Bayerische Landesbank

The financial institution maintains a publicly available policy statement that expects suppliers to uphold the ILO core labor rights. In terms of governance, it entrusts decision-making and oversight of its sustainability strategy to its highest governance body, while delegating its implementation to designated functions, teams, or committees.

The financial institution also has a publicly available policy committing to respect human rights. Finally, it monitors its scope 1 and 2 emissions as well as the emissions from its associated financing activities (Scope 3, category 15).

The financial institution identifies material sustainability impacts across its value chain but could enhance its disclosure regarding the processes and objective criteria used for impact identification and prioritisation. Moreover, it is recommended to disclose third-party assurance or verification of target reporting and to link senior executive remuneration to specific sustainability targets.

While a list of some trade associations and sustainability organisations is provided by the financial institution, a full list of trade association memberships is recommended. Although the entity claims it does not participate in lobbying, it could commit to not using its political engagement to create adverse sustainability impacts. While the financial institution has policies limiting financing for high-impact fossil fuel activities it should clarify that it refrains from supporting new and current fossil fuel projects.

The financial institution monitors scope 3 emissions but should specify coverage by category as well as detail the methodology for footprint calculation. A transition plan covering operations, supply chain, and portfolio is recommended, along with disclosures on emissions reduction in line with interim targets. The financial institution should also provide a breakdown of clients by income group, as well as disclose processes to avoid potential divestment from low-income countries due to unintended consequences of sustainability strategies. Moreover, it should provide an example of how its products and services support the climate adaptation and resilience of society.

Although the financial institution mentions that it assesses human rights risks, it should disclose a risk assessment process covering the ILO fundamental rights, as well as a process for mitigating identified risks for those impacted by its products, services and capital. Finally, it is recommended the entity discloses a process for identifying social risks related to the net zero transition, as well as provide an example of actions taken regarding salient human rights issues from the last three years.

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.