A bank for communities Making a difference
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A bank for Making a
communities difference
2020 Environmental, Social and Governance Report
Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Welcome to our first Environmental, Social and Governance Report
Introduction
Welcome from our Chairman and CEO,
Executive Vice President and Director of ESG............ 03
About us ............................................................................... 05
2020 highlights
Our approach to ESG ..........................................................07
Our governance Our environment
Doing business with integrity
85% 40% $493.3m
Our governance ....................................................................10
Upholding good governance
and sound decision-making .............................................. 11
Being a responsible corporate citizen ............................13
of Board members were of members represented funded in renewable energy
Bringing people together independent diverse groups on our Board projects over the past three years
Our people ............................................................................15
Bringing out the best in our people .................................16
Creating an environment where
everyone belongs................................................................ 20 Our communities Our people
Working with our communities
$34.9m $1.299bn 60%
Our communities .................................................................23
Nurturing through finance .................................................24
Strengthening our communities ......................................29
Protecting our environment contributed to nonprofits by in affordable housing lending of our workforce and 48%
Our environment ..................................................................32 M&T through corporate giving of our managers were women
Reducing operational impacts ..........................................33 and the Charitable Foundation
Tackling climate change .....................................................35
Using finance to drive change Our customers
Our investments ................................................................. 38
$1.213bn $7.0bn Top 10
Expanding sustainable investing .................................... 39
Transforming our services ................................................ 40
Conclusion
Looking ahead to 2021 .......................................................42 assets under management of paycheck protection support Small Business Administration
About this report .................................................................43 in ESG strategies at funded, helping to keep 765,000 (SBA) lender nationwide
Wilmington Trust people employed during COVID-19 for 12 years consecutively
SASB report ......................................................................... 45
2020 Environmental, Social and Governance Report Equal Housing Lender. ©2021 M&T Bank. Member FDIC. NMLS# 381076
The report covers the period of January 1- December 31, 2020 and is as of December 31, 2020 unless otherwise noted. 02
Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Funding bright futures for the communities we serve
Welcome from René Jones, Chairman It is our pleasure to welcome you to
our first Environmental, Social and
The trusted, credible scientific
evidence is clear – many of our
We are a bank focused on
communities – advocating for
and CEO, and John D’Angelo, Executive Governance (ESG) Report. We’d like collective actions are having and supporting the customers
Vice President and Director of ESG. to share with you some reflections
on why we feel this report is so
a detrimental impact on the
environment, and ultimately
and constituents who make
up our ecosystem (see pg 4,
important, and to identify our focus on health and human safety. A Bank for Communities). This
for the road ahead. As society’s understanding of approach is what makes us
these impacts grows, expectations unique. We work to understand
The financial system sits at the heart are changing regarding the the specific and individual needs
of our global economy. This local and role of the organization and its of our neighborhoods and interest
global ecosystem, moderated by leadership to encompass a higher groups so we can work together
robust regulation and oversight, has societal purpose. to find solutions to solve particular
enabled capitalism to support the challenges. We empower local
sustained growth we’ve seen in the We understand the world is always teams to make decisions to support
last hundred years. Yet this growth changing and, throughout our 160‑ our stakeholders. Throughout this
has come at a price: costing the year history, we have demonstrated report, we will highlight initiatives
environment, our communities our ability to evolve. Although – like Ignite and Buffalo Promise
and individuals too. we’re at the start of developing Neighborhood – and show examples
our comprehensive and strategic of how we tailor our services – such
approach to ESG, the concepts are as accessible checking accounts,
in our DNA. small business loans, investing in
Here at M&T and Wilmington renewable energy development and
Trust, our purpose has always financing affordable housing across
been to make a difference in our footprint – specifically to meet
our communities’ needs, translating
“As a company, and as a society, people’s lives. Serving all of
our philosophy into tangible,
our stakeholders: customers,
we are stronger and more employees, communities, vendors positive action.
committed to creating a positive and shareholders is just what we
do. What’s new is that now we have
impact than ever before.” decided to formalize the disclosure of
our efforts into this single report and
René F Jones increase our transparency of those
Chairman and CEO efforts under the umbrella of “ESG”.
2020 Environmental, Social and Governance Report
03
Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Funding bright futures for the communities we serve
continued
Our efforts have also been recognized It deeply affected our families, The trust communities place in We must, and will, do more to make A Bank for Communities
by the industry. In 2020, we were communities and local economies our organization has always been our society better and empower
awarded 22 Greenwich Excellence and our many colleagues who fell ill. key to our business model. Robust our communities – one community We are a bank for communities
Awards and 3 Greenwich Best Brand We are grateful that the new practices governance is essential to building at a time. characterized by:
Awards across Business Banking and safeguards we implemented that trust and stability, so ethical • responsible lending based
and Middle Market, bringing our total to protect our people and our business practices and behavior We are proud of our history of
stakeholder capitalism and will on the advantages of local
awards to 137 since 2011. customers, and to support them are core to our business. We have knowledge and scale
financially, emotionally and medically expanded the diversity of our Board strive for continuous improvement
We also work to ensure our colleagues were well received and helped to limit of Directors and senior leadership in our actions, as we understand • s traightforward products that
feel they belong and can be their and mitigate negative impacts. team and remain committed to how important this is for our are easily understood by our
authentic selves at work. While the accountability and transparency but collective future. customers
pandemic made the job market less Unfortunately, the hardest burden we know there is always more work René F Jones
active in 2020, we believe our focus on fell on those already struggling the to be done. • a
philosophy that we compete
Chairman and CEO
investing in and supporting our people most. We’re proud of the leading on customer experience and
is reflected in their commitment to us, role we played in ensuring those in What is good for our stakeholders John D’Angelo value, not solely on price
as employee engagement has risen need received Paycheck Protection is good for the financial services Executive Vice President and
while staff turnover has fallen every Program (PPP) payments. industry, and vice versa, and we will • a
n operating belief that
Director of ESG
year since 2016. join others and use our influence employees are our most
We know we share the sentiments to support a collective effort to valuable strength
No year in modern history has of our PPP team when we say how transform the industry.
