SUSTAINABILITY REPORT 2020
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SUSTAINABILITY
REPORT
2020
National Australia Bank Limited ABN 12 004 044 937
2
ABOUT THIS
REPORT GE T IN TOUCH About this report
If you have questions or comments about Leadership
This report provides information on our environmental, social and governance message
this report, please share them with us here:
performance and practices. We’ll explain what we’re doing in these areas to
serve customers well and help our communities prosper. social.impact@nab.com.au Our 2020 snapshot
This Sustainability Report and which also includes the Annual Task Force for Climate-related 2020 scorecard
accompanying Sustainability Data Review, Annual Financial Financial Disclosures (TCFD)
Pack (the ‘Data Pack’) cover the Report and Corporate recommendations, Integrated
NAB Group’s performance from Governance Statement. Reporting Framework and United
1 October 2019 to 30 September Nations Sustainable Development
We are here to serve customers well Our approach
2020 unless otherwise stated. This Sustainability Report is Goals (SDGs). and help our communities prosper.
prepared using the Global
They are part of our 2020 Reporting Initiative Standards How we listen
Annual Reporting Suite, core option. It also refers to the
Material themes
Supporting
customers
CONTENTS
Governance,
conduct and
culture
About this report 2 Material themes 10 Detailed
Colleague
Leadership message 3 X Supporting customers 11 quantitative data capability and
wellbeing
Governance, conduct and culture 19 relating to ESG
Our 2020 snapshot 4 X
performance is Managing
X Colleague capability and wellbeing 23 climate change
2020 scorecard 5 available in our
X Managing climate change 29 D
ata security,
Our approach 6 Sustainability technology and
X Data security, technology and innovation 40
Data Pack. innovation
How we listen 9
How we act 44 How we act
Assurance 47
Glossary 48 Assurance
Glossary3
CEO’S
MESSAGE About this report
Leadership
By Ross McEwan, CEO message
It is absolutely consistent with It is a commitment I take very sport, via our support of the Our 2020 snapshot
our ambition: to serve customers seriously as CEO of a major AFL, AFLW and Special Olympics
well and help our communities Australian organisation. Australia, we invested $15 million.
prosper. Prosperity is a powerful
This approach will help guide We know that to earn the trust 2020 scorecard
ambition. In a sustainability
us in addressing some of of our customers, we must
context and looking back on
society’s biggest challenges with continue to improve our culture.
2020, those words take on extra
commercial responses, creating We are resetting our focus for Our approach
meaning for NAB.
sustainable business practices the next three years to take even
Our ability to mobilise quickly and innovating for the future. greater strides towards being a
to support customers was more inclusive employer. A more
evident again when COVID-19 Climate change is one area diverse and balanced workforce How we listen
hit Australia, with restrictions where we will play our part. helps drive innovation and
forcing the temporary closure We are evolving our business creativity that leads to faster
of businesses and putting to help manage the effects of problem solving and better
climate change and support
Material themes
thousands of people out of customer outcomes.
work. Our colleagues were there, the transition to a low-carbon
In my first months at NAB, economy. Critically, we are doing We know that trust is the Supporting
I travelled across Australia making sure customers had
this mindful of energy security, foundation of any good bank. customers
meeting NAB customers and access to funds and the support
the challenges and opportunities We are determined that NAB will
colleagues. I was grateful to have services they needed. Governance,
of our major customers and serve Australia well for decades
the opportunity to see the very We work directly with our the potential impacts on the to come. conduct and
important roles they have in customers to find the right communities in which they culture
their communities. solution or refer them to free employ many Australians.
Colleague
The devastating impact of last and independent services if
There is more to do and we capability and
summer’s bushfires was stark that’s what they need. We won’t
are working closely with wellbeing
in many of the places visited. deal with fee-charging debt
management providers looking our customers to help them
At the same time, it was heart- transition their businesses to Managing
warming to hear stories that to take advantage of customers climate change
already under pressure. net zero emissions by 2050.
when our customers had reached
out to NAB for help, we were This year, we invested more D
ata security,
Going forward, we want to be technology and
able to provide critical and known for being easy to deal than $42 million in community
immediate assistance. activities. This included $5 million innovation
with, a safe bank, relationship-
led and for our long-term view. It committed to support customers,
That is what a bank should do colleagues and communities
in times of crisis. is the first time that sustainability How we act
has been anchored in our impacted by the bushfires
This sustainability report outlines corporate strategy and it reflects with emergency grants, and
the various areas in which NAB the commitment we’ve made support longer-term recovery
ensures that we contribute in a efforts. Through our partnership Assurance
to act responsibly as part of the
meaningful way to improving United Nations Global Compact. with Good Shepherd Australia
lives and livelihoods. New Zealand and in grassroots
Glossary4
OUR 2020 SNAPSHOT
About this report
HOW WE SERVE SUPPORTED COVID-19 Leadership
859
—
1,572
—
CUSTOMERS WITH SUPPORT
$15.9BN message
$42.8m
Our 2020 snapshot
branches & business ATMs
banking centres >110,000 NAB’s economic
home loan deferrals value distributed
community investment1 2020 scorecard
>90%
—
>1m
—
>38,000
business loan deferrals
payments to government, suppliers,
shareholders, our colleagues,
and the community
customers who interact virtual and live Our approach
with us are digitally active conversations
How we listen
FUNDING FOR THE FUTURE
~9m
committed to support Progress against
environmental
$5m
customers, colleagues
$2BN
financing in emerging
—
customers
and communities
impacted by the
bushfires, including:
financing commitment 4
2020: $8.9BN
Material themes
Supporting
technology by 2025 customers
$2BN 26,621 32,560
— —
$3.6m in support for impacted customers
and colleagues and in emergency relief
donations
Cumulative
$42.5BN
total since 2015:
Governance,
conduct and
culture
customers experiencing microfinance loans3
financing in affordable and specialist housing
by 2023 hardship assisted2 $1.4m directed towards longer-term
community recovery efforts $70BN by 2025
Colleague
capability and
wellbeing
Managing
ROYAL COMMISSION PROGRESS climate change
$3.5BN taxes paid including
$412m bank levy
76 recommendations
$468m #1
IN BUSINESS
D
ata security,
technology and
innovation
7 complete returned to customers
through remediation in 2020.
