Westpac Group 2020 Sustainability Performance Report | 2 Building a Sustainable Future the Issues That Matter Sustainability Strategy Other Information

Sustainability Performance Report

2020

WESTPAC BANKING CORPORATION ABN 33 007 457 141

Fix. Simplify. Perform. BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

Welcome to our 2020 Sustainability Performance Report Through our sustainability materiality assessment process, we identify the issues and opportunities that matter most to our stakeholders. Our 2020 Sustainability Performance Report is structured around the most material topics and provides information on our sustainability performance progress over the period. Please also refer to: 2020 Sustainability Datasheet — Performance Metrics, Glossary and Defnitions 2020 Sustainability Appendix — Principles for Responsible Banking (PRBs) Reporting and Self-Assessment Template — Global Reporting Initiative (GRI) Standards Index — Sustainability Accounting Standards Board (SASB) — United Nations Guiding Principles Reporting Framework Index — Sustainability Strategy and Reconciliation Action Plan Scorecards. These, together with further information about our approach to sustainability, oversight frameworks, policies, positions, and performance ratings and benchmarks, can be found online at westpac.com.au/sustainability This report aligns with the Global Reporting Initiative (GRI) Standards (Comprehensive) and the AA1000 AccountAbility Principles Standard (2018). We engaged an independent external assurance organisation, PricewaterhouseCoopers, to provide the directors of Westpac with assurance on selected subject matter within this report, the 2020 Sustainability Datasheet and 2020 Sustainability Appendix, including the alignment of the reporting with AA1000 and the GRI. Westpac’s full annual reporting suite, including the Annual Report, can be found at westpac.com.au/2020annualreport

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HELPING THROUGH BUSHFIRES All fgures are for the 12 months ended 30 September 2020, St.George customer Lyn Grey and comparisons are against results for the 12 months ended Ulladulla Branch Manager Lloyd 30 September 2019, and all dollar amounts are in Australian Pigram at Lyn ’s bushfre impacted property on the NSW South Coast. dollars, unless otherwise indicated. Find out about our bushfre

Westpac Banking Corporation support on page 17. ABN 33 007 457 141 WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 2 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

It has been a challenging year – for the bank, our shareholders, employees, customers and the communities in which we operate. In this report, we explore some of the ways we are supporting our customers, people and communities, as well as the signifcant change agenda we have underway.

CONTENTS

BUILDING A SUSTAINABLE FUTURE Chairman and CEO Letter 4 Westpac at a glance 6 Our strategy 7 Building a simpler, Helping Supporting stronger bank customers our people and THE ISSUES THAT MATTER Our material topics overview 8 communities Building a simpler, stronger bank 10 Helping customers 13 Supporting our people and communities 19

SUSTAINABILITY STRATEGY 2018-2020 sustainability strategy and progress 27 5 year non-fnancial summary 29 Fix 11 Responding to COVID-19 14 Our people 20 Climate change 30 Human rights 37 Simplify 12 Our Service Promise 14 Sustainable fnance 2 1 Perform 12 New and simpler products 15 Helping to build stronger, OTHER INFORMATION more inclusive communities 24 Information security and Assurance report 40 data privacy 16 Contact details 42 Help in the moments that matter 17

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 3 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

CHAIRMAN AND CEO LETTER | WESTPAC AT A GLANCE | OUR STRATEGY

CHAIRMAN AND CEO LETTER

A lot has happened this fnancial crime function to be year. With the bushfres, led by a Group Executive that drought and most recently reports directly to the CEO, the COVID-19 pandemic, it added risk management skills Supporting customers has been a time where we and resources and we are through the COVID-19 have needed to focus on what strengthening our fnancial pandemic and bushfres matters most and support our crime management program customers, our communities including our policies, data and the broader economy. We systems, processes and are very proud of the way that controls. our people have continued In addition to addressing root Refreshed our Climate to show great care for our Change and Human Rights Welcome to our 2020 causes, we have established customers and each other Position Statements and a Safer Children, Safer 2023 Action Plans Sustainability Performance throughout the year’s events. Communities work program Report, our frst as Chairman It has also been a signifcant to help reduce the human time of change for us impact of fnancial crime with and CEO, respectively. as an organisation. The a particular focus on child commencement of AUSTRAC safeguarding, guided by Expanded our Indigenous proceedings in November 2019 experts in human rights, child Connection call centre to highlighted shortcomings in safety, online safety and law cover all states and our management of fnancial enforcement. This year, we territories crime risk and underlying established multi-year funding cultural and operational issues. partnerships with International We understand the seriousness Justice Mission and Save of the issues involved and have the Children (Australia), and sought to share updates on launched a new Impact Grants investigation fndings and the program. actions we are taking through We are deeply sorry for what our AUSTRAC Response Above from left to right: occurred. John McFarlane, Chairman Plan. As well as immediate and Peter King, CEO fxes, we have elevated our

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 4 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

CHAIRMAN AND CEO LETTER | WESTPAC AT A GLANCE | OUR STRATEGY

Resetting stakeholders. This year we implement the United Nations It has been a challenging and We are taking have included more Environment Programme important year and we hope We are also making far information on our non- Finance Initiative’s Principles that through reading this action to fx our reaching changes to our fnancial performance in our for Responsible Banking report you can see some of issues, simplify our business, with changes at our Annual Report, with greater (PRBs), these are important the ways that we are taking business and improve Board and executive levels, detail available in this report. examples of ways that we can action to fx our issues, simplify a focus on core banking in seek to achieve more through our business and improve performance.” Soon we will be releasing our Australia and New Zealand, working together. performance. new operating structures updated sustainability strategy designed for clearer outlining our priorities for the We are very fortunate to have Yours sincerely, accountability and improved next three years. Listening experts representing many customer outcomes, a new to stakeholder feedback, it different stakeholder groups purpose and values to guide is clear that now, more than share their time and insights cultural change, and improving ever, we need to be helping with us through forums such the way we manage non- individuals, businesses and the as our Stakeholder Advisory fnancial risk and improving our economy as we navigate the Council, Vulnerable Customer John McFarlane risk culture. period ahead together. As the Council, Indigenous Advisory Chairman world continues to respond Committee and the Safer Creating long-term value and recover from the COVID-19 Children, Safer Communities situation, we recognise the role Roundtable. These insights For Westpac, being sustainable that we can play to help build a help to inform our approach is about how we seek to create stronger nation. and allow us to understand value for our customers, our different stakeholder We have a big change agenda Peter King people, our shareholders perspectives. We thank these ahead, and we look forward CEO and the broader community individuals for their valuable to continuing to partner and over the long-term. As well feedback. as fnancial performance, it is collaborate in an effort to about how we manage non- effect positive change. From fnancial risk and address the industry-led Climate the issues and opportunities Standards Measurement that matter most to our Initiative, to working with banks around the world to

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 5 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

CHAIRMAN AND CEO LETTER | WESTPAC AT A GLANCE | OUR STRATEGY

ABOUT WESTPAC

With our portfolio of brands, we provide customers with a full range of banking Founded in 1817, Westpac is Australia’s services. We also provide selected insurance, superannuation and wealth platform frst bank and oldest company. services to consumers and businesses.

DIVISION OVERVIEW BRANDS

CONSUMER Serves the banking needs of consumers in Australia including the sales and service of banking products, from mortgages, credit cards, personal loans and savings to deposit products. Also works with Business, Westpac Institutional Bank (WIB), and Specialist Businesses in the sales, service, and referral of certain fnancial services and products including general and life insurance, superannuation, platforms, auto lending and foreign exchange.

BUSINESS Serves the banking needs of small-to-medium businesses and commercial and agribusiness customers across Australia. Also supports the banking needs of high net worth individuals in our Private Wealth business.

WESTPAC Delivers a broad range of fnancial services to commercial, corporate, institutional INSTITUTIONAL and government customers operating in, and with connections to, Australia and BANK New Zealand.

NEW ZEALAND Delivers banking, wealth and insurance services to consumer, business and institutional customers across New Zealand.

GROUP Includes Treasury, Technology and Core Support, which comprises Group support BUSINESSES functions of Australian banking operations, property services, strategy, fnance, risk, compliance, legal, human resources, and customer and corporate relations.

SPECIALIST Brings together the Group’s non-core Australian businesses, including BUSINESSES superannuation, wealth platforms, investments, auto fnance, general insurance, life insurance, lenders mortgage insurance, along with our operations in Fiji and Papua Westpac Pacifc New Guinea.

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 6 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

CHAIRMAN AND CEO LETTER | WESTPAC AT A GLANCE | OUR STRATEGY

OUR STRATEGY HOW WE CAN DELIVER FOR OUR STAKEHOLDERS

OUR WHAT THIS PRIORITIES MEANS CUSTOMERS COMMUNITIES

Delivering financial services Supporting local Addressing our to consumers, businesses communities. and institutions in Australia shortcomings by and New Zealand. materially improving our —Over $150m in community investment1 management of risk and —Trusted with over risk culture, reducing $555bn — participants in customer pain points, 1m+ in customer deposits financial education completing historical customer remediation —Supported over Our strategy supports programs, and reducing our purpose, building Our Fix $693bn in lending on our strengths the complexity of our SUPPLIERS and refocusing where purpose technology. change is required. EMPLOYEES Choosing suppliers We have sharpened the Helping responsibly. markets and products Australians and Creating an environment in which we operate, where the best people —Procured goods and returning to banking, New Zealanders Returning to our core want to work. services worth $6.5bn and our home markets succeed. businesses of banking with $5.9m in spend of Australia and New — 40,225 Zealand leveraging in Australia and New employees towards Indigenous-owned our portfolio of brands. Zealand, including businesses exiting some businesses Our three priorities —Delivering on our 2023 recognise our need and international SHAREHOLDERS Human Rights Action Plan to address our locations. Rationalising and working to eliminate shortcomings, products and simplifying Generating appropriate reshape the business Our processes to make it risk of modern slavery Simplify returns over the to concentrate on our easier for customers. across our business long-term. core businesses and focus operations and supply markets, while lifting —Our strong balance chain Banking for service and creating a sheet positions us to stronger performance Australian and manage the downturn ethic. This will help us New Zealand consumers, and deliver long term THE to become a simpler, ENVIRONMENT stronger bank. businesses and Improving performance shareholder value institutional by building customer Supporting the transition customers. loyalty and growth THE ECONOMY to a climate resilient through service, future. sharpening our focus on returns, and resetting Supporting the financial —$10.1bn lending to our cost base. A strong system. climate change solutions balance sheet and Banks play an important —Climate Change Position Perform engaged workforce role in supporting the Statement and 2023 form the foundations economy through lending, Action Plan of performance. deposits and the efficient flow of funds.

1 Excludes commercial sponsorships.

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 7 Supporting our Helping our Building a simpler, people, communities customers stronger bank and nation

BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

THE ISSUES THAT MATTER THE ISSUES THAT MATTER Our Material Issues Through our sustainability materiality assessment process, we identify the opportunities and challenges relating to our business that matter most to our Our stakeholders, now and into the future. Material Issues

Supporting Every year, through our sustainability materiality assessment Building a simpler, Helping our people and process, we identify the opportunities and challenges relating stronger bank customers communities to our business that matter most to our stakeholders, now and into the future. 2020 MATERIAL SUSTAINABILITY TOPICS 2020 MATERIAL SUSTAINABILITY TOPICS 2020 MATERIAL SUSTAINABILITY TOPICS Our 2020 sustainability materiality assessment used an expanded set of data and Poor conduct has eroded public trust 1 Customers want banking to be easier, Maintaining a safe, flexible and supportive Conduct GRI Customer GRI Workforce GRI insights from customers, investors, suppliers, non-government organisations, and culture in Westpac and the financial services 419-1 satisfaction simpler and more efficient. At the 417 wellbeing workplace helps us attract, retain and 401, 404, sector. In response, we have plans in same time, customer needs are develop our people. employees and senior management. and experience and talent 405 place designed to strengthen our becoming more complex. retention culture, and improve our processes We also drew on insights from our: to deliver better customer outcomes. — Westpac Stakeholder Advisory Council; — Vulnerable Customer Council; Governance We have enhanced our governance GRI Customer Our ability to support customers GRI Climate As a major financial institution, we have an GRI — Westpac Indigenous Advisory Committee; and and risk this year and are building a stronger 201, 205 vulnerability in times of hardship and anticipate 413, 417 change important role to play in managing the risks 201 management risk management capability. This and hardship when they are vulnerable allows us risks and and opportunities of climate change. — Safer Children, Safer Communities Roundtable. change is critical to the reputation to help when it matters most. opportunities and financial strength of the Group. This year, Conduct and culture remained our most material sustainability topic, driven by significant matters including AUSTRAC’s proceedings. Customer safety and access, Workforce wellbeing and talent retention and Financial performance Financial Delivering sound financial GRI Customer safety Maintaining an environment GRI Supporting As an integral service provider in the GRI were also prominent topics for both Westpac and our stakeholders in light of major performance performance and a strong balance 201 and access where customers can safely and 413 communities communities in which we operate, we 413 events such as the Australian bushfires and COVID-19. Climate change and Human sheet underpins our ability to conveniently access our products in need support those in need including in times of support customers, the economy and services. emergency and recovery. We also support rights were also key areas of engagement as we developed our updated Position and the Group’s long-term success. initiatives that address complex societal Statements and Action Plans. and economic issues.

Our approach to identifying our material sustainability topics is aligned to the Global Reporting Initiative (GRI) Standards (2016)1 and the AA1000 AccountAbility Changing Supervision and regulation in the GRI Digital product Digitisation creates opportunities to GRI Human rights We seek to positively impact human rights GRI 417, 419 2 regulatory financial services sector continue to and service improve efficiency and deliver new 413 business risk in our value chain through our role as an 405, 412, Principles Standard (2018) , and supports our assessment of impacts as required by landscape evolve, creating change and complexity transformation and improved services where, how employer in fostering inclusion and diversity, 418 the Principles for Responsible Banking. in how we operate. and when customers choose. our lending, understanding our role in supporting Indigenous communities, our investments in funds, and through our supply chain.

1 GRI Index can be found in our 2020 Sustainability Appendix. KEY 2 See Assurance report on page 40. Information Maintaining confidentiality and the GRI security and security of our systems and data is 418 Sustainability Accounting Standards Board (SASB) data privacy paramount in retaining the trust and Leadership and Governance Business model and innovation confidence of our stakeholders. Social Capital Environment The following pages explore the ways that we are addressing these challenges and opportunities. Human Capital

Task Force on Climate-related Financial Disclosures 1 GRI refers to the corresponding Global Reporting Initiative (GRI) Standard (2016). TCFD

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 8 Supporting our Helping our Building a simpler, people, communities customers stronger bank and nation

BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

Task Force on Climate-related Financial Disclosures 1 GRI refers to the corresponding Global Reporting Initiative (GRI) Standard (2016). TCFD

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

THE ISSUES THAT MATTER

Building a simpler, stronger bank

We have a signifcant change agenda underway, focused around three priorities, fx, simplify and perform.

For more information on the topics covered in this section, including fnancial performance, an overview of the AUSTRAC proceedings, and our approach to corporate governance, see our 2020 Annual Report.

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

governance and accountability understand they all have a which will become the consumer bank’s frameworks and practices and role in managing risk and central product onboarding platform. highlighted that important driving clearer accountability At the same time, we have sought to aspects of Westpac’s non- and decision-making. ensure our customer interface has kept fnancial risk culture have been pace with customer demands. This To improve our risk culture, ‘immature and reactive’. program has strengthened the stability, this year we have established The AUSTRAC Fix speed and security of our systems and We are focused on addressing a new risk culture framework helped ensure the bank remained open these shortcomings, including to better defne risk roles and proceedings have for business through the COVID-19 Addressing our shortcomings through a program called responsibilities, updated our pandemic and support customers via become a catalyst by materially improving our Customer Outcomes and Risk Code of Conduct reinforcing digital channels. for change at management of risk and risk Excellence (CORE). CORE is a the importance of speaking culture, reducing customer comprehensive, Group-wide up and the use of the Should In 2020 we developed a detailed Westpac.” pain points, completing transformation program that We test, and commenced technology roadmap for the next phase our historical customer is designed to improve non- the roll-out of a Group-wide of our transformation to build a single, remediation programs and fnancial risk oversight, lift risk Risk Fundamentals training multi-brand operating environment. The issues highlighted by the reducing the complexity of culture and strengthen our risk program. AUSTRAC proceedings deeply our technology. management framework. disappointed shareholders, Remediating customers customers, and the community, What this involves: The program has 14 streams of We continue to review our as well as Westpac employees. — Risk management work under three categories: products, processes and Together with the immediate — Culture, including risk – direction and tone set by policies where we have not got actions outlined in our AUSTRAC REDUCING CUSTOMER PAIN POINTS culture Board and Group Executive - it right for customers. Where Response Plan, we have a Over the past two years, we have — Customer remediation initiatives that set clear tone problems have been identifed, signifcant change agenda made signifcant changes to the and direction from leadership we have committed to fx them underway. — Reducing IT complexity management of customer complaints, to promote a proactive risk and refund customers. Over — Reducing customer pain both in terms of our processes and by culture; $640 million in remediation points identifying and addressing root cause – c lear risk boundaries for payments have now been made issues that lead to complaints. for approximately 2.7 million In July 2020, we announced the decision-making - simplifying Initiatives include complaints skilling customer accounts. fndings of our reassessment risk management frameworks sessions for bankers with a focus of our Culture, Governance and increasing capability and on frst point resolution, an updated resources in the Risk function; Redoubling our efforts to and Accountability (CGA) remove IT complexity Complaints Management Standard Program which was undertaken and and continuing to make information on how to make a complaint easier in response to a request from a ccountable and empowered We started a program to 6.5 days to fnd. We have also rolled out APRA. The reassessment found people - providing additional reduce complexity some years average time to resolution ago, which prioritised the a new complaints management 1 that important shortcomings training and support for for complaints , compared to system to help improve the customer 9 days in 2019 remain in Westpac’s culture, employees to help them upgrade of our technology infrastructure while experience and for better compliance commencing the development and reporting. of our customer service hub,

1 Group Internal Dispute Resolution complaints excluding WIB complaints.

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

We are clear on Simplify Perform the locations, Returning to our core to hold the businesses that we Improving performance by Financial performance markets, and businesses of banking in do not view ourselves as the building customer loyalty Australia and New Zealand, long-term owners of, and are and growth through service, For the full year 2020, Westpac businesses in including exiting some consolidating our international sharpening our focus on Group reported proft was businesses and international operations to focus on the returns, and resetting our $2,290 million, down 66%, which we operate” locations. Rationalising areas where we can best cost base. A strong balance and cash earnings of $2,608 products and simplifying support customers. sheet and engaged workforce million. Much of the decline processes to make it easier for form the foundation of resulted from our operating For greater accountability customers to bank with us. performance. environment, where we faced for end-to-end performance lower margins and higher What this involves: we are moving to a Lines of What this involves: impairment charges – a direct — Exiting non-core businesses Business operating model. — Customer service – market result of COVID-19. However, and consolidating Under this model, each line leading the poor result was also due (a major customer offering) to higher costs related to the international locations — Mortgage growth has end-to-end responsibility AUSTRAC proceedings along — Rationalising products for that business. For example, — Enhancing returns, with asset write-downs from — Implementing Lines of in our Mortgages Line of optimising capital businesses we plan to exit. Business operating model Business a Managing Director — Strong balance sheet Nevertheless, our balance sheet inspired to keep it — Transforming using digital is responsible for the entire simple and easy — Re-setting cost base remained strong. Our capital and data mortgage process from origination, pricing, credit The following Helping ratios are in the top quartile of Our focus is providing customers assessment and service. customers chapter outlines banks globally and funding and in Australia and New Zealand some of the many ways liquidity ratios are comfortably with a full range of banking Across our product line we that we are supporting our ahead of regulatory minimums. services through our portfolio of continue to streamline our customers, particularly brands. offerings, with initiatives to throughout the challenges migrate customers to newer of the last year’s events and To reduce complexity and help and more fexible products, us become a simpler, stronger COVID-19. Restoring mortgage as well as using digital to growth is a key priority. bank, we have established a new automate processes. Specialist Businesses division

Restoring mortgage growth is a key priority

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

THE ISSUES THAT MATTER

Helping customers

This year we defned our new company purpose: helping Australians and New Zealanders succeed. Success means something different for every customer, and that meaning can change over time. We want to be there for our customers – helping them to build their fnancial future and providing extra support when it’s needed most.

2020 SNAPSHOT

14.1m $555bn customers in customer deposits

75,367 $693bn fnancial assistance in lending packages for customers facing fnancial hardship

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

Responding Our Service to COVID-19 Promise Great conversations create great service. It’s With banking an essential SUPPORTING CUSTOMERS Customer needs continue to get more service, our teams are working complex, while customers want banking service with a purpose.” hard to support customers, AROUND to be simpler, smarter and smoother. ROSS MILLER, CHIEF CUSTOMER communities and the broader Our job is to make the customer ENGAGEMENT OFFICER economy throughout the 175,000 experience as seamless as possible COVID-19 pandemic. mortgage deferral packages when, how and where customers choose to engage with us. Initially our focus was on protecting our people and AROUND For our bankers, having conversations customers while remaining with customers and taking the time to open for business and providing understand their situation and fnancial CARE, LISTEN, ACT a range of customer support 40,000 goals is key to providing great customer deferrals for businesses A couple with a newborn found a home they packages such as mortgage and service. wanted to buy, but only had 15% of the necessary business loan deferrals. While we retained our number one Net deposit saved. AROUND Now our focus has shifted to Promoter Score1 ranking in Business A colleague recommended they meet with St.George working with customers who banking against the other major Lending Manager Jewel Zhang, and by listening to need more individual support. 220,000 Australian banks this year2, we are understand their situation, Jewel was able to identify We encourage any customer early release superannuation number three in Consumer banking3 . a number of ways to help them purchase the home. experiencing fnancial hardship to applications paid We remain focused on improving our With our $1 Lenders Mortgage Insurance (LMI) offer, contact us early so we can assist customer service and, where we haven’t available to frst home buyers borrowing up to 85 per them with tailoring support for MORE THAN got it right, putting in place appropriate cent of the property value4, the couple could purchase their individual circumstances. remediation, improving our customer the home without having to continue to save for complaint handling processes and another two years, as well as saving on LMI costs. 90% addressing the root cause issues that Additionally, when Jewel learned that the mother of branch network remained open lead to complaints. would be returning to work full-time, she was able to acknowledge the mother’s back to work income as part of the new home loan application. $200 1 Net Promoter Score measures the net likelihood of Taking the time to understand the situation, along Increased limit for ‘tap and go’ recommendation to others of the customer’s main with our range of products and policies, helped the contactless card purchases to $200 fnancial institution for retail or business banking. Net Promoter ScoreSM is a trademark of Bain & Co Inc., couple secure the home. SatmetrixSystems, Inc., and Mr Frederick Reichheld. 2 Source: DBM Consultants Business Atlas, March - August 2020, 6MMA. MFI customers, all businesses. 4 LMI is usually required where fnancing exceeds 80% of the property 3 Source: DBM Consultants Consumer Atlas, March - value. Full product information and T&Cs available on the St.George August 2020, 6MMA. MFI Westpac Group customers. website.

