Environmental, Social and Governance Report
The Environmental, Social and Governance Report spotlights our efforts to ensure the long-term sustainability of the company as well as measure and manage our company’s investment in our customers, communities and environment.
2022 Environmental, Social and Governance Report
Table of Contents A Message from Our President and CEO ...............................................1 Employee Giving .....................................................................................................14 Employee Giving Campaign ..........................................................................14 About This Report ......................................................................................2 Denim Impact Fund .......................................................................................14 About StanCorp Financial Group, Inc., and The Standard...................2 Feature: Denim Impact Partner Uses Funds to Prioritize Student Safety .......14 Volunteerism ...........................................................................................................15 Social Focus ...............................................................................................3 Volunteer Expo ..............................................................................................15 Investing in Our Employees .......................................................................................4 Board Service ...............................................................................................15 Talent Attraction, Retention and Development...........................................................4 Investments and Tax Credit Investment Programs ..................................................16 Total Rewards ...........................................................................................................4 ESG Bonds ...................................................................................................16 The Standard’s Commitment to DEI.......... .......................................................................5 Targeted Tax Credit Programs .......................................................................16 Our Customer Focus .......................................................................................5 New Market Investments ...............................................................................16 Our Employee Focus .......................................................................................5 Opportunity Zone Investment — Crenshaw Lofts Project ............................. 17 Our DEI Achievements ...................................................................................6 Environmental Focus...............................................................................18 Our Vision .......................................................................................................6 Championing Sustainability ...........................................................................19 Diversity, Equity and Inclusion Steering Committee .........................................6 Feature: Trash and Recycling Centralization Project Reduces Waste ............19 Feature: Black Insurance Industry Collective ...................................................6 Energy ...........................................................................................................19 Feature: Morgan State Actuarial Scholarship Program ....................................7 Active Transportation .....................................................................................20 Feature: Human Rights Campaign Foundation’s Corporate Equality Index ......8 Water ............................................................................................................20 Employee Resource Groups .....................................................................................8 Feature: Printer Consolidation — Reducing Expense and Paper Usage........20 ERGs Making a Difference — Spotlight on Programming ...............................9 United Nations Sustainable Development Goals .....................................................10 Climate ..........................................................................................................20 Communities ...........................................................................................................10 Travel ...................................................................................................20 Giving and Other Key Data Points .................................................................10 Buildings .............................................................................................20 Community Partner Spotlight — Native American Youth Climate Change.............................................................................................21 2021 Greenhouse Gas Emissions .......................................................21 and Family Center ......................................................................................... 11 Supplier Diversity .................................................................................................... 11 Enterprise Risk Management: Focused on Climate Change ................22 Diverse Supplier Spotlight ............................................................................. 11 Meiji Yasuda Group Sustainability Policy .......................................................22 Corporate Giving .....................................................................................................12 Governance Focus...................................................................................24 Healthy Communities ....................................................................................12 Responsible Investing ...................................................................................24 Disability and Empowerment .........................................................................12 Business Conduct Guide ..............................................................................24 Cultural Development ....................................................................................12 Information Security and Customer Privacy ...................................................24 Education and Advancement ........................................................................13 Board of Directors .........................................................................................25 The Standard Charitable Foundation ......................................................................13
A Message From Our President and CEO At The Standard, we help people achieve fnancial In addition, you’ll learn more about our renewed focus well-being and peace of mind. on two other SDGs: • Sustainable Cities and Communities Our company was founded in 1906 in Portland, • Oregon, with a focus on local service and giving back Good Health and Well-Being to the community. We’ve certainly grown since then, with millions of customers across the country and Another achievement I’m particularly proud of is our employees working in almost every state, but we are 2022 recognition as a Best Place to Work for Disability still guided by this commitment to our customers and Inclusion by the American Association of People our communities. with Disabilities and our 100% score on the Disability Equality Index. Helping people who have experienced a Honoring that commitment requires fnancial strength, disabling event is a core part of our business. Focusing operational stability, expertise and integrity along with on an inclusive workplace ensures we have the ensuring our actions contribute to a sustainable future. experience and empathy to make a real difference for our customers. In this report, you’ll learn about some of The Standard’s environmental, social and governance activities in 2022 We’re excited and energized by this work because it Dan McMillan refects who we are as a company. At The Standard, that helped ensure we can always be there for those President and CEO we strive to take care of our customers and each other, who rely on us. The report highlights how we support our communities and the environment we all share. We a healthier environment, stronger communities, an inclusive culture and a governance approach aligned are driven to make a difference. with our strong, shared values. I’m glad you are taking the time to learn more about I’m especially pleased with the work we did last year how we give back. to inventory our greenhouse gas emissions. With this data, we can better understand how our sustainability efforts reduce our carbon footprint. This aligns with our work supporting the United Nations sustainable development goals on climate change. 2022 Environmental, Social and Governance Report 1
