Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Client Satisfaction
• Employee Engagement
• Environmental Sustainability
• Community Investment
• Supplier Diversity

Environmental Achievements

• Everett, Mass., facility awarded U.S. EPA Energy Star designation for sixth year in a row
• One Boston Place awarded “Office Building of the Year” by the Boston-area Building Owners and Managers Association (BOMA)
• Closed chemical and silver plate development process used in New Jersey printing facility; now uses only chemical-free prepress processes

Social Achievements

• Launched Community Partnership Program in 2008, including enriched support for employee volunteerism, charitable giving and matching gift program
• Achieved “Outstanding” CRA ratings in public evaluations conducted by regulatory agencies
• Developed baseline measures for employee engagement across the organization

Governance Achievements

• Created a Corporate Social Responsibility Committee comprised entirely of outside directors
• Provided greater business unit financial detail in shareholder reporting
• Defined five client satisfaction standard metrics to track and incorporate into surveys

Climate Goals & Targets

Environmental Challenges

• Integrating two heritage companies to create a cohesive CSR program
• Developing a company-wide approach to environmental considerations
• Measuring and reducing greenhouse gases

Mitigation Strategies

• Created a CSR Committee to review performance
• Developed an Environmental Sustainability Statement and set specific environmental objectives
• Implemented a Sustainability Capital Plan to reduce environmental impact
• Developed a Performance Management Program for global implementation

Supply Chain Management

Responsible Procurement

• Supplier Development Program (SDP) to foster diversity and competition
• Requesting CSR information from suppliers
• Increasing sourcing of post-consumer recycled products

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Socially screened investments ($600M AUM)
• Planned retail and institutional strategies promoting alternative energy sources and environmentally sound production methods

Awards & Recognition

• Everett, Mass., facility awarded U.S. EPA Energy Star designation for sixth year in a row
• One Boston Place awarded “Office Building of the Year” by the Boston-area Building Owners and Managers Association (BOMA)

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Achieved ENERGY STAR designation for seven of its largest U.S. facilities.
• Reduced energy consumption through capital improvements and energy management programs.
• Increased use of recycled materials in construction and operations.
• Invested in wind power for five key facilities, supplying approximately 25% of domestic electrical consumption with wind power equivalent in 2009.
• Expanded recycling programs across major facilities.

Social Achievements

• Launched a global Performance Management Program.
• Achieved a 76% participation rate in the companywide employee engagement survey.
• Launched the Community Partnership program, supporting employee volunteering and fundraising with corporate matching, raising $11.2 million in pledges (48% increase over 2007).
• Exceeded spending goal on priority vendors (minority- and women-owned businesses) by 13%, reaching 17% of total spending.

Governance Achievements

• Published its first CSR report.
• Exceeded 6 of 8 benchmarks measuring employee attitudes toward compliance and ethics.
• Implemented a comprehensive plan to make operations more environmentally friendly.
• Re-visited policies on political contributions and lobbying to ensure adherence to laws and avoid any appearance of impropriety.

Climate Goals & Targets

Environmental Challenges

• Global financial crisis impacting clients' resources and operations.
• Difficult economic environment impacting employee wellbeing and community needs.
• Decreased total spending impacting supplier diversity goals.

Mitigation Strategies

• Provided clients with high levels of service and support.
• Implemented Wellbeing, LifeWorks Work/Life, and Employee Assistance programs to support employees.
• Refined philanthropic focus on financial stability for low-income individuals and families.
• Maintained focus on priority vendors despite reduced total spending.

Supply Chain Management

Supplier Audits: 48% of suppliers provided CSR information in 2008; goal to review all major suppliers in 2009.

Responsible Procurement

• Evaluation of vendors' CSR programs as part of the bidding process.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Mellon First Principle Fund
• Newton SRI fund (UK)
• Dreyfus Global Sustainability Fund
• Dreyfus Third Century Fund

Environmental Metrics

ESG Focus Areas

• Employee engagement
• Community support
• Environmental sustainability
• Governance
• Business

Environmental Achievements

• Achieved 11 ENERGY STAR awards covering 5.6 million square feet; estimated baseline reduction of more than 31 million kWh of greenhouse gas emissions.
• Increased green purchasing
• Expanded recycling programs
• Reduced energy consumption through capital improvements
• Purchase of renewable energy credits equivalent to more than 96 million kilowatt-hours of green power, covering 29% of 2009 global electricity usage.

