WEBNF 0001104659-25-105156 6-K Filing: Nov 3, 2025

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

November 3, 2025

Commission File Number 1-10167

WESTPAC BANKING CORPORATION

(Translation of registrant’s name into English)

275 KENT STREET, SYDNEY, NEW SOUTH WALES 2000, AUSTRALIA

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F.

Form 20-F x                Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Index to Exhibits

ExhibitNo.	Description
1	ASX Release – Westpac 2025 Sustainability Report

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	WESTPAC BANKING<br> CORPORATION
	(Registrant)


Date:   November 3, 2025	By:	/s/ Esther Choi
		Esther Choi
		Tier One Attorney

Exhibit 1

	ASX RELEASE<br>Westpac Banking Corporation<br>Level 18, 275 Kent Street<br>Sydney, NSW, 2000<br>3 November 2025<br>Westpac 2025 Sustainability Report<br>Westpac Banking Corporation (“Westpac”) today provides the attached Westpac 2025<br>Sustainability Report.<br>For further information:<br>Hayden Cooper Justin McCarthy<br>Group Head of Media Relations General Manager, Investor Relations<br>0402 393 619 0422 800 321<br>This document has been authorised for release by Tim Hartin, Company Secretary.
	2025<br>SUSTAINABILITY<br>REPORT<br>WESTPAC BANKING CORPORATION<br>ABN 33 007 457 141<br>THIS REPORT INCLUDES<br>CLIMATE-RELATED DISCLOSURES<br>FOCUSED ON ALIGNING WITH<br>AUSTRALIAN AND NEW ZEALAND<br>STANDARDS.<br>WESTPAC
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 1<br>CONTENTS<br>INTRODUCTION 2<br>GOVERNANCE 7<br>STRATEGY 12<br>Climate-related risks and opportunities 14<br>Our Climate Transition Plan 36<br>RISK MANAGEMENT 38<br>METRICS AND TARGETS 50<br>APPENDIX 70<br>1.Glossary 71<br>2. Methodology – Operational Emissions – Scope 1, 2 and Upstream Scope 3 74<br>3. Methodology – Scope 3 financed emissions 88<br>4. Methodology – Financed emissions sector targets 96<br>5. Methodology – Climate-related scenario analysis 107<br>6. Independent Assurance Statement 113<br>7.Disclaimer 117<br> “OUR PURPOSE IS TAKING ACTION NOW TO CREATE<br>A BETTER FUTURE. ONE WAY WE ARE SEEKING TO<br>DELIVER ON THIS IS THROUGH OUR AMBITION TO<br>BECOME A NET-ZERO, CLIMATE RESILIENT BANK.<br>IN THIS SUSTAINABILITY REPORT, WE OUTLINE OUR STRATEGIC APPROACH TO ADDRESSING<br>CLIMATE-RELATED RISKS AND OPPORTUNITIES. WE SHARE OUR PROGRESS, THE CHALLENGES<br>WE'VE ENCOUNTERED, AND THE ACTIONS WE'RE TAKING TO DELIVER ON OUR AMBITION AND DRIVE<br>LONG-TERM VALUE.”<br>WESTPAC CEO, ANTHONY MILLER<br>Cover photo:<br>Close-up photo of drops of water balancing delicately on a blade of grass.<br>Three drops form the shape of the Westpac logo (AI-generated).<br>ACKNOWLEDGEMENT OF<br>INDIGENOUS PEOPLES<br>We acknowledge the First Peoples of Australia and recognise<br>their ongoing role as Traditional Owners of the land and waters<br>of this country. We acknowledge Westpac’s Aboriginal and<br>Torres Strait Islander employees, partners, and stakeholders,<br>and pay our respects to their Elders, both past and present.<br>In Aotearoa New Zealand we also acknowledge tāngata whenua<br>and the unique relationship that Indigenous Peoples share with<br>all New Zealanders under Te Tiriti o Waitangi.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 2<br>Important information<br>ABOUT THIS REPORT<br>The Westpac 2025 Sustainability Report (“Report”) outlines<br>Westpac’s strategy, targets, and approach for addressing the risks<br>and opportunities presented by climate change. The Appendix<br>includes a Glossary of definitions along with methodologies<br>for calculating our emissions and additional detail behind our<br>scenario analysis.<br>This Report forms part of Westpac’s 2025 reporting suite including<br>our Annual Report, our Sustainability Index and Datasheet and<br>other annual disclosures. Access the full suite at westpac.com.au.<br>This Report covers the same consolidated reporting entity and<br>reporting period as the Group’s 2025 Annual Report, unless<br>indicated otherwise. It includes climate-related disclosures for<br>Westpac and its subsidiaries across the markets it operates. This<br>includes our operations within Westpac’s BT business in Australia.<br>Certain scope 3 emissions for BT have not been calculated as they<br>are immaterial. References to ‘Westpac’, ‘Group’, ‘Westpac Group’,<br> ‘we’, ‘us’ and ‘our’ are to Westpac Banking Corporation ABN 33 007<br>457 141 and its subsidiaries unless stated otherwise.<br>Our ambition is to become a net-zero climate resilient bank which<br>means working towards net-zero emissions across our operations<br>and our lending while building resilience to the physical impacts of<br>climate change.<br>This Report includes forward-looking statements – such as<br>commitments, goals, targets, plans, estimates, assumptions and<br>metrics – that inherently carry uncertainty, particularly in the<br>context of climate reporting. These risks and uncertainties need to<br>be considered when interpreting this Report. For an explanation<br>of forward-looking statements and the risks, uncertainties and<br>assumptions to which they are subject, see the Disclaimer in<br>the Appendix.<br>We define some of these forward-looking statements as follows:<br> • Targets: Outcomes where we have identified one or more<br>pathways for achievement by a set date. These are subject to<br>certain assumptions, dependencies and limitations;<br> • Commitments: Actions we are dedicated to taking and are<br>within our direct control;<br> • Aim: Actions we are striving to achieve that are outside<br>our direct control and require a degree of collaboration or<br>influence; and<br> • Goal: A desired result or outcome that we intend to achieve.<br>These may not always have a defined path or be within our<br>direct control.<br>CONSIDERATION OF CLIMATE-RELATED<br>DISCLOSURE STANDARDS<br>This Report was guided by the Australian Accounting Standards Board<br>(AASB) S2 Climate-related Disclosures Standard but does not yet fully<br>align. We are required to comply with AASB S2 for the year ended<br>30 September 2026.<br>As we work towards compliance against AASB S2 and Aotearoa<br>New Zealand Climate Standards (NZ CS), there are nuances between<br>these Standards in how the impacts from climate-related risks and<br>opportunities should be considered and disclosed. Under the NZ CS,<br>climate-related impacts encompass all impacts arising from climate.<br>In contrast, AASB S2 defines climate-related risks and opportunities<br>as the potential negative and positive effects, respectively, that are<br>associated specifically with climate change.<br>OUR APPROACH TO CLIMATE REPORTING<br>Outlining our approach to managing climate change risks and<br>opportunities is challenging as measuring, reporting and the setting<br>of targets relies on estimates, inexact data and the availability of<br>appropriate methodologies. We strive to apply the best available data<br>and consistent principles in our climate metrics noting estimates have<br>inherent uncertainties.<br>We ask readers to consider these limitations and focus on our<br>intent. Over time, our climate-related data will evolve as new<br>methodologies and technologies emerge and our stakeholders improve<br>the measurement of their climate impacts, risks and opportunities.<br>Our operational greenhouse gas (GHG) emissions metrics are reported<br>using both location-based and market-based methods. Operational<br>targets are absolute emission reduction targets set by applying a<br>market-based accounting approach. Carbon offsets are not considered.<br>Unless indicated otherwise, data in this Report is for the 2025<br>financial year, being the 12 months ended 30 September 2025 or<br>at 30 September 2025. All amounts are in Australian dollars and<br>emissions data is in a carbon dioxide equivalent (CO2-e). Due to timing<br>of reporting and data availability, some information is reported using<br>different time periods as set out below or as otherwise stated.<br>KPMG has provided independent reasonable assurance over our scope<br>1, 2 and 3 upstream emissions, and limited assurance over selected<br>metrics and targets within this Report. Their independent assurance<br>statement is on page 113 to 116 of this Report.<br>STATEMENT OF COMPLIANCE TO AOTEAROA NEW<br>ZEALAND CLIMATE STANDARDS<br>This Report complies with the NZ CS issued by the External Reporting<br>Board. Westpac is a Climate Reporting Entity under the New Zealand<br>Financial Markets Conduct Act 2013. Westpac is a listed issuer and<br>registered bank in New Zealand.<br>In preparing this Report, Westpac has elected to use the following<br>adoption provisions from NZ CS 2 published by the External<br>Reporting Board:<br> • Adoption Provision 2: Anticipated financial impacts – exempts<br>Westpac from disclosing anticipated financial impacts of climate<br>risks and opportunities and a description of time horizons over<br>which the anticipated financial impacts could reasonably be<br>expected to occur;<br> • Adoption Provision 4: Scope 3 Greenhouse Gas emissions –<br>exempts Westpac from disclosing some categories of scope 3<br>gross Greenhouse Gas (GHG) emissions;<br> • Adoption Provision 5: Comparatives for Scope 3 Greenhouse<br>Gas emissions – exempts Westpac from disclosing comparative<br>information for scope 3 GHG emissions;<br> • Adoption Provision 6: Comparatives for metrics – permits Westpac<br>to disclose comparative information for only one prior year for each<br>metric disclosed in this Report; and<br> • Adoption Provision 7: Analysis of trends – exempts Westpac from<br>providing an analysis of main trends evident from a comparison of<br>each metric to the prior two years.<br>The NZ CS are broadly consistent with AASB S2, but where there<br>are differences we have supplemented our disclosure to fully meet<br>the NZ CS. By complying with the NZ CS for the Group we are no<br>longer publishing a separate Climate Report for the Westpac New<br>Zealand Branch.<br>On behalf of Westpac on 2 November 2025:<br>Metrics or Targets Reporting period<br> • Operational emissions<br>targets progress<br>Reported for the 12 months ended<br>30 June 2025.<br> • Financed emissions<br> • Financed emissions sector<br>target progress<br>Reported one year in arrears.<br>Latest reported period is for the 12<br>months to 30 September 2024. ___________________________<br>Anthony Miller<br>Managing Director & CEO<br>___________________________<br>Steven Gregg<br>Chairman<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 3<br>MESSAGE FROM THE CEO<br>Our ambition is to become a net-zero, climate<br>resilient bank.<br>Welcome to Westpac’s Sustainability Report highlighting<br>our strategy, plans and progress on addressing the risks<br>and opportunities of climate change.<br>Westpac has an established history of addressing climate<br>change through our ambition to become a net-zero, climate-resilient bank and we are dedicated to continued action.<br>We remain committed to supporting the goals of the Paris<br>Agreement to limit global warming to well below 2 degrees<br>Celsius, and to pursue efforts to limit warming to 1.5<br>degrees Celsius above pre-industrial levels. Achieving this<br>is incredibly difficult as we aim to reduce our emissions and<br>build resilience while also assisting customers with their<br>unique paths to net-zero.<br>We highlighted some of these complexities in our<br>submission to the Australian Economic Reform Roundtable.<br>We outlined the need to accelerate Australia’s energy<br>transition through streamlining approvals, clear generation<br>and storage targets and strengthening the electricity grid,<br>while fostering community support along the way.<br>Our approach to climate change is anchored in our<br>Sustainability Strategy, which has been updated to align<br>with our corporate strategy and refreshed purpose. Our<br>Sustainability Strategy has three focus areas: climate<br>transition, housing affordability and regional prosperity. Our<br>Climate Transition Plan outlines how we will deliver on the<br>climate transition focus area.<br>2025 Progress<br>This year, we focused on turning ambition into action.<br>Working to deliver on the targets we have set in<br>prior years, expanding engagement with customers,<br>strengthening resilience, and streamlining our approach for<br>the years ahead.<br>Highlights included:<br> • reduced to zero our corporate lending to institutional<br>thermal coal mining customers;1<br> • over 70% of our financed emissions sector targets<br>showed reduced emissions or intensity in FY24 (our<br>latest year of reporting)2<br>. Most of these are ahead of<br>their science-based reference pathway;<br> • increased our sustainable finance lending by 37% with<br>sustainable cumulative bond facilitation up 40%;<br> • reduced our scope 1 and 2 operational emissions by 22%<br>over the year;<br> • continued to source the equivalent of 100% renewable<br>electricity for our direct operations;<br> • completed a physical climate risk assessment of the<br>locations where we operate;<br> • refreshed our transition risk methodology. This included<br>identifying and monitoring high transition risk sectors<br>and enhancing our transition risk appetite measure; and<br> • implemented a Climate Risk Policy. This sets out<br>our principles and requirements for managing climate-related risks across our business.<br>Our Carbon-Intensive Sector Requirements (lending and<br>bond facilitation for these sectors) were also refreshed,<br>including strengthening our Customer Climate Transition<br>Plan Evaluations.<br>Improving Climate Resilience<br>With growing evidence of the impacts of climate-related<br>events, we have worked to improve our understanding of<br>the physical risks of climate change. This has included<br>expanding both our scenario analysis and our assessment<br>of physical risks on our properties and operations. We<br>practically tested our resilience this year through a Group-wide crisis exercise simulating a major weather event on<br>Australia’s eastern seaboard.<br>Climate opportunities<br>We are determined to identify the opportunities to support<br>customers through the transition to a low carbon economy,<br>grow responsibly, and contribute to a more sustainable<br>economy. In addition to our growth in sustainable finance,<br>over the last year we have:<br> • remained the largest financier to renewable projects in<br>Australia3<br>; and<br> • helped our residential lending customers improve their<br>energy efficiency through sustainable finance.<br>Delivering on the transition requires action from everybody<br>in society and we’re working to make our contribution<br>alongside customers, communities, governments and<br>other stakeholders.<br>Anthony Miller<br>CEO<br>1 At 30 September 2025. In line with our Sustainability Customer Requirements, we have zero corporate lending and will no longer provide bond facilitation for institutional customers with ≥15% of their three-year rolling average revenue coming<br>directly from thermal coal mining.<br>2 Refer to page 25 for summary of progress on our financed emissions targets.<br>3 Based on IJGlobal and Westpac Research Data for the period from 1 October 2024 to 30 September 2025.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 4<br>WESTPAC’S APPROACH TO CLIMATE CHANGE<br>Climate change is already impacting our business,<br>customers and the community. It is important we take steps<br>now to address the risks and opportunities of climate<br>change, as well as the challenges it presents. Our climate<br>ambition is to become a net-zero, climate resilient bank. This<br>is the guiding principle shaping our strategy, our decisions<br>and the way we engage with stakeholders.<br>This year marked an important evolution in our approach to<br>managing climate risks and opportunities. Our Climate<br>Change Position Statement and Action plan, released in<br>2023, has now concluded and we have replaced it with our<br>new Climate Change Position and our Climate Transition<br>Plan (CTP), available on our website. Our Climate Change<br>Position reiterates our support for the goals of the Paris<br>Agreement1<br>.<br>How to read this Report<br>This report provides an overview of the climate-related risks<br>and opportunities we face along with our approach,<br>progress and plans. The report is organised into four<br>thematic sections consistent with AASB S2 climate-related<br>disclosures and the NZ CS. These standards provide a<br>structured approach for considering climate-related risks<br>and opportunities, and Table 1 on the right outlines what is<br>included in each section of this Report.<br>FIGURE 1: HISTORY OF OUR APPROACH TO MANAGING CLIMATE RISKS AND OPPORTUNITIES<br>1st Sustainability<br>Report<br>1st Climate Change<br>Position Statement<br> & Action Plan<br>2ndClimate Change<br>Position Statement<br> & Action Plan<br>3rd Climate Change<br>Position Statement<br> & Action Plan<br>4thClimate Change<br>Position Statement<br> & Action Plan<br>5thClimate Change<br>Position Statement<br>(CCPS) & Action<br>Plan<br>Concluded 5th<br>CCPS and Action Plan,<br>Developed CTP to<br>apply from 2026<br>Sustainability<br>Report<br>Sustainability<br>Report<br>Sustainability<br>Report<br>Sustainability<br>Report<br>2023 and 2024<br>Climate Reports<br>2025 Sustainability<br>Report<br>2002 2009–13 2014–17 2017–20 2020–23 2023–24 2025<br>1 Refers to Article 2.1 of the Paris Agreement on Climate Change adopted within the United Nations Framework Convention on Climate Change in December 2015.<br>TABLE 1: GUIDE TO THIS REPORT<br>Introduction<br> • Message from the CEO<br> • Our progress highlights<br> • Our emissions account<br>Governance • Board oversight and Management's role<br> • Climate-related skills and experience<br>Strategy<br> • Our business model, strategy and value chain<br> • Climate-related risks and opportunities and time horizons<br> • Progress against our Climate Change Position Statement and Action Plan<br> – Net-zero, climate resilient operations<br> – Supporting customers' transition to net-zero and to build their climate resilience<br> • Carbon-Intensive Sector Requirements<br> • Financial effects<br> • Summary of our Climate Transition Plan (CTP)<br>Risk management • Managing climate-related risks<br> • Scenario analysis<br>Metrics and Targets<br> • Operational GHG emissions and energy consumption<br> • Scope 3 financed emissions<br> • Financed emissions sector targets - approach, detail, and progress<br> • Sustainable Finance targets<br>Appendix<br> • Glossary<br> • Methodologies for operational emissions, scope 3 financed emissions and sector targets<br> • Methodology for climate-related scenario analysis<br> • Independent Assurance Statement<br> • Disclaimer<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 5<br>OUR PROGRESS<br>FY25 Highlights<br>Increase in sustainable<br>37%<br>finance lending1<br>Decrease in scope 1 and 2<br>emissions<br>22%<br>Increase in Group scope 3<br>2%<br>financed emissions2<br>2% Decrease in scope 3<br>upstream emissions 40% 4<br>Increase in sustainable<br>bond facilitation3 >70%<br>89% Zero<br>Of our financed emissions<br>sector targets showed<br>a lower emissions profile<br>Of TCE in our Australian<br>and New Zealand<br>electricity generation<br>portfolio was to<br>renewable sources<br>Updated our<br>Carbon-Intensive Sector<br>Requirements including<br>for customer transition<br>plan evaluation<br>Corporate lending to<br>institutional thermal<br>coal mining customers5<br>1. Sustainable Finance includes both labelled lending, and unlabelled lending for customers and activities in-scope of our SFF categories. % change in the TCE (or balance) at 30 September 2025 to 30 September 2024.<br>2. Refer to Appendix section 'Glossary' for definition. % change in our estimated scope 3 financed emissions (combined scope 1, 2, and 3 basis) at 30 September 2024 and 30 September 2023 (one year in arrears). See Table 29.<br>3. % change in the total value of bond facilitation ($bn) cumulative from 1 October 2021 to 30 September 2025 and to 30 September 2024.<br>4. The Appendix section ‘Methodology – Operational Emissions – Scope 1, 2 and Upstream Scope 3’ contains the scope 3 upstream emissions categories included.<br>5. At 30 September 2025. In line with our Sustainability Customer Requirements, we have zero corporate lending and will no longer provide bond facilitation for institutional customers with ≥15% of their three-year rolling<br>average revenue coming directly from thermal coal mining.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>OUR PROGRESS<br>6<br>Our emissions account<br>To achieve our climate goals, we must understand our<br>greenhouse gas (GHG) emissions, both direct and indirect,<br>so we can take action where it matters most.<br>The GHG emissions we generate across our value chain are<br>assessed under scope 1, scope 2 and scope 31<br> categories.<br>These are illustrated opposite, with results summarised in<br>Table 2 below.<br>Our scope 3 estimates include selected upstream emission<br>sources, which are indirect emissions from activities that<br>are an input into the delivery of our services, and<br>downstream emissions, which are associated with the use<br>of our products and services such as financed emissions<br>attributable to most of our lending.<br>The calculation of our emissions is complex and subject to<br>significant uncertainty due to the nature of the data and<br>methodologies used. These are further explained in the<br>Appendix. Table 2 shows our emissions account, although<br>as our scope 3 financed emissions (category 15) are<br>calculated one year in arrears, total reported emissions are<br>not comparable between FY24 and FY25.<br>TABLE 2: WESTPAC EMISSIONS ACCOUNT<br>(MARKET-BASED) (TONNES OF CO2<br> EQUIVALENT)<br>GHG scope / scope 3 category 2025 2024<br>Scope 1 4,714 6,262<br>Scope 2 1,963 2,303<br>Scope 3: 56,4694 40,799,175<br>Upstream<br>Emissions:<br> — Category 11 8,269 11,071<br> — Category 2 NR3 NR3<br> — Category 3 1,669 1,844<br> — Category 4 721 1,092<br> — Category 5 742 770<br> — Category 6 12,262 12,776<br> — Category 7 30,319 26,940<br> — Category 8 2,487 3,162<br>Downstream<br>Emissions:<br> — Category 9-14 NA3 NA3<br> — Category 15 (financed emissions) NR3,4 40,741,520<br>Total Scope 1, 2, and 3 emissions 63,1464 40,807,740<br>FIGURE 2: OUR EMISSIONS ACCOUNT AND SCOPES OF EMISSIONS<br> >99%<br>INDIRECT<br>Downstream scope 3 emissions are indirect emissions downstream<br>of our operations which we have financed. These are our share of<br>the emissions generated by customers (customers' scope 1 and<br>2 emissions and, for certain sectors, scope 3 emissions). Detail of<br>inclusions, exclusions and methodologies see the Appendix.<br>Facilitated emissions i.e. downstream emissions related to capital<br>markets activities (e.g., bond origination) have been assessed and<br>are not currently material.<br>CH4<br>CO2<br>N2O<br>HFCS<br>PFCS SF6<br>D<br> <0.1% <0.5%<br>IRECT<br>INDIRECT<br>INDIRECT<br> <0.1%<br>SCOPE 1 SCOPE 2 SCOPE 3<br>Downstream emissions<br>SCOPE 3<br>Upstream emissions<br>Upstream<br>scope 3<br>emissions<br>are indirect<br>emissions<br>related to<br>selected<br>sources in our<br>upstream value<br>chain.<br>Scope 2<br>emissions<br>are indirect<br>emissions from<br>the generation<br>of purchased<br>electricity<br>consumed at<br>controlled<br>facilities.<br>Scope 1<br>emissions<br>are direct<br>emission from<br>combustion of<br>fuels consumed<br>at controlled<br>facilities.<br>OPERATIONAL EMISSIONS 2 FINANCED EMISSIONS<br>1. In 2025 we reviewed our scope 3 upstream emissions boundary and are finalising our assessment. We expect an expansion in our boundary in 2026 due to a more complete view of emissions from purchased goods and services.<br>2. We define operational emissions as our scope 1, 2 and select upstream scope 3 emissions from business operations.<br>3. NR – Not reported in the relevant year due to data availability; NA – Not applicable as not considered relevant and/or material.<br>4. Does not include scope 3 category 15 (financed emissions) as we report it one year in arrears.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 7<br>GOVERNANCE
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 8<br>GOVERNANCE<br>Westpac’s governance reflects the key role that sustainability<br>plays in our performance, prospects and strategy. A summary<br>of our governance structure is provided on the following<br>page, and comprises the Board, its Committees along with a<br>range of executive and management committees. This<br>summary also shows how climate-related information flows<br>through our governance structure.<br>Board oversight<br>Under its Charter, the Board is responsible for considering<br>the social, ethical and environmental impact of our activities,<br>and for setting standards and monitoring compliance with<br>our sustainability policies and practices.<br>The Board approves key sustainability matters such as<br>the sustainability strategy, the Climate Transition Plan and<br>Human Rights Position Statement. It also monitors progress<br>against certain targets and provides oversight of risks<br>and opportunities.<br>Committees in place to support Board oversight<br>The following Board Committees operate under their<br>respective Charters to support oversight responsibilities,<br>including those related to sustainability and climate risk.<br> • Board Risk Committee: Provides oversight of the<br>implementation and operation of Westpac’s risk<br>management framework. It also oversees the monitoring<br>and management of our reputation and sustainability<br>risk profile, performance and controls, including in<br>relation to climate risk;<br> • Board Audit Committee: Has oversight of the integrity<br>of the financial statements and financial reporting and<br>systems, including the sustainability disclosures in the<br>Interim Financial Statements, Annual Report and the<br>Sustainability Report. It also reviews the process by<br>which management assures the integrity of information<br>released in sustainability reporting; and<br> • Board Remuneration Committee: Assists the Board<br>by overseeing the design, operation and monitoring of<br>the remuneration framework. It also assesses the Short-Term Variable Reward Scorecard, including climate-related measures.<br>The Board and Board Committee Charters are on our<br>website and are reviewed regularly.<br>Board and Committee meeting agendas are structured<br>to address each of the responsibilities contained in the<br>relevant Charter, including climate-related topics and<br>decisions. Agendas are approved by the relevant Board or<br>Committee Chair with input from the Company Secretary<br>and subject matter experts. Agenda items are ordinarily<br>supported by a management paper or verbal update that<br>either provides an update on the relevant matter for<br>informational purposes or seeks formal approval from the<br>Board or Committee.<br>Refer to Table 3 for a non-exhaustive summary of<br>matters considered by the Board and its Committees<br>related to sustainability including climate-related risks and<br>opportunities in FY25.<br>Governance of climate strategy<br>and targets<br>The Board has approved Westpac’s strategy and has<br>oversight of its implementation along with its business plan,<br>and significant corporate initiatives. Sustainability risks and<br>opportunities are incorporated in the strategic planning,<br>capital deployment and funding decision-making processes.<br>In FY25, the consideration of climate risks and opportunities<br>as part of the Group’s strategy setting process included:<br> • Outlining climate and sustainability strategic priorities<br>for FY25-30 in Divisional strategies;<br> • Conducting an analysis of potential growth in<br>renewables and energy transition to identify climate-related opportunities and integrate them into our<br>strategic and financial planning; and<br> • Reviewing trade-offs associated with climate-related<br>risks and opportunities. This included considering<br>different strategic options for climate transition and<br>assessing the emerging risks posed by the current global<br>sentiment on Sustainability.<br>We’ve set 2030 targets to support our climate strategy,<br>guided by our Climate Transition Plan and ambition.<br>Progress towards climate-related targets is monitored<br>through internal management reporting of specific metrics.<br>These include regular progress reports to the Board and<br>management-level committees, as well as periodic reviews<br>of performance against targets.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>GOVERNANCE<br>9<br>FIGURE 3: BOARD-LEVEL AND MANAGEMENT-LEVEL OVERSIGHT OF CLIMATE AND SUSTAINABILITY RELATED ISSUES AND INFORMATION FLOW<br>BOARD LEVEL<br>Board Audit Committee<br>Reviews sustainability disclosures in the Annual Report and<br>Sustainability Report and recommends approval to the Board<br>Board Remuneration Committee<br>Oversees design, operation and monitoring of the<br>remuneration framework<br>Board Risk Committee<br>Reviews Group-wide risk management approach,<br>including strategy, risk appetite and frameworks<br>Group Property, Procurement<br>and Resilience<br> • Manages the environmental performance<br>of our direct operations, the Group’s<br>Operational Resilience, and supports key<br>suppliers with sustainability strategies.<br>General<br>flow of<br>information<br>Flow of information<br>relating to climate-related<br>disclosures<br>Flow of information relating<br>to the climate change-related<br>risk management<br>Departments participate in the following Management level committees (including papers)<br>ESG Disclosure and Reporting<br> • Leads external reporting of sustainability<br>matters.<br> • Works to align reporting with ESG-related<br>standards.<br> • Estimates financed emissions.<br>Customer Divisions<br> • Identify and manage sustainability risks and<br>opportunities for their respective division.<br> • Engage customers and suppliers on<br>sustainability and assess risks and<br>opportunities of transactions.<br> • Manage financed emissions sector targets.<br>Group Sustainability<br> • Sets strategy, positions and<br>commitments and action plans for<br>climate, nature, human rights, and<br>Indigenous customers and employees.<br>ESG Risk<br> • Line 2 risk function and owner of Reputation<br>and Sustainability Risk Category.<br> • Sets the approach to sustainability risk,<br>including frameworks and policies. Provides<br>oversight/ challenge of sustainability risks in<br>conjunction with Divisional Risk.<br>WESTPAC DEPARTMENTS WITH SUSTAINABILITY RESPONSIBILITIES WHICH INFORM THE ABOVE<br>MANAGEMENT LEVEL WHICH INFORMS THE BOARD LEVEL<br>Board<br>Approves Annual Report, Sustainability Report, Sustainability Strategy and material sustainability position statements<br>Approves Group-wide risk management approach, including strategy, risk appetite and frameworks<br>2. Group Credit Risk Committee	Chair: Deputy Chief Risk Officer<br>Reviews and provides oversight on the credit risk management framework,<br>strategy and risk appetite statement, (which includes climate related risks)<br>3. Divisional Risk Committees	Chairs: divisional Chief Executives<br>Considers material sustainability risks for the division, including risk profile assessments, and risk appetite<br>4. Climate Change Credit Risk Committee	Chair: Deputy Chief Risk Officer<br>Facilitates the oversight of climate-related physical and transition credit risks<br>5. Customer & Transaction Risk Escalation Committee	Chair: divisional Chief Executive<br>Reviews and provides advice on customers and transactions to support the decisions of the Chair<br>Executive Team (senior management)	Members: CEO and Group Executives<br>Oversees implementation of Sustainability Targets and Strategy<br>1. Group Executive Risk Committee	Chair: Chief Risk Officer<br>Reviews Group-wide risk management approach (including for sustainability<br>risk and credit risk), including strategy, risk appetite and frameworks<br>Oversees the implementation and performance of sustainability risk<br>management framework and key supporting policies, controls and actions<br>1 2 3 4 5 1 4 5 1 2 5<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>GOVERNANCE<br>10<br>TABLE 3: SUMMARY OF MATTERS CONSIDERED IN FY25<br>BY THE BOARD AND ITS COMMITTEES ON SUSTAINABILITY<br>INCLUDING CLIMATE-RELATED RISKS AND OPPORTUNITIES<br>Period when<br>topics were<br>considered<br>Key sustainability / climate-related topics Q1 Q2 Q3 Q4<br>Board<br>Provided oversight of the strategic initiatives and<br>priorities (including sustainability-related strategy,<br>targets and metrics)<br> ✔ ✔ ✔<br>Approved the FY24 Climate Report ✔<br>Approved the Carbon-Intensive Sector<br>Requirements in the Climate Change Position<br>Statement and Action Plan<br> ✔<br>Approved the Sustainability Strategy ✔<br>Approved the Climate Change Position and<br>Climate Transition Plan<br> ✔<br>Board Risk Committee<br>Reviewed the Group Risk Appetite Statement<br>(including sustainability and climate-related risks)<br>and made recommendations to the Board<br> ✔<br>Monitored external regulatory developments<br>related to sustainability and climate risks<br> ✔ ✔ ✔<br>Reviewed regular reporting from management inclu-ding overseeing of related policies and frameworks<br> ✔ ✔ ✔ ✔<br>Board Audit Committee<br>Received updates from management on climate<br>and sustainability reporting and disclosures<br>including the implementation of mandatory<br>reporting standards (AASB)<br> ✔ ✔ ✔ ✔<br>Reviewed the FY24 Climate Report and<br>recommended to the Board for approval<br> ✔<br>Provided oversight of assurance matters<br>(including matters relating to sustainability and<br>climate disclosures)<br> ✔ ✔<br>Board Remuneration Committee<br>Reviewed remuneration matters (including<br>sustainability and climate objectives) and made<br>recommendations to the Board<br> ✔ ✔ ✔<br>Climate-related skills and experience<br>in key governance bodies<br>The Board uses a skills matrix to illustrate the key skills<br>and experience the Board is seeking to achieve in its<br>membership collectively and the number of Directors with<br>each skill and experience. The ‘Environment & Social’<br>category in the Board skills matrix reflects two Directors<br>with ‘Deep experience and knowledge’ and eight with<br>'General working experience and knowledge'.<br>The skills matrix also assists to identify focus areas for<br>the continuing education and professional development of<br>Directors. For example, in FY25 these focus areas included<br>technology developments and key environmental, social and<br>governance topics (amongst others), which were facilitated<br>through a combination of structured workshops, targeted<br>deep dives, and site visits aligned with strategic priorities.<br>The skills matrix also assists to identify areas where it<br>may be desirable for specialist external expertise to be<br>retained to supplement the Board’s skills and experience.<br>These activities are planned each year and are included in<br>the Board’s/Board Committees’ calendars.<br>In FY25, the Board received training on the new mandatory<br>Australian climate-related standards (AASB S2), completed<br>a deep dive into physical and liability climate-related risks,<br>and participated in a sustainable business workshop on key<br>sustainability and climate-related topics which may affect<br>our customers and communities.<br>Management's role<br>The day-to-day management of Westpac’s approach to<br>climate-related matters is the responsibility of the CEO<br>and is delegated to the Chief Sustainability Officer, Group<br>Executives and senior management, where relevant. The<br>Board’s oversight as outlined above is supported by<br>reporting and recommendations from the Executives and<br>senior management.<br>The CEO and senior management monitor, manage<br>and oversee climate-related risks and opportunities and<br>work to integrate these into our operations. These are<br>reflected in individual Statements of Accountability or<br>Accountability Statements.<br>Management is supported by management-level<br>committees that oversee key sustainability-related risks,<br>policies, and risk management processes. Divisional<br>management is accountable for assessing risks and<br>opportunities, managing controls aligned with the Group<br>Risk Management Framework (RMF) and Sustainability Risk<br>Management Framework (SRMF), and reporting outcomes to<br>divisional risk committees chaired by their Executives, and to<br>the Board Risk Committee, as required.<br>Supporting committees meet as follows:<br>Group Executive Risk<br>Committee (RISKCO)<br>At least 7 times per year<br>Divisional Risk Committees At least quarterly<br>Group Credit Risk Committee Quarterly<br>Climate Change Credit<br>Risk Committee<br>Quarterly<br>Customer & Transaction Risk<br>Escalation Committee (CTREC)<br>As required (divisional)<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>GOVERNANCE<br>11<br>Key roles supporting the Board include:<br>TABLE 4: KEY ROLES SUPPORTING THE BOARD<br>Role Description<br>Chief Executive<br>Officer (CEO)<br>Responsible for the Group strategic plan and<br>overseeing its implementation including the<br>achievement of results; and the day-to-day<br>management of Westpac’s operations, subject<br>to the delegations of authority approved by<br>the Board.<br>Executive Team Westpac’s most senior management team<br>and includes the CEO and Group Executives.<br>Considers Westpac’s climate strategy,<br>Climate Transition Plan, major initiatives<br>and performance.<br>Chief Financial<br>Officer (CFO)<br>Responsible for the development and<br>maintenance of the Group approach<br>to financial management, planning and<br>forecasting, this includes mandatory<br>climate reporting.<br>Chief<br>Sustainability<br>Officer (CSO)<br>Reporting to the CEO. Responsible for<br>developing the Group’s sustainability strategy<br>including work to achieve a net-zero portfolio<br>by 2050 and 2030 financed emissions targets<br>for our most emissions-intensive sectors.<br>Chief Risk<br>Officer (CRO)<br>Responsible for the development and<br>maintenance of the Risk Management<br>Framework, Risk Management Strategy and<br>Board Risk Appetite Statement (including<br>sustainability and climate risks).<br>Deputy Chief<br>Risk Officer<br>Reporting to the CRO. Responsible for<br>execution of the sustainability risk strategy in<br>line with the risk and Group strategy. Leading,<br>developing and implementing continuous<br>improvement to sustainability risk, including<br>climate-related risks.<br>ESG Disclosure &<br>Reporting Officer<br>Reporting to the CFO. Responsible for<br>the Group's sustainability market disclosure<br>and reporting, including operationalising the<br>market disclosure and reporting of the<br>Group's sustainability strategy and external<br>sustainability commitments.<br>Oversight, controls and procedures<br>Climate-related risks<br>Controls and procedures are used to support the oversight<br>of climate-related risks and are integrated within our RMF,<br>with further detail of in the Risk Management Section.<br>For example:<br> • ESG policies and standards: our SRMF, Climate Risk<br>Policy and ESG Credit Risk Policy describe our approach<br>to manage sustainability and climate risk, and guide<br>how controls and procedures help manage climate-related risks across our operations, lending, and supply<br>chain; and<br> • ESG risk assessment tool: used to help business and<br>institutional bankers assess ESG risks associated with<br>customers, transactions and activities supported.<br>Management oversees adherence to frameworks, policies,<br>and procedures, addressing breaches via our Incident<br>Management Policy. Management prioritises and makes<br>decisions on these risks when their rating falls outside<br>established tolerances.<br>Climate-related opportunities<br>Supporting customers with sustainable finance and bond<br>facilitation is a climate-related opportunity. Westpac uses<br>its Sustainable Finance Framework (SFF) to assess lending<br>and bond facilitation and to support product development.<br>We also have formal product controls and processes in<br>place for products and services that are outside of SFF. For<br>climate-related opportunities outside of sustainable finance<br>and products, we do not yet have a formal process or<br>controls to support their identification and monitoring.<br>In FY25, we completed our first formal climate-related<br>opportunities identification process. As this process<br>matures, we plan to enhance our processes to better<br>capture these opportunities within our strategy. Refer to<br>the Climate-related opportunities outlined in Table 9 for<br>more information.<br>Remuneration relating to climate-related considerations<br>Westpac’s Short Term Variable Reward (STVR) Scorecard<br>includes climate-related measures for determining the<br>remuneration of the CEO and certain Group Executives.<br>The 2025 Group STVR Scorecard contained the following<br>measure: ‘Progress our sustainability and climate<br>strategies’. This measure contributed to 5% of the overall<br>Group STVR Scorecard assessment.<br>The sustainability and climate measure was assessed by<br>reviewing progress against:<br> • our sustainable finance and bond facilitation targets;<br> • engaging with customers on their climate transition<br>plans; and<br> • reducing customer losses from scams and the number of<br>days to refund customers for fraud events.<br>Section 3.3 of the Remuneration Report in the 2025 Annual<br>Report details the outcome for 2025. Prior year comparative<br>information is in Section 3.3 of the Remuneration Report<br>in the 2024 Annual Report, and page 6 of the 2024<br>Climate Report.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 12<br>STRATEGY<br>CONTENTS<br>OUR STRATEGY 13<br>CLIMATE-RELATED RISKS AND OPPORTUNITIES 14<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS 19<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>23<br>FINANCIAL EFFECTS 34<br>OUR CLIMATE TRANSITION PLAN 36
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 13<br>OUR STRATEGY<br>Westpac's business model,<br>strategy and value chain<br>Westpac is a retail, commercial and institutional bank<br>providing a full range of banking products and services in<br>our core markets of Australia and New Zealand. Banking<br>services are also provided in Papua New Guinea and<br>Fiji. We also operate a small number of international<br>offices mainly supporting customers with connections to our<br>core markets. We operate select wealth management and<br>related activities although these are not a material part of<br>our business.<br>We generate cash flows through the provision of banking<br>services including net interest income along with fee income<br>on other financial services, trading income and certain<br>financial markets instruments. Costs of the business include<br>operating expenses and impairment charges linked to the<br>risks of providing lending. These activities underpin our<br>business model and value chain, outlined in Table 5.<br>Climate-related risks and opportunities may affect<br>Westpac’s business model, strategy and value chain. This<br>section outlines how climate change is currently impacting<br>Westpac, how it may do so in the future, and how we<br>are responding.<br>Our strategic approach<br>We have long appreciated that climate change is a<br>significant factor affecting our business, customers and the<br>communities in which we operate, and that its effects are<br>likely to become more material over time. Our strategic<br>approach to climate change is guided by our ambition<br>to be a net-zero climate-resilient bank. This in turn<br>is founded on understanding how climate change may<br>impact our operations and customers and determining<br>appropriate responses.<br>Our approach over the year followed the three areas of our<br>2023-2025 Climate Change Position Statement (CCPS) and<br>Action Plan:<br>1. Net-zero climate resilient operations;<br>2. Supporting customers' transition to net-zero and to build<br>their climate resilience; and<br>3. Collaborate for impact on initiatives towards net-zero<br>and climate resilience.<br>In building our understanding of climate change we engage<br>with a range of stakeholders, and conduct scenario analysis<br>on climate-related risks and opportunities which may affect<br>our prospects. This is assisting us to manage risks, develop<br>and distribute products, better engage with customers and<br>suppliers, and work to improve our climate resilience.<br>Looking ahead, we have built on our progress by releasing<br>a Climate Transition Plan (CTP) and a Climate Change<br>Position. These continue our trajectory towards our 2030<br>targets, detail our aspirations, and outline the actions and<br>metrics for tracking progress.<br>The Climate Change Position builds on our ambition and<br>principles of the CCPS. It summarises our climate ambition,<br>and our commitment to managing our business to support<br>the goals of the Paris Agreement. It also outlines the<br>principles that guide our decisions and actions.<br>This Report outlines commitments and targets related to<br>our operations, financed emissions, sustainable finance, and<br>focus areas such as decarbonisation and resilience for both<br>our customers and our operations. Our targets and focus<br>areas established in our CCPS will continue under our CTP.<br>The CTP is summarised on page 37 and a full copy is on<br>our website.<br>TABLE 5: OVERVIEW OF WESTPAC'S BUSINESS MODEL,<br>STRATEGY, AND VALUE CHAIN<br>Term Description<br>Business<br>model<br>Our business model as a bank is built around<br>financial intermediation, accepting deposits,<br>raising wholesale funding, and offering lending<br>and financing solutions. Aligned to this is the<br>provision of savings and transaction accounts<br>and facilitating payments.<br>Strategy Westpac's corporate strategy is guided by<br>its purpose – Taking action now to create a<br>better future – and is framed by five priorities:<br>delivering for our customers every day, our<br>people being the best team and trusted<br>experts, embracing change to simplify and<br>deliver what matters most, managing risk to<br>be safe and strong and driving performance<br>through execution excellence.<br>Value<br>chain<br>Our value chain represents the activities that<br>support our business model and strategy.<br>In summary it includes:<br> • Funding – deposits and wholesale<br> • Operations – technology and people<br> • Lending – loans and other finance<br>to customers<br> • Other products/services –<br>transactions, markets<br> • Marketing/Sales – including third parties<br> • Support – Customer service<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 14<br>CLIMATE-RELATED RISKS AND OPPORTUNITIES<br>Climate-related risks<br>and opportunities<br>Climate-related risks and opportunities typically manifest<br>as physical and transition impacts, and while we do not<br>anticipate they will impact our business model, we expect<br>they will affect our strategy and value chain, as well as<br>our customers.<br>Climate-related risks are the negative impacts that climate<br>change may cause, while opportunities are the positive<br>effects that can result from climate-related mitigation<br>and adaptation.<br>Physical risks and opportunities<br>Physical risks result from extreme weather events, including<br>bushfires and floods (acute risks), as well as from gradual,<br>long-term changes in climate patterns such as temperature,<br>rainfall and rising sea levels (chronic risks). Physical<br>opportunities stem from our ability, and that of our<br>customers, to mitigate and adapt to these changes.<br>Transition risks and opportunities<br>Transition risks and opportunities arise from shifting to a<br>lower carbon economy, affecting our, and our customers<br>finances, operations and reputation. They stem from<br>changes in policy, technology, regulation and market<br>dynamics from the responses to climate change.<br>Liability risks can arise from legal or regulatory action, from<br>failing to adequately consider or respond to climate-related<br>physical and transition risks, changes in regulation such as<br>AASB and NZ CS, or stakeholder expectations.<br>Our climate scenarios<br>We use three climate scenarios when considering the time<br>horizons over which climate-related risks and opportunities<br>may materialise.<br>The below table summarises our scenarios, with more<br>information on page 109.<br>TABLE 6: CLIMATE SCENARIOS<br>Scenario<br>Name<br>Temperature<br>rise Description<br>Net Zero 2050<br>(RCP2.6)<br>1.5°C An orderly transition to net-zero<br>by 2050, aligned to the Paris<br>Agreement temperature goals.<br> • Higher transition risk and<br>lower physical risk.<br>Delayed<br>Transition<br>(RCP4.5)<br>Well below<br>2°C<br>A disorderly transition assumes<br>a delay in policy responses<br>to address global greenhouse<br>gas emissions, requiring strong<br>policies from 2030 to limit<br>global warming to well below<br>2 degrees.<br> • Higher transition risk and<br>moderate physical risk.<br>Current<br>Policies<br>(RCP8.5)<br>3°C or<br>greater<br>A “business as usual” trajectory,<br>where emissions continue to rise<br>throughout the century and no<br>further measures are introduced<br>to address global warming.<br> • Lower transition risk and<br>higher physical risk.<br>Time horizons for climate reporting<br>For climate reporting, we use specific time horizons to<br>disclose climate-related risks, opportunities, and anticipated<br>financial impacts.<br>These definitions are linked to our planning horizons and<br>business cycle. We also refer to the current period which<br>typically reflects the reporting year (FY25).<br>We consider longer timeframes (such as 2050) when<br>assessing climate-related risks and opportunities, these are<br>classified in our disclosures as long-term.<br>Where appropriate to provide clarity, outputs of scenario<br>analyses and climate risk assessments may include specific<br>year horizons in lieu of referencing time horizons.<br>TABLE 7: TIME HORIZONS FOR CLIMATE REPORTING<br>Horizon Years Aligns with<br>Short-term<br>Less<br>than 1<br>year<br> • Annual business forecast cycle,<br>including planning and investment<br>allocation; and<br> • Short-term variable reward.<br>Medium-term<br>1 to <5<br>years<br> • Board Strategy Review (BSR) cycle<br>(≤5 years);<br> • Internal Capital Adequacy Assessment<br>Process (3 years);<br> • The contractual or behavioural duration<br>of most of our lending and funding (< 5<br>years); and<br> • Investment time horizons of primary<br>users of this Report (typically < 5 years).<br>Long-term<br>5 years<br>and<br>more<br> • Outer range of BSR planning cycle (5<br>years); and<br> • Time period where significant climate<br>risks may emerge >10 years.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED RISKS AND OPPORTUNITIES<br>15<br>Approach to climate-related risk and<br>opportunity analysis<br>Climate-related risk and opportunity identification<br>In FY25, we expanded on our process for identifying climate-related risks that could reasonably be expected to impact<br>Westpac’s prospects, drawing on a combination of internal<br>reviews, stakeholder feedback and peer comparisons.<br>Identification of our climate-related opportunities was<br>informed by a review of international frameworks for<br>assessing and categorising climate-related opportunities,<br>peer analysis, and a series of cross-functional workshops to<br>generate new ideas focused on how to support customers<br>with new products and services.<br>The work that informed the development of both our CCPS<br>and new CTP actions has been considered in identifying<br>the climate-related risks and opportunities highlighted in<br>this section.<br>Next year, as we continue to refine our approach and<br>understanding we expect the list of disclosed climate-related risks and opportunities to evolve.<br>Climate-related scenarios analysis<br>We analysed our exposure to the identified risks using<br>scenarios and time horizons outlined in Table 6 and Table<br>7 and undertook the approach described on page 42 to 44 in<br>the Risk Management Section.<br>The analysis considered the extent to which elements of our<br>portfolio are exposed to higher physical and transition risks<br>under specific scenarios and time horizons.<br>While this analysis was mainly used to describe the time<br>horizon of occurrence for risk, our findings have also helped<br>inform how risks and opportunities may reasonably be<br>anticipated to impact Westpac.<br>We considered how climate scenarios may impact<br>opportunities as part of a series of cross-functional workshops.<br>Concentration of exposure to climate-related risks<br>and opportunities<br>In FY25 we have considered potential concentrations of<br>exposure to physical and transition risks and opportunities<br>through our application of climate scenarios, with<br>information presented from page 45 to 49 and page 31<br>to 33.<br>Reasonably anticipated impacts and current<br>mitigation and adaptation efforts<br>We outline the principal climate-related risks and<br>opportunities and their existing and reasonably foreseeable<br>impacts on the following pages. We also outline our current<br>mitigation and adaptation efforts in reference to the three<br>focus areas of our CCPS (refer to page 19 to 33). Where<br>mitigation and adaptation efforts are within our control<br>such as managing our operations or monitoring exposures,<br>we have categorised them as direct. Where efforts apply<br>to working with customers or our supply chain, we have<br>categorised them as indirect.<br>Sector and geography of climate-related risks<br>and opportunities<br>Given the nature and mix of our business, all climate-related<br>risks and opportunities identified are considered within the<br>context of the banking sector.<br>As our activities are centred in Australia and New Zealand,<br>our exposure to climate-related risks and opportunities is<br>concentrated in these geographies.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED RISKS AND OPPORTUNITIES<br>16<br>Climate-related risks<br>TABLE 8: CLIMATE-RELATED RISKS WITH REASONABLY ANTICIPATED IMPACTS TO WESTPAC<br>Risk Description of risk impact Reasonably anticipated impact to Westpaca Current mitigation and adaptation efforts aligned to our<br>focus areas<br>Transition-related impacts on<br>customers, operations and revenue from<br>policy, technology, or market shifts<br>Category: Transition<br>Time horizons of occurrence<br>b<br> • Net-zero 2050 (RCP2.6): Short-,<br>Medium-, and Long-term<br> • Delayed Transition<br>(RCP4.5): Long-term<br> • Current Policies (RCP8.5): N/Ac<br>Changing consumer preferences and<br>policy shifts may impact our customers’<br>profitability and therefore credit quality.<br>Strategy<br> • Portfolio adjustment due to exposure to sectors that are<br>more likely to be impacted by transition risks.<br>Value chain<br> • Customer asset values may decline as demand for higher<br>emissions goods decreases, reducing debts recovery.<br>Customer insurance recoveries may also be lower;<br> • Increased impairment charges; and<br> • Loss of customers impacting earnings.<br>SUPPORTING CUSTOMERS' TRANSITION AND RESILIENCE<br> • Engaging with customers to understand their<br>decarbonisation strategies and identifying decarbonisation<br>challenges (indirect);<br> • Supporting customers with resilience and adaptation<br>through our products and services (indirect);<br> • Monitoring exposure to industries with elevated transition<br>risk (direct) (see Table 17 to 19); and<br> • Progressing to achieve our financed emissions sector<br>targets in carbon-intensive emissions sectors (direct).<br>Acute and chronic physical risk impacts<br>to our customers’ facilities, properties,<br>operations, or supply chains<br>Category: Physical<br>Time horizons of occurrence<br>b<br> • All scenarios: Short-, Medium-,<br>and Long-term<br>Severe weather events (e.g., flood,<br>cyclones) and longer-term shifts in<br>climatic patterns (e.g., heat stress, sea<br>level rise) can damage assets used as<br>collateral for our lending or disrupt<br>our customers’ operations, leading to<br>decreased credit quality.<br>Strategy<br> • Portfolio adjustment due to exposure to sectors and areas<br>that are more likely to be impacted by physical risk; and<br> • Increased importance of climate considerations in<br>risk assessments.<br>Value chain<br> • Increased hardship and delinquencies related to lending;<br> • Customer asset values may decline as regions are exposed<br>to more frequent and/or severe acute events, reducing debt<br>recovery. Also includes lower levels of insurance;<br> • Increased impairment charges; and<br> • Loss of customers impacting earnings.<br>SUPPORTING CUSTOMERS' TRANSITION AND RESILIENCE<br> • Supporting customers with resilience and adaptation<br>through our products and services (indirect) (see page<br>33); and<br> • Monitoring exposure to regions of elevated physical risk<br>(direct) (see Table 20 to 21).<br>COLLABORATING FOR IMPACT<br> • Industry discussions on insurance availability /<br>transparency (indirect).<br>Acute and chronic physical risk impacts<br>to our operations and supply chain<br>Category: Physical<br>Time horizons of occurrence<br>b<br> • All scenarios: Short-, Medium-,<br>and Long-term<br>Severe weather events (e.g., flood,<br>cyclones) and longer-term shifts in<br>climatic patterns (e.g., heat stress, sea<br>level rise) can impact our ability to<br>provide services to customers or disrupt<br>our supply chain, leading to operational<br>impacts such as increased recovery costs<br>or reduced service.<br>Strategy<br> • No anticipated impact to strategy.<br>Value chain<br> • Disruption to operations and supply chain; and<br> • Higher costs to restore services or support customers.<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS<br> • Understanding exposure of our operations to physical risks,<br>and strengthening resilience (direct);<br> • Considering climate risks in lease agreements (direct); and<br> • Business continuity plans and testing (direct).<br>Failure to recognise or address climate<br>change risks or opportunities<br>Category: Transition & Physical<br>Time horizons of occurrence<br>b<br> • All scenarios: Short-, Medium-,<br>and Long-term<br>Reputational damage, such as loss of<br>stakeholder or customer trust if Westpac<br>fails to or is perceived to not act on<br>or respond to physical or transition<br>climate-related risks. Loss of customer<br>confidence or reduced investor support<br>may result in decreased market value or<br>business opportunities.