LBBW

LBBW delegates responsibility for implementing its sustainability strategy to designated functions, teams, or committees within the organization.

The institution transparently identifies key sectors, clients, and investees for engagement on climate issues. Additionally, the institution monitors emissions resulting from its financing activities, specifically those under Scope 3, category 15. It has a publicly available policy statement committing to respect human rights.

LBBW’s material sustainability impacts are identified, however, further detail on the process and criteria used is needed. Recommendations include conducting third-party assurance of target reporting and linking senior executive remuneration to sustainability targets. There is no evidence of a stewardship policy supporting environmental transitions. LBBW states that the oil and gas sector constitutes about 1% of its corporate customer portfolio but lacks evidence of capital linked to all fossil fuel sectors. Although it has a strategy against financing projects that do not meet its fossil fuel framework, there is no time-bound plan to phase out all fossil fuel support. The institution discloses scope 1-2 emissions but could provide more detail on scope 2 emissions and specify scope 3 emissions coverage. Recommendations also include establishing a transition plan and ensuring emissions reduction aligns with interim targets. The institution has a publicly available policy statement expecting suppliers to adhere to ILO fundamental rights, the weak wording undermines this commitment. LBBW has not demonstrated a risk assessment process despite its commitment to the ILO and the UNDHR. Moreover, there is no evidence of a risk mitigation process or specific actions taken regarding salient human rights issues.

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.