Bank of New York Mellon

RATING

SECTOR

Banking

WEBSITE

CONTACT

Corporate Headquarters
240 Greenwich Street
New York, NY 10286
United States

Tel: +1 212 495 1784
Email: bnymellonbrokerage@bnymellon.com

STOCK EXCHANGE

LISTING

EMPLOYEES

48,400

VICE PRESIDENT, ENVIRONMENTAL SUSTAINABILITY, GLOBAL CORPORATE SERVICES

Erik Eibert

AWARDS

No relevant Corporate Social Responsibility or Sustainability awards mentioned or found.

CONTENT SOURCE

FURTHER READING

Report created by Sonria Willis

Bank of New York Mellon Corporation

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

The Bank of New York Mellon Corporation, commonly known as BNY Mellon, is a multinational American investment banking services holding company headquartered in New York City. BNY Mellon was formed from the merger of The Bank of New York and the Mellon Financial Corporation in 2007. 

BNY Mellon is the world’s largest custodian bank and asset servicing company with $2.0 trillion in assets under management and $38.6 trillion in assets under custody. 

Through its Bank of New York predecessor, it is one of the three oldest banking corporations in the United States, and among the oldest banks in the world, having been established in June 1784 by a group that included American Founding Fathers Alexander Hamilton and Aaron Burr.

Company Sustainability Activity

The Bank of New York Mellon introduced an ESG Data Analytics Application which offers the ability to focus on the sustainability criteria that match their priorities with customizable investment portfolios to match their individual preferences. The application also gives crowd sourced insights based on the activity from the community of users to identify the most commonly searched environmental themes, factors and data. 

As of 2020, the bank has managed $130.4 billion in assets that it classifies as responsible investments. The bank follows the Principles for Responsible Investment (PRI) and the TCFD Guidelines.

As a founding signatory to the PRI in 2006, and a long-standing participant in initiatives such as the IIGCC and CDP, the bank emphasizes their efforts to identify, analyze and engage on all material ESG risks.

Highlights

  • Achieved carbon neutrality in operations for the fifth consecutive year.
  • Set new five-year 2025 environmental sustainability goals for reducing waste, paper, water, energy and greenhouse gas emissions, in line with Science-Based Target initiative methodology by 2025.
  • Named to CDP’s climate change A List for the seventh consecutive year and one of only five U.S.-based financial services firms of the 182 companies listed on the A List.
  • Assets overseen by investment firms that are Principles for Responsible Investment (PRI) signatories are equivalent to $1.4 trillion, or 75%, of its total assets under management.
  • Assets incorporating values-based ESG screens, ESG themes, impact criteria, or are presented as ESG integrated are equivalent to $130.4 billion.
  • Market value of portfolios screened for ESG factors is equivalent to $1.0 trillion.
  • 116 Green bonds administered representing approximately $38 billion in issuance.
  • Low-Income Housing Tax Credit (LIHTC) equity investments are equivalent to $145.4 million.
  • Pledged to implement the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations to formalize the integration and communication of risks related to climate change.
  • Increased parental leave from 12 weeks to 16 weeks in the U.S., and global maternity company paid leave to 16 weeks in all countries.
  • Expanded “Transgender Guidelines: Gender Transition, Identity and Expression” from the United States to Asia-Pacific, Europe, Middle East and Africa regions.
  • Provided more than 3,000 hours of pro bono technical expertise to nonprofit partners, valued at more than $500,0003.
  • Fulfilled commitment of $1 million to the City University of New York (CUNY) to help equip high-achieving, underrepresented students with the knowledge and skills necessary
  • Expanded the functionality of its Asset Servicing ESG analytics tool to integrate fixed-income scoring for corporate bonds.
  • Serviced the world’s first sovereign blue bond in Corporate Trust, issued by the Republic of Seychelles, to protect marine resources.
 

Targets

CSR Goals 2020-2025

Human Rights

  • Conduct due diligence and training practices to promote understanding of Modern Slavery Act principles.

Diversity and Inclusion

Leadership and Development

  • Improve manager effectiveness score by 5% year over year, as measured through Manager Upward Feedback process.
  • Run a new company-wide employee engagement survey in 2020 to establish baseline engagement scores.
    Increase the number of discrete employees participating in non-mandatory learning programs, on a year-over-year basis.
Employee Engagement and Wellbeing
 
  • Increase positive response to employee health survey question “Do you think your workplace supports a culture of health and wellbeing?” by 5%
  • Offer at least two well-being programs.

