Fair Trade & Ethical Sourcing

Interactive Brokers Group, Inc. operates as an automated global electronic broker, specializing in financial instruments.

Its business model does not involve the procurement or trading of physical commodities, nor does it have a supply chain or direct exposure to upstream labor practices relevant to fair trade and ethical sourcing. Therefore, all KPIs under this ethical value are not applicable to the company's operations.

Honest & Fair Business

The company has a whistleblower policy that explicitly states retaliation against whistleblowers will not be tolerated.

It includes procedures for the receipt, retention, and treatment of complaints regarding accounting, internal controls, or auditing matters, and mentions confidential, anonymous submission of concerns. A whistleblower hotline is also available. However, there is no evidence of independent investigation processes for these complaints. The company outlines specific prohibitions against bribery, improper payments, and gifts to customers, vendors, or government officials, and emphasizes the importance of disclosure. There is no information provided on the frequency or effectiveness metrics of anti-corruption training.

Kind to Animals

Interactive Brokers Group, Inc. operates as an automated global electronic broker, providing financial services. Its core business model does not involve products that require cruelty-free certification or animal testing, nor does it engage in animal husbandry, agriculture, or directly source animal products.

Therefore, KPIs related to these activities are not applicable to its operations. While the company's IMPACT app allows clients to screen out investments in companies involved in animal testing, this is a feature for client investment choices and not a policy governing IBKR's own operations. Evidence for wildlife conservation initiatives, such as rooftop bee programs and tree planting, lacks the measurable biodiversity impact or species recovery metrics required by the rubric, leading to its omission.

No War, No Weapons

Interactive Brokers LLC settled with OFAC for $11,832,136 for 12,367 apparent violations of multiple sanctions programs between July 2016 and January 2024.

These violations included providing brokerage and investment services to persons in Iran, Cuba, Syria, and Crimea, processing trades in Chinese military-industrial complex securities, and engaging in new investments in the Russian Federation. The violations, which constituted less than 0.0001% of total trading volume, were voluntarily self-disclosed, and remedial measures were implemented. The company states a commitment to complying with sanctions from the U.S. Treasury, UN, EU, and UK. Interactive Advisors, a service of IBKR, offers exclusionary lists for clients, including companies involved in weapons and gun manufacturing. The Impact Dashboard allows users to identify and flag companies engaging in practices they want to avoid, and to swap holdings for more sustainable alternatives. IBKR's corporate code enshrines a ban on any arms industry engagement, which is legally binding. The company's Environmental and Social Policy Statement was approved on June 16, 2023. Interactive Brokers Australia Pty Ltd (IBA) has a zero-tolerance policy for modern slavery and human trafficking, with mandatory training for staff involved in supplier selection and ongoing third-party risk management due diligence for local suppliers. No incidents of human rights breaches, slavery, or trafficking were reported in 2023 for IBA. The Vendor Code of Conduct requires vendors to comply with applicable legal requirements, including the UK Modern Slavery Act 2015, the UK Bribery Act 2010, and the US Foreign Corrupt Practices Act. Supplier performance is reviewed periodically, and all material suppliers complete a due diligence questionnaire confirming compliance with local laws and IBKR’s Vendor Code of Conduct.

Planet-Friendly Business

In 2023, Interactive Brokers sourced 63.9% of its energy from renewable sources.

The company has 37% of its offices LEED certified. Its waste diversion efforts include 88% of offices recycling. The company reported no material monetary losses associated with legal proceedings related to fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice, or other related legal proceedings in 2022. However, in 2023, it incurred $55 million in monetary losses due to an off-channel communications settlement, a violation of financial industry regulations. Interactive Brokers states alignment with the Task Force on Climate-Related Financial Disclosures (TCFD).

Safe & Smart Tech

Interactive Brokers reported a business email compromise (BEC) within the past three years, which resulted in unauthorized access to a limited amount of client personal information, including names.

This breach affected 600 clients. There was no evidence of misuse or unauthorized account access following the breach.

Zero Waste & Sustainable Products

Interactive Brokers has no specific regulatory actions, violations, fines, or compliance issues mentioned in the provided articles.

The company states that 88% of its offices recycle, segregating waste according to local guidelines, and it continuously works with building management on waste segregation initiatives. Recycling programs are in place in some locations for paper, plastic, electronics, and toner cartridges. The company is also phasing out paper and plastic in office pantries.