Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• People
• Environment
• Prosperity

Environmental Achievements

• 33% reduction in energy consumption compared to 2016
• ISO 50001:2018 Energy Management certification
• ISO 14001:2015 Environmental Management certification (received in 2023)
• Dematerialization of more than 20,000 physical certificates, avoiding 25-30,000 courier trips and eliminating the printing of 50-60,000 pages per year

Social Achievements

• 81% Diversity & Inclusion Employee Engagement Survey score (5 points above industry benchmark)
• Recognition by Seramount as one of the Top 100 companies for working mothers and fathers
• 100% score on the Human Rights Campaign for the 12th consecutive year
• Employee attrition around 11% in 2022 (below the average in financial services)
• Launched several programs to enhance employee well-being, including increased backup childcare days and enhanced family planning benefits
• Increased employee charitable giving participation rate to 36% in 2022 from 25% in 2021, contributing $1,093,331 in donations and company matching gifts
• Expanded supplier diversity program

Governance Achievements

• 100% of DTCC employees and contingent workers completed anti-bribery and anti-corruption training (99.95% completion rate)
• Established a Global Sanctions Policy to screen clients, agents, employees, third parties and securities against global watch lists
• 2022 Corporate Compliance Risk Assessment determined that DTCC’s controls are sufficient to address regulatory requirements and identified bribery and corruption risks
• Published a white paper on climate-related financial risk

Climate Goals & Targets

Environmental Challenges

• Climate-related physical risks to DTCC sites around the world (sea level rise, extreme weather)
• Competition for talent in a tight labor market
• Supply chain issues delaying the continuous use of on-site solar power

Mitigation Strategies

• Robust metrics on financial and operational risk, including coverage for potential risks posed by member firms and other counterparties or third parties
• Risk tolerance plans across risk categories
• Incorporation of an assessment of each member’s exposure to climate-related risk into the overall assessment of credit risk
• Review of TCFD reports from publicly traded full-service members
• Streamlined hiring process
• Initiatives to position DTCC as a leading company of choice for potential candidates
• Continued investment in sustainability initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Global mean sea level rise
• Extreme heat
• Heavy downpours
• Sea level rise
• Coastal storms

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: World Economic Forum’s Measuring Stakeholder Capitalism recommendations, Greenhouse Gas Protocol Initiative (GHG Protocol)

Certifications: ISO 50001:2018, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• e-CD platform

Awards & Recognition

• Seramount Top 100 companies for working mothers and fathers
• Human Rights Campaign 100% score

Environmental Metrics

ESG Focus Areas

• Governance
• People
• Environment
• Prosperity

Environmental Achievements

• Maintained ISO 50001:2018 Energy Management and ISO 14001:2015 Environmental Management certifications across multiple sites.
• Implemented initiatives to reduce waste and increase recycling, including centralizing waste collection and phasing out single-use water bottles.
• Successfully dematerialized an average of 20,000 physical certificates per year, reducing emissions from courier trips, printing, and paper management.

Social Achievements

• Achieved 100% on the Human Rights Campaign (HRC) Corporate Equality Index for the 11th consecutive year.
• Maintained low employee turnover rate of 7.1% in 2023.
• Launched Sustainability Works, a peer-learning platform for interactive groups, to build sustainability awareness and practices.
• Expanded Early Career programs to Chennai.
• Launched the Catalyst Leadership Program.

Governance Achievements

• Implemented a robust risk management framework, including assessment of climate-related risks.
• 100% of DTCC employees and contingent workers completed training on anti-bribery and anti-corruption policies.
• Established a Global Sanctions Policy to prevent business with unlawful entities.

Climate Goals & Targets

Environmental Challenges

• Climate-related physical risks to DTCC sites around the world, including sea level rise and extreme weather events.
• Lack of standardized quantitative metrics on climate risk exposure within the financial industry.

Mitigation Strategies

• Expanded location and area risk program to include trending metrics on climate change risk for each DTCC location.
• Incorporated assessment of member firms' climate-related risk exposure into Counterparty Credit Risk (CCR) assessment.
• Continuously reviews and updates its risk tolerance across categories.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Commitment to fostering a diverse and inclusive supplier network.

Climate-Related Risks & Opportunities

Physical Risks

• Global mean sea level rise affecting coastal offices
• Vulnerabilities of critical infrastructure to extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: World Economic Forum’s Measuring Stakeholder Capitalism recommendations, Greenhouse Gas Protocol Initiative (GHG Protocol)

Certifications: ISO 50001:2018 Energy Management, ISO 14001:2015 Environmental Management

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Content Services Platform (CSP) for dematerialization of eligibility documentation.

Awards & Recognition

• 100% on the HRC CEI for 11 consecutive years
• Top 10 for Financial Services Internship Programs (Vault-Firsthand)