Westpac New Zealand Limited Sustainability Review 2013 2 13 Westpac New Zealand Limited Sustainability Review 2013 1
As a financial institution, we are focused on anticipating the most pressing issues in New Zealand, and applying our skills and experience to make a meaningful difference. At Westpac New Zealand Limited ( Westpac ) sustainable business is about being around for the long term. As a company with sustainability as a core value, we strive to employ good business practices, including product and risk management, caring for our people and customers, helping grow communities and minimising our impact on the environment. We are focused on anticipating the most pressing issues in New Zealand and applying our skills and experience as a financial institution to make a meaningful difference. Highlights of 2013 include: Launching Solar Shed with Meridian Energy, helping to give farmers easier access to solar energy to help them save thousands on their power bills¹; Baselining our lending to the New Zealand clean technology sector at over $1bn, a figure we are aiming to grow; Launching a comprehensive digital strategy to help us have more meaningful conversations with our customers. This strategy has seen us develop Cash Critter a family-friendly app to teach kids about setting goals and saving more, and partner with SeniorNet to bring older adults and technology together to build their confidence in banking through education seminars; Becoming carbon neutral by reducing our total business carbon emissions and then offsetting remaining emissions through the purchase of New Zealand Units 2 primarily forestry; Launching the Women of Influence awards with Fairfax Media to identify the 50 most inspiring women in New Zealand; Raising $1.55 million during the 2013 Westpac Rescue Chopper Appeal; and Saving more than 1,800 lives through Westpac people making blood donations to NZ Blood. The past year however has not been without challenges, particularly in the housing market. In response to rising house prices, the Reserve Bank of New Zealand introduced restrictions on high loan-to-value-ratio (LVR) lending. Our focus continues to be on helping customers on their journey to home ownership, including participating in the Government s Welcome Home Loan scheme. Help is what we do at Westpac. We are committed to supporting local communities, ensuring our organisation reflects the diversity of our customer base, caring for the environment, and listening to our customers. We believe this approach will help grow a more sustainable New Zealand. Peter Clare Chief Executive, Westpac New Zealand Limited 1 For more information on Solar Shed, and terms and conditions, visit http://www.westpac.co.nz/agribusiness/agri-specialists/solar-shed-initiative/ 2 The New Zealand Units ( NZUs ) are created by the New Zealand Government under the Climate Change Response Act (CCRA) and are either forestry NZUs or Permanent Forest Sink Initiative Assigned Amount Units ( PFSI AAUs ) or from an allocation made to industry being Emissions Intensive Trade Exposed NZUs (non-exportable). Total business carbon emissions are audited by KPMG. For more detail, visit http://www.westpac.com.au/about-westpac/sustainability-and-community/reporting-our-performance/stakeholder-impact-reports/ 2
Part of New Zealand for more than 150 years. Our tomorrow: Westpac s 2013-15 Sustainable Business Strategy Westpac offers a full range of banking, insurance and wealth services for 1.3 million personal, institutional, business and agribusiness customers. We operate 208 branches, online banking and 613 talking ATMs across New Zealand. Our team of more than 4,500 people take pride in helping our customers achieve their dreams delivering our promise of help is what we do for our customers and communities. This brief review outlines our 2013-15 sustainable business strategy and summarises our progress in 2013. To find out more about sustainability at Westpac visit www.westpac.co.nz Help is what we do Grow a sustainable New Zealand by future-proofing our business and tackling national issues facing our economy, society and environment. Providing economic solutions to environmental challenges Develop financial solutions that help grow the CleanTech sector. Responding to demographic and cultural change Ensure we reflect our national demographic make-up and help people work longer should they wish to. Contributing to our communities Support our communities by acting locally, inspiring leadership and providing help when it s needed most. Creating sustainable financial futures Support financial education for all New Zealanders and help people gain access to social and affordable housing. Sustainably managing our operations Demonstrate our leadership credentials by continuing to embed sustainability within our operations and supply chain. 3
Creating sustainable financial futures Providing New Zealanders with access to programmes that strengthen financial education and help meet their life and retirement goals. As a financial institution, Westpac recognises its role in helping New Zealanders better understand financial matters. In 2013 we launched the first ever longitudinal study into the financial knowledge and behaviour of 18 to 22 year olds. The study, conducted by the Financial Education and Research Centre (Fin-Ed Centre), a joint partnership between Westpac and Massey University, revealed New Zealand has low levels of financial knowledge compared to other countries in this particular age group. Parents are the key source of financial education, but their knowledge may be lacking. The study will be repeated every five years for the next 20 years to understand people s needs for financial knowledge at different life stages. Westpac s Managing Your Money programme helps New Zealanders develop effective money management skills and has reached more than 72,000 people since 2009. Materials are tailored for groups including Maori and small and medium enterprises. In 2013 we launched a partnership with SeniorNet, a non-profit organisation bringing older New Zealanders and