Russell Investments

The financial institution publishes an engagement or stewardship report outlining the outcomes of its efforts on sustainability impact topics. Moreover, its stewardship policy encompasses client and stakeholder engagement, as well as advocacy, and partnerships. The policy also defines criteria for successful stewardship outcomes, outlines escalation routes for unsuccessful cases, and specifies when escalations should occur.

The financial institution also discloses its membership in trade associations and engages in partnerships to influence and support sectors, clients, and investees in addressing their nature-related impacts. Finally, the financial institution monitors its scope 1 and 2 emissions.

The financial institution has opportunities to disclose its methods for determining a living wage in its operational regions and to include anti-bribery and anti-corruption clauses in contracts. It is further recommended to disclose third-party assurance or verification of target reporting and to link senior executive remuneration performance criteria to sustainability targets.

In addition, the entity could outline how its stewardship policy (which supports environmental transitions and social best practices) is aligned with the sustainability strategy. While stakeholder engagement in lobbying and public policy is disclosed, further details on specific actions regarding aligning lobbying with their sustainability strategy are encouraged.

Regarding climate, the financial institution provides examples of engagement on climate resilience but could disclose how its offerings support societal climate adaptation and resilience. Furthermore, monitoring of scope 3 emissions beyond financed emissions should be specified and covered by category. Additional recommendations include disclosing a transition plan for its operations, supply chain, and portfolio, as well as a breakdown of clients by income group.

The financial institution should also disclose processes to avoid unintended divestment from low-income countries due to sustainability strategies. Furthermore, its risk assessment process should cover risks associated with the ILO fundamental rights, together with a mitigation process for identified risks. Lastly, an example of conclusions and actions taken regarding salient human rights issues from assessment processes in the last three years is recommended.

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.