abrdn

The financial institution publishes an engagement report on sustainability impact topics and has a publicly available policy statement requiring suppliers to respect ILO core labour rights. It specifies that it does not make political contributions. Additionally, oversight of the sustainability strategy is assigned to the highest governance body, with performance criteria for senior executive remuneration linked to sustainability targets. It delegates the responsibility for implementing its sustainability strategy to specific functions or teams within the institution.

The institution has a stewardship policy that defines criteria for successful outcomes, escalation routes for unsuccessful engagements, and escalation conditions. Additionally, it identifies key sectors, clients, and investees for engagement on climate issues and nature-related impacts. It also participates in partnerships to influence clients and investees to address their nature-related impacts. Moreover, the financial institution monitors its Scope 1 and 2 emissions.

The financial institution has a publicly available policy statement committing to respect specific workers’ rights but could reference all ILO fundamental rights at work. While the institution identifies material sustainability impacts across its value chain, further details on the processes and criteria for prioritisation could be provided.

The institution could disclose a comprehensive list of the trade associations of which it is a member and commit to avoiding adverse sustainability impacts through lobbying and political engagement. While it has a time-bound strategy to phase out the provision of products, services, and capital to existing fossil fuel projects lacking a 1.5°C-aligned strategy, it could expand to cover all types of fossil fuels.

It is recommended that the financial institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. The institution’s risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Additionally, it could strengthen its disclosure by providing an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.