Ameriprise Financial Responsible Business Report
Spring 2021
Ameriprise Financial, Inc. Table of Contents
A Message From Our Chairman and CEO...... 2 Environmental Steward...... 25
Executive Summary...... 3 Community Impact...... 27
Recognized as an Industry Leader...... 4 Appendix – Ameriprise and Our Global Reach...... 30
Financial Strength and Stability...... 5 Appendix – Diversified Business Underpinned
by a Strong Financial Foundation...... 31
Values-Driven Firm...... 6 Appendix – Diversified Business with
Multiple Stakeholders...... 32 Responsible Investor...... 17
Appendix...... 33 Governance...... 22
1 Dear fellow stakeholders,
2020 was a year of significant and unforeseen Again in 2020, Ameriprise received top scores challenges that underscored the importance of for customer loyalty, customer service and sustainability. I’m proud to report that Ameriprise employee engagement. In addition, we were again navigated well in this extraordinary economic, included in the FTSE4Good Index Series and the market and social climate. We remain in a strong Bloomberg Gender Equality Index. position today because we care deeply about In this 2021 Responsible Business Report, what we do, and we’ve prepared ourselves to we discuss our sustainability approach under manage uncertainty and help our clients do five pillars: values-driven firm, responsible the same. investor, governance, environmental steward and We executed with a clear focus on serving our community impact. Importantly, we describe how clients, maintaining the health and safety of the we have kept the interests of all our stakeholders Ameriprise team, supporting our communities front-and-center during the pandemic, and we and generating strong business results. In highlight our efforts to advance diversity and fact, in a year of historic market volatility and inclusion, evolve our related disclosures and change, we earned record client satisfaction, assure our emission data. excellent employee engagement and achieved an In closing, the challenges in 2020 helped us important milestone of growing our assets under demonstrate the best of Ameriprise, which management and administration to more than we bring to life in this report. I hope you find it $1 trillion. informative. We are proud of our strong record The financial services industry is essential to of managing our business and are committed to advancing the global economy — supporting building on our legacy. business growth, creating liquidity for businesses Sincerely, large and small and enabling opportunity. Ameriprise plays an important role as a leading diversified firm. We provide important advice, support and solutions to keep people and institutions on track to achieve their goals through market cycles. James M. Cracchiolo Chairman and Chief Executive Officer
JAMES M. CRACCHIOLO
Data as of Dec. 31, 2020. 2 Executive Summary In this report, we summarize how Ameriprise manages our business responsibly to serve our clients and deliver long-term, sustainable value.
Values-Driven Responsible Governance Environmental Community Steward Firm Investor From our tone at the Impact Ameriprise is Our financial top and culture of As a financial services We strive to improve a values-driven strength, steady compliance to the firm, Ameriprise is the communities firm. Our values investment and extensive corporate a low greenhouse where we live of client focus, robust enterprise governance gas (GHG) emitter. and work. integrity always, risk management framework of We incorporate Through strategic excellence in all program are independent responsible grantmaking, we do, and respect critical elements oversight of our environmental volunteerism and for individuals and of preserving Board of Directors, practices in the global gift matching, communities in and creating Ameriprise and our management of our Ameriprise supports which we live and sustainable, long- stakeholders are facilities and have a diverse group of work guide our term shareholder well served by our earned top ENERGY 8,000 nonprofits actions. Our culture value. We are strong governance STAR ratings for across the U.S., UK and our people are committed to the capabilities, the actions we’ve and other markets. central to our long- systems and implemented to prudent management Read more. term sustainability. principles that policies. improve energy efficiency. Read more. underpin our firm. Read more. Read more. Read more.
We update this report annually. Data reported herein is as of Dec. 31, 2020. For more information or previous reports, visit ameriprise.com.
3 Recognized as an industry leader
Clients rate Ameriprise Among the 4.9 out of 5 industry leaders in overall satisfaction and for employee engagement “always putting my interests first”
Hearts & Wallets Award 94% say they now feel more Top PerformerTM designation in confident about retirement “understands me and shares my values”
For the second consecutive year, Columbia Threadneedle ranked in the J.D. Power recognized Ameriprise Top 5 of the 2020 Barron's Fund Family rankings and had for providing "An Outstanding Customer Service 108 and Experience" for phone support for advisors Morningstar-rated funds
See appendix for source and disclosure information. 4 Ameriprise stands tall as one of the strongest firms in the industry
This enables us to stay focused on meeting Our financial strength the needs of our clients, advisors, employees, shareholders and other stakeholders. differentiates Ameriprise • Strong ratings and risk management • High-quality investment portfolio • Strong liquidity • Effective hedging program $1.1 trillion in assets • Conservative debt level, strong fixed under management and administration charge coverage • Strong RBC, excellent free cash flow generation of ~90% of adjusted operating earnings • Ability to invest for growth and return capital to shareholders at a differentiated rate Our financial strength underpins our commitments and allows us to continue to invest in the business across market cycles.
As of Dec. 31, 2020. 5 VALUES-DRIVEN FIRM | RESPONSIBLE INVESTOR | GOVERNANCE | ENVIRONMENTAL STEWARD | COMMUNITY IMPACT
Values-Driven Firm
Perspectives from our People — Guided by our values responses from our employees and advisors in our annual From our business decisions to the training we conduct and the engagement survey leadership expectations we foster, our values guide our actions. “ Client first + longer-term thinking = sustainable high-integrity business.” Client focused Ameriprise is built on serving and satisfying clients; meeting their needs is our top priority. “ Ameriprise has a strong brand, strong commitment to the client Integrity always experience, and a focus on financial We strive to uphold the highest standards of integrity and stand behind what we say and do. planning. That is why we joined Ameriprise. I feel confident that Excellence in all we do as this industry continues to We provide world-class service and innovative products and solutions; we hold ourselves accountable for our actions and the company’s results. change, we are in good hands with Ameriprise.” Respect for individuals and for the communities in which we live and work We respect each other, value diversity and inclusion and work as a team to achieve our goals. Our people are key to our success. We develop our people, reward performance and strengthen our communities by supporting organizations that our employees and advisors support through their money and time.
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Serving our clients’ best interests these documents describe our commitment to Leadership and Trust As a longstanding leader in financial planning and clients, the actions we take to safeguard their advice in the U.S., a global asset manager and an accounts, products available, the way our company and our advisors are compensated and how we insurer, understanding and meeting clients’ needs can help answer questions. Our advisors also is our top priority. Clients value the personalized explain how they manage their practices and the advice and informed perspective they receive pricing of various services they deliver. from Ameriprise — especially during periods of uncertainty and at important moments in In addition to our holistic and robust client their lives. relationship materials, clients receive timely notification of transaction confirmations, account Our clients, advisors and the firm benefit from statements and other communications. the ongoing investment we make in our client For the second consecutive year, experience supported by a strong compliance Ameriprise was recognized as foundation of appropriate policies, supervision Delivering high-quality client service an industry leader by J.D. Power and disclosures. We are committed to offering Service is a competitive advantage for Ameriprise, for providing "An Outstanding a broad choice of products and services to help and we are pleased to be recognized as an Customer Service Experience" clients reach their goals — both ours and other industry leader, including by J.D. Power for companies'. providing ‘An Outstanding Customer Service for phone support for advisors. Our financial advisors operate under very high Experience’ for phone support for advisors. standards of care, including applicable standards The Ameriprise service experience begins with See appendix for source and disclosure information. from the SEC, DOL, FINRA and state regulators, listening to our clients and advisors and earning and we will continue to adapt to an evolving their trust one interaction at a time. We gather regulatory landscape. We are proud to adhere to their feedback through ongoing satisfaction the consumer protection principles of putting our surveys that help us prioritize our resources and clients' interests first and transparency. When we build our continuous improvement strategy. provide clients with recommendations as a broker- dealer or act as an investment adviser, we act Teams across our global footprint work together in our clients’ best interests and do not put our to be the best in the industry. interests ahead of clients’ interests. Ameriprise is We continually improve tools, digitize our committed to clearly informing clients about the processes, make it easier to do business virtually benefits, costs and material risks of the financial — and use our award-winning training program to solutions we recommend. ensure our employees provide the right answer the first time, process transactions precisely and in a We provide our Client Relationship Summary, timely manner and swiftly handle escalations and Working in your best interest document (Regulation complex issues. Best Interest and your brokerage relationship with Ameriprise), and Client Relationship Guide to all We’re working to build on this success to serve new wealth management clients in the U.S. to help clients and advisors when, where and how they them understand how we serve them. Together, want to be served.
