Climate Change Data

Environmental Metrics

ESG Focus Areas

• Build a Responsible Workforce
• Foster Sustainable Communities
• Finance the Future

Environmental Achievements

• Reduced CO2 emissions by 176.13 tons through paper recycling
• Sourced 10%-100% of energy from renewables depending on the state of operations
• Entered into first agreement to procure electricity from solar energy

Social Achievements

• Implemented Massachusetts Equal Pay Act companywide
• Instituted a $15 per hour minimum wage and provided one-time $1,000 bonuses to approximately 70% of workforce
• Increased investments in employee training programs
• Launched XTEAM™ employee volunteer program with 100% employee participation and 40,793 volunteer hours
• Granted nearly $2.4 million to over 500 non-profit organizations through Berkshire Bank Foundation
• Partnered with GreenPath Financial Wellness to provide free access to financial counseling

Governance Achievements

• Company’s board of directors includes a majority of independent directors (11 of 13)
• Enhanced Code of Business Conduct and whistleblower policy
• Retained a diversity and inclusion consultant to advise board and senior management

Climate Goals & Targets

Environmental Challenges

• Need to improve attracting and retaining a workforce representative of the populations served
• Managing environmental footprint as operations grow

Mitigation Strategies

• Developing a long-term strategic plan for diversity and inclusion focusing on training, hiring practices, and creating a diverse talent pipeline
• Implementing employee remote work options to reduce carbon footprint
• Investing in greening of the grid and virtual net metering to increase renewable energy use

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The company’s corporate responsibility work contributes in some way to all 17 SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• United Nations IMPACT2030 Innovation Award
• Halo Award
• Invest In Others National Corporate Philanthropy Award
• PR Daily Corporate Social Responsibility Award
• Boston Business Journal Top Charitable Contributors List
• Communitas Awards International Leadership Award

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Governance
• Corporate Responsibility

Environmental Achievements

• Reduced CO2 emissions by 137 tons through paper recycling
• Transitioning to 100% renewable electricity use

Social Achievements

• Granted nearly $2.9MM to 612 nonprofit organizations, impacting over 1.3MM individuals
• 100% of employees participated in XTEAM volunteer program, impacting over one million people
• Launched Friends & Family Fund to help entrepreneurs of color access seed capital
• Increased number of financial education events by 30%, impacting 32,231 individuals
• Launched ReevX Labs community storefronts to reduce barriers to financial services

Governance Achievements

• Enhanced board diversity by adding five new directors
• Created Corporate Responsibility & Culture Committee to oversee ESG programs
• Implemented enterprise-level Responsible & Sustainable Business Policy
• Released inaugural Corporate Responsibility report
• Enhanced Code of Business Conduct and whistle-blower policy

Climate Goals & Targets

Environmental Challenges

• Climate change poses transition risks (loans to companies with substantial negative environmental impacts), reputational risks (shifts in consumer preferences), and physical risks (frequent weather events impacting assets and borrowers’ ability to repay)
• Data security breaches due to human error

Mitigation Strategies

• Implementing formal Environmental Sustainability Principles and enhancing Social and Environmental Credit Risk Framework
• Investing in new technologies and cybersecurity professionals to mitigate threats and adhere to regulatory requirements
• Implementing a comprehensive fraud prevention and risk management program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• More frequent weather or climate-related events impacting physical assets and borrowers’ ability to repay

Transition Risks

• Loans to companies in industries with substantial negative environmental impacts

Opportunities

• Offering products and services to support the climate transition

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The company’s corporate responsibility work contributes in some way to all 17 SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Bloomberg Gender Equality Index 2020
• U.S. Chamber of Commerce Foundation Citizens Award
• North American Employee Engagement Award
• New England Community Bank Heroes Gold
• PR Daily Corporate Social Responsibility Award
• Invest In Others National Corporate Philanthropy Award
• IMPACT2030 Innovation Award
• Halo Award
• Communitas Awards International Leadership Award
• Boston Business Journal Top Charitable Contributors List

Environmental Metrics

ESG Focus Areas

• Finance the Future
• Build a Responsible Workforce
• Foster Sustainable Communities

Environmental Achievements

• 61% of electricity from renewable sources
• 65% reduction in paper use from 2014 baseline

Social Achievements

• Originated $278MM in mortgages, helping 78% more individuals than in the prior year
• Deployed $708MM in Paycheck Protection Program (PPP) Loans to assist small businesses
• Launched The Futures Fund to assist Black-owned businesses
• Increased the number of people impacted by financial education programming to 86,411 individuals
• Achieved a perfect score on the Human Rights Campaign Corporate Equality Index
• Listed in the Bloomberg Gender-Equality Index for the second consecutive year
• 80% of employees participated in a Company volunteer event

Governance Achievements

• Enhanced ESG Credit Risk & Lending Policy
• Implemented new loan policies to manage social, environmental, and reputational risks
• Enhanced internal audit oversight and practices
• Established Regional Advisory Councils

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic's impact on small businesses and communities
• Systemic racism and inequities
• Climate-related impacts (transition and physical risks)
• Potential environmental-related reputation and credit risks

