AIA

The financial institution assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. It delegates the responsibility for implementing the sustainability strategy functions, teams, or committees within the institution. Furthermore, the institution discloses specific actions taken to align its lobbying and public policy engagement with its sustainability strategy.

The institution transparently identifies the key sectors, clients, and investees to engage with on climate issues. It also monitors its Scope 1-2 emissions and emissions from associated financing activities (Scope 3 category 15). Additionally, the institution has interim targets for 2025 and 2030 aligned with a 1.5C trajectory.

The financial institution has a publicly available policy statement committing to respect specific workers’ rights but has the opportunity to reference all ILO fundamental rights at work. It discloses expectations for suppliers to respect these rights but could strengthen its language to formalise this commitment. There is an opportunity to include anti-bribery and anti-corruption clauses in its contracts with business relationships.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. It discloses a list of sustainability-related trade associations but has the opportunity to provide a comprehensive list. Although the institution restricts financing for certain fossil fuel projects or clients undertaking such projects, it could expand these restrictions to include all 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.