Prudential 2021 ESG Report As illustrated in our Commitments to Advance Racial Equity in this report, Closing the Wealth Gap we also use our platform to advocate for policy improvements and changes to help close the 昀椀nancial divide. This means serving as a champion for a A signature partner of Prudential’s in closing the racial wealth gap is the comprehensive, national solution to provide paid family and medical leave Financial Health Network — a nonpro昀椀t organization that unites business Equitable Access to Capital to all workers. Currently, only one-third of the lowest paid workers in the U.S. leaders, policy makers and innovators to improve 昀椀nancial health • Equitable access to capital promotes growth, opportunity and the have access to paid sick leave, compared to 93 percent of the highest-paid for all. The Financial Health Network’s innovation arm, the Financial works. Black and LatinX workers are also less likely to have leave bene昀椀ts. Solutions Lab (FSL), incubates and scales ideas to address acute and ability to overcome 昀椀nancial barriers to success. Active allocation persistent 昀椀nancial challenges speci昀椀cally facing low-to-moderate income of Prudential’s resources to diverse organizations allows these The COVID-19 pandemic and its economic fallout revealed how fragile individuals and Black and Latinx communities. 昀椀rms to create a positive, measurable impact on communities 昀椀nancial security is for Americans. The pandemic exposed the precarity of and clients. our public health and economic systems and the pervasiveness of racial and FSL invests in 昀椀ntech companies and nonpro昀椀t organizations led by • Prudential continues to focus on active participation by social inequality. Prudential’s 2020 Financial Wellness Census found that diverse owners to incubate and scale 昀椀nancial solutions, design and test diverse banks in the Company’s capital markets transactions, the 昀椀rst few months of the pandemic reversed three years of 昀椀nancial gains policy interventions, and conduct consumer impact research. including debt issuances and share repurchase activities. in the United States and 46 percent of Americans were worried about their In 2021, FSL focused on building consumer resiliency and supporting In 2021, Prudential exclusively used diverse-owned 昀椀rms to 昀椀nances. People of color, women, younger people, small business owners, vulnerable families such as those in the criminal justice system. They act as agents on the repurchase of $1.2 billion in shares of gig workers, and those employed in the retail industry were disproportionately directly invested in 53 昀椀ntechs, 21 昀椀ntech-nonpro昀椀t partnerships, and Prudential’s common stock. Diverse-owned 昀椀rms also served as impacted. At the same time, the persistent racial wealth gap only widened 昀椀ve pilot policy initiatives with the following results: active co-managers on the issuance of $1.2 billion of Funding during the pandemic. Agreement Notes. • Reached over 23.7 million users • Provided 昀椀nancial coaching • Prudential places deposits at minority-certi昀椀ed retail banks, In 2021, with Prudential’s support, our non-pro昀椀t partners addressed both • Assisted over 12 million clinics and resources to over short-term and long-term 昀椀nancial security with the following results: consumers in opening a new 23,000 consumers which helps the banks serve their communities through lending, transactional account • Served 4.5 million consumers and invests in diverse-owned share classes of Government with 昀椀nancial health products Money Market Funds. 5 87,69 0 197,000 • Helped over 730,000 consumers in accessing appropriate credit and services Individuals accessed affordable Individuals built their savings 昀椀nancial products (e.g. emergency enabling them to withstand short- savings, bank accounts); 84% term 昀椀nancial shocks, saving on were people of color average $3,300 13 5,675 3,29 6 Individuals accessed long- Small businesses and term savings products entrepreneurs gained access (e.g. retirement), improving to capital, customers and recipients’ long-term 昀椀nancial technical assistance, average security loan size of $19,639 Home Introduction Governance Sustainable Investing People Community Environment About this Report Appendix 4141