Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Living

Climate Goals & Targets

Environmental Challenges

• Consumers want more sustainable products but price, quality, and convenience remain top priorities.
• Difficulty in changing consumer habits towards sustainability.
• Ideological rather than rational debate in Australia and the US regarding sustainability.

Mitigation Strategies

• Businesses taking leadership in promoting sustainable practices.
• Incentivizing sustainable choices.
• Focusing on long-term value creation through sustainability initiatives.

Supply Chain Management

Responsible Procurement

• Investing in organic cottons (Benjamin Siggers)
• Recycling and repairing used clothing (Patagonia)
• Using post-consumer waste for toilet paper (Who Gives a Craap)

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Modern Slavery
• Human Trafficking

Social Achievements

• Revised OFX Code of Conduct to include modern slavery and human trafficking expectations and consequences for non-compliance.
• Implemented a Modern Slavery Standard outlining the approach to identifying, managing, and remediating modern slavery risks.
• Revised OFX Whistleblower Policy to provide a grievance channel for employees and suppliers.
• Updated OFX supply contract templates with mandatory anti-modern slavery provisions.
• Developed an enhanced supplier due diligence (ESDD) process for high-risk suppliers.
• Implemented a new “Modern Slavery” online training course for all staff.

Governance Achievements

• Established governance structure for modern slavery and human trafficking, overseen by the Audit Risk and Compliance Committee.

Climate Goals & Targets

Environmental Challenges

• Potential for exposure to modern slavery and human trafficking in the supply chain, particularly in sectors like technology, information communications, office consumables, marketing, promotional merchandise, property services, professional services, and business process offshoring.
• Risk of modern slavery in high-risk geographies where suppliers are located.

Mitigation Strategies

• Enhanced supplier due diligence (ESDD) process focusing on self-assessments by high-risk suppliers.
• Adverse media screening of suppliers.
• Regular review and assessment of policies, codes, and standards as part of the OFX Risk Management Framework.
• Ongoing customer due diligence to identify and verify customers and detect suspicious activity.
• Regular training for all employees to detect and report potential suspicious activity.

Supply Chain Management

Responsible Procurement

• Enhanced Supplier Due Diligence (ESDD) process
• Inclusion of anti-modern slavery provisions in supply contracts

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Investing in a sustainable future
• Empowering people globally and locally
• Global financial responsibility

Environmental Achievements

• Engaged with an independent online platform and Climate Active Certified Consultants to more accurately calculate our carbon emissions, track reduction initiatives and manage our purchased carbon offsets; Operating 100% in the cloud, with OFX hosting its technology with Amazon Web Services (AWS) (the Company’s largest supplier). AWS infrastructure is 3.6 times more energy efficient than average data centres; Operating a hybrid work model which allows our people to work from home reducing the need to commute; and Minimising energy use in our office locations with energy-saving sensor settings for lighting, heating and cooling and monitors.
• Electronic signatures are used globally for all non-disclosure agreements, vendor agreements, order forms and employment documents.
• A network of community champions was established which promotes participation in community activities, including soap recycling in Hong Kong, lunch preparation at a homeless shelter and gardening for an environmental group in Sydney.

Social Achievements

• Formed a partnership with global charity, Save the Children, making a AUD$20,000 donation.
• Established a community partnership with the Australian Indigenous Mentoring Experience (AIME).
• Introduced an enhanced due diligence process on high-risk vendors and improved employee educational resources, including Modern Slavery training undertaken by all employees in FY22.
• A hybrid work model was implemented supported by a working from home survey, people leader training and support and risk assessments.
• Increased female representation across the Senior Leadership Team (SLT).
• Obtained cultural diversity data for the first time, with the level of cultural diversity above that of the countries where most employees are located (Australia, Canada, UK).
• Introduced Wellbeing month (September), access to mental health provider, Uprise and corporate discounts for fitness providers.

Governance Achievements

• Created an updated product governance framework, and developed and published Target Market Determinations to assist our customers in making better informed decisions on our financial products.
• A new customer risk assessment methodology was agreed.
• An educational session for employees was run on how OFX is working to protect customers from financial crime, and how to improve their own security measures.
• New content was posted to the OFX website and emails sent to educate customers on protecting themselves against fraud.
• FY22 governance practices complied with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th Edition).

Climate Goals & Targets

Environmental Challenges

• Increase in cyber risk
• Increasing societal expectations of good governance
• War for talent
• Regulatory compliance
• Information technology (IT) system failures
• Data security and privacy breaches
• Relationships with banking counterparties
• Mistaken payments
• Fraud
• Foreign exchange rate fluctuations
• Credit risk
• Competition
• Intellectual property risk
• Reputational damage

Mitigation Strategies

• Significant investment in compliance, risk management, and technology.
• Disaster recovery plans and controls.
• Board-approved Cyber Strategy and employee training.
• Panel of banking counterparties and active relationship management.
• System and process controls to mitigate risks.
• Treasury risk management process and Board-set limits.
• Active management of trademarks and licensing of third-party IP.
• Active relationship maintenance with stakeholders.

Supply Chain Management

Responsible Procurement

• Enhanced due diligence process on high-risk vendors
• Modern Slavery Statement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: Climate Active Certified (Australia)

Environmental Metrics

ESG Focus Areas

• Investing in a sustainable future
• Empowering people globally and locally
• Global financial responsibility

Environmental Achievements

• Engaged an independent carbon emissions management consultant to calculate and report on scope 1, 2, and upstream scope 3 carbon emissions.
• Significantly reduced office space globally (21.6%).
• Launched a technology hardware recycling program with an Australian First Nation’s charity.

Social Achievements

• Achieved a 74% employee engagement score (+6% from FY22).
• Supported Save the Children with a $20,000 donation.
• Implemented a refreshed suite of cyber incident response plans.

Governance Achievements

• Complied with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th Edition).
• Continued to invest and expand cyber security capabilities.
• Improved resolution time for pricing-related complaints from 2.7 days in FY22 to 2.0 days in FY23.

Climate Goals & Targets

Environmental Challenges

• Regulatory change in the international payments market.
• Regulatory compliance requirements.
• Information technology risks (damage, equipment faults, cyber-attacks).
• Data security and privacy risks.
• Relationships with banking counterparties.
• Mistaken payments.
• Fraud.
• Foreign exchange rate fluctuations.
• Credit risk.
• Liquidity risk.
• Competition.
• Intellectual property risk.
• Reputational damage.

Mitigation Strategies

• Investing significant resources in risk management and compliance, including compulsory compliance training for all employees.
• Maintaining disaster recovery plans and controls.
• Implementing a Board-approved Cyber Strategy and compulsory privacy and cyber security awareness training.
• Maintaining a panel of banking counterparties and actively managing relationships.
• Implementing a range of system and process controls to mitigate risks.
• Actively managing trademarks and obtaining licenses for third-party IP rights.
• Actively maintaining relationships with regulators, banks, partners, and stakeholders.

Supply Chain Management

Responsible Procurement

• Donating out-of-commission technology to an Australian First Nation’s charity and an overseas orphanage.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB