Truist Financial Corp

RATING

SECTOR

Banking

WEBSITE

CONTACT

214 N Tryon St Charlotte
NC 28202

Tel: +1(336)-733-2000
Email (media and PR): Media@Truist.com

STOCK EXCHANGE

LISTING

EMPLOYEES

53,207

HEAD OF CORPORATE RESPONSIBILITY

Tory Kaplan

AWARDS

The company does not disclose this information

CONTENT SOURCE

FURTHER READING

Report created by Sonria Willis 

Truist Financial Corp

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Truist Financial Corporation is a financial services company headquartered in North Carolina formed by the merger of BB&T and SunTrust. The bank offers a wide range of services including:

  • Retail
  • Small business and commercial banking
  • Asset management
  • Commercial real estate
  • Corporate and institutional banking
  • Insurance
  • Mortgage
  • Payments
  • Specialized lending
  • Wealth management 

With 275 years of combined BB&T and SunTrust history, Truist serves approximately 12 million households with market share in many high-growth markets in the country. Indeed, Truist is considered a top 10 U.S. commercial bank with total assets of $518 billion as of March 31, 2021.

 

Company Sustainability Activity

Truist Bank states they are addressing climate change and assisting in the transition to a lower-carbon economy. In their report, they mention that they committed $15 million to energy and water reduction efforts across their facilities. Some of their initiatives are included in the following sectors:

Reductions in energy and water consumption:

  • In 2019, BB&T achieved a 25% reduction in energy through programs that cut electricity use by 845,000 kilowatt-hours annually. BB&T also met the goal of a 10% reduction in water use four years ahead of schedule.

Materials and recycling:

  • The banks stated they shredded and recycled more than 22 million pounds of paper in 2019. Through recycling efforts, they estimate having avoided 11 million pounds of carbon dioxide emissions. Moreover, They emphasize their commitment to help clients transition to paperless account statements.

Facilities, fixtures, and workplace design:

  • The Truist headquarters building in Charlotte, North Carolina, is LEED Certified, as is The Leadership Institute building, which sits on an 11-acre heavily wooded campus in North Carolina. They mentioned using construction materials, flooring, and furniture with recycled content and materials certified as environmentally preferable and socially responsible by the Business and Institutional Furniture Manufacturers Association (BIFMA). They also state using products that have achieved indoor air quality certification.

Because the bank has only recently merged, no targets or progress has been recorded in the 2019 Corporate Responsibility Report. However, the bank has established a baseline for reporting Scope 1 Scope 2 greenhouse gas emissions for the 2019 reporting year, which they will use for future goals and target-setting. 

Truist Financial Corporation states they refer to the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) disclosures in the index. Truist also disclosed to external reporting programs, including the CDP.

One notable initiative highlighted in its report was the Carbon Reduction Challenge. The Carbon Reduction Challenge is a college summer intern program run by Truist where students focus on developing approaches to reduce carbon emissions. In 2019, interns from Clemson University, Georgia Tech, Georgia State University, and the University of Georgia competed in the Carbon Reduction Challenge.

Highlights

  • Developed and published the Truist Environmental Statement and Truist Human Rights Statement 
  • Launched the Truist Foundation and Truist Cares initiative through which the bank has donated around $50 M to communities
  • 210,000 volunteer hours from employees
  • $5.68 Bn Community-development loans
  • $1.14 Bn Community-development investments
  • More than $700 million to investments and financing for renewable energy

Notably, the bank has been supporting solar energy through investments and loans:

  • Funded over 13,000 solar loans, increasing solar balance by more than $364 million from the previous year
  • Funded $1.3 billion of residential solar loans 
  • Closed a $60 million construction debt facility for a large corporate solar developer 
  • Deal with SunPower in 2019 for a $75 million construction loan

Targets

The bank does not mention any targets, stating it is because it has only recently merged and has not gathered much data. However, it does mention some of the progress that has been made (without benchmarks).

 

Progress

  • Estimated 22.9 MM pounds of paper saved
  • Estimated 36.2 MM kilowatts of energy saved 
  • Estimated 49,657 cubic yards of landfill space saved
  • Estimated 235.8 MM gallons of water saved

Certificates

  • Head office in North Carolina is LEED certified
 

UN Sustainable Development Goals

UN SDGs Compliance

The Impakter Index team aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals in the following section.

SDG 1: No Poverty

SDG 7: Affordable and Clean Energy

  • Estimated 22.9 MM pounds of paper saved
  • Estimated 36.2 MM kilowatts of energy saved 
  • Estimated 49,657 cubic yards of landfill space saved
  • Estimated 235.8 MM gallons of water saved

SDG 11: Sustainable Cities and Communities

  • 210,000 volunteer hours from employees
  • $5.68 Bn Community-development loans
  • $1.14 Bn Community-development investments

SDG 13: Climate Action

  • More than $700 million to investments and financing for renewable energy

Evaluation

Because Truist Financial Corporation has only recently merged, the 2019 Corporate Social Responsibility report referred to in this report was the first issued by the bank. Hence, the bank has not made any notable listings nor has it received any notable awards. However, Truist Financial Corporation’s headquarters offices are LEED-certified.

Because the bank has only recently merged, no targets or progress has been recorded in the 2019 Corporate Responsibility Report. However, the bank has established a baseline for reporting Scope 1 Scope 2 greenhouse gas emissions for the 2019 reporting year, which they will use for future goals and target-setting. Moreover, it has recorded some of the progress made: for instance, the bank has estimated saving around 36.2 MM kilowatts of energy.

Tuist Bank has invested $29.459 B in the fossil fuel industry since the adoption of the Paris Agreement. However, the bank divested from the industry in 2020. 

It is evident that Truist Bank is on the road to sustainability, and its initiatives (or lack thereof) and contribution to the fossil fuel industry indicate that it is mediocre on the sustainability index.

Therefore, the company has been rated a C.

Analyst Outlook: Positive 

With the bank’s efforts to set baseline reporting targets for future reports, Truist Financial Corporations could upgrade its score if it states and achieved measurable targets — which would, in turn, help them qualify for notable listings and awards.

Key Points

No notable sources have been found that would add information not stated in the report.

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