About This Report The Standard offers a range of products and services The Environmental, Social and Governance Report Demographics spotlights our efforts to ensure the long-term including: 3,585 employees sustainability of the company as well as measure and • Group and individual disability insurance • 59.2% are female manage our company’s investment in our customers, • Group life and accidental death and • communities and environment. It also highlights how 24.9% identify as racially or ethnically diverse dismemberment insurance • we create a workplace culture in which each employee 7.6% identify as disabled • Group dental and group vision insurance is valued and respected. • 1.2% identify as a military veteran • Voluntary group accident, critical illness and This report includes relevant information from hospital indemnity insurance People leaders The Standard about fnances, activities, data, statistics • • Absence management and paid family leave 49.7% are female and awards related to governance, workplace culture, services • philanthropy and environmental sustainability for 2022. 13.5% identify as racially or ethnically diverse • Retirement plans products and services • Some data has been rounded to the nearest decimal. 5.2% identify as disabled • Individual annuities • 1.6% identify as a military veteran For questions about this report, contact • Origination and servicing of fxed-rate [email protected]. Financial commercial mortgage loans • $4.18 billion in annual revenue • Investment advice About StanCorp Financial Group, Inc. • and The Standard $59.8 billion in assets under management and StanCorp Financial Group is a subsidiary of administration (as of Dec. 31, 2022) A leading provider of fnancial products and services Meiji Yasuda Life Insurance Company, a mutual insurer for employers and individuals, StanCorp Financial Governance Group, Inc., is marketed as The Standard through based in Tokyo, Japan. Director tenure — average of 6.3 years its subsidiaries: Purpose Among our seven independent board directors and 13 • Standard Insurance Company In business since 1906, The Standard is a family of directors in total: companies dedicated to helping customers achieve • • The Standard Life Insurance Company of 23% are female New York fnancial well-being and peace of mind. • 46% identify as racially or ethnically diverse • Standard Retirement Services Headquarters • Customers StanCorp Mortgage Investors Portland, Oregon More than 8 million nationwide • StanCorp Investment Advisers • StanCorp Real Estate • StanCorp Equities 2022 Environmental, Social and Governance Report 2
Social Focus
The Standard offers a competitive benefts package Investing in Our Employees Our company relies on a strong learning culture, to support employee wellness at work as well as away At The Standard, our employees focus their expertise with every employee given access to formal and and compassion on personally connecting with and informal educational offerings. We encourage and from the job. Benefts and perks include: supporting our customers, which translates into a culture offer support for everyone to bring curiosity and of caring and respect. It’s a genuinely collaborative creativity to all aspects of their work — focusing on Health and Wellness • Comprehensive medical coverage through PPO atmosphere where employees are inspired to do their continuous improvement of our products and services, and consumer-directed health plans (including best every day. work processes and the ways we engage with our an annual employer health savings account communities. Sustaining and strengthening this culture is an important contribution) aspect of our continued success. The company Total Rewards • Dental and vision insurance At The Standard, our people are critical to our success. encourages and supports employees in their efforts to • Enhanced mental health support services We are committed to providing a total rewards build and enhance their skills, develop fulflling careers package that attracts, retains and continuously • and deliver positive results for our customers, company Short-term and long-term disability insurance, life motivates our employees to be their best. Recognizing and communities. Our average employee tenure is insurance and supplemental insurance products that the right work environment to encourage employee 10 years across the company and 16 years for our (Accident, Critical Illness and Hospital Indemnity) engagement and performance varies, we adopted leadership team. That’s well above industry and national • Expert second medical opinion service a fexible workplace model. With this approach, the benchmarks and a testament to our strong culture. majority of roles are eligible for either fully remote or Financial and More • Annual incentive bonus plans linked to company Talent Attraction, Retention and Development hybrid work. We believe that people make a difference, especially and individual performance Our compensation strategy is performance-driven, • 401(k) matching contribution up to 5% of when they act with integrity and determination. This providing market-competitive pay plus incentives for all earnings — no vesting required and additional belief allows us to work as a team to put people frst and employees and above-market pay and incentives for 4% company contribution regardless of deliver outstanding customer service. We’ve created high performers. We also regularly conduct pay equity employee contribution level an environment where people are empowered to make assessments to ensure we offer fair and competitive good choices. • Home offce equipment setup and additional compensation. This approach inspires our people equipment allowance to reach their potential and ultimately drives our The Standard is committed to supporting a remote • Financial wellness support through LifeCents workforce. While we’re based in Portland, Oregon, company’s success. • Tuition assistance program employees in many of our roles can work from anywhere in the U.S. In fact, 77.5% of the 533 new As a leading provider of group insurance solutions and Time Away fnancial services, we help our clients establish beneft employees The Standard hired in 2022 work in states • Generous PTO accrual options that attract and retain good employees, and other than Oregon. • Company-paid holidays (11 annually) we’ve taken our own advice in selecting benefts for our • Annual wellness days employees. 2022 Environmental, Social and Governance Report 4
Parental Benefts The Standard’s Commitment to DEI to how we handle claims, we’re improving our model • Dependent care assistance for social determinants of health as part of our Taking a holistic, people-centered approach is how we commitment to identify and address health inequities • do business at The Standard. It’s part of our culture Paid parental leave among our customers. and affects every decision we make — including • Adoption and surrogacy assistance (up to $5,000) how we support diversity, equity and inclusion. Our All these efforts are helping us achieve our goal of being commitment to DEI is essential to how we serve our • Subsidized backup child care there for our customers when they need us. customers, strengthen our communities and attract Community Engagement and keep the best employees. • Our Employee Focus Paid volunteer hours and hosted volunteer opportunities Our Customer Focus At The Standard, we continue making progress on DEI in our workplace. We strive to maintain a welcoming A critical aspect of our business is working to meet • Company match (two-for-one) on employee environment where everyone can bring their authentic contributions to nonprofts and schools the diverse needs of our customers including the selves to work, making it easier for our employees to be employees of employers