EFG International

The financial institution assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body while implementation responsibility is delegated to various functions, teams, or committees. It has a publicly available policy statement committing it to respect human rights and monitors its scope 1-2 emissions. Furthermore, the institution has one or more interim targets for the latest 2030 aligned with a 1.5C trajectory. However, no leading practices were identified for the financial institution with regard to Financing Climate and Nature protection and restoration and Inclusive finance.

The financial institution commits to respecting the ILO’s fundamental rights at work but could strengthen its language to formalise this commitment. It expects suppliers to uphold specific workers’ rights but should reference all ILO fundamental rights. There is an opportunity to disclose how a living wage is determined in its operational regions and to include anti-bribery and anti-corruption clauses in its contracts with business relationships.

While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Furthermore, it could link performance criteria for remuneration at the senior executive level to specific sustainability targets and disclose a comprehensive list of trade associations of which it is a member.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Moreover, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

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.