Social Achievements

• Achieved first-quartile employee engagement a year ahead of goal.
• Increased employee philanthropic giving and volunteerism through Community Partnership Program (26,000 volunteer hours, $12.8 million in donations including company match).
• Expanded affinity networks globally, with more than 6,000 employees participating in events.
• Maintained satisfactory or better CRA ratings.

Governance Achievements

• Established a board committee to oversee CSR activities.
• Published significantly more comprehensive CSR reports each year.
• Updated political policies; developed and published Political Activity Statement; established CSR Committee review.
• Completed all eight benchmarks of the ethics and compliance diagnostic survey.

Climate Goals & Targets

Environmental Challenges

• Diminished appetite for equity investments in 2009 affecting SRI funds.
• Decentralized supplier management making CSR evaluation challenging.
• Varying government regulations and policies on environmental issues and labor management outside the U.S. and Europe.

Mitigation Strategies

• Introduced new risk capabilities allowing clients to better understand portfolio risks.
• Conducted a pilot CSR review of top 95 suppliers (representing 50% of total corporate spend) to establish a baseline for future strategies.
• Developed a plan to integrate ESG criteria into supplier management processes in 2010.
• Implemented online Performance Management Program globally for consistent approach to goal setting, development planning, reviews, and appraisals.

Supply Chain Management

Supplier Audits: 95 top suppliers reviewed (representing 50% of 2008 total corporate spend).

Responsible Procurement

• CSR review of top suppliers.
• Sustainability-driven survey of corporate travel partners.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services (e.g., carbon trading platform).

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Socially responsible investment vehicles
• Carbon trading platform
• Ever-Green program (paperless account management)
• myedocumentsuite.com (electronic delivery of brokerage account statements)

Awards & Recognition

• Numerous awards for employee engagement, diversity and inclusion, and community partnership.

Environmental Metrics

ESG Focus Areas

• Ethics and transparency
• Operational reliability
• Stakeholder engagement
• Talent management
• Environmental sustainability
• Community support
• Supplier diversity
• Diversity and inclusion
• Responsible financing

Environmental Achievements

• Reduced internal copy paper consumption by 28% relative to 2008 baseline
• On track to achieve a 10% greenhouse gas emissions reduction in U.S. tracked offices real estate portfolio (excluding data centers) from 2008 to 2016
• Offset 75% of U.S. electricity consumption through renewable energy investments and more than 50% of EMEA energy consumption through direct energy purchases
• Achieved a 2010 CDP score of 81, up 15 points from 2009 score

Social Achievements

• Employee engagement pulse check survey showed 66% positive engagement (up from 65% in 2010 and 63% in 2007)
• 46% of employees had a documented development plan (up from 25% in 2010)
• 46% increase over the past three years of executive women on three most senior management committees
• Grants supported 450 vulnerable youths, with 81% obtaining high school diploma/GED and/or employment
• Exceeded goal of spending at least 20% of competitive spend with diverse suppliers

Governance Achievements

• Risk appetite principles reviewed and approved by the board
• Implemented a revised performance management rating model
• Corporate Social Responsibility Committee of the board regularly reviews program and progress on long-term commitments

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown and legislative uncertainty reduced near-term demand for carbon trading services
• Difficult revenue growth in the financial services industry due to economic slowdown, political uncertainties, changing market requirements, and regulatory demands
• Litigation involving foreign exchange services
• Need to address rising expenses leading to job reductions
• Increased regulatory scrutiny and costs

