Regions Financial releases combined 2019 Annual Review and Environmental, Social and Governance Report
June 25 2020 - 9:00AM
Business Wire
Regions Financial (NYSE:RF) today announced the release of its
combined 2019 Annual Review and Environmental, Social and
Governance (ESG) Report documenting the company’s progress on
initiatives that make life better for customers, associates and
communities, while creating long-term value for shareholders.
“Regions’ culture of continuous improvement means our teams
approach their work every day committed to our mission of making
life better for customers, fellow associates, communities and
shareholders,” said President and CEO John Turner. “We accomplish
this by leaning into our strengths - strong customer relationships,
attractive growth markets, top banking talent and a winning
culture. Our commitment to continuous improvement also means
operating in socially responsible and environmentally sound ways
that make life better for all. Our 2019 accomplishments set the
stage for us to achieve sustainable success through every business
cycle, and I’m confident about how we are positioned to deliver
value over the long term.”
“Throughout 2019, the board’s Nominating and Corporate
Governance (NCG) Committee has diligently exercised its oversight
responsibilities, particularly in the areas of shareholder
engagement and ESG,” said Ruth Ann Marshall, Chair of the NCG
Committee. “The board believes that responsible and responsive
corporate governance practices enable companies to generate
consistent, sustainable, long-term performance and that enhanced
disclosures provide our shareholders with a more transparent view
of the company.”
In addition to providing updates on Regions’ business strategy
and ESG initiatives, the report outlines Regions’ response to the
COVID-19 pandemic.
“We must hold ourselves to high standards when it comes to
corporate governance, ethics and risk management, and this is
particularly important when planning for and enduring a crisis,
such as the COVID-19 pandemic that we are all working through,”
said Regions’ Corporate Secretary and Chief Governance Officer,
Hope Mehlman. “We believe that good governance matters, regardless
of the season, and that companies with strong ESG practices will be
better positioned to manage through challenges. This year’s report
provides an overview of how Regions has incorporated many ESG best
practices and is responding to the COVID-19 pandemic by supporting
our stakeholders.”
Regions’ top priorities throughout the COVID-19 pandemic have
been to protect the health and safety of customers and associates
and to provide financial access, assistance and guidance for
customers, businesses and communities. The company has implemented
plans to ensure all critical business operations are staffed
appropriately while allowing a meaningful number of associates to
work remotely. Regions limited in-person branch banking services to
drive-through options or in-office appointments, enhanced facility
cleaning and expanded its health benefits program to address issues
specifically related to COVID-19.
To assist customers impacted by the pandemic, Regions draws from
its established Customer Assistance Program and bankers who have
experience working with customers through natural disasters and
market disruptions to address specific needs. Other
COVID-19-specific efforts1 include penalty-free CD withdrawals2, a
variety of fee waivers, credit card and loan payment deferrals and
extensions and for a limited time suspended vehicle repossessions
and residential property foreclosures. Additionally, Regions
continues to assist customers by providing federally guaranteed
loans for small businesses through the Paycheck Protection Program,
which was established under the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. Additional information is available
at https://region.com/coronavirus.
The 2019 report highlights include:
Environmental Sustainability
- TCFD-aligned disclosure – Consistent with Regions'
commitment to enhancing transparency in reporting on environmental
performance, the report incorporates an interim climate-related
risk disclosure aligned with the Task Force on Climate-related
Financial Disclosures (TCFD) framework. The TCFD-aligned disclosure
concentrates on underlying governance framework, strategy, risk
management practices and established metrics and targets, with the
goal of helping stakeholders better understand and evaluate how
Regions assesses and manages its climate-related risks and
opportunities. Regions intends to publish an expanded disclosure of
climate-related risks in line with the standards promulgated by the
TCFD within the next year.
- Environmental goals – Regions has established goals to
reduce Scope 1 and 2 greenhouse gas emissions and energy use each
by 30% by 2023 against a 2015 baseline. Through 2019, the company
has achieved reductions of 28% and 19%, respectively.
- Sustainable financing – Regions continues to expand its
focus on providing financing and support for renewable energy
projects, with $280 million in renewable energy lending in 2019.
For example, Regions provided funding to support the development of
13 photovoltaic solar projects in rural areas across its footprint
and participated in a green bond issuance for a leading utility
company.
- Green branch renovations – In 2019, Regions began work
at 12 sites using a new, more holistic approach to branch
renovations, particularly regarding energy and water efficiency
evaluation. Preliminary results of these renovations indicate
monthly reductions in grid-based electricity by up to 58%.
Human Capital Management
- Diversity and Inclusion - A strong commitment to
diversity and inclusion is a core part of the company’s strategy to
achieve sustainable performance. In 2019, Regions hosted 10
Diversity Networks, representing more than 11,000 associates.
Further, in 2019, Regions joined CEO Action for Diversity &
Inclusion™, the largest CEO-driven coalition to advance diversity
and inclusion in the workplace. The Talent Acquisition team
partners closely with our internal Diversity and Inclusion Center
of Expertise to attract diverse talent to Regions, and Regions is
committed to hiring candidates with diverse backgrounds and
experience.