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

With 80% of digital customers To support small and medium New and using their phone for banking, businesses, we are proactively we are rolling out a new contacting customers who we simpler Westpac personal banking believe would beneft from app. The app is designed to be activating Merchant Choice products faster and easier to use, with Routing for least cost payment more intuitive navigation and routing. Westpac Business To help reduce pain points quicker payments. Advance, a new digital and deliver better customer unsecured business lending Apple Pay is now available for experiences, we have product, provides an easy Westpac, St.George, BankSA introduced new and simpler online application and rapid and Bank of Melbourne products and streamlined our credit decision allowing existing customers, while our Instant product offerings. eligible customers to apply for Digital Card provides loans of up to $75,000. To improve the home customers with a digital version ownership experience, we of their credit or debit card now have digital tools to help BRINGING 1,000 JOBS BACK via the Westpac Live mobile TO AUSTRALIA customers prepare for their banking app – particularly frst home loan appointment, DIGITALLY ACTIVE Around 1,000 jobs will be brought Our new personal banking app helpful for when cards are CUSTOMERS back to Australia from overseas, upload documents, accept a lost, stolen or forgotten. loan offer in one click and track (million) following a large increase in demand for customer assistance following their application via online Our BT Panorama mobile 5.8 5.9 5.6 the start of COVID-19. With strict banking through to settlement, app received the highest user 5.3 lockdowns impacting our offshore with reminders and alerts. ratings from advisers surveyed 4.9 in the Investment Trends partners, we were limited in how We have introduced a new Planner Technology Report quickly we could process certain requests creating delays for customers. bonus savings rate offer for the third year in a row. to help young Australians The new roles will support home, save for their frst home, To help customers remotely, personal and business lending and and our supplementary we can now verify customer assist customers in fnancial diffculty. Emergency Services Credit identity via video technology, Policy allows permanent and in New South Wales and front-line emergency services Victoria, customers can ‘e-sign’ workers to have 100% of their home loan documents. 16 17 18 19 20 overtime and allowances assessed as part of their home loan application.

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

To help customers avoid Information scams, we have introduced the Security Wellbeing Check security and within the Westpac App, hosted scam awareness seminars in $29m data privacy communities across Australia and distributed more than 8,000 recovered for copies of the ACCC Little Black customers in lost Keeping customer data and funds from scams accounts safe is a priority Book of Scams. and we continue to strengthen We also released a Financial our systems and educate Abuse Support Guide to help our community. protect those who might be more vulnerable to fraud or Protecting customers scam-related activity. from scams The latest ACCC Targeting Fraud protection Scams Report found Australians We provide 24/7 fraud reported more than 336,000 protection monitoring for scams last year with a loss of irregular and suspicious over $634 million. There has also activities. Our Westpac been a spike in scams since the Fraud Money Back and start of COVID-19. Online Transaction Security We have introduced new scam Guarantees provide SCAM PROTECTION IN ACTION detection technology that sends reassurance that customers will John and Valerie were approached by scammers who claimed they were branch employees real-time be reimbursed in the event of calling in relation to the NBN and said someone was trying to hack into their alerts as payments are being unauthorised transactions.1 processed where suspicious phone line. John and Valerie were kept on the line for a few hours, with the transactions are identifed, scammers asking them to ‘check this and that’. allowing them to be investigated At one point they were asked to download fles onto their computer, which on the spot. then allowed the scammers to create a backdoor into their computer and Our specialised Scam Assist team attempt to transfer funds from their credit card. supports scam detection and Fortunately, Westpac’s security system recognised the transfer as prevention for customers, while potentially malicious and immediately blocked the customers’ internet our branch teams have received banking access, preventing any fnancial loss for the customer. Realising enhanced scam training. that something was wrong, John and Valerie also called the branch and were advised to hang up the call with the scammers.

1 Subject to applicable terms and conditions.

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

Treating data with care — introducing technology — Offered an interest to prevent some types Help in the adjustment/discount for Protecting the personal of sensitive data from customers with a Farm data of our customers being released out of moments that Management Deposit to and employees, as well as the organisation without offset eligible business loans. our confdential business appropriate protection; matter ~1,980 information is a priority across Bushfres — implementing fle sharing disaster relief packages our organisation. This year, many customers — Provided $3.83 million in to help customers impacted technology to simplify and have endured the impacts emergency cash grants by bushfre Our Privacy and Information improve the secure sharing of prolonged drought and to consumer and business Security teams are responsible of data with third parties devastating bushfres. customers for setting policy and and customers; — Provided around 1,980 standards in accordance — implementing a tool that Our Financial Recovery Hub disaster relief packages to with our risk management helps our people classify provides customers with help customers manage framework and with privacy their emails and fles to fnancial resources and tools their fnances, including laws and regulations. We have improve data handling; to help get them back on track processes in place designed following a crisis. Tailored assisting with alternative to monitor for existing and — new training to increase support packages this year arrangements such as new privacy risks and we are employee understanding included: repayment deferrals of our privacy obligations taking steps to continue to — Received 603 home and when handling personal Drought strengthen our privacy and contents insurance claims, data; and data protection approach. — Extended our ongoing with total claims from — strengthening data breach support to customers under Current areas of focus include: bushfres currently estimated awareness and response a new Drought Assistance at over $37 million — adapting our processes for processes. Package the increased number of — Donated over $1.4 million — A $100 million fund to to community groups and employees working from provide carry-on fnance home; charities, including Financial loans of up to $1 million to Counselling Australia, State- — simplifying our website existing eligible Westpac based volunteer fre services privacy policy to make it agribusiness customers at a and the Foundation for easier for customers to heavily discounted variable Rural and Regional Renewal understand how we handle interest rate (FRRR) their personal data; — Option to defer principal — Supported customers, and interest repayments on communities and employees existing business term loans by providing relief staff and equipment fnance for to selected branches and up to 12 months mobile banking solutions across affected regions.

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Helping those in need We also offered support for banking needs including access of extra care elderly customers and people to cards or cash, establishing MAKING COMPASSIONATE SERVICE experiencing vulnerability to telephone and internet banking AN INDUSTRY PRIORITY Many of us will become get started with contactless and resolving issues with scams The [Yuri Ingkarninthi Loss of a loved one is a diffcult vulnerable at some point in our banking due to COVID-19 and fraud. Indigenous Connection] time and can feel overwhelming. A lives and need extra help or restrictions. new Australian Death Notifcation care. We continue to improve With our program of remote team at Westpac Service (ADNS) initiative, developed support for customers in these To assist individuals visits paused due to COVID-19, treats clients with the in collaboration between the NSW circumstances. experiencing a problem with the Remote Services team Government, Westpac and other gambling, our gambling extended its phone, email respect, dignity and major banks, will allow the next of This year our specialist teams preference opt-out option and video support. The team understanding that supported more than 24,000 kin or representative to provide a allows customers to block also proactively connected they deserve, and show verifed notice of death to multiple customers experiencing transactions with merchants with other service providers organisations in a single transaction, vulnerability and issued over we can identify as gambling in remote communities to grace and patience saving them time and the burden of 75,300 fnancial assistance merchants on our consumer understand the evolving when supporting repeating their story. packages for customers facing credit cards and some challenges faced by customers people that have fnancial hardship. debit cards. and increase awareness limited interactions We developed an enterprise- of the services offered by wide standard to help our Remote services banking the Indigenous Connection with electronic support people support customers call centre. Westpac Remote Services services.” in vulnerable circumstances, supports Aboriginal and Torres and a Family or Domestic Strait Islander customers in BRENTON NIEMZ, Violence Position Statement to remote communities who may REGIONAL MANAGER, FAR WEST outline the principles we apply COAST SA, AUSTRALIAN RED CROSS face geographic, language and when providing extra care to cultural barriers to accessing affected customers. fnancial services. To assist customers and First piloted in 2018, this year their families going through we expanded Yuri Ingkarninthi, challenging circumstances, our Indigenous Connection call we provide education toolkits centre, to cover customers in and resources on areas such all States and Territories. More as loss of a loved one, divorce than 18,000 conversations were or separation, and elder held with over 5,000 customers fnancial abuse. to support a variety of remote

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THE ISSUES THAT MATTER

Supporting our people and communities

As one of Australia’s largest companies and banks, we can help support the social, economic and environmental wellbeing of Australia and New Zealand. We can do this as an employer, through the fnancing decisions that we make and through the role we play in supporting local communities.

2020 SNAPSHOT 40,225 $150m+ employees (headcount) in community investment1 $10.1bn 719 lending to climate change jobs2 created by Westpac Foundation3- solutions backed social enterprises

Westpac Foundation has 1 Excludes commercial sponsorships. awarded $300,000 over 2 Jobs created through the Westpac Foundation job creation grants to social enterprises are three years to Soft Landing, for the year ended 30 June 2020. a national social enterprise 3 Westpac Foundation is administered by Westpac Community Limited (ABN 34 086 862 795) that diverts end -of-life as trustee for Westpac Community Trust (ABN 53 265 036 982). The Westpac Community mattresses from landfll and Trust is a Public Ancillary Fund, endorsed by the ATO as a Deductible Gift Recipient. None of creates stable and meaningful Westpac Foundation, Westpac Community Trust Limited nor the Westpac Community Trust jobs for people experiencing are part of Westpac Group. Westpac provides administrative support, skilled volunteering, barriers to employment. donations and funding for operational costs of Westpac Foundation. Find out more about Westpac Foundation on page 26.

Please see page 30 for more detail on climate change and page 37 for human rights. WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 19 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

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COVID-19 has increased the The huddles explore our values Our people need for mental wellbeing to provide clarity on expected support. In response, we behaviours in everyday Our priority through COVID-19 have introduced new tools situations and help to build has been to protect our and resources to support our culture of service and 9.4% people while remaining open employees’ health and performance. wellbeing, including for parents of employees using Employee for business so we can support Our employee commitment and carers balancing home Access Program for confdential customers, communities and index1 increased to 73%, counselling and coaching and work commitments, and the Australian economy. from 72% at the end of FY19. for employees exposed to the After a downturn following We have implemented a broad increased risk of domestic the AUSTRAC proceedings, range of measures to protect and family violence. During employee engagement the health and wellbeing of the bushfre crisis earlier 20,000+ strengthened over the year employees. This includes in the year, we provided employees transitioned to as we supported customers working from home enhanced corporate cleaning targeted solutions for our most and communities during the WELLBEING PODCAST SERIES of our sites, personal protective impacted customer support bushfre crisis and COVID-19. equipment, temperature teams and wellbeing checks for Westpac Chief Mental Health Offcer In addition, the changes we checks in larger sites and employees in bushfre regions. Dave Burroughs’ Wellbeing podcast 73% installation of polycarbonate are making to our business are series is helping employees stay A focus of our mental health helping to address our people’s connected and focused on their 1 protective screens in branches. employee commitment index strategy has been enhancing feedback. wellbeing during a period of change Where possible, we leadership capability, and uncertainty. Dave shares practical transitioned to remote working, with 2,250 people leaders Building skills for the advice from his 20-year career with more than 20,000 completing training in early future as a psychologist, with episodes employees working from home intervention, prevention of ranging from coping with isolation to and special leave provisions mental ill-health, and the To help our people continue to managing your fnancial wellbeing. introduced to address illness, importance of supportive develop their skills, we provide self-isolation and changed leadership behaviour. a range of structured and self- childcare responsibilities. paced learning experiences, Our Service Promise including virtual coaching With a large increase in support to help bankers have demand for customer Weekly ‘huddles’ where great customer conversations assistance through online employees come together to and deepen relationships. channels and telephone, we share great examples of service We have also partnered with had to quickly increase staffng and areas where we need to leading universities to offer in our contact centre and change remain an important employees a range of micro- operations teams. part of our operating rhythm. credentials in transferrable skills such as risk, lending and service. 1 Six-month rolling average.

