M&G 

The financial institution publishes an engagement report on sustainability impact topics and has a publicly available policy statement requiring suppliers to respect ILO core labour rights. It specifies that it does not make political contributions and maintains a gender balance of 40-60% at the senior executive level. Decision-making and oversight for the sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Implementation responsibility for the sustainability strategy is delegated to various functions, teams, or committees within the institution.

The institution has a stewardship policy that includes client and stakeholder engagement, advocacy, and partnerships. The policy outlines criteria for successful outcomes, escalation routes for unsuccessful engagements, and escalation conditions. It also has a publicly available policy statement committing to respect human rights. Additionally, the institution discloses the monetary amount of its products, services, and capital linked to high-emitting and fossil fuel sectors. It transparently identifies key sectors, clients, and investees for climate engagement and actively participates in partnerships to support clients and investees in addressing their nature-related impacts. Furthermore, it monitors Scope 1-2 emissions and emissions from associated financing activities (Scope 3, category 15).

The financial institution has a publicly available policy statement committing to respect specific workers’ rights but could reference all ILO fundamental rights at work. It could disclose how it determines a living wage for the regions where it operates. While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis.

The institution has a stewardship policy that supports environmental transitions and social best practices but could align it with its sustainability strategy. It discloses a list of sustainability-related trade associations of which it is a member but could provide a comprehensive list of its membership. Although it has a time-bound strategy to phase out support for specific fossil fuel projects, it could expand the strategy to encompass all fossil fuel projects to strengthen its commitment.

It is recommended that the financial institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Moreover, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition. It could also provide an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers.

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.