changed our lives as much as immensely rewarding it has been to • p
rudent stewardship of our
2020. The year posed a number of know that our user-friendly portal shareholders’ capital
challenges to us as individuals, as and the passionate dedication of • a
commitment to our
an organization and as society as a our staff helped keep nearly 35,000 wide-ranging communities
whole, but we’ve come out stronger. businesses operating and 765,000 – whether they share a
people in employment during neighborhood, a belief system
Protecting our employees and our COVID-19. We shared our automated
customers is always our foremost or a common interest.
solution, connecting to the SBA’s
concern and we are impressed, approval systems with five other
but not surprised by, the resilience banks that had been struggling with
our teams and communities a manual process to increase the
have shown in response to the recovery impact. John D’Angelo
COVID-19 pandemic. Executive Vice President
and Director of ESG
2020 Environmental, Social and Governance Report
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Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
About us
Our purpose
Our mission Our employees Our financials
We live and work alongside our Our 17,373 employees, drawn from
customers, developing deep, lasting the diverse communities we serve, Assets
relationships in communities, strive to make a difference every
Great companies have an enduring sense
supporting local businesses, schools,
universities, sports, arts and social
day for our customers. We have
a concentration of our people in $142.6bn
organizations and government the mid-Atlantic and Washington
of purpose. Ours is to make a difference institutions. Our company supports DC but have colleagues across the Loans and leases
projects that drive economic growth nation and internationally too.
in people’s lives. We’re driven to help,
$98.5bn
and commits to causes that make our
encourage and enable our customers and
17,373
communities better places to live.
communities to thrive. Founded in 1856, We succeed when our employees,
customers and shareholders succeed.
Deposits
we have cared deeply about those we We have been pursuing positive social Employees
$119.8bn
and environmental impact for many
serve. By asset size, we are a top 20 years. We deliver the capabilities of a
Our footprint
full-service US-based commercial big bank with the care and empathy of
a locally focused one. We offer advice, We have over 750 offices spanning
nine states and Washington DC.
bank, with a long history of community- guidance, expertise and solutions
across the entire financial spectrum, By tailoring our services to the
Net income
focused banking.
$1.35bn
combining M&T’s traditional banking needs of our communities, M&T is a
services with the wealth management hometown institution in every market
and institutional capabilities offered we serve. Wilmington Trust also
by Wilmington Trust. expands our reach, with a number
of small offices abroad including Total shareholders’ equity
We understand the world is always Europe.
$16.2bn
changing and throughout our history we
750
have demonstrated our ability to evolve.
We put the customer at the center of all
that we do, continuing to demonstrate
our hallmark care and empathy as Offices
we listen and develop new products
and services to meet our customers’
evolving needs and expectations.
2020 Environmental, Social and Governance Report
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Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
About us
continued
Our performance Our communities across the United States Our communities in the mid-Atlantic
We have been profitable for 178
consecutive quarters: more than 42
straight years. We were one of two
commercial banks in the S&P 500 at
the start of the 2008 financial crisis
to maintain its dividend through NY
the crisis. We have accomplished 2 3
this through a strong credit culture
4
(with less than 50% of the industry 1
average net charge offs over the last 5
20 years) and strong returns (20.0% CT Our communities
6 7
ROTCE compared to 13.6% ROTCE
1. Buffalo
peer median over the last 20 years). 2. Rochester
M&T office 8
What we do PA 9
3. Syracuse
14 4. Albany
We served 4.1 million customers 10 12 13 5. Ithaca
last year, offering advice, guidance, 11 6. Binghamton
expertise and solutions across the NJ
15 7. Poughkeepsie
entire financial spectrum, combining 8. Wilkes-Barre
M&T’s traditional banking services 16
17 9. Lewisburg
with the wealth management and MD 10. State College
18
institutional capabilities offered by 11. Altoona
Wilmington Trust. We do this through DE 12. Harrisburg
more than 750 offices, nearly 1,800 WV 13. Bethlehem
ATMs and a variety of online and 14. New York
mobile services. VA 19 15. Philadelphia
16. Dover
17. Baltimore
18. Washington DC
19. Richmond
M&T office
2020 Environmental, Social and Governance Report
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Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Our approach to ESG
Our
The world has not stopped changing It’s ingrained in the way we’ve “Our organizational
since we opened our doors more than built Advisory Councils across our
160 years ago. The financial services footprint to hear from stakeholders, commitment to
industry is evolving, and so are we. and the way we develop locally social responsibility
commitment In areas where we have insight and
expertise, such as helping to grow
small businesses, our responsibility is
oriented initiatives to support our
communities. It’s also integral to how
we engage our people to be their best
is what attracted
me, and so many
to future
to help lead the transformation toward selves at work: we are our people. of my colleagues,
best practice. On issues increasing
in importance to our customers While tracking our progress isn’t to M&T. This
new to us, we’re now focused commitment comes
success
and communities, such as climate
change, we will continue to focus on on accounting for that progress
partnerships and collaboration to holistically and sharing it transparently. to life throughout
learn best practices that will deliver This report reflects an enterprise- the report and I’m
wide, cohesive view of our
impactful and necessary outcomes.