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

Creating a diverse, This year we welcomed 115 — ABLE – focused on disability inclusive culture new-to-bank Aboriginal or and accessibility inclusion; Sustainable fnance Torres Strait Islander hires and — Amplify – for employees Recognising and embracing increased the regional footprint over 50; Many corporate and institutional customers are moving towards the diversity of our people of our Aboriginal and Torres — Brothers & Sisters – more sustainable business models. We offer a broad range of helps us to create an inclusive Strait Islander traineeship supporting our Aboriginal sustainable fnance products and services to support them. culture where employees feel program, which provides paid and Torres Strait Islander they belong, are encouraged full-time or school-based community; Sustainable lending to bring new ideas and traineeships to build experience understand the diversity of in the fnancial services industry. — Cultural Diversity Leadership An Economist Intelligence Unit report2, sponsored by Westpac the communities we serve. – elevating cultural diversity and released in February, found 68% of investors plan to increase We have launched the second in our leadership; their allocation of funds in sustainable investments over the next We have maintained 50% intake of our Tailored Talent 1 — Domestic and Family 12 months, with renewables and energy effciency leading the way. Women in Leadership roles program, designed to overcome Violence – raising awareness overall and are focused on hiring barriers for people on the This year, our sustainable lending focused on supporting positive and support for people growing diversity in our autism spectrum. The program social outcomes amidst the economic and social impacts of COVID-19 impacted by Domestic and leadership pipelines for the was recognised with the 2020 and continuing to support the transition to a low carbon economy. most senior levels of the Family Violence; Aspect Advancement Award Globally, social fnance increased more than four times over the six organisation through dedicated — GLOBAL – focused on from Autism Australia. months to end June compared to the prior year. leadership programs. LGBTIQ inclusion; Our Employee Action Groups — Pro Bono Volunteering Westpac continued to be the largest fnancier to greenfeld renewable A new Cultural Diversity bring together communities of – connecting employees energy projects in Australia, funding 13 projects over three years with Leadership Shadowing employees with shared interests with skilled volunteering capacity to support more than 1.2 million households. Program enables employees who are passionate about opportunities; from a wide range of ethnic growing our inclusive culture There is continued demand for green loans, as well as sustainability- backgrounds to be partnered and promoting awareness of — The Youth Network – for linked loans, which incentivise and reward borrowers for meeting with a senior leader to issues and opportunities. With employees under 35; pre-determined sustainability targets. Transactions this year learn from their leadership over 10,000 members, our — Veterans – supporting include: experiences. 210 employees EAGs include: current and former Defence — Coriance secured a 100 million sustainability-linked loan aligned participated in this frst year of members and their partners; with three targets key to its core business and cost of funds; the program. and — Westpac NZ and Contact Energy entered into a $50 million, — Women of Westpac – four-year sustainability-linked loan facility, one of the frst of empowering women. its kind in New Zealand. The loan’s incentive targets align with continual improvement in Contact Energy’s Environmental Social and Governance (ESG) performance, including assessment of its climate strategy, electricity generation mix, corporate governance and stakeholder engagement;

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 signifcant infuence on business outcomes (direct reports to General Managers and their direct reports) large (3+) team people leaders three levels below General Manager, and Bank Managers and Assistant Bank Managers. 2 www.westpac.com.au/corporate-banking/westpaciq/fnancing-sustainability-report

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— Genex secured $192 million solar installations at three Responsible Investment (PRI), In addition to providing of funding for their Jemalong research centres run by the refecting our long-term customers access to ESG Solar Project and the NSW Department of Planning, commitment to leadership in tools through our Panorama refnancing of the existing Industry & Environment (DPIE) this space. investment platform, BT debt facility for the Kidston in partnership with Verdia. launched new resources to Our refreshed BT Sustainability Solar One Project. The senior help advisers and their clients #1 During the year, we updated Framework outlines how we facility has been verifed understand their options for largest fnancier to greenfeld our Sustainability Risk embed sustainability and as a Green Loan, the frst considering or prioritising renewable energy projects1 in Management Framework and ESG considerations in our globally to be certifed under sustainability investments. Australia for past three years ESG Credit Policy, developed investment process and enable the updated Climate Bonds tools to support bankers our members and investors to BT continues to disclose its Standards v3.0. The loan when considering ESG risks, make informed choices about approach to climate change is also the largest Certifed and enhanced our position our products and services. across our wealth management Green Loan by an Australian $10.1bn statements including on business, in alignment with the renewable energy group; and For investments we manage lending to climate change climate and human rights. recommendations of the FSB internally, we launched our solutions — Westpac NZ helped Meridian Regulators across multiple Task Force on Climate-related new BT Sustainable Investment Energy launch its Green jurisdictions, including APRA Financial Disclosures (TCFD). Policy. This outlines how BT Finance Programme. All and ASIC, continue to advance approaches sustainability Meridian’s $1.8 billion debt their agenda on climate risks, when investing on behalf of 75% instruments are covered by and it remains an area of customers, including members renewable energy represents the programme, including interest for investors. 75% of our lending to the a dedicated pool of eligible of the default MySuper Lifestage funds available electricity sector wind and hydroelectricity Sustainable investment projects and assets. The through our retail and corporate programme has been Through our wealth superannuation funds. management business, BT, independently reviewed and This year we received we continue to develop and verifed by DNV GL Business SuperRatings’ Infnity Assurance Australia. expand our approach to recognition across both FIRST GREEN LOAN IN sustainable investment. We have continued our strong BT Super and BT Super for SUPERANNUATION partnership with government, BT maintained its A+ rating Life, in recognition of industry- This year, we launched Australia’s scoping and delivering bespoke for its sustainable investment leading sustainable behaviour frst green loan developed for the energy options for the NSW strategy and governance and a genuine commitment superannuation sector. Working Government. This includes through the Principles for to responsible investment closely with Local Government principles. Super, the $65 million green loan was structured by determining which of the buildings in its Local Government Property Fund meet international standards for green buildings set by the Climate Bonds Initiative.

1 IJGlobal, September 2020.

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Affordable housing Managing our supply chain Our supplier inclusion and diversity program has also During the year we were We work with over 8,600 continued to grow with 3 joint lead managers for supplier partners and during $19.1 million spent with diverse National Housing Finance the year procured goods and suppliers during the year. $19.1m and Investment Corporation services worth $6.5 billion spend with diverse suppliers1 (NHFIC) on two social bonds, across Australia and New Responding to the $315 million in November Zealand. This year, our Top Australian Modern 2019 and $562 million in June 100 suppliers by spend4 in 2020 – the largest social bond Australia and New Zealand Slavery Act $5.9m by an Australian issuer and were assessed to identify A regulatory change project three times oversubscribed, inherent ESG risks. has been established to spend with Indigenous-owned refecting strong demand. manage our compliance with businesses In response to the Modern the Modern Slavery Act 2018 The funds raised by the Slavery Act 2018 (Cth), we have (Cth). We plan to publish a bonds support community published a new Responsible frst statement under the A HEAD START ON HOME housing providers (CHPs) Sourcing Code of Conduct, new legislation by 31 March OWNERSHIP across New South Wales, updated our Responsible 2021. Work is underway to Head Start Homes (HSH) is a Queensland, South Australia, Sourcing assessment tool identify, manage and mitigate not-for-proft community services Tasmania, Victoria and Western to increase our ability to modern slavery risks across our organisation that acts as guarantor Australia, fnancing over 4,700 identify risks of modern operations and supply chain. for single mothers, First Nations properties including over 1,100 slavery and expanded the We continue to report under the people and families in need living in new dwellings. scope of our assessment (UK). community housing who can afford activities to suppliers in high Modern Slavery Act 2015 Our lending to the social and a home loan but are locked out due risk categories, outside of our to the need for a large deposit or affordable housing sector For more on our human rights Top 100 by spend. We have increased to $1.7 billion2. This disclosures, please see page 37. mortgage insurance. commenced a redesign of the refects a change in market HSH was established by Westpac Responsible Sourcing Program dynamics with funding sources employee Stephen Woodlands to enhance our methods of to the sector more diversifed. and Westpac has supported the identifying ESG risks and take We continue to support NHFIC organisation – with Stephen seconded steps to mitigate and manage and its clients. to HSH until April 2021 and through ESG risks across different Westpac employee volunteers. industries and deeper into our supply chain. This year, HSH assisted its frst homebuyer into the market, Charlene, a solo parent of three children in Port 1 Diverse suppliers include businesses that are at least 51% Indigenous owned and controlled, at least 51% female owned and controlled, Macquarie, with St.George providing Australian Disability Enterprises, social enterprises or B Corporations. her Head Start Pledge home loan. 2 Refers to the cumulative Total Approved Exposure to customers in the Social and Affordable Housing sector since 2013. For full defnition, please refer to the 2020 Sustainability Appendix. 3 Methodology for supplier numbers updated in 2020. 4 Top 100 suppliers to Westpac Australia covered by the Responsible Sourcing Program by spend for the 12 months ended 30 September.

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Additionally, we are supporting Building fnancial Helping to suitably qualifed employees confdence with up to two weeks’ paid Volunteering build stronger, volunteer leave so they can During the year we delivered my professional volunteer in a medical feld a range of fnancial education more inclusive related to COVID-19. programs, reaching over one skills with a social million participants. enterprise is communities In response to COVID-19, our partnership with Jawun pivoted Westpac’s fnancial education extremely rewarding. from providing place-based experts, The Davidson Institute It allows me to think Skilled volunteering and secondments of 6-12 weeks relaunched its fnancial education platform, including about my customers employee giving with Indigenous community organisations around Australia, a new online fnancial ftness in a different way Through our community to online secondments. Since course and videos to simplify and understand their programs, we support 2001, 940 Westpac employees complex fnancial concepts like our employees to make a have completed a Jawun compound interest. needs on a deeper difference in the issues and secondment. To connect with 18-35 year WESTPAC YOUTH IMPACT and more personal causes important to them. CHALLENGE This year, over $2.74 million olds, we introduced a new level.” This year, we launched the Pro was donated to more than series of social media video Year 1 to 12 students from across Bono Employee Action Group 780 charities through our content featuring journalist Australia took part in the Westpac JOYCE JIAO to bring together employees Matching Gifts program, which Marty Smiley covering topics Youth Impact Challenge, run by The ASSOCIATE DIRECTOR, passionate about sharing their matches employee donations like buying a property and the Davidson Institute in partnership with SUSTAINABLE FINANCE, youth entrepreneurship organisation professional skills with not-for- to eligible Australian charities gig economy. AND WESTPAC FOUNDATION Fiftysix Creations. Students identifed profts. Westpac employees dollar for dollar. COMMUNITY AMBASSADOR a UN Sustainable Development Goal FOR SHEWORKS contributed over 14,300 skilled volunteering hours. 67 employees took part in an and pitched their innovative business Australian-frst pilot of Giving or social change ideas to help solve We also supported employees Circles at Work in collaboration it. Over 84,000 students engaged to volunteer in support of with Good2Give and the Centre with Youth Impact HQ, with 4,156 bushfre affected communities, for Social Impact Swinburne. submissions made to the Challenge. providing uncapped paid The pilot found that collective leave for emergency services giving, where donors pool volunteers (including Fire, SES, their funds and jointly decide Paramedic and Defence) and where to donate, is a positive three days’ paid community experience for employees and volunteering leave to volunteer annual donations of participants with community organisations. increased by 43%. We are now looking to support Giving Circles as an ongoing part of our workplace giving program.

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BUILDING A SIMPLER, STRONGER BANK | HELPING CUSTOMERS | SUPPORTING OUR PEOPLE AND COMMUNITIES

Reducing the human $6 million over six years to Tomorrow’s leaders support the delivery of its impact of fnancial crime 1 ‘Protect Children – Philippines’ Westpac Scholars Trust One of the commitments in project. awards 100 scholarships each our Response Plan to the year to individuals from all AUSTRAC proceedings was We are working with an walks of life who have the to develop a program to help international non-government ideas and drive to help shape reduce the human impact of organisation to invest the future of Australia. fnancial crime. $25 million in cross-industry data sharing projects to better Westpac Scholars are The program involves a series detect, monitor, report and talented Australians of actions and investments we prevent harm to children tackling issues of profound intend to deliver in Australia associated with fnancial crime. importance, from fnding and across the Asia Pacifc treatments for rare diseases, Region over three years to Most recently, we to creating innovative make a meaningful impact on launched a new Impact businesses to help solve child safety and protection. Grants program, allocating our most pressing social $9.2 million to support problems. Today there are To guide our approach, we community organisations almost 500 Westpac Scholars established the Safer Children, and not-for-profts working across Australia. Image courtesy of Synchron. Safer Communities Roundtable across a range of child safety of experts in human rights, and protection initiatives child safety, online safety and in Australia. YOU READ MY MIND law enforcement. Westpac Scholar Associate Professor Progress this year included Respecting human rights Nick Opie has designed a device developing strategic This year we released our that could help thousands of partnerships with International Since 2014, Westpac Scholars updated Human Rights Trust has awarded scholarships Australians whose illness or injury Justice Mission to invest Position Statement and valued at $24.6 million in affects their movement and ability to $18 million over three years 2023 Action Plan. partnership with 22 universities communicate – by reading their mind. to tackle online sexual across Australia The Stentrode, a tiny electronic exploitation of children in the Find out more about our approach device implanted into the brain, can Philippines, and with Save the to human rights on page 37. translate brain signals into movement. Children (Australia) to invest With the help of a Westpac Research Fellowship, Opie and his team at The University of Melbourne have progressed to human trials.