Energy and Resource Efficiency

  • Reduce energy greenhouse gas emissions by 20% by 2025 from a 2018 base year
  • Maintain Carbon neutrality through 2025
  • Maintain paper neutrality in US and India through 2025
  • Divert 80% of office waste from landfills by 2025
  • Target zero waste to landfills for technology equipment by 2025
  • Drive water use reduction in building operations

Community Engagement

  • Direct 65% of corporate philanthropy donations to organizations and causes aligned with the bank’s strategic focus of developing the workforce of the future
  • Facilitate 130,000+ hours of employee volunteerism
  • Achieve a skills-based volunteering target of 40% of total employee volunteer hours
  • Increase total hours of pro bono consulting delivered to nonprofits by 10% over the 2019 baseline year

ESG Client Solutions

  • Increase ESG assets under management/advisory.
  • Increase the number of clients who use their ESG Global Risk Solutions, and Data and Analytics solutions.
  • Increase volume of green bonds administered.
  • Demonstrate ESG thought leadership and proof points as measured by industry recognition and client satisfaction metrics

Supply Chain

  • Implement a company-wide sustainable training program on supplier diversity.
  • Increase outreach with diverse suppliers through quarterly procurement summits.
 

Progress

Energy and Resource Efficiency

  • 58% GHG emissions reduction
  • Achieved carbon neutrality in operations
  • 68% of waste diverted from landfills
  • 45% paper usage reduction
  • 11% reduction in water use 
  • 200 tons recycled on properly disposed of technology waste

Path to Green Offices

  • 56% of occupied real estate with third-party green certifications
  • 42 LEED certifications
  • 89% ISO-14001 certified facilities 
 

Certificates

  • LEED: The bank has a total of 42 LEED certified buildings.
  • ISO-14001: 89% of the bank’s facilities certified under ISO-14001.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 7: Affordable and Clean Energy

  • Set new five-year 2025 environmental sustainability goals for reducing waste, paper, water, energy and greenhouse gas emissions, in line with Science-Based Target initiative methodology by 2020
  • Achieved carbon neutrality in operations for the fifth consecutive year.

SDG 9: Industry, Innovation and Infrastructure

  • LEED-certified offices
  • Introduced the ESG Data Analytics application

SDG 11: Sustainable Cities and Communities

  • Facilitate 130,000+ hours of employee volunteerism
  • Achieve a skills-based volunteering target of 40% of total employee volunteer hours
  • Increase total hours of pro bono consulting delivered to nonprofits by 10% over the 2019 baseline year

SDG 12: Responsible Consumption and Production

  • Assets overseen by investment firms that are Principles for Responsible Investment (PRI) signatories are equivalent to $1.4 trillion, or 75%, of its total assets under management

SDG 13: Climate Action

  • Issuance of numerous green bonds
  • Decrease of energy and water consumption in buildings

SDG 14: Life Below Water

  • Serviced the world’s first sovereign blue bond in Corporate Trust, issued by the Republic of Seychelles, to protect marine resources.

Evaluation

The Bank of New York Mellon is listed in a number of notable listings such as the CDP and the Dow Jones Sustainability Index. The bank was notably named to CDP’s climate change A-List for the seventh consecutive year being one of only five U.S.-based financial services firms of the 182 companies listed on the A-List. BNY Mellon has several LEED-certified buildings; however, it has not received any notable sustainability or ESG awards.

The bank has measurable key performance indicators and targets; reporting its progress towards improving sustainability within its operations. It has achieved carbon neutrality and has reduced greenhouse gas emissions by 58%, which is 38 percentage points higher than its target of 20%.

BNY Mellon stresses its commitment to green finance. It has administered approximately 116 Green bonds representing approximately $38 billion in issuance. Moreover, the market value of its portfolios screened for ESG factors is equivalent to $1.0 trillion. 

Bank of New York Mellon is rated a B.

Analyst Outlook: Neutral

External articles have confirmed the bank’s commitment to green finance and investments.

One article mentions how BNY Mellon has also collaborated with the Yale Initiative on Sustainable Finance. This initiative aims to improve the availability and quality of ESG information.

One of the bank’s highlights was its ESG Data Analytics application. An article mentions how, in 2020, the application received the Technology Innovation of the Year award in the Global Investor Investment Excellence Awards.

However, no sources confirm the bank’s progress to improve sustainable operations.

Key Points

  • Collaboration with the Yale Initiative on Sustainable Finance to Further ESG Research
  • Its ESG Data Analytics application received the Technology Innovation of the Year award in the Global Investor Investment Excellence awards of 2020

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