A Purpose-Driven
Financial Services Company

Our approach to operating ethically and sustainably has always been core to our business and culture. Over the last decade we have taken deliberate steps to formalize our Sustainability strategy, measure our performance and report our progress with transparency. By accounting for and integrating responsible and sustainable strategies with that of the overall business, we are better able to enhance reputation and brand value, mitigate risk, drive innovation and operational efficiency, attract and retain talent, and strengthen stakeholder relationships.

Governance

Strong boards both advise and challenge company leadership, bringing the directors’ collective experience and expertise to help management chart a successful course for the business while being mindful of and not taking undue risks..”

Joe Motes
Executive Vice President, Chief Administrative Officer, General Counsel & Secretary

Governance
33%

Board gender diversity

11%

Board racial/ethnic diversity

99.9%

Associates completing annual Code of Ethics training

$10M

in diverse and small business spend

Recognition:
named one of America’s Most Responsible Companies 2023 by Newsweek

Management Approach

Operating our business responsibly and ethically is integral to sustaining our business long-term, and delivering on our promises to our customers and other stakeholders. We do this through comprehensive corporate governance structures and maintaining policies and procedures on critical issues—ethics and integrity, risk management, cybersecurity and data privacy, and supply chain management.

Corporate governance

Our commitment to managing our business responsibly starts at the top. Our Board of Directors oversees the company’s long-term strategies and makes decisions in key areas such as risk management, compensation and human capital, succession planning, financial reporting, compliance and data security. The Board also oversees our sustainability strategy and initiatives, including those related to climate risk, DEIB, ethics and stakeholder engagement.

Ethics & Integrity

Our Board and senior management are responsible for setting an example for the rest of the company by fostering a culture of integrity and ethical business practices starting at the top. Since the company’s inception, we have been dedicated to building trust with our customers, investors, associates, suppliers, and other stakeholders by upholding our values and maintaining an unwavering commitment to "do the right thing."

Our Code of Ethics provides guidance to help us consistently make sound decisions and perform our duties ethically and responsibly, while complying with applicable policies, laws and regulations. We encourage our associates, suppliers and others to speak up if they have a concern or suspect a violation of the Code of Ethics or any other Bread Financial policy. Associates can report any concerns or suspected unethical conduct to their supervisor or another manager, a People & Culture representative, the Ethics Office, or via the Ethics Helpline. Our Ethics Helpline is managed by a third party and is available 24 hours a day, 7 days a week. Reports to the helpline can be made by phone (U.S.: 877-217-6218; India: 000-800-9191-189) or online and can be made anonymously.

Proactively managing our risks protects the long-term interests of the company, builds trust with our stakeholders, and allows the company to capitalize on future opportunities. We strive to create a risk culture throughout the organization that supports identification and mitigation of key risks and encourages behaviors that are consistent with our core values and ensuring the resilience of the company.

Our commitment to caring for and empowering our customers extends to the safeguarding of their personal information. Understanding that trust is the basis of achieving success in creating relationships with our customers, we have established and nurtured a culture that relies on strong information security and privacy practices. Data security serves not only to safeguard sensitive information and ensure legal and regulatory compliance, but it is also instrumental to maintaining customer trust and confidence. Additionally, the secure and strategic use of data provides us with a competitive advantage.

We have a comprehensive Data Management Framework that encompasses Information Security & Technology, Data Privacy and Data Governance which together serve as the foundation to our policies and practices to ensure the responsible handling, protection and ethical use of data.

We aim to work with suppliers who share our values and our commitment to conducting business responsibly, with ethics and integrity. We expect our suppliers to support our social responsibility, human rights and diversity initiatives. Our Supplier Code of Conduct states our expectations for compliance with all applicable laws, rules and regulations when engaging in business with, or on behalf of, Bread Financial.

Supplier Diversity

We actively aim to support our communities by increasing business with local suppliers that are diverse-owned and small businesses. By having a supplier diversity program, we are ensuring diverse suppliers have fair and equal opportunities to be included in our sourcing and procurement process. We are seeking to build mutually-beneficial relationships with diverse suppliers that create value for our customers, brand partners and company.

Customers

Understanding the needs and expectations of our customers is a top priority for Bread Financial. Teams across the enterprise strategically collaborate to keep a pulse on what our customers want, how they behave, and where we can improve the experience.”.”

