Climate Change Data

Environmental Metrics

ESG Focus Areas

• Affordable Housing
• Workforce Housing
• Socioeconomic Advancement and Empowerment
• Access to Essential Infrastructure
• Access to Education
• Renewable Energy
• Energy Efficiency
• Green Buildings
• Clean Transportation

Governance Achievements

• Created an ESG Council in early 2020 to guide ESG efforts and educate the organization on ESG issues.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ICMA Sustainability Bond Guidelines 2021, Social Bond Principles 2021, Green Bond Principles 2021

Third-party Assurance: Sustainalytics (Second Party Opinion)

UN Sustainable Development Goals

• 11
• 8
• 10
• 6
• 4
• 13
• 7
• 9

The framework's eligible assets align with these UN SDGs.

Environmental Metrics

ESG Focus Areas

• Affordable Housing
• Innovation and Entrepreneurship
• Economic and Community Development
• Local Leadership
• Diversity, Equity & Inclusion (DEI)
• Environmental Sustainability
• Community Reinvestment

Environmental Achievements

• Received an Outstanding rating from the Office of the Comptroller of the Currency (OCC) for our Community Reinvestment Act (CRA) performance during 2019 - 2021.
• Issued $150 million in “sustainable” subordinated notes to finance green and/or social assets.
• New partnership with CPC to fund up to $100 million in permanent loans that meet ESG standards.
• Originated loans to purchase 1,178 electric or hybrid vehicles.
• Refurbished select branch offices to reduce energy use and implement recycling programs.
• Replacing aging HVAC units with newer, greener units.
• Optimizing the square footage of corporate offices and installing LED lighting.

Social Achievements

• More than 12,100 community service hours completed by associates.
• $5.3+ Million in Charitable Giving
• Small Business loans to small businesses and/or in LMI areas $455 Million
• Multi-Family loans in LMI neighborhoods $700 Million
• Community Development Investments supporting LMI neighborhoods, individuals, and businesses $420 Million
• Residential Mortgages to LMI borrowers and/or borrowers in LMI neighborhoods $404 Million
• Community Development Loans to advance affordable housing and community services to low-to-moderate income (LMI) individuals, economic and community development and revitalization and stabilization $1.49 Billion
• TOTAL INVESTMENT : $3.47 Billion
• Launched the ninth iteration of Invest Newark’s “Language of Capital” educational series.
• Supported the New York Social Equity Cannabis Investment Fund.
• Partnered with more than 20 colleges and universities and workforce development organizations to increase early talent diversity.
• Hosted 12 Women in Business events and sponsored 43 community-based events.

Governance Achievements

• Received an Outstanding CRA rating from the Office of the Comptroller of the Currency (OCC) for the years of 2019 through 2021.
• Established an ESG Council to oversee environmental, social, and governance initiatives.
• Implemented a Cyber Program with focus on policy, monitoring, due diligence, oversight, training, and incident response.
• Actively engaged with shareholders and stakeholders throughout the year.

Climate Goals & Targets

Environmental Challenges

• Shortage of affordable housing in the U.S.
• Limited access to capital for minority- and women-owned businesses.
• Climate change impacts on lending activities.
• Cybersecurity threats.

Mitigation Strategies

• Partnerships with nonprofits to increase affordable housing supply.
• Collaborations with CDFIs to expand access to capital for underserved businesses.
• Review of credit practices to assess and manage climate-related risks.
• Implementation of a comprehensive Cyber Program to protect against cyberattacks.

Supply Chain Management

Responsible Procurement

• Selection of low-emitting materials for new headquarters construction.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes

Opportunities

• Financing of renewable energy projects

Reporting Standards

Frameworks Used: SASB, TCFD

Awards & Recognition

• Outstanding CRA rating (OCC)
• Dream Builders Award (Homeless Solutions)
• Corporate Citizenship Award (LIBN)
• Community Service Awards (NJ Bankers)
• Top 50 Content Marketing Programs (Springboard)
• Training APEX Awards (Training Magazine)
• Companies that Care Awards (CIANJ and Commerce Magazine)
• Corporate Philanthropy Award (The Community Chest)
• Champion of the People Award (Family Connections)

Environmental Metrics

ESG Focus Areas

• Affordable Housing
• Community and Economic Development
• Innovation and Entrepreneurship
• Impactful Local Leadership
• Diversity, Equity, and Inclusion
• Environmental Sustainability
• Corporate Governance

Environmental Achievements

• Achieved LEED Gold certification for new headquarters in Morristown, NJ
• Funded 1,015 electric or hybrid vehicles in 2023
• Expanded lending limit for environmentally sensitive industries to support clients transitioning to lower carbon footprints
• Tracked and reported $150 million in sustainable transactions

Social Achievements

• Provided $3+ billion in community development investments supporting LMI neighborhoods, individuals, and businesses
• Over 13,500 volunteer hours by associates
• $4.9+ million in charitable giving
• Launched Valley on the Job, a financial wellness program for employees of clients
• Hosted nine Women in Business events and sponsored 40 community events
• Launched Workplace Giving program, matching associate donations to nonprofits

Governance Achievements

• Established ESG Council to raise awareness of climate change and promote sustainability
• Reviewed SASB and TCFD frameworks to inform ESG disclosures and metrics
• Implemented robust cybersecurity program with training, incident response, and policy

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on lending practices and vulnerable communities
• Cybersecurity threats

Mitigation Strategies

• Careful review of credit practices to assess climate change impact, ensuring changes don't disproportionately affect vulnerable communities
• Established Level III credit concentration threshold to limit lending to environmentally sensitive industries (expanded in 2023)
• Implemented robust cybersecurity program with training, incident response, and policy

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: LEED Gold

Awards & Recognition

• Best Big Bank New Jersey 2023
• Best Regional Bank New Jersey 2024
• New Jersey Bankers Association Community Service Award
• CIANJ Champion of Good Works
• Cystic Fibrosis Foundation New Jersey Chapter Volunteer of the Year
• SBA New Jersey District Rural Business Lender of the Year
• VISIONS Most Committed Employer Award
• Corporation to Develop Communities of Tampa, Inc. Nehemiah Award
• NJBIZ Empowering Women Award