Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Achieved ENERGY STAR designation for seven of its largest U.S. facilities.
• Implemented programs to reduce energy consumption, paper use, and waste.
• Invested in wind power for five key facilities, supplying approximately 25% of domestic electrical consumption with wind power equivalent in 2009.
• Recycled over $100,000 of scrap metal in one building project.

Social Achievements

• Launched a global Performance Management Program.
• Achieved a 76% participation rate in the companywide employee engagement survey.
• Launched the Community Partnership program, raising $11.2 million in pledges (48% increase over 2007).
• Increased procurements with priority vendors (minority- and women-owned) by 13% to $103 million.

Governance Achievements

• CSR Committee adopted a rigorous review process and met four times in 2008.
• Exceeded 6 of 8 benchmarks measuring employee attitudes toward compliance and ethics.
• Published its first CSR Report.
• Re-visited policies to ensure adherence to laws and regulations regarding political contributions and lobbying.

Climate Goals & Targets

Environmental Challenges

• Global financial crisis impacting clients and operations.
• Difficult economic environment affecting employee well-being and community support.
• Decreased total spending impacting smaller vendors.

Mitigation Strategies

• Provided high levels of service and support to clients.
• Implemented Wellbeing, LifeWorks Work/Life, and Employee Assistance programs.
• Refined philanthropic focus on financial stability for low-income families.
• Worked to improve data capture around priority vendors and increase awareness of the program.

Supply Chain Management

Supplier Audits: 48% of suppliers provided CSR information in 2008; plan to request information from all major suppliers in 2009.

Responsible Procurement

• Evaluation of vendor CSR programs as part of the bidding process.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Mellon First Principle Fund
• Newton SRI fund (UK)
• Dreyfus Global Sustainability Fund
• Dreyfus Third Century Fund
• Global Environmental Markets (GEM) unit services (VCU custody, carbon offset escrow)

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental Sustainability
• Community Engagement
• Employee Engagement
• Responsible Business Practices

Environmental Achievements

• Reduced carbon footprint
• Achieved EPA Green Power Leadership award
• Compiled sustainability profiles of all facilities
• Earned Energy Star certifications for data centers
• Implemented green cleaning policy
• Launched corporate PaperWise program (goal of 50% paper reduction from 2008 baseline)
• Everett facility received Gold-level LEED certification
• One Wall Street improvements earned LEED CI Silver certification
• 525 William Penn Place received Gold-level LEED EB certification
• PaperWise initiative responsible for 20% drop in paper use

Social Achievements

• Launched a six-year, $6 million global workforce development initiative for vulnerable youth
• Increased employee participation in Community Partnership program
• Introduced Human Rights Statement
• Instituted a CSR Council of senior managers
• Maintained top rankings for client service
• Expanded company-sponsored affinity networks globally

Governance Achievements

• Established CSR Committee of the Board of Directors
• Instituted a CSR Council of senior managers
• Implemented Doing What’s Right campaign
• Introduced Commitment to Human Rights Statement
• Strengthened risk management framework
• Enhanced ethics and compliance training programs
• Improved business continuity planning

Climate Goals & Targets

Environmental Challenges

• Overall employee engagement declined by 2%
• Difficulty measuring outcomes of community investments
• Data collection and integrity challenges in waste management
• Developing new industry standards for ESG criteria in supplier evaluations
• Uncertainty in environmental markets related to legislation and regulation

Mitigation Strategies

• Leveraging and tailoring internal employee engagement best practices globally
• Expanding and measuring manager and employee use of development planning process
• Instituting metrics protocol for global workforce development initiative
• Implementing a targeted approach to ESG criteria in supplier evaluations, customized for each area
• Building a proprietary environmental unit custody platform (GEM) to provide market infrastructure and reduce uncertainty

Supply Chain Management

Supplier Audits: 95 key suppliers reviewed through online review of CSR reports or self-assessment surveys

Responsible Procurement

• Supplier diversity program (27% of competitive spend channeled to diverse suppliers in 2010)
• ESG criteria included in RFP for hotel partners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: Energy Star, LEED

Sustainable Products & Innovation

• Performance and Risk Analytics for Asset Owners
• Environmental Innovation Solutions (EIS) services
• Socially Responsible Investing (SRI) funds
• Global Environmental Markets (GEM) platform

