Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity & Inclusion
• Talent Attraction & Retention
• Employee Benefits & Compensation
• Corporate Values
• Non-Discrimination & Protection of Civil Rights
• Training & Education
• Human Rights & Fair Labor Practices
• Corporate Citizenship & Philanthropy
• Environmental Compliance
• Data Center Environmental Considerations
• Environmental Risk Management/Strategy Development
• Energy Efficiency
• Employee Wellness
• Occupational Health & Safety
• Energy Consumption & Management
• GHG Emissions
• Social Strategy Development & Management
• Hazardous Waste & Chemical Management
• Non-Hazardous Waste Management
• Water Stewardship

Environmental Achievements

• Consolidated data centers into two primary locations
• Assessed environmental compliance obligations at primary data centers
• Engaged a third-party consultant to conduct a Scope 1 and 2 Greenhouse Gas (GHG) inventory
• Reduced GHG emissions by 3.3% from FY19 to FY20 (41,464.71 MTCO2e to 40,084.59 MTCO2e)
• Eliminated 84,000 printed pages per month through process improvement
• Projected annual savings of 60,000 sheets of paper with Synergy eSign™

Social Achievements

• Named a Director of Corporate Responsibility
• Conducted a materiality survey to identify top priorities
• Enhanced Equal Employment Opportunity Statement
• Established a 24/7 anonymous ethics and human rights reporting hotline
• Expanded Diversity and Inclusion (D&I) programs
• Enhanced benefit programs
• Supported five unique Business Innovation Groups (BIGs)
• David Foss joined CEO Action for Diversity & Inclusion
• Developed solutions to help community-based financial institutions through the U.S. Paycheck Protection Program (PPP)
• Improved mental health programs within Employee Assistance Program (EAP)

Governance Achievements

• Reviewed and updated Corporate Governance Guidelines
• Amended Certificate of Incorporation to require only a simple majority for acquisitions
• Adopted Proxy Access for Director Nominations bylaw

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions
• Improving environmental risk management strategy
• Addressing racial injustice and systemic racism

Mitigation Strategies

• Established GHG inventory management plan
• Evaluating operational and business travel efficiencies
• Setting realistic and achievable GHG reduction goals
• Initiated internal conversations and external webinars on racial justice and equality

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct
• Vendor Safety Program
• Human Rights policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Third-party Assurance: Third-party consultant (qualitative review)

Sustainable Products & Innovation

• Synergy eSign™

Awards & Recognition

• 2020 American Banker Best Place to Work in FinTech
• 2020 #13 in Financial Insights’ IDC FinTech Rankings
• 2020 Computer World 100 Best Places to Work in IT
• 2020 11 location-specific Best Place to Work awards
• 2019 Forbes’ Best Employers List (3rd consecutive year)

Environmental Metrics

ESG Focus Areas

• People and Communities
• Responsible Business Practices
• Planet

Environmental Achievements

• Reduced GHG emissions by 11.07% from FY2019 baseline despite increased activity in FY2022.
• Reduced Scope 2 GHG emissions from purchased electricity by approximately 3% due to grid greening and real estate right-sizing.

Social Achievements

• Launched an internal ethical culture survey showing improved associate favorability scores across all eight topics.
• Received public recognition through awards like Newsweek® America’s Most Loved Workplaces and American Banker® Best Places to Work in Fintech.
• Incorporated DEIB learning opportunities into JackTracks, a three-week virtual development event.
• Improved hiring-related metrics in FY2022 compared to FY2021 (171% increase in external applicants, 115% increase in internal role changes).

Governance Achievements

• Joined the Financial Health Network.
• Signed a commitment letter to pursue Science-Based Targets initiative (SBTi) validation for near-term GHG emissions reduction targets.
• Introduced corporate sustainability considerations into supplier selection and management.

Climate Goals & Targets

Environmental Challenges

• Impacts of the COVID-19 pandemic, a slowing global economy, unprecedented cybersecurity threats, and increasing climate-related risks.
• Increasing financial vulnerability and fragmentation.
• Scope 3 emissions (75% from purchased goods and services).

Mitigation Strategies

• Developed a robust low carbon transition plan to minimize GHG emissions.
• Committed to setting GHG reduction targets aligned with the Paris Agreement.
• Introduced environmental performance expectations for suppliers through the Vendor Code of Conduct.
• Initiated a project to incorporate environmental considerations into vendor selection.
• Investing in modern technology including artificial intelligence and machine learning for cybersecurity.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct
• Supplier Diversity Program
• Incorporating sustainability considerations into supplier screenings, selection, and management.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Greenhouse gas pricing and regulation
• Changing consumer expectations

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 5
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 16

See Appendix for details.

Sustainable Products & Innovation

• Synergy Express™ data center

Awards & Recognition

• Newsweek® America’s Most Loved Workplaces
• American Banker® Best Places to Work in Fintech

Environmental Metrics

ESG Focus Areas

• People and Communities
• Responsible Business Practices
• The Planet

Environmental Achievements

• Purchased Green-E certified RECs to address 18% of fiscal year 2023 Scope 2 emissions, resulting in a 2% decrease in Scope 1 and 2 emissions relative to fiscal year 2022 and a 14% decrease relative to 2019.
• Calculated and disclosed Scope 3 emissions for the first time.
• Leased office in Alpharetta, Georgia received LEED certification.

Social Achievements

• Launched a DEIB Advisory Council.
• Earned CDI’s Seal of Accomplishment as a Leader in Disability Inclusion.
• Increased participation in learning and development initiatives by 46%.
• Supported stronger communities and financial wellness through impact investing.
• Improved hiring metrics for fiscal year 2023 compared to fiscal year 2022.

Governance Achievements

• 94% of votes cast on say-on-pay at the 2023 Annual Meeting of Stockholders were voted in favor of fiscal year 2023 executive compensation.
• Revised third-party risk management program to include environmental and social questions.
• All directors completed Code of Conduct training.

Climate Goals & Targets

Environmental Challenges

• Increased business need for corporate travel and electricity usage in offices.
• Reducing emissions from our value chain (Scope 3).

Mitigation Strategies

• Procuring renewable energy credits (RECs).
• Real estate optimization, co-location and cloud computing initiatives, renewable energy exploration (VPPAs, on-site solar, clean energy utility contracts), and energy efficiency projects.

Supply Chain Management

Responsible Procurement

• Incorporating corporate sustainability topics (environment, DEIB, business ethics, human rights) into supplier screenings, selection, and management.
• Adding sustainability questions to RFP questionnaires and scoring matrices.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Wildfires
• Extreme heat

Transition Risks

• GHG pricing and regulation
• Changing consumer expectations

Reporting Standards

Frameworks Used: SASB Standards for Software and IT Services, TCFD, UN Sustainable Development Goals

Third-party Assurance: Trinity Consultants (Limited assurance for Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

Jack Henry's initiatives contribute to these goals through its products and services, talent development programs, DEIB efforts, responsible business practices, environmental stewardship, and ethics reporting program.

Awards & Recognition

• Newsweek America’s Most Responsible Companies
• USA Today Climate Leaders
• Center for Disabilities Inclusion (CDI) Leader in Disabilities Inclusion
• Newsweek America’s Greatest Workplaces for Diversity