2018 ESG REPORT Table of Contents
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Purpose Drives Performance 2018 ESG REPORT Table of Contents Executive Message .............................................................................................................................................................................2 About This Report .............................................................................................................................................................................................8 Our Approach to ESG .......................................................................................................................................................................................9 Awards and Recognitions ......................................................................................................................................................................... 13 2018 ESG Highlights ....................................................................................................................................................................................14 ECONOMIC ............................................................................................................................ 15 Company Overview and Financial Impact .......................................................................................................................................16 CUSTOMER FOCUS AND IMPACT People First, Technology Enabled ........................................................................................................................................................ 20 Fair and Responsible Banking ................................................................................................................................................................ 22 Customer Service, Satisfaction, and Advocacy .......................................................................................................................... 26 BUSINESS FOCUS AND IMPACT Commercial and Business Banking ..................................................................................................................................................... 29 Support for Small Business ......................................................................................................................................................................31 COMMUNITY FOCUS AND IMPACT Investing in Communities .......................................................................................................................................................................... 34 Affordable Housing and Homeownership ....................................................................................................................................... 38 GOVERNANCE ...............................................................................................................................42 Corporate Governance, Ethics, and Risk ..........................................................................................................................................43 Responsible Partners and Contractors ............................................................................................................................................49 Data Security and Customer Privacy .................................................................................................................................................52 SOCIAL ..........................................................................................................................................55 Diversity and Inclusion................................................................................................................................................................................ 56 Colleague Experience ................................................................................................................................................................................. 61 Colleague Engagement, Development, Retention, and Attraction ................................................................................. 64 Workplace Safety and Security ............................................................................................................................................................ 70 Community Outreach and Philanthropic Investments ............................................................................................................ 72 ENVIRONMENTAL .........................................................................................................................76 2018 Environmental Highlights ........................................................................................................................................................... 77 Environmental Management .................................................................................................................................................................. 78 Energy Efficiency and Carbon Intensity .......................................................................................................................................... 80 Reducing Waste and Water Usage ...................................................................................................................................................... 83 APPENDIX .....................................................................................................................................85 HUNTINGTON 2018 ESG REPORT PURPOSE DRIVES PERFORMANCE 1 Stephen D. Steinour Chairman, President, Welcome. and CEO To our fellow shareholders, customers, David Porteous Lead Director colleagues, and community members: 2018 was a year of significant accomplishments. We are Through economic cycles and changing political climates, proud of our nearly 16,000 colleagues who work each day our purpose keeps us consistently focused on the priorities to fulfill our purpose: to make people’s lives better, help that matter most. It’s supported by a robust risk management businesses thrive, and strengthen the communities we serve. culture and our strategic goals. At the end of 2018 as part of our We are a purpose-driven organization. Our purpose is to look strategic planning process, we had the opportunity to update out for people, and it is deeply ingrained in our culture, our these goals after achieving our previous objectives two years brand, and our value creation model. ahead of schedule. The new strategic plan directly incorporates Our bank was founded in 1866 on the corner of Broad our commitment to a robust ESG strategy. and High streets in Columbus, Ohio, steps away from our This report is designed to highlight the many ways in which current headquarters. It is today, as it was then, grounded in our purpose is alive at Huntington and guides our actions and the simple principle of doing the right thing. More recently, interactions with stakeholders. We’ve organized this year’s these foundational values have been formalized within our report into four sections: Economic, Governance, Social, and Environmental, Social, and Governance (ESG) strategy. That Environmental to highlight the unique impact we can make journey began more than two years ago and since then, we as a financial institution. The commitments, programs, and have been focused on the issues identified as materially “moments” outlined in these pages make us proud to be important to our business and our stakeholders. The ability Huntington colleagues, and we’d like to share with you a few for people to make informed decisions about money, to live notable examples in each category from the past year. in economically inclusive communities, to have confidence in a healthy, sustainable environment for future generations – these are of critical importance to our business and each of our Huntington colleagues. HUNTINGTON 2018 ESG REPORT PURPOSE DRIVES PERFORMANCE 2 INTRODUCTION Executive Message ECONOMIC We play a critical role in the lives of our customers, the health of our communities, and the strength of businesses in our footprint. As a regional bank, Huntington is focused on creating shared economic value where we operate. Even as some Americans have felt a substantial increase in their financial well-being since the Great Recession, many others continue to struggle. We are a catalyst for positive change – by helping people purchase their first home, providing banking services to families and businesses in low-to-moderate income Economic Milestones in 2018 neighborhoods, and partnering with city leaders to drive local initiatives and investments. • Established our position as the nation’s #1 originator Our small-business lending and home loan policies of loans to small business through the Small Business and procedures allow us to say “yes” more often while Administration 7(a) loan program; 2018 also was our 10th straight year at #1 within our footprint. maintaining our aggregate moderate-to-low risk profile. We are the nation’s number-one originator of • Spent more than $140 million with diverse suppliers, loans, by volume, to small business through the U.S. more than 26% of our annual spend in 2018, the highest level ever. Small Business Administration 7(a) loan program, an intentional commitment relative to being the 34th • Accelerated the implementation of our $16.1 billion largest U.S. bank holding company. five-year community development plan, which enables Our commitment to engaging with and supporting us to provide loans to first-time