Westpac

The financial institution has publicly available policy statements committing to respect ILO core labour rights and expecting suppliers to do the same. It has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. The policy also covers client and other stakeholder engagement as well as advocacy and partnerships. Furthermore, the institution discloses its membership in trade associations and actions taken to align lobbying and public policy engagement with its sustainability strategy.

The institution has a time-bound strategy to phase out financial services for existing fossil fuel projects, clients, and investees across the fossil fuel value chain that lack a well-defined strategy aligned with a 1.5°C trajectory. It transparently identifies key sectors, clients, and investees for climate engagement and provides examples of how its offerings support societal climate adaptation and resilience. Moreover, the institution monitors its Scope 1 and 2 emissions, along with emissions from associated financing activities (Scope 3, category 15). It also discloses, in monetary terms, the amount of products, services, and capital allocated to typically excluded groups.

The financial institution has an opportunity to disclose how it determines a living wage for the regions where it operates. It includes anti-bribery and anti-corruption clauses in contracts but lacks specified consequences for breaches. Political contributions require approval from the Group Head of Government and Industry Affairs; however, the institution could clarify if these are exceptional and outline the criteria for such decisions.

Although the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. While it restricts financing for certain fossil fuel projects or clients undertaking such projects, it could expand these restrictions to include all fossil fuels. The institution has established time-bound and measurable targets for its provision of products, services, and capital for “green” solutions but has the opportunity to specify the share devoted to climate solutions. Moreover, it could established a transition plan covering its own operations, supply chain and portfolio.

It is recommended that the institution disclose the breakdown of clients by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Furthermore, its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Additionally, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

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.