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As one of Australia’s largest companies, Westpac Group can play a role in helping to create positive social, economic and environmental impact, for the benefit of all.

Westpac’s environmental, social and governance (ESG) dashboard summarises our non-financial performance and provides links to the source documents of published information and policies. All data as at 30 September 2019, unless otherwise stated. 
 

Through our Workforce Revolution strategy, we are focused on creating a future-ready workforce where our people are passionate about delivering great service experiences and take pride in doing the right thing for our customers and stakeholders. We measure and report progress on a number of indicators that reflect this focus. 

  FY17 FY18 FY19 Commentary Link to source document
Doing the right thing training (%) 97 97 97 Employees completing ‘Doing the right thing’ training 2019 Sustainability Performance Report (page 73)
Code of Conduct       Employees complete training on the Code of Conduct Westpac Group Code of Conduct (PDF 146KB)
Anti-Bribery and Corruption Policy       Employees complete training on the Anti-Bribery and Corruption Policy Westpac Anti-Bribery and Corruption Policy Principles
Total full-time equivalent employees 35,096 35,029 33,288   2019 Annual Report (page 130)
Women as percentage of total workforce (%) 58 57 58   2019 Annual Report (page 130)
Women in leadership (%)1 50 50 50   2019 Annual Report (page 130)
Age diversity published         2019 Sustainability Performance Report (page 71)
Supporting employees with accessibility requirements         2017-2020 Accessibility Action Plan
Supporting LGBTIQ employees      

First Australian organisation to sign the United Nations LGBTI Standards of Conduct²

Introduced 20 days paid leave for employees undergoing gender transition.

2019 Sustainability Performance Report (page 64)
Addressing wellbeing          2019 Sustainability Performance Report (page 26)
Aboriginal and Torres Strait Islander new-to-bank hires (%) 4.5 4.3 6.6   2019 Sustainability Performance Report (page 72)
Flexible workplace arrangements         Flexible ways of working
Employee training – average hours per employee 19.3 20.0 19.1   2019 Sustainability Performance Report (page 73)
Employee Commitment index (%)3 76 73 71   2019 Annual Report (page 130)
Speaking Up Policy         Speaking Up Policy (PDF 340KB)
Whistleblowing reporting – total number of new concerns 344 289 278   2019 Sustainability Performance Report (page 73)
Employee voluntary attrition (% of total staff) 9.6 10.0 10.3   2019 Annual Report (page 130)
New starter retention (% of new starters)4 84.7 84.1 84.5   2019 Annual Report (page 130)
Lost time injury frequency rate (LTIFR) 0.6 0.4 0.4   2019 Annual Report (page 130)
All Group Executives have signed the Banking and Finance Oath         Banking and Finance Oath

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 significant influence on business outcomes (direct reports to General Managers and their direct reports), large (3+) team people leaders three levels below General Manager, and Bank and Assistant Bank Managers.

2. https://www.unfe.org/wp-content/uploads/2017/09/UN-Standards-of-Conduct-Summary.pdf

3. New monthly employee survey conducted from 2017. Six month rolling average results reported.

4. Voluntary new starter retention over the new starter headcount for the 12-month period (permanent full time and part time employees).

As a major financial institution, we recognise we can influence social and environmental outcomes through our lending and investment decisions. This is a responsibility we take seriously and we have in place a number of frameworks, policies and positions that outline our approach to lending and investing. Westpac has also aligned reporting to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), in our 2019 Annual Report (pages 118-120, 127-128) and Sustainability Performance Report (page 28-37).

