exo-is/governance-reporting-on-listed-companies huggingface dataset:
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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Common Stock Treasury Stock Accumulated
Other
Additional Comprehensive Total
Dollars in millions, except per share data; Paid-in Retained Net (Loss) Noncontrolling Stockholders’
shares in thousands Amount Shares Capital Earnings Amount Shares Income Interests Equity
Balance as of June 30, 2020 $ 159 158,741 $ 1,137 $ 3,567 $ (3,315) (32,543) $ (640) $ — $ 908
Net earnings — — — 710 — — — 9 719
Other comprehensive (loss) income — — — — — — 94 — 94
Dividends to Clorox stockholders
— — — (564) — — — — (564)
($4.49 per share declared)
Dividends to noncontrolling interests — — — — — — — (26) (26)
Business combinations including
— — — — — — — 198 198
pu
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
YEARS ENDED JUNE 30
2023 2022 2021
DOLLARS IN MILLIONS
Operating activities:
Net earnings $ 161 $ 471 $ 719
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization 236 224 211
Stock-based compensation 73 52 50
Deferred income taxes (149) 5 (32)
Goodwill, trademark and other asset impairments 445 — 329
Settlement of interest rate derivative contracts — 114 —
Other 38 19 10
Changes in:
Receivables, net (13) (84) 82
Inventories, net 58 (18) (282)
Prepaid expenses and other current assets (1) 16 (30)
Account payable and accrued liabilities 157 (47) 311
Operating lease right-of-use assets and liabilities, net 1 (1)
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
YEARS ENDED JUNE 30
2023 2022 2021
DOLLARS IN MILLIONS
Financing activities:
Notes and loans payable, net (188) 237 —
Long-term debt repayments — (1,405) —
Long-term debt borrowings, net of issuance costs paid — 1,085 —
Treasury stock purchased — (25) (905)
Cash dividends paid to Clorox stockholders (583) (571) (558)
Cash dividends paid to noncontrolling interests (15) (15) (31)
Issuance of common stock for employee stock plans and other 33 5 103
Net cash used for financing activities (753) (689) (1,391)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash — (6) 12
Net increase (decrease) in cash, cash equivalents, and r
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Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
AUDITOR STATEMENT
Report of Independent Registered Public Accounting Firm on Condensed
Financial Statements
To the Stockholders and the Board of We also have audited, in accordance with the standards
Directors of The Clorox Company of the Public Company Accounting Oversight Board
(United States), the effectiveness of The Clorox Company’s
internal control over financial reporting as of June 30,
We have audited, in accordance
2023, based on criteria established in Internal Control
with the standards of the Public
- Integrated Framework issued by the Committee of
Company Accounting Oversight
Sponsoring Organizations of the Treadway Commission
Board (United States), the
(2013 framework) and our report dated
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AUDITOR STATEMENT
Independent Accountants’ Review Report
To the Management of We are required to be independent of Clorox and to
The Clorox Company meet our other ethical responsibilities, in accordance
with the relevant ethical requirements related to our
review engagement. Additionally, we have complied
We have reviewed The Clorox
with the other ethical requirements set forth in the Code
Company’s (“Clorox”) accompanying
of Professional Conduct and applied the Statements on
Schedule of Selected Environmental
Quality Control Standards established by the AICPA.
Indicators and Schedule of
Selected Quantitative Performance Indicators included The procedures we performed were based on our
in Appendix A (the
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ESG PERFORMANCE NOTES
APPENDIX A:
Schedule of Selected Environmental Indicators for the year ended December 31, 2022
INDICATOR NAME UNIT VALUE CRITERIA REPORTING BOUNDARY
Scope 1 greenhouse gas (GHG) Metric tons 65,205
emissions1, 2, 3, 4 carbon dioxide
equivalent
Scope 2 GHG emissions, location-based- (tCOe)5 173,925
method (LBM)2, 4, 6 2
Scope 2 GHG emissions, market-based- 26,682
method (MBM)2, 4, 7
Combined Scope 1 + Scope 2 MBM 91,887
emissions1, 2, 3, 4, 7
The World Resources Institute/World Business The reporting boundary includes all
Council for Sustainable Development (WRI/ global facilities and offices under the
Change in Scope 1 GHG emissions from Percent (%) -13%
2020 baseline year8 WBCSD) Gr
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Schedule of Selected Quantitative Performance Indicators for the year ended June 30, 2023 (continued)
INDICATOR NAME UNIT VALUE CRITERIA REPORTING BOUNDARY
Workforce Female managers, 49% Global female managers, divided by the total The reporting boundary for female
Representation20, 21, 22 global number of global managers. managers and female senior executives
includes all U.S. and global employees,
Female senior 50% both active and part-time employees
Global female senior executives, divided by the
executives, global (excluding interns, contractors, and fixed-
total number of global senior executives.
term employees).
