Performance

ANZ's approach to corporate responsibility focuses on the issues and opportunities most relevant to our business and expertise.

Each year we set goals and establish work programs around priority and issues for our industry, our customers, employees and the community. These include providing responsible products and services for our customers, creating a diverse and inclusive workforce, and improving financial capability particularly among the most disadvantaged people in our community.

2011 performance

Achieved iconAchieved
Partially achieved iconPartially achieved
Did not achieve iconDid not achieve

Responsible practices

Customers

Goal

Assessment

Performance

Maintain our leadership position on customer satisfaction amongst the major banks in Australia and improve our performance in New Zealand.

  • AUS: We continue to lead the four major banks (CBA, Westpac and NAB) in Australia on retail MFI customer satisfaction at 79.9% (October 2011).

  • NZ: This year NZ has adopted the methodology used in Australia for tracking customer satisfaction. Applying this methodology, our customer satisfaction score for ANZ is 89% - up from 85% this time last year - and 92% for the National Bank New Zealand (NBNZ) - up from 90% this time last year. On a like for like basis with 2010, ANZ customer satisfaction is 57%, up 3% since September 2010 and NBNZ is 66%, the same as the September 2010 result.

Achieved

Improve our performance on the Peter Lee and Associates survey of Corporate and Institutional clients.

ANZ moved to outright first in lead bank status in both Australia and New Zealand in the Peter Lee Relationship survey this year. In Australia we were rated first in 14 of 25 dimensions and first in 17 of the 21 dimensions in New Zealand.

Achieved

Resolve 90% of retail customer complaints within 5 business days.

Over 2011 we resolved 82% of complaints within 5 business days, against a target of 90%. Complaint resolution has been a core focus across our retail business with enhanced reporting that now includes complaints resolved in the frontline.  A number of improvements such as enhanced branch discretions have also been made to help reduce complaint resolution time. A detailed overview of our approach and results this year can be found online.

Partially achieved or in progress

Publicly report evaluations and action plans arising from a review of our initiatives to support customers facing financial difficulty including our Debt Advice and Early Assistance pilots in Australia and customer financial well-being initiatives in New
  • AUS: Despite some unforeseen issues (e.g. the Natural Disasters of January 2011) we have completed the 'debt advice' and 'early assistance' pilots.  Reviews have been conducted which concluded that the debt advice pilot demonstrated its ability to provide an additional level of support to customers in financial hardship and the early assistance program resulted in lower default rates when compared to a control group. We are examining findings and exploring how to transplant learnings from these pilots into standard operating procedures.
  • NZ: We continue to review the Financial Well being programme to ensure that customers and frontline staff receive appropriate support and the right outcomes are being achieved.  We have closely examined the review of the two pilots in Australia to see if any learnings can be incorporated.  The key opportunities are to further strengthen the relationship we have with the New Zealand Federation of Family Budgeting Services (NZFFBS) and identify measures to help assist our customers.

Achieved
Implement products & services to assist clients and customers with the transition towards a lower carbon economy including increasing the proportion of lending to the renewable energy sector. Our Institutional business is one of the leading renewable energy financiers in Australia, with renewable energy projects, such as wind power, representing around a third of our project finance power portfolio.  ANZ has continued to support the renewable energy sector in 2011 with 475MW coming from two major new wind farm projects alone.  The Macarthur Wind Farm will be the largest wind farm in the Southern Hemisphere comprising 140 wind turbines which will generate enough clean energy to power the equivalent of 220,000 average Victorian households per annum.  As a key player in this sector, ANZ was heavily involved in the inaugural ‘Clean Energy Week' which was recently held in Melbourne.  We are also supporting utilities companies meet their renewable energy obligations through securing renewable energy certificates via our trading facilities. Achieved

