Sustainability
Leadership

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Sustainable yesterday, today and tomorrow

We believe that as one of Australia’s largest companies it is important that we help to create positive social, economic and environmental impacts in the communities in which we operate.

As the first company in Australia to achieve its 200th year, we know the value of focusing on the long term and recognise that the decisions we make today will determine tomorrow. And, while we have a clear strategic direction, it is vital that we continue to adapt, responding to changes in the environment and embracing new opportunities and challenges.

The issues that matter most

To ensure we continue to support all our stakeholders we have established a number of channels to gather their feedback and assess emerging trends. This process helps us to better understand stakeholder needs and identify the current and emerging issues that matter most to the people connected to our business. In turn, we are able to direct our efforts and resources to these most pressing emerging risks and opportunities. We have categorised our material issues into the following six themes.

SERVICE
LEADERSHIP

The financial services industry is going through a period of rapid change. Customer needs are evolving (shaped by new technologies), regulation and compliance have increased, and competition is becoming more intense. Our strategy puts service at the heart of everything we do, helping customers achieve their financial goals, at every stage of their life.

CONDUCT
AND TRUST

Banks play an important role in the financial system and in the personal lives of customers. Because of this trust is vital. It is up to all the banks, collectively and individually, to restore public trust and confidence. This year we have stepped up our efforts to rebuild our standing and put it right for customers.

DIGITAL
INNOVATION

We are living in a 24/7 digital world. New businesses are emerging and customer expectations are changing. We are embracing the digital opportunity, investing in our mobile and online platforms, our technology infrastructure and our cybersecurity capabilities. At the same time we are fostering innovation by changing the way we work, building partnerships with innovative businesses and directly investing in new fintech opportunities that have the potential to change the financial services landscape.

WORKFORCE
OF THE FUTURE

Children born today are expected to live beyond their 100th year. During this longer lifetime, the nature of work and education is likely to change multiple times. In preparing for these developments we are building a more diverse and highly skilled workforce—with an even stronger service culture—to help us respond to the changing future of work.

POSITIVE
SOCIETAL IMPACT

As one of Australia’s largest companies we can play an active role in creating positive social, economic and environmental impacts. Our aim is to foster a fairer and more inclusive future for all. Today our actions span across community giving, grants and scholarships, mentoring and education, along with providing banking services (including investment and lending) to sustainable solutions and communities.

VALUE
CHAIN RISK

The size and scale of our business means we have the ability to influence sustainable and ethical practices through our supply chain and the supply chains of our customers and suppliers. This year we have updated and published position statements and action plans on climate change and human rights, and released our Responsible Sourcing Code of Conduct.

Sustainability strategy progress

OUR SUSTAINABILITY STRATEGY

In 2013 we set our five-year sustainability strategy which centres around three priority areas:

  • Embracing societal change
  • Environmental solutions
  • Better financial futures.

2017 marks the final year of that strategy and we have made strong progress, meeting or exceeding 80% of the measures. Highlights of performance follow, with full details, including performance metrics, in our 2017 Sustainability Performance Report.

Our 2018–20 sustainability strategy will be announced in November 2017 and will be available online at www.westpac.com.au/sustainability.

Embracing societal change

Actions to help improve the way people work and live, as our society changes

2017 initiatives
Supporting gender equality

This year we achieved our goal of 50% women in leadership roles by 20171, and exceeded our target of increasing the number of women in general management positions to 41%.

Building the skills for the future

This year we offered Australian students free access to maths education through Mathspace, a maths app to help students boost their maths skills. We also launched The Business Institute to help our business bankers continue to develop their skills and expertise. This year we announced our 200th Westpac Scholar through Westpac Bicentennial Foundation. This represents, since 2015, a $12.6 million investment (including contributions from university partners), in individuals who are solving some of Australia’s biggest problems.

Enhancing our position on human rights

We published our updated Human Rights Position Statement and 2020 Action Plan. With an estimated 45 million people around the world subject to modern slavery, we believe businesses have a responsibility to take action where they can, including through their supply chains.

Supporting cultural diversity

To help international students prepare for their move to study in Australia, we shared tips on managing finances on Chinese social media channels, and hosted an educational event for over 200 migration agents with advice and tools to help their clients.

Indigenous Australian recruitment milestone

In 2016 we reached our target of employing 4% of our staff who self identify as Indigenous Australian. In 2017 we maintained this ratio and exceeded our 2015-17 Reconciliation Action Plan commitment of recruiting 500 Indigenous employees by 2017.

Inclusion for all

To coincide with The International Day of People with Disability, we launched our new 2017–20 Accessibility Action Plan. This plan updates our accessibility and inclusion commitments for customers, employees and communities. This year St.George Bank became the first Australian bank to be accredited as dementia-friendly by Dementia Australia.

Change through supply chain

This year we exceeded our cumulative target of $3 million supply chain spend with Indigenous owned businesses by 2017, and we have increased our target to $10 million by 2020.

WOMEN IN
LEADERSHIP
(%)1
INDIGENOUS AUSTRALIAN'S
RECRUITED
(CUMULATIVE)
  1. Women in Leadership refers to the proportion of women (permanent and maximum term) in leadership roles across the Group. It includes the CEO, Group Executives, General Managers, senior leaders with significant influence on business outcomes (direct reports to General Managers and their direct reports), large (3+) team people leaders three levels below General Manager, and Bank and Assistant Bank Managers.

