KeyCorp

In terms of governance, the financial institution assigns decision-making and oversight responsibility for its sustainability strategy to its highest governance body. Moreover, implementation responsibility for their sustainability strategy is delegated to various functions, teams, or committees. The financial institution also discloses a stewardship policy which supports environmental transitions and social best practices, as well as covers client and stakeholder engagement, advocacy, and partnerships. Additionally, a full list of trade associations is disclosed by the entity.

The financial institution also reveals the monetary amount or share of products, services, and capital linked to high-emitting and fossil fuel sectors, alongside time-bound and measurable targets for climate mitigation solutions. The financial institution makes progress in line with these targets.

In addition, the financial institution monitors its scope 1-2 emissions, as well as other scope 3 categories by type. Finally, the entity discloses the monetary amount or share of products, services, and capital provided to small- and medium-sized enterprises.

The financial institution commits to respecting the ILO’s fundamental rights at work but could strengthen its statements into a formal policy. It expects suppliers to uphold specific workers’ rights but could reference all ILO fundamental rights. Moreover, there is an opportunity to disclose how a living wage is determined in its operational regions. While it prohibits bribery and corruption in supplier relationships, clarification on the review or termination process for breaches is recommended.

Other recommendations include disclosing third-party assurance for target reporting, linking senior executive remuneration to sustainability targets, and providing annual values and a methodology for its financed emissions. Furthermore, transparency in the footprint calculation methodology and the establishment of a transition plan for operations, supply chain, and portfolio is advised.

The financial institution further has the opportunity to disclose a breakdown of clients by income group and processes to avoid divestment from low-income countries due to unintended consequences of sustainability strategies. Moreover, the entity’s risk assessment process should include risks associated with the ILO fundamental rights, along with a mitigation process for identified risks. Finally, the financial institution should identify social risks related to the net zero transition and provide examples of conclusions and actions taken regarding salient human rights issues from assessments 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.