Bread Financial Releases 2021 ESG Performance Report; Introduces Renewed & Enhanced ESG Strategy

Ninth annual report provides well-defined framework and roadmap that clearly outlines Company’s social and environmental priorities

Bread Financial (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today released its 2021 Environmental, Social and Governance (ESG) Performance Report, which outlines a new ESG strategy providing a more detailed and enhanced framework for its sustainability and corporate responsibility objectives.

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“As part of our broader transformation efforts, Bread Financial is redefining who we are, and what we stand for as a purpose-driven financial services company,” said Ralph Andretta, president & CEO of Bread Financial. “While we remain steadfast in our principled approach to operating as a responsible organization, we have placed a renewed emphasis on prioritizing policies, protocols and practices that will advance our sustainability objectives, strengthen the trust and confidence of our associates, investors and customers, and improve how we deliver on our promises to our valued stakeholders.”

After achieving its previous three-year sustainability goals in 2020, Bread Financial made significant strides in renewing its ESG commitments in 2021. Milestones included:

• Creating a new Head of Sustainability position to oversee and lead the development of the Company’s ESG strategy and execution
• Developing an executive compensation scorecard with metrics tied to ESG performance
• Drafting and disclosing its Environmental Policy and Human Rights Statement

The 2021 ESG report details the Company's actions and performance across its sustainability priorities. Select highlights included:

• Diversity, Equity & Inclusion (DE&I): Appointed a Chief Diversity Officer, hired a Vice President of DE&I and appointed a 13-member council, increased diversity at the senior leadership level by 1%, and introduced a diversity metric to the Company’s incentive compensation scorecard
• Financial Wellness: Established an internal work group to develop a holistic financial wellness program and became a national partner of the Jump$tart Coalition, which brings together nationally focused organizations to move financial literacy forward, particularly among preschool through college-aged students
• Protecting Our Planet: Ahead of typical hurricane and wildfire seasons, pledged $300,000 to Red Cross Disaster Relief to fund technology that allows the organization to be better prepared to meet the needs of people affected by disasters across the United States
• Community Investment: Invested $10 million into a social impact fund that finances affordable housing, job creation, healthcare, education and infrastructure projects

“While our transformation to Bread Financial marks a new era for our business, the progress documented in our report is borne out of Bread Financial’s decades-long commitment to responsible business practices,” said Dana Beckman, head of sustainability, Bread Financial. “Collectively, our leadership team and our Board of Directors set the tone at the top, providing the critical oversight necessary to assure clear expectations of accountability for executing against our ESG priorities across the entire organization. Managing our business responsibly is core to delivering sustainable financial performance as well as value to our stockholders, clients, associates and communities.”

Bread Financial conducts an annual evaluation and assessment of evolving ESG standards, which led to the adoption of Sustainability Accounting Standards Board (SASB) standards in its 2019 report. The Company first reported against Global Reporting Initiative (GRI) standards in 2016.

To learn more about Bread Financial's sustainability strategy and progress, please view the full 2021 ESG Performance Report.

About Bread Financial^™

Bread Financial^TM (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (BNPL). Bread Financial also offers direct-to-consumer solutions that give customers more access, choice and freedom through its branded Bread Cashback^TM American Express^® Credit Card and Bread Savings^TM products.

Formerly Alliance Data, Bread Financial is an S&P MidCap 400 company headquartered in Columbus, Ohio, and committed to sustainable business practices powered by its 6,000+ global associates. To learn more about Bread Financial, visit BreadFinancial.com or follow us on Facebook, LinkedIn, Twitter and Instagram.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as "believe," "expect," "anticipate," "estimate," "intend," "project," "plan," "likely," "may," "should" or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, initiation or completion of strategic initiatives including our ability to realize the intended benefits of the spinoff of the LoyaltyOne^® segment, future dividend declarations, and future economic conditions, including, but not limited to, market conditions, inflation, developments in the geopolitical environment, including the war in Ukraine, and the ongoing effects of the global COVID-19 pandemic, which remain difficult to predict.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

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“As part of our broader transformation efforts, Bread Financial is redefining who we are, and what we stand for as a purpose-driven financial services company,” said Ralph Andretta, president & CEO of Bread Financial.