Fifth Third Releases Second Report of Task Force on Climate-Related Financial Disclosures


CINCINNATI–(BUSINESS WIRE)–Fifth Third Bancorp (Nasdaq: FITB) today released its second report from the Task Force on Climate-Related Financial Disclosures. The 2021 TCFD report demonstrates the Company’s progress in implementing the TCFD recommendations and summarizes the Bank’s progress on climate-related disclosures since its inaugural report in late 2019.

“The release of our 2021 TCFD report reflects our commitment to understanding climate risk, integrating climate risk management into our business and disclosure strategies, and helping our customers and communities transition to a more sustainable future.” , said Michele Mullins, senior vice president. and responsible for climate risks. “The comprehensive report aligns our efforts with the task force recommendations and details our climate governance structure, strategy, risk management and metrics.”

The 2021 TCFD report includes sections on:

  • Governance : structure for managing and monitoring climate-related risks and opportunities, including board leadership, management committees, boards and task forces, and senior management roles.
  • Strategy: strategies to support the transition to decarbonization and a more sustainable future, including climate risk management; time horizons and examples of risks; funded programs; climate risk heatmap and exposure dashboard to sectors with high environmental, transition and physical credit risks; scenario analysis; and climate-related opportunities.
  • Risk management: risk management framework and process to monitor climate-related risks, which includes identification, assessment and management as well as credit and reputation risk, commercial lending and operational risk.
  • Metrics and targets: goals and metrics to track progress and success, including sustainable finance goal, operational sustainability goals, purchasing 100% renewable energy, achieving carbon neutrality, and greenhouse gas emissions tight.

Fifth Third maintains a climate leadership score of A- from CDP for its efforts and disclosures related to climate change. The company’s A- score ranked in the fifth third of the first quartile of CDP’s Financial Services business group. It also makes Fifth Third the only bank in its peer group to have maintained a leader score for three consecutive years.

The Bank has been recognized as a leader by other ESG data providers, including Sustainalytics, MSCI and S&P Global. Fifth Third’s Sustainalytics ESG risk rating is currently at low risk, and its MSCI rating recently improved to A. Fifth Third received the highest rating among its peers in the S&P 2021 Global Corporate Sustainability Rating .

Fifth Third is a leader in financing renewable energy projects across the country with more than $7.3 billion provided since 2012 towards our goal of $8 billion by 2025. On January 19, Fifth Third Bancorp has announced a definitive agreement to acquire Dividend Finance, a leading fintech outlet. on-sale lender, offering financing solutions for residential renewable energy and sustainability-focused home improvement. The acquisition is subject to customary closing conditions, including regulatory approvals. Fifth Third expects the transaction to close in the second quarter of 2022. With this acquisition and Fifth Third’s current leadership in providing revolving solutions to commercial customers, Fifth Third is actively evaluating a new focus on sustainable finance.

On November 1, 2021, Fifth Third Bancorp settled the issuance of its first green bond for $500 million. Proceeds will fund green projects that align with the company’s sustainability priorities, as outlined in Fifth Third Bancorp’s sustainability bonds framework. With this issue, Fifth Third became the first US financial institution with less than $250 billion in assets to issue an ESG bond. Fifth Third also appointed its first climate risk manager in 2021 and joined the Ceres Company Network and the Partnership for Carbon Accounting Financials.

In 2020, Fifth Third became the first regional commercial bank to achieve carbon neutrality in its operations, including greenhouse gas emissions from Bank-owned facilities and business travel. Since Fifth Third began measuring Scope 1, Scope 2 and Scope 3 business travel emissions in 2014, it has reduced location-related emissions by more than 43%. To learn more about Fifth Third’s environmental sustainability efforts, see the 2020 Environmental, Social and Governance Report and the ESG site.

About TCFD

The Climate-Related Financial Disclosures Task Force was established in 2015 by the Financial Stability Board (FSB) to develop consistent climate-related financial risk disclosures for use by corporations, banks and investors to provide information to stakeholders.

About the fifth third

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent of Fifth Third Bank, National Association, a federally chartered institution. As of December 31, 2021, Fifth Third had $211 billion in assets and operated 1,117 full-service banking centers and 2,322 branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third offers its customers access to approximately 54,000 free ATMs across the United States. Fifth Third operates four primary businesses: commercial banking, branch banking, consumer lending, and wealth and asset management. Fifth Third is one of the largest fund managers in the Midwest and, as of December 31, 2021, had $554 billion in assets under management, including $65 billion for individuals, businesses and nonprofits. through its Trust and Registered Investment Advisory Firms. Investor information and press releases can be viewed at www.53.com. Fifth Third common stock is listed on the Nasdaq® Global Select Market under the symbol “FITB”.

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