Grupo Aval

The financial institution engages third-party assurance or verification for its target reporting. Furthermore, it entrusts decision-making and oversight of its sustainability strategy to its highest governance body and delegates implementation responsibilities to specific functions, teams, or committees within the organization. Finally, the financial institution has a publicly available policy statement affirming its commitment to respect human rights and provides country-level operational disclosures, such as the number of employees or revenue.

The financial institution has the opportunity to disclose its method for determining a living wage in its operational regions. Although it claims not to make political contributions, it lacks a formal public policy on this commitment. While it identifies material sustainability impacts across its value chain, further detail on the criteria and evidence used for prioritisation is needed.

The financial institution could consider linking senior executive remuneration to specific sustainability targets and disclose a stewardship policy aligned with its sustainability strategy. Moreover, it could provide a comprehensive list of its trade association memberships. There is the opportunity to disclose that it does not provide products, services or capital, neither to new fossil fuel projects nor to clients and investees undertaking such projects. Although the financial institution discloses its scope 1-2 emissions, more detail regarding location or market-based values for scope 2 emissions is suggested.

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. 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.