Huishang Bank

The financial institution designates its highest governance body to oversee and make decisions regarding its sustainability strategy. Furthermore, responsibility for implementing this strategy is delegated to specific functions, teams, or committees within the organization. Finally, the financial institution reports the monetary value or proportion of products, services, and capital allocated to small and medium-sized enterprises.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions and to include anti-bribery and anti-corruption clauses in contracts. Although it identifies material financial risks related to sustainability, it should enhance its materiality analysis by disclosing how it prioritized its material impacts across the value chain using objective criteria.

Further recommendations include disclosing third-party assurance for target reporting, linking senior executive remuneration to sustainability targets, and detailing the aggregate amount of products, services and capital devoted to nature-positive solutions. Moreover, the entity should identify the nature-related impacts associated with its provision of products, services and capital. While scope 1-2 emissions are disclosed, further detail on scope 2 emissions is suggested regarding location or market-based emissions, along with monitoring of scope 3 categories. A transition plan covering operations, supply chain, and portfolio is also recommended, as well as ensuring emissions reductions align with interim targets.

The financial institution should disclose a breakdown of clients by income group and processes to avoid divestment from low-income countries should be disclosed. The risk assessment process should include the ILO fundamental rights, along with mitigation strategies for identified risks. Finally, the financial institution should identify social risks related to the net zero transition and provide examples of 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.