Isbank

In terms of governance, the financial institution assigns decision-making and oversight responsibility for the sustainability strategy to the highest governance body. Moreover, responsibility for implementing the sustainability strategy is assigned to various functions, teams, or committees and performance criteria for senior executive remuneration are linked to specific sustainability targets.

The financial institution discloses a list of trade associations of which is a member, along with specific actions taken to align lobbying and public policy engagement with the sustainability strategy. It discloses the monetary amount or share of products, services, and capital provided to women-owned businesses and to groups usually excluded, as defined by the institution. Additionally, the entity discloses operational details by country, such as the number of employees or revenue. Finally, the financial institution does not make political contributions and conducts third-party assurance or verification of its target reporting.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions. While it identifies material sustainability impacts across its value chain, further detail on the objective criteria and evidence used for prioritisation is needed. Although it has set future restrictions on financing coal, a time-bound strategy to phase out support for fossil fuel projects lacking alignment with a 1.5°C trajectory is recommended.

The financial institution has measurable targets for sustainable financing but could specify the share allocated to climate solutions. Moreover, while it discloses amounts dedicated to green finance, an aggregate amount for nature-positive solutions is also needed. While the entity conducts biodiversity risk assessments, it should transparently identify sectors and areas with significant nature-related impacts.

The financial institution provides products that support climate adaptation but could clarify its intentionality regarding the focus on adaptation and resilience for these examples. The entity discloses scope 1-2 emissions but it is recommended it details scope 2 emissions as market-based or location-based. Furthermore, although the financial institution monitors scope 3 emissions, specifying coverage by category is advisable. Other recommendations include disclosing client breakdowns by income group and processes to avoid negative impacts on low-income countries from unintended consequences of sustainability strategies. Additionally, providing examples of conclusions and actions taken regarding salient human rights issues from assessments in the last three years is suggested. Finally, it is recommended that the financial institution discloses a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy.

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.