Westpac Sustainability update

ASX Release


30 November 2023

Westpac Sustainability update

Westpac Banking Corporation (“Westpac”) today provides the attached
Sustainability update which will be referenced in a market briefing available to
shareholders via webcast. Details are available at:
www.westpac.com.au/investorcentre.











For further information:

Hayden Cooper Justin McCarthy
Group Head of Media Relations General Manager, Investor Relations
0402 393 619 0422 800 321


This document has been authorised for release by Tim Hartin, Company Secretary.



Level 18, 275 Kent Street
Sydney, NSW, 2000

SUSTAINABILITY
MARKET UPDATE
30 November 2023
WESTPAC BANKING CORPORATION ABN 33 007 457 141

PETER KING
Chief Executive Officer

3
1 This presentation contains ‘forward-looking statements’ and statements of expectation reflecting Westpac’s current views on future events. They are subject to change without notice and certain risks, uncertainties and assumptions which
are, in many instances, beyond its control. Please refer to the disclaimer at the back of this presentation. Further details on our commitments, targets and other supporting information is contained in our 2023 Annual Report, Climate Report
and Sustainability Index and Datasheet.2 See our website for more information on our sustainability strategy: www.westpac.com.au/about-westpac/sustainability/our-strategy/
OUR COMMITMENT TO SUSTAINABILITY
THEMES
Support in
good times
and bad
Simpler,
safer bank
Action on climate and nature
OBJECTIVES
FOUNDATIONS
PILLAR
Creating better futures together
OUR PURPOSE
Customer EasyExpert
2023 sustainability strategy
1,2
Enhance
financial
inclusion and
equality
Strengthen
data security
and protection
Become a
net-zero,
climate
resilient bank
Become a
nature positive
bank
Equitable and inclusive
society
Advocate
Respect and
advance
human rights
Enable
diversity and
inclusion
Robust environment and
social risk management
Reliable data and reporting
Integration and
organisational capability build
Westpac Group November 2023 Sustainability Market Update

NET-ZERO, CLIMATE RESILIENT OPERATIONS
COLLABORATE FOR IMPACT ON INITIATIVES TOWARDS NET-ZERO
AND CLIMATE RESILIENCE
SUPPORTING CUSTOMERS’ TRANSITION TO NET-ZERO AND TO BUILD
THEIR CLIMATE RESILIENCE
4
Delivering on the three elements of our Climate Action Plan
Westpac Group November 2023 Sustainability Market Update
BECOMING A NET-ZERO, CLIMATE RESILIENT BANK
OUR ACTION
AREAS

ANTHONY MILLER
Chief Executive,
Business & Wealth

Agribusiness
PETA WARD
National GM, Regional & Agribusiness
Hardship
LISA POGONOSKI
General Manager, Customer Solutions
Operational emissions reduction
CERI BINDING
Head of Utilities & Direct Environment
Case studies
INTEGRATING SUSTAINABILITY ACROSS THE BANK
REDUCING OPERATIONAL EMISSIONS
1
SUPPORTING CUSTOMERS AS THEY TRANSITION TO NET-ZERO
2
Transition plans and oil & gas
AL WELSH
MD, Corporate & Institutional Banking
HELPING CUSTOMERS FEELING THE PRESSURE OF COST-OF-LIVING CHALLENGES
3
6Westpac Group November 2023 Sustainability Market Update

CLIMATE-RELATED OPPORTUNITIES
7
Becoming the transition partner of choice for customers
BUILDING CAPABILITY
SUPPORTING CUSTOMERS
SUSTAINABLE FINANCE
PRODUCTS AND SERVICES
Westpac Group November 2023 Sustainability Market Update

NEW SUSTAINABLE FINANCE FRAMEWORK
8Westpac Group November 2023 Sustainability Market Update
Sustainable finance targets by 2030
Assess a sustainable finance transaction
Determine the amount to be included in the targets
Labelled lending or bond facilitation
Unlabelled lending
Qualifies if aligns with
industry standards, principles & guidance,
and/or third-party assured/verified
Qualifies if eligible based
on Westpac’s
Sustainable Finance Taxonomy
Assess ESG risks for customer/transaction, including against our position statements
ASSESS
TRANSITIONSUSTAINABILITYSOCIALGREEN
$55bn
$40bn
Lending
Bond Facilitation
CLASSIFY/MEASURE
MONITOR/REPORT
OUR SUSTAINABLE FINANCE FRAMEWORK