who purchase our group • Employee resource groups there for those who rely on our products and services. products and services. Accessibility is a key part of that focus. It encompasses multi-language support Another key element of employee benefts is In 2022, we launched the Compass Mentoring Program for customers who contact our call center. It involves The Standard Recognition Program, which supports to connect employees from underrepresented groups making communications accessible by complying our performance-driven culture with broader and with senior leaders. These senior leaders provide with Web Content Accessibility Guidelines, or WCAG, more frequent recognition across the company for feedback, development planning and mentoring to help 2.0. Doing so yields materials that allow customers to achievements in key performance areas. Through drive career growth. Based on positive feedback, the fnd, understand and use information the frst time they the program, employees at all levels can award encounter it. program will be expanded in 2023. points to recognize colleagues and team members for key behaviors and results as well as continuous We’ve updated our HR record system to give We continue to focus on inclusive product improvement efforts and other achievements candidates and employees a more inclusive experience. development. This allows more customers to easily that embody the company’s values. Employees These changes include nonbinary gender identifcation access our benefts. Our best-in-class Workplace can redeem their accumulated award points for SM and personal pronoun options. We also continue to Possibilities program relies on a whole-person merchandise and experiences. The company invest in our employee resource groups, which connect approach to employee disability, meeting people where also recognizes and rewards milestone service they are. It also has a proven track record in return-to- with members regarding career, culture and community. anniversaries and outstanding employee volunteer work and stay-at-work support. service in our communities. Employees on short-term disability can use our Health Advocate service, which provides a personal advocate to help navigate the health care system. When it comes 2022 Environmental, Social and Governance Report 5
Our DEI Achievements Our people-centered approach led to external Black Insurance Industry Collective recognition for our DEI efforts. For six consecutive years, we’ve received a perfect score of 100 on the BIIC aims to accelerate the advancement of Human Rights Campaign Foundation’s Corporate Black professionals with the goal of increasing Equality Index. This acknowledges our commitment to BLACK representation of Black leaders in mid-level to corporate policies and practices related to workplace INSURANCE executive roles in the insurance industry. BIIC equity for LGBTQ+ people. In 2022, we scored 100% INDUSTRY offers: on the Disability Equality Index and our company was • A tailored leadership development program listed as a Best Place to Work for Disability Inclusion. COLLECTIVE for emerging leaders • Sponsorship and mentoring opportunities Dan McMillan, president and CEO of The Standard, The Standard is a founding sponsor of the Black is one of 2,400 CEOs who signed the CEO Action for • Educational webinars such as “Black Insurance Industry Collective, the frst industry- Diversity and Inclusion initiative. Dan has pledged to Authenticity at Work” and “An Overview of fueled effort solely dedicated to the development of cultivate open dialogue, provide training, share best Black professionals. Career Opportunities in Insurance” practices and engage our board of directors in our DEI • A four-day Executive Leadership Program work. “Whether you are a recent college graduate designed specifcally for Black professionals exploring career opportunities in the insurance in the industry Our Vision industry or a mid-level professional seeking DEI goes hand in hand with our people-centered opportunities to lead, great careers rarely happen This sponsorship is part of The Standard’s focus. We’re seeing it positively transform our by accident,” said Dickson Kamasale, senior multiyear commitment to increase representation business, industry and workplace. The Standard director of IT Finance at The Standard. “For Black and advancement of Black professionals in the is committed to building a better future for all our professionals, having access to supportive industry insurance industry. customers, communities and employees. To get there, networks, mentoring opportunities and training is we’ll continue to work toward greater DEI in all aspects critical.” of our business. In 2019, the percentage of Black Americans in the Diversity, Equity and Inclusion Steering insurance workforce was about 12.4%. A group of Committee racially diverse insurance industry leaders gathered The Standard’s Diversity, Equity and Inclusion Steering in 2020 to address the challenge and the result Committee, composed of senior leaders from across was the creation of BIIC. the company, was established in 2015. The committee ensures diversity and inclusion activities are aligned with The Standard’s overall business strategy and (continued on page 8) 2022 Environmental, Social and Governance Report 6
Morgan State University Actuarial Scholarship Program Actuarial science — using mathematical Together, The Standard and MSU developed a and statistical methods to assess risk — is program to support underserved students with a cornerstone of our company’s success fnancial need and to provide a renewable four- and an in-demand skillset across industries. year scholarship for those pursuing a career as Historically, there have been barriers to diversity an actuary. In addition to fnancial support, the in the discipline, including lack of awareness scholarship program includes a paid internship about career options among traditionally opportunity at The Standard, allowing participants underrepresented groups as well as fnancial to earn money working part-time during the school barriers for professional exam materials and year or over the summer. credentialing fees for those who choose this career track. “The Morgan State scholarship is a signifcant next step in our DEI journey,” said Sally Manaf, As part of a larger effort to foster diversity in the vice president, corporate actuary and chief risk actuarial community, employees in the Actuarial offcer at The Standard. “It reinforces our shared Community of Practice at The Standard proposed commitment to diversity, sends a clear message creating an actuarial scholarship at a Historically about our company values, supports our recruiting Black College or University to enhance access to efforts and helps energize and strengthen our the profession and simultaneously raise awareness actuarial community.” about The Standard as a future employer. The ACoP contacted Morgan State University in Baltimore, Maryland. MSU is the only HBCU offering a Bachelor of Science in actuarial science and a Bachelor of Science in mathematics with a minor in actuarial science. Courtesy of Morgan State University 2022 Environmental, Social and Governance Report 7
helps standardize HR and talent acquisition practices that accelerate efforts to meet our diversity goals. The Human Rights Campaign Foundation’s Corporate Equality Index committee also creates strategic accountability for results, offers governance and oversight on diversity efforts and promotes companywide communication on For the sixth consecutive year, The Standard The CEI rates companies on detailed criteria falling progress. received a score of 100 on the Human Rights under four central pillars: Campaign Foundation’s 2022 Corporate Equality • Nondiscrimination policies across business Employee Resource Groups Index, the nation’s foremost benchmarking survey entities The Standard’s employee resource groups, each with and report measuring corporate policies and • an executive sponsor and funding, engage members practices related to LGBTQ+ workplace equality. Equitable benefts for LGBTQ+ workers and and the broader company through three pillars: their families • • The results of the 2022 CEI showcase how U.S.- Supporting an inclusive culture Career — How are we helping members based companies are not only promoting LGBTQ+- • enhance their careers? How can we be a talent Corporate social responsibility engine for the company? friendly workplace policies in the U.S., but also for the 57% of CEI-rated companies with global • Culture — How are we creating connection and operations who are helping advance LGBTQ+ a sense of belonging? How are we contributing inclusion in workplaces abroad. The Standard’s to everyone feeling welcome at The Standard? efforts in satisfying all the CEI’s criteria earned a • Community — How are we connecting and 100% ranking and designation as one of the Best getting involved with the communities where we Places to Work in 2022. live and work? Each ERG brings together people who want to make a difference in specifc areas that beneft our company and our community. Celebrating Racial and Ethnic Diversity, or CRED Mission: Honoring the diverse heritage and cultural backgrounds of the employee community at The Standard. 2022 membership: 269 2022 Environmental, Social and Governance Report 8
