Climate Change Data

Environmental Metrics

ESG Focus Areas

• Client Services and Satisfaction
• Climate Change (Climate Risk)
• Community Investment and Involvement
• Corporate Strategy and Capital Allocation
• Cybersecurity and Data Privacy
• Diversity, Equity, and Inclusion
• Enterprise Risk Management
• Ethical Conduct
• Operational Sustainability
• Purpose and Culture
• Stakeholder Engagement
• Sustainable Finance (Climate Opportunities)
• Talent Acquisition and Retention
• Technology and Innovation
• Wealth and Income Inequality

Environmental Achievements

• Set a goal for net zero greenhouse gas emissions by 2050
• Reduced Scope 1 emissions by 35% by 2030
• Reduced Scope 2 (location-based) emissions by 35% by 2030
• Reduced water consumption by 25% by 2030 at locations where Truist receives a water bill
• Published 2021 ESG and CSR Report that disclosed Scope 1, Scope 2, and certain categories of Scope 3 GHG emissions
• Published the Truist 2022 Task Force on Climate-Related Financial Disclosures (TCFD) Brief with interim highlights
• Published the Truist 2022 Climate Lobbying Summary
• Published the Truist Social Bond Impact Report in March 2022
• Achieved a score of B on our 2022 CDP Disclosure
• Added more professionals with analytic, climate risk, and sustainability experience and expertise
• Created a new Risk, Finance, and ESG Data Analytics Office
• Named a chief resilience officer
• Supporting the circular economy by purchasing remanufactured furniture
• Decommissioned two obsolete enterprise data centers and a third smaller data center
• Launched a comprehensive refrigerant management program
• Implemented a chiller optimization project
• Planted more than 1 million trees through a partnership between American Forests and Truist's LightStream loan program
• Shredded and recycled 16,150,250 pounds (7,326 metric tons) of paper
• Spent $5 million at over 150 locations on LED lighting and energy management systems
• Invested over $500,000 in HVAC optimization and smart irrigation projects

Social Achievements

• Exceeded overall Community Benefits Plan commitment to invest or lend $60 billion to low- and moderate-income borrowers and in LMI communities over a three-year period
• Made a $120 million commitment to strengthen small businesses, focusing on Black-, Latine-, and women-owned businesses
• Awarded a $60 million New Markets Tax Credit allocation
• Raised our minimum wage to $22 per hour across the U.S.
• Increased ethnically diverse representation in senior leadership roles to 17.2%
• Filled 60% of early career program and internship seats with diverse candidates
• Expanded Grow, Recruit, and Accelerate Development (GRAD) program
• Continued commitment to various HBCUs
• Used a qualitative scorecard that considers corporate responsibility and sustainability performance when evaluating executive compensation
• Introduced Truist One Banking, which is estimated to save consumers $300 million per year by 2024
• Expanded access to digital early literacy program, WORD Force, to all children nationwide
• Expanded CHIP, making down payment requirements more achievable
• Expanded mortgage grant down payment assistance program
• Participants in the emergency savings pilot program saved $37 million
• Offered small personal loans and lines of credit
• Enhanced Dynamic Business Checking Account
• Offered unsecured simple business loans of up to $50,000
• Announced the creation of Where It Starts, a $22 million multiyear program to strengthen small businesses
• Donated Tucker branch to Operation HOPE
• Made investments in venture capital funds, nonprofits, and CDFIs
• Expanded multicultural banking centers
• Held 2,442 sessions of Bank on Your Success courses, reaching more than 50,007 individuals
• Truist Momentum reached 184,947 employees
• Truist Financial Foundations reached 243,032 students
• Sent four semitrucks loaded with provisions for Hurricane Ian relief
• Made donations for relief and recovery totaling $1 million in Florida and another $250,000 in South Carolina
• Donated $150,000 for relief and recovery efforts after Tropical Storm Nicole
• Donated $1 million to the American Red Cross Annual Disaster Giving Program
• Expanded support for the American Red Cross with a $5 million grant
• Teammates dedicated approximately 72,000 hours to volunteering
• Donated more than $122 million through the Truist Foundation, Truist Charitable Fund, CRA philanthropic grants, and donations made through the Commercial Community Bank
• Exceeded commitment to invest $60 billion in communities through CBP