technology together in a friendly and stress-free way, to help build Westpac customer confidence in banking through education seminars in local communities. As a nation we live beyond our means. The Fin-Ed Centre wants to know what it will take for people to make a shift from a living for today mentality to enjoying today but keeping tomorrow in sight by planning and saving. Our aim is to understand the key triggers in young peoples lives that may influence financial behaviours and at what life stages they are more vulnerable than others to make poor decisions. Dr Pushpa Wood Director, Fin-Ed Centre, Massey University Responding to the big shifts in demographic and cultural change Ensuring the diversity of our workforce enables us to respond to the changing gender, cultural and generational makeup of New Zealand. Alongside age, culture, accessability, flexibility and LGBTI (lesbian, gay, bisexual, transgender and intersex), gender is one of Westpac s six diversity priorities. At Westpac we have long supported initiatives that develop women in leadership. This includes supporting the Global Women and Dress for Success organisations and in 2013 forming the Westpac Leaders Fellowship to support three aspiring women leaders outside Westpac over the next three years to attend the New Zealand Leadership Institute s landmark Mindset Programme. Supreme winner of the Women of Influence awards, Therese Walsh, pictured right with judge Lynley Belton. The Women of Influence awards were launched by Westpac and Fairfax in 2013 to recognise women who have demonstrated outstanding achievements and used their influence to make a positive impact on New Zealand society. Therese Walsh stood out because of her enormous yet understated influence on New Zealand s society. She continues to break ground as current head of the Cricket World Cup 2015 campaign, and was instrumental in the success of the 2011 Rugby World Cup campaign in her role as Chief Operating Officer. Photo: Jason Creaghan, Fairfax Media. 4
Westpac New Zealand Limited Sustainability Review 2013 Providing economic solutions to environmental challenges We are committed to helping our customers to prosper and manage environmental outcomes and growing the New Zealand CleanTech sector. Growth of the clean technology and environmental services ( CleanTech ) sector sits at the heart of addressing many of the environmental challenges and resource constraints facing the world. As a financial institution, we can play an important part in enabling New Zealand CleanTech businesses to succeed locally and internationally. Our recent partnership with Meridian Energy introduced Solar Shed, a low-cost solar panel solution for farmers that aims to pay for itself in seven years and has the potential to generate cost savings of over $3,000 per year over its 25-year lifetime. 1 Cash Critter a family-friendly app launched by Westpac in 2013 to teach kids about setting goals and saving money. New Zealand does not have enough women leaders at the table ; we are under-represented in terms of influence where it matters. We all know that women make an invaluable contribution to New Zealand s success and while attitudes are changing there is still work to be done. The Women of Influence awards highlight role models for future generations. Lynley Belton 2013 Women of Influence Judge The number of customers who have installed grid connected (sending electricity back) solar systems has increased rapidly as solar panel prices have fallen. For more than 1,000 Meridian customers it makes economic and environmental sense. Solar Shed allows customers to farm their own electricity, and have a positive impact on their energy costs. Alan McCauley Meridian Energy, General Manager Retail One of the first to pilot the solar panels is the Westpac Taranaki Agricultural Research Station in Hawera. It will provide ongoing assessment and monitoring of data of the solar panels operation and cost savings. 5
Contributing to our communities Supporting our communities by acting locally, inspiring leadership and by providing help when it s needed most. Westpac has a long history of working with New Zealand community organisations and has invested more than $5 million in New Zealand communities in 2013, including more than $500,000 of volunteer time. We are continuing our 30 plus years partnership with Rescue Helicopters, pledging to help raise another $3 million between 2013 and 2015. Through our partnership with NZ Blood Service we are encouraging our people to save lives by donating blood, with the aim to save one life for each of our employees by 2015. We also recognise that leadership plays a key role in creating long term success in business, communities and the environment. Westpac is a foundation partner of the Sir Peter Blake Trust and during Leadership Week supports a range of activities internally and in schools, to celebrate and develop leadership. Each year, the prestigious Westpac Halberg Awards celebrate New Zealand s sporting achievements and are a key fundraiser for the Halberg Disability Sport Foundation to enhance the lives of physically disabled young people, their families and communities, by enabling them to participate in sport. The Westpac Business Excellence Awards give small and medium size businesses the opportunity to benchmark their success against other local businesses, outside of their own industries. Rescue Helicopters operate a vital 24/7 service. In 2013 Westpac helped raise more than $1.5 million for the Rescue Helicopters. Westpac Ambassadors, Richie McCaw (below) and Sir John Kirwan (right) went head to head in the North vs. South Chopper Challenge. Thanks to the generosity of the public, they raised $32,389 for Rescue Helicopters throughout New Zealand. 6