Awards & Recognition

• EPA Green Power Leadership Award
• Newsweek’s Greenest Companies (ranked 47th)
• London Clean City Award (Gold)
• New Jersey Smart Workplaces Award (Platinum)
• Sustainability Roundtable Outstanding Corporate Leader of the Year

Environmental Metrics

ESG Focus Areas

• Ethics and transparency
• Operational reliability
• Stakeholder engagement
• Talent management
• Environmental sustainability
• Community support
• Diversity and inclusion
• Supplier diversity
• Responsible financing
• Human rights

Environmental Achievements

• Reduced internal copy paper consumption by 28% relative to 2008 baseline (U.S. only)
• On track to achieve a 10% greenhouse gas emissions reduction in U.S. tracked offices real estate portfolio (excluding data centers) from 2008 to 2016
• Offset 75% of U.S. electricity consumption through renewable energy investments and more than 50% of EMEA energy consumption through direct energy purchases
• Achieved a 2010 CDP score of 81, up 15 points from 2009 score

Social Achievements

• Employee engagement pulse check survey showed 66% positive engagement (up from 65% in 2010 and 63% in 2007)
• 46% of employees had a documented development plan (up from 25% in 2010)
• 46% increase over the past three years of executive women on three most senior management committees
• Grants supported 450 vulnerable youths, with 81% obtaining high school diploma/GED and/or employment
• Exceeded goal of spending at least 20% of competitive spend with diverse suppliers

Governance Achievements

• Risk appetite principles reviewed and approved by Audit and Risk Committees
• Implemented a revised performance management rating model
• Established a public website explaining key facts concerning standing instruction service for foreign exchange

Climate Goals & Targets

Environmental Challenges

• Difficult revenue growth in financial services industry due to economic slowdown, political uncertainties, changing market requirements, and regulatory demands
• Litigation involving foreign exchange services
• Job reductions impacting approximately 1,500 positions
• Global economic slowdown and legislative uncertainty reduced near-term demand for carbon trading services
• Increased regulatory demands across all markets and segments

Mitigation Strategies

• Renewed commitment to deepening client relationships, driving operational excellence, teamwork and innovation, and accountability
• Vigorously defending allegations of improper rates in foreign exchange transactions
• Minimizing impact of job losses through natural turnover and hiring freeze, providing support to affected staff
• Moved away from additional carbon trading business in 2012 due to collapsing market and risk appetite
• Introduced dynamic interactive capability for clients to customize and drill down into portfolio returns, launched money market stress-testing service, introduced automated system for margin call and collateralization process

Supply Chain Management

Supplier Audits: Assessment program to understand risks in vendor relationships; human rights added to assessment process in 2011

Responsible Procurement

• Global Procurement for supplier selection and contract development
• Supplier Development Program for diverse supplier base
• ESG issues added to due diligence for top legal vendors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001 (for several EMEA facilities), LEED (multiple certifications)

Sustainable Products & Innovation

• Socially responsible investment products
• ESG screening capabilities
• Global Environmental Markets (GEM) platform

Awards & Recognition

• Numerous awards for client satisfaction, diversity and inclusion, and community involvement (see report for details)

Environmental Metrics

ESG Focus Areas

• Market Integrity
• Our People
• Our World

Environmental Achievements

• Reduced Scope 1 and Scope 2 carbon emissions by 34% against a 2008 baseline (U.S. tracked properties, excluding data centers).
• Reached nearly $19 million in total savings from the Enterprise Data Center’s Power Usage Effectiveness (PUE) program.
• Reduced office paper use in the U.S. by 42% compared to the 2008 baseline.

Social Achievements

• Launched BNY Mellon University (BKU), a learning and development platform.
• Overall employee engagement score increased to 78%, up from 77%.
• 35% of global hires and promotions at the Managing Director level and above were women or people from diverse racial or ethnic backgrounds.
• 50% of global hires and promotions at the Vice President level were women or people from diverse racial or ethnic backgrounds.
• Donated $34.4 million to charitable organizations.
• Logged 105,000 hours of employee volunteer time.

Governance Achievements

• Inclusion in the 2013 Dow Jones Sustainability Index—North America.
• Reduced intraday credit risks associated with tri-party repo business by almost 85%.
• 48% of assets under management are covered by the UN PRI.

Climate Goals & Targets

Environmental Challenges

• Communicating the impact of social responsibility at an investments company.
• Scaling diversity and inclusion efforts at local levels.
• Addressing industry and operating environment challenges in advancing diversity.
• Maintaining ongoing awareness and education on diversity and inclusion.

