Climate Change Data

ANZ Group Holdings Limited

Climate Impact & Sustainability Data (2014, 2019-10 to 2020-09, 2022-10 to 2023-09)

Reporting Period: 2014

Environmental Metrics

ESG Focus Areas

  • Sustainable development
  • Diversity and inclusion
  • Financial inclusion and capability
  • Customers
  • People
  • Community
  • Environment
  • Suppliers

Environmental Achievements

  • Reduced global greenhouse gas emissions by 5% (Scope 2)
  • Achieved a CDP 2014 climate disclosure score of 98 out of 100

Social Achievements

  • MoneyMinded financial education program reached over 54,000 people
  • 253 people employed from disadvantaged and under-represented groups
  • 101,801 hours volunteered by employees

Governance Achievements

  • Completed a comprehensive review of sensitive sector policies (Energy and Extractive Industries)
  • Increased employee awareness of sustainability agenda through training programs

Climate Goals & Targets

Medium-term Goals:
  • Increase the proportion of lower-carbon power generation lending by 15-20% by 2020
Short-term Goals:
  • Reduce GHG emissions from premises energy by 1% to 3% by 2017
  • Reduce GHG emissions from air travel by 5% in 2015
  • Reduce paper consumption by 15% by 2017

Environmental Challenges

  • Stakeholders' concerns about financing of fossil fuel industries
  • Allegations of governance failures in Cambodia
  • Growth in data centre emissions offsetting reductions in other areas
  • Shortfall in Indigenous recruitment goals
Mitigation Strategies
  • Reporting on emissions from direct funding of electricity generation
  • Working with customers to improve social and environmental performance
  • Implementing energy efficiency projects and initiatives
  • Addressing concerns through stakeholder engagement

Supply Chain Management

Supplier Audits: Over 4,500 suppliers reviewed by a third party over the past two years

Responsible Procurement
  • Group Sourcing Policy
  • Sustainability Guidelines for Procurement
  • Supplier Code of Practice (SCOP)

Climate-Related Risks & Opportunities

Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Guidelines (Core level)

Third-party Assurance: KPMG

Awards & Recognition

  • MoneySmart Week award
  • Retail Banker International Awards for Best Digital Channels Strategy

Reporting Period: 2019-10 to 2020-09

Environmental Metrics

Total Carbon Emissions:134,093 tCO2e/year
Scope 1 Emissions:119 tCO2e/year
Scope 2 Emissions:122,331 tCO2e/year
Scope 3 Emissions:23,330 tCO2e/year
Renewable Energy Share:24% (Australia)
Total Energy Consumption:180,340 MWh/year
Water Consumption:101,699 m3/year (Australia)
Waste Generated:663 tons/year (Australia and New Zealand)

ESG Focus Areas

  • Fair and responsible banking
  • Environmental sustainability
  • Housing
  • Financial wellbeing

Environmental Achievements

  • 36% reduction in scope 1 and 2 greenhouse gas emissions against a 2015 baseline
  • Australian operations powered by 24% renewable electricity
  • Paper consumption reduced by 52%
  • Water consumption decreased by 23%

Social Achievements

  • More than 1.07 million people reached through financial wellbeing programs
  • 86% employee engagement
  • More than $139.5m in community investment
  • 919 people recruited from under-represented groups
  • Established a dedicated Banking Code and Customer Vulnerability team

Governance Achievements

  • Completed a review of ANZ’s customer complaints policies and standards
  • Strengthened Supplier Code of Practice
  • Increased resources committed to remediating customers

Climate Goals & Targets

Long-term Goals:
  • Fund and facilitate at least $50 billion by 2025 towards sustainable solutions
Medium-term Goals:
  • Fund and facilitate $10 billion of investment by 2030 to deliver more affordable homes
  • Publish Adult Financial Wellbeing Research by end 2022
  • Establish seven new partnerships to expand MoneyMinded by end 2023
  • Reduce scope 1 and 2 emissions by 35% by 2030
  • Increase renewable energy use to 100% by 2025
Short-term Goals:
  • Develop and commence implementation of a new Vulnerable Customer Framework by end 2021
  • Design and commence implementation of a human rights grievance mechanism by end 2021
  • Support 250,000 customers to build a savings habit by end 2021
  • Engage with 100 of our largest emitting customers to support low-carbon transition plans by end 2021
  • Achieve 2021-2025 environmental footprint targets

