Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Community Engagement
• Environmental Sustainability
• Governance
• Small Business Lending

Environmental Achievements

• Saved 361 metric tons of carbon emissions through paperless transactions, recycling, and shredding.
• Invested $165 million in six solar energy projects.
• Installed a solar power system generating 500,000 kWh annually.
• Installed water-efficient fixtures saving 600,000 gallons of water annually.
• Provided $38 million in financing for solar projects.
• Provided $2.38 million loan for methane gas conversion to electricity.
• Provided $10 million line of credit for clean energy solutions.

Social Achievements

• 94% of workforce are people of color; 66% are women.
• Invested $497 million in affordable housing projects.
• Approved 36 loans totaling $13.76 million through the Community Homebuyers Program.
• Approved 27 grants totaling $220,000 through the Down Payment Assistance Program.
• Provided $2.4 million in grants to 228 community organizations.
• 160 employees volunteered over 1,500 hours.
• Committed 50% of small business loans to businesses with gross annual revenue of $1 million or less or loan amounts under $150,000.

Governance Achievements

• 11 of 12 board members are of minority descent; 25% of board seats are held by women.
• Annual training for employees on anti-money laundering, anti-bribery, privacy, cybersecurity, and identity theft.

Climate Goals & Targets

Environmental Challenges

• Increasing environmental challenges

Mitigation Strategies

• Sustainability initiatives throughout business operations to reduce carbon footprint.
• Encouraging paperless transactions, online banking, and hybrid work-from-home model.
• Investing in energy-efficient technologies (LED lighting, solar power, electric vehicle charging stations).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Cathay Bank Vendor Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption through LED lighting and a solar power system generating an average of 500,000 kilowatts of electricity annually, resulting in 40% average annual savings.
• Saved 648,096 kilowatt hours of energy, conserved 416,005 gallons of water, prevented 17,516 pounds of waste, and averted 1,031 metric tons of carbon emissions through a secure shredding program.
• Installed water-efficient fixtures saving an estimated 600,000 gallons of water annually.
• Installed electric vehicle charging stations.
• Invested $202 million in seven solar energy projects as of December 31, 2022.

Social Achievements

• Invested $557 million in low-income housing tax credit (LIHTC) projects as of December 31, 2022.
• Offered Community Checking accounts designed to provide banking access to underserved individuals.
• Provided at least 50% of small business loans (SBL) to businesses with gross annual revenue of $1 million or less or per-loan amount of less than $150,000.
• Originated 125 community development loans totaling $421.2 million in 2022.
• Approved 61 loans totaling $26.6 million and 51 down payment assistance grants totaling $428,113 through the Community Homebuyers Program and Down Payment Assistance Program.
• Cathay Bank Foundation donated $2.4 million to 228 community organizations in 2022.
• Provided 2,276 volunteer hours (average 10.7 hours per team member) in 2022 for various community initiatives including financial literacy workshops, tax preparation, and homeownership workshops.
• 12% of the workforce was promoted to higher or management positions in 2022.

Governance Achievements

• Established a Nomination and Governance Committee to oversee ESG and sustainability-related matters.
• Implemented a Code of Conduct addressing conflict of interest, protection of company and client information, personal conduct, compliance with laws and regulations, anti-corruption and anti-bribery, whistleblower policy, confidentiality, anti-competition behavior, and workplace safety.
• Maintained a robust Information Security Program leveraging various guidelines and frameworks (FFIEC, NIST, etc.).

Climate Goals & Targets

Environmental Challenges

• Increasing environmental challenges globally.
• Maintaining a strong talent pool.

Mitigation Strategies

• Implemented sustainability initiatives throughout business operations to reduce carbon footprint.
• Invested in employee training and development programs.
• Implemented a hybrid work-from-home model to reduce business travel and emissions.

Supply Chain Management

Responsible Procurement

• Cathay Bank Vendor Diversity Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB (now part of IFRS Foundation)

Awards & Recognition

• U.S. Best-in-Class Employer for 2022 by Gallagher

Environmental Metrics

ESG Focus Areas

• Business ethics and compliance
• Information security
• Enterprise risk management
• Community development
• Affordable housing
• Financial literacy
• Workforce development
• Diversity and inclusion
• Environmental sustainability

Environmental Achievements

• Reduced energy consumption by 35% annually through onsite solar power system at Corporate Center.
• Saved 600,000 gallons of water annually through water-efficient fixtures.
• Securely shredded and recycled 410,020 pounds of paper, resulting in resource conservation and emission reduction.
• Invested $240 million in eight solar energy projects as of December 31, 2023.

Social Achievements

• Invested $595 million in LIHTC projects for affordable housing.
• Originated $433 million in community development loans, with $239 million used for affordable housing.
• Offered Community Checking accounts meeting Bank On National Account Standards.
• Provided $2.4 million in grants to 242 community organizations.
• Awarded $510,240 in down payment assistance grants to 51 households through the Cathay Bank Down Payment Assistance Program.
• Assisted a nonprofit organization in securing a $25,000 AHEAD Grant.
• Successfully assisted five homebuyers in obtaining up to $50,000 grants each through the FHLB Middle-Income Down Payment Assistance Program.
• Team members volunteered 2,950 hours in community development, averaging 9.9 hours per participant.
• Team members volunteered 277 hours for the VITA program.
• Team members volunteered 153 hours in financial literacy programs benefiting 5,720 attendees.
• Team members volunteered 575 hours for first-time homeownership workshops for 284 attendees.

Governance Achievements

• Implemented a clawback policy for executive compensation.
• Established a robust Information Security Program aligned with FFIEC guidelines.
• Maintained a robust AML/CFT/OFAC and FCPA Compliance Program.
• Conducted annual training for all team members on various compliance topics.
• Implemented a Code of Conduct addressing conflict of interest, compliance with laws, anti-competition behavior, personal conduct, confidentiality, and whistleblower policy.

Climate Goals & Targets

Environmental Challenges

• Escalating global environmental challenges.
• Managing various risks inherent in banking operations.

Mitigation Strategies

• Integrated environmental initiatives throughout business operations.
• Implemented a comprehensive enterprise-wide risk management program with three lines of defense.
• Incorporated ESG considerations into risk management processes, including climate-related risks in real estate lending.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Cathay Bank Vendor Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Community Checking accounts

Awards & Recognition

• Virgin Pulse 2023 Thrive Award
• U.S. Best-in-Class Employer by Gallagher