Percent (%)
People of Color 34% U.S. People of Color (POC)23 managers, divided The rep
Keyword: governance
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
HOW WE CREATE VALUE
To achieve our business goals, we need to leverage the unique foundational attributes of our company, manage external
factors and optimize our relationships with important partners. We’re successful when we create value for our company,
employees, consumers, retail and nonretail customers, investors, communities, suppliers and other business partners, the
environment and society.
1 INPUTS*
Total assets Raw material costs and other expenses Industry collaborations
Employees Cost-savings program Virgin raw materials (including
renewable resources)
Investments, including five-year, 8,700 global employees
$500 million strategic investment in Reused or recycled materials
Professional devel
Keyword: governance
• Strong Governance the right product at the right time in the
• Innovative consumer products
right place
Our Values: and services
• Do the right thing • Diverse health, well-being and Meaningful analytics and insights
• Put people at the center household essentials portfolio with integrated data across systems
• Play to win • Retail and professional and functions
customer base
Functions: Inclusive culture
• Best-in-class delivery of end-to-
• Finance
end supply chain solutions Diverse representation
• Enterprise Data and Tech
• U.S. focus with presence in key
• Legal, Government Affairs and Engaged employees
global markets
Internal Audit
• Enterprisewide strategy integrating Seamless, tech-enabled employee
• Marketing
ESG priorities experience
• People (Huma
Keyword: governance
Innovation Strong Governance
Partnerships (industry, (ESG pillars)
Employer brand ESG, supply chain)
reputation
Financial Innovation Operations Workforce Business Partners Environment Internal External
* Based on principles of integrated reporting, inputs refers to what goes into the development of an organization’s key products and services, including byproducts and
waste (such as emissions).
** Based on principles of integrated reporting, outputs refers to what’s generated by a company’s operations, including both positive and negative factors. We focus on
material issues and evaluate the opportunities and risks of our actions.
*** Outcomes are the internal and external consequences (positive and negative) for the capitals (financial, manufactured, intellectual, hum
Keyword: governance
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
ESG MATERIALITY
ESG is strategically important to our business because it and peer ESG efforts. We developed an initial prioritized
creates value for all our stakeholders and is essential to list of topics, then conducted interviews with internal and
delivering on our purpose and values. We’re committed external stakeholders to share their perspectives and
to focusing on ESG topics that are most important to our validate our findings. We then refined the list based on
business and our stakeholders, so for most of fiscal year their input, resulting in a prioritization of ESG topics.
2023 we engaged a third party in an ongoing stakeholder
Finally, we referenced these findings against our existing ESG
liste
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• Ethical and transparent governance and business practices
• GHG emissions
• Employee inclusion, diversity, equity and allyship
TIER 1
• Employee health, safety and well-being
• Public health
HIGHER PRIORITY
• Human and labor rights in the supply chain
TIER 2
• Responsible marketing and advertising
• Employee engagement and development
• Resilience (climate, natural disasters, public health)
• Renewables and energy use
• Water stewardship TIER 3
• Deforestation and biodiversity
• Community impact
• Operational and supply chain waste
HIGH PRIORITY
• Animal welfare and testing • Consumer engagement on sustainability
• Tax and economic contribution • Advocacy and public practices
• Cybersecurity, data security and privacy • Product accessibility and affordability
41 | Clorox |
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Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
ESG
PROGRESS KEY
Achieved: Met IGNITE goal
REPORTING
Achieved/ongoing: Met IGNITE goal this fiscal year; commitment to
continue meeting same goal annually through 2030
On track: Meeting internal milestones to achieve goal
In progress: Taking action to achieve goal or set targets; however,
internal milestones have not yet been met
HEALTHY LIVES
PERFORMANCE
IGNITE ESG GOAL/TARGET (metrics are global and as of June 30, 2023, STATUS PROGRESS
unless stated otherwise)
Employee well-being: Maintain our recordable incident
Achieved <1.0 RIR every year since goal was
rate of <1.0 with a comprehensive safety management Achieved/ongoing
announced. In FY23, RIR was 0.55.
effort striving for an injury-free workplaceD
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CLEAN WORLD
PERFORMANCE
IGNITE ESG GOAL/TARGET (metrics as of Dec. 31, 2022, STATUS PROGRESS
unless stated otherwise)
50% combined reduction in virgin plastic and fiber
packaging by 2030, per case of product sold vs. 9% reduction (19% of goal) In progress
2018 baselineD5
100% recyclable, reusable or compostable packaging 88% of packaging is recyclable, reusable or
In progress
by 2025D6 compostable
Double post-consumer recycled plastic in packaging by
10% of plastic used in packaging is PCR In progress
2030 (+50% by 2025) vs. 11% 2018 baseline
100% global facilities zero waste to landfill by 2030 Plants:
(plants by 2025)D7
80% of plants, 52% of facilities are ZWtL, as of
On track
June 30, 2023 Facilities:
Keyword: governance
GOVERNANCE
PERFORMANCE
IGNITE ESG GOAL/TARGET (metrics are global and as of June 30, 2023, STATUS PROGRESS
unless stated otherwise)
Executive compensation awards tied to elements of Executives’ individual performance assessments
our ESG goals for members of the Clorox Executive and short-term incentive awards are tied to ESG
Achieved/ongoing
Committee, including for the CEO goal achievement. Additional detail disclosed in the
company’s proxy statement.
