BNY MELLON ENTERPRISE ESG 11 APPROACH ENTERPRISE ESG IMPLEMENTATION The Enterprise ESG function is composed of four main focus areas: strategy setting, reporting, disclosures and stakeholder engagement. Each of these focus areas relies on strong cross-functional collaboration across the enterprise and ESG integration across the lines of business and functions. In 2021, we placed a particular focus on climate change, having built out our climate change strategy and issued our first stand-alone report, Considering Climate at BNY Mellon , dedicated to how we’re considering the risks and opportunities brought on by climate change effects. Learn how we are Managing Climate Change . ESG Materiality We focus on what matters most and where we can drive business transformation. Thus, BNY Mellon periodically adjusts our approach to remain current with stakeholder concerns, global trends and our own business strategies. In 2020, we increased alignment of our ESG efforts both within our organization and with external reporting frameworks. In addition to updating our Enterprise ESG strategy, we introduced goals and key performance indicators (KPIs) to guide our actions from 2020 through 2025. Our Enterprise ESG strategy and goals are based on research and stakeholder input gathered through an ESG materiality assessment process conducted in 2019 that helped us determine the most relevant ESG issues for BNY Mellon. 8 8 2020 Enterprise ESG Report , page 10 ESG MATERIALITY ASSESSMENT KEY THEMES Technological Resilience: Information security and resilience to cyberattacks represent a key intersection of societal needs and BNY Mellon business priorities. The Importance of the Employee: Employee issues such as diversity & inclusion, talent attraction, retention and development, and gender pay equity can help differentiate BNY Mellon in an increasingly competitive business environment. Climate Readiness & Response: The impending impacts from climate change require every institution to act. In financial services, frameworks such as the TCFD recommended disclosures help facilitate a robust and substantive assessment of climate-related vulnerabilities and opportunities. Integrating ESG: Increasing evidence of the benefit of systematically integrating environmental, social and governance considerations into the investment process is bolstering demand for such products and services. Tr u s t & Tr a n s p a r e n c y : Board oversight, responsiveness and transparency regarding evolving sustainability challenges are important to respond to stakeholder expectations. We consider the impact of the choices we make and the decisions we take — and report on those enterprise-wide practices. The commitments we make at the global level guide the execution of our Enterprise ESG and climate change strategies, and the reporting of our performance. Enterprise ESG impacts the culture at BNY Mellon, informs our responsible business practices, and inspires our global citizenship. We contribute to sustainable economic growth that helps protect healthy markets, enhances our own business resiliency, and aims to deliver positive impact for key stakeholders.