ANZ (ANZ) ESG Update summary

ESG Strategy, Purpose, and Governance

• ESG is fully integrated into business strategy, focusing on financial well-being, housing, environmental sustainability, and protection from fraud and scams, with oversight from dedicated board and management committees.

• Purpose centers on shaping a world where people and communities thrive, guiding all operations and decisions.

• Governance structures are regularly reviewed to ensure effectiveness as ESG challenges evolve, with EESG Board Committee and Ethics and Responsible Business Management Committee overseeing key matters.

• Stakeholder engagement and regular reviews ensure focus on relevant ESG areas, including emerging risks like AI ethics and greenwashing.

• Diversity and inclusion remain priorities, with progress in gender balance and broader cultural representation.

Key ESG Targets and Performance

• Target to fund and facilitate at least AUD 100 billion in social and environmental outcomes by 2030, with over AUD 20.32 billion delivered since April 2023.

• Housing target of at least AUD 10 billion by 2030, with over AUD 5.78 billion delivered since October 2018, including major public-private partnership projects.

• Aim to have 2.5 million customers with a financial buffer by end FY2026; 60,000 lower-income Australians have saved over AUD 29 million through partnerships.

• Financial education programs have reached over 927,500 participants since 2002.

• Five key ESG focus areas: environmental sustainability, financial wellbeing, housing, protection from fraud and scams, and responsible customer engagement.

Environmental Sustainability and Climate Action

• Ambition to be the leading bank in Australia and New Zealand supporting the transition to net zero by 2050, with sectoral pathways and interim 2030 targets.

• Enhanced assessment framework for high-emitting business customers, requiring robust transition plans and third-party assurance.

• No new direct financing for upstream oil and gas projects; 26% emissions reduction by 2030 and 40% exposure reduction by 2025 targeted.

• Exposure to thermal coal mining reduced by ~88% since 2015, now a minimal portion of overall lending.

• Engagement with customers on biodiversity and participation in TNFD framework pilot to enhance nature-related risk management.