organization so that we can develop
honored to help
The enduring purpose of our Our approach a focused approach to measuring, guide our team into
organization is to make a difference
We are proud to publish our inaugural monitoring and reporting on our our next chapter
ESG Report, to help tell the story of ESG efforts.
of serving our
in people’s lives. Our local focus is the work that’s already underway
in our organization. It details the We continue to learn from our customers and
the cornerstone of our success: passion, commitment and positive
social and environmental impact of
experience and to consult with
diverse stakeholders to help us communities.”
we are a part of the glue that binds our people, products and services. understand what leadership looks
like on these evolving issues. We’re John D’Angelo
our communities together. This report also helps set a firm inspired and guided by the values we Executive Vice President
ground on which to further build our share with all our colleagues: integrity, and Director of ESG
ESG efforts in 2021 and beyond. As candor, collaboration, ownership and
we formalize our ESG strategy and curiosity. These principles underpin
begin developing a more transparent, this journey, guiding us to make a
cohesive, enterprise-wide approach, difference in people’s lives.
it has become clear to us that ESG is
already deeply embedded in the DNA
of our organization.
2020 Environmental, Social and Governance Report
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Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Our approach to ESG
continued
Our values
1. Integrity 2. Candor 3. Collaboration 4. Ownership 5. Curiosity
Integrity is core to all that we do. Providing transparency to our We’re an integral part of the We believe in acting responsibly to Our biggest impact comes via the
Ethical business practices are stakeholders is crucial, and we communities we work and live in, help safeguard our collective future. solutions, products, services, advice
central to the success of the aspire to more. We believe that so supporting our neighbors means ESG is being deeply embedded and and guidance that our 4.1 million
entire financial services industry being open and honest, seeking and business success. We invest in our owned across our business model customers rely on, and how those
and are crucial to retaining the sharing feedback, and questioning communities, championing projects – we don’t see it as a separate or solutions enable our customers to
trust of our stakeholders. We behavior that challenges our values that drive economic growth and standalone interest. The impact build their communities, provide
always strive to treat others improves all our outcomes. We committing to causes that make and cost of climate change is clear for their families and reach their
with respect – and do the right are open in our ambition for our our communities better places to and is affecting our people, our potential. We strive to approach all
thing – even when no one is team to more accurately reflect live. This is what we have always communities and our economy. So challenges with curiosity, continually
watching. From the Boardroom the diversity of the communities done. We continue to lead because we are striving to take action to help learn, encourage creativity, be
to the branch, we incorporate we serve and in having dialogue to our work is personal: alongside our reduce our environmental footprint empathetic and actively listen. We
our purpose, mission, values and address challenging issues such as professional motivation, we are as a business. M&T is proud to be constantly explore new ways to
behaviors into everything we do. unconscious bias. We are looking at driven to action for our families, using our financing capacity to deliver on our mission even more
This means integrating ethical, the make-up of our own workforce friends and neighbors too. help accelerate the transition of effectively and adapt how we deliver
equitable and responsible and investing in improving diversity, our broader economy to a more value. We do this through offering
practices into our day-to-day equity and inclusion to ensure that We work together as a team to build sustainable future. ESG investment funds, developing
work. It also means enhancing everyone works in an environment relationships and listen to all our innovative financial products for
sustainable growth efforts where they feel they belong. Our stakeholders and look for solutions the unbanked or underbanked, and
while being mindful of the ambition extends beyond our that provide good outcomes for supporting minority customers to
environmental and social risks workforce: it also includes using our everyone. We facilitate increased overcome the additional barriers
that exist in our increasingly supply chain expenditure to help investment in affordable housing they face to financial success.
interdependent economy. support a diverse range of minority- and community development, and We use our portfolio to help drive
owned businesses. support causes in the communities positive social and environmental
where we operate through the M&T outcomes, toward a more
Charitable Foundation and our sustainable economy.
colleagues’ volunteering efforts.
2020 Environmental, Social and Governance Report
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Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB Report
with integrity together our communties environment to drive change
Doing business with integrity
The right The right
thing way
2020 Environmental, Social and Governance Report
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Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Our governance In this section:
Committed to good governance
An independent and engaged Board
Doing business
Fair compensation for our executive management
A culture of integrity
Addressing anti-bribery and anti-corruption
with integrity
Protecting whistleblowers
Managing risk and compliance
Our political activities
Protecting information security
Active against fraud
Our commitment to high standards Our Code of Business Conduct and Transparent over tax
of corporate governance is key to Ethics sets out our expectations of
helping build trust and confidence honest and ethical behavior for all our
between us and our communities, employees, officers and directors,
especially during uncertain times. while our Corporate Governance
Our employees, shareholders, Standards provide a foundation for
“We’re proud of our ongoing dedication
customers and communities need addressing director responsibilities, to sound governance and continue to
to be able to trust the organizations qualifications, expectations and strive to expand and enhance how we
they rely upon to be fair, transparent independence. Our Enterprise Risk
and as working for the common Framework outlines a structure to serve all of our stakeholders.”
good. We hold ourselves to the identify, assess, monitor and manage
highest ethical standards in all risk and provides the Board with Laura O’Hara
of our business dealings with the transparency needed for its risk Executive Vice President and General Counsel
customers, shareholders, regulators, oversight responsibilities.
communities and business partners.
Other specific policies and frameworks
3 40% 85%
This helps give our customers
confidence that their finances are in support and promote our culture of
safe and supportive hands, reducing integrity, including ensuring full, fair
stress and allowing them to seize and accurate reporting of our financial
performance and establishing rigorous The Board added of our Board of our Board
opportunities – such as buying a three new directors members members were
home or starting a business. protocols to safeguard customer
information and manage risk. in 2020, including represented independent
two women and one diverse groups
person of color
As of December 31, 2020. Criteria for independence was according to the New York Stock Exchange requirements,
as well as M&T’s Corporate Governance Standards.
2020 Environmental, Social and Governance Report
10Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Upholding good governance and sound decision-making
Commited to good governance We have embraced these new norms sexual orientation. Women comprised The Board and each of the Board
We recognize that robust and and are committed to increasing our 21% of our Board members as of committees also reviews their own
effective governance is fundamental transparency on these issues. December 31, 2020. We recognize performance through annual self-
to helping us deliver sustainable value that we need to continually strive to evaluations.
for our stakeholders. To that end, we We do not see these evolving ESG be better by regularly reviewing our
have adopted policies, standards and standards as merely checking a box. Board to make it more representative Fair compensation for our
procedures for numerous aspects Instead, we see them as a pathway to of the communities we serve. executive management
of corporate governance. We are impactful, much-needed change across A primary objective of an executive
committed to complying with the many of the major issues of our day. As of December 31, 2020, 85% compensation program is to help
highest standards of business ethics of our directors met the criteria for attract and retain executives who can
An independent and engaged Board independence required by the New maximize benefit for their business
and integrity. Our Board governance is designed York Stock Exchange as well as our and shareholders. We endeavor
Society’s expectations have evolved to help promote our organization’s Corporate Governance Standards. to establish compensation that is
as our collective understanding of long-term performance; encourage With nearly half of directors having a competitive, and around the median
the ways in which we impact the discipline in taking risk; and help deliver tenure of five years or less, the Board of the market for our peer group,
world around us have deepened. sustainable value to shareholders – all is subject to strong refreshment which is also subject to bank, business
This has broadened the role of the while supporting a culture of openness practices, balancing new directors and individual performance. Through
corporation to encompass a higher and debate. Our directors represent who have different expertise and our executive compensation program,
societal purpose under the banner of a range of backgrounds, professions, fresh perspectives with experienced, we strive to create a strong alignment
environmental, social and governance skills, experiences and communities. longer-tenured directors who possess between pay and performance while
standards for corporate conduct. This variety of viewpoints, skills and deep organizational knowledge. In discouraging excessive risk taking.
experiences allows for more effective addition, members on our Board’s We retain an independent consultant
discussions and oversight. committees are appointed annually to advise and support the NCG
“Delivering long-term value to all stakeholders, Just as we strive to foster an inclusive and the members of the Audit and Committee and we also conduct
customers, employees, shareholders and and diverse workplace that respects Examining Committee, Nomination, an annual risk assessment of our
Compensation and Governance (NCG) incentive compensation plans.
communities, is fundamental to our and values individual differences, we
Committee, and Risk Committee are
also believe it is important that our
responsibility as directors, and how M&T has Board is inclusive and diverse. In 2020, entirely comprised of independent Our executive compensation program
directors. provides for a market-competitive
been run for the last 30+ years.” we added three new directors, mix of base salary, short-term cash
including two women and one person The Board provides robust oversight of incentives and long-term equity-
Gary Geisel of color. As of December 31, 2020, executive management and, through based incentives that vest over time
Independent Director 40% of our directors including our the NCG Committee, conducts an in alignment with our compensation
Chairman, represented diverse annual independent evaluation of philosophy and the objectives
constituencies of gender, race or CEO performance and compensation. cited above.
2020 Environmental, Social and Governance Report
11Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Upholding good governance and sound decision-making
continued
In 2020, the COVID-19 global pandemic Our executive compensation It also obligates our CEO and Senior Concerns relating to fraud, illegal The Framework incorporates a three
impacted our performance. As a result program and philosophy, including Financial Officers to report violations or unethical conduct, or any other lines of defense model (business
of reduced earnings, discretionary specific pay decisions for our of the Code, and covers actions to be employment-related concerns, can areas, enterprise risk management
incentive pools in 2020 were reduced executives, is discussed in detail taken should a Code violation occur. be reported to line managers, Human and internal audit), which details our
by approximately 30% over 2019 levels in the Compensation Discussion and Resources, or the employee hotline. approach to risk taking, risk oversight,
and the organization funded a more Analysis section of our annual proxy Personnel working in the brokerage, and risk assurance practices.
limited salary increase budget. For statement, available on our website. investment and certain other lines of Complaints can be made anonymously, It also clearly defines roles and
retention and continued shareholder business are also subject to additional 24 hours a day, 7 days a week, by phone responsibilities and risk management
alignment, long-term incentive awards A culture of integrity conduct related obligations including, or through our dedicated online portal. policies and procedures, including
for named executive officers in 2020 Our Code of Business Conduct and in some cases, arising under the law our Risk Appetite Statement and Risk
Ethics applies to all employees. It sets of foreign countries. Managing risk and compliance
were maintained at 2019 levels or All employees, as well as the Board, Governance Committee oversight.
incrementally increased. out our standards relating to ethical The Risk Governance Committees are
conduct and compliance with the law. Addressing anti-bribery play a vital role in managing risk.
and anti-corruption The Risk Committee of the Board, predominantly chaired by members
Part of our executive compensation It also covers specific issues such as of Independent Risk Management.
