- - 2021 ESG Report ENVIRONMENT FE ATU RE Fifth Third Partners with EcoVadis In 2022, Fifth Third began partnering with EcoVadis, a leading evidence based sustainability ratings provider, to engage with and monitor the ESG strategies and performance of our largest third party relationships. Fifth Third is committed to developing and reporting metrics that demonstrate the progress of our third parties in managing their environmental and social risks and reducing their carbon footprints. At the launch of this efort, more than 29% of our top suppliers are already being evaluated for their actions across a broad array of ESG performance criteria.* Through this new framework we know that more than 18% of top suppliers are signatories to the United Nations Global Compact. More than 22% of our top suppliers are reporting on their carbon emissions, with a majority of those reporting Scope 3 emissions. Moving forward, Fifth Third will seek to integrate more of its suppliers into this process and seek ways to engage suppliers in an efort to improve performance in key criteria. Environmental & Social Risks Across the Value Chain UPSTREAM - THIRD PARTIES AND SUPPLIERS Fifth Third relies on third parties for a variety of products and services to support our operations and the successful delivery of products and services to customers. Our Supplier Code of Conduct sets forth expectations for ethical, human rights, labor and environmental standards throughout our supplier network. Our suppliers are required to uphold these responsible business practices by encouraging the same standards among their next-level suppliers. Suppliers are expected to comply with the content of this code, along with all applicable laws, regulations and standards of the states and countries in which they are headquartered and do business. Suppliers may be asked to provide written afrmation that they have read, understand and will abide by the terms of this code. DOWNSTREAM - CUSTOMERS Recognizing the heightened environmental risks inherent in the energy sector, in 2013, we implemented a component to assess environmental risk for new lending opportunities. In addition to such risks as the client’s management of water and air emissions, we also evaluate social risks such as worker safety and community engagement. In 2020, we published our Environmental and Social Policy that identifes sectors that pose Contents ENVIRONMENTAL & SOCIAL POLICY SUPPLIER CODE OF CONDUCT Fifth Third Bancorp Issued October 2020 Supplier Code of Conduct heightened environmental and social risks. The policy, which is updated at least annually and approved by our Board of Directors, provides guidance on clients in sectors and activities that are prohibited or that are subject to enhanced customer due diligence and may require escalated review and approval from senior leaders. Fifth Third’s climate risk program supports the lines of business in periodic training to our front line employees primarily responsible for identifying and evaluating risks, including the environmental and social risks inherent within their businesses. As of March 31, 2022, we have reviewed 78 client relationships in sectors with elevated environmental and social risks, which therefore require enhanced due diligence. The reviews have focused mainly on energy sector clients. Nearly two-thirds of these customers already have internal ESG policies in place, and nearly half have public ESG statements. Introduction Economic Environment Social Governance *Top suppliers defned as those supporting over $1 million in spending in reporting year. Reporting percent of suppliers based on percent of total spend. 43
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