Discover Publishes 2021 Corporate Responsibility Report

Rhea-AI Summary

Discover Financial Services has published its 2021 Corporate Responsibility Report titled Building a Brighter Tomorrow, highlighting its commitment to sustainability, diversity, and economic empowerment. Key initiatives include eliminating fees for certain accounts, launching a customer care center in Chicago providing nearly 1,000 jobs, and spending $81 million with diverse businesses. The report emphasizes Discover's goals of enhancing financial education and reducing environmental impact, alongside promoting an inclusive workplace that reflects community diversity.

Positive

• Eliminated fees for checking and savings accounts at Discover Bank, enhancing customer value.
• Planning to open a customer care center in Chicago, creating nearly 1,000 jobs by 2024.
• Increased spending to $81 million with diverse-owned businesses, up 35% from the prior year.
• More than 13 million customers accessed their FICO score using Discover's Credit Scorecard service in 2021.
• Achieved a substantial reduction in on-site waste output and water usage in 2021.

Negative

• None.

RIVERWOODS, Ill.--(BUSINESS WIRE)-- Discover today published its 2021 Corporate Responsibility Report Building a Brighter Tomorrow, which shares actions the company undertook in fulfilling its mission to help people achieve brighter financial futures. From providing free financial education curriculum to thousands of classrooms across the country, operating responsibly, and protecting the environment to bringing new jobs and economic opportunities on Chicago’s South Side, the report highlights Discover’s efforts in improving the financial stability and well-being of its customers, employees, and communities.

“In an effort to build a more sustainable and equitable world, Discover is committed to addressing the challenges related to climate change, advancing diversity, equity, and inclusion and adhering to a sound structure for governance and ethics,” said Matt Johanson, Senior Vice President of Social Impact & Chief Environment, Social, and Governance (ESG) Officer at Discover. “We are proud of all the work and progress highlighted in our latest Corporate Responsibility Report and are looking forward to further building out our full ESG program in the coming months.”

Earlier this year, the Company released its first Diversity, Equity & Inclusion Transparency Report, named Johanson as Chief ESG Officer, and published an ESG-focused tear sheet which includes an ESG mission statement and initial environmental disclosures.

Discover’s progress is showcased through six key areas of the Corporate Responsibility Report:

ESG Commitment

Discover’s commitment to ESG include:

• Addressing the global challenges presented by climate change by reducing the environmental impact of our physical operations as we design solutions to build a more sustainable and low carbon future.
• Advancing equity and driving positive social change by leveraging job opportunities, supplier spend, charitable contributions, products, and more.
• Promoting a diverse, equitable, and inclusive workforce that reflects our communities.
• Supporting local communities and diverse suppliers in order to improve economic mobility and promote financial inclusion.
• “Doing the Right Thing” for employees, customers, shareholders by promoting transparency, accountability, and ethical behavior in everything we do.

Promoting Economic Stability and Mobility

Discover is committed to helping people build brighter financial futures by increasing customers’ financial security, promoting financial education and providing opportunities for economic empowerment by:

• Eliminating all fees for customers with a checking, savings, money market, or certificate of deposit (CD) account from Discover Bank – ensuring our customers money can work harder for them.
• Offering the Discover Credit Scorecard that helps individuals understand their creditworthiness by providing easy access to their FICO® Credit Score. The scorecard is free for customers age 18+. More than 13 million customers checked their FICO score with the Discover Credit Scorecard in 2021.
• Opening a new customer care center in Chicago’s Chatham community, bringing nearly 1,000 full-time jobs to this vibrant black community by 2024.
• Spending $81MM with diverse owned businesses, a more than 35% increase in spending from the previous year.
• Building on financial education opportunities through Pathway to Financial Success, a financial education program that has impacted more than 5.7 million students since its launch in 2012.

Prioritizing Our People

Discover strives to ensure that employees feel well-supported, valued and have an inclusive workplace that celebrates diversity by:

• Progressing toward our Diversity North Star Goal of 50% women and 40% People of Color (POC) at all management levels by 2025.
• Building a workforce that reflects the diversity of the customers and communities we serve by reducing biases and inequities in our systems and processes and establishing measures and reporting for full talent cycle by 2022.
• Increasing support for employees by enhancing mental health, family, and career resources.
• Developing our workforce by offering educational and upskilling programs, and tuition reimbursement. Since 2018, 2000+ employees have enrolled in an education program and approximately $20 million of tuition costs have been paid by Discover.

Protecting Our Planet

In addition to others build a brighter financial future, we’re committed to environmental responsibility and use sustainability best practices in our own operations through the following:

• Evaluating onsite facilities, building with LEED standards and replacing equipment with energy-efficient and cost-effective technology.
• Decreasing on-site waste output by about 80% and water usage decreased by 25 million gallons in 2021, thanks in large part to a mostly at-home workforce.
• Continuing to provide benefits to environmentally conscious customers – resulting in customers donating $342,000 in rewards to Carbonfund.org, which plants a tree for every dollar they receive.

Making an Impact in Communities

Discover invests in programs that help build resilient communities and ensure that community members, including its employees, have access to critical resources. Delivering on this mission includes:

• Launching Missions as part of our You Care, We Share program to engage employees in community causes and take positive action, allowing them to track their work through gamified, easy-to-complete activities that amplify social responsibility initiatives.
• Engaging employees in volunteerism where more than 5,200 volunteered in 2021 contributing nearly 38,000 volunteer hours, up more than 115% year-over-year.
• Continuing to partner with organizations that share similar values and help us reach more communities, including Cradles to Crayons, Boys & Girls Club, and Blessings in a Backpack.

Operating Responsibility

Discover ensures strong governance practices are in place by:

• Striving for a Board that reflects and represents our diverse workforce; 50% of Discover’s Board committees are chaired by women. Twenty-five percent of Discover’s Board is comprised of people of color.
• Instilling accountability, transparency and good decision-making as core pillars of our Corporate Governance Program.
• Prioritizing cybersecurity by integrating it across Discover, improving cybersecurity capabilities, and developing and retaining a highly-skilled cybersecurity workforce.

For more information, please visit: https://www.corporatereport.com/discover/2021/crr/

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network, comprised of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance around the world. For more information, visit www.discover.com/company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220510005356/en/

Matthew Towson

224-405-5649

matthewtowson@discover.com

@Discover_News

Source: Discover Financial Services

FAQ

What is the focus of Discover's 2021 Corporate Responsibility Report?

Discover's 2021 Corporate Responsibility Report focuses on sustainability, diversity, and economic empowerment initiatives.

How many jobs will Discover create with the new customer care center in Chicago?

Discover plans to create nearly 1,000 jobs with the new customer care center in Chicago by 2024.

What percentage increase did Discover achieve in spending with diverse-owned businesses?

Discover achieved a 35% increase in spending with diverse-owned businesses, totaling $81 million.

How many customers accessed their FICO score through Discover's services in 2021?

Over 13 million customers accessed their FICO score using Discover's Credit Scorecard service in 2021.

What environmental achievements did Discover highlight in their report?

Discover reported an 80% reduction in on-site waste and decreased water usage by 25 million gallons in 2021.