Cathay Financial Holding

The financial institution has publicly available policy statements committing to respect ILO core labour rights and expecting suppliers to do the same. It describes its process for assessing its human rights risks and discloses what it considers to be its salient human rights issues. Not only does the financial institution disclose its approach to lobbying and political engagement in a policy statement, but it also discloses its lobbying expenditures.

Moreover, the financial institution has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. The policy also covers client and other stakeholder engagement as well as advocacy and partnerships. It commits to respecting human rights in a publicly available statement and discloses the positions it takes in its lobbying and political engagement activities on sustainability topics.

The financial institution identifies key sectors, clients, and investees for engagement on climate-related issues and assesses nature-related impacts associated with its products, services, and capital. Also, it transparently identifies and prioritizes sectors and areas for nature-related impacts, such as sectors and areas associated with the highest impact on nature stemming from its provision of products, services, and capital.

Furthermore, the institution monitors its scope 1-2 emissions and emissions from associated financing activities (Scope 3 category 15). It discloses financial service provided to usually excluded groups and small and medium-sized enterprises. It also reports its business operations such as the number of employees by country.

The financial institution has an opportunity to disclose how it determines a living wage for the regions where it operates. Employees are required to comply with relevant regulations and company rules during lobbying or political engagement, but it could clarify if exceptions are made and the criteria for such exceptions.

While 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 trade associations of which it is a member but could provide a comprehensive list of affiliations to enhance transparency. Additionally, the institution’s position on climate policies should be formalised in an official document or by an authorised signature, and it could commit to not using lobbying that would lead to adverse sustainability impacts.

While the institution has time-bound and measurable targets for the provision of products, services, and capital for “green” solutions, it has the opportunity to specify the share devoted to climate solutions and align them with internationally adopted frameworks. It is recommended that the institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and disclose 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.

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.