Bank of China

The financial institution links performance criteria for remuneration at the senior executive level to specific sustainability targets. It discloses the aggregate amount of its provision of products, services and capital devoted to specified nature-positive solutions and small-and medium-sized enterprises. However, no leading practices were identified for the financial institution with regard to Environmental footprints.

The financial institution has a publicly available policy statement committing it to respect specific workers’ rights but has an opportunity to reference all the ILO fundamental rights at work. While it prohibits bribery and corruption, it could formalise this commitment in publicly available policy statement and include such clauses in contracts with its business relationships.

Although the institution identifies material sustainability impacts across its value chain, further details on the processes and criteria for prioritisation could be provided. It discloses a list of some sustainability related working groups of which it is a member but could provide a comprehensive list of trade association affiliation to enhance transparency. The institution does not provide financing to certain fossil fuel projects or clients and investees undertaking such projects but has the opportunity to cover all types of fossil fuels.

Furthermore, it is recommended that the institution clarifies the method used for Scope 2 emissions and monitors other Scope 3 emissions with rationale provided for excluded categories. Its 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, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

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.