Enterprise Financial Services : 2023 Environmental, Social and Governance Report

2023

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Enterprise Financial Services Corp

Creating Success by Prioritizing Community, Clients and the Environment

A MESSAGE FROM OUR PRESIDENT & CEO

Enterprise continues to take seriously our role in managing our business for success and creating positive contributions to society. As we have since our founding, we remain committed to creating a positive impact on our associates, clients and the communities in which we live and work.

One of our best opportunities to create meaningful change as a financial institution is through the New Markets Tax Credit ("NMTC") program, which helps us to fund and subsidize projects

in underserved communities. In September of 2023, we were pleased to receive a $60 million allocation from the Community Development Financial Institutions Fund of the U.S. Department of Treasury. This allocation will allow us to continue our work with the NMTC program, which helps create jobs and increases access to community services for those who need it most.

We continue to innovate with internal programs designed to help our associates grow and thrive. This year, we launched two new programs to help us continually improve in this area. The first is Enterprise EDGE, an all-leadership regional conference series featuring six sessions to help align managers on our approach to leading associates.

Sessions included "Improving Performance by Fostering an Inclusive Team Culture" and "Leading Through Accountability." We also launched our first-ever Associate Belonging & Inclusion Week, which included a series of engaging and informative online activities that helped us foster inclusion and a sense of belonging for all associates.

We believe these efforts are a contributing factor in Enterprise receiving several important distinctions in 2023, including being ranked No. 3 on the Forbes® list of America's Best Banks, and being named for the sixth straight year to the American Banker® list of Best Banks to Work For. We were also pleased to be recognized by 50/50 Women on Boards™ as a "3+" corporation, with three or more women on our Board of Directors.

In the pages ahead, we share much more information about our ESG efforts that are helping to ensure we are part of the solution.

Jim Lally

President & CEO

Enterprise Financial Services Corp

TABLE OF CONTENTS
Our Guiding Principles	02
I. ESG Governance	04
II. Climate	06
III. Community Involvement	08
IV. Human Capital	12
V. Additional Important Governance Policies	18

ABOUT THIS REPORT

Enterprise Financial Services Corp ("EFSC") is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers primarily located in Arizona, California, Florida, Kansas, Missouri, Nevada and New Mexico through its banking subsidiary, Enterprise Bank & Trust® (the "Bank"). The terms "we," "us," "our," "Enterprise" or the "Company" as used in this Environmental, Social and Governance ("ESG") Report refer collectively to EFSC, together with its subsidiaries, including the Bank, when or where appropriate.

This Report is not comprehensive. It should be read in conjunction with EFSC's 2023 Annual Report on Form 10-K and, in particular, the "Forward-Looking Statements" and "Risk Factors" sections of the 2023 Annual Report, together with other reports filed by EFSC with the Securities Exchange Commission ("SEC").

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ENTERPRISE FINANCIAL SERVICES CORP

150 N. Meramec Avenue • Clayton, MO 63105

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Keene Turner, Senior EVP, Chief Financial Officer

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Our

GUIDING

PRINCIPLES

We take great effort and pride in creating a strong culture anchored by a set of Guiding Principles that focus on our culture and decision-making. We work to exemplify these principles through everyday behaviors, management practices and organizational norms. We utilize a variety of ways to reinforce these principles and to encourage and celebrate associates demonstrating these behaviors, including our Peer-to-Peer Recognition Program that allows associates to recognize their peers for exhibiting these principles.

OUR GUIDING PRINCIPLES ARE:
ڼ Integrity	ڼ Belonging & Inclusion
ڼ Client Success	ڼ Continuous Improvement
ڼ Accountability	ڼ Balance
ڼ Teamwork	ڼ Corporate Citizenship

2023 Awards & Recognition

In 2023, we were recognized by a variety of organizations for our commitment to our associates and communities.

DOING WELL BY DOING GOOD AWARD

Once again this year, Enterprise has won the Doing Well by Doing Good Award, which is given by Mastercard®. The award is given to a select few organizations that promote community service, philanthropy and charitable giving to make a difference in the communities they service.

AMERICA'S BEST BANKS

This year, Enterprise was proud to be No. 3 on the Forbes® list of America's Best Banks, up from No. 35 the previous year. The rankings are based on growth, credit quality and profitability over a 12-month period.

