#1ANZ 2019 ESG Investor briefing Presentation & Investor Discussion Pack 21 June 2019 AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED ANZ#2ENVIRONMENT, SOCIAL AND GOVERNANCE OUR APPROACH AGENDA GOVERNANCE SHAYNE • Purpose and priorities • Structure and responsibilities . ESG committees ROYAL COMMISSION: 'SPIRIT' AND THE 'LETTER' - ALEXIS . Governance • First response • APRA self-assessment Q&A ANZ 2#3BRINGING OUR PURPOSE TO LIFE CHOICES ABOUT WHO WE SERVE • WHO we bank • HOW we bank WHAT we care about SHAPE A WORLD WHERE PEOPLE AND COMMUNITIES LIVE THRIVE! • CHOICES ABOUT HOW WE OPERATE HOW we organise ourselves HOW we behave HOW we measure & communicate our progress WHAT WE CARE ABOUT Housing Environmental Sustainability Our focus ... Leading to ... Our focus ... Leading to ... Our focus ... Financial Wellbeing Leading to ... Homes to Buy Homes to Rent Home ownership Housing choice Energy Lower carbon emissions Financial Access Water Water stewardship Financial Fitness Economic participation Financial resilience Access to Housing Housing security Waste Waste minimization ANZ 3#4FIVE PRIORITIES 1. Own up to our failures and fix them 2. Do a few things, and do them well 3. Do more with what we have 4. Get our people ready for a different future 5. Give customers the tools they need to enhance their financial wellbeing ANZ 4#5FUNDAMENTAL PRINCIPLES GUIDING THE WAY WE ARE TRANSFORMING THE BANK AS WELL AS HOW WE DEVELOP OUR PRODUCTS AND SERVICES Spend less than you earn Save regularly towards your goals 1 2 3 E$ Borrow within your means, allowing some room to move 4 $ Put money aside for a rainy day Protect what you can't afford to lose 5 6 $ кол Build towards Share what your retirement you can Pay your most expensive debt first 7 8 $ Invest in things that grow ANZ 5#6SUSTAINABILITY TARGETS HALF YEAR PROGRESS SNAPSHOT FAIR AND RESPONSIBLE BANKING Increased specialist retail remediation team (people) Implement new Dispute Resolution Principles in Australia Create best experience for our customers¹ March 2019 March 2018 200 130 Complete 4th 3rd ENVIRONMENTAL SUSTAINABILITY Fund and facilitate at least $15b by 2020 in low carbon sustainable solutions² Reduce scope 1 & 2 emissions by 24% by 2025 and 35% by 20303 FINANCIAL WELLBEING $14.6b $8.36b -23% -13% Help enable social and economic participation of 1 million people by 20204 Increasing women in leadership to 33.1% by 2019 (34.1% by 2020) >889k5 >550k5 32.4% 31.9% 608 365 Recruiting >1,000 people from under-represented groups by 2020 HOUSING Fund and facilitate $1b of investment by 2023 to deliver ~3,200 more affordable, secure and sustainable homes to buy and rent (Australia) NZD100m of interest free loans to insulate homes for ANZ NZ mortgage holders # Loans approved (Value) $315m 677 (NZD2.5m) Note: This information has not been independently assured. KPMG will provide assurance over ANZ's full year performance against targets in its annual sustainability reporting to be released in November 2019. 1. Australia Retail: Roy Morgan Research Single Source, Australian population aged 14+, Main Financial Institution, six month rolling average to March 2019 and 2018. Ranking based on the four major Australian banks; 2.Including renewable energy generation, green buildings and less emissions intensive manufacturing and transport; 3. Reducing the direct impacts of our business activities on the environment; 4. Through our initiatives to support financial wellbeing including financial inclusion, employment and community programs, and targeted banking products and services for small businesses and retail customers; 5. Measured at 30 September for each respective year - full year results available in November 2019. ANZ 6#7WHERE WE ARE FOCUSED • Resolving long standing and / or complex customer issues Getting balance right between consequence management and motivating positive behaviours • Balancing our dual roles of responsible banking and providing economic opportunity ANZ 7#8ANZ 2019 ESG Investor briefing GOVERNANCE ANZ#9ESG - GOVERNANCE OVERVIEW BOARD OF DIRECTORS Chaired by David Gonski, Chairman Audit Committee Risk Committee Ethics, Environment, Chair: Paula Dwyer Chair: Graeme Liebelt Social and Governance Committee Chair: David Gonski Digital Business and Technology Committee Human Resources Committee Chair: Jane Halton Chair: Ilana Atlas Nomination and Board Operations Committee Chair: David Gonski Ethics and Responsible Business Committee (ERBC) Chaired by Shayne Elliott, CEO Customer Fairness Advisor, Australia Reports to Shayne Elliott, CEO Royal Commission & Self- Assessment Oversight Group Chaired by Kevin Corbally, CRO and Alexis George, DCEO Customer Advocate, Australia Reports to Mark Hand, Group Executive, Australia Retail and Commercial Banking ANZ 9#10BOARD AND EXECUTIVE COMMITTEES WORK TOGETHER INDICATIVE RESPONSIBILITIES DEMONSTRATE HOW COMMITTEES MANAGE ESG Ethics, Environment, Social and Governance Board committee Purpose: Establish ethical and ESG guidelines and principles Oversight of measures to advance Purpose and the Ethics and Responsible Business Committee Review and monitor ethical, environmental, social and governance risks and opportunities Ethics and Responsible Business Management committee Purpose: Operationalise Board objectives and make decisions on issues and policies Purpose, reputation and values review Consider and decide on ethical, environmental, social and governance risks and opportunities Code of Conduct review Review of complaints themes and potential systemic issues Examine complaints themes and potential systemic issues Set Social and Environmental Risk policy and monitor implementation Oversight and approval of ESG reporting and targets Oversight and approval of corporate governance policies, principles, regulatory and policy responses Set ESG targets and monitor progress Monitor and determine sensitive customer transactions ANZ 10#11BOARD ETHICS, ENVIRONMENT, SOCIAL AND GOVERNANCE COMMITTEE (EESG) COMMITTEE REMIT EXPANDED 2017, GENERALLY MEETS FOUR TIMES A YEAR INDICATIVE AGENDA AND TOPICS COVERED • Governance Committee remit and forward agenda Materiality Review Governance and regulatory updates Review of Ethics and Responsible Business Committee minutes • 14% • 23% Who we bank • Emerging social issues eg. animal welfare, data privacy Asian developing nation customer onboarding due diligence Institutional customer human rights claims Carbon policy • How we measure and communicate Retail investor reports • ESG reporting and targets • ESG external assurance Taskforce on Climate-related Financial Disclosures 11% Our purpose and priorities 14% Housing Financial wellbeing Environmental sustainability • 38% • How we bank • CEO conduct report Customer complaints Product suitability Vulnerable customers ESG topics discussed by full Board or other Board sub-committees Royal Commission - governance over program of work Customer remediation Remuneration policy and practices ANZ 11#12ETHICS AND RESPONSIBLE BUSINESS MANAGEMENT COMMITTEE (ERBC) COMMITTEE ESTABLISHED 2017, GENERALLY MEETS