ANZ - 2021 Annual Report

We are committed to playing our part in supporting the transition to net zero emissions by 2050. The most important role we can play in meeting the Paris Agreement goals is to help our customers reduce emissions and enhance their resilience to a changing climate. We support an orderly transition that recognises and responds to social impacts. This aligns with our purpose to shape a world in which people and communities thrive. Our climate change statement outlines our approach and commitments in support of a global transition to net zero. We are reviewing our position. Our updated position will be released prior to our Annual General Meeting, together with our 2021 Climate-related Financial Disclosures (our fifth report using the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)), available at anz.com/annualreport . CUSTOMER ENGAGEMENT We have engaged with 100 of our largest emitting business customers, supporting them to establish and, where appropriate, strengthen existing transition plans. Customers have valued our engagement on this topic, and our perspectives. A number of customers outside of the 100 have sought to engage with us, seeking clarity on our expectations, or requesting suggestions to improve their approach. Following initial engagement, customer transition plans were grouped into levels of maturity – advanced, developing/ intermediate, underdeveloped/starting out, and no public plans. Within each industry our customers have different starting points. Since this initial assessment, nine customers have sufficiently improved their governance, strategies and targets or disclosures, leading to an improved ranking. Many other customers have also clearly demonstrated improvement since their initial assessment. For example, we observed a rise in the intention to develop ‘Paris aligned’ or ‘science-based’ targets or report under the TCFD framework, and a similar rise in interest in engaging with ANZ on this topic. While we consider this to be good progress, we understand there is still much to be done. That is why we have committed to continue supporting these larger emitting customers to implement and, where appropriate, strengthen their low carbon transition plans and enhance their efforts to protect biodiversity, by end 2024. As part of this engagement we expect that more customers will improve their plans to a developing/intermediate, or advanced stage over the next three years. Our approach to climate change Food, liquor and convenience retailer Coles is one of Australia’s most trusted brands with an average of 20 million customer transactions each week across its network of almost 2,500 stores and its online platforms. In March 2021, Coles launched its Together to Zero sustainability ambitions. A focus area is Together to zero emissions underpinned by new targets to accelerate climate action and reduce greenhouse gas emissions, as well as its ambition to deliver net zero greenhouse gas emissions by 2050 and its target to have the entire Coles Group powered by 100% renewable electricity by the end of FY25. Having banked Coles since its demerger fromWesfarmers in 2018, we are supporting the retailer’s ambition to minimise its environmental footprint and mitigate the environmental and social impacts of climate change. In late August 2021, ANZ worked as a Joint Sustainability Coordinator on Coles’ $1.3bn sustainability-linked loans, the first within the supermarket sector in Australia and the largest in the local market. Coles replaced $1.3bn of its existing bank debt facilities with sustainability-linked loans to draw a direct link between its sustainability performance and its cost of capital, providing transparency and accountability as it works to achieve its sustainability targets. Commenting on the deal, Coles Chief Financial Officer, Leah Weckert, said: “Coles believes that sustainable businesses are better businesses, and our Sustainability-Linked Loans reflect our commitment to working with all our stakeholders to make positive changes. “The SLL incentive structure is linked to our progress against company-wide sustainability goals, with delivery of those goals delivering improved cost of capital, therefore being an effective tool to drive sustainability throughout our business.” CASE STUDY 38 OVERVIEW HOW WE CREATE VALUE PERFORMANCE OVERVIEW REMUNERATION REPORT DIRECTORS’ REPORT FINANCIAL REPORT SHAREHOLDER INFORMATION

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