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Consistently achieving high levels of In addition to annual training requirements at the employee and advisor engagement firm level and for those who maintain regulatory designations, we encourage all employees to Each year, we survey our employees and advisors take advantage of our professional development to understand their level of engagement. Since We are an industry programs, including online courses, workshops, debuting our engagement survey in 2005, our leader in employee mentoring, networking and peer-to-peer programs. employee and advisor results have consistently engagement exceeded external benchmarks across all of S e e pages 15-16 for actions we took in 2020 to our dimensions. support employees during the pandemic. That was true again in 2020, where we saw particular strength in the metrics of Integrity, Respect, Growth & Development, Empowerment Aligning pay with performance 87% employees and Teamwork & Collaboration. We were also Our employee compensation program is designed received development pleased with the high rate of participation — to attract, retain and motivate employees, and training in 2020 despite especially given the pandemic — 93% of employees we assess it annually to ensure competitiveness. working largely virtually participated, up from 91% in 2019. Our compensation programs are directly aligned with performance, and we work to ensure internal A culture of learning — training our equity when considering an employee’s skills and contributions. employees and advisors We assess performance from both Goals and Ameriprise is committed to the growth and We delivered an Leadership perspectives. Goals measure what development of our people. We view all employees is accomplished against stated objectives; estimated 11.4 training as leaders and risk managers. Our training Leadership measures how the work is hours per employee programs and courses build leadership skills and accomplished consistent with our leadership in 2020 help employees grow professionally and advance competencies. Employees receive base pay and within the company. We also work closely with many are eligible for annual incentive awards and our field leadership team to engage our employee additional long-term incentives. and franchise advisors in training programs, conferences and coaching opportunities that We provide extensive information about help grow their practices while reinforcing our our executive compensation program through commitment to clients and our corporate values. our annual proxy statement available at ir.ameriprise.com. Our executive compensation program operates within a corporate governance framework designed to ensure independent oversight, objective advice an analysis, appropriate risk management and transparency.
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Supporting total well-being Fostering an environment to attract, Ameriprise offers a comprehensive and U.S. Benefits Program and other resources develop and retain talented people competitive benefits program and resources to Physical Emotional Our business is driven by the capabilities and support our employees’ physical and emotional • Onsite Health • Employee Assistance commitment of our people, the effectiveness of health. Our benefits include medical, dental, Services Clinic* Program (EAP) our processes, the performance of products we vision, life and disability insurance, flexible work • Health coaching • Resiliency and stress offer and our technology. Creating an outstanding arrangements, tuition reimbursement, commuting management tools employee experience, and thereby retaining and • National fitness assistance and programs to support a healthy and resources center discounts; developing our people, is essential to our long- work-life balance. virtual and on- • Support groups term success. That includes our corporate office demand fitness employees as well as our advisors across the We provide health and wellness resources • Business Resource classes U.S. and the talented staff they employ. In fact, beyond traditional comprehensive benefits. Networks • Onsite fitness the retention rate among affiliated advisors who Our Health Matters Well-being Program supports • Onsite behavioral center* have been with us for more than 10 years is employees’ physical, emotional, financial and health clinician* 95%.1 • Telemedicine social wellness. The program offers information • Meditation rooms about exercise, nutrition, financial preparedness, • Flu vaccinations Our professional development programs are • Virtual behavioral self-development and managing stress and designed to help employees reach their potential • Onsite breast health counseling through challenging and rewarding work, training anxiety. cancer screenings and recognition. This includes competitive As part of this approach, teams from Security, • Ergonomic desk Financial compensation, benefits and rewards, programs Human Resources, Real Estate/Facilities and workspace to support physical and emotional health, Business Continuity collaborate to ensure the adjustments • Financial education and finance sustainable practices and the ability to participate health, safety and well-being of employees, calculators in company-sponsored volunteer activities. contractors and clients; leverage effective Social models to prevent injury and incident expenses; • Financial planning • Flexible work subsidy and drive compliance with legal and regulatory arrangements requirements. • Tuition "I am able to work on projects that • Childcare discounts reimbursement This coordination has been critical during the and student loan are meaningful with a team that • Maternity and pandemic, as we focused on ensuring we could refinancing parental programs is engaged and skilled. Ameriprise continue to meet the needs of clients and • Discount programs walks the talk where inclusivity is advisors while maintaining the health and safety • Adoption, childcare of our people. and elderly care • Legal services concerned, making our team strong support • Student loan in terms of thought diversity." • Mothers rooms financing program S e e pages 15-16 for additional COVID-19 AMERIPRISE EMPLOYEE RESPONSE highlights. ANNUAL SURVEY *Minneapolis corporate offices only
1 Source: Ameriprise Financial 2020 10-K. 9 VALUES-DRIVEN FIRM | RESPONSIBLE INVESTOR | GOVERNANCE | ENVIRONMENTAL STEWARD | COMMUNITY IMPACT
Championing a diverse and inclusive culture 2020 was a year when diversity and inclusion • Hosted our third annual Global Diversity and We believe that through diversity, we access gained increased attention from all our Inclusion Week focused on allyship. We also stakeholders. We recognize the importance of added a new D&I training course focused talent, innovative ideas and varied perspectives “human capital development” and have a strong on “How to be an ally,” and we held “Candid to deliver financial solutions that meet clients’ diversity and inclusion program and capabilities conversations” to help leaders and employees needs and make a difference in their lives. that we are proactively and intentionally evolving. address topics such as race, gender inclusion, Achieving our diversity and inclusion vision, sexual orientation, ability and veteran status. mission and aspirations — as noted below — Our commitment to diversity and inclusion are key to our sustainability, and we are proud (D&I) starts with strong engagement with our And we expanded our human capital disclosures, adding to our disclosure of women at multiple of the work we have done to foster a diverse Executive Leadership Team (ELT), complemented and inclusion culture. levels of the organization to include race by our Global Diversity Steering Committee that and ethnicity data for all employees, as well guides and champions our D&I strategy and plan. as metrics related to our advisor force. The In 2020 we expanded the committee to include information is on the following page. Ameriprise Diversity & Inclusion passionate leaders who help lead our business Vision resource networks and we engaged more senior leaders to help drive D&I strategies within their Belong, grow an con ri e in a c l re ha lines of business. In addition, Ameriprise signed nleashes po en ial the CEO Action for Diversity pledge. Mission We are building the inclusive leadership skills of e fos er an incl sive c l re where we everyone at Ameriprise. In 2020, we em race he ni e con ri ions of everyone • Added new content to our D&I curriculum that a Ameriprise an empower hem o eliver goes beyond unconscious bias training to val e for o r iverse clien s, comm ni y provide leaders and employees practical tools an sharehol ers to mitigate bias in all key talent processes, including recruitment and performance Our aspirations management. 1. A workforce that reflects the diverse clien s an marke s we aspire o serve • Continued with our Global Diversity Speaker aro n he worl Series focused on current diversity and inclusion topics that foster dialogue on 2. eliver sharehol er val e hro gh important topics with our leaders and in s ry lea ing siness ini ia ives employees. y a iverse an engage ecosys em of employees, a visors an s ppliers 3. To be a leading firm in the financial services in s ry as meas re y e ernal recogni ion, engagemen an e ernal represen a ion enchmarks
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Ameriprise continues to evolve its human capital disclosures. Since 2017, we have disclosed the percent of women at the firm. In this report, we have expanded our disclosure to include race and ethnicity, as well as more information about our advisors and CEO management direct reports.
Ameriprise Financial, Inc. employee, advisor and board demographic representation
Women People of color
Board of Directors 22% 11%
Executive Leadership Team 20% 7%
CEO Senior Management Direct Reports 31% 8%
U.S. Global U.S.
Senior Management 28% 26% 10%
Total Advisors 20% – 9%
Total Employees 42% 40% 18%
White Black or Hispanic or Asian All Other African American Latino
Total Employees 82% 5% 3% 8% 2%
Data as of Dec. 31, 2020. People of color, U.S. only, includes people who identify as racially and ethnically diverse based on U.S. EEOC classifications: Hispanic or Latino, Black or African American, Native Hawaiian or Pacific Islander, Asian, Native American or Alaska Native and Two or More Races. All other includes Native Hawaiian or Pacific Islander, Native American or Alaska Native and Two or More Races. Senior Management includes Ameriprise officers and senior investment leaders. Total advisors include employee advisors and advisors from the Ameriprise Independent Advisor group. Total employees include employee advisors and excludes advisors from the Ameriprise Independent Advisor Group.
