wholesale prices, companies using the electricity futures market, including some existing ANZ customers, faced unusually high margin calls on their existing hedge contracts - requiring them to post cash collateral to margin accounts to cover these positions We have observed similar developments internationally this year. In the UK, the 'Energy Markets Financing Scheme'¹ is designed to support viable energy firms with major operations in the UK to deal with the unprecedented volatility triggered by Russia's invasion of Ukraine. These firms will be able to apply for government-backed guarantees to secure commercial financing and meet large margin calls from energy price volatility • In August 2022, the Australian Energy Market Operator² forecasted electricity reliability concerns over the next 10 years, with urgent investment in electricity generation, storage and transmission required • Within this context, our challenge is to finance the new green energy infrastructure required to help achieve net zero emissions, while ensuring existing providers - which are making these investments - are supported while this new infrastructure is being built. These companies serve important roles in the supply and stability of the energy market while the broader operating environment transitions in line with the Paris Agreement goals 1. Energy Markets Financing Scheme opens today | Bank of England 2. AEMO | Critical investment needed to manage reliability gaps 15#17ANZ 2022 Approach to Climate Change Investor Reference Pack PROGRESS TOWARDS OUR PORTFOLIO EMISSIONS TARGET PATHWAYS - POWER GENERATION • • · We set an emissions intensity reduction target for power generation in 2021 Power Generation EXISTING TARGET: 50% emissions intensity reduction by 2030 for our global power generation portfolio We know decarbonising will require an increase in electricity generation. The challenge will be to meet that demand growth with clean energy sources - our target we set in 2021 seeks to meet this by influencing the types of customers and projects we support Power generation GHG1 Intensity (kg CO2/MWh) 500 ANZ vs. target pathway + 47% 400 300 Our 2030 target of 119kg CO2/MWh is a portfolio average. The target is set against a 2020 baseline of ~240kg CO2/MWh 200 To ensure the ongoing completeness, accuracy and consistency of our reporting, we are restating our 2020 emissions intensity baseline. This is due to improvements in our ability to identify generation asset(s) that our financing is linked to 100 Engagement with power generation customers is focused on how they intend to reduce the emissions intensity of power supplied to their customers The emissions intensity of our Power Generation portfolio increased this year due to short term financing for existing customers to manage unprecedented energy market volatility. This does not translate to an increase in 'real world' emissions, as they are existing customers and assets We remain committed to our 2030 target pathway and remain well below the IEA Net Zero Emissions by 2050 Scenario pathway 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 -- Actual Performance IEA Net Zero Emissions by 2050 Pathway - 2030 Target Pathway 1. Greenhouse gas emissions (GHG) >10% above the pathway <10% above pathway ●Below pathway 16#18ANZ 2022 Approach to Climate Change Investor Reference Pack BACKING CUSTOMER DECARBONISATION Illustrative examples of customer pathways that align with our portfolio targets Paris-aligned targets set their path Examples of Paris-aligned investments OIL AND GAS "Oil and Gas Company Corp!" In 2021: Announced intention to be a net zero energy company by 2050 or sooner (covering full life cycle of energy products) By 2030: Reduce absolute Scope 1 & 2 emissions by 50%; Reduce absolute Scope 3 emissions (use of sold product) by 40% • 80% reduction emissions in methane emissions • Eliminate routine gas flaring by 2025 By 2050: Aiming for net zero across operations, production and sales by 2050 or sooner Company increasingly invests in: • Minimizing methane leaks through a focus on leak detection and repair Avoidance of non-emergency flaring and venting Electrification of upstream operations • Diversifying portfolios into cleaner energy technologies such as renewable electricity, hydrogen, biofuels and biogases etc Capture and permanent storage of remaining emissions or balancing them with credible offsets • ALUMINIUM "Aluminium Company Corp!" In 2021: Disclosed science-based GHG emissions intensity reduction targets Current emissions intensity 6.0 tCO2-e/t aluminium By 2030: Reduce emissions intensity by 40% • Target of 3.6 tCO2/t aluminium By 2050: Achieve net zero emissions Company increasingly invests in: • Switching to renewable energy in conjunction with global trend towards grid decarbonisation • Research and development into low/no carbon anodes 17#19ANZ 2022 Approach to