Desjardins

The financial institution has measurable targets for providing products, services, and capital for climate solutions and identifies key sectors, clients, and investees for climate engagement. It also provides examples of how its offerings support climate adaptation and resilience. The institution has a stewardship policy which supports environmental transitions and social best practices, covering client engagement, advocacy, and partnerships. It discloses its trade association memberships and positions on sustainability-related lobbying activities, along with actions taken to align public policy engagement with its sustainability strategy. The entity engages in partnerships to influence sectors and support clients in addressing nature-related impacts.

The financial institution has a publicly available policy statement requiring suppliers to respect ILO core labour rights and discloses its approach to lobbying and political engagement, stating it does not make political contributions. It maintains a gender balance of 40-60% at the senior executive level 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, with responsibility for implementing the strategy assigned to various functions, teams, or committees.

The institution monitors scope 1-2 emissions, as well as financed emissions and some other Scope 3 categories. Finally, it discloses the monetary amounts of products, services, and capital provided to women-owned businesses, usually excluded groups, and small- and medium-sized enterprises.

While the financial institution identifies materiality topics, it has the opportunity to provide more detail on its process for identifying and prioritising material impacts, including the use of objective criteria and evidence. It has the opportunity to disclose its method for determining a living wage in its operational regions and to formalise its anti-bribery and anti-corruption commitment in a public policy document. It could include relevant clauses in contracts with business partners.

The institution has a strategy to phase out products and services related to fossil fuels lacking a 1.5°C aligned strategy, but it does not cover all fossil fuels. While it monitors scope 3 emissions beyond financed emissions, additional categories could be included with justifications for exclusions. Furthermore, the financial institution could establish a transition plan covering its own operations, supply chain and portfolio, along with disclosures on scope 1-3 emissions reduction in line with interim targets. Third-party assurance or verification of target reporting is also recommended.

It should also disclose the breakdown of clients by income group and processes to avoid unintended divestment from low-income countries due to sustainability strategies. The institution’s risk assessment process should include ILO fundamental rights risks, with a mitigation process for identified risks. Lastly, the institution is encouraged to provide examples of conclusions and actions taken regarding salient human rights issues from assessments in the past 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.