Vanguard is an investment management company, offering a broad selection of investments, advice, retirement services, and insights to individual investors, institutions, and financial professionals. Vanguard sets out in 1975 and is owned by its member funds, which in turn are owned by fund shareholders. As of Septmber 2022, it offered 412 funds worldwide.
Vanguard has an engagement policy where it describes its engagement approach on sustainability themes and impact topics with investees. It publishes case studies describing where it has engaged successfully with investees on sustainability themes and impact topics.
In terms of its approach to senior leadership accountability, Vanguard has an opportunity to assign responsibility for sustainability to the group’s highest governing body and link the remuneration of its executive andmanagement teams to sustainability performance criteria. It has an opportunity to make a public commitment to gender equality and women’s empowerment and disclose how it addresses any gender pay gaps. Furthermore, women are underrepresented on the board of directors where only three out of 11 board members are women. Vanguard has an opportunity to include clear frameworks with success criteria and escalation points in its engagement policy on sustainability and impact topics.
Vanguard could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. It has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. Furthermore, the asset manager could disclosethe amount of its investment devoted to climate solutions. Regarding nature and biodiversity, no evidence was found that the financial institution is committed to minimising its negative impacts or financing regenerative solutions.
There is no evidence that Vanguard has a publicly available policy statement committing it to respect human rights. It has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its investmentactivities. It also has an opportunity to establish a grievance mechanism accessible to all workers, external individuals and communities to raise human rights complaints or concerns. To provide transparency on financial inclusivity, the asset manager has an opportunity to disclose the amount of investment directed towards low-income developing countries.