National Bank of Canada

The financial institution has a publicly available policy statement committing to respect ILO core labour rights and expects suppliers to do the same. It specifies that it does not make political contributions. Furthermore, decision-making and oversight of the sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to sustainability targets. It delegates the responsibility for implementing its sustainability strategy to specific functions or teams within the institution.

The institution has a stewardship policy that covers client and stakeholder engagement, advocacy, and partnerships, alongside a publicly available policy statement committing to respect human rights. It actively monitors Scope 1-3 emissions, including those from associated financing activities (Scope 3, category 15). Furthermore, the institution has set interim targets for the latest 2030, aligned with a 1.5°C trajectory, and transparently discloses the monetary amount of financial services provided to women-owned businesses.

The financial institution has an opportunity to disclose how it determines a living wage for the regions where it operates. While it identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Although the institution restricts financing for certain fossil fuel projects or clients and investees undertaking such projects, it could extend these restrictions to encompass all types of fossil fuels

Additionally, the institution discloses its intention to phase out financing activities for existing fossil fuel projects and clients across the fossil fuel value chain lacking a 1.5°C-aligned strategy but could further strengthen this by presenting a time-bound strategy for achieving this goal. Furthermore, while it acknowledges the importance of nature protection and restoration, the institution has the opportunity to disclose a strategy for this area covering at least its priority sectors and areas.

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 transitions.

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.