FOUR TIMES A YEAR INDICATIVE AGENDA AND TOPICS COVERED Governance • • • Materiality Review Social and Environmental Risk policy Committee remit How we measure and communicate ESG targets monitoring Taskforce on Climate-related Financial Disclosures Our purpose and priorities • Housing • Financial wellbeing Environmental sustainability 16% 6% 11% Who we bank • • • • Lessons from the Royal Commission Emerging social issues eg. animal welfare, data privacy Asian developing nation customer onboarding due diligence External perspectives on evolving community standards and expectations Carbon policy 38% • How we bank • • Customer complaints Product suitability Vulnerable customers • Data ethics 29% Committee membership Chair: CEO Chief Risk Officer Group Executive, Talent & Culture Group General Counsel Group GM, Corporate Affairs GM Credit, Specialised Lending and Head of Social and Environmental Risk Group GM, Group Strategy Deputy Chief Executive Officer Group GM Communications & Public Affairs • Customer Fairness Advisor Business representatives, currently: • • MD, Retail & Business Banking, New Zealand GM, Business Banking, Australia Country Head, Singapore & Head of SEA, India and Middle East 3rd Party Advisor: Simon Longstaff, Executive Director, Ethics Centre ANZ 12#13EESG AND ERBC - INDICATIVE FUTURE FOCUS WHO WE BANK • Emerging social issues eg. Data privacy Fairness - serving and competing for new and existing customers Potentially high risk customers - including Politically Exposed Parties HOW WE BANK ° Ethical decision making framework ⚫ Banking Code implementation • • Vulnerable customers Disaster impacted customers and regions Customer complaint themes and systemic issues Design and Distribution Obligations and Product Intervention Power Credit card use for gambling update Conduct Potential improved metrics Product suitability program OUR PRIORITIES • Customer transition plans toward a low carbon economy Housing access and affordability update Evolving standards and expectations of civil society on ESG matters Financial wellbeing – potential improved metrics HOW WE MEASURE AND COMMUNICATE . • • • Reputation indicators Best practice standards for ESG board and management committees FY20 ESG targets Stakeholder engagement - how we engage with and respond to key stakeholder groups GOVERNANCE Monitoring of implementation of new Banking Code of Practice Peer assessment: ESG policies vs practices Industry associations: membership and policy positions ANZ 13#14THE COMMITTEES IN ACTION THE FOLLOWING SLIDES PROVIDE CASE STUDIES TO DEMONSTRATE THE COMMITTEES' DISCUSSIONS WHO WE BANK HOW WE BANK OUR PRIORITIES 1 Asian developing nation customer on- boarding due diligence 2 Credit card gambling controls 3 Purpose and our ethical decision- making framework HOW WE MEASURE AND COMMUNICATE 4 External Report Card - Reputation Indicators GOVERNANCE 5 Materiality review - a focus on fair and responsible banking ANZ 14#15CASE STUDY - WHO WE BANK 1 ASIAN DEVELOPING NATION CUSTOMER ON-BOARDING ENHANCED DUE DILIGENCE DUE DILIGENCE CONTROLS FOR NEW CUSTOMER ON-BOARDING Context: Demonstration of enhanced due diligence controls for on-boarding. Steps undertaken to on-board a new customer in April 2019 included: • Standard on-boarding steps such as sanctions screening and KYC; Assessment of actual or potential linkages (ownership, supplier, dealer) to Government and Military entities; • • Open source scan to identify any potential adverse reports; Detailed, formal ESG commitments from the customer; and Escalation and approval from senior stakeholders outside of the country. Outcome: As part of enhanced due diligence, a media scan identified NGO allegations of inappropriate work practices. Subsequent research and customer discussion obtained documentary evidence of the customers' policies and processes to monitor and manage work practices. Also, meetings were held with the customer including their local CEO, local Head of Sustainability and Global Head of Group Finance. It was concluded the customer was compliant with the relevant country's laws, the media report was inaccurate and the customer has global and local processes and policies in place to identify and prevent inappropriate work practices. The customer acknowledged these processes and policies, set out in detail in communication with the ANZ country head and affirmed by the customer's global headquarters. Relevant ESG target: Improving our human rights due diligence processes. ANZ 15#16CASE STUDY - HOW WE BANK 2 CREDIT CARD GAMBLING CONTROLS REDUCING HARM TO POTENTIALLY VULNERABLE CUSTOMERS Context: In December 2018 we introduced a restriction on the use of credit cards for gambling transactions where the customer's card has been utilised beyond 85% of the account credit limit. This change is aimed at reducing harm to potentially vulnerable customers who are using ANZ credit cards for gambling, while minimising unintended consequences for the general population of card users. We consulted with industry and community groups before implementing this measure. A self-exclusion mechanism is also being developed where customers can 'opt out' of the ability to gamble on their credit cards by the end of 2019. These initiatives operate alongside our responsible lending policies which are aimed at ensuring credit is provided only to those who can afford it. In the first three months of this restriction, $17.39M of Real Time Authorisation transactions attempted by customers who had already used 85% of their account limit were declined. Outcome: Increased protections for customers negatively impacted by their use of credit cards for gambling, while minimising unintended consequences for the general population of card users. Relevant ESG target: Make our products fairer and better matched to our customers. ANZ 16#17CASE STUDY - OUR PURPOSE AND PRIORITIES 3 PURPOSE AND OUR ETHICAL DECISION-MAKING FRAMEWORK ETHICAL CONSIDERATIONS INFORM HOW WE MAKE DECISIONS Context: To support our aim to build a more purpose-driven and ethical bank we have developed a decision-making framework that considers: Our purpose: why we exist • Our principles: what is right Our ICARE values: what is good Other actions to raise ethical considerations include: • Inviting Dr. Simon Longstaff, Executive Director, The Ethics Centre to join the Ethics and Responsible Business Committee, effective June 2018 Introducing Ethi-call for staff - a free ethics counselling helpline providing independent and confidential guidance on personal or professional ethical issues, run by The Ethics Centre Outcome The decision-making framework is actively used by the Ethics and Responsible Business Committee and broader rollout is underway. Ethi-call is available for use by all ANZ staff with Group Management targeted for awareness. Relevant ESG target: Improve senior leaders' role modelling of ANZ values. ANZ 17#18CASE STUDY - HOW WE MEASURE AND COMMUNICATE 4 EXTERNAL REPORT CARD REPUTATION INDICATORS TRACKING OF EXTERNAL ESG RATING PERFORMANCE Context: Our reputation indicators identify our key weakness, scrutinised in the Royal Commission, as our failure to always responsibly deliver products and services, e.g. fees for no service. DJSI¹ 0 MSCI² CCC Sustainalytics³ Severe ISS-oekom4 D- Bank industry median, 43 83 87, Highest bank 100 ANZ A AAA Medium risk, top 19th percentile C+, Best banking peer Negligible A+ Outcome: Reputation indicators for ANZ and other major banks show long-term, mid-range rank among major corporates, followed by 12 months of decline throughout the Royal Commission. All indicators are consistent. Relevant ESG target: Group scorecard, maintain strong performance on Dow Jones Sustainability Index. 