<br>Strategy<br> • Greater expectations to strategically respond to evolving<br>climate-related risks and opportunities.<br>Value chain<br> • Negative publicity could reduce customer trust, attract<br>protest activity; and<br> • Loss of customers and business impacting earnings.<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS<br> • Operational emissions targets (direct).<br>SUPPORTING CUSTOMERS' TRANSITION AND RESILIENCE<br> • Carbon-Intensive Sector Requirements (direct);<br> • Financed emissions sector targets (direct); and<br> • Reporting on progress (direct).<br>COLLABORATING FOR IMPACT<br> • Collaborating with stakeholders on initiatives towards net-zero and climate resilience (indirect).<br>a. Our analysis has not identified any reasonably anticipated impacts to Westpac's business model in any scenario.<br>b. Based on scenarios outlined in Climate-related Scenario Analysis section.<br>c. Under a Current Policies scenario transition risks are minimal and not anticipated to increase beyond current levels – for detail on climate scenarios see Table 6 and Table 16.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED RISKS AND OPPORTUNITIES<br>17<br>Climate-related opportunities<br>TABLE 9: CLIMATE-RELATED OPPORTUNITIES WITH REASONABLY ANTICIPATED IMPACTS TO WESTPAC<br>Opportunity Description of opportunity impact Reasonably anticipated impact to Westpaca Current mitigation and adaptation efforts aligned to our<br>focus areas<br>Improve customer relationships<br>Category: Transition & Physical<br>Time horizons of opportunity occurrence<br>b<br> • All scenarios: Short-, Medium-,<br>and Long-term<br>Through engagement, strengthen<br>customer relationships by helping them<br>better identify and manage climate-related risks.<br>Strategy<br> • Adjustment in strategy due to changes in customer<br>engagement approach.<br>Value chain<br> • Improved customer service and deeper customer<br>relationships; and<br> • Increase in activity and/or market share<br>(increasing revenue).<br>SUPPORTING CUSTOMERS' TRANSITION AND RESILIENCE<br> • Engaging with customers to understand their climate<br>strategies and challenges (indirect); and<br> • Building banker capability to enhance conversations with<br>customers (direct).<br>Increase revenue streams by developing<br>and providing climate-related products<br>and services for customers<br>Category: Transition & Physical<br>Time horizons of opportunity occurrence<br>b<br> • All scenarios: Short-, Medium-,<br>and Long-term<br>Selling more climate-related products<br>and services to assist customers respond<br>to their physical and transition climate<br>change risks.<br>Enhancing customer resilience and their<br>transition plans improves their risk<br>profile and ultimately the quality of<br>our lending.<br>Strategy<br> • Changes in our product mix as demand for climate-related<br>products and services changes.<br>Value chain<br> • Increase customers' resilience, positively<br>impacting earnings;<br> • Increased revenue from products that support climate-related activities; and<br> • Decrease in financed emissions.<br>SUPPORTING CUSTOMERS' TRANSITION AND RESILIENCE<br> • Engaging with customers to understand their climate<br>strategies and challenges (indirect);<br> • Applying our Sustainable Finance Framework to increase<br>sustainable financing (direct); and<br> • Develop products and services to support customers<br>achieve their climate-related goals (direct).<br>Strengthening our operational<br>resilience to help us remain<br>available to customers through climate-related events.<br>Category: Transition & Physical<br>Time horizons of opportunity occurrence<br>b<br> • All scenarios: Short-, Medium-,<br>and Long-term<br>Strengthening operational resilience,<br>including to the impacts of climate-related events, can help us prepare<br>for, respond to, recover and learn<br>from disruptions.<br>Building climate resilience into our<br>supply chain by better managing<br>climate-related risks linked to our<br>service providers.<br>Strategy<br> • No anticipated impact to strategy.<br>Value chain<br> • Lower costs from increased resilience to disruptions; and<br> • Increased public trust and confidence.<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS<br> • Strengthening how operational resilience processes,<br>systems, and controls consider climate-related risks and<br>opportunities (direct).<br>a. Our analysis has not identified any reasonably anticipated impacts to Westpac's business model in any scenario.<br>b. Based on scenarios outlined in Climate-related Scenario Analysis section.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED RISKS AND OPPORTUNITIES<br>18<br>Current impacts<br>Climate-related risks and opportunities are already<br>impacting Westpac’s strategy and value chain.<br>It is important to note that, while the effects and potential<br>consequences of climate change are evident, it is difficult<br>to determine its impact on any event. While broader effects<br>are likely to increase, pinpointing its influence on incidents<br>will remain challenging. As such, careful consideration is<br>required when evaluating climate-related impacts on our<br>operations and reporting.<br>We are taking steps now to adapt to the challenges of<br>a changing climate. While we currently assess the overall<br>impact of climate change on our financial statements (see<br>page 34), we have not yet analysed the financial impacts<br>from specific climate-related risks or opportunities or their<br>long-term financial implications.<br>Some impacts from climate-related risks and opportunities<br>experienced over the year have included:<br> • Our response to major weather events, including<br>supporting affected customers (physical risk);<br> • Strengthening climate risk management processes<br>(physical and transition risk);<br> • Broadening climate risk (physical and transition risk)<br>assessments across more customers, especially in<br>carbon-intensive sectors; and<br> • Significant growth in our sustainable finance and bond<br>facilitation (transition risk).<br>The above are not considered material to Westpac's<br>financial statements as described on page 34.<br>How we are responding<br>Our strategic response to climate-related risks and<br>opportunities in FY25 is described in the sections below, in<br>line with three focus areas of our CCPS.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 19<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS<br>RISK<br> • Acute and chronic physical risk impacts to our<br>operations and supply chain. (refer to page 22)<br> • Failure to recognise or address climate change risks<br>or opportunities (refer to page 20)<br>OPPORTUNITY<br> • Strengthening our operational resilience to help<br>us remain available to customers through climate-related events (refer to page 22)<br>Our operational emissions targets<br>To become a net-zero climate resilient bank it is<br>important we lead by example – working to reduce our<br>operational emissions while continuing to strengthen our<br>operational resilience.<br>Our targets to track progress were set on a 2021 baseline<br>and include:<br>1. Reduce scope 1 and 2 absolute emissions by 64%<br>by 2025;<br>2. Reduce scope 1 and 2 absolute emissions by 76% by<br>2030; and<br>3. Reduce upstream scope 3 absolute emissions by<br>50% 20301<br>.<br>Plans to achieve our operational emissions targets<br>Although we have already met our Scope 1 and 2<br>emissions reduction targets, we continue to pursue further<br>improvements. As we already source the equivalent of<br>100%2<br> renewable electricity for our direct operations, our<br>scope 2 emissions are near zero, so further reductions in<br>scope 1 emissions will be required.<br>A large contributor to our scope 1 emissions is from our<br>fleet vehicles, and so we aim to transition more of our<br>vehicles to electric or plug in hybrids, where appropriate.<br>Upstream scope 3 emissions3<br> make up a large part of our<br>operational footprint, so we are increasing our focus on<br>encouraging key suppliers to electrify their operations and<br>source renewable energy. We have also worked with energy<br>suppliers to make renewable energy offers available to<br>Australian employees.<br>Progress and analysis of trends<br>We have significantly reduced our scope 1 and 2 emissions<br>since 2021, achieving our first target (64% absolute<br>emissions reduction by 2025) in FY23, two years ahead<br>of plan. We surpassed our second target (76% absolute<br>emissions reduction by 2030) in FY24, six years ahead<br>of plan.<br>In FY25, our scope 1 and 2 emissions decreased 22%<br>compared to FY244<br>, representing a total reduction of 89%<br>from our 2021 baseline. This decline primarily resulted<br>from having more hybrid and electric vehicles in our<br>fleets, as well as our continued commitment to sourcing<br>the equivalent of 100%2<br> renewable electricity for our<br>direct operations.<br>Our upstream scope 3 emissions were relatively stable<br>(down 2%) in FY25 compared to FY245<br> and were 42%<br>lower than the 2021 baseline year. The reduction in<br>upstream scope 3 emissions from our 2021 baseline has<br>been driven primarily by Westpac’s renewables program<br>and the increased uptake of renewable electricity sourcing<br>across our supply chain. Additional contributing factors<br>include the appointment of a new secure waste provider,<br>which has enhanced the traceability of recycled paper,<br>as well as travel remaining below pre-COVID levels. Over<br>FY25, emissions remained stable with reductions primarily<br>attributed to lower emission factors, rather than changes in<br>consumption patterns or employee behaviour.<br>For more information about our operational emissions, refer<br>to the Metrics and Targets section on page 52 to 53.<br>Updates to our emissions<br>Last year we commenced a review of our scope 3 upstream<br>emissions boundary in response to new mandatory<br>reporting requirements. We are in the process of finalising<br>this assessment and currently anticipate it will result in a<br>greater than 700% rise of our scope 3 upstream emissions.<br>This increase is due to a more comprehensive evaluation of<br>emissions from purchased goods and services. We expect to<br>finalise the assessment and share results in FY26.<br>FIGURE 4: WESTPAC'S OPERATIONAL EMISSIONS<br>(MARKET-BASED) (TONNES OF CO2<br> EQUIVALENT)<br>133,570<br>107,408<br>82,092<br>66,220 63,146<br>Total Scope 1, 2 and 3 upstream emissions¹<br>2021a 2022 2023 2024 2025<br>a. The 2021 reported emissions (above) differ from our 2021 baselines<br>for scope 1, 2 and scope 3 upstream targets as the baseline was<br>adjusted for COVID pandemic and other factors.<br>1 The Appendix section 'Methodology – Operational Emissions – Scope 1, 2 and Upstream Scope 3' contains the scope 3 upstream emissions categories included.<br>2 Currently 96% of our renewable electricity is from local sources. For our Pacific Island operations, we over-surrendered Large-scale Generation Certificates (LGCs) in the Australian market, due to challenges of developing local renewable energy<br>infrastructure and the lack of renewable energy certificate markets.<br>3 2021 baselines for scope 1, 2 and scope 3 upstream targets adjusted for COVID pandemic and other impacts.<br>4 Prior period progress: our scope 1 and 2 emissions declined by 59% in FY24 compared to FY23.<br>5 Prior period progress: our scope 3 upstream emissions declined by 6% in FY24 compared to FY23.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS<br>20<br>Actions supporting our targets<br>Actions that support our targets to reduce our scope 1,<br>scope 2 and upstream scope 3 emissions were outlined<br>in our CCPS, and progress is summarised below. The<br>actions presented in Table 10 are not formal climate-related<br>targets for the purposes of the Climate Transition Plan and<br>associated climate-related reporting. Moving forward, we<br>will report progress in line with our Climate Transition Plan.<br>TABLE 10: ACTIONS SUPPORTING OUR TARGETS<br>ACTIONS 2025 PROGRESS<br>Source the equivalent of<br>100% of our electricity<br>demand from renewables<br> • Achieved, refer to section “Approach<br>to renewables” for details.<br>Develop program to<br>support Australian<br>employees reduce their<br>home emissions.<br> • Launched employee renewables<br>offers in partnership with Energy<br>Australia and Flow Power; and<br> • Continued our incentive program<br>to promote the uptake of<br>GreenPower (100% renewable<br>electricity) by employees.<br>Transition<br>our<br>Australian<br>and New<br>Zealand<br>fleets to<br>100%<br>electric (EVs)<br>or plug-in<br>hybrid<br>(PHEVs)<br>vehicles by<br>2030a<br>Australia • EV pilot continues, with 8% of our<br>fleet now transitioned to EVs (0% in<br>2024); and<br> • Fuel efficiency has improved through<br>the transition of 63% of our fleet to<br>hybrid vehicles (19% in 2024).<br>New<br>Zealand<br> • 98.5% of our fleet has been<br>transitioned to EVs and PHEVsb (97%<br>in 2024). In FY25, we installed 32 EV<br>chargers across 8 sites to support<br>this transition.<br>Support key suppliers<br>with their emissions<br>reduction strategies<br>and consider supplier<br>climate strategies in<br>sourcing decisions<br> • Continued supplier engagement; and<br> • Expanded our assessment of key<br>suppliers' transition plans as part of<br>our responsible sourcing program.<br>Review our scope<br>3 upstream<br>emissions reporting<br> • Completed the review of our scope<br>3 upstream emissions boundary and<br>are finalising our assessmentc<br>.<br>ACTIONS 2025 PROGRESS<br>Develop our approach<br>to assessing/managing<br>physical climate risk to<br>our operational sites<br> • Assessed the physical climate risksd<br>to our direct property portfolio;<br> • Enhanced our Australian business<br>leasing processes to consider climate<br>matters in new and renewed<br>leases; and<br> • Continued to enhance climate risk<br>considerations in our operational<br>resilience practices.<br>Divert 80% of<br>operational waste from<br>landfill at Australian<br>commercial sites<br> • Diverted 82% of waste from<br>landfill (77% in 2024), primarily by<br>maintaining waste diversion streams,<br>including organics, secure paper,<br>commingled recycling, and specialty<br>recycling, across commercial sites;<br> • Conducted employee education on<br>organics diversion;<br> • Continued our coffee cup re-use<br>program and extended the program<br>to include re-use food containers at<br>Head Office; and<br> • Began collecting select hard-to-recycle materials at our Victoria and<br>New South Wales corporate offices.<br>Pilot embodied carbon<br>emission measurement<br>for capital works with<br>the aim to set an<br>emissions reduction<br>target for construction<br>and refurbishment work<br>by 2026<br> • Continued carbon pilot for our<br>Adelaide, South Australia office fit-out and are monitoring reductions<br>throughout the design stages; and<br> • Continuing to explore how we<br>measure embodied carbon and<br>will continue to align to best<br>practice standards (e.g., from the<br>Green Building Council). Updates will<br>be provided within our progress<br>towards achieving upstream scope 3<br>emissions reduction targets.<br>a. In Australia this may include hybrid where required to serve<br>customers in locations where charging infrastructure is not<br>widely available. Supply chain constraints and roll-out of charging<br>infrastructure at a scale are challenges to this action.<br>b. In December 2024, we converted 100% of our NZ passenger vehicle<br>fleet to Electric or PHEV. However, in May 2025, we piloted a Mobile<br>Community Banking program to support customers in areas without<br>a permanent branch. This pilot now operates three commercial diesel<br>vehicles. Including these vans, our total vehicle fleet was 98.5%<br>Electric or PHEV at 30 September 2025.<br>c. Refer to page 19 for more detail.<br>d. Under IPCC climate scenarios SSP1/RCP2.6, SSP2/RCP4.5, SSP5/RCP8.5.<br>Approach to renewables<br>We have sourced the equivalent of 100% of our global<br>electricity demand from renewable sources1<br> since midway<br>through FY23 and continue to maintain this in FY25.<br>As we procure most of our electricity from the grid,<br>we purchase renewable electricity contracts equivalent to<br>the amount of electricity we consume, including directly<br>with local electricity producers (Virtual Power Purchase<br>Agreements (VPPA)) or with electricity retailers (contracts<br>with electricity suppliers) when possible, otherwise, through<br>renewable energy attribute certificates (EACs), unbundled<br>or separated from the electricity supply source.<br>For FY25, our sources of renewable electricity included<br>VPPAs (84%), retail supply contracts (15%) and unbundled<br>EACs (1%).<br>We have sought to support the development of new<br>renewables capacity in the grid where possible, rather than<br>purchasing from existing generation facilities. This effort<br>involved years of collaboration with suppliers to support the<br>development of the Bomen Solar Farm in Wagga Wagga,<br>New South Wales and the Berri Solar Farm and Battery in<br>South Australia.<br>We have also sought to source renewable electricity in<br>markets where it is consumed. Currently 96% of our<br>renewable electricity is from local sources and we aim to<br>reach 100%, but this is contingent on sourcing sufficient<br>capacity in Fiji and Papua New Guinea (PNG) where<br>renewable electricity markets are emerging.<br>1 The target to source the equivalent of 100% of our global electricity demand from renewable sources was set in 2019. At that time, we were not sourcing any of our global electricity demand from renewable sources.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS<br>21<br>Our renewable strategy goes beyond sourcing renewable<br>electricity, it’s also about giving back to the communities<br>that host the facilities. We have worked with our partners to<br>establish community funds supporting local initiatives.<br>In FY25 this included:<br> • Planted a further 4,600 seedlings in the valley<br>opposite Bomen Solar Farm, marking the completion<br>of the ~50,000 trees and shrubs regreening initiative<br>since 2021;<br> • Supported programs at Wagga Wagga’s Mt Austin High<br>School, specifically, 42 students graduated from the<br>Transition Program, supporting post-school pathways,<br>and 17 students participated in the Girls @ the<br>Centre Program, designed to help girls stay engaged<br>in education;<br> • Installation of two electric vehicles chargers within the<br>Berri local community; and<br> • Revegetation of land adjacent to the Berri Solar Farm,<br>planting 100 trees and 300 shrubs.<br>Our emissions intensity<br>We report two emissions intensity metrics reflecting the<br>nature of our business as a bank.<br>The first metric measures operational emissions per full<br>time equivalent (FTE) employee (for our total scope 1 and<br>2 emissions). This measure provides a perspective on the<br>organisation's carbon efficiency relative to its footprint and<br>workforce size. Refer to Table 24 in the Metrics and Targets<br>section for more information on this metric.<br>The second metric measures financed emissions per dollar<br>of lending (for the total attributed share of our customers'<br>scope 1, 2, and 3 emissions). Given the scale difference<br>between our financed emissions and operational emissions,<br>this distinction is essential. This measure provides a<br>perspective of the emissions intensity of our loan portfolio.<br>Refer to Table 29 in the Metrics and Targets section for<br>more information on this metric.<br>The combination of metrics also reflects the nature of the<br>direct and indirect levers available to us to manage our<br>emissions intensity: operational emissions can be reduced<br>through direct actions including electrification and energy<br>efficiency upgrades, while financed emissions require more<br>indirect approaches such as portfolio alignment and<br>client engagement.<br>Offsetting emissions<br>We recognise the role that carbon credits will play in<br>achieving net-zero.<br>Operational emissions<br>In FY24, we used carbon credits to offset residual<br>operational emissions, refer to Table 25 on page 52. Where<br>we consider appropriate, we will continue to purchase and<br>retire carbon credits to help offset our residual scope 1,<br>scope 2 and selected upstream scope 3 emissions.<br>In FY25, we decided to withdraw from Climate Active<br>certification under the Australian Government’s Climate<br>Active Carbon Neutral Standard for Organisations. We<br>acknowledge the important role Climate Active plays in<br>enabling Australian businesses to take climate action. The<br>decision was made due to changes in the sustainability<br>reporting landscape and ongoing consultations regarding<br>the Climate Active Standards. We will review our<br>participation after the updated Climate Active Standards<br>are released.<br>Where we purchase credits, we aim to do so from projects<br>in our core markets and review our purchased carbon<br>credits for quality. We aim to support the Australian Carbon<br>Credit Units (ACCUs) market as it continues to make the<br>improvements required in transparency and other areas, as<br>identified in 'The Independent Review of Australian Carbon<br>Credit Units (ACCU Review, 2022)'.<br>The credits we retired for our Australian emission footprint<br>were 100% ACCUs for 2024 and are expected to be 100%<br>ACCUs for the 2025 period.<br>In New Zealand, we are certified under the Toitū Net Carbon<br>Zero programme. Westpac New Zealand has also offset<br>certain residual operational emissions since 2019, in line<br>with Toitū Net Carbon Zero programme requirements.<br>In Australia and New Zealand, the purchased units are not<br>verified independently beyond their certification under the<br>ACCU and Toitū Net Carbon Zero schemes, respectively.<br>Emissions reduction targets<br>Operational targets are absolute emission reduction targets<br>set by applying a market-based accounting approach.<br>Carbon offsets are not considered.<br>Our plans to reduce scope 3 financed emissions do not<br>include the use of carbon credits.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>NET-ZERO, CLIMATE RESILIENT OPERATIONS<br>22<br>Physical climate resilience<br>of our operations<br>As a bank, maintaining resilience, and being available for our<br>customers is central to how we are organised and operate.<br>Resilience considers our ability to prepare for, respond to,<br>recover, and learn from disruptions, including those related<br>to climate change.<br>We already have detailed processes, systems and controls<br>to support operational resilience and we are focused on<br>further strengthening how these consider climate-related<br>risks and opportunities.<br>There are also several new and incoming regulatory<br>changes in Australia supporting these efforts. These<br>include the Australian Prudential Regulation Authority’s<br>(APRA) Prudential Standards CPS 230 Operational<br>Risk Management and Prudential Practice Guide CPG<br>229 Climate Change Financial Risks along with the<br>upcoming AASB S2. These developments will have<br>several implications for Westpac including enhancing<br>Board oversight of climate change risk and resilience and<br>developing more comprehensive scenario analysis across<br>the bank’s operations, lending, and value chain.<br>On 1 July 2025, CPS 230 became effective, with an aim<br>of strengthening the management of operational risks,<br>maintaining critical operations through disruptions, and<br>better management of risks linked to service providers. CPS<br>230 has already contributed to improving our management<br>of resilience and we will use CPG 229 to further embed<br>specific climate resilience requirements.<br>Testing our operations<br>In July 2025, the Executive Team and Board participated in<br>a crisis exercise to test the Group’s response to a severe<br>weather event that triggered a multi-day power outage<br>in Sydney. This simulation tested the effectiveness of our<br>critical operations in maintaining customer services during<br>a major climate-related disruption. The scenario considered<br>natural hazard and climate risk data for scenarios RCP2.6,<br>RCP4.5, and RCP8.5.<br>Improving the resilience of our physical<br>property footprint<br>In 2025, we implemented a new climate risk assessment<br>tool to enhance our understanding of natural hazard and<br>climate change risk related to our operational footprint.<br>This tool evaluates the effects of climate change on<br>our branches and corporate sites worldwide considering<br>multiple scenarios and climate change stressors over the<br>short, medium and long term. We also incorporated climate<br>risk into our leasing processes so that assessments of<br>natural hazards and climate change risks are reflected in<br>our decision making.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 23<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO<br>BUILD THEIR CLIMATE RESILIENCE<br>RISK<br> • Transition-related impacts on customers, operations<br>and revenue from policy, technology or market shifts<br>(refer to page 26)<br> • Acute and chronic physical risk impacts to our<br>customers’ facilities, properties, operations, or supply<br>chains (refer to page 33)<br> • Failure to recognise or address climate change risks<br>or opportunities (refer to page 23)<br>OPPORTUNITY<br> • Improving customer relationships (refer to page 28)<br> • Increase revenue streams by developing and<br>providing climate-related products and services for<br>customers (refer to page 31)<br>To achieve our ambition to be a net-zero, climate resilient<br>bank, it is vital we work to reduce our scope 3 financed<br>emissions – our largest emissions category. Accounting<br>for around 99% of our overall emissions account, financed<br>emissions represent our share of the greenhouse gases<br>arising from the projects, companies, households and<br>activities we finance.<br>As financed emissions stem from our customers, we need to<br>partner with them and support their decarbonisation.<br>Our approach includes:<br> • Calculating our financed emissions for the whole Group<br>so we can understand our impact and where we can<br>focus our efforts;<br> • Financed emissions sector targets: we have 13 targets<br>across key industry sectors that seek to reduce<br>emissions or the emissions intensity of our lending;<br> • Engaging with customers to support their transition. This<br>typically includes discussions on climate transition plans,<br>sustainable finance options, and industry benchmarking.<br>In some circumstances, these discussions have also<br>included considerations on natural capital; and<br> • Identifying the main decarbonisation levers across<br>industries to support bankers and customers with<br>their plans.<br>In addition, we have Carbon-Intensive Sector Requirements<br>for customers involved in certain sectors. These restrict the<br>activities we are prepared to support and are accompanied<br>by more detailed evaluations of their transition plans.<br>Further information is provided from page 26.<br>Our scope 3 financed emissions<br>We estimate the financed emissions and emissions intensity<br>of our lending including loans to institutions, corporates<br>and business customers along with residential mortgage<br>customers. Our estimates represent around 73% of our<br>Total Committed Exposure (TCE) at 30 September 2024 (we<br>report one year in arrears to enable the use of customers’<br>data more closely aligned to the reported period).<br>Our estimates are based on available data and<br>methodologies (refer to Section 'Methodology – Scope 3<br>financed emissions' in the Appendix for more detail) and<br>limitations exist in both the data and the applicability of<br>existing methodologies to different companies or sectors.<br>We estimate scope 1 and 2 emissions of customers, and<br>incorporate customers' scope 3 emissions in sectors only<br>where they are particularly relevant and reliable data exists.<br>Some customers and facilities are excluded due to<br>data availability, or difficulty in measurement, including<br>(among others) lending to governments, government-owned<br>entities, and certain finance customers, non-mortgage<br>personal lending, and customers in Fiji and PNG. Our<br>estimation process references recognised methodologies<br>and data approaches, including the Partnership for Carbon<br>Accounting Financials (PCAF).<br>It is important to exercise care when comparing financed<br>emissions data over time, as advances in modelling and<br>methodologies, and the use of different data sources, can<br>affect estimates.<br>Refer to Table 29 to 31 and Figure 5 for our FY24 financed<br>emissions estimates and sector exposures.<br>Progress on our scope 3 financed emissions1<br>This year, we estimated the absolute financed emissions of<br>our portfolio for FY24 at 31.6 MtCO2-e (customers' scope 1<br>and 2), up 21% on FY23. The rise was primarily due to:<br> • Adoption of higher-quality source for emissions factors<br>used to estimate customer emissions; and<br> • An improvement in the share of Business and<br>Institutional lending for which we estimate financed<br>emissions (excluding Government, administration and<br>defence, Finance and insurance, and Other sectors),<br>rising to 99% of TCE from 93% in FY23, amid overall 3%<br>TCE growth.<br>The scope 1 and 2 emissions intensity of our portfolio<br>financed emissions for FY24 increased by around 12% from<br>FY23. Excluding the change in emissions factors data source,<br>the emissions intensity for FY24 was around 14% lower<br>than FY23.<br>1 The input of lending into the estimation of financed emissions varies by segment: $ TCE for Commercial Real Estate; $ TCE for Business, commercial and institutional lending; $ outstanding balance for Australian residential mortgages; and, $ TCE<br>for New Zealand residential mortgages. Australian dollars.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>24<br>FIGURE 5: WESTPAC'S FINANCED EMISSIONS (FE)<br>AND TOTAL COMMITTED EXPOSURE (TCE) BY<br>SECTOR (FY24)1,2<br>0.9 (3%)<br>5.7 (18%)<br>2.1 (7%)<br>0.2 (1%)<br>5.2 (17%)<br>2.0 (6%)<br>0.6<br>(2%)<br>0.1<br>(0%)<br>0.5<br>(2%)<br>0.9 (3%)<br>2.1 (7%)<br>2.9 (9%)<br>5.0 (16%)<br>0.1 (0%)<br>3.3 (10%)<br>Accommodation, cafes & restaurants Agriculture, forestry & fishing<br>Construction Finance & insurance<br>Manufacturing Mining<br>Property – Secured Commercial Real Estate Property – Other<br>Property services & business services Services<br>Trade Transport & storage<br>Utilities Other<br>Retail Lending – Residential Mortgages<br>FY24 ABSOLUTE<br>SCOPE 1 & 2<br>FINANCED EMISSIONS:<br>31.6<br>MtCO2-e<br>FY24 GROUP<br>TOTAL COMMITTED<br>EXPOSURE (TCE):<br>$1,252b<br>* Excluded from estimation of FE Partially excluded from estimation of FE<br>1% 2% 1%<br>13% Finance and<br>insurance<br>2%<br>1%<br>7% Property<br>sector incl.<br>CRE and Other<br>2%<br>2%<br>3%<br>2%<br>2%<br>0%<br>50%<br>3%<br>Other<br>Retail<br>Lending<br>9% Government,<br>administration, and<br>defence<br>Our financed emissions<br>sector targets<br>We have set 13 interim 2030 emission targets which<br>represent a subset of our overall Group financed emissions,<br>accounting for up to 44%1,3<br> of total (2024: 54%). For the<br>Group, this is based on our share of customers’ scope 1 and<br>2 emissions.<br>While our sector targets and their boundaries remain<br>largely unchanged from prior year, the decrease in this ratio<br>reflects our adoption of a higher-quality source of emissions<br>factors, which led to increased estimates of emissions in<br>sectors without financed emissions sector targets.<br>Performance against our sector targets in FY24<br>In FY24 (our latest year of reporting), we recorded<br>an improved emissions profile in over 70% of the<br>sector targets.<br>It is important to note that while progress on our sector<br>targets has been positive in FY24, over time annual<br>movements may be volatile (either up or down) due to<br>factors out of our control.<br>For many of these targets, we source customer level<br>emissions data and calculate our share accordingly.<br>Customer level emissions are gathered from various<br>sources, including public reports, direct submissions, or<br>data aggregators.<br>Refer to page 25 for a summary of progress and page 59 to<br>68 for detail on each sector target.<br>Use of offsets<br>We have not purchased, nor do we intend to<br>purchase, carbon credits to meet our financed emissions<br>sector targets.<br>Plans to achieve our financed<br>emissions sector targets<br>Our plans to achieve our 2030 financed emissions sector<br>targets are tailored to the specific characteristics of each<br>sector and consider the size and profile of customers<br>included within each target’s scope.<br>Actions to support the achievement of our financed<br>emissions targets include:<br> • Targeted engagement with customers on their transition<br>plans and to share sector insights;<br> • Conducting ESG risk assessments for new and<br>renewed lending to determine if proposed exposures<br>are aligned with our targets and Sustainability<br>Customer Requirements;<br> • Industry-level engagement by facilitating and<br>participating in industry events to provide<br>decarbonisation insights and capabilities to our<br>customers; and<br> • Financing the transition by providing the products<br>and services that best meet our customers’ needs to<br>decarbonise and contribute to the broader transition.<br>For all sectors we are also focused on improving the<br>quality of data to improve our insights and to feed back to<br>customers to help them with their plans.<br>1 The input of lending into the estimation of financed emissions varies by segment: $ TCE for Commercial Real Estate; $ TCE for Business, commercial and institutional lending; $ outstanding balance for Australian residential mortgages; and, $<br>TCE for New Zealand residential mortgages. Australian dollars.<br>2 For more information refer to Table 29: Group Scope 3 Financed Emissions associated with loans, bonds, and undrawn loan commitments by sector (calculated using TCE) on page 54.<br>3 Up to 44% of our estimated scope 3 financed emissions from the scope 1 and 2 emissions of our customers at a Group level for FY24 relate to customers captured in our financed emissions sector targets.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>25<br>TABLE 11: OUR FINANCED EMISSIONS SECTOR TARGETS1<br> AND PROGRESS4<br>WESTPAC SECTOR 2030 TARGET AND MEASURE TYPE OF<br>TARGET<br>TEMPERATURE<br>ALIGNMENT<br>BASELINE (YEAR) PROGRESS vs BASELINE %<br>2024 2023<br>Power generation Reduce scope 1 and 2 emissions intensity by 62% to 0.10 tCO2-e/MWh Intensity 1.5°C 0.26 tCO2-e/MWh<br>(2021)<br>-38% -23%<br>Upstream oil<br>and gas<br>Reduce absolute scope 1, 2 and 3 financed emissions by 23% to<br>7.1 MtCO2-e<br>Absolute 1.5°C 9.2 MtCO2-e<br>(2021)<br>-55% -45%<br>Thermal coal mining Reduce absolute scope 1, 2, and 3 financed emissions by 100% to zero2 Absolute 1.5°C 2.46 MtCO2-e (2021) -94% -81%<br>Aviation (passenger<br>aircraft operators)<br>Reduce scope 1 emissions intensity by 60% to 76.4 gCO2-e/<br>passenger km<br>Intensity 1.5°C 190.6 gCO2-e/<br>passenger km (2021)<br>-47% -45%<br>Cement production Reduce scope 1 and 2 emissions intensity by 14% to 0.57 tCO2-e/tonne<br>of cement produced from in-house produced clinker<br>Intensity 1.5°C 0.66 tCO2-e/tonne<br>(2021) As at 30 September 2024, we are on track to achieve<br>our 2030 Cement, Steel and Aluminium targets and their<br>progress is below our reference sector pathway. Given the<br>small number of customers associated with each target<br>and to ensure their confidentiality, we are not disclosing<br>some figures. For further information on our sector targets,<br>please see page 63.<br>Steel production Reduce scope 1 and 2 emissions intensity to 1.42 tCO2-e/tonne of crude<br>steel produced<br>Intensity Well below<br>2°C<br>Not Reported<br>(2021)<br>Aluminium Reduce scope 1 and 2 emissions intensity to 10.35 tCO2-e/tonne of<br>primary aluminium produced<br>Intensity 1.5°C Not Reported<br>(2023)<br>Commercial real<br>estate (offices)<br>Reduce scope 1 and 2 emissions intensity for Australian and New<br>Zealand offices by 59% to 25 kgCO2-e/m2<br> net lettable area<br>Intensity 1.5°C 60 kgCO2-e/m2<br>net lettable area (2022)<br>-27% -18%<br>Residential real<br>estate (Australia)3<br>Reduce scope 1 and 2 emissions intensity by 56% to 15.2 kgCO2-e/m2<br>attributed floor area<br>Intensity 1.5°C 34.6 kgCO2-e/m2<br> attri-buted floor area3<br> (2022)<br>-14% -11%<br>Australia beef<br>and sheep<br>Reduce scope 1 land management emissions intensity by 9% to 20.66<br>tCO2-e/tonne of Fresh Weight (FW)<br>Intensity 1.5°C 22.62 tCO2-e/<br>tonne of FW (2021)<br>+2% +2%<br>Australia dairy Reduce scope 1 land management emissions intensity by 10% to 0.85<br>tCO2-e/tonne of Fat Protein Corrected Milk (FPCM)<br>Intensity 1.5°C 0.95 tCO2-e/<br>tonne of FPCM (2021)<br>-7% -7%<br>New Zealand beef<br>and sheep<br>Reduce scope 1 land management emissions intensity by 9% to 18.0<br>tCO2-e/tonne of FW<br>Intensity 1.5°C 19.8 tCO2-e/<br>tonne of FW (2021)<br>-4% +2%<br>New Zealand dairy Reduce scope 1 land management emissions intensity by 10% to 0.77<br>tCO2-e/tonne of FPCM<br>Intensity 1.5°C 0.86 tCO2-e/<br>tonne of FPCM (2021)<br>-6% -2%<br>1. UNEP FI Guidelines For Climate Target Setting for Banks version 4 recommends sector-level targets be set for all, or a substantial majority of, emissions-intensive sectors (where data and methodologies allow) that include<br>agriculture, aluminium, cement, coal, commercial and residential real estate, iron and steel, oil and gas, power generation and transport.<br>2. In FY24, we updated the Thermal Coal Mining target boundary to align with Version 2 of the UNEP FI Guidelines For Climate Target Setting, released April 2024. The boundary excludes dominant metallurgical coal mines that<br>produce a thermal coal by-product and diversified miners that produce a thermal coal product where their dominant activity is not thermal coal.<br>3. For the Residential Real Estate target, baseline and FY23 progress metrics are as at 31 August. FY24 progress metric is as at 30 September.<br>4. Additional detail on our financed emissions sector targets, including calculation methodologies, scope and boundaries, and other assumptions is outlined in Table 52, Table 53, and Section 4 in the Appendix. Refer to Table 32<br>for more information about recent limited changes to the methodologies of certain sector targets and associated impacts.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>26<br>Managing climate-related risks<br>in lending<br>Alongside our financed emissions sector targets, we use<br>various methods to mitigate climate-related risks and<br>impacts in our lending and bond facilitation including:<br> • Sustainability Customer Requirements that outline<br>lending restrictions and exclusions for larger business<br>customers; and<br> • ESG Risk Assessments that form part our due diligence<br>for new or renewed lending.<br>Further information on our climate risk management<br>approach is provided from page 39.<br>Carbon-Intensive Sector Requirements<br>In May 2025, we updated our Carbon-intensive Sector<br>Requirements (Requirements) which detail specific<br>requirements for certain larger business customers<br>operating in carbon-intensive sectors, further developing<br>the framework established by our previous Sector Positions<br>and last outlined in our 2024 Climate Report.<br>As part of this update, we introduced a Customer Climate<br>Transition Plan Evaluation (Customer CTP Evaluation) which<br>is detailed below. One component of this evaluation is<br>the requirement for in-scope customers requesting new or<br>renewed corporate lending and bond facilitation to have<br>interim scope 1 and 2 decarbonisation target/s aligned to<br>the well below 2°C goal of the Paris Agreement1<br> on an<br>absolute or intensity basis. Target alignment is assessed by<br>Westpac utilising a third-party reviewed approach.<br>These Requirements form part of our broader Sustainability<br>Customer Requirements available on our website and apply<br>to all Westpac Group operating locations.<br>Requirements as specified in our Sustainability<br>Customer Requirements<br>Westpac’s Requirements apply to customers whose<br>business involves the production and sale of thermal coal,<br>oil and gas, metallurgical coal, or coal-fired electricity power<br>generation. Adjacent sectors are out of scope (e.g., mining<br>service providers (including logistics), equipment providers,<br>and trading companies).<br>EXCLUDED ENTITY, ACTIVITY OR SECTOR2<br>Thermal Coal Mining<br> • We will not provide any project finance to new<br>(greenfield), expansions or extensions of thermal<br>coal mines.<br> • We will not provide corporate lending or bond facilitation<br>for institutional customers with ≥15% of their three-year<br>rolling average revenue coming directly from thermal<br>coal mining.<br>Metallurgical Coal<br> • We will not provide project finance for new (greenfield)<br>metallurgical coal mining projects.<br>Oil and Gas<br> • We will not provide project finance for oil and gas<br>exploration in offshore deep water and ultra-deep-water<br>or in high-risk frontier basins, Arctic and Antarctic<br>refuges, or for shale and oil sands development.<br> • Subject to National or Energy Security we will not<br>provide project finance or bond facilitation specifically<br>for the development of new (greenfield) oil and gas<br>extraction projects, including New Associated Dedicated<br>Infrastructure unless in accordance with the IEA Net-Zero by 2050 scenario.<br>Coal-fired Power Generation<br> • We will not provide project finance for new (greenfield)<br>coal-fired power generation facilities.<br>RESTRICTED ENTITY, ACTIVITY OR SECTOR3<br>Customer CTP Evaluation<br>We actively engage with our customers to support their<br>transition to net-zero. From 30 September 2025, new<br>or renewed corporate lending or bond facilitation for<br>customers whose business involves the production and<br>sale of the following activities is subject to a Customer<br>CTP Evaluation:<br> • Metallurgical coal mining with ≥25% of their revenue<br>coming directly from the extraction of metallurgical coal,<br>calculated on a three-year rolling average.<br> • Extraction of oil and gas with any revenue coming from<br>the extraction of oil and gas.<br> • Coal-fired power generation where customers are<br>responsible for the generation and supply of coal-fired<br>electricity. This includes customers who are diversified<br>and undertake these operations.<br>Customers will scale to the ratings outlined below:<br>RATING ACTION TAKEN<br>A Accept and monitor customer CTP execution.<br>B Accept and proactively engage to encourage further<br>development of customer CTP content.<br>C Escalate to appropriate governance committee and new<br>or renewed finance may be declined.<br>D Decline new or renewed finance.<br>Where a customer achieves a rating of ‘D’, but new or<br>renewed finance supports National or Energy Security, we<br>may escalate to the appropriate governance committee.<br>Westpac will evaluate our customers’ CTP against an<br>internal framework which has consideration for the CTP<br>Evaluation Criteria.<br>1 Refers to Article 2.1 of the Paris Agreement on Climate Change adopted within the United Nations Framework Convention on Climate Change in December 2015.<br>2 Excluded: We seek to not provide lending to the entity, activity or sector which is prohibited.<br>3 Restricted: Where lending to a particular entity, activity or sector may pose a higher risk and so additional due diligence and/or escalation may apply.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>27<br>CTP Evaluation Criteria<br>Emissions<br>Targets<br>1. Interim scope 1 & 2 decarbonisation target/s,<br>aligned to the well below 2°C goal of the Paris<br>Agreementa on an absolute or intensity basis as<br>assessed by Westpac.<br>2. An ambition to reach net-zero for scope 1 & 2 and<br>scope 3 GHG emissions by 2050 (or earlier).<br>Strategy 3. A plan to achieve scope 1 & 2 decarbonisation<br>targets, including intended use of offsets.<br>4. Disclosure of ‘use of sold product’ scope<br>3 emissions.<br>5. A plan to reduce these scope 3 emissions.<br>Capital<br>Allocation<br>6. Planned capital expenditure to achieve interim<br>scope 1 & 2 target/s.<br>Climate<br>Governance<br>7. Governance and oversight of the Climate<br>Transition Plan.<br>8. Public disclosure of a Climate Transition Plan.<br>a. Refers to Article 2.1 of the Paris Agreement on Climate Change<br>adopted within the United Nations Framework Convention on Climate<br>Change in December 2015.<br>We will continue to monitor, assess and be guided by the<br>latest science and government policy, while considering<br>energy security and affordability.<br>DEFINED TERMS<br>National or<br>Energy Security<br>Circumstances where a government or regulator<br>determines that additional supply, or maintaining<br>current supply is necessary for national or energy<br>security and Westpac’s funding is able to support<br>such additional supply.<br>IEA Net-Zero<br>by 2050<br>The International Energy Agency, Net-Zero by 2050<br>(2021) scenario specifies that no new (greenfield) oil<br>and gas fields are needed beyond those projects<br>that have already been committed (i.e., approved for<br>development) as of 18 May 2021.<br>New Associated<br>Dedicated<br>Infrastructure<br>New gas collection, storage and processing<br>infrastructure dedicated solely to greenfield oil<br>and gas extraction projects including floating<br>production, storage and offloading (FPSO) vessels,<br>gas processing plant and transmission pipelines.<br>Since 2023, we committed to reduce our lending to thermal<br>coal mining customers to zero by 30 September 2025. At<br>30 September 2025 we have zero corporate lending or bond<br>facilitation to institutional customers with ≥15% of their<br>three-year rolling average revenue coming directly from<br>thermal coal mining.<br>Additionally, ahead of any future request for new<br>or renewed financing from 30 September 2025, we<br>conducted a preliminary assessment of CTPs for existing<br>in-scope customers.<br>This assessment has informed the actions we would take if<br>these customers request new or renewed corporate lending<br>or bond facilitation. Table 12 presents a summary of the<br>ratings from our preliminary assessments.<br>Customers rated D would currently not be eligible for new<br>or renewed finance, but if the finance supports National<br>or Energy Security, we may escalate to the appropriate<br>governance committee.<br>TABLE 12: CUSTOMER CLIMATE TRANSITION PLAN<br>EVALUATION - PRELIMINARY RATINGS ASSESSMENT<br>RATING % OF CUSTOMERS<br>ASSESSED (PRELIMENARY<br>CUSTOMER ASSESSMENTa)<br>A 55%<br>B 36%<br>C 0%<br>D 9%<br>a. Percentage of customers assessed in advanced of their request for<br>new or renewed corporate lending or bond facilitation.<br>Where appropriate, we engaged with customers within<br>scope of our Carbon-Intensive Sector Requirements to<br>discuss their transition plans and better understand their<br>evolving decarbonisation strategies.<br>These engagements will continue in future years, with a<br>focus on customers seeking new or renewed corporate<br>lending or bond facilitation.<br>ESG Risk Assessments<br>Our ESG Risk Assessment tool is used to assess ESG<br>risks and mitigations (including climate-related risks). These<br>assessments are completed at customer on-boarding and<br>periodic reviews for certain customers and transactions<br>in Institutional and Business Banking. Refer to the Risk<br>Management section for more information.<br>ESG RISK ASSESSMENT FOR COMMERCIAL CUSTOMERS<br>Our ESG Risk Assessment process for commercial<br>customers has seen over 9,000 assessments since its launch<br>in FY24. Of those assessed more than 400 customers<br>and transactions have been reviewed by our specialist<br>ESG team.<br>In FY25, we began implementing the ESG risk assessment<br>process into our Pacific business. The assessment process is<br>further supported by training and resources for our bankers<br>and credit staff across Australia and the Pacific.<br>ESG RISK ASSESSMENTS FOR INSTITUTIONAL CUSTOMERS<br>The ESG Risk Assessments for lending to institutional<br>customers considers the material ESG risks relevant<br>for the sector in which our customers operate to<br>determine if customers or transactions are within appetite.<br>Sector-specific risks and appetite are outlined in our<br>Sustainability Customer Requirements and Sustainability<br>Risk Management Framework.<br>In line with our Group ESG Credit Risk Policy, ESG Risks are<br>considered when originating a new-to-bank customer, when<br>conducting periodic reviews, for any material financing, for<br>material trigger events or if requested by a Credit Officer.<br>If potential high ESG risks are present, transactions or<br>customers may be escalated to relevant governance bodies<br>for consideration in the finance decision.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>28<br>Engaging with our customers<br>Approach to customer engagement<br>A key element of supporting customers’ transition and<br>resilience is engagement. Through our engagement we aim<br>to better understand customer needs and plans.<br>Engagement includes targeted engagement with<br>institutional customers and some of our business banking<br>customers in sectors such as agriculture and commercial<br>real estate. We also seek to participate in industry forums<br>to further share our insights.<br>In FY25, we expanded our scope to engage more commercial<br>and agriculture customers, including by:<br> • Discussing transition needs with more commercial<br>customers; and<br> • Discussing our Westpac Sustainable Farm Loan with our<br>New Zealand agricultural customers and helping them<br>with their independent audit as part of the programme.<br>Building banker capability<br>To support engagement in FY25, we worked to further<br>enhance our bankers' ability through targeted training<br>and by providing frameworks for their conversations.<br>This was supplemented by our sustainability specialists,<br>who participated in many discussions and provided<br>additional guidance.<br>Initiatives in FY25 included:<br> • Delivery of a range of sector-specific insights and<br>learning content, designed to support our bankers to<br>engage effectively with customers on sustainability;<br> • Internal newsletters, specialist knowledge sessions and<br>use of e-learning modules on sustainability and climate-related matters in our Institutional business;<br> • An externally developed sustainability learning<br>programme offered to all Westpac New<br>Zealand employees;<br> • Delivered over 140 hours of targeted training to our<br>WNZL employees on other climate related topics; and<br> • Specialist training for a group of business bankers,<br>enabling them to better support their peers and<br>customers on sustainability-related matters.<br>Engagement insights<br>Engaging on customer climate strategies and<br>transition plans<br>In 2025, our engagement continued to evolve, diving deeper<br>into the plans of our institutional customers.<br>Areas of focus this year have been on:<br> • Further discussion with institutional customers on the<br>uplift of their climate transition plans;<br> • Better understanding their value-chain impacts; and<br> • Discussing readiness for mandatory climate reporting<br>with corporate and institutional customers.<br>Our Customer CTP Review Framework has been used to<br>frame discussion with institutional customers, and this is<br>summarised in the adjoining Table 13.<br>We expanded the framework this year to consider:<br> • Implementation strategy – the assumptions and external<br>factors considered in their plans.<br> • Engagement strategy – how customers are engaging<br>with their stakeholders.<br>TABLE 13: CUSTOMER CTP REVIEW FRAMEWORK<br>ELEMENTS AREAS OF ASSESSMENT<br>Foundations 1. Risks and opportunities<br>2. Business and strategy<br>Implement-ation<br>Strategy<br>3. Emissions reduction initiatives<br>4. Capital and financial planning<br>5. Assumptions and external factors<br>Engagement<br>Strategy<br>6. Value chain engagement<br>7. Broader stakeholder engagement<br>Metrics and<br>Targets<br>8. Long-term GHG targets<br>9. Interim Scope 1 & 2 targets (~5-10 years)<br>10. Interim Scope 3 targets (~5-10 years)<br>11. Carbon credits<br>12. Progress reporting<br>13. External assurance<br>Governance 14. Board oversight and capability<br>15. Incentives and remuneration<br>16. Skills, competency and training<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>29<br>In FY25, we had in-depth engagements with over 130<br>institutional customers in Australia and New Zealand.<br>Approximately 64% of the customers engaged were re-engagements from last year, meaning that data in Figures<br>6 to 9 are not strictly comparable with previous years.<br>Findings from our engagements in FY25 include:<br> • 83% had a public report outlining their climate transition<br>strategy. In Australia, approximately 20% are in the form<br>of a standalone Climate Transition Plan or equivalent;<br> • 79% had interim (approximately 5-10 year) scope 1 and 2<br>GHG targets;<br> • 49% had long-term net-zero GHG targets covering at<br>least scope 1 and 2;<br> • 24% had interim (approximately 5-10 year) scope 3 GHG<br>targets; and<br> • Customers commonly cited new infrastructure,<br>technology feasibility, and supportive policies as key<br>dependencies to delivering on their climate plans.<br>Preparation for mandatory climate reporting is a focus<br>for customers. Approximately 80% of those engaged in<br>Australia indicated they are Group 1 entities under the<br>AASB S2 reporting requirements; in New Zealand, 73% were<br>Climate Reporting Entities under the NZ Climate Standards.<br>With the introduction of mandatory climate reporting, the<br>maturity of our customers’ disclosures will vary.<br>FIGURE 6: CUSTOMERS ENGAGED BY SECTOR (%)<br>18%<br>17%<br>15% 15%<br>12%<br>11%<br>8%<br>4%<br>Energy Manufacturing<br>Property, Construction and Health Transport<br>Mining and Metals Consumer and Retail<br>Utilities and Infrastructure Agriculture<br>FIGURE 7: % OF CUSTOMERS WITH LONG-TERM<br>GHG TARGETS<br>19%<br>30%<br>25%<br>26%<br>Net-zero scope 1, 2 and 3<br>GHG target<br>Net-zero scope 1 and 2<br>GHG target<br>Ambition, aim or support<br>for net-zero<br>No disclosure or commitment<br>FIGURE 8: % OF CUSTOMERS WITH INTERIM SCOPE 1<br>AND 2 GHG TARGETS<br>30%<br>10% 40%<br>21%<br>Scope 1 and 2, disclosed as being aligned to at least a 1.5°C<br>Scope 1 and 2, disclosed as being aligned to a well below 2°C<br>Scope 1 and 2, no specified temperature alignment<br>No scope 1 and 2 targets<br>FIGURE 9: % OF CUSTOMERS WITH INTERIM SCOPE 3<br>GHG TARGETS<br>13%<br>3%<br>8%<br>76%<br>Scope 3, disclosed as being aligned to 1.5°C<br>Scope 3, disclosed as being aligned to well below 2°C<br>Scope 3, no specified temperature alignment<br>No scope 3 target<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>30<br>Engaging with business customers<br>We continue to engage with business customers<br>(mostly commercial property and agribusiness customers)<br>across our portfolio to understand their approach to<br>decarbonisation and explore areas where we can offer<br>meaningful support. Our engagement approach includes<br>both direct customer interactions and collaboration through<br>industry bodies, enabling us to reach a broader audience<br>and supporting industry-led initiatives.<br>In FY25, supported by our sustainability specialists, we<br>expanded and deepened our engagement with business<br>customers. This included delivering two major industry<br>collaborations: in Agriculture with Meat & Livestock<br>Australia and Commercial Real Estate with the Energy<br>Efficiency Council (EEC), focused on providing tools and<br>resources to customers to support their decarbonisation.<br>Our updated implementation approach on<br>deforestation for our Agriculture targets<br>Westpac is determined to invest in regional Australia and to<br>support the agricultural sector to achieve its climate goals.<br>In 2023, as part of setting 2030 Agriculture financed<br>emissions sector targets for Dairy and for Beef and Sheep,<br>we expressed a commitment to no deforestation1<br> from<br>31 December 2025 for customers in scope of our targets,<br>and to engage with customers on this commitment2<br>.<br>Since that release, we have engaged with rural research<br>and development corporations, members of the agricultural<br>supply chain, peak industry bodies, and with customers to<br>understand how this would affect the sector3<br>.<br>These discussions showed that customers are increasingly<br>aware of supply chain requirements to manage<br>deforestation risk. However, implementation remains<br>complex, particularly due to varying reporting requirements<br>across companies in the supply chain. The sector expressed<br>a clear need for more support in managing existing<br>demands, rather than facing additional requirements.<br>Accordingly, we have refined our approach – no longer<br>requiring a formal ‘no deforestation’4<br> commitment – but<br>continuing to develop practical ways we can help customers<br>manage deforestation risk effectively. This includes:<br> • Conducting ESG risk assessments with our larger<br>Agribusiness customers to understand how they are<br>managing their deforestation risks;<br> • Sharing data and insights to manage evolving market<br>requirements; and<br> • Supporting industry efforts that help farmers assess<br>and verify deforestation free status for supply<br>chain reporting.<br>We continue to make progress towards our Agriculture<br>financed emissions sector targets, with details on page<br>66 to 68. Given their importance to the Australian and<br>New Zealand economies, partnering with our Agribusiness<br>customers and supporting regional communities remains<br>critically important.