LENDING
How we act
Australia’s 32 in progress
6th6 largest 29 no action required total provision
income tax
payer 8 not applicable
$1,945m for remediation
21.5%
market share5
Assurance
Glossary
1 Corporate community investment ranges from short-term donations to longer-term capacity-building programs. It is calculated using the London Benchmarking Group methodology. For more information, refer to page 49 and the 2020 Sustainability Data Pack.
2 This number reflects customers who have been referred to NAB Assist for hardship assistance, and is not inclusive of customers with an active deferral as at 30 September 2020.
3 Provided in partnership with Good Shepherd (Australia and New Zealand).
4 Represents total cumulative new flow of environmental financing from 1 October 2015. Refer to our Data Pack for a further breakdown of this number and reference to how our environmental finance commitment is calculated.
5 APRA Monthly Authorised Deposit-taking Institution statistics.
6 The Australian Tax Office, 2017-2018 Report of Entity Tax Information
© 2020 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686 A147514 11/18The targets below show our progress in meeting our business and social commitments. They align with the
5
2020 SCORECARD United Nations Environment Programme Finance Initiative (UNEP FI) Principles for Responsible Banking (PRB)
pathway to a stronger future – for people and the planet. The SDGs are 17 global goals to which Australia and other
nations have signed up, to achieve a better and more sustainable future. These targets support NAB’s new Group
Well progressed Progressing Strategy as outlined on page 7. About this report
TA R G E T / C O M M I T M E N T S U S TA I N A B L E D E V ELO PM EN T G OA L S 2019 2020 PROGRESS
Strategic NPS scores: #1 #2 Leadership
Be #1 major Australian bank and NPS positive1 -16 -11 message
Environmental financing: Our 2020 snapshot
Provide $70 billion in environmental financing over 10 years (by 2025) $33.6bn $42.5bn2
2020 scorecard
Thermal coal financing:
Cap thermal coal mining exposures at 2019 levels, reducing by 50% by 2028 and
$0.76bn EaD $0.67bn EaD
intended to be effectively zero by 2035, apart from residual performance guarantees to
rehabilitate existing coal assets Our approach
Renewable energy consumption:
Source 100% of Group electricity consumption from renewable sources by 2025 3% 7%
How we listen
Our new 2025 Group environmental operational targets (from 2019 baseline):
a) 30% reduction a) 41% reduction
a) Science-based GHG emissions (tCO2-e)3 – 51% reduction from 2015 baseline Material themes
b) New b) 11% reduction
b) Energy use (GJ) – 30% reduction
c) New c) 23% reduction
c) Office paper (tonnes) – 20% reduction
d) New d) 65% of all statements Supporting
d) Customer eStatements (proportion online only) – 80% of all statements
e) New e) 22% reduction customers
e) Waste to landfill (tonnes) – 10% reduction
f) New f) 21% reduction
f) Water use (potable water withdrawal) (kL) – 5% reduction
g) New g) 18% reduction Governance,
g) Vehicle fuels (GJ) – 50% reduction
h) New h) 38% reduction conduct and
h) BNZ only staff air travel (tCO2-e) – 70% reduction
culture
Our 2020 Group supplier sustainability targets:
90% of material suppliers comply with our Global Supplier Sustainability Principles GSSP 88% GSSP 90%
ESG 100% ESG 100% Colleague
100% of new/re-contracted suppliers in sensitive sectors assessed for ESG risks each year capability and
Gender equality: 51% female overall 50% female overall
wellbeing
40% – 60% of either gender represented at all levels of the business by 2020
33% female in 36% female in Managing
executive management executive management climate change
Indigenous inclusion and support: D
ata security,
a) 70 Indigenous Australian traineeships offered per year4 a) 76 a) 65 technology and
b) Spend $2.6 million with Indigenous businesses by 2021 (baseline year 2019)5 b) $1.4m spend b) $2.4m spend innovation
c) Provide 19,000 microfinance loans to Aboriginal and Torres Strait Islander c) 6,725 loans c) 6,906 loans
customers by 2021 (baseline year 2019)6
How we act
Technology:
$2bn financing for local emerging technology industry by 2025 (baseline 2020) New $1,239m
Assurance
Affordable and specialist housing:
$2bn financing in affordable and specialist housing by 2023 (baseline 2020) New $11.6m7
Glossary
1 Refer to Glossary on page 48 for definition of NAB’s Strategic NPS, which has changed in 2020. Prior year data has been restated 4 While 65 new traineeships were offered this year, 108 Indigenous Australian trainees were employed in 2020.
to align to the 2020 definitions. Scores are presented comparing September 2019 to September 2020. 5 As of 2020 Indigenous business spend excludes GST.
2 Represented as a cumulative amount of new environmental finance since 1 October 2015. 6 Microfinance loans provided to Indigenous Australians are based on a July-June reporting period.
Refer to the 2020 Sustainability Data Pack for more information. 7 Affordable and specialist housing includes affordable housing, specialist disability accommodation, sustainable housing.
3 Science-based emissions reduction target uses a 2015 baseline as revised in 2020. Refer to the 2020 Sustainability Data Pack. Progress of $11.6m is based on total lending facilities committed, where first drawdown occurred during the commitment
period. This number does not reflect debt balance.6
OUR
APPROACH O U R E C O N O M I C VA L U E D I S T R I B U T E D
Payments made for the provision of utilities,
About this report
Suppliers $5.1bn Leadership
goods and services.
We are here to serve customers well and help our message
communities prosper.
$ Community Community partnerships, donations, grants,
investment in kind support and volunteering.
$42.8m Our 2020 snapshot
Our role Our contribution to
We have more than the economy $3.3 billion dollars in dividend payments to more than 2020 scorecard
Shareholders $3.3bn
34,000 colleagues1 serving A strong and resilient economy 641,000 shareholders.
approximately nine million supports our community in
customers who rely on us many ways. Our business helps Our approach
to deliver secure, easy and our communities prosper by Colleague salaries, superannuation contributions
reliable banking services. Colleagues $4.0bn
safeguarding jobs, investing in and incentives.
