Erste Group Bank 

The financial institution has a publicly available policy statement expecting suppliers to respect the ILO core labour rights. The oversight of the sustainability strategy is assigned to the highest governance body, with performance criteria for senior executive remuneration linked to sustainability targets. It delegates the responsibility for implementing its sustainability strategy to specific functions or teams within the institution.

The institution has a stewardship policy that covers client and other stakeholder engagement as well as advocacy and partnerships. The policy also outlines criteria for successful outcomes, escalation routes, and conditions for escalation.

Furthermore, the institution transparently identifies the key sectors, clients and investees to engage with on climate issues. It has interim targets for 2025 and 2030 aligned with a 1.5C trajectory, with Scope 1-3 emissions reducing in line with these targets. Also, it monitors its Scope 1-3 emissions and emissions from associated financing activities (Scope 3 category 15). Additionally, it discloses the monetary amount or share of products, services, and capital provided to usually excluded groups and small- and medium-sized enterprises.

The financial institution has a publicly available policy statement committing it to respect specific workers’ rights but has an opportunity to reference all the ILO fundamental rights at work. It could also disclose how it determines a living wage for the regions where it operates. While it defines bribery and corruption, it does not clarify that this includes both giving and receiving anything of value for advantage. Anti-bribery and anti-corruption clauses are included in contracts, but consequences for breaches are unspecified.

While the institution identifies and prioritises material sustainability impacts, it could disclose the objective criteria and evidence used in its materiality analysis. Although it does not provide financing to certain fossil fuel projects or clients and investees undertaking such projects, it has the opportunity to extend these restrictions to all types of fossil fuels. Moreover, it has a time-bound strategy to phase out financing activities and services with existing fossil fuel projects lacking a 1.5°C-aligned strategy in specific sectors, but it could broaden this approach to cover all fossil fuel sectors.

It is recommended that the institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and disclose the breakdown of clients or beneficiaries by income group. It could also clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Additionally, it could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition. The institution could also provide an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers.

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.