Climate Change Investor Reference Pack BACKING CUSTOMER DECARBONISATION Illustrative examples of customer pathways that align with our portfolio targets Paris-aligned targets set their path CEMENT "Cement Company Corp!" In 2021: Disclosed science-based GHG emissions intensity reduction targets • Current emissions intensity 0.68 tCO2-e/t cement By 2030: Reduce emissions intensity by 20% • Target of 0.54 tCO2-e/t cement From 2030 to 2040: Upscaling and commercialisation of Carbon Capture utilization and storage (CCUS) projects By 2050: Achieve net zero emissions STEEL "Steel Company Corp." In 2021: Disclosed science-based GHG emissions intensity reduction targets • • Current emissions intensity 3.0 tCO2-e/t steel • Target of 2.0 tCO2-e/t steel Plant retrofit and upgrade to take on alternative fuels Increased supplementary cementitious product Company increasingly invests in: Examples of Paris-aligned investments Research and development into carbon capture and storage technology By 2030: Reduce emissions intensity by 33% Increased steel recycling and use of renewable energy From 2030 to 2040: Upscaling and commercialisation of CCUS and green steel production By 2050: Achieve net zero emissions Company increasingly invests in: • Switching to renewable energy in conjunction with global trend • Efficiency upgrades and retrofits • towards grid decarbonisation • Steel recycling Research and development into CCUS technology and direct reduction of iron-ore without the use of fossil fuels 18#20ANZ 2022 Approach to Climate Change Investor Reference Pack BACKING CUSTOMER DECARBONISATION Illustrative examples of customer pathways that align with our portfolio targets Paris-aligned targets set their path COMMERCIAL PROPERTY "Property Company Corp." In 2020: Disclosed Paris-aligned plans and decarbonisation strategy By 2025/2030 • Low carbon fuel alternatives for machinery • Require min. NABERS¹ 5-star energy rating on offices Suppliers to reduce emissions from building materials By 2040/2050: Reach net zero emissions • All green leases for tenants • Renewable energy tariffs • • Zero operational emissions Phased out diesel and gas POWER GENERATION "Energy Company Corp." In 2020: Disclosed science-based GHG emissions intensity reduction targets Current emissions intensity 630kg CO2/MWh By 2030: Reduce emissions by 50% Target of 315kg CO2/MWh From 2030 to 2040: Reduce emissions a further 50% Target by 2040 of 158kg CO2/MWh By 2050: Achieve net zero emissions Examples of Paris-aligned investments • Company increasingly invests in: . • Electric construction plants & equipment Onsite renewable energy Battery storage in buildings Decarbonised heating and cooling infrastructure To aid transition, company develops lower-emission base load alternatives to coal fired generation which is being progressively retired Company increasingly invests in: Large-scale renewables and energy infrastructure including wind and solar farms • Electricity storage technologies such as batteries and pumped hydro (long duration storage) 1. National Australian Built Environment Rating System 19#21ANZ 2022 Approach to Climate Change Investor Reference Pack CUSTOMER ENGAGEMENT TO SUPPORT EMISSIONS REDUCTIONS 100 of our largest emitting business customers Among our Australian banking peers, we have the most advanced engagement process with our largest emitting business customers We have been discussing transition plans with 100 of our largest emitting business customers since 2018, we broadened this to our customers efforts to protect biodiversity in 2022 In FY22 we engaged with 99 of our largest emitting business customers 61% of these customers now have well developed or advanced transition plans versus 42% by end FY21 Overall good progress is being made, with 29 customers upgraded since FY21 We consider three key elements constitute a robust low carbon transition plan: governance targets disclosures (preferably aligned with the Taskforce on Climate-related Financial Disclosures) These customers produced more than 147 million tonnes of direct (Scope 1) CO₂ emissions during 2020-21 for their Australian-based operations. This is around 30% of the national total for Australia 100 of our largest emitting business customers by transition plan category1 15 23 A A-ADVANCED B - WELL DEVELOPED 27 227 38 36 27 27 22 B C Sep 2021 Sep 2022 C- UNDERDEVELOPED / STARTING OUT D NO PUBLIC PLANS 11 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 20 20#22ANZ 2022 Approach to Climate Change Investor Reference Pack CUSTOMER ENGAGEMENT TO SUPPORT BIODIVERSITY PROTECTION 100 of our largest emitting business customers 1. 2. 