Proudly Supporting Australia
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Proudly Supporting Australia 2016 Westpac Group Sustainability Performance Report Westpac employee Kate Holloway and her son Carter. < Westpac Group Sustainability Our The issues The Performance Other < 2016 Sustainability Performance Report leadership progress that matter fundamentals metrics info 1 COVER IMAGE KATE HOLLOWAY, For almost 200 years, Westpac has been a constant thread as our WESTPAC EMPLOYEE, AND HER SON. KATE WAS PART OF THE nation and economy has developed. TEAM THAT INTRODUCED A CHANGE IN WESTPAC GROUP’S HOME LENDING PROCEDURES WHICH While we have adapted and evolved over time, one enduring principle IS NOW BENEFITING HUNDREDS OF WORKING FAMILIES. READ KATE’S has always guided us: we can only do well if our customers and STORY ON PAGE 37 communities do well. This principle is at the heart of our approach to operating sustainably. By responding to issues that may threaten – or enhance – future prosperity, we know we can contribute to a more sustainable future for the people who bank with us, work with us, invest in us or are part of our broader communities. This annual Sustainability Performance Report for the year ending 30 September 2016 forms part of Westpac Group’s 2016 reporting suite. It supplements the integrated performance summary provided in the 2016 Annual Review & Sustainability Report with expanded commentary and metrics related to our sustainable business practices, providing supporting information towards Recommendation 7.4 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (Third Edition). Westpac Group’s full financial statements can be found in the 2016 Annual Report. This report aligns with the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines (Comprehensive) and the AA1000 AccountAbility Principles Standard, and has been independently assured by Ernst & Young (EY). Westpac Banking Corporation www.westpac.com.au/sustainability ABN 33 007 457 141 < Westpac Group Sustainability Our The issues The Performance Other < 2016 Sustainability Performance Report leadership progress that matter fundamentals metrics info 2 21 37 31 FIVE EMPLOYEE’S CONNECTING GENERATIONS IDEA HELPS DATA TO OF SUPPORT WORKING FIGHT CRIME Contents FAMILIES Sustainability leadership 4 Chairman and CEO’s message 6 Sustainability milestones 7 Creating sustainable value Our progress 9 Sustainability Strategy progress 10 1.Embracing societal change 12 2.Environmental solutions 14 3.Better financial futures The issues that matter 17 Material issues 18 Sustainable Development Goals 19 1.Conduct and trust 47 22 2.Service leadership WEARABLE 27 3.Digital innovation TECHNOLOGY TO FIGHT AUSTRALIA’S 32 4.Workforce of the future NATIONAL 38 5.Positive societal impact CANCER 48 6.Value chain risk The fundamentals 56 About our Sustainability Strategy 57 Sustainability governance framework 60 External benchmarking 61 Stakeholder engagement 62 Material topics and management approach 26 54 Performance metrics GIVING HUNTER EXPRESS BUSINESS CUTS COSTS 67 1.Employees WINGS AND EMISSIONS 71 2.Customers 74 3.Sustainable lending and investment 78 4.Environment 83 5.Suppliers 84 6.Social and economic impact Other information 90 Global Reporting Initiative Index 99 Assurance statement 101 Glossary and definitions 111 Contact details < Westpac Group Sustainability Our The issues The Performance Other < 2016 Sustainability Performance Report leadership progress that matter fundamentals metrics info 3 Sustainability Leadership For our business to prosper over the long term, so too must the communities in which we operate. Over almost two centuries, this view has motivated us to take a leadership role in tackling emerging issues that we believe will affect the future prosperity of our stakeholders, where we have the skills and experience to make a positive difference. < Westpac Group Sustainability Our The issues The Performance Other < 2016 Sustainability Performance Report leadership progress that matter fundamentals metrics info 4 Chairman and CEO’s message Sustainability milestones Creating sustainable value Chairman and CEO’s message For almost 200 years, Westpac has grown with the nation. As our communities have faced challenges – economic, environmental, demographic, cultural and political – we at Westpac have constantly adapted to ensure we have continued to respond effectively to customers and support economic development. Lindsay Maxsted Chairman While our business has evolved substantially Over the decades and, indeed, over the The grants awarded by Westpac Foundation over two centuries, one enduring principle past year, we have experienced first-hand helped create more than 2,900 employment has underpinned our actions: our success what happens when