NatWest Group

The financial institution assigns decision-making and oversight responsibility for the sustainability strategy to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Additionally, implementation responsibility for the sustainability strategy is assigned to various functions, teams, or committees. The institution discloses its positions on lobbying and political engagement related to sustainability, as well as actions taken to align these activities with its sustainability strategy.

The institution engages in partnerships to influence sectors, clients, and investees on nature-related impacts, and provides at least one example of how its offerings support climate adaptation and resilience. It also discloses the monetary amount or share of products, services, and capital linked to high-emitting and fossil fuel sectors. In terms of monitoring emissions, this includes scope 1-2 emissions and associated financing activities (Scope 3 category 15), along with other scope 3 categories. Moreover, a transition plan covering operations, supply chain, and portfolio has been established.

The institution discloses the monetary amount or share of products, services, and capital provided to women-owned businesses and its operations by country, while demonstrating progress on non-living wage risks associated with its offerings. The institution identifies bribery and corruption risks through qualitative evidence and specifies that it does not make political contributions. It maintains a gender balance of 40-60% at the senior executive level and conducts third-party assurance or verification of target reporting.

The financial institution identifies material sustainability impacts across its value chain, but could provide more detail on the criteria and evidence used for their identification and prioritisation. The entity also has the opportunity to disclose a stewardship policy that aligns with its sustainability strategy. While it lists memberships of some trade associations and organizations focused on sustainability, it is unclear whether this represents a complete membership list. The entity engages in policy advocacy without making political contributions, but could clarify its commitment to avoid adverse sustainability impacts through its lobbying engagement. It has measurable targets for climate and sustainable financing but could specify the share allocated specifically to climate solutions.

The institution mentions sectors with high nature-related risks but could elaborate on their identification and prioritisation of sectors for nature-related impacts. It also has the opportunity to identify geographic areas for nature-related impacts and disclose a strategy for the protection and restoration of nature covering these priority sectors and areas. Although it includes nature-positive solutions in its financing criteria, it could disclose the monetary share of these solutions. Other recommendations include disclosing client breakdowns by income group, processes to avoid divestment from low-income countries, and ensuring its risk assessment covers ILO fundamental rights for those impacted by products, services and capital. Additionally, it should identify social risks related to the net zero transition and provide examples of actions taken on salient human rights issues from recent assessments.

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.