2021 Environmental Social & Governance Report

OUR PATH TO NET-ZERO FINANCED EMISSIONS
A key aspect of our low-carbon strategy is how we engage with our clients in carbon-intensive industries on their transition. In 
2020, we pledged to align key sectors of our financing portfolio with the goals of the Paris Agreement. In May 2021, we became 
the first large U.S. bank to set 2030 targets – which we set as portfolio-level emissions intensity reduction targets for the Oil & 
Gas, Electric Power and Auto Manufacturing sectors – and published our 
Carbon Compass Methodology
detailing our approach. 
We also announced our plans to expand our targets to new sectors of our financing portfolio over time. In October 2021, we 
joined the NZBA, a group convened by the United Nations Environment Programme Finance Initiative which brings together a 
global network of banks committed to aligning their lending and investment portfolios with net zero emissions by 2050. 
While thoughtful policy, technology and behavioral advancements are all prerequisites in realizing our common goals around net 
zero emissions by 2050, we joined the NZBA because we support the ambition for greater climate action, the sharing of best 
practices and a collaborative approach between the public and private sectors to reach this goal. We may further address 
important details of these efforts as they develop over time, including where we believe practical considerations may constrain 
our work against the ambitions of the NZBA – such as the necessity of technological advancements, the evolution of consumer 
behavior, the need for thoughtful climate policies around the world, the challenge of balancing short-term targets with the need 
to facilitate an orderly and just transition, and other critical considerations such as legal and regulatory obligations. 
Participating in industry initiatives will also support our efforts to develop targets for other sectors and engage with a growing 
number of clients who are aligning their strategies with widely-recognized and science-based emission reduction pathways.
How We Are Implementing Our Targets
Since setting our first portfolio-level emissions intensity reduction targets, we have focused on implementing them in the 
management of our Oil & Gas, Electric Power and Auto Manufacturing financing portfolios. As part of this, an assessment of our 
client's emissions and decarbonization plans is now factored into our decision-making while considering new transactions for 
in-scope clients in these sectors – for both lending and debt capital markets transactions. This assessment allows us to: 1) build 
in a view of our client's decarbonization trajectories during the decision-making process on a potential new transaction, as a 
factor in our usual approval processes, and 2) assess both our client's progress and in turn, our own progress towards our 
targets on an ongoing basis.
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INTRODUCTION
ENVIRONMENTAL
Advancing Climate and 
Sustainability Solutions
Operational Sustainability
SOCIAL
GOVERNANCE
ESG REPORT APPENDICES

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Our assessment framework uses a variety of quantitative and qualitative measures to evaluate clients’ current emissions 
performance, their track record and future plans. Quantitatively, we collect and assess historical emissions reductions, 
current carbon intensity and forecasted intensity based on publicly announced emissions targets. Qualitatively, we 
assess actions the client has taken to drive progress, such as formulating detailed decarbonization plans, establishing 
clear governance and oversight of climate strategies and polices, and more. The development and implementation of 
our assessment framework was led by the CCT, along with partners such as key Banking and Risk Management groups.
We will continue to build on our efforts in key portfolios over time, particularly as we expand to additional targets and sectors.