2022 ASB Environmental, Social and Governance Report

ABOUT US

OUR ESG PRIORITY AREAS In collaboration with HEI, we identified seven ESG-related areas that are important to our business and our stakeholders: • Economic Health & Affordability – strengthening the economy and addressing the high cost of living in Hawaii. • Reliability & Resilience – investing in technology to provide critical financial services, especially in natural disasters and other disruptions. • Secure Digitalization – protecting customer and proprietary information by staying ahead of cybersecurity threats and challenges. • Diversity, Equity & Inclusion – advancing diversity, social equity and inclusion in our workforce, customer base and community. • Employee Engagement – attracting, developing and retaining talented teammates by creating a great place to work. • Decarbonization – reducing greenhouse gas emissions across our operations to help our state reach its carbon emissions goal by 2045. • Climate-Related Risks & Opportunities – positioning our company to manage physical and transition risks and identify solutions for climate change. See HEI’s 2022 Environmental Social Governance Report for a detailed description of each priority area, how they were selected and why they are important to us.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CORE TEAM

ETHICAL BANKING PRACTICES

At ASB, “getting stuff done the right way” is one of our core expectations and every teammate is expected to comply with all laws and regulations, including fair dealing, antitrust and anti-tying laws intended to provide customers with a variety of products and services at competitive prices. We uphold and require ethical business practices, including not engaging in agreements that restrict trade or competition, such as price fixing, bid rigging and similar unfair practices, bribery or corruption. A number of departments, including Legal, Regulatory Compliance, Enterprise Risk and Internal Audit are responsible for ensuring or evaluating ASB compliance with all laws and regulations. Additionally, the Audit Committee of the ASB Board of Directors assists with overseeing ASB’s compliance with legal and regulatory requirements. PREVENTING TERRORISM, ORGANIZED CRIME AND HUMAN TRAFFICKING As a financial institution, we must comply with the Bank Secrecy Act, which requires us to identify and report suspicious transactions and potential money laundering to law enforcement authorities. We have developed a program to screen new customers, monitor transactions and prevent unlawful activity. We also must comply with U.S. economic and trade sanctions against foreign countries, terrorists and other individuals and entities. Our policies and practices are designed to comply with the Office of Foreign Assets Control’s regulations against engaging in transactions with governments, individuals or entities on the Specially Designated Nationals and Blocked Persons List.

ASB’s Chief Marketing & Product Officer John Ward and Chief Credit Officer Steven Nakahara oversee the company’s ESG efforts and reporting. They manage an ESG Core Team, comprised of leaders from various divisions at ASB, including the Legal, Enterprise Risk, Finance, Analytics and Communication departments. With the support of ASB’s Management Committee, the ESG Core Team stays current on industry efforts related to decarbonization, economic health and affordability, secure digitalization, diversity and inclusion, employee engagement and other ESG topics. The team shares new trends, proposes changes to operations and product offerings and assists with ESG reporting efforts. MANAGING RISK We continually evaluate and address issues and activities that may pose potential risks to ASB, our teammates, customers, stakeholders and the community. This includes taking precautionary actions to anticipate, identify, mitigate, manage and report on risks related to our services. Our board’s Risk Committee oversees the governance of the enterprise risk management program and provides a forum for detailed discussion and analysis of key issues and decisions designed to identify, mitigate, manage and report on risks potentially affecting ASB in categories, including: • Credit (for loans, including related risk from sea level rise and investment portfolios) • Market (including interest rate sensitivity, liquidity and capital) • Liquidity • Operational (including ESG) • Strategic • Reputational

ASBHAWAII.COM

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