Mitigation Strategies

• Moved away from additional carbon trading business in 2012
• Renewed commitment to deepening client relationships, driving operational excellence, demonstrating commitment to teamwork and innovation, and being accountable and responsible
• Vigorously defending allegations of improper foreign exchange rates
• Minimized impact of job reductions through natural turnover and hiring freeze
• Ongoing operational and technology efficiency efforts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• High-quality supplier selection and contract development
• Supplier risk assessment program
• Supplier Development Program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001 (for several EMEA facilities), LEED (multiple certifications)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Socially Responsible Investing (SRI) funds
• ESG screening capabilities
• Global Environmental Markets (GEM) platform

Awards & Recognition

• Numerous awards for client satisfaction, diversity and inclusion, and community involvement (listed in report)

Environmental Metrics

ESG Focus Areas

• Excellent talent
• Ethics and transparency
• Operational reliability and effectiveness
• Responsible investments
• Strong governance
• Community commitment

Environmental Achievements

• Reduced Priority One incidents (critical systems incidents posing major risks) from 0.05 to 0.04 per billion USD assets under custody/administration
• Reduced U.S. internal copy paper usage by 38 percent, conserving more than 340 million pieces of paper
• 72.2 percent offset of global electricity consumption through renewable energy and credits
• 31.5 percent reduction from a 2008 baseline in Scope 1 and Scope 2 carbon emissions for U.S. tracked real estate portfolio (excluding data centers)
• Saved 52 million kWh of energy globally through optimization

Social Achievements

• 75 percent of employees have personal development plans (up from 24 percent in 2010)
• Delivered 1.5 million hours of training worldwide (20 percent more than in 2011)
• 52 percent of most senior appointments globally were women or people from diverse racial or ethnic backgrounds
• Overall employee engagement was 77 percent positive (up from 65 percent in 2010)
• Company-wide retention rate was 91.1 percent
• Corporate, Foundation and employee cash giving totaled $33.6 million
• Employees volunteered 84,000 hours
• Positive education and employment outcomes reported for 658 vulnerable youth in Pathways Program

Governance Achievements

• Listed on the FTSE4Good CSR rating index
• Received highest-ever score from the Carbon Disclosure Project (CDP), ranking second among industry peers
• Developed an engagement strategy for external evaluations
• Enhanced Incident Reporting system to streamline reporting of suspicious activity
• Developed and launched several new Ethics and Compliance employee training modules

Climate Goals & Targets

Environmental Challenges

• Maintaining business continuity during major challenges like Hurricane Sandy
• Ensuring employee awareness and commitment to ethical practices
• Meeting evolving stakeholder needs and expectations
• Managing the growing volume of ethically motivated investments
• Reducing energy consumption in data centers

Mitigation Strategies

• Robust business continuity systems and cross-regional recovery strategies
• New Ethics and Compliance training modules and enhanced reporting systems
• Substantive stakeholder engagement and ongoing dialogue
• SRI education and training programs and product offerings
• Power Usage Effectiveness (PUE) program and technology efficiency initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• High-quality supplier selection process considering quality, innovation, performance, and cost-effectiveness
• Incorporating ESG considerations into supplier management
• Supplier contracts with guidelines
• Assessment program to manage risks in vendor relationships
• Advancing responsible practices in areas with direct ESG impact
• Supplier Development Program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001 (EMEA Regional Headquarters)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ESG screening of client portfolios
• Global Collateral Services
• Catastrophe Bonds
• Project finance services
• Environmental Trusts

Awards & Recognition

• Best Transactional Bank for Financial Institutions in Europe, Middle East and Africa (EMEA Finance)
• Best Buddies’ Champion of Inclusion award
• New York Women’s Chamber of Commerce Corporate Partner of the Year

Environmental Metrics

ESG Focus Areas

• Market Integrity
• Our People
• Our World

Environmental Achievements

• Reduced greenhouse gas emissions by 34% (Scope 1 and 2) from 2008 baseline for U.S. tracked properties (excluding data centers).
• Reached nearly $19 million in total savings from the Enterprise Data Center’s Power Usage Effectiveness (PUE) program.
• Reduced office paper use in the U.S. by 42% compared to the 2008 baseline.

