Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Leadership
• Corporate Governance
• Cultivating a Culture of Social Responsibility
• Stakeholder Engagement
• Sustainable Banking and Investing
• Human Rights
• Climate Risk

Environmental Achievements

• Achieved carbon neutrality for the second year
• Powered our corporate offices with 100% clean energy
• Provided approximately $264M in Property Assessed Clean Energy (PACE) financing
• Raised nearly $30,000 for The Solutions Project from our Donate the Change® program

Social Achievements

• Met and exceeded our $700M 2X Impact Goal by $250M in impact lending ahead of schedule
• Increased our B Corp® Impact Score from 87 to 115
• Made $105M in CRA-related investments
• Completed $160M loans, resulting in the preservation of 580 units of affordable housing
• Held 109 financial seminars totaling 384 service hours for more than 1,700 low and middle-income individuals
• Launched the Hate Is Not Charitable campaign

Governance Achievements

• Formalized Board oversight of CSR
• Established an internal cross-functional CSR Committee
• Formalized and documented environmental, sustainable, social and governance programs
• Recognized with NACD NXT: Small Cap award for board diversity

Climate Goals & Targets

Environmental Challenges

• Climate change
• Need to increase transparency around social and environmental impact

Mitigation Strategies

• Joined the Collective Commitment to Climate Action
• Joined the Partnership for Carbon Accounting Financials (PCAF)
• Setting Science Based Targets
• Measuring the environmental impact of its loan portfolio
• Offering clients opportunities to divest from carbon risks and invest in positive impact investments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Prioritization of qualified women-owned, minority-owned, LGBTQ+-owned, and other small businesses
• Prioritization of suppliers utilizing union labor

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Growth in PACE financing, sustainable and socially responsible businesses

Reporting Standards

Frameworks Used: GRI, PCAF, UNPRB, Science Based Targets initiative

Certifications: B Corp®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligned with multiple SDGs, reflective of endorsement of UN Principles for Responsible Banking

Sustainable Products & Innovation

• Fossil Fuel Free Portfolio
• PACE financing

Awards & Recognition

• NACD NXT — Small Cap Board Diversity
• Forbes 2019 — Best-in-State Banks, California
• Euromoney Awards for Excellence 2019 — Best Bank in North America for CSR
• Real Leaders 2019 — Top 100 Impact Companies
• B Corp® — Best for the World Honoree

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Justice
• Governance

Environmental Achievements

• Achieved net-zero operations for the fourth consecutive year through renewable energy and carbon offsets.
• Published inaugural Partnership for Carbon Accounting Financials (PCAF) report for 2019 and 2020, detailing climate impacts of lending portfolio.
• Published 2020 full scope GHG emissions.

Social Achievements

• Lending portfolio grew to $3.8B while maintaining alignment with mission and lending requirements.
• Funded $893M in new Climate Protection loans and investments (63% increase year-over-year).
• Maintained commitment not to do business with fossil fuel companies, payday lenders, private prisons, or other companies whose business objectives are contrary to its mission.
• Significant growth in lending portfolio for workforce housing.

Governance Achievements

• Early adoption of PCAF reporting standard.
• Initiated and chairs the North America PCAF group and co-founded the PCAF Global Partnership.

Climate Goals & Targets

Environmental Challenges

• Difficulty in retrieving data required from legacy systems for complete PCAF reporting.
• Variable data quality scores due to data limitations from legacy systems.
• Growing financed emissions associated with business loans.

Mitigation Strategies

• Working to improve data availability and quality scores over time.
• Seeking to better understand environmental impacts of business loans and work to reduce these impacts.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PCAF, GHG Protocol Corporate Accounting Standard

Sustainable Products & Innovation

• PACE financing

Environmental Metrics

ESG Focus Areas

• Board Diversity
• Climate Change
• Forced Labor/Human Trafficking

Social Achievements

• Engaged with several companies on board diversity (Liberty Broadband Corp., ANI Pharmaceuticals, Inc., SeaWorld Entertainment Inc.)
• Engaged with several companies on climate change (FedEx Corporation, Uber Technologies, Inc., Hertz, General Electric, Amazon.com, Inc., Paypal Holdings, Inc.)
• Engaged with several companies on forced labor (ArcherDaniels-Midland Company, The Hershey Company, L Brands, Inc., and Mondelez International).

Governance Achievements

• Actively promoted sound governance practices at portfolio companies.
• Assertive approach of promoting best practices and eliminating practices inimical to long-term growth.
• Filed shareholder proposals on various issues.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNPRI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Economic Justice
• Environmental Justice
• Racial Justice
• Workers' Rights

Environmental Achievements

• Achieved net zero operations for the fifth year in a row.
• Became the first U.S. bank to set a net zero climate target approved by the Science Based Targets initiative (SBTi).
• Expanded solar project lending portfolio and PACE financing programs.
• Published second PCAF disclosure with enhanced asset class details.
• Reduced total Scope 1 and 2 absolute emissions from 47,410 to 28,391 tons of CO2e.