CLIMATE-RELATED OPPORTUNITIES
9
Becoming the transition partner of choice for customers
BUILDING CAPABILITY
SUPPORTING CUSTOMERS
SUSTAINABLE FINANCE
PRODUCTS AND SERVICES
Westpac Group November 2023 Sustainability Market Update

CERI BINDING
Head of Utilities & Direct
Environment

Multi-technology approach for
national renewables outcome
Westpac Group November 2023 Sustainability Market Update11
100% RENEWABLE ELECTRICITY, DIRECT OPERATIONS NATIONALLY
1
Ararat Wind Farm, Victoria
Berri Solar Farm + Battery, South Australia
Cornerstone contracts supported
over 125MW of new generation
capacity
Community and nature impact
1. Sourcing equivalent of 100% of Australian direct electricity demand from renewables from April 2023
Spark Renewables’ Bomen Solar Farm, near Wagga Wagga, NSW
Flow Power’s Berri Energy Project, SA
Multi-use, tree planting
under Westpac contracts

97,431
62,360
44,031
21,048
14,762
2021 Actual
(Location)
2021 Baseline
(Market)
Footprint,
Hybrid model
Renewables2022 Actual
(Market)
Footprint,
Hybrid model
Renewables2023 Actual
(Market)
2030 Target
(Market)
TARGET TO REDUCE OPERATIONAL SCOPE 1 AND 2 EMISSIONS BY 64% BY 2025 AND 76%
BY 2030 FROM OUR 2021 BASELINE
2
12
(tCO
2
-e)
REDUCING WESTPAC GROUP SCOPE 1 AND 2 EMISSIONS
1
1 Refer to page 19 of the 2023 Climate Report and the Environment tab of the 2023 Sustainability Index and Datasheet for details of our operational targets. 2 2021 baseline adjusted for COVID-19 pandemic and other
impacts. 3 Renewable numbers reflect global percentages. Westpac sourcing equivalent of 100% of Australian direct electricity demand from renewables from April 2023, this equates to 70% of our global consumption for
FY23.
66% reduction
45% renewable
52% renewable
70% renewable,
100% nationally from April
2023
1
Scope 1: Direct impact i.e. fleet fuels, refrigerants, gas, diesel and LPG
Scope 2
: Indirect impact (purchased electricity)
Westpac Group November 2023 Sustainability Market Update
Renewables for
international operations,
EV Fleet
3
3

Supplier renewables,
employee
renewables,
EV infrastructure,
embodied carbon,
boundary review
2021
Actual
71,738
97,891
63,377
61,044
48,945
2021 Actual/
Baseline
(Market)
TravelFootprint
& Other
Supplier
Reductions
2022 Actual
(Market)
TravelFootprint
& Other
Supplier
Reductions
2023 Actual
(Market)
2030 Target
(Market)
Limited business travel
and employee commute
Supplier renewables,
recycling
Increased business travel
and employee commuting
TARGET TO REDUCE OUR SCOPE 3 UPSTREAM EMISSIONS BY 50% BY 2030 FROM OUR 2021 BASELINE
2
13
(tCO
2
-e)
UPSTREAM SCOPE 3 EMISSIONS
1
1 Refer to page 19 of the 2023 Climate Report and the Environment tab of the 2023 Sustainability Index and Datasheet for details of our operational targets. 2 2021 baseline adjusted for COVID-19 pandemic and other
impacts.
Upstream scope 3 emissions: Indirect impact from sources not owned or controlled by Westpac
Westpac Group November 2023 Sustainability Market Update
4% reduction

USING OFFSETS FOR RESIDUAL EMISSIONS
14Westpac Group November 2023 Sustainability Market Update
3
2
1
Energy efficiency, hybrid technology,
work practices, reduced use of raw
materials
Renewables, circularity (re-use, recycle,
end-of-use treatment)
Carbon offsets to neutralize residual
operational emissions under certification
standards
Substitution
Efficiency
Offset
Measure and reduce