Social Achievements

• Launched BNY Mellon University (BKU), a learning and development platform.
• Overall employee engagement score increased to 78%, up from 77%.
• Donated $34.4 million to charitable organizations.
• Logged 105,000 hours of employee volunteer time.
• 35% of global hires and promotions at the Managing Director level and above were women or people from diverse racial or ethnic backgrounds.
• 50% of global hires and promotions at the Vice President level were women or people from diverse racial or ethnic backgrounds.

Governance Achievements

• Improved critical system availability, reducing the frequency of client-impacting events by 20%.
• Developed a Supplier Relationship Management program.
• Included in the Dow Jones Sustainability Index—North America, FTSE4Good, and CDP leadership indices.

Climate Goals & Targets

Environmental Challenges

• Communicating the company's social responsibility efforts, especially in less obvious areas like investments, training, operations, and governance.
• Scaling diversity and inclusion efforts at local levels across different countries and cultures.
• Addressing the slower pace of hiring at senior levels in the industry.

Mitigation Strategies

• Improved communications emphasizing the material impact of social responsibility on society.
• Refreshed global diversity and inclusion strategy with accountability measures for executive and operating committee members.
• Ongoing awareness and education programs on the business case for diversity and tools to address unconscious biases.

Supply Chain Management

Supplier Audits: 68 suppliers requested Human Rights Certification letter

Responsible Procurement

• Supplier Code of Conduct
• Supplier Relationship Management (SRM) program
• Human rights compliance certification
• Supplier Development program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001

Sustainable Products & Innovation

• ESG screening capabilities and tools for Asset Servicing clients
• SRI funds and ESG products offered by Investment Management boutiques

Awards & Recognition

• Dow Jones Sustainability Index—North America
• FTSE4Good
• CDP leadership indices

Environmental Metrics

ESG Focus Areas

• Market Integrity
• Our People
• Our World

Environmental Achievements

• 32.4% reduction in Scope 1 and 2 carbon emissions (surpassing the target of 10% reduction by 2016, against a 2008 baseline for the global-tracked real estate portfolio)
• 63% of global electricity usage offset by alternative energy

Social Achievements

• $38.1 million total company and employee cash donations (a $3.7 million year-over-year increase)
• 127,000 total employee volunteer hours (a 20% year-over-year increase)
• Launched two new boutique-led ESG products in Investment Management

Governance Achievements

• Inclusion in the Dow Jones Sustainability World Index and Dow Jones Sustainability North America Index
• Perfect scores for climate change disclosure and performance in CDP’s S&P 500 Climate Performance Leadership Index 2014 and its S&P 500 Climate Disclosure Leadership Index 2014

Climate Goals & Targets

Environmental Challenges

• Cybersecurity threats
• Maintaining high performance in a volatile global environment
• Evolving regulatory environment

Mitigation Strategies

• Strengthening risk culture and framework
• Investing in new technologies and services to reduce risk
• Engaging in the political process to represent stakeholder concerns

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Human Rights Standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: LEED, ISO 14001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

BNY Mellon's initiatives contribute to these goals through investments in renewable energy, reduction of greenhouse gas emissions, and support for sustainable development.

Sustainable Products & Innovation

• ESG investment strategies (positive screening, negative screening, full ESG integration)
• Socially Responsible Investment (SRI) funds

Awards & Recognition

• Dow Jones Sustainability World Index
• Dow Jones Sustainability North America Index
• CDP’s S&P 500 Climate Disclosure Leadership Index
• CDP’s S&P 500 Climate Performance Leadership Index

Environmental Metrics

ESG Focus Areas

• Market Integrity
• Our People
• Our World

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 42% against a 2008 baseline for global tracked operations (excluding data centers), exceeding the 2020 corporate goal of a 40% reduction.
• Achieved carbon neutrality for Scope 1 and 2 GHG emissions (including data centers) and Scope 3 business travel emissions.

Social Achievements

• Launched Social Finance program.
• Increased employee participation in volunteering by 10%, reaching 140,000 hours.
• Improved overall employee engagement score to 77%, a 1% increase from the previous survey.

