FirstRand

The financial institution discloses a stewardship policy which supports environmental transitions and social best practices, as well as covering client engagement, advocacy, and partnerships. In addition, it includes just transition in its stewardship activities and does not make political contributions. In terms of governance, the financial institution assigns decision-making and oversight for its sustainability strategy to its highest governance body. Moreover, performance criteria for senior executive remuneration are linked to specific sustainability targets, while implementation responsibility for the sustainability strategy is assigned to various functions, teams, or committees.

The financial institution also commits to respecting human rights and has publicly available policy statements committing to respect ILO core labour rights for both itself and its suppliers. Additionally, it discloses monetary amounts related to products, services, and capital linked to high-emitting and fossil fuel sectors. Finally, the financial institution monitors emissions from its financing activities (Scope 3 category 15) and discloses monetary amounts related to products, services, and capital provided to usually excluded groups and small- and medium-sized enterprises.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions, as well as to transparently identify and prioritise its material sustainability impacts across its value chain based on objective criteria and/or supportable evidence. It lists some trade associations memberships focused on sustainability but could further disclose a full membership list, as well as align its lobbying actions with its sustainability strategy.

While the financial institution applies exclusion criteria for certain sectors regarding nature, it should identify and prioritize areas with significant nature-related impacts i.e. sectors and areas associated with the highest impact on nature stemming from its provision of products, services and capital. Moreover, it is recommended that the entity conducts third-party assurance for target reporting. The financial institution discloses its scope 1-2 emissions but could clarify scope 2 emissions as market-based or location-based.

It is recommended that the financial institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and publish 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. Although it publishes an environmental and social risk assessment policy, the financial institution should include risks related to ILO fundamental rights and disclose associated mitigation processes. Finally, it is recommended to identify social risks linked to the net zero transition and provide examples of conclusions and actions taken regarding salient human rights issues from assessments in the past three years.

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.