Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1 and Scope 2 greenhouse gas emissions by 41% against a 2015 baseline by 2020 (reaching the 2023 goal ahead of schedule)
• Reduced energy use by 26% against a 2015 baseline by 2020
• Reduced internal copy paper use by 32 percent
• Saved 116 million sheets of paper through customer adoption of electronic statements
• Completed 2.3 million transactions using eSignature in 2020

Social Achievements

• 97% year-over-year growth in client assets allocated to ESG-focused investment products
• Added 2 new ESG-focused offerings in Investment Management in 2020
• Launched more than 25 enhancements to our mobile application

Governance Achievements

• Established an Environmental and Social Risk Management (ESRM) working team
• Incorporated ESG templates at the business level to promote the development of ESG business-level strategies
• Board of Directors oversight of environmental strategy, initiatives, and policies

Climate Goals & Targets

Environmental Challenges

• Uncertainty around the magnitude and timing of climate risk exposure due to lack of relevant historical data
• Evolving stakeholder expectations for managing climate risks and opportunities
• Challenges around data capture and lack of standardized methodologies to assess and measure climate change risk

Mitigation Strategies

• Developed a comprehensive Risk Management Framework
• Leveraged scenario analysis to frame climate change risk assessments
• Reviewing loan portfolios to identify industries vulnerable to climate-related risks
• Developing new approaches to quantitatively measuring climate risks in loan portfolios
• Engaging with customers and supporting them in the transition to a lower-carbon economy

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat and drought
• Hurricanes
• Wildfire
• Sea level rise

Transition Risks

• Policy and regulation
• Technology development
• Consumer preferences

Opportunities

• Sustainable lending and investing activities
• ESG-focused asset management products
• Growth in sustainable lending areas

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• ESG-focused investment products
• Sustainable lending products

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reached 2023 Scope 1 and Scope 2 greenhouse gas emissions reduction goal three years ahead of schedule
• Reached 2023 energy reduction goal two years early
• Reduced gross Scope 1 and Scope 2 location-based carbon emissions by 33% by the end of 2021 against a 2019 baseline
• Reduced internal copy paper purchased by 8 percent from 2020

Social Achievements

• Not disclosed

Governance Achievements

• Established the management-level ESG Leadership Council in 2021
• Joined PCAF in 2022
• Enhanced ESG portfolio analysis capabilities, including the addition of an ESG Credit Portfolio Manager
• Enhanced credit policy to incorporate increased diligence in underwriting and monitoring of higher environmental and climate transition risk industries as well as portfolio-level reporting

Climate Goals & Targets

Environmental Challenges

• Uncertainty remains as to the magnitude and timing of climate risk exposure, complicated by the lack of relevant historical data to guide future performance
• Stakeholder expectations for managing climate risks and opportunities continue to progress alongside evolving societal, political, and market forces
• Challenges around data capture and lack of standardized methodologies to assess and measure climate change risk, as well as the uncertainty associated with longer time horizons as compared to other financial or non-financial risks

Mitigation Strategies

• Developed tools and processes to internally review our loan portfolios to discern the industries and segments that are vulnerable to climate-related risks and those that will benefit during the evolution to a lower-carbon economy and have enhanced our credit policies to include those considerations
• Developed new approaches to quantitatively measure climate risks in the loan portfolios, including enhancing our client-level borrower assessment to embed additional environmental factors into underwriting and monitoring for high environmental or transition risk obligors
• Leveraging scenario analysis to frame our climate change risk assessments
• Joined PCAF to take advantage of the consortium’s data and methodologies for the measurement of financed emissions; onboarding in 2022 of new third-party data sets to support our assessment of physical and transition risks
• Strengthened credit policy regarding the identification, assessment, and reporting of environmental and climate transition risks and risk concentrations in the business services portfolio
• Expanded geospatial analysis to enrich physical risk assessment, including our credit portfolio and operational facilities
• Continued investments in technology and digitalization

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Purchasing 99.5% of paper from Forest Stewardship Council certified suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat and drought
• Hurricanes
• Wildfire
• Sea level rise
• Winter Weather

Transition Risks

• Policy and regulation
• Technology development
• Consumer preferences

Opportunities

• Supporting customers’ transition to a lower-carbon economy through sustainable lending and investment products and services

Reporting Standards

Frameworks Used: TCFD, GRI, SASB, CDP

Certifications: Null

Third-party Assurance: Third-party verification for 2021 GHG inventory

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Solar Tax Equity Finance
• Energy and Natural Resources Group (ENRG)
• EnerBank solar and energy efficient financing
• ESG-focused investment offerings
• Sustainable timber management activities

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Risk Management
• Sustainable Finance

Environmental Achievements

• Reduced Scope 1 and Scope 2 GHG emissions by 36% by the end of 2022 (against a 2019 baseline).
• Reduced energy use by exceeding the 30% reduction target ahead of schedule (by 2021).

Social Achievements

• Expanded eSignature functionality to 3 additional teams, resulting in 40 teams using it across 395 forms.
• Increased digital users by 3 percent, with 3.3 million active digital customers and over 1.1 billion digital logins in 2022.
• Increased active mobile users by 6 percent compared to the previous year, achieving a 4.8 out of 5 mobile app rating.

