OP Financial Group

The financial institution has a publicly available policy statement committing to respect ILO core labour rights and expects suppliers to do the same. It assigns responsibility for implementing the sustainability strategy to various functions, teams, or committees. The entity has a publicly available policy statement committing to respect human rights, as well as has disclosed a list of trade associations.

The financial institution transparently identifies nature-related impacts linked to its products, services, and capital, as well as key sectors, clients, and investees for engagement on these impacts. Furthermore, it engages in partnerships to influence and support these sectors, clients, and investees in addressing their nature-related impacts. Monitoring of scope 1-2 emissions and emissions from associated financing activities (Scope 3 category 15) is conducted, along with monitoring of other scope 3 categories. Finally, operational disclosures are made by country, including metrics such as the number of employees or revenue.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions. While the entity states that it does not support political parties, it could clarify its policy on political contributions. Some recommendations include disclosing third-party assurance for target reporting and linking senior executive remuneration to sustainability targets. Moreover, while the entity does not provide products or capital to certain fossil fuel projects, it does not address all fossil fuels.

The financial institution has sustainable financing targets but should specify the share allocated to climate mitigation solutions. It refers to nature-related impacts but should detail the process behind their identification and prioritisation. Although it offers products that support climate adaptation, it could be more intentional in its disclosure of its example of how its products and services contribute to climate adaptation and resilience of society. Recommendations also include establishing a transition plan for operations and emissions reduction in line with interim targets, as well as providing a breakdown of clients by income group, and avoiding unintended divestment from low-income countries due to unintended consequences of sustainability strategies.

While the financial institution conducts human rights risk assessments, it should disclose a risk assessment process related to ILO fundamental rights and for mitigating identified risks. Additionally, it is recommended that the entity should identify social risks linked to the net zero transition and provide examples of actions taken regarding salient human rights issues from recent assessments. Finally, the financial institution has the opportunity to transparently identify and prioritise its material sustainability impacts across its value chain based on objective criteria and/or supportable evidence.

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.