Valerie Greer, Executive Vice President, Chief Commercial Officer

Customers
78.5%

overall customer satisfaction

92.6%

customer care first call resolution

Top 3

Contact Center in North America, per BenchmarkPortal*

Management Approach

Empowering and caring for our customers is our purpose as a business and a promise we make as a brand. It is at the heart of everything we do and is cultivated at all levels company-wide. We offer ease, financial flexibility, and exceptional customer experiences through our digital offerings and market-leading payment, lending and saving solutions. We serve a vast spectrum of customers and make it our business to meet our customers where they are, across generational groups and personal financial journeys. Our goal is to drive a culture of customer experience with our associates to create best-in-class experiences that empower customers through effortless transactions across all touch points, meeting and exceeding their expectations in ways that earn their trust and loyalty.

Fair and responsible lending is central to the cardmembers’ experience and our obligation to equitable and transparent practices in all aspects of our banking services. We serve a wide range of customers, from those with well-established credit to first-time credit seekers and rehabilitating their credit. We also provide best-in-class customer support and transparent communication about our growing portfolio of financial products and services.

We recognize that we are uniquely qualified to promote financial wellness and help our customers meet their financial goals. We empower our associates, customers and communities by providing education and training, expanding access to financial literacy tools, supporting community programs, and exercising fair and responsible banking. We are an active member of Financial Health Network, an organization of business leaders, policy makers and innovators working together to improve financial health for everyone.

For customers, we offer a diverse mix of simple, smart financial payment, lending and saving solutions to help them build credit, save and borrow responsibly. We provide our associates with benefits and tools to help them save and plan for the future with confidence, and achieve financial security in ways that align with their financial goals. In our communities, we make bold, strategic investments in financial education, job training and resources to enable our communities to build a sustainable financial future.

Associates

We have been very focused on the kind of talent that we are hiring, what they can bring to the table, and how they can support the organization and our long-term growth.”

Brandy Sullivan, Senior Vice President & Chief People & Culture Officer

Associates
~7,000

global associates

87%

of associates said they feel Bread Financial is a great place to work

$1,299

investment in training and development per global associate

88%

of direct reports stated their leader creates an environment where it is safe for them to ask challenging questions

44%

women senior leaders

Management Approach

Our associates are not only key stakeholders, but are the heart of our company. We believe in the power of an engaged and fulfilled workforce to deliver on our business commitments and priorities. To that end, we’re dedicated to attracting, developing and retaining top talent, as well as providing opportunities for growth, leadership and recognition.

We take a holistic approach to supporting the associate experience both in and out of the workplace, providing a variety of tools, training and resources. We nurture a work environment that promotes a sense of belonging, collaboration and flexible ways of working, so that all associates can achieve their personal best, while enabling us to meet business objectives and respond to evolving industry and customer expectations.

We aim to cultivate an engaging and rewarding experience for our associates. Achieving high levels of associate pride and engagement demands focused efforts in areas like training and development, competitive compensation and recognition, and supporting the evolving needs of our workforce. We also leverage our unique Associate Value Proposition to consistently deliver personalized and fulfilling experiences for our associates so they feel cared for, understood, connected, invested, supported and valued.

To ensure we are listening to our associates, we ask our global workforce to provide feedback on their experiences five times a year through digital surveys. Collecting this data is, in essence, like taking the “pulse” of our associates to learn how they feel at a given point in time about important topics.

We are committed to providing equitable pathways for individual learning and development for our associates. Our objective is to equip each associate with the necessary tools and support for growth within their current role while identifying avenues for advancement aligned with the organization’s long-term goals. It is equally important to show appreciation for their dedication and hard work through various recognition programs.

We proudly embrace, prioritize and promote diversity, equity and inclusion to build trust, deliver value for all stakeholders and accelerate responsible, sustainable growth. We believe our people are our most important asset and we are at our best when we embrace the diverse perspectives of our associates, clients, customers and communities. In 2023, recognizing a critical component of our work and the intended outcome we strive to achieve—a sense of belonging—we renamed this function Diversity, Equity, Inclusion & Belonging (DEIB). We have intentionally embedded DEIB into our overall governance and business strategy to elevate our commitment and accountability across the four pillars of our strategy—workforce, workplace, marketplace and community.

In 2023, recognizing a critical component of our work and the intended outcome we strive to achieve—a sense of belonging—we renamed this function Diversity, Equity, Inclusion & Belonging (DEIB). We have intentionally embedded DEIB into our overall governance and business strategy to elevate our commitment and accountability across the four pillars of our strategy—workforce, workplace, marketplace and community.

We offer a comprehensive and competitive benefits package that prioritizes the physical and mental wellbeing of our workforce, with a strong focus on financial wellness woven throughout our company and our culture. We recognize that associates in good health are more likely to excel in their roles, stay engaged, and positively impact their communities. That’s why we provide exclusive access to LivingWell, our award-winning holistic wellbeing program. LivingWell offers straightforward, inclusive and affordable solutions tailored to meet associates wherever they are on their wellness journey. By connecting associates and their families with resources that support their overall wellbeing, LivingWell enhances financial confidence allowing them to thrive.