43 | Clorox | 2023 Integrated Annual ReportCEO IGNITE Growth Innovative Reimagined Evolving Purpose Our Transparent Financial Value ESG
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
ESG REPORTING
As part of our commitment to tran
Keyword: governance
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
SASB: HOUSEHOLD AND PERSONAL PRODUCTS STANDARDD17 (continued)
SASB
TOPIC SASB ACCOUNTING METRIC REFERENCE LOCATION OR RESPONSE*
CODE
Environmental and Social Amount of palm oil sourced, CG-HP-430a.1 2,742 metric tons of palm oil
Impacts of Palm Oil percentage certified through the and palm oil ingredients (palm
Supply Chain Roundtable on Sustainable Palm Oil content only) Clorox purchased
(RSPO) supply chains as for its domestic and international
(a) Identity Preserved, businesses in CY22.
(b) Segregated,
27% of palm oil and palm oil
(c) Mass Balance, or
ingredients (palm content only)
(d) Book & Claim
purchased has been third-party
certified through the RSPO supply
chains in CY22. More than 99% is
certi
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ESG REPORTING
TCFD FRAMEWORK
CORE TCFD
THE CLOROX COMPANY DISCLOSURE
ELEMENT DISCLOSURE
Governance Board oversight The full board of directors oversees matters related to environmental, social and governance
of climate- issues (including climate change and environmental sustainability policies, programs, goals
related risks and and progress), as well as targets, standards and other metrics used to measure and track ESG
opportunities performance and progress. The board participates in regular (at least annual) updates on ESG
topics, including climate, and as part of its enterprise risk management oversight role, oversees the
company’s climate risks, which have been identified as long-term risks for the co
Keyword: governance
Pursuant to its charter, the Nominating, Governance and Corporate Responsibility Committee of the
board, comprised exclusively of independent directors, supports the board in reviewing, monitoring
and engaging management — typically quarterly — on the development of climate change and
environmental policies, programs, goals and progress, and regularly reviewing such matters with
the board.
In fiscal year 2022, we refreshed our board committee charters to provide further clarity on each
committee’s roles and responsibilities on ESG oversight and to ensure coordinated coverage
of ESG issues across the board and committees. Although the NGCRC has historically overseen
the company’s sustainability policies, the NGCRC charter now explicitly includes oversight of the
company’s climate change and
Keyword: governance
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TCFD FRAMEWORK (continued)
CORE TCFD
THE CLOROX COMPANY DISCLOSURE
ELEMENT DISCLOSURE
Strategy Climate-related • Transitional risks associated with extended producer responsibility policies and regulations that
(cont.) risks and make producers responsible for the collection, recycling and safe disposal of products after use:
opportunities medium-term (2-5 years). The estimated financial impact to Clorox from such regulations could
(cont.) potentially be in the range of $2 million to $5 million per year in the medium term; $15 million to
$20 million in the longer term if regulations are expanded nationally. These programs often include
fees or taxes paid by manufacturers or importers to fund recycling and
Keyword: governance
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TCFD FRAMEWORK (continued)
CORE TCFD
THE CLOROX COMPANY DISCLOSURE
ELEMENT DISCLOSURE
Strategy Impact of • Low carbon energy sources and material supply chains that cannot keep up with growing
(cont.) climate industry demand (e.g., for RSPO-certified palm products, postconsumer resin for packaging and
risks and renewable energy to power raw material supply chains). This is a risk with the potential to drive up
opportunities costs or limit our ability to meet our environmental commitments or bring sustainable innovation
on businesses, to market.
strategy and
• More frequent and extreme weather events causing supply chain disruption and leading to
financial
health and sanitation issues due to flooding and
Keyword: governance
Management identifying and strong governance practices help drive continued improvement of established processes. The
managing ERM Steering Committee oversees the global program subject to oversight by the board or any
climate risks applicable board committees. The steering committee is made up of the following: executive
vice president and chief legal officer (executive co-sponsor for ERM); executive vice president
and chief financial officer (executive co-sponsor for ERM); group president — Care & Connection;
and group president — Health & Hygiene. The steering committee proactively identifies, assesses,
prioritizes and continuously manages enterprisewide risks, including ESG and climate change risks
among other top enterprise risks. A supplementary ERM working group provides addit
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TCFD FRAMEWORK (continued)
CORE TCFD
THE CLOROX COMPANY DISCLOSURE
ELEMENT DISCLOSURE
Risk Process for Based on these definitions, we rate potential risk impacts from very low to very high. A substantive
Management identifying and risk is one where the impact is medium to very high across a number of criteria and, if that risk
(cont.) managing were to materialize, may disrupt our ability to operate our business.
climate risks
In 2022, ESG, including climate change, was one of the top risks identified by the company. While
(cont.)
the time horizon (i.e., decades) may be longer than other risks, climate change remains an
enterprise risk due to the degree to potentially impact the organization and our opera
Keyword: governance
experts from product stewardship, R&D, procurement, corporate governance, government affairs,
as well as the climate/water/energy lead, among others. This group provides thought leadership
and expertise to business units and leads the measurement, tracking and progress against
our ambitious ESG goals, including climate. The team is led by the vice president and head of
sustainability and reports to the ESG executive committee chaired by the executive vice president
— chief legal officer.