Employees

Goal Assessment Performance
Achieve an employee engagement score of 68% and implement actions to respond to feedback from our 2010 My Voice Employee Survey. We exceeded our group target of 68%, with overall Employee Engagement increasing year on year from 64% to 70%. This follows focused action to respond to the issues and opportunities identified by our employees the previous year. For example; we launched ANZ’s new Leadership Pathway offering training and development opportunities for people managers; a simplified and enhanced Competency Framework describing the capabilities we need to further develop in our people and to assist employees and their managers shape career development plans; encouraged and supported all line managers and employers to have constructive career development discussions with their employees as part of their mid year performance review and introduced a global program of awareness and engagement activities to help staff understand and define the role they play in delivering our super regional strategy. Achieved
Engage 120 of our Senior Executives in a leadership program to identify and make the most of opportunities created by our super-regional growth strategy. Around 130 senior executives have attended leadership development programs since Oct 2010 including five Executive Leadership Programs and one higher level Super Regional Leaders Program.  This is a new initiative designed to support our senior leaders to successfully lead our organization in an increasingly complex environment. Achieved
Implement employee wellbeing programs and reduce our Lost Time Injury Frequency Rate in Australia (by 5-10%), New Zealand (by 1-5%) and stay under an LTIFR of 1.0 in India. The lost time injury frequency rate (LTIFR) has been reducing over the last 5 years at an average rate of 10%.  In Australia we reduced our LTIFR by 3.2% to 2.13.  In New Zealand we made pleasing progress, reducing our LTIFR by 18.2% to 1.8.  We remain under 1.0 in India.  The global implementation of our health and safety system is on track, with occupational health and safety plans implemented in each country across our network. Achieved
Achieve 100,000 hours volunteering globally and undertake skilled volunteering pilots in Australia, Philippines, Papua New Guinea and Vietnam. We achieved over 91,000 volunteer hours in 2011 against our target of 100,000 hours.  Skilled volunteering pilots are underway in Australia, the Philippines and Papua New Guinea.  Initial work commenced on a pilot for Vietnam but this was not implemented due to issues aligning the model with the business priorities. Partially achieved or in progress
Implement a new approach to payroll giving and achieve 15% employee participation. During 2011, approximately 11% of staff (11% in Australia and 13% in New Zealand) participated in payroll giving. In addition, appeals for natural disasters in Japan, New Zealand and Australia attracted overwhelming support from staff Group-wide with more than $1m raised.  A review of payroll giving has been completed is being implemented in Australia. Partially achieved or in progress

Supply chain

Goal

Assessment

Performance
Develop, implement and report on a Global Sourcing policy and Global Supplier Code of Practice incorporating social, environmental and governance standards. A new Supplier Code of Practice (SCOP) was launched 1 July 2011 to suppliers, staff and global stakeholders with compliance clauses embedded into Global Supply contracts.  The SCOP incorporates governance and general compliance, workplace relations, occupational health and safety, ethical business practices and environmental management. Achieved
Continue to implement and report on our program of verification and spot checks for compliance with our sustainability standards amongst high risk suppliers. A revised external supplier verification program has been developed and implemented across ANZ's global operations.  Supplier auditing has been conducted using desktop and in-house audit conditions, with suppliers selected through an enhanced risk based approach developed by ANZ in collaboration with a third party. Achieved
Enhance the criteria guiding our purchasing decisions, to encourage and develop more relationships with inclusive companies who employ and support people with disability. We have inserted new questions into our on-line sourcing tool for our global operations. These questions will help identify suppliers that share our commitment to support the employment of people with disability and guide purchasing decisions. Training for global sourcing category and sourcing managers will accompany these changes. Achieved

Governance

Goal

Assessment

Performance
Continue implementation of our CR framework by developing clear criteria and flagship programs to support each of our priority areas. We continue to implement the CR framework focussing on programs and initiatives which support our five priorities. New initiatives aligned include: Super Regional Volunteers - three international skilled volunteering secondments where our employees will volunteer in a developing country for a period of three months; implementing our approach to human rights across our business; and extending our financial capability initiatives across Asia and the Pacific.  We also worked closely with the business to set a suite of CR targets for the coming year that support our priority areas. Partially achieved or in progress
Continue implementation of our human rights standards including publicly reporting our progress.