program is an expectation of our conflicts of interest, insider trading, We require compliance with all comprised entirely of independent
applicable anti-bribery and corruption directors, assists the Board of All such committees report to the
non-executive and executive discrimination and harassment. We Management Risk Committee,
management to acquire and retain expect all employees to act with laws in all markets and jurisdictions Directors in its oversight of risk
in which we operate. These laws management functions. It provides which is chaired by the Chief Risk
M&T stock. We expect that, within five integrity and honesty. Our complaints Officer, and serves as the executive
years of becoming eligible under the procedures support employees include the UK Bribery Act and the independent challenge, and reviews
Foreign Corrupt Practices Act. Our and approves key risk management level committee responsible for
compensation program, such officers in navigating potentially difficult the implementation and oversight
achieve and maintain a certain level of situations and enable employees to policy regarding anti-bribery and policies, procedures and practices.
anti-corruption is a component of of the Framework.
stock ownership that is related to their submit any concerns, complaints Our Enterprise Risk Framework
position. For Board members this is or other information anonymously our Code of Business Conduct and The report covers the period of January 1 —
Ethics, available on our website. (“Framework”), which is reviewed December 31, 2020 and is as of December 31, 2020
two times their annual retainer amount (see right). and approved by the Risk Committee unless otherwise noted.
and it increases for senior independent Protecting whistleblowers at least annually, is the structure
members and the CEO and Chairman. Our CEO and Senior Financial Officers
are bound by the Code of Ethics for Our See or Suspect Something – through which we identify, assess,
CEO and Senior Financial Officers. Say Something Framework encourages monitor, control, communicate and
The code is designed to ensure fair, and supports employees in reporting escalate risk. It includes the policies,
accurate, timely and clear disclosure violations of our code of conduct or processes, controls and systems
in periodic reports required to be filed other wrongdoing without fear of through which risk is managed.
with the SEC. retaliation.
2020 Environmental, Social and Governance Report
12Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Being a responsible corporate citizen “At M&T Bank
protecting customers’
data is of the
Our political activities protect customer and corporate organizations. Of the teams as of Additionally, we participate in the IRS
We support our employees in having information. In this way, our December 31, 2020, nearly 70% Compliance Assurance Process to
utmost importance.
a voice in their communities through Information Security Program helps hold advanced certifications and collaborate with the IRS to resolve Confidentiality,
our employee-funded Political Action M&T strive for compliance with 60% are members of professional issues prior to filing our tax returns availability and
Committee (PAC). Employees on the government and industry regulations organizations. and to help achieve an acceptable level
committee decide how to allocate while leveraging proven tools, of assurance for the IRS regarding integrity of customer
funds appropriately. Distributions from technologies and practices. Active against fraud the accuracy of the return. M&T has data are imperative for
the PAC in 2020 totaled $39,550. As fraud techniques continue to evolve been accepted into the Compliance
Our program includes several core and become more sophisticated, Assurance Process program by the
all we do in service
We also have policies and procedures security principles, such as the we are committed to ensuring our IRS for tax years through 2021. of our customers.”
for compliance with federal, state and Principle of Least Privilege, where technology and staff adapt to keep
local laws and regulations relating to information is disclosed on a “need- our customers safe. Our fraud
Andrew Hartridge
political contributions, gifts to and to-know” basis. We also follow the prevention systems include multiple
Chief Information Security Officer
entertainment of public or government security principle of Segregation of layers of protection and monitoring
officials, political action committees, Duties, which is designed to prevent for various payment methods and
lobbying and participation in political fraud and errors by sharing the tasks channels, such as card, checks, online
campaigns or any other activities that and benefits for a specific business banking and telephone support.
may involve political influence. Our process among multiple users. Every They also include a wide range
approach is detailed in our Political employee is responsible for properly of behavioral monitoring tools,
Activities Policy. safeguarding all company information. authentication methods, biometrics
and always-on monitoring.
Our lobbying efforts are disclosed Our cybersecurity program is aligned
in accordance with the Lobbying with the five core functions of the Transparent on tax
Disclosures Act. This includes details National Institute of Standards and As strong corporate citizens, we
on issues on which we have lobbied Technology (NIST) Cybersecurity disclose all current and deferred
and total expenditure. Framework to identify, protect, federal and state taxes within our
detect, respond and recover. periodic reports filed with the SEC.
Protecting information security
The protection of our customers’ Cybersecurity and Business Continuity
information is paramount. teams attend regular training to help
Our Information Security Program is ensure competency and to stay
built on a strong foundation of policies up-to-date. Members of staff also
and procedures designed to help participate in external professional
2020 Environmental, Social and Governance Report
13Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB Report
with integrity together our communties environment to drive change
Bringing people together
Collaborating, Creating an
connecting environment
of belonging
2020 Environmental, Social and Governance Report
14Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Our people In this section:
Recruiting exceptional talent
Ramping up diversity in recruitment
Bringing people
Developing our teams
Ongoing performance management
Supporting our people
together
Keeping our people safe in 2020
Spotlight: Nurturing tech talent at the Tech Academy
Deepening diversity
Committed to fair pay and equal opportunities
Pay equity
Our people are what set us apart, The economic and social events of the Building communities
reflecting our values of integrity, past year have shown there is an urgent Focusing on racial equity
ownership, collaboration, curiosity need for leadership. Our collective Improving the diversity of our supplier pool
and candor. Many of our dedicated national reflection on matters of race
team members have been with and culture must serve as an impetus
us for decades, fostering a deep for us to reflect on our own corporate
understanding and knowledge of culture, acknowledging and correcting “We want a workplace where everyone
those we are privileged to call our any barriers that may stand in the way
customers. We are a family of more of realizing the full potential of our
feels a sense of belonging and where
than 17,000 people who come from current and potential employees. every unique perspective is valued.”
the communities we serve. This We strive to unite against injustice of
means our motivation is not only any kind that affects our stakeholders, Tracy Woodrow
professional, but personal – our whether our customers, employees, Executive Vice President and Chief Human Resources Officer
M&T volunteers cheering on participants
efforts have an impact on our own vendors or shareholders. in the Ride for Roswell
neighborhoods and networks.
