Banner : ESG Report (tcfd report)

Published: 2025-06-30 14:27:08 ET BANR

Published on 06/30/2025 at 14:27

TCFD Report

Task Force on Climate Related Financial Disclosures

2025

Table of Contents

Our Values 3

TCFD Overview 3

Governance 4

Board of Directors 4

Risk Committee 4

Corporate Governance/Nominating Committee 4

Audit Committee 4

Management 5

Risk Management Oversight Committee 5

Credit Policy Committee 5

Corporate Responsibility Working Group 6

Climate Risk Working Group 6

Strategy 6

Scenario Analyses 6

Adapting to New Regulations 8

Risk Management 8

Enterprise Risk Management Framework 8

First Line of Defense 8

Second Line of Defense 9

Third Line of Defense 9

Environmental Risk Assessment 9

Metrics and Targets 10

Emissions 10

Calculated Greenhouse Gas Emissions 11

Targets 11

About This Report 12

‌Our Values

Banner Bank is a dynamic full-service financial institution, operating safely and profitably within a framework of shared integrity. Working as a team, we deliver superior products and services to our valued client by emphasizing strong relationships and a high level of community involvement. Our values are summed up in one phrase, "Do the Right Thing," within the context of these key values: honesty and integrity, mutual respect, quality, trust, teamwork and accountability.

Our strategic priorities include building sustainable revenue growth and profitability; retaining, developing and attracting talented people; improving operating efficiency; building and protecting the Banner brand; and maintaining a moderate risk profile.

This Task Force on Climate-related Financial Disclosures (TCFD) Report outlines our climate-related risks and opportunities; how we identify and manage those risks, including through scenario analysis; and our annual Scope 1, Scope 2 and Scope 3, Category 6 greenhouse gas (GHG) emissions calculations.

We encourage you to read this report in conjunction with our most recent Corporate Responsibility Report and Annual Report to gain greater detail and insight into our key values, strategic priorities and performance metrics.

TCFD Overview

In 2017, the TCFD released recommendations designed to help investors and other stakeholders understand how organizations think about and assess climate-related risks and opportunities. There are 11 interrelated recommendations that are split into four reporting categories: governance, strategy, risk, and metrics and targets. More specifically, their guidance indicates companies should disclose the processes utilized for governance around climate-related risks and opportunities in the governance section of their reporting. Disclosure within the strategy section could include actual and potential impacts of climate-related risks and opportunities on a company's business, strategy and financial planning. In the risk management section, companies should disclose how they identify, assess and manage climate-related risks. Finally, in the metrics and targets section, they advise disclosing the metrics and targets used to assess and manage relevant climate-related risks

and opportunities.

The TCFD reported, in connection with the release of its 2023 status report in October 2023, it had fulfilled its responsibilities and disbanded. The Financial Stability Board requested the International Financial Reporting Standards (IFRS) Foundation to assume monitoring of climate-related disclosures. Effective November 2023, the TCFD website transitioned to a resource-only site containing previously developed Task Force materials.

In its expanded role, the IFRS Foundation encourages the continued use of the TCFD Recommendations adding it is the Foundation's position that the recommendations are a good entry point for companies who are beginning to use standards set by the IFRS - International Sustainability Standards Board.

We elected to update this report to demonstrate our ongoing effort to provide a transparent overview of our climate-related risks and opportunities, the related governance and our strategic approach to managing these risks.

‌Governance

Oversight of Banner's Corporate Responsibility Program is shared among several groups with specific responsibilities assigned to each. Responsibility for climate risk management oversight rests with our Board's Risk Committee.

Board of Directors

Our Board has oversight of climate-related issues and guides strategy as it relates to climate risk. We believe strong governance practices support long-term, sustainable value creation for our stakeholders and provide a foundation for effective Board oversight. Our Board has adopted comprehensive corporate governance guidelines as a framework to assist in fulfilling its responsibilities.

