APG

The financial institution publishes an engagement report on sustainability impact topics and has a stewardship policy which supports environmental transitions and social best practices, covering client and stakeholder engagement, advocacy, and partnerships, with criteria for successful stewardship results and escalation routes.

The financial institution also has a publicly available policy committing to respect ILO core labour rights and human rights. It requires third-party lobbyists to comply with its lobbying and political engagement policy and maintains a gender balance of 40-60% at the senior executive level. Moreover, responsibility for implementing the sustainability strategy is assigned to various functions, teams, or committees.

The institution discloses its lobbying positions on sustainability topics and identifies key sectors, clients, and investees for engagement on climate and nature-related impacts, influencing them to develop strategies for nature protection and restoration. Additionally, It engages in partnerships to support these efforts and monitors its scope 1-2 emissions, as well as emissions from associated financing activities (Scope 3 category 15) and other scope 3 categories. Finally, it discloses operations by country and describes processes for identifying specific human rights risks and impacts related to its products, services, and capital.

The financial institution identifies material sustainability impacts across its value chain but could improve on detailing its identification and prioritisation processes. It states it does not make political contributions but lacks a formal public policy commitment.

It is recommended that the financial institution includes disclosure of third-party assurance for target reporting and links senior executive remuneration to sustainability targets. While it lists some trade associations, the list is incomplete. Although the institution acknowledges the need for caution in stakeholder dialogue regarding its sustainability strategy, it could commit to not using lobbying to create adverse impacts.

The financial institution has opportunities to provide specific actions related to stakeholder involvement, set measurable targets for climate solutions, and transparently identify sectors with significant nature-related impacts. Although it mentions conservation efforts, a strategy for nature restoration/protection covering priority sectors is needed.

The institution discloses its financial contributions to nature-positive solutions but could clarify this further. Recommendations also include establishing a transition plan, reducing scope 1-3 emissions in line with interim targets, and breaking down clients by income group. It should disclose processes to avoid unintended divestment from low-income countries and its own risk assessment regarding ILO fundamental rights. Additionally, it is advised to identify social risks related to the net zero transition and provide examples 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.