100 of our largest emitting business customers biodiversity status¹ Biodiversity risk is recognised across our 'sensitive sector' lending policies It is a focus area acknowledged in our Climate Change Commitment and as an emerging risk in our Annual Report Biodiversity has this year also been included in discussions with our largest emitting business customers Discussion to date have been positive - with increased customer awareness and improvements in the way they measure impacts of their business on nature and vice versa Engagement is helping refine our screening, improving our knowledge, enhancing capacity to further engage We have joined the TNFD2 Forum to support their work. They play an important role in driving widespread and improved disclosures of biodiversity impacts Customers 100 90 80 76 70 60 50 58 50 40 30 20 10 0 Governance Customers Engaged Targets, policies or strategies Disclosures 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 Taskforce on Nature-related Financial Disclosures 21#23ANZ 2022 Approach to Climate Change Investor Reference Pack SEEKING IMPROVED TRANSITION PLANS FROM SOME CUSTOMERS 100 of our largest emitting business customers Good progress, more work to be done • Within each industry our customers have different starting points. Many have improved their governance, strategies, targets and disclosures to advance their transition planning • • • In FY22 there were ~60% of customers with more advanced plans. Up from ~40% in FY21 We provide support with insights into enhanced customer practices. We encourage those further advanced 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 We expect our new 8-year sustainable solutions target of $100bn by 2030 will further assist our largest emitting customers to invest in emissions reduction. We will continue to prioritise our support for customers who are committed to improving their plans This support will also focus on customers in the C and D categories. We are seeking improved plans from these businesses by 2025 and will increase our engagement to encourage further progress • While we will aim to support C and D category customers to improve, if significant engagement doesn't see positive momentum we will reduce our exposure 22 22#24ANZ 2022 Approach to Climate Change Investor Reference Pack PROGRESS WITH OUR 100 LARGEST EMITTING BUSINESS CUSTOMERS Examples of improvement through categories (A) ADVANCED (B) WELL DEVELOPED ENERGY COMPANY Governance Targets Disclosures DIVERSIFIED INDUSTRIAL COMPANY Governance (C) UNDERDEVELOPED / STARTING OUT LARGE COMMODITIES COMPANY Governance (D) NO PUBLIC PLANS LARGE RETAILER Targets Disclosures Targets Disclosures 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 TCFD1-aligned reporting 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 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 reporting² 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 1. Taskforce on Climate-related Financial Disclosures 2. Others in category C may be reporting against TCFD, with uplift required in key areas such as governance, metrics and targets 23#25ANZ 2022 Approach to Climate Change Investor Reference Pack PROGRESS WITH OUR 100 LARGEST EMITTING BUSINESS CUSTOMERS Examples of improvement through categories INDUSTRIAL COMPANY During our engagement, customer has moved up from Category D to Category B Governance Targets Disclosures CUSTOMER • The customer is at a well developed stage with clearly defined plans and actions that have evolved significantly since 2021 • A clear governance framework is in place, outlining senior management oversight of climate change and nature-related risks and opportunities. Issues and opportunities are considered by the Environmental Policy and Risk & Sustainability Committee Public targets and strategies are in place to reduce emissions and support government policies up to 2030 in key markets. Metrics and targets have been set to assess and manage impacts and dependencies on nature and associated risks and opportunities First TCFD report published in 2021 Annual Report, including a pathway disclosure and a commitment to have Scope 1 & 2 emissions reduction target independently validated by the Science Based Targets Initiative In place / met 24 ས་#26ANZ 2022 Approach to Climate Change Investor Reference Pack OUR ESG RELATED DISCLOSURES ANZ Personal Business Institutional Search a Log in ESG Financial wellbeing Environment Housing Responsible banking Community Diversity & Inclusion Policies & Practices ESG reporting About us / ESG Our Environmental, Social and Governance (ESG) approach Our purpose at ANZ is to shape a world where people and communities thrive. We're focused on integrating our purpose and ESG approach into our business strategy. This has created opportunities for us to better serve our customers and generate long-term shareholder value. Our ESG approach is focused on three key areas - Financial Wellbeing, Environmental Sustainability and Housing - where we're responding to complex societal issues central to our customers and business strategy. These focus areas are underpinned by a commitment to Fair