Annaly Capital Management, Inc. Publishes Third Corporate Responsibility Report

Annaly Capital Management, Inc. (NYSE: NLY) (the “Company” or “Annaly”) announced today the publication of its third corporate responsibility report for the year 2021, titled Taking Stock of Our Impact. The report demonstrates Annaly’s continued focus on setting and measuring progress on environmental, social and governance (“ESG”) goals, as well as its commitment to providing increased disclosure and transparency.

“As outlined in our report, we continue to Take Stock of Our Impact – establishing ESG goals and commitments and tracking our considerable progress as we strive to integrate ESG priorities across our business,” said David Finkelstein, Annaly’s Chief Executive Officer and President. “I am pleased to share all that we have accomplished in 2021, including enhancing the Company’s executive compensation program, expanding our parental leave and fertility benefits and providing additional climate-related disclosures. These and our other ESG milestones have helped create durable value for all of our stakeholders.”

Corporate Responsibility Report Highlights

Annaly actively integrates ESG considerations into its overall strategy through the following key areas: corporate governance, human capital, responsible investments and the environment.

Annaly provides supplemental disclosures under the Sustainability Accounting Standards Board (“SASB”) standards and the Global Reporting Initiative (“GRI”) standards frameworks. In the latest report, the Company included additional disclosures outlining climate-related risks and opportunities across its business in the short-, medium- and long-term horizons following the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”). Additionally, the report incorporates summary ESG metrics for the past three years, which include further details on the composition of Annaly’s Board of Directors and employees, philanthropy and volunteerism efforts and environmental indicators.

Highlights and achievements from the 2021 Corporate Responsibility Report include:

• Corporate Governance: Annaly introduced additional enhancements to the Company’s executive compensation program, including increasing the relative weighting of equity as a percentage of total compensation opportunity, along with increasing the proportion of performance-based awards as a percentage of total equity compensation. In addition, the Company amended its corporate governance guidelines and updated Board Committee charters to reflect integrated oversight of ESG practices, initiatives and related risks across the Board and its Committees.
• Human Capital: Annaly furthered its commitment to invest in the Company’s human capital and diversity, equity and inclusion (“DEI”) initiatives: expanding to seven employee-sponsored affinity groups, conducting firmwide DEI educational events as well as enhancing parental leave and fertility benefits.
• Responsible Investments: As of December 31, 2021, Annaly had more than $86 billion in residential housing investments supporting over 650,000 homes. Annaly continues to be committed to further integrating the consideration of ESG factors into its investment and portfolio management processes across its investment strategies.
• Environment: The Company provided additional climate-related disclosures that take into consideration the recommendations of the TCFD and purchased carbon credits to offset 100% of its Scope 2 GHG emissions.

To learn more about Annaly’s corporate responsibility initiatives and to view the 2021 Corporate Responsibility Report, please visit www.annaly.com/our-responsibility.