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Ameriprise Business Resource Networks
Black Employee Network Muslim Employees Connecting and Veteran's Employee Network Black Employee Network (BEN) is a Contributing to Ameriprise Veteran's Employee Network (VETNET) forum for employees to enhance their Muslim Employees Connecting and provides a forum for employees to personal and professional growth Contributing to Ameriprise (MECCA) increase understanding of veterans, BEN from an African American perspective MECCA provides a forum for employees to VETNET active duty, National Guard and military and maximize their contributions to develop personally and professionally reservists, while enhancing professional Ameriprise Financial and the community. and promotes engagement with the skills and maximizing contributions to wider American Muslim community. Ameriprise and the community. Jewish Interest Network Through a variety of programs and Gay, Lesbian, Bisexual, Transgender, Women's Interest Network events, CHAI provides a forum for Questioning Network Women's Interest Network (WIN) employees to experience Jewish The PRIDE Network fosters a work Ameriprise is committed to promoting tradition and practices and promotes environment that is inclusive and professional development by involvement within the wider PRIDE supportive of gay, lesbian, bisexual, WIN providing mentorship and leadership Jewish community. transgender and questioning employees opportunities, and providing insight on so they may all perform freely to their women's perspectives. Asian-American Employee Network fullest potential. EastWest Exchange (EWEx) is the Asian- Young Professionals Network American Employee Network, which Christian Employee Network Young Professionals Network (YPN) champions the importance of diversity SALT serves as a network and resource provides leadership development and in the workplace by focusing on issues group for the Christian employee networking opportunities for emerging of interest to the Asian and Asian- community at Ameriprise Financial YPN leaders within the company. American community at Ameriprise. SALT and strives to make a positive impact on the workplace. Family & Life Stages The Family & Life Stages Network South Asian Network of Ameriprise offers support and resources to help The South Asian Network of Ameriprise • Open to all employees, our networks employees from hire to retire and (SANA) was created by and for engage over 9,000 participants FLS across life's transitions — from raising people and cultures originating from each year children to providing care for our family SANA Bangladesh, Bhutan, India, Maldives, and friends. Nepal, Pakistan and Sri Lanka. • Members focus their actions around four core areas: leadership Hispanics, Latinos & Amigos Network Abilities Network engagement and development, Hispanics, Latinos & Amigos Network The Abilities Network, STRIVE, seeks (HOLA) is organized to provide a forum to foster innovation and demonstrate Ameriprise business support, at Ameriprise Financial for engagement business value through education, community involvement and cultural with Hispanic and Latino culture. STRIVE advocacy, branding and engagement, awareness positioning Ameriprise Financial as a company of choice for people of • Networks provide employees with all abilities. additional resources to support a healthy work-life balance and to develop professionally
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We are committed to inclusion in every part of Code of Conduct: Equal Employment Opportunity; pay gap report on columbiathreadneedle. the employee experience so that all Ameriprise Individual Treatment; Affirmative Action; and Anti- co.uk. The gender pay gap data reflects that employees and advisors feel like they belong, can Discrimination. More on our company values and women hold fewer senior positions at Columbia employment practices is available on ameriprise. Threadneedle in the UK, including in higher- grow and develop in their careers. This includes: com/careers. paying specialist areas such as investments • Investing in training to increase awareness and front-line sales. Gender pay gap is not the of the interviewer’s role in shaping a strong same as equal pay (which has been a legal candidate experience, including training on Supporting supplier diversity requirement in the UK since 1970). Ameriprise unconscious bias in the recruitment process. Our supplier diversity initiatives encourage all conducts an annual compensation equity analysis • Maintaining our focus on recruiting diverse suppliers, including minority, women, LGBTQ+, for all employees, including a specific review of talent that includes targeted outreach to veteran and disabled businesses, to participate compensation by gender and race. Our goal is engage diverse applicants and focus on diverse in our program. to deliver compensation programs that are fairly candidate slates. administered when considering performance and Including diverse suppliers in our sourcing experience to ensure that all employees receive • Participating in recruiting events with process allows us to develop the most innovative, equivalent pay for equivalent work. organizations that reach women, people of highest quality and cost-effective business color, veterans and people with disabilities to solutions, while strengthening local economies. As part of our commitment to fostering a diverse workforce, Columbia Threadneedle ensure diverse candidate slates. In addition to sourcing suppliers directly, we sponsors and supports multiple industry • Launching a new “returner” program with a participate in industry events, which helps us initiatives. This includes Investment 20/20, which focus on recruiting women who have temporarily locate diverse suppliers, benchmark with industry offers hundreds of young people from diverse taken a break in their career and are returning peers and evolve our program in alignment with backgrounds a first job in London. Since 2013, to the workforce. industry best practices. we have welcomed more than 30 people to the • Investing in leadership development training Through the combination of our direct efforts, firm through this initiative. We are also proud to by ensuring employees have individual participation in industry initiatives and improved sponsor The Diversity Project in both the UK and development plans, including targeted learning visibility of our Tier 2 supplier diversity results, North America, an industry initiative to achieve opportunities, as well as mentoring and peer we have increased our Tier 1 and Tier 2 supplier a truly diverse and inclusive investment and learning groups. diversity spend since 2017. We also increased savings industry. And we began participating the number of supplier diversity projects identified in the 100blackinterns program, offering two • Expanding our focus on diversity within our for participation in sourcing bids by establishing front office internships in 2021. In addition, five advisor force, including participating in the a systematic RFP process. We welcome suppliers senior executives from Columbia Threadneedle, Conference of African American Financial to register through the supplier diversity portal on including our CEO, joined other industry leaders to Advisors and sponsoring the CFP Board's ameriprise.com. participate in LGBT Great's flagship Project 1000 Diversity Summit and Career Fair. campaign — a five-year effort to spotlight 1000 Importantly, our strategy establishes clear Columbia Threadneedle LGBT+ and supportive allies working in, or with, the buyside. priorities and policies to build upon our inclusive Ameriprise is a global firm, and Columbia culture. We are committed to a work environment Threadneedle Investments (Columbia free from discrimination and maintain the Threadneedle), the global asset management following policies that are included in our Global group of Ameriprise, publishes its EMEA gender
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Recognized for our people and our values
FTSE4Good Bloomberg Gender Equality Index Disability Equality Index In 2020, Ameriprise was added to a Ameriprise was honored to be included in the Ameriprise Financial was named a third FTSE4Good index, demonstrating Bloomberg Gender Equality Index for the second “Best Place to Work” on the strong Environmental, Social and consecutive year in recognition of the ongoing Disability Equality Index®. Governance (ESG) practices. work and commitment to our employees, advisors and leaders to advancing women in the workplace.
Beyond the Yellow Ribbon Military Friendly Employer DivHERsity Awards In 2020, Ameriprise received the Yellow For the seventh consecutive year, Ameriprise Ameriprise India was recognized as Ribbon by the State of Minnesota, which was named a Military Friendly® employer, a Top 20 DivHERsity Champion by recognizes a commitment to support exceeding the benchmark standards for JobsForHer for advancing a gender- active service members and military serving the military and veteran community balanced workplace in India. veterans in our community. throughout every stage of employment.
See appendix for source and disclosure information. 14 VALUES-DRIVEN FIRM | RESPONSIBLE INVESTOR | GOVERNANCE | ENVIRONMENTAL STEWARD | COMMUNITY IMPACT
Delivering for all our stakeholders during the pandemic
Throughout the pandemic, our priority has been serving clients and maintaining the health and safety of the Ameriprise team. We have benefitted from our business continuity planning, maintained strong client and advisor engagement and delivered solid business results with little disruption.
Business Continuity Engagement • In March, quickly and successfully transitioned • Client Satisfaction – In 2020, 96% of clients " My business was running the day I started approximately 95% of employees, advisors and surveyed said they were “highly satisfied,” working from home with no interruptions, field staff to work from home and the company provides the advice that including the support from Home Office. addresses their needs. 92% said they were It didn't even feel like everyone was • Provided 24/7 technology support “likely to recommend the Ameriprise advice working from home. I am proud to work • Met all regulatory requirements and vendor experience to friends and family” at Ameriprise and I let my family and partner obligations as part of our preparedness • Employee Engagement Survey – 93% plan friends know." participation in annual employee AMERIPRISE ADVISOR — • Columbia Threadneedle stewardship — engagement survey with all scores above 2020 ENGAGEMENT SURVEY engaged with companies to understand risk industry benchmarks; 91%-95% of employees and opportunities with workforce continuity responded favorably to our response to and safety, emergency succession planning, COVID-19 capital allocation and capital raising • Provided life safety supply packages for employees in offices, which included PPE, cleaning products, hand sanitizer, etc. Service/Technology • Offered free cafeteria services and free parking • Service & Operations teams working remotely for the limited number of employees who received all-time high advisor satisfaction worked from our Minneapolis office at 97% • For commuters in the Minneapolis MetroPass • Invested to accelerate Digital Roadmap, which program, the company refunded payroll drove all-time high use of eSignature and ~3M deductions taken during relevant months; increase in weekly mobile check deposits Minneapolis, Boston and Providence employees • Strong uptake in digital capabilities; received parking program refunds ameriprise.com visits up 50% and Ameriprise app usage up 70% compared to a year ago