Our branches and offices their future, and helping people
in more than 850 locations
How we listen
improve their financial health.
in Australia, New Zealand, This is particularly important Payments made to governments in the form of the Bank
London and New York serve during an economic downturn. Levy ($412 million paid) plus $3.1 billion in income taxes,
Governments $3.5bn Material themes
those local communities. goods and services taxes, fringe benefit taxes and payroll
As Australia’s leading business This year we distributed $15.9 taxes among others.
and agricultural bank2 we have a billion in payments3 that flow into
Supporting
unique responsibility to support our economy and communities. X Total Economic Value Distributed3 $15.9bn customers
our businesses and farmers. How this economic value is
shared is listed on the right.
We take our role in the Governance,
More information about how we conduct and
OUR INDIREC T ECONOMIC CONTRIBUTION
community seriously and create value for our customers, culture
recognise the important role we colleagues, and communities is
and other large businesses play in our Annual Review. Colleague
in supporting a strong economy $66bn in new $469bn in deposits >$60bn in total capability and
in the current environment. In
response to COVID-19, we are
Our community home lending. managed for retail deferrals provided wellbeing
taking decisive action to support investment and business during COVID-19. Managing
customers and colleagues. We Our Corporate Community $82bn in new customers. climate change
will keep working on what Investment (CCI) approach is business lending.
matters most for our customers. aligned to the long-term pillar D
ata security,
of our new Group Strategy technology and
We remain focused on the (see next page). Using the innovation
lessons learnt from the Royal London Benchmarking Group
Commission into Misconduct in (LBG) framework, CCI measures
the Banking, Superannuation the dollar value of what we in community activities, an microfinance loans provided. disadvantaged communities How we act
& Financial Services Industry contribute to community $8.5 million decrease from the The total includes donations and (through our partnership with
and are making progress on the organisations through donations, previous year5. The decrease in volunteering to support bushfire Good Shepherd) and grassroots
recommendations made in last partnerships, sponsorships and 2020 has largely been driven response and recovery efforts sport (through our support of the Assurance
year’s Final Report. Getting the volunteering4. by COVID-19, resulting in a during the Australian summer. AFL, AFLW and Special Olympics
basics right for our customers reduction in volunteer hours Beyond emergency relief, the Australia). For more information
and continuing to improve our In a challenging last year, completed and a reduction main focus of our investment please refer to the Data Pack. Glossary
culture remain our guiding focus. we invested $42.8 million in forgone revenue through in 2020 was supporting
1 Number of full-time equivalent colleagues as at 30 September 2020, including discontinued operations. 4 Refer to Glossary on page 48 for definitions of LBG CCI categories.
Excluding discontinued operations, FTE for 2020 is 31,372. 5 Prior periods' 'Community investment' figures have been re-stated due to a calculation error of a component of forgone
2 Based on market share. interest relating to microfinance products.
3 Aligned to the Global Reporting Initiative (GRI) Standards. Economic value distributed includes operating costs,
colleagues’ wages and benefits, payments to providers of capital, payments to government and community investments.7
OUR
APPROACH About this report
H O W W E ’R E D R I V I N G A L O N G -T E R M F O C U S Leadership
Sustainability in our The long-term approach message
group strategy is inclusive of our focus
on sustainability, and our
Sustainable business is good determination to tackle some
business. It is our responsibility Our 2020 snapshot
of society’s biggest challenges
to make good long-term where we are best-placed to Commercial responses Resilient and Innovating for
decisions and help support a make the most positive impact.
strong Australian economy into
to society’s biggest sustainable business the future 2020 scorecard
This includes responding to challenges practices
the future. That is how we will natural disasters, taking action
continue to serve customers on climate change and building
well and help our communities Supporting a low- Managing our Driving investment in new,
financial health and resilience. carbon economy, driving environmental, social emerging and disruptive Our approach
prosper for years to come. It is We cannot respond to these
why we are investing now for a investment in natural assets, and governance (ESG) technologies, and partnering
challenges without resilient and helping people reduce risks and opportunities with customers, industry
more prosperous future. sustainable business practices. financial stress and creating responsibly, and creating and government on critical How we listen
This long-term approach is now We are working to align our more sustainable and Australia’s leading ESG thought leadership and
explicitly included in our Group long-term goals with the PRB inclusive communities. capability. disaster response initiatives.
Strategy. The Group Strategy, and SDGs, prioritising the
explained in depth in our Annual Material themes
following SDGs where we expect
Review, sets out what we will to have the biggest impact: Our priorities: Our priorities: Our priorities:
be known for over the next Supporting
• Climate action. • Our colleagues. • Our future core
five years: #7 Affordable and clean customers
• Sustainable agriculture • ESG risk management. business and market-
energy.
• Safe: protecting customers leading data analytics. Governance,
• Financial health and • Carbon footprint of
and colleagues through #8 Decent work and economic • Partnerships that matter. conduct and
resilience. operations.
financial and operational growth. culture
• Indigenous economic • Human rights, • Natural disaster
resilience.
#9 Industry, innovation and participation. including modern preparedness, relief
• Easy: an easier, more seamless and recovery. Colleague
infrastructure. slavery. capability and
and digitally enabled bank • Infrastructure and
that gets things done faster. #11 Sustainable cities and urbanisation. • Incentivising wellbeing
communities. sustainable financing.
• Relationship-led: building Managing
on market-leading expertise, #13 Climate action. climate change
data and insights.
#15 Life on land. D
ata security,
• Long-term: delivering
technology and
sustainable outcomes for our
innovation
customers, colleagues, and
communities.
How we act
Aligned to six key Sustainable Development Goals –
Assurance
where we can make the biggest impact
GlossaryProgress against the UN Principles for Responsible Banking
8
OUR PRINCIPLE
1. Alignment
OUR PROGRESS
• Sustainability – as part of our `long-term’ approach – is now explicitly included
APPROACH We will align our business strategy to be
consistent with and contribute to individuals’
needs and society’s goals, as expressed in
in NAB’s Group Strategy, with reference to the six key SDGs we are seeking to
progress. Work is under way to integrate this into divisional strategies and
capital allocation.
