WHEREAS: The Intergovernmental Panel on Climate Change says global greenhouse gas (GHG) emissions must be cut in half by 2030 to achieve net zero by 2050 and meet the Paris Agreement's goal to limit warming to 1.5 degrees Celcius and avoid the worst impacts of climate change. At current emissions trajectories, an estimated 10 percent of economic global value could be lost by 20501.

Banks play a critical role in limiting global temperature rise and face serious business risks associated with financing projects or companies that lack alignment with the Paris Agreement. Financing high- emitting activities poses systemic risks to the global economy and portfolio-wide risks to investors, not to mention material risks to the bank’s own operations.

PNC Financial Services Group (“PNC”) recognizes numerous physical and transition risks of climate change to their operations in their 2020 TCFD report2. Despite so, PNC has increased fossil fuel lending to $32 billion in 2021 and is currently the seventh largest fossil fuel financier based in the US.3

Investors applaud the Bank’s commitments to address the financed emissions in their portfolio by joining the Partnership for Carbon Accounting Financials (PCAF). However, investors remain concerned that PNC’s delay in setting a net zero commitment with decarbonization targets for its highest-emitting sectors signals lagging climate action.

In contrast, the Bank’s competitors, U.S. Bancorp4 and Truist5, have both announced a goal to achieve net zero greenhouse gas emissions by 2050 and disclose 2030 targets for selected carbon-intensive industries in their portfolio.

RESOLVED: Shareholders request that PNC set near and long-term greenhouse gas emission reduction targets aligned with the Paris Agreement’s ambition to limit warming to 1.5 degrees Celsius. The targets should address the bank’s operational and most climate-critical financed emissions, including those associated with the lending and investment activities for its highest-emitting sectors.

SUPPORTING STATEMENT: In assessing targets, proponents recommend the following, but defer to Board and management discretion:

• Disclosure of the Company's Scope 1 and 2 emissions, as well as the financed emissions noted above (Scope 3);
• A commitment to reach net zero GHG emissions by 2050 or sooner;
• A near-term (2030 or sooner) target for its highest-emitting sectors, with a commitment to update this target every 5 years; and
• Consideration of approaches used by advisory groups such as the Science Based Targets initiative. Emissions from underwriting should be accounted for in the Company’s disclosure and target-setting once methodologies become available.

1 https://www.swissre.com/institute/research/topics-and-risk-dialogues/climate-and-natural-catastrophe- risk/expertise-publication-economics-of-climate-change.html
2 https://www.pnc.com/content/dam/pnc- com/pdf/aboutpnc/CorporateResponsibilityReports/PNC_TCFD_Report_2020.pdf
3 https://www.bankingonclimatechaos.org/#data-panel
4 https://www.usbank.com/about-us-bank/company-blog/article-library/us-bank-sets-goal-to-achieve-net-zero- greenhouse-gas-emissions-by-2050.html
5 https://ir.truist.com/2022-01-27-Truist-Announces-Goal-of-Net-Zero-Greenhouse-Gas-Emissions-by-2050