Hannover Re

The financial institution assigns oversight of its sustainability strategy to the highest governance body and delegates implementation to internal functions, teams, or committees. Moreover, it discloses its trade association memberships and actions to align its lobbying and public policy engagement with its sustainability strategy.

Additionally, the financial institution transparently identifies key sectors, clients, and investees for climate engagement. Furthermore, it provides examples of how its products, services, or capital support societal climate adaptation and resilience of society, as well as monitors its Scope 1-2 emissions.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions and to formalise its commitment to not making political contributions in a public policy document. It transparently identifies material topics and processes but could improve by disclosing how these criteria are objectively evaluated.

Further recommendations include conducting third-party assurance for target reporting, linking senior executive remuneration to sustainability targets, and establishing a stewardship policy aligned with its sustainability strategy. While the financial institution claims to conduct lobbying in line with this strategy, a formal commitment to avoid adverse sustainability impacts is suggested.

The financial institution monitors scope 3 emissions but should specify coverage categories per the GHG protocol and detail its footprint calculation methodology. It is also recommended that the entity discloses a transition plan for its operations, supply chain, and portfolio, and to ensure scope 1-3 emissions align with their interim targets. Additionally, the financial institution should provide a breakdown of clients by income group and outline processes to prevent divestment from low-income countries due to unintended consequences of sustainability strategies.

Finally, the financial institution’s risk assessment process should include ILO fundamental rights and social risks related to the net zero transition, with examples of actions taken on salient human rights issues from 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.