ANZ - 2021 Annual Report

Improving our approach to human rights This year we have significantly upgraded our Human Rights Statement (Statement) and developed a new Grievance Mechanism (Mechanism) for people whose human rights may have been impacted by our large business lending customers. We committed to these two actions in the 2020 Statement of the Parties setting out the resolution of a complaint brought against ANZ by Inclusive Development International and Equitable Cambodia concerning a loan made to Phnom Penh Sugar in 2014. Agreement was reached with the assistance of the Australian National Contact Point. Our Statement and Mechanism have been informed by an external multi-stakeholder working group including civil society organisations, academics, business representatives and customers. Their involvement did not infer endorsement of the outcomes of this review or other work carried out by ANZ. The Statement outlines our respect for international human rights standards and includes: • No tolerance for retaliation against individuals or communities • Reference to climate change and associated human rights impacts • Support for an open civic space and human rights defenders • Scenarios where domestic laws conflict with international human rights standards • Our process when a customer’s human rights practices are inconsistent with our expectations. International standards we respect include the International Labour Organisation Declaration on Fundamental Principles and Rights at Work, the International Bill of Human Rights and the UN Guiding Principles on Business and Human Rights (UNGPs). The UNGPs are the global standard for preventing and addressing the risk of adverse human rights impacts linked to business activities. They incorporate three pillars, including governments’ duty to protect human rights and the responsibility of businesses to respect human rights. Our Statement is aligned with the UNGP second pillar, including support and respect for human rights of our employees, customers and communities. We expect the same from everyone who works for or with us, including business customers, suppliers and partners. The UNGP third pillar refers to the need for victims of business- related abuses to have access to remedy. We support access to remedy through our new Grievance Mechanism and participation in the Organisation for Economic Co-Operation and Development (OECD) National Contact Point (NCP) remediation processes.1 Our new Mechanism will help encourage responsible business conduct, including by our large business lending customers. In establishing this Mechanism, we sought to provide a framework through which: • Efforts can be made to resolve complaints by affected communities about adverse human rights impacts associated with ANZ customers; and • Feedback and recommendations aimed at strengthening our due diligence processes can be provided. The Mechanism is designed to be informal and flexible, and we are committed to handling complaints in a way that builds confidence in its effectiveness. As this is new we understand the need to promote its availability, and will use any complaints submitted as an opportunity for learning and reflection. Implementation of the new Statement and Mechanism will continue in 2022 through our governance, policies, staff training and disclosures. Engagement will again be sought with external stakeholders in reviews of the Mechanism in 2023 and the Statement in 2024. We will also report on complaints submitted to the Mechanism. The Statement and the Grievance Mechanism are available at Information on our approach to modern slavery is in our 2021 ESG Supplement available at 1. NCP is responsible for promoting the OECD Guidelines for Multinational Enterprises (an international standard on responsible business conduct) and providing conciliation services to resolve complaints against multinational enterprises. 37 ANZ 2021 Annual Report