Banco Bradesco

Banco Bradesco demonstrates leading practices in areas such as governance and stewardship. Not only does it assign decision-making and oversight responsibility for its sustainability strategy to its highest governance body, but it also assigns responsibility for implementing its sustainability strategy to functions, teams or committees. Additionally, it links performance criteria for remuneration at the senior executive level to specific sustainability targets. Stewardship-wise, it has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy and covers client and other stakeholder engagement as well as advocacy and partnerships. Moreover, it transparently identifies the key sectors, clients and investees to engage with on climate issues and engages in partnerships to influence and support sectors, clients and investees to act on their nature-related impacts.

Banco Bradesco performs fairly well in other areas as well, with some level of disclosures pertaining to its operational carbon footprint, financing activities and lobbying etc. It monitors its Scope 1-2 emissions and provides at least one example of how its products, services and capital supports the climate adaptation and resilience of society as well. It also discloses the amount and/or share (in monetary terms) products, services and capital provided to small-and medium-sized enterprises. In relation to lobbying, it specifies that it does not make political contributions and discloses its lobbying expenditures.

There is scope for Banco Bradesco to improve its disclosures in areas such as its impact materiality strategy, targets and plans, organisational carbon footprint and financing towards underrepresented groups and sectors and low and lower-middle income countries.

While Banco Bradesco identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Additionally. it could disclose third-party assurance or verification of target reporting. With regards to carbon footprint, Banco Bradesco monitors scope 3 emissions beyond financed emissions but could expand coverage and provide the rationale for excluded categories. It is recommended that Banco Bradesco discloses the breakdown of clients or beneficiaries by income group and clarifies the processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets.

Additionally, while Banco Bradesco expects suppliers to respect specific workers’ rights, it has the opportunity to reference all ILO fundamental rights at work. It can also consider disclosing how it determines a living wage in its operational regions and include anti-bribery and anti-corruption clauses in contracts.

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.