- Upskilling and reskilling - The company continues to
invest in career development and training. In 2019, Regions
implemented additional learning solutions to help associates gain
the skills they will need in tomorrow’s workplace through a pilot
program focused on targeted learning paths. The program is designed
to strategically upskill associates by projecting the knowledge and
skills the company needs and prescribing learning content for
associates based on individual skills assessments.
- Employing veterans - Regions is committed to employing
veterans and military members who are seeking opportunities in the
financial services industry. In 2019, Regions launched a military
transition program called BRAVE—Building Regions Associate Veterans
Experience, to help transitioning military service members build a
successful career at Regions.
- Employing people with disabilities - In 2019, Regions
strengthened relationships with local departments of rehabilitation
by hosting a summer work program and updating the
regions.com/careers page to affirm a commitment to employing people
with disabilities. Regions is also leveraging automated technology
that replicates job postings on state and local government
disability job boards and sends them directly to disability
employment contacts. Further, Regions has launched an internal
campaign to encourage associates to self-disclose their
disabilities in efforts to establish a baseline for future goal
setting.
- HCM Dashboard - The Compensation and Human Resources
(CHR) Committee of the board has recently implemented a Human
Capital Management Dashboard (HCM Dashboard) comprised of metrics
that provide information and analysis on workforce composition,
workforce stability, associate engagement, learning and
development, compensation, benefit and wellness program utilization
and more. Through monitoring, subject-matter reviews and
discussions with management, the CHR Committee assesses the
effectiveness of Regions’ human capital management strategies and
policies and their alignment with corporate culture and long-term
strategic priorities.
Corporate Governance
- Rooney Rule - Regions’ board adopted changes to the
Corporate Governance Principles in 2019 that include a specific
focus on seeking out diverse candidates when searching for a new
director, often described as the Rooney Rule. This practice has
also been adopted as it relates to filling all Section 16 Executive
Officer positions. These changes further the company’s established
practice of considering diversity when recruiting and nominating
individuals for directorships or executive officer positions.
- Ethical use of artificial intelligence - Because
artificial intelligence (AI) solutions are built and used to
perform multiple significant functions across the organization,
Regions is committed to strong AI ethics and governance. Regions
adheres to core principles that govern the company’s development
and use of AI, including values, accountability, transparency,
diverse and inclusive teams and continuous learning.
- Director-associate engagement - The board and management
set a “tone at the top” characterized by open and transparent
communications across all levels of the company. Associates
regularly attend and present at board and committee meetings to
provide subject-matter expertise. Smaller meetings are also
arranged with associates without executive management present to
discuss topics of interest to directors. Directors are encouraged
to visit Regions’ facilities and engage with associates through
various other forums.
- Director-shareholder engagement - Director-shareholder
engagement is an important component of Regions’ commitment to
continuously improving corporate governance practices. In 2019, the
board significantly increased the amount of director-shareholder
engagements on corporate governance matters and solicited feedback
on culture, compensation practices and ESG practices and
disclosures.
- Business resilience - Regions is committed to providing
essential business and technology services in the event of business
interruptions, such as the COVID-19 pandemic, to support customers
and associates. Regions has an established Business Resilience
Program, overseen by the board’s Risk Committee, which directs the
internal planning processes related to business continuity, crisis
management, cyber security incident response, disaster recovery,
pandemic planning and general emergency management. These efforts
are supported through strong, cross-functional partnerships between
Risk Management, Information Technology and Corporate
Security.
The 2019 Annual Review and Environmental, Social and Governance
Report covers the period of Jan. 1 through Dec. 31, 2019, unless
otherwise noted, and is available on the Regions website at the
following link. Regions uses the Global Reporting Initiative (GRI)
framework, along with broader concepts from guidelines and
frameworks established by other standards-setting organizations, to
provide transparent and comparable disclosure of the company’s
economic, environmental and social impacts. The report should be
read in conjunction with the company’s 2019 Annual Report on Form
10-K and Form 10-Q for the quarter ended March 31, 2020; 2020 Proxy
Statement; 2019 Community Engagement Highlights; 2019 CDP Response;
and 2018 SASB Disclosure, all of which can be found at
ir.regions.com.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $133 billion in
assets, is a member of the S&P 500 Index and is one of the
nation’s largest full-service providers of consumer and commercial
banking, wealth management, and mortgage products and services.
Regions serves customers across the South, Midwest and Texas, and
through its subsidiary, Regions Bank, operates approximately 1,400
banking offices and 2,000 ATMs. Regions Bank is an Equal Housing
Lender and Member FDIC. Additional information about Regions and
its full line of products and services can be found at
www.regions.com.
- Unless otherwise required by applicable law, the assistance
described may, in the sole discretion of Regions Bank, be available
for a limited time; be subject to other exclusions and
restrictions; and, is subject to change or termination without
further notice. Decisions on waivers are made in sole and absolute
discretion of Regions Bank.
- The no-penalty offer allows customers to make one partial or
complete withdrawal without penalty. The penalty-free withdrawal
must be made more than seven days after the issue date or the most
recent renewal date (whichever is later). Any other withdrawals
will be subject to penalties.
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Evelyn Mitchell 205-264-4551 regions.doingmoretoday.com Follow
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