Australia and New Zealand Banking Group






ANZ Centre Melbourne, Level 9
833 Collins Street, Docklands
Victoria 3008, Australia

Tel: +61(03)-92-73-5555
Fax: +61(03)-85-42-5252



  • #20 (out of 142 in industry) for Environmental Pillar
  • #8 (out of 142 in industry) for Social Pillar
  • #9 (out of 142 in industry) for Governance and Economic Pillar
  • Climate Change Score of A-
  • ANZ is a constituent of the MSCI Global Sustainability Indices
  • Constituent of FTSE4Good




Ben Walker




Report created by Sonria Willis

Australia and New Zealand Banking Group

SECTIONS :  Sustainability  •  Targets   Evaluation •  Key Points  •  Overview

Company Activity

The Australia and New Zealand Banking Group Limited (ANZ) is an Australian multinational banking and financial services company headquartered in Melbourne, Australia. The Bank is the second largest by assets and the third largest bank by market capitalization in Australia.

ANZ provides a range of banking as well as financial products and services to individual and business customers. Operations include transaction banking services, standard deposits, lending services, wealth management, and advisory services among others.

The company operates in about 35 markets across Australia, New Zealand, Asia Pacific, Europe, America and the Middle East with Australian operations making up the largest part of ANZ’s business. Altogether, the group serves around 8 million retail, commercial and institutional customers.

Company Sustainability Activity

The Australia and New Zealand Banking Group states that they are committed to the Paris Agreement’s goal of transitioning to net zero emissions by 2050. In supporting this goal, the bank’s approach is to:

  1. Help their customers by encouraging them to identify climate risks and opportunities, creating transition plans while reporting publicly on their progress
  2. Support transitioning industries to help grow the economy
  3. Reduce their own impact by managing and reducing emissions from their operations

Furthermore, ANZ states that they are committed to the UN SDGs, mentioning how their ESG targets support 11 of the 17 SDGs. In 2019, they became a founding signatory to the UN Principles for Responsible Banking.

2020 marked the final year of their 2017-2020 environmental footprint target suite. Over this period they state that they have made strong progress against their scope 1 and 2 emission targets and have exceeded their renewable energy, paper and water targets. However, they mention that they did not achieve their target to improve their recycling rate.


  • In August 2020, it became the first bank to issue a Sustainable Development Goals Bond in Australia (approximately $4 billion in bonds)
  • Funded a new solar farm in Australia
  • Funded a 214 MW wind farm in Australia and has acted as its sole debt and equity financial advisor
  • Invested in Tourism Holdings New Zealand, its main project being the introduction of electric camper vans
  • Provided $90 million in financing for CPE Renewable Investment Unit Trust
  • Supported Argosy Property Limited to link its financing to sustainability goals under the green bond framework (first of its kind in the New Zealand property market)
  • Acted as arranger, green bond coordinator and joint lead manager on Mercury NZ Limited’s inaugural green bond issuance
  • Funded and facilitated AU $1.02 billion in investment to deliver more affordable, secure and sustainable homes to buy and rent in Australia
  • Provided more than NZ$ 12.6 million in interest-free loans to insulate homes for ANZ mortgage holders
  • Embedded financial coaching principles into business practices to help guide and support first home buyers


Targets to align their investments with ESGs and help their customers become more sustainable:

  • Engaging with 100 of their largest emitting customers to establish and strengthen their transition plans by 2021
  • Improving transparency to show that financing decisions are in support of Paris goals
  • Ensuring discussion of climate risk becomes part of their everyday client engagement
  • Fund and facilitate $1 billion of investment by 2030 to deliver around 3,200 more affordable, secure and sustainable homes to buy and rent
  • Funding and facilitating at least $50 billion by 2025 to help customers lower carbon emissions
    • Allocating $1 billion of these funds towards supporting customers and communities’ disaster recovery programs

Targets to help support transitioning industries:

  • Further reducing carbon intensity of their lending portfolio by only directly financing low carbon gas and renewable projects by 2030
  • Will no longer bank new business customers with material thermal coal exposures
  • Will no longer engage with customers who have more than 50% thermal coal exposure, to support existing diversification plans
  • Only financing the construction of new large-scale office buildings if they are highly energy efficient
  • Facilitating concessional loans for business customers to buy energy-efficient equipment

Targets to Reduce their own impact:

  • Accelerating the reduction of emissions by sourcing 100% of electricity needed for operations from renewables by 2025
  • Setting public targets to lower greenhouse gas emissions by 24% by 2025 and 35% by 2030
  • Reducing potable water consumption by 25% by 2025
  • Reducing waste to landfill by 30% by 2025
  • Reducing paper consumption by 60% by 2025
  • Equipping employees with knowledge and training to minimize their environmental footprint through training and webinars