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• Made cash advance program available to Financial Strength and Soundness advisors experiencing financial hardship " I am amazed by our ability to continue • Maintained strong balance sheet fundamentals to work flexibly from home during the • When Paycheck Protection Program launched with excellent risk management (applicable to franchise advisors), provided pandemic. Ameriprise has exceeded all of • Increased liquidity to $9 billion in March access to preferred lenders, expedite processing my expectations with how well our systems • One of the few firms with the capital strength work and how quickly we were able to invest for long-term growth, increase its to adapt." Community Vitality dividend and maintain its share repurchase AMERIPRISE EMPLOYEE — • Accelerated our donations schedule, making program 2020 ENGAGEMENT SURVEY $2.6 million available immediately in April • Excellent hedge effectiveness during period of to nonprofits, a change from our traditional high market volatility phased approach Employee/Advisor Support • Initial contributions of $100,000 in COVID-19 • Ensured employees could leave/arrange relief to Feeding America and $25,000 to the flexible schedules to care for ill family, school- Global FoodBanking Network aged children; ensured accommodations • Provided an additional $150,000 to nonprofits were provided to those who tested positive, where we have a large employee presence – including use of sick and paid time off the Minnesota Disaster Recovery Fund, New York Robin Hood Foundation, Boston Resiliency • Shifted all training and development programs Fund, Prime Minister’s Citizen Assistance and to virtual delivery, including helping leaders Relief in Emergency Situations Fund in India manage in a virtual team environment and City Harvest London • Launched extensive employee, advisor and leader online toolkits with detailed information about technology, collaboration/meeting tools, " Ameriprise has put its employees and health and safety resources, return-to-office clients’ safety first. I really appreciate the guides, videos and related materials steps Ameriprise has taken to keep us safe • Implemented a mid-year benefits enrollment and healthy." period to allow employees to change their 2020 AMERIPRISE EMPLOYEE — benefit elections to adjust for any impacts 2020 ENGAGEMENT SURVEY resulting from the pandemic • Implemented new 401(k) plan features to provide participants with greater access to their funds or to defer current loan repayments
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Responsible Investor
Managing our business prudently Benefiting from our diversified business One of our key management principles is A key benefit of our diversified business is the Strong financial foundation intellectual capital and insights we draw from prudent management of the business. We • Never taken a government bailout across our businesses. It is essential to how are proud of our financial strength, steady • Maintained strong RBC of 400%+ through we manage risk across the firm. Whether it’s investment and record of never taking a volatile markets government bailout. the holdings within our asset management business or our successful variable annuity • Excellent free cash flow generation of ~90% of adjusted operating earnings • This strength was also clearly demonstrated hedging program, we view risk and related during the volatility and economic dislocation opportunities at multiple levels: enterprise, • High-quality, diversified investment portfolio in 2020. Ameriprise was one of the few entity, product and suppliers. with very limited credit losses firms with the financial strength and broad • Strong liquidity capabilities to deliver an exceptional • Annually return ~90% of operating earnings client experience with approximately 95% Effectively managing risk to shareholders while maintaining growth of employees working from home while As a diversified financial services company, investments also maintaining growth investments and Ameriprise is subject to risks and uncertainties • Increased our quarterly dividend 15 times returning capital to shareholders at a that reflect an evolving market, business since becoming a public company in 2005 differentiated rate. and regulatory environment. We believe a • Strong ratings: • During the financial crisis of 2008-2009, robust enterprise risk management program As of Dec. 31, 2020 S&P Moody’s AM Best these principles ensured we could decline is critical to preserving and creating Ameriprise Financial A- A3 a- credit rating the U.S. government’s assistance. We sustainable, long-term shareholder value and RiverSource Life Insurance A+ Aa3 A+ also helped thousands of clients who were delivering for all our stakeholders, including financial strength rating impacted by the closure of the Reserve Fund shareholders, clients and employees. We Ratings shown are the same for both RiverSource Life (a large money market fund) — advancing devoted significant resources to develop our Insurance Company and RiverSource Life Insurance Co. clients more than $700 million to meet their policies, procedures and controls to identify, of New York. They each receive separate ratings from the independent rating agencies. Issuer ratings are liquidity needs and stepping in to preserve monitor and manage risk. S&P/Moody’s/AM Best respectively. A security rating assets for all investors. is not a recommendation to buy, sell or hold securities Our program encompasses enterprise and should be evaluated independently of any other and operational risk components, and our rating. The rating is subject to revision or withdrawal at corporate values foster a culture of compliance any time by the assigning rating organization. and risk awareness. For the most current ratings, go to ir.ameriprise.com
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Risk management is incorporated into the Investing in low-income housing initiatives While assets in RI/ESG strategies remain a day-to-day operations and decision-making As part of our large, diversified investment small part of our client AUM, our advisors are of the company. Our program reflects specific portfolio, Ameriprise Financial maintains increasingly interested in the opportunities and tolerances and regulatory requirements that we investments in pooled investment vehicles risks related to RI/ESG strategies, recognizing monitor to ensure we meet client and company focusing on investment in low-income housing that the field is evolving from one where the needs. Our objectives include: properties and initiatives. These investments driver has traditionally been alignment between provide certain tax benefits to Ameriprise and our a client's personal values and their investments, • Minimizing or avoiding impacts from capital/ shareholders, while supporting the development to one that combines an expectation of improved liquidity, market, investment, operational and and maintenance of affordable housing. performance related to sustainability factors reputational issues Historically, the investments have delivered and alignment with one’s values. As ESG • Proactively meeting capital, liquidity, earnings adequate returns with low default levels. At year- investment trends evolve, we expect clients will and operational requirements for each line of end 2020, the portfolio held more than $230 be interested in allocating a higher percentage business and the enterprise million of low income housing investments. of their investments to RI/ESG strategies and solutions, and therefore our advisors will also • Effectively identifying and minimizing company be increasingly interested in solving their clients’ exposures within a reasonable timeframe A broad ESG product portfolio within our needs by incorporating RI strategies. • Continually improving our risk management wealth management capability capability and infrastructure within decision In addition to the Responsible Investment processes and reporting (RI) capability within Columbia Threadneedle, Our senior management is responsible for Ameriprise offers clients and advisors a range identifying and managing our exposure to risk. of RI/Thematic Environmental, Social and In addition, the Ameriprise Financial Board of Governance (ESG) products and solutions from Directors (Board) plays an important oversight third-party asset managers within mutual fund, role, with the Audit Committee in particular. ETF and separate account investment vehicles. See the Governance section of this report for We also provide Ameriprise advisors with our related information. perspective on ESG trends through the Ameriprise Investment Research Group. Generating, allocating and preserving capital Our diversified business generates substantial free cash flow that we invest in the business (organic and through acquisitions) and return to shareholders. As we grow, our less capital-intensive, more fee-based businesses are becoming a larger percentage of our total business.
1818 VALUES-DRIVEN FIRM | RESPONSIBLE INVESTOR | GOVERNANCE | ENVIRONMENTAL STEWARD | COMMUNITY IMPACT
factories, equipment and real estate, as well as thematic research, tools and review profiles. In in the capabilities required for a knowledge-based fact, in 2019 Columbia Threadneedle added economy — is needed to expand the productive to its extensive fundamental research effort capacity of a modern economy. by launching an innovative, proprietary RI ratings tool that combines an assessment of Striving to be responsible stewards of our Identifying and benefiting from the value a company’s financial stewardship with a view clients’ assets within a framework of good generated by well run companies on how well it manages ESG risks as identified by the Sustainability Accounting Standards governance and transparency The rationale for long-term responsible Board (SASB). By combining both aspects into Ameriprise, through Columbia Threadneedle, investment is clear — stronger economies and a single, forward-looking score, the tool reflects manages the assets of individual investors and well-run or improving businesses that look to the Columbia Threadneedle’s conviction that prudent some of the world’s most prominent institutional future should deliver stronger, more sustainable management of financial and ESG factors are clients, governments, corporations, endowments investment returns. We believe responsible important to a company’s ability to create long- and foundations. investment may help to generate better informed term, sustainable value. Read our SASB case investment decisions and outcomes for clients. Being a responsible investor is integral to study for more information. Columbia Threadneedle’s investment approach our business proposition, as we believe Alongside traditional financial analysis, that well-governed companies are better is underpinned by its research intensity and Columbia Threadneedle serves as a steward positioned to adapt and manage the risks and belief that sharing insights across asset classes of client assets by analyzing and engaging challenges inherent in business and to capture and geographies generates a richer perspective with companies. Targeted engagement with opportunities that foster sustainability and long- on global, regional and local investment portfolio companies on ESG issues forms an term value creation. landscapes. important part of our stewardship activities and our investment approach. Depending on the As an active manager of global equities, fixed Consistent with this core belief, RI research and circumstances and consistent with applicable income, alternatives, infrastructure and real data are integrated and embedded into our global law and our fiduciary duties, we may also engage estate assets, Columbia Threadneedle seeks research capability facilitating the integration of with other shareholders or collaborative networks opportunities that help deliver sustainable material ESG factors into our research processes. to discuss and address considerations for a growth and returns for our clients. Asset We call this process Research Intensity, as it company in which we invest. management plays an important role in the facilitates a collaborative, insight-driven approach to research. Our stewardship commitment is integral to economy by helping to transfer today’s savings our active management approach and aims into investment for tomorrow that will enhance Our ESG research, including consideration to enhance the quality of engagement with productivity, support opportunity and enable of companies' compliance with global norms companies to help improve long-term returns to future growth. such as the United Nations Global Compact, assessments of climate and transition risk, investors and the efficient exercise of governance To improve productivity and capture growth and review of the companies' contribution to responsibilities, including voting client proxies. opportunities, businesses (and investors) proprietary thematic outcomes, is integrated We believe corporate boards should have need to invest for the long term. Long-term by portfolio managers, at the security and appropriate independent membership and investment — in companies and in assets such the portfolio level, using a combination of as infrastructure, research and development, an effective balance and diversity (re: skills,
