BlackRock

The institution publishes an engagement report detailing outcomes related to sustainability impact topics and engages with stakeholders whose human rights may be affected by its activities. It specifies that it does not make political contributions. 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 within the institution.

The institution has a stewardship policy that outlines criteria for successful outcomes, escalation routes for unsuccessful efforts, and escalation conditions. It transparently identifies key sectors, clients, and investees for engagement on climate issues and nature-related impacts. Additionally, the institution identifies the nature-related impacts associated with its provision of products, services, and capital. Furthermore, it actively engages with clients and investees to influence and support the development of strategies for nature protection and restoration.

Lastly, the institution monitors its Scope 1-3 emissions and emissions from associated financing activities (Scope 3 category 15).

The financial institution commits to respecting the ILO’s fundamental rights at work but has the opportunity to formalise this in a policy document. It expects suppliers to uphold specific workers’ rights but could reference all ILO fundamental rights. Although it provides a partial list of trade associations it is a member of, disclosing a comprehensive list would further improve transparency.

The institution restricts financing for certain fossil fuel projects or clients undertaking such projects, but it could expand these restrictions to include all fossil fuels. While it refers to sectors and areas for nature-related impacts, further details on how those were identified and prioritized as those with the highest impact with regard to its provision of products, services, and capital could be provided.

It is recommended that the institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and publish the breakdown of clients or beneficiaries by income group. It could also clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Additionally, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition. Moreover, it could also provide 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.