About this report
the Sustainable Development Goals, the Paris • BNZ has integrated sustainability into its business strategy and will report Leadership
Helping Australia move Climate Agreement and relevant national and progress against relevant targets in its standalone Sustainability Report. message
towards a sustainable future regional frameworks.
As a founding signatory of the 2. Impact and target setting • Work is under way to analyse the material positive and negative impacts arising
PRB and the first Australian bank to We will continuously increase our positive from NAB’s lending portfolio. This includes an initial estimation of financed Our 2020 snapshot
impacts while reducing the negative impacts emissions attributable to NAB Group across a range of sectors within Australia.
join the UN Collective Commitment
on, and managing the risks to, people and NAB is also participating in PRB working groups, and piloting a UNEP FI tool to
to Climate Action (CCCA)1, we want to
environment resulting from our activities, undertake impact analysis across our entire portfolio relative to our areas of
show industry leadership in making operation.
2020 scorecard
products and services. To this end, we will
a positive impact on society.
set and publish targets where we can have the • NAB has made commitments to increase positive impact by providing:
We have identified the following areas most significant impacts.
• $70 billion in environmental financing by 2025.
of social and environmental need Our approach
• $2 billion in affordable and specialist housing financing by 2023.
where we are best-placed to make
the biggest impact: • $2 billion in emerging technology financing by 2025.
3. Clients and customers • BNZ has set a target of having 50 per cent of BNZ SME customers measuring How we listen
• Natural disaster preparedness, emissions, setting reduction targets and reporting climate change impacts by
We will work responsibly with our clients and
relief and recovery. 2025.
customers to encourage sustainable practices
• Climate action. and enable economic activities • NAB has commissioned ClimateWorks Australia to apply sector-based analysis
that create shared prosperity for current Material themes
• Sustainable agriculture. under 2˚C and 1.5˚C scenarios to understand possible transition pathways our
and future generations. customers can take to achieve net zero emissions by 2050 and the actions they
• Financial health and resilience.
may be able to undertake to get there. See page 30 for details. Supporting
• Indigenous economic participation. customers
• NAB will work closely with 100 of our largest greenhouse gas emitting customers
• Infrastructure and urbanisation. to support them in developing or improving their low carbon transition plans
by 2023. Governance,
We are responding to many of these conduct and
challenges with strong commitments, 4. Stakeholders • NAB has well-developed processes for identifying and engaging with key culture
including those made from our We will proactively and responsibly consult, stakeholders to drive commercial responses to address society’s biggest
participation in the Australian National engage and partner with relevant stakeholders challenges. For example, this year we engaged stakeholders in the review of the Colleague
to achieve society’s goals. Group’s Human Rights and Environmental Policies. Additionally, NAB engaged capability and
Outlook (ANO) project2. We also know
stakeholders in relation to our decision to sign the Tobacco-Free Finance Pledge. wellbeing
there is more we can do. Our progress
against our commitments appears • NAB also engaged with policy makers and contributed to government
in the 2020 Scorecard section of consultations on topics such as climate, biodiversity, energy policy, modern Managing
slavery and other sustainability issues via industry associations and directly. climate change
this report.
5. Governance and culture • PRB obligations have been formally assigned in our risk management system.
The PRB provide the framework for Data security,
We will implement our commitment to This will ensure accountability across relevant divisions, supporting our leaders
sustainable banking, and aim to help technology and
these Principles through effective governance and teams in driving implementation of our commitment.
the banking industry demonstrate innovation
and a culture of responsible banking. • NAB and BNZ are participating in the PRB target-setting working groups relating to
how it makes a positive contribution biodiversity and financial inclusion.
to society. Having signed up in
• Sustainability performance is included in NAB’s remuneration and performance How we act
September last year, we are committed
to meeting all six principles over the management framework.
next three years. 6. Transparency and accountability • NAB’s first PRB Self-Assessment is available in our Sustainability Data Pack,
We will periodically review our individual and outlining our progress against the Principles in more detail. Assurance
For more detail, refer to our collective implementation of these Principles • This self-assessment is subject to independent assurance.
‘PRB Self-Assessment’ in the Data Pack. and be transparent about and accountable
for our positive and negative impacts and Glossary
our contribution to society’s goals.
1 The CCCA commits NAB Group to aligning our lending portfolio to net zero carbon emissions by 2050.
2 A collaboration with 20 other non-governmental organisations led by CSIRO and NAB. The 2019 ANO report recommended five key shifts that Australia should make to secure a prosperous future across industry, the urban landscape, energy, land use and
culture. Our affordable housing, emerging technology and sustainable agriculture commitments stemmed from our participation in the project.9
HOW WE
LISTEN About this report
Leadership
We are listening to, and acting on, feedback from Each week, our teams review it was 55% in September One of our message
NPS feedback and insights, and 2019, ending this year at 68%.
our customers, colleagues and communities. use their findings to sharpen our For Business and Private Banking
self-assessment
focus, instigate change and turn customers, it has improved from goals is to Our 2020 snapshot
our customers into advocates. 67% to 68%.
strengthen
Ongoing listening helps us supporting our culture of In response to COVID-19, we
understand what we can do to continuous learning and delivery Acting on customer have tagged all complaints that the voice of the 2020 scorecard
better serve our colleagues, of improved customer outcomes. complaints were caused or exacerbated customer in
customers, advocacy groups, by the pandemic, identified
NPS provides real-time feedback When we don’t get it right,
non-governmental organisations,
by asking customers how it is our responsibility to common themes and ensured our bank. Our approach
government, regulators, that consistent and fair outcomes
likely they are to recommend fix it and learn how to be
investors, community partners, were created for each of the
NAB to friends, family or better. This year we adjusted
unions, industry groups identified themes.