We have completed activity against our first year human rights implementation priorities, including:

  • introducing mandatory training for all Client Relationship Managers with credit approval discretion to improve understanding and application of our human rights standards in decision making;
  • embedding our human rights standards in our responsible sourcing policies and processes; and
  • reviewing our People policies in order to provide globally consistent employee entitlements and benefits.

We have also developed a program of work for the coming year to further raise awareness, understanding and implementation of our standards across our business, in particular in selected countries in the Asia Pacific.

 Achieved
Complete a review of investment portfolios across our business against the guidelines set out in the UN Principles for Responsible Investment. A review of our investment portfolios is underway across our business. We have engaged with relevant stakeholders both in scoping our approach and identifying potential implications and issues. Partially achieved or in progress
Implement enhanced social and environmental policies, training and evaluation processes for sensitive sector clients in Asia Pacific. The review process of our four sensitive sector policies on Forestry, Energy, Water and Minerals and Mining has concluded. The review included a strong focus on collaboration across the business, in addition to industry research and stakeholder consultation, to provide a revised suite of relevant, 'user-friendly' principles-based policies. We also implemented mandatory online training program which helps our Credit Approval Discretion staff take greater account of social and environmental risks when making business credit decisions. Currently, the completion rate for the program stands at 84%. Moreover, we have implemented a revised social and environmental screening tool which assists staff in applying our reputational and sector specific policies to individual transactions. Achieved
Continue to develop a strong risk aware culture across the bank through employee training, proactive governance health checks and implementation of our Global Policy Governance Framework. ANZ's Operational Risk Measurement and Management Framework has been revised and has been used as a vehicle to drive the risk culture message. The revised framework will be implemented across the whole bank, supported by Level 1 and Level 2 Operational Risk Measurement and Management Policy and Level 2A Procedures, all approved by the relevant governing body. Training material to support both technical and cultural aspects of the revised framework is in build phase. Training will encompass leadership, business and risk staff.  Implementation and training schedules are due for lock down end of October, with roll out commencing shortly thereafter. Health Checks - Nine Governance Health Checks have been facilitated within Australian business units during FY11 to date. A further one is scheduled to occur before year end.  Policy - Close to 1500 policies have been decommissioned (as at end August 2011), and over 200 are currently under review. Over 82 policies have been aligned to the Policy Governance Framework since it was introduced in June 2010. Achieved

 

Education and employment opportunities

Goal

Assessment

Performance
Increase the proportion of women in management at all levels of the organisation and achieve at least 40% in total by 2011. Our representation of women in management has improved at Senior Manager level only, with overall representation declining to 38.2%, against our 2010 baseline of 38.4%.  Ongoing action to improve gender balance and achieve our target of 40% includes ensuring that at least one woman is included on all new appointment shortlists; achieving gender balance in our graduate and key development and learning programs; and early and activist career/succession planning to continue building a strong pipeline of senior women.  More than 800 leaders, including our top 200 executives participated in a learning program to better understand the economic and business case for gender balancing our business and how to best understand and capitalise on the talents of both female and male employees in ANZ’s workforce." Did not achieve
Provide 100 additional traineeships to Indigenous Australians and convert at least 65% of those who complete the program to permanent ANZ employees. We achieved our recruitment target with 111 Indigenous trainees commencing with the bank this year and of these participants, 75% are on track to complete the two-year program. 44% of participants who completed last year’s traineeship program have gained permanent employment at ANZ while an additional 13% continued on to a second traineeship which can lead to permanent employment. However, we will not meet our 65% retention target. Partially achieved
Support the advancement of people with disability through a business mentoring program; by employing an additional 35 people with a self nominated disability across our global business and achieving at least a 75% retention rate for our 2009-2011 intake. We have achieved our target, recruiting 39 people with disability into our business (28 in Australia; 4 in New Zealand and 7 in India). The retention rate for employees recruited from 2009-2011 is above 95%. Eight senior leaders have been matched as business mentors with students with disability from Deakin University. All new employees with disability were offered mentor/buddies upon commencement at ANZ with 16 matched with volunteers for the program. Achieved
Achieve a 100% completion rate for the 15 participants in our refugee employment pathway program. Sixteen refugees have been recruited for the Given the Chance Refugee Employment program in 2011, including three placements in our branch network and our first participant joining in a non-entry level role. All participants are currently on track to complete the program. Of the 51 people who participated in Given the Chance since its inception in 2007, 70% remain employed at ANZ. Partially achieved
Achieve a 2% increase in the number of Maori graduates in our New Zealand internship program. Maori graduates were specifically targeted by facilitating an induction day and liaising with MITE (Maori into Tertiary Education).  This activity achieved a 1% increase on the 2011 intake, below the target of 2% increase.  To make further improvements for future graduate intakes, we will review our recruitment and assessment processes to ensure no unconscious cultural bias exists. Partially achieved

