Australian Housing Dynamics and Affordability slide image

Australian Housing Dynamics and Affordability

CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)¹ Governance Board Risk Committee oversees management of climate-related risks Board Ethics, Environment, Social and Governance Committee oversees and approves climate- related objectives, goals and targets Ethics and Responsible Business Committee (executive management) oversees our approach to sustainability and reviews climate-related risks Strategy Low carbon financial products and services Staff training on transition planning Reducing our own operational footprint Focus on a 'just and orderly' low carbon transition UNEP FI² TCFD group that issued recommendations on portfolio transition and physical risks • Analysis of flood-related risks for home loan portfolio in a major regional location of Australia ⚫ Flood-related analysis and test-pilot of socio-economic indicators for customer financial resilience Risk Management Climate-related risks identified as potential credit risk • Climate change risk added to Group and Institutional Risk Appetite Statements Climate change identified as a Principal Risk and Uncertainty in our UK Disclosure and Transparency Rules Submission Guidelines and training provided to 1,000 of our Institutional bankers on customer transition plans Enhanced analysis and credit terms applied to agricultural purchases in certain regions New agribusiness customers assessed for climate resilience Metrics & targets 29 engagements with large emitting customers to establish transition plans - targeting 100 customers by 2021 $19.1 billion funded and facilitated in environmentally sustainable solutions Declining exposure to the most carbon-intensive energy; thermal coal mining exposures halved since 2015 100% renewable electricity for our operations by 2025, with our emissions targets aligned with Paris Agreement goals 1. A Financial Stability Board Task Force released recommendations on financial disclosures in June 2017 to help investors better understand climate-related risks and opportunities. ANZ supports the TCFD recommendations and is using them to guide its disclosures 2 United Nations Environmental Programme for Financial Institutions ANZ 108
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