colleagues, using a 0-10 scale. our focus from complaints
and media. You can find out
reduction to capturing more How we listen
more about our approach to The overall score is calculated importance to our business,
stakeholder engagement on by subtracting the percentage customer feedback, delivering Listening to our colleagues using a four-stage process:
of customers that answer 6 or faster quality resolutions to
our website. Our aim is for every person at
below (‘detractors’) from the customers and undertaking
NAB to be proud to work here. 1. Identifying issues based on Material themes
We participate in industry percentage of customers that more comprehensive analysis last year’s themes. We used
That starts with listening and
associations and collaborations, answer 9 or 10 (‘promoters’). and insight. internal processes (colleague Supporting
acting on what our colleagues
with more information detailed Our target is to have the highest tell us matters most. We have engagement survey, peer customers
We have increased our capability
on our website. Strategic NPS2 score of our peers improved how we listen to our review, reviewing ESG
to analyse complaints. Each
in the Consumer and Business colleagues, focusing on ongoing, performance in sustainability Governance,
At the request of the Australian complaint is read by a member
segments, and be NPS positive. continuous listening followed rating benchmarks) combined conduct and
Prudential Regulation Authority of our Complaints Analytics
by actions. with external frameworks and culture
(APRA), NAB completed a self- In 2020, our overall Strategic NPS team and coded so that we
standards to check whether
assessment into governance, score was –11, which is a 5 point can understand the products
See the ‘Colleague capability they remain relevant. Colleague
accountability and culture in improvement on last year and we and services it relates to, the capability and
and wellbeing’ section
June 2018. A detailed report on were ranked #2 among the major stage of the customer journey 2. Prioritising themes with wellbeing
for details.
our progress against the self- Australian banks. We exceeded and the detailed issue the stakeholders. We sought
assessment actions and Royal our 2020 Strategic NPS target of customer raised. the views of customers, Managing
Commission recommendations, -14, continuing to make progress Identifying what matters the investment community climate change
We are improving our complaints
published on 11 November towards our long-term NPS Every year we ask our and NAB leaders through
capture and handling systems, Data security,
2020, can be found here. See the positive aspiration. stakeholders for feedback on a mixture of surveys
making it easier for customers technology and
‘Governance, conduct and our performance and practices. and interviews.
• Consumer NPS increased from to make complaints and easier innovation
culture’ section for a summary. Their insights help shape
-14 to -6 (September 2019 for our colleagues to resolve 3. Validating themes with input
our activities and reporting.
One of our self-assessment goals to September 2020). NAB is them. We aim to capture more from our senior leaders.
is to strengthen the voice of the equal #1 among the major complaints and resolve more of This year we engaged with the How we act
them at the customer’s first point investment community, NAB 4. Reviewing validated
customer in our bank. Listening Australian banks.
of contact (FPOC). Our FPOC leaders and more than 1,400 themes against last year’s
to and acting on customer • Business NPS increased from
resolution rate has increased for personal and business customers report feedback, specific
feedback is one way we are -18 to -15 (September 2019 Assurance
Personal Banking and Business to help determine and validate feedback on disclosures, and
doing this. The Net Promoter to September 2020). NAB is
and Private Banking customers. the environmental, social and considered in the context of
System (NPS)1 is our leading equal #2 among the major
For Personal Banking customers governance (ESG) issues of most our operating environment.
customer feedback measure, Australian banks. Glossary
1 Net Promoter® and NPS® are registered trademarks and Net Promoter Score and Net Promoter Systems are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld. Refer to Glossary on page 48 for a definition of NAB’s segments.
2 Strategic NPS: Sourced from DBM Atlas, measured on a six month rolling average. Definition has been updated to give all customers within the Business and Consumer segments equal voice. The overall Strategic NPS result combines the Consumer and Business
segment results using a 50% weighting for each. This has replaced “NPS priority segments” as previously reported by NAB, which was a simple average of four customer segments (Home Owners, Investors, Small Business and Medium Business). Data is presented
comparing September 2019 to September 2020 figures. Note that data presented in the Remuneration Report in NAB’s Annual Financial Report is stated on an August 2019 to August 2020 period. Prior year data has been restated to align to new segments.10
MATERIAL THEME W H Y I T I S I M P O R TA N T S U S TA I N A B L E D E V E L O P M E N T G O A L
THEMES It’s our job to serve customers well. We are providing accessible
products, acting quickly to fix things when we get it wrong,
and helping individuals and businesses get through difficulty,
About this report
hardship and vulnerability. In the near term, this means Leadership
Our material themes are supporting customers throughout COVID-19 so they come out message
Supporting the other side in the best possible financial position. In the
the environmental, social customers longer term, it’s helping customers recover and supporting
and governance (ESG) inclusive economic growth. Supporting customers also Our 2020 snapshot
issues that matter most to includes driving social impact by supporting industries such as
education, affordable housing, health and medical research.
our stakeholders and our
2020 scorecard
business. They are part Being transparent and making ethical decisions, while
of an ongoing process continuing to show progress on the recommendations of the
Royal Commission and actions of the APRA self-assessment.
to improve our practices This includes how we are changing our culture, driving Our approach
Governance,
and better respond to conduct and the right behaviours that put customers’ needs first and
community expectations. culture embedding accountability throughout the organisation.
How we listen
Looking after our colleagues’ health and wellbeing, and
This year’s high-priority themes ensuring they are well-equipped to manage new and remote
were customer, governance and ways of working. This has been particularly important Material themes
Colleague following changes in the way we work due to COVID-19.
colleague-related, reflecting the
capability and This includes embracing inclusion and diversity at all levels
need to focus on the core business Supporting
wellbeing of our workforce and playing a leadership role in the
of banking and our industry’s role customers
in supporting the economy – all professionalisation of the banking industry.
in the face of COVID-19 Governance,
and an economic downturn. Showing leadership and taking decisive action on climate conduct and
change and environmental sustainability. We see climate culture
Addressing climate change and change as a risk and an opportunity for our business and
helping our customers transition to the broader economy, and recognise the important role we Colleague
a low-carbon economy continues Managing climate can play in supporting customers and industries to transition capability and
to be a priority ESG issue across change to a low-carbon economy and become more sustainable. wellbeing
stakeholder groups.
