Bank of Ireland : ESG Investor Presentation 2023 - 4 MB

ESG Investor Presentation

Contents

Introduction 3-6

3-5	Our Group, Sustainability
Strategy and Roadmap

6 Sustainability at a glance in 2023

Environmental 8-13

1. Five-pointClimate Action Plan
2. Science Based Targets

10-13 Sustainable Finance

1. Managing Climate-Related Risk
2. Responsible Investment
3. Nature

Social 18-23

18-20 Financial Wellbeing

21-22 Enabling Colleagues to Thrive

23 Social Foundation Topics

Governance 25-27

1. Corporate and Sustainability Organisation
2. Governance Foundation Topics
3. ESG Ratings

Introduction

Environmental

Social

Governance

Green Bond Framework 29-38

1. Green Bond Framework
2. Use of Proceeds
3. Project Evaluation and Selection Process 32-33 Management of Proceeds
   34-35 Reporting and Allocation Report

1. Identified Assets 37-38 Second Party Opinion

Appendix 40-51

1. Sustainable Finance
2. Decarbonising our Own Operations 42-44 Managing Climate-Related Risks
   45-46 Spotlight on UNPRB Commitment

1. Fraud Awareness
2. Group Role, Responsibilities and Remuneration
3. Memberships and Associations

1. Contacts
2. Disclaimer

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Our Group Strategy

In March 2023, our refreshed Group Strategy for 2023- 2025 was launched. This strategy builds on our 240 year business heritage and is guided by our purpose, which is to help customers, colleagues, shareholders and society

to thrive. Sustainability is now embedded as one of the

Group's three core strategic pillars under 'Sustainable Company' alongside 'Stronger Relationships' and 'Simpler Business'

Our values are central to how we work to deliver this strategy. At Bank of Ireland, we are customer first, better together, we take ownership and are decisive

Introduction

Environmental

Social

Governance

Values		Strategic
		Pillars
Customer
first	Purpose
	Stronger
		relationships
Better
together	Helping you
	Simpler
	Thrive
	business
Take
ownership
		Sustainable
Be		company

decisive

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Our

Sustainability

Strategy

Sitting below the Group's

	Introduction	Environmental	Social	Governance
Sustainability strategy aligned to UN Sustainable Development Goals (UN SDGs) which
interconnect broader ESG considerations beyond climate and net zero.
	Sustainability Pillars
Supporting the	Enhancing		Enabling Colleagues
Green Transition	Financial Wellbeing	to Thrive

'Sustainable Company' pillar is our 'Investing in Tomorrow' sustainability strategy.

Our sustainability strategy and approach centres on three pillars:

• Supporting the Green Transition
• Enhancing Financial Wellbeing
• Enabling Colleagues to Thrive

Focus areas

• Science based targets
• Providing sustainable finance
• Decarbonise our own operations
• Manage climate-related risks
• Transparently report our progress

Focus areas	Focus areas
•	Fostering financial inclusion	• Build a future ready workforce
•	Improving financial literacy	• Create a differentiated
	and capability	colleague experience
• Building a more financially	and workplace
	resilient and confident Ireland	• Simplify our ways of working

Relevant UN SDGs:

Relevant UN SDGs:

Relevant UN SDGs:

Foundation Topics

Our pillars are underpinned by strong foundational topics which guide our commitment to being a sustainable business

Social Foundation Topics	Governance Foundation Topics
Community Investment | Health & Safety |	Culture | Business Ethics| Cyber Security |
Sourcing Responsibly | Human Rights	Data Protection| Financial Crime

