DFC

DFC demonstrates leading practices in its disclosure of the amount of financing it provides to underrepresented groups and sectors and gender equality and women’s empowerment. It discloses the amount and/or share (in monetary terms) of products, services and capital provided to both women-owned businesses and small-and medium-sized enterprises. On gender, DFC maintains a gender balance (between 40-60%) at the senior executive level.

While it does not perform particularly well in any specific measurement areas, it is noteworthy that DFC has disclosures across various areas. For instance, it provides at least one example of how its products, services and capital supports the climate adaptation and resilience of society and its operation by country. DFC also has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. Additionally, it specifies that it does not make political contributions.

DFC has scope for improvement in several aspects. including its disclosures on its impact materiality strategy, targets and plans, organizational carbon footprint, fossil fuel financing, risk assessment processes associated with ILO fundamental rights at work and bribery and corruption.

While it identifies material sustainability impacts across its value chain, it could further detail its process and how objective criteria and/or supportable evidence were considered for the identification and prioritisation of impacts. On fossil fuel financing, while the FI aims to rebalance its exposure in the energy sector from fossil fuel extraction, transportation and generation use, it could consider not providing products, services or capital, neither to new fossil fuel projects nor to clients and investees undertaking such projects.

It is also recommended that the financial institution discloses that its risk assessment process includes risks associated with the ILO fundamental rights at work for those impacted by its provision of products, services and capital, as well as its process for mitigating such risks when identified. In relation to bribery and corruption, DFC has an opportunity to disclose a publicly available policy statement prohibiting bribery and corruption and include such clauses in its contracts with business relationships. Lastly, DFC could also disclose that it links performance criteria for remuneration at the senior executive level to specific sustainability targets.

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.