ISDB

ISDB has a stewardship policy promoting environmental transitions and social best practices that align with its sustainability strategy. This policy outlines criteria for determining successful stewardship outcomes, establishes escalation procedures for when results are not achieved, and defines escalation conditions.

The financial institution discloses the amount and/or share (in monetary terms) of products, services, and capital provided to usually excluded groups as defined by the institution itself. The financial institution also provides details of its operations by country, such as the number of employees or revenue.

The institution has the opportunity to disclose its method for determining a living wage in its operational regions and to include anti-bribery and anti-corruption clauses in contracts. It is recommended that performance criteria for senior executive remuneration be linked to specific sustainability targets. ISDB has some information is disclosed regarding the monetary share of products and services related to fossil fuels, the scope should not be limited to certain fuels. A GHG accounting system has been developed, but there is no evidence of disclosed scope 1 and 2 emissions. Recommendations include monitoring scope 3 emissions by category and detailing the methodology for footprint calculations. The institution should establish a transition plan for its operations, supply chain, and portfolio, ensuring emissions reduction aligns with interim targets. It is recommended to disclose the breakdown of clients by income group and processes to avoid unintended divestment from low-income countries due to sustainability strategies. Projects for green Sukuk investment must comply with ILO standards, but it is unclear if the risk assessment process considers ILO fundamental rights. Recommendations include identifying social risks related to the net zero transition and providing examples of actions taken on 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.