Mitigation Strategies

• Improved communications emphasizing social responsibility's material impact on society.
• Refreshed global diversity and inclusion strategy with accountability measures for executives.
• Developed new recruitment programs for senior staff.
• Ongoing training programs on diversity and inclusion.

Supply Chain Management

Supplier Audits: 68 suppliers requested Human Rights Certification letter.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Relationship Management program
• Human Rights Certification letter

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001 (multiple UK locations)

Sustainable Products & Innovation

• ESG screening capabilities and tools
• SRI funds
• Global Collateral Services
• Environmental Trusts and Escrows
• Insurance-linked securities
• Social Housing Bonds
• Carbon Credits

Awards & Recognition

• Dow Jones Sustainability Index—North America
• CDP Climate Disclosure Leadership Index
• CDP Climate Performance Leadership Index
• FTSE4Good Global Benchmark Index
• Numerous other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Culture and Purpose
• Responsible Business
• Global Citizenship

Environmental Achievements

• Achieved carbon neutrality in our operations for the fifth year in a row
• Set new five-year 2025 environmental sustainability goals for reducing waste, paper, water, and energy and greenhouse gas emissions
• Named to CDP’s climate change A List for the seventh consecutive year

Social Achievements

• Paid women and minority employees in the United States more than 99% of their respective counterparts, on average, according to a 2019 internal global pay equity analysis
• Increased parental leave from 12 weeks to 16 weeks in the U.S., and global maternity company paid leave to 16 weeks in all countries
• Expanded our Transgender Guidelines: Gender Transition, Identity and Expression from the United States to our Asia-Pacific, Europe, Middle East and Africa regions
• Provided more than 3,000 hours of pro bono technical expertise to nonprofit partners, valued at more than $500,000
• Fulfilled our commitment of $1 million to the City University of New York (CUNY)

Governance Achievements

• Pledged to implement the Task Force on Climate-related Financial Disclosures (TCFD) recommendations
• Revised our Corporate Governance Guidelines to facilitate the selection of an independent Chair of the Board or a Lead Director
• Amended policies related to trading in company securities by executive officers and directors

Climate Goals & Targets

Environmental Challenges

• Maintaining a strong capital base to meet regulatory requirements and prepare for potentially adverse events.
• Managing the risk of doing business with third parties and complying with evolving regulations.

Mitigation Strategies

• Comprehensive management of financial and nonfinancial risk is integrated throughout our business strategy, operations and practices.
• BNY Mellon’s Third-Party Governance (TPG) framework is designed to help ensure that the third parties our businesses engage to deliver products or services, or to perform activities on their behalf, do so in a safe and sound manner, and in compliance with BNY Mellon’s policies and principles as well as laws and regulations.

Supply Chain Management

Responsible Procurement

• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Reporting Standards

Frameworks Used: GRI Standards Comprehensive option

Certifications: ISO 27001

Third-party Assurance: APEX Companies, LLC (limited assurance for GHG emissions)

UN Sustainable Development Goals

• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation and infrastructure
• SDG 13: Climate action

Sustainable Products & Innovation

• ESG analytics tool
• Responsible investment products and services

Awards & Recognition

• Dow Jones Sustainability World Index (6 consecutive years)
• CDP A List for climate management leadership (7 consecutive years)
• FTSE4Good Global Benchmark Index (8 consecutive years)
• Perfect score on the Corporate Equality Index (13 consecutive years)
• Bloomberg Gender-Equality Index (5 consecutive years)
• 2019 European Pensions Innovation Award for Innovation

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, Equity and Inclusion
• Risk Management
• Technology
• Governance
• Environmental Sustainability
• Supply Chain
• Public Policy
• Human Rights

Environmental Achievements

• Achieved carbon neutrality in our operations for the sixth consecutive year
• Reduced Scope 1 and 2 greenhouse gas (GHG) emissions relative to our 2018 baseline, including data centers, an incremental 16% in 2020
• Achieved paper neutrality via a certified offset program for the fourth year through the planting of 100,000 trees
• Reduced water use by 54% relative to 2015 baseline

Social Achievements

• Continued delivering pay equity for both women and U.S. minority employees with total actual compensation of more than 100% of their respective counterparts, on average.
• Pledged $20 million for multiyear educational and workforce development programming to academic and job training organizations
• Directed more than $1.5 million in Equality grants and conducted an Equality Matching Gift program
• Facilitated nearly $6 million in company grants and leveraged approximately $2.2 million in employee and company donations during the COVID-19 Relief Campaign
• Achieved a company-wide retention rate of 92%, a six percentage point increase over 2019.