AL WELSH
MD, Corporate & Institutional
Banking

Pilot Assessment Framework (FY23)
Engaging with customers on their transition plans
TRANSITION PLANS
TARGETS
Short and long-term emissionreduction commitments
across scope 1, 2 and 3. Commitment to net-zero
by 2050
STRATEGY
Details on initiatives to achieve the targets and the
timing of implementation
CAPITAL
ALLOCATION
How capital is being allocated to emission reduction
or zero carbon projects
REPORTING
Detail provided on emission reporting, including
baselines and progress on key projects
GOVERNANCE
Board experience on climate change/net-zero.
How does Board assess climate issues. Linking of
remuneration to emission reduction targets
Westpac Group November 2023 Sustainability Market Update16
—Leveraged global frameworks
(e.g. CA100+, GFANZ)
—Piloted with 20 emissions
intensive customers in FY23
—Customers appreciated the
guidance in this fast-evolving area
—Customers looking for consistency
on temperature alignment from
government, banks and investors

17
Energy value chain needs to balance the increase in renewables with the reduction in oil and gas
A key part of the energy transition
Westpac Group November 2023 Sustainability Market Update
ENERGY TRANSITION – UPSTREAM OIL AND GAS
1 A credible transition plan should be developed by reference to the best available science and should include scope 1, 2 and 3 emissions and actions the company will take to achieve greenhouse gas reductions aligned
with pathways to net-zero by 2050, or sooner, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100.
Our upstream portfolio comprises 82% gas and 18% oil
Engaging with upstream oil and gas customers on their transition plans:
—Sector-wide progress in developing emissions reduction plans and achieving reductions to scope 1 and 2 emissions
—Developing 1.5°C-aligned transition plans covering scope 1, 2 and 3 by 30 September 2025 will be challenging for sector
—In FY24 we will engage further to understand our customers’ evolving decarbonisation strategies
We will not provide project finance or
bond facilitation for the development of
new (greenfield) or expansionary oil and
gas fields, including new associated
dedicated infrastructure, unless in
accordance with the International
Energy Agency Net-Zero by 2050
scenario (2021)
We will continue to provide corporate
lending and bond facilitation where the
customer has a credible transition plan
1
in
place by 30 September 2025
Positions, subject to national energy security
23% reduction in scope 1, 2 and 3
absolute financed emissions by
2030 from a 2021 baseline
2030 target

PETA WARD
National General Manager,
Regional & Agribusiness

50%
15%
7%
6%
5%
2%
2%
2%
Agriculture
2% of TCE
19
Westpac’s exposure (%)Estimated FY23 financed emissions
AGRICULTURE
1 Total Committed Exposure.
Westpac Group November 2023 Sustainability Market Update
Represents 2% of TCE
1
and 26% of emissions
FY23 absolute
scope 1 & 2
financed emissions:
26.1MtCO
2
-e
26%
21%
14%
12%
6%
5%
5%
4%
3%
Agriculture, forestry
& fishing
Utilities
Manufacturing
Residential Mortgages
Trade
Mining
Transport & storage
Services
Property
Accommodation,
cafes & restaurants
Construction
Finance & insurance
Property services
& business services
1%
1%
1%
1%
Residential Mortgages
Finance & insurance
Property
Government,
admin & defence
Other
Trade
Services
Manufacturing
Agriculture, forestry
& fishing
Property services
& business services
Utilities
Transport & storage
Construction
1%
1%
1%
1%
Accommodation,
cafes & restaurants
Mining
1%
2%
2%

1.04
0.93
0.8
1.0
1.2
FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30
Target: 10% reduction in scope 1 land management
emissions intensity
20
Targets to reduce operational emissions and improve productivity
AGRICULTURE
SBTi – Science Based Targets Initiative
FLAG – Forest, Land and Agriculture (target setting guidance and pathway)
FPCM – Fat and Protein Corrected Milk (production unit)
FW – Fresh Weight (production unit)
Westpac Group November 2023 Sustainability Market Update
Target: 9% reduction in scope 1 land management
emissions intensity
2021 baseline2030 target
SBTi FLAG Oceania Dairy Commodity
Land Management Pathway
21.73
19.85
15
20
25
FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30
2021 baseline2030 target
SBTi FLAG Oceania Beef Commodity
Land Management Pathway
Baseline & Target (tCO
2
-e / t of FW)
Baseline & Target (tCO
2
-e / t of FPCM)
No further conversion of natural forest to agricultural land use within farm systems from 31 December 2025 for customers
in scope of the targets
Australian Beef & SheepAustralian Dairy
Deforestation

