IFM Investors

The financial institution has a stewardship policy which supports environmental transitions and social best practices, encompassing client and stakeholder engagement, advocacy, and partnerships. Moreover, it has an engagement/stewardship report which outlines the outcomes of sustainability impact engagements.

In terms of governance, decision-making and oversight for the sustainability strategy are assigned to the highest governance body. Performance criteria for senior executive remuneration are linked to specific sustainability targets and a gender balance of 40-60% is maintained at the senior executive level. Additionally, the implementation of the sustainability strategy is the responsibility of designated functions, teams, or committees.

The financial institution further discloses actions taken to align lobbying and public policy with the sustainability strategy, as well as transparently identifies key sectors, clients, and investees for climate engagement. Finally, scope 1-2 emissions are monitored by the financial institution.

The financial institution has the opportunity to disclose its method for determining a living wage in its operational regions. While it is developing a supplier code of conduct that addresses bribery and corruption, the financial institution has the opportunity to clarify that it currently includes anti-bribery and anti-corruption clauses in its contracts with business relationships. Moreover, third-party assurance or verification of target reporting is recommended for disclosure.

While the financial institution lists some trade associations memberships which focus on sustainability, it has the opportunity to disclose a full list of trade association memberships. Furthermore, although it has a time-bound target to phase out financing to thermal coal, it could also disclose a strategy for phasing out products and services related to fossil fuel projects lacking a 1.5°C aligned strategy covering all fossil fuels.

The financial institution monitors scope 3 emissions beyond financed emissions but could specify their coverage by category according to the GHG protocol. A transition plan for its operations, supply chain, and portfolio is also recommended, along with disclosures on scope 1-3 emissions reduction in line with interim targets. The entity could further disclose its operations by country (by revenue or employees), as well as provide a breakdown of its clients by income group.

Further recommendations include disclosing processes to avoid divestment from low-income countries as a result of unintended consequences of sustainability strategies, as well as disclosing a materiality assessment and targets for climate mitigation solutions. While it integrates human rights in risk assessments and identifies modern slavery risks, the entity could reference the ILO’s fundamental rights at work. Finally, the financial institution should disclose processes for mitigating risks related to ILO rights and provide 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.