<br>Case study: Collaborating with Agribusiness<br>customers and industry on decarbonisation<br>As part of our commitment to supporting business<br>customers in their decarbonisation journey, Westpac<br>collaborated with Meat & Livestock Australia this<br>year to sponsor and deliver Carbon EDGE workshops<br>in key growing regions. Tailored specifically for red<br>meat producers, the workshop helped participants<br>understand how to reduce emissions on their farms<br>through best practices in productivity, animal welfare,<br>and environmental management. Participants were<br>guided through the process of establishing an<br>emissions baseline for their property, identifying<br>practical strategies to lower emissions, and developing<br>a customised action plan for their farm. Following the<br>initial success of the Tamworth, NSW session earlier in<br>the year, additional workshops were held in Roma and<br>Rockhampton, Queensland in September, with further<br>sessions planned throughout the remainder of the year.<br>1 Loss of natural forest as a result of i) conversion to agriculture or other non-forest land use; ii) conversion to a tree plantation; or iii) severe and sustained degradation. Loss of natural forest that meets this definition is considered to be<br>deforestation regardless of whether or not it is legal. Source: Accountability Framework Initiative. The Accountability Framework Core Principles (2023).<br>2 While this commitment is the same as that contained in the Science Based Targets Initiative (SBTi) Forests, Land and Agriculture (FLAG) guidance, Westpac is not an SBTi signatory and is not required to meet SBTi FLAG requirements.<br>3 As disclosed in our 2024 Climate Report.<br>4 In our Australian and New Zealand 2030 Agriculture sector targets and related positions and disclosures, including in our Natural Capital Position Statement.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>31<br>Climate-related opportunities<br>Sustainable Finance Targets<br>2030 Sustainable Finance Targets of:<br> • $55 billion in sustainable finance lending. This<br>target is based on TCE (or balance1<br>) at<br>30 September 2030.<br> • $40 billion in bond facilitation. This target is<br>based on our share of the cumulative value of<br>bonds facilitated between 1 October 2021 and<br>30 September 2030.<br>In supporting customers and to be clear on what<br>constitutes sustainable finance2<br>, in 2024 we launched our<br>Sustainable Finance Framework (SFF), to provide consistent<br>definitions and processes for identifying and assessing<br>what is in-scope of our green, transition, social and<br>sustainability lending categories. The SFF also defines our<br>2030 targets for lending and bond facilitation and how<br>we will measure and monitor our progress. In FY25, the<br>Australian Sustainable Finance Institute (ASFI) released<br>their sustainable finance taxonomy and, as a member of<br>ASFI, we are participating in the pilot program to assess the<br>taxonomy’s implementation. The ASFI Taxonomy provides<br>a common standard for green and transition finance in<br>Australia. We will review our SFF, and discuss with key<br>stakeholders if changes are required to align with the ASFI<br>taxonomy. Our Sustainable Finance Framework is available<br>on our website.<br>Plans to achieve our Sustainable Finance Targets<br>We have continued to grow our sustainable finance in<br>FY25, as we have worked to support customers with their<br>transition. This will continue in the period ahead including<br>considering new products that may be included under the<br>Sustainable Finance Framework that will support new and<br>emerging customer needs.<br>Performance against our Sustainable Finance Targets<br>Over FY25, sustainable finance increased $10.7 billion or<br>37% and cumulative bond facilitation increased $6.3 billion<br>or 40%. This growth keeps us on track to achieve our<br>2030 targets.<br>The main contributors to the growth in sustainable<br>lending were:<br> • An almost doubling of green finance to power<br>generation sector;<br> • A $4.2 billion increase in residential mortgages, mainly<br>social lending; and<br> • A $1.0 billion increase in TCE to the commercial<br>property sector.<br>New sustainable bond facilitation was spread across green<br>and sustainability bonds with continued growth in the<br>government sector and a doubling in labelled corporate<br>bond issuance over the prior year.<br>FINANCING RENEWABLE ENERGY<br>Achieving economy wide net-zero emissions requires<br>a transformation of the electricity grid. Alongside<br>decarbonising through renewables, the grid must expand<br>to support the growing electrification of homes, businesses<br>and transport.<br>At 30 September 2025, 89% of TCE in our Australian<br>and New Zealand electricity generation portfolio was<br>to renewable generation sources (including wind, solar<br>and hydro).<br>FIGURE 10: PROGRESS OF SUSTAINABLE FINANCE<br>4.3<br>19.1<br>28.7<br>39.4<br>4.9c<br>9.9c<br>15.9c<br>22.3<br>Sustainable finance lendinga<br>(Total TCE $bn)<br>Sustainable bond facilitationb<br>(Total value of bond facilitation ($bn)<br>cumulative from 1 October 2021)<br>2022 2023 2024 2025<br>a. Total TCE ($bn).<br>b. Total value of bond facilitation ($bn) cumulative from 1 October 2021.<br>Refer to page 16 of the Sustainable Finance Framework for further<br>information on the scope of products and services and accounting<br>basis of sustainable bond facilitation.<br>c. Prior year numbers restated following data quality reviews which<br>identified additional bonds not previously included.<br>1 The balance represents the balance outstanding at a point in time and is applicable for residential mortgages.<br>2 Sustainable Finance includes both labelled lending, and unlabelled lending for customers and activities in-scope of our SFF categories.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>32<br>TABLE 14: PROGRESS IN SUSTAINABLE<br>FINANCE LENDING1<br>CATEGORYa 2025 2024<br>Green 18.5 12.2<br>Transition 0.2 0.0<br>Social 11.6 7.6<br>Sustainability 0.2 0.2<br>Sustainability-linked 8.9 8.8<br>Total TCE ($bn) 39.4 28.7<br>SECTOR 2025 2024<br>Power Generationb<br>7.7 3.9<br>Transportb<br>1.4 1.2<br>Commercial Real Estateb<br>5.6 4.6<br>Residential Mortgages – Australia 9.4 5.2<br>Healthcareb 1.6 1.4<br>Educationb 0.9 0.7<br>Otherc<br>6.1 5.3<br>New Zealand – Agriculture 3.5 3.3<br>New Zealand – Other sectors excl. agriculture 3.1 3.2<br>Total TCE ($bn) 39.4 28.7<br>Amount of assets aligned with climate-related<br>opportunitiesd ($bn TCE)<br>18.5 12.2<br>% of Total Group TCE 1.4% 1.0%<br>a. Categories of Green and Social are labelled and unlabelled lending.<br>Transition is unlabelled lending only. Categories of Sustainability and<br>Sustainability-linked are labelled lending only.<br>b. WIB only excludes WNZL.<br>c. Includes labelled lending in other sectors (i.e., not listed already) for WIB.<br>d. Includes Green lending only. May include nature-related opportunities.<br>TABLE 15: PROGRESS IN BOND FACILITATION1,2<br>CATEGORY 2025 2024<br>Green 11.1 8.5a<br>Social 0.3 0.3<br>Sustainability 10.4 6.9a<br>Sustainability-linked 0.5 0.3a<br>Total value of bond facilitation ($bn)<br>cumulative from 1 October 2021<br>22.3 15.9a<br>a. Prior year numbers restated following data quality reviews which<br>identified additional bonds not previously included.<br>Case study: Battery financing to help South Australia<br>deliver on big energy transition goals<br>To support South Australia’s renewable energy goals,<br>it is essential to strike the right balance between<br>renewable energy generation and storage – underpinned<br>by commercially viable solutions.<br>This year, Westpac played a key role as financier for<br>the Stage 1 development of Revera Energy’s Bungama<br>utility-scale battery project located over 200km north of<br>Adelaide. The 150 MW battery is understood to be the<br>first standalone Battery Energy Storage System (BESS)<br>financed on a fully merchant / uncontracted basis by<br>commercial banks in Australia and will provide 300 MWh<br>of storage capacity once operational in 2026, ensuring<br>grid reliability and energy security.<br>This innovative finance structure not only supports the<br>energy transition but also helps attract new investment<br>into the sector, positioning it as a key contributor to<br>the South Australian Government’s goal of achieving net<br>100% renewable energy by 2027.<br>Case study: Expanding renewables while supporting<br>regional NSW<br>This year, Westpac acted as Mandated Lead Arranger<br>and Green Loan Coordinator for ACEREZ’s finance of<br>the Central-West Orana Renewable Energy Zone (REZ)<br>transmission project. Located near Mudgee and Dubbo,<br>the REZ spans more than 20,000 square kilometres<br>and will generate enough energy from large-scale<br>solar and wind farms to power more than 2 million<br>homes annually.<br>ACEREZ – a partnership between ACCIONA, COBRA, and<br>Endeavour Energy – has been appointed by EnergyCo,<br>the NSW Government authority leading the delivery of<br>the REZ, to build, operate and maintain the transmission<br>network that connects the REZ to New South Wales’s<br>electricity grid.<br>At its peak, development of the REZ is expected to<br>support around 5,000 construction jobs and bring in up<br>to $20 billion of investment into regional Australia.3<br>1 When structuring or participating in sustainable finance transactions, Westpac was guided by national sustainable finance taxonomies, and global sustainable finance market standards, principles and guidance that are commonly used to label<br>or categorise loans and bonds as green, social, sustainability or sustainability-linked (such as those standards, principles and guidance issued by the Loan Market Association, International Capital Markets Association and/or the Climate Bonds<br>Initiative). For unlabelled finance, the approach to sustainable finance is set out in our SFF. Progress is reported at 30 September.<br>2 Refer to page 16 of the Sustainable Finance Framework for further information on the scope of products and services and accounting basis of sustainable bond facilitation.<br>3 https://www.energyco.nsw.gov.au/cwo-rez<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SUPPORTING CUSTOMERS' TRANSITION TO NET-ZERO AND TO BUILD THEIR CLIMATE RESILIENCE<br>33<br>Other climate-related opportunities<br>In addition to the lending and bond facilitation captured by<br>our SFF, there are also other climate-related opportunities<br>that the Group is involved in.<br>Some of these included:<br> • EV Vehicle Lending: Westpac launched EV loans<br>in third-party arrangement with Tesla in 2025. At<br>30 September 2025, loans for EV/hybrid vehicles<br>to Australian customers totaled $63.4 million (2024:<br>$53.7 million);<br> • Green Tailored Deposits: Westpac’s Green Tailored<br>Deposits are term deposits that have been certified<br>to meet the Climate Bonds Standard, which is an<br>internationally recognised scheme utilised to prioritise<br>investments which contribute to addressing climate<br>change. At 30 September 2025, Green Tailored Deposits<br>were $1.7 billion (2024: $2.0 billion); and<br> • Enhanced insights for customers: Launched a Home<br>Energy Efficiency Tool in third-party arrangement with<br>Cogo, providing customers with tailored insights into<br>how they can benefit from sustainable upgrades.<br>Supporting our customers'<br>physical resilience<br>To become a climate resilient bank, it is important to<br>consider the resilience of our customers, as their capacity<br>to withstand challenges directly impacts us.<br>In FY25, we updated our data capabilities for physical risk<br>in the retail portfolio, including improving our understanding<br>of individual asset peril exposure and potential insurance<br>costs. This informed our scenario analysis and contributed<br>to the development of an updated physical risk measure<br>within our Board Risk Appetite Statement, which also<br>considers customers' credit risk.<br>For our non-retail portfolio, we have commenced<br>development of a new physical risk framework to assess a<br>broader range of climate-related factors that may affect our<br>business customers.<br>Supporting customers impacted by disasters<br>This year we supported customers through a range of<br>natural disasters, including ex tropical cyclone Alfred<br>which affected a broad region from Queensland’s<br>Sunshine Coast down to Ballina in Northern New<br>South Wales (NSW). Northern NSW also experienced<br>extreme rain events isolating a number of regional and<br>rural communities.<br>Through the year we supported 639 customers with<br>natural disaster relief packages (2024: 162 natural disaster<br>relief packages).<br>Case study: Supporting commercial property<br>customers to decarbonise<br>A Westpac business customer for over 13 years, Corval –<br>a specialist property investor – continues to demonstrate<br>leadership in sustainable asset management. Through<br>a proactive and collaborative approach, Corval works<br>closely with tenants to improve energy efficiency and<br>reduce emissions across its industrial property portfolio.<br>This includes installing energy meters across its assets,<br>enabling real-time electricity monitoring that helps both<br>Corval and its tenants identify inefficiencies, lower<br>energy consumption, and reduce operational costs.<br>In 2024, at their Wingfield site in South Australia,<br>Corval partnered with tenant Superior Food Services<br>to install a 100kW solar panel system and 130kW<br>battery storage, delivering significant energy savings<br>and emissions reductions.<br>According to CEO Rob Rayner, “actively pursuing energy<br>efficiency is inherent in our approach to developing<br>and owning real estate, as it reduces costs for our<br>tenants, improves returns for our investors, and provides<br>a positive impact for our communities.”<br>Collaborating for impact<br>We recognise the important role we can play by supporting<br>and participating in international, national and industry-based initiatives to progress collective action on climate<br>change. Beyond our discussions with customers, we have<br>engaged with industry groups, regulators, and governments<br>to share our perspectives and insights to support the<br>transition towards a net-zero, climate resilient economy.<br>This year, our initiatives have included:<br> • Actively contributing to industry, regulator and<br>government feedback on new climate-related disclosure<br>standards in both Australia an New Zealand;<br> • Collaborating with agriculture and commercial real<br>estate industry forums and bodies; and<br> • Engaging with ASFI on their sustainable<br>finance taxonomy.<br>Submission to the Economic Reform Roundtable<br>As part of Westpac’s submission to the Australian<br>Treasury’s Economic Reform Roundtable, we provided<br>a range of policy proposals and ideas designed to<br>make Australia more productive. Our submission, "Building<br>a Stronger Australia" outlines proposals that seek to<br>accelerate Australia's energy transition. In developing<br>these recommendations, we sought insights, subject matter<br>expertise and sector knowledge from Westpac customers,<br>peak bodies, industry associations and individuals who are<br>experts in their fields.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 34<br>FINANCIAL EFFECTS<br>Financial effects of climate-related<br>risks and opportunities<br>We have conducted an assessment of the impacts of<br>climate change on our financial statements. Our analysis<br>included an assessment of the Group’s exposure to climate<br>risk, including physical and transition risk as a proportion of<br>our overall credit exposure (see Table 17 and Table 20).<br>The analysis showed that there was no material impact<br>on our Group's financial statements for the year ended<br>30 September 2025. Under current climate scenarios the<br>most significant economic impacts from climate change<br>would be expected to occur beyond the expected lives of<br>the exposures identified. In addition, we did not identify any<br>matters for which there is a significant risk of a material<br>adjustment to the carrying amounts of assets and liabilities,<br>or a material impact to the income statement, within the<br>next annual reporting period (short-term).<br>Climate change is a significant source of uncertainty which<br>may affect our financial statements in the future. While<br>extreme climate-related events may lead to higher costs<br>or credit losses in a given year, the impacts are not<br>anticipated to be material in the medium to long-term, given<br>the Group’s risk management framework, approaches in<br>managing climate-related risks in our lending and targets<br>to reduce our financed emissions. The results of the<br>Climate Risk Materiality Assessment indicate that our risk<br>management strategy (RMS) is well adapted to helping<br>us navigate the potential shocks under a ‘Current Policies’<br>(RCP8.5) or ‘Delayed Transition’ (RCP4.5) scenario.<br>Climate-related risks<br>We conducted a range of scenario analyses to assess the<br>exposure of certain parts of our lending to climate-related<br>physical and transition risks. Refer to 'Climate-related<br>scenario analysis' in the Risk Management section for more<br>information and figures.<br>At 30 September 2025:<br> • 0.9% of total Group TCE was in sectors with heightened<br>exposure to transition risk1<br> (based on a Net Zero<br>2050 (RCP2.6) scenario in a long-term time horizon to<br>2030-2035); and<br> • 2.8% of total Group TCE was exposed to heightened<br>physical risks2<br> or vulnerable to severe rainfall flood risk3<br>(based on IPCC RCP4.5 and IPCC SSP2-4.5 scenarios for<br>certain parts of Australian and New Zealand lending<br>respectively in a medium-term time horizon to 2030).<br>Noting that the scope of our analysis is currently limited and<br>might be expanded in future years, including by integration<br>of new datasets, and refining our methodologies.<br>Over FY25, a number of regions experienced extreme<br>climate-related events. While some customers experienced<br>material hardships such as flooding to homes and<br>businesses, Westpac did not experience a material financial<br>impact because of these events. Refer to 'Supporting our<br>customers' physical resilience' for more information.<br>The Group holds a $71 million expected credit loss provision<br>overlay as at 30 September 2025 (2024: $70 million) for the<br>expected impact of extreme weather events on customers.<br>Climate-related opportunities<br>Sustainable financing provided to customers under the<br>Sustainable Finance Framework generates interest and<br>other income for the Group. At 30 September 2025:<br> • The TCE of sustainable finance lending was $39.4 billion<br>(2024: $28.7 billion). It equals 3% of total Group TCE; and<br> • The Group facilitated bonds of $22.3 billion (2024:<br>$15.9 billion) for its institutional customers (total value<br>of bond facilitation cumulative from 1 October 2021).<br>We also earn income from other climate-related products<br>and services including, lending for electric vehicles, certain<br>home upgrades in New Zealand and from carbon trading.<br>Capital deployment<br>We devote resources in managing climate-related risks<br>and opportunities, which we view through the following<br>three lenses:<br>1. CUSTOMER SUPPORT<br>Capital is deployed through the provision of sustainable<br>finance products to support our customers to take<br>advantage of climate opportunities and mitigate climate<br>risks. Further details of sustainable finance are in the<br>Strategy section on page 31 to 32.<br>We do not explicitly allocate capital or funding for lending<br>to specific sectors or purposes. Instead, these are applied to<br>lending as it is written, which is driven by customer demand.<br>Based on the Group’s current plans, we have sufficient<br>capital and funding to accommodate our transition plan<br>including the expected increase in sustainable finance<br>and other climate-related lending into the short and<br>medium term.<br>2. OPERATIONS<br>Expenditure aimed at specifically addressing climate-related risks and opportunities in our business.<br>We deploy capital to climate-related initiatives that drive<br>change, enhance capabilities, develop new products and<br>services, improve infrastructure or reduce risk.<br>In FY25, climate-related expenditure included as part of<br>the Group's investment pool was <$10 million (2024:<br> <$22 million), including:<br> • Improving climate-related data and systems, including<br>for our financed emissions targets;<br> • Enhancing our climate scenario analysis; and<br> • Geospatial mapping to assist with customer<br>risk assessments.<br>1 In non-retail lending (all geographies).<br>2 In Australian retail mortgages.<br>3 In New Zealand retail mortgages, commercial property lending, and agricultural lending.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCIAL EFFECTS<br>35<br>Prior year spend was higher as we completed a number<br>of major initiatives including a new mortgage product,<br>updating our risk assessments and enhancing data.<br>3. INVESTMENT<br>We deploy capital through investments in specific<br>climate-related initiatives, usually outside the Group’s<br>normal operations.<br>We currently hold a minority equity interest in Virescent<br>Ventures’ second climate technology investment fund<br>(Fund II). This fund is focused on investing in early-stage climate-related technologies aimed at addressing<br>climate-related challenges. Details of the investment<br>committed by Westpac are confidential, noting we<br>committed to the Fund’s initial $100 million raising (which<br>completed in FY25) as a cornerstone investor alongside<br>the Clean Energy Finance Corporation and other public and<br>private institutions.<br>Internal carbon price<br>We do not apply an internal carbon price in our current<br>decision-making processes. This includes operational<br>changes such as office and branch refurbishments or<br>for transfer pricing related to interest rates. We have<br>used some carbon pricing in our scenario analysis, to<br>help understand climate-related impacts on our portfolio.<br>While some customers may be exposed to region-specific<br>legislation that includes carbon pricing mechanisms, for<br>example the Safeguard Mechanism in Australia this is not<br>typically factored into our pricing decisions for customers.<br>Assessing climate resilience<br>In assessing our capacity and flexibility to respond to<br>climate change, we consider our business model, strategy,<br>financial position, and potential operational impacts through<br>our value chain.<br>Implications for our strategy and business model<br>Our business model as a bank is resilient to climate-related changes, developments and uncertainties and is<br>unlikely to change, or need to change, in most foreseeable<br>circumstances. Banks play a key role in the transition to<br>net-zero, to support companies through providing finance<br>to facilitate the change. Given our large market share in<br>Australia and New Zealand we believe we will continue to<br>have an important role to play.<br>Our strategy, centered on supporting customers in our core<br>markets, is expected to require continuous refinement to<br>address evolving climate-related risks and opportunities.<br>We have already adapted our approach through measures<br>such as sector position statements, ESG risk assessments in<br>lending, and the implementation of our Sustainable Finance<br>Framework, and we have the ability and financial resources<br>to continue to respond to potential change.<br>Financial resources supporting resilience<br>Westpac has a strong capital position and funding and<br>liquidity profile, providing flexibility to respond to climate-related impacts. The Group has a common equity tier 1<br>capital ratio of 12.5% which is above its preferred range and<br>comfortably higher than regulatory minimums.<br>Under our credit risk management approach, we also book<br>provision overlays for risks that are not included in modelled<br>provision outcome but may emerge in the short term.<br>Similarly, possible medium-term impacts to climate change,<br>are considered via our annual Internal Capital Adequacy<br>Assessment Process, which could lead to holding higher<br>levels of capital for assessed risks. This approach assists<br>us to increase our financial resilience to potential climate-related risks as they emerge.<br>Operational assets – the assets required to run a bank<br>The nature and mix of our assets provides us with flexibility<br>in responding to the impacts of climate change. Most of our<br>assets are loans to customers (our lending), liquid assets<br>and derivatives, and these typically have a duration, or<br>behavioural duration, of less than 5 years. This provides us<br>with the capacity to change the mix of our assets within the<br>medium term.<br>Property and equipment assets at 30 September 2025<br>were $2,266 million (0.2% of total assets). Westpac<br>is not a material owner of commercial property, with<br>branches, corporate, and operational offices occupied under<br>lease agreements.<br>While climate events may affect our operations and service<br>delivery, any asset revaluations would likely have minimal<br>impact given our limited direct property ownership.<br>Lending: accounted for around 75% of our assets at<br>30 September 2025 with 99% of our gross loans in Australia<br>and New Zealand. We continue to change the mix of<br>our lending consistent with our Climate Transition Plan.<br>This includes reducing the proportion of exposure to high-emitting sectors and increasing lending to clean energy,<br>transition and sustainable projects.<br>Liquid Assets: predominantly include cash (including<br>deposits at central banks), government securities and other<br>debt securities. These securities are held for managing<br>the bank’s balance sheet (liquidity management), and for<br>market inventory as part of the Group’s trading activities.<br>The majority of these assets are held in Australia and<br>New Zealand.<br>Significant areas of uncertainty<br>Climate change involves uncertainties regarding its scale<br>and direction. Scenario analysis indicates that both the<br>extent and nature of possible changes present significant<br>unknowns. Most uncertainties are expected to arise in the<br>long-term, rather than in the short- or medium-term. Key<br>uncertainties that may affect climate resilience include the<br>possibility of more severe weather events, suppliers' ability<br>to maintain operations, how customers will adapt, and<br>unpredictable regulatory demands on the sector.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 36<br>OUR CLIMATE TRANSITION PLAN<br>Our Climate Transition Plan<br>Our new Climate Transition Plan (CTP) outlines our<br>response to support our climate ambition of becoming<br>a net-zero, climate resilient bank. It is guided by the<br>principles within our Climate Change Position and supports<br>the delivery of Westpac’s Sustainability Strategy.<br>A summary of our CTP is included on the next page.<br>WESTPAC BANKING CORPORATION<br>ABN 33 007 457 141<br>WESTPAC'S CLIMATE<br>TRANSITION PLAN Responding to climate-related risks and opportunities<br>The CTP covers our operations and lending and includes<br>the actions we will undertake to manage climate-related<br>risks and capitalise on climate-related opportunities for<br>our business, customers and the communities in which<br>we operate. It outlines our targets, the metrics we do or<br>intend to monitor, and the key enablers and dependencies<br>in achieving our ambition. The next page provides a high<br>level overview of the three focus areas underpinning our<br>CTP. For further details on Westpac's CTP, please refer to<br>our website.<br>This includes our approach to managing our physical<br>and transition risks, and how we are working to improve<br>our resilience.<br>It also highlights our approach to the opportunities<br>that climate change presents, namely how we can<br>support customers to build resilience and help with<br>their decarbonisation.<br>Developing our Climate Transition Plan<br>Our CTP builds on long history of recognising the scientific<br>consensus of climate change and our need to respond.<br>In setting our CTP we have been guided by a set of<br>assumptions, dependencies and principles, outlined below:<br> • Our CTP assumes that global policies, actions, and<br>commitments work in support of Article 2(a) of the Paris<br>Agreement, to hold global warming to well below 2<br>degrees Celsius, and to pursue efforts to limit warming<br>to 1.5 degrees Celsius above pre-industrial levels;<br> • More than 99% of our greenhouse gas emissions<br>result from our customers through scope 3 financed<br>emissions. As such, achieving our net-zero ambitions is<br>fundamentally linked to the transition pathways of our<br>customers, which we assume are consistent with an<br>orderly transition;<br> • As economies work toward the energy transition, they<br>must keep energy affordable and address the unique<br>needs and challenges of each sector and as well as<br>individuals that may be disproportionately affected;<br> • Achieving our ambitions depends on the economy’s<br>transition which include decarbonising energy systems,<br>enhancing infrastructure along with the advancement<br>and implementation of low carbon and carbon<br>capture technologies;<br> • This progression requires collaborative engagement<br>with governments, regulators, and industry to address<br>emerging challenges and that the right policies<br>and approval processes are in place to support<br>these developments;<br> • The physical risks of climate change will not only<br>directly impact customers but over time will have<br>broader implications for asset values, productivity and<br>resilience; and<br> • Building physical resilience requires sharing essential<br>data and plans on hazard risks, insurance coverage, and<br>infrastructure readiness.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>OUR CLIMATE TRANSITION PLAN<br>37<br>Summary of our Climate Transition Plan<br>76% reduction in scope 1, 2 absolute<br>emissions by 2030 (2021 baseline)<br>50% reduction in upstream scope 3 absolute<br>emissions by 2030 (2021 baseline)<br>2030 scope 3 financed emissions sector targets<br>$55 billion in sustainable finance lending at 30<br>September 2030<br>$40 billion in sustainable bond facilitation<br>between 1 October 2021 and 30 September 2030<br>Achieving our GHG emissions reductions<br>targets and managing operational climate<br>resilience by:<br> • Maintaining our approach to reducing<br>scope 1 and 2 emissions<br> • Understanding and managing our<br>upstream scope 3 emissions<br> • Understanding and managing the physical<br>climate vulnerability of our operations<br>Taking a whole-of-portfolio view to support an<br>economy-wide, orderly transition by:<br> • Engaging with customers to understand<br>their challenges and exchange insights that<br>help advance their transition<br> • Engaging at an industry-level to promote<br>coordinated change across the value-chain<br> • Offering products and services to our<br>customers to enable their decarbonisation<br>Taking a risk-based view of customer resilience<br>to the physical impacts of climate change by:<br> • Understanding and exploring ways of<br>managing physical risk drivers and impacts<br>within our portfolio<br> • Engaging with customers and communities<br>to identify vulnerability and resilience<br>opportunities<br> • Offering products, services and insights to<br>enable customers and communities adapt,<br>prepare, respond and recover<br>Maintain operational resilience to the physical<br>impacts of climate change.<br>Transition our lending portfolios to support the<br>goals of the Paris Agreement.<br>Adopt a portfolio-wide view of exposure and<br>vulnerability to physical climate risks.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 38<br>RISK<br>MANAGEMENT<br>CONTENTS<br>RISK MANAGEMENT 39<br>CLIMATE-RELATED SCENARIO ANALYSIS 42
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 39<br>RISK MANAGEMENT<br>Managing climate-related risks<br>The management of climate-related risks is integrated<br>within Westpac’s Board approved Risk Management<br>Strategy (RMS). The RMS, supported by our Risk<br>Management Framework (RMF), sets out a structured<br>approach to identifying, assessing, monitoring, and<br>managing our material risks, including climate-related risks.<br>The RMF is built around customers, a strong risk culture,<br>and a Three Lines of Defence (3LOD) model:<br> • 1st Line: Business units have accountability to own and<br>manage risk;<br> • 2nd Line: Risk function sets frameworks, policies and<br>appetite. Provides insight, oversight and challenge; and<br> • 3rd Line: Internal audit provides independent assurance<br>that Line 1 and 2 are effective in managing risk.<br>The RMF and RMS are supported by risk class frameworks,<br>risk appetite statements, and policies. These are all<br>reviewed regularly to help maintain their effectiveness.<br>The Sustainability Risk Management Framework (SRMF)<br>and the Climate Risk Policy support the RMF and RMS by<br>detailing how sustainability (including climate-related) risks<br>are identified, monitored, and managed. These also define<br>the roles and responsibilities for managing these risks in<br>line with our 3LOD. We identify these risks as part of how<br>we manage the business, considering emerging risks and<br>changes to our strategy and the external environment.<br>For additional details on the broader range of policies and<br>processes which support climate-related risk management,<br>refer to page 41.<br>A Board-approved Group Risk Taxonomy defines 11 material<br>risk categories. The Taxonomy provides a common language<br>and single view of the existing risks faced by Westpac.<br>The RMF integrates climate-related risk into the risk<br>management approach by recognising Sustainability and<br>Climate Change Risk as both a financial risk (under Credit<br>Risk), and as a non-financial risk (under Reputation and<br>Sustainability Risk) in our Taxonomy.<br>Our Board Risk Appetite Statement sets the aggregate<br>amount and types of risk which Westpac is willing to<br>accept for each material risk category. It is reviewed<br>and approved by the Board annually and includes climate-related risk measures.<br>Further details on our material risk categories and<br>risk management approach are available in the Risk<br>Management section of our Annual Report.<br>Climate-related risks do not exist in isolation and, in<br>line with our SRMF, must be managed in coordination<br>with other material financial and non-financial risks across<br>our Taxonomy.<br>Climate Risk Materiality<br>Assessment (CRMA)<br>The purpose of our CRMA is to understand how climate-related risks may impact on our material risk categories.<br>The materiality of the risk is determined by evaluating<br>the impact of climate-related events across our defined<br>financial and non-financial risks. The assessment was<br>completed from a Group perspective, based on Westpac’s<br>existing business model. It was completed through<br>workshops with senior management, including our material<br>risk category owners.<br>This assessment differs to our broader climate scenario<br>analysis activity, but for consistency, we utilised the same<br>climate scenarios.<br>Further work is required to apply this approach to climate-related opportunities.<br>Conducting our assessment<br>In performing this assessment, we considered plausible but<br>severe climate scenarios from the Network for Greening the<br>Financial System (NGFS) across three time horizons. The<br>NGFS scenarios are designed to assist financial institutions<br>to examine how physical and transition risks could impact<br>operations and inform strategies to address future potential<br>risks. These scenarios are designed to serve as analytical<br>tools rather than predictions, so their outcomes should not<br>be interpreted as a prediction of future events.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>RISK MANAGEMENT<br>40<br>We selected two scenarios for this analysis:<br>1. Current Policies (RCP8.5): This scenario serves as a<br>baseline, assuming current climate policies continue<br>in the long term. Under this scenario, emissions are<br>expected to rise, leading to increased global warming<br>and heightened physical risks, such as more frequent or<br>intense droughts, bushfires, and flooding. This is also<br>known as a high physical risk scenario; and<br>2. Delayed Transition (RCP4.5): This scenario assumes no<br>new climate policies are implemented until 2030, at<br>which time they are suddenly applied to meet the<br>Paris Agreement goals. Under this scenario, the focus<br>on transition risk is a result of a delay in policy<br>implementation. This is also known as a high transition<br>risk scenario.<br>The analysis from the ‘Current Policies’ (RCP8.5) and<br> ‘Delayed Transition’ (RCP4.5) scenarios capture the most<br>significant potential exposures for physical and transition<br>risks, respectively. The 'Net Zero 2050 scenario' (RCP2.6),<br>while relevant, was excluded as its risk impacts are<br>comparatively less pronounced and would not materially<br>change the outcomes of this assessment.<br>For more information on the climate scenarios, refer to<br>Section 'Methodology – Climate-related scenario analysis' in<br>the Appendix.<br>The timeframes used reflect the recommendation from<br>the NGFS, primarily because climate-related impacts are<br>expected to unfold over decades. For example, under<br>the 'Current Policies' (RCP8.5) scenario, the severity and<br>frequency of weather events are expected to increase<br>over time. Similarly, under the 'Delayed Transition' (RCP4.5)<br>scenario, response and progression is generally gradual as<br>change takes time to embed and ultimately causes a shock<br>which impacts the economy at the point where climate<br>policies are suddenly changed.<br>To determine the reasonably anticipated impacts to our<br>material risk categories, we calculated a risk rating under<br>each time horizon using Westpac's Risk Impact Scale and<br>Risk Likelihood Matrix. Risk Impact was assessed across<br>both financial and non-financial (customer, staff, regulatory,<br>reputation, social and environmental) categories.<br>Likelihood was assessed by estimating the probability of the<br>risk occurring. The risk rating was determined on a residual<br>basis, taking into account the mitigating impact of existing<br>key controls. We assume our current control environment is<br>stable through to the long-term to enable comparisons over<br>the time periods assessed.<br>Insights from our assessment<br>The results indicate that our RMS is prepared for potential<br>shocks under a ‘Current Policies’ (RCP8.5) or ‘Delayed<br>Transition’ (RCP4.5) scenario. The climate-related events<br>under each scenario did not indicate a material impact to<br>most of our risk categories. However, it did highlight areas<br>where we can further strengthen controls and processes to<br>manage potential impacts.<br>It was projected that physical risk events under a<br> ‘Current Policies’ (RCP8.5) scenario may result in increased<br>operational disruptions and increased insurance costs for<br>our customers over time, impacting on our operational and<br>credit risk management. Considering the localisation of such<br>events and our existing control environment, the residual<br>risk exposure is managed such that a material change to our<br>business model or strategy is not required.<br>Transition risk anticipated under a ‘Delayed Transition’<br>(RCP4.5) scenario has been assessed to have the greatest<br>impact on credit risk and therefore a potential impact on<br>capital adequacy, through higher risk weighted assets. To<br>mitigate and prepare for this potential impact, we have<br>targets to reduce our portfolio financed emissions, outlined<br>in our Climate Transition Plan.<br>Given the nature of scenario analysis, several assumptions<br>were relied upon, such as having no changes to our business<br>model or strategy and that our control environment<br>remains constant. As such, the results are designed to be<br>indicative, to inform gaps in our existing risk management.<br>We anticipate this analysis to evolve over time as our<br>understanding of climate-related risks continues to mature<br>and data becomes more available.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>RISK MANAGEMENT<br>41<br>Policies and related processes to<br>manage climate-related risks<br>Under our RMF and RMS, we use a range of tools and<br>methods to identify, assess, prioritise and monitor climate-related risks across all parts of our value chain. These<br>policies, processes, and tools support risk identification and<br>management and include:<br> • Climate Risk Policy: supports our SRMF and sets out<br>our principles and requirements for managing climate-related risks. It aligns with APRA’s Prudential Practice<br>Guide CPG 229 – Climate Change Financial Risks (CPG<br>229) so that climate-related risks are considered in<br>strategic planning, risk assessments, and disclosure;<br> • ESG Credit Risk Policy: applies to transaction managed<br>credit exposures across business and institutional<br>customers, with the consideration of ESG risks in our<br>credit risk assessment process;<br> • ESG Risk Assessment Tools: used to assess ESG risks<br>associated with customers, transactions and the activity<br>supported. These assessments are performed for new-to-bank opportunities and for existing customers as part<br>of periodic risk reviews or where there are major changes<br>to facilities. The assessment reviews the customer or<br>transaction against our Positions, Action Plans and<br>Sustainability Customer Requirements to help ensure<br>our lending activities and bond facilitation are in line with<br>our requirements and expectations. Transactions may<br>also be escalated to a Customer and Transaction Risk<br>Escalation Committee for additional review;<br> • Risk and Control Assessment Policy: sets the approach<br>to identify, assess, manage, monitor and report on risks<br>and controls that could impact the achievement of key<br>business objectives, resilience and the maintenance of<br>critical operations. Material non-financial risks, including<br>climate-related risk, are assessed for inherent and<br>residual risk. The outcome is recorded in a risk<br>profile, which must be refreshed quarterly where<br>there are material changes to the internal or external<br>environment. Risk profile assessments also consider<br>regulatory changes, incidents and emerging risks. Risks,<br>incidents and issues are assessed for potential impact<br>and likelihood over the next 12 months using the<br>Group Risk Impact Scale and Likelihood Matrix. Impact<br>assessment includes both financial and non-financial<br>categories. This process helps identify where the risk<br>rating is out of appetite and supports prioritisation of<br>actions to remediate;<br> • ESG Obligation Library: records key Positions, Action<br>Plans and Sustainability Customer Requirements.<br>The library is accessed through our enterprise risk<br>management system which allows for linking of key<br>controls to obligations;<br> • Stress Testing and Scenario Analysis: Westpac conducts<br>broader Group Stress Tests and Scenario Analysis to<br>assess potential impacts that changes to existing and<br>emerging risks may have, including on our capital.<br>Findings may feed into Business Continuity Planning and<br>the Internal Capital Adequacy Assessment Process;<br> • Responsible Sourcing Code of Conduct: we undertake<br>screening, due diligence and assessment of suppliers to<br>determine levels of sustainability risk (including climate-related risks) and identify actions to align to the Code;<br> • Climate Change Credit Risk Committee: provides<br>portfolio oversight over physical and transition risks,<br>informing accountable individuals in making appropriate<br>climate-related credit risk decisions. This is a sub-committee of the Group Credit Risk Committee (refer<br>also to the Governance section); and<br> • Enterprise Emerging Risk Forum: oversees Westpac’s<br>aggregated view of emerging risks, including climate-related risks. It identifies these risks by scanning internal<br>and external sources and consulting subject matter<br>experts. Emerging risks are assessed and prioritised<br>based on ‘Impact’ (i.e., how serious the risk is) and<br> ‘Velocity’ (i.e., how soon it might affect Westpac – within<br>1 year, 1–3 years, or more than 3 years). Findings are<br>reported semi-annually to the Group Executive Risk<br>Committee and Board Risk Committee.<br>Our risk management ecosystem is also supported by<br>internal controls, procedures, and oversight mechanisms to<br>monitor and report on these risks across our operations:<br> • Dashboards: Allows monitoring of risk assessments, key<br>risk indicators, and control assessments; and<br> • Risk Reports: In accordance with governance committee<br>Terms of Reference or Charters, this includes regular<br>reports to Board and senior executives on risk<br>management practices, focusing on material matters,<br>including climate-related risks.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 42<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>Use of climate-related<br>scenario analysis<br>Climate-related risks are uncertain, so Westpac uses<br>climate scenario analysis to help assess and manage these<br>risks. This analysis helps us evaluate how different climate<br>pathways in the short, medium, and long term could affect<br>our lending and exposure to emissions-intensive sectors<br>(as applicable).<br>Scenario analysis is also used to understand how climate<br>risks might impact our financial position, operations,<br>and business strategy. It also guides risk mitigation by<br>prompting updates to frameworks and policies, adjusting<br>risk appetite, setting portfolio limits, and informing<br>provisioning and capital planning.<br>We carry out various climate-related scenario analyses,<br>adapting each one to suit its specific purpose. Each analysis<br>has a unique scope, approach and assumptions with the<br>insights helping us incorporate climate considerations into<br>our strategic planning and risk management.<br>Our Board Risk Appetite Statement outlines our tolerance<br>for climate risk, covering both physical and transition risks.<br>Climate scenario analysis has helped shape these risk<br>appetite measures for physical risk in our retail portfolio<br>and transition risk in our non-retail portfolio. Our physical<br>risk measure covers the proportion of the current Australian<br>retail residential mortgage portfolio (by TCE) exposed to<br>higher physical risks. Our transition risk measure tracks<br>repayment risk via the percentage of our Non-Retail credit<br>portfolio (by TCE) exposed to higher transition risk. These<br>measures were updated in FY25 and approved by the Board,<br>and both are within Board-approved thresholds. These<br>measures are reviewed regularly so that any adjustments to<br>credit risk policies, limits, and/or provisions can be made to<br>manage these climate risks and ensure they remain within<br>our risk appetite.<br>Our Climate Change Credit Risk Committee reviews and<br>discusses the approach, use and outcomes of climate-related scenarios and implications on our portfolio, credit<br>strategy and risk appetite. Further discussion may also<br>be escalated to the Group Credit Risk Committee, Group<br>Executive Risk Committee, and Board Risk Committee.<br>In FY25, no material findings were escalated to these<br>committees, other than updates that were made to the two<br>risk appetite measures.<br>Overview of climate scenarios used<br>Westpac considers a broad range of publicly available<br>scenarios for our climate-related scenario analysis. These<br>include scenarios aligned with the global climate goal of the<br>Paris Agreement, which aims to hold warming to well below<br>2°C and ideally to 1.5°C above pre-industrial levels.<br>In FY25, we modelled several scenarios, outlined in Table<br>6 and detailed in Table 16, to understand potential<br>climate impacts. We consider these scenarios to be<br>relevant and appropriate as they provide plausible, but<br>challenging outcomes for physical and transition risk. These<br>scenarios are grounded in the latest science from (the<br>Intergovernmental Panel on Climate Change (IPCC)) and<br>designed for financial institutions by the NGFS.<br>We consider a diverse range of plausible, distinct scenarios<br>and at a minimum, we use a 1.5°C scenario, 3°C or higher<br>scenario, and a third distinct climate scenario. Our scenario<br>analysis includes a Net Zero 2050 (RCP2.6), Delayed<br>Transition (RCP4.5) and Current Policies (RCP8.5) scenario.<br>Since FY24, we’ve applied a scenario selection framework<br>to help ensure our chosen scenarios are granular, plausible,<br>severe enough to challenge assumptions, and distinct from<br>one another. We review and update these annually, and<br>tailor some scenarios to better reflect our business.<br>For more information on the climate scenarios and analyses,<br>refer to Section 'Methodology – Climate-related scenario<br>analysis' in the Appendix.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>43<br>Scenario analyses undertaken in FY25<br>In FY25, our scenario analyses prioritised portfolios<br>more exposed to climate-related risks where the cohort<br>was sufficiently large and data was available. Our<br>approach reflects the evolving nature of climate scenario<br>methodologies. We anticipate refining our selection criteria<br>and analytical techniques over time.<br>Our primary focus areas were:<br> • Physical risk assessment within the retail lending<br>portfolio; and<br> • Transition risk assessment within the non-retail<br>lending portfolio.<br>Approximately 48% of the total lending portfolio was<br>assessed for physical risk, and approximately 46% was<br>assessed for transition risk.<br>From these analyses, we estimate that 7.2% of Australian<br>residential retail mortgage lending may be exposed to<br>heightened physical risk under a high physical risk scenario<br>(Current Policies) by 2050, and 7.4% of non-retail lending<br>may be exposed to heightened transition risk under a high<br>transition risk scenario (Net Zero 2050) by 2050. Heightened<br>risk refers to lending where the exposure to physical or<br>transition risk is comparatively higher than the risk exposure<br>in the rest of the lending portfolio. These analyses have<br>been implemented in the business through updates to<br>our physical and transition Board Risk Appetite Statement<br>(RAS) settings.<br>These analyses informed our assessment of portfolio<br>resilience to both physical and transition risks and are used<br>as an input into the assessment of the financial effects of<br>climate-related risks and opportunities on page 34.<br>In addition to these core analyses, we are advancing our<br>scenario analysis approach in two additional areas:<br> • Transition Risk in the Australian Retail Portfolio: For<br>example, we are examining the economic dependence of<br>retail lending to the fossil fuel value chain.<br> • Physical Risk in the Non-Retail Portfolio: For example,<br>we are exploring sectoral reliance on physical assets,<br>supply chains, and workforce distribution.<br>While we have made meaningful progress in developing<br>our climate scenario analysis capabilities, we acknowledge<br>that other risk drivers may exist which have not yet been<br>evaluated, such as the impact from sea level rise on our<br>Australian retail residential mortgage portfolio. We expect<br>to enhance our understanding of climate-related risks<br>through ongoing monitoring, integration of new datasets,<br>and refining our scenario analysis methodologies.<br>Physical risk in the retail portfolios (Australia)<br>We continue to deepen our understanding of physical<br>climate risk within the Australian retail mortgage portfolio.<br>In FY24, we disclosed exposure to acute physical risks<br> – specifically flood, bushfire, cyclone, wind, and soil<br>movement – under two climate scenarios (IPCC RCP2.6 and<br>RCP8.5). In FY25, we enhanced our analytical approach and<br>expanded our scenario analysis to include a third pathway<br>(IPCC RCP4.5).<br>This year’s analysis concentrated on flooding, bushfires,<br>and cyclones, identified as the most material natural perils<br>impacting some mortgage customers. Due to the changes<br>in methodology and data, results from prior disclosures are<br>not directly comparable.<br>Our updated analysis used national address-level<br>databases that provide peril-specific insights for individual<br>Australian properties. These databases incorporate vendor<br>hazard models, State government hazard data, and other<br>validated third-party sources. They also include forward-looking projections of peril exposure, developed using local<br>climate science and aligned to multiple Representative<br>Concentration Pathways (RCPs 2.6, 4.5, and 8.5) across<br>various timeframes (2030, 2050, and 2090).<br>This scenario analysis has enabled a more granular<br>understanding of how physical risks may evolve across<br>geographies and timeframes in our Australian residential<br>retail mortgage portfolio. Under a high-risk climate pathway<br>(RCP8.5), approximately $39.4 billion, or 7.2%, of our<br>Australian retail residential mortgage portfolio may be<br>exposed to heightened physical climate risk by 2050.<br>Australian residential retail mortgage portfolio with<br>heightened physical risk exposure by time period and<br>scenario are outlined in (Table 20 Results of Climate-related<br>scenario analyses assessing physical risk). Using this same<br>physical risk analysis, we have provided additional credit<br>quality metrics and outstanding balance exposure in (Table<br>21 Australian retail mortgages credit quality metrics under<br>different climate scenarios).<br>These insights inform our risk appetite settings (as<br>referenced above) and assist us to determine what products<br>and services to develop to help our customers build<br>resilience and mitigate exposure to physical risks. For<br>further detail, refer to Section 'Methodology – Climate-related scenario analysis' in the Appendix.<br>Physical risk in New Zealand<br>In New Zealand, we use detailed climate-related data from<br>New Zealand-based climate scientists to help us assess a<br>selection of the most material physical risks associated with<br>climate change across a range of climate scenarios.<br>In FY25, we expanded our coverage of physical risks to<br>include rainfall flooding and updated our sea level rise<br>measure to a coastal inundation metric, replacing both the<br>rainfall flooding and the sea level rise metric used last year.<br>In this Report, we focus on the rainfall flooding analysis.<br>We analysed a subset of our lending secured<br>against property, including in the Residential mortgages,<br>Agricultural Business and Commercial Real Estate<br>portfolios and segments. Property (including land or land<br>and buildings) identified by a unique identifier is matched<br>to our climate data. Our assessment is conducted on a<br>portfolio-basis, on the portion of a portfolio that we are able<br>to match with climate data.<br>We have developed damage profiles for each hazard based<br>on data, research and judgement. A damage profile is a<br>classification tool, based on likely severity of the hazard<br>damage to a property. This supports assessment of the<br>levels of risk for properties, including the classification of<br>a property as Vulnerable.<br>Each hazard has its own damage profile and level of risk.<br>This aligns with leading methodologies in natural hazard<br>risk assessment.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>44<br>Transition risk in the non-retail portfolios (Australia<br>and New Zealand)<br>In prior years, our disclosures on transition risk exposure<br>were based on a methodology developed in 2019. In FY25,<br>we implemented a revised, internally developed qualitative<br>transition risk framework. This enhanced framework<br>incorporates a broader set of transmission channels,<br>including anticipated changes in policy and regulation,<br>technological disruption, capital reallocation, supply chain<br>impacts, and shifts in consumption patterns. As a result<br>of this change in methodology, current disclosures are not<br>directly comparable to prior years.<br>The identification of sectors with heightened transition<br>risk supports our Lines of Business in more effectively<br>measuring, monitoring, and managing their exposure.<br>Transition risks have been assessed across three climate<br>scenarios and over three time horizons, providing insight<br>into how these risks may evolve over time.<br>Under the Net Zero 2050 scenario (RCP2.6), approximately<br>$44.0 billion (7.4%) of our non-retail lending portfolio is<br>assessed as having heightened exposure to transition risk<br>by 2050. Refer to Table 18 for a breakdown of exposure by<br>sector. This analysis informs our risk appetite settings and<br>portfolio responses.<br>We remain committed to refining our approach as<br>industry practices mature and data availability improves.<br>Inclusion of future enhancements, such as the incorporation<br>of additional transition risk transmission channels, may<br>result in us identifying further sectors with heightened<br>risk exposure.<br>For further detail, refer to Section 'Methodology – Climate-related scenario analysis' in the Appendix.<br>TABLE 16: KEY CLIMATE-RELATED SCENARIOS THAT WE CONSIDERED IN FY25<br>Characteristic<br>Scenarios<br>Net Zero 2050<br>(RCP2.6)<br>Delayed Transition<br>(RCP4.5)<br>Current Policies<br>(RCP8.5)<br>Description A net-zero scenario limits global<br>warming to 1.5-degrees through<br>stringent climate policies, reaching net-zero global emissions by 2050. The<br>global response is coordinated, and<br>emissions follow an orderly trajectory<br>to net-zero by 2050, aligned to<br>increasingly stricter carbon policies and<br>increasing deployment of abatement<br>solutions. Only hard-to-abate emissions<br>remain in the economy in the long<br>term, offset by negative emissions<br>technologies and sequestration.<br>A disorderly transition assumes<br>a delay in policy responses<br>to address global greenhouse<br>gas emissions, requiring strong<br>policies from 2030 to limit<br>global warming to well below<br>2 degrees. The increased<br>frequency and severity of<br>physical risks places pressure<br>on policymakers to take decisive<br>actions to mitigate future<br>physical risk impacts.