Green Team Women’s Career Network promote diverse representation in children’s literature. Mission: Promoting business practices and employee Mission: Offering members opportunities to foster The effort raised more than $16,000 for SMART actions that further efforts to create a sustainable personal and professional growth through networking Reading, a statewide literacy nonproft. SMART future for our company, our communities and our events, educational seminars and community volunteer Reading’s “A Story Like Mine” initiative aims to fll environment. opportunities. children’s homes and lives with beautiful, engaging 2022 membership: 92 2022 membership: 353 books to help them develop literacy skills they need to succeed in school. Studies confrm that children and Money$mart ERGs Making a Difference — families engage more with books when they can see Mission: Inspiring employees of The Standard to meet Spotlight on Programming themselves refected in the pages they read and when their fnancial goals. Mental health awareness they have access to books in their home language. As 2022 membership: 424 Partners in Mind collaborated with CRED, Parents a result of these efforts, SMART Reading purchased Working Together, SERV, StandOUT and Women’s more than 650 inclusive book bundles. Parents Working Together Career Network to host two discussion sessions about Mission: Valuing people collaborating, sharing the impact of the pandemic on daily life. As part of a Pride Month parenting resources and celebrating family milestones. series about mental health, the discussion provided StandOUT partnered with the Green Team and 2022 membership: 232 a space for employees from diverse populations Partners in Mind to celebrate Pride Month with a series including people of color, working parents, individuals of events. Partners in Mind with mental health concerns, veterans, LGBTQ+ Mission: Supporting healthy minds and well- individuals, women and people with disabilities to share StandOUT and the Green Team led a volunteer being through awareness, education and building their individual experiences. cleanup of downtown Portland just ahead of the community. Portland Pride Parade. 2022 membership: 105 SERV and Partners in Mind hosted a Fitness Challenge for mental health, which encouraged employees to Partners in Mind co-sponsored a two-part discussion The Standard Employees Recognizing Veterans, exercise regularly for improved emotional and mental in June about the emotional effects of proposed or SERV wellness. legislation in some states restricting LGBTQ+ people, Mission: Supporting veteran employees and their targeting their freedom of expression, the safety of family members. Partners in Mind also sponsored a walk for employees transgender students and access to health for gender 2022 membership: 60 of The Standard to support mental health awareness dysphoria. This ended with a national online celebration benefting the National Alliance on Mental Illness. for employees and in-person participation in the StandOUT Portland Pride Parade. Mission: Cultivating LGBTQ+ inclusion at Virtual book drive The Standard and in the community. CRED, Parents Working Together and StandOUT 2022 membership: 146 partnered in 2022 to host a fundraising drive to 2022 Environmental, Social and Governance Report 9
United Nations Sustainable The SDGs are a call for action by all countries to Giving and Other Key Data Points Development Goals promote prosperity while protecting the planet. They 2022 Total Giving The Standard believes that businesses have a recognize that ending poverty must go hand in hand • critical role to play to help achieve the United Nations $7.2 million with strategies that build economic growth and address 2022 Employee Giving Campaign Sustainable Development Goals, which frame broad a range of social needs including education, health, societal objectives for the world’s most pressing social, • social protection and job opportunities while tackling $5.5 million donated, including two-for-one environmental and economic challenges. We have climate change. company match identifed three SDGs that offer the greatest opportunity • 1,600 employees participated to make a difference given their relevance to our Communities • business. The company that would become The Standard 2,168 nonproft organizations and schools was founded in 1906 based on two radical ideas for supported the time: provide local services for customers and 2022 Employee Engagement contribute to the well-being of the community. Our • 47 senior leaders served on nonproft and company has grown considerably since those early civic boards days, but our dual focus — delivering exceptional • customer service and bettering the places where we 15 grants awarded through Dollar for Doers program for employees providing exceptional live and work — continues to guide us today. nonproft service At The Standard, our business purpose is to help The Standard has been deepening and expanding people achieve fnancial well-being and peace of mind. relationships with several BIPOC-led organizations Our company exists to help people, with our employees focused on racial equality, economic empowerment, as the backbone of that culture of caring. Whether housing and diverse storytelling. We are committed to through volunteerism, serving on a nonproft or civic using our corporate philanthropy in partnership with board or giving generously through the Employee Giving these populations to uplift their communities. Campaign, employees at The Standard are at the center of everything we do to support our communities. Historically, organizations led by and focused on people of color receive less than 8% of all philanthropic giving in the United States, despite the increasingly diverse population across the country. In 2021, The Standard and The Standard Charitable Foundation increased funding for these organizations to 21% of our overall giving total. 2022 Environmental, Social and Governance Report 10
Supplier Diversity Community Partner Spotlight — Native American Youth and Family Center The Standard is committed to offering meaningful opportunities for diverse vendors to compete for business through our supplier diversity program. We recognize that buying products and services from businesses that refect the demographics of our markets contributes to the sustainability of communities as well as our company. The Standard is a proud member of several certifying organizations: the National LGBT Chamber of Commerce, National Minority Supplier Development Council and Women’s Business Enterprise National Council. Diverse Supplier Spotlight Grady Britton — a woman-owned, values-based full- service marketing agency in Portland, Oregon — has Courtesy of Carleton Hart Architecture PC been putting thoughtful, informed advertising, PR, A more than 50-year-old apartment complex those experiencing homelessness. The $29 million digital, media and planning capabilities to work for in Portland, Oregon, will get a new lease on life reconstruction is in the Portsmouth neighborhood The Standard for nearly fve years. Grady Britton’s thanks in part to support from The Standard. T istilal of North Portland. The project was developed by purpose is to fnd the truth inside a brand and share that Village, a redevelopment project by the Native Native housing leaders who envisioned thriving story with the world. Amy Malagamba, assistant vice American Youth and Family Center, received a Native community members living in housing they president of Marketing at The Standard, commented $750,000 affordable housing subsidy from can be proud of and that will heal their community. on the supplier’s relationship with our company: “Grady The Standard and the Federal Home Loan Bank of Native American art will be prominently featured Britton is a true partner, helping us share engaging Des Moines toward the reconstruction project. and outdoor spaces include a play area, seating, stories about our brand, our products and our people. community gardens and a plaza. Other amenities We value their insights and creative solutions as well as Built in the 1970s, Tistilal Village’s existing 34 units include easy bus access, grocery stores, health their passion.” will be demolished to construct a new three-story, clinics, parks and a community center within 63,000 square-foot project with 57 affordable units walking distance. targeted to serve Native American families including Groundbreaking is anticipated for spring 2023. 2022 Environmental, Social and Governance Report 11
