US Bancorp

The financial institution outlines its approach to lobbying and political engagement in a policy statement, explicitly stating that it does not make political contributions. In terms of governance, decision-making and oversight of its sustainability strategy are assigned to the highest governance body, while senior executive remuneration is tied to specific sustainability performance targets. Furthermore, responsibility for implementing the sustainability strategy is delegated to designated functions, teams, or committees within the institution.

The financial institution has a publicly available policy committing to respect human rights and discloses its membership in trade associations. Finally, it also monitors its scope 1-2 emissions.

While the financial institution identifies material sustainability impacts it could provide more detail on its process for prioritising these impacts across its value chain using objective criteria. It is recommended that the institution disclose third-party assurance or verification of target reporting and commit to not using its lobbying power to create adverse sustainability impacts. While it reviews political activities to align with its climate change strategy, it could further specify actions taken to align lobbying with its sustainability strategy. Furthermore, the financial institution should require third-party lobbyists to comply with its lobbying and political engagement policy.

The financial institution has a measurable target for financing environmental initiatives but could specify the share devoted specifically to climate mitigation solutions as well as those devoted to nature-positive solutions. Additionally, it has the opportunity to assess its nature-related impacts associated with its products, services and capital. While it is in the process of assessing financed emissions, the entity should disclose these emissions values from associated financing activities (Scope 3 category 15). Although the entity monitors scope 3 emissions, it could cover additional categories and provide explanations for any exclusions.

The financial institution is further advised to disclose the breakdown of clients by income group and its processes to avoid divestment from low-income countries due to unintended consequences of sustainability strategies. Moreover, it has a Human Rights statement but should disclose a risk assessment process including risks associated with ILO fundamental rights and its mitigation processes. Finally, the financial institution should identify social risks related to the net zero transition and provide examples of actions taken on salient human rights issues from 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.