<br>A current policies scenario describes<br>a business-as-usual trajectory, where<br>emissions continue to rise throughout<br>the century and limited action is taken<br>to address global warming. Acute and<br>chronic physical risk impacts will be<br>similar to the other scenarios in the short-medium term due to the locked-in impacts<br>from existing GHG concentrations. Long<br>term impacts are expected to be much<br>more severe and continuing to worsen<br>to 2100.<br>Temperature rise 1.5°C Well below 2°C. 3°C or greater<br>Physical risk • In the near term, acute physical<br>risks are expected to continue as<br>existing GHG concentrations have<br>already locked in climate change<br>impacts over the coming decades.<br> • Increases in severity and/or<br>frequency are expected to be<br>somewhat limited due to achieving<br>an ambitious temperature goal.<br> • Chronic risks will similarly worsen<br>(heat stress, sea level rise) however<br>these risks are relatively much<br>lower than in other scenarios.<br> • Acute and chronic physical<br>risks, although similar in the<br>short term, are expected<br>to worsen post 2030 with<br>worse outcomes in 2050<br>relative to "the Net Zero<br>2050 scenario" (RCP2.6).<br> • Physical damages will also<br>be greater in this scenario<br>relative to a net-zero<br>scenario, due to the delayed<br>policy response.<br> • Acute physical risks will increase in<br>severity and/or frequency. Chronic<br>risks will become much more<br>severe in the long term, including<br>extreme temperatures, changes in<br>precipitation and sea level rise,<br>further exacerbating acute risks<br>(including storm surge, storms, fire<br>weather and flooding).<br>Transition risk • Transition risks are expected to be<br>high as immediate, strict global<br>policy action is required.<br> • Due to the need to take<br>aggressive action to address<br>the impacts of climate<br>change, introduced policies<br>will be restrictive, sudden<br>and severe.<br> • Transition risks in this scenario are<br>minimal as little action is taken to<br>address climate change.<br> • Emissions follow a downward<br>trajectory, aligned to current policy<br>ambition, however a significant<br>volume of emissions continue to enter<br>the atmosphere through to 2050.<br> • No additional policies are enacted<br>beyond the policies that are currently<br>in place to address climate change.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>45<br>Climate-related scenario analysis results – transition risk<br>Table 17 shows the results of our climate-related scenario analysis to estimate the areas of our lending portfolio exposed to heightened transition risk. Refer to Section 'Methodology – Climate-related scenario analysis' in the Appendix for more detail on the scenarios and analysis conducted. Table 18 provides a breakdown by industry of sectors with heightened exposure to transition risk in<br>2030-35 under a Net Zero 2050 scenario (RCP2.6).<br>TABLE 17: RESULTS OF CLIMATE-RELATED SCENARIO ANALYSES ASSESSING TRANSITION RISK<br>Reporting year 2025 2024 2023<br>Portfolio Metrica<br>Westpac<br>Time Horizon<br>Short to<br>Medium-Term (1 to<br> <5 years)<br>Long-Term<br>(5 years+)<br>Medium-Term<br>(1 to <5 years)<br>Long-Term<br>(5 years+)<br>Medium-Term<br>(1 to <5 years)<br>Long-Term<br>(5 years+)<br>Scenario endpoint 2025-<br>2029<br>2030-<br>2035<br>2036-<br>2050<br>2025-<br>2029<br>2030-<br>2035<br>2036-<br>2050<br>2025-<br>2029<br>2030-<br>2035<br>2036-<br>2050<br>Scenario<br>Non-retail<br>lending<br>portfoliob<br>(all geographies)<br>% of non-retail portfolio in sectors with heightened exposure<br>to transition risk<br>Current Policies<br>(RCP8.5) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%<br>Delayed<br>Transition (RCP4.5) 0.0% 2.0% 7.4% 0.0% 1.8% 7.1% 0.0% 1.8% 6.9%<br>Net Zero 2050<br>(RCP2.6)<br>0.0% 2.0% 7.4% 0.0% 1.8% 7.1% 0.0% 1.8% 6.9%<br>Group<br>$bn of total TCE in sectors with heightened exposure to<br>transition riskc<br>Net Zero<br>2050 (RCP2.6)<br>0.1 12.2 44.0 0.1 9.9 39.6 0.2 10.4 38.9<br>% of total TCE in sectors with heightened exposure to<br>transition riskc<br>0.0% 0.9% 3.4% 0.0% 0.8% 3.2% 0.0% 0.9% 3.2%<br>a. Calculated at 30 September 2025.<br>b. Includes all business and institutional lending (all geographies), including treasury and sovereign lending. Lending that does not have an associated ANZSIC is excluded from the calculation. Analysis is performed at the ANZSIC<br>4-digit level.<br>c. In non-retail lending (all geographies).<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>46<br>Exposure to industries that may be exposed to higher<br>transition risk<br>Besides our scenario analysis, Table 18 opposite breaks<br>down our total lending and TCE by sector, emphasising<br>sectors that could face higher transition risks (highlighted<br>in dark purple). This table shows our overall exposure (both<br>loans and TCE) and demonstrates that the sectors that may<br>face higher risks make up less than 1% of our total exposure<br>with the overall portion changing little over the year.<br>The total exposure to these sectors combines industries<br>that may be exposed heightened transition risk by 2035<br>under a 1.5 degree aligned, Net-Zero 2050 scenario. In<br>calculating the total exposure to these industries, we only<br>include the portion of the Electricity supply industry involved<br>in fossil fuel power generation.<br>This breakdown of exposures is high level and indicative<br>only, as transition risks may impact industries, geographies<br>and companies in different ways and to varying degrees.<br>There will also be some sectors, or companies, exposed to<br>transition risks that are not shown separately in the table,<br>including companies operating in multiple sectors.<br>TABLE 18: GROUP TOTAL LOANS AND TOTAL COMMITTED<br>EXPOSURE (TCE) BY INDUSTRY ($M)<br>INDUSTRY Sep 2025 Sep 2024<br>LOANS TCE LOANS TCE<br>Accommodation, cafes<br>and restaurants 11,898 13,672 10,208 11,748<br>Agriculture, forestry<br>and fishing 24,480 28,273 22,087 25,414<br> – Dairy 6,734 7,129 6,840 7,189<br> – Beef and sheep 9,865 11,397 8,531 9,869<br>Construction 9,185 14,808 8,319 13,733<br>Finance and insurance 41,730 154,405 37,897 162,805<br>Government,<br>administration<br>and defence<br> 926 133,260 1,021 118,877<br>Manufacturing 13,827 26,688 12,740 25,371<br> – Aluminium 163 719 306 805<br> – Cement and Concrete<br>and Iron and Steel 1,253 2,348 1,046 2,311<br> – Petroleum refining1<br> 173 830 138 331<br> – Petroleum, Coal,<br>Chemical and Associated<br>Product Manufacturing<br> 2 2 2 2<br> – Organic Industrial<br>Chemical Manufacturing 3 5 4 7<br> – Chemical<br>Product Manufacturing 203 312 181 291<br>Mining 3,785 8,636 3,044 7,885<br> – Coal mining 64 107 114 161<br> – Metallurgical<br>coal mining2<br>36 40 32 38<br> – Metallurgical<br>coal mining in<br>diversified miners2<br> 29 66 57 97<br> – Thermal<br>coal mining2<br> 0 0 25 25<br>INDUSTRY Sep 2025 Sep 2024<br>LOANS TCE LOANS TCE<br> – Upstream Oil and Gas3 740 1,586 777 1,769<br> – Iron Ore 6 1,120 59 1,147<br>Property 75,117 93,582 68,843 85,543<br>Property services and<br>business services 17,128 27,473 15,786 25,151<br>Services4 17,231 28,455 15,012 25,922<br>Trade5 21,183 35,993 18,232 31,827<br> – Petroleum<br>product wholesaling6<br>1,834 4,051 983 2,972<br> – Automotive<br>fuel retailing7<br>512 699 342 488<br>Transport and storage 14,134 23,337 11,477 20,672<br> – Coal ports2 260 324 320 386<br> – Air Transport8 1,247 2,163 992 1,513<br> – Marine Transport 81 105 82 105<br> – Rail Transport<br>(incl. coal transport) 1,259 2,091 1,011 1,904<br> – Road Transport 2,837 3,502 2,321 3,527<br>Utilities9 12,999 28,970 10,028 23,569<br> – Electricity Supply 9,228 18,953 6,031 14,964<br> – Gas Supply 912 2,231 734 2,094<br>Other 1,480 3,556 1,725 4,375<br>Total Retail lending 591,259 684,555 574,916 669,449<br> – Housing 581,666 646,646 566,081 631,861<br>Total Group exposure 856,362 1,305,664 811,335 1,252,341<br>Total exposure to<br>industries that may be<br>exposed to heightened<br>transition risk10<br>6,205 12,389 4,898 10,143<br> – % of Total Group 0.7% 0.9% 0.6% 0.8%<br>1. Previously labelled Oil and Gas Refining in FY24.<br>2. Includes measures of TCE that are specific to Westpac<br>Institutional Banking division. Refer to Glossary (page 73) for<br>more information.<br>3. Oil and Gas Exploration and Oil and Gas Extraction and Terminals.<br>4. Includes education, health and community services, cultural and<br>recreational services, and personal and other services.<br>5. Wholesale trade and retail trade.<br>6. Previously labelled Oil and Gas distribution and retail in FY24.<br>7. Previously labelled Fuel Retailing in FY24.<br>8. Previously labelled Transport – Aviation in FY24.<br>9. Includes electricity, gas and water, and communication services.<br>10. Prior year numbers restated due to methodology change of in-scope industries that may be exposed to higher transition risk.<br>Due to data availability, we include the TCE associated with<br>certain sectors instead of their outstanding loan balance into the<br>calculation of this metric for loans.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>47<br>Exposure to the fossil fuel energy value chain<br>This table discloses the TCE to industries in the fossil fuel<br>energy value chain. Table 19 is a subset of Table 18 with<br>further disaggregation of some industries such as upstream<br>oil and gas, and electricity supply and excludes transmission<br>and transport exposures related to fossil fuels. The outputs<br>do not align with the data used in our financed emissions<br>sector targets.<br>TABLE 19: TCE TO INDUSTRIES IN THE FOSSIL FUEL ENERGY<br>VALUE CHAIN ($M)a<br>INDUSTRY SEP 2025 SEP 2024<br>%<br>CHANGE<br>Upstream Oil and Gas 1,586 1,769 -10%<br> – Oil and<br>Gas Exploration 2 4 -58%<br> – Oil and<br>Gas Extraction<br>and Terminals<br>1,585 1,764 -10%<br>Petroleum refiningb 830 331 151%<br>Petroleum<br>product wholesalingc<br>4,051 2,972 36%<br>Automotive<br>fuel retailingd<br>699 488 43%<br>Thermal coal mininge 0 25 -100%<br>Coal portse 324 386 -16%<br>Electricity supply (fossil<br>fuels only: Gas; Black and<br>Brown Coal; Liquid fuel)e<br>722 818 -12%<br>Total 8,212 6,788 21%<br>a. Individual sector and portfolio figures may not sum to total due<br>to rounding.<br>b. Previously labelled Oil and Gas Refining in FY24.<br>c. Previously labelled Oil and Gas distribution and retail in FY24.<br>d. Previously labelled Fuel Retailing in FY24.<br>e. Includes measures of TCE that are specific to Westpac Institutional<br>Banking division. Refer to Glossary (page 73) for more information.<br>At 30 September 2025, our exposure was approximately<br>$8.2 billion, which was higher than at 30 September 2024<br>mainly due to a higher exposure to Petroleum product<br>wholesaling. In aggregate, our sector exposure is around<br>0.6% of the Group’s total TCE.<br>The data in this table has been refined over the years,<br>including from better identification of companies involved<br>in multiple industries. As a result, care should be taken in<br>comparing results over time.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>48<br>Climate-related scenario analysis results – physical risk<br>Table 20 shows the results of our climate-related scenario analysis to estimate the areas of our lending portfolio exposed to heightened physical risk. Refer to Section 'Methodology – Climate-related<br>scenario analysis' in the Appendix for more detail on the scenarios and analysis conducted.<br>TABLE 20: RESULTS OF CLIMATE-RELATED SCENARIO ANALYSES ASSESSING PHYSICAL RISK<br>Reporting year 2025 2024 2023<br>Portfolio Metric<br>Westpac<br>Time Horizon<br>Current<br>period<br>Medium-Term (1 to<br> <5 years)<br>Long-Term<br>(5 years+)<br>Short-term<br>(<1 years)<br>Long-Term (5<br>years+)<br>Medium-Term (1 to<br> <5 years)<br>Long-Term (5<br>years+)<br>Scenario endpoint 2025 2030 2050 2025 2030 2050 2025 2030 2050<br>Scenario<br>Australian<br>retail mortgages % of portfolio exposed to heightened physical riska<br>RCP2.6 6.2% 6.4% 6.9% 6.2% 6.4% 6.9% 6.2% 6.5% 6.9%<br>RCP4.5 6.2% 6.4% 7.0% 6.2% 6.4% 7.0% 6.2% 6.5% 7.0%<br>RCP8.5 6.2% 6.5% 7.2% 6.2% 6.5% 7.2% 6.2% 6.5% 7.2%<br>New Zealand<br>retail mortgages % of portfolio vulnerable to severe rainfall flood riskb,c,d<br>SSP1-2.6 NR 2.0% 2.1% NR NR NR NR NR NR<br>SSP2-4.5 NR 2.0% 2.2% NR NR NR NR NR NR<br>SSP5-8.5 NR 2.0% 2.4% NR NR NR NR NR NR<br>New Zealand<br>commercial real<br>estate lending<br>% of portfolio vulnerable to severe rainfall flood riskb,c,d<br>SSP1-2.6 NR 2.1% 2.4% NR NR NR NR NR NR<br>SSP2-4.5 NR 2.1% 2.4% NR NR NR NR NR NR<br>SSP5-8.5 NR 2.1% 2.6% NR NR NR NR NR NR<br>New Zealand<br>agricultural<br>lending<br>% of portfolio vulnerable to severe rainfall flood riskb,c,d<br>SSP1-2.6 NR 2.7% 2.7% NR NR NR NR NR NR<br>SSP2-4.5 NR 2.7% 2.9% NR NR NR NR NR NR<br>SSP5-8.5 NR 2.7% 3.0% NR NR NR NR NR NR<br>Group<br>$bn of total TCE exposed to heightened physical riskse or<br>vulnerable to severe rainfall flood riskf,g<br>IPCC RCP4.5 (AU) /<br>IPCC SSP2-4.5 (NZ)<br>34.0 37.0 40.4 33.2 34.3 37.3 32.1 33.3 36.1<br>% of total TCE exposed to heightened physical riskse<br> or<br>vulnerable to severe rainfall flood riskf<br>2.6% 2.8% 3.1% 2.6% 2.7% 3.0% 2.6% 2.7% 3.0%<br>a. Calculated at 31 August 2025, 31 August 2024, and 31 August 2023 for 2025, 2024, and 2023 reporting years, respectively.<br>b. Analyses covering NZ portfolios that consider other perils outside of the most significant rainfall flood risk are not shown here or included in the totals.<br>c. Replaces the metric measuring the % of portfolio at heightened risk of sea-level rise by 2050 under the IPCC RCP8.5 scenario that was reported in earlier periods.<br>d. 2025 metrics for Current Period (i.e., to 2025) are not reported due to limited availability of climate data for 2025. 2023 and 2024 metrics are not reported as the calculation of these new metrics against historic balance sheet<br>dates does not produce reliable outputs.<br>e. In Australian retail mortgages.<br>f. In New Zealand retail mortgages, commercial property lending, and agricultural lending.<br>g. The exchange rate for NZD: 1.1377 is based on value today (discounted spot rates) at 30 September 2025.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>CLIMATE-RELATED SCENARIO ANALYSIS<br>49<br>Australian retail mortgages credit quality metrics<br>under different climate scenarios<br>In FY25, we deepened our understanding of physical risk in<br>our Australian retail mortgages portfolio.<br>We have estimated credit quality metrics in our Australian<br>retail mortgage portfolio under several climate scenarios for<br>the long-term time horizon.<br>The estimated metrics in Table 21 are consistent with those<br>for the broader Australia Mortgage Retail Portfolio and are<br>not materially different.<br>The metrics in Table 21 are calculated using data from<br>Westpac’s internal mortgage systems and are based on<br>outstanding balances. This credit quality analysis builds<br>on the climate-related scenario analysis for physical risk<br>described on the previous page and detailed in the<br>methodology section in the Appendix. As this analysis is<br>prepared on an outstanding balance basis, the scenario<br>analysis result should not be compared with other physical<br>risk analysis for the same portfolio in this Report that are<br>prepared on a TCE basis.<br>Refer to the Risk Management section on page 42 to<br>44 and the and 'Methodology – Climate-related scenario<br>analysis' section in the Appendix on page 107 to 112 for<br>more information on our physical risk climate scenario<br>analysis methodology, including data sources, exclusions,<br>and assumptions. Refer to Glossary on page 72 for more<br>information on RCPs.<br>TABLE 21: AUSTRALIAN RETAIL MORTGAGES CREDIT QUALITY METRICS UNDER DIFFERENT CLIMATE SCENARIOS<br>Credit quality metrics<br>(based on outstanding balance)<br>Reporting year 2025a 2024a<br>Scenario RCP2.6 RCP8.5 RCP2.6 RCP8.5<br>Westpac Time Horizon<br>Long-Term<br>(5 years+)<br>Long-Term<br>(5 years+)<br>Long-Term<br>(5 years+)<br>Long-Term<br>(5 years+)<br>Scenario endpoint 2050 2050 2050 2050<br>Dynamic LVR weighted averageb 49.3% 49.2% 48.3% 48.2%<br>% of portfolio >90% DLVRc 1.8% 1.8% 1.7% 1.6%<br>90+ day delinquencies (%)d 0.7% 0.7% 1.1% 1.1%<br>Scenario analysis result (% of portfolio exposed to heightened physical riske) 6.9%f 7.2%f 4.1% 4.5%<br>a. Calculated at 31 August 2025 and 31 August 2024 for 2025 and 2024 reporting years, respectively.<br>b. Dynamic LVR is the weighted current loan to current value ratio for high-risk properties accounting for the current loan balance, changes in security<br>value, offset account balances and other loan adjustments. The property valuation source is Cotality. Weighted average LVR calculation considers<br>the size of outstanding balances. More information on Westpac's mortgage portfolio is provided in our Investor Discussion Pack.<br>c. DLVR is the dynamic loan-to-value ratio. The percentage of high-risk properties with a current loan to current value ratio above 90%.<br>d. The percentage of high-risk properties that are 90 days or more in arrears.<br>e. Share of Australian mortgage portfolio outstanding balance in locations identified as likely to be exposed to higher physical risks by the scenario<br>endpoint year.<br>f. In FY25, we have changed the source of our physical risk data and have updated our methodology. As such, these FY25 figures are not comparable<br>to FY24.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 50<br>METRICS AND<br>TARGETS<br>CONTENTS<br>INTRODUCTION 51<br>OPERATIONAL GHG EMISSIONS AND<br>ENERGY CONSUMPTION<br>52<br>SCOPE 3 FINANCED EMISSIONS 54<br>FINANCED EMISSIONS SECTOR TARGETS 56<br>CLIMATE-RELATED OPPORTUNITIES 69
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 51<br>How to read this section<br>This section sets out the cross-industry metrics we use to<br>assess and manage climate-related risks and opportunities,<br>and outlines our climate-related targets<br>and their associated detail.<br>Refer to the Strategy section for information about the<br>performance of certain climate-related metrics and targets<br>and our progress towards meeting them.<br>To assist with referencing and comparability, the adjoining<br>table lists the cross-industry metric categories and the<br>location of related metrics within this Report.<br>FOOTNOTES TO TABLE 22:<br>1. 2021 baselines for scope 1, 2 and scope 3 upstream targets<br>adjusted for COVID pandemic and other impacts. The Appendix<br>section ‘Methodology – Operational Emissions – Scope 1, 2 and<br>Upstream Scope 3’ contains the scope 3 upstream emissions<br>categories included.<br>2. The Appendix section ‘Methodology – Operational Emissions –<br>Scope 1, 2 and Upstream Scope 3’ contains the scope 3 upstream<br>emissions categories included.<br>3. Target is based on Total Committed Exposure (or balance, which is<br>applicable for residential mortgages) at a point in time.<br>4. Target is based on our share of the cumulative value of bonds<br>facilitated between 1 October 2021 and 30 September 2030.<br>TABLE 22: CROSS-INDUSTRY METRIC CATEGORIES AND OUR CLIMATE-RELATED METRICS AND TARGETS<br>Cross-industry<br>metric category<br>Climate-related metric Climate-related target Reference for<br>more information<br>Scope 1<br>GHG emissions<br> • Scope 1 and 2 emissions<br> • Upstream scope 3 emissions<br> • Reduce scope 1 and 2 absolute<br>emissions by 64% from our 2021<br>baseline by 20251<br> • Reduce scope 1 and 2 absolute<br>emissions by 76% from our 2021<br>baseline by 20301<br>Page 19 to 21.<br>Page 52 to 53.<br>Scope 2<br>(location-based)<br>GHG emissions<br>Page 52 to 53.<br>Scope 2<br>(market-based)<br>GHG emissions<br>Page 19 to 21.<br>Page 52 to 53.<br>Scope 3 GHG<br>emissions<br>(upstream)<br> • Reduce upstream scope 3<br>absolute emissions by 50% from<br>our 2021 baseline by 20301,2<br>Page 19 to 21.<br>Page 52 to 53.<br>Scope 3<br>greenhouse gas<br>emissions (our<br>financed<br>emissions)<br> • Total estimated financed emissions (scope 1 and 2)<br> • Total estimated financed emissions (scope 1, 2 and 3)<br> • Estimated financed emissions intensity (scope 1, 2<br>and 3)<br> • Percentage reduction in emissions relative to<br>target baselines<br> • 2030 scope 3 financed emissions<br>sector targets (13 targets)<br>Page 23 to 25.<br>Page 54 to 68.<br>Carbon offsets • Total offsets retired • No target set Page 21.<br>Page 52.<br>Climate-related<br>transition risks<br> • Percentage of TCE to industries that may be exposed<br>to higher transition risk (based on Transition Risk<br>Board RAS)<br> • No target set Page 45 to 47.<br>Climate-related<br>physical risks<br> • Percentage of total TCE likely to be exposed to<br>higher physical risks or vulnerable to severe rainfall<br>flood risk<br> • Percentage of the current Australian Mortgage<br>portfolio exposed to higher physical risks<br> • No target set Page 48 to 49.<br>Climate-related<br>opportunities<br> • Total lending (TCE) or balance under our Sustainable<br>Finance Framework<br> • Cumulative value of bonds facilitated since<br>1 October 2021<br> • $55 billion in sustainable finance<br>lending at 30 September 20303<br> • $40 billion in sustainable<br>bond facilitation4<br>Page 31 to 32.<br>Page 69.<br>Capital<br>deployment<br> • Climate-related expenditure • No target set Page 34 to 35.<br>Internal<br>carbon price<br> • Not applicable • No target set Page 35.<br>Remuneration • Percentage of executive management remuneration<br>recognised in the current period that is linked to<br>climate-related considerations<br> • No target set Page 11.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 52<br>OPERATIONAL GHG EMISSIONS AND ENERGY CONSUMPTION<br>Operational GHG emissions1,2<br>TABLE 23: OPERATIONAL GHG EMISSIONS (LOCATION-BASED) TONNES OF CARBON DIOXIDE EQUIVALENT (TCO2-E)<br>2025 2024<br>Location-based GHG emissions<br>Scope 1 emissions 4,714 6,262<br>Scope 2 emissions 45,360 51,378<br>Scope 3 upstream emissions 66,507 70,069<br>Total scope 1 and 2 emissions 50,074 57,640<br>Total scope 1, 2 and 3 upstream emissionsa 116,581 127,709<br>a. Total scope 1 and 2 emissions reflects Westpac’s consolidated<br>Group total. Westpac did not control or operate any other material<br>investees (associates, joint ventures and unconsolidated subsidiaries)<br>for the reporting period.<br>TABLE 24: OPERATIONAL GHG EMISSIONS (MARKET-BASED) TONNES OF CARBON DIOXIDE EQUIVALENT (TCO2-E)<br>2025 2024<br>Market-based GHG emissions<br>Scope 1 emissions 4,714 6,262<br>Scope 2 emissions 1,963 2,303<br>Scope 3 upstream emissions 56,469 57,655<br>Total scope 1 and 2 emissions 6,677 8,565<br>Total scope 1, 2 and 3 upstream emissions 63,146 66,220<br>Scope 1 and 2 emissions/employee (FTE)a 0.2 0.2<br>a. Tonnes of scope 1 and 2 greenhouse gas emissions (market-based)<br>per average full-time equivalent employee (FTE) for the year ending<br>30 June.<br>TABLE 25: CARBON OFFSETTING ACCOUNTS<br>2024a<br>2023<br>GHG emissions (tCO2-e)<br>Total scope 1, 2 and 3 upstream emissionsb<br>(tCO2-e) (Climate Active – Australia)c<br>63,099 73,069<br>Total scope 1, 2 and 3 upstream emissions<br>(tCO2-e) (Other International – excluding<br>New Zealand)<br>8,045 7,686<br>Total scope 1, 2 and 3 upstream<br>emissionsd<br> (tCO2-e) (Toitū Net Carbon Zero<br> – New Zealand)<br>3,767 4,705<br>Total scope 1, 2 and 3 upstream<br>emissions (tCO2-e)<br>74,911 85,460<br>Total offsets retired 73,816 86,091<br>a. The latest reporting period for carbon offsets is presented one year<br>in arrears. This is because offsets are retired only after our emissions<br>have been calculated and verified for the reporting year.<br>b. Emissions streams captured are represented in our Climate Active<br>Public Disclosure Statements.<br>c. Climate Active Standard allows organisations to claim default<br>delivered renewable electricity from the grid, such as LGC surrenders<br>made by a jurisdiction with a renewable electricity target. RE100<br>Standard allows claims of default delivered renewables only where<br>relevant information from the electricity supplier is available.<br>Westpac has not claimed the default renewables benefit in its<br>market-based emissions figures when LGC were not evidenced.<br>We also retire offsets for additional emissions streams that are<br>estimated and included in our Climate Active disclosure as ‘uplifts’.<br>This results in a difference between Westpac’s market-based<br>emissions in Table 24 and market-based emissions in the carbon<br>offset summary table.<br>d. Emissions streams captured are represented in our Toitū Net Carbon<br>Zero certification.<br>Operational energy consumption<br>TABLE 26: ENERGY CONSUMPTION GIGAJOULES (GJ)<br>2025 2024<br>Energy consumption<br>Stationary energy – natural gas, diesel, LPG 15,815 17,297<br>Transport energy – fleet fuels 44,967 55,705<br>Electricity 312,351 342,162<br>Total energy consumption 373,133 415,164<br>Renewable electricity (supported by EACs) 312,563 342,257<br>TABLE 27: RENEWABLE ENERGY PERCENTAGE (%)a<br>2025 2024<br>Renewable energy<br>Renewable electricity, RE100b<br>96 96<br>Renewable electricityc 100 100<br>Renewable energyd 84 82<br>a. Renewable energy percentage is calculated as the total renewable<br>electricity (GJ) sourced divided by the total energy consumption<br>(GJ) of stationary energy, transport energy and electricity from<br>facilities and vehicle fleet within Westpac’s operational control for<br>the reporting period.<br>b. Renewable electricity use supported by energy attribute certificates<br>(EACs) which meets RE100’s country-of-origin requirements.<br>c. Renewable electricity use supported by EACs, some of which<br>are sourced outside the country of consumption. Specifically, for<br>our Pacific Island operations, we over-surrendered Large-scale<br>Generation Certificates (LGCs) in the Australian market, due to<br>challenges of developing local renewable energy infrastructure and<br>the lack of renewable energy certificate markets. We will continue to<br>identify opportunities to lift local sourcing.<br>d. Prior year number restated to align with the total renewable<br>electricity purchased (not RE100 methodology).<br>1 The Appendix section ‘Methodology – Operational Emissions – Scope 1, 2 and Upstream Scope 3’ provides more detail on our calculation methodology and contains the scope 3 upstream emissions categories included.<br>2 We report using both the location-based and market-based methods. The location-based method reflects the average emissions intensity of the electricity grids where our operations are located. The market-based method reflects emissions from<br>the electricity we have purposefully sourced through contractual instruments, such as Virtual Power Purchase Agreements (VPPA), which support renewable energy.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>OPERATIONAL GHG EMISSIONS AND ENERGY CONSUMPTION<br>53<br>Operational emissions targets<br>Approach to setting and reviewing our operational<br>emissions targets<br>PROCESSES FOR SETTING AND REVIEWING OUR<br>OPERATIONAL EMISSIONS TARGETS<br>Targets are set with consideration of global and national<br>climate commitments, our climate ambition, and the<br>reasonableness of Westpac achieving these targets. Final<br>endorsement is provided by the Executive Team prior to<br>targets being approved by the Board.<br>We reassess and revise, where necessary, our targets at<br>least every five years to seek to ensure they remain aligned<br>with the latest climate science.<br>VALIDATION OF OUR OPERATIONAL EMISSIONS TARGETS<br>AND METHODOLOGIES<br>Our operational emissions targets and methodologies have<br>not been independently assured, however third-party advice<br>was obtained confirming target alignment with a 1.5°C<br>climate scenario for disclosed sources.<br>REVISIONS TO OUR OPERATIONAL EMISSIONS TARGETS<br>There were no revisions to our operational emissions<br>targets in FY25.<br>TABLE 28: ADDITIONAL INFORMATION ABOUT OUR OPERATIONAL EMISSIONS TARGETS<br>Detail TARGET: Reduce our scope 1 and 2 absolute<br>emissions by 76% by 2030 from our 2021 baseline<br>TARGET: Reduce our scope 3 upstream absolute<br>emissions by 50% by 2030 from our 2021 baseline<br>Metric used to set<br>the target<br>This target is a gross scope 1 and 2 GHG<br>emissions reduction target, measured in metric<br>tonnes CO2<br> equivalent (tCO2-e), applying a market-based accounting approach. Carbon offsets are<br>not considered.<br>This target is a gross scope 3 upstream GHG emissions<br>reduction target, measured in metric tonnes CO2<br>equivalent (tCO2-e), applying a market-based accounting<br>approach. Carbon offsets are not considered.<br>Objective of the target Mitigation of scope 1 and 2 GHG emissions. Mitigation of upstream scope 3 GHG emissions.<br>Part of Westpac to which<br>the target applies<br>Applies to all Westpac Group. Applies to all Westpac Group.<br>Scope of emissions and<br>greenhouse gases covered<br>by the targeta<br> • Scope 1 and 2 emissions; and<br> • The greenhouse gases covered by the target<br>include carbon dioxide (CO2<br>), methane (CH4<br>),<br>nitrous oxide (N2O),<br>and hydrofluorocarbons (HFCs).<br> • Selected upstream scope 3 emissions as detailed<br>in the Appendix section 'Methodology – Operational<br>Emissions – Scope 1, 2 and Upstream Scope 3’; and<br> • The greenhouse gases covered by the target include<br>carbon dioxide (CO2<br>), methane (CH4<br>), nitrous oxide<br>(N2O), and hydrofluorocarbons (HFCs).<br>Sectoral<br>decarbonisation approach<br>Cross-sector absolute reduction approach to reduce<br>emissions at a minimum of 4.2% annually.<br>Cross-sector absolute reduction approach to reduce<br>emissions at a minimum of 4.2% annually.<br>Period over which the<br>target applies<br>1 July 2021 to 30 June 2030. 1 July 2021 to 30 June 2030.<br>Base period from which<br>progress is measured<br>1 July 2020 to 30 June 2021. 1 July 2020 to 30 June 2021.<br>Milestones and<br>interim targets<br>Yes, interim target of 64% reduction by 2025. No.<br>Type of target Absolute. Absolute.<br>How the latest<br>international agreement on<br>climate change, including<br>jurisdictional commitments<br>that arise from that<br>agreement, has informed<br>the target<br>Our operational scope 1 and 2 emissions target<br>is aligned with the latest international agreements<br>on climate change to limit warming to well below<br>2°C above pre-industrial levels and pursuing efforts<br>to limit temperature increase to 1.5°C above pre-industrial levels.<br>Our upstream scope 3 emissions target is aligned with<br>a 1.5-degree reduction trajectory but covers currently<br>disclosed sources only, as detailed in the Appendix<br>section 'Methodology – Operational Emissions – Scope<br>1, 2 and Upstream Scope 3’.<br>How the target contributes<br>to limiting global warming<br>to 1.5 degrees Celsius<br>(including basis for<br>this view)<br>The target is aligned with the latest international<br>agreements on climate change to limit warming<br>to 1.5 degrees Celsius above pre-industrial levels.<br>To help limiting global warming we source<br>the equivalent of 100% of our electricity from<br>renewables globally.<br>The target is aligned with the latest international<br>agreements on climate change to limit warming to<br>1.5 degrees Celsius above pre-industrial levels. To<br>help limiting global warming we are working with<br>employees and key suppliers to encourage them<br>to source renewable electricity for their homes and<br>businesses, promote circularity and improve the landfill<br>waste diversion rate for our operations (see page 20).<br>WESTPAC a. The greenhouse gases covered in the target represent those relevant to Westpac. 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 54<br>SCOPE 3 FINANCED EMISSIONS<br>Our financed emissions are calculated using Total Committed Exposure (TCE), which we consider to be a more comprehensive measure of lending when estimating financed emissions. TCE better reflects the funds we make<br>available to customers and their potential to contribute to or mitigate emissions. This table is a detailed sector breakdown of our scope 3 financed emissions presented on page 24.<br>TABLE 29: GROUP SCOPE 3 FINANCED EMISSIONS ASSOCIATED WITH LOANS, BONDS, AND UNDRAWN LOAN COMMITMENTS BY SECTOR (CALCULATED USING TCE)<br>FY24 FY23<br>SECTOR<br>% EXPOSURE OR LOAN<br>BALANCE FOR WHICH<br>WE ESTIMATE<br>FINANCED EMISSIONS<br>SCOPE 1<br>AND 2<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)a<br>SCOPE 3<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)a,b<br>AVERAGE<br>DATA<br>QUALITY<br>SCOREc<br>EMISSIONS<br>INTENSITY<br>(SCOPE 1, 2,<br>AND 3)<br>(kgCO2-e/$)d<br>% EXPOSURE OR LOAN<br>BALANCE FOR WHICH<br>WE ESTIMATE<br>FINANCED EMISSIONS<br>SCOPE 1<br>AND 2<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)a<br>SCOPE 3<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)a,b<br>AVERAGE<br>DATA<br>QUALITY<br>SCOREc<br>EMISSIONS<br>INTENSITY<br>(SCOPE 1, 2,<br>AND 3)<br>(kgCO2-e/$)e<br>Accommodation, cafes & restaurants 100 0.9 NR 4.6 0.074 96 0.2 NR 4.6 0.021<br>Agriculture, forestry & fishing 100 5.7 NR 4.1 0.224 99 7.3 NR 4.2 0.307<br>Construction 100 2.1 NR 4.4 0.153 92 0.4 NR 4.2 0.030<br>Finance & insurance 52 0.2 NR 4.5 0.002 40 0.4 NR 4.6 0.004<br>Manufacturing 99 5.2 4.0 3.8 0.368 92 3.7 6.0 3.6 0.424<br>Mining 99 2.0 5.1 3.3 0.910 89 1.2 7.7 2.9 1.228<br>Property 98 0.7 NR 4.5 0.008 95 0.9 NR 4.7 0.012<br> — Secured Commercial Real Estate NR 0.6 NR 4.5 0.013 NR 0.8 NR 4.9 0.014<br> — Other NR 0.1 NR 4.6 0.003 NR 0.1 NR 4.3 0.004<br>Property services & business services 100 0.5 NR 4.3 0.022 91 0.2 NR 4.2 0.010<br>Services 99 0.9 NR 4.3 0.035 90 0.9 NR 4.2 0.036<br>Trade 96 2.1 NR 4.2 0.069 89 1.6 NR 3,9 0.059<br>Transport & storage 100 2.9 NR 4.0 0.142 89 1.1 NR 4.1 0.071<br>Utilities 100 5.0 NR 4.0 0.210 91 5.1 NR 3.5 0.297<br>Otherf 74 0.1 NR 4.9 0.037 36 0.1 NR 4.8 0.070<br>Total – Business and<br>Institutional Lending 65 28.4 9.1 4.3 0.099 60 23.0 13.7 4.3 0.108<br>Total – Retail Lending –<br>Residential Mortgagesg<br>84 3.3 NR 4.1 0.006 81 3.2 NR 4.1 0.006<br>Total estimated FY24<br>financed emissionsh<br>73 31.6 9.1 4.2 0.045 69 26.2 13.7 4.2 0.048<br>a. Calculated as our estimated share of customers’ scope 1, 2 and scope 3 emissions respectively, which together represent our scope 3 financed emissions.<br>b. NR – not reported. We do not report customers' scope 3 emissions for most sectors. Scope 3 emissions are calculated only for sectors where these emissions are particularly relevant and reliable data exists.<br>c. Data quality score is measured out of 5, with lower scores better. Calculated for scope 1 and 2 only.<br>d. Emissions intensity is kgCO2-e/($ lending). The denominator of lending varies by segment: $ TCE for Commercial Real Estate; $ TCE for Business, commercial and institutional lending; $ outstanding balance for Australian<br>residential mortgages; and, $ TCE for New Zealand residential mortgages. Australian dollars.<br>e. Emissions intensity same as above, except New Zealand residential mortgages and Project Finance where $ outstanding balance was applied for FY23.<br>f. Includes customers and exposures for which the industry classification (ANZSIC) code could not be reliably identified.<br>g. Outstanding loan balance is used for Australian Residential Mortgages in FY24 and used for Australian and New Zealand Residential Mortgages in FY23.<br>h. Individual sector and portfolio figures may not sum due to rounding.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>SCOPE 3 FINANCED EMISSIONS<br>55<br>For completeness, we also report our financed emissions on an outstanding loan balance basis for all three asset classes (see Table 30) and on the basis of our undrawn commitments for our<br>business, commercial and institutional lending including for commercial real estate (see Table 31).<br>Refer to the Appendix Section 'Methodology – Scope 3 financed emissions' for more information about our financial emissions data and methodologies and the Glossary for more information on TCE.<br>TABLE 30: GROUP SCOPE 3 FINANCED EMISSIONS ASSOCIATED WITH LOANS AND BONDS<br>ONLY (CALCULATED USING OUTSTANDING LOAN BALANCE) BY SECTOR<br>FY24<br>SECTOR % LOAN<br>BALANCE<br>FOR WHICH WE<br>ESTIMATE<br>FINANCED<br>EMISSIONS<br>SCOPE 1<br>AND 2<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)a<br>SCOPE 3<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)b<br>AVERAGE<br>DATA<br>QUALITY<br>SCOREc<br>EMISSIONS<br>INTENSITY<br>(SCOPE 1,<br>2, AND 3)<br>(kgCO2-e/$)d<br>Total – Business and<br>Institutional Lending 98 17.8 3.4 4.0 0.091<br>Total – Retail Lending –<br>Residential Mortgages 91 3.2 NR 4.1 0.006<br>Total estimated FY24<br>financed emissionse 92 21.0 3.4 4.1 0.033<br>a. Calculated as our estimated share of customers’ scope 1, 2 and scope 3 emissions respectively, which<br>together represent our scope 3 financed emissions.<br>b. NR – not reported. We do not report customers' scope 3 emissions for most sectors. Scope 3 emissions are<br>calculated only for sectors where these emissions are particularly relevant and reliable data exists.<br>c. Data quality score is measured out of 5, with lower scores better. Calculated for scope 1 and 2 only.<br>d. Emissions intensity is kgCO2-e/($ lending). The denominator of lending is $ outstanding balance for<br>Commercial Real Estate, $ outstanding balance for Business, commercial and institutional lending, and, $<br>outstanding balance for Residential mortgages. Australian dollars.<br>e. Individual sector and portfolio figures may not sum due to rounding.<br>TABLE 31: GROUP SCOPE 3 FINANCED EMISSIONS ASSOCIATED WITH UNDRAWN LOAN<br>COMMITMENTS ONLY BY SECTOR<br>FY24<br>SECTOR % EXPOSURE<br>FOR WHICH WE<br>ESTIMATE<br>FINANCED<br>EMISSIONS<br>SCOPE 1<br>AND 2<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)a<br>SCOPE 3<br>FINANCED<br>EMISSIONS<br>(MtCO2-e)b<br>AVERAGE<br>DATA<br>QUALITY<br>SCOREc<br>EMISSIONS<br>INTENSITY<br>(SCOPE 1,<br>2, AND 3)<br>(kgCO2-e/$)d<br>Total – Business and<br>Institutional Lending 32 9.8 5.1 4.0 0.135<br>Total – Retail Lending –<br>Residential Mortgagese NR NR NR NR NR<br>Total estimated FY24<br>financed emissions 32 9.8 5.1 4.0 0.135<br>a. Calculated as our estimated share of customers’ scope 1, 2 and scope 3 emissions respectively, which<br>together represent our scope 3 financed emissions.<br>b. NR – not reported. We do not report customers' scope 3 emissions for most sectors. Scope 3 emissions are<br>calculated only for sectors where these emissions are particularly relevant and reliable data exists.<br>c. Data quality score is measured out of 5, with lower scores better. Calculated for scope 1 and 2 only.<br>d. Emissions intensity is kgCO2-e/($ lending). The denominator of lending is $ undrawn loan commitments<br>for Commercial Real Estate and $ undrawn loan commitments for Business, commercial and institutional<br>lending. Australian dollars.<br>e. NR – not reported due to data availability.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 56<br>FINANCED EMISSIONS SECTOR TARGETS<br>Overview and approach<br>This section outlines our approach to setting 13 financed<br>emissions sector targets and FY24 progress. Each of the<br>targets are interim 2030 targets.<br>OBJECTIVE OF OUR SECTOR TARGETS<br>The objective of our financed emissions sector targets is<br>to mitigate Westpac's financed emissions, improving the<br>carbon efficiency of our portfolio and contributing towards<br>our climate ambition.<br>HOW THE LATEST INTERNATIONAL AGREEMENTS ON<br>CLIMATE CHANGE HAVE INFORMED OUR SECTOR TARGETS<br>For our targets we have referenced the UNEP FI Guidelines<br>for Climate Change Target Setting1<br> and credible and<br>well-recognised science-based reference scenarios, tools,<br>methodologies and principles tailored to each sector, as<br>outlined in this Report.<br>Our targets are informed by climate scenarios2<br> that align to<br>the goals of the Paris Agreement (i.e., "well below 2°C" or<br>1.5°C by 2100 trajectory scenarios).<br>HOW OUR SECTOR TARGETS CONTRIBUTE TO LIMITING<br>GLOBAL WARMING TO 1.5 DEGREES CELSIUS<br>Except for our steel target, our targets are based on<br>scenarios which are aligned with a 1.5°C by 2100 trajectory<br>and therefore in achieving these targets Westpac is<br>contributing to limiting global warming to 1.5°C. We have<br>not formed a view on how our steel target contributes to<br>limiting global warming to 1.5°C, our steel target is based<br>on a scenario which is aligned with a well-below 2°C by<br>2100 trajectory.<br>Approach to setting and reviewing our sector targets<br>CALCULATING FINANCED EMISSIONS<br>Westpac estimates the Group’s scope 3 financed emissions<br>by assessing the proportion of emissions of individual<br>customers or industry sectors attributable to financing we<br>provide, using the committed exposure for our lending<br>to customers.<br>The approach for calculating financed emissions for the<br>Group is slightly different to the approach applied to<br>estimating financed emissions for some of our sector-level targets.<br>Group financed emissions are calculated at a portfolio level.<br>For our sector targets we often use more granular data<br>to assess both a company’s emissions and our portion of<br>those emissions.<br>For the Australian residential real estate and agriculture<br>targets the sector-level and portfolio-level Group financed<br>emissions approaches are broadly aligned.<br>There are some small differences in data sources used<br>for the different methodologies due to these approaches,<br>but the sources are not materially different. Over time,<br>as data improves, we expect these approaches to<br>gradually converge.<br>FACILITATED EMISSIONS<br>Our capital markets, underwriting, and syndicated lending<br>activities constitute a small part of our overall business,<br>representing less than 5% of total lending.<br>Within sectors where we have set financed emissions<br>sector targets, facilitated emissions associated with these<br>activities are similarly limited in scale, accounting for no<br>more than 5% of financed emissions on average.<br>We expect to reassess the materiality of facilitated<br>emissions when we next review our targets.<br>SELECTING REFERENCE SCENARIOS<br>In determining our targets, we selected appropriate science-based reference scenarios. We have established a set of<br>principles to assist with scenario selection. No scenario is<br>perfect and it is difficult to fully align with the regional<br>characteristics of the sectors.<br>As a result, our scenarios may differ from other industry<br>participants, and may not align with all the principles.<br>PRINCIPLES DETAIL<br>1.5°C<br>alignment<br> • Scenario should meet net-zero emissions by<br>2050 or sooner, consistent with 1.5°C alignment.<br>UNEP FI<br>Guidelines<br>For Climate<br>Target<br>Setting for<br>Banks<br> • Credible, well recognised source with a science-based scenario;<br> • Low/no overshoot (the IPCC defines as – if<br>temperatures exceed 1.5°C by less than 0.1°C;<br>but return to less than 1.5°C in 2100).<br> • Low reliance on offsets; and<br> • Minimise misalignment with other UN<br>Sustainable Development Goals.<br>Regional/<br>sector<br>granularity<br> • Should have an emissions trajectory and<br>segmentation relevant to Australia and New<br>Zealand; and<br> • Ability to align to components of the value<br>chain consistent with the companies in the<br>sector boundary.<br>Recognised<br>use<br> • Industry accepted/backed scenario; and<br> • Used by other industry participants.<br>1 UNEP-FI Net-Zero Banking Alliance (NZBA), Guidelines for Climate Target Setting for Banks Version 2 (2024).<br>2 These reference scenarios are not necessarily utilised within the climate-related scenario analysis discussed in this Report.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>57<br>DETERMINING CUSTOMERS IN THE TARGET BOUNDARY<br>The boundary for each target has been determined<br>by focusing on the value chain addressed by science-based reference scenario used for the target. To identify<br>customers in scope, we use ANZSIC codes for initial<br>screening and, depending on the target, we supplement<br>with more detailed knowledge about the companies so<br>that the nature of the companies' operations aligns with<br>the target.<br>APPROACH TO DIVERSIFIED COMPANIES<br>For our Australian models, where an Institutional customer<br>has operations in multiple segments that are also in-scope of multiple financed emissions sector targets, we<br>apportion our customers Enterprise Value Including Cash<br>(EVIC) and emissions between the applicable sector targets.<br>The method we use to apportion our customers EVIC and<br>emissions is selected based on available customer data<br>preferencing where our customers report segments aligned<br>to the target sectors. We will only use this approach where<br>our customer meets a minimum TCE threshold due to the<br>added complexity of this methodology.<br>ESTABLISHING SECTOR TARGETS<br>Our targets undergo a rigorous sequence of approvals<br>to help ensure our commitments are robust. Our target-setting process is managed by the division that has<br>the main relationship with the sector. Targets are then<br>reviewed by various Group functions before being submitted<br>to the Board for approval (with the exception of our<br>Aluminium target which was approved by the CEO). This<br>approach supports the development of targets that are<br>both ambitious and achievable.<br>GROSS OR NET GREENHOUSE GAS EMISSIONS TARGETS<br>The intent is that our financed emissions sector targets are<br>gross targets. We cannot guarantee, however, that the<br>inputs of our progress against targets (including customer<br>emissions data) does not include net emissions.<br>USE OF CARBON CREDITS TO ACHIEVE OUR TARGETS<br>We believe reducing gross emissions should be a priority<br>action in achieving targets and the transition to net-zero.<br>We recognise carbon offsets are likely to play a role to<br>supplement decarbonisation in line with climate science-based scenarios. We have not purchased, nor do we intend<br>to purchase carbon offsets to meet our financed emissions<br>sector targets. We understand that some customers are<br>using or may use offsets to meet their decarbonisation<br>targets and some of the data we use may also include<br>customer offsets. It is important to note that we use carbon<br>credits to offset our residual emissions (see Table 25),<br>but these are not considered when assessing progress on<br>our targets.<br>REVIEWING OUR SECTOR TARGETS<br>We expect to review each of our sector targets within five<br>years of setting the target.<br>DATA LIMITATIONS<br>Calculating financed emissions is subject to inherent<br>uncertainties due to data limitations/availability and<br>changing methodologies, as well as evolving scientific<br>knowledge. Non-financial data may be subject to more<br>inherent limitations than financial data, given both its<br>nature and the methods for determining, calculating, and<br>estimating such data. As a result, we extensively use<br>proxy data from third parties. Therefore, the quality of<br>our data varies across our targets. Overall, there are<br>significant uncertainties, limitations, risks, and assumptions<br>in the metrics and modelling behind our financed emissions<br>sector targets.<br>OTHER CONSIDERATIONS<br>Our targets are set at the sector level, and may not align<br>with those of our customers. For this and other reasons,<br>the pathway to achieving our targets may not be gradual<br>or linear. The emissions reduction trajectory may occur in<br>step-changes, or increase in some periods.<br>While we have sought to use best available data and<br>scenarios, various assumptions and estimates have been<br>used. As a result, our targets and baselines (along with the<br>pathways to achieve our targets) are likely to change as<br>data quality improves and better methodologies emerge.<br>MORE INFORMATION<br>More detail on the methodologies of our financed emissions<br>sector targets, what is in-scope in the target boundaries<br>(including the ANZSIC codes used for initial screening), and<br>the parts of Westpac to which the targets apply, is outlined<br>in Table 52, Table 53, and Section 'Methodology – Financed<br>emissions sector targets' in the Appendix.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>58<br>VALIDATION OF OUR SECTOR TARGETS<br>AND METHODOLOGIES<br>Our target baselines have been subject to limited assurance<br>in prior years. We have also obtained limited assurance<br>over the progress of our targets this year as per our<br>independent assurance statement (see page 113 to 116).<br>Our sector targets and associated methodologies have not<br>been independently validated by a third party.<br>REVISIONS TO OUR SECTOR TARGETS<br>In FY25, there were limited changes to our sector targets.<br>Changes were generally made for updated data or new<br>methodologies. Changes and their impacts are outlined<br>in Table 32.<br>Refer to the Appendix for more information about the<br>methodologies of our financed emissions sector targets.<br>TABLE 32: SECTOR TARGET REVISIONS AND IMPACTS<br>Target Methodology revisions Impact of revisions<br>Thermal coal mining In FY24, the sector target boundary was updated to align with Version<br>2 of the NZBA Guidelinesa.<br>The update involved:<br> • Excluding dominant metallurgical coal mines producing a thermal<br>coal by-product; and<br> • Excluding diversified miners that produce a thermal coal product<br>where their dominant activity is not thermal coal.<br>No change to the FY21 baseline.<br>No material impact on progress.<br>Residential real<br>estate (Australia)<br>For FY24, we have adopted a September-end reporting date which is<br>aligned with our reporting year end. Previously August-end was used.<br>Impact is immaterial (<1%) on our baseline or<br>progress so there have been no restatements.<br>Agriculture –<br>Australia beef<br>and sheep<br>In 2025, as part of the Australian Bureau of Statistics’ modernisation<br>of the Agricultural Statistics Program, two methodology updates<br>were introduced, affecting the input data used to calculate our Beef<br>and Sheep emissions. Adopting the new data allowed us to use more<br>appropriate data in our model.<br>Alongside this, we updated the emission factors used in FY23<br>reporting. Due to National Greenhouse Accounts being published two<br>years in arrears, emission factors are usually used for both current<br>and prior year portfolio emissions calculations. This reflects the most<br>recent available data.<br>Minor increase in FY21 baseline, FY22-23<br>progress reporting and FY30 target. Target<br>trajectory remains unchanged.<br>Agriculture –<br>Australia dairy<br>Consistent with beef and sheep, the FY23 dairy portfolio emissions<br>intensity was updated to use FY23 emissions factors. This reflects the<br>most recent available data.<br>Negligible impact (<1%) to FY22-23 portfolio<br>emissions intensity.<br>Agriculture – New<br>Zealand beef<br>and sheep<br>In FY25, we commenced using customer level emissions data for<br>all our NZ agriculture targets when previously regional estimates<br>were used.<br>Updated baseline is 19.8 (from 19.4), FY23<br>progress is 2% above baseline (from 4%<br>below), target is 18.0 (from 17.6).<br>Agriculture – New<br>Zealand dairy<br>Updated baseline is 0.86 (from 0.83), FY23<br>progress is 2% below baseline (from 7%<br>below), target is 0.77 (from 0.75).<br>a. UNEP-FI Net-Zero Banking Alliance (NZBA), Guidelines for Climate Target Setting for Banks Version 2 (2024).<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>59<br>Sector target progress – Power generation<br>TYPE OF TARGET 2021 BASELINE 2030 TARGET<br>(IMPLIED %<br>REDUCTION TO<br>BASELINE YEAR)<br>PROGRESS vs BASELINE %<br>(AND EMISSIONS INTENSITY)<br>ABSOLUTE EMISSIONS<br>MtCO2-ea<br>TCE IN TARGET BOUNDARY<br>2024 2023 2024 2023 2024 2023 2024 (% of<br>Group TCE)<br>Intensity 0.26 tCO2-e/MWh -62% -38% (0.16) -23% (0.20) NA NA $7,215m $5,905m 0.6%<br>a. NA means 'Not Available' – data quality scores and/or certain emissions reporting are not available for all financed emissions sector targets.<br>Sector and portfolio developments<br>The power generation sector plays a vital role in the energy<br>transition, and we continue to support its development. In<br>line with the Australian Energy Market Operator (AEMO),<br>we believe that increased renewables coupled with new<br>storage and gas-powered generation is the most efficient<br>way forward. To support the transition, there is a need<br>to streamline approvals for renewable projects, establish<br>clear generation and storage targets and strengthen the<br>grid. Referencing the AEMO’s roadmaps, the transition must<br>be carefully planned to ensure energy security, reliability,<br>and affordability ensuring we bring community along on<br>the journey.<br>At 30 September 2024 our exposure to the sector was<br>$7.2bn, representing 0.6% of Group TCE. Utilities represent<br>approximately 16% of Westpac's scope 1 and 2 financed<br>emissions for FY24. Most of those emissions relate to<br>electricity generation.<br>Progress and plans<br>At FY24 our emissions intensity was 0.16 tCO2-e/MWh,<br>this was 20% lower than FY23 and is 38% lower than<br>the 2021 baseline. The reduction this year was due to<br>further increases in renewable lending. Progress is tracking<br>favourably below our reference pathway.<br>Reflecting our support for the sector, TCE increased 22% for<br>the year to September 2024.<br>Looking ahead we plan to further expand our renewable<br>energy lending to support regional needs. We also intend<br>to continue supporting customers with their Climate<br>Transition Plans.<br>FIGURE 11: POWER GENERATION<br>tCO₂-e/MWh<br>0.26 0.23 0.20<br>0.16<br>0.10<br>2021 baseline Progress 2030 target<br>CSIRO/ClimateWorks Australia Hydrogen Superpower Scenario<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>0.25<br>0.5<br>0.75<br>The value chain for this sector is represented by the diagram below. We have highlighted in a darker colour the elements of the value chain that are in-scope of our financed emissions sector target.<br>Power<br>Generation Power generation Transmission and distribution Retail Consumption<br>More detail on what is in-scope of the boundary and methodology for this target is outlined in Section 'Methodology – Financed emissions sector targets' of the Appendix.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>60<br>Sector target progress – Upstream oil and gas<br>TYPE OF TARGET 2021 BASELINE 2030 TARGET<br>(IMPLIED %<br>REDUCTION TO<br>BASELINE YEAR)<br>PROGRESS vs BASELINE % ABSOLUTE EMISSIONS<br>MtCO2-e<br>TCE IN TARGET BOUNDARY<br>2024 2023 2024 2023 2024 2023 2024 (% of<br>Group TCE)<br>Absolute 9.2 MtCO2-e -23% -55% -45% 4.1 5.1 $2,298m $3,283m 0.2%<br>Sector and portfolio developments<br>The upstream oil and gas sector is central to energy and<br>industry, but it produces about 15% of global energy-related<br>emissions1<br>. Ways to cut emissions include reducing methane<br>leaks and flaring, electrifying operations, and investing in<br>carbon capture and storage (CCS)1<br>.<br>While global oil demand is projected to peak around<br>2030, gas demand is expected to grow until 20402<br> as we<br>transition to renewables. Recent Australian Government<br>strategies highlight the importance of gas, with an<br>emphasis on affordable and secure energy supply and<br>emissions reduction.<br>The sector is adopting abatement measures through<br>process optimisation and methane leak detection, although<br>the implementation of reservoir large-scale CCS and<br>hydrogen fuel for gas turbines requires further development<br>and investment.<br>Our TCE to oil and gas declined by 30% in the year<br>to September 2024 and represents less than 0.2% of<br>the Group’s total TCE. The oil and gas sector target<br>absolute financed emissions represent approximately 10%<br>of Westpac's scope 1, 2 and 3 financed emissions for FY24<br>(noting there are different methodologies for calculating<br>sector targets and Group financed emissions).<br>Progress and plans<br>In FY24, absolute financed emissions dropped 19% from<br>FY23, and is 55% lower than our FY21 baseline. The<br>decline in emissions over FY24 was mainly due to reduced<br>exposure, mostly amortisation and active management of<br>our portfolio.<br>The lower financed emissions was also due to considering<br>the impact of potential new transactions on our target.<br>We intend to continue engaging with customers on<br>their transition plans, including as part of our lending<br>decisions and having regard to government policy on<br>energy security and affordability. Financed emissions have<br>shown a consistent decline each year since our 2021<br>baseline, although future progress may be more variable.<br>Nonetheless, the commitment to our target remains firm.<br>FIGURE 12: UPSTREAM OIL AND GAS<br>MtCO₂-e<br>9.2<br>7.5<br>5.1<br>4.1<br>7.1<br>2021 baseline Progress 2030 target<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>5<br>10<br>The value chain for this sector is represented by the diagram below. We have highlighted in a darker colour the elements of the value chain that are in-scope of our financed emissions sector target.<br>Oil and Gas Oil and gas exploration, extraction Mid-stream (integrated companies,<br>tolling and stand-alone refining) Downstream (integrated companies only) Oil and gas trading<br>More detail on what is in-scope of the boundary and methodology for this target is outlined in eSection 'Methodology – Financed emissions sector targets' of the Appendix.<br>1 International Energy Agency (IEA), Emissions from Oil and Gas Operations in Net Zero Transitions – A World Energy Outlook Special Report on the Oil and Gas Industry and COP28 (2023).<br>2 International Energy Agency (IEA), World Energy Outlook 2024 (2024).<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>61<br>Sector target progress – Thermal coal mining<br>TYPE OF TARGET 2021 BASELINE 2030 TARGET<br>(IMPLIED %<br>REDUCTION TO<br>BASELINE YEAR)<br>PROGRESS vs BASELINE % ABSOLUTE EMISSIONS<br>MtCO2-e<br>TCE IN TARGET BOUNDARY<br>2024 2023 2024 2023 2024 2023 2024 (% of<br>Group TCE)<br>Absolute 2.46 MtCO2-e -100% -94% -81% 0.15 0.47 $26m $65m <0.1%<br>Sector and portfolio developments<br>Thermal coal plays a major role in the energy sector and<br>has long been the primary source of energy generation in<br>Australia. Export of thermal coal is a significant contributor<br>to Australia’s economy.