See our 2013 Sustainability Review for Sensitive Sector Policy case studies.

Our policies adopt a principles-based risk framework which is applied to decision-making in sensitive transactions across the industry sectors referenced above. The following principles help inform our decision-making on clients, transactions and business strategies:

Compliance with the relevant regulatory framework is essential and we also work closely with our customers to support and encourage them to invest in new and improved technologies and adopt more sustainable practices.

Energy

Overview

Human-induced climate change is a global issue facing governments, individuals, businesses and communities, and there is a risk to business and investment should the impact of climate change not be addressed.

In financing the energy sector, we therefore recognise the importance of playing a role in supporting and encouraging our customers to build carbon risk into their business strategies.

We support customers that share our values and those that are working to adopt and deliver a range of energy solutions that will assist the economic development of our region over time.

In addition to the principles that apply to all sensitive sector policies, ANZ upholds a fourth principle for energy. “Our diverse energy portfolio should continue to reflect the range of energy sources and innovative technologies required to assist our customers to transition to a lower carbon economy.”

Helping our customers transition to cleaner energy

We are encouraging our clients to move towards cleaner energy sources. Our Energy policy specifically details:

  • Assessing best practice:  We encourage our customers to apply world’s best practice to manage environmental and sustainability impacts.
  • Reducing carbon intensity: We will support our customers to make changes to existing business practices with regard to energy efficiency and research and development of low carbon intensive technologies. 
  • Change in fuel mix:  We will support our customers in making the transition to a lower carbon intensity fuel mix through investment in energy efficiency and less carbon intensive generation. 
  • Disclosure of carbon emissions:  We will work closely with customers that are actively engaged in understanding and disclosing their carbon exposure. 

We will only support new coal-fired power plants that demonstrate the capacity for improved carbon emissions performance over time.

As we move to better balance our energy investments towards cleaner energy alternatives, we aim to increase our gas and renewables portfolio (as a proportion of our total project and structured finance energy portfolio) by 15-20% by 2020.

To help mitigate climate change we will increase the proportion of lower-carbon (gas and renewables) power generation lending in our Project Finance business by 15-20% by 2020.

Extractive Industries

Overview

There is a well developed understanding of social and environmental risk management within the extractive industries sector. We strongly support government and industry initiatives that seek to continuously improve and assure performance in the sector.

We support customers that share our values and those that are working to adopt and deliver responsible practices to improve resource management and assist economic development.

Helping our customers with responsible resource management

As a minimum, we work with our customers to ensure compliance with environmental laws and regulations. We also work with our customers to ensure:

  • An environmental and social impact assessment is undertaken to inform the operational, environmental and social management requirements;
  • A comprehensive analysis of the health and safety aspects of the operation on both employees and the surrounding community has been prepared and health and safety management plans have been developed; and
  • Operation closure planning and funding mechanisms have been incorporated in project planning.

The policy also applies more stringent requirements and demonstration of appropriate practices for particular high impact activities or where specific adverse issues have the potential to arise. This may include commissioning our own independent assessment of the operation.

ANZ will not support any new mining or mineral processing activities with riverine tailings/waste disposal.

Forestry and Forests

Overview

Forests represent a major social and economic resource and are recognised as a source of livelihood for some communities as well as for their natural resource values.

Forests management certification

Our Forestry and forests policy provides a framework comparable with internationally recognised certification schemes such as those endorsed under the Programme for Endorsement of Forest Certification (eg. the Australian Forest Certification Scheme) and Forest Stewardship Council accredited schemes.

The policy does not endorse or require the adoption of particular certification schemes however, we rely heavily on the certification of customers to establish compliance with our policy.

Hydroelectric Power

Overview

We recognise that hydroelectric power has an important role to play in supporting social and economic development and delivering energy security throughout our region.
Our Hydroelectric Power policy guides decision-making relating to transactions that impact on water demand, supply and utilisation; and that will contribute to energy security and economic development, while minimising social and environmental impacts.

Encouraging water stewardship

ANZ’s Hydroelectric Power policy commits us to support customers in adopting cost-effective water use efficiency, recycling and reuse initiatives in all activities across the water cycle including water supply, water usage and water treatment.

Supporting communities

ANZ’s Hydroelectric Power policy commits us to supporting customers to work with communities impacted by infrastructure projects. We engage with our customers and encourage them to develop appropriate social management approaches to minimise the adverse impact of hydroelectric power projects on communities.

Military Equipment

Overview

We have recently revised our Military Equipment policy to clearly set out our position and to confirm that we do - and will continue to - provide financial services to defence sector customers, including the provision of general corporate facilities. We recognise that military equipment has a role to play in ensuring that governments are able to defend their citizens and territories.

However, we acknowledge that some defence sector customers have been the subject of claims about involvement in the manufacture of controversial weapons such as cluster munitions. Some customers and stakeholders have also expressed to us the view that our financial involvement with these companies means that we are indirectly supporting the production of these weapons.

Our revised Military Equipment policy states that we do not wish to be involved with customers that are involved in the sale or manufacturing of controversial weapons as defined in our policy, or the production of components designed for specific use in controversial weapons.

Our policy has been developed in consultation with our customers, NGOs, governments, industry and sector experts.

Water

Overview

We support customers that share our values and that are working to adopt and deliver responsible practices to improve water management and assist the economic development of our region. We also support infrastructure projects that promote improved use and management of water as a resource.

In addition to the principles that apply to all sensitive sector policies, ANZ upholds a fourth principle for water “Our approach to decision-making on water issues is based on the concept of stewardship across the water management cycle.”

Encouraging water stewardship

The Water policy commits us to support customers in adopting cost-effective water use efficiency, recycling and reuse initiatives in all activities across the water cycle including water supply, water usage and water treatment.

We will work with irrigation and water-intensive industrial customers covered by this policy to encourage them to develop water management plans that address issues such as water loss prevention measures, water quality, metering and management of discharges.

 

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