1 Westpac Scholars Trust (ABN 35 600 251 071) is administered by Westpac Scholars Limited (ABN 72 168 847 041) as trustee for the Westpac Scholars Trust. Westpac Scholars Trust is a private charitable trust and neither the Trust nor the Trustee are part of Westpac Group. Westpac provides administrative support, skilled volunteering, and funding for operational costs of Westpac Scholars Trust.

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Helping create jobs for This year, Westpac Foundation vulnerable Australians partnered with the Foundation for Rural and Regional Renewal This year, Westpac Foundation2 1 (FRRR) to award grants to 50 719 jobs awarded $2.3 million in grants local community organisations to employment-focused social in rural, regional and remote In 2020, Westpac Foundation enterprises and community helped social enterprises communities affected by create 719 jobs and 1,245 organisations that create drought, bushfres and employment pathways jobs, training and education COVID-19. opportunities for Australia’s most vulnerable. COVID-19 has had a profound impact on the social sector, with much of the Foundation’s focus on supporting its grant partners sustain operations as they seek new revenue models. In addition to grants, Westpac Foundation expanded its non-fnancial support, including working with Social Impact Hub to provide access to pro bono support, professional development, business mentoring and networks across the sector.

THE BREAD AND BUTTER PROJECT The Bread and Butter Project is Australia’s frst social enterprise bakery, investing 100% of its profts into training and employment opportunities for refugees and asylum seekers. Normally operating as a wholesale bakery, the closures of cafes and restaurants due to COVID-19 resulted in a 60% loss in revenue overnight. With Westpac Foundation’s support, the social enterprise was able to increase its retail sales by expanding its distribution to Woolworths Metro stores. The pivot helped ensure the bakery could keep its doors open and its team of bakers and trainees employed. 1 & 2 Refer to footnotes on page 19.

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

2018–2020 Sustainability Strategy

At the conclusion of our 2018–2020 Helping people Helping people Helping people Sustainability Strategy we met or make better by being there create a prosperous exceeded over 80% of the measures fnancial decisions when it matters nation most to them we set out to achieve in late 2017.1

Despite these achievements, the AUSTRAC proceedings highlighted shortcomings, particularly in our management of fnancial crime and underlying cultural and operational issues. Information about the actions that we are taking as part of our Response Plan and our broader change agenda can be found in the Becoming a simpler, stronger bank section on page 10. Complementing these actions, Culture Fundamentals our 2021–2023 Sustainability Strategy, scheduled for release later this year, will set out where we believe we can create the most impactful long-term value for our stakeholders over the next three years.

1 Total number of measures met divided by total number of measures. See also, 2020 Sustainability Appendix - Strategy Scorecard.

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

2020 SUSTAINABILITY STRATEGY KEY OUTCOMES

Helping people make better Helping people by being there Helping people Culture Fundamentals fnancial decisions when it matters most to them create a prosperous nation

— Provided fnancial education to During the three-year period of the strategy: During the three-year period of the strategy: — Reduced average time to — Committed to source 5 Australians and New Zealanders — Helped customers experiencing hardship, — Westpac Foundation1 job creation grants resolution for complaints 100% of global electricity through a range of programs (see issuing over 165,000 fnancial assistance to social enterprises helped to create over to 6.5 days in Full Year consumption from 2020 Sustainability Datasheet – packages. 2,000 jobs2 for vulnerable Australians. 2020, compared to 9 days renewable energy sources Financial education). This includes: in Full Year 2019. by 2025 and joined the — Supported customers and communities — Westpac Foundation1 awarded over • O ver 1 million people participated RE100. during diffcult times including: 400 Community Grants to the total of — Maintained 50% women in in fnancial education programs, leadership roles over the — Maintained carbon neutral • $ 100 million Drought Assistance Package. $4.1 million and supported approximately delivered through face to face and 6 52,000 people. last three years. status . online platforms in FY20; and • Bushfres response including interest 3 — 416 new-to-bank hires — Contributed over • F inancial capability free and discounted loans, $3.8 million in — Westpac Scholars Trust awarded over emergency cash grants to customers and $12 million in educational scholarships, over the three years are $410 million to community communications for different Aboriginal or Torres Strait investment excluding demographic segments including over $1.4 million in donations to community with 474 scholarships now awarded. groups and charities. Islander. commercial sponsorships in FY20 for young Australians, in — We grew our Many Rivers partnership, over the last three years, • COVID-19 response included 175,000 4 — Updated a range partnership with Year 13; women, supporting 2,495 people with jobs , with contributions above mortgage deferral packages and ~40,000 of employee leave via Ruby Connection (72,000 with 868 identifying as Indigenous. 1% of pre-tax profts.. deferrals for businesses. entitlements to recognise members of the Ruby Connection — Lending to climate change solutions Community, 260k engagements • Developed an enterprise-wide standard the diverse make-up of — Around 9.6% of employees grew to 10.1 billion, exceeding our target our people. participated in Westpac and 15 million impressions across to help our people support customers in of $10 billion. Ruby Connection social channels); vulnerable circumstances. skill-based volunteering — Joined other Australian banks, insurers, and older Australians, via Starts at programs, and/or — Established Yuri Ingkarninthi, our super funds, investors and industry groups 60 (over 2 million interactions). accessed volunteering Indigenous Connection call centre, to form the Australian Sustainable Finance leave. — Helped more customers better conducting over 18,000 customer Initiative. understand their fnancial position conversations this year to support a — We were founding a bank and signatory through regular contact programs variety of remote banking needs. to the Principles for Responsible Banking, on product features and usage, with developed in 2019 as part of the United 83% of our Consumer customers Nations Environment Programme Finance contacted during FY20. Initiative (UNEP FI). — Established the Safer Children, Safer Communities Roundtable of experts in human rights, child safety, online safety and law enforcement as part of our AUSTRAC Response Plan. OBJECTIVES NOT MET

An initiative to send customers An initiative to increase the number of Businesses of Tomorrow program did not personalised cash management businesses supported through a transition, progress in 2020 due to ongoing impacts 1 & 2 Refer to footnotes on page 19. reports was discontinued during such as family succession and generational of COVID-19. 3 Refer to footnote on page 25. the strategy period. change was not continued after pilot testing. 4 Jobs created through the Many Rivers job creation are for the year ended Lending to social and affordable housing 31 December 2019. did not reach our target of $2.5 billion as 5 Group Internal Dispute Resolution complaints excluding WIB complaints. government-backed entities played a larger 6 Refer to Westpac’s carbon neutral certifcations on Westpac’s website: role as capital providers in the market. www.westpac.com.au/about-westpac/sustainability/performance-reports

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

5 year non-fnancial summary1

2020 2019 2018 2017 2016 2020 2019 2018 2017 2016

Customer Environment Total customers (millions) 14.1 14.2 14.2 13.9 13.4 Total Scope 1 and 2 emissions (tonnes 107,634 121,168 128,339 134,237 156,701 CO -e) Digitally active customers (millions) 5.9 5.8 5.6 5.3 4.9 2 Total Scope 3 emissions (tonnes CO -e) 91,616 87,262 90,454 94,279 80,125 Branches 1,103 1,143 1,204 1,251 1,310 2 Paper consumption – Aust and NZ 1,539 1,812 2,161 2,706 3,304 Branches with 24/7 capability (%) 36 35 33 29 27 (tonnes) ATMs 2,036 2,847 3,222 3,665 3,757 Carbon neutrality Maintained Maintained Maintained Maintained Maintained Smart ATMs (%) 69 54 47 44 37 Sustainable lending Change in customer complaints from prior 145 94 12 (18) (31) year (%) - Australia Climate change solutions attributable 10,059 9,263 9,113 6,979 6,193 fnancing – Aust and NZ ($millions) Change in customer complaints from prior 6 2 (16) (21) (7) year (%) - New Zealand Proportion of electricity generation 75 75 71 65 59 fnancing in renewables including hydro – Number of approved applications for 75,367 52,025 37,678 28,322 30,759 Aust and NZ (%) fnancial assistance from customers experiencing fnancial hardship Electricity generation portfolio emissions 0.25 0.26 0.28 0.36 0.38 intensity (tonnes CO2-e/MWh) Employees Finance assessed under the Equator 126 454 773 891 617 Total employees (full-time equivalent) 36,849 33,288 35,029 35,096 35,580 Principles – Group ($millions) Employee voluntary attrition (%) 7.4 10.3 10.0 9.6 10.6 Social Impact New starter retention (%) 85.8 84.5 84.1 84.7 85.5 Community investment excluding 153 130 128 164 148 commercial sponsorship ($millions) Employee Commitment Index (%) 73 72 73 76 - Community investment as a percentage of 3.58 1.33 1.09 1.42 1.39 Lost Time Injury Frequency Rate (LTIFR) 0.4 0.4 0.4 0.6 0.8 pre-tax profts – Group (%) Whistleblower reporting - number of new 184 278 289 344 209 Community investment as a percentage 3.21 1.32 1.10 1.41 1.32 concerns of pre-tax operating proft (cash earnings Women as percentage of the total 57 58 57 58 58 basis) workforce (%) Financial education (participants) 1,009,232 619,995 133,844 112,263 59,596 Women in leadership2 (%) 50 50 50 50 48 Supply chain Top suppliers assessed under the Westpac 100 98 100 21 - Responsible Sourcing Program (%) Spend with Indigenous Australian 5.9 4.2 4.5 2.8 1.7 suppliers – Australia ($millions)

1 An expanded set of performance metrics, including defnitions is available online in the 2020 Sustainability Datasheet. 2 Refer to defnition on page 21.

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

CLIMATE CHANGE

Climate Change Our climate change Position Statement and Strategy 2023 Action Plan. commitment FINANCED EMISSIONS In May, we released our Earlier this year, we conducted preliminary updated Climate Change analysis with Guidehouse to understand Since 2018, we have published disclosures in line with Position Statement and the sectoral profle of our Scope 3 the recommendations of the Task Force on Climate- 2023 Action Plan (Climate fnanced emissions2 .