<br>However, thermal coal mining is a significant emitter though<br>the release of methane in mining through to combustion<br>for industrial processes and energy generation. Accordingly,<br>we believe it is critical that the world transitions away from<br>thermal coal combustion and does so quickly.<br>Progress and plans<br>Over FY24 our financed emissions related to thermal coal<br>declined 67%, predominantly due to repayments on existing<br>facilities with no new commitments approved. This is<br>consistent with our Carbon-Intensive Sector Requirements<br>for thermal coal mining.<br>Our exposure to thermal coal mining was just $26 million<br>at 30 September 2024. Over FY25, we have reduced to zero<br>our corporate lending to institutional thermal coal mining<br>customers1<br>. This is consistent with our target.<br>FIGURE 13: THERMAL COAL MINING<br>MtCO₂-e<br>2.46<br>1.9<br>0.47<br>0.15<br>0.0<br>2021 baseline Progress 2030 target<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>1<br>2<br>3<br>1 At 30 September 2025. In line with our Sustainability Customer Requirements, we have zero corporate lending and will no longer provide bond facilitation for institutional customers with ≥15% of their three-year rolling average revenue coming<br>directly from thermal coal mining.<br>The value chain for this sector is represented by the diagram below. We have highlighted in a darker colour the elements of the value chain that are in-scope of our financed emissions sector target.<br>Thermal<br>Coal Mining Transport and distribution Power generation<br>More detail on what is in-scope of the boundary and methodology for this target is outlined in Section 'Methodology – Financed emissions sector targets' of the Appendix.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>62<br>Sector target progress – Aviation (passenger aircraft operators)<br>TYPE OF TARGET 2021 BASELINE 2030 TARGET<br>(IMPLIED %<br>REDUCTION TO<br>BASELINE YEAR)<br>PROGRESS vs BASELINE %<br>(AND EMISSIONS INTENSITY)<br>ABSOLUTE EMISSIONS<br>MtCO2-e<br>TCE IN TARGET BOUNDARY<br>2024 2023 2024 2023 2024 2023 2024 (% of<br>Group TCE)<br>Intensity 190.6 gCO2-e/<br>passenger km<br>-60% -47% (101.5) -45% (105.3) 0.670 0.605 $780m $922m 0.1%<br>Sector and portfolio developments<br>Aviation is a hard-to-abate sector, responsible for around<br>2.5% of global energy-related CO2<br> emissions, primarily from<br>burning aviation fuel1<br>.<br>Decarbonisation of the sector requires reducing<br>consumption of fossil-based jet fuel, through more efficient<br>aircraft and greater use of lower carbon fuels. This<br>transition is challenging given Aviation is a truly global<br>industry and there are high costs associated with expanding<br>the production and distribution of such fuels.<br>The IEA NZE 2050 reference scenario assumes that<br>Sustainable Aviation Fuel (SAF) will make up around 15%<br>of fuel consumption by 20301<br>.<br>Our passenger aviation target is an emissions intensity<br>metric given the importance of this sector and the need to<br>support customers with their emissions reduction plans.<br>Progress and plans<br>Consistent with sector developments, the emissions<br>intensity of our portfolio has continued to decline. In FY24<br>this was due mostly to more passenger travel (reduction<br>in emissions per passenger) along with the decarbonisation<br>efforts of our in-scope customers.<br>Our sector exposure declined 15% over the year to<br>30 September 2024 although this had little impact on our<br>emissions intensity progress.<br>Looking ahead, future decarbonisation will depend on fleet<br>upgrades to use more efficient aircraft and greater access<br>to sustainable aviation fuel.<br>Globally there has been a rise in policy measures to<br>support development of a SAF industry and the Australian<br>Government announced $250 million in grants to domestic<br>low carbon liquid fuels (LCLF) production through the Future<br>Made in Australia Innovation Fund2<br>.<br>FIGURE 14: AVIATION (PASSENGER AIRCRAFT OPERATORS)<br>gCO₂-e/passenger km<br>190.6<br>156.0<br>105.3101.5<br>76.4<br>2021 baseline Progress 2030 target<br>IEA NZE Scenario<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>100<br>200<br>300<br>The value chain for this sector is represented by the diagram below. We have highlighted in a darker colour the elements of the value chain that are in-scope of our financed emissions sector target.<br>Aviation Aircraft manufacturing Aircraft leasing Scheduled passenger air transport Airport operations<br>More detail on what is in-scope of the boundary and methodology for this target is outlined in Section 'Methodology – Financed emissions sector targets' of the Appendix.<br>1 International Energy Agency (IEA), Aviation Industry Overview (2025).<br>2 Australian Government, Low-carbon liquid fuels of the Future Made In Australia (2025).<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>63<br>Sector targets progress – Cement production, Steel production and Aluminium<br>As at 30 September 2024, we are on track to achieve our 2030<br>Cement, Steel and Aluminium targets and their progress is<br>below our reference sector pathway. Given the small number<br>of customers associated with each target and to ensure their<br>confidentiality, we are not disclosing some figures.<br>Sector and portfolio developments<br>STEEL: Steel is crucial for the net-zero transition and for<br>economic development, with few alternatives available. It<br>is essential for constructing renewable energy assets and<br>supporting electrification and decarbonisation. As such,<br>support for the steel sector, and customers producing<br>metallurgical coal and iron ore (key inputs for large-scale<br>steel production), is vital.<br>Our emissions intensity target considers the expected<br>growth in demand1<br> while encouraging deployment of low-and zero-emissions technologies. Steel’s decarbonisation<br>plans include greater use of renewable energy, increased<br>scrap recycling and development of new technologies to<br>enhance low carbon-intensive steelmaking, and increasing<br>the use of electric smelting. Decarbonisation is expected to<br>increase after 2030 as further technological development is<br>needed to transition away from coal-based blast furnaces1<br>.<br>ALUMINIUM: Aluminium is a versatile material utilised in<br>numerous sectors, playing a pivotal role in supporting the<br>transition to a low-carbon economy. This is particularly<br>through its use in solar panels, electrical infrastructure and<br>transmission systems.<br>Globally aluminium production accounts for approximately<br>3% of direct industrial CO2<br> emissions2<br>, with 95% of these<br>from refining and smelting. Decarbonising aluminium<br>production heavily depends on reliable lower-carbon<br>electricity. Reducing emissions also requires new technology<br>in the production process and greater recycling. The pace of<br>decarbonisation across the sector will depend significantly<br>on the timing and availability of these developments and is<br>unlikely to follow a linear path.<br>We have set an emissions intensity target for 2030 that<br>is aligned with the International Aluminium Institute (IAI’s)<br>1.5°C pathway to 2050. This reflects the importance of<br>aluminium in the transition and the decarbonisation options<br>available to 2030.<br>Aluminium was added to Australia’s Strategic Materials<br>List in 2024 and a new Green Aluminium Production Credit<br>available from 2028-29 has been announced. This will<br>support switching to renewable electricity before 20363<br>.<br>CEMENT: The cement sector plays a key role in economic<br>development and in the energy transition. Cement is the key<br>component of concrete and is necessary for constructing the<br>infrastructure necessary for the transition and to enhance<br>the resilience of existing buildings and infrastructure. Given<br>cement's importance, we seek to maintain and expand<br>our support for the sector. We have set an emissions<br>intensity target that allows us to support our customers'<br>capital expenditure requirements as they implement new<br>technologies and other emissions reduction initiatives.<br>In FY24 the building materials sector was subject to<br>significant consolidation. This reduced the number of<br>participants in the relevant markets and should accelerate<br>the use of more efficient global technologies. As a<br>consequence of consolidation in the sector there is less<br>publicly available emissions information on local cement<br>production, and therefore a greater risk that disclosure of<br>sector progress figures will inadvertently reveal non-public<br>data about our customers. As a result, in light of our<br>obligation to protect our customers' confidential information,<br>we are no longer disclosing progress figures for this sector.<br>Progress and plans<br>STEEL AND ALUMINIUM: As at 30 September 2024, we<br>are on track to achieve our 2030 Steel and Aluminium<br>targets and their progress is below our reference sector<br>pathway. For aluminium, our FY24 emissions intensity<br>declined compared to our baseline. This was due to<br>changes in the mix of lending within our portfolio and<br>the decarbonisation efforts of our customers. Given the<br>small number of customers associated with each target and<br>to ensure their confidentiality, we are not disclosing our<br>baseline or progress figures for Steel and Aluminium.<br>CEMENT: As at 30 September 2024, we are on track<br>to achieve our 2030 target with a decline in emissions<br>intensity due to further improvements across the portfolio.<br>Our progress remains below our reference sector pathway.<br>Given the small number of customers associated with<br>the target and to ensure their confidentiality, we are not<br>disclosing our progress figures. Cement production is a<br>large energy user and is a considered a hard-to-abate<br>sector. The SBTi reference pathway suggests only modest<br>declines in emissions intensity can be expected by 2030 with<br>most of the sector's decarbonisation expected after 2030<br>from more advanced technologies. Further improvements<br>in emissions are expected to flow from switching energy<br>sources to lower-emission fuels, using alternative materials<br>and improving the efficiency of high energy use processes.<br>The value chain for these sectors is represented by the diagrams below. We have highlighted in a darker colour the elements of the value chains that are in-scope of our financed emissions sector targets. More detail on what is<br>in-scope of the boundary and methodology for these targets is outlined in Section 'Methodology – Financed emissions sector targets' of the Appendix.<br>Cement Raw material extraction and preparation Clinker and cement production Concrete production and end-use Steel<br>Production<br>Metallurgical coal and<br>iron ore extraction Ironmaking Steelmaking Downstream processing<br>and manufacturing Aluminium Bauxite extraction Alumina refining Aluminium smelting Manufacture of end use products<br>1 International Energy Agency (IEA), Net Zero Roadmap A Global Pathway to Keep the 1.5°C Goal in Reach (2023).<br>2 International Energy Agency (IEA), Aluminium Industry Overview (2023).<br>3 Government of Australia, Department of Industry, Science and Resources (DISR), New Green Aluminium Production Credit will support the transition to green metals (2025).<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>64<br>Sector target progress – Commercial real estate (offices)<br>TYPE OF TARGET 2022 BASELINE 2030 TARGET<br>(IMPLIED %<br>REDUCTION TO<br>BASELINE YEAR)<br>PROGRESS vs BASELINE %<br>(AND EMISSIONS INTENSITY)<br>ABSOLUTE EMISSIONS<br>MtCO2-ea<br>TCE IN TARGET BOUNDARY<br>2024 2023 2024 2023 2024 2023 2024 (% of<br>Group TCE)<br>Intensity 60 kgCO2-e/m2<br>net lettable area<br>-59% -27% (44) -18% (49) NA NA $17.3bn $16.7bn 1.4%<br>a. NA means 'Not Available' – data quality scores and/or certain emissions reporting are not available for all financed emissions sector targets.<br>Sector and portfolio developments<br>Commercial buildings in Australia contribute about 25% of<br>electricity use and 10% of carbon emissions1<br>, and so are<br>important to the nation’s net-zero goals. While electricity is<br>the main emissions source, natural gas remains common for<br>heating and cooking.<br>Our emissions intensity target is for commercial<br>offices (within the broader commercial buildings sector)<br>due to available and reliable emissions data and<br>industry standards.<br>Reducing the sector's emissions relies on upgrading<br>and electrifying existing buildings, increasing renewable<br>electricity use (from both offsite and onsite sources), and<br>aligning with tenant sustainability targets. Achieving long-term goals also depends on broader grid decarbonisation<br>targets, which require coordinated action across<br>governments and the private sector.<br>Progress and plans<br>In FY24, our portfolio’s emissions intensity fell 10%.<br>These improvements largely stemmed from grid<br>decarbonisation, better emissions performance, and newer<br>assets entering the portfolio. Where customer data is<br>available, we have particularly observed rising energy<br>efficiency and greater uptake of renewables.<br>FIGURE 15: COMMERCIAL REAL ESTATE (OFFICES)<br>kgCO₂-e/m² net lettable area 60<br>49<br>44<br>25<br>2022 baseline Progress 2030 target<br>IEA NZE Scenario (2021)<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>25<br>50<br>75<br>1 Department of Climate Change, Energy, the Environment and Water (DCCEEW), Energy efficiency - Commercial Buildings (2024).<br>The value chain for this sector is represented by the diagram below. We have highlighted in a darker colour the elements of the value chain that are in-scope of our financed emissions sector target.<br>Commercial<br>Real Estate<br>Manufacturing and<br>production Construction Operation<br>(base building) Operation (tenancy) Renovation/maintenance Demolition/recycling<br>More detail on what is in-scope of the boundary and methodology for this target is outlined in Section 'Methodology – Financed emissions sector targets' of the Appendix.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>65<br>Sector target progress – Residential real estate (Australia)<br>TYPE OF<br>TARGET<br>2022 BASELINE 2030 TARGET<br>(IMPLIED %<br>REDUCTION TO<br>BASELINE YEAR)<br>PROGRESS vs BASELINE %<br>(AND EMISSIONS INTENSITY)<br>ABSOLUTE EMISSIONS<br>MtCO2-e<br>LOAN BALANCE IN TARGET BOUNDARY<br>2024 2023 2024 2023 2024 2023 2024 (% of<br>Group Loans)<br>Intensity 34.6 kgCO2-e/m2<br>attributed floor areaa<br>-56% -14% (29.8a<br>) -11% (30.7a<br>) 2.59 2.69 $456.3bn $438.1bn 56.2%<br>a. For the Residential Real Estate target, baseline and FY23 progress metrics are as at 31 August. FY24 progress metric is as at 30 September.<br>Sector and portfolio developments<br>Australia has around 11 million dwellings1<br> accounting for<br>approximately 24% of electricity use and more than 10% of<br>the country’s GHG emissions2<br>.<br>Australian residential mortgages account for approximately<br>half of Westpac’s TCE3<br>. Residential mortgages (both<br>Australia and New Zealand) represent approximately 10%<br>of Westpac’s scope 1 and 2 financed emissions for<br>FY24. Most of those emissions relate to Australia.<br>Most sector emissions are from natural gas and electricity<br>use and so achieving net-zero financed emissions relies on<br>decarbonisation of the electricity grid. Increasing roof-top<br>solar and household batteries is also contributing.<br>Progress and plans<br>In FY24, the emission intensity of our residential mortgages<br>Australia portfolio decreased 3% from FY23, which is 14%<br>lower than the FY22 base year. The reduction mainly reflects<br>decarbonisation of the electricity grid.<br>Alongside grid decarbonisation, home energy efficiency and<br>electrification are key measures required for achieving net-zero financed emissions in this sector.<br>Some initiatives now underway include:<br> • In FY25, we joined the Australian Government’s trial of<br>the Nationwide House Energy Rating Scheme (NatHERS)<br>for existing homes in collaboration with the Department<br>of Climate Change, Energy, the Environment and Water<br>and CSIRO4<br>. This initiative offers home energy ratings to<br>help households understand their energy performance<br>and identify cost-effective upgrades5<br>; and<br> • In late 2024 we launched our Sustainable Upgrades<br>home and investor loan allowing existing home loan<br>customers to borrow up to $50,000, to improve their<br>energy efficiency or resilience. The loan has a discounted<br>interest rate supported by the Australian Government’s<br>Household Energy Upgrades Fund.<br>FIGURE 16: RESIDENTIAL REAL ESTATE (AUSTRALIA)<br>kgCO₂-e/m² attributed floor area<br>34.6<br>30.7 29.8<br>15.2<br>2022 baseline Progress 2030 target<br>CRREM Australia Multi-family homes (MFH) Scenario, 2023<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>20<br>40<br>60<br>The value chain for this sector is represented by the diagram below. We have highlighted in a darker colour the elements of the value chain that are in-scope of our financed emissions sector target.<br>Residential<br>Real Estate<br>Manufacturing and<br>production (owner-occupier or tenancy) Renovation/maintenance Demolition/recycling Operation Construction<br>More detail on what is in-scope of the boundary and methodology for this target is outlined in Section 'Methodology – Financed emissions sector targets' of the Appendix.<br>1 https://www.abs.gov.au/statistics/industry/building-and-construction/estimated-dwelling-stock/jun-quarter-2022.<br>2 https://www.dcceew.gov.au/energy/energy-efficiency/buildings/residential-buildings.<br>3 Westpac 2024 Climate Report, p. 49.<br>4 Westpac Banking Corporation. Westpac Partners with Government to Help Customers Save on Energy Costs. Media Release, 4 April 2025.<br>5 NatHERS for existing homes is being rolled out in stages, beginning with the pilot, followed by a scale-up phase, and leading to Stage 2 from mid-2026, which will offer broader access for households to obtain an assessment.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>66<br>Sector targets progress – Agriculture<br>TARGET TYPE OF<br>TARGET<br>2021 BASELINE 2030 TARGET<br>(IMPLIED %<br>REDUCTION TO<br>BASELINE YEAR)<br>PROGRESS vs BASELINE %<br>(AND EMISSIONS INTENSITY)<br>ABSOLUTE EMISSIONS<br>MtCO2-ea<br>TCE IN TARGET BOUNDARY<br>2024 2023 2024 2023 2024 2023 2024 (% of Group TCE)<br>Australia Beef and Sheep Intensity 22.62 tCO2-e/<br>tonne of FW<br>-9% +2% (22.96) +2% (23.00) NA NA $6,353m $6,139m 0.5%<br>Australia Dairy Intensity 0.95 tCO2-e/<br>tonne of FPCM<br>-10% -7% (0.88) -7% (0.88) NA NA $1,482m $1,220m 0.1%<br>New Zealand Beef and Sheep Intensity 19.8 tCO2-e/<br>tonne of FW<br>-9% -4% (19.0) +2% (20.1) NA NA NZ$1,563m NZ$1,575m 0.1%b<br>New Zealand Dairy Intensity 0.86 tCO2-e/<br>tonne of FPCM<br>-10% -6% (0.81) -2% (0.84) 2.02 2.04 NZ$5,856m NZ$5,983m 0.4%<br>a. NA means 'Not Available' – data quality scores and/or certain emissions reporting are not available for all financed emissions sector targets.<br>b. New Zealand dollar totals have been translated into Australian dollars at spot rates as at the end of period, 2024: $1.0885.<br>Sector and portfolio developments<br>Agriculture is a broad and diverse sector producing a<br>variety of food and fibre products. Beyond its essential<br>role in sustaining life and providing food security, it is a<br>cornerstone of the Australian and New Zealand economies,<br>being a significant contributor to employment, GDP and<br>export revenues.<br>We are focused on growing in rural and regional Australia<br>including supporting agriculture customers to pursue more<br>efficient farm practices. While agriculture is vital for the<br>economies in which we operate it is also a major source<br>of emissions. In 2024, the sector generated around 19% of<br>Australia’s emissions1<br>.<br>In New Zealand, due to a more energy-efficient grid and<br>fewer high-emission industries, over 50% of the country’s<br>emissions are from agriculture.<br>In aggregate we estimate that Agriculture, forestry & fishing<br>accounted for around 18% of Westpac’s scope 1 and 2<br>financed emissions for FY24.<br>The agricultural sector also has a unique opportunity in<br>addressing climate change through carbon sequestration<br>and increased biodiversity, which may provide benefits<br>to animal and soil health and improvements to<br>farm productivity.<br>Whilst the sector’s activities are broad, its emissions are<br>concentrated to key commodities: beef and sheep meat, as<br>well as milk production. These are the sectors that are the<br>focus of our targets.<br>In 2023 beef, sheep and dairy accounted for 85% of<br>Australian agricultural emissions and, in the same year,<br>methane from enteric fermentation accounted for 71% of<br>Australian agricultural emissions2<br>.<br>In 2022, New Zealand beef and sheep farming made<br>up 22.9% of New Zealand’s total gross greenhouse gas<br>emissions and 43% of New Zealand’s agriculture emissions.<br>New Zealand dairy farming made up 25.7% of New<br>Zealand’s gross greenhouse gas emissions and 48% of New<br>Zealand’s agricultural emissions.<br>The value chain for this sector is represented by the diagram below. We have highlighted in a darker colour the elements of the value chain that are in-scope of our financed emissions sector target.<br>Agriculture Upstream farm inputs<br>and land use changes<br>Farm operations and<br>animal management Processing and transport Retail and distribution Consumption and waste<br>management<br>More detail on what is in-scope of the boundary and methodology for this target is outlined in Section 'Methodology – Financed emissions sector targets' of the Appendix.<br>1 Australia’s emissions projections 2024.<br>2 Department of Climate Change, Energy, the Environment and Water (DCCEEW), Australia's National Greenhouse Accounts (n.d.).<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>67<br>Emissions related to these sectors are predominantly on-farm, relating to methane and nitrous oxide emissions,<br>with smaller amounts of CO2<br>. Methane results from enteric<br>fermentation (digestion) and manure management, while<br>nitrous oxide results from excreta and application of<br>nitrogen fertiliser on soils1<br>.<br>All our targets use emission intensity metrics, reflecting the<br>sector’s substantial economic and community contributions,<br>and our plans to grow the portfolio.<br>Measuring sector emissions is challenging as production<br>systems vary across locations and inputs/output can vary<br>from season to season. This includes climatic variations,<br>commodity prices, and inputs such as fertilisers.<br>Options for reducing emissions in the sector include:<br> • Improve on-farm efficiency and productivity;<br> • Enhance herd genetics for better output and<br>lower emissions;<br> • Apply nitrogen-efficient treated fertilisers; and<br> • Use methane-reducing feed supplements.<br>In late September 2025, the Australian Government<br>released the Agriculture and Land Sector Plan, detailing<br>the sector's contribution to Australia's transition. We<br>are reviewing the report and its implications for our<br>FY26 initiatives.<br>Progress and plans<br>AUSTRALIA BEEF AND SHEEP<br>In FY24 the emissions intensity for the Australian Beef and<br>Sheep portfolio was 22.96 tCO2-e/tonne of Fresh Weight<br>(FW), little changed from FY23 due to the same emissions<br>factors being used (being the latest available data), but<br>remains 1.5% higher than our 2021 baseline and below the<br>sector reference pathway.<br>While our emissions intensity is higher than our 2021<br>baseline, our analysis of longer-term trends suggests the<br>variances observed appear within the expected ranges<br>of volatility.<br>Livestock activity is highly impacted by climate variations.<br>Higher rainfall in 2021 and 2022 improved pasture<br>conditions and led farmers to rebuild their herds, with<br>a related reduction in animals slaughtered. This resulted<br>in higher stock levels and lower meat production which<br>increased calculated emissions intensity in our portfolio.<br>Beef and sheep meat production rose in FY23, due<br>to maturing animals and strong export demand, which<br>contributed to a lower emissions factor in FY23 (also used<br>for FY24 as the latest available data).<br>In support of our target, we have continued our program of<br>engagement across customers, industry bodies and industry<br>events. This has included our sponsorship of Meat and<br>Livestock Australia (MLA) Carbon EDGE workshops along<br>with participation at various regional field days.<br>We have also lifted our understanding of sector dynamics<br>using data, modelling and geospatial mapping.<br>AUSTRALIA DAIRY<br>In FY24, the emissions intensity for the Australian dairy<br>portfolio was 0.88 tCO2-e/tonne of Fat Protein Corrected<br>Milk (FPCM), changed little from FY23 and remained 7%<br>lower than our FY21 baseline. Our FY24 emissions intensity<br>remains below the sector reference pathway.<br>The flat emissions intensity outcome reflects relatively<br>consistent milk production in 2022 and 2023 which was<br>reflected in emissions factors used in our metrics. At an<br>aggregate level, we have seen lower herd levels across the<br>sector with a rise in milk produced per cow.<br>As part of our commitment to the sector, we are working<br>to improve the quality of our data and evaluating additional<br>ways to share any insights with customers. Engagement is<br>also a priority as we work to understand the opportunities<br>for farmers to reduce emissions and determine how we can<br>best support them.<br>1 Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Snapshot of Australian Agriculture 2025 (2025). https://www.agriculture.gov.au/abares/products/<br>insights/snapshot-of-australian-agriculture#australian-agricultural-sustainability.<br>FIGURE 17: AGRICULTURE – AUSTRALIA BEEF AND SHEEP<br>tCO₂-e/tonne of Fresh Weight (FW)<br>22.6223.46 23.0022.96<br>20.66<br>2021 baseline Progress 2030 target<br>SBTi FLAG Oceania Beef Commodity Land Management Pathway<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>10<br>20<br>30<br>FIGURE 18: AGRICULTURE – AUSTRALIA DAIRY<br>tCO₂-e/tonne of Fat Protein<br>Corrected Milk (FPCM)<br>0.95 0.87 0.88 0.88 0.85<br>2021 baseline Progress 2030 target<br>SBTi FLAG Oceania Dairy Commodity Land Management Pathway<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>1<br>2<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>FINANCED EMISSIONS SECTOR TARGETS<br>68<br>Progress and plans<br>NEW ZEALAND BEEF AND SHEEP<br>The emissions intensity of our portfolio decreased.<br>The emission intensity initially increased in FY22 and then<br>has decreased for the last two years and now sits 4% below<br>the FY21 baseline.<br>Seasonal variations are likely to have an impact on<br>annual progress.<br>We have steadily improved our data quality by collecting<br>farm level emissions directly from customers. This supports<br>our targets and helps build portfolio and regional insights<br>that we can share back with customers over time.<br>We continue to discuss and promote the Westpac<br>Sustainable Farm Loan which provides an incentive for<br>customers to measure their emissions and set an emission<br>reduction plan.<br>NEW ZEALAND DAIRY<br>The emission intensity initially increased in FY22 and then<br>has decreased for the last two years and now sits 6% below<br>the FY21 baseline which is halfway to the target.<br>Seasonal variations are likely to have an impact on<br>annual progress.<br>As with the beef and sheep sector we continue to collect<br>farm level emissions data and will continue to progress this<br>in a structured way. Similarly the Westpac Sustainable Farm<br>Loan has proven to be a popular product, helping us to<br>have more meaningful discussions with customers on their<br>emission reduction plans.<br>FIGURE 19: AGRICULTURE – NEW ZEALAND BEEF<br>AND SHEEP<br>tCO₂-e/tonne of Fresh Weight (FW)<br>19.8 20.7 20.1 19.0 18.0<br>2021 baseline Progress 2030 target<br>SBTi FLAG Oceania Beef Commodity Land Management Pathway<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>10<br>20<br>30<br>FIGURE 20: AGRICULTURE – NEW ZEALAND DAIRY<br>tCO₂-e/tonne of Fat Protein<br>Corrected Milk (FPCM)<br>0.86 0.88 0.840.81 0.77<br>2021 baseline Progress 2030 target<br>SBTi FLAG Oceania Dairy Commodity Land Management Pathway<br>FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30<br>0<br>1<br>0.5<br>1.5 WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 69<br>CLIMATE-RELATED OPPORTUNITIES<br>Sustainable Finance Targets<br>Approach to setting and reviewing our Sustainable<br>Finance Targets (SFT)<br>PROCESSES FOR SETTING AND REVIEWING OUR<br>SUSTAINABLE FINANCE TARGETS<br>Our approach in setting our sustainable finance targets was<br>to identify activities which can create and enable positive<br>sustainability outcomes across climate, environmental and<br>social objectives, focusing on material sectors of our<br>lending portfolio.<br>The targets are reviewed by management through periodic<br>monitoring, reporting, and taxonomy updates to reflect<br>regulatory, market, and stakeholder developments. Inputs<br>into our review process include engagement with industry<br>and internal stakeholders.<br>VALIDATION OF OUR SUSTAINABLE FINANCE TARGETS<br>AND METHODOLOGIES<br>Our Sustainable Finance Targets and methodologies have<br>not been validated by a third party. These targets were<br>developed internally leveraging the in-house expertise of<br>our sustainability SMEs and bankers.<br>REVISIONS TO OUR SUSTAINABLE FINANCE TARGETS<br>No revisions were made to the sustainable finance targets<br>in FY25. From 2026, we will commence reviewing our<br>Sustainable Finance Framework (SFF) and target to align<br>with the ASFI national taxonomy where applicable.<br>TABLE 33: ADDITIONAL INFORMATION ABOUT OUR<br>SUSTAINABLE FINANCE TARGETS<br>Detail Target: $55 billion<br>in sustainable<br>finance lending<br>Target: $40 billion in<br>bond facilitation.<br>Metric used<br>to set the<br>target<br>Target is based on TCE<br>(or balancea) at a point<br>in time.<br>Target is based<br>on our share<br>of the cumulative<br>value of bonds<br>facilitated between<br>1 October 2021 and<br>30 September 2030.<br>Objective of<br>the targetb<br>Labelled and unlabelled<br>sustainable lending that<br>supports entities and<br>activities contributing<br>to climate change<br>mitigation, adaptation,<br>sustainable land use,<br>natural resources and<br>biodiversity, transition<br>and socialb.<br>Green, Social<br>and Sustainability<br>labelled<br>bond facilitation.<br>Part of<br>Westpac to<br>which the<br>target applies<br>Includes all parts of<br>Westpac Group where<br>products under the<br>Sustainable Finance<br>Framework can be<br>sold. This is mostly<br>includes institutional and<br>commercial customers<br>in Australia and New<br>Zealand and residential<br>mortgage customers<br>in Australia.<br>Westpac Group<br>Institutional Bank<br>Australia and<br>New Zealand<br>labelled bond<br>facilitation globally.<br>Period over<br>which the<br>target applies<br>30 September 2030. 30 September 2030.<br>Base period<br>from which<br>progress is<br>measured<br>Not applicable – target<br>is measured as a<br>point in time at<br>30 September 2030.<br>1 October 2021.<br>Detail Target: $55 billion<br>in sustainable<br>finance lending<br>Target: $40 billion in<br>bond facilitation.<br>Milestones<br>and interim<br>targets<br>No. No.<br>Absolute or<br>intensity<br>target<br>Absolute. Absolute.<br>How the latest international agreement on climate change,<br>including jurisdictional commitments that arise from that<br>agreement, has informed the target<br>Our Sustainable Finance Targets are not informed by the latest<br>international agreement on climate change.<br>a. The balance represents the balance outstanding at a point in time<br>and is applicable for residential mortgages.<br>b. Refer to Westpac Sustainable Finance Framework for definitions.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 70<br>APPENDIX<br>CONTENTS<br>1.GLOSSARY 71<br>2.METHODOLOGY – OPERATIONAL EMISSIONS –<br>SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>74<br>3.METHODOLOGY – SCOPE 3<br>FINANCED EMISSIONS<br>88<br>4.METHODOLOGY – FINANCED EMISSIONS<br>SECTOR TARGETS<br>96<br>5.METHODOLOGY – CLIMATE-RELATED<br>SCENARIO ANALYSIS<br>107<br>6.INDEPENDENT ASSURANCE STATEMENT 113<br>7.DISCLAIMER 117
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 71<br>1. GLOSSARY<br>TERM DEFINITION<br>AASB S2 AASB S2 is an Australian Sustainability Reporting Standard issued by the Australian<br>Accounting Standards Board. It requires entities to disclose information about<br>climate-related risks and opportunities that could reasonably affect their cash flows,<br>access to finance, or cost of capital over the short, medium, or long term.<br>AEMO Australian Energy Market Operator.<br>ANZSIC Australia New Zealand Standard Industrial Classification.<br>Australia’s<br>National<br>Greenhouse<br>Accounts (NGA)<br>A series of reports and databases that estimate and account for Australia’s<br>greenhouse gas emissions, published by the Australian Department of Climate<br>Change, Energy, the Environment and Water (DCCEEW).<br>Bond facilitation Labelled syndicated Green, Social, Sustainability and Sustainability-linked bonds,<br>including securitisation, as defined in Westpac's Sustainable Finance Framework.<br>Carbon credit An emissions unit issued by a carbon crediting programme and represents an<br>emission reduction or removal of greenhouse gases. Carbon credits are uniquely<br>serialised, issued, tracked and cancelled by means of an electronic registry.<br>Carbon<br>capture and<br>storage (CCS)<br>A technology that captures carbon dioxide (CO2<br>) emissions from industrial processes<br>or power generation, transports it, and stores it to prevent its release into<br>the atmosphere.<br>Climate<br>resilient bank<br>Our ambition is to become a net-zero climate resilient bank which means working<br>towards net-zero emissions across our operations and our lending while building<br>resilience to the physical impacts of climate change.<br>As defined by the AASB S2: A climate resilient entity has the capacity to adjust<br>to climate-related changes, developments or uncertainties. It involves the capacity<br>to manage climate-related risks and benefit from climate-related opportunities,<br>including the ability to respond and adapt to climate-related transition risks and<br>climate-related physical risks. The bank’s climate resilience includes both its strategic<br>resilience and its operational resilience.<br>CO2 Carbon dioxide.<br>CO2-e Carbon dioxide equivalent. The amount of CO2<br> emission that would cause the same<br>integrated radiative forcing or temperature change, over a given time horizon, as an<br>emitted amount of a GHG or a mixture of GHGs.<br>Source: IPCC, Special Report: Global Warming of 1.5°C, Annex I: Glossary (2018).<br>TERM DEFINITION<br>CSIRO Commonwealth Scientific and Industrial Research Organisation.<br>Dairy Australia The national services body for the Australian dairy industry, funded by a combination<br>of levies paid by dairy farmers and matching payments from the Commonwealth<br>Government for eligible research and development (R&D) activities. Source: Dairy<br>Australia (2023).<br>Data<br>quality score<br>Reflects the level of uncertainty in the data inputs for financed emissions estimation<br>using a scale of 1 to 5, with the lowest scores assigned to more accurate and specific<br>company/property-level inputs while the highest scores are assigned to less specific<br>inputs more reliant on assumptions and proxy data such as industry averages.<br>Decarbonise The act of reducing greenhouse gas emissions compared to current state. It does not<br>necessarily imply achieving zero greenhouse gas emissions.<br>Diversified<br>company<br>Customer with operations across multiple segments which are subject to multiple<br>financed emissions sector targets, where TCE >$100 million and when the segment<br>reporting is available, and in scope segment revenue is >10% of total parent group<br>revenues (except for thermal coal which is 5%).<br>ESG Environmental, Social and Governance.<br>EVIC Enterprise Value Including Cash is a measure of a company’s total value for the<br>purposes of estimating Group financed emissions. Where available, EVIC is the<br>company’s enterprise value based on total market capitalisation without deduction<br>of cash or cash equivalents. Otherwise, and for setting financed emissions sector<br>targets, EVIC is defined as Shareholder Funds + Total Debt.<br>Facilitated<br>emissions<br>Facilitated emissions are emissions that are typically linked to capital markets<br>activities such as syndicated lending or bond facilitation. While Westpac participates<br>in these activities, they are not a material part of the Group or of our individual<br>financed emissions sector targets and so they have not been calculated.<br>Fat and<br>protein corrected<br>milk (FPCM)<br>Standard used for comparing milk with different fat and protein contents, to allow<br>better comparison between farms and regions, reducing the difference between<br>breeds or feeding regimes.<br>Sources:<br> • Christie K. M., Gourley C. J. P., Rawnsley R. P., Eckard R. J., Awty I. M. (2012)<br>Whole-farm systems analysis of Australian dairy farm greenhouse gas emissions.<br>Animal Production Science 52, 998-1011; and,<br> • Mancilla-Leyton, J.M., Morales-Jerrett, E., Delgado-Pertinez, M. & Mena, Y. (2021).<br> “Fat- and protein corrected milk formulation to be used in the life-cycle<br>assessment of Mediterranean dairy goat systems”. Livestock Science. 253, (1.4).<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>1. GLOSSARY<br>72<br>TERM DEFINITION<br>Greenhouse gas<br>(GHG) emissions<br>For Westpac’s purposes, this includes the seven greenhouse gases listed in the Kyoto<br>Protocol aggregated as CO2-equivalent, unless stated otherwise.<br>IPCC Intergovernmental Panel on Climate Change.<br>Labelled<br>Sustainable<br>Finance,<br>bond facilitation<br>Finance explicitly designated as supporting environmentally and socially sustainable<br>activities through specific sustainability labels or certifications, as defined in industry<br>standards, principles and guidance.<br>Examples include principles issued by the International Capital Markets Association<br>(ICMA) and Loan Market Association (LMA)/Asia Pacific Loan Market Association<br>(APLMA)/Loan Syndication Trading Association (LSTA).<br>Labelled sustainable lending also includes Westpac labelled products, whereby<br>the programs have been assured or verified by an independent, external review<br>provider as aligning with relevant industry standards, principles and guidance, and/or<br>aligns with our Taxonomy Criteria, with any updates assured or verified within a<br>reasonable timeframe.<br>LGC Large-scale generation certificate. An LGC is a singular tradable certificate produced<br>by an eligible large-scale renewable power station (such as a wind or solar farm).<br>The certificate is representative of 1 megawatt-hour (MWh) of renewable electricity<br>generated or displaced by the power station.<br>MWh Megawatt-hour.<br>NABERS National Australian Built Environment Rating System.<br>Net-zero A state in which GHG emissions released into the atmosphere are balanced by an<br>equivalent amount of GHG emissions removed from the atmosphere.<br>NGER The National Greenhouse and Energy Reporting (NGER) scheme, established by the<br>National Greenhouse and Energy Reporting Act 2007, is a single national framework<br>for the reporting and dissemination of company information about location-based<br>greenhouse gas emissions, energy production, and energy consumption in Australia.<br>NGFS Network for Greening the Financial System.<br>NZBA Net-Zero Banking Alliance.<br>NZSIOC New Zealand Standard Industrial Output Categories.<br>Oceania<br>Dairy/Beef<br>Commodity Land<br>Management<br>pathway, 2022<br>Refers to the regional (Oceania) and commodity specific (Dairy or Beef) Land<br>Management emissions intensity data that underlies the SBTi FLAG tool. The<br>pathways are from the IMAGE model presented by Smith, et al (2016). ‘Science-Based GHG Emissions Targets for Agriculture and Forest Commodities.’ University<br>of Aberdeen, Ecofys, and PBL.<br>PCAF Partnership for Carbon Accounting Financials.<br>TERM DEFINITION<br>PCAF Standard PCAF’s Global GHG Accounting and Reporting Standard: Part A – Financed Emissions<br>2nd edition.<br>Physical risks As defined by the AASB S2: Climate-related physical risks resulting from climate<br>change that can be event-driven (acute physical risk) or from longer-term shifts<br>in climatic patterns (chronic physical risk). Acute physical risks arise from weather-related events such as storms, floods, drought or heatwaves, which are increasing<br>in severity and frequency. Chronic physical risks arise from longer-term shifts in<br>climatic patterns including changes in precipitation and temperature which could<br>lead to sea level rise, reduced water availability, biodiversity loss and changes in<br>soil productivity. These risks could carry financial implications for an entity, such<br>as costs resulting from direct damage to assets or indirect effects of supply-chain<br>disruption. The entity's financial performance could also be affected by changes in<br>water availability, sourcing and quality; and extreme temperature changes affecting<br>the entity's premises, operations, supply chains, transportation needs and employee<br>health and safety.<br>Representative<br>concentration<br>pathways (RCPs)<br>A set of pathways developed by the Intergovernmental Panel on Climate Change<br>(IPCC) that reflect different levels of emissions and greenhouse gas concentrations in<br>the atmosphere.<br>Higher concentration levels are associated with higher estimated global surface<br>temperatures and therefore increased effects of climate change.<br>They are expressed as RCPy, where ‘y’ refers to the level of radiative forcing (in watts<br>per square metre, or W/m2<br>) resulting from the scenario in the year 2100.<br> • RCP2.6 – represents a stringent emissions reduction pathway that is likely to keep<br>temperatures below 2°C by 2100;<br> • RCP4.5 – represents an intermediate scenario where temperatures are likely to<br>exceed 2°C by 2100; and<br> • RCP8.5 – represents a higher emissions scenario where there are no additional<br>efforts to constrain emissions.<br>We use RCPs to assess the impact of physical risk under the various pathways. Our<br>analysis is typically focused on the impact at 2050 under the relevant RCP. Analysis<br>may include other time periods.<br>Removals Activities with mitigation potential in the agriculture and forestry supply chain,<br>including soil sequestration, agroforestry and biochar.<br>Source: Science Based Targets Initiative (SBTi), Forest, Land and Agriculture (FLAG)<br>Science-Based Target-Setting Guidance (2022).<br>Renewable<br>electricity<br>Electricity derived from natural energy sources (for example, hydro, wind, solar) that<br>are replenished at a higher rate than they are consumed.<br>SAF Sustainable Aviation Fuel.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>1. GLOSSARY<br>73<br>TERM DEFINITION<br>Science Based<br>Targets Initiative<br>(SBTi) Forest,<br>Land and<br>Agriculture<br>(FLAG)<br>Provides a standard method to set science-based targets for FLAG sectors that<br>include land-based emission reductions and removals.<br>Source: Science Based Targets Initiative (SBTi), Forest, Land and Agriculture (FLAG)<br>Science-Based Target-Setting Guidance (2022).<br>Scope 1 and<br>scope 2<br>operational<br>emissions<br>Scope 1 emissions are direct emissions that occur from sources that are owned<br>or controlled by Westpac. Scope 2 emissions are our indirect emissions from the<br>generation of purchased electricity consumed by Westpac.<br>Scope 3 upstream<br>emissions<br>Scope 3 upstream emissions are indirect GHG emissions (not included in scope 2) that<br>occur in Westpac’s upstream value chain.<br>The Appendix section 'Methodology – Operational Emissions – Scope 1, 2 and<br>Upstream Scope 3’ provides more detail on our calculation and the scope 3 upstream<br>emissions categories included.<br>Scope 3 financed<br>emissions<br>Scope 3 financed emissions are the indirect GHG emissions (not included in scope 2)<br>associated with our financing activities. For Westpac, these are our share of the GHG<br>emissions of our lending customers.<br>Sustainable<br>finance<br>Transactions assessed pursuant to Westpac’s Sustainable Finance Framework (SFF)<br>as qualifying for inclusion in our Sustainable Finance Targets.<br>Sustainable<br>Finance<br>Framework<br>Sets out how Westpac assesses, monitors, measures and reports on financing<br>and facilitating sustainable activities. Uses our Sustainable Finance Taxonomy or<br>industry standards, principles and guidance to classify Green, Transition, Social and<br>Sustainability activities.<br>Sustainable<br>Finance<br>Taxonomy<br>The Westpac Sustainable Finance Taxonomy includes the Taxonomy Criteria for<br>classifying Green, Transition and Social economic activities (refer to Westpac's<br>Sustainable Finance Framework Appendix B – Summary – Taxonomy Criteria).<br>For the purposes of Sustainable Finance, references to industry standards, principles<br>and guidance refers to those listed in the Westpac 2024 SFF Appendix C – Key<br>referenced national taxonomies, industry standards, principles and guidance.<br>Total committed<br>exposure (TCE)<br>For financial reporting purposes, TCE is the sum of the committed portion of direct<br>lending (including funds placement overall and deposits placed), contingent and<br>pre-settlement risk plus the committed portion of secondary market trading and<br>underwriting risk. For climate scenario analysis purposes, we refer to the same<br>sources of TCE that flow into the financial reporting sources.<br>When calculating Group financed emissions and the financed emissions sector<br>targets we estimate our share of customers’ financed emissions.<br>TERM DEFINITION<br> • For certain institutional customers we use TCE to determine this share; this is<br>detailed in our sector methodologies. For this purpose, TCE excludes secondary<br>market trading and underwriting committed credit exposures; and<br> • For certain WNZL customers, TCE includes all outstanding balances from<br>business, commercial and institutional on-balance sheet lending, as well<br>as undrawn commitments. It excludes merchant prepayment risk and pre-settlement risk exposures.<br>When calculating Sustainable Finance targets, we need to identify the principal<br>amounts of the sustainable lending and bond facilitation that meet our SFF. For<br>certain institutional customers we use TCE or share of bond facilitation to determine<br>this share. For this purpose, TCE excludes pre-settlement risk, secondary market<br>trading and underwriting committed credit exposures.<br>Transition risk As defined by the AASB S2: Climate-related transitions risks that arise from<br>efforts to transition to a lower-carbon economy. Transition risks include policy,<br>legal, technological, market and reputational risks. These risks could carry financial<br>implications for an entity, such as increased operating costs or asset impairment due<br>to new or amended climate-related regulations. The entity's financial performance<br>could also be affected by shifting consumer demands and the development and<br>deployment of new technology.<br>UNEP United Nations Environment Programme.<br>Unlabelled<br>Sustainable<br>Finance<br>Finance that may not have a specific sustainability label or certification. In the context<br>of Westpac 2024 SFF, such finance may still be considered as ‘sustainable’ as defined<br>by our SFF and Taxonomy Criteria.<br>WNZL Westpac New Zealand Limited.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 74<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND<br>UPSTREAM SCOPE 3<br>Overview<br>Organisational boundary<br>We have applied the operational control approach to<br>define our organisational boundary for our greenhouse<br>gas emissions inventory. Emissions sources controlled by<br>Westpac are included in our scope 1 and 2 emissions,<br>and emissions from sources not controlled by Westpac are<br>included in our scope 3 emissions. The operational control<br>approach has been used as it provides consistency with<br>other mandatory emissions reporting obligations outside of<br>AASB S2 and NZ CS, such as the National Greenhouse and<br>Energy Reporting (NGER) Act 2007.<br>We define operational emissions as our scope 1, 2<br>and select upstream scope 3 emissions resulting from<br>business operations.<br> • Scope 1: direct emissions from combustion of fuels<br>consumed at controlled facilities;<br> • Scope 2: indirect emissions from the generation<br>of purchased electricity consumed at controlled<br>facilities; and<br> • Upstream scope 3: indirect emissions related to<br>selected sources in our upstream value chain, refer to<br>inventory on page 87.<br>Independent assurance<br>We have obtained reasonable assurance over our<br>operational scope 1, 2 and upstream scope 3 emissions<br>estimates. Refer to the Independent Assurance Statement<br>available in the Appendix section of this Report.<br>Methodology<br>Westpac does not directly measure emissions; instead,<br>emissions are estimated using the formula: emissions =<br>activity data x emissions factor. Australian scope 1 and 2 are<br>calculated in accordance with the National Greenhouse and<br>Energy Reporting Act 2007. Westpac’s remaining emissions<br>are estimated with reference to the Greenhouse Gas<br>Protocol (GHG Protocol).<br>Westpac prioritises inputs based on data from specific<br>activities within Westpac’s value chain (primary data), over<br>industry averages or proxy data (secondary data).<br>Changes in the measurement approach<br> • Timing of data: Operational emissions are estimated<br>based on 9 months of data relating to the current<br>financial reporting period, and 3 months of the<br>prior period;<br> • The approach to estimating emissions from Australian<br>hire cars and taxis was revised in FY25. Previously,<br>emissions were derived by estimating kilometres<br>travelled, either extrapolated from a single hire car<br>provider using an average $/km rate, or calculated from<br>taxi spend using State-based fare structures. These<br>methods had limitations due to small sample sizes and<br>pricing variability. To improve consistency, both hire car<br>and taxi emissions are now calculated using a spend-based method; and<br> • The approach to estimating emissions from New Zealand<br>employee commuting was revised in FY25. Previously,<br>emissions were calculated by multiplying the Australian<br>employee commute emissions per FTE by the number of<br>New Zealand FTEs. New Zealand employee commuting<br>emissions are now calculated using HR data to estimate<br>distances between employee home and work locations<br>and assuming all commuting is by car.<br>Limitations<br> • Reliance on default emission factors which may not<br>account for variation, for example, in fuel quality,<br>electricity mix;<br> • Reliance on supplier data; and<br> • Emission calculations are based on latest available data<br>which may not be aligned with the reporting period.<br>Measurement uncertainty<br>Understanding or quantifying the impact of uncertainty on<br>an entity’s emissions inventory is subjective. To assess<br>the level of uncertainty within our operational emissions<br>inventory we have applied the following framework,<br>developed with reference to the GHG Protocol's ‘Guidance<br>for Calculating Measurement and Estimation Uncertainty for<br>GHG Emissions’.<br>TABLE 34: LEVELS OF MEASUREMENT UNCERTAINTY<br>Measurement<br>uncertainty Description<br>Very low High confidence in data; based on direct<br>measurements using calibrated instruments.<br>Low Data from reliable sources; some reliance<br>on assumptions.<br>Moderate Estimated data; moderate reliance<br>on assumptions.<br>High Poor data quality; high reliance<br>on assumptions.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>75<br>Our approach to measuring scope 1<br>direct operational emissions<br>Scope 1 emissions are direct greenhouse gas emissions<br>from combustion of fuels consumed at controlled facilities.<br>Measurement approach<br> • Australian data is prepared in accordance with<br>the National Greenhouse and Energy Reporting Act<br>2007 (NGER), using emission factors from the NGER<br>Measurement Determination and Global Warming<br>Potential (GWP) values from the NGER Regulations.<br> • New Zealand data is prepared in accordance with:<br> – the New Zealand Ministry for the Environment<br>guidance for GHG reporting and Toitū net carbonzero<br>programme rules, using emission factors from the<br>Ministry for the Environment Summary of Emissions<br>Factors, which uses the GWPs published in the IPCC<br>Fifth Assessment Report (AR5);<br> – the Aotearoa New Zealand Climate Standards (NZ<br>CS): NZ CS 1 Climate Related Disclosures (NZ<br>CS1), NZ CS 2 Adoption of Aotearoa New Zealand<br>Climate Standards (NZ CS2), and NZ CS 3 General<br>Requirements for Climate-related Disclosures (NZ<br>CS3); and<br> – the Greenhouse Gas Protocol: A Corporate<br>Accounting and Reporting Standard (revised edition).<br> • Other international data is prepared with reference to<br>the GHG Protocol, using emission factors from the NGER<br>Measurement Determination.<br>Westpac’s use of inputs is considered appropriate and<br>accurately represents our operational activities for the<br>following reasons:<br> • Activity data inputs are sourced from primary records,<br>including utility invoices, supplier records and Westpac’s<br>internal documents; and<br> • Emission factor inputs are taken from secondary sources<br>provided by government authorities.<br>Westpac’s use of assumptions is considered appropriate for<br>the following reasons:<br> • To address data gaps, we utilise partial data and<br>extrapolate it using a weighted average method to<br>represent the entire activity; and<br> • The approach of extrapolating data for the final<br>three months of the financial reporting year (July<br>to September) using activity data from the prior<br>period is considered an appropriate proxy for the<br>current reporting period. If significant events impacting<br>greenhouse gas emissions metrics are identified before<br>publication, Westpac will provide qualitative disclosures<br>to ensure transparency for report users. The impact<br>of these significant events will be reflected in the<br>subsequent reporting period.<br>TABLE 35: AUSTRALIAN SCOPE 1 DIRECT OPERATIONAL EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS (ACTIVITY DATA AND<br>EMISSION FACTORS)<br>ASSUMPTIONS<br>Stationary<br>combustion –<br>Natural gas<br>and diesel<br>Combustion of fuels (natural gas and<br>diesel) for stationary purposes at sites<br>under Westpac operational control.<br> • Emissions are estimated by multiplying the<br>quantity of fuel used by the relevant energy<br>content factor and emission factor;<br> • NGER Method 1;<br> • Average-data method; and<br> • Low measurement uncertainty.<br> • Invoice records – natural gas consumption;<br> • Fuel delivery records – diesel consumption; and<br> • Emission factors sourced from the NGER<br>Measurement Determination.<br> • Where natural gas invoices are not<br>available at the time of reporting<br>data is estimated using a weighted<br>average method.<br>Transport<br>combustion –<br>Fleet fuels<br>Combustion of fuels (diesel, petrol,<br>ethanol) for transport purposes<br>in fleet vehicles under Westpac<br>operational control.<br> • Emissions are estimated by multiplying the<br>quantity of fuel used by the relevant energy<br>content factor and emission factor;<br> • NGER Method 1;<br> • Average-data method; and<br> • Low measurement uncertainty.<br> • Supplier records – fleet fuel transaction<br>report; and<br> • Emission factors sourced from the NGER<br>Measurement Determination<br> • Reliance on supplier data.<br>Refrigerants Refrigerants used in commercial air<br>conditioning units at sites under<br>Westpac operational control.<br> • Emissions are estimated by multiplying the<br>refrigerant mass (kg) with the relevant<br>Global Warming Potential (GWP) value and<br>leakage rate;<br> • NGER Method 1;<br> • Average-data method; and<br> • Moderate measurement uncertainty.<br> • Internal refrigerant register – refrigerant<br>mass (kg) and gas type as per equipment<br>nameplate; and<br> • GWP value sourced from the NGER Regulations.<br> • Leakage rate is determined based on<br>the type of equipment and synthetic<br>gas. However, default leakage rate<br>may not reflect actual losses.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>76<br>TABLE 36: NEW ZEALAND SCOPE 1 DIRECT OPERATIONAL EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS (ACTIVITY DATA AND<br>EMISSION FACTORS)<br>ASSUMPTIONS<br>Stationary<br>combustion –<br>Natural gas, LPG<br>and diesel<br>Combustion of fuels (natural gas, LPG<br>and diesel) for stationary purposes at<br>sites under Westpac operational control.<br> • Emissions are estimated by multiplying the<br>quantity of fuel used by the relevant energy<br>content factor and emission factor;<br> • Average-data method; and<br> • Low measurement uncertainty.<br> • Invoice records – natural gas &<br>LPG consumption;<br> • Fuel delivery records – diesel consumption; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Where natural gas and LPG invoices<br>are not available at the time of<br>reporting, data is estimated based on<br>historical use.<br>Transport<br>combustion –<br>Fleet fuels<br>Combustion of fuels (diesel and petrol)<br>for transport purposes in fleet vehicles<br>under Westpac operational control.<br> • Emissions are estimated by multiplying the<br>quantity of fuel used by the relevant energy<br>content factor and emission factor;<br> • Average-data method; and<br> • Low measurement uncertainty.<br> • Supplier records – fleet fuel transaction<br>report; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Reliance on supplier data.