  FY17 FY18 FY19 Commentary Link to Source Document
Lending to climate change solutions ($bn)TCFD 7.0 9.1 9.3 Target: $10b by 2020 and $25bn by 2030 2019 Annual Report (page 130)
Facilitation of climate change solutions (e.g. green bonds) ($bn)TCFD - 1.7 3.6 Target: $3bn by 2020 2019 Annual Report (page 128)
Proportion of electricity generation financing in renewables including hydro – Aust and NZ (%)TCFD 65 71 75   2019 Annual Report (page 130)
Electricity generation portfolio emissions intensity (tCO₂-e/MWh)TCFD
0.36 0.28 0.26 Target: 0.30 (tCO₂-e/MWh) by 2020 2019 Annual Report (page 130)
Finance assessed under the Equator Principles – Group ($m)TCFD 891 773 454   2019 Annual Report (page 130)
Mining as a % of Group total committed exposure (%)TCFD 0.96 1.03 1.00   2019 Sustainability Performance Report (page 76)
Enhanced lending criteria to existing thermal coal sector customers (calorific value >5,700 kCal/kg)TCFD - Compliant Compliant   2019 Annual Report (page 128)
Enhanced lending to new thermal coal mines or projects (calorific value >6,300 kCal/kg)TCFD - Compliant Compliant   2019 Annual Report (page 128)
Current business lending exposed to sectors which by 2030 may experience higher risk in a transition to a 1.5 degree economy (%)TCFD1 - - 2.5 Australian Business and Institutional lending (excludes retail, sovereign, and bank exposures) 2019 Annual Report (page 128)
Current business lending exposed to sectors which by 2030 may experience higher risk in a transition to a 2 degree economy (%)TCFD1 - - 0.9 Australian Business and Institutional lending (excludes retail, sovereign, and bank exposures) 2019 Annual Report (page 128)
Current Australian mortgage portfolio in postcodes which by 2050 may be exposed to higher physical risks under a 4-degrees scenario (%)TCFD - 1.7 1.6 Excludes RAMS 2019 Annual Report (page 128)
Climate-related issues integrated into overall risk management         2019 Annual Report (page 118-120)
Board and Executive oversight of climate change issues      

Board oversight: including Six-monthly updates

Executive oversight: including Quarterly updates through Sustainability Council

2019 Annual Report (page 127)

1. Updated transition risk methodology applied from 1H19

Direct environmental performance is measured against a number of indicators. These include greenhouse gas (GHG) emissions, energy use, paper consumption, waste and recycling, water use, and business travel. 

  FY17 FY18 FY19 Commentary Link to Source Document
Total Scope 1 and 2 emissions (tCO2-e)1 134,237 128,339 121,168 Target: 9% reduction from 2016 to 2020, 34% by 2030 2019 Annual Report (page 130)
Total Scope 3 emissions (tCO2-e)1 68,830 65,783 62,242   2019 Annual Report (page 130)
Paper consumption – Aust and NZ (tonnes)1 2,706 2,161 1,812   2019 Annual Report (page 130)
Energy consumption (GJ)1 734,788 710,526 677,105   2019 Sustainability Performance Report (page 81)
Waste recycled (Tonnes)1 3,052 3,355 3,993 Target: 80% diversion of waste from landfill in commercial workplaces from 2016 to 2020 2019 Sustainability Performance Report (page 82)
Water consumption (kL)1 448,947 377,723 363,249   2019 Sustainability Performance Report (page 83)
Carbon neutrality across our business1         Westpac Banking Corporation Public Disclosure Statement (PDF 2MB)

1. Data reflects a 1 July – 30 June reporting year.

Recognising that the actions of our suppliers are important to our sustainability performance, our responsible sourcing approach provides a strong foundation for us to manage risks and opportunities in our supply chain. This is achieved through clear standards of ethical, social and environmental business practices for suppliers, outlined in our Responsible Sourcing Code of Conduct. Our Supplier Inclusion and Diversity Policy formalises our aspiration to increase the proportion of products and services we buy from businesses that are driven by a social or environmental mission, or that support people who have traditionally been financially excluded. To track the sustainability performance of our supply chain, we measure and report on a number of indicators. 

  FY17 FY18 FY19 Commentary Link to Source Document
Responsible Sourcing Code of Conduct in place         Westpac Group Responsible Sourcing Code of Conduct (PDF 309KB)
Number of suppliers assessed against Responsible Sourcing Code of Conduct 31 100 98   2019 Annual Report (page 130)
Spend with indigenous Australian suppliers - Australia ($m)1 2.8 3.8 3.6 Targeting $10 million spend with Indigenous suppliers by 2020, and joined the ‘Raising the Bar’ initiative, committing to spend $21 million with Indigenous businesses by 2024. 2019 Annual Report (page 130)
ESG objectives included in our supply chain management strategy         Westpac Group Responsible Sourcing Code of Conduct (PDF 309KB)
Publicly available supplier code of conduct and supply chain management approach         Westpac Group Responsible Sourcing Code of Conduct (PDF 309KB)
Slavery and Human Trafficking statement2     -   2018 Slavery and Human Trafficking Statement (PDF 224KB)

1. Annual spend with businesses that are 51% or more owned and operated by an Aboriginal or Torres Strait Islander person and certified with a relevant member organisation.

