Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Achieved a 40% reduction in Scope 1+2 (market-based) GHG emissions from a 2014 baseline by 2029.
• Completed 10 energy efficiency projects in 2020, resulting in an annual reduction of nearly 1000 MWh of electrical energy.
• Invested over $1.2 billion in renewable energy through tax credits in 2020.
• Launched two new debit cards made with recovered ocean-bound plastic.

Social Achievements

• In 2020, U.S. Bank gave over $67 million to non-profit organizations.
• Awarded NUMIX the inaugural U.S. Bank Cleantech Inclusion Award.

Governance Achievements

• Board-level oversight of climate-related issues through the Risk Management Committee and the Public Responsibility Committee.
• Integration of climate risk into the Bank’s Risk Appetite Statement.
• Establishment of a Climate Risk Working Group in 2020.

Climate Goals & Targets

Environmental Challenges

• Increased indirect (operating) costs due to rising mean temperatures.
• Increased credit risk due to increased severity and frequency of extreme weather events.
• Reputational risk due to increased stakeholder concern.
• Credit risk related to chronic physical climate change impacts on environmentally sensitive industries.

Mitigation Strategies

• Upgrading facilities to be more energy efficient (budget of $2 million annually).
• Evaluating customer relationships in relation to recent trends and implementing risk management processes.
• Managing environmental risks associated with high-impact customers.
• Integrating climate risk into existing risk management framework and using stress testing scenarios.

Supply Chain Management

Supplier Audits: 0.15% of suppliers by number; 6% of total procurement spend

Responsible Procurement

• Encouraging business line consideration of supplier climate change programs.

Climate-Related Risks & Opportunities

Physical Risks

• Rising mean temperatures
• Increased severity and frequency of extreme weather events

Transition Risks

• Changes in energy regulations and prices
• Market shifts related to low-carbon economy

Opportunities

• Development and expansion of low-emission goods and services
• Shift in consumer preferences towards sustainable products
• Access to new and emerging markets in the green economy

Reporting Standards

Frameworks Used: CDP, Greenhouse Gas Protocol, ISO 14064-1, ISO 14064-3, IEA GHG Emissions from Electricity Generation

Third-party Assurance: Third-party limited assurance

Sustainable Products & Innovation

• Ocean-bound plastic debit cards
• Renewable energy debt product (planned)

Awards & Recognition

• One of the 2021 World’s Most Ethical Companies
• Fortune’s most admired superregional bank

Environmental Metrics

ESG Focus Areas

• Governance, Risk Discipline & Information Security
• Talent, Diversity & Culture
• Ethical & Responsible Banking
• Financial Inclusion & Well-Being
• Community Engagement
• Closing the Racial Wealth Gap
• Our Commitment to a Sustainable Future
• Client Engagement & Support
• Vendor & Community Partnerships

Environmental Achievements

• Met 60% greenhouse gas emission reduction goal in 2021 (20 years ahead of schedule)
• Invested $830 million in Renewable Energy Tax Credit (RETC) equity
• Issued a debit card made of reclaimed ocean-bound plastic

Social Achievements

• Launched Access Commitment™ to help close the racial wealth gap
• Provided more than $197 million in capital to Black-owned or -led businesses and organizations
• Increased minimum base hourly wage to $18/hour for all U.S. employees
• Increased parental leave to 10 weeks for both birth and non-birth parents
• Added Juneteenth and My Holiday as company holidays
• Expanded Employee Assistance Fund program
• Employees raised $13 million for over 14,000 nonprofits and contributed 31,000 volunteer hours

Governance Achievements

• Established a formal ESG program office
• Appointed a new climate risk executive
• Implemented a qualitative review process for executive bonuses based on ESG considerations
• Received an “Outstanding” rating in its most recent Community Reinvestment Act (CRA) examination

Climate Goals & Targets

Environmental Challenges

• Elevated employee attrition rates (returning to pre-pandemic levels)
• Competitive market for hourly and front-line workers
• Climate change and its associated risks (physical and transition)
• Cybersecurity threats

Mitigation Strategies

• Implemented actions to support recruitment and retention of employees
• Enhanced risk management framework to include climate-risk specific statements and metrics
• Created a climate risk executive position and climate risk working group
• Robust cybersecurity systems and protocols
• Comprehensive third-party risk management program

Supply Chain Management

Responsible Procurement

• Supplier diversity program
• ESG scores incorporated into procurement process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in environmental finance

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Third-party Assurance: Apex Companies, LLC (limited assurance for emissions data)

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 13
• Goal 17

Sustainable Products & Innovation

• Ocean-bound plastic debit card

Awards & Recognition

• World’s Most Ethical Companies® by Ethisphere Institute

Environmental Metrics

ESG Focus Areas

• Diversity, Equity, and Inclusion (DEI)
• Community Reinvestment Act (CRA)
• U.S. Bancorp Impact Finance
• U.S. Bank Foundation

