Dimensional Fund Advisors is a private investment firm headquartered in Austin, Texas. Dimensional Fund Advisors was founded in Chicago in 1981 and has affiliates within 13 offices in the U.S., Canada, U.K., Germany, Netherlands, Australia, Singapore and Japan. It employs over 1,400 staff as of June 2022 and managed USD 679 billion in assets as of December 2021.
Dimension Fund Advisors has an engagement policy where it describes its approach on sustainability themes and impact topics with investees. The financial institution’s proxy voting guidelines include a clear framework with success criteria and escalation points in the event that engagement with investees is unsuccessful. Furthermore, it publishes an engagement report describing how the engagement policy is applied in practice and case studies describing where it has engaged successfully and unsuccessfully with investees on sustainability themes and impact topics. The financial institution also discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations. Furthermore, the financial institution discloses the positions it takes in its lobbying and political engagement activities on sustainability themes.
In terms of its approach to senior leadership accountability, there is no evidence that Dimensional Fund Advisors assigns responsibility for sustainability to the group’s board of directors. In terms of its approach to senior leadership accountability, the financial institution could link the remuneration of its executive or management teams to sustainability performance criteria. No evidence was found that the financial institution is committed to gender equality and women’s empowerment. The asset manager has an opportunity to disclose the proportion of women in senior leadership roles as well as how it addresses any gender pay gaps.
There is no evidence that Dimensional Fund Advisors discloses a target to reach net-zero financed emissions by 2050. The financial institution also has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. The financial institution has an opportunity to specify that it engages with companies on the topic of 1.5°C alignment. There is no evidence that the financial institution discloses its financing activities devoted to climate solutions and that it is committed to minimising the negative impacts it has on nature and biodiversity.
There is no evidence that Dimensional Fund Advisors has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. The financial institution has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its investment activities. Furthermore, there is no evidence that the financial institution discloses the proportion of its total direct operations workforce for each employee category by age group or other indicators of diversity other than gender. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards low-income developing countries.