Investments and Tax Credit Investment relationships, collaborating with affliates and partnering The Standard has been investing and building this Programs portfolio for more than two decades. In total, we with nonprofts and community organizations. The investments for our nearly $60 billion portfolio have contributed approximately $695 million to these The Standard commits capital to investments in low- represent an important part of our footprint. It’s also an projects, with more than $76.8 million contributed income communities that need housing and related opportunity for our actions to be guided by our values. between 2021 and 2022 alone. These projects promote infrastructure investment. The company invests in four important public policy goals designated by lawmakers types of projects: ESG Bonds primarily focused on the creation and preservation of • Low-income housing tax credit, or LIHTC, In recent years, ESG bonds have become a small projects — Subsidizes the acquisition, affordable housing and enhancement of economic but growing component of our investment strategy. opportunities in low-income communities across the construction and rehabilitation of affordable ESG bonds offer many of the same benefts as nation. rental housing for low- and moderate-income traditional bonds, with additional ESG objectives to use tenants. investment dollars for to make a positive difference. New Market Investments • New market tax credit, or NMTC, projects The Standard’s investments in New Market Tax Credit — Uses tax credits to make investments in projects are directly channeled into low-income areas, During 2022, The Standard purchased ESG bonds with a book value of about $188 million. Although our distressed communities. resulting in profound benefts to the entire community. • The Standard contributed funds directly into Historical tax rehabilitation credit, or HTRC, ESG bond holdings represent a small portion of our projects — Investments to convert designated Community Development Entities, which are special- overall bond portfolio, ESG bonds are part of how we purpose entities expressly authorized to invest in historical structures into useable housing, meet the obligations and promises we make to our customers and achieve ESG objectives. generally in areas where housing is in short qualifying projects as determined by supervising federal and state government agencies. We committed capital supply. of approximately $20 million to fve specifc projects ESG bonds investments held by The Standard support • Opportunity zone, or OZ, projects — a myriad of projects including low-cost, long-term Investments in an economically distressed area spanning from 2020 to 2025: fnancing for commercial and residential property • Corning, California — Develop two desperately as determined by federal and state agencies. owners to fund energy effciency, water conservation needed medical buildings, a community center OZ projects can embrace a broad spectrum of and renewable energy projects including solar. businesses intended to spur employment and and an administration building for the Paskenta economic development. Band of Nomlaki Indians. Targeted Tax Credit Programs • Longview, Texas — Expand a facility that Through targeted tax credit investment programs, The centerpiece of our strategy was sourcing the manufactures air conditioning and heating The Standard invests in projects across the country LIHTC and NMTC investments in designated OZs equipment in a severely distressed low-income that reinforce the company’s strong commitment where possible to maximize our contributions and area, leading to signifcant job creation at a livable to reducing inequalities and fostering healthier impact. wage ($45,000 per year plus benefts) for low- communities. The company is guided in this work by income workers. a philosophy of forming strong local and community 2022 Environmental, Social and Governance Report 16