Australia and New Zealand Banking : 2021 Half Year ESG Targets Update

2021

HALF YEAR

E⁜S⁜G TARGETS

UPDATE

Approved for distribution by

ANZ's Continuous Disclosure Committee

• May 2021

2021

HALF YEAR E S G TARGETS UPDATE

Each year we set public environmental, social and governance (E S G) targets, many of which are aligned with the United Nations Sustainable Development Goals.

Our targets reflect our E S G priorities - financial wellbeing, environmental sustainability and housing, and our commitment to fair and responsible banking. The E S G targets also support our purpose - to shape a world

in which people and communities thrive - and the delivery of our business strategy.

Progress against our targets is reviewed by the executive Ethics and Responsible Business Committee quarterly and twice a year by the Board Ethics, Environment, Social and Governance Committee.

We are making good progress against our E S G targets and are on track to achieve them (as denoted by the sideways arrows used throughout this update). Unless otherwise stated, performance is at 31 March 2021.1

Our continued response to COVID-19

Our focus on improving ESG performance - including our response to the Royal Commission - as well as efforts to simplify our business, means we are well positioned to continue supporting customers, employees and the community through the pandemic. Highlights include:

Customers

• Our COVID-19 Statement of Intent was released in September 2020, and revised in January 2021, outlining our commitment to support Retail, Small Business and Commercial customers through the pandemic. Relief measures available included loan repayment deferrals for individuals and businesses
  - approximately 120,000 deferrals for home loans and business loans were granted.
• Whilst new COVID-19 payment deferrals were no longer issued after 31 January 2021, we continue to assist customers experiencing ongoing financial hardship through our existing hardship support program. As at 31 March 2021, 95% of home and business loans provided with loan deferrals have now returned to payment and another 2% have returned to repayment via a restructure of their loan.

1. Unless otherwise stated, targets are at Group level and monetary amounts in this document are reported in Australian dollars. This information has not been independently assured. K P M G will provide assurance over A N Z's full-year performance against targets in its annual E S G reporting to be released in November 2021.

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2021

HALF YEAR E S G TARGETS UPDATE

(Continued)

Community

• During 2020 we moved to online delivery of our flagship financial education programs, MoneyMinded and Saver Plus. Since 1 October 2020, Saver Plus (our matched savings program developed with the Brotherhood of St Laurence in 2003) has enabled 1,951 lower income Australians to save almost $1 million towards their families' education costs. Nearly 2,000 people have built their financial skills through MoneyMinded Online in the same period.
• We introduced a temporary waiver of international money transfer fees for online currency payments made from Australia and New Zealand into ten Pacific countries (now offered until September 2021). The waiver facilitates the flow of money into the Pacific, supporting communities heavily impacted by a lack of international tourism.
• We are deeply saddened by the unfolding crisis in India and are doing all we can to support our 8,000 employees and their families through this difficult time. We recently* made a donation of $1million to support World Vision Australia's India COVID-19 Appeal, and have also set aside an additional $1million to match - dollar for dollar - employee and customer donations. The donation will go towards the immense effort already underway in India and provide funding for more beds, oxygen machines and hospital medical supplies in some of the worst hit districts.

• 30 April 2021

Employees

• We continue to support employees either working from home or returning to the office, ensuring we comply with applicable government regulations.
  Australian employees have been returning to the office since mid-April 2021, with many choosing to maintain the flexibility of working from home a few days a week.
• Initiatives to support employees' mental and physical health and wellbeing include access to digital resources (including our HealthyMe app) and online events such as webinars and conversations with A N Z leaders and external experts. Employees have been offered reimbursements for home office equipment, to help create a safe and comfortable home working space.

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FINANCIAL WELLBEING

Improving the financial wellbeing of our people, customers and communities by helping them make

the most of their money throughout their lives

Target	Progress
Support 250,000 customers to build	Since October 2020, we have supported around 85,000 customers to build
a savings habit, by end 2021. (Australia/	a savings habit. This includes:
New Zealand)	•	around 2,000 customers who have been recruited to Saver Plus; and
	•	around 83,000 customers who have set savings goals using the 'set a
		savings goal' feature in the ANZ App (on average, customers set 1.25
		goals). Over 84,000 goals have been achieved or are being actively
		pursued.
	Since the introduction of the 'set a savings goal' feature in October 2019,
	around 429,000 goals have been set.
Publish Adult Financial Wellbeing Research	We have briefed our Australian and New Zealand External Steering
to inform our product design and financial	Committees on the status of the questionnaire. We are currently reviewing
literacy program delivery, by end 2022.	their feedback.
	We have engaged market research agencies to support development of
	the questionnaire.
	Survey field work is due to commence in May 2021.
Establish seven new partnerships	We have established a new partnership with 'Fruition Horticulture Bay of
to expand the reach and improve impact	Plenty' (FHBoP), a registered Education Provider that provides independent
of MoneyMinded for people experiencing	advice and services to clients in the horticultural industry in New Zealand.
vulnerability, by end 2023.	FH  BoP estimate that they will likely be able to deliver MoneyMinded Pacific
	content to 1,000+ Recognised Seasonal Employees each year once border
	restrictions ease.

We have signed a Memorandum of Understanding with Reserve Bank of Fiji, to help Fijians better manage their funds through MoneyMinded.

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ENVIRONMENTAL SUSTAINABILITY

Supporting household, business and financial practices that improve environmental sustainability

Target	Progress
Fund and facilitate at least $50 billion	Since October 2019, we have funded and facilitated $13.95 billion in
by 2025 towards sustainable solutions for	sustainable finance transactions including green, social and sustainability
our customers, including initiatives that	bonds, sustainability-linked and green loans, renewable energy and
help improve environmental sustainability,	affordable housing, $7.94 billion of which is funded.
support disaster resilience, increase access	This represents a $4.87 billion increase in the first half of FY2021, keeping
to affordable housing and promote financial
us on track to achieve our target by 2025 (currently $1.45 billion ahead of
wellbeing.
our initial forecast position).
Encourage and support 100 of our largest	We have engaged with 98 of our largest emitting business customer to
emitting customers to establish, and where	support them to establish, or strengthen, low carbon transition plans.
appropriate, strengthen existing low carbon	The engagement has provided us with a reasonable 'baseline' for how
transition plans, by end 2021.
these customers are responding to climate risks and opportunities. We
	have assessed their plans and grouped them into categories ranging from
	'advanced' to 'no public plans'.
	The results of the assessment have been discussed with our Board Ethics,
	Environment, Social and Governance Committee and continue to inform
	our engagement with our largest emitting customers.
Develop an enhanced climate risk	We have formed a Steering Committee within Group Risk to oversee the
management framework that strengthens	development of the enhanced climate risk management framework.
our governance and is responsive to climate	The Committee will act as a key sponsor for each of the working groups
change, by end 2022.
or 'streams', helping us to meet the expectations of external stakeholders,
	including regulators and investors.

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