PFA

PFA has an engagement policy where it describes its approach on sustainability themes and impact topics with investees. In terms of its approach towards impact management, the financial institution acknowledges that its financing activities have both positive and negative impacts.

PFA discloses absolute financed emissions. It also has set a target of net-zero financed emissions by 2050. As a member of Climate Action 100+, the financial institution discloses that it collectively engages with its clients on the topic of climate change.

PFA discloses the proportion of women in its total direct operations workforce for each employee category. It also has a grievance mechanism accessible to all workers and external stakeholders to raise human rights, as well as bribery and corruption, concerns or complaints. Moreover, the financial institution has a policy prohibiting bribery and corruption, as well as a global tax strategy.

There is no evidence that PFA assigns responsibility for sustainability to the group’s highest governing body. Moreover, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. Women are underrepresented on the board of directors where only 4 out of 15 board members are women. There is no evidence that the financial institution has a public commitment to gender equality and women’s empowerment. The financial institution has an opportunity to reach at least 40% female representation in senior leadership positions; currently 31% of senior manager roles are held by women. Regarding engagement, PFA could disclose that its engagement approach includes clear frameworks with success criteria and escalation points.

While PFA discloses a target to reduce the carbon footprint of its listed shares, credit bonds and properties by 29% by 2026, it has an opportunity to disclose an interim target which covers all its financing activities. It could also disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on alignment with the Paris Agreement. There is no evidence that the financial institution discloses its financing activities devoted to climate solutions. Moreover, there is no evidence that the financial institution does not provide any form of financial service to any new fossil fuel projects or to a company undertaking new fossil fuel projects. Regarding nature and biodiversity, there is an opportunity for PFA to commit to minimising its negative impacts.

There is no evidence that PFA has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. Moreover, while the financial institution discloses the ages of its board members, it has an opportunity to disclose this information for each employee category. To provide transparency on financial inclusivity, the financial institution could disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.