1: 2018, Dow Jones Sustainability Index; 2: ESG Rating, December 2018, MSCI ESG Research; 3: ESG Risk Rating Report, April 2019; 4: Corporate Rating, April 2019, Institutional Shareholder Services - oekom. ANZ 18#19CASE STUDY - GOVERNANCE 5 MATERIALITY REVIEW • A FOCUS ON FAIR AND RESPONSIBLE BANKING INTERVIEWS WITH EXTERNAL STAKEHOLDERS TO INFORM & HELP GUIDE OUR WORK IN RESPONSE TO THE ROYAL COMMISSION Context: Interviews were held with external stakeholders including institutional investors, retail shareholders, consumer advocates, financial counsellors and analysts Findings and challenges 1. Long-term performance Surprise at the extent of illegal and unethical behaviour across the banking sector Strong belief amongst interviewees across all cohorts that unethical (not just illegal) behaviour will erode shareholder value Expectation that, Boards focus on long-term value creation not short- term profit maximisation Outcome: 2. Current actions are good and necessary but not sufficient • Transparent reporting sought on progress towards the spirit and findings of the Royal Commission Expectation for Board and management to demonstrate, customer-centric actions in line with the 'spirit' of the Royal Commission's findings 3. Broader role for Board in overseeing conduct and culture . Appetite for more visible role for Board in setting and governing culture and conduct Expectation that real and lasting change happens as a result of the Royal Commission Findings have been presented to Board, the Ethics and Responsible Business Committee and the Royal Commission and APRA Self- Assessment Oversight Group and will inform our continuing work on improving customer outcomes. Relevant ESG target: Group scorecard, rebuild reputation. ANZ 19#20ANZ 2019 ESG Investor briefing UPDATE ON ANZ AND THE ROYAL COMMISSION ANZ#21ROYAL COMMISSION OUR APPROACH, OUR RESPONSE WE ARE DETERMINED TO RESPOND TO THE 'SPIRIT AND THE LETTER' OF THE ROYAL COMMISSION. Initial response Committed to sixteen actions that we can take now Reviewed individual cases highlighted at the Commission and take action where appropriate to resolve the matters Lessons from our experience Eight lessons based on our misconduct and failures to meet community standards and expectations Now we will identify what success measures are needed to demonstrate we have addressed these lessons Governance - aligned to the APRA self-assessment Our Royal Commission & Self-Assessment Oversight Group is overseeing our work and reports to the Board Co-chaired by Deputy CEO and CRO, involving Group Executive Australia Retail & Commercial Banking, Group Executive Talent and Culture, Group General Counsel, GGM Communications and Public Affairs, GGM Corporate Affairs Constructive engagement with reform We have analysed all 76 recommendations and will engage constructively with Government as it implements these 63% 38% ANZ ACTIONS ANZ analysis of Royal Commission recommendations 12% 5% Requires law/rule change ANZ or industry actions underway No change recommended Not relevant to ANZ1 20% ANZ's progress on sixteen actions (June 2019) 12% Actioned 19% Due by end 2019 Due by end FY19 Ongoing 1. ANZ continuing operations 31% ANZ 21#22ROYAL COMMISSION • LEARNINGS FROM ANZ'S SUBMISSIONS Specific to the misconduct and failures to meet community standards and expectations (CSEs) that we submitted to the Royal Commission Will be mapped against work and assigned success measures to assess when they have been addressed Significant alignment with work on APRA self-assessment focus areas (see next page) Royal Commission learnings 1. We had, at times, poor product governance, including bad product design and misaligned and/or unclear T&Cs 2. The scale and scope of our activities made identifying and fixing failures difficult 3. We did not focus on remuneration's role in poor conduct 4. There was an absence of a customer mindset, meaning we were, at times, insensitive to customer circumstances 5. There was, at times, a lack of management supervision, clear accountability for tasks and responsibility for failures 6. We did not remediate customers in a competent, timely and/or consistent manner 7. Our operational risk controls did not prevent or identify staff errors, process failures or coding mistakes 8. Certain failures arose from non-compliance with the law or other standard, including as interpreted by ASIC ANZ 22#23APRA SELF-ASSESSMENT RESPONDING TO IDENTIFIED THEMES SELF-ASSESSMENT AT APRA'S REQUEST ANZ submitted its self-assessment report to the Australian Prudential Regulation Authority in November 2018. The assessment identified a number of themes across the three assessment domains of culture, accountability and governance. The themes will be addressed through initiatives aligned to five focus areas. Success measures have been defined for each focus area that will allow us to assess whether our initiatives are improving what we do and how we do it. To ensure accountability, executive owners are being allocated to each group of measures. The Board will receive quarterly reports on progress against each measure. Governance of this work is integrated with our response to the Royal Commission. FOCUS AREAS Simplification Simplification of our business, products and processes Culture Governance and accountability Remediation Management of operational risk Culture including the way we reward and recognise our people Governance and accountability including how we are held to account, and how we manage and execute change Remediation including expansion of our specialist customer remediation team Review and improvement of our operational risk framework ANZ 23#24REPORTING ON EXECUTIVE ACCOUNTABILITY OUR GOVERNANCE FRAMEWORK AND ITS OUTCOMES INDICATIVE EXECUTIVE ACCOUNTABILITY DISCLOSURE MAY INCLUDE EXECUTIVE ACCOUNTABILITY Categories of matters We will explain the governance framework under which we hold our senior executives to account Code of conduct Risk and compliance [Number] [Number] Outcome of accountability We also will start reporting on the Remuneration consequence [Number] outcomes of this governance framework Warning/advice [Number] No longer employed Commentary . [Text] [Number] ANZ 24#25ANZ 2019 ESG Investor briefing ESG INVESTOR DISCUSSION PACK SUSTAINABILITY ANZ#26ESG - • GOVERNANCE OVERVIEW ETHICS, ENVIRONMENT, SOCIAL AND GOVERNANCE COMMITTEE (EESG) The EESG Committee is one of 6 Board sub-committees (including: Audit