Climate Change Data

Environmental Metrics

ESG Focus Areas

• COVID-19 Response
• Environment and Sustainability
• Diversity, Equity and Inclusion
• Inclusive Products and Services
• Supporting Communities

Environmental Achievements

• 100% carbon neutral in 2020 by offsetting all emissions generated by our operations
• Estimated reduction of 70,000 pounds annually of plastic waste across the US
• Ranked #2 in Renewable Project Finance MLA globally and #3 in the United States from 2018-2020
• Financed more than 7.5 Gigawatts (GW) of renewable energy capacity

Social Achievements

• Expedited nearly $9 million to COVID-19 relief efforts
• $5.2 million Racial Equity Initiative to help address racial equity in our communities
• Launched an Access Program for Minority- and Women-Owned Businesses as part of the Paycheck Protection Program
• Seven Employee Resource Groups (ERGs) with 2,500+ members
• Over 15,000 hours of virtual volunteering
• 14,293 small business loans for $1.56 billion, including 2,088 loans for $245 million in low- to moderate-income communities
• 969 Affordable Mortgages

Governance Achievements

• Upgraded Community Reinvestment Act (CRA) rating from “Satisfactory” to “Outstanding”

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its economic and emotional impact on customers, employees, and communities
• Social and racial injustice

Mitigation Strategies

• Established a Temporary Emergency Paid Leave Program
• Provided $250 a week in pay premiums for frontline workers
• Implemented detailed protocols to ensure employee health and safety
• Implemented flexible scheduling
• Provided customer payment suspension, deferrals, and fee waivers
• Stopped collections calls and suspended foreclosures
• $25 million commitment in capital to Community Development Finance Institutions (CDFIs)
• $5.2 million Racial Equity Initiative
• Access Program for Minority- and Women-Owned Businesses

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Empowering people and businesses
• Fostering inclusive communities
• Supporting the green economy

Environmental Achievements

• Achieved carbon neutrality in operations since 2020
• 100% elimination of single-use plastics where feasible
• 47.7% electricity from renewable sources

Social Achievements

• Completed five-year Inclusive Communities Plan, investing $14B (exceeding goal by $3B)
• Nearly 50% of jobs filled internally
• Raised minimum wage to $20 per hour
• Launched Operation Hope’s HOPE Inside financial wellness program

Governance Achievements

• Established the US ESG Office and conducted the first US ESG materiality assessment
• More formally established ESG and climate risk functions
• Enhanced board oversight and reporting
• Established ESG Working Group
• Enhanced supplier diversity program

Climate Goals & Targets

Environmental Challenges

• Global pandemics, geopolitical tensions, extreme weather events, market volatility, and inflationary concerns
• The Great Resignation impacting workforce
• Data limitations and uncertainties in assessing climate risks

Mitigation Strategies

• Incorporating climate risk into Enterprise Risk Management Framework
• Refining approach to managing ESCC risks
• Adding climate risk considerations to Material Risk Program
• Creating a climate risk function within Enterprise Risk Management
• Forming a cross-functional working group on climate-change-related risk
• Shifting recruitment strategies to address workforce challenges

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity from weather events (floods, droughts, wildfires, storms and hurricanes)
• Long-term weather trends (sea level and temperature increases, precipitation patterns)

Transition Risks

• Policy actions and regulation
• Technology risk
• Market shifts
• Regulatory changes

Opportunities

• Development of energy-efficient products
• Growth of sustainable financial product markets

Reporting Standards

Frameworks Used: GRI Standards (core option), SASB, TCFD, WEF Stakeholder Capitalism metrics

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 10 (Reduced inequalities)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

Initiatives contribute to these goals through green finance, community development, workforce development, and diversity and inclusion programs.

Sustainable Products & Innovation

• Green and sustainability-linked bonds
• Sustainability-linked loans
• Electric vehicle lending

Awards & Recognition

• Global ESG Deal of the Year (Vineyard Wind)
• Renewables Deal of the Year - North America (Vineyard Wind)

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Affordable Housing

Environmental Achievements

• Allocated $279M to renewable energy projects (wind and solar), resulting in an estimated 254,243 tons of CO2 avoided emissions.

Social Achievements

• Allocated $221M to affordable housing projects, financing 5,479 individual housing units and impacting 17,531 individuals. Generated an estimated $54,853,321 in beneficiary savings.

Governance Achievements

• Engaged Sustainalytics for a second party opinion (SPO) on the Sustainability Note framework and an independent impact report.

Climate Goals & Targets

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Santander Group Green, Social & Sustainability Funding Global Framework, ICMA’s Social Bond Principles, Green Bond Principles, Social Bond Principles, Green Loan Principles, Social Loan Principles

Third-party Assurance: Sustainalytics (Limited Assurance)