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knowledge, experience, gender, approach and Columbia Threadneedle Responsible The following links provide additional information: perspectives) that complements the strategy, Investment policies and practices Responsible Investment policies: U.S. EMEA operations and footprint of the business and Our RI policies are the foundation for our Proxy voting: U.S. EMEA helps drive long-term, sustainable success. approach to responsible investment and Stewardship Principles: U.S. EMEA One of our stewardship priorities is enhancing the stewardship activities. diversity of thought on corporate boards, with an emphasis on appropriate levels of gender, racial and ethnic diversity. In support of that focus, we are engaging with companies and exercising voting rights where diversity was observed to be low. We would note that Threadneedle Asset Management Limited was an initial signatory to the United Nations-backed Principles for • $32+ billion in Responsible Investment AUM — total AUM $547 billion Responsible Investment in 2006, and Columbia Management Investment Advisers, LLC became • 16-person RI specialist team in London and Minneapolis a signatory in 2014. All PRI signatories are • Created the Low Carbon Workplace Trust in 2010 — a pioneering fund in the UK required to report on their investment activities annually. Each affiliate has filed a separate Public • First company to launch a daily liquid socially responsible bond fund for retail investors Transparency Report. The 2020 reports are in the UK — Threadneedle UK Social Bond Fund available through the PRI website, linked below. • Recent launches: • Threadneedle Asset Management Limited - 2020: Launched the Threadneedle (Lux) Emerging Market ESG Equities Fund and the • Columbia Management Investment Advisers, LLC Threadneedle (Lux) Pan European ESG Equities Fund Columbia Threadneedle also offers specialist - 2019: Responsible Investment Ratings RI solutions via pooled vehicles and client-specific - 2017: Threadneedle (Lux) European Social Bond Fund segregated mandates. These solutions aim to empower clients to put their capital to fund - 2016: Three Columbia sustainable equity income ETFs development and deliver innovative solutions. - 2015: Columbia U.S. Social Bond Fund; Threadneedle Ethical UK Equity Fund
AUM as of Dec. 31, 2020
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Recognition of our work We have received a variety of awards for our work, and our people are proud of the recognition for the innovative solutions we bring to clients. This includes our U.S., UK and European Social Bond strategies, which target capital to organizations and projects that help Responsible Investment Recognition address social needs. Their focus on areas such as healthcare, education, housing, employment IMPower Wisdom of the Selectors Fund Award — and access to services, and the infrastructure European ESG Bonds Award — 2020 to support them, enables us to embrace the Threadneedle European Social Bond Fund principle of doing well by doing good. It also reflects our belief, and that of a growing number Financial News — of our clients, in aligning investment choices with Asset Management Awards Europe 2018 the aims of the U.N. Sustainable Development Goals (SDGs) agreed upon by world leaders Our EMEA CIO and deputy global CIO was named Investment Leader of the Year in 2015. Our Head of Responsible Investment and Solutions was named Rising Star of Asset Management
Mutual Fund Awards 2016 Nominee for Fund Innovation of the year — Columbia U.S. Social Bond Fund
Investment Week Sustainable Investment Awards 2016 Best New Entrant (Threadneedle Ethical UK Equity Fund)
European Pensions Investment Awards 2015 European Pensions Innovation Awards (Threadneedle UK Social Bond Fund)
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Governance
Protecting clients and meeting evolving Our Global Code of Conduct requires all regulatory expectations We view all employees as advisors and employees to strictly adhere to our Our enterprise compliance and risk risk managers regardless values and ethical principles, applicable laws, management programs serve to ensure of their role regulations and our policies and procedures — compliance with applicable laws and an important step as our business has become increasingly global. We’ve also focused on regulations, and to identify, measure, manage All employees, contractors and financial enhancing the governance of our domestic and and monitor risk. Regulatory developments in the advisors are required to complete foreign subsidiaries, using common principles U.S., Europe and other countries have resulted in mandatory compliance training annually that are complementary to the applicable greater oversight and compliance obligations for and attest to their fulfillment of regulatory laws and regulations. And we’ve embedded the financial services industry, and we continually and company-wide requirements. risk management processes in our day-to-day assess our programs to meet evolving regulations Mandatory compliance education and operations. and mitigate risks. training covers topics, including: Management regularly updates the Board on We have a strong tone at the top and a culture • Global Code of Conduct and Code the regulatory environment, the strength of our of compliance. We closely review and monitor of Ethics compliance program and emerging risks. The legislative and regulatory changes for future • Anti-Money Laundering, Anti-Fraud Board discusses with management, the general impact to our clients, business, shareholders and Anti-Bribery auditor and independent auditors the company’s and governance. We also have a strong Risk and • Privacy and Information Security enterprise-wide risk assessment and risk Control Services internal audit function, which management processes, including: reinforces our compliance and risk management • Internal Fraud Awareness and • Prevailing material risks and exposures, capabilities and serves as a “third line of Reporting including cybersecurity and data protection defense.” We continue to invest in technology • Workplace Health & Safety that strengthens our oversight. • Actions being taken to mitigate these risks • Life Safety and Business Continuity • The design and effectiveness of our processes Management and controls in light of evolving market, business, regulatory and other conditions
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Operating with effective Board oversight management and overall learnings to support our The Board operates within a corporate business strategy and emerge stronger after the pandemic ends. Tenure of Directors governance framework of independent oversight 0-4 years and integrity outlined in our bylaws, Corporate With regard to our executive compensation, 5-9 years Governance Principles, Categorical Standards our program, which the Board’s independent 10+ years of Director Independence and Code of Business Compensation and Benefits Committee oversees, Conduct for Board of Directors. is informed by evolving regulatory trends as well as market best practices, the advice of its As part of its governance responsibilities, the independent consultant and feedback gained Board actively monitors the performance of our through interaction with shareholders. leaders, the management of risk, effectiveness of policies and controls and execution of our As part of our ongoing shareholder engagement, business strategies. This includes the Nominating in 2018 the Board approved bylaw amendments and Governance Committee overseeing our providing proxy access on terms generally Corporate Social Responsibility efforts. consistent with market practices. 8 of 9 This corporate governance structure promotes In 2019, the Board’s Compensation and Benefits directors are independent Committee approved an expanded clawback sound decision-making and encourages policy that covers more executives and gives transparency and management accountability, 2 of 9 the Committee the authority to recoup incentive directors are women including maintaining a culture of integrity compensation if the executive is found to have and respect. The Board and its committees hold engaged in an intentional and material violation 1 of 9 regular executive sessions with management, of law that has resulted in significant reputational our independent auditors and our general auditor. harm or financial loss to the company. The directors are ethnically The independent directors also meet regularly in provision was effective for incentive awards made or racially diverse executive session. on or after January 1, 2020. In addition to the established meeting cadence in 2020, management and the board devoted The role of the Board’s presiding director is also an important part of the Board’s leadership significant time to discussing the company's In 2020, the company successfully conducted structure. The presiding director leads executive approach to successfully managing the its first fully virtual shareholder meeting, sessions of independent directors and serves COVID-19 pandemic. In addition to two special ensuring the health and safety of all board meetings and in-depth presentations by as principal liaison between the Board and the participants. senior officers, management provided regular chairman and CEO on certain issues. written updates to the board on developments Our chairman and CEO and the Board’s presiding related to the pandemic. The topics included director work closely together on the Board’s management's actions to promote employee and Our Board is led by our chairman and CEO. The annual performance evaluation, director advisor health and safety, business continuity Board believes that this leadership structure best succession and recruitment, and other important and risk management, as well as human capital serves its needs and those of our shareholders. corporate governance matters.
