ESG REPORT 2022
MESSAGE FROM OUR CEO
MESSAGE FROM OUR CEO
A Message from Robin Vince, President and CEO, BNY Mellon
The past year was a stark and difficult reminder of how interconnected our world is, and the seriousness of the challenges we all face - whether it is the war in Ukraine, the highest level of inflation in decades, disrupted energy markets in Europe, or the volatility and uncertainty the financial system has experienced in the first half of 2023. It is as clear today as ever that when facing challenges like these, the resilience of the financial system is critical. BNY Mellon takes its role seriously, and the services we provide to clients both strengthens the system and goes hand-in-hand with our responsibility to deliver shareholder value and sustainable growth.
I see it as a privilege and responsibility to work with clients, shareholders and the public sector to make positive contributions to society. In this year's ESG report, we highlight a few of the many ways we are helping build resilience in capital markets.
With an approach centered on client choice, we offer a suite of commercial solutions to grow the sustainable finance market. In 2022, BNY Mellon administered 118 new green bond issuances totaling $61 billion, representing 22% of global market share in deal count and making us one of the leading trustees in green bonds by deal volume. We are proud to leverage our breadth of competencies to collaborate with companies, industries and governments to help them achieve their goals and meet increasingly complex financing needs. As an example, we collaborated with the United Nations this year to expand access to sustainable financing for several African countries via a first-of-its-kind repo facility, which could support growth in the volume of green and blue bond financing on the continent.
We are also proud to help clients level up their capabilities to better serve their customers and communities, taking a proactive and deliberate approach to empowering
and collaborating with specialized market participants. Diverse, woman- and veteran-owned investment firms have now led on several of our company's debt issuances,
including in a historic-first transaction for a global systemically important bank. We plan to build on our momentum this year. Similarly, we are helping expand financial access, including to many first-time capital market participants. These efforts range from BOLD® Shares, which allow clients to make a direct social impact with their liquidity investments - in this case helping support Howard University students - to BK Shares, through which almost all members of our company became BNY Mellon stockholders.
To that end, innovation serves as a bedrock for market participation. Our company was the first bank to bring real-time payments to market in the United States and we continue to lead on payments innovation. As a company that touches around 20% of the world's investable assets, moving our client franchise toward paperless payments will not only help reduce the industry's carbon footprint and the cost of doing business, but also make transactions easier, more efficient and more accessible. Within our own firm, we built on progress moving toward paperless and increasing operational resilience, achieving paper neutrality globally in 2022 and carbon neutrality for the eighth consecutive year.1
As the policy environment continues to accelerate, fostering greater collaboration across the public and private sectors, increasing data quality and consistency, as well as gaining greater regulatory clarity, will be key to solving existing and looming challenges. In the short and medium terms, we continue our focus on connecting the dots across our businesses to unlock value for our stakeholders while helping increase resilience in the financial system. We have an important role to play, and I'm excited for the opportunities to help create a better future.
1 For Scope 1 and Scope 2 GHG emissions, including our data centers, as well as Scope 3 business travel emissions through the use of renewable energy and carbon offsets.
BNY MELLON ESG REPORT 2022 | 2 |
ABOUT THIS REPORT
ABOUT THIS REPORT
This is BNY Mellon's 16th report covering environmental, social and governance (ESG) and sustainability topics. Our annual updates in this report cover how we address our company's environmental and social impact and how we view and integrate ESG considerations as we act cross-functionally and across our lines of business.
We publish this report annually, generally in the second quarter, on www.bnymellon.com/futurefirst. Unless we otherwise note, this report includes data and activities from BNY Mellon's global operations for the calendar year 2022, and all data is as of December 31, 2022, and covers The Bank of New York Mellon Corporation, its subsidiaries and certain affiliates. The report
also provides select data from past years in order to facilitate year-over-year analysis. The methodologies, assumptions and estimates underlying our corporate climate strategy and analysis (including those used to calculate greenhouse gas emissions and other climate- related data and those underlying our climate scenario analyses) continue to develop and remain subject to evolution over time, whether because of regulatory, technological or other developments. As a result, information disclosed in this report might differ from those contained in our past disclosures, and we may include information in future disclosures that differs from those contained in this report.
