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With the release of the Taskforce on Nature-related Financial Disclosures (TNFD) framework in September 2023, we are taking steps towards the TNFD’s recommendations to help inform our disclosures in this report. Our TNFD Index can be found on page 79.
While most of the information on how we are transitioning towards net zero is available throughout this report, we intend to publish a more detailed transition plan next year on how we plan to reach net zero.
Further detail about our approach to developing metrics, pathways and targets for our priority sectors, can be found in ANZ’s Financed Emissions Methodology and in ANZ’s Social and Environmental Sustainability Target Methodology available at anz.com/esgreport.
Boundaries.
The report covers all operations over which we have control for the financial year commencing on 1 October 2022 and ending 30 September 2023, referred to as "2023” throughout the report, unless otherwise stated. Monetary amounts in this document are reported in Australian dollars, unless otherwise stated.
Assurance.
KPMG has performed limited assurance over the disclosures in this report, including the two methodology documents referenced above. A copy of KPMG’s limited assurance report is on pages 88-89. KPMG has also performed reasonable assurance over Global GHG Emissions (Scope 1 and 2).
2023 Reporting Suite.
We produce a suite of reports to meet the needs and requirements of a wide range of stakeholders including shareholders, customers, employees, regulators, non-government organisations (NGOs) and the community.
This Climate-related Financial Disclosures report complements our 2023 Annual Report available at anz.com/annualreport.
Our 2023 ESG Supplement provides stakeholders with detailed ESG disclosures, including performance against our ESG targets. Available at anz.com/esgreport.
Our 2023 Corporate Governance Statement discloses how we have complied with the Australian Securities Exchange (ASX) Corporate Governance Council’s ‘Corporate Governance Principles and Recommendations – 4th edition’ and is available at anz.com/corporategovernance.
We are continually seeking to improve our reporting suite and welcome feedback on this report. Please address any questions, comments or suggestions in relation to this report to corporate.sustainability@anz.com.
Supporting Sustainable Development.
We are committed to the United Nations Sustainable Development Goals (SDGs) and believe that business has an important role to play in their achievement. Our current ESG targets strive to support all of the 17 SDGs.
In 2019 we became a founding signatory to the UN Principles for Responsible Banking. Under the Principles we are required to set at least two targets that address our most significant (potential) positive and negative impacts, aligned with the SDGs and the Paris Climate Agreement.
We have reported our progress towards implementing the Principles using the Reporting and Self-assessment Index, available in our ESG Data and Frameworks pack at anz.com/esgreport. This year KPMG have also provided limited assurance over our Self-assessment Index.
Overview.
About this report.
Disclaimer and important notices 2023 Climate snapshot.
ANZ Climate approach.
Governance.
Strategy.
Risk Management.
Metrics and Targets.
Appendix.
Assurance opinion.
ANZ 2023 Climate-related Financial Disclosures 4
DISCLAIMER & IMPORTANT NOTICES.
The material in this report contains general background information about the Group’s activities current as at 10 November 2023. It is information given in summary form and does not purport to be complete. It has a sustainability focus and does not reflect the totality of the Group’s business activities. For a more complete overview of the Group’s business, see the ANZ Annual Report available at anz.com/shareholder/centre/.
It is not intended to be and should not be relied upon as advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.
Forward-looking statements.
This report may contain forward-looking statements or opinions including statements regarding our intent, belief or current expectations with respect to the Group’s business operations, market conditions, results of operations and financial condition, capital adequacy, sustainability objectives or targets, specific provisions and risk management practices. When used in the report, the words ‘forecast’, ‘estimate’, 'goal', 'target', 'indicator', 'plan', 'pathway', ‘ambition’, ‘modelling’, ‘project’, ‘intend’, ‘anticipate’, ‘believe’, ‘expect’, ‘may’, ‘probability’, ‘risk’, ‘will’, ‘seek’, ‘would’, ‘could’, ‘should’ and similar expressions, as they relate to the Group and its management, are intended to identify forward-looking statements or opinions. Those statements are usually predictive in character; or may be affected by inaccurate assumptions or unknown risks and uncertainties or may differ materially from results ultimately achieved. As such, these statements should not be relied upon when making investment decisions. These statements only speak as at the date of publication and no representation is made as to their correctness on or after this date. Forward-looking statements constitute ‘forward-looking statements’ for the purposes of the United States Private Securities Litigation Reform Act of 1995. The Group does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
Climate-related information.
This report may contain climate-related statements, including in relation to climate-related risks and opportunities, climaterelated goals and ambitions, climate scenarios, emissions reduction pathways and climate projections. While the Group has prepared the statements in good faith, climaterelated statements are subject to significant uncertainty, challenges and risks that may affect their usefulness, accuracy and completeness, including: 1. Availability and reliability of data – emissions and climate-related data may be incomplete, inconsistent, unreliable or unavailable (including information from the Group’s clients), and it may be necessary to rely on assumptions, estimates or proxies where that is the case.
2. Uncertain methodologies and modelling – methodologies, frameworks and standards used for calculations of climate-related metrics, modelling and climate data are not universally applied, are rapidly evolving and subject to change. This may impact the data modelling, approaches, and targets used in preparation of this report.