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The Board believes that maintaining and with our independent registered accounting enhancing diversity are important corporate firm that are designed within and aligned with governance goals. Currently, eight of nine Online security guarantee federal cybersecurity compliance frameworks. directors are independent, two are women and At Ameriprise Financial, we're committed to An Ameriprise representative will not call and ask one identifies as ethnically or racially diverse. protecting clients' online security. Our efforts are backed by our Online Security Guarantee, for personal information on an unsolicited basis, Additional information may be found on which covers 100% of the value of losses in and we do not request personal information via ir.ameriprise.com and in our annual proxy client Ameriprise® account(s) due to unauthorized email. As mentioned earlier, our compliance statement. online activity, if we conclude that losses were program provides all employees, advisors and incurred through no fault of the client. the Board with extensive training on our security policies and “red flags.” Maintaining our clients’ privacy and While we and other financial services firms are data security We disclose how Ameriprise collects, uses, not immune to online threats, to date we have Our privacy protection activities are unified shares and protects personal information and not experienced any material breaches of or how to report privacy incidents in our online under a single, globally applicable policy and interference with our centrally controlled systems program overseen by our Chief Global Privacy Privacy, Security and Fraud Center. Guidance on how to limit the sharing of personal information and networks. We regularly audit and enhance Officer. That global policy accounts for country is available in our Privacy Notice. our corporate security capabilities across the and regional differences in the obligations firm and assess our ability to identify, protect imposed by law or regulation, including the As part of our efforts to safeguard clients’ privacy, against, detect, respond to and recover from EU’s General Data Protection Regulation. We our systems and processes include: also implemented an enhanced privacy risk cyber threats. We also maintain policies and • Multi-layer authentication assessment tool and process that allows us to procedures in response to applicable legal report on the state of our privacy program at • Limiting systems and information access requirements concerning the use and protection of personal information by various regulators points in time. On a periodic basis, these reports • Secure technology to encrypt information sent and related discussions are available to board throughout the U.S., the European Union and between a client’s computer or mobile device other global regions in which we operate. members and the leaders of the various business and Ameriprise Financial units being assessed. To that end, we regularly refresh our cybersecurity • Ongoing surveillance and fraud monitoring We continually work to safeguard clients’ privacy response playbook to ensure that leaders charged with public company reporting and and the data entrusted to us in accordance with • Encouraging the use of secure email through our systems protecting against inappropriate trading by applicable laws and our internal data protection insiders are promptly made aware in the event we policies. This includes taking steps to reduce • Ongoing and comprehensive training have a credible belief that a cybersecurity event is the potential for identity theft or other improper occurring or has occurred. use or disclosure of personal information, while • Annual and ongoing audits and tests of our seeking to collect only the data that is necessary systems, controls and policies, including at the See additional information on our 2020 Form 10-K to best serve clients and achieve our business enterprise and subsidiary levels. These include and on ameriprise.com. objectives. verifications completed by third-parties and through our internal function in collaboration
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Environmental Steward
Using our resources responsibly Building certification. The Financial Center Ameriprise is committed to responsible received LEED Silver Certification and our Client In 2020, Lloyd's Register Quality Service Center received LEED Gold Certification. environmental practices. As a financial services Assurance verified our 2019 firm, we generate low levels of greenhouse gas We partner with our local utilities in Minneapolis emissions data using ISO 14064 - (GHG) emissions relative to other industries. and participate in load shedding to help Part 3. The main contributor to those emissions is reduce overall demand. We also reduce energy our corporate real estate. With the real estate consumption by installing automatic light sensors, Ameriprise controls, we are focused on operating reducing heating and cooling and upgrading to our buildings efficiently and reducing waste. lower wattage light bulbs. And we participate in Xcel Energy’s Commercial Efficiency Program to Highlights We calculate our annual emissions using the evaluate and implement energy efficiency projects. Energy Information Administration 1605B • Ameriprise Financial Center — methodology and submit data to the CDP Climate In addition, we purchased 22 million kWh of Minneapolis Change questionnaire. And in 2020, Lloyd's Minnesota-sourced renewable energy credits – Certified LEED Silver in 2017 Register Quality Assurance provided third-party (RECs) to offset the 2020 energy consumption of – 2018 ENERGY STAR Certified (81) our 1.8 million square foot Minneapolis campus. assurance of the 2019 emissions data we provide • Ameriprise Client Service Center — to the CDP as part of its climate survey. Minneapolis Supporting public transportation For information about our Scope 1 and Scope – Certified LEED Gold in 2009 2 emissions, please review our 2020 CDP We are a long-term supporter of public – 2018 ENERGY STAR Certified (86) submission. transportation for employees across our • Tenant at One World Trade Center — locations. We encourage employees to use public New York City transportation and subsidize the cost through Managing energy-efficient buildings – Certified LEED Gold in 2019 our Commuter Choice Program. In collaboration Our corporate-controlled real estate, the with Minneapolis Metro Transit, we subsidize the • Tenant at the award-winning Cannon Ameriprise Financial Center and the Ameriprise Metropass® program — encouraging employees Place — London Client Service Center, are ENERGY STAR certified. to use public transportation and reduce commuter – BREEAM Recognized The Ameriprise Financial Center was the first traffic. Prior to the COVID-19 pandemic, 59% of • In 2021, Columbia Threadneedle will building in Minneapolis to receive the U.S. our Minneapolis-based employees enrolled in this pre-tax benefit as an alternative to driving. begin to move its Boston Headquarters Green Building Council’s Leadership in Energy We also offer free carpooling, EV chargers and to Atlantic Wharf, a LEED Platinum and Environmental Design (LEED) — Existing scooter and bicycle parking in Minneapolis. certified building
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We reimbursed employees for the cost of these Managing climate issues Overall, we approach climate issues as a wealth programs during the pandemic and expect these As a responsible environmental steward, we manager, global asset manager and insurer. benefits will continue to be in high demand as we manage the related risks and opportunities of • Within wealth management, we continue to evolve to a more hybrid work experience over the develop our ESG capabilities and offer a broad coming years. climate change across our physical footprint and within our industry and global economy. range of products and services to our advisors and clients as they consider the impact of Encouraging recycling and electronic climate change on their investments. delivery • Columbia Threadneedle is an RI leader, and our Ameriprise is a Since 2008, more than a million clients have extensive fundamental research reflects our switched to electronic delivery, saving both low GHG emitter belief that prudent management of financial millions of pounds of paper and the added and ESG factors are important to a company’s ability to create long-term, sustainable value. cost of printing and mailing statements and Our Minneapolis buildings are confirmations. In addition, Ameriprise was among ENERGY STAR certified • In 2019, we sold our U.S. property/casualty the first public companies in the U.S. to allow our business, which is in an industry that’s directly shareholders to access proxy materials online impacted by extreme weather events. The sale instead of receiving paper materials. This initiative We are focused on focused our risk management capabilities reduced the number of printed proxies from operating buildings related to climate change to our core businesses. 250,000 in 2007 to fewer than 14,000 in 2020. efficiently and reducing waste Our environmental stewardship reflects our ability to effectively measure, track and monitor our operational efficiency and GHG emissions. Our enterprise risk management process includes Since 2016, we have submitted environmental 1.1 million+ assessing, protecting against and mitigating the data to CDP for our primary U.S. corporate client groups are registered physical risks of catastrophic weather events locations where we maintain operational control. for e-delivery affecting the company, our clients and our policyholders. And we are cognizant of the long- For more information, see the risk management term, transitional challenges and opportunities discussion in the Governance and Responsible that reflect evolving consumer preferences and Investor sections of this report or visit CD P.net. We work to reduce and eliminate waste by regulatory regimes. recycling printer toner, using environmentally friendly cleaning products and incorporating In 2020, Ameriprise began considering sustainable and local sourcing efforts with climate as a long-term strategic risk within our food service vendors, as well as our Enterprise Risk Management process. This other initiatives. work is beginning and will evolve over time.
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Community Impact
Continuing our legacy of contributing to communities
COVID-19 response benefiting Feeding America and other food banks Since our inception as public company In a time of critical need, Ameriprise accelerated across the country. Our India-based employees 15 years ago, Ameriprise and our people its corporate donation schedule, making $2.6 also conducted an online food drive benefiting a have demonstrated how we value million available in early April 2020. The company senior home. We encouraged our employees and commitment to community. provided general operating grants during a time advisors to complete random acts of kindness of increased economic pressure on nonprofit and included these efforts as volunteerism. organizations. Being part of the solution 2,719 Ameriprise also made an additional $275,000 in grants grants divided among the following organizations Ameriprise responded to the tragic death of supporting our long-standing commitment to George Floyd and civil unrest in Minneapolis by hunger relief and helping our major employee donating $150,000 divided equally among three center communities: Twin Cities efforts: $48 million grant dollars donated • Feeding America • Northside Achievement Zone, which aims to • The Global FoodBanking Network address multi-generational poverty • The Minnesota Disaster Recovery Fund • The Minneapolis Foundation Fund for Safe • The Robin Hood Foundation (New York) Communities, supporting justice and equity $111 million • Boston Resiliency Fund AMP gift match, employee and • Twin Cities Rebuild for the Future Fund, working advisor donations • Prime Minister's Citizen Assistance and Relief to rebuild small businesses in corridors directly In Emergency Situations Fund (India) impacted by the unrest • City Harvest (London) Ameriprise remains committed to helping build million In addition, our volunteering went virtual, ensuring 110+ strong, vibrant communities for all people. the safety of our people. We continued our meals provided since partnering with Feeding America beginning in 2010 National Days of Service focused on hunger relief and for the first time included virtual food drives
See page 16 for actions we took in 2020 to $159 million support employees during the pandemic. 15-year total
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In 2020, Ameriprise continued its support as a founding partner of The Angel Foundation’s Financial Cancer Care program. Despite COVID-19, 18 Ameriprise CFP advisors began providing pro-bono financial planning support to Angel Foundation clients in the Twin Cities area helping patients and their families avoid the “financial toxicity” that all too often accompanies prolonged illnesses.
Strategic giving At Ameriprise, our strategic grant making goes well beyond financial donations. Many advisors and employees serve on nonprofit boards, volunteer and share their skills.
Ameriprise awarded 238 grants in 28 states and Washington, D.C., impacting 77 communities across the country. U.S. Since 2009, Ameriprise employees, advisors and clients have provided more than 100 million meals and nearly 205,000 volunteer hours through its National Days of Service to support Feeding America and other hunger-relief organizations nationwide. In addition, last fall Ameriprise again matched public donations (up to $250,000) to Feeding America.
Columbia Threadneedle Foundation is committed to investing in the community through partnerships that create positive UK and social impact, focusing on charities that use education, art and sport to engender lasting social change. During 2020, recognizing the impacts of COVID-19, the Foundation committed to a range of practical steps to help our partner charities Europe manage through the period, including adapting activities, being flexible in terms of timing and application of funds and helping charities innovate to support their communities and work through the challenges they are facing.