Decarbonisation pathway for Beef
and Sheep is different to Dairy
Emissions reduction and
productivity go hand-in-hand
Progressive and well-organised
industry groups in Australia
No one single initiative – many that
in aggregate will support transition
Westpac Group November 2023 Sustainability Market Update21
Supporting customers in their transition to net-zero
AGRICULTURE

General Manager, Customer
Solutions
LISA POGONOSKI

100% SOLUTION MODEL TO SUPPORT CUSTOMERS
23
No matter what the circumstances, Assist have a solution to support
Westpac Group November 2023 Sustainability Market Update
Payment
arrangements
Nil /
Reduced
payments
Referral to
specialist
partners
Interest
Shading
Preapproval
Shortfall
Waiver
Term
extension
Debt
reduction
Straight to
serviceability
Voluntary
Surrender
Relocation
assistance
Referral
out
Interest rate
reduction
Shortfall
settlements
Debt
waiver
Supported
Self-sale
CUSTOMER
ASSIST 100%
SOLUTION
SUITE

SUPPORTING CUSTOMERS THROUGH HARDSHIP
24
Customer case study
Westpac Group November 2023 Sustainability Market Update
Andrew
SOUTH AUSTRALIA
NO FAMILY LOCALLY
75% EQUITY
UNEMPLOYED
Approach
Dedicated case manager, Sam
—Initially provided Andrew with long-term payment arrangements and periods of
forbearance
—Further options provided including refinance, voluntary surrendering the property
or self-sale
—After decision made to sell the property, we supported Andrew to renovate property
—Property sold 10 days after being listed
—Andrew used proceeds to clear debt and buy another home, two streets from his
favourite beach

ANTHONY MILLER
Chief Executive,
Business & Wealth

INTEGRATING SUSTAINABILITY ACROSS THE BANK
REDUCING OPERATIONAL EMISSIONS
1
SUPPORTING CUSTOMERS AS THEY TRANSITION TO NET-ZERO
2
HELPING CUSTOMERS FEELING THE PRESSURE OF COST-OF-LIVING CHALLENGES
3
26Westpac Group November 2023 Sustainability Market Update

QUESTIONS

APPENDIX

Westpac Group November 2023 Sustainability Market Update29
COMPREHENSIVE SUSTAINABILITY REPORTING
A suite of disclosures for more information and depth.
2021 Annual Report
2023
Annual Report
Sustainable Finance
Framework
Modern Slavery
Statement FY22
Natural Capital Position
Statement
Human Rights Position Statement and
Action Plan
Safer Children, Safer Communities 2022
Impact Report
2023 Sustainability
Index and Datasheet
Child Safeguarding Supplement
2023 Climate Report, includes
Climate Change Position
Statement and Action Plan
Available at westpac.com.au/sustainability