Managing
These themes are defined on the Maintaining resilient, reliable and secure systems oriented climate change
right in order of priority, and are to customer outcomes and experience. This includes making
explored in more detail throughout things simpler, faster and safer, and managing data privacy, Data security,
this report. security and risks responsibly. Addressing digitisation and technology and
Data security, disruption through innovation is also important. innovation
technology and
innovation
How we act
Learn more about NAB’s broader approach to social impact Assurance
on our website. This includes more details about other
important issues such as human rights and supply chain impacts, Glossary
which also appear in the, ‘How we act’ section of this report.11
MATERIAL We are focused on getting the basics
THEMES right and serving customers well through
About this report
Leadership
uncertainty. message
Supporting customers
Our 2020 snapshot
Why is this important? Ensuring the flow of credit • We’ve provided deferrals for Building financial health
up to six months for more and resilience
88
Our business only succeeds Providing a steady flow of 2020 scorecard
capital through the economy than 110,000 home loans and Making it easy for customers
when our customers succeed.
is a critical part of Australia more than 38,000 business to manage their money
This year, we have been focused
and New Zealand’s recovery. loans (combined value of
on building a secure, easy, We want to offer our customers Our approach
We remain open for business and more than $60 billion).
and relationship-led banking exceptional service by providing
experience while supporting continue to lend to our personal • We’ve approved more than products and services that suit
our customers through the and business customers at a $600 million in Business their individual situation and FEES REMOVED
How we listen
wide-ranging impacts of steady rate. We have made some Support Loans under meet their needs. This year, we: FROM OUR
bushfires, drought and COVID-19. targeted changes to ensure we the Government’s SME
Maintaining access to banking continue to lend responsibly by: Guarantee Scheme. • Removed 12 products, PRODUCTS
services, providing expert consolidated 8 products Material themes
• Temporarily increasing the • When appropriate, we’ve
guidance, hardship relief and and removed 88 fees2.
level of reduction we apply provided our customers with We supported our business
support, and continuing to lend the option to extend existing • Launched Australia’s first customers this year by:
when assessing income
Supporting
responsibly are critical to Australia deferrals by up to four no interest credit card customers
from uncertain and rental (StraightUp), with a no use, • Partnering with Strive
and New Zealand’s stability and months (ending no later than
income streams to account for no pay feature. Stronger we created `NAB
recovery. We know that access 31 March 2021). Governance,
increased uncertainty. Business Fit'. This service,
to inclusive financial services • Enabled by the Federal conduct and
• Temporarily no longer • We’ve led check-in launched in October 2020,
is critical to achieving the Government’s First Home provides practical and culture
accepting short-term conversations with more
Sustainable Development Goals Loan Deposit scheme, we’re evidence-based learning to
rental income. than 41,000 homeowners
(SDGs), particularly for people one of the first major banks support business owners and Colleague
on deferrals.
who are at risk of financial • Strengthening requirements in Australia to make it easier their staff be more resilient, capability and
exclusion and vulnerability. regarding timeliness of proof At the same time, we will for approved applicants with transition to new ways of wellbeing
of income. sometimes need to make the only a five per cent deposit to working and sustain physical
hard but right decisions. Lending obtain a mortgage without and psychological wellbeing. Managing
What are we doing? Our credit appetite and risk lenders mortgage insurance. climate change
more money to customers who • Simplifying our merchant
Supporting customers settings remain unchanged for have little chance of repaying it • Increased the maximum
business lending, and we’re still pricing plans, and our Data security,
through COVID-19 will cause them more harm in the account value threshold up partnership with UK-based
Australia’s biggest business bank1. technology and
It is our job to step up and long term. to which UBank customers fintech Pollinate to roll out innovation
support customers through Every month through COVID-19 can earn bonus interest to software for our Business
we’ve provided around $2.4 We’ve also made rapid, $250,000. This resulted in Banking customers to provide
this crisis. How we treat our
billion in loans to businesses. transformational changes in 99% of UBank customers greater access to sales data
customers will define how they How we act
order to support customers now receiving bonus interest analytics, including average
think of us for years to come. Supporting customers remotely, see the ‘Data security, on their savings. transaction values and
We have implemented a range
Our repayment deferrals have technology and innovation’ payment types.
of measures to continue to serve • Launched an in-app activity Assurance
provided vital assistance to section for details. To understand
our customers and remain a safe, tracker at BNZ, designed • Releasing research examining
customers, in combination how we’re supporting colleagues
responsibly managed bank. to help customers be good eight key areas of reform
with significant relief from during COVID-19, see ‘Colleague
with their money. and action required from
governments and regulators. capability and wellbeing’. large businesses, like NAB, Glossary
and governments to support
Australian small and medium
1 Based on business lending, APRA Monthly Authorised Deposit-taking Institution statistics. sized businesses.
2 Consolidation due to multiple events including: where multiple products have been removed from our on-sale catalogue with no customer migration required, levelling exercises where multiple products
with the same offering have been consolidated without customer migration, and for products that have been divested through divestment of Wealth business.12
MATERIAL
• Allocated capital support App. Between launch in May
for two new Good Shepherd and the end of September,
programs, backed by the approximately 96,000 help
THEMES
Australian Government: guides were viewed on
nab.com.au/helpguides About this report
• Household Relief Loans:
no interest loans of up to • Delivered digital banking
$3,000 to support people refresher webinars and
training for Personal Banking
Leadership
who have lost employment message
Supporting customers or income due to COVID-19,
with rent and utilities
customers and frontline
colleagues in Business Bank,
expenses. Direct and Retail. A month-
long `Digi Edge' program was Our 2020 snapshot
• Domestic Violence No delivered nationally across
C A SE S T UDY Interest Loans Scheme: Retail, equipping bankers
no interest loans to support with the tools and resources
victims of domestic 2020 scorecard
to assist customers on their
Exploring wellbeing • Australian wellbeing levels are starting to and family violence online banking journey.
diverge markedly across the country, with in establishing a safe
Understanding the levels, and drivers, of household and contribute • Personalised in-app messages
the gap between wellbeing in Victoria and Our approach
wellbeing of our customers, colleagues and to rebuilding their lives. to further support customers
the rest of Australia now at its widest point in with helpful guidance specific
communities has always been important. the survey’s history. • Within New Zealand, BNZ to a customer's banking
COVID-19 has only emphasised this.
