ANZ New Zealand's Approach To Environmental Sustainability
INTRODUCTION
Me hoki whakamuri, kia anga whakamua - look to the past in order to forge the future.
We are the guardians of the present and have a responsibility to protect the environment for future generations.
ANZ New Zealand traces its history back to 1840 when, under the guise of Union Bank, it opened the country’s first branch in Pito-One (Petone). In the 182 years since, ANZ has become one of the country’s largest businesses, growing with New Zealand and sharing in the country’s success.
Our future success depends on the social, financial and environmental wellbeing of Aotearoa. It’s therefore incumbent on ANZ to take responsibility for playing our part to care for and protect our environment for future generations.
This document explains our ambition and approach to environmental sustainability and identifies our priorities, commitments and partnerships that will help New Zealand transition to net zero by 2050, while recognising that there’s more to do.
NET ZERO 2050
We support our customers in their transition to net zero, and take into account New Zealand’s natural environment and the local operating environment.
ANZ Group’s climate commitment
We want to be the leading Australia and New Zealand-based bank in supporting customers to transition to net zero emissions by 2050.
We support the Paris Agreement’s goals and recognise historic levels of investment and lending will be needed to achieve them.
This creates significant financing opportunities for ANZ which we will realise together with our customers.
Across ANZ Group we are supporting customers in shifting to low carbon business models and operations by directing of finance, services and advice into key priority areas and sectors.
Our focus areas include:
1. Reducing our own impact by managing and reducing emissions from our operations
2. Supporting our customers and industries to transition
3. Aligning our lending decisions to the Paris Agreement goals
4. Engaging constructively and transparently with stakeholders
ANZ NZ’s approach to environmental sustainability
Our approach to environmental sustainability reflects ANZ Group commitments by supporting our customers in their transition to net zero, while taking into account New Zealand’s natural environment and the local operating environment.
For example, New Zealand’s climate-related disclosures legislation will require large financial institutions to report their climate risks.
For ANZ NZ this presents opportunities for us to consider how we can:
• build our capability and knowledge, for example by analysing climate data to make credit decisions and support our customers; and
• speed up finance solutions for the transition, support technological innovation and remove barriers to change.
In developing ANZ NZ’s approach to environmental sustainability, we interviewed a range of stakeholders, customers and staff.
This research informed our thinking and helped us identify four key areas.
ANZ NZ'S FOUR ENVIRONMENTAL SUSTAINABILITY PILLARS
REDUCING OUR IMPACT
We are integrating sustainability and climate change considerations into the bank’s activities and lead the way by managing and reducing our own emissions.
How we are doing it:
• Our suite of environmental footprint targets are focused on carbon emissions, water and paper consumption and waste.
• We are seeking to minimise the use of resources in our operations through the efficient consumption of energy within our buildings. We’re also encouraging staff to make greater use of technology such as video conferencing to reduce emissions associated with travel.
• Our aim is to reduce emissions where possible, however, unavoidable emissions are offset in accordance with our certification under the Australian Government’s Climate Active Program.
• We have maintained carbon neutrality for our operations since 2010.
• Scope 1 and 2 emissions down 43% since 2015*.
• Office water consumption is down 58% since 2017*.
• Waste to landfill is down 82% since 2017*.
• Paper consumption is down 48% since 2015*.
• We are reducing our fleet emissions and from FY22 all new vehicles for NZ are hybrid and no new internal combustion engine vehicles are being added to the fleet.
* Significant reductions due to Covid-19 working from home restrictions.
HELPING OUR CUSTOMERS
We are supporting customers to identify and reduce their emissions, identify their climate-related risks and opportunities, and/or transition to a more sustainable business model.
How we are doing it:
• We are using proprietary and third-party datasets to generate insights about the physical risks of climate change, such as extreme weather events, and how they impact businesses, property owners and individuals in different geographic areas across Aotearoa.
• We are upskilling our frontline business banking teams with foundational knowledge of climate change to support their engagement with customers.
• We plan to accelerate our workforce development by participating in the EY/Centre for Sustainable Finance Aotearoa Sustainability Academy Learning Pilot.
• In FY22 ANZ Group invested US$50 million for a minority equity stake in Pollination, an Australian-based investment and ESG advisory firm. Pollination will deliver innovative solutions to help our customers achieve net zero and support biodiversity.
FINANCING THE TRANSITION
We are supporting customers to invest in environmentally sustainable practices and technologies through lending and investment, and assisting those who are transitioning to sustainable business models with transitional finance.
How we are doing it:
• 80% of ANZ NZ home loan customers are interested in improving the sustainability or energy efficiency of their home or vehicles, so we introduced the ANZ Good Energy Home Loan – a new, low-interest solution for Kiwis looking to become more energy efficient. Eligible solutions include solar panels and batteries, electric vehicles and chargers, heat pumps, insulation, double glazing and rainwater tanks.
• ANZ Group has a target to fund and facilitate at least A$50 billion by 2025 towards sustainable solutions for our customers. As at 1H22 we have funded and facilitated AU$31.03 billion (62%) towards this target.
• As New Zealand’s largest lender, ANZ NZ is contributing to this target with a range of sustainable financing solutions to help our customers meet their climate change objectives. For example:
– In FY22 we arranged New Zealand’s first sustainability-linked bond for Spark Finance. Issued to institutional investors, the $100m bond has a Sustainability Performance Target to reduce their scope 1 and 2 emissions.
– In FY22 we partnered with Auckland Council to create what is believed to be the country’s first sustainability-linked lending for a local authority. The loan facility and derivative are linked to Auckland Council achieving emissions reductions and supporting Māori and Pasifika business and social enterprises in Auckland through its social procurement model.
• ANZ Group is encouraging and supporting 100 of our largest-emitting business customers to establish, and where appropriate, strengthen low-carbon transition plans. 20 of these customers are managed by ANZ NZ, and all have been engaged in ongoing, robust and productive discussions.
• ANZ NZ has been reducing our lending to the fossil fuel sector for some years. As at 1H22, it accounts for just 0.25% of our total lending whereas our lending to the renewable energy sector is almost four times that, thus reflecting our intention to help finance the transition to net zero.
SUPPORTING OUR COMMUNITIES
We are supporting our communities to adopt sustainable practices, preserve their local environment and adapt to the impacts of climate change.
How we are doing it:
• Through our partnership with Sustainable Coastlines, our staff volunteer in the annual ANZ Love Your Water Tour – a series of native tree planting events across Aotearoa to restore local waterways.
• As a partner of the Mohio Climate Innovation Lab, ANZ NZ has contributed to the development of new financial products for the forestry sector that aim to produce positive social and environmental outcomes in addition to financial returns.
• In FY21 we donated $1.2 million to charities across New Zealand through our payroll giving programme, the ANZ Staff Foundation.
OUR ENVIRONMENTAL SUSTAINABILITY PARTNERSHIPS, COMMITMENTS AND FRAMEWORKS
We leverage the skills of experts, organisations and institutions to help inform our strategies and policies, as well as deepen our expertise to help build a more sustainable future for Aotearoa New Zealand.
Our partnerships and commitments include:
