Sustainable Banking Policy Statement

• August 5, 2022

CalBank recognizes the impacts of Climate Change on the Earth, and the consequent risks it poses to life, ecosystems, economies, businesses and individuals. We also recognize that our long-term success as a business depends on the long-term prosperity of the society we serve.

We shall therefore use our products, services, and activities to help accelerate the transformations necessary to achieve the Sustainable Development Goals (SDGs). We shall apply these principles to our internal operations and our external portfolios through the implementation of a documented Sustainable Banking Framework. We specifically commit to the following Sustainable Banking Policy Objectives:

1. We will integrate environmental, social, and governance considerations and objectives into our business strategy and key business decisions, and leverage key governance structures such as the Board of Directors and the Internal Audit Department to ensure accountability.
2. We will allocate sufficient financial and human resources to establish, implement, and monitor a documented Sustainable Banking Framework that includes compliance provisions for relevant national regulations and international sustainability standards.
3. We will work with our clients to identify, measure, mitigate and monitor environmental and social risks in our lending and other financial products and services including transitional risks.
4. We shall promote financial inclusion and continually identify opportunities to encourage environmental and social innovations and improvements in our products, services and client interactions.
5. We will identify and effectively manage the environmental and social aspects and impacts of our internal business operations including our people, natural resources, materials, wastes and emissions.
6. We will set sustainability targets, monitor our progress, and periodically disclose our performance to our internal and external stakeholders.
7. We will regularly review the implementation and outputs of our Sustainable Banking Framework and take actions for continual improvement.
8. This Sustainable Banking Policy shall be communicated to all our employees as well as our external stakeholders. The policy shall be reviewed every year by our Board of Directors.