Nordea

The financial institution has publicly available policy statements committing to respect ILO core labour rights and expecting suppliers to do the same. It specifies that it does not make political contributions. Additionally, oversight of the sustainability strategy is 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 discloses its financial involvement with high-emitting and fossil fuel sectors and refrains from providing products or services to new fossil fuel projects or clients involved in such projects. It has a time-bound strategy to phase out providing financial services to existing fossil fuel projects and clients and investees across the fossil fuel value chain, which lack a well-defined strategy aligned with a 1.5°C trajectory.

Furthermore, the institution has a strategy for the protection and restoration of nature covering at least its priority sectors and areas. It not only discloses the aggregate amount of its offerings dedicated to nature-positive solutions but also actively engages in partnerships to influence and support sectors, clients, and investees in addressing their nature-related impacts. Additionally, the institution monitors its Scope 1 and 2 emissions, as well as emissions from associated financing activities (Scope 3, category 15). It further outlines the processes used to identify specific human rights risks and impacts linked to its offerings.

While the financial institution identifies material sustainability impacts across its value chain, further details on the processes and criteria for prioritisation could be provided. It discloses some trade associations of which it is a member, however it is only referring to those groups focused specifically on sustainability matters.

The institution has established time-bound and measurable targets for its provision of products, services, and capital for “green” solutions but has the opportunity to specify the share devoted to climate solutions. While it references sectors and areas for nature-related impacts, transparency could be enhanced by detailing how these were identified and prioritized as having the highest impact in relation to its provision of products, services, and capital. Although the institution monitors Scope 3 emissions beyond financed emissions, it could expand coverage to additional categories and provide a rationale for those excluded.

It is recommended that the institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and disclose the breakdown of clients or beneficiaries by income group. It could also clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Additionally, the institution’s risk assessment process includes risks associated with ILO fundamental rights at work for some of those impacted by its provision of products, services and capital, but it could cover its full provision.

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.