Invested in Change Corporate Social Responsibility Report 2016 About this Report Table of Contents About BNY Mellon 2 About this Report About the Company 2 This is BNY Mellon’s 10th CSR report. We publish a Message from Our CEO 6 report annually in the second quarter of the year on www.bnymellon.com/CSR. Unless otherwise noted, this report includes data and activities for the calendar year Our Approach 8 2016, from BNY Mellon’s global operations. CSR at BNY Mellon 9 The report provides environmental, social and governance Goal-Setting 15 data from the past five years, when available. Leadership Perspective 17 CSR Governance 18 This is our eighth year using the Global Reporting Stakeholder Engagement 20 Initiative’s (GRI) framework, the world’s most widely used sustainability reporting framework. We prepared the report in accordance with GRI G4. Our Markets 22 Our Opportunity 23 Risk Management and Reliability 24 Strong Governance 44 Building Trust through Dialogue 50 Our People 51 Our Opportunity 52 Leadership and Development 53 Engagement and Wellbeing 56 Diversity and Inclusion 62 Advancing Diversity and Inclusion in India 74 Our World 75 Our Opportunity 76 Social Investing 77 Supply Chain Responsibility 95 Community Commitment 98 Environmental Management 106 Our Performance 115 GRI Index 116 Legal Notices 134 Corporate Social Responsibility Report 2016 1 About BNY Mellon The Engine for Financial Markets Since our founding in 1784, BNY Mellon has been dedicated to delighting our clients and helping them succeed. We carry this principle through all our corporate social responsibility (CSR) activities to help enable prosperity and wellbeing for our stakeholders. Our Vision Improving lives through investing Our Mission Helping people realize their full potential by leveraging our distinctive expertise to power investment success Our Values Client Focus Integrity Teamwork Excellence Corporate Social Responsibility Report 2016 2 About BNY Mellon Improving Lives Through Investing From day one, BNY Mellon has helped shape the future of financial services and worked to positively impact the world. We have evolved in many ways since our founding by Alexander Hamilton in 1784, but our commitment to his innovative spirit remains the same. It’s the driving force behind our legacy of firsts and what continues to push us forward into the future. Improving lives through investing is BNY Mellon’s vision and our CSR charter. Our Corporate Social Responsibility Statement guides our CSR decisions and inspires us to achieve our goals. Corporate Social Responsibility Statement Corporate social responsibility is crucial to how we fulfill our role as a major global financial institution. At BNY Mellon, we are invested in our markets, our people and our world. Our clients trust us every day with their investments, and we depend on our talented and diverse workforce to meet client needs with the highest standards of excellence and integrity. That’s why it’s important that we build an inclusive and supportive environment where our people are empowered to contribute and succeed. Together, we can contribute to the resiliency of global markets and solutions for some of the world’s most pressing issues, building healthy economies and sustainable communities over time. In our CSR reporting, we examine our firm’s progress, including our approach and activities related to the CSR areas most material to our business. We organize our reporting by the three pillars of our CSR strategy and related areas where we can have the greatest impact: Our Markets Our People Our World The data and examples in this report refer to our global operations as of December 31, 2016, unless otherwise stated. To download a PDF version of our CSR report, along with our Global Reporting Initiative (GRI) G4 index and a data summary, go to bnymellon.com/csr. We welcome questions, comments or feedback on our reporting or CSR at BNY Mellon. Corporate Social Responsibility Report 2016 3 About BNY Mellon The Investments Company for the World BNY Mellon provides investment management and investment Our values of client focus, integrity, teamwork and excellence services unrivaled in scale, precision and quality. Our diverse guide our decisions and actions. As the Investments Company global workforce of more than 50,000 employees drives for the World, we are grounded in history, looking to the future profitable growth and enhances the client experience in and propelled forward by progressive thinking and innovation. more than 100 markets in 35 countries all over the world. Our Extraordinary Purpose We are America’s longest continually running financial Through our scale and reach, we touch investors of all types institution, powering financial markets and helping clients and sizes around the globe. We safeguard, manage and process grow and progress for more than 230 years. Since our trillions of dollars every day to help drive the world’s financial founding, we have endured every economic condition and markets and the economies they support. Our purpose is to market