Committee, Risk Committee, Human Resources Committee, Digital Business and Technology Committee, Nomination and Board Operations Committee). Its purpose is to oversee measures to advance ANZ's purpose, focusing on ethical, environmental, social and governance matters. The Committee generally meets four times a year. It is chaired by David Gonski and its members include Ilana Atlas, Jane Halton and Sir John Key. • ETHICS AND RESPONSIBLE BUSINESS MANAGEMENT COMMITTEE (ERBC) The Ethics & Responsible Business Committee is a leadership and decision making body that exists to advance ANZ's purpose. The Committee generally meets four times a year. It is chaired by the CEO and is comprised of senior executives from business divisions and Group functions, including Risk, Communications and Public Affairs and Human Resources. Dr Simon Longstaff from The Ethics Centre joined the Committee in June 2018 as an independent voice, bringing an ethical perspective to the complex decisions we make every day. ROYAL COMMISSION AND APRA SELF ASSESSMENT OVERSIGHT GROUP Co-chaired by Deputy CEO and Chief Risk Officer. Involves Group Executive Australia Retail and Commercial Banking, Group Executive Talent and Culture, Group General Counsel, GGM Communications and Public Affairs, GGM Corporate Affairs. Reports to the Board. CUSTOMER FAIRNESS ADVISOR Colin Neave (former Commonwealth Ombudsman) was appointed as our first Customer Fairness Advisor at the end of 2016 signalling the start of a number of changes we knew we needed to make. - • Developed customer remediation principles and dispute principles. Conducted review with an independent consumer advocate on the Royal Commission Interim Report case studies. Reports directly to the CEO. CUSTOMER ADVOCATE Works with customers and ANZ to facilitate fair complaint outcomes and minimise the likelihood of future problems. Voluntary pathway offering customers a further opportunity to resolve their complaint with us. Operates autonomously of ANZ business units. Reports to the Group Executive, Australia Retail and Commercial Banking and is bound by the Customer Advocate's findings in all cases. ANZ 26#27PURPOSE AN INTEGRAL PART OF OUR STRATEGY HELPED GUIDE OUR DECISION TO PROVIDE RELIEF TO FARMERS IMPACTED BY NATURAL DISASTERS SUSTAINABILITY FRAMEWORK INFORMED OUR APPROACH TO SUSTAINABLE AND AFFORDABLE HOUSING Affordable, secure & sustainable homes 'Healthy Home' Loan Package Environmentally sustainable solutions REBUILDING TRUST 090 FAIR AND RESPONSIBLE BANKING SHAPE A WORLD WHERE PEOPLE AND COMMUNITIES THRIVE • Currently resolving issues with more than 2.6m customer accounts¹ ENVIRONMENTAL SUSTAINABILITY HOUSING $928m in remediation charges taken since 1H17, $698m on Balance Sheet (31 March 2019) FINANCIAL WELLBEING ANZ is committed to the United Nations' Sustainable Development Goals (SDGs) and our Sustainability Framework, together with public targets that we set annually, supports the achievement of the SDGs. Our activities support 10 of the 17 SDGs: 1. NO POVERTY GENDER EQUALITY AFFORDABLE AND CLEAN ENERGY Retail and Commercial customer accounts DECENT WORK AND ECONOMIC GROWTH M INDUSTRY, INNOVATION ANDINFRASTRUCTURE REDUCED INEQUALITIES SUSTAINABLE CITIES AND COMMUNITIES 12 RESPONSIBLE CUNATE CONSUMPTION 13 ACTION AND PRODUCTION 17 FOR THE GOALS PARTNERSHIPS ANZ 27#28CREATING VALUE FOR OUR STAKEHOLDERS - 31 MARCH 2019 CUSTOMERS 8.7m total retail, commercial and Institutional customers ~150,000 net new customers over 12 months to March 2019 $289b in retail & commercial customer deposits in Australia and New Zealand $344b in home lending in Australia and New Zealand Full mobile wallet offering, including Apple Pay™, GooglePayTM, Samsung Pay™, FitBit Pay™ and Garmin Pay™ #1 Lead bank for trade services¹ EMPLOYEES 39,359 people employed (FTE) 608 people recruited from under-represented groups, including refugees, people with disability and Indigenous Australians since 2016 32.4% of women in leadership, increase from 27.9% in Sep 20142 877k hours of training provided in FY18 COMMUNITY $137m contributed in community investment in FY183 Disaster relief packages for Qld floods; Vic and Tas bushfires; NT cyclones and NSW hailstorms $1.5m in donations across FY18 and 1H19 for drought and flood relief 124,113 volunteering hours completed by employees in FY18 $1.5b in taxes incurred; money used by governments to provide public services and amenities >889k people reached through target to help enable social and economic participation in FY184 SHAREHOLDERS5 >500,000 Retail & Institutional shareholders $3.6b cash profit reported 124.8 cents earnings per share 80 cents per share fully franked dividend announced for 1H19 12.0% return on average ordinary shareholders equity All financial metrics are as at 31 March 2019 (P&L growth metrics for the half year ended 31 March 2019) unless otherwise stated. 1. Peter Lee Associates Large Corporate and Institutional Transactional Banking surveys, Australia and New Zealand 2004-2018. 2. Measures representation at the Senior Manager, Executive and Senior Executive Levels. Includes all employees regardless of leave status but not contractors (which are included in FTE) 3. Figure includes foregone revenue of $107 million. 4. Through our initiatives to support financial wellbeing including financial inclusion, employment and community programs, and targeted banking products and services for small businesses and retail customers. 5. On a cash profit continuing operations basis. ANZ 28#29SUSTAINABILITY PERFORMANCE TRENDS COMMUNITY INVESTMENT¹ Total community investment ($m) MONEYMINDED & SAVER PLUS Estimated # of people reached ENVIRONMENTAL FINANCING $15B TARGET Funded and facilitated ($b) 131 90 76 75 88,308 137 80,074 69,826 65,549 59,461 14.6 11.5 10 6.9 5 2.5 2014 2015 2016 2017 2018 0 2014 2015 2016 2017 2018 2016 2017 2018 HY19 EMPLOYEE ENGAGEMENT² Employee engagement score (%) 73 76 74 72 73 ENVIRONMENTAL FOOTPRINT TARGET Scope 1 & 2 greenhouse gas emissions (k tonnes CO2-e) 212 WOMEN IN LEADERSHIP³ Representation (%) 210 194 181 30 27.9 29.5 29.9 31.1 32.0 32.4 171 20 10 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 HY19 1. Figure includes forgone revenue (2018 = $107m), being the cost of providing low or fee-free accounts to a range of customers such as government benefit recipients, not-for-profit organisations and students 2. The 2017 engagement survey was run as a pulse survey sent to 10% of the bank's employees with a 57% response rate. For all other years the employee engagement survey was sent to all staff 3. Measures representation at the Senior Manager, Executive and Senior Executive Levels. Includes all employees regardless of leave status but not contractors (which are included in FTE) ANZ 29#30EXTERNAL REPORTING RECOGNITION MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM Highest ranked Australian bank on the Dow Jones Sustainability Index, scoring 83/100 in 2018 FRAMEWORKS CDP DISCLOSURE INSIGHT ACTION We achieved a CDP climate disclosure score of A- in 2018 1!!! 