KLP

The institution publishes an engagement report on sustainability impact topics and has a publicly available policy requiring suppliers to respect ILO core labour rights. It maintains a gender balance of 40-60% at the senior executive level and assigns decision-making and oversight for its sustainability strategy to the highest governance body, while implementation responsibility is delegated to various functions, teams, or committees. The institution discloses the monetary amount or share of products, services, and capital linked to high-emitting and fossil fuel sectors, and transparently identifies key sectors, clients, and investees for engagement on climate issues. It also prioritises sectors with significant nature-related impacts and discloses the monetary amount or share of its provision linked to these priority areas. Engagement with clients and investees aims to influence strategies for nature protection and restoration. Additionally, the institution monitors its scope 1-2 emissions, discloses operations by country, and reports the monetary amount or share of products, services, and capital provided to low-income and lower-middle-income countries.

The financial institution has several opportunities to disclose how it determines a living wage for the regions where it operates. Additionally, it has the chance to disclose a publicly available policy statement that prohibits bribery and corruption. The institution states that it does not make political contributions, yet it could formalize this commitment in a public policy document. While the financial institution identifies material sustainability impacts across its value chain, it could provide more details about the process. This includes explaining how objective criteria and supportable evidence were used for the identification and prioritization of those impacts. It is recommended that the financial institution discloses that it links performance criteria for remuneration at the senior executive level to specific sustainability targets. The assessed entity claims that its green loans to municipalities contribute to climate change adaptation, but it could offer an example of how these loans supported the climate adaptation and resilience of society. It is recommended that the financial institution discloses the breakdown of its clients and/or beneficiaries by income group.

In terms of its risk assessment process, although it currently includes risks associated with some ILO fundamental rights related to its products, services, and capital, it has the opportunity to cover the full set of rights. It is also recommended that the financial institution discloses that it has a process for identifying the social risks associated with its products, services, and capital in relation to the net zero transition. Finally, it is recommended that the financial institution provides an example of the specific conclusions it has reached and the actions it has taken or plans to take in response to at least one of its significant human rights issues. This should be the result of assessment processes in at least one of its activities 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.