We have committed to sourcing 100% of our global electricity consumption from renewable sources by 2025. 1 Bomen Solar Farm, Wagga Wagga is key to the first related Financial Disclosures (TCFD). Building on previous phase of this transition. Action Plan) . This analysis used publicly available disclosures, this section provides an update on how average emissions factors for Australian we further integrated management of climate change The updated Climate Action Plan was informed homes and generic emissions factors for impacts into our business and our performance against industry sectors3 . the recommendations of the TCFD. by scenario and fnanced emissions analysis, as As a result, we identifed utilities, mining This year saw further development in the climate change well as engagement with and agribusiness as the three key sectors agenda and increased interest from investors, regulators, customers, investors, industry comprising the majority of our fnanced customers and civil society in our approach to this issue. We are committed bodies, non-governmental emissions. To address this, we updated our to managing organisations and community lending criteria as set out in our Climate Notable developments during the period were: our business in representatives. Action Plan. — announcements by regulators in Australia, the UK and While these three sectors remain our alignment with the Westpac’s strategy is based on New Zealand to enhance requirements of banks to priority, we are also supporting other fve principles and three areas manage climate risks; Paris Agreement sectors in responding to climate change. of focus where we believe — guidance published by the UK’s Climate Financial Risk The property, manufacturing and and the need to climate change will most Forum on climate risk management, scenario analysis, transport sectors will become a focus impact our customers, business disclosure and innovation; and transition to a net as we work through our commitment to and stakeholders. develop Paris-aligned fnancing strategies. — release of a climate disclosure guide by the Climate zero emissions Measurement Standards Initiative for Australian banks, economy by 2050.” It also sets out areas where general insurers and asset owners. we will seek to improve our 1ST AUSTRALIAN BANK TO oversight, risk management We continued to monitor local regulators’ climate-related RELEASE A CLIMATE CHANGE and disclosure of climate agenda and engage in industry-wide developments through POSITION STATEMENT IN 2008 change risks and opportunities. the Australian Banking Association, Australian Sustainable Finance Initiative, Australian Business Roundtable for

Disaster Resilience and Safer Communities, Climate 1 Westpac’s Climate Change Position Statement and 2023 Action Plan does not apply to investments made where Measurement Standards Initiative and United Nations a Westpac Group entity is acting as a trustee (for example Responsible Super Entity licensee or Responsible Entity) or insurer. The governance and strategies for ESG risk in these portfolios (including climate change) are Environment Programme Finance Initiative. the responsibility of the relevant board and management of these entities. 2 Scope 3 fnanced emissions are an estimate of the greenhouse gas emissions arising from activities supported by Westpac’s lending activity (including Australian mortgage lending, SME and corporate loans). 3 This analysis uses the Partnership for Carbon Accounting Financials principles. For Australian Institutional and Business customers, the customer’s emissions are calculated as a portion of Westpac’s debt exposure to the customer as a percentage of the customer’s total debt and equity. For Australian mortgages, the customer’s emissions are assumed as 100% of the on-balance mortgages to Westpac until the mortgage is no longer in Westpac’s portfolio.

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 30 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

OUR CLIMATE STRATEGY

OUR APPROACH Westpac recognises that climate change We have five core principles that guide and inform our approach to climate change: is one of the most significant issues that will impact the long-term prosperity of the global economy and our way of life. As a financial institution, we believe the most NET constructive role we can play is to work with customers ZERO and communities to respond to the challenge of A transition to a net Economic growth Addressing climate Climate-related Collective action, climate change. zero emissions and emissions change creates risk is a financial transparency and economy is required reductions are opportunities risk disclosure matter by 2050 complementary goals

OUR CLIMATE ACTION PLAN

Helping customers and Provide Develop Paris-aligned Provide access to Support customers to Provide Ensure our financing Manage our communities respond $3.5 billion financing strategies products and services get back on their feet $15 billion of of the electricity sector thermal coal to climate change, we new lending and portfolio that can help customers after a natural new lending aligns with portfolio mining portfolio to climate targets for sectors reduce energy disaster by providing to climate targets of 0.23t in line with a aim to: change representing the consumption and hardship assistance, change CO2-e/MWh by 2025; commitment to solutions majority of our improve the resilience relief packages or solutions and 0.18t CO2-e/MWh reduce our by 2023. financed emissions. of their homes. community grants. by 2030. by 2030. exposure to zero by 2030. Manage our Improving the climate business in Source the Reduce Scope Reduce our alignment with the performance of our equivalent of 100% 1 and 2 Scope 3 – Supply Paris Agreement operations, our of our global emissions by Chain emissions and the need to transition to a net targets are to: electricity 85% by 2025 by 35% by 2030 consumption and 90% by from 2016 zero emissions through renewable 2030 from base year. economy by 2050. sources by 2025. 2016 base year.

Supporting initiatives Work with peer organisations, and policies to achieve industry groups and NGOs to the goals of the Paris collaborate and share information to help drive Agreement, we will: policy outcomes aligned to net zero emissions by 2050.

SHORT TERM MEDIUM TERM LONG TERM 0 TO 3 YEARS 3 TO 10 YEARS 10 TO 30 YEARS

To learn more about our climate strategy and targets, read our Climate Change Position Statement and 2023 Action Plan

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

During the year, the Board: Oversight — attended a training workshop led by industry experts to During the year, the following Board and management arrangements were discuss climate change risks, in place to oversee Westpac’s climate change agenda. investor expectations and directors’ duties;

BOARD AND EXECUTIVE THE SUSTAINABILITY COUNCIL Various committees Divisional — approved the Group’s fourth oversee different elements risk forums Climate Action Plan in April of the Group’s climate consider the 2020; and change strategy: climate change dimensions — noted a summary of relevant to their developments in climate — The Board has oversight Sponsored by the Group Executive, business activities The Environment change as part of its of the Group’s approach Customer and Corporate Relations Management Committee to and management and chaired by the Group Head of six-monthly sustainability oversees strategies and of climate change and Sustainability. strategy update. initiatives to reduce the receives twice-yearly Responsibility: It comprises senior leaders Chaired by GM Group’s environmental Corporate Services To enhance oversight of climate updates. from across the Group with responsibility footprint, particularly WIB ESG Risk change we: — Our Climate Action Plan for managing Westpac’s sustainability targets around energy Committee — aligned the Climate Change is approved by the Board agenda, including climate change. The and emissions. every three years. Council meets quarterly and has climate Risk Committee to be a sub- change as a standing agenda item. committee of the Group Credit — The Board Risk Committee Oversight: The Council reports to the Risk Committee to improve considers and approves Executive Team and Board through The Sustainable Finance Business oversight of climate-related Westpac’s Sustainability Committee coordinates Division twice-yearly updates. fnancial risks; Risk Management initiatives to achieve Reputation and Framework (which includes Westpac’s climate change Co-chaired by Head Sustainability — implemented climate change GROUP CREDIT RISK COMMITTEE of Sustainable climate change risks) every solutions targets. Finance and Head of Risk Forum updates to risk forums for all two years. Energy, Infrastructure and Resources major customer-facing divisions — Implementation and including Westpac Institutional management of Westpac’s Bank (WIB), Business Division, response to climate change Consumer The Climate Change Risk Consumer Division and is led by Group Executives. Sponsored by the Group Chief Risk Offcer Division Risk and chaired by the Group Chief Credit Committee oversees work Committee Westpac New Zealand Limited Offcer. to identify and manage (WNZL); and the potential impact on Responsibility: It leads the optimisation Chaired by Group credit exposures from — commenced work to enhance of credit risk-reward across the Group, Chief Credit Offcer climate-related transition climate change reporting to the within the context of the risk appetite and physical risks across Board, in line with our Climate determined by the Board. Climate change the Group. It reports to is a permanent agenda item. WNZL Risk Action Plan. the Group Credit Risk Committee Oversight: Group Credit Risk Committee Committee. reports quarterly to the Westpac Group Executive Risk Committee.

WESTPAC GROUP 2020 SUSTAINABILITY PERFORMANCE REPORT | 32 BUILDING A SUSTAINABLE FUTURE THE ISSUES THAT MATTER SUSTAINABILITY STRATEGY OTHER INFORMATION

2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

Managing Through our Climate Action If the identifed risks are not — initiating a review of CLIMATE CHANGE RISK COMMITTEE Plan, we set out criteria for within risk appetite then the our Sustainability Risk This year, we updated our Climate climate-related lending to emissions-intensive application of conditions to Management Framework, Change Risk Committee (CCRC) and climate-vulnerable sectors, manage the risks may be Risk Appetite Statements Terms of Reference to improve risks supporting customers that are considered, or the transaction and ESG Credit Policy to oversight of climate-related in, or reliant, on these sectors may be declined. integrate the criteria set fnancial risks. and who assess the fnancial out in our new Climate During the year, six customer Now chaired by the Group Chief Climate change risks are implications of climate change Action Plan; transactions were escalated to Credit Offcer and reporting to the managed within the Group’s on their business, including our WIB ESG Risk Committee — completing WNZL’s frst Group Credit Risk Committee, the risk management framework. how their strategies are likely to inform lending decisions climate risk disclosures CCRC’s objectives are to: We seek to understand the to perform under various on matters relating to climate in line with Task Force on — oversee identifcation, potential for climate-related forward-looking scenarios, change. Climate-related Financial quantifcation and management transition, physical and and demonstrate a rigorous litigation risks to impact Disclosures (TCFD) of climate-related risks; approach to governance, This year we improved climate- our business, in particular recommendations; and strategy setting, risk related risk management by: — integrate climate-related risks into — conducting a physical risk the possible impact on management and reporting. risk management frameworks, credit risk, regulatory and — establishing ‘Sustainability’ assessment of the impacts lending policies and lending reporting obligations, and We review our Sustainability as a Level 1 Risk in the Group of sea level rise on coastal guidelines; Risk Taxonomy to enhance our reputation. Risk Management Framework, fooding and erosion on — design, execute and integrate risk appetite measures and Group focus on material the WNZL residential climate scenario analysis and policies ensuring the criteria set sustainability risks including mortgage book. portfolio resilience testing; climate change; out in the Climate Action Plan — support climate change are integrated. — realigning ownership of disclosures and reporting; and the Sustainability Risk These criteria are applied — facilitate continuous improvement Management Framework at the portfolio, customer in climate-related risk from Group Sustainability to and transaction level management. Risk to improve integration where appropriate. with Group-wide risk The CCRC met three times during Escalation of climate- approaches; the year. related risks to relevant divisional risk committees occurs in accordance with the Sustainability Risk Management Framework.

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

Scenario analysis Transition risk – Australian business and institutional portfolio TRANSITION RISKS TO 2030 Since 2016, Westpac has The share (%) of our current Australian Business and Institutional portfolio exposed to sectors which AND 2050 IN OUR AUSTRALIAN 4 BUSINESS AND INSTITUTIONAL evolved its scenario analysis by 2050 may face relatively higher growth constraints under a 1.5-degrees transition scenario LENDING PORTFOLIO to inform its assessment of is provided below, along with related credit quality metrics. climate-related risks and opportunities over short, CREDIT QUALITY (BY % TOTAL COMMITTED EXPOSURE)5 medium and long-term % OF AUSTRALIAN horizons. The fndings from BUSINESS AND TENOR INSTITUTIONAL GOOD / (<5 YEARS BY our scenario analysis informed SECTOR PORTFOLIO STRONG SATISFACTORY WEAK6 % EXPOSURE) our current Climate Action 2030 Plan which outlines a range Petroleum and 0.9% 87.3% 5.4% 7.3% 96.8% of commitments to help coke products customers and communities Coal mining 0.2% 6.7% 74.3% 19.0% 99.1% respond to climate change. Oil and gas 1.0% 90.5% 6.5% 3.0% 78.2% We continue to assess1: extraction 1.9% 0.9% 1.5 DEGREES 2 DEGREES — the resilience of our Gas distribution 0.7% 97.4% 2.4% 0.2% 94.7% Australian Business and Air transport 0.5% 51.1% 25.0% 23.9% 65.9% Institutional lending2 to Around 1.9% of our current lending portfolio is exposed to sectors which by 2030 may face transition risks using 1.5 and relatively higher growth constraints under 2-degrees scenarios; and Physical risk – Australian mortgage portfolio a 1.5-degree scenario. Under a 2-degree scenario this is less than 1%. — the potential impact of The share (%) of our current Australian mortgage portfolio in postcodes which by 2050 are likely to climate-related physical risks be exposed to higher physical risks under a 4-degrees scenario is shown below, along with related on the Australian mortgage credit quality metrics. portfolio3 arising from global warming scenarios of both % AUSTRALIAN MORTGAGE DYNAMIC LVR (WEIGHTED 90+ DAY PORTFOLIO AVERAGE)7 >90% DLVR7 DELINQUENCIES (%) 2 and 4-degrees. 1.7% 61.5% 9.0% 1.8% This year we built on this 2050 work by analysing the credit characteristics of lending in Further data from our scenario analysis can be found in the Sustainable Lending and Investment section of our 2020 Sustainability Datasheet these areas.

