ANZ - 2021 Annual Report

Directors’ report The Directors’ Report for the financial year ended 30 September 2021 has been prepared in accordance with the requirements of the Corporations Act 2001 . The information below forms part of this Directors’ Report: • Principal activities on page 10 • Operating and financial review on pages 56 to 70 • Dividends on page 70 • Information on the Directors, Company Secretaries and Directors’ meetings on pages 40 to 50 • Remuneration report on pages 74 to 109. SIGNIFICANT CHANGES IN STATE OF AFFAIRS There have been no significant changes in the Group’s state of affairs. EVENTS SINCE THE END OF THE FINANCIAL YEAR On 22 October 2021, a Group fund that owns 19% of the shares in Cashrewards Limited announced it would make an off-market takeover offer to acquire the remaining 81% of the shares, for ~$80 million. The offer is subject to a number of conditions and completion remains uncertain. Other than the matter above, there have been no significant events from 30 September 2021 to the date of signing this report. POLITICAL DONATIONS For the year ending 30 September 2021, our Public Policy Advocacy, Political Donations and Foreign Influence Policy included an annual donation to the two major federal political parties to support Australia’s democratic process. In October 2020, ANZ donated $100,000 to the Liberal Party of Australia and $100,000 to the Australian Labor Party. ANZ also attended paid events including business forums hosted by the major Australian Federal political parties, totalling $47,600. ANZ discloses associated costs and donations through the Australian Electoral Commission’s (AEC) donors annual return process, noting the AEC’s reporting year is a different period to ANZ’s financial year. ANZ updated its policy on 1 October 2021. It prohibits political donations, but allows attendance at paid events hosted by the major Australian Federal political parties. ENVIRONMENTAL REGULATION ANZ recognises the expectations of its stakeholders – customers, shareholders, staff and the community – to operate in a way that mitigates its environmental impact. In Australia, ANZ meets the requirements of the National Greenhouse and Energy Reporting Act 2007 (Cth), which imposes reporting obligations where energy production, usage or greenhouse gas emissions trigger specified thresholds. The Group does not believe that its operations are subject to any other particular and significant environmental regulation under a law of the Commonwealth of Australia or of an Australian State or Territory. It may become subject to environmental regulation as a result of its lending activities in the ordinary course of business and has developed policies, which are reviewed on a regular basis to help identify and manage such environmental matters. Having made due enquiry, and to the best of ANZ’s knowledge, no entity of the Group has incurred any material environmental liability during the year. Further details of ANZ’s environmental performance, including progress against its targets and management of material issues aligned with its commitment to fair and responsible banking and priority areas of financial wellbeing, environmental sustainability and housing, are available in ANZ’s ESG Supplement, at . CORPORATE GOVERNANCE STATEMENT ANZ is committed to maintaining a high standard in its governance framework. ANZ confirms it has followed the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th edition) during the 2021 financial year. ANZ’s Corporate Governance Statement, together with the ASX Appendix 4G which relates to the Corporate Governance Statement, can be viewed at and has been lodged with the ASX. PILLAR 3 INFORMATION ANZ provides information required by APS 330: Public Disclosure in the Regulatory Disclosures section at reporting/regulatory-disclosure/ . EXTERNAL AUDITOR The Group’s external auditor is KPMG. The Group appointed Peat, Marwick, Mitchell & Co (predecessor to KPMG) in 1969. The Board Audit Committee conducts a formal annual performance assessment of the external auditor, including whether to commence an external tender for the audit. After considering relevant factors including tenure, audit quality, local and international capability and experience, and independence, the Board Audit Committee resolved to reappoint KPMG for the 30 September 2022 financial year audit. The KPMG Lead Audit Engagement Partner for the Group was appointed for the financial year ended 30 September 2021 replacing the previous Lead Audit Engagement partner who had been in the role since the 30 September 2017 financial year. In addition, KPMG regularly rotates the Engagement Quality Control Review Partner with the most recent rotation being for the financial year ended 30 September 2020. NON-AUDIT SERVICES The Group’s Stakeholder Engagement Model for Relationship with the External Auditor (the Policy), which incorporates requirements of the Corporations Act 2001 and industry best practice, prevents the external auditor from providing services that are perceived to be in conflict with the role of the external auditor or breach independence requirements. This includes consulting advice and sub-contracting of operational activities normally undertaken by management, and engagements where the external auditor may ultimately be required to express an opinion on its own work. 110 OVERVIEW HOW WE CREATE VALUE PERFORMANCE OVERVIEW REMUNERATION REPORT DIRECTORS’ REPORT FINANCIAL REPORT SHAREHOLDER INFORMATION