Principal Financial

The institution publishes an engagement/stewardship report on sustainability impact topics and has a publicly available policy statement requiring suppliers to respect ILO core labour rights. It discloses quantitative information on worker health and safety, as well as its approach to lobbying and political engagement. Decision-making and oversight for the sustainability strategy are assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Responsibility for implementing the sustainability strategy is delegated to various functions, teams, or committees. A stewardship policy supports environmental transitions and social best practices, alongside a commitment to respect human rights. The institution also discloses its positions on sustainability in lobbying activities and the monetary amount of products, services, and capital allocated to nature-positive solutions.

The financial institution discloses statements committing it to respect the ILO’s fundamental rights at work. But it could improve by using stronger language to transform this into a formal commitment. The institution also has the opportunity to disclose how it calculates a living wage for the regions it operates in. When it comes to sustainability, although the financial institution identifies material sustainability impacts across its value chain, it could elaborate on the process. Specifically, it could clarify how objective criteria and supportable evidence were used for identifying and prioritizing those impacts. The financial institution presents evidence of a third-party assurance or verification, yet it’s not evident if all the targets are covered. It could also disclose a complete list of trade associations it belongs to. The financial institution has stated that its strategy is affected by climate-related risks and opportunities. It could go further by creating a time-bound strategy to gradually stop providing products, services, and capital to existing fossil fuel projects, clients, and investees in the fossil fuel value chain that lack a strategy in line with a 1.5°C trajectory.

Furthermore, it is recommended that the financial institution discloses that its risk assessment process includes risks related to the ILO fundamental rights at work for those affected by its products, services, and capital. It is recommended that the financial institution discloses that it has a process for identifying the social risks associated with its products, services, and capital in relation to the net zero transition. Finally, it is recommended that the financial institution provides an example of the specific conclusions it has reached and the actions it has taken or plans to take regarding at least one of its significant human rights issues, which result from assessment processes in at least one of its activities in the last three years.

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.