2021 ESG Report GOVERNANCE Enterprise Risk Management work, to the way we behave with customers, each other and our communities . The Compass also guides our strategic direction and actions as we keep the customer at the center and work toward achieving our vision to be the one bank people most value and trust. By focusing on the future and uniting us as one bank, the Compass represents who we are, what we believe and how we defne success—all of which are key drivers of our risk management strategy. Fifth Third’s Enterprise and line of business risk management frameworks outline our approach to managing risk in support of our vision. Key elements of the frameworks are described in detail below. Risk Appetite Fifth Third’s risk appetite is established in alignment with our strategic, fnancial and capital plans . The Board and executive management approve the risk appetite, which is considered in the development of business strategies and forms the basis for enterprise risk management. The risk appetite is defned using quantitative metrics and qualitative measures to ensure prudent risk taking and drive balanced decision making. Our goal is to ensure that aggregate risks do not exceed Fifth Third’s risk appetite , and that risks taken are supportive of our portfolio diversifcation and proftability objectives. Contents Introduction Economic Environment Social Governance Fifth Third Bank has been in business since 1858 and has been successful over this span of years by efectively balancing risk and return. We take risks every day delivering products and services to customers and executing our business processes and activities. Therefore, we are responsible for managing these risks efectively to deliver value and performance for our shareholders, customers, employees and communities through the cycle . Alignment with Our Core Values and Culture Our core values and culture provide a foundation for supporting sound risk management practices by setting expectations for appropriate conduct and accountability across the organization. Our approach to sound risk management is grounded on each employee living our core values and acting in an ethical and responsible manner as we serve the fnancial needs of our customers and communities. Our culture is embodied in the Fifth Third Compass, which informs our actions and decisions, from how we navigate our daily RISK APPETITE STRATEGIC PLAN FINANCIAL PLAN CAPITAL PLAN Risk Appetite Core Principles The core principles that defne our risk appetite and ensure we are operating in a safe and sound manner are : • We act with integrity in all activities. • We understand the risks we take, and ensure that they are in alignment with our business strategies and our risk appetite. • We avoid risks that cannot be understood, managed or monitored. • We provide transparency of risk to our management and Board and escalate risks and issues as necessary. • We ensure Fifth Third’s products and services are aligned to our core customer base and are designed, delivered and maintained to provide value and beneft to our customers and to Fifth Third. • We do not ofer products or services that are not appropriate or suitable for our customers. • We are focused on providing operational excellence by providing reliable, accurate, and efcient services to meet our customers’ needs. • We maintain a strong fnancial position to ensure that we meet our strategic objectives through all economic cycles and are able to access the capital markets at all times, even under stressed conditions. • We protect the Bank’s reputation by thoroughly understanding the consequences of business strategies, products and processes. • We conduct our business in compliance with all applicable laws, rules and regulations and in alignment with internal policies and procedures. CONTINUED 88