Climate Change Data

Environmental Metrics

ESG Focus Areas

• Client Service
• Creating a Culture of Respect
• Organizing and Governing to Build and Maintain Trust
• Giving Back to Our Communities
• Being Good Stewards of Our Environment

Environmental Achievements

• 42.4% reduction in carbon dioxide per full-time employee from 2011 through 2020
• 28.6% reduction in energy per employee from 2011 through 2020
• 34.5% reduction in total energy consumption per square foot of space from 2011 through 2020
• Eliminated 4,725 tons of carbon dioxide production in 2020 through a solar farm

Social Achievements

• Developed a Diversity & Inclusion strategy with four pillars: workforce, workplace, marketplace, and community
• Expanded professional development opportunities for employees
• Introduced Moneywise America™ financial literacy program for youth in under-resourced communities
• Reorganized HR team for a more holistic approach to supporting talent
• Increased ERG participation by 157% since 2018

Governance Achievements

• Appointed a head of ESG Strategy within Schwab Asset Management
• Created a new ESG Policy and Reporting Office
• Nominating and Governance Committee given primary oversight of ESG programs
• Discontinued the PAC and contributed remaining funds to the Boys & Girls Clubs of America and historically Black colleges and universities

Climate Goals & Targets

Environmental Challenges

• Integrating ESG considerations into a historically quantitative investment approach
• Balancing the need for workplace flexibility with in-person collaboration
• Addressing the increasing prominence of climate change as an investor concern

Mitigation Strategies

• Created a team and process for company and shareholder engagement
• Implemented a Workplace Flexibility Program (WFP)
• Investing in solar projects and energy-efficient technologies
• Evaluating other solar investments and initiatives at major campuses

Supply Chain Management

Responsible Procurement

• Working with vendors that use recycled-content and sustainable products
• Sourcing environmentally responsible products

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Sustainable Products & Innovation

• Schwab Ariel ESG ETF
• Wasmer Schroeder™ Strategies Positive Impact Tax Exempt and Positive Impact Bond options

Awards & Recognition

• FORTUNE Most Admired Companies
• America’s 50 Most Community-Minded Company
• Top 50 Employers (CAREERS & the disABLED magazine)
• Forbes America’s Best Large Employers
• Forbes Best Employers for New Graduates
• Best Places to Work for Disability Inclusion
• Best Places to Work for LGBTQ Equality
• LinkedIn Top Companies: Austin
• Best Companies to Work for in Texas
• Top Companies to Work for in Arizona
• Best of the Best (U.S. Veterans Magazine)
• Military Friendly Employer
• Arizona’s Most Admired Companies

Environmental Metrics

ESG Focus Areas

• Client Service
• Employee Diversity & Inclusion
• Talent
• Employee Well-being
• Responsible Sourcing
• Community Relations
• Financial Literacy
• Ethical Business Practices
• Board Composition & Effectiveness
• Board Responsiveness & Stockholder Engagement
• Legal & Regulatory Compliance
• Commitment to Risk Management
• Public Policy Engagement
• Environmental Footprint
• Climate Change
• ESG-Themed Investment Products
• Sustainability-Themed Investment Products
• Data Privacy & Security

Environmental Achievements

• Reduced carbon emissions per full-time employee by over 40% and emissions per square foot by 50% from 2011 to 2021.
• North Texas solar farm produces approximately 4,600 megawatt-hours annually, reducing CO2 emissions by approximately 1,913 metric tons per year.
• Completed conversion to laptops as default computers, resulting in 80% less energy consumption than desktops.
• UPS modernization project in Phoenix data center resulted in energy savings of more than 11%, or approximately 306 megawatt-hours per year.

Social Achievements

• Launched The Power of One Schwab campaign to unify employees.
• Expanded professional development opportunities for all employees.
• Launched Manager Excellence program and enhanced career development programs.
• Expanded suite of benefits to better meet employee needs.
• Launched three initiatives to advance personalized investing and support ESG investing strategies (Schwab Personalized Indexing™, thematic stock lists, access to MSCI’s ESG ratings).
• Celebrated the one-year anniversary of Moneywise America™ program with a financial literacy field trip for 220 students.
• Schwab Volunteer Weeks saw record participation with over 9,200 volunteer spots filled.
• Pro Bono Challenge saw over 250 employees provide consulting services valued at more than $443,000 for 42 nonprofits.

Governance Achievements

• Appointed CEO as Co-Chairman alongside founder, ensuring leadership continuity.
• Established a new ESG Policy and Reporting Office.
• Over 78% of the board is independent from management.
• Board is 39% diverse based on race, ethnicity, and gender.
• Updated proxy voting policy to further articulate ESG philosophy.

Climate Goals & Targets

Environmental Challenges

• Increased greenhouse gas emissions in 2021 due to the TD Ameritrade acquisition and expanded real estate footprint.
• Maintaining employee engagement in a hybrid work environment.