30Westpac Group November 2023 Sustainability Market Update
SUSTAINABILITY RECOGNITION
1 Copyright ©2023 Sustainalytics. All rights reserved. The information, data, analyses and opinions contained herein: (1) includes the proprietary information of Sustainalytics and/or its content providers; (2) may not be
copied or redistributed except as specifically authorized; (3) do not constitute investment advice nor an endorsement of any product , project, investment strategy or consideration of any particular environmental, social or
governance related issues as part of any investment strategy; (4) are provided solely for informational purposes; and (5) are not warranted to be complete, accurate or timely. Neither Sustainalytics nor its content
providers are responsible for any trading decisions, damages or other losses related to it or its use. The use of the data is su bject to conditions available at https://www.sustainalytics.com/legal-disclaimers. 2 The inclusion
of Westpac in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sp onsorship, endorsement or promotion of Westpac by MSCI or any of its affiliates. The
MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.
SUSTAINABILITY INDEXESINCLUSION AND DIVERSITY RECOGNITIONINDUSTRY RECOGNITION
Named within Top 10 Employer
for gender equality through
Equileap
First Australian financial institution to
be Disability Recruiter Accredited
Bronze Accreditation for Australian
Workplace Quality Index
Accredited as Level 1 Activate
as a Carer Friendly Employer
under the CarersNSW Carers
+ Employers Program
Recognised in the Bloomberg
Gender Equality Index for the 7th
consecutive year
AtAug 23, Westpac has received an
MSCI ESG Rating of A (score of 5.2
which is above Industry Average)
2
AtDec 22, Westpac has received an
S&P DJI ESG score of 68. We have
been a member of the DJSI Indices
since 2002
Winners for the second year running
in the SEEK Star Awards for Best
Employer Brand initiative for our
Graduate ‘Uncommon minds’
campaign
Rated Prime status of “C”
by ISS ESG
Achieved highest ISS
QualityScore for Social dimension
At Sep 23, Westpac has received an ESG Risk Rating of 21.1 from
Sustainalytics and was assessed to be at Medium risk of
experiencing material financial impacts from ESG factors
1
Member of the FTSE4Good Index Series, of which Westpac has
been a member since 2001

SUSTAINABLE COMMITMENTS, PARTNERSHIPS AND ASSOCIATIONS
Commitment to United Nations Global
Compact Signatory (2002), Global
Compact Network Australia Founding
Member (2009)
RE100, an initiative of The Climate
Group in partnership with CDP
Member (since 2019)
Industry-led UN-convened
Net-Zero Banking Alliance
Member, principals and steering groups
(NZBA governance bodies) (from 2023)
Global Reporting Initiative
Align with
WeConnect International
(for women owned businesses)
Member (2020)
UN Sustainable Development Goals
CEO Statement of Commitment (2016)
Paris Climate Agreement
Supporter (2015)
Principles for Responsible Banking
Signatory (2019)
The Valuable 500
Signatory (2021)
Toitū net carbonzero
certified (New Zealand)
Since 2019
UN Environment
Programme
Finance Initiative
Founding Member (1991)
Banking Board Co-Chair
(since 2020)
Financial Stability Board’s
Task Force on Climate-
related Financial
Disclosures
Align with and support
The Equator Principles
Founding Adopter,
First Australian Bank (2003)
UN Women
Partner (2021)
Taskforce on Nature-related
Financial Disclosures
Forum member (2021)
Electric Vehicle Council
of Australia
Member (2022)
Carbon Markets Institute
Corporate Member
Australian Industry
Energy Transitions Initiative
Partner (2022)
Australian Sustainable Finance Institute
Founding Member
Climate Bonds Initiative
Partner
Sustainability Accounting
Standards Board
Align with
Supply Nation
(for Indigenous owned
businesses)
Founding Member (2010)
Social Traders
(for certified social enterprises)
Member (2016)
United Nations
Tobacco-Free Finance pledge
Founding Signatory (2018)
Climate Active Certification
(Australia)
Since 2012 (previously NCOS)
Green Building
Council of Australia
Member (since 2011)
Westpac Group November 2023 Sustainability Market Update31
MAJOR COMMITMENTS, PARTNERSHIPS AND ASSOCIATIONS

INVESTOR RELATIONS TEAM
32
Contact us
Westpac Group November 2023 Sustainability Market Update
SHARE REGISTRY CONTACT INVESTOR RELATIONS CONTACT
Justin McCarthy
General Manager, Investor Relations
Arthur Petratos
Manager, Shareholder Services
Rebecca Plackett
Head of Corporate Reporting and ESG
Andrea Jaehne
Head of Investor Relations,
Ratings Agencies and Analysis
Jacqueline Boddy
Head of Debt Investor Relations
James Wibberley
Manager, Investor Relations
Catherine Garcia
Head of Investor Relations, Institutional
Nathan Fontyne
Graduate, Investor Relations
For all shareholding enquiries relating to:
–Address details and communication preferences
–Updating bank account details, and participation in the dividend
reinvestment plan
For all matters relating to Westpac’s strategy, performance
and results
1800 804 255
westpac@linkmarketservices.com.au
investorcentre.linkmarketservices.com.au
+61 2 9178 2977
investorrelations@westpac.com.au
westpac.com.au/investorcentre

The information in this presentation is intended to be general information about Westpac Banking Corporation (Westpac) and its activities as at the date of this presentation. Full details on our sustainability strategies,
commitments, targets and other supporting information is contained in our 2023 Annual Report and 2023 Climate Report.
It is given in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advice to investors or potential investors, who should be seeking independent professional advice
depending on their specific investment objectives, financial situation or particular needs. The material contained in this presentation may include information, including, without limitation, methodologies, modelling,
scenarios, reports, benchmarks, standards, tools, metrics and data, derived from publicly available or government or industry so urces that have not been independently verified. No representation or warranty is made as
to the accuracy, completeness or reliability of the information.
This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934. Forward-looking statements are statements about matters
that are not historical facts. Forward-looking statements and metrics appear in a number of places in this presentation and include statements regarding our current intent, belief or expectations with respect to our
business and operations, macro and micro economic and market conditions, results of operations and financial condition, capital adequacy and risk management, including without limitation, climate change, net-zero,
emissions intensity and other sustainability related statements, commitments and targets, projections, scenarios, risk and opportunity assessments, pathways, forecasts and metrics, forecasted economic indicators and
performance metric outcomes, financial support to certain borrowers, indicative drivers, estimated emissions and other proxy data. These are subject to known and unknown risks, and there are significant uncertainties,
limitations, risks and assumptions in the metrics and modelling on which these statements rely. In particular, the metrics, methodologies and data relating to climate and sustainability are rapidly evolving and maturing,
including variations in approaches and common standards in estimating and calculating emissions, and uncertainty around future climate- and sustainability-related policy and legislation. There are inherent limits in the
current scientific understanding of climate change and its impacts.
Forward-looking statements may also be made by members of Westpac’s management, directors, officers or employees (verbally or in writing) in connection with this presentation. Such statements are subject to the
same limitations, uncertainties, assumptions and disclaimers in this presentation.
We use words such as ‘will’, ‘may’, ‘expect’, ‘indicative’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘anticipate‘, ‘believe‘, ‘probability‘, ‘risk‘, ‘aim‘, ‘target’, ‘plan’, ‘estimate‘, ‘outlook‘, ‘forecast‘, ‘goal’, ‘guidance’,
‘ambition’ ‘assumption’, ‘projection’, or other similar words that generally indicate forward-looking statements.
These forward-looking statements reflect our current views as at the date of this presentation with respect to future events and are subject to change, certain risks and uncertainties and assumptions and other factors
which are, in many instances, beyond the control of Westpac, its officers, employees, agents and advisors, and have been made based upon management’s current expectations, understandings or beliefs concerning
future developments and their potential effect upon us.
Although management currently believes these forward-looking statements have a reasonable basis, there can be no assurance that future developments or performance will be in accordance with our expectations or
that the effect of future developments on us will be those anticipated.
Actual results, performance, conditions, circumstances or the ability to meet commitments and targets could differ materially from those we expect or are expressed or implied in such statements, depending on various
factors, including without limitation significant uncertainties in climate change and sustainability related metrics and modelling as well as further development of methodologies, reporting or other standards which could
impact metrics, data and targets.
There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and their differences may be material. Factors that may impact on the
forward-looking statements made include, but are not limited to, those described in this presentation and in the section titled ‘Risk factors’ in Westpac’s 2023 Annual Report available at www.westpac.com.au. Investors
should not place undue reliance on forward-looking statements and statements of expectation, including targets, particularly in light of the current economic climate and the significant global volatility.
To the maximum extent permitted by law, responsibility for the accuracy or completeness of any forward-looking statements, whether as a result of new information, future events or results or otherwise, is disclaimed.
Except as required by law, we assume no obligation to update any forward-looking statements contained in this presentation, whether as a result of new information, future events or otherwise, after the date of this
presentation.
Westpac Group November 2023 Sustainability Market Update
33
DISCLAIMER
DISCLAIMER