and Responsible Banking. Find ANZ Support Centre Jump to Focus areas ESG targets More on sustainability ESG news Reporting ESG Supplement SHAPE A WORLD WHERE PEOPLE ESG Briefing ESG information & progress against our ESG targets 2022 ESG INVESTOR BRIEFING SENTATION AND REFERENCE PACK https://www.anz.com.au/about- us/esg/reporting/esg-reporting/ Human Rights ANZ Annual event to brief investors on ESG matters https://www.anz.com/content/dam/anzc om/shareholder/2022-ESG- investor-presentation-and- reference-pack.pdf Climate Change Disclosures Climate change commitment and climate related financial disclosures https://www.anz.com.au/about- us/esg-priorities/environmental- sustainability/climate-change/ ANZ Housing ANZ-CoreLogic Housing Affordability Report, the pre- eminent guide to trends & drivers of housing affordability across Australia https://www.anz.com.au/about-us/esg- priorities/housing/ Financial Wellbeing KADROM YOR SHA BHT DMIRBIJEW ЈАЗИАНІВ ROTADIONI TAU TRAUG WAVEVO DE JAHAN Our financial wellbeing programs, incl. ANZ Roy Morgan financial wellbeing indicator https://www.anz.com.au/about- us/esg-priorities/financial- wellbeing/ Focus areas Financial wellbeing Improving the financial wellbeing of our customers, employees and the community at large by helping them make the most of their money throughout their lives. More about financial wellbeing> Environmental sustainability Supporting household, business and financial practices that improve environmental sustainability. More about environmental sustainability > Housing Improving the availability of suitable and affordable housing options for all Australians and New Zealanders. More about housing > Fair and responsible banking Keeping pace with the expectations of our customers, employees and the community. behaving fairly and responsibly and maintain high standards of conduct. More about fair and responsible banking > Our approach to human rights https://www.anz.com.au/about- us/esg-priorities/fair- responsible-banking/human- rights/ HOUSING AFFORDABILITY REPORT 25#27ANZ 2022 Approach to Climate Change Investor Reference Pack FURTHER INFORMATION ANZ Personal Business Institutional Search a Log on Shareholder Centre About ANZ Your Shareholding Calendar and events Reporting Investor Toolit Shareholder Contact Find ANZ Contact ANZ Shareholder Centre Full Year Results Announcement Thursday, 27th October 2022 at 10:00 am (AEDT) Find out more Quick links Log on to Computershare Shareholder ANZ Shares Select other log in Financial calendar Share prices Dividend information Annual report About ANZ Corporate governance How we make effective and responsible decisions Learn more Our people Get to know our Board of Directors and Executives ANZ Share Information Dividends History dates and other related information Learn more Our Purpose and Strategy Information on our strategy, purpose and markets Learn more Business structure Information on how our business is structured. Learn more Shareholder update Half Year newsletter to our shareholders Learn more Alternative securities FAQs ADR Capital Notes and other treasury products Frequently asked questions Learn more Learn more Calendar and events Financial calendar Key financial dates for the ANZ. Learn more Financial results Information pertaining to the latests financial results. Learn more Annual General Meeting Latest AGM information including notice of meeting. Learn more ESG briefing Annual event providing update on progress on ESG matters. Learn more Investor toolkit ASX announcements Latest ANZ announcements and archive. Learn more Latest reports + ㄖ о E Share price details Customisable and downloadable share price chart. Learn more Share registry profile Ownership by type and domicile over time. Learn more Other information Financial summaries, capital management and more. Annual Report/Reviews A suite of reports for a wide range of stakeholders. Learn more Results annoucements Financial disclosures, Investor packs and more. Learn more Environment, Social and Governance ESG framework, targets and progress. Learn more Other reporting Regulatory disclosures. Trading updates, NZ disclosure statements and more. Learn more https://www.anz.com/shareholder/centre/ Equity Investors Jill Campbell Group General Manager Investor Relations +61 3 8654 7749 +61 412 047 448 [email protected] Cameron Davis Executive Manager Investor Relations +61 3 8654 7716 +61 421 613 819 [email protected] Harsh Vardhan Senior Manager Investor Relations +61 3 8655 0878 +61 466 848 027 [email protected] Retail Investors Michelle Weerakoon Manager Shareholder Services & Events +61 3 8654 7682 +61 411 143 090 [email protected] Debt Investors Scott Gifford Head of Debt Investor Relations +61 3 8655 5683 +61 434 076 876 [email protected] Steven Aquilina Associate Director Investor Relations +61 3 8654 7778 +61 447 744 542 [email protected] 26