Governance Achievements

• Integrated long-term CSR goals into the performance goals of senior leaders.
• Maintained a perfect CDP score for climate change disclosure and performance for three consecutive years.
• Included in the Dow Jones Sustainability World Index for a second consecutive year.

Climate Goals & Targets

Environmental Challenges

• Maintaining operational reliability and effectiveness in a complex and evolving regulatory environment.
• Addressing climate change issues and their potential impacts on the business.
• Scaling social finance initiatives to achieve broader impact.

Mitigation Strategies

• Strengthened risk management framework and risk culture.
• Invested in technology enhancements and business continuity planning.
• Developed a comprehensive social finance strategy and engaged in industry dialogue.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Third-Party Governance program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, LEED, ENERGY STAR

UN Sustainable Development Goals

• Goal 16 (Peace, Justice and Strong Institutions)

Partnership with UN Foundation to advance rule of law.

Sustainable Products & Innovation

• Mellon Capital Management’s Carbon Efficiency Strategy

Awards & Recognition

• Dow Jones Sustainability World Index
• CDP Climate A List
• FTSE4Good Global Benchmark Index

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Decreased profitability due to higher effective tax rate and decrease in intra-group activity.
• Decrease in net fee and commission income due to decreased business activity of main intra-group client.
• Negative interest rates in major currencies.

Mitigation Strategies

• Active management of Investment Portfolio and re-charge of negative interest to clients to increase net interest income.
• Cost control to mitigate negative trends in fees and commissions.
• Implementation of re-charge of negative interest to clients.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Risk Management and Reliability
• Strong Governance
• Environmental Management
• Leadership and Development
• Engagement and Wellbeing
• Diversity and Inclusion
• Social Investing
• Community Commitment

Environmental Achievements

• Maintained carbon neutral status for Scope 1 and 2 GHG emissions including data centers, as well as Scope 3 business travel emissions.
• Reduced emissions by 52% from 2008 baseline (excluding data centers).
• Named to CDP Climate A List for climate management for the fifth consecutive year.
• Reduced global water consumption by 11.4% from 2015 baseline (tracked facilities only).
• Diverted 73% of waste from landfills.

Social Achievements

• Increased U.S. ethnically/racially diverse talent at all levels.
• Improved engagement with global wellbeing platform by 70%.
• Contributed $41.7 million to support communities.
• Employees volunteered nearly 143,000 hours.
• Launched/relaunched three responsible investment fund and strategy offerings.

Governance Achievements

• Contacted top 20 investors for governance discussions, engaging with nine.
• Educated legislators, regulators, and policymakers on BNY Mellon’s business model.
• Conducted a gender pay study finding that, on average, women are paid 99% of what men are paid (accounting for certain factors).

Climate Goals & Targets

Environmental Challenges

• Challenges in achieving 2020 goals in some areas.
• Leadership category in employee engagement survey remained flat, four points below industry benchmarks.
• Gender representation declined globally, mostly at senior levels.
• Overall community support was primarily flat compared to 2016.

Mitigation Strategies

• Adjusted long-term CSR goals and KPIs to better align with business and corporate strategies.
• Investing in developing strong managerial capabilities through formal and on-the-job training.
• Continuing to attract and retain diverse talent, integrating diversity and inclusion into businesses.
• Increasing philanthropic impact, including skills-based volunteering and international programs.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Human rights policies
• Supplier Diversity Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001

Third-party Assurance: Bureau Veritas North America, Inc. (limited assurance for GHG emissions)

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

BNY Mellon’s CSR activities contribute to the UN’s Sustainable Development Agenda across these five key trends.

Sustainable Products & Innovation

• Responsible investment products
• Green bonds
• Social impact bonds
• ABLE Savings Plan Solution

Awards & Recognition

• CDP Climate A List (five consecutive years)
• Dow Jones Sustainability World Index
• FTSE4Good Global Benchmark Index
• MSCI ESG “A” rating

Environmental Metrics

ESG Focus Areas

• Risk Management and Reliability
• Social Investing
• Strong Governance
• Engagement and Wellbeing
• Diversity and Inclusion
• Leadership and Development
• Environmental Management
• Community Commitment

Environmental Achievements

• Achieved carbon neutrality in operations for the fourth year in a row.
• Reduced GHG emissions by 55% from a 2008 baseline.
• Purchased renewable energy products equivalent to 100% of electricity used.