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Our Sustainability Roadmap

Introduction

Environmental

Social

Governance

2050

E Environmental

S Social

G Governance

Joined UNPRB

Joined

1st TCFD report Published

Launched Ireland's 1st Green Mortgage, Renewable Energy

• Electric Vehicle finance products

Launched Financial Wellbeing programme

2019-2020

Launched 'Investing in Tomorrow' sustainability strategy

1st sustainability report

2nd TCFD report published

1st EU Taxonomy disclosure

1st Woodland Nature Credit - financing 600,000 trees

1st Green Bond issuance - raising €750 million

Inclusion & Diversity Training for all colleagues

Ethnic Minority Talent Programme (RISE) launched

2021

Scope 1-3 GHG reduction targets for 2030 validated from 2020 baseline

Joined

Joined UNPRB Biodiversity Group

2nd Woodland Nature Credit - financing 1.8 million trees

Co-lead UNPRB financial health and inclusion working group

Recognised #1 bank for Financial Wellbeing in Ireland

40%* female appointments to management & leadership positions

Vulnerable customer unit supported over 6,300 customers

Appointed Chief Sustainability and Investor Relations Officer

Board Sustainability Committee established

2022

Sustainability-related finance increased by 35% to €11.1bn*

Achieved over 85% of our SBTi 2030 target reduction in Scope 1 and 2 emissions

Total Green Bond issuances of c.€4.75 bn to date

Launched Enviroflex

Agri-BusinessSustainability-Linked Loan

Launched Green Capex loan product for corporate customers

46%* female appointments to management & leadership positions

Remained #1 bank for Financial Wellbeing in Ireland

1st and only Irish bank and one of

24 banks globally to set and publish our UNPRB commitments on financial health and inclusion

Received gold accreditation from

Group profit share scheme introduced, with ESG targets embedded

Published enhanced Pillar 3 ESG disclosures

Corporate Sustainability Reporting Directive preparedness underway

Published enhanced EU Taxonomy disclosures

2023

Net Zero

Published Sustainable Finance Framework

Achieve sustainable finance target of c.€15bn by 2025 and c.€30bn by 2030

Decarbonise own operations by 2030

Remain #1 bank recognised for Financial Wellbeing in Ireland

Achieve UNPRB financial health & inclusion Targets by 2030

Achieve 50:50 gender balance in management & leadership positions

Increase representation of ethnic minority groups

2024 to 2030

* Indicator is prepared in line with Reporting Criteria and is subject to Limited ISAE 3000 (revised) and ISAE 3410 assurance by KPMG for the 2023 Bank of Ireland Group plc Sustainability Report.	ESG Investor Presentation	5
Please see pages 39-41 of the Bank of Ireland Sustainability related Reporting and Assurance 2023 for Reporting Criteria and pages 42-43 for KPMG's limited assurance opinion, available here

Sustainability

at a glance in 2023

1st

and only Irish bank, one of 23 globally, to set and publish our commitments to financial health and inclusion under the UN Principles for Responsible Banking (UN PRB)

Introduction

Environmental

Social

Governance

#1	46%*
bank recognised	female appointments
for Financial
to management and
Wellbeing in Ireland
leadership positions
	(40% in 2022)

E Environmental

S Social

G Governance

+2

improved ratings from two ESG rating agencies in 2023

>85%

of our 2030 emissions reduction targets across our own operations have been achieved and c.90% of our 2025 reduction target achieved for long-term corporate lending

80%	Sustainable
Finance
Framework
colleague score for	Published
culture embeddedness
(+5 points vs global
financial services
benchmark)

• Indicator is prepared in line with Reporting Criteria and is subject to Limited ISAE 3000 (revised) and ISAE 3410 assurance by KPMG for the 2023 Bank of Ireland Group plc Sustainability Report. Please see pages 39-41 of the Bank of Ireland Sustainability related Reporting and Assurance 2023 for Reporting Criteria and pages 42-43 for KPMG's limited assurance opinion, available here

€11.1bn*

sustainability-related finance increased by 35% in 2023

€2.25bn

issued in bonds through Green Bond Framework. Total issuance to date c. €4.75 bn

Initial Double

Materiality

Assessment

completed in preparation for CSRD reporting requirements

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Introduction

Environmental

Social

Governance

€2.25bn

issued in bonds through Green Bond Framework. Total issuance to date c. €4.75 bn

Launched

Green Capex Loan

product aligned to the EU Taxonomy sustainable market activities

Environmental

Supporting the Green Transition

€11.1bn*

sustainability-related finance increased by 35% in 2023

>85%

of our 2030 emissions reduction targets across our own operations have been achieved and c.90% of our 2025 reduction target achieved for long-term corporate lending