This is our 14th report using the Global Reporting Initiative (GRI) Standards, the most widely used sustainability reporting standards globally,2 and has been prepared in accordance with the Universal Standards. This report also contains information guided by the Task Force on Climate-related Financial Disclosures (TCFD) recommendations; in particular, the Managing Climate-RelatedImpactssection. For more information about various aspects of our ESG- related performance, please see the following policies, statements and website sections:
2023 Proxy Statement
Australia Modern Slavery Act Annual Transparency Statement
BNY Mellon Annual Report 2022 BNY Mellon Code of Conduct
BNY Mellon Enterprise ESG Commitment Statement
BNY Mellon Environmental Sustainability Policy Statement
BNY Mellon Human Rights Statement
BNY Mellon Supplier Code of Conduct Enterprise ESG pages of our website
UK Modern Slavery Act Annual Transparency Statement
We welcome your comments on this report or any of our others via the contact formon our website.
2Big shifts, small steps: Survey of Sustainability Reporting 2022, KPMG, 2022.
BNY MELLON ESG REPORT 2022 | 3 |
TABLE OF CONTENTS
TABLE OF CONTENTS
Table of Contents | 4 |
Our Approach | 6 |
Our ESG Framework | 7 |
Enterprise ESG | 8 |
Sustainable Client Solutions | 12 |
Responsible Investment | 16 |
Investment Management | 17 |
Wealth Management | 23 |
Data and Analytics | 25 |
Expanding Our ESG Data Analytics Ecosystem | 26 |
ESG Reporting Solutions | 26 |
Using Artificial Intelligence Responsibly | 26 |
Investment Compliance Monitoring | 27 |
Financial Infrastructure | 28 |
Sustainable Payments Solutions | 29 |
Securities Finance | 29 |
Incorporating ESG Eligibility Criteria in Collateral | 29 |
Assessing Investment Options | 30 |
Tracking ESG Investment Behavior of Custody Clients | 30 |
Investing in What Matters | 31 |
Real-Time Payments | 31 |
Paper-to-Digital Journey | 31 |
ESG Bonds | 32 |
ESG Advisory Solutions | 32 |
Culture and Purpose | 33 |
Diversity, Equity and Inclusion | 34 |
Leadership and Development | 41 |
Employee Engagement, Retention and Wellbeing | 47 |
Our Community Impact | 54 |
Responsible Business | 61 |
Strong Governance | 62 |
Risk Management | 66 |
Global Citizenship | 73 |
Managing Climate-Related Impacts | 74 |
Environmental Sustainability | 91 |
Protecting Human Rights | 98 |
Supply Chain | 101 |
Advocacy and Political Engagement | 104 |
Appendix | 106 |
Glossary | 107 |
TCFD Index | 110 |
Global Reporting Initiative (GRI) Index | 112 |
UN Global Compact Communication on Progress (COP) 128
Equal Employment Opportunity | 129 |
Verification Opinion Declaration: Green House | |
Gas Emissions | 131 |
Legal Notices | 134 |
BNY MELLON ESG REPORT 2022 | 4 |
ABOUT THIS REPORT
BNY MELLON OVERVIEW
BNY Mellon is proud of the trust clients and the industry place in us - we touch around 20% of the world's investable assets and hold many industry-leading positions across our broader set of complementary businesses. We are the world's No. 1 global custodian, with $44 trillion in assets under custody and/or administration (AUC/A), $10 trillion in average daily clearance value and $2.5 trillion average daily U.S. dollar payment value. These synergistic businesses give us an end-to-end view of the investment life cycle, allowing us to act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute
or restructure investments. We see ourselves as a comprehensive platform for the financial markets of the world, a responsibility we take very seriously.
As we consider the future, we continue to keep in mind how we can leverage our role in the global financial ecosystem and our resources to make a positive impact on society. Not only is helping more people access wealth-generating opportunities and benefit from
our capabilities the right thing to do, but it's also a commercial endeavor. Uplifting historically underserved communities and finding opportunities for collaboration with specialized market players benefits the long-term health of our company and the broader society around us. Over the past year, we were proud of the impact we made on our communities and intend to expand these initiatives in 2023.
ESG Awards and Recognition
Perfect score on the | ||||||
Dow Jones | Human Rights Campaign | |||||
Foundation's 2022 | ||||||
Sustainability North | ||||||
Corporate Equality Index | 2023 Bloomberg | FORTUNE magazine's | ||||
America Index (DJSI) | ||||||
15 consecutive years | Gender-Equality Index | World's Most Admired | ||||
9 consecutive years | ||||||
5 consecutive years | Companies 2022 | |||||
FTSE4Good Global | Best Places to Work | Barron's 100 Most | JUST 100 | |||
Benchmark Index | for LGBTQ+ Equality | Sustainable Companies | ||||
10 consecutive years | 2022 | for 2022 | ||||
Learn more atBNY Mellon Awards and Recognition.
BNY MELLON ESG REPORT 2022 | 5 |
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Disclaimer
The Bank of New York Mellon Corporation published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 16:44:10 UTC.