135 FTSE4Good Member of the FTSE4Good Index WGEA Employer of Choice for Gender Equality AWEI PLATINUM EMPLOYER 2018-19 leader in workplace gender equality 2019 Platinum Status LGBTI Employer of Choice for longevity in high performance (2015 to 2019) WE SUPPORT UN GLOBAL COMPACT GRI Empowering Sustainable Decisions Our sustainability reporting is prepared in accordance with the Global Reporting Initiative Standards (Comprehensive level) We have been a signatory to the United Nations Global Compact since 2010 TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES We report in line with using the recommendations of the Financial Stability Board's (FSB) Task Force on Climate-Related Disclosures (TCFD) EQUATOR PRINCIPLES As an Equator Principles Financial Institution signatory we report on our implementation of the Principles in our Sustainability Review ANZ 30#31ANZ 2019 ESG Investor briefing ESG INVESTOR DISCUSSION PACK REMEDIATION ANZ#32CUSTOMER REMEDIATION TOTAL PRE-TAX IMPACT $m -533 -175 -102 -51 -67 1H17 2H17 1H18 2H18 1H19 CONTINUING OPERATIONS ($m) -352 -100 2H18 1H19 Revenue Expenses Financial impact • $175m ($123m post tax) charge in 1H19 • $928m ($657m post tax) charges since 1H17 $698m provisions on balance sheet at 31 March 2019 Progress to date DISCONTINUED OPERATIONS¹ • ($m) Salaried Financial Planner² largely addressed in prior years -181 • -75 • Aligned Dealer Group remediation provided for in 2H18 Retail Banking product & service review well progressed 2H18 1H19 Revenue Expenses Primarily compensation for customers receiving inappropriate advice or for services not provided including those relating to ANZ's former Aligned Dealer Groups (ADGs). ANZ completed the sale of its ADGs to IOOF on 1 October 2018. 1. 2. Fee for no service ANZ 32#33ANZ 2019 ESG Investor briefing ESG INVESTOR DISCUSSION PACK ROYAL COMMISSION ANZ#34RESPONDING TO THE ROYAL COMMISSION 'IDENTIFIED SIXTEEN ACTIONS THAT WE CAN TAKE NOW' COMMITMENT On 20 February 2019, ANZ announced it would take immediate steps to implement the first phase of its response to the recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. ANZ is implementing 16 initiatives to improve the treatment of retail customers, small businesses and farmers in Australia as well as publicly reporting on the remediation of existing failures, including: • Providing farmers with early access to farm debt mediation as well as favouring 'work-outs' over either enforcement or appointing external managers Not charging farmers default interest in areas hit by drought or other natural disasters Creating a dedicated phone service and easier account identification options for Indigenous customers • Proactively contacting customers paying little off persistent credit card debt to encourage them to move to lower cost options Removing overdrawn and dishonour fees from our Pensioner Advantage accounts Engaging as a 'model-litigant' in situations where ANZ is involved in a court process with individual retail or small business customers; and Committing to the Australian Financial Complaints Authority's "look back" under its new limits Progress against the 16 commitments (within the below categories) is provided in the appendix slides ANZ 34#35ROYAL COMMISSION SIXTEEN ACTIONS - UPDATE ON 20 FEBRUARY COMMITMENTS Commitment Retail customers 1. Make our products fairer and better matched to our customers by: Update on 20 February commitments 1.1 Removing overdrawn and dishonour fees on our Pensioner Advantage account 1.2 Accelerating work on how we design and distribute products so that customers get products that meet their needs • ANZ has removed the Overdrawn Fee and the Dishonour Fee on our ANZ Pensioner Advantage account. • • Our work continues to look at how we design and sell products and the use and value which customers get from our products. Most recently, this includes the establishment of an ongoing process to contact credit card customers who are carrying persistent debt (as per commitment 3.1). The design and distribution obligations in the Treasury Laws Amendment Bill 2018 have now been passed through Parliament. An assessment is underway on the design and distribution obligations to help inform our work and commence addressing the obligations for when they become law. 2. Improve our service to Aboriginal and Torres Strait Islander (ATSI) customers in remote communities by: 2.1 Setting up a dedicated phone service that will help ATSI customers manage their banking • • ANZ has established a dedicated ATSI telephone service that has been in operation from 1 May 2019. The telephone service is staffed by 20 Melbourne based bankers trained in indigenous cultural awareness and vulnerable customers training. The telephone service initially services existing ANZ customers with service enquiries and new deposit product fulfilment. Future development of the ATSI telephone service will build on learnings from the initial phase, and the scope will eventually be expanded to include on-boarding of new ANZ customers and services to inform and educate ATSI customers of value-add services within ANZ. 2.2 Giving ATSI customers easier options to prove their identity when opening and using a bank account From 1 May 2019: • • ANZ introduced a new Referee Form, which makes it easier for indigenous customers to prove their identity. The ATSI telephone service uses TextMe SMS message to provide identified ATSI customers with a dedicated telephone number. Manual Security Questions have been revised to make them more relevant and easily understood by ATSI customers. In formulating questions, feedback was sought from ANZ's Indigenous Advisory Group. ANZ 35#36ROYAL COMMISSION SIXTEEN ACTIONS - UPDATE ON 20 FEBRUARY COMMITMENTS Update on 20 February commitments Commitment Retail customers 3. Helping customers by: 3.1 Contacting consumer credit card customers who are carrying persistent debt and paying little off to get them on to lower rate cards and assist them to pay their debt faster 3.2 Contacting customers in receipt of eligible Centrelink or Veterans' Affairs benefits to help them move to low-cost basic bank accounts Farming customers • • In March 2019 we established an ongoing process to contact credit card customers who are carrying persistent debt. We provide these customers financial education on how credit cards work and offer assistance plans to help them to pay their debt faster. Our initial focus is on contacting customers with a low rate credit card product and providing them an option to transfer to an instalment plan at a reduced rate of 7.0% p.a. We will subsequently contact customers on high rate credit card products and provide them an option to transfer to a low rate card or instalment plan. To date we have attempted to contact 4,481 customers under this initiative, connecting with 1,182. Of the 1,182 customers contacted 253 (21%) accepted an instalment plan and 400 (34%) appreciated the financial education. The remaining 529 (45%) customers chose to take no action. We have established an ongoing process to contact customers in receipt of eligible Centrelink or Veterans' Affairs benefits to offer them a move to low-cost basic bank accounts. From June 2019 we will contact 10,000 customers a week under a staggered approach (total customer contact ~350,000). 