Capital Group

The financial institution maintains a gender balance of 40-60% at the senior executive level and transparently identifies and prioritises its material sustainability impacts across its value chain based on objective criteria and supportable evidence. In terms of governance, decision-making and oversight responsibility for the sustainability strategy is assigned to the highest governance body, while implementation responsibility is delegated to specific functions, teams, or committees. Moreover, it has a stewardship policy that encompasses client and stakeholder engagement, advocacy, and partnerships.

The financial institution has a publicly available policy statement that commits to respecting human rights. Furthermore, it discloses its membership in trade associations and provides information on the monetary value or share of its products, services, and capital linked to priority sectors with the highest negative impact on nature. Additionally, it monitors its Scope 1-2 emissions.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions and to conduct third-party assurance or verification of its target reporting. It is further recommended to link senior executive remuneration performance criteria to specific sustainability targets and to align its stewardship policy with its sustainability strategy.

The financial institution could also commit to refraining from using lobbying and political engagement to influence adverse sustainability outcomes, as well as disclose a commitment to not support new fossil fuel projects nor clients/investees currently involved in these projects. Furthermore, transparency in identifying and prioritising sectors with significant nature-related impacts is encouraged. The financial institution is encouraged to disclose additional Scope 3 emissions categories, providing rationale for any exclusions. Moreover, establishing a transition plan for its operations, supply chain, and portfolio is recommended, as is disclosing the breakdown of clients by income group and processes to avoid unintended divestment from low-income countries.

The financial institution acknowledges the ILO fundamental rights at work and has the opportunity to disclose its risk assessment process related to these rights, including mitigation strategies for identified risks. Additionally, it should identify social risks linked to its products and services in the context of the net zero transition and provide examples of actions taken regarding salient human rights issues from assessments conducted in the past 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.