Synchrony Financial : 2023 ESG Report

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

2023

CONTENTS

About This Report	4	Our Communities	68
		2023 Highlights	69
CEO Letter	7	Education as an Equalizer	70
		Creating Pathways to College Completion	73
Our Business	8	Building Skills of the Future	77
Board of Directors Diversity and Skills Matrix	10	Closing the Financial Gap	79
Our Focus on ESG	11	Education as an Equalizer Grantees	81
ESG Oversight by Our Board Committees	12	Volunteerism	82
Integrating ESG into Our Business	14	Community Reinvestment	85
Supplier Diversity	16
Doing What's Right	18	Our Environment	88
		Sustainability Strategy	89
Our Customers	20	Improving Efficiency	89
Fair and Honest	21	Reducing Consumption	90
Retail Partner and Provider Oversight	21	Reducing Waste	92
New Product Compliance	21	Employee Health and Safety	93
Addressing Consumer Complaints	22	Employee Engagement	93
Compliance Program	22	Environmental, Health and Safety Key Metrics	94
Information Security and Data Privacy	23
		Appendix	95
Our People	26	Sustainability Accounting Standards Board
A Culture Built on Trust	28	(SASB) Index	96
The Great Transformation	29
Winning Highlights	30
How We Work	31
Total Well-Being	37
Overview of Benefits	46
Equity, Diversity, Inclusion and Citizenship	47
Leadership Pipeline	59
Awards and Recognition	67

ABOUT THIS REPORT

This Environmental, Social and Governance (ESG) Report provides information on certain ESG activities of Synchrony Financial and its consolidated subsidiaries for the period from January 1, 2023, to December 31, 2023, and all data in this report is as of December 31, 2023, except as otherwise noted. It also includes some of the activities of the Synchrony Foundation, a charitable private foundation established by our company. There was no external assurance from third parties with respect to the information in this report. Many of the targets, goals, impacts and programs described in this report are aspirational, and as such, no guarantees or promises are made that these goals and projects will be met or successfully executed.

This report responds to the Sustainability Accounting Standards Board (SASB) reporting guidelines with respect to our significant ESG topics. The SASB index can be found in the Appendix of this report.

In this report we may use certain terms that SASB or others refer to as "material" to reflect the issues or priorities of Synchrony and its stakeholders. Used in this context, however, these terms are distinct from, and should not be confused with, the terms "material" and "materiality" as defined by, or construed in accordance with, securities or other laws and regulations. Accordingly, issues or priorities considered material for purposes of this ESG Report may not be considered material in the context of our financial statements, our filings with the U.S. Securities and Exchange Commission (SEC) or our other public statements.

This ESG Report includes certain non-financial data and information that is subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used for determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary.

This ESG Report contains forward-looking statements that are provided under the "safe harbor" protection of the Private Securities Litigation

Reform Act of 1995, including statements regarding our ESG targets, goals, impacts, programs and other business plans, initiatives and objectives. Forward-looking statements include all statements that do not relate solely to historical or current facts and involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward- looking statements. Actual results and financial outcomes may differ materially from those expressed in or implied by any of these forward-looking statements due to a variety of factors, including, among others, macroeconomic and operational risks, technology and cyber-related risks, climate-related conditions and weather events, legislative and regulatory changes, and other unforeseen events or conditions. This ESG Report speaks only as of the particular date

or dates indicated in the ESG Report and contains information that is subject to known and unknown risks, uncertainties, changes in circumstances and assumptions that are difficult to predict and are often beyond Synchrony's control. Such risks, uncertainties and other important factors include, without limitation, those described in our recent filings with the SEC, including, without limitation, in Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We expect that certain disclosures made in this ESG Report may be amended, updated or revised in the future as the quality and completeness of our data and methodologies continue to improve. If a circumstance occurs after the date of this ESG Report that causes any of our forward-looking statements to be inaccurate, whether as a result of new information, future developments or otherwise, we undertake no obligation to announce publicly the change to our expectations, or to make any revision to our forward-looking statements, to reflect any change in assumptions, beliefs or expectations, or any change in events, conditions or circumstances upon which any forward-looking statement is based, unless required by law.

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CEO LETTER

At Synchrony, we seek to align our environmental, social and governance priorities with the needs of our company and the expectations of our stakeholders today and in the future. As we and our people, partners, customers and communities move forward into a future shaped by the unprecedented pace of technological change and the transition toward a more inclusive and sustainable economy, we believe our ESG initiatives will be critical components for achieving sustainable, long-term growth.

We approach ESG with the objective of doing what's right, reducing risk and creating value. Our ESG program embraces our vision to improve everyday quality of life and business through our growing ecosystem of financial products and experiences and our values to be honest, passionate, caring, responsible, bold and driven.

In the past year, we continued to make notable progress in our ESG journey, and I am grateful and proud of the recognition we have received, including:

• Ranking #5 on Fortune's 100 Best Companies to Work For® list in 2024 in the United States, up from #20 in 2023;
• Ranking #4 on Fortune's Best Workplaces in Financial Services & InsuranceTM list;
• Ranking #29 on PEOPLE's Companies that Care list;

• Ranking #48 on JUST Capital's annual list of America's Most JUST Companies, including #2 for Workers and #3 for Communities in our assigned industry; and
• Maintaining a 'AA' ESG Rating from MSCI.

This ESG Report shares some of the stories behind this recognition.

Looking ahead, Synchrony, its Board of Directors, executives and employees stand as motivated as ever to do more in pursuit of sustainable growth for our stakeholders through thoughtful action on ESG matters significant to our company.

Sincerely,

BRIAN DOUBLES

President and CEO

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OUR BUSINESS

DOING WHAT'S RIGHT

REDUCING RISK

CREATING VALUE

Synchrony strives to maintain high standards of corporate governance and effective oversight of our business priorities, including ESG priorities that meaningfully impact Synchrony and our stakeholders, because it is the right thing to do and can support long-term value creation and reduce risk.

WELL-QUALIFIED, INDEPENDENT GUIDANCE

Under the leadership of our Nominating and Corporate Governance Committee, Synchrony's Board of Directors (Board) and its committees routinely evaluate our Board and Board committee composition and leadership, as well as our latest director diversity and skills matrix. This established process supports the Board's goal to have the requisite experience to oversee Synchrony's business today and as it evolves under our strategy for the future. Since 2019, we have added four new directors, adding experience in healthcare, digital, technology, the consumer sector and risk management in the consumer banking sector. As a group, our Board possesses experience in areas directly relevant to our business and strategy-including accounting, consumer banking, credit cards, cybersecurity, government affairs, healthcare, marketing, retail, risk management, digital and technology.

BOARD OF DIRECTORS DIVERSITY & SKILLS MATRIX

DIVERSITY

SKILLS / EXPERTISE / OTHER

	Fernando	Paget	Kamila	Arthur	Brian	Roy	Jeffrey	Bill	Laurel	Ellen
	Aguirre	Alves	Chytil	Coviello	Doubles	Guthrie	Naylor	Parker	Richie	Zane
Gender Diversity
Male	•	•		•	•	•	•	•
Female			•						•	•
Ethnic Diversity
Black or African American		•							•
Hispanic	•
White/Caucasian			•	•	•	•	•	•		•
Financial Expert	•	•	•	•	•	•	•			•
Risk Expert		•		•	•	•	•	•
Financial Services Industry			•		•	•	•	•
C-Suite Experience	•	•	•	•	•	•	•	•	•	•
Brand and Marketing	•								•
Direct Consumer/Retailers	•	•	•				•		•
Government/Regulatory	•				•	•		•		•
Healthcare	•									•
Human Capital/Compensation	•					•	•		•	•
Strategic Planning	•	•		•	•	•	•		•	•
Tech/Digital/Cyber		•	•	•
Other Public Company Board	•	•		•		•	•		•	•

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