Corporate Giving Cultural Development Corporate giving at The Standard is focused on Arts and cultural organizations play a major role four areas: healthy communities, disability and in vibrant communities. The Standard supports empowerment, cultural development, and education organizations that offer multicultural art programs and and advancement. provide enhanced access for the community including underserved members. Specifcally, we fund and Healthy Communities encourage programs that build audiences and promote Strong, vibrant communities are a critical source the arts through education, interactive media and of security for all residents. We fund organizations artistic excellence. that provide support, training and rehabilitation to individuals and families facing signifcant challenges. Courtesy of FACT Oregon Partnership spotlight: The Standard is a long- We also fund programs that help individuals and Disability and Empowerment time supporter of Literary Arts, a community-based families develop capabilities to increase self-suffciency. Disability insurance is one of The Standard’s core organization with a mission to engage readers, support products, helping people overcome hardships and writers and inspire the next generation with great empowering them to succeed. The Standard supports literature. Support from The Standard funded an in- organizations that help people with disabilities thrive person visit and reading by writer Brit Bennett, author independently and overcome barriers to social and of New York Times bestselling novels “The Mothers” economic success. We also support programs that and “The Vanishing Half.” Bennett’s visit was part of the provide relief during transitions to independent living. Literary Arts Portland Arts & Lectures series. Partnership spotlight: Studies indicate that youth Partnership spotlight: As a large, private employer with disabilities are far less likely to engage in physical with an outsized presence in Portland, The Standard activity or organized sports than their non-disabled continues to seek opportunities to help revitalize peers. The Standard partnered with FACT Oregon, downtown and bring residents together in meaningful a statewide organization that empowers families ways. The company was a proud sponsor of the experiencing disability in their pursuit of a whole life Portland Parks Foundation’s PASEO, a three-day by expanding awareness, growing community and festival in July. PASEO flled the city’s Director Park equipping individuals to participate in the All Ability and South Park Blocks with music, dance, spoken Tri4Youth. The Tri4Youth series of events helps families word and other creative performances along with yoga and disabled youth build a practice of ftness into their and healthful family activities. It also brought together daily lives and increase access to community-based diverse cultural nonprofts from around the city. sports and recreation. In 2022, All Ability Tri4Youth events included a virtual ftness challenge and an in-person bike-run. Courtesy of Literary Arts 2022 Environmental, Social and Governance Report 12
• Micro Enterprise Services of Oregon — Education and Advancement The Standard Charitable Foundation coaching, marketing and education for The future health and well-being of our communities In 2006, The Standard celebrated its 100th is in the hands of children who are the workers, anniversary. To mark the occasion — and properly minority- and women-owned small businesses innovators, leaders and artists of tomorrow. We fund honor our rich legacy of corporate philanthropy — The mission of MESO is to elevate and empower organizations that foster strategic learning initiatives we launched The Standard Charitable Foundation. historically excluded and under-resourced to better prepare children for success. We emphasize The mission of the foundation is to make a positive entrepreneurs with tailored business assistance programs that strengthen the quality of education, difference in the communities we serve by supporting and fexible capital to build family wealth through including early childhood learning and workforce community development, education and disability small business ownership. development. organizations. The foundation places special • Portland State University Foundation — emphasis on helping individuals and families who have Partnership spotlight: Junior Achievement is a experienced a major disability or the loss of a loved professorship in analytics PSU Foundation works to advance Portland worldwide organization giving young people the one. State University through relationships, community knowledge and skills they need to reach their full potential. In 2022, support from The Standard Over the past 17 years, The Standard Charitable connections and philanthropy. benefted JA Finance Park, the organization’s fagship Foundation has granted more than $2.2 million to • Youth Villages — LifeSet program offering fnancial literacy program that provides students in nonproft organizations that are making a difference in specialized transitional services for foster middle school and high school with critical skills related our communities. youth to budgeting, investing, insurance and purchasing a Youth Villages is one of the country’s largest and home. The program blends teacher-led curriculum with In 2022, The Standard Charitable Foundation funded most innovative providers of children’s emotional, a culminating simulation day. these four organizations with grants totaling $150,000: mental and behavioral health services. • De La Salle North Catholic High School — campus expansion De La Salle North Catholic High School serves a racially diverse community of capable and motivated college-bound students primarily from north and northeast Portland who would not otherwise have access to reliable college preparatory education. Courtesy of Junior Achievement of Oregon & SW Washington 2022 Environmental, Social and Governance Report 13
Employee Giving Maximizing the talent, generosity and commitment of Denim Impact Fund Partner Uses Donations to Prioritize Student Safety employees. Employee Giving Campaign The Employee Giving Campaign — a signature event at The Standard — encourages employees to give to the causes they care about most. The Standard offers a dollar-for-dollar match of employee contributions — up to $5,000 — to any eligible nonproft or school. In 2022, our parent company, Meiji Yasuda Life Insurance Company, offered a second match. Even with the continuing challenges presented by the pandemic, employees and retirees of The Standard raised $5.6 million for 2,200 schools and nonproft organizations during the 2022 EGC. One of nation’s most effective youth development as they approach. A built-in, two-way speaker Top donation recipients from the 2022 EGC: nonprofts, Self Enhancement, Inc., completed a system enables communication from the front critical building security upgrade thanks to more desk to visitors seeking access to SEI. A keycard 1. Trillium Family Services — $205,000 than $315,000 in Denim Impact Fund donations. entry system ensures that only credentialed 2. Oregon Food Bank — $142,000 Located in north Portland, SEI is Oregon’s largest students and staff can access the main doors at 3. Oregon Humane Society — $60,000 Black-led nonproft serving the Black community, the center. In addition, video surveillance adds dedicated to guiding underserved youth to realize another layer of protection to combat growing 4. Lines for Life — $58,000 5. National Alliance on Mental Illness — $51,000 their full potential. safety concerns at schools and youth-care programs across America. Denim Impact Fund SEI unveiled a newly renovated, state-of-the- art lobby entrance area at the Center for Self SEI received more than $315,000 as a Denim To celebrate our centennial anniversary, the company Enhancement, Inc. Now known as the Atrium, the Impact Fund partner during the 2020 Employee gave a gift to our communities — the Jeans Days clear glass enclosure allows SEI staff to see guests Giving Campaign. program. This unique program allowed employees to donate $100 in exchange for wearing jeans on Fridays. The money was pooled, matched by the company during the EGC and then given to nonproft partners selected each year. 2022 Environmental, Social and Governance Report 14