By having an ESG steering team as well as executive oversight, we’re able to drive accountability
and better integrate all aspects of ESG into our business decisions. That means we can have
a bigger impact as well as clearer and more consistent messaging to all our stakeholders —
customers, suppliers, investors, employees and m
Keyword: governance
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TCFD FRAMEWORK (continued)
CORE TCFD
THE CLOROX COMPANY DISCLOSURE
ELEMENT DISCLOSURE
Metrics and Metrics used to We track, manage and disclose our performance in several areas related to climate risk, including
Targets address climate GHG emissions, GHG emissions intensity, energy consumption, energy intensity, water withdrawn,
risks and water intensity and water withdrawn from areas of high baseline water stress.
opportunities
GHG emissions were estimated in accordance with The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (Revised Edition).
See CDP Climate Change Report sections C4-C9; Clorox website: Taking Climate Action
Scope 1, 2 and 3 • Scope 1: 65,205 metric tons of CO2e
Keyword: governance
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TCFD FRAMEWORK (continued)
CORE TCFD
THE CLOROX COMPANY DISCLOSURE
ELEMENT DISCLOSURE
Metrics and Energy 703,893 megawatt hours for CY22, 730,098 megawatt hours for CY21 and 762,539 megawatt
Targets consumptionD9 hours for CY20.
(cont.)
See Clorox website: Clean World — Energy
Energy targetsD9 100% electricity from renewable energy in U.S. and Canada in 2022. ✪
• Renewable energy goal was first achieved in January 2021. Maintained to date and expected to be
maintained going forward.
Drive continued energy efficiency improvements that achieve or exceed our 2018 baseline levels.
• 9% less energy use per case of product sold in CY22 vs. CY18 base year.
See FY23 Integrated Annual Report, IGNITE ESG progress
Keyword: governance
Message Strategy Fueled Experiences Work Portfolio in Action Performance Governance Statements Creation Reporting About
ESG REPORTING
UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
✪
IGNITE GOAL. For a comprehensive update on our IGNITE ESG goals, metrics and endnotes, see pages 42-43 and 55-56.
Visit our ESG Data Hub at https://clorox.metrio.net to view progress over time.
TARGETS AND ACTIONS FY23 OUTCOMES AND IMPACTS
Goal 3: Good Health and Well-Being — Ensure Healthy Lives and Promote Well-Being for All at All Ages
Good health and well-being is embedded in our purpose • Number of Clorox wellness-related product categories in
✪
to champion people to be well and thrive every single day, U.S. homes decreased 9%, or by 11 million vs FY19 baseline.
including the employees, consumers and communities we
• Donated nearly $45 mil
Keyword: governance
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UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (continued)
TARGETS AND ACTIONS FY23 OUTCOMES AND IMPACTS
Goal 10: Reduced Inequalities — Reduce Inequality Within and Among Countries
Clorox values and promotes equal employment opportunity Representation:D11
and inclusion and does not tolerate discrimination, intimidation
• Clorox was led by a woman, Linda Rendle, who assumed the
or harassment among employees or business partners,
role of CEO in 2020.
consistent with the United Nations Global Compact Principles
on Human Rights. These expectations are outlined in our Codes • Women represented 50% and people of color 25% of board.
of Conduct and other policies and must be adhered to by all Two of our board com
Keyword: governance
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UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (continued)
TARGETS AND ACTIONS FY23 OUTCOMES AND IMPACTS
Goal 12: Responsible Consumption and Production — Ensure Sustainable Consumption
and Production Patterns
We set ambitious targets to reduce plastic and other waste • 9% combined virgin plastic and fiber packaging reduction,
by 2030. These efforts are in conjunction with long-standing per case of product sold vs. 2018 baseline, as of
CY22.✪D5
efforts to reduce our waste impacts across our value
• 88% of packaging is recyclable, reusable or compostable, as
chain, from sourcing our raw materials to within our own
of CY22.
✪D6
manufacturing and operations, as well as during consumer
use. We are also focusin
Keyword: governance
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ESG ENDNOTES
THROUGHOUT REPORT
D6 P ercentage that is recyclable, reusable and/or
compostable: Data has been calculated using the Ellen
Reviewed by Ernst & Young LLP. Refer to pages 37-39 for the MacArthur Foundation’s recyclability assessment tool
Review Report and exhibit A: The Clorox Company Schedule and Recycling Rate Survey, and the Association of Plastic
of Selected Quantitative Performance Indicators for the Year Recyclers Design Guide for Plastics Recyclability. Recyclability
Ended December 31, 2022, or June 30, 2023. reporting is based on CY22 U.S. and LATAM sales data and is
✪ estimated to reflect global results for this metric.