Environmental solutions

Actions to help find solutions to environmental challenges

2017 initiatives
Enhancing our position on climate change

Following extensive stakeholder engagement and the scenario planning analysis conducted in 2016, we announced our third Climate Change Position Statement and 2020 Action Plan. The plan is consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). It outlines our commitment to helping limit global warming to less than two degrees, including:

  • Setting a $10 billion target for lending to climate change solutions by 2020 and $25 billion by 2030.
  • Tighter criteria for financing any new coal mines—financing for any new thermal coal projects limited to existing coal producing basins. Projects must rank in the top 15% globally in terms of coal quality, and actively reduce the emissions intensity of our exposure to the power generation sector over time.
Firsts in climate bonds

We issued our first offshore foreign currency Climate Bond for US$50 million, a first among Australian banks, and published our first Westpac Climate Bond Impact Report.

Increased commitment to the CleanTech and environmental services sector

Our committed exposure to CleanTech and environmental solutions such as renewable energy, green buildings, forestry, energy efficiency and green business initiatives, increased to $7 billion, 16% ahead of our 2017 target.

Innovative environmental solutions

This year we were selected as the preferred financial partner for the Tasmanian Energy Efficiency Loans Scheme, funding $8.7 million in energy efficient solutions. We also introduced sustainability scoring to BT Panorama allowing customers and advisers to review how their investments on the ASX200 and over 200 managed funds rate on environmental, social and governance factors.

Reduced our environmental footprint

We achieved our 75% waste to recycling target in Sydney head offices following improvements in waste sorting, site audits and increased screening. At the same time we achieved a 6% improvement in electricity efficiency across our commercial and retail sites, exceeding our 2017 target. We also maintained our carbon neutral status for the fourth year in a row.

Almost two thirds of lending to electricity generation in Australia and New Zealand was to renewable energy generation sources.

LENDING AND INVESTMENT IN CLEANTECH AND ENVIRONMENTAL SERVICES ($BILLIONS)
ELECTRICITY EFFICIENCY IN COMMERCIAL AND RETAIL SITES (KWH/M2)2,3
WESTPAC'S LENDING TO THE ELECTRICITY GENERATION SECTOR—AUSTRALIA AND NEW ZEALAND
(% of total)
  1. From 2015, a higher threshold was used for green buildings, in line with property industry trends, accounting for the majority of the change from the previous year.
  2. Electricity efficiency, electricity usage and GHG targets include all Australian and New Zealand commercial and retail properties only. Excludes ATMs, stand-alone data centres and fleet vehicles.
  3. Rebased in 2015 to align boundary and methodology used in New Zealand to be consistent with Australia.

Better financial futures

Actions to help customers have a better relationship with money, for a better life

2017 initiatives
Financial inclusion

This year we released our first Financial Inclusion Action Plan laying out our vision and guiding priorities for the next 12 months around the areas of crisis and hardship, understanding money and inclusive growth.

Evolving our products and services

To meet the changing needs of customers, this year we introduced a number of new products and services. This included savings products with our Westpac Life and Westpac Bump accounts, and a new basic credit card, Westpac Lite, with an interest rate of 9.9%. To help customers following a loss, we introduced new bereavement support resources on our websites as well as bereavement customer guide booklets.

Increased lending to social and affordable housing

This year we increased our lending and investment in the social and affordable housing sector to $1.32 billion, up from $1.05 billion a year ago, although this is short of our $2 billion target. There are changes underway, however the pace of policy change has been slower than anticipated and finding scaleable solutions remains challenging. This will be a key area of focus in the next phase of our sustainability strategy.

Improving banking access in the Pacific

In a joint venture with the Pacific Financial Inclusion Program, we launched Choice Wantok, an initiative to create new ways of offering banking services to people in remote areas of PNG.

Financial hardship

In 2017 our specialist teams helped over 28,000 customers experiencing financial hardship and we were the first bank in Australia to offer the option of negotiating payment arrangements through online banking. To assist customers impacted by the mining downturn in Western Australia, we have set up a dedicated team of case management specialists.

Improving financial literacy

Delivered financial literacy training to 112,263 people through face-to-face workshops and online sessions.

Better banking for Indigenous Australian customers

This year we made available close to $475,000 in microfinance loans with Many Rivers Microfinance to support Indigenous business owners, and committed to supporting at least 110 small Indigenous businesses a year to 2019. Our Indigenous Business Banking team conducted more than 33 community visits to assist customers build their financial knowledge and skills.

Supporting Businesses of Tomorrow

This year we announced our 200 Businesses of Tomorrow, recognising businesses that are contributing to Australia’s future as it transitions to a knowledge economy. 20 high-potential businesses also received a $100,000 professional services package and study tour to the USA and China.

NET BASIC BANKING ACCOUNT CUSTOMERS IN THE PACIFIC
(# CUMULATIVE)
LENDING AND INVESTMENT IN THE SOCIAL AND AFFORDABLE HOUSING SECTOR ($BILLIONS)
For further information, including performance metrics, please download our 2017 Sustainability Performance Report.

Proudly Supporting
Australia for 200 Years

2017 Westpac Group
Annual Reporting Suite