At a time when offce dress codes across the industry a quarterly volunteer award for exceptional employee were a little more prescribed, it was a big hit and during volunteer service. the past 16 years the program raised more than $5 million for partner organizations. EGC organizers announced a new program in 2021 — the Denim Impact Fund — which preserves the best of the old program while updating it to better meet the moment. Participants donate $100 to fund nonproft partners and receive a special T-shirt as well as join a community of others who want to make a “DIF- ference.” Of course, participants can still wear jeans when they’re in the offce. During the 2022 EGC, we raised more than $358,000 for these Denim Impact Fund partners focused on youth behavioral health and crisis intervention: • Trillium Family Services — $205,000 Board Service • Lines for Life — $58,000 The Standard expects offcers of the company to • National Alliance on Mental Illness — $51,000 Volunteer Expo serve on at least one civic, school or nonproft board, • and provides training opportunities for all employees Lighthouse Youth and Family Services — For 15 years, The Standard has hosted the Volunteer $19,000 interested in developing the expertise needed to be a Expo — an event celebrating the spirit of community successful board member. In 2022, many employees • Mental Health Association of Westchester — by connecting employees and members of the public took advantage of our annual board training and $13,000 with local nonprofts seeking volunteers. Over its nearly 50 of our senior leaders served on one or more • lifetime, the Volunteer Expo has connected thousands Humankind — $13,000 nonproft or civic boards. of participants with hundreds of nonprofts. Volunteerism The Standard provides employees with annual paid In 2022, the Volunteer Expo was held in person for time off to volunteer. Many employees use those hours the frst time since 2020. The Virtual Volunteer Expo to support community partners including schools, website — standard.com/volunteer — features more hunger relief organizations, literacy programs and many than 100 nonproft organizations and is available year- other worthy groups. The company also celebrates round to help connect employees and members of volunteerism by providing Dollars for Doers grants and the public with volunteer opportunities where they can share their skills and passion. 2022 Environmental, Social and Governance Report 15
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
• Anchorage, Alaska — Construct and operate Opportunity Zone Investment — Crenshaw Lofts Project broadband capacity, providing internet access to 23,800 Eskimo residents in 36 of the most remote communities in the U.S. • Orlando, Florida — Support the fnancing and expansion of ongoing operations at Vestagen Protective Technologies, which manufactures Active Barrier Apparel (protective apparel) as a replacement to regular everyday hospital apparel. (Along with other benefts, the apparel repels splatter of dangerous fuids.) The manufacturing expansion is located in a severely distressed economic tract and will provide needed protective wear for the medical community and frst responders. • Waianae, Hawaii — Construct a federally qualifed health care center in the Nanakuli Commercial Center designed to meet the needs of a primarily native Hawaiian community, Courtesy of SoLa Impact including an expansion of general health The Standard and developer SoLa Impact are building known as Crenshaw Lofts. A signifcant care and specialized care for women along partnering on the construction of a $75 million, portion of the units will be set aside for low-income with diabetic, pediatric and behavioral health 95-unit apartment building south of Los Angeles in tenants who will have access to workforce training, services. the Crenshaw Corridor, an economically distressed job placement, fnancial literacy and educational area as determined by supervising federal and state opportunities. Construction began in government agencies. The Standard invested December 2022. $11 million in the multistory, multifamily, multiuse 2022 Environmental, Social and Governance Report 17
Environmental Focus
Championing Sustainability The Standard has a legacy of sustainability and an Trash and Recycling Centralization Project Reduces Waste environmental focus. One of the most visible elements of this commitment began nearly 25 years ago when The Standard’s home offces in favor of centralized a group of employees shared their vision for the future trash and recycling stations located on each foor. of sustainability at the company. They participated in a discussion course offered by the Northwest The goal was to greatly reduce the amount Earth Institute and soon formed The Standard’s of plastic waste generated by individual cans. frst employee resource group, the Green Team, to A typical offce foor contains more than 100 deliver on a shared vision of supporting environmental individual garbage cans. Previously, cleaning protection efforts at work and in our communities. crews inspected every garbage can on every foor each weeknight. If crews found so much as one The Standard continues prioritizing and strengthening piece of trash — a tissue, a coffee cup, a napkin initiatives that protect the environment and combat — they removed the plastic liner, threw it into the climate change, recognizing that the health and trash and added a new liner. That alone created a security of our customers and employees as well as lot of unnecessary plastic waste. Trash is a big problem for the planet, especially our business success are linked to the health of the plastic trash. Discarded plastics are piling up and planet. Under the new program implemented in 2022, threatening ecosystems. Worse, microplastics employees deposit trash and recycled items Sustainability at Work — the tiny, toxic particles of degrading plastics — have been found almost everywhere. (glass, plastics, cans and newspapers) in Ensuring we leave our company, our communities and centralized bins. The stations are near printers and our planet better than when we found them guides the copy machines on every offce foor. The project Thanks to the tireless advocacy of the Green Team commitment of the Green Team, company leaders and greatly reduces the amount of plastics and other employee resource group, in collaboration with the all employees in sustainable business practices that recyclables improperly discarded, eliminates company’s Facilities team, The Standard’s trash reduce our environmental footprint. unnecessary waste, encourages employees to and recycling centralization project resulted in less move and interact with others more often during Energy plastic, fewer garbage cans and cost savings. the day and saves the company money by During 2022, The Standard purchased 11,076,988 allowing cleaning crews to focus on higher-value kilowatt hours of renewable clean wind energy to One of the biggest wins for the project was the custodial tasks. power our home offce buildings in Portland and at removal of more than 1,000 individual trash cans in our nearby campus in Hillsboro, Oregon. Computers, monitors and printers are set to sleep after inactivity, and linear lighting in offces uses motion-sensor technology and high-effciency LED bulbs. 2022 Environmental, Social and Governance Report 19