Governance Achievements

• Incorporated ESG-related Executive Committee goals into performance measures
• Set concrete representation goals in the U.S. to step up progress in our most underrepresented ethnic/racial talent populations (Black and Latinx) by year-end 2023
• Administered 100 new green bond issuances, totaling $38.7 billion, making us the leading trustee in green bonds by deal volume for the second consecutive year
• Developed our ESG Data Analytics Application

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and concurrent economic fallout disproportionately affected people of color.
• Systemic racial disparities
• Climate change impacts
• Cybersecurity threats
• Talent acquisition challenges

Mitigation Strategies

• Implemented a Holistic Risk Management strategy with 20 priority initiatives
• Enhanced risk appetite metrics and reporting
• Reengineered and adopted a new, unified risk limit framework
• Launched a new Policy Governance Framework
• Designed and implemented a single, transparent approval pathway for all new or modified products and services
• Continued to enhance our global risk frameworks and implement the Task Force for Climate-related Financial Disclosures (TCFD) recommendations
• Introduced a Supporting You Now framework to demonstrate and facilitate access to our wide array of personal care, life balance and social support
• Expanded our ESG Analytics offering to include an ESG Data Analytics application
• Implemented six Continuing Professional Development (CPD) certified training seminars

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards Comprehensive option, TCFD Guidelines

Certifications: ISO 27001:2013

Third-party Assurance: APEX Companies LLC (limited assurance for GHG emissions)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ESG Data Analytics application

Awards & Recognition

• Dow Jones Sustainability North America Index (DJSI) 7 consecutive years
• CDP A List for climate management leadership 8 consecutive years
• FTSE4Good Global Benchmark Index 9 consecutive years
• Perfect score on the Corporate Equality Index for LGBTQ workplace equality, Human Rights Campaign Foundation 14 consecutive years
• Bloomberg Gender-Equality Index 6 consecutive years

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Governance
• Risk Management
• Community Impact
• Responsible Business
• Human Rights

Environmental Achievements

• Achieved carbon neutrality in operations for the seventh consecutive year
• Achieved paper neutrality in operations globally
• Reduced GHG emissions by 12% from 2018 baseline for Scopes 1 & 2 (including data centers)
• Reduced water use by 60% relative to 2015 baseline

Social Achievements

• Increased women among new hires, senior leaders globally and Board of Directors
• Increased ethnic/racial representation in the U.S. workforce among senior and mid-level leaders and on the Board
• Graduated the first cohort of 23 diverse, high-potential candidates from the Executive Sponsorship program
• Achieved 100% on the Disability Equality Index
• Raised $1.4 million from employees in 12 countries through a Giving Tuesday campaign
• Provided nearly 3,300 hours of pro bono technical assistance

Governance Achievements

• 36% women on the board of directors
• One of the most diverse Boards on Wall Street
• Seven of our current directors have been appointed to the Board within the last five years
• Reached out to stockholders representing over 65% of the company’s outstanding shares

Climate Goals & Targets

Environmental Challenges

• Climate-related physical and transition risks
• Supply chain disruptions
• Maintaining a strong risk culture
• Addressing racial injustice and systemic racial disparities
• Retaining talented employees

Mitigation Strategies

• Expanded risk management framework to incorporate climate-related risks
• Developed alternative sourcing strategies
• Implemented holistic risk management principles
• Enacted programs, policies and actions to address social inequities
• Developed a global retention plan tailored to workforce needs in each region
• Increased minimum hourly salary rate for US employees

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wildfires
• Droughts

Transition Risks

• Policy changes
• Regulatory changes
• Technological changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations, UN Global Compact

Certifications: ISO/IEC 27001:2013

Third-party Assurance: APEX Companies LLC (limited assurance for GHG emissions)

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 17: Partnerships for the Goals

Not disclosed

Sustainable Products & Innovation

• ESG Data Analytics tool

Awards & Recognition

• CDP Climate Change “A” List (9 consecutive years)
• Dow Jones Sustainability North America Index (8 consecutive years)
• FTSE4Good Global Benchmark Index (10 consecutive years)
• Perfect score on the Corporate Equality Index (14 consecutive years)
• Bloomberg Gender-Equality Index (7 consecutive years)

Environmental Metrics

ESG Focus Areas

• Tax Compliance
• Ethical Business Conduct
• Sustainable Development
• Corporate Governance
• Tax Transparency

Social Achievements

• The company takes into account social interests in its activities and avoids all forms of aggressive tax planning. The Group's Enterprise ESG Report 2022 included tax transparency issues.

