Wellington Management

Wellington Management assigns responsibility for its sustainability strategy to various functions, teams, or committees. The institution publishes an engagement report detailing outcomes related to sustainability impact topics. It has a stewardship policy that supports environmental transitions and social best practices aligned with its sustainability strategy, encompassing client and stakeholder engagement, advocacy, and partnerships. This policy outlines criteria for successful stewardship results, escalation routes for unsuccessful outcomes, and defines when escalations should occur.

The institution discloses the monetary value of its products, services, and capital linked to priority sectors with significant negative impacts on nature. It monitors its scope 1-2 emissions and emissions from associated financing activities. Additionally, it provides operational disclosures by country, including metrics such as the number of employees or revenue.

Wellington Management discloses that individual portfolio managers to decide on materiality, but there is no evidence of a comprehensive materiality assessment. Recommendations include disclosing third-party assurance for target reporting and linking senior executive remuneration to sustainability targets. While a list of trade associations is disclosed, it is incomplete. The entity advocates for sustainable policies but lacks evidence of avoiding adverse impacts through lobbying. High-impact sectors account for 53.74% of invested corporate assets, though their identities are unclear.

Recommendations further suggest monitoring scope 3 categories, detailing footprint calculation methodologies and establishing a transition plan. The institution should also disclose processes to prevent divestment from low-income countries, include risks related to ILO fundamental rights in its risk assessment, and mitigate identified risks. Additionally, it should identify social risks linked to the net zero transition and provide examples of actions taken regarding salient human rights issues from assessments in the past 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.