Resona Holdings

The financial institution has a publicly available policy statement committing to respect ILO core labour rights and expects suppliers to do the same. Decision-making and oversight responsibility for the sustainability strategy is assigned to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets while the implementation of the sustainability strategy is assigned to various functions, teams, or committees.

Furthermore, the institution discloses the monetary amount or share of products, services, and capital linked to high-emitting and fossil fuel sectors. Additionally, it monitors its scope 1-2 emissions and discloses the monetary amount of financial services provided to small and medium-sized enterprises, as well as its operational details by country.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions and to include anti-bribery and anti-corruption clauses in its contracts with business relationships. While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. It could disclose a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy.

Although the institution discloses that it does not provide products, services or capital to some fossil fuel projects or some clients and investees undertaking such projects, it does not refer to all fossil fuels. Furthermore, it has an opportunity to disclose that it has established a transition plan covering its own operations, supply chain and portfolio.

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.

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.