Governance Achievements

• Implemented robust tax processes and procedures to reduce tax risks and standardize tasks. Complied with BNY Mellon Group's Global Tax Strategy, Employee Code of Conduct, Corporate Governance Guidelines, and Enterprise ESG Strategy.

Climate Goals & Targets

Environmental Challenges

• Ensuring compliance with complex tax regulations in Poland and internationally.
• Managing transactions with related entities across multiple jurisdictions.

Mitigation Strategies

• Developed and implemented comprehensive tax processes and procedures.
• Sought external tax advisor opinions on ambiguous issues.
• Complied with transfer pricing regulations and prepared necessary documentation.
• Adhered to the arm's length principle in transactions with related entities.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• An Inclusive Economy
• Sustainable Solutions
• Trust
• Environment
• Responsible Business
• People and Communities

Environmental Achievements

• Achieved carbon neutrality in operations for nine consecutive years.
• Reduced water consumption by 41% relative to a 2015 baseline.
• Achieved 81% landfill diversion rate.
• 100% of electricity used powered by renewable sources (through RECs).

Social Achievements

• Organized a $500 million debt issuance led entirely by women-, minority-, and veteran-owned financial institutions.
• Launched BK Shares program granting shares to 45,000 employees.
• Achieved 100% completion rate on annual Ethics and Code of Conduct training.
• Increased overall representation of individuals from underrepresented ethnic/racial backgrounds among U.S.-based employees to 39%.

Governance Achievements

• Following the election of directors at the 2024 Annual Meeting of Stockholders, 45% of directors are women and an additional 27% are diverse on the basis of race or ethnicity.
• 91% Board independence.

Climate Goals & Targets

Environmental Challenges

• Data accuracy and availability remain a challenge in the industry for financed emissions calculations.
• Evolving regulatory landscape for climate and ESG disclosure and risk management.
• Potential for strategic and reputational risks related to climate change.
• Cybersecurity threats.

Mitigation Strategies

• Developed a suite of climate-specific risk assessment tools and processes.
• Implemented a robust PI incident management process.
• Maintains a Privacy Regulatory Implementation Program.
• Invests in advanced technology to protect data, including encryption techniques.

Supply Chain Management

Supplier Audits: Annual attestation to compliance with Supplier Code of Conduct.

Responsible Procurement

• Supplier Code of Conduct covering worker health & safety, labor & human rights, environmental sustainability, diversity & inclusion, ethics, and community support.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wildfires
• Heatwaves
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Changes in client expectations

Opportunities

• Development of sustainable products and services
• Growth in sustainable finance

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 27001/2

Third-party Assurance: Apex Companies, LLC

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)
• Goal 17 (Partnerships for the Goals)

BNY's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• SPARKSM shares
• Women’s Opportunity ETF (BKWO)
• BOLD® shares
• Sustainability-aligned securities lending
• ESG-focused investing application in LiquidityDirectSM

Awards & Recognition

• Dow Jones Sustainability Indices inclusion
• FTSE4Good Global Benchmark Index inclusion
• Perfect score on Human Rights Campaign Foundation’s Corporate Equality Index
• Bloomberg Gender-Equality Index inclusion
• FORTUNE magazine’s World’s Most Admired Companies
• JUST 100 inclusion

Environmental Metrics

ESG Focus Areas

• Sustainability Risk

Climate Goals & Targets

Environmental Challenges

• Integrating sustainability risks into investment decision-making while delegating investment decisions to other subsidiaries.

Mitigation Strategies

• Implementing a Sustainability Risk Framework, monitoring Investment Managers' integration of sustainability risks, conducting due diligence, and performing regular sample checks on investments.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe climate events leading to business disruption or losses

Transition Risks

• Risks to investments as the world moves towards a more sustainable environmental and social model

Reporting Standards

Frameworks Used: SFDR