BNY MELLON ENTERPRISE ESG 42 RESPONSIBLE BUSINESS RISK MANAGEMENT Social, political, environmental and financial turbulence has continued to impact economies and communities. The global pandemic entered year two, climate change concerns escalated, and Russian aggression in Ukraine has heightened geopolitical instability and resulted in economic sanctions. In the face of these and other market disruptions, investors, regulators and the public alike scrutinize business operations, assessing companies’ ability to navigate pressing global challenges. Markets expect effective corporate governance, strong risk management, business continuity, and ethical and transparent workplace standards that enable organizations to thrive over the long term. Our Opportunity and Approach BNY Mellon plays a vital role in the global financial markets, and effective risk management is core to our success. Our customers and the financial markets depend on BNY Mellon for our financial strength. Around the world, we are recognized for our solid balance sheet, healthy risk culture, and commitment to financial stability in all market environments. We seek to manage risk responsibly and serve as a reliable custody and investment source. We maintain a comprehensive and strong risk management framework that is designed to make intelligent risk-based decisions by appropriately identifying, measuring and mitigating all material risks to support responsible growth. In that context, we are increasingly focused on climate change as a risk driver. BNY Mellon is taking proactive action to support sustainable growth, and we are evolving our Risk Management Framework to further embed the consideration, impact and management of climate- related risks. 2021 ACHIEVEMENTS Risk Management: Continued to implement holistic risk management principles through initiatives that drove a strong risk culture, clear risk ownership and comprehensive risk oversight. Climate Risk: Continued enhancing our global risk frameworks informed by the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Cultivating Leaders: Graduated our first cohort of 10 diverse, high-potential Risk & Compliance leaders from the Executive Development Program. Risk Training: Provided close to 200 risk and compliance learning courses to approximately 49,600 employees. Risk Management Principles Our holistic risk management principles provide a company-wide approach to effectively and appropriately managing risk. This approach includes: • A strong risk culture across the company • Clear risk ownership by the businesses and corporate functions • Comprehensive oversight by Risk & Compliance This approach enables us to better identify, monitor and manage our risk exposures across the enterprise and provide our Board with the information needed to exercise appropriate oversight. The holistic risk principles are foundational to our ability to achieve our strategic priorities, including scaling and digitizing our operating model, implementing ESG and climate risk considerations into the framework, and realizing growth opportunities. In 2021, we continued to make significant progress toward multiple priority initiatives including: Enterprise Limit Framework. We operationalized by business and legal entity the enterprise limit framework implemented in 2020, driving enterprise-wide consistency and strengthening the linkage between business risk management and corporate risk appetite.