Bradesco maintained in 2007 its social and environmental commitments, focusing on the new global perception of climate change and the need to develop actions to mitigate and adapt to global warming. This is a strong trend which has consolidated in the entire financial segment. In addition to the concern of disseminating the sustainability concept among its employees, suppliers and commercial partners, the Bank aims at incorporating innovative management practices to its every-day activities. Thus, the Organization aligns environmental conservation and social responsibility with business opportunities, ensuring financial return.
Successful companies generate good results to the entire society, by adopting long-term policies with the purpose of promoting sustainable development and a better wealth distribution in Brazil, once they are an efficient instrument for progress, national integration and citizenship propagation.
This understanding is in accordance with the main international agreements and commitments adopted by our management: the Equator Principles (since September 2004), the Global Compact (November 2005) and the Millennium Development Goals. For further information on these initiatives, visit www.equator-principles.com (In English), www.pactoglobal.org.br and www.objetivosdomilenio.org.br.
At the end of 2007, the Organization took an unprecedented step – expanding the role of banks – by launching The Bank of the Planet. The initiative aims at unifying social-environmental actions, creating new products and services, and investing in a more harmonious interaction between people and the environment. More than ensuring the continuity of its business, Bradesco has decided to increase its operation in the market in order to contribute to the perpetuity of the planet itself.
Businesses And Climate Change
According to the concept of the Bank of the Planet, the risks inherent to climate change, as well as the search for new business opportunities, are constantly assessed. It is possible to attempt to measure the impacts of climate change in financial terms, by breaking down the Organization's revenue and assessing the location of clients, and by positioning businesses in more susceptible regions. It is also possible to measure the opportunities arising from a new awareness among people and inside the companies. However, a study carried out by the Organization states that currently this type of analysis offers more of a range of possibilities than actual rational certainties.
Generally, climate change might require the reorganization of economic activities, especially agribusiness, in a certain region. Depending on the severity of events, significant migrating effects might happen, as well as decrease in the number of inhabitants in affected areas, reduction of the population's income and change in touristic flows, among other consequences. The least structured a region is, the more intense will be the problems resulting from high population density of large towns, from the inequality between rich and poor people, and from a reduced economic dynamism.
Regarding the direct climate change impacts, the study shows a reduced risk in the Branch Network and in the revenue breakdown of the Organization, in view of the estimated time for the change in the planet's climate to start affecting Brazil in a more intensive manner. Except for coastal regions, which are more exposed to the increase in sea level, the remaining Brazilian territory may not be directly affected.
The decrease in opportunities in the rural area, the impoverishment of important layers of the population and the consequent migration to large cities may cause an increase in unemployment, which results in negative social effects such as increased violence and slum areas, as well as the strengthening of the informal economy.
In this situation, it is possible to notice a decrease in banks' customer loyalty, due to the strong competition, which has been increasingly concentrated in metropolitan regions. The importance of dealing better with customer profitability increases. These facts result in the need of a more flexible client registration file which can be easily updated, once a more intense people turnover expands business opportunities both in terms of resource volume and financing opportunities.
Amazon In Focus
By means of an innovative partnership with the government of Amazonas, announced in November, Bradesco became one of the co-founders of the newly-created Fundação Amazonas Sustentável (FAS), chaired by Mr. Luiz Fernando Furlan, former minister of Development, Industry and Commerce. The Organization will make an initial investment of R$20 million, and it has committed to onlend another R$50 million, within five years – R$10 million per year –, as a maintainer of the institution. The funds will be obtained from the sale of new products to be launched in the market, related to this initiative (credit cards, savings bonds, among others).
FAS's main challenge will be to preserve the 31 units of environmental conservation in Amazonas, which cover 17 million hectares and where 8.5 thousand families live, with proceeds from these initial investments (for the time being, R$20 million from the Amazon government and R$20 million from Bradesco). The funds' management is incumbent upon Bradesco Asset Management (BRAM).
The first action to be developed by the new partnership relates to the Bolsa Floresta program, an innovative idea in Brazil, created by the Amazonas government, in June 2007, as part of the Amazonas State Policy on Climate Change, Environmental Conservation and Sustainable Development.
