Describe your approach to incorporating environmental, social, and governance (ESG) factors into your credit analysis |
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Our approach to incorporating ESG into our credit analysis includes employing a dedicated Environmental Risk Officer who provides expertise and risk assessment related to real estate lending as well as lending to environmentally sensitive industries. |
Describe policies that determine your approach to the incorporation of ESG factors in credit analysis |
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As detailed in our underwriting guidelines, an environmental risk assessment is a requirement for all multifamily and commercial real estate loans and is a key consideration when lending to companies in environmentally sensitive industries. Additionally, the Credit Policy Committee regularly (no less than quarterly) reviews and provides guidance on portfolio segments, industries, and transaction types that may pose increased risk, including environmental and social risks, which we address by noting a reduced credit appetite and higher level of approval authority. |
Discuss how you incorporate ESG factors when estimating credit losses over the contractual term of your financial assets |
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In addition to addressing environmental and social risks at the time of underwriting, environmental risk is incorporated within the qualitative factors of Banner's CECL modeling. |
Describe your approach to implementation of the aspects of your ESG incorporation practices |
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Not Disclosed |
Describe your oversight/accountability approach to the incorporation of ESG factors |
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Our ESG program is primarily overseen by our Board of Directors' Corporate Governance/Nominating Committee. The Board's Audit Committee reviews our external ESG disclosures and related controls, the Board's Risk Committee provides oversight regarding climate risk, and the Board's Credit Risk Committee reviews and approves the Environmental Risk Assessment Policy. Our 2022 ESG Highlights Report marked a new chapter in our commitment to transparency on our ESG practices and provides details on the many ways in which Banner has been working to address ESG considerations across our footprint. Since our inaugural report in 2022, we have continued to disclose our ESG practices within our annual ESG Report as a core component of our program objectives. |
Discuss whether you conduct scenario analysis and/or modeling in which the risk profile of future ESG trends is calculated at the portfolio level of commercial and industrial credit exposure |
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Not Disclosed |
Discuss ESG trends that you view as broadly applicable in terms of their impact on sectors and industries, as well as the trends you view as sector- or industry-specific |
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Not Disclosed |
Describe significant concentrations of credit exposure to ESG factors |
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Not Disclosed |
Describe how ESG factors are incorporated in the assessment of and influence your perspective on traditional macroeconomic factors |
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Not Disclosed |
Describe how ESG factors are incorporated in the assessment of and influence your perspective on traditional microeconomic factors |
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Not Disclosed |
Disclose additional quantitative measures related to your approach to the incorporation of ESG factors in credit analysis |
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Not Disclosed |