A coordinated approach to complex challenges
BNY has helped our clients and the financial system navigate 240 years of changes, and that approach is now focused on navigating today’s challenges. In order to do so, we have marshaled teams of key leaders in a broad, coordinated effort to manage various aspects of sustainability issues – from client needs, systemic risk management and social concerns to environmental responsibility and climate-related risks, and more.
Our vision is to create a more sustainable future by embedding climate considerations across our business operations, building more resilient financial systems and supporting our clients and the financial markets as they transition to a lower-carbon economy. Our ability to achieve this vision is grounded in part with good governance and support from leadership at the highest levels of the bank, beginning with our board of directors.
We’re fortunate that members of our board bring deep experience, varied perspectives and insights to the overall governance of BNY. For starters, our board is approximately 73% diverse on basis of gender, race and ethnicity, with 40% women, and 30% diverse by race or ethnicity. Beyond bringing a range of viewpoints, board members are well informed on critical issues. They are frequently briefed on emerging issues and updated corporate performance by our Chief Sustainability Officer (CSO). A regimen of educational courses on sustainability topics are also included in their roster of training.
Clear responsibilities are embedded in the fundamental charters of our governance and leadership. Within the board, the Corporate Governance, Nominating, and Social Responsibility Committee (CGNSR) runs point on sustainability issues. Information flows to and from this committee as it interacts with the entirety of the board, members of our Executive Committee and senior-level members of the Sustainability team.
Our organizational sustainability hinges on our people, and ensuring appropriate support and compensation for our employees is overseen by our board Human Resources and Compensation Committee. Pay equity, belonging and inclusion, and equity-based awards are some of the ways we promote a workplace where people can thrive. For example, in 2023 we launched our BK Shares program to grant shares to 45,000 employees who did not previously receive stock as part of their compensation and then extended it to include eligible employees who joined the company in 2023.
Resilience rises, in part, from sound risk management. Thus, the board Risk Committee, plays an integral role in helping to ensure our firm’s sustainability in the long run. They oversee the firm’s entire risk management framework, which encompasses climate-related risks.
Just as sustainability issues are woven through the fabric our board structure, they are embedded into the responsibilities of management. Appointed in May 2023, our new CSO leads a team responsible for driving the firm’s sustainability strategy across all lines of business and corporate functions. We have formalized a new BNY Sustainability team and established new management councils to oversee the execution of our sustainability and climate strategies.
Composed of certain Executive Committee members, the Business Management and Client Committee (BMCC) reviews sustainability strategies, guidelines and policies as it guides enterprise-integration. Our Sustainability Steering Council advises the CSO and BMCC while our Sustainability Strategy Implementation Council executes on strategy and ensures that key information is shared.
We believe that this structure enables BNY to effectively monitor and address sustainability-related risks and opportunities. Complex challenges call for clear, coordinated communication and execution, and that is what our governance system is designed for.