 

Bridging urban & rural social & economic divides

Goal

Assessment

Performance
Implement innovative products and services to support social, economic and financial inclusion. In Australia and New Zealand, ANZ goMoney, which allows customers to access their banking information using their Mobile Phone, has been very well received with more than 425,000 customers actively using the application in the first year and an average 4.5 star customer rating (out of 5). ANZ goMoney has been recognised with 4 national and international awards for Innovation and Service Excellence. Achieved
Increase availability of our mobile phone savings and money transfer service in Cambodia to 185 districts and assist customers to save a total of A$450,000 by reducing the cost of remittances from urban to regional areas. The WING mobile payments service is now in 166 Provinces, representing the broadest reach of any financial services provider in Cambodia. Over 2011 it processed more than 220,000 remittance transactions, saving its customers an estimated $320,000 as well as bringing them access to financial services previously unavailable. In November 2011, following significant investment from ANZ the WING business was sold to Inter Logistics, parent company of the Mobile Refresh payments business. This is a positive outcome that will allow ANZ Cambodia to focus on its core retail segments and ensure that WING can continue 'making money fair' for unbanked Cambodians. Partially achieved
Achieve 15% growth in deposits and micro-loans in our Rural banking business in Fiji. Total loan FUM grew 34%, with strong performance (+67%) in micro-loans.  Deposit FUM dropped by 9% over the year which is driven by present market conditions in Fiji; where there is a significant liquidity surplus and wholesale deposit rates have dropped below 1%.  It is likely that rural customers are switching to promotional savings accounts which currently offer a 1% premium over these wholesale deposit rates. Partially achieved
Achieve an above industry average loan-to-deposit ratio for ANZ Rural Bank in Liangping China and extend our agricultural education program to a further 2,000 farmers in the region. The 2nd year of our Pomelo project has educated about 2,000 farmers about agricultural skills and how to better promote their pomelo products including “agritainment” resources (attracting urban tourists by letting them experience the country lifestyle and enjoy the pure natural environment).  In the past year, the Liangping pomelo industry has experienced strong growth with the Liangping Government Agricultural Committee acknowledging that our training initiative has contributed to this growth. Our Rural Bank loan to deposit ratio is 96.89% by the end of Sep. 2011 which compares extremely favourable to other banks in this region who operate at around 20%. Achieved

 

Financial capability

Goal

Assessment

Performance
Reach an additional 30,000 people from low-income and disadvantaged backgrounds with our MoneyMinded financial capability program, adapted where appropriate for local cultures and contexts.

A total of 32,845 people have participated in MoneyMinded or MoneyBusiness across ANZ's regions this year (includes 2,629 newly trained facilitators).

