Incorporated in 1933, Wellington Management is an asset manager that provides investment management and investment advisory services to institutions around the world. It is headquartered in Boston, Massachusetts and has offices in Europe, Asia and Australia. Wellington Management has more than USD 1 trillion assets under management.
Wellington Management has a gender-balanced representation among its senior leadership roles where 40% are women and discloses numerous targets to increase the percentages of women for different employee categories. The financial institution has an engagement policy where it describes its approach on sustainability themes and impact topics with investees which includes a clear framework with success criteria and escalation points in the event that engagement with investees is unsuccessful. Furthermore, it publishes an engagement report describing how the engagement policy is applied in practice which includes case studies describing where it has engaged successfully with investees on sustainability themes and impact topics.
As a member of Net Zero Asset Managers Initiative, Wellington Management has set a target of net-zero financed emissions by 2050. The financial institution also discloses that alignment with the Paris Agreement is one of its engagement topics. As a member of Climate Action 100+, the financial institution discloses that it collectively engages with its investees on the topic of climate change. Furthermore, it discloses absolute financed emissions, including the underlying data quality and coverage. Through its membership in Farm Animal Investment Risk and Return (FAIRR), the financial institution collectively engages with investees on the topic of their nature- and biodiversity-related impacts.
Wellington Management has a grievance mechanism accessible to all workers to raise human rights complaints or concerns. The financial institution discloses the proportion of its total direct operations workforce for each employee category by gender and region. It also discloses a public commitment to protect personal data.
Wellington Management’s decision-making and oversight responsibility for a strategy on sustainability is assigned to the sustainable investments governance committee, made up of the chief executive officer and other members of the executive committee. However, the asset manager could clarify whether the end responsibility for sustainability sits with the highest governing body. In terms of its approach to senior leadership accountability, there is no evidence that the financial institution links the remuneration of its executive or management teams to sustainability performance criteria. It also has an opportunity to disclose the proportion of women in senior leadership roles as well as actions it takes in order to address any gender pay gaps.
Wellington Management could disclose interim emissions reduction targets at the group level, such as a 45% reduction in financed emissions by 2030. There is no evidence that the financial institution discloses key sectors or companies identified as priorities to engage with on climate issues. Furthermore, the asset manager has an opportunity to disclose its investment activities devoted to climate solutions. Regarding nature and biodiversity, no evidence was found that the financial institution is committed to minimising its negative impacts or investing in regenerative solutions.
Wellington Management has a publicly available policy statement committing it to respect human rights. However, it specifies that this commitment does not cover all its activities. The financial institution also has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its investment activities. To provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of investment directed towards low-income developing countries.