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Sustainable Financing

As a financial institution, we understand that our ability to mobilize capital grants our industry a unique role in the transition to a lower-carbon economy. For that reason, we are committed to supporting the development and implementation of clean energy solutions and providing sustainable lending and investment products and services that can benefit our customers and our climate.

Regions supports the development and implementation of clean energy solutions through our Solar Tax Equity Finance Team and the ENRG. Additionally, our Transportation Group and Equipment Finance Group collectively have made over $140 million in commitments to mass transit and urban rail transit systems.

Solar Tax Equity Finance Team

The Regions Solar Tax Equity Finance Team provides lease financing for utility scale and commercial photovoltaic (PV) solar projects across the U.S. Since completing its first transaction in 2016, the Team has funded more than 50 different projects in excess of $1 billion. In 2020, the Solar Tax Equity Finance Team provided $313.5 million in funding for PV solar projects located across the country, including the largest project in the Team’s history. The aggregate capacity of these projects exceeds 268 megawatts.

Energy and Natural Resources Group

Within Sustainable Finance, ENRG specializes in tailored financing products and services for solar/renewable energy projects. Offerings include construction financing, project financing, merger and acquisition advisory, and capital markets services for the benefit of power and renewables companies. In 2020 ENRG committed or closed nearly $150 million in utility-scale solar construction financing, $26 million in solar acquisition financing, and $75 million in offshore wind vessel financing as well as serving as a co-manager in a $1 billion senior notes offering supporting clean water/wastewater infrastructure. In addition, Regions has made a $100 million commitment toward a corporate customer’s credit facility that promotes renewable energy use and sustainable hiring practices through the implementation of sustainability-linked pricing.

Asset Management Group

Regions’ Asset Management business group provides individuals and institutions with products and services that help them manage and grow their assets. The team is working to meet growing demand for ESG investing and helping Regions expand the solutions we can offer to grow relationships and meet client needs.

• The Regions Investment Management team within Asset Management has added two new ESG-focused offerings to clients in 2020.
• Asset Management grew assets under management for the four externally managed ESG-focused products we have offered since 2018 by 97 percent over 2020. These products include two equity products and two fixed-income products.

In 2020, Asset Management also developed a firm-wide ESG/socially responsible investing (SRI) philosophy. In 2021, they intend to launch a model portfolio consisting of managers deemed to invest in a responsible or sustainable manner. Growth in ESG/SRI assets over recent years highlights our customers’ interest in the ESG-related, socially responsible, and impact-focused investment opportunities we provide.

Natural Resources and Real Estate Department

The NRRE consists of 41 natural resource professionals who are charged with the responsibility of prudently managing hard assets owned by our banking and trust customers. Eighteen of these professionals are registered foresters responsible for the sustainable management of over 1 million acres of timberland located across Regions’ 15-state footprint. Regions manages every acre of timberland in accordance with State Best Management Practices (BMPs) for Forestry. Regions’ forestry management efforts and State BMPs are aimed at improving water quality, carbon sequestration, and wildlife habitat.

In addition to BMP management, a portion of the timberland acres managed by Regions’ foresters are certified under the 2015-2021 Sustainable Forestry Initiative Standard or the 2015-2020 American Tree Farm Certification Standard. Both third-party certification systems promote sustainable forestry practices aimed at protecting water quality, biodiversity, wildlife habitat, species at risk, and forests with exceptional conservation value.

Regions’ foresters take pride in and are committed to the sustainable forestry management of our clients’ timberland assets.