<br>Refrigerants Refrigerants used in commercial air<br>conditioning units and refrigeration<br>units at sites under Westpac<br>operational control.<br> • Emissions are estimated by multiplying the<br>refrigerant mass (kg) with the leakage rate and<br>emission factor;<br> • Average-data method; and<br> • Moderate measurement uncertainty.<br> • Supplier refrigerant asset register – refrigerant<br>mass (kg) and gas type as per equipment<br>nameplate; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Leakage rate is determined based on<br>the size of equipment and type of<br>refrigerant. Default leakage rate may<br>not reflect actual losses.<br>For scope 1 emissions, other international operations include Westpac sites located in Fiji, Papua New Guinea (PNG) and the United Kingdom (UK).<br>TABLE 37: OTHER INTERNATIONAL SCOPE 1 DIRECT OPERATIONAL EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS (ACTIVITY DATA AND<br>EMISSION FACTORS)<br>ASSUMPTIONS<br>Stationary<br>combustion –<br>Natural gas<br>and diesel<br>Combustion of fuels (natural gas and<br>diesel) for stationary purposes at sites<br>under Westpac operational control.<br> • Emissions are estimated by<br>multiplying the quantity of fuel used<br>by the relevant energy content factor<br>and emission factor;<br> • Average-data method; and<br> • Moderate measurement uncertainty.<br> • Landlord records – natural gas<br>expenditure (UK);<br> • General ledger records – diesel<br>expenditure, quantity of drums<br>(PNG); and<br> • Emission factors sourced from the<br>NGER Measurement Determination.<br> • For UK, quantity of natural gas (MJ) is estimated by<br>multiplying the building gas expenditure, adjusted for<br>Westpac’s tenancy share, by the average gas unit price<br>published by Ofgem (UK energy regulator); and<br> • For PNG, quantity of diesel fuel (L) is estimated by<br>multiplying expenditure by the number and size of delivered<br>fuel drums.<br>Transport<br>combustion –<br>Fleet fuels<br>Combustion of fuels (diesel and petrol)<br>for transport purposes in fleet vehicles<br>under Westpac operational control.<br> • Emissions are estimated by<br>multiplying the quantity of fuel used<br>by the relevant energy content factor<br>and emission factor;<br> • Average-data method; and<br> • Moderate measurement uncertainty.<br> • Supplier records – fleet fuel<br>consumption (PNG and Fiji); and<br> • Emission factors sourced from the<br>NGER Measurement Determination.<br> • Reliance on supplier data.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>77<br>Our approach to measuring scope 2<br>indirect operational emissions<br>Scope 2 emissions are indirect greenhouse gas emissions<br>from the generation of purchased electricity consumed at<br>controlled facilities. Scope 2 greenhouse gas emissions<br>physically occur at the facility where electricity is generated.<br>Measurement approach<br> • Australian data is prepared in accordance with<br>the National Greenhouse and Energy Reporting<br>Act 2007 (NGER), using emission factors from<br>the NGER Measurement Determination (location-based) and National Greenhouse Account Factors<br>(NGAF) (market-based).<br> • New Zealand data is prepared in accordance with:<br> – the New Zealand Ministry for the Environment<br>guidance for GHG reporting and Toitū net carbonzero<br>programme rules, using emission factors from the<br>Ministry for the Environment Summary of Emissions<br>Factors (location-based), which uses the GWPs<br>published in the IPCC Fifth Assessment Report (AR5),<br>and BraveTrace (market-based);<br> – the Aotearoa New Zealand Climate Standards (NZ<br>CS): NZ CS 1, NZ CS 2, and NZ CS 3; and<br> – the Greenhouse Gas Protocol: A Corporate<br>Accounting and Reporting Standard (revised edition)<br>and the Greenhouse Gas Protocol: GHG Protocol<br>Scope 2 Guidance: An amendment to the GHG<br>Protocol Corporate Standard.<br> • Other international data is prepared with reference<br>to the GHG Protocol, using emission factors from<br>the International Energy Agency, UK Government GHG<br>Conversion Factors for Company Reporting, and US EPA<br>Emissions & Generation Resource Integrated Database<br>(eGRID). For market-based accounting, in regions where<br>no residual mix factor is available the location-based<br>emission factors are applied.<br>Our use of inputs is considered appropriate and accurately<br>represents our operational activities as:<br> • Activity data inputs are sourced from primary records,<br>including utility invoices; and<br> • Emission factor inputs are taken from secondary sources<br>provided by government authorities.<br>Our use of assumptions is considered appropriate for the<br>following reasons:<br> • To address data gaps, we utilise partial data and<br>extrapolate it using a weighted average method to<br>represent the entire activity; and<br> • The approach of extrapolating data for the final<br>three months of the financial reporting year (July<br>to September) using activity data from the prior<br>period is considered an appropriate proxy for the<br>current reporting period. If significant events impacting<br>greenhouse gas emissions metrics are identified before<br>publication, Westpac will provide qualitative disclosures<br>to ensure transparency for report users. The impact<br>of these significant events will be reflected in the<br>subsequent reporting period.<br>TABLE 38: AUSTRALIAN SCOPE 2 INDIRECT OPERATIONAL EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br>Purchased<br>electricity<br> – Location-based<br>Electricity<br>consumption<br>at sites under<br>Westpac<br>operational<br>control.<br> • Emissions are estimated by multiplying the quantity of purchased electricity<br>consumed by the applicable grid-average emission factor;<br> • Location-based method; and<br> • Moderate measurement uncertainty.<br> • Invoice records –<br>electricity consumption.<br> • Emission factors sourced<br>from the NGER<br>Measurement<br>Determination.<br> • Where invoices are not available at reporting,<br>data is estimated using the seasonally<br>adjusted weighted average method;<br> • Where invoices are not received for a site,<br>data is estimated using an average intensity<br>(kWh/m2<br>) for similar properties; and<br> • Average grid emission factors may not reflect<br>actual energy mix.<br>Purchased<br>electricity<br> – Market-based<br>Electricity<br>consumption<br>at sites under<br>Westpac<br>operational<br>control.<br> • Non-renewable electricity is determined by subtracting the quantity of renewable<br>electricity certificates surrendered from the total electricity consumed;<br> • Emissions are then calculated by multiplying the non-renewable electricity by the<br>residual mix factor;<br> • The residual mix factor is derived from the relevant national location-based scope 2<br>emission factor, adjusted to exclude the emissions benefit of all claimable renewable<br>generation in the grid;<br> • Market-based method; and<br> • Moderate measurement uncertainty.<br> • Invoice records –<br>electricity consumption;<br> • Energy attribute certificate<br>(EAC) records –<br>number of renewable<br>electricity certificates<br>surrendered; and<br> • Emission factors<br>from NGAF.<br> • Where invoices are not available at reporting,<br>data is estimated using the seasonally<br>adjusted weighted average method; and<br> • Where invoices are not received for a site,<br>data is estimated using an average intensity<br>(kWh/m2<br>) for similar properties.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>78<br>TABLE 39: NEW ZEALAND SCOPE 2 INDIRECT OPERATIONAL EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br>Purchased<br>electricity<br> – Location-based<br>Electricity consumption at sites under<br>Westpac operational control.<br> • Emissions are estimated by multiplying the quantity of<br>purchased electricity consumed by the applicable grid-average emission factor;<br> • Location-based method; and<br> • Moderate measurement uncertainty.<br> • Invoice records –<br>electricity consumption;<br> • Review – quarterly for unmetered<br>ATMs and standalone sites; and<br> • Emission factors sourced from<br>the Ministry for the Environment<br>Summary of Emission factors.<br> • Where electricity invoices are not<br>available at the time of reporting,<br>data is estimated based on<br>historical use;<br> • Where electricity from ATM use is<br>not metered, data is estimated based<br>on a metered ATM;<br> • Where a site is not standalone,<br>electricity use is assessed against<br>standalone sites using average<br>intensities (kWh/m2<br>). A top up of<br>estimated electricity consumed is<br>based on the difference in actual<br>Energy Use Intensity (EUI) and the<br>average intensity assigned to a site<br>based on several factors such as<br>days and hours of operation; and<br> • Average grid emission factors may<br>not reflect actual energy mix.<br>Purchased<br>electricity<br> – Market-based<br>Electricity consumption at sites under<br>Westpac operational control.<br> • Non-renewable electricity is determined by subtracting the<br>quantity of renewable electricity certificates surrendered<br>from the total electricity consumed;<br> • Emissions are then calculated by multiplying the non-renewable electricity by the residual mix factor;<br> • The residual mix factor is from the relevant national<br>location-based scope 2 emission factor, adjusted to exclude<br>the emissions benefit of all claimable renewable generation<br>in the grid;<br> • Market-based method; and<br> • Moderate measurement uncertainty.<br> • Invoice records –<br>electricity consumption;<br> • Energy attribute certificate<br>(EAC) records – number of<br>renewable electricity certificates<br>surrendered; and<br> • Emission factors BraveTrace. Annual<br>Production Year Report: Including<br>Residual Supply Mix (RSM) for<br>New Zealand.<br> • Where electricity invoices are not<br>available at the time of reporting,<br>data is estimated based on<br>historical use;<br> • Where electricity from ATM use is<br>not metered, data is estimated based<br>on a metered ATM; and<br> • Where a site is not standalone,<br>electricity use is assessed against<br>standalone sites using average<br>intensities (kWh/m2<br>). A top up of<br>estimated electricity consumed is<br>based on the difference in actual EUI<br>and the average intensity assigned<br>to a site based on several factors<br>such as days and hours of operation.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>79<br>For scope 2 emissions, other international operations include Westpac sites located in Fiji, PNG, Singapore, UK, United States (US), China and Germany.<br>TABLE 40: OTHER INTERNATIONAL SCOPE 2 INDIRECT OPERATIONAL EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br>Purchased<br>electricity<br> – Location-based<br>Electricity consumption at sites under<br>Westpac operational control.<br> • Emissions are estimated by multiplying the quantity of<br>purchased electricity consumed by the applicable grid-average emission factor;<br> • Location-based method; and<br> • High measurement uncertainty.<br> • General ledger records – electricity<br>expenditure (PNG);<br> • Invoice records – electricity<br>consumption (Fiji, Singapore, UK,<br>China, Germany, US); and<br> • Emission factors sourced from<br>UK Government GHG Conversion<br>Factors for Company Reporting<br>for the UK, US Environmental<br>Protection Agency (EPA) publishes<br>the eGRID database for the US and<br>International Energy Agency (IEA) for<br>all other locations.<br> • For PNG, quantity of purchased<br>electricity (kWh) is estimated by<br>multiplying expenditure by an<br>electricity unit price provided by the<br>energy retailer; and<br> • Average grid emission factors may<br>not reflect actual energy mix.<br>Purchased<br>electricity<br> – Market-based<br>Electricity consumption at sites under<br>Westpac operational control.<br> • Non-renewable electricity is determined by subtracting the<br>quantity of renewable electricity certificates surrendered<br>from the total electricity consumed;<br> • Emissions are then calculated by multiplying the non-renewable electricity by the residual mix factor;<br> • The residual mix factor is derived from the relevant national<br>location-based scope 2 emission factor, adjusted to exclude<br>the emissions benefit of all claimable renewable generation<br>in the grid;<br> • Market-based method; and<br> • High measurement uncertainty.<br> • General ledger records – electricity<br>expenditure (PNG);<br> • Invoice records – electricity<br>consumption (Fiji, Singapore, UK,<br>China, Germany, US);<br> • Energy attribute certificate<br>(EAC) records – number of<br>renewable electricity certificates<br>surrendered; and<br> • Emission factors sourced from IEA.<br> • For PNG, quantity of purchased<br>electricity (kWh) is estimated by<br>multiplying expenditure by an<br>electricity unit price; and<br> • For PNG and Fiji, residual mix<br>factors are not available so relevant<br>location-based emission factors<br>are applied.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>80<br>Our approach to measuring upstream<br>scope 3 indirect emissions<br>Upstream scope 3 emissions are indirect greenhouse<br>gas emissions (not included in scope 2 greenhouse gas<br>emissions) that occur in Westpac’s upstream value chain.<br>Measurement approach<br> • Australian data is prepared with reference to the GHG<br>Protocol: Corporate Value Chain (Scope 3) Accounting<br>and Reporting Standard, using emission factors from a<br>variety of sources including, NGAF, UK Government GHG<br>Conversion Factors for Company Reporting and supplier-specific factors;<br> • New Zealand data is prepared in accordance with the<br>New Zealand Ministry for the Environment guidance for<br>GHG reporting and Toitū net carbonzero programme<br>rules, using emission factors from the Ministry for the<br>Environment Summary of Emissions Factors (which uses<br>the GWPs published in the IPCC Fifth Assessment<br>Report (AR5)) and for paper use, the UK Department for<br>Business, Energy and Industrial Strategy. Government<br>greenhouse gas conversion factors for company<br>reporting (DESNZ 2024 & DESNZ 2025), using the<br>GWPs published in the AR5 and NXP Carbon Reduction<br>Certificate issued by the Carbon Reduction Institute<br>under their NoCO2 Certification Program (23rd May<br>2025); and<br> • Other international data is estimated by multiplying<br>the Australian emissions per full-time equivalent (FTE)<br>employee by the number of FTEs at the Group’s other<br>International sites.<br>Westpac’s use of inputs is considered appropriate and<br>accurately represents our operational activities for the<br>following reasons:<br> • Activity data inputs are sourced from primary<br>records; and<br> • Emission factor inputs are sourced from:<br> – Primary sources, including supplier-specific emissions<br>data, where available, and<br> – Secondary sources, such as government-published<br>emission factors (e.g., NGAF, UK GHG Conversion<br>Factors), when primary data is unavailable.<br>Westpac’s use of assumptions is considered appropriate for<br>the following reasons:<br> • To address data gaps, we utilise partial data and<br>extrapolate it using a weighted average method to<br>represent the entire activity; and<br> • The approach of extrapolating data for the final<br>three months of the financial reporting year (July<br>to September) using activity data from the prior<br>period is considered an appropriate proxy for the<br>current reporting period. If significant events impacting<br>greenhouse gas emissions metrics are identified before<br>publication, Westpac will provide qualitative disclosures<br>to ensure transparency for report users. The impact<br>of these significant events will be reflected in the<br>subsequent reporting period.<br>TABLE 41: AUSTRALIAN UPSTREAM SCOPE 3 INDIRECT EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br>Category 1:<br>Purchased goods<br>and services<br> • Production of goods and services<br>purchased by Westpac, specifically<br>electricity (third party), paper and<br>water consumption; and<br> • All other purchased goods and<br>services are excluded.<br> • Location-based and market-based<br>methods (electricity);<br> • Average-data method (paper and water); and<br> • Moderate measurement uncertainty.<br> • Invoice records – data centre electricity and<br>water; and<br> • Supplier records – ATM electricity and<br>paper reports.<br> • Reliance on supplier data.<br> • Electricity consumption from third<br>party data centres and ATMs.<br> • Emissions are estimated by multiplying the<br>quantity of purchased electricity consumed by<br>the applicable grid-average emission factor.<br> • Emission factors sourced from NGAF. • Third party data centre electricity is<br>based on invoices and apportioned<br>by the supplier to Westpac; and<br> • Third party ATM electricity data is<br>estimated based on average ATM<br>usage per day by machine type<br>multiplied by days the ATM was<br>operational and apportioned by the<br>supplier to Westpac.<br> • Paper (copy paper and other paper<br>items (e.g., statements)) purchased<br>through key suppliers.<br> • Emissions are estimated by multiplying the<br>weight of paper consumed by the applicable<br>emission factor.<br> • Emission factors sourced from UK<br>Government GHG Conversion Factors for<br>Company Reporting.<br> • Paper weight is estimated by<br>suppliers based on product<br>dimensions multiplied by product<br>grams per square metre.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>81<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br> • Water consumption at sites<br>under Westpac operational control<br>(Australia only).<br> • Emissions are estimated by multiplying the<br>volume of water consumed by the region-specific emission factor.<br> • Emission factors sourced from the Australian<br>National Life Cycle Inventory Database.<br> • Where water invoices are not<br>available at the time of reporting<br>data is estimated using a weighted<br>average method; and<br> • Where water invoices are not<br>received for a site data is estimated<br>using an average intensity (kL/m2<br>) for<br>similar properties.<br>Category 3:<br>Fuel and energy<br>related activities<br> • All upstream (cradle-to-gate)<br>emissions related to the production<br>of fuels and electricity purchased<br>and consumed by Westpac (not<br>included in scope 1 or scope 2) and<br>third party data centres and ATMs.<br> • Emissions are estimated by multiplying the<br>quantity of fuel used (converted to GJ) or<br>purchased electricity consumed by the relevant<br>and emission factor;<br> • Average-data method (fuels);<br> • Location-based and market-based methods<br>(electricity); and<br> • Low measurement uncertainty.<br> • Invoice records – natural gas, diesel,<br>electricity; and<br> • Emission factors sourced from NGAF.<br> • Where electricity and natural gas<br>invoices are not available at the time<br>of reporting data is estimated using a<br>weighted average method; and<br> • Where electricity invoices are not<br>received for a site data is estimated<br>using an average intensity (kWh/m2<br>)<br>for similar properties.<br>Category 4:<br>Upstream<br>transportation<br>and distribution<br> • Transportation and distribution<br>services between sites under<br>Westpac operational control (e.g.,<br>cheque) (in vehicles not owned or<br>controlled by Westpac); and<br> • Excludes transport of cash and<br>customer mailouts.<br> • Emissions are estimated by multiplying<br>the number of deliveries by the supplier<br>emission factor;<br> • Supplier-specific method; and<br> • Moderate measurement uncertainty.<br> • Supplier records – type and number of<br>deliveries; and<br> • Emission factors are specific to type of delivery<br>as provided by Australia Post.<br> • Reliance on supplier data.<br>Category 5:<br>Waste generated<br>in operations<br> • Third-party disposal and treatment<br>of waste generated at sites under<br>Westpac operational control; and<br> • Excludes emissions from<br>transportation to waste facilities,<br>construction waste and wastewater.<br> • Emissions are estimated by multiplying the<br>mass of waste by the relevant emission factor;<br> • Average-data method;<br> • Emissions from recycled waste are not included<br>in Westpac’s inventory. Emissions from recycling<br>are attributed to the user of the recycled<br>materials, not the producer of the waste, in line<br>with GHG Protocol;<br> • Recycled content method; and<br> • High measurement uncertainty.<br> • Supplier records – mass of solid waste disposed<br>in landfill;<br> • Waste audit records – sample of retail site<br>waste audits; and<br> • Emission factors for commercial and industrial<br>landfill waste are sourced from NGAF.<br> • Where records are not available<br>for a corporate site, waste data is<br>estimated based on average waste<br>per employee attendance (tonnes/<br>FTE) for similar properties;<br> • Waste data is estimated for retail<br>sites based on representative waste<br>audits and extrapolated using<br>employee attendance; and<br> • Westpac has excluded emissions<br>from wastewater treatment as the<br>financial services industry is not<br>identified as a sector with significant<br>wastewater emissions.<br>Category 6:<br>Business travel<br> • Transportation of employees for<br>business related activities.<br> • Distance-based method (air travel);<br> • Average data method (hotels);<br> • Spend-based method (taxi and rental cars); and<br> • Moderate measurement uncertainty.<br> • Supplier and accounts payable records<br>(see below).<br> • Reliance on supplier data.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>82<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br> • Combustion of fuels for air travel. • Air travel emissions are estimated by<br>multiplying distance travelled by the relevant<br>emission factor (including radiative forcing and<br>well-to-tank factors).<br> • Supplier records – passenger kilometres, ticket<br>class; and<br> • Emission factors sourced from the UK<br>Government GHG Conversion Factors for<br>Company Reporting – air travel.<br> • Air travel distance as calculated by<br>our travel management provider.<br> • Business travel accommodation use. • Hotel emissions are estimated by multiplying<br>the number of nights by the relevant<br>emission factor.<br> • Supplier records – number of nights; and<br> • Emission factors sourced from the Cornell Hotel<br>Sustainability Benchmarking Index (CHSBI) –<br>hotel nights.<br> • CHSBI measure 1 selected relates to<br>a median carbon footprint non-resort<br>type accommodation.<br> • Combustion of fuels for land travel. • Taxi and rental car travel emissions are<br>estimated by multiplying spend by industry<br>average emission factor.<br> • Accounts payable/general ledger – spend on taxi<br>and rental cars; and<br> • Emission factors sourced from FootprintLab, in<br>partnership with IELab.<br> • Business travel by public transport<br>modes has been assessed as<br>immaterial and not accounted for in<br>Westpac’s inventory; and<br> • Business travel in employee-owned<br>vehicles is deemed immaterial.<br>Category 7:<br>Employee<br>commuting<br> • Employees commuting and working<br>from home.<br> • Average-data method; and<br> • High measurement uncertainty.<br> • HR records – number of FTE; and<br> • Number of working days at home or office/retail<br>site – turnstile data (corporate sites) or business<br>assumptions (retail sites).<br> • Number of working days per year<br> – assumed FTEs work 5 days per<br>week for 48 weeks per year, this<br>accounts for public holidays and 4<br>weeks annual leave = 240 days; and<br> • FTE split between commuting and<br>working from home<br> – Assumed that if an employee is<br>not working in a corporate site,<br>they are working from home; and<br> – Assumed all retail employees<br>attend a Westpac retail site.<br> • Employees commuting between their<br>homes and their worksites.<br> • Estimated by multiplying the number of<br>employees by the number of commute days per<br>year by distance travelled by transport mode.<br> • Average distance travelled by mode of transport<br>is sourced from Australian Bureau of Statistics<br>2016 Census; and<br> • Emission factors are sourced from the UK<br>Government GHG Conversion Factors for<br>Company Reporting.<br> • Transport mode and distances<br>are based on average national<br>commuting pattern data.<br> • Employees working from home. • Estimated from electricity and fuel usage<br>associated with equipment (laptops and<br>monitors), lighting and heating or cooling.<br> • Emission factors are sourced from NGAF. • Assumed majority of staff use<br>heating/cooling, all staff use a<br>laptop, a monitor, and light their<br>home workspace which results in an<br>increase in energy consumption for 8<br>hours per day; and<br> • Assumed no renewable electricity<br>is used.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>83<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br>Category 8:<br>Upstream<br>leased assets<br> • Shared spaces in<br>commercial buildings.<br> • Emissions are estimated by multiplying<br>apportioned energy data (fuel or purchased<br>electricity) by the applicable emission factor<br>(including electricity T&D and fuel extraction and<br>distribution losses);<br> • Asset-specific method; and<br> • Moderate measurement uncertainty.<br> • Landlord reports containing site-specific energy<br>(fuel and electricity) data;<br> • Tenancy and total building area; and<br> • Emission factors are sourced from NGAF.<br> • Where landlord reports are not<br>available at the time of reporting,<br>energy data is estimated using<br>the seasonally adjusted weighted<br>average method; and<br> • Energy data is apportioned based on<br>Westpac tenancy area.<br>TABLE 42: NEW ZEALAND UPSTREAM SCOPE 3 INDIRECT EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br>Category 1:<br>Purchased goods<br>and services<br> • Production of goods and services<br>purchased by Westpac, specifically<br>electricity (third party) and paper<br>consumption; and<br> • All other purchased goods and<br>services are excluded.<br> • Location-based and market-based<br>methods (electricity);<br> • Average-data method (paper); and<br> • Moderate measurement uncertainty.<br> • Invoice records – data centre electricity; and<br> • Supplier records – fleet fuel transaction report,<br>data centre electricity and paper reports.<br> • Reliance on supplier data.<br> • Electricity consumption from third<br>party data centres and offsite<br>electric vehicle charging.<br> • Emissions are estimated by multiplying the<br>quantity of purchased electricity consumed<br>by the applicable grid-average emission<br>factor (excluding transmission and distribution<br>(T&D) losses).<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Third party data centre electricity is<br>based on:<br> – supplier reported average kW<br>usage per day apportioned<br>by the supplier to Westpac,<br>multiplied by the number of<br>hours in a day and number<br>of days over the reporting<br>period; and<br> – supplier reports and invoices<br>based on actual kWh<br>apportioned by the supplier<br>to Westpac.<br> • Paper (copy paper and other paper<br>items (e.g., statements)) purchased<br>through key suppliers.<br> • Emissions are estimated by multiplying the<br>weight of paper consumed by the applicable<br>emission factor.<br> • Emission factors sourced from the Department<br>for Business, Energy and Industrial Strategy UK.<br>Government greenhouse gas conversion factors<br>for company reporting (DESNZ 2024 & DESNZ<br>2025) and NXP Carbon Reduction Certificate<br>issued by the Carbon Reduction Institute under<br>their NoCO2 Certification Program.<br> • Paper weight is estimated by<br>suppliers based on product<br>dimensions multiplied by product<br>grams per square metre.<br>Category 3:<br>Fuel and energy<br>related activities<br> • Transmission and distribution losses<br>(T&D losses) for electricity and<br>natural gas consumed by Westpac.<br> • Emissions are estimated by multiplying the<br>quantity of purchased electricity consumed by<br>the applicable grid-average emission factor;<br> • Emissions are estimated by multiplying the<br>quantity of fuel used by the relevant energy<br>content factor and emission factor;<br> • Invoice records – electricity, natural gas and data<br>centre electricity;<br> • Supplier records – fleet fuel transaction report<br>and data centre electricity reports; and<br> • Where electricity and natural gas<br>invoices are not available at the time<br>of reporting, data is estimated based<br>on historical use;<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>84<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br> • Comprises T&D losses from electricity consumed<br>by Westpac sites, third party data centres and<br>offsite electric vehicle charging;<br> • Location-based method (electricity);<br> • Average-data method (natural gas);<br> • Moderate measurement uncertainty<br>(electricity); and<br> • Low measurement uncertainty (natural gas).<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Where electricity from ATM use is<br>not metered, data is estimated based<br>on a metered ATM; and<br> • Where a site is not standalone,<br>electricity use is assessed against<br>standalone sites using average<br>intensities (kWh/m2<br>). A top up of<br>estimated electricity consumed is<br>based on the difference in actual EUI<br>and the average intensity assigned<br>to a site based on several factors<br>such as days and hours of operation.<br> • Third party data centre electricity:<br> – supplier reported average kW<br>usage per day apportioned by<br>the supplier to Westpac,<br>multiplied by the number of<br>hours in a day and number of days<br>over the reporting period; and<br> – reports and invoices based on<br>actual kWh apportioned by the<br>supplier to Westpac.<br>Category 4:<br>Upstream<br>transportation<br>and distribution<br> • Transportation and distribution of<br>cash between sites under Westpac<br>operational control (in vehicles not<br>owned or controlled by Westpac).<br> • Emissions are estimated by multiplying our<br>share of the fuel used by the relevant energy<br>content factor and emission factor;<br> • Average-data method; and<br> • Moderate measurement uncertainty.<br> • Supplier records – share of supplier cash<br>service business, fuel type and quantity of fuel<br>consumed; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Reliance on supplier data.<br>Category 5:<br>Waste generated<br>in operations<br> • Third-party disposal and treatment<br>of waste generated at sites under<br>Westpac operational control; and<br> • Excludes emissions from<br>transportation to waste facilities and<br>construction waste.<br> • Emissions are estimated by multiplying the<br>mass of waste by the relevant emission factor;<br> • Average-data method;<br> • Emissions from recycled waste are not included<br>in Westpac’s inventory. Emissions from recycling<br>are attributed to the user of the recycled<br>materials, not the producer of the waste, in line<br>with GHG Protocol;<br> • Recycled content method; and<br> • High measurement uncertainty.<br> • Supplier records – mass of solid waste disposed<br>in landfill; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Waste data is estimated for retail<br>sites based on rubbish bag capacity.<br>Category 6:<br>Business travel<br> • Transportation of employees for<br>business-related activities.<br> • Distance-based method (air travel, private<br>vehicles used for business purposes and<br>rental cars);<br> • Average data method (accommodation);<br> • Spend-based method (rental cars and taxis); and<br> • Moderate measurement uncertainty.<br> • Supplier, accounts payable and employee<br>expense claim records (see below).<br> • Reliance on supplier data.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>85<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br> • Combustion of fuels for air travel. • Air travel emissions are estimated by<br>multiplying distance travelled by the relevant<br>emission factor (including radiative forcing and<br>well-to-tank factors).<br> • Supplier records – passenger kilometres, ticket<br>class; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Air travel distance as calculated by<br>our travel management provider.<br> • Business travel accommodation use. • Accommodation emissions are estimated by<br>multiplying the number of nights by the relevant<br>emission factor.<br> • Supplier records – number of nights; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Accommodation nights as reported<br>by our travel management provider.<br> • Combustion of fuels for land travel. • Taxi travel emissions are estimated by<br>multiplying spend by industry average emission<br>factor and the use of precalculated supplier<br>emissions reports.<br> • Accounts payable/general ledger – spend<br>on taxis;<br> • Supplier records – precalculated tCO2-e; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Reliance on internal data being<br>accurate and complete;<br> • Employees have claimed all their<br>business travel for taxi use; and<br> • Precalculated supplier tCO2-e are<br>estimates of on-trip CO2<br> tailpipe<br>emissions based on the supplier’s<br>methodology involving average fuel-efficiency ratings for similar vehicles<br>and certain data from third parties.<br> • Rental car travel emissions are estimated by<br>multiplying distance travelled by vehicle type<br>and size by the relevant emission factor.<br> • Supplier records – km travelled (rental car<br>supplier) and spend (travel management<br>provider); and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Spend as reported by our travel<br>management provider is converted to<br>km travelled using an average per km<br>cost based on km travelled reported<br>by our rental car supplier.<br> • Private vehicles used for business purposes<br>emissions are estimated by multiplying distance<br>travelled by the relevant emission factor.<br> • Employee expense claim records – km<br>travelled; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Employees have claimed all<br>their business travel for private<br>vehicles use.<br>Category 7:<br>Employee<br>commuting<br> • Employees commuting and working<br>from home.<br> • Average-data method.<br> • High measurement uncertainty.<br> • HR records – number of FTE, scheduled<br>workdays and unique work / home address<br>combinations; and<br> • Number of working days at home or corporate/<br>retail site – swipe data (corporate sites)<br>or business<br>assumptions (retail sites).<br> • FTE split between commuting and<br>working from home<br> – Assumed that if a corporate<br>employee is not working in a<br>corporate site, they are working<br>from home;<br> – Assumed all retail employees<br>attend a Westpac retail site;<br> – Where no work location exists,<br>it is assumed that the employee<br>works from home; and<br> – Where commute is >150km, it<br>is assumed the employee works<br>from home.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>86<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br> • Commuting by our employees<br>between their homes and<br>their worksites.<br> • Employee commuting emissions are estimated<br>by multiplying the number of employees by<br>the number of commute days per quarter by<br>distance travelled by transport mode.<br> • Means of travel (mode of transport) from Stats<br>NZ 2023 Census;<br> • Statistical Area 2 from Stats NZ Statistical Area<br>2 2023; and<br> • Emission factors sourced from the Ministry for<br>the Environment Summary of Emission factors.<br> • Employee work/home locations are<br>based on current HR data and<br>assumed unchanged throughout<br>the year;<br> • Commute distances are estimated<br>using straight-line (as-the-crow-flies)<br>measurements between geocoded<br>home/work areas, adjusted by a<br>commute factor and doubled for<br>round trips;<br> • The commute factor is determined by<br>comparing straight-line distances to<br>a sample of driving routes obtained<br>via Google Maps;<br> • All commute distances are assumed<br>to be by car; and<br> • Where home address is unable to<br>be geocoded an average commute<br>distance is used.<br> • Work undertaken by our employees<br>at their home.<br> • Employee working from home emissions are<br>estimated by multiplying the number of work-from-home days by the relevant emission factor.<br>Refer employee commute inputs. Refer employee commute assumptions.<br>For upstream scope 3 emissions, other international operations include Westpac’s Fiji, PNG, Singapore, UK, US, China and Germany operations.<br>TABLE 43: OTHER INTERNATIONAL UPSTREAM SCOPE 3 INDIRECT EMISSIONS BY CATEGORY (TCO2-E)<br>CATEGORY BOUNDARY METHODOLOGY INPUTS ASSUMPTIONS<br>Category 1 and<br>Categories 3-8<br>Indirect greenhouse gas emissions that<br>occur in Westpac’s upstream value chain.<br> • Emissions are estimated by multiplying the<br>Australian total upstream scope 3 emissions per<br>FTE by the number of FTEs of the Group’s other<br>international sites;<br> • Methods as per table above ‘Australian<br>upstream scope 3 emissions by category'; and<br> • High measurement uncertainty.<br> • HR records – number of FTE; and<br> • Australian total upstream scope 3 emissions.<br> • Upstream scope 3 emissions from<br>Westpac’s international operations<br>are assumed equivalent to those<br>from Australian operations on a per-FTE basis.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>2. METHODOLOGY – OPERATIONAL EMISSIONS – SCOPE 1, 2 AND UPSTREAM SCOPE 3<br>87<br>Reporting of our scope 3 inventory<br>Our scope 3 inventory includes upstream categories 1, 3 to<br>8, as well as downstream category 15.<br>The table below outlines the inclusion status of upstream<br>scope 3 emission sources in our scope 3 inventory, along<br>with the rationale for any exclusions.<br>TABLE 44: UPSTREAM SCOPE 3 EMISSIONS SOURCES<br>INCLUDED AND EXCLUDED IN OUR INVENTORY<br>Upstream<br>emission sourcesa Justification<br>Category 1: Purchased goods<br>and services<br>Partially included. In response to<br>new mandatory climate reporting<br>standards, we are reviewing our<br>disclosures and expect to expand<br>our reporting boundary in 2026.<br>Category 2: Capital goods Yet to report. In response to<br>new mandatory climate reporting<br>standards, we are reviewing our<br>disclosures and expect to expand<br>our reporting boundary in 2026.<br>Category 3: Fuel and<br>energy-related activities (not<br>included in Scope 1 or<br>Scope 2)<br>Included.<br>Category 4:<br>Upstream transportation<br>and distribution<br>Included.<br>Category 5: Waste generated<br>in operations<br>Included.<br>Category 6: Business travel Included.<br>Category 7:<br>Employee commute<br>Included.<br>Category 8: Upstream<br>leased assets<br>Included.<br>a. Upstream emissions categories reported are taken from the<br>Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard.<br>TABLE 45: RELEVANCE OF DOWNSTREAM SCOPE 3 EMISSIONS SOURCES TO OUR INVENTORY<br>Emission sources tested for relevance Justification<br>Category 9: Downstream transportation<br>and distributiona<br>As a bank, we offer financial services, not physical products. Therefore there are no significant<br>emissions from transporting goods to customers. Any related emissions are considered immaterial.<br>Category 10: Processing of sold productsb Our services do not involve physical products, so there are no emissions from processing sold items.<br>Category 11: Use of sold productsc The use of our financial products does not generate emissions. This differs from our lending<br>activities, which are covered under our financed emissions reporting (Category 15: Investments).<br>Category 12: End-of-life treatment of<br>sold productsd<br>We do not produce physical products, so there are no emissions from disposal. Emissions from card<br>issuance have been reviewed and are considered immaterial and not separately calculated.<br>Category 13: Downstream leased assetse Downstream leased assets mainly include owned premises leased to third parties. The level of<br>premises owned is small and the portion that is leased is immaterial. Accordingly the associated<br>emissions are not material and have not been included for this activity.<br>Category 14: Franchisesf We do not operate franchise businesses, this category is not considered relevant.<br>Category 15: Investmentsg The financed emissions associated with our lending activities are reported under Category 15<br>Investments. Other elements in Category 15 (i.e., equity investments) are not considered relevant.<br>a. Emissions that occur in the reporting year from transportation and distribution of sold products in vehicles and facilities not owned or controlled by<br>the reporting company.<br>b. Emissions from processing of sold intermediate products by third parties (e.g., manufacturers) subsequent to sale by the reporting company.<br>c. Emissions from the use of goods and services sold by the reporting company in the reporting year.<br>d. Emissions from the waste disposal and treatment of products sold by the reporting company (in the reporting year) at the end of their life.<br>e. Emissions from the operation of assets that are owned by the reporting company (acting as lessor) and leased to other entities in the reporting year<br>that are not already included in scope 1 or scope 2.<br>f. Emissions from the operation of franchises not included in scope 1 or scope 2. A franchise is a business operating under a license to sell or<br>distribute another company’s goods or services within a certain location.<br>g. Emissions associated with the reporting company’s investments in the reporting year, not already included in scope 1 or scope 2.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 88<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>Introduction<br>Overview<br>For Westpac, financed emissions are the indirect<br>greenhouse gas emissions associated with our<br>financing activities.<br>We estimate our attributable share of customers' scope<br>1 and 2 (and for certain sectors scope 3) emissions and<br>categorise these as part of our own scope 3 (category 15)<br>emissions in our emissions account.<br>Estimating financed emissions is vital if we are to achieve<br>our ambition to become a net-zero, climate resilient<br>bank. This is because financed emissions are the largest<br>element of our carbon footprint. By estimating our financed<br>emissions, we can also assess where we can make the<br>biggest difference, including via the financed emissions<br>targets for the most emissions intensive sectors we lend to.<br>We have estimated and disclosed our financed emissions<br>since FY21, continually improving our calculations and data<br>each year. In FY25, we continued to refine our estimate of<br>our financed emissions for FY24 by incorporating updated<br>data and calculations.<br>Refer to Tables 29 to 31 in this Report for the updated<br>estimates of our financed emissions for FY24.<br>Approach to estimating our financed emissions<br>Westpac Group financed emissions are consolidated<br>and reported under the operational control approach.<br>They include estimated emissions for Westpac Banking<br>Corporation (in Australia), Westpac Banking Corporation<br>New Zealand Branch (‘NZ Branch’), and Westpac New<br>Zealand Limited (‘WNZL’). Westpac did not control<br>or operate any other material investees (associates,<br>joint ventures and unconsolidated subsidiaries) for the<br>reporting period.<br>In the current reporting period, we report our financed<br>emissions one year in arrears (similar to how we report our<br>financed emissions sector targets). This assists us to use<br>data more closely aligned to that reporting period.<br>Financed emissions are calculated across three broad<br>asset classes:<br>1. Business, commercial and institutional lending;<br>2. Commercial real estate; and<br>3. Residential mortgages.<br>We have excluded the following lending categories from<br>our financed emissions estimation due to materiality, data<br>limitations, and lack of appropriate methodologies:<br> • Non-mortgage personal lending (e.g., personal loans and<br>credit cards);<br> • Member and investor equity investments which are<br>either administered or managed by our wealth<br>management businesses1<br>;<br> • Direct equity investments2<br>;<br> • Westpac margin lending;<br> • Certain business credit card exposures3<br>;<br> • Lending in our Fiji and Papua New Guinea (PNG)<br>operations; and<br> • Lending to governments and government-owned<br>entities4<br>, as well as financial assets held for short-term liquidity and treasury purposes, which are not<br>considered part of our core financing activities.<br>We estimate financed emissions for project finance,<br>equipment finance, and motor vehicle loans5<br> with the same<br>methodology as applied to general lending rather than<br>specific methodologies for these facilities.<br>The methodologies used were informed by principles in<br>the Partnership for Carbon Accounting Financials (PCAF)’s<br>Global GHG Accounting and Reporting Standard: Part A –<br>Financed Emissions 2nd edition6<br> (the PCAF Standard).<br>We have sought to align with the PCAF Standard<br>wherever possible, although we have also considered local<br>applicability, availability of data, and other commercial<br>considerations. Westpac is not currently a signatory to the<br>PCAF Standard.<br>FACILITATED EMISSIONS<br>We do not calculate facilitated emissions from transactions<br>we facilitate including bond issuance, underwriting, or<br>syndicated lending. This applies to both our portfolio<br>emissions and emissions included in our financed emissions<br>sector targets. As an institutional, commercial and retail<br>bank, we participate in capital markets activity but it is not a<br>material part of our business.<br>MATERIALITY AND REASONABLENESS<br>We estimate financed emissions using feasible, reasonable<br>methods informed by the PCAF Standard. While more<br>detailed data or methodologies are sometimes available, we<br>weigh their benefits against potential risks from increased<br>complexity and only pursue them if material to our<br>business. Our approach considers the PCAF Standard, data<br>quality, model complexity, and the materiality of sectors,<br>acknowledging that Westpac’s loan portfolio in Australia<br>and New Zealand is broadly representative across regions<br>and industries.<br>1 This Report includes Westpac and all its subsidiaries, including the Australian and New Zealand Wealth Management entities. We exclude direct equity investments and the investments related to our funds management activities from our<br>financed emissions calculations as these are not material. Westpac has exited most of its fund management activities, and where activities remain, they are not material or not relevant to the calculation of financed emissions. This includes a<br>small funds management business in New Zealand. The Group has a large funds administration business however it has no beneficial interest in the investments that it administers, nor does it provide financial advice. Therefore, for the purpose<br>of estimating financed emissions, we have excluded the investments related to our funds administration business, as we believe these are not relevant for this purpose.<br>2 Westpac has a small number of direct equity investments but these are also not material in the context of the Group, nor do we have a controlling interest in them.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>89<br>APPROACH TO RESTATEMENTS<br>We may consider restating prior period financed emissions<br>estimates, or revising sector target baselines, progress and<br>target figures, in circumstances including, but not limited<br>to, changes in calculation methodologies, updates to data<br>sources and correction of discrepancies or errors.<br>Where such circumstances arise, we assess the materiality<br>of the change to determine whether a restatement is<br>appropriate. In addition to quantitative thresholds, we<br>consider the specific context of each recalculation on a<br>case-by-case basis to guide our assessment. Any proposed<br>restatement is reviewed by the Group ESG Disclosure and<br>Reporting Officer.<br>This year, we did not restate any of our previously reported<br>scope 3 financed emissions figures.<br>Data elements, factors and limitations that may<br>impact our estimates7<br>MEASURES OF LENDING<br>For estimating financed emissions, we use two different<br>measures of lending:<br> • For residential mortgages, we use outstanding<br>loan balance.<br> • For our business, commercial and institutional lending<br>including for commercial real estate, we use Total<br>Committed Exposure (TCE).<br>Collectively, these are termed our 'lending' to customers.<br>While our use of outstanding loan balances for mortgages<br>aligns with the approach recommended in the PCAF<br>Standard for ‘Mortgages’, our use of TCE is a more<br>conservative approach than recommended in the PCAF<br>Standard, which suggests the use of outstanding loan<br>amount for ‘Business loans’.<br>We consider the use of TCE to be a more comprehensive<br>approach as it better reflects the funds we make available<br>to customers and hence contribute to or mitigate emissions.<br>It also allows for better long-term measurement of<br>our financed emissions as it avoids volatility linked to<br>customers’ use of facilities, and would tend to be associated<br>with higher emissions estimates as TCE is larger than<br>balance sheet lending.<br>For completeness, we also report our financed emissions<br>on an outstanding loan balance basis for all three asset<br>classes (see Table 30) and on the basis of our undrawn<br>commitments for our business, commercial and institutional<br>lending including for commercial real estate (see Table 31).<br>Refer to the Glossary for more information on TCE.<br>FACTORS AND LIMITATIONS<br> • Timing of data: While we seek to use the most<br>recent data relevant to the reporting period for<br>which we estimate emissions, this is not always<br>possible. For example, while we use 30 September<br>2024 lending data to estimate our share of financed<br>emissions for FY24, we may need to use emissions<br>factors from FY23 as these may be the only data<br>available. Similarly, customer-specific financial data<br>(such as company revenue or value) may only be<br>available for periods preceding (or in some instances<br>following) the reporting period. We prioritise available<br>data from the most recent time periods that are relevant<br>to our estimations, supplemented by estimates and<br>assumptions where applicable.<br> • Industry classification codes: We use ANZSIC codes to<br>identify customers' primary business activities as they<br>are maintained in our lending systems8<br>. The use of<br>ANZSIC codes has limitations, however, as:<br> – They may not accurately reflect the totality of<br>activities of a diversified business;<br> – A businesses’ activities may change over time and<br>the ANSZIC allocated may be redundant; and<br> – It is not often straightforward to map ANZSIC with<br>related emissions factors and other data inputs.<br>For many sectors, we use a relevant estimation approach<br>and apply sector-level economic intensity emissions<br>factors and sector-level financial ratios at an ANZSIC<br>code level. Where we are unable to do so we look for<br>the next best approach.<br> • Data quality: As data quality varies across portfolios<br>and sectors, in some instances we need to use proxy<br>data to estimate emissions. We evaluate the data<br>quality of various data inputs in each asset class using<br>Data Quality Scores based on the PCAF Standard. These<br>reflect the level of uncertainty in the data inputs using<br>a scale of 1 to 5, with the lowest scores assigned to<br>estimation methodologies that use more accurate and<br>specific company/property-level inputs and the highest<br>scores assigned to estimation methodologies reliant<br>on assumptions and proxy data such as sector-level<br>emissions factors. As part of our financed emissions<br>reporting, we report data quality scores across sectors<br>and asset classes, weighted based on lending, to provide<br>insight into the relative distribution of the estimation<br>methodologies applied. Over time we aim to lift the<br>quality and availability of our data inputs and improve<br>our Data Quality Scores across our asset classes.<br>3 Certain business credit card exposures outside of our New Zealand portfolio may be inadvertently excluded in instances where they may be categorised as retail lending.<br>4 Including where these are categorised in the “Government, administration, and defence” sector. As defined by ANZSIC codes under ANZSIC subdivisions 81 (Government Administration) and 82 (Defence). For WNZL portfolio, we exclude specific<br>Crown entities in NZ outside of these ANZSIC codes where they have an ANZSIC associated with the industry they participate in.<br>5 Except where the loan is a personal loan, on which basis it is excluded.<br>6 Available at: https://carbonaccountingfinancials.com/files/downloads/PCAF-Global-GHG-Standard.pdf<br>7 Not an exhaustive list.<br>8 Applicable to business, commercial and institutional lending (including for commercial real estate) customers<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>90<br> • Property-level information: We generally cannot access<br>property-level energy usage or emissions data for most<br>residential or commercial properties. Likewise, detailed<br>energy efficiency data is unavailable for buildings that<br>secure our loans. Therefore, we estimate emissions<br>using regional averages or proxy data. Since Westpac's<br>portfolio is geographically diverse, this approach should<br>produce representative aggregate results.<br> • Exchange rates: Where financial data is in another<br>currency we convert it to AUD using the spot exchange<br>rate at the end of the reporting period. Financed<br>emissions for WNZL portfolio are estimated on an NZD<br>basis and the in-scope exposure amounts are converted<br>to AUD for consolidation into the Group result.<br>CHANGES TO METHODOLOGIES AND UNDERLYING DATA<br>Caution should be taken when comparing our financed<br>emissions results from year to year. Changes to<br>methodologies and underlying data (refer to the Data Inputs<br>and Sources table in the methodology for each asset class)<br>may impact comparability over time. Changes could include<br>changing data sources, company and property data, sector<br>allocations, exchange rates, emission factors, and financial<br>ratios. Methodology changes are also possible as more<br>analysis is completed on sectors and sub-sectors to better<br>understand emissions.<br>Independent assurance<br>We have obtained limited assurance over our Group<br>financed emissions estimates. Refer to the Independent<br>Assurance Statement available in the Appendix section of<br>this Report.<br>We highlight any material deviations between our Group<br>financed emissions estimation methodologies and both the<br>approaches applied to estimating financed emissions for<br>some of our financed emissions sector targets and the PCAF<br>Standard, where relevant.<br>Methodology<br>Residential Mortgages<br>We estimate the financed emissions of our residential<br>mortgage lending in Australia and New Zealand. This<br>includes loans to owner-occupiers and investors for a<br>broad range of dwellings. We estimate the scope 1 and 2<br>emissions of properties held as security against these loans<br>and aggregate to determine portfolio emissions.<br>We determine our share of estimated emissions using an<br>attribution factor derived as the ratio of the loan amount to<br>the property value. We adjust the ratio if multiple properties<br>are linked to one loan. The property value is measured at<br>the most recent credit assessment event1<br> (e.g., the loan was<br>opened, increased, renewed, refinanced, or extended).<br>Financed emissions are estimated for groups of properties<br>with similar building and geographic characteristics2<br>, and<br>the product of the estimated emissions for each group of<br>properties and the attribution factor for each group is then<br>aggregated into the portfolio total.<br>Emissions are estimated in accordance with methodologies<br>in the following preference order, based on the quality and<br>availability of underlying data:<br>TABLE 46: METHODOLOGIES AND ASSOCIATED SCORES<br>Estimation methodology Data Quality<br>(DQ) score<br>Based on property energy consumption (i.e., metered data)<br>and supplier-specific emissions factors (DQ Score 1) or<br>average emissions factors (DQ Score 2) specific to the<br>respective energy source.<br>This approach was not applied due to limited<br>data availability.<br>1 and 2<br>Based on estimated property energy consumption per unit<br>of floor area (using building energy labels) and average<br>emission factors specific to the respective energy source.<br>This approach was not applied due to limited<br>data availability.<br>3<br>Based on estimated property energy consumption per<br>unit of floor area (building type and location-specific<br>4<br>1 We deviate from the PCAF Standard in that we do not use property value at origination, as we consider the valuation at the most recent credit assessment event to be more representative.<br>2 Grouping approach applied to Australian residential mortgages portfolio due to data limitations. Financed emissions for the New Zealand residential mortgages portfolio are calculated on a loan-by-loan basis without grouping the loans or<br>properties together (effectively each property is considered as its own group).<br>FIGURE 21: OVERVIEW OF FINANCED EMISSIONS ESTIMATION METHODOLOGY FOR RESIDENTIAL MORTGAGES<br>Estimated<br>financed<br>emissions for<br>each group of<br>similar properties<br>(based on the<br>characteristics<br>and location of<br>properties in<br>the group)<br>Estimated<br>GHG<br>emissions<br>for property<br>(based on the<br>characteristics<br>and location<br>of properties<br>in the group)<br>Number of<br>properties in<br>the group<br>Total loan amounts<br>outstanding for<br>properties in the group<br>Total property value of<br>properties in the group<br>= x x<br>(attribution factor) WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>91<br>Estimation methodology Data Quality<br>(DQ) score<br>statistical data) and average emission factors specific to<br>the respective energy source.