Bank of New York Mellon : 2022 ESG Report

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.

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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.

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TABLE OF CONTENTS

TABLE OF CONTENTS

Message from our CEO	2
About This Report	3
Table of Contents	4
BNY Mellon Overview	5
ESG Awards and Recognition	5
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

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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.

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