1 Using transition and physical risk scenarios developed in 2018 and 2019. For further details see pages 118-120 of our 2019 Annual Report. 3.4% 2.8% 2 Excludes retail, sovereign and bank exposures. 1.5 DEGREES 2 DEGREES 3 Excludes RAMS and Equity Access. 4 Sectors whose medium (2030) and long-term (2050) performance under a scenario deviated by more than one standard deviation below average GDP growth, were classifed as ‘higher risk’. Around 3.4% of our current lending portfolio 5 For further information on the credit risk rating system, please see our 2020 Annual Report. is exposed to sectors which by 2050 may face 6 ‘Weak’ includes weak, default and non-performing credit risk rating categories. relatively higher growth constraints under 7 Dynamic LVR is the loan-to-value ratio taking into account the current loan balance, changes in security value, offset account balances and other loan adjustments. Property valuation source: a 1.5-degree scenario. Under a 2-degree CoreLogic. Weighted average LVR calculation considers size of outstanding balances. Further information on Westpac’s mortgage portfolio is in our Investor Discussion Pack. scenario this is 2.8%.

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

Further work Energy sector focus Oil and gas sector As part of our Climate Action Our focus on the energy sector recognises its critical role in the transition We have commenced work to Plan, further work underway to a low carbon economy and our role in supporting this change. Our further understand the role of We acknowledge includes: lending to the energy sector value chain1 can be broken down into the oil and gas in the transition to that our own — assessing climate-related following categories: a low carbon economy. In the commitments to physical risks on our frst phase of this work we will: Australian agribusiness — study how global oil and operate our business portfolio and how we can gas demand might perform in line with the continue to support our when carbon emissions customers to respond; Mining and Transport Electricity Oil and Gas are constrained in line goals of the Paris 2 Extraction Generation Refning with ‘well below’ 2-degree Agreement mean — updating our assessment of physical risk in our $2.02bn and 1.5-degree transition that we must clearly pathways; Australian mortgage book Oil and Gas LNG Terminal Gas set out expectations and how we can help — analyse the strategies Extraction $0.57bn $0.67bn for our customers.” customers become more required by the upstream climate-resilient; $2.22bn oil and gas sector to Black coal — integrating climate change Exploration align their businesses $0.27bn Distribution with emissions reduction considerations into $0.56bn and Retail our core stress-testing Brown coal pathways consistent with capability; and Coal Coal $0.03bn the scenarios; and Electricity — assess the approaches and — analysing lending across Metallur gical Rail and Gas2 the energy sector, including coal $0.28bn Liquid fuel technologies required to decarbonise. a ‘deep dive’ on the oil and Networks $0.21bn Port $0.12bn gas sector under Paris- $4.53bn Metallur gical In subsequent phases we will aligned scenarios. $0.44bn coal in Hydro Retailers seek to: diversifed $1.30bn $0.77bn — establish benchmarks that miners3 Other will allow us to assess our $0.03bn renewables Oil and Gas portfolio and customers’ climate performance relative Thermal coal $1.89bn $1.32bn to Paris-aligned pathways; $0.30bn and Uranium — develop Paris-aligned $0.03bn lending criteria, sustainable fnance solutions and 1 All fgures are Total Committed Exposures (TCE) as at 30 September 2020 for WIB only. portfolio targets to use these 2 Australia and New Zealand only. Customers with operations across several sectors are attributed across those activities based on business segment contribution. insights to support our client 3 Coal exposure within diversifed miners are apportioned by the percentage EBITDA contribution of engagement. coal in their latest annual fnancial statements. Thermal coal exposures within diversifed miners is immaterial.

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

CLIMATE CHANGE SOLUTIONS ELECTRICITY PORTFOLIO EMISSIONS INTENSITY1 Metrics and targets ($bn) (tCO2-e/MWh)

Our key metrics demonstrate our progress, and commitment to support the transition to a Paris- 2020 TARGET 0.9 0.86 aligned low carbon economy. Further metrics can 10.1 0.82 9.1 9.3 0.75 be found in our 2020 Sustainability Datasheet. 0.72

7.0 6.2

0.38 0.36 2020 TARGET LENDING TO ELECTRICITY GENERATION 0.28 0.26 AUSTRALIA AND NEW ZEALAND 0.25 (%)

80 SEP 16 SEP 17 SEP 18 SEP 19 SEP 20 FY16 FY17 FY18 FY19 FY20 70 WESTPAC NATIONAL ELECTRICITY MARKET(NEM) BENCHMARK 60 Increased lending to climate change solutions, taking total The emissions intensity of our lending to the Australian electricity 50 committed exposure to $10.1 billion, exceeding our target of generation sector remains well below the national benchmark 40 $10 billion by 2020. and ahead of our 2020 target of 0.30 tCO2-e/MWh. 30

20 OPERATIONAL EMISSIONS (SCOPE 1, 2, & 3)2 MINING EXPOSURE 10 (ktCO2-e) ($bn) 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 80 11.3 94 RENEWABLE NON-RENEWABLE 90 10.7 10.5 87 92 9.7 The share of renewables in our lending to the electricity 9.0 sector has remained at 75%. 157

134 128 6.1 121 5.7 5.5 5.3 5.4 108 5.0

3.9 3.8 3.6 2.8

1.4 0.9 0.8 0.6 0.5 1 Australia only. NEM benchmark is sourced from the Australian Energy Market Operator. 2016 2017 2018 2019 2020 TOTAL NON-FOSSIL FUEL OIL AND GAS COAL – THERMAL EXTRACTION AND METALURGICAL5 2 Data as at 30 June 2020, 2016 to 2019 Scope 3 fgures restated to SCOPE 1 & 2 SCOPE 33 refect methodology update in 2020. 2016 2017 2018 2019 2020 3 Scope 3 emissions increased between 2019 and 2020 due to the 4 inclusion of employee commute emissions from 2020. Reduced Scope 1 and 2 emissions by 27% since 2016 Our exposure to the mining sector is around 0.85% of Group TCE. exceeding our reduction target of 9% by 2020. 4 FY16 Scope 1 and 2 baseline: 147,620 tCO2-e. 5 Thermal coal mining is 58% of coal mining exposure (WIB only).

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

HUMAN RIGHTS

Our commitment to Governance and Our salient human rights issues oversight Identifying our were informed by: — our sustainability materiality human rights The Westpac Group salient human assessment including primary Board has oversight of our data sourced from our As a major fnancial institution, we understand that approach to human rights rights issues customers and employees; through our activities we may impact on human and our management of rights, whether in our different roles as a fnancial human rights risks. Our Salient human rights issues — issues raised through our grievance channels, including services provider, lender, purchaser of goods and Human Rights Action Plan is are those human rights at risk of the most severe negative trends in customer complaints services, employer, or supporter of our communities. reviewed by the Executive Team and approved by the impact through our activities and issues raised with our We recognise that we have both a responsibility to Board every three years. and business relationships. specialist customer teams; The Board Risk Committee respect human rights, and opportunities to positively Through our different roles — material human rights issues considers and approves impact human rights, across our value chain. (lender, employer, and others reviewed as part of our Westpac’s Sustainability Risk identifed in our Human Rights Environmental, Social and Management Framework In May, we published our third Human Rights Action Plan), we are connected Governance due diligence on (which includes human Position Statement and 2023 Action Plan with potential human rights institutional customers; and rights risks) every two years. (Human Rights Action Plan). It: impacts, and through our — listening to our employees, The implementation and actions, we could reduce, including through interviews management of Westpac’s exacerbate or facilitate and focus groups on inclusion approach to human rights is these impacts. and diversity. led by Group Executives. We seek to identify, prevent, This is important in a year where Various committees oversee mitigate and account for our a range of events, including the different elements of the adverse human rights impacts impacts of COVID-19 on our Sets out the Commits to 19 Aligns our approach Group’s Human Rights through a range of processes. employees and customers, the principles that guide specifc actions over more closely with Action Plan, including our approach the next three years global frameworks One way we do this is by commencement of the Modern divisional risk committees, and helps addressing how we and heightened determining or reviewing our Slavery Act 2018 (Cth), and the the Human Rights Working stakeholders identify will more deeply disclosure salient human rights issues at proceedings AUSTRAC brought the specifc policies, embed respect for expectations related Group, Modern Slavery least annually. against Westpac, underlined the frameworks and human rights into our to business and Steering Committee, human rights need to strengthen our ability to other documents business and our Stakeholder Advisory In reviewing and determining where those business identify human rights risks and principles are relationships, in line Council, Westpac Indigenous our salient human rights impacts and how we take action applied in practice with the UN Guiding Advisory Committee, Safer issues this year, we took steps in the event of, or address the risk Principles on Children, Safer Communities to improve the way that we of, adverse impacts on people. Business and Roundtable and Sustainability listen to feedback from those Human Rights Risk Management Working whose human rights might Group. be impacted.

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

Our Human Rights Action Plan outlines the policies and strategies in place to manage the salient TAKING ACTION ON MODERN human rights issues highlighted below. SLAVERY In response to the Modern Slavery Act In reviewing and IN OUR ROLE AS: SALIENT HUMAN RIGHTS 2018 (Cth), this year we have taken determining our steps to embed its requirements Financial services — Our services may be used to adversely impact on human rights. At-risk and across our operations and supply salient human provider vulnerable groups may be impacted by misuse of our services by others. chain. These include: For example, exploitation of our services for criminal purposes, abusive rights issues this — identifying ways to better address transaction descriptions, controlling another’s spend and limiting another’s modern slavery risk by uplifting year, we took access to funds. our policies, procedures, due steps to improve — Indigenous populations continue to face challenges with access to banking diligence processes and grievance the way that we through identifcation and verifcation issues and distance to services. mechanisms. For example, we listen to feedback — Information security and data privacy is an area requiring ongoing vigilance, shared our Speaking Up Policy with new risks posed by use of personal data by third parties and through the and ‘Speaking Up’ channels from those whose Open Banking regime. with key suppliers, letting them know they may use the Speak Up human rights might Lender — Labour rights and land-related human rights are an important area of focus, reporting system and independent with particular regard to vulnerable groups subject to marginalisation, be impacted.” Whistleblower hotline to report discrimination or exploitation. known or suspected modern — Our engagement in the Pacifc exposes us to different human rights regimes. slavery or human rights violations; Employer — Reducing work-related mental ill-health remains a key area of focus. — conducting a risk assessment of Employee wellbeing due to the impacts of the bushfres and COVID-19 Modern Slavery with our suppliers remains a priority. providing insight into risks across — Discrimination and harassment can impact our diverse workforce. our supply chain and lending activities; and Purchaser of goods — Unfair wages and working conditions for workers in our value chain also and services remains an area of focus, along with modern slavery risk in our supply — collaborating with industry, such chain (refer to Taking Action on Modern Slavery case study to right). We are as through the Australian Banking reviewing industries of concern for modern slavery risk as part of uplift to our Association including industry- Responsible Sourcing program. standard red fags and typologies in high risk industries. We plan to publish a frst statement under the new legislation by 31 March 2021. We published our Slavery and Human Traffcking Statement for the 2019 fnancial year, in accordance with the Modern Slavery Act 2015 (UK).

