Macquarie Group

The financial institution publishes an engagement report detailing the outcomes of its sustainability impact engagements and has a publicly available policy statement committing to respect ILO core labour rights and human rights. Decision-making and oversight for the sustainability strategy are assigned to the highest governance body, and performance criteria for senior executive remuneration are linked to specific sustainability targets.

The institution has a stewardship policy that encompasses client and stakeholder engagement, advocacy, and partnerships, including criteria for successful stewardship results, escalation routes for unsuccessful outcomes, and definitions for when escalations should occur. Furthermore, it has established time-bound and measurable targets for providing products, services, and capital for climate solutions. It also monitors its scope 1-2 emissions as well as emissions from associated financing activities (Scope 3 category 15).

The financial institution has a policy statement expecting suppliers to respect fundamental human rights as declared by the ILO, but it could strengthen its commitment. It has the opportunity to clarify how it determines a living wage in its operational regions. While it identifies material sustainability impacts across its value chain, further detail on the criteria and evidence used for prioritisation is needed. The stewardship policy supports environmental transitions and social best practices but could be better aligned with the sustainability strategy. Although it mentions nature protection and restoration, a strategy covering priority sectors is lacking. The institution provides products and services that could aid climate adaptation but should explicitly reference these provisions. It monitors scope 3 emissions beyond financed emissions but could include additional categories and rationale for exclusions.

A breakdown of clients by income group is recommended, as is disclosing operations by country rather than just by region. The risk assessment process should include risks related to ILO fundamental rights for those affected by its offerings.

Additionally, it should identify social risks linked to the net zero transition and provide examples of conclusions and actions taken regarding 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.