Governance Achievements

• Established a cross-functional project operating model to pursue portfolio and sub-sector measurement of Scope 3 financed emissions.
• Enhanced ESG portfolio analysis capabilities, including the addition of an ESG Credit Portfolio Manager.
• Eight of the current Board Directors assessed their competency in environmental sustainability practices as either “considerable” or “extensive”.

Climate Goals & Targets

Environmental Challenges

• Challenges around data capture and lack of standardized methodologies to assess and measure climate change risk.
• Uncertainty associated with longer time horizons compared to other financial or non-financial risks.
• Potential impacts of climate change on Regions’ facilities, operations, and associates through more frequent and severe weather events.

Mitigation Strategies

• Continued integration of climate risk drivers into the existing Risk Management Framework.
• Enhancements to risk processes that measure and monitor climate risks, such as scenario analysis and portfolio quantitative analysis.
• Adoption of credit policy enhancements to strengthen environmental risk management.
• Enhanced geospatial analysis to enrich physical risk assessment.
• Business Resilience Program to ensure continuation of essential business operations during disruptions.
• Multi-department Weather Response Program for major weather events.

Supply Chain Management

Responsible Procurement

• 79 percent of paper purchased from Forest Stewardship Council-certified suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat and drought
• Hurricanes
• Wildfire
• Sea level rise

Transition Risks

• Policy and regulation
• Technology development
• Consumer preferences

Opportunities

• Sustainable lending and investment products and services
• Growth in sustainable lending areas
• Solar Tax Equity Finance
• Energy & Natural Resources Group (ENRG) financings
• EnerBank financing for energy-efficient home improvements

Reporting Standards

Frameworks Used: TCFD, GRI, SASB

Certifications: ISO 14001 (for electronic waste vendors), R2:2013 (for electronic waste vendors), Sustainable Forestry Initiative, American Tree Farm

Sustainable Products & Innovation

• Sustainable lending and investment products and services

Environmental Metrics

ESG Focus Areas

• Governance
• Customers
• Associates
• Communities

Environmental Achievements

• Reduced internal copy paper purchased by 6.7%, with 88.8% of paper from Forest Stewardship Council-certified suppliers.
• Achieved 33% reduction in Scope 1 and Scope 2 GHG emissions against a 2019 baseline, on track for a 50% reduction by 2030.

Social Achievements

• Introduced Regions Overdraft Grace feature.
• Enhanced Regions Explore® Visa® Credit Card.
• Offered customized financings for customers with environmental goals.
• Invested in associates’ wellbeing (physical, mental, financial, professional, and social).
• Enabled associates to pursue educational opportunities through Guild Education Services.
• Nurtured an inclusive workplace through DEI Executive Council and Networks.
• Provided $1.7 billion in affordable lending through Regions Affordable 97 and 100 Mortgage products.
• Enabled nearly 1 million customers to complete financial plans through Regions Greenprint®.
• Approved $2.1 million in grant application requests through Regions FirstHome Assist.
• 20 DEI Networks in markets representing approximately 72% of the associate population.
• 104,000 hours logged by associates to make life better in our communities.

Governance Achievements

• 54% overall diversity across the Board of Directors (38% female, 31% racially or ethnically diverse).
• 226,286 hours of Mandatory Annual Compliance (MAC) training completed by associates.
• Enhanced controls within ESG disclosure development process.
• Implemented a product risk governance framework to enhance associate understanding of product risk management.

Climate Goals & Targets

Environmental Challenges

• Rising rates, bank failures, elevated banking fraud, and expanded geopolitical concerns.
• Data challenges for climate risk management (e.g., enhancing third-party data, monitoring peer and client disclosures).

Mitigation Strategies

• Adapted to changing landscape by focusing on serving customers, innovating, reducing risk exposure, and investing in associates and communities.
• Investing in technology to modernize core platforms, detect and prevent fraud, and improve customer authentication.
• Enhancing scenario analysis capabilities and methodologies.
• Improving data capture and methodologies to quantify the impact of transition risks.

Supply Chain Management

Responsible Procurement

• Inclusive sourcing practices; expecting vendors to maintain high standards of integrity and operate responsibly.
• 88.8% of paper from Forest Stewardship Council-certified suppliers; electronic waste recycling using R2v3 and RIOS-certified vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes, wildfires, tornadoes, sea-level rise

Transition Risks

• Policy, legal, technology, and market changes

Opportunities

• Development of energy-efficient products and services; supporting customers' climate transition objectives.

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Third-party Assurance: Third-party assurance for GHG emissions in progress

Sustainable Products & Innovation

• Regions Now Banking, Regions Greenprint, Regions Explore Visa Credit Card, Regions Affordable 97 and 100 Mortgage products

Awards & Recognition

• 2023 Gallup® Exceptional Workplace Award
• 2023 Best Place to Work for Disability Inclusion
• 2023 America’s Most JUST Companies
• Great Place to Work-Certified™

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Governance

Environmental Achievements

• Reached 2018 energy use reduction target

Climate Goals & Targets

Environmental Challenges

• Data challenges for climate risk management
• Managing cross-functional efforts to measure Scope 3 GHG emissions

Mitigation Strategies

• Enhancing third-party data, monitoring best practices, and exploring opportunities for more efficient analysis
• Managing cross-functional efforts to measure Scope 3 GHG emissions arising from our loan and securities portfolios

Supply Chain Management

Climate-Related Risks & Opportunities