EQT

The financial institution has publicly available policy statements committing to respect ILO core labour rights and expecting suppliers to do the same. In terms of governance, decision-making and oversight for the sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Moreover, implementation responsibility for the sustainability strategy is delegated to various functions, teams, or committees.

The financial institution discloses a stewardship policy which supports environmental transitions and social best practices, encompassing client and stakeholder engagement, advocacy, and partnerships. Additionally, there is a commitment to respect human rights, and the institution transparently identifies key sectors, clients, and investees for climate engagement. The financial institution also monitors scope 1-2 emissions and discloses operations by country, including employee numbers and revenue.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions. Although it states that employees need pre-approval for political contributions, it could clarify that it does not make such contributions through a public policy statement. While the entity identifies material sustainability impacts across its value chain, further details on the criteria and evidence used for prioritisation could be provided. Moreover, although the financial institution does disclose memberships of some sustainability initiatives it participates in, it does not disclose a full lit of its trade association memberships.

While the financial institution has measurable targets for sustainability-linked loans, specifying the portion allocated to climate mitigation solutions is recommended. Moreover, it could provide examples of how its offerings support climate adaptation and resilience. While monitoring scope 3 emissions, additional categories could be included with justifications for any exclusions. The financial institution also has the opportunity to detail specific actions taken to align its lobbying and public policy engagement with its sustainability strategy.

Further recommendations include disclosing a transition plan for its operations and supply chain and ensuring scope 1-3 emissions align with interim targets. Additionally, it should address potential divestment from low-income countries due to unintended consequences of sustainability strategies and and break down clients by income group. Finally, a risk assessment process related to ILO core conventions and social risks in the net zero transition is recommended, along with examples of actions taken regarding salient human rights issues from recent assessments.

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.