EBRD

In terms of senior leadership accountability, EBRD’s board of directors approves the strategic framework which includes sustainability topics. Following a yearly regression analysis of the gender pay gap, the DFI discloses that no statistically significant unexplained pay gaps have been found. Moreover, EBRD has an environmental and social policy where it describes its monitoring process on social and environmental performance requirements (PRs) as well as related escalation criteria. Additionally, EBRD identified and prioritised its impacts through a materiality exercise which included stakeholders’ engagement.

In addition to disclosing the key sectors to engage with on climate change and the rationale for choosing these priorities, EBRD publishes the percentage of green investments and the amount of billion invested in climate mitigation, adaptation, and environmental activities. EBRD has set a goal for green investments to account for more than 50 percent of the business by 2025. In its PR 6, EBRD discloses its commitment to minimising negative biodiversity impact, the process of identification of biodiversity risks when financing projects, its priority biodiversity features, and related financing criteria. Furthermore, it includes biodiversity due diligence for its clients and requires the latter to have a biodiversity project mitigation strategy in place. Moreover, EBRD discloses the monetary amount it devotes to nature- and biodiversity-related solutions.

EBRD discloses the proportion of women in its total direct operations workforce for each employee category and the amount of finance it directs towards small-medium enterprises (SMEs) projects. It also provides evidence of publicly available policy statements committing it to respect the health and safety of workers and to protect personal data. In addition, EBRD has a grievance mechanism in place accessible to all workers, external individuals, and communities to raise human rights complaints or concerns. In relation to bribery and corruption, the DFI discloses the process to identify related risks as well as a grievance mechanism for stakeholders to raise related concerns.

There is no evidence that EBRD links the remuneration of its executive or management teams to sustainability performance criteria. The DFI has an opportunity to improve its performance on gender equality by disclosing a statement committing to gender equality and women’s empowerment in the broad sense and by publishing the gender of its highest governance body. Further, it has an opportunity to reach at least 40% female representation in senior leadership positions. Although the DFI discloses the PRs framework for its direct investment, it does not provide evidence of how the policy has been applied to all financing activities. Moreover, EBRD could publish case studies describing where it has engaged successfully and unsuccessfully with clients on sustainability themes and impact topics.

EBRD discloses its goal to align with the Paris Agreement but has an opportunity to disclose a target to reach net zero financing by 2050 as well as a clear interim reduction target for its financed emissions. Moreover, EBRD has an opportunity to disclose alignment with the Paris Agreement as one of its engagement priorities with companies to which it provides financial services. While EBRD discloses that its green bonds are aligned with the Green Bond Principles, it does not provide evidence for its green investments. In addition, EBRD can improve its performance by disclosing progress against the targets it has set for its climate solutions.

EBRD has a publicly available policy statement committing it to respect human rights but it applies to its project financing and not its operations. Although the DFI integrates human rights due diligence in its financial activities, it has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities. In relation to diversity and inclusion, EBRD discloses the ages of specific employee categories but has an opportunity to disclose this information for each employee category. To conclude, it could publish the aggregate amount it directs towards usually excluded groups and low-income developing countries.