Environmental Achievements

• Reduced operational GHG emissions by more than 60% since 2014
• Invested $2.7 billion in renewable energy tax equity across 22 projects
• Set a goal to source 100% renewable electricity by 2025 and achieve net-zero GHG emissions by 2050

Social Achievements

• Increased minimum base pay rate to $20/hour in the U.S.
• Provided financial education to approximately 1.5 million individuals
• Provided $321 million in capital to Black-owned or -led businesses and organizations through U.S. Bancorp Impact Finance
• 311,000 employee volunteer hours, equated to a $9.9 million investment

Governance Achievements

• Received an “Outstanding” rating for its recent Community Reinvestment Act (CRA) examination
• Implemented a qualitative review process for determining executive bonuses based on ESG and community-related initiatives

Climate Goals & Targets

Environmental Challenges

• Competitive market for hourly and front-line workers
• Evolving stakeholder needs and expectations regarding ESG
• Managing climate-related risks

Mitigation Strategies

• Increased minimum wage to $20/hour
• Dedicated resources to advance climate risk work and created a sustainable finance team
• Integrated climate risk into risk management framework
• Developed a sustainable finance framework to guide lending, investing, and other activities

Supply Chain Management

Responsible Procurement

• Supplier diversity program
• Tier 2 reporting process encouraging prime suppliers to use diverse subcontractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 13
• Goal 17

Initiatives align with these goals to end poverty, protect the planet, and improve lives.

Sustainable Products & Innovation

• Renewable energy lending product
• U.S. Bank Safe Debit account
• U.S. Bank Smartly Checking account

Awards & Recognition

• One of the 2023 World’s Most Ethical Companies®
• 2023 World’s Most Admired Companies, No. 1 Superregional Bank
• Top 50 Companies for Diversity
• Best Places to Work for LGBTQ+ Equality
• Best for Vets: Employers
• One of the 100 Best Companies for working parents
• UK’s Best Workplaces 2022 – Elavon

Environmental Metrics

ESG Focus Areas

• Ethical & responsible banking
• Talent, diversity & culture
• Governance, risk discipline & information security
• Sustainable operations & products
• Financial inclusion
• Supplier development & diversity
• Community engagement
• Affordable housing
• Climate change

Environmental Achievements

• Reduced operational greenhouse gas (GHG) emissions by more than 60% since 2014
• Achieved 98% renewable electricity in own operations (as of Dec 31, 2022)
• Invested $2.6 billion in renewable energy tax equity across 28 projects in 2023
• Set a goal to achieve net zero GHG emissions by 2050
• Set a goal to finance $50 billion in environmental initiatives by 2030

Social Achievements

• Launched U.S. Bank Safe Debit account with no overdraft fees
• Launched U.S. Bank Smartly Checking with features to help clients manage cash flow
• Launched U.S. Bank Simple Loan, a small-dollar loan with no late or prepayment fees
• Expanded Business Access Advisor program to serve Hispanic business owners
• Provided financial education to 1.5 million people in 2023
• Launched U.S. Bank Asistente Inteligente, a Spanish-language voice assistant in the mobile app
• Partnered with Operation HOPE to expand economic opportunity
• Graduated first cohort of new-to-industry mortgage loan officers serving underserved communities

Governance Achievements

• Named one of the 2024 World’s Most Ethical Companies by Ethisphere Institute (10 consecutive years)
• Implemented a robust director education program
• Enhanced conflicts of interest management program
• Qualitative review process for executive bonuses based on ESG performance
• Established Cybersecurity and Technology Subcommittee

Climate Goals & Targets

Environmental Challenges

• Climate change risks in lending and financing
• Biodiversity loss
• Just transition challenges
• Environmental footprint of operations
• Addressing the wealth gap for underserved communities
• Cybersecurity risks

Mitigation Strategies

• Environmental and Social Risk Policy (ESRP) to manage heightened risks
• Due diligence for clients in high-impact industries
• Investment in renewable energy projects
• U.S. Bank Access Commitment to close the wealth gap
• Enterprise Data Protection and Privacy (EDPP) Program
• Robust cybersecurity program with independent assessments

Supply Chain Management

Responsible Procurement

• Supplier diversity program
• Tier 2 strategy to maximize opportunities with diverse suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 13
• Goal 17

Initiatives align with UN SDGs to end poverty, protect the planet, and improve lives

Sustainable Products & Innovation

• Credit cards made from recycled plastic
• Eco-friendly debit cards made from recovered ocean-bound plastic

Awards & Recognition

• 2024 World’s Most Ethical Companies® by Ethisphere Institute
• 2024 Fortune World’s Most Admired Companies™, No. 1 Superregional Bank
• Scored 100 on 2023 Disability:IN Disability Equality Index
• Top 50 Companies for Diversity Fair360
• Equality 100 Award: Leader in LGBTQ+ Workplace Inclusion
• 2023 Best-of-the-Best Corporations Consortium Council
• Top Companies for Supplier Diversity by Fair360
• Best Corporations for Veteran’s Business Enterprises by National Veteran-Owned Business Association