4. Publish clear principles on how we help farmers including through: • Principles outlining our assistance to famers will be published by September 2019. • Key inclusions are outlined below. 4.1 Not charging farmers default interest in areas declared to be affected by drought or other natural disasters 4.2 Valuing farm land separately from the loan origination process 4.3 Giving farmers early access to farm debt mediation if they get into difficulties and supporting a national scheme of farm debt mediation 4.4 Reinforcing our preference for working out difficulties over enforcing agricultural loans or appointing an external manager • • • By September 2019 ANZ will publish principles to make clear our commitment to not charge farmers default interest in areas declared to be affected by drought or other natural disasters. From 29 March 2019, ANZ has withdrawn the authority of relationship managers to approve their own internal appraisals of farm land. All such appraisals are independently approved. This change ensures independence between the valuation process and the loan approval process. ANZ is continuing our work on implementing the commitments that we have publicly made to assist our farming customers experiencing financial difficulties. By September 2019 ANZ will publish principles to make clear our commitment to early access to farm debt mediation, with the aim being to provide farmers with every opportunity to explore all work out options available. Enforcement action is a measure of last resort only after all other options have been explored. ANZ 36#37ROYAL COMMISSION SIXTEEN ACTIONS - UPDATE ON 20 FEBRUARY COMMITMENTS Commitment Update on 20 February commitments Remuneration 5. 6. Redesign how we manage and reward our people to better focus on the interests of our customers, the long-term health of the bank and team, rather than individual, outcomes Continue to implement the recommendations of Mr Stephen Sedgwick, including by responding to any observations on how we can improve Accountability, culture and governance 7. Strengthen our accountability and consequence framework so that when things go wrong, we fix them and consistently hold executives to account . • 8. Supplement existing culture audits and ensure we act on identified problems • 9. Allocate specific responsibility to our BEAR¹ executive(s) for our products and complaints about them 10. Make our BEAR¹ executives explicitly responsible for preventing conduct that harms customers 11. Require our BEAR¹ executives to be open, constructive and cooperative with the Australian Securities and Investments Commission 1. Banking Executive Accountability Regime ANZ is working to launch a new approach to reward, remuneration and performance management. This is scheduled to launch in the last quarter of 2019. ANZ's delivery of Stephen Sedgwick's Retail Banking Remuneration Review recommendations is 75% complete. With the exclusion of Broker remuneration which is being managed at the industry level we are on track to deliver all recommendations by the end of 2019, ahead of October 2020 deadline. • • • • We have strengthened the principles and guidance that underpin our Accountability Framework, including the development of: Consequence Management Principles that guide a more consistent approach to consequence management across the bank, including impacts on remuneration. • Accountability Principles that define the various categories of accountability (e.g. direct, indirect, collective). Accountability Review Guidance to guide staff on when and how to undertake accountability reviews. We have commenced implementation and remain on track to complete by end of 2019. Actions addressing problems identified in the cultural reviews by Internal Audit are formally documented and tracked to completion. An Enterprise Culture Steering Group has been established, membership including the CEO, GM Talent & Culture and CRO. Meeting twice yearly ExCo members are required to present the current cultural strengths and concerns of their business, as well as actions taken and planned which are aimed at shifting the culture towards ANZ's desired culture. A new feedback tool has been launched, aimed at enabling greater self-awareness for leaders. The tool helps track outcomes of development and also provides an additional voice for our employees that can then be acted upon. We have recently reviewed our approach to culture measurement and we are now in the process of testing a new framework. The new approach has been designed to measure progress towards (or away from) our desired culture across our 6 different culture pillars, utilising a range of indicators some of which are consistent across businesses and others which are locally defined. • ANZ's BEAR responsibilities have been documented and assigned to each relevant executive. • APRA is currently finalising its BEAR product rules, expected by the end of 2019 calendar year. These rules will be utilised to finalise ANZ's product based BEAR responsibilities. ANZ 37#38ROYAL COMMISSION SIXTEEN ACTIONS - UPDATE ON 20 FEBRUARY COMMITMENTS Update on 20 February commitments Commitment Remediation 12. Publicly report on how we are fixing our significant failures, including the nature of the issues and our progress on paying customers back. This will include the remediations identified at the Royal Commission. This transparency will add to our commitment to fix failures fairly and quickly in our Remediation Principles¹ Dispute resolution 13. Commit to public principles on managing complaints and disputes from retail and small business customers and acting as a model litigant if we end up in court with them individually • ANZ has reported half year progress against FY19 Fair and Responsible Banking sustainability targets in respect of remediations. • New Dispute Resolution Principles, incorporating model litigant guidelines, were released publicly on 15 April 2019. 14. Commit to the Australian Financial Complaints Authority's 'look back' under its new limits, appoint our Customer Advocate to lead this work and fully cooperate with AFCA as it resolves disputes Financial Advice 15. Focus on how we provide ongoing financial advice to customers so they always get the service they pay for and value • • • • • The principles apply to our people and our representatives (e.g. external law firms) when managing individual retail and small business customer complaints, disputes and litigation in Australia. ANZ has appointed our Customer Advocate to lead this work and has written to AFCA confirming its consent to consider 'look back' disputes. ANZ will continue to fully cooperate with AFCA as it resolves disputes and is currently scoping work and staffing requirements in preparation to commence resolving these disputes from 1 July 2019. A team manager has been appointed with case manager recruiting being finalised. Workflow systems have been designed and will shortly be implemented. ANZ continues to participate in industry consultation regarding the draft AFCA Rule changes and supplementary Operational Guidelines that set out how the program will operate. ANZ already allows customers to opt in annually to ongoing fee arrangements and is well placed to leverage existing processes and controls to implement these changes on a compulsory basis. We are currently focussed on delivering a new model over the next 12 months where advice is delivered to existing customers and then fees are only charged after the delivery of the advice. In this model there will be no ongoing fee arrangements requiring annual review. On 17 May 2019 ANZ has announced it will no longer offer its Prime Access financial advice service to new customers and will phase it out for current customers over the next 18 months. 