Our business in India supports seven local NGOs to meet the basic needs of children and older adults, and provide educational India opportunities to underserved youth. Since 2016, Ameriprise Gurugram/Noida has been partnering with Udayan Care on academic excellence and personality development program, Udayan Shalini Fellowships (USF), for deserving and talented female students from economically weak background. Ameriprise employees' coach and mentor the students on career and personality development aspects.
Preparing for disasters As a company focused on comprehensive financial planning, we strongly believe in helping clients prepare for the unexpected. Each year, Ameriprise actively supports the American Red Cross® Disaster Relief and International Services so they can immediately help when tragedy strikes — down the street, across the country or around the world. In addition, Ameriprise supports SBP, a leader in disaster resilience and recovery. SBP works to shrink the time between disaster and recovery through preparation, risk mitigation and other initiatives.
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Supporting employees’ and advisors’ Ameriprise Bank, FSB community interests In 2019, we converted our national trust bank "I feel proud to be part of a Ameriprise and Columbia Threadneedle to a federal savings bank, allowing us to further culture that highly encourages Investments provide individual and team volunteer expand our product suite available to clients and opportunities and support the interests of their advisors. Ameriprise Bank, FSB represents a and supports volunteerism and employees and advisors through international long-term growth opportunity for the firm as part community involvement." gift matching. of our Wealth Management business, and 2020 AMERIPRISE EMPLOYEE RESPONSE marked the first full year of operations. ANNUAL SURVEY Volunteerism In compliance with the Community Reinvestment Act (CRA), Ameriprise Bank, FSB completed the One of the Ameriprise company values is respect following activities in Minneapolis-St. Paul, its for individuals and the communities in which we designated CRA assessment area (AA): live and work. Employees receive eight hours of paid time off each year to volunteer in support Lending: We completed a successful pilot of company-sponsored community service. In mortgage loan program with lending partner, addition, each quarter, 50 volunteers with the Embrace Home Loans. most hours recorded receive $250 to donate to Investments: In 2020, Ameriprise Bank made the nonprofit of their choice. Employees in India significant investments to support affordable and the UK are also engaged volunteers and housing, social services and economic and organize several volunteer projects throughout workforce development across the Twin Cities the year. region. As an example, a $4 million investment to the Greater Minnesota Housing Fund will help Gift matching support the development and preservation of 1,000 units of affordable housing over the next Ameriprise advisors and employees generously ten years. donated more than $8.5 million in 2020. And 58% of U.S. employees donated to nonprofits of Service: Although the COVID-19 pandemic hampered volunteer opportunities, Ameriprise their choice around the globe, and Ameriprise Bank employees engaged in over 240 hours of matches their donations throughout the year. volunteer service with area non-profits. One Unique within the financial industry, Ameriprise organization was Twin Cities Habitat for Humanity, also offers a separate gift matching program for where 19 employees provided 133 hours in eligible franchise advisors. volunteer service to help build homes for local low-income families.
2929 Appendix — Ameriprise and our global reach
• Founded in 1894 • A longstanding leader in financial • More than 2 million clients • Headquartered in Minneapolis, Minn. planning and advice • Approximately 10,000 advisors • #245 in FORTUNE 500® • #32 global asset manager (AUM) • 10,000+ employees
Corporate locations* Amsterdam Dubai Hong Kong Las Vegas Madrid Minneapolis Portland Scottsdale Stamford Vienna Boston El Segundo Houston London Menlo Park New York Providence Singapore Swindon Washington, D.C. Chicago Frankfurt India Luxembourg Milan Paris San Antonio Seoul Troy Zurich
* As of Dec. 31, 2020.
See appendix for source and disclosure information. 30 Appendix — Diversified business 2020 Adjusted Operating Results:* Net Revenue: $11.8 billion underpinned by a strong Earnings: $1.8 billion EPS: $14.08 financial foundation Return on Equity (ex. AOCI): 30.2% Key Metrics: Assets under management and administration $ in billions $1,102 $973 $897
Advice & $823 Wealth Asset $787 Management Management 2016 2017 2018 2019 2020 Retirement Retail client assets Adjusted operating net and Protection $ in billions revenue per advisor Solutions $ in thousands $732 $643 $560 $667 $664 $539 $479 $620 $564 Financial Strength & Stability $518
NYSE: AMP | Assets Under Management and Administration*: $1.1 trillion | Market Cap: $22.9 billion 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
AUM/A and Market Cap as of Dec. 31, 2020. * See appendix for reconciliations to GAAP. 31 Appendix — Diversified business with multiple stakeholders
At Ameriprise, we help people feel confident • Our insurance and annuity businesses We believe that all of these elements are about their financial future. Our diversified help meet clients’ retirement income and important to understand Ameriprise, as our business is built on long-term relationships protection needs. collective actions contribute to our reputation and centered on advice. and our ability to help our clients feel confident • Our federal savings bank adds to the about their financial future. • We are a leading wealth manager and a capabilities our clients and advisors can longstanding leader in financial planning deploy to reach their goals. and advice in the U.S. serving more than two million individual, small business and We remain focused on delivering long-term institutional clients. sustainable value to our shareholders while also Stakeholders recognizing the interests of our stakeholders. • We’re a global asset manager investing This longstanding approach is reflected in our • Clients and policyholders on behalf of individuals and some of the endorsement of the Business Roundtable’s • Employees and contractors most sophisticated institutional investors “Statement on the Purpose of a Corporation”. in the world. • Ameriprise financial advisors Given our extensive capabilities, distribution • Investors in Columbia Threadneedle reach and leadership positions, we engage with and RiverSource products multiple stakeholders. These include Ameriprise shareholders, investors, research organizations • Shareholders of Ameriprise and others who are increasingly seeking to better • Portfolio companies of Columbia understand performance factors that underpin Threadneedle long-term business success and sustainability. Many want to work with companies to advance • Regulators and rating agencies causes they consider important, especially those • Suppliers related to ESG topics. • Community organizations, grantees For Ameriprise, priority topics related to and non-governmental organizations sustainability include talent retention, • Other financial institutions and compliance and governance, as well as data businesses privacy and security, as these help demonstrate that our clients’ trust is well-placed and can endure. Initiatives such as managing our energy consumption or helping solve domestic hunger through our years of support for Feeding America are important to other constituents.
32 Appendix
Regulatory oversight Ameriprise Financial is regulated by the following entities: Key elements of our executive Board of Governors for the Federal Reserve System compensation program Ameriprise Financial, Inc. What we do: Broker-dealers registered under the Exchange Act • Adhere to high levels of independence American Enterprise Investment Services, Inc. Columbia Management Investment Distributors, Inc. Ameriprise Financial Services, LLC RiverSource Distributors, Inc. for the Compensation Committee of the Investment Advisers regulated by the SEC Ameriprise Financial Board of Directors Ameriprise Financial Services, LLC Columbia Wanger Asset Management, LLC and its independent consultant Investment Professionals, Inc. Threadneedle International Ltd. (FCA is primary regulator) • Incorporate sound risk management Columbia Management Investment Advisers, LLC Lionstone Partners, LLC Investment Companies registered under the Investment Company Act and risk avoidance in our incentive Ameriprise Certificate Company In addition, we advise numerous '40 Act funds plan design
Entity Regulator • Require executives to hold a significant Commodities, Futures and Options Regulators portion of Ameriprise stock once vested Ameriprise Enterprise Investment Services, Inc. Commodity Futures Trading Commission (CFTC): Options Clearing Corporation • Require a “double trigger” to vest in long- Ameriprise Financial Services, LLC CFTC; National Futures Association (NFA) term awards following a change in control Columbia Management Investment Advisers, LLC CFTC; NFA Threadneedle International Ltd. CFTC; NFA • Regularly review the governance of our Banking and Trust-related entities programs and make revisions to align with Ameriprise Trust Company Minnesota Department of Commerce market best practices Ameriprise Bank, FSB Office of the Comptroller of the Currency Primary State Regulators for Insurance Companies/Agencies What we don’t do: RiverSource Life Insurance Company Minnesota Department of Commerce is domiciliary regulator • No employee contracts RiverSource Life Insurance Co. of New York New York State Department of Financial Services is domiciliary regulator • No gross ups for potential excise taxes Ameriprise Captive Insurance Company State of Vermont Department of Banking, Insurance, Securities and Health Care Administration is domiciliary regulator • No repricing of Ameriprise stock options Entity Regulator Jurisdiction without shareholder approval Primary International Regulators • No hedging against the decline in the Threadneedle International Ltd. Financial Conduct Authority (FCA) United Kingdom Threadneedle Asset Management Ltd. FCA United Kingdom value of Ameriprise stock Threadneedle Investment Services Ltd. FCA United Kingdom • No pledging of stock as security for a loan Threadneedle Pensions Ltd. FCA; Prudential Regulatory Authority United Kingdom Threadneedle Investments Singapore (Pte.) Ltd. Monetary Authority of Singapore Singapore (For more information about our executive Threadneedle Management Luxembourg S.A. Commission de Surveillance du Secteur Financier Luxemburg compensation program, please review our Threadneedle Portfolio Services Hong Kong Limited Securities and Futures Commission Hong Kong 2020 proxy statement.) Columbia Threadneedle Investments (ME) Limited Dubai Financial Services Authority Dubai
In addition to the regulators summarized above, we are also subject to regulation by self-regulatory organizations such as the Financial Industry Regulatory Authority (“FINRA”), as well as various federal and state securities, insurance and financial regulators (such as regulatory agencies and bodies like the U.S. Department of Labor) in the U.S. and foreign jurisdictions where we do business.
