Itau Unibanco Holding

In terms of governance, the financial institution links senior executive remuneration to specific sustainability targets, as well as assigns responsibility for the sustainability strategy to various functions, teams, or committees. It discloses a list of trade associations it is a member of and states that it does not make political contributions.

Furthermore, the financial institution has publicly available policy statements committing to respect ILO core labour rights and expecting suppliers to do the same. It outlines its process for assessing human rights risks and identifies salient human rights issues.

The financial institution identifies key sectors, clients, and investees for climate engagement and provides details on the monetary value of products, services, and capital linked to high-emitting and fossil fuel sectors. Moreover, the entity monitors its scope 1-2 emissions, as well as emissions from associated financing activities (Scope 3 category 15). It also discloses the monetary value of products, services, and capital provided to women-owned businesses and small- and medium-sized enterprises, along with operational data by country, such as employee numbers or revenue.

The financial institution identifies material sustainability impacts across its value chain but could enhance its disclosure regarding the processes and criteria used for their identification and prioritisation. Furthermore, it is recommended that the entity discloses third-party assurance or verification of target reporting.

The financial institution has an opportunity to present a group-level stewardship policy that aligns with its sustainability strategy. Although guidelines on government and institutional relations are disclosed, a commitment to refrain from using lobbying power to create adverse sustainability impacts is suggested. While engagement with policymakers on sustainability topics is noted, further details on specific actions are encouraged.

The financial institution has a time-bound target for financing sustainable development projects, but could disclose the share allocated to climate solutions. While it provides a monetary amount for a partnership that it engages with on forest restoration, it should disclose the total amount/share of products, services and capital for nature-positive solutions.

Other recommendations include disclosing the breakdown of clients by income group, processes to avoid divestment from low-income countries due to unintended sustainability strategy consequences, and risk assessment processes related to the ILO fundamental rights of work. Additionally, the financial institution should disclose mitigation processes for these identified risks and social risks associated with the net zero transition. Finally, providing an example of actions taken regarding salient human rights issues from assessment processes in the last three years is 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.