IGNITE ESG goal
HEALTHY LIVES D7 Zerowastetolandfill: Where in
Keyword: governance
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ESG ENDNOTES
D9 Energy: Through our first VPPA and other market purchases the company as a good place to work. Inclusion index and
of RECs, Clorox met our 100% renewable electricity goal employee engagement data were measured through
beginning in January 2021, four years ahead of the original an FY23 engagement survey administered by Perceptyx
target date. Our first VPPA for 70 megawatts was executed between February and March 2023, and 7,053 employees
in 2019 and began producing renewable energy for Clorox in participated. Perceptyx’s Fortune 500 benchmark is
January 2021. Our second VPPA for 47 MW was executed in comprised of 102 companies and 8.1 million survey
April 2022 and began producing renewable
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ABOUT THIS
REPORT
CURRENT PRIORITIES THIRD-PARTY ESG FRAMEWORKS
The Clorox Company’s integrated annual report highlights This year’s report has been developed in alignment with
our financial and ESG performance. Unless otherwise the Sustainability Accounting Standards Board’s Household
noted, fiscal year financial performance is presented in and Personal Products standard, the Task Force on
accordance with GAAP in the U.S., which include principles Climate-related Financial Disclosures and the UNGC’s
for determining materiality related to financial reporting. Ten Principles. We also disclose how our priority ESG
For any non-GAAP financial information, we have provided initiatives support the U.N. Sustain
Keyword: governance
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SHAREHOLDER
INFORMATION
STOCK LISTING AND NUMBER OF RECORD HOLDERS
The Clorox Company’s common stock is listed on the New York Stock
Exchange, identified by the symbol CLX. As of July 25, 2023, the number
of record holders of Clorox’s common stock was 8,194.
TRANSFER AGENT, REGISTRAR AND DIVIDEND DISBURSING AGENT
Inquiries relating to shareholder records, change of ownership, change
of address and the dividend reinvestment/direct stock purchase plan
should be sent to:
COMPUTERSHARE
P.O. Box 43078
Providence, RI 02940-3078
COMPARATIVE STOCK PERFORMANCE
Overnight correspondence should be sent to:
The graph below compares the cumulative total shareholder return of
Clorox’s common stock for the last five fis
Keyword: bribe
submitted to the Ethics Line online or through a Code of Conduct. approach to bribery and corruption.
call center that operates 24 hours a day, seven days
Anti-Corruption and Anti-Bribery Anti-Money Laundering
Capital One’s culture is built on two core values: a week. Ethics Line complaints may be submitted
Excellence and Do the Right Thing. anonymously and phone calls are not recorded.
Our Code prohibits associates from engaging in Capital One is committed to upholding all
Each year, associates are required to complete a
bribery or corruption of any type and requires applicable laws and regulations relating to
To promote these values, our Code of Conduct
30-minute interactive computer-based training
disclosure and written pre-approval for gifts or Anti-Money Laundering (AML), combating
(Code) memorializes Capital One’s com
Keyword: bribe
corruption and anti-bribery training annually.
guidance, practical information and resources
or to our Ethics Office. Raising concerns within implementation. Additionally, the Board receives
that help us enhance our relationships with our
Capital One does not prevent associates from Capital One also has an executive dedicated to AML risk reporting on a regular basis.
customers, each other and all of the people that
reporting the same concerns to law enforcement our Anti-Corruption program, who reports to the
Capital One also maintains a comprehensive
play a role in Capital One’s success.
or the relevant government entity if there is a Chief Compliance Officer. Capital One instituted
AML training program to ensure appropriate
The Board reviews and approves our Code. T
Keyword: bribe
he suspected or potential violation of law. Further, an Anti-Bribery and Anti-Corruption Standard,
personnel have the relevant knowledge on
Ethics Office, which is managed by the Chief Capital One prohibits retaliation against any which requires associates to comply fully with all
applicable aspects of applicable laws and
Ethics Officer, has day-to-day responsibility for individual for making good faith claims regarding applicable anti-bribery laws, including the Bank
regulations, and underlying policies, procedures
administering our Code and managing Capital possible violations of law, our Code or other Bribery Act and the Foreign Corrupt Practices Act.
and processes needed to perform their risk
One’s Ethics program. In addition, the Ethics Company policies. Capital One also prohibits This standard, which
Keyword: corruption
submitted to the Ethics Line online or through a Code of Conduct. approach to bribery and corruption.
call center that operates 24 hours a day, seven days
Anti-Corruption and Anti-Bribery Anti-Money Laundering
Capital One’s culture is built on two core values: a week. Ethics Line complaints may be submitted
Excellence and Do the Right Thing. anonymously and phone calls are not recorded.
