TD

The financial institution links performance criteria for remuneration at the senior executive level to specific sustainability targets and delegates the responsibility for implementing its sustainability strategy to designated functions or teams. It has a publicly available policy statement committing to respect human rights and discloses its membership in trade associations.

Moreover, the institution discloses the financing amount of its provision of products, services, and capital linked to high-emitting sectors and fossil fuel sectors. It also discloses the aggregate amount of financing devoted to specific mitigation-oriented climate solutions as well as nature-positive solutions and has time-bound and measurable targets for these solutions. Additionally, the institution transparently identifies key sectors, clients, and investees for climate engagement and nature-related impacts associated with its provision of products, services, and capital.

Besides, it also monitors its Scope 1-3 emissions and emissions from associated financing activities (Scope 3 category 15). It has one or more interim targets for latest 2030 aligned with a 1.5C trajectory, with emission reductions in line with these targets. It discloses the monetary amount or share of products, services, and capital provided to usually excluded groups and small and medium-sized enterprises.

The financial institution commits to respecting the ILO’s fundamental rights at work but could use stronger language to formalise the commitment. It expects suppliers to uphold specific workers’ rights but should reference all ILO rights. Besides, the institution could provide a publicly available policy statement against bribery and corruption and include such clauses in contracts with its business relationships. It also states that political contributions are made after approval from Corporate and Public Affairs or the Legal or Compliance Department depending on its operating region, but it could clarify if these are exceptional and the criteria for them.

While the institution identifies and prioritises material sustainability impacts, it has the opportunity to disclose the objective criteria and evidence used in its materiality analysis. Although it does not provide financing to certain fossil fuel projects or clients and investees undertaking such projects, it has the opportunity to cover all types of fossil fuels.

It is recommended that the institution disclose the breakdown of clients by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Also, 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. Additionally, 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.