Australia and New Zealand Banking : ANZ 2020 ESG Supplement

9 November 2020

Market Announcements Office

ASX Limited

Level 4

20 Bridge Street

SYDNEY NSW 2000

ANZ 2020 ESG Supplement

Australia and New Zealand Banking Group Limited (ANZ) today released its 2020 ESG Supplement.

It has been approved for distribution by ANZ's Ethics, Environment, Social and Governance Committee.

Yours faithfully

Simon Pordage

Company Secretary

Australia and New Zealand Banking Group Limited

Australia and New Zealand Banking Group Limited ABN 11 005 357 522

ANZ Centre Melbourne, Level 9A, 833 Collins Street, Docklands VIC 3008

2 0 2 0 E S G S U P P L E M E N T

Overview	Fair and responsible	Environmental	Housing	Financial	Voluntary tax	ESG data	KPMG assurance
	banking	sustainability		wellbeing	transparency	pack	opinion

COVER STORY

Mount Zero Olives

Mount Zero Olives, home to Jane and Neil Seymour, is an organic olive grove set on about 200 acres at the base of Grampians, in the Wimmera district of regional Victoria.

"We bought this property back in the early 1990s following the recession," says Neil. "I grew up on an apple orchard and had some horticultural knowledge, but starting Mount Zero for us was really about establishing a business that valued sustainability, regionalism, provenance and quality produce."

Jane and Neil's son, Richard Seymour, is Mount Zero's General Manager, overseeing marketing, supply chain and business development.

"Early on we knew we could either be a small producer selling to local markets, or we could steer in a direction that would see us become a strong, locally based business. We made a commitment to grow and diversify, while still

keeping true to the values of where we're from and what we stand for," says Richard.

According to Richard, underpinning Mount Zero's success is its focus on biodynamic and organic farming, the use of native ingredients endemic to the region, and strong links to the local Indigenous community.

"In April each year, the local Indigenous community helps us get out on a nearby pink lake and scrape up the salt during harvest time. For every kilo of salt we sell, $1 goes back to the land council to support local initiatives."

"We're also privileged to work with Aunty Nancy, an elder who grew up on a mission close to the lake, for all the artwork on our packaging."

Although currently having to reshape the business in response to COVID-19, Mount Zero is no stranger to adversity, having survived lengthy periods of drought, as well as bushfires.

"In some respects, adversity is a driver of change in business and it's actually driven a lot of positivity for us. First with diversifying and working with grain and lentil growers in response to the drought, and now with COVID-19 and pivoting from selling to restaurants to consumers directly."

ANZ has a long history of supporting the agricultural sector in Australia, and customers like Mount Zero align with our values and our focus on environmental sustainability and social and economic participation.

CONTENTS

Overview	1
Our 2020 reporting suite	1
2020 ESG performance snapshot	2
COVID-19	3
About our business	4
ESG governance and risk management	5
What matters most	6
Stakeholder engagement	9
Our ESG targets	11
Fair and responsible banking	13
Improving conduct and culture	13
Employee engagement, wellbeing
and development	15

Improving customer outcomes	17
Supporting customers experiencing
vulnerability	21
Managing customer complaints	23
Improving customer experience
through digital solutions	25
Cyber security, data protection
and privacy	27
Financial crime	30
Our approach to human rights	32
Managing ESG risks and opportunities
in our supply chain	35
Responsible business lending	37

Environmental sustainability	40
Reviewing our approach to
climate change	40
Supporting the transition to a net
zero carbon economy	42
Reducing our environmental footprint	46
Housing	49
Financial wellbeing	52
Workplace diversity and inclusion	57
Helping create opportunities for
Indigenous Australians	60
Building an accessible and inclusive bank	62
Community investment	65
Voluntary tax transparency	70

ESG data pack	72
UN Principles for Responsible Banking
self-assessment	72
UNGP Reporting Framework	80
Responsible business lending	82
Equator Principles	85
Supply Chain	86
Environment	87
Employees	89
Community	96
Customers	97
Voluntary tax transparency	99
Explanatory notes	100
KPMG assurance opinion	102

Cover Image: Richard and Neil Seymour harvesting salt from the nearby pink lake with the assistance of Wotjobaluk traditional owner, Adrian Morgan.

