Climate Change Data

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Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:5,398.34 MT CO2e
Scope 1 Emissions:1,451.86 MT CO2e
Scope 2 Emissions:3,946.48 MT CO2e
Waste Generated:588,000 pounds of shredded paper recycled
Carbon Intensity:8.59 MT CO2e per million in revenue (2022)

ESG Focus Areas

  • Business Ethics
  • Environmental Product Responsibility
  • Data Privacy and Security
  • Board Composition
  • Consumer Financial Protection

Environmental Achievements

  • Calculated Scope 1 and 2 emissions for 2021 and 2022.
  • Financed renewable energy and environmental sustainability projects.
  • Reduced square footage of actively owned and managed space due to remote work.

Social Achievements

  • Hired 571 new team members.
  • Launched two new Employee Resource Groups (ERGs): Women in Leadership and Working Parents and Caregivers.
  • Achieved 100% pay equity for employees of all genders and races.
  • 96.7% of employees completed unconscious bias training.
  • Launched Flexible Workplace Program, with nearly 40% of workforce working remotely by year-end.
  • Decreased voluntary turnover rate to 21% from 23% in 2021.
  • Filled 20% of open positions with internal candidates.
  • Offered eight weeks of gender-neutral paid parental leave and 12 weeks of short-term disability.

Governance Achievements

  • Maintained a mature ethics program.
  • Refined governance practices, including succession planning and Board skills focus.
  • Developed a dashboard to enhance accountability for responding to themes identified in the annual Board performance evaluation.
  • Approved a new Third-Party Provider (TPP) Lifecycle Management Policy.
  • Approximately 70% of executives had an ESG or DEI goal linked to their compensation package.

Climate Goals & Targets

Environmental Challenges

  • Tight labor market resulting in restricted talent supply.
  • Evolving regulatory landscape around ESG disclosures.
  • Potential climate-related risks impacting business.
  • Maintaining data security in a sophisticated threat landscape.
Mitigation Strategies
  • Direct sourcing and sprint recruitment efforts.
  • Elimination of salary history discussions in hiring.
  • Establishment of procedures to meet evolving ESG disclosure regulations.
  • Scenario analysis to assess climate-related risks and resilience.
  • Significant investment in cybersecurity capabilities and adherence to ISO27001 framework.
  • Implementation of a new TPP Lifecycle Management Policy.
  • Regular audits of locations to identify areas for environmental investment.
  • Use of a third-party platform to track and pay utility invoices with automated alerts for consumption outside predefined parameters.

Supply Chain Management

Responsible Procurement
  • Third-Party Provider (TPP) Lifecycle Management Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, floods
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Financing energy-efficient projects

Reporting Standards

Frameworks Used: SASB, TCFD

Third-party Assurance: Limited Assurance provided for Scope 1 and 2 emissions calculations by independent public accountants

Sustainable Products & Innovation

  • PowerWise Home Loan
  • HomeFresh Second Mortgage

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:4,639.08 tCO2e/year (location-based); 4,848.14 tCO2e/year (market-based)
Scope 1 Emissions:1,254.40 tCO2e/year
Scope 2 Emissions:3,384.68 tCO2e/year (location-based); 3,593.74 tCO2e/year (market-based)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced Scope 1 and Scope 2 emissions from 5,788.08 MT CO2e in 2021 to 4,639.08 MT CO2e in 2023 (location-based) and from 5,788.08 MT CO2e in 2021 to 4,848.14 MT CO2e in 2023 (market-based).

Social Achievements

  • Offered Community Cares loan, an interest-free, zero-fee personal loan for emergency financing.

Governance Achievements

  • Established a Climate Risk Working Group in 2023 to enhance the Bank’s climate risk program.
  • Incorporated environmental risk assessments into credit underwriting for select loan types.

Climate Goals & Targets

Environmental Challenges

  • Physical risks (acute and chronic hazards from extreme weather events) and transition risks (regulatory, technology, stakeholder, and legal risks) related to climate change.
  • Adapting to new regulations from the SEC and California regarding climate risk management.
Mitigation Strategies
  • Engaged an independent consultant to perform scenario analyses to identify climate-related risks and opportunities.
  • Developed internal climate-related risk assessment tools.
  • Continuously monitoring and adapting strategies to comply with regulatory expectations.
  • Incorporating environmental risk assessments into credit underwriting for select loan types.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Floods, hurricanes, droughts, wildfires, heat waves, cold waves
  • Increase in mean temperatures, increase variability of precipitation patterns, sea-level rise
Transition Risks
  • Policy/regulatory changes (carbon taxes, building energy efficiency standards, carbon footprint disclosures)
  • Cost parity of renewable energy, emission abatement advancement, market eschewal of enabling tech
  • Shift away from carbon-intensive sectors by customers/consumers, investors, insurers, other lenders, suppliers/vendors, and employees
  • Increased settlement and litigation costs associated due to impact on climate and environment
Opportunities
  • Providing financing of climate-related investments, green technologies and emissions efficient projects

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Limited Assurance from independent external auditors for Scope 1 and Scope 2 emissions calculations