Social Achievements

• Extended paid parental leave for U.S. employees from 12 to 16 weeks.
• Increased minimum wage for all U.S.-based employees to $15 per hour.
• Launched new ESG analytics capability in Asset Servicing.
• Launched several new responsible investment (RI) strategies and two new model portfolios.

Governance Achievements

• Updated Corporate Governance Guidelines to include sexual orientation in Board diversity criteria.
• Reached out to top investors for governance discussions.
• Educated legislators, regulators, and policymakers on business model.

Climate Goals & Targets

Environmental Challenges

• Maintaining a strong understanding of clients’ needs and adapting to transformational change in the industry.
• Heightened public awareness of how business ethics affect responsible economic growth.
• Increasingly intense weather events and heightening demand from investors for stronger ESG strategies and performance.

Mitigation Strategies

• Implemented integrated risk management practices through a Three Lines of Defense model.
• Updated Risk Culture Principles to reflect current market conditions.
• Launched a multiyear program to modernize infrastructure and strengthen business service resiliency.
• Implemented a comprehensive approach to addressing climate-related risks and opportunities.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Human rights policies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO/IEC 27001:2013 (Information Security Management System)

Third-party Assurance: Bureau Veritas North America, Inc. (limited assurance on GHG emissions)

Sustainable Products & Innovation

• ESG analytics tool
• Responsible investment products

Awards & Recognition

• Dow Jones Sustainability World Index (DJSI) for 5 consecutive years
• CDP Climate A List for 6 consecutive years
• FTSE4Good Global Benchmark Index for 7 consecutive years
• Bloomberg Gender-Equality Index for 4 consecutive years
• Perfect score on the Corporate Equality Index for LGBTQ workplace equality

Environmental Metrics

ESG Focus Areas

• Culture & Purpose
• Responsible Business
• Global Citizenship

Environmental Achievements

• Maintained zero net carbon emissions for the fifth consecutive year (Scope 1 and Scope 2 greenhouse gas emissions including our data centers, as well as Scope 3 business travel emissions)
• 100% renewable electricity for our consumption and our procurement of renewable electricity credits

Social Achievements

• Paid women more than 99% of what men are paid, globally
• Delivered 690,000 learning hours to employees annually to advance professional skills and capabilities
• Contributed $33.4 million in annual support to communities around the world
• 48% Ethnic/Racial minorities among U.S. new hires
• Provided 16 weeks paid parental leave for U.S. employees
• Committed over $20 million of aid to nonprofit partners across the globe to deliver relief from the COVID-19 pandemic and strengthen the wellbeing of underrepresented communities (as of June 2020)

Governance Achievements

• Continue to engage a slate of candidates with varying backgrounds, experience and perspectives to maintain diversity in the composition of the corporate board of directors
• Achieved a perfect score on the Human Rights Campaign Foundation Corporate Equality Index

Climate Goals & Targets

Environmental Challenges

• Climate change creating unprecedented physical, environmental and financial risks
• Social injustice and racial inequality
• Global repercussions of the COVID-19 pandemic

Mitigation Strategies

• Committed to supporting the Task Force on Climate-related Financial Disclosures (TCFD) framework
• Directed non-essential staff to work from home during the COVID-19 pandemic
• Focused on ensuring employees felt valued and engaged during the pandemic
• Announced no reduction in staff in 2020
• Committed over $20 million in aid to address the COVID-19 pandemic and support underrepresented communities
• Made significant commitments to support workforce training and upskilling programs for minority groups and communities impacted by the economic downturn, and to organizations working on issues of justice reform and racial equality.

