KB Financial Group

The financial institution has a publicly available policy statement committing to respect human rights and ILO core labour rights and expects suppliers to respect the ILO core labour rights. It further discloses the results of its human rights risk assessments and specifies that it does not make political contributions.

The financial institution conducts third-party assurance or verification of their target reporting. Also, it assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body with implementation responsibility assigned to various functions, teams, or committees.

Additionally, the financial institution monitors emissions from associated financing activities (scope 3 category 15) as well as other scope 3 categories. It discloses the monetary amount or share of products, services, and capital provided to usually excluded groups and to small- and medium-sized enterprises.

The financial institution has opportunities to enhance transparency and sustainability practices. It could disclose its method for determining a living wage in its operational regions. Although it includes anti-bribery and anti-corruption clauses in contracts, it lacks specified consequences for breaches. While the institution identifies material sustainability impacts across its value chain, it could provide more detail on the criteria and evidence used for prioritization. Linking senior executive remuneration to specific sustainability targets is also recommended.

The financial institution lists some sustainability-focused trade associations but does not cover all associations it is part of. While it discloses that it does not provide products or services to certain fossil fuel projects, it does not address all fossil fuel activities. It reports scope 1-2 emissions but could clarify whether scope 2 emissions are reported on a market-based or location-based method.

Additional recommendations include disclosing the breakdown of clients by income group and outlining processes to prevent divestment from low-income countries due to sustainability strategies. It could also clarify its risk assessment process regarding ILO fundamental rights and the strategies for mitigating these risks. Moreover, it is advised to identify social risks associated with the net-zero transition and provide examples of actions taken on salient human rights issues of its products, services and capital in 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.