16. Tell our customers in writing of areas where our financial advisors may not be independent, impartial or unbiased • ANZ will make amendments to our disclosure documents by July 2019. 1. ANZ's Remediation Principles are set out on page 9 of ANZ's 2018 Annual Review. The 2018 Annual Review is available at: https://shareholder.anz.com/sites/default/files/anz 2018 annual review final.pdf ANZ 38#39ANZ 2019 ESG Investor briefing ESG INVESTOR DISCUSSION PACK CARBON ANZ#40REVIEWING OUR CARBON COMMITMENTS AND DISCLOSURE SUPPORTING OUR CUSTOMERS TO TRANSITION TO A LOW CARBON ECONOMY The Board EESG Committee was presented with options for how ANZ might best support its customers to transition to a low carbon economy, in line with goals of the Paris Agreement. Two principles informed the options presented: All sectors of the economy have a role to play in driving the transition. The transition should be orderly and 'just', giving careful consideration to the impacts on affected workers and communities. The paper discussed ANZ's largest sectoral exposures and proposed working with high emitting customers in a range of sectors to support and encourage their transition efforts. Social, financial and customer risks and opportunities were outlined for each option to enable informed and balanced decisions. Outcome: We announced our revised approach to climate change in December 2018. This included a public target to encourage and support 100 of our largest emitting customers in the energy, transport, buildings and food, beverage and agricultural sectors to establish or strengthen existing low carbon transition plans, by 2021. Relevant ESG target: Amended our risk appetite and customer assessment processes to increase emphasis on climate change risks and management. ANZ 40#41LOW CARBON & SUSTAINABLE FINANCE IS INCREASING AND OUR EXPOSURE TO CARBON-INTENSIVE SECTORS IS DECREASING OUR EXPOSURE TO THE MOST CARBON-INTENSIVE ENERGY SOURCES ARE DECLINING ANZ's funding and facilitation of renewables and gas-fired power is increasing relative to coal-fired power. Our sustainable financing commitment has reached $14.6bn since 2015. Our exposure to thermal coal mining is a small portion of our overall lending (at 31 March 2019 our exposure was ~$944m, less than 0.1% of our Group exposure at default). We expect our thermal coal exposure to decline over time, as it has since 2015. 13% Project Finance Power Generation Portfolio (Sept' 18) 10% Renewables Gas WE ARE WORKING WITH OUR CUSTOMERS TO SUPPORT THE TRANSITION TO CLEANER ENERGY AND ENVIRONMENTALLY SUSTAINABLE PRACTICES We provide a range of finance and advisory services to the clean energy sector and other customers supporting their investment to reduce or eliminate greenhouse gas emissions or minimise waste. We play a role linking capital markets with sustainable investment opportunities, including infrastructure. 76% Coal Our direct lending to renewable energy has increased since 2015 to reach $1.076bn in 2018. ANZ 41#42RESOURCES PORTFOLIO & MANAGEMENT RESOURCES EXPOSURE AT DEFAULT (EAD) BY SECTOR ($b) TOTAL EAD (Mar-19): $15.6b (Resources exposures as a % of Group EAD: 1.6%) THERMAL COAL EXPOSURE within 'coal mining' sector ($b) 9.4 8.6 7.8 7.2 7.0. 7.6 7.4 7.3 1.70 2.0 1.5 1.0 0.5 1.18 0.94 0.81 0.75 Sep-15 Sep-16 Sep-17 Sep-18 Mar-19 4.9 4.6 4.0 3.7 3.5p 4.4 4.4 4.6 2.3 1.8 1.5 1.4 1.1 1.0 1.4 1.5 2.9 2.4 1.7 1.4 1.4 1.2 1.2 1.5 1.3 1.1 1.1 0.9 1.0 0.9 0.9 0.8 Oil & Gas Extraction Sep-15 Mar-16 Sep-16 Mar-17 Metal Ore Mining Sep-17 Coal Mining Services To Mining Other Mining Mar-18 Sep-18 Mar-19 EAD & CREDIT QUALITY (Mar-19) $7.3b $0.6b $2.6b 23% 18% $5.1b 12% • 39% 77% 82% 88% 61% AUS NZ ASIA EA & Other Sub-Investment Grade Investment Grade RESOURCES PORTFOLIO MANAGEMENT Portfolio is skewed towards well capitalised and lower cost resource producers. 27% of the book is less than one year duration. Investment grade exposures represent 74% of portfolio vs. 67% at Mar 18 and Trade business unit accounts for 19% of the total Resources EAD. Mining services customers are subject to heightened oversight given the cautious outlook for the services sector. Increased coal mining exposure in FY18 / 1H19 primarily reflects mergers and acquisitions activity related to existing mines, i.e. predominantly metallurgical coal assets sold by diversified miners to existing customers. Financing is mainly used to support continuing operations, and not mine expansions. Thermal coal exposure is currently $944m. We expect our thermal coal exposure to decline over time, as it has since 2015, though there was an increase in 1H19 due to one transaction for an existing customer and a reclassification of one exposure. Our exposures to thermal coal are primarily concentrated in a small number of Australian-based miners. ANZ 42#43SUSTAINABLE FINANCE CASE STUDY: SYDNEY AIRPORT AUD$1.4 BILLION SUSTAINABILITY LINKED LOAN FACILITY AUD$1,400,000,000 Transaction Highlights Sydney Airport Sydney Airport Finance Company Pty Ltd 3/4/5 year Sustainability Linked Loan ANZ Joint Sustainability Coordinator and Bookrunner Borrower: Tenor: Size: Loan Type: Loan Structure: Margin: Third Party Verification: December 2018 Transaction Summary Sydney Airport Finance Company Pty Limited 3/4/5 years AUD 1,400,000,000 Sustainability Linked Linked to sustainability targets ESG Risk Rating Report provided by Sustainalytics pre-deal & annually Sydney Airport Finance Company Pty Limited • . • . • • • • • Background Sydney Airport (SYD) sought to enhance their management of Environmental, Social and Governance (ESG) risks via a syndicated Sustainability Linked Loan (SLL) facility. The SLL establishes a direct link between SYD sustainability performance and cost of capital. The issuance of the first syndicated SLL in Australia, ties the airport's sustainable objectives and outcomes to its funding program or cost of capital. The SLL offers an alternative to the Green Loan / Green Bond "Use of Proceeds" approach allowing borrowers to leverage their sustainability credentials and ambitions to access finance for general corporate purposes. First syndicated sustainability linked loan in Australia ANZ supported SYD in this first syndicated