Governance Achievements

• Updated Code of Ethics
• Elevated UDAAP policy to Level 1, ensuring board-level oversight
• Established and maintains an enterprise Anti-Money Laundering Program
• Has programs that address anti-bribery and anti-corruption
• Board oversees climate-related risks through the board Risk Committee
• More fully integrated climate risk considerations into Enterprise Risk Management framework
• Created a new Risk, Finance, and ESG Data Analytics Office
• Board of directors is 43% racially, ethnically, or gender diverse
• Conducted annual pay equity review
• Developed an ESG Bond Framework

Climate Goals & Targets

Environmental Challenges

• Challenges, delays, and costs while adopting a best-of-both technology stack during merger integration
• Rising interest rates and increasing housing prices making homeownership more challenging
• More than one-third of Americans can't cover an unexpected expense of $400
• Systemic barriers to multigenerational wealth in marginalized communities
• Disproportionate impact of the coronavirus pandemic on ethnically diverse and women-owned businesses
• Loss of affordable housing units
• Evolving privacy regulations
• Frequency and sophistication of malicious cyber activity
• Need for digital infrastructure to support increased reliance on digital services

Mitigation Strategies

• Worked diligently to resolve and overcome technology challenges from merger integration
• Offered affordable mortgage products, mortgage grants, first-time homebuyer programs, and partnerships with HUD-certified nonprofits
• Expanded CHIP and mortgage grant down payment assistance program
• Partnered with BlackRock’s philanthropic Emergency Savings Initiative (ESI)
• Introduced Truist One Banking
• Made investments in venture capital funds, nonprofits, and CDFIs
• Provided loans and investments to developers, syndicators, CDFIs, and other businesses
• Redesigned public-facing Truist Privacy page and created a new self-service Privacy Center
• Assembled a cross-functional team of cybersecurity professionals
• Implemented multiple layers of controls to protect client accounts
• Conducted training including tabletop exercises that simulate cybersecurity crises
• Investing in energy management systems, more efficient HVAC, LED lighting, smart irrigation systems, and other technology

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier diversity program
• Tier2 program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Sustainable finance opportunities

Reporting Standards

Frameworks Used: SASB, GRI, WEF, CDP, UN SDGs, TCFD

Third-party Assurance: Apex Companies

Sustainable Products & Innovation

• Sustainability-linked loans
• Truist One Banking

Awards & Recognition

• 2023 Newsweek ranking of America’s Most Responsible Companies
• 2023 JUST Capital and CNBC Most Just Companies—fifth place overall
• 2022 JUST Capital Workforce Equity and Mobility Ranking
• 2023 JUST Capital banking industry rankings—second place
• 2023 JUST Capital U.S. Large Cap Diversified Index (JULCD)
• 2023 Top Corporation for Women Business Enterprises from WBENC
• 2022 Forbes America’s Best Employers for Diversity
• 2022 Top 50 Employers Readers Choice by Careers & the disABLED Magazine
• 2022 Top 50 Employers Readers Choice by Equal Opportunity Magazine
• Fortune World’s Most Admired Companies
• 2022 Best Place to Work for LGBTQ+ Equality
• 2022 Bank of the Year in GlobalCapital’s US Securitization Awards
• Deal of the Year award from GlobalCapital