33 This Responsible Business Report reflects the views and opinions of Ameriprise Financial, Barron’s Fund Family rankings are based on total return for the 2019 calendar year ending Inc. as of December 31, 2020 and is provided for information only. Nothing in this Report 12/31/19. Columbia Threadneedle ranked 4th among 55 qualifying fund families. Past may be relied upon in making investment or other decisions with respect to Ameriprise performance is not a guarantee of future results. Barron’s Fund Family rankings are Financial, Inc. or the securities of any other company or fund. This Report is not intended calculated without the impact of expenses such as 12b-1 fees, front-end loads or sales to provide legal, financial, or investment advice and you are strongly cautioned not to rely charges, which would reduce returns. Source: Barron’s, 2/15/20. upon it in making any investment or other decisions. This Report is not an invitation to Past performance is not a guarantee of future results. Barron’s Fund Family Rankings are subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial calculated without the impact of expenses such as 12b-1 fees, front-end loads, or sales instruments. As with all investments, there are associated inherent risks. Past performance charges, which would reduce returns. does not guarantee future results. This Report contains “forward-looking” statements that are subject to risks and uncertainties. Actual results may differ from any statement in this Page 14: Report. FTSE4Good: FTSE Russell (the trading name of FTSE International Limited and Frank Russell The information and views contained in this Report are not guaranteed as to accuracy or Company) confirms that Ameriprise Financial has been independently assessed according completeness. The contents of this Report are subject to change at any time without notice. to the FTSE4Good criteria, and satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Page 4: Index Series is designed to measure the performance of companies demonstrating strong Ameriprise Financial Goal-Based Advice Survey. Results from July 2018 through March 2020, Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by reflecting 3,232 client responses. The percentages cited reflect those who agree or strongly a wide variety of market participants to create and assess responsible investment funds and agree with each statement (on a 5-point scale). Clients may complete a survey via the secure other products. site after their goals are published online. Ameriprise Financial, Inc. is included in the 2021 Bloomberg Gender-Equality Index (GEI). Clients can respond to an internal Ameriprise survey and rate an advisor or practice based The Bloomberg GEI is a modified market capitalization-weighted index that aims to track on their overall satisfaction with the team or practice, on a scale of 1 to 5 (1 = extremely the performance of public companies committed to transparency in gender-data reporting. dissatisfied to 5 = extremely satisfied). Client experiences may vary and working with any Visit https://www.bloomberg.com/gei/ for more details. Ameriprise practice is not a guarantee of future financial results. Investors should not Military Friendly Employer (MFE): consider this rating a substitute for their own research and evaluation of a financial practice's qualifications. Not all clients may respond to these questions, and only clients with access to 1. The term Military Friendly® is a registered trademark of Viqtory, Inc., and is used with the Ameriprise Secure Client Site may submit a rating. Ratings reflect an average of all client permission. For more information visit www.militaryfriendly.com or www.viqtory.com. responses received between 3/13/18 and 12/31/2019. 2. The firm is within 30% of the organization ranked 10th in the Top 10 award category for Source: Wants & Pricing Report (April 2020, the most recent report) from the Hearts & similar organizations. Wallets Investor QuantitativeTM Database. In this annual syndicated survey respondents are Page 30: asked to rate their financial services providers in a variety of areas on a scale of 0 (not at all satisfied) to 10 (extremely satisfied). 5,461 respondents provided 8,700 sets of ratings. #32 global asset manager (AUM). Source: P&I/Thinking Ahead Institute World 500 largest The report designates Hearts & Wallets Top Performers in areas where customer ratings for money managers — Sept. 19, 2020 issue, data as of 12/31/19. one or more providers are “distinctively higher than customer ratings of other providers.” Fortune: FORTUNE magazine, May 2020. For each area there may be several Top Performers or none. The analysis does not seek to designate any provider as “first” or rank Top Performers. This rating is not indicative of future Ameriprise Financial Services, LLC. Member FINRA and SIPC. performance and may not be representative of any one client’s experience, as the rating is an Investment advisory products and services are made available through Ameriprise Financial average of a sample of client experiences. Ameriprise paid a fee to Hearts & Wallets to cite Services, LLC, a registered investment adviser. the results of the survey. In UK Issued by Threadneedle Asset Management Limited. Registered in England and Certified as of December 2020. J.D. Power 2020 Certified Customer Service ProgramSM Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United recognition is based on successful completion of an evaluation and exceeding a customer Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. satisfaction benchmark through a survey of recent servicing interactions. Our advisors evaluated our performance in these factors: satisfaction with the IVR routing process, and Issued by RiverSource Life Insurance Company, Minneapolis, Minnesota, and in New York the customer service representative which includes knowledge, courtesy, concern, call only, by RiverSource Life Insurance Co. of New York, Albany, New York. duration/transfers/hold time, and timeliness of resolution in addition to overall satisfaction. Investment products offered through Columbia Management Investment Distributors, Inc., Ameriprise engaged J.D. Power to be independently evaluated through this program and cite member FINRA. Advisory services provided by Columbia Management Investment Advisers, the results. For more information, visit www.jdpower.com/ccc. LLC. Employee engagement: see Page 8. Ameriprise Bank, FSB provides deposit, lending, and personal trust products and services Morningstar as of 12/31/20. Columbia funds are available for purchase by U.S. customers. to its customers, including clients of Ameriprise Financial Services, LLC (“AFS”). Ameriprise Out of 92 Columbia funds (Inst. shares) rated, 16 received a 5-star Overall Rating and 37 Bank, FSB and AFS are subsidiaries of Ameriprise Financial, Inc. AFS financial advisors may received a 4-star Overall Rating. Out of 89 Threadneedle funds (highest rated share class) receive compensation for selling bank products. rated, 21 received a 5-star Overall Rating and 34 received a 4-star Overall Rating. The Overall Ameriprise Bank, FSB. Member FDIC. Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Not all funds are Columbia Threadneedle Investments is the global brand name of the Columbia and available in all jurisdictions, to all investors or through all firms. Threadneedle group of companies.
34 Adjusted operating net revenues (in millions) 2020 Total net revenues $11,899 Adjusted operating return on equity (in millions) 2020 Less: Revenues attributable to the CIEs 71 Net income $1,534 Less: Net realized investment gains (losses) (11) Less: Adjustments1 (236) Less: Market impact on non-traditional long-duration products 10 Adjusted operating earnings $1,770 Less: Integration/restructuring charges – Total Ameriprise Financial, Inc. shareholders’ equity $6,171 Less: Gain on disposal of business – Less: Accumulated other comprehensive income, net of tax 301 Less: Market impact of hedges on investments – Total Ameriprise Financial, Inc. shareholders’ equity excluding AOCI 5,870 Adjusted operating total net revenues $11,829 Less: Equity impacts attributable to the consolidated investment entities 1 Adjusted operating equity 5,869
Return on equity, excluding AOCI 26.1% Adjusted operating earnings per diluted share Per Diluted Adjusted operating return on equity, excluding AOCI2 30.2% (in millions, except per share amounts) Share 2020 2020 1 Adjustments reflect the trailing twelve months’ sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs (“DSIC”) and deferred acquisition costs (“DAC”) amortization, Net income $1,534 $12.20 unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long- Less: Net income (loss) attributable to the CIEs 3 0.02 duration products, net of hedges and related DAC amortization, unearned revenue amortization, and the Add: Integration/restructuring charges1 4 0.03 reinsurance accrual; mean reversion related impacts; gain on disposal of business; the market impact of Add: Market impact on non-traditional long-duration products1 375 2.98 hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration/ Add: Mean reversion related impacts1 (87) (0.69) restructuring charges; and the impact of consolidating certain investment entities. After-tax is calculated using the statutory tax rate of 21%. Add: Market impact of hedges on investments1 – – 2 Less: Net realized investment gains (losses)1 (10) (0.08) Adjusted operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment Less: Gain on disposal of business1 – – gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance 2 Tax effect of adjustments (63) (0.50) accrual; the market impact on non-traditional long-duration products, net of hedges and related DAC Adjusted operating earnings1 $1,770 $14.08 amortization, unearned revenue amortization, and the reinsurance accrual; mean reversion related impacts; gain on the disposal of business; the market impact of hedges to offset interest rate changes Weighted average common shares outstanding: on unrealized gains or losses for certain investments; integration/restructuring charges; the impact of Basic 123.8 consolidating certain investment entities; and discontinued operations in the numerator, and Ameriprise Financial shareholders’ equity excluding AOCI and the impact of consolidating investment entities using a Diluted 125.7 five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax 1 Pretax adjusted operating adjustment. rate of 21%. 2 Calculated using the statutory tax rate of 21%.
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