2. Slavery and Human Trafficking Statement will be released prior to 30 March 2020.

We measure and report the economic value we generate as well as our overall community investment, including charitable giving through donations, grants, volunteering, scholarships and the financial education we provide. We also continue to report social impact measures that demonstrate the value being generated for our customers and communities through our initiatives, beyond dollars or time. 

 

  FY17 FY18 FY19 Commentary Link to Source Document
Community investment excluding commercial sponsorships ($m) 164 128 130   2019 Annual Report (page 130)
Community investment as a % of pre-tax profits – Group (%) 1.42 1.09 1.33 Target to maintain >1% (2017-2020) 2019 Annual Report (page 130)
Community investment as a % of pre-tax operating profit (cash earnings basis) 1.41 1.10 1.32   2019 Annual Report (page 130)
Financial education (participants)1 112,263 133,844 619,995   2019 Annual Report (page 130)
Number of approved applications for financial assistance from customers experiencing financial hardship 28,322 37,678 52,025   2019 Sustainability Performance Report (page 88)

1. Total number of interactions by employees, customers and general public with financial education materials offered by the Westpac Group during the year, delivered through face to face and online platforms. Uplift in 2019 number of participants driven by the inclusion of our Life Moments and Help for your Business Education pages

Westpac's board comprises directors with a diverse range of financial and other skills, experience and knowledge. Apart from the CEO, all directors are non-executive and independent.

 

  FY17 FY18 FY19 Commentary Link to Source Document
Independent Chair       Lindsay Maxsted, Chair 2019 Corporate Governance Statement (page 4)
Independent Chair of Remuneration Committee       Craig Dunn appointed Chair in 2016 2019 Corporate Governance Statement (page 4)
Number of independent directors  8/9  8/9  10/11 All directors independent with the exception of CEO 2019 Corporate Governance Statement (page 4)
Independence definition published         Westpac independence definition (PDF 163KB)
Women on board 22% 22% 36%   2019 Corporate Governance Statement (page 6)
Diversity incorporated in nomination policy       Not restricted to specific forms of diversity Board Nominations Committee Charter (PDF 298KB)
Board skills matrix published         2019 Corporate Governance Statement (page 6)
Clear board tenure policy         Westpac Group Board Renewal Policy (PDF 31KB)
Average board tenure (years) 4 5 4 Rounded to nearest full year 2019 Corporate Governance Statement (page 6)
Board committees, including responsibilities and membership, outlined         2019 Corporate Governance Statement  (PDF 2MB)
Board performance assessed       Board commissions an annual performance review by an independent consultant 2019 Corporate Governance Statement (page 8)
Board performance assessment published       Annual independent review is not published. Results of the performance review are used to recommend directors for election each year 2019 Corporate Governance Statement (page 8)

Westpac’s remuneration strategy is designed to attract and retain talented employees by rewarding them for achieving high performance and delivering superior long term results for our customers and shareholders, while adhering to sound risk management and governance principles.

  FY17 FY18 FY19 Commentary Link to Source Document
Remuneration policy outlined         2019 Annual Report (pages 44-72)
Introductory letter to remuneration report published         2019 Annual Report (pages 44-47)
Statutory remuneration tables published         2019 Annual Report (pages 66-72)
Actual remuneration received tables published         2019 Annual Report (pages 54-55)
Details of outright and unvested shares held by board and management outlined         2019 Annual Report (pages 69-71)
Minimum shareholding requirements for board and management outlined         2019 Annual Report (pages 63-65)
% of board and management meeting, or on track to meet, minimum shareholding requirements 100% 100% 100%   2019 Annual Report (pages 63-65)
CEO performance against objectives outlined         2019 Annual Report (pages 52-58)
CEO remuneration at risk outlined         2019 Annual Report (page 51)
Malus provision in place         2019 Annual Report (pages 59 and 61)
Claw-back provision in place1         2019 Annual Report (pages 59 and 61)
Ratio of highest paid to median salary published         2019 Sustainability Performance Report (page 74)
Gender pay ratios published         2019 Sustainability Performance Report (page 72)
% of employees covered by collective bargaining agreements published         2019 Sustainability Performance Report (page 74)

1. Clawback will apply, to the extent legally permissible and practicable, to deferred variable remuneration awarded in respect of performance periods commencing on or after 1 October 2019 for up to seven years from the date of grant. Clawback may occur in circumstances of serious or gross misconduct, fraud, bribery, severe reputational damage, and any other deliberate, reckless or unlawful conduct that may have a serious adverse impact on Westpac, its customers or its people which has resulted in dismissal or the Board considers at its discretion would have justified the dismissal of the relevant executive or where otherwise required by law. It is the Board’s current intention that clawback will only be considered for relevant conduct that occurred on or after 1 October 2019.

