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13 December 2007

Westpac report marks a decade of leadership on sustainability

Westpac today marked a decade of focus and leadership on sustainable business practice with the release of its 2007 Stakeholder Impact Report.

The report, the final one from outgoing Chief Executive David Morgan, highlights the imperatives of dealing with climate change, consumer debt and responsible lending, workplace diversity, and building social capital.

"Ten years into our sustainability journey, the results are compelling," Dr Morgan said.

"Westpac has delivered 18 per cent compound annual growth in shareholder returns; cut our greenhouse gas emissions by 45 per cent, increased the percentage of women in management roles from 25 per cent in 1998 to 42 per cent today; and materially enhanced Westpac's reputation across the board.

"The business case today for sustainability is even more compelling. Climate change has galvanised debate and public opinion has shifted to the point where the interests of shareholders must be considered alongside the interests of other stakeholders. It is nonsense to think you can put walls around a corporation or that narrow self interest is sustainable.

"Business leaders can no longer ignore the full spectrum of environmental, social and governance risks and opportunities impacting their long-term performance."

The 2007 report sets out Westpac's environmental, social and governance (ESG) performance across more than 110 indicators, and includes Westpac's response to issues that are material to employees, customers, shareholders and the wider community.

Highlights from this year's report include:

• Equal top rating (86%) for global banks in 2007/08 Dow Jones Sustainability Index, and the global sector leader from 2002 to 2006;
• The only bank and one of just four FT 500 companies globally to achieve 100 point, AAA rating on the Climate Disclosure Leadership Index;
• Ongoing reductions in greenhouse gas emissions - Westpac has reduced its total emissions by 45% since 1996;
• Renewed commitment to responsible lending with the launch of Westpac's Principles for Responsible Lending and the new Westpac Assist service;
• Made approximately $52m in total community contributions group-wide, equivalent to 1.4% of pre-tax profits; and
• Celebrated a decade of commitment to the Indigenous Cape York Partnership following the extension of our partnership to 2010.

• An ongoing commitment to address Climate Change impacts including greenhouse gas emission reductions;
• Contributing to the development of emerging regulatory frameworks for greenhouse gas reporting, energy efficiency and emissions trading;
• Enhancing customer performance metrics including loyalty and advocacy measures;
• Implementing 500 Talking ATMS by December 2008;
• Reducing the Lost Time Injury Frequency Rate by a further 10%;
• Continuing to lead on workplace diversity including the attraction and retention of women throughout the organisation.