Environment

"By embedding responsible practices throughout the business and ensuring accountability at every level, we can generate long-term value for our stakeholders, drive profitable growth and facilitate an award-winning culture."

Dana Beckman, VP, Chief Sustainability Officer

Environment
685,000 cards

composed of sustainable plastic instead of standard plastics

48,179 lbs

of e-waste diverted from landfills

126,711 lbs

of CO₂ prevented from entering the environment by diverting e-waste from landfills

48%

electricity from renewable resources

Management Approach

We are committed to protecting our planet and doing our part to address the impacts of climate change by embracing environmentally responsible practices throughout the organization. Our environmental goals focus on what is best for the success of our business—addressing climate-related risks and opportunities, reducing our carbon footprint, conserving natural resources, and supporting associate-led environmental initiatives.

Our commitment to protecting the planet starts at the top with our Board of Directors, who provide oversight of the environmental strategy and initiatives that are developed by our Office of Sustainability and guided by our Environmental Policy Statement. In line with this policy, our Environmental Strategy Control Framework defines how we govern, assess and act on our environmental commitments. Through this framework, we identify annual goals and practices to advance our environmental priorities, which are shared with our Board and leadership to promote transparency and accountability of our intended actions. Each of these environmental practices aligns with the expectations of our internal and external stakeholders, and support the long-term success and strength of our business operations.

The path to reducing our environmental footprint starts with a clear and accurate measurement of environmental data, particularly our GHG emissions. On an annual basis, we collect and track Scopes 1, 2 and 3 emissions across our operations, completing our 12th inventory in 2023. We have used our emissions data to report annually to CDP since 2014, maintaining our CDP rating of C in 2023. With Scope 3 being our largest greenhouse gas category, we are committed to engaging with our suppliers to reduce the footprint of our overall value chain.

At each of our locations, we strive to reduce our environmental footprint through facility improvements, investing in renewable energy sources, reducing our waste, and associate engagement and education. We continually evaluate our operations for energy efficiency opportunities, and work towards implementing them each year. In 2023 we met our goal of sourcing renewable energy at all U.S. locations where it was available.

Assessing and mitigating environmental risks continues to be a priority among our various stakeholders and is essential to maintaining resilience within our operations and preparing us for changing regulatory and reporting requirements.

Assessing and mitigating environmental risks continues to be a priority among our various stakeholders and is essential to maintaining resilience within our operations and preparing us for changing regulatory and reporting requirements. We are taking proactive steps to embed climate-related risks into our ERM Framework, and we continually refine our approach to ensure comprehensive oversight and management of these risks. We also issued our second TCFD Report in 2023, demonstrating our progress in identifying, assessing, mitigating and governing climate-related risks and opportunities.

Communities

"Our community reinvestment strategy ensures we uphold our commitment to enrich the economic and social fabric of the communities we serve. Our dedication is a testament to our belief that the true measure of success lies in the positive impact we have on society."

Stephanie White, Director of CRA Compliance

Communities
$8M

in charitable donations

$160%

increase in Associate volunteer hours

$1M

awarded in grants to 21 charities focused on financial wellness

$55M

in new commitments for multi-family affordable housing projects

Management Approach

Community-centric values are deeply ingrained in our company and culture. We make bold, strategic investments that strengthen our communities, foster independence and create opportunities for our associates to engage through volunteerism and supported giving. We work hard to align our community initiatives with our business priorities in a way that will be good for society and good for our business.

We leverage our expertise, talents and resources to help improve the quality of life in our communities. We recognize our responsibilities under the Community Reinvestment Act to identify and assist in meeting the credit needs of our communities. Our CRA strategy is guided by three principles that further support our Purpose-Driven Priorities: building a diverse portfolio of community development loans and investments, making bold and responsive grants and engaging deeply in our communities through service and volunteerism. Our Purpose-Driven Priorities encompass strategic priorities that guide all of our community investments, grants and donations, and are aligned with our business strategy. They are Financial Wellness, Equity & Inclusion, Protecting our Planet.

Our commitment to our communities does not stop with investments and grants. Our associates play a critical role in advancing our initiative to “Pay it Forward.” We match their donations, encourage their volunteer time, and create opportunities for each and every associate to give back in their own way. Our efforts to promote and increase the number of volunteer opportunities in 2023 resulted in a more than 160% increase in associate volunteer hours compared to 2021.