BEST BANKS TO WORK FOR 2023

For the sixth straight year, Enterprise has made the American Banker® list of Best Banks to Work For, jumping nine spots to No. 52 nationwide. The ranking comes from a combination of an associate survey plus a review of our policies and associate benefits.

"3+" CORPORATION

Once again we were recognized by 50/50 Women on Boards™ as a "3+" corporation with three or more women serving on our Board of Directors, an important step to achieving gender-balanced and diverse boards.

WOMEN IN THE WORKPLACE HONOREE

The Women's Foundation of Greater St. Louis named Enterprise as an honoree in their Women in the Workplace awards. The awards are given based on company policies, practices, development and data that show our commitment to supporting and advancing women in the workplace.

2023 LEADER IN DISABILITY INCLUSION AWARD

The Center for Disability Inclusion recently awarded Enterprise with its Disability Inclusion Award. This award is given to organizations that demonstrate values associated with being a leader in disability inclusion.

TOP-PERFORMING BANKS

Enterprise moved up five spots - from No. 32 to No. 27 - in American Banker's annual list of top-performing banks with between $10 and $50 billion in assets. The ranking is based on a three-year average return on equity for each institution.

OUR GUIDING PRINCIPLES

03

All trademarks are the property of their respective owner(s).

I.

ESG GOVERNANCE

Our commitment to sustainability begins with the Board of Directors of Enterprise (the "Board"). As the governing body responsible for our general oversight and strategic direction, the Board establishes parameters to ensure our interactions with society and the environment are considered in connection with all business activities.

The Risk Committee of the Board is composed exclusively of independent directors1 and is responsible for the governance of our Enterprise Risk Management ("ERM") framework and ESG policies and initiatives. The Risk Committee advises and informs the Board on ESG matters,2 including sustainable management and oversight of climate-related risks. The Risk Committee provides direction and oversight of management regarding the Company's ESG-related activities and reviews and approves ESG disclosures. In addition, the Risk Committee oversees the activities of the following management committees: Risk Oversight, ESG Management, Regulatory Compliance and Operations Technology.

1

2

Independence determined in accordance with the Nasdaq listing rules.

Environmental, health and safety, corporate social responsibility, sustainability and other public policy issues.

04

ERM FRAMEWORK

EFSC BOARD OF DIRECTORS

RISK COMMITTEE

REGULATORY		RISK		OPERATIONS
COMPLIANCE		OVERSIGHT		TECHNOLOGY
COMMITTEE		COMMITTEE		COMMITTEE

ESG MANAGEMENT COMMITTEE

I. ESG GOVERNANCE

The Risk Oversight Committee has overall responsibility for monitoring our ERM framework. The ESG Management Committee is a subcommittee of the Risk Oversight Committee and reports to it on ESG matters.

The ESG Management Committee is comprised of a cross-functional group of management associates tasked with assisting the development, implementation and monitoring of our ESG strategy. The ESG Management Committee is also responsible for overseeing the implementation of ESG initiatives and supporting our ESG strategy, including those related to climate-related risks.

The Regulatory Compliance Committee is a management committee responsible for monitoring our compliance programs, policies and procedures to ensure these are appropriately responsive to the various legal and regulatory risks facing the Bank. The Regulatory Compliance Committee chair is a member of both the Risk Oversight and ESG Management Committees and advises these committees on risks and opportunities related to community development lending, bank secrecy and anti-money laundering, client complaints and other compliance-related matters. Further, the Regulatory Compliance Committee chair reports committee activities to the Risk Committee of the Board. See Bank Regulatory Compliance Program on page 22 for more details on compliance governance.

The Operations Technology Committee is a management committee with overall responsibility

for monitoring the systems, policies and procedures for our loan, deposit and wealth management business operations. This includes the framework used to identify and prevent cyberattacks or breaches. The Operations Technology Committee chair reports committee activities to the Risk Committee of the Board. Additionally, the Chief Information Security Officer ("CISO") is a member of this committee, as well as the Risk Oversight and ESG Management Committees, and advises these committees on risks and opportunities related to information security, including data privacy. See Customer Privacy & Data Security on page 25 for more details on information security governance.