#1

for green

Launchedmortgages in Ireland

Enviroflex agri-business green loans

• Indicator is prepared in line with Reporting Criteria and is subject to Limited ISAE 3000 (revised) and ISAE 3410 assurance by KPMG for the 2023 Bank of Ireland Group plc Sustainability Report.
  Please see pages 39-41 of the Bank of Ireland Sustainability related Reporting and Assurance 2023 for Reporting Criteria and pages 42-43 for
  KPMG's limited assurance opinion, available here

We are committed to supporting a transition to a resilient, net zero and nature positive economy by 2050

Five Point Climate Action Plan

Introduction

Environmental

Social

Governance

Science Based Targets

1st

Irish bank to have greenhouse gas (GHG) emissions targets validated by SBTi

Aligned with decarbonisation of Paris Agreement

Sustainable

Finance

c.€11.1bn

Sustainability-related finance up by c.35% in 2023 and targeting c.€15bn by 2025 and c.€30bn by 2030

Supporting our customers and the delivery of the government climate action plan

Decarbonising our Operations

42%

Reduction in Scope

1 & 2 carbon emissions

(Dec 2023 v 2020 baseline)

Delivering our products and services sustainably

Managing

Climate -

Related Risks

Embedded

Integration of climate considerations into key risk management practices

Managing climate- related risk in our own operations, in lending and investment decisions

Transparently

Reporting our

Progress

Alignment

Of our disclosures with expectations of regulators, ratings agencies and shareholders

Progress reporting against climate targets and sustainable finance development

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BOI has set Science Based	Introduction Environmental
Targets to Reduce Emissions

Science based targets continued

1. Does not include residential mortgages acquired from KBCI in 2023.
2. Target reduction updated to 60% from 40% and notified to the SBTi following restatement of the volume of electricity generation financed in the 2020 baseline.
3. Defined as 25% of Corporate Lending Customers with validated SBTs (weighed by company emissions).
4. Defined as 25% of Corporate Bond Customers with validated SBTs (weighted by investment value).

• Indicator is prepared in line with Reporting Criteria and is subject to Limited ISAE 3000 (revised) and ISAE 3410 assurance by KPMG for the 2023 Bank of Ireland Group plc Sustainability Report. Please see pages 39-41 of the Bank of Ireland Sustainability related Reporting and Assurance 2023 for Reporting Criteria and pages 42-43 for KPMG's limited assurance opinion, available here

SocialGovernance

Science Based Targets initiative (SBTi) emissions reduction targets cover all the Group's operations and 76% of our loan book

First Irish bank to have targets validated by SBTi

Aligned with Paris

Agreement goals

SBTs inform our commercial strategy including development of sustainable products

Contingent on Irish and UK government climate plan ambitions

Ambition to actively assist our customers in transitioning to more sustainable practices

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Sustainable Finance

Lending €15bn by 2025 and €30bn by 2030

Introduction

Environmental

Social

Governance

Sustainable Finance Portfolio (Dec 2023)1

Portfolio

• In 2023, our Sustainable Finance Portfolio grew by c.35% reaching €11.1 billion

• c.50% of new mortgage lending was in green mortgages

• Growth in financing for EVs and renewable energy projects

• Green Asset Ratio 2.43%2

Investment required for Ireland's green transition to 2030

(Davy, November 2023 estimates)

1.Exposures of c.€11.1 billion comprise loans within the Group's Green Bond eligible assets portfolio, UK residential mortgages to EPC A and B rated properties and Sustainability-Linked Loans.

2.It should be noted that for this first round of Taxonomy-aligned disclosures, we have taken a conservative application of the qualifying criteria underpinning the GAR based on the guidance provided to date and currently available data. Due to the current data limitations across the industry, changes in this ratio in future reporting periods will be driven in part by increased data availability.

Sustainable Finance

Framework

• Disclosure of criteria used to classify financial commitments and products as sustainable
• Group wide standardised approach to sustainability, aligned with global standards and principles
• Publication of our Sustainable Finance Framework: availablehere
• Exclusions criteria availablehere

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