Our Code prohibits associates from engaging in Capital One is committed to upholding all
Each year, associates are required to complete a
bribery or corruption of any type and requires applicable laws and regulations relating to
To promote these values, our Code of Conduct
30-minute interactive computer-based training
disclosure and written pre-approval for gifts or Anti-Money Laundering (AML), combating
(Code) memorializes Capital One’s commitment to
cour
Keyword: corruption
corruption and anti-bribery training annually.
guidance, practical information and resources
or to our Ethics Office. Raising concerns within implementation. Additionally, the Board receives
that help us enhance our relationships with our
Capital One does not prevent associates from Capital One also has an executive dedicated to AML risk reporting on a regular basis.
customers, each other and all of the people that
reporting the same concerns to law enforcement our Anti-Corruption program, who reports to the
Capital One also maintains a comprehensive
play a role in Capital One’s success.
or the relevant government entity if there is a Chief Compliance Officer. Capital One instituted
AML training program to ensure appropriate
The Board reviews and app
Keyword: corruption
roves our Code. The suspected or potential violation of law. Further, an Anti-Bribery and Anti-Corruption Standard,
personnel have the relevant knowledge on
Ethics Office, which is managed by the Chief Capital One prohibits retaliation against any which requires associates to comply fully with all
applicable aspects of applicable laws and
Ethics Officer, has day-to-day responsibility for individual for making good faith claims regarding applicable anti-bribery laws, including the Bank
regulations, and underlying policies, procedures
administering our Code and managing Capital possible violations of law, our Code or other Bribery Act and the Foreign Corrupt Practices Act.
and processes needed to perform their risk
One’s Ethics program. In addition, the Ethics Company policies. Capital One also prohibits This standard, which incorporates the gui
Keyword: tax
charitable giving and local community partnerships. communities. Through New Markets Tax Credits, not-for-profit lending and
mission-driven agency financing in commercial real estate, we’re investing
Our national auto lending business provides consumer-focused digital
in workforce development, community services, affordable housing, food
tools allowing car buyers to find and pre-qualify for financing online
security and access to healthcare, which has contributed significantly to
before going to a dealership. Our dealer-focused solutions serve
our longtime industry leadership as a community development lender.
the needs of automobile dealers nationwide and offer flexible credit
structures to meet their unique needs.
11 | About | Business OverviewEnvironmentalABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
ENVIRONMENTAL
Sustaina
Keyword: tax
Tax Credit Program
Our Commercial Bank has a dedicated The renewable energy tax credit program is a
Sustainable Finance* team that helps address federal initiative that encourages investments
the risks and opportunities that a changing in renewable energy projects with a tax credit
environmental landscape creates for our that provides an incentive for development and
business and for our clients. construction of renewable energy projects.
Our Commercial Bank has led Capital One’s Capital One utilizes two energy tax credits:
investment in renewable energy financing and
The production tax credit: Enacted as
green commercial real estate financing through 1
part of the Energy Policy Act of 1992,
Fannie Mae’s Green Financing programs and
this tax c
Keyword: tax
The investment tax credit: Created as
Finance Team finances energy efficiency 2
part of the Energy Policy Act of 2005,
improvements to state and local government
this tax credit supports solar project organization Frontier Group. In turn, this It focuses on utility-scale projects, defined as
facilities. Many of these projects reduce public
development among other technologies. increase in solar and wind electricity has renewable energy projects that produce 10 mega-
sector energy and water usage.
enabled renewables to become the second watts or more of energy, that benefit from the
Our Commercial Bank also participates in a Over the past decade, these tax credit most prevalent electricity source in the United support of investment tax credits for solar proje
Keyword: tax
number of sustainability-linked loans structured programs have helped the renewable energy States in 2020, according to the U.S. Energy and production tax credits for wind projects.
to incentivize the achievement of certain ESG industry to nearly quadruple the generation Information Administration.
Since its inception, Capital One has invested
targets such as lowering GHG emissions. capacity of wind and solar projects in the
Since it was established in 2014, Capital One’s capital across renewable energy projects to
United States, according to a report by
Commercial Bank Alternative Energy Tax Credit support development and construction of new
Environment America Research and Policy
* Any references to “sustainable finance” in this report are intended Team serves the renewables industry by making renewable assets with electricity generating
Center and the nonpartisan research
as references to
Keyword: tax
the internally defined criteria of Capital One only tax equity investments to receive tax credits. capacity across several U.S. states.
and not to any jurisdiction specific regulatory definition.
25 | Environmental | Sustainable FinanceSocialABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
SOCIAL
Human Capital
Named No. 9 in Fortune’s 100 Best Companies to
Work For in 2021, we are honored to be recognized
as an employer of choice through our critical work
on behalf of our associates.
27 | Social | Human CapitalABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Our associates take pride in driving our mission very different person to person. That’s why
to Change Banking for Good and fueling their inclusivity is at the forefront of our design. It’s 2021 Workplace Awards • Fortune
own professional growth through learning in our DNA to l
Keyword: tax
may face challenges accessing capital and of low-income housing tax credits.
acquiring land. They may have less access to To improve veterans’ access to affordable
READ THE FULL STORY
skill training in affordable housing development housing, Veterans Village in Carson, CA, offers
or a network of peers to offer support and
share resources. These barriers often hinder
their ability to pursue multiple development
opportunities and grow their businesses.
