ICBC

The financial institution delegates decision-making and oversight of its sustainability strategy to its highest governance body and entrusts its implementation to specific functions, teams, or committees. Moreover, it has a stewardship policy that promotes environmental transitions and social best practices aligned with its sustainability strategy. The policy also encompasses client and stakeholder engagement, advocacy, and partnerships.

The financial institution discloses concrete actions taken to align its lobbying and public policy efforts with its sustainability goals and provides examples of how its products, services, and capital contribute to societal climate adaptation and resilience. Finally, the institution monitors its Scope 1 and 2 emissions and reports the monetary amount or share of its products, services, and capital directed to small- and medium-sized enterprises.

The financial institution has a publicly available statement committing to ILO fundamental rights at work but could disclose a formal policy approved by its highest governance body. Furthermore, it has the opportunity to clarify how it determines a living wage in its operational regions. Although bribery and corruption are prohibited, formalising this commitment in a public policy document is advisable. Furthermore, including anti-bribery and anti-corruption clauses in contracts with business partners is also recommended.

While the financial institution identifies material sustainability impacts across the value chain, detailing the process and objective criteria for prioritisation could be improved. Moreover, third-party assurance or verification of target reporting is recommended, along with linking senior executive remuneration to specific sustainability targets. Monitoring scope 3 categories by category and establishing a transition plan for operations, supply chain, and portfolio are also suggested. Additionally, the entity’s emissions reductions should align with their interim targets.

The financial institution should disclose processes to avoid unintended divestment from low-income countries due to unintended consequences of sustainability strategies. Their risk assessment process should include risks associated with the ILO fundamental rights, alongside processes for mitigation when identified. Finally, identifying social risks related to the net zero transition is also recommended, along with providing examples of actions taken on salient human rights issues from the last 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.