Our assessment framework uses a variety of quantitative and qualitative measures to evaluate clients’ current emissions performance, their track record and future plans. Quantitatively, we collect and assess historical emissions reductions, current carbon intensity and forecasted intensity based on publicly announced emissions targets. Qualitatively, we assess actions the client has taken to drive progress, such as formulating detailed decarbonization plans, establishing clear governance and oversight of climate strategies and polices, and more. The development and implementation of our assessment framework was led by the CCT, along with partners such as key Banking and Risk Management groups. We will continue to build on our efforts in key portfolios over time, particularly as we expand to additional targets and sectors. SUPPORTING OUR CLIENTS WITH CAPITAL AND EXPERTISE The low carbon transition is a focus for our banking teams, and we continue to build our ability to provide tailored advice and solutions to our clients as they adapt and grow their businesses in a changing world. Whether a client is working to transition their business model and operations to reduce emissions, or to develop and grow new technologies or solutions to help address the climate challenge, our objective is to use our capital and expertise to help them succeed. As we expand our capabilities, we are able to provide clients with increasingly diverse and innovative solutions, while helping to grow the market for green and sustainable financing. For example, in October 2021, we acted as Joint Placement Agent on a $1 billion equity placement to capitalize a new passenger EV subsidiary for Tata Motors. Recognizing the potential and capital needs of the passenger EV business, the transaction was designed to attract investors seeking exposure to this segment and enable Tata Motors to accelerate its plans. As another example, in June 2021 we acted as Active Bookrunner on a $1.5 billion green bond offering by NextEra Energy. NextEra owns and operates two businesses – Florida Power & Light, the largest utility in the U.S., and NextEra Energy Resources, the world’s largest generator of renewable energy from wind and solar – which are working together toward a goal of reducing NextEra’s emissions 67% by 2025 from a 2005 baseline. The bond, proceeds of which will be used to support a portfolio of renewable energy generation and storage projects, uses a mechanism to encourage transparency and accountability, by providing a coupon step-up if the company fails to produce certification of allocation and impact within two years and 60 days of issuance. This work is further highlighted by the green objective of our Sustainable Development Target, which aims to finance and facilitate $1 trillion through the end of 2030 towards the deployment of solutions for cleaner sources of energy and supporting the transition to a low-carbon, sustainable economy. This includes transactions supporting renewable energy, clean technology, water and waste management, conservation, sustainable transportation, green buildings and energy efficiency. For more information on our progress toward our Sustainable Development Target and examples of qualifying green transactions, see page 8. ENHANCING OUR COVERAGE As we further implement our low-carbon transition strategy, we continue to enhance our abilities to meet client needs through both deepening expertise in our existing teams and establishing new teams specializing in green and other transition-related areas. For example: • Our CIB CCT plays a key role in driving implementation of our emissions intensity reduction targets and engaging with cli - ents on sustainability-focused financing, research and advisory solutions to help guide their long-term business strategies. This includes providing strategic advice on clients’ long-term business strategies and related carbon disclosures, as well as partnering with industry and product teams to structure unique financing products across public and private capital mar - kets. The CCT has accountability to senior leadership in the CIB and CB and works in close partnership with teams across our Firm to drive achievement of our targets. • Formally launched in 2021, our CB Green Economy Banking team is a specialized industry coverage team established to drive the Green Economy client franchise by providing subject matter expertise, connectivity to bank products and solutions and specialized credit underwriting efforts to the growing number of companies primarily focused on sustainable technologies, products and services. Over the past year, the team has grown in the U.S., while also laying the groundwork to expand inter - nationally. Green Economy Banking is currently aligned with five sectors – renewable energy & carbon, efficiency technol - ogy, sustainable finance, sustainable agriculture & food technology, clean energy mobility – and senior Green Economy bankers have assigned sub-industry coverage within these sectors. The team’s mission is to identify and support emerging and established growth companies in these key sectors. In the following section, we highlight additional teams around our Firm which are providing sustainability-focused solutions for our clients and customers. Next Steps In 2022, we intend to release a dedicated climate report, informed by the recommendations of the TCFD, which will include progress updates on our emissions intensity reduction targets and our next steps in expanding to additional sectors. 13 INTRODUCTION ENVIRONMENTAL Advancing Climate and Sustainability Solutions Operational Sustainability SOCIAL GOVERNANCE ESG REPORT APPENDICES