2021 ESG Report Contents Introduction Economic Environment Social Governance ENVIRONMENT Risk Identifcation and Management Fifth Third identifed climate-related risks as an “emerging” risk in 2017. Since then, we have updated the Enterprise Risk Management Framework to defne climate risk for the Bank, and physical and transition risk was incorporated into each of our risk types to describe how climate risk could impact inherent or residual risk. Risk Type Defnition Physical Risk Examples Transition Risk Examples Time Horizons* Credit Risk to current or projected fnancial condition and resilience resulting from the failure of a borrower or counterparty to honor its fnancial or contractual obligations to the Bank. Diminished ability to pay due to loss of income or devalued assets, resulting from extreme weather events or long-term climate changes. Decline in fnancial health within susceptible industries as a result of the global governmental and economic shift toward a low- carbon economy. Short Medium Long Liquidity Risk to current or projected fnancial condition or overall safety and soundness due to the inability (or perceived inability) to meet obligations when they come due. Deposit runof to fund recovery from signifcant adverse weather events. Assets priced incorrectly on a relative basis driven by transition risk factors. Medium Long Interest Rate Risk to earnings or capital arising from movement of interest rates. Movements in interest rates cause changes in the profle of assets and liabilities as interest rates fuctuate. Changes in the time horizon of principal and interest cash fows from assets due to signifcant adverse weather events. Demand for banking products and services changes in response to climate-related societal changes, changing the profle of the Bank’s balance sheet and earnings sources. Medium Long Price Risk to earnings or capital arising from changes in the value of fnancial instruments and portfolios due to movements in interest rates, volatilities, foreign exchange rates, equity prices and commodity prices. Adverse weather events, such as hurricanes and ice storms, causing more frequent energy supply disruptions, afecting prices and volatilities of related commodities. Low-carbon transition impact on commodities may cause infationary pressures which could further impact the direction and volatility of interest rates. Medium Long Operational Risk to current or projected fnancial condition and resilience arising from inadequate or failed internal processes or systems, human errors or misconduct, or adverse external events. Sustained operational disruptions due to acute weather events damaging or disrupting the operations of facilities. Increased costs for building and operating climate-resilient facilities. Short Medium Long Reputation Risk to current or projected fnancial condition, resilience or brand health arising from negative public opinion. Stakeholder scrutiny due to the inability to provide timely support to customers and employees impacted by extreme weather events. Negative public perception for lending exposures in carbon intensive sectors, industries impacted by transitions, or the Bank’s fnanced emissions performance. Short Medium Long Strategic Risk arising from adverse business decisions or improper implementation of those decisions that could result in negative impacts to long-term earnings, capital sufciency, resiliency or competitive position of the Bank. Flawed assumptions or poor strategy execution in geographies with increasing exposure to acute and chronic severe weather or sea-level rise. Untimely adjustments to the Bank’s strategy in response to changes in regulatory requirements and shifting markets. Medium Long Legal & Regulatory Compliance Risk of legal or regulatory sanctions, fnancial loss or damage to reputation as a result of noncompliance with applicable laws, regulations, rules and other regulatory requirements, internal policies and procedures, standards of best practice or codes of conduct, and principles of integrity. Inability to meet compliance timelines or requirements due to business disruptions from acute weather events. Difculty implementing new climate-related regulations on bank disclosures, operations, or activities. Medium Long * Short : Operating planning, 1 year or less; Medium : Strategic planning, 1-5 years; Long : Climate scenario planning, 5 years or more. 42