CommBank

The financial institution has a publicly available policy statement requiring suppliers to respect ILO core labour rights and maintains a gender balance of 40-60% at the senior executive level. It has a plan to align stewardship activities with targets and assigns decision-making and oversight for its sustainability strategy to the highest governance body. Performance criteria for senior executive remuneration are linked to specific sustainability targets. The stewardship policy includes client and stakeholder engagement, advocacy, and partnerships.

It discloses the monetary amount of products, services, and capital related to high-emitting and fossil fuel sectors, and does not provide support for new fossil fuel projects or clients involved in such projects. Time-bound and measurable targets for climate solutions are established, and progress is made towards these targets. The institution identifies key sectors, clients, and investees for climate engagement and prioritises areas with significant nature-related impacts, disclosing the monetary provision linked to these priority sectors. It engages in partnerships to influence sectors and monitors its scope 1-2 emissions, as well as emissions from associated financing activities (Scope 3 category 15). Interim targets aligned with a 1.5C trajectory are set for 2025 and 2030.

The institution has the opportunity to disclose its methodology for determining a living wage in its operational regions. It identifies material sustainability impacts but could provide more detail on the criteria and evidence used for their prioritisation. While it mentions nature protection and restoration, a strategy covering priority sectors could be disclosed. Engagement with clients and investees on nature offers a chance to influence their strategies for protection and restoration. Although it monitors scope 3 emissions beyond financed emissions, additional categories could be included with justifications for any exclusions.

A breakdown of clients or beneficiaries by income group is recommended, along with disclosing the number of employees or revenue per country. The risk assessment process includes some ILO fundamental rights but could encompass the full set. Further details on the risk mitigation process related to ILO rights are also suggested. The institution should disclose its process for identifying social risks linked to its products, services, and capital in the context of the net zero transition. Additionally, providing an example of conclusions and actions taken regarding at least one salient human rights issue from the last three years is recommended.

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.