Supply Chain Management

Responsible Procurement

• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Australian brush fires, flooded streets in Venice

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Dow Jones Sustainability World Index (DJSI) 6 consecutive years
• CDP Climate A List for climate management leadership 7 consecutive years
• FTSE4Good Global Benchmark Index 8 consecutive years
• Corporate Equality Index for LGBTQ workplace equality, Human Rights Campaign Foundation 13 consecutive years
• Bloomberg Gender-Equality Index 5 consecutive years

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, Equity and Inclusion
• Risk Management
• Technology
• Governance

Environmental Achievements

• Achieved carbon neutrality in our operations for the sixth consecutive year.
• Reduced Scope 1 and 2 greenhouse gas (GHG) emissions relative to our 2018 baseline, including data centers, an incremental 16% in 2020
• Achieved paper neutrality via a certified offset program for the fourth year through the planting of 100,000 trees

Social Achievements

• Continued delivering pay equity for both women and U.S. minority employees with total actual compensation of more than 100% of their respective counterparts, on average.
• Expanded our representation goals and accountability framework to step up progress in our most underrepresented ethnic/racial talent populations by year-end 2023.
• Achieved 100% on our Disability Equality Index for creating a more inclusive workplace.
• Pledged $20 million for multiyear educational and workforce development programming to academic and job training organizations.
• Directed more than $1.5 million in Equality grants and conducted an Equality Matching Gift program.
• Facilitated nearly $6 million in company grants and raised nearly $2.2 million in employee contributions during the COVID-19 Relief Campaign.

Governance Achievements

• Incorporated ESG-related Executive Committee goals, personally by each member, into performance measures.
• Developed our ESG Data Analytics Application, a cloud-based app that mass-customizes investment portfolios to clients’ individual ESG factor preferences.

Climate Goals & Targets

Environmental Challenges

• Systemic racial disparities
• COVID-19 pandemic and concurrent economic fallout disproportionately affected people of color
• Climate change impacts
• Cybersecurity threats
• Talent acquisition

Mitigation Strategies

• Strengthened commitment to diversity, equity and inclusion.
• Offered open, internal forums to foster meaningful dialogue.
• Engaged employees through an Equality Campaign Matching Giving Program.
• Directed more than $1.5 million to organizations that address social justice programming and advocacy.
• Implemented a Holistic Risk Management strategy with 20 priority initiatives.
• Enhanced global risk frameworks and implemented the Task Force for Climate-related Financial Disclosures (TCFD) recommendations.
• Investing in advanced technology to protect data, including encryption techniques.

Supply Chain Management

Responsible Procurement

• Updated and expanded Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards Comprehensive option, TCFD Guidelines

Certifications: ISO 27001:2013

Third-party Assurance: APEX Companies LLC (limited assurance for GHG emissions)

Sustainable Products & Innovation

• ESG Data Analytics application

Awards & Recognition

• Dow Jones Sustainability North America Index (DJSI) 7 consecutive years
• CDP A List for climate management leadership 8 consecutive years
• FTSE4Good Global Benchmark Index 9 consecutive years
• Perfect score on the Corporate Equality Index for LGBTQ workplace equality, Human Rights Campaign Foundation 14 consecutive years
• Bloomberg Gender-Equality Index 6 consecutive years
• Gartner® Eye on Innovation Award for financial services, Americas

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Governance
• Risk Management
• Responsible Investment
• Environmental Sustainability
• Supply Chain
• Human Rights

Environmental Achievements

• Achieved carbon neutrality in operations for the seventh consecutive year
• Achieved paper neutrality in operations globally in 2021
• Reduced GHG emissions by 12% from 2018 baseline for Scopes 1 & 2 (including data centers)

Social Achievements

• Increased women among new hires, senior leaders globally and Board of Directors
• Increased ethnic/racial representation in the U.S. workforce among senior and mid-level leaders and on the Board
• Graduated the first cohort of 23 diverse, high-potential candidates from the Executive Sponsorship program
• Achieved 100% on the Disability Equality Index
• Ranked among the top 20 Fortune 500 Companies on Diversity and Inclusion
• Achieved 100% on the HRC Corporate Equality Index
• Introduced global caregiver leave (10 days of paid leave)