we do not meet opportunities for Australians experiencing is tied to the prosperity of our customers community expectations. disadvantage, and the number of and communities. microbusinesses set up or expanded with However, the progress we have made towards support from Westpac’s microfinance partner, This principle is at the heart of our approach tackling challenges and creating lasting positive Many Rivers, exceeded 1,000. to sustainable business practices. impact makes us proud. We also took important steps toward For us, being sustainable is about looking It has also contributed to Westpac being supporting the shift to a more sustainable ahead to the next decades and facing up to named the most sustainable bank globally in economic model and a cleaner energy future the issues that will challenge the prosperity of the Dow Jones Sustainability Indices Review that is less dependent on fossil fuels. our customers or disrupt our existing business again this year, marking the ninth time we have models, while embracing the opportunities. topped this global annual index. Over the past five years, we have increased the proportion of renewable energy financing This isn’t always easy. Making decisions that During the past year, we invested in the people, in our total electricity generation portfolio challenge the status quo to drive a step-change, businesses and community organisations Brian Hartzer from 45% to 59%, and our lending to the all the while acknowledging you don’t have all that are helping to shape our nation. Our Chief Executive Officer CleanTech and environmental services sector the answers, often takes leaders out of their $100 million Westpac Bicentennial Foundation reached $6.2 billion. We also brought to market comfort zones. is on track to award its 200th scholarship and a $500 million Westpac Climate Bond and will add 100 scholars to the scholars’ network an Energy Efficiency Finance Program for every year, forever. We also launched the business customers. Westpac Businesses of Tomorrow program to identify 200 promising businesses that we will help to develop and grow. < Westpac Group Sustainability Our The issues The Performance Other < 2016 Sustainability Performance Report leadership progress that matter fundamentals metrics info 5 Chairman and CEO’s message Sustainability milestones Creating sustainable value “ Banks exist to support We played an ongoing role in helping address the lack of affordable housing, with our economic development lending to the social and affordable housing and we have a responsibility sector growing to $1.05 billion and we made Introducing our Stakeholder to play a positive role in substantial progress on our Reconciliation Action Plan commitments to support Advisory Council the communities in which economic development opportunities for we operate.” Indigenous Australians. During the year, we participated in a number Regular engagement with stakeholders is a key element of of global forums and activities which recognise Westpac’s sustainability approach. Through ongoing dialogue, greater collaboration between businesses, we seek constructive insights from our stakeholders to deepen social enterprises and governments is needed to tackle the greatest economic and our understanding of what is expected of us and to communicate social challenges. This included our public how we are responding to priorities and concerns. commitment to support the achievement of the United Nations Sustainable Development Goals. In 2016, we re-established Westpac’s Stakeholder Advisory Council. We will seek We trust you will find valuable content in this feedback from the Council on our most important issues and opportunities, and report in which we have provided an update constructive insights into the evolution of our Sustainability Strategy and our ongoing on our progress against our Sustainability sustainability performance – intrinsically linked to our business strategy and operations. Strategy, details on how we are responding to the most important challenges and The Council is made up of eight members and one observer, and is Co-Chaired by opportunities, and results across a number of Westpac CEO Brian Hartzer, and The Ethics Centre Executive Director Simon Longstaff. performance indicators. The inaugural meeting of members was held in October 2016. In future, the Council will meet three times a year. Current external Stakeholder Advisory Council members are: 2017 marks the final year of our current five-year Sustainability Strategy. We look • Simon Longstaff, • James Moody, forward to introducing the next phase of our Stakeholder Advisory Council Co-Chair, Founding CEO, Sendle Sustainability Strategy, which will ensure we Executive Director, The Ethics Centre are directing our efforts towards the