CTBC Financial

The financial institution has a publicly available policy statement committing to respect ILO core labour rights and discloses the results of its human rights risk assessments. It identifies bribery and corruption risks and discloses lobbying expenditures. Performance criteria for senior executive remuneration are linked to specific sustainability targets, with responsibility for implementing the sustainability strategy assigned to various functions, teams, or committees.

A list of trade associations is disclosed, along with key sectors, clients, and investees engaged on climate issues. The nature-related impacts associated with its products, services, and capital are transparently identified, prioritising sectors with the highest impact on nature. The institution discloses the monetary amount of its provision linked to priority sectors with negative impacts and the aggregate amount devoted to nature-positive solutions. It monitors scope 1-2 emissions and discloses the monetary amount of products, services, and capital provided to small and medium-sized enterprises, as well as operational data by country, such as employee numbers or revenue.

The financial institution expects suppliers to respect specific workers’ rights and has the opportunity to reference all ILO fundamental rights at work. It can disclose how it determines a living wage for its operational regions. While identifying material sustainability impacts, the institution could provide more detail on its process for prioritising these impacts using objective criteria and evidence. It does not provide products, services, or capital to certain fossil fuel projects but does not reference all fossil fuels.

The institution has measurable targets for sustainable solutions but could specify the share for climate mitigation. It refers to nature protection and restoration but could disclose a strategy for priority sectors. Although it monitors scope 3 emissions beyond financed emissions, it could include additional categories and rationale for exclusions. The institution provides some methodology details for carbon footprint calculations but could cover all aspects, including emissions coverage and data sources.

It is recommended to disclose the breakdown of clients by income group and to include risks associated with ILO fundamental rights in its risk assessment process. Additionally, it should disclose its process for mitigating identified risks and for identifying social risks related to the net zero transition. Finally, it is recommended to provide an example of conclusions and actions taken regarding salient human rights issues from assessment processes in the last 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.