Governance Achievements

• 36% women on the board of directors
• 96% stockholder approval on say-on-pay during the prior three years
• Reached out to stockholders representing over 65% of the company’s outstanding shares

Climate Goals & Targets

Environmental Challenges

• Climate-related physical and transition risks
• Supply chain disruptions
• Employee turnover

Mitigation Strategies

• Enhanced global risk frameworks to incorporate climate-related risks
• Developed alternative sourcing strategies
• Implemented a global retention plan
• Expanded resources for employee wellbeing

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wildfires
• Droughts

Transition Risks

• Policy changes
• Regulatory changes
• Technological changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards Comprehensive option

Certifications: ISO/IEC 27001:2013

Third-party Assurance: APEX Companies LLC (limited assurance for GHG emissions)

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 17: Partnerships for the Goals

Not disclosed

Sustainable Products & Innovation

• ESG Data Analytics tool

Awards & Recognition

• Dow Jones Sustainability North America Index
• CDP A List for climate management
• FTSE4Good Global Benchmark Index
• Perfect score on the Corporate Equality Index
• Bloomberg Gender-Equality Index

Environmental Metrics

ESG Focus Areas

• Tax Compliance
• Corporate Responsibility
• Sustainable Development
• Ethical Business Practices

Social Achievements

• The company takes into account social interests in its activities and avoids all forms of aggressive tax planning.

Governance Achievements

• Implemented tax processes and procedures to reduce tax risks and standardize tasks.
• Complied with the BNY Mellon Global Tax Strategy, which defines tax compliance principles, tax risk management, and cooperation with tax authorities.
• Ensured timely submission of all tax returns and met tax payment deadlines.
• Maintained properly kept documentation for tax settlements.
• Obtained opinions from external tax advisors for ambiguous issues.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• An Inclusive Economy
• Sustainable Solutions
• Trust
• Environment
• Responsible Business
• People and Communities

Environmental Achievements

• Achieved carbon neutrality in operations for nine consecutive years.
• Reduced water consumption by 41% relative to a 2015 baseline.
• Achieved 81% landfill diversion rate.
• 100% of electricity used powered by renewable sources (through RECs).

Social Achievements

• Organized a $500 million debt issuance led entirely by women-, minority-, and veteran-owned financial institutions.
• Launched BK Shares program granting shares to 45,000 employees.
• Achieved 100% completion rate on annual Ethics and Code of Conduct training.
• Increased overall representation of individuals from underrepresented ethnic/racial backgrounds among U.S.-based employees to 39%.

Governance Achievements

• Following the election of directors at the 2024 Annual Meeting of Stockholders, 45% of directors are women and an additional 27% are diverse on the basis of race or ethnicity.
• 91% Board independence.

Climate Goals & Targets

Environmental Challenges

• Data accuracy and availability remain a challenge in the industry for financed emissions calculations.
• Evolving regulatory landscape for climate and ESG disclosure and risk management.
• Potential for strategic and reputational risks related to climate change.
• Cybersecurity threats.

Mitigation Strategies

• Developed a suite of climate-specific risk assessment tools and processes.
• Implemented a robust PI incident management process.
• Maintains a Privacy Regulatory Implementation Program.
• Invests in advanced technology to protect data, including encryption techniques.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wildfires
• Heatwaves
• Droughts
• Hurricanes
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Changes in investor and consumer sentiment

Opportunities

• Development of energy-efficient products and services
• Growth in sustainable finance

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 27001/2

Third-party Assurance: Apex Companies, LLC (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

BNY's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• SPARKSM shares
• Women’s Opportunity ETF (BKWO)
• BOLD® shares
• Sustainability-aligned securities lending
• ESG-focused investing application in LiquidityDirectSM

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI) inclusion
• FTSE4Good Global Benchmark Index
• Human Rights Campaign Foundation’s Corporate Equality Index
• Bloomberg Gender-Equality Index
• FORTUNE magazine’s World’s Most Admired Companies
• JUST 100