Risk Committee

The Risk Committee provides oversight of our enterprise-wide risk structure and the processes established to identify, measure, monitor, and manage our enterprise risks (excluding credit risks and financial reporting risks, which are overseen by the Credit Risk Committee and the Audit Committee, respectively). The Risk Committee's oversight includes risks in the areas of market/price, capital, liquidity, interest rate, operational, technology/cybersecurity, people, legal/regulatory compliance, reputational, strategic, and environmental, social and climate change. This committee is responsible for reviewing progress on climate risk management initiatives, including in relation to any stated program goal. It also reviews management's strategies and policies for managing these risks and serves as the primary point of contact between the Board and senior management in assessing enterprise-wide risk management activities and effectiveness.

Corporate Governance/Nominating Committee

The Corporate Governance/Nominating Committee is responsible for a range of corporate governance responsibilities, including carrying out the Board's responsibilities with respect to director nomination and other Board processes and procedures (including conducting an annual review of Board performance) and developing and maintaining the Corporation's corporate governance policies. The committee is also responsible for reviewing our corporate responsibility framework

and initiatives and periodically reviewing and assessing our policies and programs that relate to matters of corporate social responsibility. Additionally, this committee is responsible for succession planning for the Board of Directors, including identifying needed skills and backgrounds, developing a list of nominees to fill vacancies, and selecting nominees for directors. Finally, the committee oversees continuing education and ongoing training for Board members.

Audit Committee

The Audit Committee oversees management's responsibilities for financial reporting and the establishment of an effective internal control system, which encompasses monitoring the internal controls, including those related to the public disclosure of climate risk-related greenhouse gas (GHG) emissions calculations. The Committee's responsibilities include exercising sole authority to appoint or replace our independent registered public accounting firm ("independent auditor") and overseeing the activities of our internal audit functions.

Additional responsibilities of this committee include:

Assisting the Board in fulfilling its oversight responsibilities related to the quality and integrity of financial reports and other financial information provided by the company as well as the company's systems of internal accounting and financial controls;

Oversight and periodic evaluation of the independent auditor's qualifications, independence and performance;

Annual review of the performance and compensation of the Chief Audit Executive;

Compliance with legal and regulatory requirements, including disclosure, controls and procedures with respect to financial reporting matters; and

Review of internal controls related to the Company's corporate responsibility external reporting activities.

‌Areas of Corporate Responsibility Oversight

Board of Directors

Review Corporate Responsibility Internal Controls

Audit Committee

Review and Assess Corporate Responsibility Framework and Initiatives

Corporate Governance / Nominating Committee

Human Capital Resource Management

Review Diversity and Inclusion Metrics

Compensation and Human Capital Committee

Review and Approve the Environmental Risk Assessment Policy

Credit Risk Committee

Enterprise Risk Management

Review Progress on Environmental, Social and Climate Risk Management Initiatives

Risk Committee

Management

Day-to-day climate risk-related responsibilities are led by the Enterprise Risk Management (ERM) team with direct oversight by the Chief Risk Officer. Regular reports are provided to the Corporate Responsibility Working Group, the Risk Management Oversight Committee and the Board's Risk Committee. These reports provide updates on matters such as emissions data, scenario analyses, disclosures and progress towards our overall climate risk program strategic initiatives.

Risk Management Oversight Committee

The Risk Management Oversight Committee (RMOC) is an executive-level management committee comprised of all members of the Bank's executive team. This committee serves as the governing body of the ERM Program. The RMOC facilitates discussion, determines appropriate courses of action for risk matters and is responsible for understanding risks impacting our business, including climate risk.

Credit Policy Committee

The Credit Policy Committee is a management committee providing oversight for credit risk and management of the Bank's loan policy. This includes the prudent management of exposures to environmental-related financial risks within both loan underwriting and the portfolio management process. Environmental risk assessments have been incorporated into underwriting criteria for select loan types.

Disclaimer

Banner Corporation published this content on June 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 30, 2025 at 18:26 UTC.