2018 Sustainability Report - nab.com.au

1 Sustainability . Report . 2018. Jeffrey Danydjati The Arnhem Land Progress Aboriginal Corporation is the largest Indigenous Corporation in Australia with 1,100 team members, and growing. Arnhem Land Progress Aboriginal Corporation NAB customer National Australia Bank Limited ABN 12 004 044 937. ABOUT THIS 2. ABOUT THIS Report . CEO MESSAGE. 2. 3. Report About thisreport About this Report CEO message OUR SNAPSHOT 4. Our snapshot 2018 SCORECARD 5. 2018 scorecard OUR APPROACH 6 Campbells Wines NAB customer Our approach HOW WE LISTEN 8. How we listen OUR VISION FOR A STRONGER 10. COMMUNITY Colin Campbell Our vision for a stronger community It's been an extraordinary MATERIAL THEME: 13 relationship and if it wasn't Material theme: DELIVERING FOR OUR CUSTOMERS for NAB, we wouldn't be Delivering for our where we are now.

2 Customers Jane Campbell & Colin Campbell MATERIAL THEME: 23. DOING THE RIGHT THING Material theme: Doing the right thing MATERIAL THEME: 26. Material theme: SUPPORTING COMMUNITIES As a major Australian bank, we This Sustainability Report (and accompanying Supporting communities Data Pack) covers NAB's performance from 1. take our role in the community October 2017 30 September 2018. It's part of our MATERIAL THEME: 29 seriously. In this Report , we'll 2018 Annual Reporting Suite, which also includes Material theme: ENGAGING OUR PEOPLE the Annual Review and Annual Financial Report . Engaging our people look at some of the ways we're You can find the full suite here. MATERIAL THEME: 35 supporting our customers, We prepared this Sustainability Report using Material theme: GOOD GOVERNANCE communities and Australia as the Global Reporting Initiative Standards core Good governance option.

3 It also refers to the Task Force on Climate- a whole. We'll explain what related Financial Disclosures recommendations MATERIAL THEME: 43 we're doing to meet changing and the Integrated Reporting and United Nations Material theme: Sustainable Development Goals frameworks, Transformation TRANSFORMATION & TECHNOLOGY community expectations, and linking our activities and commitments to the & Technology deliver on our vision to be global agenda for a sustainable future. INDICES AND ASSURANCE 46 Australia's leading bank, trusted by Indices and assurance customers for exceptional service. IF YOU HAVE ANY. GLOSSARY 55 QUESTIONS OR COMMENTS Glossary Send them through to CEO MESSAGE 3. i am proud to share NAB's Sustainability PUTTING CUSTOMERS FIRST network.

4 We have since committed to not These milestones are the result of the work About this Report Report which shows how we have close any branches in drought-declared of our people, who have shown resilience contributed to the community and We are building a stronger bank that is areas and reversed decisions to close our through a difficult year. environment in 2018. The Report is ready for a more digital future, one where Narooma and Dungog branches in NSW CEO message message an important way to engage with our long-term returns are based on customer based on community feedback. Our people help us maintain one of the stakeholders and explain how we have trust and loyalty. largest volunteering and workplace giving lived up to our purpose to back the bold Through the Royal Commission Australians programs in the country, showing their Our snapshot This includes being there when it really heard the story of our customers Ken and support to the communities in which they who move Australia forward'.

5 Matters, with examples including our Deborah Smith, who were charged default live. In 2018, more than 15,000 volunteer We launched this purpose last year and hardship program NAB Assist. Our people interest as drought and tough market days were completed by NAB's employees 2018 scorecard were eager to get this work right, taking have helped more than 18,000 Australians conditions put them behind in their and we have ambition to increase this our time to ensure it would emphasise the facing financial difficulty this year, with repayments. This fell short of community number in coming years. around 97 per cent of these customers Our approach need to put customers first and provide expectations and did not represent the meaningful direction to our people.

6 Back on track with their payments within bank we want to be. As a result we have This figure included our strong volunteering 90 days. now scrapped default rates for drought- effort at the Special Olympics in Adelaide How we listen In 2018, the importance of this has been affected farmers. in April, with NAB's 200 volunteers clear as the financial services industry We are proud of our partnership with representing a quarter of the volunteering was challenged with the charge it had put Good Shepherd Microfinance, which has These serve as part of a wider group effort and supporting our sponsorship. Our vision for a profits before people through the Royal supported close to 600,000 low-income of commitments made to be better for stronger community Commission.

7 It was uncomfortable to read Australians with microfinance products our customers, including enabling our We also continue to support the NAB. this statement, but we must face into it and services since 2005. In 2018, more farming customers to offset their farm AFL Auskick program, which helps keep and change. than 32,000 microfinance loans worth $36 management deposits against their 200,000 Australian kids active, and the Material theme: million were written across Australia and lending and announcing in September we development of AFLW, which will continue Delivering for our At NAB, we are determined to find a New Zealand through this partnership. would keep our Standard Variable home its expansion in 2019. customers sustainable way forward, one that puts loan rate on hold for the time being, to customers at the centre of everything We are also determined to be the bank for regional and rural Australia.

8 As part reward customer loyalty. THE WAY FORWARD Material theme: we do. We want to reconnect with local communities and earn their trust by of this our senior leaders visited 13 This year we refreshed our vision to be Doing the right thing listening to them about the role we play communities over three months to listen BACKING COMMUNITIES Australia's leading bank, trusted by in their area, how we can serve them and learn about how we can be better for We have a responsibility to provide a customers for exceptional service . our customers. We heard the importance This is where we want to be. Material theme: better and manage the impacts from our positive contribution to the communities Supporting communities business. We will respond to, and fix, of face-to-face banking and this has made in which we operate.

9 Us think differently about our branch Our vision is designed to challenge us. issues quicker. And, together with our purpose and This includes leading on environmental Material theme: financing and we uphold our pledge five core values, will guide us through a transformation that will help us better Engaging our people to deliver $55bn by 2025. We are well on track having provided almost $23bn deliver for our customers. in environmental financing since We have a lot of work ahead to earn the Material theme: October 2015. trust of customers, but i am confident we Good governance We continue to be the leading arranger are making the right decisions to ensure of renewable energy project finance in this vision will be achieved. Material theme: Australia1 and this year celebrated the Transformation milestone of 100 renewable energy deals, & Technology a number we are eager to grow.

10 We are also a leading financier of infrastructure in Andrew Thorburn, Australia2, helping fund the roads, schools Indices and assurance Group Chief Executive Officer and hospitals on which our society relies. Glossary 1 Thomson Reuters: Project Finance International 2006-2018 Asia Pacific Initial Mandated Lead Arrangers League Tables - 2018. AUD$ Project Allocation, NAB analysis ranking against four major Australian banks - cumulative volume as at 30 June 2018. 2 IJGlobal League tables (2018). OUR SNAPSHOT 4. AUSTRALIA'S OUR NETWORK FOOTPRINT. PERFORMANCE AGAINST About this Report 1IN3 911. 1. LARGEST ARRANGER. #. AGRI BANK STRATEGIC OBJECTIVES of green and social CEO message SUPPORTING cash return on equity2 bonds in Australia farmers and New Zealand6.