Housed in a building that meets several LEED Travel standards, the company’s data center sources 38% Printer Consolidation — Commuting and business travel, which both increased of the required electricity from renewable resources. Reducing Expense and Paper Usage during 2022 as the pandemic eased, have traditionally It also incorporates features that make it signifcantly been large components of The Standard’s carbon more energy effcient than traditional data centers footprint. For staff commuting prior to the pandemic, including LED lighting, motion sensors and energy- the organization made signifcant strides to reduce the effcient cooling technology. amount of single-occupancy vehicle trips. Nearly 60% of The Standard’s Oregon employees walked, biked, Active Transportation carpooled or took transit as their primary commute Throughout 2022, most employees of The Standard method. continued to work from home. Prior to the pandemic, 60% of The Standard’s Oregon workforce walked, Business travel for all purposes, which resumed in biked, carpooled or took public transit to work. spring 2022, also represents a large portion of annual Subsidies and reimbursement were offered to carbon emissions. The Standard continues to use audio employees who use public transit or carpool to and video telecommunications services — including work. Electric vehicle charging stations are available Microsoft Teams and Zoom — to communicate in our home offce parking garages. Sheltered and Centralized printers and using paper with 100% effectively with stakeholders, customers and vendor secure bike parking is available at many offces, along recycled content are the default on all foors partners where appropriate. We remain focused on with locker room and shower facilities to make bike in home offce buildings, replacing deskside further reducing unnecessary air and road travel. commuting even easier. printers and decreasing both electricity usage and the total volume of unnecessary printing. Buildings Water Print volumes have decreased over the past Company-owned facilities were upgraded to include Restrooms use low-fow, automatic sensor faucets and several years, driven initially by digitization of work measures that reduce electrical, heating and cooling locker room facilities use low-fow shower heads. Most processes followed by an even sharper decline demands. landscaping at the home offce consists of native and as most employees moved to working remotely. drought-tolerant plants. As a result, The Standard consolidated and The Standard Plaza in downtown Portland is Energy signifcantly reduced the number of printers in our Star rated by the Environmental Protection Agency. Climate feet, which in turn will reduce operating expenses Its high-energy effciency reduces annual electricity We recognize our company has an associated carbon and continue to reduce paper usage across the consumption by nearly 500,000 kilowatt hours. In 2009, footprint through daily business operations and we company. Additionally, some foors where there two of our Oregon headquarters facilities were awarded continually work to assess, reduce and mitigate these has been little to no print activity will be entirely LEED Gold status. emissions while simultaneously reducing costs and printer-free. improving operational effciencies. 2022 Environmental, Social and Governance Report 20
As described in the Energy section, our company data center is also signifcantly more energy effcient than Greenhouse Gas Emissions (2021 base year)* traditional data centers. Scope 1 direct emissions Scope 2 emissions (market-based) Climate Change 1,403.8 1,908.6 Climate change remains a serious challenge for the (metric tons CO e) (metric tons CO e) world, and our company and employees play a role 2 2 in addressing it. We recognize our company has an associated carbon footprint through daily business Total Scope 1 and 2 emissions Emissions including RECs** per FTE operations and we continually work to assess, reduce 3,312.4 1.02 and mitigate these emissions while simultaneously (metric tons CO e) (metric tons CO e per person) reducing costs and improving operational effciencies. 2 2 Our largest direct impact is the energy used to power our facilities. Greenhouse Gas Emissions by Source (2021) In 2022, The Standard retained Deloitte to undertake Scope 1 Scope 2 (market-based) a greenhouse gas, or GHG, inventory. With 2021 designated as a baseline year, The Standard did a 86% 99.6% calculation of scope 1 and 2 emissions. Scope 1 are Stationary combustion Purchased electricity direct greenhouse emissions that occur from sources that are controlled or owned by the company. Scope 14% 0.4% 2 are indirect emissions associated with the purchase of electricity, steam, heat or cooling. Our greenhouse Fugitive emissions Purchased steam emissions are calculated in line with the standard GHG * U.S. operations reporting protocol. **Renewable Energy Certifcates The Standard remains committed to reducing its Key GHG Emissions Takeaways carbon footprint and our efforts over the past decade • 2021 location-based emissions are 50% lower than in 2008 are making a difference. The company’s 2021 location- • Emissions are tied primarily to company-owned facilities and based emissions are 50% lower than the frst study energy sources measuring emissions conducted in 2008. We attribute • Further reductions are anticipated through sustainable energy the decline to two key factors including renewable sources and reduced consumption energy certifcates and enhanced energy effciency efforts in company-owned real estate. 2022 Environmental, Social and Governance Report 21
Enterprise Risk Management: Focused on management activities. These activities include pricing Climate Change and underwriting group insurance cases, diversifying Through a focused enterprise risk management and monitoring the investment and commercial program, The Standard identifed current and mortgage portfolio, testing reserve adequacy and anticipated risks that climate change poses to our improving the effciency and sustainability of business company. As our core products are life and disability operations. insurance, The Standard is not directly exposed to the potential physical effects of climate change in the same Meiji Yasuda Group Sustainability Policy Meiji Yasuda Life Insurance Company, the parent way as, for example, a property and casualty insurer. organization of The Standard, adopted a group However, we do business across the United States and sustainability policy centered on our shared goals there are many indirect risks associated with climate for stewardship and corporate citizenship. The change including: policy specifcally expresses our commitment to a • I ncreased mor tality sustainable society through efforts to strengthen • I ncreased mor bidity local communities, support diverse and respectful • workplaces, combat climate change and conduct Pressure on the businesses of our customer base business ethically. • Property damage or property value degradation due to severe weather • Regulatory, litigation, competitiveness and reputational risks to the investments we purchase • General operations risks — scarce energy, IT systems failures, workforce planning and business continuity The Standard employs a process for identifying risks related to climate change and assessing the degree to which climate change could affect our business, including fnancial implications. The company incorporates the study of economic, demographic and environmental trends — all of which may be affected by climate change — in its regular enterprise risk 2022 Environmental, Social and Governance Report 22
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Governance Focus
