BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Financial Corp. (NYSE:RF) on Wednesday announced the release of its inaugural Task Force on Climate-related Financial Disclosures (TCFD) Report. The report shows how Regions is actively working to address risks and opportunities related to climate change through its own sustainable business practices – while also providing capital to advance similar efforts made by clients served by Regions Bank.
TCFD was established by the Financial Stability Board to increase and strengthen the amount of climate-related information disclosed by international companies and the financial services sector. The result is greater transparency surrounding a wide range of climate-related business activities.
“At Regions, we are deeply committed to leveraging our experience, our resources, and our core values as a company to make a positive impact on our environment,” said John Turner, President and CEO of Regions Financial Corp. “Our customers share this goal, too, and we are working with new and long-term clients to advance viable and sustainable initiatives that are creating a healthier planet while meeting the business and energy needs of the broader marketplace. We owe it to current and future generations to consistently innovate and do more. This is one of the most important ways we can fulfill our mission to make life better for the people and communities we serve.”
Highlights of Regions’ TCFD Report, linked here, include:
- Regions’ Climate Commitment: Regions acknowledges the climate challenges that face our planet, and the company is committed to further reducing its environmental footprint. The TCFD Report illustrates how Regions’ climate commitment also includes helping facilitate the broader transition to a lower-carbon, sustainable economy. As part of this effort, Regions’ bankers actively engage with clients from various industries to collaborate on financial solutions and opportunities amid this transition.
Clear Results: Regions’ commitment is already creating progress. In 2020 alone, Regions’ sustainable finance efforts enabled:
- More than $575 million in renewable energy financing
- Sustainable management of over one million acres of timberland
- 97% growth year-over-year in client assets allocated to Environmental, Social, and Governance (ESG)-focused investment products
- Impacts of Risks: Within the TCFD Report, Regions illustrates factors such as potential sea-level rise and other impacts of a warmer climate. These factors are examined from a perspective of their potential impacts on various business portfolios as well as Regions’ physical locations.
Opportunities for Progress: Regions’ TCFD Report also shows how the financial services industry can build on advancements made in recent years. As examples:
- Regions supports the development and implementation of clean energy solutions through its Solar Tax Equity Finance Team and Energy and Natural Resources Group.
- Separately, Regions’ Transportation Group, along with its Equipment Finance Group, have over $140 million in commitments to mass transit and urban rail transit systems helping in the reduction of greenhouse gas emissions from commuter vehicles.
- Regions has seen growth in sustainable lending areas in recent years, and during the ongoing development of the company’s 2022-2024 Strategic Plan, Regions will incorporate climate opportunities as part of its broader ESG efforts.
- Strategic Oversight: The TCFD Report establishes how Regions’ Board of Directors and executive leaders guide, evaluate, and oversee Regions’ strategic environmental objectives. Additionally, the report details how Regions is committed to maintaining a culture of risk ownership and awareness that is consistent with the core values governing how Regions associates approach their roles as financial professionals.
- Long-Term Strategies: Regions’ approach to sustainability is not limited to lending practices or risk evaluations. Regions is also increasing its own commitment to reducing location-based carbon emissions by 50% by the end of 2030, using 2019 as a baseline year. Information on how Regions identifies emissions based on various scopes can be found in the TCFD Report linked above.
- The Path Forward: The TCFD Report is the latest milestone in a long-term journey. In addition to fulfilling a public commitment made by Regions in 2020 to deliver a stand-alone report aligned with TCFD recommendations, the report describes how future internal developments at Regions will provide greater insights for the company and transparency for stakeholders. Regions’ planned enhancements range from expanding internal education and awareness of climate-related issues, to performing annual updates of the company’s ongoing scenario analyses, and more.
“The people of Regions Bank are working with our customers, vendors, suppliers, and others every day to be part of the solution to climate change,” said Regions Chief Governance Officer Andrew Nix. “We are encouraged by the results we have generated so far, and we will continue building on these initiatives that support not only a cleaner environment but also stronger businesses, industries, and communities. We know we can address the challenges we face, and embrace new opportunities, in a productive manner through the commitment of our teams as well as the vision and dedication of the people and businesses we serve.”
Moving forward, Regions will issue TCFD disclosures on an annual basis. Regions is also scheduled to issue its 2020 Annual Review and ESG Report later this summer.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $153 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 more than 1,300 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.