In an effort to support developers of color
in the real estate development industry,
Capital One committed to provide $1 million
in grant funding to Local Initiatives Support
Corporation (LISC) and $500,000 to the Low
Income Investment Fund (LIIF).
READ THE FULL STORY
62 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APP
Keyword: tax
made a $17 million low-income housing tax
credit equity investment for the construction
of Castle Gardens.
63 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Small Business
Small businesses are a critical component of local
economies across the country, driving job growth and
innovation and employing nearly half of the nation’s
private workforce.
Through investments in diverse partners and suppliers
and relationships with community organizations
assisting small businesses, we’re committed to
supporting underserved business owners through
a focus on uniting resources that provide access to
capital, capabilities and connections.
64 | Social | Community Engagement and Social ImpactABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Supplier
Keyword: tax
Capital One’s New Markets Tax Credit (NMTC)
than two million individuals in 300 communities
team provided $13 million in financing for the
across the country through its 90 local affiliates.
project as part of the larger Capital One Impact
Initiative. The Empowerment Center includes READ THE FULL STORY
Ready, Set, Bank: Empowering Capital One joined forces with the National
Council on Aging (NCOA) to offer virtual
Older Adults to Bank Online
financial well-being workshops through its
In an effort to enable as many people as Ready, Set, Bank program to help older adults
possible to safely bank online, Capital One has across America feel empowered to bank online.
provided resources to ensure people have the
READ THE FULL STORY
necessary tools to confidently manage their
Keyword: tax
regulation, privacy, tax, technology, cybersecurity,
for technology peers.
expenditures through a voluntary associate-
employment, community development lending
funded Political Action Committee (PAC). The
and consumer protection. Legislation and
Center for Political Accountability and the
regulation touch all aspects of the Company,
Zicklin Center for Business Ethics Research
and often take years of planning, dialogue and or corporate funds in support of or opposition to offices. Capital One does not contribute to
at The Wharton School of The University of
cultivation to develop and implement. Thus, any ballot measures. presidential or judicial candidates.
Pennsylvania has consistently recognized
Capital One believes in engagement throughout
Capital One for its c
Keyword: governance
GOVERNANCE
REPORTTable of Contents
INTRODUCTION ENVIRONMENTAL SOCIAL GOVERNANCE
A Message fromRich Fairbank 4 Climate Risk Management 17 Human Capital 27 Corporate Governance and
ESG Oversight 85
About this Report 6 Greenhouse Gas Emissions 18 Workplace Diversity,
Inclusion and Belonging 32 Risk Management 91
Consumption and Waste Reduction 20
ABOUT CAPITAL ONE Consumer Well-Being and Business Ethics and
Sustainable Finance 25
Financial Inclusion 42 Responsible Business Practices 95
Our Approach to ESG 7
Community Engagement and Political Activity 97
Company Profile 10
Social Impact 48
Business Overview 11
Privacy and Data Security 82 APPENDIX
SASB Disclosures 101
TCFD Disclosures 103
GRI Disclosures 105AboutABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPE
Keyword: governance
Governance (ESG) report are not new to Capital One. For successful economy that works for everyone. What we do
A Message from
years, the components that underpin ESG have been key at Capital One is a universal enabler of people’s hopes and
RICH FAIRBANK to how we manage risk and have been integrated into dreams. Money is connected to just about everything, and
how we invest in our businesses, measure our impact and therefore banks make a huge difference in people’s lives.
manage the Company. We recognize and prioritize our role in Money is emotional, and it’s personal.
Capital One’s Founder, Chief Executive Officer
protecting the environment, caring for the well-being of our
Today, Capital One serves over 100 million customers, each at
customers, ass
Keyword: governance
4 | About | A Message from Rich FairbankABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
cards deliver exceptional value, and our bank products feature from different backgrounds and experiences. We continue to students, was honored as Virginia’s most outstanding
no minimum balances and no fees. We work with entrepreneurs support increased representation through our recruiting efforts, corporate volunteerism program.
and business owners to help them grow and invest in their including expansion of our candidate pipeline to maximize
As part of our five-year, $200 million Impact Initiative, we
dreams. In 2021, customer advocacy reached the highest levels exposure to underrepresented groups. In 2021, we saw all-time
facilitated over $70 million in grants in 2021. We supported
in our history and customer attrition remained
Keyword: governance
5 | About | A Message from Rich FairbankABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
The ESG disclosures contained within this ESG emissions as noted herein, has not been audited Forward Looking Statements
About this Report
Report are voluntary and readers should not or assured. The audit of certain metrics used
Certain statements in this ESG Report made by
assume any information contained herein is herein, including GHG emissions, were measured
Capital One may constitute forward-looking
Capital One’s Environmental, Social, and material as that term is defined under federal based on the methodology in place as of the statements, including those that discuss, among other
Governance (ESG) Report covers the period securities laws or any other federal or state date completed, and such methodology may be things: strate
Keyword: governance
6 | About | About this ReportABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
About Capital One
ABOUT CAPITAL ONE
Our Approach to ESG
At Capital One, we embrace the idea that we do well
as a company by doing good in our communities. We
recognize the real impact we can have as a financial
institution to enable the individuals and communities
we serve to thrive in today’s rapidly-evolving world,
while also addressing key issues facing society.