  • Has engaged with 83 of their largest emitting customers to support them to establish or strengthen existing low carbon transitions
  • Strengthened its Supplier Code of Practice to ensure they are complying with environmental objectives and targets
  • Since 2019, ANZ has funded and facilitated $9.08 billion in sustainable finance transactions
  • Scope 1 and scope 2 emissions have reduced by 36%, tracking ahead of the required reduction to meet its 2025 and 2030 targets due to:
    • making energy-efficient fixtures and fittings to building offices
    • lighting upgrades and adjustments of automated building controls
    • consolidation of property portfolio, including closure of one of their main offices
    • relocating employees to a new energy-efficient building
    • technology improvements enabling the removal of office hardware products
  • Paper consumption has been reduced by 52%, achieving the improvement required to meet their target
    • Teams in Indonesia and Chengdu, China, have undertaken a project to go paperless
  • Water consumption has decreased by 23%, achieving the improvement required to meet its target
  • Since October 2018, it has funded and facilitated AU $1.02 billion in investment to deliver more affordable, secure and sustainable homes to buy and rent in Australia
  • They reduced their overall waste to landfill by 26% in 2020



UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: Zero Hunger

  • Continuing to build financial wellbeing into products, services and customer engagement
  • Set a new target to support 250,000 customers to build a savings habit, by end of 2021

SDG 5: Gender Equality

  • Monitors the gender pay gap and seeks to remove potential bias whenever remuneration decisions are made

SDG 6: Clean Water and Sanitation

  • Continues to implement water efficient equipment as part of their standard approach to new and refurbished branches and offices

SDG 7: Affordable and Clean Energy

  • Upgraded solar array on ANZ Campus in Docklands
    • Once fully operational, the system will be the largest solar array on a single tenanted commercial office building in Australia

SDG 8: Decent Work and Economic Growth

  • Building capability across recruitment communities to create inclusive and accessible recruitment processes

SDG 9: Industry, Innovation and Infrastructure

  • During the year, they have engaged with industry stakeholders to ensure that it remains directly linked to the housing policy agenda, offering market expertise to support government, customers and the community with relevant insights to inform their decision-making

SDG 10: Reduced Inequalities

  • Improved skills and knowledge of frontline staff to enable them to provide tailored guidance and support to first home buyers

SDG 12: Responsible Consumption and Production

  • Recycling rate reached 12% target and waste management and reuse practices has seen total waste to landfill decrease by 26%

SDG 13: Climate Action

  • Continued to analyze the carbon disclosures of largest emitting business customers and has been encouraged by results

SDG 16: Peace, Justice and Strong Institutions

  • Compliance with international sanctions, anti-money laundering and terrorism financing requirements

SDG 17: Partnerships for the Goals 

  • Community partnerships to support organizations that are working in the homelessness sector to deliver housing and support to those most in need


The Australian and New Zealand Banking Group’s report expresses the company’s dedication to sustainable development. It has notably aligned its goals with the Paris Agreement Accords and the UN SDGs.

Its ESGs are evaluated in accordance with the United Nations Guiding Principles Reporting Framework. Additionally, they evaluate social and environmental risks through the International Integrated Reporting Framework and through the Equator Principles.

The Bank has set clear, measurable and attainable goals for its own ESG performance — specifically its environmental impact — and has been able to meet or surpass most of the goals they had set in 2017 (see progress section).

Moreover, ANZ has financed several environmental projects in the housing and renewable energy industries while improving energy efficiency in its own office spaces. ANZ has also set goals for their clients to help them transition to more sustainable operations. 

ANZ is also classified in several environmental indexes and has received awards for employee wellbeing and workplace equality; however, it has not received any awards for environmental sustainability.

Around 40% of their suppliers are sustainably certified and the bank continues to monitor human right violations in their supply chain. 

As a bank it seems like ANZ has made significant steps in promoting green bonds and other labelled sustainable bonding — which has been confirmed by outside sources. The bank has been transitioning to sustainably labelled bonds — being the first in Australia to introduce the UN SDG bonds.

With this said, the bank has a history of lending billions of dollars ($10.84 billion since 2017) to the fossil fuel industry, a number that is significantly higher than other banks of its size in the Australia and New Zealand regions.

Therefore, the company has been rated a C. 

Analyst Outlook: Positive

The Australian and New Zealand Banking group has a comprehensive report that states attainable and measurable targets for the improvement of the bank’s ESGs. It seems like the bank is transparent in reporting its progress towards these goals as it admitted in certain instances that the target was not obtained. 

ANZ has invested $15.227 B in the fossil fuel industry since 2016. Despite this investment, ANZ has decreased its investment from 2018 to 2020.

ANZ’s report does have efficient and effective sustainability measures and targets to increase investment in renewable energies for which progress KPIs have been reported.


Key Points

  • Since 2019, ANZ has funded and facilitated $9.08 billion in sustainable finance transactions
  • In August 2020, it became the first bank to issue a Sustainable Development Goals Bond in Australia (approximately $4 billion in bonds)
  • ANZ has made strong progress against their scope 1 and 2 emission target and have exceeded their renewable energy, paper and water targets
  • ANZ has still been lending $10.84 billion to fossil fuels globally since 2016 including $2.9 billion last year alone to oil and gas producers such as Santos, Vitol, Thai Oil, United Petroleum and mining giants such as Glencore
    • That compares to $6.5 billion worth of exposure to fossil fuels at Westpac, $6.2 billion at the Commonwealth Bank and $3.6 billion at the National Australia Bank
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