At The Standard, sound governance is the foundation Principles for Responsible Investment supported by the designed to empower each employee to make the right for our shared values and responsible business United Nations. These managers have agreed to certain decision whatever the circumstance. We encourage practices to support a sustainable future for our principles for reporting and assessing ESG factors and employees to use their own ethical barometer and company, customers, employees and communities. incorporating them into the investment processes. direct them to resources and leaders who can assist when ambiguities occur. Responsible Investing Business Conduct Guide Our investment philosophy ensures we meet the The Standard is well known for integrity and high ethical For senior executives and the board of directors, our obligations and promises we make to our customers standards. Integrity is ingrained in our company culture, expectations are even greater. These guidelines are in alignment with statutory investment requirements. and our reputation is the result of the daily decisions outlined in a separate Code of Business Conduct and The primary objectives for our investment portfolio employees make regarding how they do their jobs and Ethics maintained by our corporate secretary. are to meet the asset/liability management needs of interact with colleagues, customers and members of the company and to generate optimal risk-adjusted the public. Ultimately, we’re each responsible for our own conduct returns over time. Maintaining a long-term perspective in alignment with our strong company values. is core to our overall investment philosophy. Risk Good judgment, honesty and sound business ethics management, both in terms of bottom-up credit risk are the basic principles that inform every employee’s Information Security and Customer Privacy and top-down portfolio risk, is paramount for yield conduct, from new employees to the chief executive As a company built on trust, The Standard is dedicated maximization over time. offcer. These principles require us to avoid conficts to protecting the confdential information of our of interest between our work and personal interests, customers, partners and employees. In the normal As a buy-and-hold investor with a long-term comply with all laws and regulations that govern our course of providing and administering services for our perspective, we strive to look beyond quarterly results business, and be honest and fair in all our work activities clients, we obtain, create and maintain a substantial to incorporate secular trends and company-specifc and relationships. amount of personally identifable information. risks that may materialize over an extended period. As such, The Standard incorporates the analysis of Our Business Conduct Guide is our ethical roadmap. All Framework environmental, social and governance factors into our employees are required to complete an annual training Our information security management system wholistic credit underwriting and portfolio management module as a reminder of the legal and ethical standards is International Organization for Standardization practices. By their nature, such factors generally that govern and infuence all our business activities. 27001:2013 certifed. We adhere to policies and represent longer-term risks and opportunities that ft standards compliant with IS0 27001, which well within our investment strategy. Since it’s the nature of business for things to not always specifcally address privacy and security as well as be clearly defned, there’s a limit to specifc scenarios data classifcation, operational management, data The Standard uses outside investment managers for any business conduct guide can cover. That’s why we processing, access control, auditing and corrective and specifc portions of the portfolio when it’s too diffcult provide ongoing and comprehensive training modules preventive measures. The Standard also goes through or costly to build the expertise on our own. We use to ensure we never waver in our commitment to ethical rigorous independent third-party SOC 2 Type 2 audits three managers who are each a signatory of the decision-making. Our Business Conduct Guide is conducted by a reputable certifed public accountant frm and maintains a SOC2 Type 2 Attestation. 2022 Environmental, Social and Governance Report 24
Information Security Team Vulnerability Management and The Standard has an established information security Continuous Monitoring team and chief information security offcer dedicated We perform frequent security monitoring and testing to information security risk identifcation, assessment, of applications and systems as well as regularly scan education and advisory services for the organization. our environment for vulnerabilities. We also engage This team also coordinates companywide security and third-party resources for overall security assessments privacy incident response. at least annually. Network Protection Board of Directors The Standard uses frewalls and other mechanisms Educated, experienced and engaged directors are to restrict and control access between our network essential to the welfare of the company, employees and other networks including the internet. We use and and customers. Our board of directors serves as the maintain appropriate antivirus measures to protect foundation for responsible governance of networks, systems and all end-user devices as well as The Standard’s business operations, integrity, conduct intrusion testing regularly. We record all relevant reputation and fnancial strength. system activity and proactively monitor for unauthorized network intrusions and access attempts. The board is composed of a majority of independent directors with expertise and leadership acumen in Data Encryption disciplines that align with and complement The Standard follows data encryption best practices The Standard’s business strategies. With the including encryption for data at rest and in transit. company’s long-term strategies and sustainability at the forefront of decision-making, the board oversees Data Destruction the company’s governance, risk management, Before disposing of media that stores data, fnancial reporting, legal compliance, compensation The Standard follows media sanitization practices and performance management frameworks. including sanitizing server disks and shredding paper documents. Oversight of specifc risks and responsibilities are delegated to the board’s three committees: Third-Party Risk Management Nominating and Corporate Governance, Organization The Standard requires assessment of the information and Compensation and Audit. Each committee is security, business continuity and disaster recovery led by an independent director and reports to the full practices of all contractors, subcontractors and third- board on its area of responsibility. party providers involved in providing and/or supporting services for the company. 2022 Environmental, Social and Governance Report 25
Nominating and Corporate Governance Committee Organization and Compensation Committee The committee oversees the adequacy of the Among other responsibilities, this committee regularly With input from an independent compensation company’s control environment with support from reviews the composition of the board to ensure the consultant, this committee provides oversight of all internal audit staff and external independent auditors right mix of expertise, experience and backgrounds. executive compensation to ensure it aligns with the as well as ensures the independence and managing Each new director participates in a rigorous orientation market and incentive compensation is based on performance of the external auditor. The committee and all directors pursue continuing education overseen achieving sustainable goals for the company that do also monitors the company’s fnancial risk exposures by the committee. Additionally, the committee not present undue risk. The committee also monitors and compliance with laws and regulations. manages annual director performance assessments and evaluates CEO performance in conjunction with and reviews the structure and composition of each the full board. board committee annually. The committee is also responsible for oversight of the CEO succession Audit Committee planning process and the company’s corporate This committee manages fnancial reporting for the governance systems, including our business conduct company through review and approval of the annual and ethics programs. audited fnancial statements and quarterly results. 2022 Environmental, Social and Governance Report 26
Stay up to date with what The Standard is doing in our communities. TheStandard @The _Standard TheStandard The Standard 1100 SW Sixth Avenue Portland OR 97204 standard.com/esg SI 22236 ( 6/23)