  • MoneyMinded/Saver Plus partners and financial counsellors in Australia reached 18,328 participants.
  • MoneyMinded in Asia Pacific (including pilots in Fiji, American Samoa, Cook Islands PNG and Hong Kong) reached 2,891 participants.
  • MoneyBusiness (adapted for use in Indigenous communities) reached 9,980 participants in 215 Australian communities.
  • 980 people (including ANZ staff) completed online MoneyMinded courses.
 Achieved
Work with our community partners & the Australian Govt to enrol 7,600 people in our Saver Plus program over two years. Our partners enrolled a total of 7,449 participants in Saver Plus over the Government funding period (3,698 were recruited in the 2011 bank year). Saver Plus has been strongly endorsed by Government, with further funding of $26.5m for the period 2011-2015 (approx 20,000 participants in 61 sites) announced in the recent Federal Budget. New research was launched in September 2011. Achieved
over two years using funding from the Australian Government to pilot new approaches to support long-term financial and social sustainability. 1019 Progress Loans have been drawn down, with an additional 1 approved but not yet drawn at the end of September. ANZ's OTP pilot has been successful, with an officer based in the Customer Connect team supporting over 400 applications. New research has been completed, and further analysis of the sustainability of the ANZ channels is underway. Achieved
Work with the Brotherhood of St Laurence to write 1,000 new Progress Loans
Implement targeted initiatives that respond to our Financial Knowledge Survey of the Ngāi Tahu Māori community in NZ.		 We continue to work with Ngāi Tahu to tailor MoneyMinded for Maori families, however there have been some significant delays due to the recent Christchurch earthquake. 15 Ngāi Tahu appointed facilitators have been trained and have delivered limited workshops to around 36 whanui across the South Island. In collaboration with Ngāi Tahu and the Retirement Commission we are evaluating this program (results expected towards the end of 2011). Achieved
Conduct and publicly release our latest benchmark research into adult financial literacy in Australia. The research report was launched on 1 December 2011. It shows
Australians’ savings levels have increased to their highest since ANZ began measuring financial literacy in 2002, with 77 per cent of Australians trying to save on a regular basis.  		 Achieved

 

Urban sustainability

Goal

Assessment

Performance
Support the design, building and construction sectors in advancing urban sustainability by conducting education sessions at our 6-Star Green Star Global Headquarters.

A total of 1261 people have been visited ANZ centre as a result of tours conducted as of the end of August 2011. In addition, the ANZ Centre is a finalist for the built environment award of the Banksia Awards.

Achieved
Maintain our carbon neutral commitment across our operations globally.

ANZ has maintained its commitment to carbon neutrality. Low Carbon Australia has certified ANZ's Australian operations as carbon neutral under the National Carbon Offset Standard (NCOS). Simultaneously, we have offset the carbon emissions from our operations outside of Australia, consistent with the NCOS. In keeping with ANZ’s super regional strategy, our offset projects are primarily based in developing countries where we have a growing presence such as India, China, Cambodia and Indonesia.

Achieved
Work towards achieving our two year environmental goals in Australia and New Zealand: ANZ has delivered a strong FY11 result in managing our environmental sustainability performance against the targets set as part of our commitment to ‘urban sustainability’. ANZ has met, and in some cases significantly exceeded, eight out of ten environmental performance targets by September 2011 against the baseline set in 2009. We have not met our two year targets for absolute reduction in GHG (greenhouse gas) emissions and paper consumption per full time employee equivalent (FTE) in Australia. However, have exceeded performance against target in energy per FTE, potable water consumption and waste recycling and meet or exceed all our New Zealand environmental targets.  See the environment section for further detail. Partially achieved
 

 

Australia

New Zealand
Absolute reduction in GHG
  • AUS: Target - 6% Result: +10%
  • NZ: Target: -2% Result: -13% reduction

Did not achieve

Achieved
Premises energy per FTE
  • AUS: Target: -6% Result: -8% reduction
  • NZ: Target: -2.5% reduction Result: -4% reduction

Achieved

Achieved
Paper consumed per FTE
  • AUS: Target: -10% reduction Result: -4% reduction
  • NZ: Target: -10% reduction Result: -15% reduction

Did not achieve

Achieved
Water use per FTE
  • AUS: Target: -10% Result: -21% reduction
  • NZ: Target: Baseline established

Achieved

Achieved
Waste recycled
  • AUS: Target: 10% increase Result: 18% increase
  • NZ: Target: 10% increase Result: 37% increase

Achieved

Achieved
Implement our revised Environmental Management System in a pilot market in Asia.

ANZ has developed a simplified global Environmental Management System (EMS) in response to a review by external experts in 2011. A country specific EMS was developed for Singapore and will be finalised for New Zealand in the first quarter of 2012.

Achieved