Danske Bank

The financial institution publishes an engagement report on sustainability impact topics and has a publicly available policy committing to respect ILO core labour rights, which also extends to its suppliers. Not only does the institution specify that it does not make political contributions and discloses its lobbying expenditures, but it also requires third-party lobbyists to comply with its lobbying and political engagement policy.

Moreover, the 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. It discloses its financial involvement with high-emitting and fossil fuel sectors and refrains from providing products or services to new fossil fuel projects or clients involved in such projects.

The institution transparently identifies the key sectors, clients, and investees to engage with both climate issues and nature-related impacts. It monitors its scope 1-2 emissions and emissions from associated financing activities (Scope 3 category 15). Also, it has one or more interim targets for latest 2030 aligned with a 1.5C trajectory and discloses 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. Although it provides evidence of third-party assurance or verification, it is unclear if the targets are included. While the institution has a time-bound strategy to phase out the provision of products, services, and capital to existing fossil fuel projects lacking a 1.5°C-aligned strategy, it could expand to cover all types of fossil fuels.

Furthermore, the institution monitors scope 3 emissions beyond financed emissions but it could cover additional categories and provide a rationale for those excluded. It has the opportunity to provide evidence detailing its engagement with clients and investees to set strategies for nature protection and restoration.

It is recommended that the institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and publish 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. Additionally, it could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition. The institution could also provide an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers.

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.