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Launched an expanded Corporate Responsibility & Sustainability (CR&S) committee.
• Completed recalculation of prior year energy consumption and GHG emissions using a consistent approach.
• Advanced the integration of climate risk into our risk management framework and risk programs.
• Improved data quality and processes to assess risk, measure financed emissions, and analyze carbon reduction pathways and interim targets.
• Helped clients meet sustainable financing needs by providing $1.7 billion of new direct capital commitments for renewable energy transactions and supporting over $22 billion of sustainable finance.
• Expanded abilities to pursue sustainable finance opportunities by adding teammates in the wholesale bank.
• Matured processes used to calculate Operational GHG Emissions by improving data collection for Scope 1 and 2 calculations, preparing to increase controls for GHG calculations, and expanding internal collaborations to collect data and develop methodologies for new Scope 3 categories.
• Began reporting Scope 3 Category 5 (Waste Generated in Operations) and Category 8 (Upstream Leased Assets) emissions.
• Invested $1.3 million in LED lighting and energy management systems across more than 45 locations, and $875,000 in HVAC optimization and smart irrigation systems.
• Launched an accelerated HVAC replacement program delivering over 100 projects.
• Transitioning to more energy-efficient infrastructure, such as decommissioning older data centers.
• Conducting ASHRAE Level 2 Energy Audits and retro-commissioning projects at three flagship properties.
• Reduced footprint by more than 900,000 square feet.
• Engaged with roughly 80 of our largest suppliers to collect public information on climate change and sustainability.

Social Achievements

• Launched a new partnership with the Arbor Day Foundation to plant trees in low- to moderate-income communities.
• Partnered with Bee Downtown to sponsor beehives at Truist offices.
• Platinum sponsor of the 2023 Sustain Charlotte Awards.
• Families & Workers Fund announced a $50 million initiative to advance careers in clean energy and infrastructure industries (partially funded by the Truist Foundation).

Governance Achievements

• Established a Net Zero by 2050 goal.
• Incorporated climate-related risk educational materials into the enterprise risk training program.
• Held development sessions to inform teammates on climate risk integration efforts.

Climate Goals & Targets

Environmental Challenges

• Achieving Net Zero goal depends on factors beyond Truist's control (supportive policies, technological development, finance, ambition of governments and individuals).
• Data limitations and assumptions in GHG emission calculations and financed emissions.
• Managing climate-related risks across various time horizons (short, medium, long-term).
• Integrating climate risk across all eight primary risk types.
• Improving data quality and access for financed emissions calculations.

Mitigation Strategies

• Building capacity to measure and monitor climate-related risks.
• Leveraging qualitative and quantitative approaches to assess risks.
• Using scenario analysis to generate forecasts and quantitative metrics.
• Incorporating climate-related factors in enterprise stress testing scenarios.
• Developing processes and methodologies for performing end-to-end climate scenario analysis calculations.
• Improving data quality and access for financed emissions calculations.
• Working to implement recommendations from a third-party assessment of climate scenario analysis capabilities.
• Improving the efficiency of data collection for GHG calculations.
• Preparing to increase controls for GHG calculations to align with evolving regulatory reporting requirements.
• Expanding internal collaborations to collect data and develop methodologies for new Scope 3 categories.

Supply Chain Management

Supplier Audits: Engaged with roughly 80 of our largest suppliers.

Responsible Procurement

• Engaging with suppliers to collect public information on climate change and sustainability practices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, floods, wildfires)
• Damage to Truist facilities
• Impacts on property values in real estate portfolios

Transition Risks

• Regulatory changes
• Market shifts
• Changes in the energy industry
• Impacts on borrower creditworthiness

Opportunities

• Sustainable finance offerings
• Helping clients manage climate-related risks and opportunities
• Reducing operational emissions
• Improving general sustainability

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, CDP, IFRS Foundation, UN SDGs, PCAF

Third-party Assurance: Third-party verification firm (for Scope 1, Scope 2, and certain Scope 3 emissions data)

Sustainable Products & Innovation

• Green loans
• Sustainability-linked loans
• Social loans
• Green bonds
• Social bonds
• Sustainable bonds