Westpac New Zealand Limited Sustainability Review 2013 Committed to Canterbury Following the earthquake in 2011, Westpac committed to the Christchurch rebuild, supporting the community and helping customers when they needed it most through the establishment of the Canterbury Care Fund. This has supported dozens of families and community groups during the earthquake recovery from funding to provide convection heaters, to rebuilding sports clubrooms. Home loan applications for repairs or replacement of earthquake damaged properties in the TC3 zone² were complex to assess, which was frustrating for our customers. In response, we developed Beagle a database that matches geotechnical data with information from insurance companies. This initiative enables quicker lending decisions helping to provide certainty sooner to buyers wanting to purchase. With partners, we continue to provide free temporary space in the Westpac Business and Community Hub for Government organisations, local businesses and community groups who lost premises in the original quake. Westpac was the first bank to announce the return of our corporate offices to the CBD committing to tenant a 5 Green Star premises as part of its support of Legacy a campaign established by the New Zealand Green Building Council to help deliver greener, healthier and more resilient buildings to create a lasting, positive legacy for Christchurch. 2 Land in the Canterbury green zone has been divided into three technical categories TC1, TC2 and TC3. In category TC3 moderate to significant land damage from liquefaction is possible in future large earthquakes and site-specific geotechnical investigation and specific engineering foundation design is required. Bring back the bull The 1.8 tonne bronze sculpture titled Chapman s Homer (pictured), by internationally renowned New Zealand artist Michael Parekowhai became a symbol of the city s unshakeable strength after visiting the city on its return to New Zealand from the Venice Biennale. More than one thousand members of the public showed their support to Bring back the Bull by contributing over $200,000. Together, Westpac and Christchurch Art Gallery s Trust matched the Pledge Me target to secure this significant work for the city. For more information visit www.backthebull.co.nz Sustainably managing our operations A minimum 20% reduction on 2008 base year CO 2 e emissions and offsetting remaining emissions through the purchase of carbon credits. We have achieved our carbon emissions reduction target in 2013 and have also become carbon neutral by offsetting our remaining emissions through the purchase of New Zealand Units (NZUs) 2, primarily in forestry. Early gains were experienced in electricity use from the implementation of Smart Meters and other tools to quickly diagnose and manage energy wastage. This has resulted in a 53% decrease on CO 2 e from this source since 2008. Reduction in paper use has also contributed to savings initiatives such as paper free lending and statement suppression have led to a 45% reduction on CO 2 e from this source during the same period. We are committed to carbon trading as we continue our journey to be an environmentally sustainable business, and extend this influence across the wider business community, playing an important role in carbon trading and carbon market finance in Australasia. Westpac was the first bank to make a market in the New Zealand Emissions Trading Scheme (NZETS). Our early involvement provides a firm foundation from which to help customers make more informed decisions. This was again recognised in 2013, when Westpac Group was voted Best Trading Company in Australasia in the global Environmental Finance awards for the fourth year in a row. 7
Key sustainable business facts and figures Our five focus areas are managed by people from across the organisation and governed by a Sustainability Steering Committee made up of members of the Westpac Executive Team and our Chief Economist. Our sustainability, community and sponsorship teams support the governance structure and help drive the strategy. Progress against our targets is reported regularly to the Chief Executive, the Sustainability Steering Committee and external stakeholders. 2013 2012 Economic profit ($m) 330 309 Number of customers (millions) 1.278 1.271 Total full and part time employees 4,660 4,836 Women as a % of the total workforce 64.5 65.4 Women in Leadership (%) 43.1 42.0 Community investment ($m) 5.28 5.60 Financial education (number of hours) 12,162 15,424 Financial education (number of participants since 2009) 72,000 63,350 Money raised for Rescue Helicopters ($m) 1.55 1.67 Lives saved via blood donated to NZ Blood Service* In 2013 Westpac Group: Received 92% in the Dow Jones Sustainability Index; Was named as one of the World s Most Ethical Companies from 2008 2013 by the Ethisphere Institute; Retained its listing in the Carbon Disclosure Project s Climate Performance Leadership Index; Remained on the FTSE4Good Index. Sustainable Business Council New Zealand partner to the world business council for sustainable development 1,863 -- Total Scope 1 and 2 emissions (tonnes CO 2 e) 5,411 5,947 Total Scope 3 emissions (tonnes CO 2 e)** 3,579 5,111 *A new initiative in 2013 ** For 2013 the methodology applied to calculating emissions was changed to align with the Ministry for the Environment 2012 Guidance for Voluntary Corporate Greenhouse Gas Reporting; resulting in the replacement of a 1.9 radiative forcing uplift with a great circle distance uplift factor of 1.08. For the full Westpac sustainability story see our websites This review outlines our sustainability strategy and summarises our progress in 2013. To find out more about sustainability at Westpac New Zealand Limited visit www.westpac.co.nz/who-we-are/ sustainability-and-community/ Full Westpac Group sustainability data, including New Zealand, which has been assured by KPMG and follows Global Reporting Initiative (GRI) guidelines and Financial Sector Supplement, is available at www.westpac.com.au Annual Westpac New Zealand Limited financial results are reported at Westpac Group level, available online in the Group Annual Report and Sustainability Review (www.westpac.com.au), and lodged with the Australian Stock Exchange. Westpac New Zealand Limited 16 Takutai Square Auckland 1010 New Zealand Tel: 0800 400 600 Email: tomorrow@westpac.co.nz Web: www.westpac.co.nz JN10690 8