• Wellbeing levels are significantly lower for allocated NZ$5 million of behaviour. These messages How we listen
This information is useful to governments and unemployed Australians, and those that their capital commitment to encourage customers to
businesses, and helps us to target our efforts lost their primary source of income due to expand eligible loan purposes update their details, activate
and resources to understand challenges and COVID-19. for no interest loans to assist biometric logins, download
drive greater impact. people impacted by COVID-19. interest statements and Material themes
• COVID-19 has also tested Australian business • In partnership with Good register for two-factor
Since 2013, and 2018 in New Zealand, we have owners and operators in unique ways: over 4 Shepherd NZ, launched authentication.
Supporting
measured population wellbeing through the in 10 people in business are ‘highly anxious’, ‘DebtSOLVE’, pairing specialist customers
quarterly Wellbeing Index. 1 in 3 ‘lonely’, and 1 in 5 ‘not coping well’. In New Zealand, we initiated a
debt coaches with debt comprehensive survey of digital
• In response to the findings NAB has created consolidation loans to help capability. BNZ will draw on Governance,
The Index captures self-perceptions of life
people struggling with high the insights to build deeper conduct and
satisfaction, life worth, happiness and anxiety. a wellbeing program specifically to support
cost/ unsustainable debt. partnerships with corporates, culture
We publish high-level data, and share detailed Australian business owners.
insights with partners. This year, we have • Continued to provide support government and the digital
In 2021, we’ll apply this methodology to for Habitat for Humanity’s sector, advancing a collective Colleague
expanded our questions into the role of capability and
colleagues at NAB. This will complement the Home Repair program in approach for a more productive,
financial health in relation to overall wellbeing. wellbeing
existing ways we listen and act on feedback, and New Zealand, providing inclusive digital economy.
Findings this year include:
allow for comparisons between our colleagues over NZ$750,000 to support
essential home repairs for low Managing
• Wellbeing levels in New Zealand have held and our broader community.
to moderate income families. climate change
up well during COVID-19.
Building digital adoption Data security,
technology and
$320M+
We are investing significantly
in making banking easier, faster innovation
Financial inclusion be excluded because of lower
A significant number of the need to ensure equality of income or financial capability and safer for our customers,
Australians and New Zealanders access to services. levels, or poor credit histories. and it is critical we bring our
customers with us in designing How we act
experience difficulties accessing These impacts on society are We have committed capital of
financial services1. This can limit reinforcing the importance of our $130 million in Australia and
digital solutions. We are working MICROFINANCE LOANS
on increasing digital adoption
their ability to earn income, build 17-year partnership with Good NZ$60 million in New Zealand to to ensure access to financial PROVIDED Assurance
assets and manage unexpected Shepherd to provide appropriate support loans that build financial in partnership with
expenses. This is particularly so for services. This year, we:
products and services to those inclusion. This year, we: Good Shepherd
those on low-incomes and people excluded from mainstream • Provided more than 50 online
who are under or unemployed. banking. These products, • Provided more than 32,000 help guides on Internet (Australia and New Glossary
COVID-19 is expected to operated on a not-for-profit basis, microfinance products and Banking and the Mobile Zealand) since 2003
have a sustained impact on can support individuals who may services.
unemployment levels, increasing
1 Marjolin, A., Muir, K., and Ramia, I. (2017) Financial Resilience and Access to Financial Products and Services – Part 2, Centre for Social Impact (CSI) at UNSW Sydney, for National Australia Bank.13
MATERIAL
THEMES Our interpreter service has helped us better serve ~3,300 customers
About this report
in languages from Arabic to Vietnamese. Leadership
message
Supporting customers
Our 2020 snapshot
Gender inclusive banking • Our technology services 16 initiatives from the Framework • Extending customers In July 2020, BNZ, with support
We are continually reviewing and customer-facing have been delivered. Key support immediate access to and advice from expert 2020 scorecard
our practices and making online channels. implemented in the past twelve confidential psychological academics and support agencies,
improvements to support access • The design of our network months includes: services provided by NAB’s set up a dedicated resource
to banking for all customers. and commercial buildings. Employee Assistance to assist people experiencing
• Giving customers more Provider service. economic harm as a consequence Our approach
With the objective of improving • Our communications control over their spending of an abusive relationship.
and marketing. by offering the option to • Launched a two-way referral
the experience for our trans service for Allianz customers This involves helping people
and gender diverse customers, block gambling transactions
We have forged stronger who are experiencing understand their current financial How we listen
NAB has delivered the following on credit cards via our app. circumstances, and quickly and
connections with disability This was a first in Australian vulnerability, where
improvements: employment services and customers experiencing easily setting them up with the
banking, and has already required banking basics to get
• Removed inequalities in the improved recruitment helped more than 47,000 domestic and family violence Material themes
processes to be equitable will be offered a warm some control back over their
customer identification and customers control their
for applicants with disability. transfer to the high care teams own finances. This is all managed
change of gender process. spending across more than
Supporting
Detailed disclosure of our within NAB or Allianz for while protecting the customer’s
• Simplified banker instructions. 64,000 cards. The restriction privacy and keeping their customers
commitments, and performance can be removed by contacting assistance with their banking
• Standardised an enterprise against them, will continue to be or insurance. safety paramount.
us, with a 48-hour delay to Governance,
definition of sexuality and published in our AAP. unblock. During this period, With many customers limiting During the March COVID-19 conduct and
gender identity.
