Itau Unibanco

In terms of its approach towards impact management, Itau Unibanco acknowledges that its financing activities have both positive and negative impacts. Additionally, it has identified and prioritised its impacts through a materiality assessment process which included feedback from external stakeholders through the Principles for Responsible Banking (PRB) and has set targets for its prioritised impacts. The bank discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.

Itau Unibanco has set a target of net-zero financed emissions by 2050. The financial institution discloses absolute financed emissions and the underlying data quality and coverage of its financed emissions. The bank has disclosed the aggregate amount of finance it devotes to climate and sustainability bonds, which totals USD 500 million, of which USD 100 million (20%) goes towards green energy projects. Additionally, the bank discloses that its climate solutions are defined according to the International Capital Market Association (ICMA).

Itau Unibanco has a publicly available policy statement committing it to respect human rights as well as a statement committing it to respect the ILO core labour rights. Furthermore, the financial institution discloses categories of stakeholders whose human rights have been or may be affected by its activities. It also has a grievance mechanism accessible to all workers, external individuals and communities to raise human rights complaints or concerns. In addition, the bank discloses a global tax strategy and has a policy prohibiting bribery and corruption. Itau Unibanco discloses the amount of finance it directs towards female entrepreneurs as well as the amount of finance it directs towards small- and medium-sized enterprises (SMEs).

In terms of its approach to senior leadership accountability, while the financial institution’s board of directors supports the implementation of sustainability, Itau Unibanco could clarify whether the end responsibility for sustainability issues lies with this body. Furthermore, the financial institution has an opportunity to reach at least 40% women on the board. In terms of gender equality, the bank also has an opportunity to reach at least 40% female representation in senior leadership positions. Moreover, Itau Unibanco could describe its client and investor engagement approach on sustainability themes and impact topics across its financing activities.

Itau Unibanco discloses interim financed emissions reduction of by 50% by 2030. However, it could clarify as to whether this relates to group-wide financing activities. The bank also has an opportunity to disclose the key sectors and companies it has identified as priorities to engage with on climate change, specifically on the alignment with the Paris Agreement. Additionally, no evidence was found that the financial institution is committed to minimising the negative impacts it has on nature and biodiversity.

Itau Unibanco has an opportunity to describe a process for identifying its human rights risks and impacts across all its activities, especially its financing activities. The financial institution also has an opportunity to disclose the proportion of its total direct operations workforce for each employee category by age group and gender. Itau Unibanco could also disclose the amount of finance directed towards low-income developing countries. Additionally, the bank has an opportunity to disclose the proportion of its total direct operations workforce for each employee category by age group, gender or another indicator of diversity.