3. Complexity of calculations and estimates – Estimating financed emissions (including allocating emissions to financing activities) and emissions reduction is complex and relies on assumptions and judgments, often made in respect of long periods of time. For facilitated emissions, suitable standards to allow financial institutions to calculate facilitated emissions are still under development as at October 2023.
4. Changes to climate-related governing frameworks – changes to climate-related policy, laws, regulations and market practices, standards and developments, including those resulting from legal proceedings and regulatory investigations.
5. Lack of consistency in definitions and climate-science terminology subject to changes – definitions and standards for climate-related data and assessment frameworks used across industries and jurisdictions may vary, and terminology and concepts relating to climate science and decarbonisation pathways may evolve and change over time. These inconsistencies and changes can also make comparisons between different organisations’ climate targets and achievements difficult or inappropriate.
6. Reliance on third parties for data or involvement – the Group may need to rely on assistance, data or other information from external data and methodology providers or other third parties, which may also be subject to change and uncertainty. Additionally, action and continuing participation of third parties, such as stakeholders, may be required (including financial institutions and governmental and non-governmental organisations).
Due to these uncertainties, challenges and risks, statements, assumptions, judgments, calculations, estimates or proxies made or used by the Group may turn out to be incorrect, inaccurate or incomplete. Readers should conduct their own independent analysis and not rely on the information for investment decision-making.
The information in this notice should be read with: • The qualifications, limitations and guidance included throughout this report • ANZ Financed Emissions Methodology available at anz.com/esgreport • ANZ Greenhouse Gas Reporting and Carbon Offset Guidelines available at anz.com.au/about-us/esg/ environmental-sustainability/environmental-footprint/ • ANZ Social and Environmental Sustainability Target Methodology available at anz.com/esgreport.
Overview.
About this report.
Disclaimer and important notices 2023 Climate snapshot.
ANZ Climate approach.
Governance.
Strategy.
Risk Management.
Metrics and Targets.
Appendix.
Assurance opinion.
ANZ 2023 Climate-related Financial Disclosures 5
2023 CLIMATE SNAPSHOT1.
Existing Sectoral Pathways 2030 Interim Target Reduction Status.
Power Generation 50% (2020 baseline) ON TRACK.
Oil and Gas 26% (2020 baseline) ON TRACK.
Aluminium 30% (2021 baseline) NOT ON TRACK.
Cement 20% (2021 baseline) ON TRACK.
Steel 28% (2021 baseline) CLOSE TO ON TRACK.
Large-scale Commercial Real Estate4 60% (2019 baseline) ON TRACK.
New Sectoral Pathways.
Thermal Coal 100% (2020 baseline)
Transport sub-sector: Aviation 30% (2019 baseline)
Transport sub-sector: Auto Manufacturing 28% (2022 baseline)
Transport sub-sector: Shipping 10% (2022 baseline) 1. Refer to page 43 for further detail on our sectoral pathways. 2. Refer to pages 23-24 for further detail. 3. Refer to page 20 for further detail. 4. Actual Performance Against our Large-scale commercial real estate Target up to end 2022.
64 of 100 of our largest emitting business customers now have ‘well developed’ or ‘advanced’ transition plans versus 42 in September 20212.
Approximately $8.8B funded and facilitated in social and environmental outcomes3 since 1 April 2023 97% of our project finance power generation portfolio is from renewables projects >10% above pathway <=10% above pathway On or below pathway 80% reduction in combined Scope 1 and 2 greenhouse gas emissions against a 2015 baseline.
ON TRACK.
ON TRACK.
ON TRACK.
ON TRACK.
Overview.
About this report.
Disclaimer and important notices 2023 Climate snapshot.
ANZ Climate approach.
Governance.
Strategy.
Risk Management.
Metrics and Targets.
Appendix.
Assurance opinion.
ANZ 2023 Climate-related Financial Disclosures 6
ANZ CLIMATE APPROACH PROGRESS TOWARDS NET ZERO.
STARTING EARLY SCALING UP ENHANCED CUSTOMER ENGAGEMENT FROM AMBITION TO ACTION 2015.
Issued first Green Bond, certified by the Climate Bonds Initiative.
Committed to funding and facilitating at least $10 billion by 2020 in low carbon and sustainable solutions 2019.
Committed to funding and facilitating at least $50 billion by 2025 towards sustainable solutions.
Set a target to encourage and support 100 of our largest emitting business customers to develop or strengthen their transition plans 2018.
First Australian bank to join the Net-Zero Banking Alliance (NZBA)
Set sectoral pathways targets for: • Large-scale commercial real estate in Australia • Global power generation 2021.
Adopted Climate Change Risk Assessment online tool to support bankers to engage with customers on climate risk.
Set sectoral pathway targets: • Thermal coal • Transport (Aviation, Auto manufacturing, Shipping) • Large Institutional Agribusiness Customers data coverage target • Residential home loans baseline 2023.
Enhanced customer engagement through LEEP, including additional sectoral pathways customers 2025 2022.