We strive to build an environment in
Our talent is key to how we do business
and differentiate ourselves in the
market. By living, working, volunteering
which the talents and perspectives of
each employee are valued, respected
and leveraged. We invest in career
60%
of our workforce
23%
of our workforce
455,192
courses completed
and engaging with our communities, development, education and benefit
Our employee
engagement has and 48% of and 14% of our by employees
we have a deep understanding of the programs to develop and nurture
continued to rise our managers managers were
needs of our stakeholders. our teams, while identifying and
while staff turnover were women people of color
cultivating exceptional new talent.
has fallen every
year since 2016
The report covers the period of January 1 — December 31, 2020 and is as of December 31, 2020 unless otherwise noted.
2020 Environmental, Social and Governance Report
15Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Bringing out the best in our people
Recruiting exceptional talent Many of our leaders have joined us via Of these, 25% were women, 10% were partnered with the Thurgood Marshall
Tony Williams, an M&T employee,
volunteers at a nonprofit farm We take a multi-pronged approach to these programs, including Chairman Black and 12% were Hispanic/Latinx. College Fund, a significant talent pipeline
attracting new talent. This includes and CEO René Jones and President for the Black college community and
internal recruiting, leveraging external and COO Richard Gold. Our Executive We also recruit and develop talent other diverse populations.
partners, employee referrals and Associate (EA) program recruits top-tier through our Relationship Management
five unique development programs MBAs into full-time roles at the bank, Development Program for talent We built an alliance with William
focused on bringing in top talent supported with a one-year development interested in Commercial Lending Paterson University, a Hispanic-serving
through campus recruiting. program including a banking simulation, and sales and the Operational institution, and we strengthened
innovation project, networking Development Program for talent relationships with women’s colleges
For over 30 years, our Executive and communication course. Our focused on operations and logistics. such as Barnard College, Wellesley
Associate and Management Management Development Program College and Smith College. Activities
10%
Development programs have attracted (MDP) recruits recent undergraduates, included M&T representation on panels,
and developed talent that was alongside a cohort of exceptional internal in workshops and at career events.
instrumental to our organization. talent, into full-time roles with a one-year We’ve had an ongoing partnership with
development program. EAs and MDPs of Technology Development Program
the HBCU, Delaware State University, to
receive ongoing benefits from the strong participants were Black compared to
recruit into our development programs
network of leaders throughout the bank 6.2% industry average1
and to offer Executive Mentoring from
“The Management Development Program and career counseling. senior managers at M&T to juniors and
seniors of color.
provided me with critical exposure to In 2019, we launched a Technology Ramping up diversity in recruitment
Development Program (TDP) focused
form a deep understanding of M&T’s on recruiting undergraduates with
To help meet our recruiting goals for To deepen connections with the
diversity, we have launched several communities we serve, in 2020 we
culture of leadership and collaboration experience in software engineering. new initiatives to augment our engaged in recruiting efforts with The
along with an immediate network within The aim of the program is to expand traditional recruiting efforts. Consortium, the National Black MBA
the pipeline of tech talent into the
the bank for continued professional organization while increasing diversity. In 2020, we expanded our relationships
Association, Reaching Out MBA, MBA
Veterans, Prospanica, the National
development and mentorship.” TDP is a two-year rotational program for graduate and early careers
Society of Black Engineers, the Society
with a self-directed model allowing recruitment to 13 Historically Black
of Hispanic Professional Engineers,
TDP participants to build essential soft Colleges and Universities (HBCUs).
Nigel Smith Black Is Tech and the Technica
skills as they develop and manage the These include Bowie State University,
2019 Management Development Program, Skidmore College Corporation in 2020.
program in concert with their roles. 2020 Lincoln University and the University
welcomed in our second TDP class. of Maryland Eastern Shore. We also
1A
ccording to the Bureau of Labor statistics.
2020 Environmental, Social and Governance Report
16Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Bringing out the best in our people
continued
Our hunger to find the talent who we This ensures that a broad range of due to the pandemic, but we look To deliver a consistent framework
may not reach through traditional perspectives shapes our growth forward to making the state-of-the-art and guide leadership development,
recruitment channels led us to pilot and helps us to better reflect and facility our hub of learning and growth we’ve defined the leadership qualities
our Talent Acquisition Ambassadors represent the communities we serve. again. To ensure training is as powerful, most highly valued at our organization
program in 2020 which has radically effective and as time-efficient as through leadership competencies An M&T leader:
transformed the diversity in all the Developing our teams possible, in 2020 our Enterprise (see spotlight). This enables staff to
We want our employees to • Creates vision
programs that we offer. Forty of Training Optimization team reassessed visualize and take concrete steps to
our colleagues across our network grow and succeed individually, in course content to streamline it and progress toward leadership success. • Inspires followers
divisions were trained and tasked with high-performing teams and through remove duplication. Despite these • Builds alliances
expanding community relationships the stakeholders they serve. We changes, we still saw more than
provide opportunities to enhance • Influences
and promoting awareness of career 450,000 training courses completed.
