2021 SUSTAINABILITY HIGHLIGHT REPORT: Forward As One ENVIRONMENT 10 2021 SUSTAINABILITY HIGHLIGHT REPORT: Forward As One The Hartford’s investment portfolio is managed in a manner which is supportive of The Hartford’s commitment to sustainability and its ESG principles In 2021, The Hartford announced a commitment to invest $2 5 billion over the next five years in technologies, companies and funds, which are advancing the energy transition and addressing climate change The portfolio is invested across a range of opportunities which evidence our objectives and commitments: • $6.7B invested in Municipal Investments that have positive environmental or social attributes, contributing, for example, toward the development and maintenance of physical infrastructure and essential services (water, sewers, roads, bridges), public transportation infrastructure and social infrastructure (education, healthcare) • $540M invested in Green, Social and Sustainable Bonds where bond proceeds are utilized for environmentally responsible initiatives, social impact projects, or a combination of both • $296M invested in LEED certified real estate and REITs supporting efforts to reduce the world’s carbon footprint through investing in properties that are built and operate to enable a sustainable and socially responsible environment • $180M invested in Climate Infrastructure Funds and Renewable Energy Co-Investments • $146M invested in Energy Savings Performance Contracts which accelerate investment in cost-effective energy conservation projects • $110M invested in Real Estate investments where a portion of the units are affordable housing • $87M invested in Energy from Waste Infrastructure investments which support sustainability of communities in the United Kingdom COAL AND TAR SANDS POLICY In 2019, The Hartford announced its policy on insuring and investing in coal and tar sands, committing to no longer invest in companies that generate more than 25% of their revenues from thermal coal mining or more than 25% of their energy production from coal, as well as companies that generate more than 25% of their revenues directly from the extraction of oil from tar sands The company committed to the divestment of public holdings not in alignment with this policy by 2023 The Hartford reduced holdings by $151 million in 2021, including all holdings in Tar Sand companies Remaining holdings totaled $108 million at the end of 2021 Promoting Sustainability Through Our Mutual Funds Business Hartford Funds is committed to human-centric investing and the ideas and concepts behind sustainable investing. Hartford Funds Sustainable Funds lineup, which as of Dec. 31, 2021, totaled approximately $689 million, seeks competitive financial returns while also having positive social and environmental outcomes. As a Principles for Responsible Investment (PRI) Signatory, Hartford Funds has published a Responsible Investment Transparency Report each year and has expanded its sustainable investing suite of funds to include: • Hartford Sustainable Municipal Bond Fun d (2021) • Hartford Sustainable Income ETF (2021) • Hartford Schroders Sustainable Core Bond Fund (2021) • Hartford Schroders ESG US Equity ETF (2021) • Hartford Schroders Diversified Emerging Markets Fund (2021) • Hartford Global Impact Fund (2017) • Hartford Climate Opportunities Fund (formerly known as the Environmental Opportunities Fund) (2016) RESPONSIBLE INVESTING Our investment portfolio is supportive of sustainability and ESG principles. $325M INVESTED IN ENVIRONMENTAL PROGRAMS, through various tax credit programs, since 2009. These investments include solar, brownfield, historic and similar investments that benefit the environment. MORE THAN
The Hartford Financial Sustainability Report Page 9 Page 11