First Horizon's Adoption-Friendly Workplace Policies: A Blueprint for Long-Term Financial Resilience

First Horizon National Corp (NYSE: FHN) has quietly built one of the most enduring commitments to adoption-friendly workplace policies in the financial sector, earning recognition as a “100 Best Adoption-Friendly Workplace” from the Dave Thomas Foundation for the 17th consecutive year in 2025. This streak underscores a strategic focus on social responsibility that goes beyond public relations—evidence suggests these policies are a key driver of talent retention, operational stability, and risk mitigation. For investors, First Horizon's approach offers a compelling case study in how ESG (Environmental, Social, Governance) initiatives can translate into sustainable financial performance.

The Pillars of First Horizon's Adoption-Friendly Policies

First Horizon's policies align with the Dave Thomas Foundation's criteria, which prioritize financial reimbursement (45% of evaluation weight), paid leave (45%), and employee eligibility (10%). While the company does not publicly disclose exact figures, the Foundation's 2025 survey reveals that participating employers averaged $15,709 in adoption cost reimbursement and 8.8 weeks of paid leave for adoptive parents. Foster parents also receive 8.8 weeks of paid leave, a policy First Horizon likely mirrors given its consistent recognition. These benefits are far above the minimum federal standards, which offer no paid leave for adoption and minimal financial assistance.

First Horizon's commitment extends beyond compliance. Senior Executive Vice President Tanya Hart emphasizes that the policies reflect the company's broader mission to “support associates in expanding their families.” This ethos is embedded in the company's five ESG pillars—Clients, Associates, Communities, Environment, and Governance—outlined in its 2023 ESG Impact Report. By addressing the financial and logistical challenges of adoption, First Horizon reduces turnover risks and fosters a culture of loyalty, critical in a competitive banking sector.

The Financial Case for Social Responsibility

The connection between ESG initiatives and financial performance is well-documented. Companies with strong ESG profiles often experience lower turnover, higher employee productivity, and enhanced brand reputation—all of which reduce operational and reputational risks. For First Horizon, the data supports this:

1. Talent Retention: Banks with robust parental leave policies see a 20–30% reduction in turnover among new parents, according to a 2024 Harvard Business Review study. This stability lowers recruitment costs and preserves institutional knowledge.
2. Risk Mitigation: First Horizon's policies pre-empt regulatory shifts. For example, even as the U.S. withdrew from the Paris Agreement in 2025, the company's ESG framework—rooted in stakeholder engagement—positions it to adapt to state-level climate mandates and evolving labor standards.
3. Cost Efficiency: By covering adoption costs, First Horizon avoids the productivity dips associated with employee stress or burnout during adoption processes.

Navigating ESG-Driven Investment Risks

While First Horizon's approach is laudable, investors must consider broader risks. The banking sector faces headwinds like rising interest rates and regulatory uncertainty. However, the company's ESG focus provides a buffer:

• Regulatory Tailwinds: States like California and New York are tightening labor protections, aligning with First Horizon's policies.
• ESG Investor Demand: Assets in ESG-focused funds grew 12% annually between 2020–2025, per Morningstar. First Horizon's recognition by the Dave Thomas Foundation positions it as a preferred investment for socially conscious funds.

Investment Thesis: First Horizon as an ESG Leader in Banking

First Horizon's adoption policies are not an afterthought—they are a core part of its ESG strategy, which has helped it achieve a Sustainalytics ESG Risk Rating of 19.1/100 (lower is better), outperforming 80% of its peers. For investors, this suggests:
- Lower Risk: Strong ESG practices reduce litigation exposure (e.g., greenwashing claims) and operational disruptions.
- Long-Term Growth: A loyal workforce and positive brand reputation can drive organic revenue growth in a saturated banking market.

Conclusion: A Model for Sustainable Banking

First Horizon's 17-year commitment to adoption-friendly policies is more than a social initiative—it's a strategic asset. By addressing employees' holistic needs, the company builds a resilient workforce, mitigates risks, and positions itself to thrive in an ESG-driven economy. For investors seeking exposure to a bank with both financial stability and ESG credibility, First Horizon offers a compelling opportunity. As the banking sector evolves, those who prioritize people alongside profit will likely outpace competitors in the long run.

Consider First Horizon as a buy for portfolios seeking a blend of ESG alignment and financial stability, particularly as regulatory and consumer preferences increasingly favor socially responsible institutions.