opportunities at M&T among diverse knowledge, boost performance This equates to an average of 21 hours • Delivers results
talent pools, in particular in campus and maximize positive impact. logged on average per employee. This • Develops talent
environments. E-learning and in-person training compares well to 2019, where the
• Innovates
are available via our learning and average training hours per employee
Our Talent Acquisition Ambassadors were 24 hours. • Grows value
spent 300 hours in 2020 advancing development program Workday
diversity, equity and inclusion in myriad Learning. Courses, classes and Ongoing performance management
ways, including speaking on university webinars cover personal and Development doesn’t take place
and college panels, at community professional development, leadership just in classes and courses: it’s part
workshops and at conferences such as skills, technical skills and specialized of everyday work. We believe that
Black is Tech. They also attended virtual options for specific roles. Our learning ongoing performance management
career fairs; 71% of the fairs support development program is geared to helps staff excel in their roles while
individuals from diverse backgrounds. identifying internal high potential preparing them for next steps.
talent from under-represented The essential elements of
Through all of these partnerships groups and accelerating their performance management are
and programs, plus recruiting events progression through training and measurable goals based on our
and networking sessions, we have sponsorship into leadership positions. purpose and values; managers being
engaged with Asian American/Pacific required to provide ongoing, informal
Islander, Black, Latinx and LGBTQ+ We are proud that our Center for
Learning and Development in Buffalo assessment; and staff requesting
candidates, women, veterans and and giving feedback.
individuals with disabilities, as well received a $4 million overhaul in 2018.
as other diverse groups. We pivoted to digital delivery in 2020
2020 Environmental, Social and Governance Report
17Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Bringing out the best in our people
continued
Supporting, motivating, and These efforts to listen and learn from • a confidential support program,
“To show their support for my boys, empowering staff increases our teams have resulted in consistently online clinic courses and an
engagement and productivity. high levels of engagement and low
each of my team members went out on So those are the foundations of levels of turnover. The average tenure
always-on behavioral health hotline
• contributions to retirement
an Autism Walk in their neighborhood our Manager Acceleration Program, for staff at M&T is 10 years, compared
savings plans
with their families and wore blue (which which offers comprehensive training to an average of 4.8 years for financial
• online budget coaching
for any employee moving into a services2. We track engagement
is the color we use in the Autism managerial role. A science-based through our regular Employee • the Tuition Assistance Program
Community to show support). They approach to leadership is offered by Engagement Surveys. In 2020, our for financial training and certified
the Precision Leadership® program. employee willingness to recommend us financial planning courses. In 2020,
surprised me today with a picture As a collaboration with the Aubrey as an employer hit a high of 88%. This 201 employees benefited from
during our team meeting. I’m so grateful Daniels International consultancy, this compares to an overall banking industry the program
to have all of them on my team! This is training uses the science of behavior average of 87%, according to employee
$1.5m
to turn concepts into practices, survey experts Perceptyx. Our staff
one of the reasons I have stayed at M&T and those practices into effective turnover also fell to a historic low of
Bank. We have the best people!!” leadership habits. 8%, in part because of the pandemic.
Supporting our people We believe that happy and healthy
provided to employees to reimburse
Claudia Gamero For the past 20 years we have been staff are key to exceptional customer
tuition costs
Senior Sales Strategy Manager conducting employee engagement experience and value creation.
surveys. We carefully analyze the We support our colleagues’ well-being
Keeping our people safe in 2020
results and plan actions to improve with the following benefits:
Ensuring the health of our employees
our people’s experience. This
• a medical plan, supported by and our customers is always our top
covers all our team members from
executive management through concierge vendors to help employees priority. At the start of the COVID-19
navigate healthcare challenges pandemic, we acted swiftly. In less
to frontline employees. Examples
• paid time off, ranging from 15 to than one week, we rapidly shifted 85%
of action over the past few years
30 days, depending on job grade of the workforce to a remote working
include launching an initiative on
and length of service environment and began the process
job architecture to evaluate and
of outfitting our essential on-site
normalize compensation, developing • 12 weeks of paid parental leave,
employees with protective equipment.
an equitable Parental Leave policy and with job reinstatement protection
adapting our Paid Time Off benefit. on return. M&T also offers break
time and private rooms for 2 According to the Bureau of Labor statistics.
nursing mothers
2020 Environmental, Social and Governance Report
Name 18
OccupationIntroduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Bringing out the best in our people
continued
During the pandemic, our approach Learning and Development created These motivations are at the It’s focused on people who are
has been to proactively protect and remote-ready learning courses, while heart of our thriving Tech unemployed or underemployed
support staff, while ensuring we flexibility around scheduling helped Academy program. Its purpose due to COVID-19, who are
are listening to their concerns and those juggling care and working Nurturing tech talent is threefold: to upskill or reskill entry-level and need to upskill,
responding accordingly – in particular commitments. at the Tech Academy tech professionals; to increase or who are from underserved
by taking weekly ‘pulse’ surveys. These the technical literacy of our segments of our communities.
helped to regularly touch base with Adjustments were made to pay and The way customers engage with workforce; and to nurture new We’ve already enrolled
our employees to see how they were benefits with additional paid time off, financial organizations like M&T talent from non-traditional nearly 500 people.
doing and to get feedback on how to and extensions on the time available is being transformed through backgrounds.
