Wells Fargo

The financial institution discloses its approach to lobbying and political engagement through a policy statement and reports its lobbying expenditures. It requires third-party lobbyists to adhere to its lobbying and political engagement policy and conducts third-party assurance or verification of target reporting.

In terms of governance, decision-making and oversight for the sustainability strategy are assigned to the highest governance body, while implementation responsibilities are delegated to various functions, teams, or committees. Moreover, the financial institution discloses a publicly available policy statement which commits to respecting human rights, and a list of trade associations is disclosed. Specific actions taken to align lobbying and public policy engagement with the sustainability strategy are also reported. The institution monitors its scope 1-2 emissions and other scope 3 categories by category. It discloses the monetary amounts or shares of products, services, and capital provided to women-owned businesses, usually excluded groups as defined by the institution, and small- and medium-sized enterprises.

In terms of governance, the financial institution should identify its material sustainability impacts across its value chain and detail the objective criteria used for their prioritisation. Moreover, linking senior executive remuneration to specific sustainability targets is recommended, along with a commitment to ensure lobbying efforts do not adversely affect sustainability. It is also recommended that the financial institution discloses a stewardship policy that support environmental transitions and social best practices in line with its sustainability strategy.

While the financial institution has measurable targets for sustainable finance, specifying the share allocated to climate mitigation solutions is encouraged. It should also disclose the total amount of products and services dedicated to nature-positive solutions and provide examples of how its offerings support climate adaptation and resilience.

Further recommendations include disclosing client breakdowns by income group, processes to avoid divestment from low-income countries, and risk assessments related to ILO fundamental rights. Additionally, it should outline its approach to mitigating identified risks and identifying social risks linked to the net zero transition. The financial institution also has the opportunity to disclose its methodology for determining a living wage in its operational regions and to provide a publicly available policy statement clarifying its stance on political contributions. Finally, providing an example of actions taken regarding salient human rights issues from recent assessments is advised.

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.