To ensure a systematic and firm-wide approach to ESG matters, we have integrated the identification, measurement, monitoring and controlling of ESG issues into our existing ERM framework. The ESG Management Committee has identified several risks specifically related to ESG matters. These risks are part of our risk inventory and are integrated into our ERM framework. To ensure understanding of ESG and the related concepts across our organization, all associates are annually required to complete ESG training. As our ESG protocol matures, we will continue to incorporate it into our ERM framework.

We also have policies and operational procedures
designed to promote our sustainability efforts and
increase the effectiveness of our risk governance
framework. The most significant of these policies are
described in more detail in Section V - Additional
Important Governance Policies on page 18.	05

II.

CLIMATE

We understand climate change may present certain risks to our business. With the oversight of our Board and the Risk Committee, we are formulating processes for identifying and measuring the impact of climate-related risks and their potential significance to our ongoing business operations and long-term value. As we continue to work to understand the risks and expand on and enhance our climate response, we may include specific climate change considerations into our risk management protocol, strategic planning, organizational goals and operational procedures.

While we have not experienced material losses from climate change, we are aware of the potential impact to us and our clients and are planning risk mitigation strategies, where appropriate. For instance, the risk to our physical infrastructure from extreme weather conditions is mitigated by our business continuity planning and appropriate insurance coverage. The risk to collateral in our loan portfolios from extreme weather conditions is mitigated by compliance with flood and mortgage hazard insurance coverage, as well as other insurance coverage as applicable. While current insurance policies may cover some or all of the loss associated with many severe weather events, policies may, over time, become more expensive or unavailable to cover losses for a particular geographic area or business activity, particularly if faced with increasing severity and frequency of severe weather events.

06

A. GREENHOUSE GAS EMISSIONS

To better understand our environmental impact and help us identify climate-related business risks and potential opportunities, we continue to identify the sources of, and work to measure, our greenhouse gas ("GHG") Scope 1 and Scope 2 emission calculations and are also assessing the data required to calculate Scope 3 GHG emissions, including those associated with our financing activities.

B. CREDIT MANAGEMENT

We lend primarily to privately owned and operated businesses. Significant environmental factors are evaluated as part of our existing lending policies and processes, including our calculation of current expected credit losses ("CECL"). However, we are evaluating additional environmental considerations to help us better understand industries and sectors with exposure to climate-related transition and physical risks. We are also investigating methodologies and emerging risk models that measure the financial impact of these risks. This includes the timing and magnitude of climate- related impacts, which are highly uncertain and dependent on the mitigating actions implemented.

For further details on our credit exposure by NAICS code, refer to Loans by Type on page 39 of our 2023 Annual Report on Form 10-K.

For a full discussion of risks to our business, see "Risk Factors" in our Annual Report on Form 10-K, including climate-related risk on pages 25-26.

C. RECYCLING

Our recycling program includes paper, cardboard, aluminum cans and plastic bottles. Recycling stations are provided in our branch locations and operations center, where local haulers support this program.

When possible, we strive to reuse electronic equipment. When reuse or resale is not feasible, we recycle using regulated and certified hardware recycling vendors. By using certified vendors, we ensure that our electronic waste is properly managed and that valuable raw materials are recovered and reused.

D. GOVERNANCE, METRICS & TARGETS

The Risk Committee continues to oversee and assess ways to identify and manage the risks posed by climate change to our business. As part of our ESG structure, the Risk Oversight Committee, with the assistance of the ESG Management Committee, is responsible for developing, recommending and implementing our climate-related strategy and apprising the Risk Committee of the information necessary to make informed decisions regarding our climate change response. Additionally, the Risk Oversight Committee, along with the ESG Management Committee, continues to consider and assess appropriate metrics and targets by which the Risk Committee can evaluate the level of achievement of our climate change-related goals as they continue to evolve. See Section I - ESG Governance on page 04 for more information on the oversight structure.

II. CLIMATE

07

III.

COMMUNITY

INVOLVEMENT

We are committed to managing our business and community relationships in ways that positively impact our associates, clients and the diverse communities where we live and work. We have a long-standing history of supporting our communities. Our Community Impact Report provides information and stories about our various community engagement initiatives, including affordable housing, volunteerism, philanthropy, diversity and inclusion, and education. A few examples of our endeavors are described within this section.

View Our Latest Community Impact Report

08