Environmental Challenges

  • COVID-19 pandemic impact on business, earnings, and community
  • Supply chain disruptions
  • Maintaining community trust
  • Addressing customer complaints
  • Managing climate change risks and opportunities
Mitigation Strategies
  • Developed a Statement of Intent to support customers impacted by the pandemic
  • Enabled 95% of non-branch employees to work from home
  • Donated to charities to support those affected by COVID-19
  • Strengthened accountability and consequence framework
  • Implemented a new Vulnerable Customer Framework
  • Developed an enhanced climate risk management framework
  • Engaged with 83 of the largest emitting customers to support low-carbon transition plans

Supply Chain Management

Supplier Audits: 3,989 checks in 2020; 100% of top 100 suppliers screened

Responsible Procurement
  • Purchasing Policy
  • Supplier Code of Practice (SCOP)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
  • Bushfires
  • Droughts
Transition Risks
  • Regulatory changes
  • Market shifts
  • Impacts on communities
Opportunities
  • Development of energy-efficient products
  • Growth in sustainable finance

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 17

Initiatives contribute to these goals through various programs and targets.

Sustainable Products & Innovation

  • Sustainable finance products (green bonds, green loans, sustainability-linked loans)

Awards & Recognition

  • Bank of the Year for First Home Buyers (2017-2019)
  • Corporate App of the Year (2019)

Reporting Period: 2022-10 to 2023-09

Environmental Metrics

Total Carbon Emissions:89,038 tCO2e/year (Scope 1 & 2); 149,658 tCO2e/year (Scope 1, 2 & 3)
Renewable Energy Share:49%

ESG Focus Areas

  • Climate Change
  • Financial Wellbeing
  • Environmental Sustainability
  • Affordable Housing

Environmental Achievements

  • 49% of energy consumption from renewable energy
  • 71% reduction in waste to landfill since 2017
  • Funded and facilitated approximately $8.8 billion towards a $100 billion social and environmental sustainability target (first six months)

Social Achievements

  • More than 87,000 people participated in financial education programs
  • Supported more than 19,000 first home buyers in Australia and New Zealand
  • Funded and facilitated $610 million for affordable housing
  • 87% staff engagement score
  • 37.3% women in leadership

Governance Achievements

  • Compliance with ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations – 4th edition
  • Climate-related Financial Disclosures report prepared in accordance with TCFD recommendations

Climate Goals & Targets

Long-term Goals:
  • Leading Australian and New Zealand bank in supporting customers’ transition to net zero emissions by 2050
Medium-term Goals:
  • Fund and facilitate at least $100 billion by end 2030 in improving social and environmental outcomes
Short-term Goals:
  • Procure 100% renewable electricity for operations by 2025

Environmental Challenges

  • Inflationary pressures and higher interest rates
  • Public and regulatory scrutiny
  • Competitive banking industry
  • Cyber-security threats
  • Geopolitical tension
  • Climate change
Mitigation Strategies
  • Assessing borrowers’ resilience to rising interest rates
  • Offering appropriate products and services to customers
  • Dealing appropriately with customers experiencing financial hardship
  • Adjusting staff salaries appropriately
  • Building trust by ‘doing what we say’
  • Working cooperatively with regulators
  • Evolving ESG policies and processes
  • Deploying new digital services
  • Investing in technology
  • Ongoing investment in cyber-security
  • Contingency plans for higher-risk jurisdictions
  • Providing sustainable banking products and services
  • Evolving strategy to manage climate change risks and opportunities

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations – 4th edition

Third-party Assurance: KPMG

Sustainable Products & Innovation

  • Green and sustainability-linked loans and bonds
  • Good Energy Home Loan top up
  • Business Green Loans

Awards & Recognition

  • 2023 Small Business Bank of the Year (Canstar)
  • Canstar Bank of the Year for Small Business and for Agriculture (New Zealand)