Our Environment

Financing Green Causes

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We see the direct and societal benefits of enabling our customers to save money on energy costs and reduce their impact on the environment.

From 2018 to 2020, ASB originated $14 million in residential clean energy loans. These loans allowed homeowners to purchase and install their own photovoltaic systems, solar water heaters, solar air conditioning and battery backup and storage. ASB also financed more than $64.9 million in commercial clean energy projects from 2010-2020, generating a total of 20.8 MW in renewable energy. These projects include:

ƒ Forest City Hawai‘i project at Kapolei Sustainable Energy Park — transforming a brownfield waste site into a productive greenfield development with more than 4,200 solar panels

ƒ Hilo Hawaiian Hotel — ensuring the long-term viability of Hilo’s visitor industry by retrofitting and enabling the installation of photovoltaic panels for improved energy efficiency

ƒ Lalamilo Wind Farm project — providing renewable energy to eight water wells operated by Hawai‘i County’s Department of Water Supply — the biggest power consumer on Hawai‘i Island. The project was recognized for reducing greenhouse gas emissions at no cost to taxpayers.

Addressing Climate Change Risk

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Operating on an island chain, we know that we must prepare to adapt to the impacts of climate change and take steps to prudently mitigate related risks. One of the key potential risks from climate change is the potential for sea-level rise to affect properties that secure our loans. We require all homeowners who live in a Special Flood Hazard Area, as defined by FEMA, to maintain sufficient flood insurance throughout the life of the loan. We regularly monitor our credit exposure in areas at risk of future sea-level rise. We perform property research to confirm flood zones, and our underwriting decisions consider factors such as the property location, topography and elevation. For more information on how we’re approaching climate change risk management, see pages 26 to 28.

Sustainable Buildings

Operating a Sustainable Headquarters

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Our new campus enabled us to bring employees once spread out across five different office locations together in one building. This consolidation enhances operational efficiency and reduces emissions by significantly cutting down on the amount of time and energy commuting for meetings across town during the day.

In designing the new campus, we wanted a building that was reflective of our commitment to our customers, our teammates, and the community. We saw the construction of our new headquarters as an opportunity to analyze how we do business and what efforts we could implement to reduce our impact on the environment. Our campus features some of the latest green technologies, including solar panels, electric vehicle charging stations, self-tinting windows, responsive LED lighting, water bottle filling stations and reclaimed wood furniture. We also used this opportunity to evaluate our work habits and made the decision to operate as paperless as possible.

Reducing Emissions from Commuting

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We encourage our teammates to commute to work by carpool, mass transit, bike, or other means — and reward those who do for their commitment to the environment. Teammates who participate in a carpool receive one free parking stall per group, plus a monthly carpool stipend. Teammates who find other means of getting to work receive a larger green stipend, which can be used to cover expenses for alternate transportation or whatever else they choose.

Increasing Energy and Water Efficiency of Our Branches 1

At our new branches, including our Kalihi Branch opened in 2020, we have incorporated LED light fixtures and signage, self-tinting windows and low-flow water fixtures. For our existing branches, we rolled out green initiatives and are retrofitting the facilities with sustainable features. These include installing LED light fixtures and low-flow water fixtures and implementing recycling programs. In addition to having a positive impact on the environment, these features reduce our energy and water use and positively impact our bottom line.

ASB is WELL

At ASB, taking care of your health and wellbeing isn’t just encouraged – it’s made easy with a wealth of benefits available to every single teammate at the company. ASB’s focus on health and wellness was further validated in 2020 when its headquarters (campus) became the first facility in the state of Hawai‘i to earn the WELL Health-Safety Rating.

The rating is an evidence-based, third-party verified rating for businesses achieved through an in-depth assessment of operational policies, maintenance protocols, emergency plans and stakeholder engagement strategies. The review and verification process is conducted by the International WELL Building Institute, which recognizes companies that prioritize health and safety in the workplace, especially in the context of the COVID-19 pandemic.

Building industry experts say the rating is comparable to achieving a LEED certification for health and safety.

“As we continue to fight this global pandemic, prioritizing health and safety in the workplace is more important than ever before,” said Rich Wacker, President and CEO of ASB. “We are proud to be the first in Hawai‘i to earn the WELL Health-Safety Rating, an achievement that underscores our commitment to the health and safety of our teammates, our customers and the community.” To achieve the WELL Health-Safety Rating, ASB worked with hiarchy, llp, the local architect for the campus, to document its internal policies and procedures and submit an online application. The ASB campus was built with health and safety in mind, including emergency and business continuity planning that incorporated pandemic planning. Some of the building’s features that are particularly effective in the COVID-19 environment include:

ƒ A high-grade air conditioning system that continuously circulates fresh air into the building and filters air through a catch-all filter past ultraviolet lights

ƒ Reduction of contact with high-touch surfaces through provision of wipes, automatic doors, door pulls and more

ƒ Adoption of comprehensive business continuity and emergency preparedness plans for a wide range of possible emergencies, including global pandemics and natural disasters

ƒ Support of healthy behaviors through an employee wellness program, ongoing communications, signage throughout the building and the offering of free exercise classes and a

Fitness Center

The WELL Health-Safety Rating provides a centralized source and governing body to validate applications from owners and operators. The ASB campus was awarded the WELL HealthSafety Rating following the successful completion of third-party documentation review, to confirm it met the feature-specific intents and requirements.