Customers experiencing a customer can choose movement to protect their lockdown in New Zealand, BNZ culture
Accessible banking vulnerability to cancel their request to health and safety this year, we launched dedicated phone
unblock their cards. recognised that it may become support for customers over Colleague
Our Accessibility Action It is our responsibility to take 70, with no more than two capability and
Plan (AAP) articulates our extra care with customers who • Introduction of a third-party difficult for some older customers
minutes wait time. Technology wellbeing
commitment to inclusion of our are experiencing vulnerability. interpreter service to support to access their money using a
our customers with limited passbook account. Our Retail recognises the caller’s phone
customers and colleagues with Our Customer Vulnerability Managing
English via Direct Servicing teams spoke with many of these number, matches it to their
disability. We are committed to Framework lays out how we do climate change
and NAB Assist. Since its customers to help them become account and, if they are over
embedding accessibility across this across our bank. It helps us:
launch in May, the service has comfortable using transaction 70, directs them to the special Data security,
NAB to ensure our environments,
• Build a deeper organisational supported ~3,300 customer accounts and the features of a service. Approximately 30,000 technology and
products and services and
understanding of customer conversations and enabled debit card so they could access calls were received by this line in innovation
ways of working are inclusive
vulnerability. our customers to speak to us their money without attending a the first four weeks with 3,000
of people with disability and
about their banking in their branch. Customers will continue moving to digital services (new
subsequently everyone. • Be more inclusive and
preferred language. to be able to use their passbook or reactivation). Given its success, How we act
supportive through better
We have driven progress against to withdraw money in a branch this was relaunched as the Digital
understanding the needs • Introduction of a quick exit
our AAP goals, embedding and up to $1,000 per week from Education Queue, aimed at over
of customers experiencing button on NAB’s domestic and
accessibility considerations Australia Post Offices. 50s. There have been over 66,000 Assurance
vulnerability. family violence support page,
within: customer interactions since
• Earn back trust by serving critical to support customers March, averaging 314 a day.
• The design, development customers well. in being able to quickly move
and review of products away from the browser if their Glossary
• Meet the requirements in the
and services. activity is being monitored.
Banking Code of Practice.14
MATERIAL
THEMES About this report
Disaster response In addition, we have focused on We have also empowered Leadership
This year, we have provided philanthropic options to help local our colleagues to help message
Supporting customers targeted support in response communities with immediate communities recover.
to significant natural disasters. relief, and support for long-term This includes:
This included drought and a recovery. We committed $5 Our 2020 snapshot
million to NAB’s Disaster Relief • Providing NAB colleagues
prolonged, devastating bushfire with an extra day of leave for
season impacting customers, Fund, allocated as follows:
2020, to be spent in bushfire
colleagues and communities • Approximately $3 million affected regions and towns 2020 scorecard
across Australia and severe distributed in small emergency to support with economic
From COVID-19 to fires, flood and drought, drought in New Zealand. grants to impacted colleagues recovery. Over 1,700 days of
and customers, helping leave have been used in 2020.
we’re helping customers get back on Our immediate response focused
cover personal costs such as
Our approach
on the safety of customers and • Leveraging our colleague
their feet. colleagues. A range of targeted temporary accommodation, volunteering program,
support options were provided: food and clothing and including a policy exemption
business costs such as allowing colleagues to
How we listen
• Commitment of $1 billion in reopening, covering damaged use their leave to support
concessional loans supporting property, and loss of stock. small businesses and
customers seeking to • $400,000 to the Australian colleagues in affected areas. Material themes
restructure existing facilities Red Cross’ Relief & Recovery Over 500 days of volunteering
Hardship assistance • Supported more than 6,500 to assist in repairs, restocking
customers with complex Fund, made through direct have been contributed to
Supporting
NAB Assist is the key point and re-opening for business. and matched fundraising bushfire recovery.
of contact when listening circumstances through the customers
Customer Support Hub. • Access to the company’s donations. • Working with Australian
and responding to the needs leading financial hardship
of customers experiencing • Launched the Employee • Approximately $150,000 Business Volunteers on a Governance,
assistance team, on the in donations made to local skilled volunteering program conduct and
circumstances of financial Support Hub, a confidential
ground in impacted charities in impacted regions to support the fire-affected culture
difficulty. It is our responsibility service specifically for NAB
communities to support via NAB’s Donate Local Funds community of Cobargo
to understand each customer’s colleagues, drawing on
customers. in NSW South, NSW, North with their community-led Colleague
circumstances and to review lessons learned from NAB’s
Customer Support Hub. • Up to a three-year deferral QLD, Victoria and South `Build Back Better’ resilience capability and
the factors impacting their
of interest and repayments Australia. program. wellbeing
financial health in the short term, • Continued to offer ‘hardship
while considering options and bonds’, an agreement for existing NAB loans. • $1.4 million remaining is Climate change is broadly Managing
developing a clear plan to help whereby for every four • A commitment not to foreclose committed to supporting climate change
acknowledged as extending the
them in the long term. This is payments a customer makes upon, or force the sale of longer-term recovery efforts,
inclusive of assistance beyond bushfire season and increasing
toward their lending product, collateral of existing loans including a resilience and Data security,
money and may include referrals the severity of bushfire events
NAB Assist will match the for up to three years. preparedness project with technology and
to social services support. Given within Australia. In recognition
fourth payment. NAB had the Australian Red Cross. innovation
• BNZ enacted drought of this we are actively working
the significance of COVID-19, the more than 700 active hardship provisions in New Zealand NAB also facilitated $774,000 to invest more in communities to
role of NAB Assist is even more bonds as at 30 September.
critical. This year, we have: including additional in donations for the Australian strengthen their natural resources How we act
• Supported 578 customers temporary overdraft approvals against climate risk, and help
Red Cross’ Relief & Recovery
• Received more than 170,000 with access to specialised and ability to defer scheduled them with disaster preparedness,
Fund through our branch
customer assistance requests, social services support. principal repayments. relief and recovery. Learn more in
network and internet banking. Assurance
up from an annual average • Confirmed we will no longer • Support and counselling the ‘Managing climate change’
of ~40,000. deal with unlicensed, fee- services, by making NAB’s section of this report.
• Significantly increased the charging debt management Employee Assistance Program
number of colleagues directly providers (see page 45). Glossary
available to customers.
supporting customers in
hardship, including retraining
colleagues from within NAB.You can also read