Mitigation Strategies

• Provided loan forbearance and PPP loans to small businesses
• Launched The Futures Fund and partnered with BECMA and the Massachusetts LGBT Chamber of Commerce
• Implemented new loan policies to manage social, environmental, and reputational risks
• Integrated environmental considerations into due diligence processes
• Transitioned energy supplies to lower carbon alternatives
• Implemented a comprehensive Information Security Program

Supply Chain Management

Responsible Procurement

• Supplier diversity

Climate-Related Risks & Opportunities

Physical Risks

• More frequent weather-related events

Transition Risks

• Climate regulations
• Financial health of companies in industries with substantial adverse environmental impacts

Opportunities

• Supporting the transition to a low-carbon economy

Reporting Standards

Frameworks Used: GRI, SASB

Awards & Recognition

• Human Rights Campaign Corporate Equality Index Perfect Score
• Inspiring Workplaces Diversity & Inclusion Award
• Bloomberg Gender Equality Index
• Communitas Award
• U.S. Chamber of Commerce Foundation Citizens Award
• New England Community Bank Heroes Gold
• PR Daily Corporate Social Responsibility Award
• Invest In Others National Corporate Philanthropy Award
• IMPACT2030 Innovation Award
• Halo Award

Environmental Metrics

ESG Focus Areas

• Financial Access and Affordability
• Responsible Banking
• Leadership and Governance
• Human Capital Management
• Community
• Environmental Sustainability

Environmental Achievements

• Reduced total electricity usage by roughly 3% year over year.
• 53% of the Company’s electricity is from green sources.
• Reduced Scope 3 impacts of purchased goods (paper usage) by 74% from its 2014 baseline.

Social Achievements

• Launched BEST Community Comeback, a multiyear $5 billion commitment focusing on small businesses, community financing, financial access, and environmental sustainability.
• Impacted more than 246,000 people with financial wellness programming.
• 99% of customer complaints were addressed.
• 82% of employees participated in the volunteer program, contributing over 14,500 hours of community service.

Governance Achievements

• Established a dedicated Board of Directors committee to oversee ESG matters.
• Enhanced governance over material environmental matters by formalizing an ESG Management Committee.
• Incorporated ESG elements into executive compensation.

Climate Goals & Targets

Environmental Challenges

• Housing market trends (low-interest-rate environment, low inventory) created obstacles to homeownership.
• COVID-19 pandemic impacted businesses and borrowers.
• Labor market disruptions led to higher-than-average turnover.
• Supply chain disruptions affected sourcing of recycled and sustainably harvested paper.

Mitigation Strategies

• Worked with borrowers on loan forbearances and assistance programs.
• Offered a comprehensive suite of mortgage options.
• Provided support and guidance to small businesses, including SBA loans and PPP relief.
• Implemented new incentive plans, personal development plans, and training to combat turnover.
• Plans to return to sourcing recycled SFI and FSC certified papers in 2022.

Supply Chain Management

Responsible Procurement

• Encouraging employees to seek out underrepresented suppliers.
• Leveraging community partnerships to increase diverse third-party suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Changing consumer behaviors
• New technologies

Opportunities

• Financing renewable electricity generation
• Green building development
• Socially responsible investing (SRI) portfolios

Reporting Standards

Frameworks Used: SASB Commercial Bank disclosure topics version 2018-10, TCFD

Sustainable Products & Innovation

• MassSave® Heat Loan

Awards & Recognition

• American Bankers Association Community Commitment Award
• Best of the Berkshires Best Mortgage
• Best Places to Work for LGBTQ+ Equality
• Bloomberg Gender-Equality Index
• Forbes: America’s Best Banks
• Albany Business Review Leaders in Diversity, Equity and Inclusion
• Communitas Awards
• International Leadership Award for Corporate Social Responsibility and Community Service
• Boston Business Journal Top Charitable Contributor

Environmental Metrics

ESG Focus Areas

• Affordable Housing
• Workforce Housing
• Green Buildings
• Financial Inclusion & Access
• Environmental Sustainability
• Community Development

Environmental Achievements

• Allocated $33,300,000 to green building development, including projects expected to achieve LEED Gold or Platinum, BREEM Excellent or above, and/or achieve greenhouse gas emissions performance in the top 15% of their municipal boundaries.

Social Achievements

• Allocated $11,550,000 to affordable housing, providing housing below market rate to individuals and families at or below 60% AMI.
• Allocated $28,900,000 to workforce housing, providing housing below market rate to individuals and families between 60%-80% AMI and up to 120% AMI for high-cost markets.
• Allocated $26,250,000 to small businesses in low-moderate income (LMI) and/or majority minority census tracts (MMCT).

Governance Achievements

• Established an ESG Committee responsible for reviewing and selecting assets for sustainable financing.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

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

UN Sustainable Development Goals

• SDG 8
• SDG 10
• SDG 11

The company's sustainable finance work contributes to all 17 SDGs, but most closely aligns with SDGs 8, 10, and 11.