Absa Group

Decision-making and oversight for the sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Implementation responsibility for the sustainability strategy is delegated to various functions, teams, or committees. The stewardship policy encompasses client and stakeholder engagement, advocacy, and partnerships.

The institution discloses monetary amounts or shares related to products, services, and capital associated with high-emitting and fossil fuel sectors, alongside time-bound, measurable targets for climate solutions. It identifies key sectors, clients, and investees for engagement on nature-related impacts and monitors scope 1-2 emissions. Additionally, it discloses monetary amounts or shares of products, services, and capital provided to usually excluded groups and to small- and medium-sized enterprises.

The financial institution has a publicly available policy statement committing to respect specific workers’ rights, but could reference all ILO fundamental rights at work. It identifies material sustainability impacts across its value chain but could provide more detail on the criteria and evidence used for prioritisation. The stewardship policy supports environmental transitions and social best practices but could be better aligned with the sustainability strategy. While it mentions nature-related impacts, further details on identification and prioritisation are needed. The institution refers to nature protection and restoration but should disclose a strategy for priority sectors. Engagement with clients on nature could be enhanced to support their strategies for protection and restoration.

Although it offers products that support climate adaptation, it could be more intentional in its disclosures. While information on financed emissions is provided, coverage could be expanded. Monitoring of scope 3 emissions could include additional categories with rationale for exclusions. It is recommended to disclose the breakdown of clients by income group and to include risks associated with ILO fundamental rights in the risk assessment process. Further details on mitigating risks related to ILO rights are also recommended, along with an example of actions taken on salient human rights issues from recent assessments.

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.