7 | About | Our Approach to Environmental, Social & GovernanceABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
In developing our approach to ESG, we value decarbonization. Along with technological
the input and insights of our investors, our advances, government policy and changing
customers, our associates, our community consumer choices, Capital One will join other
part
Keyword: governance
Our governance efforts begin with the belief
industrial levels. We contribute to that goal As a leading financial institution, we recognize the opportunity
that sustainable business practices do not
by continuing to reduce our operational
happen merely through good intentions, but we have to leverage our scale and resources to be an engine for
emissions and by using our banking
also require rigorous risk management and progress by combating climate change, helping our communities
activities to support the transition toward
informed Board oversight. grow and thrive and governing our practices with integrity to build
trust among our associates, investors and the communities we serve.”
MATT COOPER
General Counsel, Corporate Secretary
and Head of ESG for Cap
Keyword: governance
8 | About | Our Approach to Environmental, Social & GovernanceABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
It is within this context that Capital One has established
the following focus areas within its ESG framework.
This report details our approach and progress within each area:
ENVIRONMENTAL SOCIAL GOVERNANCE
Climate Risk Human Capital Board Expertise,
Management Independence and
Workplace Diversity,
Engagement
Greenhouse Inclusion and Belonging
Gas Emissions Shareholder Rights and
Consumer Well-Being
Governance Best Practices
Consumption and and Financial Inclusion
Waste Reduction Business Ethics
Community Engagement
Sustainable Finance and Social Impact Political Activity
Privacy and Risk Management
Data Security
9 | About | Our Approach to Environmental, Social & GovernanceABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Operations
Keyword: governance
10 | Capital One Overview | Company ProfileABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
In less than a quarter century, Capital One has grown to be one of the ten largest retail banks in the United States. Capital One is one of the
Business Overview
most widely recognized brands in banking — serving more than 100 million customers across a diverse set of businesses.
CREDIT CARDS CONSUMER BANKING COMMERCIAL BANKING
This segment consists of our domestic consumer and small business This segment consists of consumer and small business deposit and This segment consists of our lending, deposit gathering, capital markets
card lending and international card businesses in Canada and the checking and national auto lending. and treasury management services to commercial real estate and
United Kingdom. commercial and industrial
Keyword: governance
11 | About | Business OverviewEnvironmentalABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
ENVIRONMENTAL
Sustainability Overview
Capital One recognizes the critical role the financial
sector plays in addressing the challenges of climate
change. From driving sustainable economic growth to
financing new infrastructure and technologies, we are
supplying solutions that our communities will need to
thrive in a changing world.
13 | Environmental | SustainabilityABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Our Sustainability Journey
We promote sustainable business practices through reducing In 2017, we continued to challenge ourselves with a
GHG emissions, reducing energy consumption and limiting new goal of becoming carbon neutral by buying carbon
waste and conserving water. We also support businesses offsets to cover Scope
Keyword: governance
14 | Environmental | SustainabilityABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Capital One is committed to:
REDUCING GHG SUPPORTING REDUCING WATER
EMISSIONS RENEWABLE ENERGY CONSUMPTION
Reduce Scope 1 Direct Emissions Purchase 100 percent renewable Reduce water use at our facilities
by 50 percent and reduce Scope 3 electricity while increasing location- by 20 percent by 2025 (from a
Emissions (Categories 1-14) by 50 aligned procurement in the markets baseline year of 2019).
percent by 2030 (from a baseline where we operate.
year of 2019).
PAPER POLICY OUR OFFICES
Ensure 95 percent of paper Pursue the U.S. Green Building
purchased for operations is certified Council’s Leadership in Energy
by the Forest Stewardship Council or and Environmental Design.
contains 30 percent post-consumer
LEED Silver (or higher) c
Keyword: governance
15 | Environmental | SustainabilityABOUT ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX
Capital One has made progress on its
sustainability journey since 2009
Adjusted goal, setting out
to reduce Scope 1 and
Scope 3 (categories 1-14)
emissions by 50 percent
Set our first GHG Achieved our original by 2030 (from a baseline
reduction target GHG reduction target Met second year of 2019). Continue
of 10 percent (from a one year early, driving GHG goal four to purchase 100 percent
baseline year of 2008). an 18 percent reduction. years early. renewable electricity.
18% 25%
2008 2009 2010 2011 2012 2013 2014 2016 2017 2018 2019 2020 2021 2022
Set goal for 100 percent
renewable electricity
Updated our baseline and becoming carbon Joined the CDP Supply Chain
emissions, setting a second neutral for Scope 1 program to engage and