help them feel safe and stay healthy to use carried-over paid time off. technology innovation. In this Candidates from nontraditional
throughout the crisis. A temporary 15% pay premium was fast-moving world, technology In 2020, acutely aware of the backgrounds are the focus
introduced for those working on-site. skills, experience and expertise negative impacts of COVID-19 of our other exciting project:
As a result of this feedback, we were Medical benefits were enhanced to are key to ensure that we offer on employment opportunities, The Z Development Program
able to change practices to meet cover COVID-19 diagnostic testing the best service, where and we focused on free learning Apprenticeship. Focused
the needs of both staff and our and time off for vaccinations, as well when the customer wants it. resources, instructor-led virtual on building talent for the
customers. We improved working as stress and mental health support. To stay at the forefront of this courses and remote immersive Z platform, this collaboration
from home systems and created Free membership to Care@Work was change, it’s crucial we’re able to courses for those economically with IBM® and Franklin
better tools and resources to support provided to help working families bring in the best and brightest impacted by the pandemic. Apprenticeships® trains
employees with a dedicated New at home access support for caring tech talent, and enhance We also established the Tech mainframe developers and
Normal Playbook and New Normal responsibilities, we sent high quality the skills base of our current Learns Teams page as a forum system programmers via
Hub. We supported employees with face masks to all employees and colleagues. where our people can learn not 12 months of virtual classes
wellness resources, conducting we waived on-site parking fees. just from experts, but from and on-the-job mentoring. Ten
a monthly webinar series called Perpetually upskilling our people each other. apprentices are participating in
Balancing Your Personal and On-site, we modified our delivery helps us retain our competitive its first phase.
Professional Life. models to improve safety, including edge and we also realize That cooperative spirit drives
adjusted opening hours, drive ups, ATM that providing technological the Tech Academy, and it’s given
We created access to our network and appointment only options. When opportunities to those from rise to two exciting projects.
through secured virtual private networks, we started a phased re-opening on July non-traditional backgrounds can The WNY Tech Skills Initiative –
ensured staff had office equipment. 20, we made mask wearing mandatory transform careers and lives. a collaboration with regional
DocuSign, e-sign capabilities and virtual in common areas. We installed social stakeholders and industry
notaries were introduced. distancing barriers, increased janitorial partners such as General
and cleaning services in all buildings Assembly – is a free,
and branches, and arranged weekly community-facing program.
PPE and care package deliveries.
2020 Environmental, Social and Governance Report
19Introduction Doing business Bringing people Working with Protecting our Using finance Conclusion SASB report
with integrity together our communities environment to drive change
Creating an environment where everyone belongs
Deepening diversity • We aim to have diverse leadership Initiatives include sponsorship and We’ve made considerable investments “At M&T Bank, our Diversity
Visible change is the aim of our pipelines at all levels that reflect mentorship programs, unconscious in our compensation programs over Equity and Inclusion 2025
diversity, equity and inclusion our broader employee base and bias training, hiring and promotion the last few years, including increasing
strategy, driven by the voices of our those we serve. programs, product and service our minimum pay rates to $15-18 per Vision, launched in 2020,
people. Those voices were key to development, journey mapping the hour in 2020, depending on geography, focuses our efforts around
To promote a diverse, equitable and
helping us develop our strategy: unique experiences of our diverse twice updating our salary ranges to three major themes. Creating
inclusive environment, our Diversity talent and many more. more accurately reflect the market,
• We want to be the bank of choice and Inclusion office, led by our Chief an ecosystem where our
and rearchitecting our jobs so that they
for diverse customers in the Diversity Officer, works across the A key initiative to increase diversity more precisely articulate the valuable
colleagues and communities:
communities we serve organization to engage the hundreds in our leadership is our Rising Leaders work performed by our colleagues –
• We want our colleagues to truly of passionate employees leading Development Program. The 11-month • Can see themselves
resulting in an off-cycle pay increase
feel like they belong and can be change initiatives. program seeks high potential diverse for 7,200 of our colleagues. at every level of the
their authentic selves at work candidates to accelerate their careers organization.
through skills building, networking, Pay equity
mentorship and exposure to At M&T, we are committed to fair and • Are encouraged and
Gender diversity at M&T in 2020 Ethnic diversity at M&T in 2020 leadership. The benefits continue equitable pay practices – it is simply supported to be their best
(Female %) (People of color %) long after the program has finished, the right thing to do. We maintain pay authentic selves.
as a strong and vibrant alumni network guidelines and compensation programs
drives change across the bank. Since – such as market-based salary ranges, • Are empowered to help
its launch in 2014, 273 people have promotional and lateral guidelines and build, develop and lead
participated. annual compensation cycles with multiple
leadership reviews embedded within the us to being the bank of
Committed to fair pay process – to help ensure employees are choice FOR each and every
and equal opportunities paid appropriately for their job. one of the many diverse
Our compensation philosophy
includes elements designed to The process does not stop there – we communities we serve.”
reinforce our purpose and values, regularly conduct pay evaluations to
engage our colleagues and maximize identify outliers, making adjustments Glenn Jackson
long-term organizational performance. where warranted to address disparities. Chief Diversity Officer
Executive Professional: 51%
Executive Professional: 19%
management: 21% management: 6% We employ various governance tactics
to ensure that our colleagues are paid We are familiar with the regulatory
Non-executive All other Non-executive All other
management: 49% employees: 71% management: 14% employees: 29% fairly based on the job that they hold landscape and are continuously tracking
and their performance in that role. developments in the field that will guide
Categories based on the EEOC job classification guide our path forward in this critical area.
2020 Environmental, Social and Governance Report
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