Social Achievements

• Formalized diversity, equity, and inclusion (DEI) action plan.
• Achieved 100% on HRC Corporate Equality Index for the second year in a row.
• Improved gender representation by 11% for executive management and 10% for senior management.
• Improved racial and ethnic representation by 11% for executive management and senior management.
• Maintained a workforce that identifies as 60% women and 60% people of color.
• Launched ResponsiFunds, a suite of ESG investment products.

Governance Achievements

• Enhanced Board gender diversity by about 10%.
• Achieved 43% female board member representation.
• Achieved 29% racial/ethnic minority board member representation.
• Executive compensation is tied to CSR goals.

Climate Goals & Targets

Environmental Challenges

• Increase in employee turnover in 2021.
• Insufficient data to calculate avoided emissions for portions of the securities and PACE portfolio.

Mitigation Strategies

• Tracking turnover metric and managing it through strong corporate culture, fair compensation, benefits, development opportunities, and corporate purpose.
• Improved data quality in 2021, achieving a data quality score of 4.3 (compared to 4.8 in 2020).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Review of third-party ESG scores
• Prioritization of women-owned, minority-owned, and LGBTQ+-owned businesses

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of natural disasters
• Sea level rise
• Extreme temperatures

Transition Risks

• Regulatory changes
• Market shifts
• Reduced customer operating income or asset value

Opportunities

• Growth in solar and energy efficiency financing

Reporting Standards

Frameworks Used: SASB, PCAF, TCFD, UNGC, GRI (implied)

Certifications: B Corp®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Amalgamated's mission and activities align with these SDGs through various initiatives detailed in the report.

Sustainable Products & Innovation

• ResponsiFunds (ESG investment products)
• Fossil Fuel Free investment portfolio
• Solar and energy efficiency financing
• PACE financing

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Environment
• Social
• Governance

Environmental Achievements

• Achieved 100% renewable-energy use in direct operations and net zero for operations for the sixth year in a row.

Social Achievements

• Hired Jacqueline Rosa as Chief Diversity, Equity and Inclusion Officer.
• Achieved 100% on Human Rights Campaign Foundation’s Corporate Equality Index.
• Majority of philanthropy through the Amalgamated Charitable Foundation was to racial justice, climate and economic equity.
• Engaged companies held by Longview Funds and ResponsiFunds on investor issues relating to climate risk, workplace diversity and equity.

Governance Achievements

• Conducted the firm’s first materiality assessment for environmental, social and governance risks.

Climate Goals & Targets

Environmental Challenges

• Higher levels of regrettable turnover in 2022 due to competition for talent.
• Managing climate-related risks (transitional, physical, and regulatory).

Mitigation Strategies

• Commitment to tracking turnover and managing it through corporate culture, compensation, benefits, development opportunities, and corporate purpose.
• Embedding climate risk into business strategy and risk management programs; conducting ESG materiality assessment; setting science-based targets; engaging with top emitters; exploring emissions removal investments.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct considering women-owned, minority-owned, LGBTQ+-owned, and unionized businesses; risk assessment of vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of natural disasters, sea levels rising, and extreme temperatures

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services; emissions removal investments

Reporting Standards

Frameworks Used: IFRS Foundation Sustainability Accounting Standards Board (SASB) Standards for the Commercial Banks Industry, TCFD, UN SDGs, UN Principles for Responsible Banking

UN Sustainable Development Goals

• 4
• 5
• 7
• 8
• 10
• 11
• 12
• 13
• 17

Alignment with SDGs detailed in the UN SDG Index section of the report.

Sustainable Products & Innovation

• ResponsiFunds (ESG impact investment products); PACE financing

Awards & Recognition

• 2022 Green Bank Award for Outstanding Partnership

Environmental Metrics

ESG Focus Areas

• Responsible Banking
• Environment
• Social
• Governance

Environmental Achievements

• Achieved 100% renewable energy use in direct operations and net-zero emissions for direct scope one and two emissions for the sixth year in a row.
• Climate solutions lending and PACE financing grew to account for nearly $2.19 billion.

Social Achievements

• Experienced a significant decrease in regrettable turnover at 10% versus 15% in 2022.
• Amalgamated Foundation delivered 4,333 grants for a total of $184 million in philanthropic support in 2023, a 16% increase from 2022.
• Achieved 100% on the Human Rights Campaign Foundation’s Corporate Equality Index.

Governance Achievements

• Completed its B Corporation recertification and increased its score from 115.1 to an overall score of 155.3.
• Conducted its second pay equity analysis, finding no statistically significant pay gaps in adjusted pay for women and minorities for the second year in a row.

Climate Goals & Targets

Environmental Challenges

• Data quality, attribution of financial responsibility, and changing emission factors complicate the analysis of absolute emissions from client portfolios.
• Growth in the securities and PACE portfolios resulted in a reduction in portfolio coverage for financed emissions calculations.

Mitigation Strategies

• Improved data quality and methodology for calculating financed emissions.
• Continued efforts to increase data collection and improve data quality for under-represented asset classes.

Supply Chain Management

Responsible Procurement

• Updated Supplier Code of Conduct
• Increased efforts to assess vendor diversity

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Growth in clean energy financing

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs, UNPRB

Certifications: B Corporation

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Amalgamated Bank's business model and initiatives align with these SDGs through various programs and investments.

Sustainable Products & Innovation

• Fossil Fuel Free investment product