PGGM

The financial institution has a publicly available policy statement committing it to respect human rights and has one or more interim targets for the latest 2030 aligned with a 1.5C trajectory. It also discloses its operational details by country. However, no leading practices were identified for the financial institution with regard to Governance and stewardship and Financing Climate and Nature protection and restoration.

The financial institution commits to respecting the ILO’s fundamental rights at work but has the opportunity to formalise this in a policy document. While it identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Furthermore, the institution could link performance criteria for remuneration at the senior executive level to specific sustainability targets and disclose evidence detailing its engagement with clients and investees to influence and support them in developing nature protection and restoration strategy. Although it monitors scope 3 emissions beyond financed emissions, it could cover additional categories and provide a rationale for those excluded.

It is recommended that the 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 transition. It could also provide an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers.

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.