2022 Approach to Climate Change Investor Reference Pack slide image

2022 Approach to Climate Change Investor Reference Pack

1. 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
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