event. We know that to thrive, we must embrace enable growth and prosperity to allow investors to pursue uncertainties, continuously innovate and transform our their dreams. organization to remain important to our clients and be successful in a highly competitive marketplace. With our strong legacy as a foundation, we are invested in change, people and opportunities to open up new worlds for businesses, institutions and individuals. Who We Are Investment Services Investment Management We provide expertise and insight at each stage of the investment life cycle: 1 Create assets 2 Trade, clear 3 Hold and 4 Manage assets 5 Restructure assets and settle assets1 service assets Our Clients Asset managers Companies High-net-worth individuals Non-profit organizations Banks Family offices Insurance companies Pension funds Broker-dealers Financial intermediaries Investment advisers Sovereign institutions Central banks Governments Our Reach2 of the top 200 life/ of Fortune of the top 200 life/ of the top 100 pension and of Fortune health insurance of the top 100 pension and 78% 55% health insurance 85% employee benefit funds 78% 500 companies 55% 85% employee benefit funds companies Our central bank clients of the top 100 of the top 50 world make up 82 percent of global 77% endowments 50% universities 82% make up 82 percent of global endowments universities central bank reserves 1 Securities transactions are effected, where required, only through registered broker-dealers. 2 All statistics represent the minimum number of BNY Mellon client relationships in each category · Fortune 500 // Fortune Magazine, Copyright 2016 Time Inc. · Endowments // Reprinted with permission of NACUBO, Copyright 2017. · Life & Health Insurance Companies // Reprinted with permission of A.M. Best Company Inc., Copyright 2016. · World Universities // QS World University Rankings® 2016-2017. · Pension & EB Funds // Used with permission from Pensions & Investments, Copyright 2017. · Central Banks // The World Bank Group, Copyright 2016. Corporate Social Responsibility Report 2016 4 About BNY Mellon You can’t be in business for more A Legacy of than two centuries without constantly Innovation innovating – and we never stop. Gerald Hassell Chairman and CEO, BNY Mellon Where Embracing Change Began Since Alexander Hamilton invested in America more than Alexander Hamilton founded The Bank of New York, which 230 years ago, countries have been created, borders have would later become BNY Mellon, in 1784. His vision structured been erased and new markets have emerged. But essential a national financial system and laid the foundation for a things remain constant. Imbued with Hamilton’s innovative modern economy. spirit, BNY Mellon continues to lead and manage change and improve lives through investing. As the first U.S. Treasury Secretary, Hamilton arranged for The Bank of New York to provide the country with its first loan, establishing its economic independence and spurring nationwide development. Since then, BNY Mellon has played an active role in effecting systemic change, helping capital markets grow, establishing market-leading solutions to complex issues and enabling people to invest for success. 1784 1869 1994 The Bank of New York opens T. Mellon & Sons’ Bank The Bank of New York opens with $500,000 in capital. is established. its first office in China. Alexander Hamilton writes its constitution and becomes a director. 1922 2000 The Bank of New York merges The Bank of New York 1789 with the New York Life acquires Ivy Asset Early Currency Insurance and Trust company, Management and becomes The money circulating during The Bank of New York introducing trust and custody the first company to execute the American colonial period provides the first loan to the services to the bank’s core securities instructions over was paper money issued by U.S. government, in the offerings. the Internet. individual colonies, coins amount of $200,000. from various countries and 1930s informal bills of exchange. 1792 The Bank of New York offers 2007 The Bank of New York is the corporate trusts for the The Bank of New York first stock traded on New first time. Company, Inc., merges with York’s stock market, the Mellon Financial Corporation, precursor to the New York bringing together two Stock Exchange. 1955 legendary institutions and Mellon becomes one of the 375 years of experience. 1804 first national banks to acquire and install a The Bank of New York computer. 2011 becomes depositary for what BNY Mellon is the first to is believed to be the nation’s launch a mobile trading app. first trust, established to 1971 provide for Alexander Mellon forms the first-ever First Company Traded Hamilton’s family after his U.S. dedicated family office Today on the NYSE death. business. BNY Mellon Innovation A group of stockbrokers Centers are opening around signed the Buttonwood 1832 the world to employ an Agreement outside of 68 Wall 1977 innovative, collaborative Street under a buttonwood The Bank of New York begins The Bank of New York begins approach to problem-solving.