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2018-2020 SUSTAINABILITY STRATEGY AND PROGRESS | 5 YEAR NON-FINANCIAL SUMMARY | CLIMATE CHANGE | HUMAN RIGHTS

Managing human rights issues

This year, we took important steps to uplift our respect for human rights, in line with our Human Rights Action Plan: SUSTAINED COMMITMENT TO REDUCING THE HUMAN IMPACT OF FINANCIAL CRIME THEME HIGHLIGHTS/PROGRESS Access to ‘remedy’ is one of the key principles Financial services — Took action to deliver extra care and sensitivity in the way we serve and support customers guiding our approach and commitment to provider experiencing vulnerability. respecting human rights. Our Human Rights Action Plan notes that remedy may take many forms, — Progressed a signifcant multi-year program of work to address management of fnancial depending on how we identify our role in causing crime risks, including those associated with child exploitation. or contributing to human rights harm. — Commenced a series of actions and investments in Australia and across the Asia Pacifc region through our Safer Children, Safer Communities work program. More information on page 25. As a major bank, Westpac has an important role to play in assisting law enforcement agencies Lender — Updated our ESG Credit Risk Policy and reviewed our positions on certain sensitive sectors to to detect, deter and disrupt money laundering, include further guidance on human rights risks and further embed the principle of assessing ‘risk terrorism fnancing and other serious crimes. to people’, as well as risk to the business. In this regard, Westpac is required to monitor — Developed capability building and training on selected high-risk human rights issues. its customers and report suspicious matters to Employer — Updated our Inclusion and Diversity Policy and progressed our refresh of the Group’s Inclusion AUSTRAC. and Diversity Strategy. As part of the AUSTRAC proceedings, we admitted — Supported the psychological health and safety of our workforce, particularly in light of the that we should have implemented more robust impacts of bushfres and COVID-19. transaction monitoring for child exploitation risks — Commenced a refresh of our Indigenous Cultural Awareness training. earlier than we did. Since November 2019, we have taken a number of steps to enhance our transaction Purchaser of goods — Shared our ‘Speaking Up’ channels with key suppliers (refer to Taking Action on Modern Slavery monitoring in relation to child exploitation risks. and services case study). We also recognise we can play a role in addressing — Developed a risk-based approach for the Responsible Sourcing Program by expanding the the human impacts of fnancial crime. This year we scope of our assessment activities to suppliers in high risk categories for modern slavery. established the Safer Children, Safer Communities — Updated the Responsible Sourcing Code of Conduct, the assessment tool and the clause work program. The program emerged from the in our supplier master services agreements to provide coverage for modern slavery in our third pillar of Westpac’s Response Plan to the identifcation, assessment and monitoring processes. AUSTRAC proceedings. Through a series of actions — Trained sourcing and procurement teams to raise awareness of modern slavery and where this and investments that we intend to deliver in may exist in our supply chain. Australia and across the Asia Pacifc region over a three year period, we are taking action to reduce Embedding principles — Updated the Sustainability Risk Management Framework, to better embed the principle of the human impact of fnancial crime and make a assessing ‘risk to people’, as well as risk to the business. meaningful impact on child safety and protection. — Commenced work on our 2021–2023 Reconciliation Action Plan to better align with the UN Declaration on the Rights of Indigenous Peoples. More information on actions we have taken so far is

— Developed new risk appetite measures, to improve tracking, monitoring and reporting on available on page 25. human rights. — Reviewed our salient human rights issues.

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ASSURANCE REPORT | CONTACTS

Assurance report TABLE 1 SELECTED PERFORMANCE INDICATORS Customers • Change in number of customer complaints from prior year (%) — Australian Banking Independent Assurance Report to • Westpac’s self assessments/assertions — Wealth management and insurance the Board of Directors of Westpac of its fulfilment of its commitments Banking Corporation as a signatory of the Principles for — New Zealand Responsible Banking for the following • Complaints types (%) What we found areas: — Australian Banking Based on the work described below, — 2.1 Impact Analysis — New Zealand nothing has come to our attention that — 2.2 Target Setting — Wealth management and insurance causes us to believe that the selected — 2.3 Plans for Target Implementation • Complaints resolved within 5 days (%) -Australian Banking subject matter for the year ended 30 and Monitoring • N umber of customers provided with natural disaster relief September 2020 has not been prepared, packages in all material respects, in accordance — 2.4 Progress on Implementing Targets • N umber of approved applications for financial assistance from with the reporting criteria. customers experiencing hardship — 5.3 Governance Structure for What we did Implementation of the Principles Employees • Full Time Equivalent - Group total Westpac Banking Corporation — 6.1 Progress on Implementing the • Women in leadership – Group total (%) (‘Westpac’) engaged us to perform Principles for Responsible Banking; • Whistleblower reporting - total number of new concerns limited assurance on selected subject and • Percentage of basic salary - female to male (% by category) matter within the Westpac Group 2020 • Selected performance indicators Sustainable • Sector specific lending profiles (total committed exposure) Sustainability Performance Report, listed in Table 1 for the year ended lending and — Climate change solutions – Australia and New Zealand Westpac Group 2020 Sustainability 30 September 2020 (the ‘selected investment – total attributable financing ($m) Appendix and Westpac Group 2020 performance indicators’). Sustainability Datasheet (together, the – distribution by taxonomy type (%) ‘Westpac Group 2020 Sustainability The selected subject matter did not — Electricity Generation – Australia and New Zealand Performance Reporting’). include: – total attributable financing ($m) • data sets, statements, information, Selected subject matter – distribution by fuel type (%) systems or approaches other than the — Energy Sector Focus • Westpac’s assertion that the 2020 selected performance indicators and – Thermal coal ($b) Westpac Group Sustainability related disclosures; – Metallurgical coal ($b) Performance Reporting has been • forward looking statements; or prepared in line with: • any comparisons made against Suppliers • Total supply chain spend ($b) — The AA1000 AccountAbility historical data. • T op suppliers assessed under the Westpac Responsible Principles (2018) (‘AA1000’); and Sourcing Program (%) — The Global Reporting Initiatives’ GRI Social and • Community investment including commercial sponsorships ($m) Standards (2016) ( ‘GRI Standards’). economic impact • Financial education – number of participants (Group total)

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Reporting criteria Further, management is responsible for • reviewing a sample of supporting • reviewing a sample of relevant The selected subject matter has been establishing and maintaining internal documentation and conducting management information and assessed against the following criteria controls relevant to: interviews with management to assess documentation supporting the (the ‘reporting criteria’): • the preparation and presentation of whether the outputs of Westpac’s selected subject matter; materiality process fairly represent • Westpac’s own defnitions for each of the selected subject matter, such that • undertaking analytical procedures the material issues identifed by the selected performance indicators, it is free from material misstatement, over a sample of the selected stakeholders; contained in the ‘Glossary and whether due to fraud or error; performance indicators; and defnitions’ section of the Westpac • maintaining adequate records; and • reviewing the Westpac Group 2020 • reviewing the selected subject Group 2020 Sustainability Datasheet, • making estimates that are reasonable Sustainability Performance Reporting matter to assess whether it has been which will be presented at in the circumstances. to assess whether it meets the prepared as described in the reporting westpac.com.au/about-westpac/ disclosure requirements of AA1000 criteria. What our work involved sustainability/performance-reports/ and the GRI Standards; We believe that the information we have on 2 November 2020; We conducted our work in accordance • interviewing selected members obtained is suffcient and appropriate to • the Principles for Responsible Banking; with the Australian Standard on of the Westpac Executive team, provide a basis for our conclusion. Assurance Engagements (ASAE) 3000 business unit personnel and group • AA1000; and Assurance Engagements Other than level management to understand the Yours sincerely, • the GRI Standards. Audits or Reviews of Historical Financial key sustainability matters relevant to Responsibilities Information (Revised). Westpac; • making enquiries regarding PwC This Standard requires that we comply the processes and controls for Our responsibility is to express a with independence and ethical Liza Maimone capturing, collating and reporting the conclusion based on the work we requirements and plan the engagement Managing Partner performance data within the selected performed. so that it will be performed effectively. subject matter; Westpac Main procedures performed • reconciling the selected performance Westpac management (‘management’) The main procedures we performed were: indicators to underlying data sources; is responsible for the preparation and PricewaterhouseCoopers • obtaining an understanding of • testing the arithmetic accuracy of a presentation of the selected subject Melbourne matter in accordance with the reporting Westpac’s materiality process and sample of calculations of the selected criteria and is also responsible for assessing it against the AA1000 and performance indicators; 1 November 2020 the selection of methods used in the GRI Standards requirements; reporting criteria.

Our Independence and Quality Control Restriction on use We have complied with relevant ethical requirements related to assurance engagements, which are This report has been prepared in accordance with our engagement terms to assist Westpac in founded on fundamental principles of integrity, objectivity, professional competence and due care, reporting its sustainable development performance. We do not accept or assume responsibility confdentiality and professional behaviour. for the consequences of any reliance on this report for any other purpose or to any other person or The frm applies the Auditing Standard on Quality Control ASQC 1 Quality Control for Firms that organisation. Any reliance on this report by any third party is entirely at its own risk. Perform Audits and Reviews of Financial Reports and Other Financial Information, Other Assurance We consent to the inclusion of this report in the Westpac Group 2020 Sustainability Performance Engagements and Related Services Engagements and accordingly maintains a comprehensive system Report to assist Westpac’s members in assessing whether the directors have discharged their of quality control including documented policies and procedures regarding compliance with ethical responsibilities by commissioning an independent assurance report in connection with the selected requirements, professional standards and applicable legal and regulatory requirements. subject matter. Limited assurance Inherent limitations This engagement is aimed at obtaining limited assurance for our conclusions. As a limited assurance Inherent limitations exist in all assurance engagements due to the selective testing of the information engagement is restricted primarily to enquiries and analytical procedures and the work is substantially being examined. Therefore fraud, error or non-compliance may occur and not be detected. less detailed than that undertaken for a reasonable assurance engagement, the level of assurance is Additionally, non-fnancial data may be subject to more inherent limitations than fnancial data, lower than would be obtained in a reasonable assurance engagement. given both its nature and the methods used for determining, calculating and sampling or estimating such data.

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CONTACT INFORMATION

Westpac Group Sustainability Westpac Group Head Offce This annual Sustainability For any enquiries or if you have a 275 Kent Street, Sydney NSW Performance Report for the year human rights related concern, please 2000 Australia ending 30 September 2020 forms email [email protected] Tel: +61 2 9155 7713 part of Westpac Group’s Reporting International tel: +61 2 9155 7700 Suite for 2020. To fnd out more about Westpac westpac.com.au/westpacgroup Group’s sustainability approach, The reporting suite also includes policies and performance, or sign up Westpac Investor Relations the Annual Report, which includes to our newsletter, please visit the full fnancial statements westpac.com.au/sustainability [email protected] Tel: +61 2 8253 3143 for the year, Directors’ report, Twitter @westpacsustain westpac.com.au/investorcentre Remuneration report including executive remuneration, an integrated performance summary with expanded commentary and metrics related to our sustainable business practices, providing supporting information towards

Fix Full Year Presentation Recommendation 7.4 of the ASX Simplify Financial and Investor Perform Results Discussion Pack Corporate Governance Council’s Corporate Governance Principles

2020 2020 2020 FULL YEAR FINANCIAL RESULTS ANNUAL REPORT I NCORPORATING THE REQUIR EMENTS O F APPENDIX 4E FOR THE 12 MONTHS ENDED 30 SEPTEMBER 2020 WESTPAC BAN KING CO RPORATION WESTPAC BANK ING COR P ORATI ON Westpac Group’s 2020 Reporting Suite ABN 33 007 457 141 ABN 33 007 457 141 and Recommendations (Third Fi n ancial results throughout this presentation are in Au strali an dol lars and are bas ed on cash earning s unless otherwise stated. Refe r page X for def nition. Results pri ncipall y c over the 2H 2 0, 1H20 and 2H19 period s. Co mparison of 2H 2 0 vers u s 1H20 (unless o t h er wis e stated). Our annual reporting suite brings Fix . S im p lify . P erform. Fix . S im p lif y. P erform. Edition) and other detailed fnancial together the Group’s fnancial, non- performance reports. fnancial, risk and sustainability performance for the year. As well as the Sustainability Performance Report, it includes our Annual Report, FY20 Financial Results Announcement, Pillar 3 Corporate Report Governance FY20 Investor Discussion Pack, Pillar 3 Statement Report, and our Corporate Governance

2020 2020 INCORPORATING THE REQUIREMENTS OF APS330 WES TPAC BANKING CORPORATIO N WESTPAC BAN KING CO RPORATION Statement. Access the full suite online at A BN 33 007 457 141 ABN 33 007 457 141

westpac.com.au/2020annualreport Fix . S im p lif y. P erform. Fix . S im p lify . P erform.

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