Effective risk management across the entire Group is critical to achieving our vision to be one of the world’s great service companies, helping our customers, communities and people to prosper and grow.

  FY17 FY18 FY19 Commentary Link to Source Document
Board risk and compliance committee         2019 Corporate Governance Statement (page 19)
Group Executive risk committee         2019 Corporate Governance Statement (page 20)
Independent audit function         2019 Corporate Governance Statement (page 21)
Key risks outlined         2019 Annual Report (pages 102-120)
Sustainability Council       Comprises senior leaders from across the business and meets at least four times a year with the explicit responsibility for managing Westpac’s sustainability agenda 2019 Sustainability Performance Report (page 52)
Stakeholder Advisory Council       Forum for a range of external stakeholders to provide important insights and feedback to our executives and sustainability leaders on Westpac’s approach to sustainability 2019 Sustainability Performance Report (page 54)
Sustainability materiality analysis published in annual report         2019 Annual Report (page 122)

Westpac takes its tax obligations seriously and is committed to paying the right amount of tax in all the jurisdictions where it operates. 

  FY17 FY18 FY19 Commentary Link to Source Document
Tax transparency report published         Westpac Group 2019 Tax Transparency Report (PDF 466KB)
Effective tax rate 30.55% 30.96% 30.35%   2019 Annual Report (page 86)

Westpac does not make cash donations to political parties. Political expenditure, as set out below, relates to participation in legitimate political activities where they were assessed to be of direct business relevance to Westpac. Such activities include business observer programs attached to annual party conferences, policy dialogue forums and other political functions, such as speeches and events with industry participants.

  FY17 FY18 FY19 Commentary Link to Source Document
Political expenditure published         2019 Annual Report (page 42)
Political expenditure – Australia $162,726 $189,195 $166,650   2019 Annual Report (page 42)
Political expenditure – New Zealand ($NZ) $2,756 $19,150 $20,170   2019 Annual Report (page 42)

Westpac supports the United Nations Sustainable Development Goals and their agenda to end extreme poverty, fight inequality and injustice, and protect the planet. Our Sustainability Strategy outlines our priority goals, identified by their importance to our stakeholders and business.

Our 10 priority goals

 

  • Goal 4: Quality education
  • Goal 5: Gender equality
  • Goal 8: Decent work and economic growth
  • Goal 9: Industry innovation and infrastructure
  • Goal 10: Reduced inequalities
  • Goal 11: Sustainable cities and communities
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action
  • Goal 16: Peace, justice and strong institutions
  • Goal 17: Partnership for the goals


 

Helping people make better financial decisions

We believe in creating a fairer, more inclusive and confident society by helping people understand money.

Our aim is to help customers track and grow their wealth so they will feel more confident with financial decisions no matter their situation.

Initiatives include:

  • Delivering products and services that help customers make better financial decisions
  • Implementing financial health check programs
  • Delivering financial capability training programs and resources
  • Providing additional insights to business customers.

Helping people by being there when it matters most to them

We understand that life has its tough moments, and vulnerability is something that can affect anyone at any time.

We want to be by our customers’ side and help more people as they go through major life events.

Initiatives include:

  • Providing targeted support to help customers recover from financial hardship
  • Making support available to customers experiencing significant life events such as the death of someone close to them, divorce or the birth of a child
  • Providing support to communities impacted by a disaster or by major changes in local economies
  • Supporting business customers through transitions, such as family succession.

Helping people create a prosperous nation

Our world is changing at an unprecedented rate, affecting how we all live and work.

We want to help more people gain the skills that will be needed in the future, and accelerate how we identify and solve the biggest issues impacting Australia and the world.

Initiatives include:

  • Providing our employees with access to learning opportunities to help build the skills needed for the workforce of the future
  • Investing $50 million by 2020 to back the people and ideas shaping Australia
  • Backing the growth of climate change and housing affordability solutions.

A culture of doing the right thing

We are committed to building a culture of care, inclusiveness and high integrity – where it’s expected that all our people demonstrate the values of our company and speak up if something isn’t right.

