Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 100% of outdoor lighting we control is LED, and 22% of locations have occupancy-sensor lighting. New HVAC systems meet the latest efficiency standards, and new office and IT equipment is ENERGY STAR certified.
• Moving server infrastructure to cloud data centers, estimated to be up to 93% more energy efficient and 98% more carbon efficient than on-premise.
• Responsibly recycle laptops, servers, hard drives, monitors, printers and cellphones. Toner Recycling Program collects and recycles toner cartridges.
• Recycle paper and eliminated or reduced courier services to support paperless workplace.
• Digital banking services eliminate commute needs and encourage paperless statements, reducing paper usage.

Social Achievements

• From 2019 to 2020, doubled the number of new community development loans and investments, donations and grants increased by almost 100% to $1,030,000.
• In response to COVID-19, deferred loan payments for 18.2% of the portfolio and provided over 940 total Paycheck Protection Program (PPP) loans totaling approximately $83 million.
• Kearny Bank First Time Homebuyer Program (FTHB) promotes home ownership through down payment assistance, rate reductions, lender-paid mortgage insurance and fee waivers.
• Offer many learning and development initiatives, including departmental budgets for certifications and professional development. Learning Center has over 1,000 classes.
• Provide eligible employees up to $5,000 per year in tuition reimbursement.
• Launching a Career Mentoring Program and have a Senior Women’s Leadership Group.

Governance Achievements

• Established an ESG Committee of the Board with primary oversight of all ESG matters.
• ERM Committee manages risk, with quarterly reporting from Chief Risk Officer.
• ESG Working Group with cross-functional representation reports to the ESG Committee.
• Established a Diversity and Inclusion (D&I) Action Plan and a Diversity, Equity & Inclusion Committee (reporting annually to the Board).
• Code of Conduct Policy with anonymous employee ethics hotline.
• Compliance curriculum with 166 courses assigned based on job function.
• Board-approved Business Continuity Management (BCM) program.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Environmental Metrics

ESG Focus Areas

• Community Involvement
• Diversity and Inclusion
• Digital Banking Expansion
• Climate Risk Management
• Responsible Business Practices
• Employee Engagement

Environmental Achievements

• Transitioning to cloud-based server infrastructure (~98% more carbon efficient than on-premises servers)
• Use of LED lighting (100% outdoor, indoor unspecified)
• Energy-efficient HVAC systems and ENERGY STAR certified equipment
• Paperless processes reducing paper usage and courier services
• Refurbished furniture in new corporate space

Social Achievements

• Kearny Bank First-Time Homebuyer Program (30 loans totaling over $9 million)
• Partnerships for financial literacy (Junior Achievement, Zogo, EVERFI)
• 43% of new hires identifying as diverse
• Over $3.5 million donated to charitable organizations since 2015
• Implementation of mortgage messaging technology for improved client communication
• Launched a new client service platform with 24/7 AI chatbot availability (over 288,000 client engagements)

Governance Achievements

• Established an ESG Committee of the Board of Directors
• Established an ESG Working Group
• Code of Conduct and anonymous employee ethics hotline
• Compliance Management Program with periodic independent audits
• Cyber Defense Program integrating people, processes, and layered technologies
• Business Continuity Management (BCM) program
• Annual mandatory security and fraud training for employees

Climate Goals & Targets

Environmental Challenges

• Potential risks posed by climate change to the Bank’s loans, branches, and corporate locations
• Ensuring equal access to digital banking services for all clients
• Maintaining a secure and safe work environment

Mitigation Strategies

• Climate risk scenario analysis using FEMA National Risk Index (NRI)
• Expansion of digital service offerings (online banking, mobile banking, etc.)
• Security procedures in accordance with established legal standards, security manual, and employee handbook
• Cybersecurity program using FFIEC Cybersecurity Assessment Toolkit and NIST Cybersecurity Framework
• Incident Response tests to assess and enhance response to high-risk events

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (flooding, extreme weather)

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board), UN SDGs (United Nations Sustainable Development Goals)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Alignment described in report section 'Framework & Standards'

Environmental Metrics

ESG Focus Areas

• Diversity, Equity, and Inclusion
• Community Development
• Environmental Sustainability
• Risk Management
• Data Security and Client Privacy

Environmental Achievements

• Implemented an energy management system at corporate headquarters to monitor and reduce energy usage.
• Transitioned to paperless processes and increased use of cloud technologies to reduce energy consumption.
• Utilized occupancy sensor lighting in over 50% of locations and used 100% LED lighting for all outdoor locations.

Social Achievements

• Launched the Kearny Bank ChangeMakers program in partnership with Rutgers University to empower female employees.
• Appointed a Director of Diversity, Equity and Inclusion to lead DEI efforts and increase representation of underrepresented employee segments.
• 51% of new hires were diverse.
• Supported a Dress for Success clothing drive.

Governance Achievements

• Welcomed two new directors to the Boards of Kearny Financial Corp. and Kearny Bank.
• Implemented a Board-approved Cyber Defense Program integrating people, processes, and layered technologies.
• Annual mandatory security and fraud training for employees.

Climate Goals & Targets

Environmental Challenges

• Reducing energy consumption further
• Increasing diverse representation in the workforce
• Managing climate-related risks to the Bank’s loans, branches, and corporate locations.

Mitigation Strategies

• Planning additional initiatives to reduce energy consumption in 2024.
• Developing programs and forming partnerships with community groups to enhance the available pool of diverse candidates.
• Conducting annual climate risk analyses and using a Climate Risk Dashboard to monitor risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB