Truist Financial : 2023 Corporate Responsibility and Sustainability Report

Truist 2023 Corporate

Responsibility &

Sustainability Report

Published April 2024

Purpose

Inspire and build better lives and communities

Mission

Clients

Provide distinctive, secure, and successful client experiences through touch and technology.

Teammates

Create an inclusive and energizing environment that empowers teammates to learn, grow, and have meaningful careers.

Stakeholders

Optimize long-term value for stakeholders through safe, sound, and ethical practices.

About Truist

Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, insurance, wealth management, payments, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $535 billion as of Dec. 31, 2023. Truist Bank, Member FDIC.

Top 10

U.S. commercial bank

$535B

total assets

~15M

clients

Values

Trustworthy

We serve with integrity.

Caring

Everyone and every moment matters.

One Team​

Together, we can accomplish anything.

Success

When our clients win, ​ we all win.

Happiness

Positive energy​ ​ changes lives.​

Responsible business

Community

Environment and sustainability Teammates

2

Table of contents

A letter from our Chairman & CEO

06  A letter from our Chairman & CEO

Responsible business

07 Responsible business

08 Governance

10 Risk management

12 Stakeholder engagement

14  Cybersecurity and data privacy 15 Ethics and compliance

17  Policies and resources

18  Sourcing and supply chain

20 Clients

24 Financial inclusion and education

Community

28 Community 30 Truist Foundation 32 Truist Charitable Fund

33 Community Reinvestment Act

35 Community support and engagement 39 Truist Community Capital

41 Truist Leadership Institute

42 Teammate volunteerism and workplace giving

44 Disaster relief

Environment and sustainability

45 Environment and sustainability

Teammates

50 Teammates

51 Recruiting and engagement 54 Career momentum

55 Teammate benefits

Responsible business

Community

Environment and sustainability Teammates

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About this report

Scope

Data in this report primarily reflects calendar year 2023, which aligns with Truist's fiscal year. Footnotes indicate any data reflecting a different time period, as well as any updates or new initiatives that occurred in early 2024. This report also contains plans and goals for future reporting and disclosure. Some numbers have been rounded for simplicity.

Reporting frameworks

Truist's approach to reporting and disclosure will generally follow the major environmental, social, and governance reporting frameworks, including:

• Sustainability Accounting Standards Board (SASB)
• Global Reporting Initiative (GRI)
• World Economic Forum (WEF)
• CDP (formerly known as the Carbon Disclosure Project)
• United Nations Sustainable Development Goals (SDGs)
• Task Force on Climate-Related Financial Disclosures (TCFD)

Additional disclosures may be informed by stakeholder engagement and inquiries, peer disclosures and best practices, and evolving disclosure requirements including those established by the major reporting frameworks.

Stakeholder engagement

Truist engages stakeholders to understand their priorities and goals. To see the results of our most recent stakeholder assessment and learn more about how Truist engages with stakeholders, please see pages 12 and 13 of this report.

External verification

Truist has obtained third-party verification of its 2023 Scope 1, Scope 2, and certain Scope 3 category greenhouse gas emissions. The verification statement can be found in our 2023 TCFD Report.

Responsible business

Community

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Disclosure statement

This report covers only Truist's business and does not address the performance or operations of our suppliers, contractors, or partners. Statements regarding Truist's objectives, plans, targets, and commitments are aspirational and may also be based on estimates and assumptions under developing standards that may change in the future; as such, no guarantees or promises are made that they will be met or successfully executed, and actual results may differ, possibly materially.

Furthermore, data, statistics, and metrics included in this report are non-audited estimates, are not necessarily prepared in accordance with generally accepted accounting principles (GAAP), continue to evolve, and may be based on assumptions believed to be reasonable at the time of preparation, but may be subject to revision. Except where noted, the information covered in this report highlights Truist's performance and initiatives in fiscal year 2023. This report has not been externally assured or verified by an independent third party.

This report uses certain terms, including those that GRI or SASB refer to as "materially" consistent with those standards, to reflect the key issues or priorities of Truist or its stakeholders. Used in this context, however, these terms are distinct from, and should not be confused with, the terms "material," "materially," and "materiality" as defined by or construed in accordance with securities or other laws or as used in the context of financial statements and reporting required by laws and regulations. This report, which speaks only as of its date and is not required to be updated, is not comprehensive, and for that reason, should be read in conjunction with our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission (SEC).

This report contains certain forward-looking statements, including statements regarding our corporate responsibility and environmental and governance targets, goals, objectives, commitments, and programs and other business plans, initiatives, and objectives. These statements are typically accompanied by the words "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," "would," "could," or other similar expressions. All such statements are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management's current expectations, estimates, projections, and assumptions. Especially with respect to the matters discussed in this report, these statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Our actual future results, including the achievement of our targets, goals, objectives, or commitments, could differ materially from our projected results as the result of changes in circumstances, estimates that turn out to be incorrect, standards of measurement that change over time, assumptions not being realized, or other risks, uncertainties, and factors. Such risks, uncertainties, and factors include the risk factors discussed in our most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other filings made with the SEC, as well as sustainability targets, objectives, commitments, challenges, assumptions, and circumstances that we are unable to foresee at this time that are outlined in this report or elsewhere. You should consider the forward-looking statements in this report in conjunction with our annual report on Form 10-K and our quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC now and in the future. Truist urges you to consider all of the risks, uncertainties, and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this report. Truist cannot assure you that the results reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects. The forward-looking statements in this report are made as of the date of this report, unless otherwise indicated, and we undertake no obligation to update this report to reflect subsequent events or circumstances.

This report may contain links to other internet sites or references to third parties. Such links or references are not incorporated by reference to this report, and we can provide no assurance as to their accuracy. The use or inclusion of the information is also not intended to represent endorsements of any products or services.

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A letter from our

Chairman & CEO

Every day, Truist teammates strive to fulfill our company's purpose to inspire and build better lives and communities. Our Corporate Responsibility and Sustainability Report, Disclosure Summary, and TCFD Report highlight our progress in 2023.

We remain focused on work that creates long-term value for our clients, shareholders, and teammates. To better serve our clients and our communities, we are streamlining and transforming the company. Our definition of success is simple: when our clients and communities succeed, we succeed.

As a responsible and trustworthy corporate citizen, Truist maintains high standards of ethical conduct, risk management, and governance as we comply with laws, rules, and regulations. We protect assets and data through strong cybersecurity and privacy defenses.

Through volunteerism, professional expertise, and philanthropy, Truist supports projects and initiatives that inspire and build better lives and communities including education and career pathways, affordable housing, access to capital for small business, and financial education for youth and adults. This support includes partnerships with national organizations as well as local organizations that are essential to the communities we serve.

We're committed to building a more sustainable future for our clients, our communities, and our company. Truist takes a balanced and inclusive approach in working alongside clients across industries; we provide sustainable finance products and advisory services to help them achieve their goals.

We continue to make progress on our Net Zero by 2050 goal as well as other sustainability efforts in our governance, planning, risk management, strategy, philanthropy, facilities, operations, and lines of business.

In 2023, external volatility tested our resilience. Yet, throughout the uncertainties of the year, our strength and stability are clear. I am proud of our incredible teammates who have managed through much change with dedication and perseverance. And I am optimistic about the opportunities that lie ahead.

I believe our ability to deliver results for our clients, shareholders, and teammates while remaining true to our purpose is a differentiator. We look forward to continued progress in collaboration with you and with the communities we serve.

Thank you for your partnership in purpose.

Bill Rogers

Chairman & CEO

Responsible business

Community

Environment and sustainability Teammates

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Responsible business

In this section

08 Governance

10 Risk management

12 Stakeholder engagement

14 Cybersecurity and data privacy

15 Ethics and compliance

17 Policies and resources

18 Sourcing and supply chain

20 Clients

24 Financial inclusion and education

Protecting client, shareholder, and teammate interests is important to us. We strive to sustain trust and confidence in our company by safeguarding their resources and investments. We are committed to upholding the highest standards of governance, risk management, and ethical conduct.

This chapter details many ways we protect these interests, including cybersecurity defenses that protect assets and data. A strong enterprise governance and Enterprise Risk Management Framework is supported by management processes that facilitate compliance with laws, rules, and regulations. Our code of conduct equips teammates to make sound decisions and uphold ethical values. Truist continues to cultivate a broad network of third-party suppliers, vendors, and contractors to maximize our value chain.

Responsible business includes our commitment to financial inclusion and building prosperous communities. Truist One checking and savings, and the Truist Confidence account are products that can help clients achieve their financial goals. Specifically, the Truist Confidence account is designed to help clients build a strong financial foundation and is certified by Bank On National Account Standards. Our teammates deliver financial education programs, and we finance and develop affordable housing for low- and moderate-income communities.

In 2023, Truist embarked on a thoughtful transformation aimed at streamlining and strengthening our company. These efforts included simplifying and clarifying our governance structure and risk management organizations. We anticipate increased clarity between responsibilities and lines of defense, stronger oversight and effective challenge, and reduced overlap among committees.

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Governance

Managing enterprise risk requires effective governance. Truist's governance structure includes the Board of Directors and a network of committees designed to oversee risk management including climate-related risks.

Corporate governance

In 2023, Truist began an intentional transformation designed to simplify our organization. As that transformation continues in 2024, Truist is reorganizing certain executive and management committees and related functions in the enterprise.

Truist's Board of Directors remains the company's highest governing body. As such, they oversee corporate governance, enterprise risk management, and compliance. The Board sets the company's goals and establishes a tone at the top for expectations of ethical business practices. Their activities are supported by board and management committees in a structure that provides clear lines of sight for decision-making and accountability.

Truist's Board of Directors is supported by its standing board committees: Board Audit Committee; Board Compensation and Human Capital Committee; Board Executive Committee; Board Nominating and Governance Committee; Board Risk Committee; and Board Technology Committee; as well as the Truist Bank Board Trust Committee. Standing committees are supported by several management committees.

For more information about the board and its activities, please see our Form10-K, pages 17 and 70.

Corporate responsibility, sustainability, and climate risk oversight

The diagram and committee descriptions that follow reflect a 2024 view of the committees that oversee corporate responsibility, sustainability, climate risk, disclosure and reporting, and human capital matters.

Truist Board of Directors

Board Committees

Board Audit Committee

Board Compensation and Human Capital Committee

Board Nominating and Governance Committee

Board Risk Committee

Management Committees

Disclosure Committee

Employee Benefits Plan	Corporate Responsibility &	Enterprise Risk
Committee	Sustainability Committee	Committee
Management Compensation	Contributions Committee	Enterprise Credit Risk
Oversight Committee	Committee

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Board and committees

Truist's Board of Directors oversees corporate responsibility and sustainability programs, enterprise risk including climate-related risk, and corporate responsibility and sustainability disclosures including ESG disclosures. Examples of board activity related to this work include

the decision to announce a goal of achieving Net Zero greenhouse gas emissions by 2050 (Net Zero by 2050). The Board also approves corporate responsibility and sustainability reports prior to publication including this report.

Board Nominating and Governance Committee

This is the primary committee for oversight of corporate responsibility and sustainability matters and ESG performance, including reporting and, along with the Board Audit Committee, reviewing disclosure practices. The Board Nominating and Governance Committee is supported by two management committees with specific corporate responsibility and sustainability oversight:

• Corporate Responsibility & Sustainability Committee- The Corporate Responsibility & Sustainability Committee is composed of internal leaders who guide corporate responsibility related public affairs issues, disclosures and reporting, operational sustainability, and Net Zero by 2050 progress. This committee escalates material issues to the Board Nominating and Governance Committee for further consideration.
• Contributions Committee-The Contributions Committee makes recommendations for the Truist Charitable Fund, which is managed by the Winston-Salem Foundation.

Board Audit Committee

Responsible for periodically reviewing and discussing with management the corporation's controls and procedures with respect to environmental, social, and governance data disclosed by the corporation, including emissions and other climate-related data. The Board Audit Committee is supported by the Disclosure Committee.

• Disclosure Committee-The Disclosure Committee reviews and approves disclosures to investors, including voluntary disclosures like this report and others.

Board Compensation and Human Capital Committee Oversees Truist's human capital strategy, including receiving periodic reports from management on our development and recruitment planning for key executives. The committee also oversees initiatives such as employee well-beingand engagement, and human capital metrics and reporting, unless otherwise addressed by the Board.

Board Risk Committee

Oversees climate-related risks that are presented by Truist's Climate Risk Management team quarterly.

• Enterprise Risk Committee-Serves as the enterprise- wide risk governance body responsible for broad strategic oversight of all risk types and brings forward key risk topics for awareness and discussion. The committee is also chartered to focus on a fully integrated view of risks across Truist and develop corporate-wide strategies for identifying, assessing, controlling, measuring, monitoring, and reporting risk at the enterprise level.
• Enterprise Credit Risk Committee-Provides approval of credit risk- and portfolio management-related policies and practices, monitoring of various credit portfolios, and governance and review for other credit risk- and portfolio management-related activities.

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Risk management

Truist's Risk Management Organization is responsible for oversight, measurement, monitoring, and reporting of risk. Our chief risk officer leads these functions and has direct access to the Board of Directors and senior leadership to communicate risk issues and oversee performance of risk management activities throughout the bank.

Prudent risk management allows us to optimize the risk/return balance while maintaining high standards for safe, sound, and ethical practices. Truist maintains a robust Enterprise Risk Management Framework and has processes and procedures in place for identifying, assessing, and escalating risk-including sensitivity analysis, scenario testing, and stress testing. Truist assesses risk

in accordance with regulatory expectations and our own purpose, mission, and values.

M	ar
ket

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Risk management culture

Truist's enterprise risk management framework is supported by four cultural drivers:

• Tone at the top-Built on our Code of Ethics, we communicate our organizational values, recognize appropriate behavior, and monitor/assess our risk culture.
• Effective challenge-We encourage open communication, transparency, and escalation across the three lines of defense as well as with senior leadership and the Board of Directors.
• Risk escalation and individual accountability- Teammates are expected to understand and manage risk in daily decision making through timely identification and escalation.

Reporting & analytics

c i g e t a r

t S

Measurement & monitoring

		uni	cat
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C		aini
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Culture

Risk appetite

Identification & assessment

C o

m

p l i a n c e

• Incentive and compensation-We emphasize appropriate behavior and conduct by aligning training, performance management, and incentive compensation.

For more information on risk management culture, please see our 2023 TCFD Report.

Three lines of defense

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Truist's chief risk officer also chairs the Enterprise Risk Committee, which provides an integrated view of our eight primary risk types:

•	Strategic	•	Market
•	Compliance	•	Operational
•	Credit	•	Technology
•	Liquidity	•	Reputational

Truist's Enterprise Risk Management Framework is supported by three lines of defense that safeguard our business from potential issues across eight primary risk types.

First Line-Business units are responsible for ownership, strategy, execution, and accountability for identifying, assessing, controlling, mitigating, and communicating risks associated with business processes and decisions. Specifically, business units own the risks associated with their processes and decisions. In 2023, and prior years, Truist's business unit risk managers served as dedicated partners who aided their respective business units in completing risk management lifecycle activities. These roles were updated and renamed for 2024.

Second Line-Truist's Risk Management Organization provides independent oversight and challenge of risk management/taking activities of the first line of defense; includes governance, guidance, establishing policy, and monitoring.

Third Line-Audit provides assurance that risks are properly governed, identified, assessed, and managed by the first and second lines of defense.

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