Charles Schwab Corporation

No leading practices were identified for the financial institution in the governance and strategy measurement area.

No leading practices were identified for the financial institution in the respecting planetary boundaries measurement area.

Charles Schwab Corporation has a grievance mechanism accessible to all workers to raise human rights complaints or concerns. The financial institution has a publicly available policy statement which shows it is committed to respecting the health and safety of workers. The financial institution has a policy prohibiting bribery and corruption. The financial institution takes steps to identify and address bribery and corruption. Charles Schwab Corporation also discloses a public commitment to protect personal data. In a public policy statement, the financial institution discloses its approach to lobbying and political engagement as well as discloses its lobbying expenditures.

In terms of its approach to senior leadership accountability, there is no evidence that the financial institution assigns responsibility for sustainability to the group’s board of directors. There is no evidence that Charles Schwab Corporation links the remuneration of its executive or management teams to sustainability performance criteria. It has an opportunity to disclose the proportion of women in senior leadership roles as well as how it addresses any gender pay gaps. In terms of female representation in leadership positions, women are underrepresented on the board of directors where only four out of 17 board members are women. Charles Schwab Corporation has an opportunity to describe its engagement approach on sustainability themes and impact topics with investees.

There is no evidence that Charles Schwab Corporation discloses a target to reach net-zero financed emissions by 2050. The financial institution has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. Though the asset manager gives the option of investing in funds that focus on green economy industries, including renewable energy, energy efficiency, environmental services, water infrastructure and green real estate, no evidence was found in relation to the aggregate amount of its financing activities devoted to climate solutions. Regarding nature and biodiversity, no evidence was found that the financial institution is committed to minimising its negative impacts or financing regenerative solutions.

There is no evidence that the financial institution has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. The financial institution has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. The financial institution has an opportunity to disclose the proportion of its total direct operations workforce for each employee category by age group, gender or another indicator of diversity. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of investments directed towards low-income developing countries.