SLL in Australia and the largest syndicated airport SLL globally. The SLL incentivises SYD to improve its sustainability performance against a set of ESG criteria. Sustainalytics will evaluate SYD's ESG performance annually, SYD is rated 15.1 (4th of 38 airports). • The sustainability linked discount rewards SYD for improving sustainability performance. SYD demonstrates its commitment to sustainability with a margin premium if sustainability performance regress to a certain level. ANZ's value add ANZ worked closely with SYD and Sustainalytics to understand key drivers of the ESG rating and determine an achievable, but ambitious target rating. ANZ worked with SYD and its co-bookrunner to determine the appropriate legal framework. The target ESG Risk Rating is deliberately ambitious, ensuring that SYD remains committed and accountable to improving its sustainability performance throughout the SLL. ANZ 43#44IMPLEMENTATION OF CUSTOMER TRANSITION PLAN TARGET Background Our climate change policy, includes a commitment to "encourage and support 100 of our largest emitting customers in the energy, transport, buildings and food, beverage and agricultural sectors to establish or strengthen their low carbon transition plans, by 2021". How will success be measured with this target? Customers further reporting on their transition plans by 2021 to provide stakeholders with public, specific and time bound information. We are aiming to engage with 50 customers before the end of FY19. Which customers are in scope? The customer selection process is informed by criteria including: Direct emissions, ie emissions from company owned or operated assets - Indirect emissions from their 'value chains', ie both upstream and downstream from their operational footprint - The size and nature of our relationships was also considered to maximise prospects for deeper engagement Next steps • ANZ will publicly report progress against the target in our FY reporting. We will also provide six-monthly updates to ERBC and to the Board EESG Committee. ANZ 44#45EXAMPLE CUSTOMER DISCLOSURE TOWARDS LOW CARBON FUTURE DEXUS - BUILDING OWNERSHIP AND MANAGEMENT DEXUS HAS A RANGE OF TARGETS AND INITIATIVES AIMED AT HELPING THEM TRANSITION TO A LOW CARBON FUTURE 1. Tightening their cornerstone carbon intensity reduction target from 75% to 82% by 2050 (compared with 2007 levels). The new emissions intensity goal for 2050 is 0.15kg CO2/kWh. 2. New interim carbon intensity reduction targets of 40% by 2030 and 60% by 2040 (compared with 2007 levels). These new targets were set to better align with the Paris Agreement decarbonisation trajectory and UN SDGS. 3. New renewable energy capacity target of 30% and non-carbon-emitting target of 40% by 2030. Sustainability Property portfolio performance Advancing pathway to net zero, while creating value for our customers Improving energy efficiency Progressed minimum 5 star NABERS Energy rating across 904,500sqm of the office portfolio towards target of 1,000,000sqm by 2020 17 Dexus 2019 Half Year Results Presentation Increasing renewables Supporting Dexus's Net Zero by 2030 target, agreed terms for one of Australia's first supply-linked renewable Energy Supply Agreements with Red Energy, providing long-term price certainty and driving down energy costs for our customers Environmental performance Recognised by Carbon Disclosure Project (CDP) for leadership in environmental performance reflecting our commitment to addressing climate change impacts including our goal to achieve net zero emissions by 2030 dexus ANZ 45#46EXAMPLE CUSTOMER DISCLOSURE TOWARDS LOW CARBON FUTURE BHP - DIVERSIFIED MINER BHP BHP has an integrated strategy that focuses on: reducing operational GHG emissions; addressing value chain (scope 3) emissions; managing climate-related risk and opportunity; and working with others to enhance the industry and global response via policy engagement, support for market mechanisms and disclosure. Commitments and initiatives related to transition planning include: 1. Targets to hold net operational emissions at or below FY2017 levels by FY2022 while continuing to grow their business, and achieve net- zero operational emissions in the latter half of this century, consistent with the Paris agreement. 2. Investments in emerging and existing technologies that make step-change reductions in GHG emissions, both from their own operations (including introduction of electric vehicles into mining fleet) and from the downstream processing and use of their products (e.g. CCUS for steelmaking). 3. Active stewardship role working with customers, suppliers and other value chain participants to influence reductions in scope 3 emissions. 4. Increasing integration of climate risk (both threats and opportunities) into strategic planning via scenario analysis and internal carbon pricing. ANZ 46#47FURTHER INFORMATION ANZ Personal Business Corporate Search Q a Log on Our Shareholder information shareholder.anz.com Sustainability Our approach Community Workplace participation and diversity Reporting About us Sustainability CORPORATE SUSTAINABILITY We are focused on growing our business responsibly. Sustainability at ANZ is about ensuring our business is managed to take account of social, environmental and economic risks and opportunities. By taking these factors into consideration across all areas of our business, we can create and preserve value for customers, shareholders, our people, the environment and the communities in which we operate. Our approach is set out on our website. Each year we also set public sustainability targets and a corresponding Group-wide program of work to support the delivery of our business strategy. We formally report on our performance through the publication of our interim and full year Sustainability Reviews. Find ANZ Contact View the 2018 Sustainability Review Find out more (PDF 7.48MB) 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 Manager Investor Relations +61 3 8655 0878 +61 466 848 027 [email protected] Sustainability Our approach Sustainability Framework Fair responsible banking Workplace participation & diversity Environmental sustainability Reporting & performance Community investment Housing Financial wellbeing 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] Mary Karavias Associate Director Debt Investor Relations +61 3 8655 4318 [email protected] DISCLAIMER & IMPORTANT NOTICE: The material in this presentation is general background information about the Bank's activities current 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 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 including statements regarding our intent, belief or current expectations with respect to ANZ's business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices. When used in this presentation, the words "estimate", "project", "intend", "anticipate", "believe", "expect", "should" and similar expressions, as they relate to ANZ and its management, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such 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. ANZ 47