Banco do Brasil

The financial institution has a publicly available policy statement requiring suppliers to respect ILO core labour rights and commits to human rights. It does not make political contributions and maintains a gender balance of 40-60% at the senior executive level. Moreover, third-party assurance or verification is conducted for target reporting, and responsibility for implementing the sustainability strategy is assigned to specific functions, teams, or committees.

The financial institution discloses a list of trade associations, along with its scope 1-2 emissions and other scope 3 categories. The institution provides monetary disclosures regarding products, services, and capital allocated to women-owned businesses, usually excluded groups, and small- and medium-sized enterprises. Additionally, it discloses operational data by country, such as the number of employees or revenue.

The financial institution discloses statements committing to respect the ILO’s fundamental rights at work but could strengthen this commitment by using stronger language. It also has the opportunity to clarify how it determines a living wage in its operational regions. Moreover, the entity should require third-party lobbyists to comply with its lobbying policy and disclose specific actions taken to align its lobbying and public policy engagement with its sustainability strategy.

While the financial institution identifies material sustainability impacts across its value chain, further detail on the objective criteria and evidence used for prioritisation is needed. Moreover, linking senior executive remuneration to specific sustainability targets is recommended. The financial institution has a strategy to phase out products and services related to fossil fuels lacking a 1.5°C alignment but this does not cover all fossil fuels.

Moreover, its climate solution targets could be better defined in terms of time and measurability, and clarity on the share of sustainable loans, funds and investing dedicated to climate solutions is also suggested. Although the entity discloses funding for low-carbon agriculture, it should provide the aggregate amount dedicated to specified nature-positive solutions. Furthermore, coverage of financed emissions could be improved to include a larger amount of the portfolio, and a transition plan for its operations and supply chain is recommended.

Additionally, the financial institution should disclose a breakdown of clients by income group and processes to avoid negative impacts on low-income countries due to unintended sustainability consequences. The entity’s risk assessment process should include ILO rights risks, along with mitigation strategies. Finally, identifying social risks related to the net zero transition and providing examples of actions taken on salient human rights issues in the past three years is also recommended.

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.