Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Customers
• Employees
• Community
• Environment

Environmental Achievements

• Reduced reliance on fossil fuels for power generation through alternative energy financing (solar, fuel cells, biogas, battery storage, thermal, wind, microgrid projects).
• Implemented waste and electronics recycling programs and water conservation in corporate office.

Social Achievements

• Distributed $6.42 billion in Economic Impact Payments on 3.6 million prepaid cards under the CARES Act.
• Funded $219 million in Paycheck Protection Program (PPP) loans, assisting 689 small businesses and saving 20,000+ jobs.
• Launched a new talent assessment framework to better understand team strengths and opportunities.
• Implemented a nine-month leadership development program for high-potential employees.
• Introduced a new aspirational culture mindset based on “Hungry, Humble and (People) Smart” (HHS).
• Provided relief to clients and borrowers in the form of short-term loan payment deferrals and modifications.
• Supported 11 organizations that assist low- to moderate-income individuals and families, donating more than $300,000 and 200 volunteer hours.

Governance Achievements

• Established a new ESG committee of the Board of Directors.
• Implemented a clawback policy for executive compensation.
• Refreshed the Code of Business Conduct and introduced an updated ethics hotline.
• Enhanced leadership team with key senior hires in critical areas, including Chief Legal and Compliance Officer, Chief Information Officer, Chief People and Inclusion Officer, Vice President of People and Culture, Vice President of Alternative Energy Finance, and Vice President of ESG and Community Impact.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on business operations and employee well-being.
• Need to expand talent pool beyond local candidates.

Mitigation Strategies

• Implemented a work-from-home program for most employees.
• Instituted mandatory masking, social distancing, and sanitation protocols.
• Provided laptops and stipends for home-based employees.
• Adopted a “Talent Anywhere” recruitment strategy.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Environmental Metrics

ESG Focus Areas

• Governance
• Social Impact
• Environmental Impact
• Financial Inclusion
• Diversity, Equity and Inclusion

Environmental Achievements

• Originated $101.1 million in renewable energy financing, resulting in $26.5 million in total net investment tax credits.
• Reduced physical office footprint from 340,000 square feet to 271,000 square feet.
• Recycled nearly 6,000 pounds of electronics.

Social Achievements

• Launched a new Community Impact Program.
• Distributed nearly 13 million prepaid cards for a total of more than $17.5 billion in Economic Impact Payments.
• Employee engagement survey score of 82 (2 percentage points higher than benchmark).

Governance Achievements

• Established the ESG Committee as one of four full committees of the Board.
• Created the position of Ethics Officer.
• Implemented a formal clawback policy for executive compensation.

Climate Goals & Targets

Environmental Challenges

• Managing risks and complying with legal and regulatory requirements in a remote work environment.
• Maintaining program effectiveness during the COVID-19 pandemic.

Mitigation Strategies

• Implemented remote work capabilities, providing equipment and stipends.
• Maintained program effectiveness through robust remote work strategies and disaster recovery teams.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Standards, GRI Standards

UN Sustainable Development Goals

• 1
• 7
• 8
• 10

Meta's ESG strategy aligns with SDGs 1 (No Poverty), 7 (Affordable and Clean Energy), 8 (Decent Work and Economic Growth), and 10 (Reduced Inequalities).

Environmental Metrics

ESG Focus Areas

• Governance
• Social Impact
• Environmental Responsibility
• Enabling an Inclusive Financial System
• Engaging Our Workforce
• Investing in Environmental Sustainability
• Building Trust through Good Governance

Environmental Achievements

• 4% reduction in operational emissions year over year
• Reduced physical office space by 20%
• 3 of 9 buildings are LEED-certified

Social Achievements

• Launched DEI curriculum
• Employee engagement score of 78%
• Total charitable investments of over $1M
• More than 6,500 total employee volunteer hours tracked
• More than 2,200 paid time off for volunteering hours taken by employees

Governance Achievements

• No changes to ESG governance structure in FY2022
• ESG Committee meets quarterly
• Updated Code of Business Conduct
• Annual Code of Conduct training for all employees
• 77% of CEO target compensation and 66% of other Named Executive Officers' target compensation was performance-based and at-risk

Climate Goals & Targets

Environmental Challenges

• Growing concern about the economy
• Data limitations in environmental assessment (Scope 3 emissions data still being tabulated)

Mitigation Strategies

• Continued commitment to ESG despite economic concerns
• Launched company-wide environmental assessment to measure Scope 1 and Scope 2 emissions and energy consumption
• Developing targeted programs to reduce emissions

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Third-party Assurance: Crowe LLP

UN Sustainable Development Goals

• 1
• 7
• 8
• 10

Pathward's ESG strategy aligns with SDGs 1 (No Poverty), 7 (Affordable and Clean Energy), 8 (Decent Work and Economic Growth), and 10 (Reduced Inequalities).

Awards & Recognition

• American Bankers Association Foundation’s 2022 Community Commitment Award (Volunteerism category)

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Employee Engagement
• Environmental Sustainability
• Good Governance

Environmental Achievements

• Financed $520.6 million in renewable solar energy initiatives (27% YoY increase)
• Financed two biogas projects generating renewable energy equivalent to powering 7,012 vehicles and 2,192 households for a year
• Recycled more than 6,141 pounds of business technology equipment (13% increase from previous year)

Social Achievements

• Achieved an 85% overall employee engagement score (7-point improvement from 2022)
• Earned Great Place to Work™ certification with 78% of employees rating Pathward as a great place to work
• 31% of employees participated in an ERG (12% increase from FY2022)
• 250 Pathward employees participated in volunteer events across 16 cities
• Made over $1 million in direct investments to nonprofit community partners

Governance Achievements

• More than 97% support for “Say-on-Pay” vote in 2023
• Updated Code of Business Conduct in May 2023
• Implemented an electronic process for conflict of interest disclosures
• No material information security breaches in the last three years

Climate Goals & Targets

Environmental Challenges

• Understanding environmental footprint in the context of evolving remote-work culture
• Capturing data to fully understand the positive impacts of renewable energy initiatives

Mitigation Strategies

• Continued efforts to track energy usage and GHG emission factors, including Scope 3 emissions
• Working closely with partners to capture data on renewable energy initiatives

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Commercial Banks, GRI, UN SDGs

Third-party Assurance: Crowe LLP (limited assurance on selected metrics)

Awards & Recognition

• Great Place to Work™ certification
• Newsweek’s America’s Greatest Workplaces 2023, America’s Greatest Workplaces for Diversity 2023, America’s Greatest Workplaces for Parents and Families 2023, America’s Greatest Workplaces for Women 2023
• FinCEN award for BSA and Financial Intelligence Unit teams