Mitigation Strategies

• Exploring ways to reduce carbon footprint through energy conservation and renewable energy sources (e.g., solar projects).
• Implementing The Power of One Schwab campaign and quarterly employee engagement pulse surveys to address employee sentiment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with vendors that use recycled content and sustainable products.
• Sourcing environmentally responsible products (e.g., FSC-certified paper).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Schwab Personalized Indexing™, thematic stock lists, access to MSCI’s ESG ratings, Schwab Ariel ESG ETF

Awards & Recognition

• Investor’s Business Daily and MarketWatch 25 Most Trusted Financial Companies
• The Civic 50
• Top 50 Employers (CAREERS & the disABLED magazine)
• Best Places to Work for Disability Inclusion
• Best Places to Work for LGBTQ+ Equality
• Forbes Best Employers for Women
• Best of the Best (U.S. Veterans Magazine)
• Forbes Best Employers for New Graduates
• Forbes America’s Best Large Employers
• Top Companies to Work for in Arizona
• Arizona’s Most Admired Companies
• Best Companies to Work for in Texas
• 100 Best Arizona Companies

Environmental Metrics

ESG Focus Areas

• Client Service
• Data Privacy & Security
• Employee Diversity & Inclusion
• Talent
• Employee Well-Being
• Responsible Sourcing
• Ethical Business Practices
• Board Composition & Effectiveness
• Board Responsiveness & Stockholder Engagement
• Legal & Regulatory Compliance
• Commitment to Risk Management
• Public Policy Engagement
• Financial Literacy
• Community Relations
• Environmental Footprint
• Climate Change
• ESG-Themed Investment Products
• Sustainability-Themed Investment Products

Environmental Achievements

• Solar farm in North Texas produced approximately 3,600 megawatt-hours in 2022, reducing carbon dioxide emissions by 2,590 metric tons. Electricity generated by the solar farm fully powers our North Texas data center.
• Substantially completed construction on a new rooftop solar project at our Phoenix campus (expected online in first half of 2024), estimated to generate nearly 1,000 megawatt-hours annually.
• Diverted nearly 1,500 tons of waste from landfills since 2017 (through partnership with Green Standards), resulting in a reduction of 4,000 metric tons of carbon emissions.
• Donated over 8,000 pounds of food in 2023 (through partnership with Copia), providing more than 6,700 meals and diverting 25,000 pounds of carbon emissions and conserving 1.85 million gallons of water.
• Launched DocuSign to branch network in 2023, with initial launched forms representing more than 60% of total paper volume in branches.
• Redesigned client statements with goal of reducing paper by 40%.

Social Achievements

• Created new ways to activate Schwab’s employee value proposition (EVP), providing resources to help leaders integrate our EVP into the entire employee lifecycle.
• Adopted a new Hybrid Work & Flexibility approach.
• Made a one-time stock option grant of $1,000 to each employee.
• Announced an enhanced career development program, Grow with Schwab.
• Increased investment in Manager Excellence platforms and programs.
• Expanded the quarterly employee engagement survey to include new questions on inclusion.
• Welcomed third cohort of scholars into the Charles Schwab Scholars in Financial Planning Endowed Scholarship program.
• Partnered with Ariel Investments LLC to conduct the Black Investor Survey.
• Created Fair & Responsible Banking group to ensure fair treatment of all clients and communities.

Governance Achievements

• Nominating and Corporate Governance Committee of Schwab’s Board of Directors has primary oversight of our ESG programs and priorities and reports to the full board.
• Over 76% of our board is independent from management.
• Compensation Committee oversees and approves executive compensation program.
• Maintained a number of workplace and corporate compliance policies and standards, as well as avenues for reporting and oversight.

Climate Goals & Targets

Environmental Challenges

• Integrating TD Ameritrade and harmonizing cultures.
• Addressing cybersecurity risks in a modern threat landscape.
• Managing the evolving ESG landscape and meeting diverse client expectations regarding ESG investing.
• Balancing commitment to workplace flexibility with serving clients and fostering in-person collaboration.

Mitigation Strategies

• Transitioned most TD Ameritrade clients and advisors to the Schwab platform.
• Implemented a defense-in-depth approach for addressing cybersecurity risk (administrative, technical, and physical safeguards).
• Provided clients with a wide range of ESG investment products and resources.
• Conducted employee engagement surveys and adopted a hybrid work approach.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing environmentally responsible products (FSC-certified paper, recycled content, high-yield ink, rechargeable batteries).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services, solar investments.

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Highest score in the J.D. Power 2023 U.S. Full-Service Investor Satisfaction StudySM
• IBD Most Trusted Bank award
• 100 on the 2023 Disability Equality Index
• 100 score on the Human Rights Campaign’s Corporate Equality Index
• Forbes America’s Best Employers for Women
• Forbes America’s Best Large Employers
• The Civic 50