<br>This approach was applied to most of our portfolio where<br>property floor area and location information was available.<br>Floor area was either actual floor area recorded or sourced<br>from market data, or the number of bedrooms as a proxy.<br>Based on estimated property energy consumption per<br>energy type per property (using property type and<br>location-specific statistical data) and average emission<br>factors specific to each energy source.<br>This approach was applied where only the loan amount<br>and property value were available.<br>Where location information was unavailable, average<br>energy consumption benchmarks created for State,<br>regional or national levels, where appropriate.<br>5<br>DATA INPUTS AND SOURCES<br>TABLE 47: DATA INPUTS AND THEIR CHARACTERISTICS<br>Region Data input Source Publication date<br>Data inputs to estimate property energy consumption<br>AU Per-dwelling electricity<br>and natural<br>gas consumption<br>benchmarks by<br>State and Territory,<br>climate zone, and<br>household size<br>Australian Energy<br>Regulator (AER)<br>2021 (Jun)<br>AU LPG consumption (as<br>% share of electricity<br>consumption, derived<br>from Australian Energy<br>Statistics, Table F,<br>Australian energy<br>consumption by State<br>and Territory, by<br>industry and fuel type,<br>energy units)<br>Department of<br>Climate Change,<br>Energy, the<br>Environment<br>and Water<br>2024 (Aug)<br>AU Postcode to climate<br>zone reference link<br>Australian Energy<br>Regulator (AER)<br>2021 (Jun)<br>Region Data input Source Publication date<br>AU Geographic location<br>to climate zone<br>reference link<br>Australian Building<br>Codes Board<br>(ABCB) Climate<br>Map with National<br>Construction Code<br>(NCC) climate zones<br>2019 (Sep)<br>NZ Per-dwelling electricity<br>consumption across the<br>islands and regions<br>New Zealand<br>Electricity Authority<br> – Residential<br>Consumption<br>Trends<br>2023 (Oct) to<br>2024 (Sep)<br>NZ Heating and cooling<br>emissions by region<br>Stats New Zealand<br> – Residential<br>Emissions by<br>Region – Heating<br> & Cooling<br>2024<br>Data inputs to estimate property floor area<br>AU Property characteristics<br>of matched residential<br>dwellings (including<br>number of bedrooms)<br>Property market<br>data provider<br>2024<br>NZ Average floor area of<br>residential dwellings<br>by regions<br>Property market<br>data provider<br>2024<br>Household and population statistics<br>AU Household statistics,<br>including State-level<br>average occupants per<br>household and average<br>bedrooms per dwelling<br>Australian Bureau<br>of Statistics<br>(ABS) Census<br>2022 (for<br>2021 Census)<br>Emissions factors<br>AU Emissions factors for<br>electricity consumption<br>at the State level<br>and the combustion of<br>natural gas and LPG<br>Australian National<br>Greenhouse<br>Accounts Factorsa<br>2024 (Aug)b<br>NZ Emissions factors for<br>electricity consumption<br>at the national level,<br>and the combustion of<br>natural gas, LPG, wood,<br>and coal<br>New Zealand<br>Government<br>Ministry for<br>the Environment<br>emissions<br>measurement guide<br>for organisationsa<br>2024<br>a. Uses the GWPs published in the IPCC Fifth Assessment Report (AR5).<br>b. As described in the Australian National Greenhouse Accounts<br>Factors 2024: data used for the estimation of the factors within this<br>document are the latest available at the time of estimation – which<br>includes NGER reporting data for the 2022-23 cycle.<br>NOTABLE EXCLUSIONS<br> • Home equity loans and home equity lines of credit as<br>these products are like other personal loans, and are a<br>small portion of the mortgage book;<br> • Construction or renovation loans as emissions<br>associated with this activity would generally be<br>attributable to the company undertaking the work;<br> • Loans for the purchase of vacant land;<br> • Mortgages in regions outside of Australia and New<br>Zealand; and<br> • Customers’ scope 3 emissions.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>92<br>Business, commercial, and institutional lending<br>We estimate financed emissions associated with business,<br>commercial and institutional lending. This includes property<br>customers in the sector where the lending does not meet<br>the definition of secured lending in the Commercial Real<br>Estate asset class, where a separate methodology is used.<br>We estimate the scope 1 and 2 emissions and aggregate<br>across customers and portfolios. We have estimated scope<br>3 emissions in certain sectors where the emissions are a<br>significant portion of the sector’s emissions, including<br>certain mining sectors (such oil and gas extraction) and<br>downstream sectors in manufacturing1<br>.<br>We use an attribution factor to determine our share of a<br>customer’s emissions. This factor is the ratio of our lending<br>over company value. Depending on data availability,<br>company value is either the enterprise value including cash<br>(EVIC) (which is our first choice) or the sum of the total<br>equity and debt2<br>.<br>Financed emissions by customer are calculated as the<br>product of the customer attribution factor and their total<br>reported or estimated emissions.<br>Emissions are estimated in accordance with methodologies<br>in the following preference order, based on the quality and<br>availability of underlying data:<br>TABLE 48: METHODOLOGIES AND ASSOCIATED SCORES<br>Estimation methodology Data Quality<br>(DQ) score<br>Based on customer-specific emissions data, which have<br>been verified by a third-party auditor (DQ Score 1) or are<br>unverified (DQ Score 2).<br>This approach was applied to institutional banking<br>customers where customer-specific financial data and<br>reported emissions data were available. It was also<br>applied to certain Agriculture, Forestry, and Fishing<br>customers, where farm emissions were available.<br>We assumed all data was unverified and so had DQ score<br>of 2.<br>1 and 2<br>Estimation methodology Data Quality<br>(DQ) score<br>Based on primary activity data for the company’s<br>production and emission factors specific to that<br>primary activity.<br>Where customer-specific data were available, this<br>approach was applied to estimate scope 1 emissions for<br>customers in certain Agriculture, Forestry, and Fishing<br>sectors (with scope 2 estimated on sector-level economic<br>emissions intensity factors).<br>3<br>Based on sector-level economic emissions<br>intensity factors.<br>Where customer-specific financial data was available but<br>neither customer-specific emissions nor production data<br>were available, attributed emissions were estimated as<br>the product of our lending, the financial ratio specific to<br>the company or parent group, and a sector-level economic<br>emissions intensity factor (tCO2-e per AUD$ of revenue)<br>(DQ Score of 4).<br>4 or 5<br>Estimation methodology Data Quality<br>(DQ) score<br>Where customer-specific financial, emissions or<br>production data was not available, an estimated sector-level financial ratio was applied (DQ Score 5).<br>Where ANZSIC codes are absent or sector classifications<br>cannot be determined or mapped, we assign proxy codes<br>to estimate emissions using a sector average ratio and<br>a sector emissions factor for a representative sector,<br>ensuring that some emissions are still attributed to<br>these customers.<br>For institutional exposures in the Electricity Supply sector,<br>we incorporate additional internal research and green<br>lending data, where available, to distinguish between<br>renewable and non-renewable generation activities and<br>other activities that these customers in this sector may<br>be involved in (which may also include electricity retailing<br>and market operations). We apply a weighted average<br>of fossil-fuel electricity generation factors and lower-intensity factors based on this information, such that the<br>1 Scope 3 analysis limited to customers allocated to the following ANZSIC (1993) codes within the Mining sector (1101, 1102, 1200, 1311, 1312, 1313, 1314, 1315, 1316, 1317, 1319, 1411, 1419 and 1420) and Manufacturing sector (2510, 2520, 2531,<br>2532 and 2721).<br>2 Total tangible assets are used in place of total equity and debt for customers in certain Agriculture, Forestry, and Fishing sectors in instances where financial data on total tangible assets is available and a reliable attribution factor based on<br>total equity and debt cannot be calculated.<br>FIGURE 22: OVERVIEW OF FINANCED EMISSIONS ESTIMATION METHODOLOGY<br>FOR BUSINESS, COMMERCIAL, AND INSTITUTIONAL LENDING<br>Estimated financed<br>emissions for each<br>customer<br>Customer<br>GHG emissions<br>(or estimated<br>emissions)<br>Total customer lending<br>Customer company value<br>= x<br>(attribution factor) WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>93<br>Estimation methodology Data Quality<br>(DQ) score<br>estimation reflects the diversity of generation types and<br>more appropriate factors, where possible.<br>DATA INPUTS AND SOURCES<br>TABLE 49: DATA INPUTS AND THEIR CHARACTERISTICS<br>Region Data input Source Publication date<br>Reported emissions and activity data<br>AU Customers’ reported<br>scope 1, 2, and<br>3 emissions<br>Australian Clean<br>Energy Regulator<br>NGER Corporate<br>emissions and<br>energy data<br>2025 release<br>based on<br>2023-24 data<br>Financial market<br>data provider<br>2025 (up to<br>early June)<br>AU Customers’ activity /<br>production data (e.g.,<br>milk production,<br>livestock inventories)<br>Internal systems<br>based on customer<br>filings for certain<br>Agriculture<br>customers<br>2025 (up<br>to end-June)<br>NZ Customers’ reported<br>scope 1, 2, and<br>3 emissions<br>Internal systems,<br>public disclosures<br>and financial market<br>data providers<br>2025<br>NZ Customers’ activity /<br>production data (e.g.,<br>livestock inventories)<br>Internal systems 2025<br>Customers' financial data<br>AU Customers’<br>financial data<br>Combination<br>of: internal<br>systems; and,<br>financial market<br>data providers.<br>2025 (up<br>to end-June)<br>NZ Customers’<br>financial data<br>Combination<br>of: internal<br>systems; and,<br>financial market<br>data providers.<br>2025<br>Emissions factors<br>Region Data input Source Publication date<br>AU Factors for scope 1, 2<br>and 3 for Australian<br>industry sectors<br>IELabs spend-based<br>emissions factorsc<br>2025 release<br>based on<br>2024 data<br>AU Factors for scope<br>1 emissions related<br>to land management<br>per head of livestock<br>(Beef and Sheep) and<br>per litre of milk<br>produced, in Australian<br>Agriculture sector<br>Based on data<br>prepared for the<br>Australian Agriculture<br> – Beef and Sheep<br>and Agriculture – Dairy<br>financed emissions<br>sector targets. Refer to<br>page 104 to 105.<br>Australia’s National<br>Greenhouse<br>Accounts (NGA)<br> – State/Territory<br>emissions data for<br>Beef and Sheep,<br>and Dairy<br>2025 release<br>based on<br>2023 data<br>Australian Bureau<br>of Agriculture and<br>Resource Economics<br>and Sciences<br>(ABARES) –State/<br>Territory data for<br>Australian meat<br>production for beef<br>and sheep, and<br>count of animals;<br>Milk production<br>2025 release<br>based on<br>2023 data<br>NZ National average<br>emissions factors<br>Stats New Zealand,<br>GHG Emissions<br>by Industrya<br>2022<br>NZ Factors for scope<br>1, 2 and 3 for<br>Aotearoa New Zealand<br>industry sectors<br>thinkstep-anz,<br>Emission Factors<br>for New Zealand:<br>Greenhouse<br>Gas Emission<br>Intensities for<br>Commodities and<br>Industries. v2.0b.<br>2024<br>NZ Scope 1 & 2 emissions<br>factors per head of<br>livestock in Aotearoa<br>New Zealand<br>New Zealand<br>Government<br>Ministry for<br>the Environment,<br>Measuring<br>emissions: A guide<br>for organisationsc<br>2024<br>Sector-level financial ratios<br>AU Ratios of company<br>revenue to company<br>value for Australian<br>industry sectors<br>Financial market<br>data providers’<br>data for Australian<br>and New Zealand<br>top companies<br>2024 (up to Dec)<br>Region Data input Source Publication date<br>For certain subsets<br>of customers<br>in Agriculture:<br>ABARES Farm Data<br>Portal data<br>2023<br>NZ Ratios of company<br>revenue to company<br>value for Aotearoa New<br>Zealand industries<br>Stats New<br>Zealand, Annual<br>Enterprise Survey<br>2023<br>NZ National average ratio<br>of company revenue<br>to company value for<br>Aotearoa New Zealand<br>Stats New Zealand,<br>Business<br>performance<br>benchmarker<br>2022<br>a. Uses the GWPs published in the IPCC Fifth Assessment Report (AR5).<br>However, regional inventories may be based on those from other<br>assessment reports.<br>b. Uses the GWPs published in the IPCC Fourth Assessment<br>Report (AR4).<br>c. Uses the GWPs published in the IPCC Fifth Assessment Report (AR5).<br>NOTABLE EXCLUSIONS<br> • Non-mortgage personal lending (e.g., personal loans and<br>credit cards);<br> • Lending to governments and government-owned<br>entities1<br>; and<br> • Exposures in-scope of our Commercial Real Estate asset<br>class (to avoid double counting).<br>1 Including where these are categorised in the “Government, administration, and defence” sector. As defined by ANZSIC codes under ANZSIC subdivisions 81 (Government Administration) and 82 (Defence). For WNZL portfolio, we exclude specific<br>Crown entities in NZ outside of these ANZSIC codes where they have an ANZSIC associated with the industry they participate in.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>94<br>Commercial real estate<br>This sector includes lending to business, commercial and<br>institutional customers in the Property sector1<br> secured by<br>residential and/or commercial real estate.<br>We estimate the scope 1 and 2 emissions associated with<br>the properties held as security and aggregate these for the<br>portfolio2<br>. Estimation is challenging as property-level<br>emissions and energy data, particularly for smaller<br>properties is not readily available. Where we have data<br>limitations the business lending methodology is applied.<br>We attribute a portion of estimated emissions for each<br>property based on attribution factors. The attribution factor<br>is the ratio(s) of our customers lending secured by the<br>property over the property value.<br>We measure property value using a hierarchy of three<br>options reflecting the best available data:<br>1. Value recorded at a credit assessment event3<br> (e.g., when<br>the loan was opened, increased, renewed, refinanced, or<br>extended), noting that this may not necessarily be the<br>latest credit assessment event;<br>2. The value at a recent sale reported by a property market<br>data provider; or<br>3. The estimated value based on LVR data.<br>Customer emissions are calculated as the sum of the<br>product of actual or estimated emissions for each property<br>and the relevant attribution factor.<br>Emissions are estimated in accordance with methodologies<br>in the following preference order, based on the quality and<br>availability of underlying data:<br>TABLE 50: METHODOLOGIES AND ASSOCIATED SCORES<br>Estimation methodology Data Quality<br>(DQ) score<br>Based on actual building energy consumption (i.e.,<br>metered data) and supplier-specific emissions factors (DQ<br>Score 1) or average emissions factors (DQ Score 2) specific<br>to the energy source.<br>This approach was not applied to any properties due<br>to data.<br>1 and 2<br>Based on estimated building energy consumption per unit<br>of floor area (from official energy labels) and average<br>emission factors specific to energy source.<br>This approach was applied to properties where data on<br>property floor area and NABERS rating was available.<br>3<br>Estimation methodology Data Quality<br>(DQ) score<br>Emissions were estimated by multiplying the property<br>floor area by the average emissions per unit of floor area<br>derived for the property type, region and rating based<br>on the NABERS rating register (average emissions for<br>Retail properties are applied to Industrial properties due<br>to data limitations).<br>Based on estimated building energy consumption per<br>unit of floor area (based on building type and location-based data) and average emission factors for each<br>energy source.<br>This approach was applied to properties recorded as<br>security where data on property floor area and location<br>information were available.<br>Emissions were estimated by multiplying the property<br>floor area by the relevant energy consumption<br>benchmarks and relevant emissions factors.<br>4<br>Based on estimated building energy consumption<br>per building (based on building type and location-5<br>1 Limited to customers within ANZSIC (1993) codes that start with 771- (i.e., within the Property sector).<br>2 For WNZL portfolio, we calculate financed emissions by grouping properties with similar building and geographic characteristics and aggregating the product of the estimated emissions for each group of properties and the attribution factor for<br>each group.<br>3 We deviate from the PCAF Standard in that we do not use property value at origination, as we consider the valuation at the most recent credit assessment event to be more representative.<br>FIGURE 23: OVERVIEW OF FINANCED EMISSIONS ESTIMATION METHODOLOGY FOR COMMERCIAL REAL<br>ESTATE LENDING<br>Estimated financed<br>emissions for each<br>loan secured by<br>property<br>GHG emissions of<br>property<br>(or estimated<br>emissions based<br>on property<br>characteristics and<br>location)<br>Total lending<br>Property value<br>= x<br>(attribution factor) WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>3. METHODOLOGY – SCOPE 3 FINANCED EMISSIONS<br>95<br>Estimation methodology Data Quality<br>(DQ) score<br>specific data) and average emission factors for each<br>energy source.<br>This approach was applied to most properties in our<br>Australian and New Zealand portfolios where only the<br>loan amount and property value were available.<br>Emissions were estimated by multiplying the estimated<br>property floor area (i.e., property value divided by the<br>relevant market value per square metre) by the relevant<br>energy consumption benchmarks and emissions factors<br>for the location.<br>DATA INPUTS AND SOURCES<br>TABLE 51: DATA INPUTS AND THEIR CHARACTERISTICS<br>Region Data input Source Publication date<br>Energy consumption benchmarks – residential<br>AU Per-dwelling electricity<br>and natural<br>gas consumption<br>benchmarks by<br>State and Territory,<br>climate zone, and<br>household size<br>Australian Energy<br>Regulator (AER)<br>2021 (Jun)<br>NZ Per-dwelling electricity<br>consumption across the<br>islands and regions<br>New Zealand<br>Electricity Authority<br> – Residential<br>Consumption<br>Trends<br>2023 (Oct) to<br>2024 (Sep)<br>NZ Heating and cooling<br>emissions by region<br>Stats New Zealand<br> – Residential<br>Emissions by<br>Region – Heating<br> & Cooling<br>2024<br>Energy consumption benchmarks – commercial<br>AU Australian buildings’<br>emissions profiles and<br>net lettable area (NLA)<br>NABERS<br>ratings register<br>2025 (Apr)<br>NZ Benchmark per-building<br>energy demand figures<br>BEES Part 1:<br>Final Report BRANZ<br>Study Report<br>SR 297/1<br>2014<br>Property floor area and value benchmarks – residential<br>Region Data input Source Publication date<br>AU Derived mean price<br>per square metre for<br>Australian properties<br>Combination of:<br>ABS data – Total<br>Value of Dwellings<br>(mean price of<br>residential<br>dwellings)<br>2023 (Dec) to<br>2024 (Sep)<br>quarterly<br>average<br>ABS – Building<br>Activity (average<br>floor area of<br>new properties)<br>2024 (Dec)<br>NZ Derived mean price<br>per square metre<br>measure for New<br>Zealand properties<br>Property market<br>data provider<br>2025<br>NZ Average floor area of<br>residential dwellings<br>broken down by regions<br>Property market<br>data provider<br>2025<br>Property floor area and value benchmarks – commercial<br>AU Derived mean price per<br>square metre across a<br>range of regions and/or<br>property types and/or<br>specific properties<br>Combination of data<br>points sourced from<br>property market<br>data providers:<br> • average yield<br>and average<br>gross face rents<br>data sourced<br>from national<br>property market<br>research<br>snapshots for<br>retail, industrial,<br>and office<br>sectors<br> • national sales<br>history records<br>for commercial<br>property sector<br>2024 (Q4)<br>(covering at<br>least prior one<br>year of data)<br>NZ Derived mean price per<br>square metre across a<br>range of regions<br>Property market<br>data provider<br>2025<br>Household and population statistics<br>AU Household statistics,<br>including State-level<br>data average occupants<br>per household and<br>Australian Bureau<br>of Statistics (ABS)<br>census reports<br>2021<br>Region Data input Source Publication date<br>average bedrooms<br>per dwelling<br>Emissions factors<br>AU Emissions factors for<br>electricity consumption<br>at the State level<br>and the combustion of<br>natural gas and LPG<br>Australian National<br>Greenhouse<br>Accounts Factorsa<br>2024 (Aug)b<br>NZ Emissions factors for<br>electricity consumption<br>at the national level,<br>and the combustion of<br>natural gas, LPG, wood,<br>and coal<br>New Zealand<br>Government<br>Ministry for<br>the Environment,<br>Measuring<br>emissions: A guide<br>for organisationsa<br>2024<br>a. Uses the GWPs published in the IPCC Fifth Assessment Report (AR5).<br>b. As described in the Australian National Greenhouse Accounts<br>Factors 2024: data used for the estimation of the factors within this<br>document are the latest available at the time of estimation – which<br>includes NGER reporting data for the 2022-23 cycle.<br>NOTABLE EXCLUSIONS<br>The following commercial property types were out of scope<br>for the estimation:<br> • freehold hotels and motels;<br> • development lands (residential, industrial, office,<br>and retail);<br> • certain rural farm properties;<br> • land investment subject to ground leases; and,<br> • guarantees.<br>Exposures that are marked as financing for Development<br>or Site Finance, marked as program-managed, as well<br>as unsecured exposures, are also excluded from this<br>approach. We may instead estimate financed emissions<br>using the approach for general business, commercial, and<br>institutional lending.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 96<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>Sector targets – overview of sector target boundaries<br>The below table provides an overview of the boundaries of our sector targets, including the ANZSIC codes (where applicable) for identifying the initial set of customers in scope, and the additional<br>inclusions and exclusions to the boundary.<br>SCOPE OF EMISSIONS AND GREENHOUSE GASES COVERED BY THE SECTOR TARGETS<br>Unless otherwise indicated below, our sector targets and progress metrics are calculated and reported on a CO2-e basis and include scope 1, 2, and 3. Our targets are based on the greenhouse gases<br>that are most relevant to the sector, therefore we include those that are reported by in-scope customers.<br> • The Power Generation, Cement Production, Aluminium, and Steel Production sector targets include scope 1 and 2 only;<br> • For the Thermal Coal sector target, the most relevant greenhouse gases associated with thermal coal combustion are carbon dioxide, methane and nitrous oxide;<br> • The Aviation (passenger aircraft operators) target includes scope 1 only. Given current immateriality we have excluded scope 2 emissions (typically <1% of scope 1 and 2 emissions) in the target<br>coverage. This aligns with the IEA NZE 2050 pathway which covers scope 1 emissions only;<br> • The Commercial Real Estate (Offices) target includes scope 1 and 2, for base building operational emissions. Where customer reported emission data is used, we have given preference to<br>market-based emissions data (i.e., including the use of power purchase agreements or Greenpower) over location-based emissions data.<br> • The Residential Real Estate (Australia) target includes scope 1 (excluding fugitive and LPG emissions) and 2 emissions only;<br> • The Agriculture (Australia Beef and Sheep, and Australia Dairy) targets include scope 1 land management emissions which include biogenic methane from ruminant livestock, emissions from<br>nutrient management, manure management, and fertiliser use; and<br> • The Agriculture (New Zealand Beef and Sheep) target includes scope 1 emissions only for Methane, Nitrous Oxide, Carbon Dioxide. The Agriculture (New Zealand Dairy) target includes scope 1<br>emissions only which include enteric methane from ruminant livestock and manure management and also nitrous oxide from the application of fertilisers and livestock excreta.<br>TABLE 52: SECTOR TARGET BOUNDARIES AND ADDITIONAL INCLUSIONS AND EXCLUSIONS<br>Sector target ANZSIC<br>codes to<br>identify<br>initial<br>customer set<br>Geography of<br>exposures<br>Part of Westpac to which the<br>target applies<br>Additional inclusions Additional exclusions<br>Glo-bal<br>AU<br>only<br>NZ<br>only<br>Retail Busi-ness<br>Insti-tutional<br>Pacific<br>Banking<br>Power<br>generation<br>3610 Y – – N Y Y N Customers that generate electricity from various sources,<br>including coal, natural gas, hydropower, wind and solar. These<br>customers may operate globally, and electricity generation must<br>contribute to at least 10% of their revenue (a lower threshold of<br>5% applies to coal-fired electricity generation).<br>Customers involved with electricity transmission,<br>distribution and batteries.<br>Cement<br>production<br>N/A Y – – N Y Y N Customers in scope are determined by identifying cement<br>manufacturing customers with an overlay to only include<br>customers that produce both clinker and cement in-house.<br>Upstream emissions from the production of purchased<br>clinker, transportation, and delivery of materials to<br>the production facility. Downstream emissions from<br>the distribution and use of cement in other building<br>materials (e.g., concrete).<br>Upstream Oil<br>and Gas<br>1200; 1511;<br>1512; 2510<br>Y – – N Y Y N Companies involved with exploration, extraction and drilling, all<br>activities of integrated oil and gas companies (IOCs), tolling<br>(contract manufacturing) and stand-alone refineries and LNG<br>Companies involved with downstream retail and<br>distribution; pipeline infrastructure; storage and<br>transport; and trading entities.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>97<br>Sector target ANZSIC<br>codes to<br>identify<br>initial<br>customer set<br>Geography of<br>exposures<br>Part of Westpac to which the<br>target applies<br>Additional inclusions Additional exclusions<br>Glo-bal<br>AU<br>only<br>NZ<br>only<br>Retail Busi-ness<br>Insti-tutional<br>Pacific<br>Banking<br>producers. This includes customers who are diversified, and their<br>operations include the above.<br>Thermal coal<br>mining<br>1101; 1102;<br>1103<br>Y – – N Y Y N Thermal coal mining. Metallurgical coal mine/ers that produce a thermal<br>coal byproduct and diversified mine/ers that produce a<br>thermal coal product where their dominant activity is not<br>thermal coal.<br>Aviation<br>(passenger<br>aircraft<br>operators)<br>6401; 6402;<br>6403; 7742<br>Y – – N Y Y N Customers that operate scheduled passenger air transport.<br>We include emissions from freight operations undertaken by<br>passenger airline operators as the movement of freight and the<br>movement of passengers are often undertaken at the same time.<br>Aircraft lessors and freight only operators; the latter due<br>to their immateriality to the sector globally. We have<br>excluded aircraft lessors given Westpac’s capacity to<br>influence the sector’s transition is more limited.<br>Steel<br>Production<br>2741 Y – – N Y Y N Customers involved in the production of crude steel. Customers involved in downstream manufacturing,<br>processing of end products and fabrication of products<br>from steel.<br>Aluminium 2721; 2722 Y – – N Y Y N This target covers only: alumina refining; aluminium smelting.<br>95% of primary aluminium production emissions lie within scope<br>1 and scope 2 of the refining and smelting processes. We include<br>these processes in our boundary definition.<br>The extraction of bauxite ore in open-cut mining<br>except where reported as part of vertically integrated<br>operations. We exclude end-product manufacture. We<br>exclude secondary production, as it does not reflect<br>our customers’ activities, and due to data limitations.<br>Rehabilitation bonds are excluded.<br>Commercial<br>Real Estate<br>(Offices)<br>771- (ANZSIC<br>1993) or 671-<br>(ANZSIC<br>2006)<br>N Y Y N Y Y N Our target applies to in-scope office facilities for commercial real<br>estate customers in Australia and New Zealand, where the TCE<br>is greater than or equal to $5 million for Australian facilities, or<br>NZ$5 million for New Zealand facilities.<br>Exposures associated with site finance and construction<br>of offices.<br>Residential<br>Real Estate<br>(Australia)<br>N/A N Y N Y Y N N Australian Mortgages, including owner occupier and<br>investment loans.<br>Mortgages on vacant land; Equity access loans (a line of<br>credit using a mortgage as security); Construction loans.<br>Scope 3 emissions are excluded.<br>Agriculture<br>(Australia<br>Beef and<br>Sheep)<br>0122; 0123;<br>0124; 0125;<br>0126<br>N Y N N Y Y N Commercial relationship-managed and institutional agriculture<br>customers with TCE ≥$1.5 million. Includes those whose banking<br>needs are looked after by designated Relationship Managers.<br>Inclusion of sheep: It was deemed appropriate to include<br>sheep farming in our target despite SBTi FLAG not having a<br>sheep-specific pathway. Sheep farming contributes materially<br>to Australia’s agricultural emissions at approximately 19%. Our<br>assessment indicates the emissions profiles between cattle<br>and sheep are similar. Livestock enteric (methane) emissions<br>reduction opportunities do not distinguish between sheep<br>and beef.<br>Scope 1 emissions relating to fuel use, land-use change<br>and removals due to data limitations. Scope 2 and 3<br>emissions are not included in the reference scenario<br>selected for target setting and are therefore excluded<br>from our targets.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>98<br>Sector target ANZSIC<br>codes to<br>identify<br>initial<br>customer set<br>Geography of<br>exposures<br>Part of Westpac to which the<br>target applies<br>Additional inclusions Additional exclusions<br>Glo-bal<br>AU<br>only<br>NZ<br>only<br>Retail Busi-ness<br>Insti-tutional<br>Pacific<br>Banking<br>Agriculture<br>(Australia<br>Dairy)<br>0130 N Y N N Y Y N Commercial relationship-managed and institutional agriculture<br>customers with TCE ≥$1.5 million. Includes those whose banking<br>needs are looked after by designated Relationship Managers.<br>Scope 1 emissions relating to fuel use, land-use change<br>and removals due to data limitations. Scope 2 and 3<br>emissions are not included in the reference scenario for<br>target setting and are excluded from our targets.<br>Agriculture<br>(New Zealand<br>Beef and<br>Sheep)<br>0141; 0142;<br>0143; 0144<br>(ANZSIC<br>2006)<br>N N Y N Y N N This target applies to Westpac New Zealand – Agribusiness. Customers with < NZ$1 million TCE are excluded.<br>Agriculture<br>(New Zealand<br>Dairy)<br>0160 (ANZSIC<br>2006)<br>N N Y N Y N N This target applies to Westpac New Zealand – Agribusiness. Customers with < NZ$1 million TCE are excluded.<br>Sector targets – overview of dependencies and risks<br>TABLE 53: DEPENDENCIES AND RISKS ASSOCIATED WITH OUR SECTOR TARGETS<br>Sector target Dependencies/risks<br>Power generation • Delays in approvals for construction of greenfield renewable energy projects may impact the ability to support the decarbonisation of Australia’s electricity grid;<br> • Continued government support will be required to ensure the infrastructure and policy levers are in place to de-risk renewable energy, transmission and distribution projects; and<br> • We will consider the intersecting requirements of emissions reduction, the feasibility of emerging technologies, as well as energy affordability, security and reliability.<br>Cement<br>production<br> • The cement industry is reliant on a reduction in the emissions intensity of electricity purchased and the roll-out of renewable energy;<br> • Reduction in the ratio of clinker used relies on the availability and cost of substitute cementitious materials. Further reduction in clinker use will rely on changes to building standards and/or new<br>technologies; and<br> • Some reliance is expected to come from carbon capture and storage technologies which are yet to be proven at scale.<br>Upstream Oil<br>and Gas<br> • The rate of decarbonisation of the sector could be affected by government policy, availability of new technologies, economic feasibility, or other factors such as energy security, energy affordability<br>and the energy transition.<br>Thermal<br>coal mining<br> • We will not provide any project finance to new (greenfield), expansions or extensions of thermal coal mines; and<br> • From 30 September 2025 we have zero corporate lending and will no longer provide bond facilitation for institutional customers with ≥15% of their three-year rolling average revenue coming directly<br>from thermal coal mining.<br>Aviation<br>(passenger<br>aircraft<br>operators)<br> • The IEA notes that rapid development and deployment of SAF using policy mechanisms such as low carbon fuel standards, biofuel mandates, and CO2<br> removal credits (offsets) will be required to<br>achieve SAF usage at 15% of total fuel consumption by 2030. The ability of the global aviation sector to achieve the emission reductions required under the IEA NZE 2050 scenario and the ability of<br>our customers to meet their published decarbonisation commitments is highly dependent on the availability and cost of SAF; and<br> • We currently do not have specific data on customer use of offsets, but use of offsets is common in this sector and some customers have indicated that offsets will be used to meet interim targets.<br>Under the IEA NZE 2050 scenario carbon dioxide removal technologies to offset residual emissions are likely to be required to achieve net-zero by 2050.<br>Steel Production • A MPP Technology Moratorium scenario assumption is that investments of near-zero technologies occur after 2030;<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>99<br>Sector target Dependencies/risks<br> • Electrical grid not decarbonising at pace;<br> • Particularly in the steel sector, there are inconsistencies between producers related to emissions boundaries. Progress is being made to establish a more consistent boundary between<br>producers; and<br>It is possible this boundary re-scoping may impact how pathways are calculated and/or the emissions of customers.<br>Aluminium • Decarbonisation before 2030 may be constrained by:<br> – Availability of technology to decarbonise emissions from alumina refining and aluminium smelting emissions (Scope 1);<br> – Electrical grid capacity to electrify alumina refining processes;<br> – Electrical grid not decarbonising at pace;<br> – A sufficient supply of firmed lower carbon energy source; and<br> – Contracted electricity supply from higher emissions sources.<br>Commercial Real<br>Estate (Offices)<br> • A significant part of the reduction is expected through grid decarbonisation, with additional contributions from on-site renewable energy and energy efficiency. We expect additional reductions from<br>providing finance for customers as they develop and implement their transition plans.<br>Residential Real<br>Estate (Australia)<br> • The target is heavily dependent on decarbonisation of the electricity grid. Achievement of the target is unlikely if the grid does not decarbonise as quickly as expected.<br>Agriculture –<br>Australia Beef<br>and Sheep<br>The following government-led initiatives relating to the agriculture and land sector may impact our modelling and target-setting in the future:<br> • ABS Agricultural Statistics Program modernisation: Following a joint ABS-ABARES review, a number of initiatives are underway which may change the source statistics used in modelling, with a<br>knock-on impact on methodology;<br> • Climate Change Authority Sector Pathways Review: This review is looking at technology transition and emissions pathways to support Australia’s transition to net-zero by 2050. This review may<br>result in the publication of emission factors for the agriculture sector which may be more appropriate for our modelling than our current data;<br> • Agriculture and Land Sectoral Plan: Net-zero plan released by the Australian Government, which outlines how transitioning to a net-zero economy can be achieved. The plan details how agriculture<br>will contribute to reaching the national goal, and looks to identify risks associated with climate change and opportunities for the industry;<br> • Ag2050 Scenarios Report: Modelling by CSIRO to explore plausible alternative futures for Australian agriculture, to motivate discussions and encourage collaboration across the industry with a view<br>to driving long-term transformative system change;<br> • Emissions and reporting standards: Development of emissions and reporting standards by the Australian Government, influencing future development of GHG calculators and tools, as we continue<br>to assess how to incorporate customer dataa; and<br> • Improving Consistency of On-farm Emissions Estimates Program: Funded by 2024-25 Budget to assist the agriculture sector to reduce emissions and further contribute to the whole-of-economy<br>transition to net-zero.b<br>We will continue to monitor these initiatives and update our assumptions and methodologies as required.<br>Agriculture –<br>Australia Dairy<br>Agriculture – New<br>Zealand Beef<br>and Sheep<br> • Our customers' ability to adopt efficiency and productivity improvements in farming systems; and<br> • Seasonal variations which may affect farm practices, meaning the path to our target is unlikely to be linear.<br>Agriculture – New<br>Zealand Dairy<br>a. Voluntary emissions estimation and reporting standards – Agriculture and Land - DCCEEW<br>b. Improving Consistency of On-farm Emissions Estimates Program - DAFF<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>100<br>Sector targets – methodologies and additional information<br>Power generation<br>2030 Target: 0.10 tCO2-e/MWh for Scope 1 and 2 by 2030 a<br>62% reduction from a 2021 baseline.<br>Metric: Sector-specific emissions intensity for client’s scope<br>1 and 2 emissions – tCO2-e (tonnes of carbon dioxide<br>equivalent) per Megawatt hour (MWh).<br>SECTORAL DECARBONISATION APPROACH:<br>This target was set using the CSIRO/ClimateWorks<br>Australia Hydrogen Superpower Scenario (2021) from the<br>multi- sector energy modelling report published in July 2021.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>CSIRO/ClimateWorks Australia Hydrogen Superpower<br>Scenario (2021) derived from the multi-sector energy<br>modelling report published in July 2021.<br>The CSIRO/ClimateWorks Australia Hydrogen Superpower<br>scenario was chosen as the emissions attributable to<br>our power generation portfolio are heavily weighted to<br>Australian customers.<br>The scenario determines the most efficient manner to<br>achieve the economy-wide decarbonisation required to meet<br>a 1.5°C carbon budget. This means the scenario must<br>focus on both power generation and the sector’s role in<br>supporting decarbonisation of the wider economy.<br>Key assumptions of the CSIRO/ClimateWorks Australia<br>Hydrogen Superpower reference scenario include:<br> • There will be a high uptake of electrification and energy<br>efficiency improvements to 2030, with a rapid increase in<br>the capacity of renewable energy technologies;<br> • Coal power capacity is expected to be reduced<br>significantly by 2030 and phased out from the energy<br>system by 2035;<br> • Low-cost and abundant renewable energy strengthens<br>Australia’s green hydrogen production from 2030,<br>enabling export opportunities; and<br> • Accelerated growth in renewable energy capacity will<br>be required to enable transition of energy sources away<br>from fossil fuels.<br>METHODOLOGY:<br>To estimate the emissions intensity associated with this<br>sector, we use customer level data at 30 September 2024.<br>TCE data is at 30 September 2024. Emissions intensity data<br>is cumulative, reflecting a 12-month period.<br>To estimate customer Power generation intensity, we use a<br>weighted average emissions intensity for power generation<br>customers, weighted using the TCE for each customer. The<br>emissions intensity for each customer is the scope 1 and<br>2 emissions (tCO2-e) of its electricity generation, divided by<br>electricity generated (MWh).<br>For Australian customers, we use data reported under<br>the NGER scheme, excluding batteries (sourced from<br>Clean Energy Regulator website using the Greenhouse<br>and energy information by designated generation facility<br>2022-23 dataset). An average emissions intensity is applied<br>to wind and solar generation projects where data is not yet<br>available under NGER or the NGER- calculated intensity for<br>the project is more than twice the industry average. The<br>average emissions intensity applied is the average of all<br>generation facilities for which ‘Primary fuel’ under NGER is<br>wind or solar respectively. This typically occurs for projects<br>in construction for all or part of the reporting period.<br>For international and Westpac New Zealand customers,<br>data is sourced from customer reporting, where available.<br>If this information is not available, the relevant Australian<br>average emissions intensity is applied to wind and solar<br>generation projects as above.<br>Cement production<br>2030 Target: 0.57 tCO2-e/tonne of cement by 2030.<br>Metric: Sector-specific emissions intensity for companies’<br>scope 1 and 2 emissions – tCO2-e per tonne of cement<br>produced from in-house produced clinker.<br>SECTORAL DECARBONISATION APPROACH:<br>This target was set using the Science-based Targets<br>Initiatives (SBTi) Cement Target Setting Guidance – Sectoral<br>Decarbonisation Approach (SDA), 2022.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>The SBTi reference pathway was chosen as it provides<br>regional granularity which is aligned to the geographic<br>location of customers we lend to in this sector.<br>The SBTi recommends a Sectoral Decarbonisation Approach<br>(SDA) for setting targets in this sector. The target is<br>calculated using a 2050 convergence approach; after<br>establishing a base year, the physical intensity pathway<br>converges with the sector average intensity by 2050.<br>Using the SBTi calculator and the most recent industry<br>baseline intensity, 0.77 tCO2-e/tonne cement (Cement<br>Industry Federation, Australian Cement Report, August<br>2020, emissions intensity from on-site clinker in 2018-19.)<br>the pathway reaches a 2030 emissions intensity of 0.57<br>tCO2-e/tonne cement.<br>Key assumptions of the SBTi reference scenario include:<br> • To 2030, emissions reductions are within conventional<br>technologies. The key decarbonisation levers are<br>substitution of clinker for alternative lower emissions<br>materials, energy efficiency gains and fuel switching;<br> • Emissions reduction in the built environment will<br>be achieved through building material efficiency<br>improvements, e.g., through recycling concrete or<br>designing buildings to require less concrete. This in turn<br>restricts growth in cement demand;<br> • The IEA NZE assumes that by 2030, 9% of global cement<br>production is equipped with innovative technologies,<br>such as carbon capture usage and storage; and<br> • It is assumed that the general trend in electricity<br>consumption for cement manufacturing is in line with<br>electricity consumption for all heavy industries. However,<br>the scope 2 emissions global pathway for cement is<br>adjusted to reflect comparatively slower growth of<br>cement demand.<br>METHODOLOGY:<br>To calculate the emissions intensity of customers, we use<br>customer level data where it is publicly available or able<br>to be estimated from other sources. We used the latest<br>available data for customers at 30 September 2024. TCE<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>101<br>data is at 30 September. As customers’ reporting cycles<br>often differ from Westpac’s, the bank selects the 12-month<br>period ending prior to 30 September to align this data most<br>closely with Westpac’s reporting periods.<br>Our cement portfolio physical emissions intensity is<br>estimated as the weighted average physical emissions<br>intensity of customers. Customer physical intensity is<br>weighted by the relative contribution of each in-scope<br>customer’s absolute financed emissions to our absolute<br>financed emissions for the sector.<br>Absolute financed emissions for in-scope customers is<br>calculated by using a customer’s absolute emissions<br>from cement production and then attributing Westpac’s<br>share using customer in-scope lending proportionate to<br>customer EVIC.<br>Upstream oil and gas<br>2030 Target: 23% reduction in scope 1, 2 and 3 absolute<br>financed emissions by 2030 from a 2021 baseline. 9.2 MtCO2-<br>e in 2021 to 7.1 MtCO2-e in 2030.<br>Metric: Absolute financed emissions for client’s scope 1, 2<br>and 3 emissions – MtCO2-e.<br>SECTORAL DECARBONISATION APPROACH:<br>This target was set using IEA NZE 2050 scenario<br>(2021) complemented with CSIRO/ClimateWorks Australia,<br>Hydrogen Superpower scenario (2021).<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>The IEA NZE 2050 (2021) scenario and CSIRO/ClimateWorks<br>Australia, Hydrogen Superpower scenario were selected as<br>a combined reference pathway. This combination accurately<br>reflects our customers and lending profile in this sector.<br>Assumptions behind the pathway:<br> • The decarbonisation trajectory of oil demand in the IEA<br>NZE means no exploration for new resources is required,<br>other than fields already committed at 18 May 2021;<br> • No new natural gas fields are needed in the IEA NZE<br>beyond those already committed as at 18 May 2021;<br> • Once fields under development commence production,<br>all upstream investment in the IEA NZE is to support<br>operations in existing fields; and<br> • Innovation is key to developing new clean energy<br>technologies and advancing existing ones. Almost 50%<br>of the emission reductions needed in 2050 in the<br>IEA NZE depend on technologies at the prototype<br>or demonstration stage, i.e., are not yet available on<br>the market.<br>In the CSIRO/ClimateWorks Australia Hydrogen Superpower<br>scenario, a weaker push to electrify heavy industry leads to<br>higher demand for natural gas into the 2030s, at which point<br>a large amount of gas use begins to switch to hydrogen.<br>METHODOLOGY:<br>To estimate the financed emissions associated with the<br>sector target, we use customer level data where it<br>is publicly available. We used data for customers at<br>30 September 2024. TCE data is at 30 September 2024 and<br>emissions data is cumulative, reflecting a 12-month period<br>ending prior to 30 September 2024.<br>To estimate customer emissions, we source customer scope<br>1, 2 and 3 emissions directly from customers or via publicly<br>reported information.<br>Where customer-level data is not available, production<br>data is sourced from public disclosures and an emissions<br>intensity factor (based on production) is then used to<br>estimate customer emissions.<br>Where production data is not available, we estimated<br>customer scope 1 and 2 emissions by applying sector-level emissions intensity factors to customer financial<br>information. Sector- level emissions intensity factors were<br>derived from a combination of Australian Government<br>Department of Agriculture, Water and the Environment<br> – National Greenhouse Accounts – National inventory by<br>economic sector for 2021 and ABS – National inventory by<br>economic sector for 2021.<br>Where production data is not available, we estimated<br>the scope 3 emissions by applying sector level scope 3<br>emissions intensity factors that were derived from known<br>revenue figures and reported emissions totals of customers<br>in these sectors. Sector financial ratios for Australian<br>industry sectors were based on information from financial<br>market data providers’ data for Australian and New Zealand<br>top companies.<br>To attribute our share of customers’ emissions, we use a<br>customer’s emissions and then attributing Westpac’s share<br>using customer TCE proportional to customer EVIC.<br>Thermal coal mining<br>2030 Target: Zero financed emissions by 2030, a 100%<br>reduction from a 2021 baseline<br>Metric: Absolute financed emissions for client’s scope 1,<br>2 and 3 emissions – MtCO2-e (million tonnes of carbon<br>dioxide equivalent).<br>SECTORAL DECARBONISATION APPROACH:<br>This target was set using IEA NZA 2050 Scenario (2021).<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>IEA NZE 2050 scenario (2021)<br> • We selected an absolute financed emissions target.<br>Thermal coal use in power generation is expected to be<br>replaced by other energy sources and so an intensity<br>target is not suitable.<br> • The IEA NZE reference scenario results in a 70%<br>reduction to 2030 on a FY20 baseline. Our target is<br>below this pathway, with a 100% reduction (a reduction<br>to zero).<br>METHODOLOGY:<br>To calculate the financed emissions associated with the<br>sector target, we use customer level data where it is<br>publicly available. We used data for the customers at<br>30 September 2024. TCE data is at 30 September 2024 and<br>emissions data is cumulative, reflecting a 12-month period<br>ending prior to 30 September 2024. Production data and<br>emissions data for customers will be the most recent public<br>data available as at 30 September 2024.<br>Absolute financed emissions by customer are estimated by<br>using a customer’s Scope 1, 2 and 3 emissions from thermal<br>coal mining and then attributing Westpac’s share using<br>customer TCE proportionate to customer EVIC.<br>Scope 1, 2 and 3 emissions data is sourced from<br>customer reporting, or if not available production data is<br>sourced from public disclosures and an emissions intensity<br>factor (based on production, sourced from the National<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>102<br>Greenhouse Account Factors) is then used to estimate<br>customer emissions.<br>Where customer production data is not available, we<br>estimate customer emissions by applying sector-level<br>emissions intensity factors to production estimates which<br>are sourced from a third-party data provider.<br>Aviation (passenger<br>aircraft operators)<br>2030 Target: 76.4 gCO2-e/passenger kilometre for Scope 1<br>by 2030. A 60% reduction from a 2021 baseline.<br>Metric: Sector-specific emissions intensity for customer’s<br>scope 1 emissions – gCO2-e (grams of carbon dioxide<br>equivalent) per passenger kilometre.<br>SECTORAL DECARBONISATION APPROACH:<br>The target was set using the IEA NZE 2050 scenario, 2021.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>The scenario projects emissions1<br> and activity2<br> data for global<br>aviation to model a decarbonisation pathway. We have<br>selected the IEA NZE 2050 modelled emissions intensity<br>as our target, which was calculated as sector emissions<br>divided by sector activity and appropriately represents the<br>customers in our portfolio.<br>Key assumptions of the IEA NZE 2050 reference<br>scenario include:<br> • The use of sustainable aviation fuels (SAF) increases<br>to around 15% of total fuel consumption by 2030. The<br>rapid development and deployment of SAF required in<br>this scenario requires policy changes such as low carbon<br>fuel standards, biofuel mandates, and CO2<br> removal<br>credits (offsets);<br> • Implementation of operational improvements, coupled<br>with fuel efficiency technologies for both airframes and<br>engines, are expected to limit the growth of aviation<br>fuel demand;<br> • While air travel is assumed to grow at around 3%<br>per annum through to 2050, growth is expected to be<br>constrained by implementation of government policies.<br>Globally, the policies are expected to promote a shift<br>towards high-speed rail from regional flights (may be<br>less common in SE Asia and Oceania), and a reduction<br>in long-haul business travel using, for example, taxes on<br>commercial passenger flights;<br> • Overall, global CO2<br> emissions from aviation are expected<br>to peak at around 950 Mt by 2025 before beginning to<br>reduce through the above measures;<br> • In 2050, emissions from the aviation sector are expected<br>to account for just over 10% of unabated CO2<br> emissions<br>from fossil fuels and industrial processes; and<br> • To achieve net-zero in the sector the use of offsets may<br>be required.<br>METHODOLOGY:<br>To calculate the emissions intensity of our customers, we<br>use customer level data. We used the latest available<br>data for the customers at 30 September 2024. TCE data<br>is at 30 September. As customers’ reporting cycles often<br>differ from Westpac’s, the bank selects the 12-month period<br>ending prior to 30 September to align this data most closely<br>with Westpac’s reporting periods.<br>Our aviation physical emissions intensity portfolio metric is<br>estimated by dividing total portfolio attributable emissions<br>by the total portfolio attributable activity (passenger<br>kilometres). Attributable emissions and attributable activity<br>(passenger kilometres) are determined by scaling emissions<br>and activity by an attribution factor which is equal to TCE as<br>a proportion of EVIC.<br>We use absolute scope 1 emissions and passenger-kilometres (activity) as reported by companies.<br>Where customer-specific emissions or activity data from<br>customer reporting is not available, we estimate by applying<br>portfolio average weighted by the proportion of exposure to<br>the specific customer.<br>Steel production<br>2030 Target: 1.42 tCO2-e/tonne of steel for Scope 1 and 2<br>by 2030.<br>Metric: Sector-specific emissions intensity for customers’<br>scope 1 and 2 emissions – tCO2-e (tonnes of carbon dioxide<br>equivalent) per tonne of crude steel produced per annum.<br>SECTORAL DECARBONISATION APPROACH:<br>This target was set using Mission Possible Partnership<br>(MPP), Technology Moratorium scenario, 2021.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>This scenario was selected as it has sufficient granularity<br>around primary (includes integrated steelmaking) and<br>secondary (includes electric steelmaking) processes, which<br>we consider to be a critical building block for a credible<br>steel pathway, despite being aligned to a ‘well below 2°C’<br>temperature ambition. This pathway is recognised within<br>the sector and is used by a number of international banks.<br>GFANZ guidance acknowledges the MPP pathway on steel<br>provides detailed information on assumptions around steel<br>production by different technologies over time.<br>Key assumptions of the scenario include:<br> • Investments confined to (near-) zero-emissions<br>technologies from 2030 onwards; and<br> • Scope 1 and 2 steel emissions and scope 3 metallurgical<br>coal emissions are assumed to decline at the same rate.<br>METHODOLOGY:<br>To calculate the emissions intensity associated with<br>the sector target, we use customer level data, when<br>publicly available. We used data for the customers as<br>at 30 September 2024. TCE data is a point in time as<br>at 30 September 2024 and emissions data is cumulative,<br>reflecting a 12-month period ending prior to 30 September<br>2024. Production data and emissions data for customers<br>will be the most recent public data available as at<br>30 September 2024.<br>Our steel emissions intensity is estimated by dividing<br>total attributable portfolio emissions by total attributable<br>portfolio production. Attributable emissions are determined<br>by calculating an attribution factor that is then multiplied<br>by customers’ total emissions and total production. The<br>attribution factor is equal to TCE as a proportion of EVIC.<br>Total attributable portfolio emissions is equal to the sum<br>of all attributable emissions and total attributable portfolio<br>production is equal to the sum of all attributable production.<br>1 Data from Table A.4: CO2<br> emissions for aviation, IEA NZE 2050 October 2021 4th revision, page 199.<br>2 Data from Table A.5: Economic and Activity indicators for aviation, IEA NZE 2050 October 2021 4th revision, page 200.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>103<br>Aluminium<br>2030 target: 10.35 tCO2-e/tonne of primary<br>aluminium produced.<br>Metric: Sector-specific emissions intensity for customer’s<br>scope 1 and 2 emissions – tCO2-e (tonnes of carbon dioxide<br>equivalent) per tonne of primary aluminium produced<br>per annum.<br>SECTORAL DECARBONISATION APPROACH:<br>This target was set using the International Aluminium<br>Institute (IAI) 1.5°C pathway.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>The International Aluminium Institute (IAI) 1.5°C pathway<br>is a global, 1.5-degree aligned reference pathway. The<br>pathway incorporates all production processes including<br>bauxite mining, alumina refining and aluminium smelting.<br>The IAI provides separate pathways for primary aluminium<br>and secondary aluminium. We have applied the primary<br>aluminium pathway as it most accurately represents our<br>customers’ reported activities. We have adjusted this<br>pathway to reflect our target boundary by excluding bauxite<br>mining and scope 3 activities. The availability of a secondary<br>pathway will allow Westpac the flexibility to include<br>secondary production in future target boundary expansion<br>where relevant.<br>A key assumption of this reference pathway is that<br>aluminium demand will grow by 55% by 2050, the increase<br>met predominantly by secondary production. A lack of post-consumer scrap means primary production will still be<br>required into the second half of the century. The carbon<br>intensity of primary metal under the 1.5-degree pathway<br>reduces from 16.1 tCO2-e/t Primary aluminium in 2018 to 0.5<br>tCO2-e/t Primary aluminium by 2050, and total greenhouse<br>gas emissions from the aluminium sector are expected to<br>be 53 million tonnes, down from 1.1 billion tonnes in 2018.<br>Decarbonisation levers for aluminium production include:<br> • Electricity decarbonisation;<br> • Direct emissions reduction from anode consumption in<br>smelting, and fuel combustion across all production<br>processes; and<br> • Recycling and resource efficiency. No aluminium is lost to<br>landfills or incinerators due to better collection systems<br>by 2050.<br>METHODOLOGY:<br>To calculate the emissions intensity associated with the<br>sector target, we use customer and asset level data, when<br>publicly available. We used data for the customers available<br>as at 30 September 2024. TCE data is a point in time as<br>at 30 September 2024 and emissions data is cumulative,<br>reflecting a 12-month period ending prior to 30 September<br>2024. Production data, emissions data, and financial data<br>for customers is the most recent public data available as at<br>30 September 2024.<br>To estimate our aluminium portfolio intensity we use<br>a weighted average emissions intensity, weighted using<br>the TCE for each customer in the portfolio. The total<br>emissions intensity for each customer is the scope 1 and<br>2 emissions from alumina refining, divided by tonnes of<br>alumina production, and the scope 1 and 2 emissions<br>from aluminium smelting, divided by tonnes of aluminium<br>produced. The emissions intensity for alumina is expressed<br>in terms of aluminium equivalent, using the industry<br>recognised factor of 1.9 tonnes alumina production per 1.0<br>tonne of aluminium production.<br>Commercial real estate (offices)<br>Target: Reduce scope 1 and 2 emissions intensity for<br>Australian and New Zealand Commercial real estate Offices<br>by 59% to 25 kgCO2-e/m2<br> net lettable area<br>SECTORAL DECARBONISATION APPROACH:<br>This target was set using the IEA NZE 2050 scenario, 2021.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>IEA NZE 2050 scenario, 2021.<br>IEA NZE is a 1.5°C aligned decarbonisation reference<br>scenario for the building sector at a global level and is<br>based on a global dataset for building energy demand,<br>energy sector emissions and building area.<br>Key assumptions of the IEA NZE reference scenario include:<br> • Electrification and energy efficiency are the two drivers<br>of decarbonisation of the sector. That transformation<br>relies primarily on technologies already available,<br>including improved envelopes for new and existing<br>buildings, heat pumps and energy-efficient equipment<br>and appliances;<br> • Increasing electrification of space heating and<br>water heating;<br> • Rapid shifts to zero-carbon-ready technologies enable<br>the share of fossil fuels in energy demand to fall<br>significantly; and<br> • By 2030, around 20% of the existing building stock<br>worldwide will be retrofitted and all new buildings<br>will comply with zero-carbon-ready building standards.<br>Carbon pricing is introduced across all regions.<br>Operational emissions in offices mainly arise from electricity<br>consumption. The IEA NZE scenario identifies a number<br>of variables that are expected to contribute to a<br>decarbonisation pathway in the commercial real estate<br>sector, such as the pace of electrification of building<br>equipment and central services, decarbonisation of the<br>grid through increased renewable generation, and expected<br>energy demand. We calculated the target as a 59%<br>reduction in emissions intensity (kgCO2-e/m2<br> net lettable<br>area) by 2030 from a 2022 baseline, based on the<br>decarbonisation pathway laid out in the IEA NZE scenario.<br>METHODOLOGY:<br>To estimate the emissions intensity of our customers,<br>where possible, we use customer level data. We used<br>the most recently available data for our customers as at<br>30 September 2024. TCE data is at a point in time as at<br>30 September. As customers’ reporting cycles often differ<br>from Westpac’s, the bank selects the 12-month period<br>ending either on 30 June or 31 December to align this data<br>most closely with Westpac’s reporting periods.<br>Our Commercial Real Estate (offices) physical emissions<br>intensity is estimated by taking the TCE weighted average<br>emissions intensity for in-scope facilities. Each in-scope<br>facility’s emissions intensity is multiplied by its weight<br>in Westpac’s in-scope lending portfolio for the sector to<br>determine the weighted average emissions intensity.<br> • Scope 1 and 2 emissions for our customers' facilities<br>is based on information collected on, or disclosed by,<br>customers, where available; and<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>104<br> • Where customer data was not available we have applied<br>a proxy value determined from the Australian Built<br>Environment Rating System (NABERS) rating register<br>(extracted on 1 April 2025 from the NABERS website) for<br>Australian customer facilities, or the New Zealand Green<br>Building Council for New Zealand customer facilities.<br>The Australian proxy value estimates the emissions<br>intensity of the 'below average' assets (with a rating<br>between 0 and 4.5 Stars) from the NABERS rating<br>register, and calculates the area-weighted average emission<br>intensity. For the New Zealand proxy, we have used a value<br>obtained from the NZ Green Building Council, based on the<br>NABERSNZ benchmarking report from 2013.<br>Residential real estate (Australia)<br>Target: 15.2 kgCO2-e/m2<br> attributed floor area.<br>SECTORAL DECARBONISATION APPROACH:<br>2050 convergence approach, using Carbon Risk Real<br>Estate Monitor (CRREM) Australia Multi-family homes (MFH)<br>scenario, 2023.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br> • The CRREM pathways have been developed in<br>partnership with the Science Based Targets Initiative<br>(SBTi) as part of a technical collaboration to provide<br>1.5°C in-use emissions decarbonisation pathways for the<br>buildings sector;<br> • CRREM has derived country-specific carbon reduction<br>pathways by downscaling the IEA NZE 2050 scenario;<br> • The assumed rate of grid decarbonisation appears to<br>be conservative compared to the rate of expected grid<br>decarbonisation in Australia; and<br> • Westpac’s baseline emissions intensity may not be<br>directly comparable with CRREM due to differences in<br>methodologies and assumptions.<br>METHODOLOGY:<br>Westpac does not currently capture customer-level<br>emissions data, as a result proxies have been used to<br>estimate emissions for residential buildings.<br>Data sources:<br> • Energy consumption data was sourced from the<br>Australian Energy Regulator’s residential customers<br>electricity and gas benchmark report 2020;<br> • To apportion energy consumption between dwelling<br>types, used the ABS Household Energy Consumption<br>Survey, Australia 2013;<br> • Electricity and gas emission factors were sourced from<br>FY24 National Greenhouse Accounts Factors; and<br> • Floor area for the majority of our portfolio is from<br>external providers.<br>Calculation methodology:<br>The approach to estimating emissions depends on<br>availability of data:<br> • Where floor area is known, building emissions were<br>estimated as a function of energy consumption per floor<br>area for each dwelling type and State, floor area, and<br>energy emission factors by State; and<br> • Where floor area was unknown, building emissions<br>were estimated as a function of energy consumption<br>per dwelling type and State, number of buildings, and<br>energy emission factors by State.<br>These approaches are in line with PCAF data quality scores<br>4 and 5, respectively.<br> • To calculate the emission intensity, where floor area was<br>unknown, floor area was estimated using the average of<br>known floor area by State and dwelling type; and<br> • The portfolio emission intensity was calculated by<br>dividing sum of attributed scope 1 and 2 emissions by<br>attributed floor area. The attribution factor is calculated<br>using the loan-to-value ratio (outstanding balance<br>divided by value at origination).<br>Agriculture (Australia Beef<br>and Sheep)<br>Target: 20.66 tCO2-e/tonne of FW.<br>Sector-specific emissions intensity for customers' scope 1<br>emissions related to land management tCO2-e (tonnes of<br>carbon dioxide equivalent) per tonne of Fresh Weight (FW)<br>of carcase, where carcase is defined as animal meat, fresh,<br>chilled or frozen, with bone in.<br>SECTORAL DECARBONISATION APPROACH:<br>Relative reduction approach, using Science Based Targets<br>Initiative (SBTi) Forest, Land and Agriculture (FLAG) Oceania<br>Beef Commodity Land Management pathway, 2022.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>Selection considerations:<br> • Alignment to the 1.5°C ambition; a specific UNEP FI<br>Guidelines For Climate Target Setting for Banks (April<br>2021) requirement;<br> • Commodity granularity and informed as much as<br>possible by Australian data;<br> • Data and modelling methodology limitations inherent to<br>the sector;<br> • Complexity of the Scope 1 emissions profile<br>in agriculture, containing three categories (Land<br>Management, Land Use Change and Removals)<br>with distinctly different abatement opportunities and<br>data challenges;<br> • Variability of agricultural production systems, emissions<br>sources and abatement opportunities across the<br>globe; and<br> • Variability of production outputs dependent on climatic<br>and market conditions.<br>Pathway key assumptions:<br> • Emissions reductions will follow different pathways<br>for major agricultural commodities and regions. This<br>enables target-setting to focus on the majority of the<br>sector’s emissions (beef/sheep meat and dairy) as well<br>as providing a level of specificity to the emissions profile<br>of Australian agriculture;<br> • Emissions reduction pathways are distinct for three<br>emissions categories (Land Management, Land Use<br>Change and Removals). This enables target-setting<br>to focus on the majority of the sector’s emissions<br>(Land Management category) and reduce the immediate<br>data challenges (by keeping Land Use Change and<br>Removals separate);<br> • The SBTi FLAG pathway supports target setting on an<br>emissions-intensity basis;<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>105<br> • Agricultural production increases to 2050 (per SBTi FLAG<br>Guidance); and<br> • The SBTi FLAG pathway is within the IPCC greenhouse<br>gas budgets for CO2<br>, methane and nitrous oxide.<br>METHODOLOGY:<br>We have used the following data and steps to generate an<br>emissions intensity:<br>1. Obtain 2023 State/Territory emissions data for beef<br>and sheep from Australia’s National Greenhouse<br>Accounts (NGA);<br>2. The emissions data is converted to an emissions<br>intensity by using 2023 Australian meat production<br>for beef and sheep from the Australian Bureau of<br>Agriculture and Resource Economics and Sciences<br>(ABARES), apportioned to state production by the count<br>of animals for each State and Territory in the 2023<br>Activity Tables used by the NGA;<br>3. These State-based emissions intensities are applied<br>to each customer based on their State location and<br>weighted by their contributions to total portfolio<br>TCE; and<br>4. Emissions baseline is the sum of weighted emissions<br>intensities from customers.<br>The methodology and data used are the best available,<br>though we acknowledge the limitations and assumptions<br>which have been applied in our calculations. The<br>methodology and data used have been developed to<br>produce an emission intensity metric with the same unit<br>as the SBTi FLAG pathway. The use of a TCE weighting<br>provides a mechanism for reflecting the composition of our<br>portfolio. ABARES and NGA are reputable sources of data<br>informed by industry research.<br>We will seek to address data limitations and improve<br>our emissions intensity calculation through our ongoing<br>engagement with customers, government and industry,<br>although progress will depend on data availability and<br>stakeholder collaboration.<br>Agriculture (Australia Dairy)<br>Target: 0.85 tCO2-e/tonne of FPCM.<br>Metric: Sector-specific emissions intensity for clients' scope<br>1 emissions related to land management tCO2-e (tonnes<br>of carbon dioxide equivalent) per tonne of Fat Protein<br>Corrected Milk (FPCM). FPCM is milk corrected for its fat and<br>protein content to a regional standard.<br>SECTORAL DECARBONISATION APPROACH:<br>Relative reduction approach, using Science Based Targets<br>Initiative (SBTi) Forest, Land and Agriculture (FLAG) Oceania<br>Dairy Commodity Land Management pathway, 2022.<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>Selection considerations:<br> • Alignment to the 1.5°C ambition; a specific UNEP FI<br>Guidelines For Climate Target Setting for Banks (April<br>2021) requirement;<br> • Commodity granularity and informed as much as<br>possible by Australian data;<br> • Data and modelling methodology limitations inherent to<br>the sector;<br> • Complexity of the scope 1 emissions profile<br>in agriculture, containing three categories (Land<br>Management, Land Use Change and Removals)<br>with distinctly different abatement opportunities and<br>data challenges;<br> • Variability of agricultural production systems, emissions<br>sources and abatement opportunities across the<br>globe; and<br> • Variability of production outputs dependent on climatic<br>and market conditions.<br>Pathway key assumptions:<br> • Emissions reductions will follow different pathways<br>for major agricultural commodities and regions. This<br>enables target-setting to focus on the majority of the<br>sector’s emissions (beef/sheep meat and dairy) as well<br>as providing adequate specificity to the emissions profile<br>of Australian agriculture;<br> • Emissions reduction pathways are distinct for three<br>emissions categories (Land Management, Land Use<br>Change and Removals). This enables target-setting<br>to focus on the majority of the sector’s emissions<br>(Land Management category) and reduce the immediate<br>data challenges (by keeping Land Use Change and<br>Removals separate; GHG Protocol Land Sector Guidance<br>in draft currently);<br> • The SBTi FLAG pathway supports target setting on an<br>emissions intensity basis;<br> • Agricultural production increases to 2050 (per SBTi FLAG<br>Guidance); and<br> • The SBTi FLAG pathway is within the IPCC greenhouse<br>gas budgets for CO2<br>, methane and nitrous oxide.<br>METHODOLOGY:<br>We have used the following data and steps to generate an<br>emissions intensity:<br>1. Obtain 2023 State/Territory emissions data for dairy<br>from Australia’s National Greenhouse Accounts (NGA);<br>2. The emissions data is converted into an emissions<br>intensity by using 2023 State milk production from<br>the Australian Bureau of Agriculture and Resource<br>Economics and Sciences (ABARES), converted to fat and<br>protein corrected milk (FPCM); and<br>3. These State-based emissions intensities are applied<br>to each customer based on their State location and<br>weighted by their contributions to total portfolio TCE.<br>4. Emissions baseline is the sum of weighted emissions<br>intensities from customers.<br>The methodology and data used are the best available,<br>though we acknowledge the limitations and assumptions<br>which have been applied in our calculations. The<br>methodology and data used have been developed to<br>produce an emission intensity metric with the same unit<br>as the SBTi FLAG pathway. The use of a TCE weighting<br>provides a mechanism for reflecting the composition of our<br>portfolio. ABARES and NGA are reputable sources of data<br>informed by industry research.<br>We will seek to address data limitations and improve<br>our emissions intensity calculation through our ongoing<br>engagement with customers, government and industry,<br>although progress will depend on data availability and<br>stakeholder collaboration.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>4. METHODOLOGY – FINANCED EMISSIONS SECTOR TARGETS<br>106<br>Agriculture (New Zealand Beef<br>and Sheep)<br>Target: Reduce land management emissions intensity by<br>9% to 18.0 tCO2-e/t Fresh Weight.<br>SECTORAL DECARBONISATION APPROACH:<br>Yes<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>Science Based Targets Initiative (SBTi) Forest, Land<br>and Agriculture (FLAG) Oceania Beef Commodity Land<br>Management pathway 2022. Required sector rate of<br>reduction was used to determine pathway to 2030 target.<br>The reference pathway has three independent categories.<br>The land management (on farm emissions) category was<br>used. Due to data limitations land use change and carbon<br>removal (on farm sequestration) categories were excluded<br>from the reference pathway calculations.<br>The beef commodity pathway was used, SBTi FLAG does<br>not have a sheep-specific pathway but we have included<br>sheep farming in our target because it was deemed<br>appropriate as sheep have very similar emission profiles as<br>beef cattle and are farmed on similar and in a lot of cases<br>the same farming systems in New Zealand.<br>METHODOLOGY:<br>To calculate the emissions intensity, customer emissions<br>and farm area data was collected, and production<br>data sourced.<br>TCE data for customers was used as at 30 September 2024,<br>TCE data is a point in time while emissions and production<br>data is cumulative over a 12-month period.<br>Emissions, production and financial data used for customers<br>was the most recently available as at 30 September 2024.<br>Farm level emissions data was collected directly from<br>customers, when this wasn’t available or hadn’t been<br>collected, emissions were estimated using customer<br>livestock numbers and emission factors.<br>Production was estimated by multiplying a customer’s farm<br>area in hectares1<br> by a fresh weight per hectare factor<br>calculated from Stats NZ data2<br>, this was used to calculate<br>each customer's emission intensity.<br>When a customer’s emissions intensity couldn’t be<br>calculated because the necessary data wasn’t available,<br>the average portfolio emissions intensity was applied to<br>these customers.<br>The overall emission intensity was calculated as a weighted<br>average of individual customers’ emission intensities, with<br>weights determined by each customer’s proportion of the<br>portfolio’s TCE.<br>Agriculture (New Zealand Dairy)<br>Target: Reduce land management emissions intensity by<br>10% to 0.77 tCO2-e/t FPCM (Fat and Protein Corrected Milk).<br>SECTORAL DECARBONISATION APPROACH:<br>Yes<br>NET-ZERO REFERENCE SECTOR PATHWAY(S) AND<br>APPROACH TO PATHWAY DEVELOPMENT:<br>Science Based Targets Initiative (SBTi) Forest, Land<br>and Agriculture (FLAG) Oceania Dairy Commodity Land<br>Management pathway 2022. Required sector rate of<br>reduction was used to determine pathway to 2030 target.<br>The reference pathway has three independent categories.<br>The land management (on farm emissions) category was<br>used. Due to data limitations land use change and carbon<br>removal (on farm sequestration) categories were excluded<br>from the reference pathway calculations.<br>METHODOLOGY:<br>To calculate the emissions intensity, customer emissions<br>and production data was collected. TCE data for customers<br>was used as at 30 September 2024, TCE data is a point in<br>time while emissions and production data is cumulative over<br>a 12-month period. Emissions, production and financial data<br>used for customers was the most recently available as at<br>30 September 2024.<br>Farm level emissions data was collected directly from<br>customers, when this wasn’t available or hadn’t been<br>collected, emissions were estimated using customer<br>livestock numbers and emission factors.<br>Production data measured in milk solids produced was<br>collected directly from customers, this was used to calculate<br>each customer's emission intensity.<br>The emissions intensity was converted from Milk Solids to<br>Fat and Protein Corrected Milk using a conversion factor<br>calculated using the International Dairy Federation formula3<br>and national production data sourced from Dairy NZ4<br>.<br>When a customer’s emissions intensity couldn’t be<br>calculated because the necessary data wasn’t available,<br>the average portfolio emissions intensity was applied to<br>these customers.<br>The overall emission intensity was calculated as a weighted<br>average of individual customers’ emission intensities, with<br>weights determined by each customer’s proportion of the<br>portfolio’s TCE.<br>1 Farm area sourced as a one off from Stats NZ from 'Agricultural and horticultural land use 2021'.<br>2 Fresh Weight and livestock count sourced yearly from Stats NZ, FY24 Numbers from 'Livestock slaughtering statistics: March 2024'.<br>3 International Dairy Federation formula FPCM Fat & Protein ratio sourced as a one off from a 2015 paper 'Bulletin of the international dairy foundation 409/2015'.<br>4 National Production data sourced yearly from Dairy NZ, FY24 data from the report 'New Zealand Dairy Statistics 2023-24'.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 107<br>5. METHODOLOGY – CLIMATE-RELATED SCENARIO ANALYSIS<br>Climate-related scenario<br>analysis methodology<br>Physical Risk – Retail<br>To assess the possible implications of climate-related acute<br>physical risks, we conducted an analysis of the exposure<br>of our Australian mortgage portfolio to natural perils. This<br>assessment focused on the three natural perils to some of<br>our mortgage customers: floods, bushfires, and cyclones.<br>The analysis leveraged a national address-level database<br>that provides peril-specific risk insights for individual<br>buildings and addresses across Australia. Westpac matched<br>its mortgage portfolio to this database using unique asset<br>location identifiers. Properties that could not be matched<br>were excluded from the analysis. As at 31 August 2025,<br>5% of retail lending exposure could not be included due to<br>system and data constraints. Properties were classified as<br>higher risk based on their relative peril rates to the three<br>identified perils.<br>The database also includes forward-looking projections of<br>weather-related perils under three IPCC Representative<br>Concentration Pathways (RCP2.6, RCP4.5, and RCP8.5),<br>extending to 2050. For the purposes of this analysis, the<br>mortgage portfolio was held static – assuming no growth<br>or change in composition – and no adaptation measures by<br>Westpac or its customers were considered.<br>To validate the reliability of the underlying climate data, the<br>following methodologies were applied:<br> • Modelled hazard data is calibrated using Synthetic<br>Aperture Radar imagery and observed floodplain data<br>from historical global flood events;<br> • Assessed using proximity to bushfire-prone vegetation<br>and validated against observed burn areas following<br>each fire season; and<br> • Derived from modelled wind speed data and cross-referenced with observations from the Bureau of<br>Meteorology and other third-party sources.<br>While floods, bushfires, and cyclones were prioritised due<br>to their severity and relevance to household impacts, other<br>hazards such as soil movement and storms were considered<br>less material for this analysis. However, we recognise that<br>this analysis provides one relative view of physical risk,<br>and our Australian mortgage customers may be exposed<br>to severe events or other natural perils not captured in<br>this analysis. These exposures may translate into credit risk<br>impacts through mechanisms such as reduced insurance<br>availability or affordability, or asset devaluation.<br>Transition Risk – Non-Retail<br>Westpac’s transition risk framework assesses sector-level<br>lending exposure to climate-related transition risks across<br>three key categories: policy, technology, and market<br>changes. Each category includes two risk factors, resulting<br>in six climate transition risk factors in total.<br>Each sector with lending exposure is assigned a 1–5 rating<br>for each of the six risk factors, based on internal subject<br>matter expertise. A rating of 1 indicates lower relative<br>transition risk, while a rating of 5 indicates higher relative<br>transition risk compared to other sectors in the economy.<br>A sector’s overall transition risk rating is determined by<br>taking the highest rating across the three categories<br>(policy, technology, and market). For aggregated sectors,<br>the average of the underlying sub-sector ratings is used<br>for each risk factor, and the same approach is applied to<br>determine the overall rating.<br>Several methods were considered to convert the rating<br>for each risk factor to a determination of heightened<br>transition risk, both for individual sectors and at the<br>aggregated sector level used for reporting purposes. The<br>selected approach represents a midpoint among the options<br>considered, balancing the need to highlight material risks<br>while maintaining comparability across sectors.<br>The analysis is conducted at the ANZSIC 4-digit level, using<br>the Customer ANZSIC code to identify the primary industry<br>of each borrower. Where unavailable, the Facility ANZSIC<br>is used. Lending exposures without an ANZSIC code are<br>excluded from the analysis. As at 30 September 2025,<br>0.44% of non-retail lending exposure lacked an associated<br>ANZSIC code.<br>While ANZSIC codes provide a consistent classification<br>framework, they have limitations:<br> • They may not fully reflect the activities of<br>diversified businesses;<br> • Business activities may evolve over time, making codes<br>outdated; and<br> • Mapping ANZSIC codes to other data sources can<br>be complex.<br>Scenario analysis was conducted across all sectors using<br>three climate transition scenarios and three time horizons.<br>This enabled extrapolation of the six risk factors over time<br>and under different climate policy pathways. Refer to the<br>scenarios detailed in Table 16 and metrics in Table 17 for<br>further detail.<br>The framework and sector ratings have undergone internal<br>review and were benchmarked against peer disclosures and<br>leading publications (e.g., UNEP FI’s Beyond the Horizon) to<br>ensure alignment with emerging industry practice.<br>Our breakdown of potential transition risks are at a high<br>level and indicative only. We acknowledge that transition<br>risks may affect sectors, geographies, and individual<br>companies differently and to varying degrees, beyond what<br>we have identified through this framework.<br>Ultimately, these risks may lead to adverse financial<br>outcomes such as reduced demand, lower profitability, or<br>asset devaluation, which could impair a customer’s ability to<br>service debt and increase credit risk.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>5. METHODOLOGY – CLIMATE-RELATED SCENARIO ANALYSIS<br>108<br>Physical Risk in New Zealand – Retail and Non-Retail<br>This rainfall flooding assessment was conducted using TCE<br>as at 30 September 2025 for each of the following three<br>lending types: Residential Mortgages, Agricultural business<br>and Commercial Real Estate lending.<br>We match secured TCE with the location of properties<br>where it is possible to do so accurately and reliably.<br>Where we cannot match secured TCE with the location<br>of properties, we cannot match the TCE to climate data<br>and therefore, this has been classified as unmatched to<br>assessed lending portfolio(s).<br>We have carried out our FY25 analysis using new modelled<br>rainfall flooding data sourced from our climate data<br>partners. The metrics presented are not comparable to<br>those presented in prior years.<br>Rainfall flooding affects Agricultural properties used<br>for livestock and Agricultural properties used for crops<br>differently. Similarly, rainfall flooding affects non-industrial<br>commercial properties (e.g., office buildings or retail<br>premises) differently to industrial property. The sub-segments of these Agricultural and Commercial Real<br>Estate lending portfolios were considered separately, as<br>described below.<br>Residential Mortgages lending: We assess a residential<br>property’s vulnerability to rainfall flooding based on:<br> • the potential depth of water that may inundate a<br>property and the velocity of the modelled flood; and<br> • the percentage of the title area that may be covered in<br>the modelled flood.<br>The combination of flood depth and velocity recognises<br>that a fast moving but relatively shallow flood can be as<br>damaging as a deep flood – over a certain depth or velocity<br>of flood, there is limited likelihood of recovery during the<br>flood and thus damage will likely ensue. The assessment<br>of damage resulting from depth and velocity identify risk in<br>different flood conditions and provide a helpful reference<br>point for estimating the vulnerability of properties.<br>Agricultural lending: We assess an agricultural property’s<br>vulnerability to rainfall flooding based on:<br> • the potential depth of the flood on the farm the<br>percentage of the farm area that may be flooded, and<br>the current type of farming (cropped or livestock).<br>We assume a shallower flood will damage crops before it<br>damages livestock farming.<br>Note, while we use a different definition of Vulnerable<br>depending on whether the agricultural property is used for<br>livestock or cropped land, for the purposes of the metric<br>in Table 20, we present a % Vulnerable across Agricultural<br>lending as a whole.<br>Commercial Real Estate lending: We assess a commercial<br>real estate property’s vulnerability to rainfall flooding<br>based on:<br> • the potential depth of the flood on the property;<br> • the percentage of the site area that may be flooded; and<br> • the type of commercial real estate (non-industrial<br>commercial property or industrial property).<br>Industrial and warehouse buildings typically have higher<br>wall heights and steel portal frames, which is the primary<br>driver for the different approaches.<br>Note, while we use a different definition of Vulnerable<br>depending on whether the commercial property is used for<br>non-industrial commercial property or industrial property,<br>for the purposes of the metric in Table 20, we present a<br>% Vulnerable to severe rainfall flooding across Commercial<br>Real Estate lending as a whole.<br>We recognise that Westpac NZ is exposed to physical<br>climate-related risks more broadly, both directly and<br>indirectly through our customers and other business<br>activities that are not secured against property. This is<br>outside the scope of this specific analysis. In addition, we<br>do not currently match unsecured TCE to a physical location<br>and therefore exclude this TCE from our analysis.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>5. METHODOLOGY – CLIMATE-RELATED SCENARIO ANALYSIS<br>109<br>Scenarios we used in our scenario analyses carried out in FY25 (Australia & New Zealand)<br>Net Zero 2050 Delayed Transition Current Policies<br>Source of scenario • Source of transition risk: NGFS (phase 5) Net Zero 2050;<br> • Source of physical risk: IPCC RCP2.6 (AU) and CMIP6a<br>SSP1-2.6 (NZ); and<br> • Source of demographic changes: SSP2 Middle of the Road<br>(as used by the NGFS).<br> • Source of transition risk: NGFS (phase 5)<br>Delayed Transition;<br> • Source of physical risk: IPCC RCP4.5 (AU) and CMIP61<br>SSP2-4.5 (NZ); and<br> • Source of demographic changes: SSP2 Middle of the<br>Road (as used by the NGFS).<br> • Source of transition risk: NGFS (phase 5)<br>Current Policies;<br> • Source of physical risk: IPCC RCP8.5 and CMIP6a<br>SSP5-8.5; and<br> • Source of demographic changes: SSP2 Middle of<br>the Road (as used by the NGFS).<br>Brief description A net-zero scenario that limits global warming to 1.5°C through<br>stringent climate policies, reaching net-zero global emissions<br>by 2050. The global response is coordinated and orderly.<br>A delayed transition assumes a delay in policy response to<br>address global greenhouse gas emissions, requiring strong<br>policies from 2030 to limit global warming to well below 2°C.<br>A current policies scenario describes a business-as-usual (BAU) trajectory where limited action is taken to<br>address global warming.<br>Time horizons considered (incl.<br>end- points and determination<br>by year or temperature target)<br>Scenario analysis is performed for each year from the present<br>to an endpoint of 2050 in each scenario.<br>Scenario analysis is performed for each year from the<br>present to an endpoint of 2050 in each scenario.<br>Scenario analysis is performed for each year from the<br>present to an endpoint of 2050 in each scenario.<br>Description of emissions<br>reduction pathways<br>Emissions follow an orderly trajectory, reaching net-zero global<br>emissions by 2050.<br>Emissions follow a disorderly trajectory, with only a<br>moderate decline to 2030 before a steep decline approaching<br>net-zero by 2050.<br>Emissions follow a downward trajectory, aligned to<br>current policy ambition; however, a significant volume<br>of emissions continue to enter the atmosphere<br>through to 2050.<br>Key<br>assumptions<br>in pathway<br>development<br>over time<br>Climate-related<br>policies and<br>socioeconomic<br>assumptions<br> • Transition risks are expected to be high as immediate,<br>strict global policy action is required.<br> • Due to the restrictive nature of carbon policies, renewables<br>are deployed rapidly and at-scale, reaching full grid<br>decarbonisation by 2050, supported by large-scale<br>batteries and residential solar and batteries.<br> • Shadow carbon prices are higher in scenarios where<br>greater climate policy is enacted to reduce further<br>global warming.<br> • Demographic assumptions are consistent across all<br>scenarios, aligned to the SSP2 Middle of the Road scenario<br>as employed in the NGFS scenario suite.<br> • Due to the need to take aggressive action to address<br>the impacts of climate change, introduced policies will be<br>restrictive, sudden and severe.<br> • As a result, transition risk will be highest in this scenario.<br> • This is further exacerbated by the need for countries<br>mitigating climate change to take greater action to make<br>up for countries not taking action or taking insufficient<br>action to address emissions.<br> • Shadow carbon prices (a hypothetical carbon price which<br>represents policy action) are higher in scenarios where<br>greater climate policy is enacted to reduce further<br>global warming.<br> • Demographic assumptions are consistent across all<br>scenarios, aligned to the SSP2 Middle of the Road<br>scenario as employed in the NGFS scenario suite.<br> • Transition risks in this scenario are minimal as<br>little action is taken to address climate change.<br> • No additional policies are enacted beyond the<br>policies that are currently in place to address<br>climate change.<br> • Demographic assumptions are consistent across<br>all scenarios, aligned to the SSP2 Middle of<br>the Road scenario as employed in the NGFS<br>scenario suite.<br>Macroeconomic<br>trends<br> • Restrictive policies and high carbon prices will have<br>flow-on impacts to energy prices and emissions-intensive<br>production, causing inflation to increase generally.<br> • Gross Domestic Product (GDP) experiences a slight decline<br>in growth rates due to the restrictive policies implemented.<br> • GDP resumes baseline level growth from 2040 with<br>impacts from physical damages relatively low.<br> • Macroeconomic impacts will be severe from 2030 due<br>to the disruptive and restrictive nature of the policies<br>deployed, acutely felt in emissions-intensive and energy-intensive industries.<br> • Policies will be sudden and severe from 2030, with<br>significant flow-on disruptions to economic activity. GDP<br>will be unaffected in the short term, before a notable<br>decline in economic growth from restrictive policy.<br> • Macroeconomic impacts are negligible initially,<br>with notable declines in economic growth in later<br>decades due to increased physical risks, natural<br>disasters and economic damages.<br> • GDP continues to worsen relative to the baseline<br>with increasingly significant damages and lower<br>economic growth rates expected over time,<br>driven by climate inaction and exacerbated<br>physical risks.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>5. METHODOLOGY – CLIMATE-RELATED SCENARIO ANALYSIS<br>110<br>Net Zero 2050 Delayed Transition Current Policies<br> • Physical damages will also be greater in this scenario<br>relative to a net-zero scenario, due to the initially<br>delayed policy response, limiting economic growth as<br>funding is redirected to recovery.<br>National- or<br>regional-level<br>variables<br> • In the short to medium term, acute physical risks are<br>expected to continue as existing GHG concentrations<br>have already locked in climate change impacts over the<br>coming decades. Increases in severity and/or frequency<br>are expected to be relatively limited due to achieving an<br>ambitious temperature goal.<br> • Chronic risks will similarly worsen (heat stress, sea level<br>rise) however these risks are relatively much lower than in<br>other scenarios.<br> • Land use change (from vegetation to pastureland) is<br>limited due to the need for carbon sinks and the emissions-intensive nature of deforestation and livestock agriculture.<br> • Increased capital expenditure will be deployed in<br>the electricity sector to cater to growing demand,<br>increased electrification, distributed resources and the<br>need for significant upgrades to transmission and<br>distribution networks.<br> • The increased frequency and severity of physical risks<br>places pressure on policymakers to take decisive actions<br>to mitigate future physical risk impacts.<br> • Acute and chronic physical risks, although similar initially<br>to a net-zero scenario, are expected to worsen post 2030<br>with worse outcomes in 2050.<br> • Due to the need for a rapid transition post 2030,<br>restrictive policy will be implemented on unsustainable<br>deforestation and limitations placed on any further land-use change.<br> • Acute and chronic physical risk impacts will<br>be similar to the other scenarios in the short/<br>medium term due to the locked-in impacts from<br>existing GHG concentrations.<br> • Impacts are expected to be more severe and<br>continuing to worsen to 2100.<br> • Acute physical risks will increase in severity<br>and/or frequency.<br> • Chronic risks will become more severe post<br>2050, including extreme temperatures, changes<br>in precipitation and sea level rise, further<br>exacerbating acute risks (including storm surge,<br>storms, fires, and flooding).<br> • Land-use change will follow current trajectories,<br>catering to the food production requirements of<br>an increasing population.<br>Energy usage<br>and mix<br> • Primary energy is increasingly converted to renewables<br>with a significant scaling of electrification.<br> • Remaining fossil fuel generation is converted<br>to renewables.<br> • Although buildings, vehicles and devices become more<br>energy-efficient, the decline in energy usage driven<br>by efficiencies is offset by the significant scale of<br>electrification across industrial production.<br> • Primary energy and grid decarbonisation follows a<br>business-as-usual trend to 2030.<br> • Restrictive policy forces fuel switching, electrification<br>and a rapid increase in renewable energy projects.<br> • Renewable energy continues to make up a<br>greater share of total energy composition;<br>however, a significant volume of fossil fuel<br>energy remains in the system over all<br>time horizons.<br> • Energy demand continues to increase,<br>with little offsetting impact from increased<br>energy efficiency.<br>Developments<br>in technology<br>and carbon<br>sequestration/<br>negative<br>emissions<br>solutions<br> • Only hard-to-abate emissions remain in the economy<br>post 2050, offset by negative emissions technologies<br>and sequestration.<br> • Negative emissions technologies and natured-based<br>sequestration are increasingly deployed to reach the<br>aspirational goal of the Paris Agreement.<br> • Technological advances in energy efficiency (industry,<br>buildings, vehicles and devices) help to offset growing<br>energy demand.<br> • Hydrogen and sustainable fuels production take a greater<br>share of oil and gas combustion in hard-to-abate sectors,<br>such as marine and air transport.<br> • Limited use of carbon removal technology or nature-based sequestration due to the delayed nature<br>of the transition and slow roll-out of negative<br>emission technology.<br> • Limited development of sustainable fuels as the<br>majority of renewable electricity is dedicated towards<br>decarbonisation of the electricity grid.<br> • No carbon removal technologies or additional<br>carbon sequestration projects are employed.<br> • No major technological developments.<br>a. CMIP – Coupled Model Intercomparison Project – is a project of the World Climate Research Group (WCRP) providing climate projections to understand past, present and future climate changes. CMIP and its associated<br>data infrastructure have become essential to the Intergovernmental Panel on Climate Change (IPCC) and other international and national climate assessments. CMIP5 used Representative Concentration Pathways (RCPs) to<br>describe future scenarios such as RCP2.6, RCP4.5 and RCP8.5. CMIP6 uses Shared Socioeconomic Pathways (SSPs), including SSP1-2.6, SSP2-4.5 and SSP5-8.5.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>5. METHODOLOGY – CLIMATE-RELATED SCENARIO ANALYSIS<br>111<br>Inputs we used into our scenario analyses carried out in FY25<br>Climate-related risk<br>type<br>Scenario<br>analysis<br>carried out<br>in FY25<br>Scenarios used and their source Diverse<br>range of<br>scenarios<br>Scenario(s)<br>aligned<br>with latest<br>international<br>agreement on<br>climate change<br>Rationale of relevance of the<br>scenarios to assessment of our<br>resilience to climate-related changes,<br>development or uncertainties<br>Time horizons Scope of operations used in<br>scenario analysis<br>Physical<br>risk<br>1. Climate-related<br>physical<br>risk in the<br>Retail<br>portfolios<br> • RCP2.6, RCP4.5 and RCP8.5 (IPCC)<br> – Third party data provider (AU).<br> • SSP1-2.6, SSP2-4.5 and SSP5-8.5<br>(CMIP6) – Third party data<br>provider (NZ).<br>Yes No RCP2.6 (and SSP1-2.6) through to<br>RCP8.5 (and SSP5-8.5) includes a<br>diverse, yet plausible range of physical<br>risk outcomes.<br>Current to 2050 • Assessed Australian retail mortgage<br>portfolio, ~$547b TCEa, ~42% of total<br>Group TCEb.<br> • Assessed New Zealand residential<br>mortgage portfolio, NZ$84.5bn TCE.<br>2. Climate-related<br>physical<br>risk in the<br>Non-Retail<br>portfolios<br> • SSP1-2.6, SSP2-4.5 and SSP5-8.5<br>(CMIP6) – Third party data<br>provider (NZ).<br>Yes No This analysis is focused on assessing<br>resilience and exposure to a plausible<br>range of physical risk outcomes.<br>Current to 2050 • Assessed Commercial Real Estate<br>lending in New Zealand,<br>NZ$9.3bn TCE.<br> • Assessed Agricultural business<br>lending in New Zealand,<br>NZ$9.3bn TCE.<br>Transition<br>risk<br>3. Climate-related<br>transition<br>risk in the<br>Non-Retail<br>portfolios<br> • Current Policies, Delayed<br>Transition and Net Zero<br>2050 (NGFS).<br>Yes Yes Current Policies through to Net Zero<br>2050 includes a diverse, yet plausible<br>range of transition risk outcomes.<br>Current to 2050 • Assessed Business and institutional<br>lending portfolios, all sectors and<br>geographies, ~$599b TCEc<br>, ~46% of<br>total Group TCEb.<br>Physical<br>and<br>transition<br>risk<br>Qualitative<br>scenario<br>analysis<br>workshops<br>to identify<br>risks and<br>opportunities<br> • New Zealand Banking<br>Association “Orderly”.<br> • “Too Little Too Late”<br> – Network for Greening the<br>Financial System Delayed<br>Transition for transition risk;<br> – Network for Greening the<br>Financial System Current<br>Policies for physical risk.<br> • New Zealand Banking Association<br> “Hothouse World”.<br>Yes Yes We have used scenarios relevant to<br>the New Zealand Banking sector –<br>two that were developed as sector<br>scenarios by the New Zealand Banking<br>Association and one that aligns to<br>recent stress testing.<br>Present to 2050<br>and beyond.<br>Scenario narratives<br>describe short term<br>(present to 2030)<br>medium term (2030<br>to 2040) and long<br>term (2040 to<br>2050 and beyond)<br>time horizons.<br>Westpac New Zealand, with focus on<br>Agribusiness, Commercial Real Estate<br>and Residential Property. Participants<br>asked to consider impacts to WNZL<br>and stakeholders including customers,<br>communities, government, Māori /Iwi<br>and shareholders.<br>a. At 31 August 2025.<br>b. Total Group TCE at 30 September 2025.<br>c. At 30 September 2025.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>5. METHODOLOGY – CLIMATE-RELATED SCENARIO ANALYSIS<br>112<br>Key assumptions made within our scenario analysis process in FY25<br>Climate-related risk<br>type<br>Scenario<br>analysis<br>carried<br>Assumptions about climate-related policies in the jurisdictions<br>in which Westpac operates<br>Assumptions about<br>macroeconomic trends;<br>Assumptions about<br>national- or regional-level variables<br>Assumptions about energy usage<br>and mix<br>Assumptions about developments<br>in technology<br>Physical<br>risk<br>1. Climate-related<br>physical<br>risk in the<br>Retail<br>portfolios<br>Although assumptions about<br>climate-related policies are present<br>within the scenarios analysed,<br>climate-related policies are not<br>relevant to this analysis as the<br>focus is on understanding our retail<br>lending exposure to perils (bushfire<br> & cyclone – AU only, rainfall flooding<br>and coastal inundation – NZ only)<br>and how this exposure changes<br>over time.<br>Although assumptions about<br>macroeconomic trends are present<br>within the scenarios analysed,<br>macroeconomic trends are not<br>relevant to this analysis as the focus<br>is on understanding our retail lending<br>exposure to physical perils (bushfire<br> & cyclone – AU only, rainfall flooding<br>and coastal inundation – NZ only) and<br>how this exposure changes over time.<br>Third party data provider<br>provides downscaled<br>outputs from global and<br>regional climate models to<br>ensure outputs are relevant<br>to Australia’s and New<br>Zealand’s circumstances.<br>Outputs are provided at an<br>asset level and consider<br>local weather patterns,<br>land use and infrastructure.<br>Although assumptions about<br>energy usage and mix are present<br>within the scenarios analysed,<br>assumptions on energy usage and<br>mix are not relevant to this analysis<br>as the focus is on understanding<br>our retail lending exposure to<br>physical perils (bushfire & cyclone<br> – AU only, rainfall flooding and<br>coastal inundation – NZ only)<br>and how this exposure changes<br>over time.<br>Although assumptions about<br>developments in technology are<br>present within the scenarios<br>analysed, developments in<br>technology are not relevant to<br>this analysis as the focus is on<br>understanding our retail lending<br>exposure to physical perils (bushfire<br> & cyclone – AU only, rainfall flooding<br>and coastal inundation – NZ only)<br>and how this exposure changes<br>over time.<br>2. Climate-related<br>physical<br>risk in the<br>Non-Retail<br>portfolios<br>Although assumptions about<br>climate-related policies are present<br>within the scenarios analysed,<br>climate-related policies are not<br>relevant to this analysis as the<br>focus is on understanding our<br>agricultural and commercial real<br>estate lending exposure to rainfall<br>flooding and coastal inundation<br>and how this exposure changes<br>over time.<br>Although assumptions about<br>macroeconomic trends are present<br>within the scenarios analysed,<br>macroeconomic trends are not<br>relevant to this analysis as the focus<br>is on understanding our agricultural<br>and commercial real estate lending<br>exposure to rainfall flooding and<br>coastal inundation, and how this<br>exposure changes over time.<br>Increasing severity and/or<br>frequency of natural<br>disasters, consistent with<br>increasing emissions in<br>each scenario.<br>Although assumptions about<br>energy usage and mix are present<br>within the scenarios analysed,<br>assumptions on energy usage<br>and mix are not relevant to<br>this analysis as the focus is on<br>understanding our agricultural and<br>commercial real estate lending<br>exposure to rainfall flooding and<br>coastal inundation, and how this<br>exposure changes over time.<br>Although assumptions about<br>developments in technology are<br>present within the scenarios<br>analysed, developments in<br>technology are not relevant to<br>this analysis as the focus is on<br>understanding our agricultural and<br>commercial real estate lending<br>exposure to rainfall flooding and<br>coastal inundation, and how this<br>exposure changes over time.<br>Transition<br>risk<br>3. Climate-related<br>transition<br>risk in the<br>Non-Retail<br>portfolios<br>Depending on the scenario, climate-related policies may be minimal<br>(Current Policies) or restrictive (Net<br>Zero 2050). These policies are<br>anticipated to impact the trajectory<br>and economic viability of emissions<br>intensive sectors, with indirect flow-on impacts across value chains and<br>supply chains.<br>Depending on the scenario,<br>macroeconomic trends may be<br>neutral (Current Policies) or<br>unfavourable (Net Zero 2050) to fossil<br>fuel industries and high emitting<br>sectors. These trends may include<br>impacts to demand and/or price<br>for fossil fuels and high emissions<br>products, impacting the trajectory<br>and economic viability of emissions<br>intensive industries.<br>This analysis is performed<br>at a global level without<br>making specific reference<br>to national or regional<br>variables. Global trends<br>are adopted to understand<br>Group non-retail lending<br>exposure to transition risk.<br>Depending on the scenario,<br>energy usage and mix may<br>favour fossil fuels (Current<br>Policies) or renewables (Net Zero<br>2050). The impacts of these<br>assumptions on this analysis are<br>captured under “assumptions about<br>economic trends”.<br>Developments in technology is<br>specifically considered within the<br>non-retail transition risk analysis.<br>Depending on the scenario,<br>developments in technology may<br>be limited (Current Policies) or<br>result in significant developments<br>(Net Zero 2050). Assumptions<br>include technological developments<br>emissions reductions, carbon<br>capture, alternative fuels and energy<br>efficiency, among others.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 113<br>6. INDEPENDENT ASSURANCE STATEMENT<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>6. INDEPENDENT ASSURANCE STATEMENT<br>114<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>6. INDEPENDENT ASSURANCE STATEMENT<br>115<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX<br>6. INDEPENDENT ASSURANCE STATEMENT<br>116<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	INTRODUCTION GOVERNANCE STRATEGY RISK MANAGEMENT METRICS AND TARGETS APPENDIX 117<br>7. DISCLAIMER<br>The information in this document is general information<br>about the Group and its activities as at the date of this<br>Sustainability Report unless otherwise stated herein. It is<br>given in summary form and is therefore not necessarily<br>complete. It is not intended that it be relied upon as<br>advice to investors or potential investors, who should<br>be seeking independent professional advice depending on<br>their specific investment objectives, financial situation or<br>particular needs. The material contained in this document<br>may include information, including, without limitation,<br>methodologies, modelling, scenarios, reports, benchmarks,<br>standards, tools, metrics and data, derived from publicly<br>available or government or industry sources that have not<br>been independently verified. No representation or warranty<br>is made as to the accuracy, completeness or reliability of<br>the information.<br>This document contains statements that constitute<br> “forward-looking statements” within the meaning of Section<br>21E of the US Securities Exchange Act of 1934. Forward-looking statements are statements about matters that<br>are not historical facts. Forward-looking statements and<br>metrics appear in a number of places in this document and<br>include statements regarding our current intent, belief or<br>expectations with respect to our business and operations,<br>macro and micro economic and market conditions, results of<br>operations and financial condition, capital adequacy and risk<br>management, including without limitation, climate change,<br>net-zero, emissions intensity and other sustainability<br>related statements, commitments and targets, projections,<br>scenarios, risk and opportunity assessments, pathways,<br>forecasts and metrics, forecasted economic indicators and<br>performance metric outcomes, financial support to certain<br>borrowers, indicative drivers, estimated emissions and other<br>proxy data. These are subject to known and unknown risks,<br>and there are significant uncertainties, limitations, risks and<br>assumptions in the metrics and modelling on which these<br>statements rely. In particular, the metrics, methodologies<br>and data relating to climate and sustainability are rapidly<br>evolving and maturing, including variations in approaches<br>and common standards in estimating and calculating<br>emissions, and uncertainty around future climate- and<br>sustainability- related policy and legislation. There are<br>inherent limits in the current scientific understanding of<br>climate change and its impacts.<br>Forward-looking statements may also be made by<br>members of Westpac’s management, directors, officers<br>or employees (verbally or in writing) in connection<br>with this document. Such statements are subject to<br>the same limitations, uncertainties, assumptions and<br>disclaimers in this document. We use words such as<br> ‘will’, ‘may’, ‘expect’, ‘indicative’, ‘intend’, ‘seek’, ‘would’,<br> ‘should’, ‘could’, ‘continue’, ‘anticipate‘, ‘believe‘, ‘probability‘,<br> ‘risk‘, ‘aim‘, ‘target’, ‘plan’, ‘estimate‘, ‘outlook‘, ‘forecast‘,<br> ‘goal’, ‘guidance’, ‘ambition’, ‘assumption’, ‘projection’, or<br>other similar words that convey the prospective nature of<br>events or outcomes and generally indicate forward-looking<br>statements. These forward-looking statements reflect our<br>current best estimates, judgements, assumptions and views<br>as at the date of this document with respect to future<br>events and are subject to change, certain known and<br>unknown risks and uncertainties and assumptions and other<br>factors which are, in many instances, beyond the control<br>of Westpac, its officers, employees, agents and advisors,<br>and have been made based upon management’s and/or<br>the Board’s current expectations, understandings or beliefs<br>concerning future developments and their potential effect<br>upon us.<br>Although management and/or the Board currently believes<br>these forward-looking statements have a reasonable basis,<br>there can be no assurance that future developments or<br>performance will be in accordance with our expectations<br>or that the effect of future developments on us will be<br>those anticipated. There is a risk that the best estimates,<br>judgements, assumptions, views, models, scenarios,<br>projections used may subsequently turn out to be incorrect.<br>Actual results, performance, conditions, circumstances or<br>the ability to meet commitments and targets could differ<br>materially from those we expect or are expressed or implied<br>in such statements, depending on various factors, including<br>without limitation significant uncertainties in climate change<br>and sustainability related metrics and modelling as well<br>as further development of methodologies, reporting or<br>other standards which could impact metrics, data and<br>targets (noting that climate and sustainability science,<br>standards, methodologies and reporting are subject to rapid<br>change and development). There are usually differences<br>between forecast and actual results because events and<br>actual circumstances frequently do not occur as forecast<br>and their differences may be material. Factors that may<br>impact on the forward- looking statements made include,<br>but are not limited to, those described in this document<br>and in the section titled 'Risk Management' in our 2025<br>Annual Report, as well as the 2025 Risk Factors document<br>available at www.westpac.com.au. Investors should not<br>place undue reliance on forward-looking statements and<br>statements of expectation, including targets, particularly in<br>light of the current economic climate and the significant<br>global volatility. These statements are not guarantees or<br>predictions of future performance and Westpac gives no<br>representation, warranty or assurance (including as to the<br>quality, accuracy or completeness of this document), nor<br>guarantee that the occurrence of the events expressed or<br>implied in any forward-looking statement will occur. When<br>relying on forward-looking statements to make decisions<br>with respect to us, investors and others should carefully<br>consider such factors and other uncertainties and events,<br>and the judgements and data presented in this document<br>are not a substitute for investors and other readers’<br>own independent judgements and analysis. Investors and<br>others should also exercise independent judgement, with<br>the advice of professional advisers as necessary, regarding<br>the risks and consequences of any matter contained in<br>this document. To the maximum extent permitted by<br>law, responsibility for the accuracy or completeness of<br>any forward-looking statements, whether as a result of<br>new information, future events or results or otherwise,<br>is disclaimed. Except as required by law, we assume<br>no obligation to update any forward-looking statements<br>contained in this document, whether as a result of new<br>information, future events or otherwise, after the date of<br>this document.<br>WESTPAC 2025 SUSTAINABILITY REPORT
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	CONTACT<br>For questions and comments, please contact Westpac Group Sustainability:<br>[email protected]<br>westpac.com.au/sustainability<br>westpac.com.au
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