Environmental & Social Risk Management

We strive to make business decisions that balance the needs of our customers and prospective customers with the interests of our other stakeholders, and to integrate those considerations across our value chain. We continue to learn and make thoughtful decisions as we go, and we are committed to engaging with our stakeholders to understand these evolving issues.

& Social Risk

Environmental & Social Risk
Management Framework

PNC’s Environmental and Social Risk Management (ESRM) framework leverages a multi-layered process including a Rapid Risk Screen that reviews and evaluates Corporate & Institutional Banking transactions across issues that are important to the various stakeholders we serve.

This industry-agnostic assessment is modular — as PNC’s business changes, enhancements to the process can be quickly developed and communicated to ensure that our practices constantly account for current and emerging risks. Feedback from our Commercial Background Research Automation (COBRA) process is also incorporated when evaluating client relationships to help mitigate risks associated with litigation, negative news, possible contingent liability and international sanctions.

Our board of directors reviews the framework annually to ensure continued alignment with PNC’s expanding business, the shifting risk landscape and heightened risk considerations.

Our Approach to Corporate Responsibility

We’re committed to doing the right thing for our shareholders, customers, communities and employees.




Environmental and Social Policy Guidance for Responsible Lending

More information on PNC’s ESRM framework can be found in our Environmental and Social Policy Guidance for Responsible Lending

Our Committment to Human Rights

We recognize that our business decisions must consider environmental, social, human rights and reputational risk factors.

Read PNC's Human Rights Statement

Climate-Related Risk

Climate-related risks are embedded in PNC’s Risk Taxonomy and aligned with traditional categories such as credit, market, liquidity and reputational risk. We consider the potential physical and transition risk impacts on PNC, including collateral value loss; geographic credit concentrations in areas exposed to natural disasters; customer preference shifts, technology improvements and regulatory change; increasing credit losses; and increased operational losses from acute and chronic weather events.

We consider climate risk an amplifier of existing risk types, not as a new risk type. As such, we consider the impact of climate-related risks within our overarching strategic vision to set concrete, incremental and achievable goals. This is done while remaining responsive to forward-looking external factors such as future regulatory guidance; competing demands from governments, investors and activists; and evolving best practices for incorporating climate into our ERM framework and assessing the carbon intensity of our portfolio in ways that support sound decision-making.

Climate Risk Committee

Our Climate Risk Committee oversees the integration of climate-related risks into the Enterprise Risk Management (ERM) Framework. 

Committee members are a cross-functional group of internal stakeholders with key responsibilities, including: 

  • Review, recommend and/or approve the ERM Framework enhancements to integrate climate-related risks 
  • Escalate climate-related risks from across the organization to assess an aggregate view of climate-related risks 
  • Review, recommend and/or approve the development and implementation of a sound, repeatable process to comply with regulatory requirements related to climate

Future climate–related risk management efforts include consideration of climate-related risks in our existing metrics and limits, consideration of new metrics and limits related to PNC strategies or commitments, and development of new risk assessment capabilities, including scenario analysis.

Task Force on Climate-Related Financial Disclosure (TCFD) Report

Learn more about PNC’s Climate Action strategy, and our climate-related risk efforts.

Our Priority Issues

Part of our business success lies in identifying and properly managing our risks while also leveraging our opportunities. That’s why we continue to focus our efforts and voluntary disclosures on areas that matter most to our stakeholders and business. PNC works with an independent agency to formally identify these corporate responsibility priority issues.

Learn more about how we engage with stakeholders, visit Priority Issues & Stakeholder Engagement