IADB

IADB assigns decision-making and oversight for its sustainability strategy to its highest governance body. It has established time-bound and measurable targets for providing products, services, and capital for climate solutions and is progressing toward these targets. It also has a strategy for climate adaptation and resilience in society, providing at least one example of its contributions. The institution transparently identifies nature-related impacts linked to its offerings and discloses the monetary amount or share dedicated to nature-positive solutions.

The institution discloses the monetary amount or share of products, services, and capital allocated to women-owned businesses and usually excluded groups, as defined by itself. It provides a breakdown of clients by company size and discloses the monetary amount or share directed to small and medium-sized enterprises. Furthermore, it reports its operations by country and the monetary amount or share of products, services, and capital provided to low-income and lower-middle-income countries.

IADB has a materiality assessment which identifies material sustainability impacts across its value chain, however, further detail on the process and criteria for prioritisation is needed. Recommendations include disclosing third-party assurance of target reporting and linking senior executive remuneration to sustainability targets. IADB lists projects supporting agriculture and land use but does not clarify their negative impact on nature and whilst it previously had a target for nature-based solutions, it discloses that it has not met this target.

IADB lacks evidence of monitoring emissions from its financing activities. It is recommended that IADB discloses that it is monitoring other scope 3 emissions, establishing a transition plan, and ensuring emissions reduction aligns with interim targets. Moreover, IADB should disclose client breakdowns by income group and processes to avoid unintended divestment from low-income countries. Although human rights risks are assessed, it is unclear if ILO fundamental rights are included. Recommendations suggest identifying social risks related to the net zero transition and providing examples of actions taken on salient human rights issues from recent assessments.

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.