ANZ 2020 ESG Supplement

Overview	Fair and responsible	Environmental	Housing	Financial	Voluntary tax	ESG data	KPMG assurance
	banking	sustainability		wellbeing	transparency	pack	opinion

Our 2020 reporting suite

		2020 CLIMATE-RELATED	2020 CORPORATE
2020 ANNUAL REPORT	2020 ESG SUPPLEMENT	FINANCIAL DISCLOSURES	GOVERNANCE STATEMENT
anz.com/annualreport	anz.com/cs	anz.com/shareholder/centre	anz.com/corporategovernance

Reporting suite

We produce a suite of reports to meet the needs and requirements of a wide range of stakeholders, including shareholders, customers, employees, regulators, non-government organisations and the community. In 2021 we intend to review our disclosures to ensure they are meeting the evolving needs of our stakeholders.

Specifically, we will consider whether there are additional reporting frameworks or metrics we could use to enhance our disclosures.

In this respect we are closely watching work underway by key sustainability disclosure bodies to develop a coherent and comprehensive corporate reporting system in which existing sustainability standards and frameworks complement financial accounting principles.

This ESG Supplement complements our 2020 Annual Report available on anz.com/annualreport. In preparing pages 1 - 72 of the Annual Report we applied aspects of the International Integrated Reporting Framework to describe how our business

About this Environment, Social and Governance (ESG) Supplement

This report provides stakeholders with more detailed information on the Australia and New Zealand Banking Group Limited's1 ESG performance and challenges. In response to stakeholder feedback, for the first time, we are releasing our ESG Supplement at the same time as the Annual Report.

This report is structured in three sections. The first outlines our purpose and values; our approach to ESG governance and risk management; our approach to the identification and prioritisation of material issues; our stakeholder engagement and our ESG targets.

The second section outlines our management of materially significant issues aligning with our priority areas of fair and responsible banking, environmental sustainability, housing and financial wellbeing.

The third section contains our United Nations Principles of Responsible Banking self-assessment, United Nations Guiding Principles reporting framework index, Equator Principles data and comparative performance data.

This report has been prepared in accordance with the GRI Standards: Comprehensive option. A complete GRI Index is available on anz.com/cs.

KPMG has provided limited assurance in respect of this ESG Supplement, including considering whether the appropriate indicators have been reported in accordance with GRI Sustainability Reporting Standards Comprehensive level of disclosure. KPMG has also provided limited assurance over ESG content2 within

our Annual Report, Annual Review3 and our 2020 Climate-related Financial Disclosures report. A copy of KPMG's independent limited assurance report is on pages 102 - 103.

This report covers all ANZ operations worldwide over which, unless otherwise stated, we have control for the financial year commencing on 1 October 2019 and ending 30 September 2020. Monetary amounts in this document are reported in Australian dollars, unless otherwise stated.

You can trace our actions on human rights throughout this report using this symbol

model, strategy, governance and risk management processes are addressing risks and opportunities in our operating environment and delivering value for our stakeholders.

Our 2020 Corporate Governance Statement discloses how we have complied with the ASX Corporate Governance Council's 'Corporate Governance Principles and Recommendations - 3rd edition' and is available at anz.com/corporategovernance.

Our 2020 Climate-related Financial Disclosures are contained in a separate document available on anz.com/annualreport.

Additional disclosures are available on anz.com/shareholder/centre.

We are continually seeking to improve our reporting suite and welcome feedback on this report. Please address any questions, comments or suggestions in relation to this report to corporate. [e-mail].

1. Group: Australia and New Zealand Banking Group Limited (the Company) and the entities it controlled at the year end and from time to time during the financial year (together, the Group). 2. ESG content includes the following sections of the 2020 Annual Report and 2020 Annual Review: 2020 Performance Snapshot, What Matters Most, COVID-19 - Protecting our Customers, People and Community, Becoming a fairer and more responsible bank, Our Customers, Our People, Our Community, Our approach to climate change and ESG metrics on page 72. 3. The 2020 Annual Review comprises pages 1 - 72 and 241 - 242 of the 2020 Annual Report and Remuneration Overview.

Contents

ANZ 2020 ESG Supplement

1