BNY MELLON ENTERPRISE ESG 71 GLOBAL CITIZENSHIP NEW IN 2021 CONTRIBUTING TO COP26 To contribute to and learn from the global dialogue on climate readiness and response, a team of BNY Mellon leaders joined the COP26 summit in Scotland. There they gathered with representatives from governments, nongovernmental organizations and the private sector, acting together to accelerate action toward the goals of the Paris Agreement and the UN Framework Convention on Climate Change. BNY Mellon Senior Executive VP and Head - International Hani Kablawi joined a panel on OS- Climate, announcing BNY Mellon’s commitment to using its reach, market influence and resources to advance its open-source ESG data platform. Climate-Related Issue Governance Formal governance and oversight responsibilities for climate-related issues sit ultimately with our Board. Operational management responsibilities related to climate risk are delegated to the management body through the Executive Committee and via our Three Lines of Defense approach. Local management for subsidiary legal entities replicate these responsibilities for specific consideration aligned to their respective business and risk profiles. The work to integrate climate considerations across our business is a part of our larger efforts to embed an ESG lens into the way we operate. In 2021, our internal TCFD Working Group participated in the reporting of this work as a component of the public ESG reporting processes driven by the Enterprise ESG team. The Executive Committee received reports on the work of the TCFD Working Group and reviewed that information prior to its presentation to the CGNSR Committee of the Board, which is the highest-level body with purview over climate considerations. In addition, the boards of directors of the various legal entities within the broader BNY Mellon organization are consulted for strategic input and presented with updates on a regular basis. NEW IN 2021 COMMITTEE MANDATES Committees with oversight responsibilities for certain of BNY Mellon’s legal entities have taken on specific allocated responsibilities with respect to climate change risk, with further committee mandates to be reviewed and updated in 2022. We are developing ongoing reporting on climate change-related risks to support the Board and its delegated committees across the first and second lines of defense. Escalation routes are now in place to consider reporting at an aggregate level and to address identified climate change risks through various internal processes and frameworks. These include the assessment of new clients, third-party vendors and inter-affiliates, as well as new product development and business process changes, to ensure that potential climate change risks are identified and managed at the point of origination. Each of these assessments are being embedded in business-as-usual processes used to assess all potential sources of risk. Climate Risk Management Since BNY Mellon plays a vital role in global financial markets, effective risk management is critical to our success. Risk management begins with a strong risk culture, our system of values and behaviors that influence the risk decisions made by managers and employees. We reinforce our culture through policies and procedures, along with our Code of Conduct. Our risk culture is grounded in BNY Mellon’s values: • Passion for Excellence • Integrity • Strength in Diversity • Courage to Lead Our business model requires taking on risk intelligently in a responsible and measured manner, and balancing risk relative to return to achieve our strategic objectives and business plans. Because climate-related changes and events can directly impact the company’s operations, BNY Mellon is committed to understanding and addressing the risks posed by climate change by employing a comprehensive risk management approach as part of our existing Risk Management Framework. Our Framework has always considered certain impacts of climate change through processes such as Operational Risk and Business Continuity/Operational Resilience; see the Enterprise Resiliency section in this report. As we evolve our approach, we now explicitly consider the impacts of climate change-related financial, physical and transition risks across our corporate-wide portfolio.