We believe in doing the right thing by our customers, communities and people – grounded in transparency and responsiveness to the concerns of our customers and the wider community

Fundamentals

We are committed to continuing to lead on the fundamentals: the sustainability policies, action plans and frameworks. We are also continuing to report on additional metrics that are expected of a bank committed to sustainable business practices.

Helping people make better financial decisions

  • Delivered financial capability communications for different demographic segments including for young Australians, in partnership with 26 universities and TAFE NSW (900,000 interactions); women, via Ruby Connection (724,000 interactions); and older Australians, via Starts at 60 (over 3 million interactions)
  • Continued to offer financial health check programs for superannuation members, including the digital Wealth Review and My Wellbeing online portal

Helping people by being there when it matters most to them

  • Helped customers experiencing financial hardship, issuing over 52,000 financial assistance packages during the year
  • Extended the $100 million drought relief fund launched last year to support Australian farmers
  • Assisted more than 900 customers since launching the Priority Assist 1800 telephone line to support customers experiencing domestic and family violence and financial abuse
  • Supported over 3,000 Indigenous Australians through a dedicated customer care team established this year to support remote Indigenous communities

Helping people create a prosperous nation

  • Awarded $4.3 million in educational scholarships, through Westpac Scholars Trust, to the next 102 Westpac Scholars, bringing the total cohort to 416
  • Helped to create over 700 jobs1 for vulnerable Australians through Westpac Foundation job creation grants to social enterprises
  • Increased lending to climate change solutions, taking total committed exposure to $9.3 billion, progressing towards our 2020 target of $10 billion

A culture of doing the right thing

  • Maintained 50% women in leadership roles2
  • 36% women on the Westpac Board
  • 161 new-to-bank Aboriginal or Torres Strait Islander hires
  • Established a new complaints strategy centred on customer connection, service excellence, priority support for vulnerable customers and root cause and complaints prevention
  • Reduced non-external dispute resolution average time to close for complaints from 13 days to seven days
  • Commenced tracking customer satisfaction of the complaint resolution experience

The fundamentals - sustainability policies, action plans and frameworks

  • Joined the ‘Raising the Bar’ initiative, committing to spend $21 million with Indigenous businesses by 2024
  • Launched the world’s first Green Tailored Deposit to be certified by internationally recognised Climate Bonds Initiative (CBI)
  • Committed to source 100% of global electricity consumption through renewable energy sources by 2025 and joined RE100

1. All results as at 30 September 2019 except for jobs created through the Westpac Foundation job creation grants to social enterprises which are as at 30 June 2019. Refer to www.westpac.com.au/sustainability for glossary of terms and conditions.

2. Proportion of women (permanent and maximum term) in leadership roles across the Group. It includes the CEO, Group Executives, General Managers, senior leaders with significant influence on business outcomes (direct reports to General Managers and their direct reports), large (3+) team people leaders three levels below General Manager, and Bank and Assistant Bank Managers.

Principles for Responsible Banking

Founding bank and first to report alignment with the draft Principles

Principles for Responsible Investment

Signatory (2007)

UN Sustainable Development Goals

CEO Statement of Commitment (2015)

Paris Climate Agreement

Supporter (2015)

The Equator Principles

Founding Adopter, First Australian Bank (2003)

UN Environment Program Finance Initiative

Founding Member (1991)

Financial Stability Board’s Task Force on Climate-related Financial Disclosures

Align with and support

Climate Action 100+

Signatory (2018)

RE100, an initiative of the Climate Group in partnership with the CDP

Member (2019)

Commitment to United Nations Global Compact

Signatory (2002), Global Compact Network Australia Founding Member

Global Investor Coalition Statement on Climate Change

Signatory (2014)

The Montreal Carbon Pledge

Signatory (2014)

Climate Bonds Initiative

Partner

Carbon Markets Institute

Corporate Member

We Mean Business Coalition

Signatory (2015)

Carbon Neutral Certification

Since 2012

Social Traders

(for social enterprises) Member of Connect (2016)

Supply Nation

(for Indigenous owned businesses) Founding member (2016)

WeConnect International

(for women owned businesses) (2014)

United Nations Tobacco-Free Finance pledge

Founding signatory (2018)

Our Industry awards, Sustainability indices, and Inclusion & diversity recognition can be found on our Ratings and Recognition page.