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STAKEHOLDER ENGAGEMENT

We know that strong stakeholder relationships are essential to our success and our ability to create long-term value. Transparent and responsive stakeholder engagement, combined with a real willingness on our part to listen, is one of the most important ways in which we can demonstrate trustworthiness and rebuild community confidence. Stakeholder engagement is embedded in our policies, processes and operations. Outlined below are the key issues raised by our stakeholders throughout the year and how we responded.

For more detailed information on how we have responded to what our stakeholders have told us, refer to our 2018 Sustainability Review available in December at anz.com/cs.

Our stakeholders and how we engage with them

Key issues raised

How we responded

Our stakeholders and how we engage with them

Customers

  • ‘Your Say’ – ANZ’s online customer research community
  • Online and face to face, forums, surveys, focus groups and individual in-depth interviews
  • ‘Voice of Customer’ platform
  • Conversations with our Customer Advocate and Customer Fairness Advisor
  • Complaints Resolution Centre
  • Social media

Key issues raised

  • Conduct and culture in the Australian banking industry, financial advice and treatment of customers in financial difficulty
  • Product suitability
  • Customer service
  • Fees and charges
  • Dissatisfaction relating to digital products

How we responded

Our response to the issues raised by customers can be found in the Royal Commission and Improving Customer Outcomes sections at pages 8–9 and more detail will be available in the 2018 Sustainability Review.

Our stakeholders and how we engage with them

Government and regulators

  • Appearances before, and written submissions to, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
  • Regular meetings with political stakeholders, officials and regulators
  • Submissions to parliamentary committee inquiries and other government and regulatory consultations

Key issues raised

Australia:

  • Customer detriment caused by poor conduct and governance failures in the banking industry
  • Open data, comprehensive credit reporting, ASIC
    powers (e.g. design and distribution obligation, and product intervention power), terms of reference for the Australian Financial Complaints Authority
  • Competition, aspects of banking products and practices
  • Public policy development on issues and programs related to nancial wellbeing and capability

New Zealand:

  • Conduct and culture in the banking industry
  • Regulatory issues including tax reform, financial
    markets, overseas investment restrictions, retirement savings, financial advice and responsible consumer lending
  • Public policy development on issues including financial inclusion, housing and retail payments

How we responded

ANZ seeks to listen and engage constructively with the Royal Commission, regulators, government and policy makers. In addition to participating in the Royal Commission (discussed at page 8), we have participated
in a wide range of government consultations and parliamentary inquiries.

An overview of the work underway in response to key inquiries/ reports, is outlined in the Improving Customer Outcomes section at page 9.

Our stakeholders and how we engage with them

Stakeholders

  • Results briefings
  • Strategy briefings, Environment, Social
    and Governance (ESG) briefings and
    other market updates
  • Annual General Meeting
  • Disclosure documents, including results
    announcements, investor presentations, external reporting suite and other ASX lodgements
  • Dedicated ANZ shareholder website

Key issues raised

  • Opportunities and challenges associated with the current operating environment
  • ANZ’s strategic focus and business priorities, including the execution of our strategy
  • Financial performance, composition and sustainability of earnings
  • Capital and balance sheet management, including quantum of capital held and e cient use of capital, balance sheet quality and liquidity and funding positions
  • Dividend and dividend policy
  • ESG approach, commitment and progress

How we responded

We seek to provide shareholders with quality information in a timely fashion through ANZ’s reporting suite, announcements and briefings to the market, half- yearly shareholder letters and through our dedicated shareholder site at shareholder.anz.com.

In 2018 we held our first ESG Briefing for institutional investors and fund managers, the purpose of which was to share with them how we are responding to external social and environmental challenges.

Our stakeholders and how we engage with them

Employees

  • ‘My Voice’ survey of employee engagement
  • Regular interactive webcasts with CEO and Executive Committee members
  • ‘ANZ Way’ Podcast series
  • Direct communication and formal twice-yearly performance appraisals with line managers
  • Internal communications channels, including intranet and Yammer
  • Meetings with unions representing ANZ employees

Key issues raised

  • Royal Commission – hearings, impacts and implications
  • Strategic focus and business priorities, including purpose and values
  • Training and development, including on ‘New Ways of Working’ and ‘New Ways of Leading’
  • Raising issues and concerns without fear of negative consequences
  • Employee health, safety and wellbeing
  • Diversity and inclusion
  • Flexible working arrangements
  • Organisational restructuring
  • Performance management
  • Remuneration and reward

How we responded

Our response to the issues raised by employees will be available in the 2018 Sustainability Review.

Our stakeholders and how we engage with them

Non government organisations (NGOS)

  • A regular program of CEO and senior executive meetings with civil society leaders to exchange ideas and
    discuss material social, economic and environmental issues of mutual interest
  • Direct engagement with NGOs and academics
  • Regular engagement with peak bodies for professional community services, such as financial counselling
  • Regular meetings with our community partners

Key issues raised

  • Remediation and compensation schemes
  • Responsible gambling initiatives and policies
  • Vulnerable customers, hardship programs and consumer protection
  • Support for customers and communities impacted by drought in Australia
  • Ensuring our operations and supply chain are free of ‘modern slavery’
  • Climate change, carbon risk management and the role of banks in supporting the transition to a low carbon economy
  • Strategies to tackle unemployment and build social and economic participation
  • Challenges associated with homelessness in Australia

How we responded

Our response to the issues raised by NGOs will be available in the 2018 Sustainability Review.

Our stakeholders and how we engage with them

Industry Associations

ANZ is a member of a number of industry associations. The most significant of these memberships are the Australian Banking Association (ABA), the Business Council of Australia, the Financial Services Council, the Association of Superannuation Funds of Australia, Insurance Council of Australia, the New Zealand Bankers’ Association, and Business New Zealand.

Via these memberships we participated in:

  • the development and implementation of the industry consumer protection reform program in Australia
  • discussions about industry-wide issues and strategy
  • provided input into industry association responses to parliamentary inquiries and government consultations

Key issues raised

  • Conduct and culture in the Australian banking industry, including the complaints handling and dispute resolution, hardship and remediation
  • Remuneration, particularly retail sales commissions and product-based payments and commissions
  • Comprehensive credit reporting and open banking

How we responded

We engaged with key industry associations, including the ABA, (we assumed the role of Chair Bank), and the Financial Services Council to develop strategic responses to reputational issues.

Together with other Australian banks we continued to implement the industry reform program. As part of this work, the Australian Securities and Investment Commission (ASIC) approved a new Banking Code of Practice, to come into e ect mid-2019. Refer to the Improving Customer Outcomes section at page 9 for more detail.

How We Create Value Material Issues and Risk Management