Bolsa Floresta sets forth the payment to communities for environmental services and products, such as the sustainable use of natural resources, environmental conservation and protection, and the incentive to voluntary policies aimed at reducing deforestation in near areas. According to the state government, 4,000 families will benefit from an amount of R$600.00 per year. For 2008, the number of participants is expected to increase at least twofold – and the goal is to reach 60,000 families up to 2010.
Other programs already included in schedule are related to the local produce of sustainable products, aiming at benefiting families living in forest areas. The purpose of this initiative between the public and private sector is to search alternative ways to create jobs and generate income, contributing to the decrease in poverty - one of the indispensable factors to the environmental conservation.
Bali Agreement
The Bali Conference, held in Indonesia, represented a milestone in the Kyoto Protocol negotiations. With the challenge of defining the post-2012 period – the year when the first phase of the climate deal ends –, the 13th Conference of the Parties on Climate (COP-13), held in December, ended up with the adhesion of United States – the main country which was against the understanding.
The adhesion of the USA to the combat to global warming agenda will at least allow for the continuity of negotiations in 2008 and 2009, resulting in a new perspective and motivation to parties involved, even though the USA has not committed to adopt any goal for reducing greenhouse gas (GHG) emissions.
Significant progress was also made during the meeting with the inclusion of prevented deforestation in the goals of emissions reduction for the protocol's second phase period, after 2012. Until then, forest conservation, forest carbon inventory and prevented deforestation were not included in any agreement. Also, the parties included forest conservation in the carbon credit market and approved an international conservation fund.
After the decisions made in Bali, the forests gained more importance in the global scenario, as well as the developing countries, which have the largest forest areas in their territories. These countries played a significant role at the meeting by deciding to assume measurable commitments in the fight against global warming. In order to do so, they will count on financial resources, qualification and transfer of technology from developed countries.
Strategic Partners
Bradesco is a member of several representative entities, in the financial and social-environmental areas. Among them, the highlights are: Brazilian Federation of Banks (Febraban), National Federation of Banks (Fenaban), Brazilian Association of Publicly-Held Companies (Abrasca), National Federation of Private Insurance and Savings Bonds Companies (Fenaseg), National Federation of Pension Plans (Fenaprevi), National Health Federation (Fenasaúde), National Federation of Savings Bonds (Fenacap), National Insurance Federation (Fenseg), Private Insurance Superintendence (Susep), National Supplementary Health Agency (ANS), Brazilian Corporate Council for Sustainable Development (CEBDS), Ethos Institute of Companies and Social Responsibility, and Group of Institutes, Foundations and Companies (GIFE).
Global Compact
The Global Compact is an initiative of the United Nations (UN) aimed at promoting the alignment of corporate policies and practices in the areas of human rights, labor rights, environmental protection, and anti-corruption. By signing it, the Organization has committed to include these principles in its commercial strategy, culture, and operations, in addition to striving to promote and extend these principles to its scope of influence.
Bradesco's support to this initiative includes some examples, such as:
| HUMAN RIGHTS PRINCIPLES |
ACTIONS |
| 1. Respect and protect human rights. |
- Use of social-environmental criteria in granting credits.
- Part of Organização Bradesco's Human Resources Management Policy
- Background of banking inclusion, currently reaffirmed with Banco Postal and Bradesco Expresso.
- Adhesion to the OHSAS 18001 (occupational health and safety) and SA SA8000 (workplace conditions) standards.
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| 2. Prevent violations to human rights. |
- Use of social-environmental criteria in selecting suppliers and service providers.
- Part of Organização Bradesco's Human Resources Management Policy
- Commitment to the requirements of the SA8000 standard.
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| LABOR RIGHTS PRINCIPLES |
ACTIONS |
| 3. Support freedom of association and the right to collective bargaining. |
- All employees have a union representation, and are covered by collective bargaining agreements.
- Commitment to the requirements of the SA8000 standard.
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| 4. Abolish forced or compulsory labor. |
| 5. Eradicate child labor. |
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- Part of Organização Bradesco's Human Resources Management Policy
- This is a mandatory requirement to contract suppliers and service providers.
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| 6. Eliminate discrimination at the work place. |
- Part of Organização Bradesco's Human Resources Management Policy
- This is a mandatory requirement to contract suppliers and service providers.
- Commitment to the requirements of the SA8000 standard.
- Workgroup for the Valuation of Diversity.
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| ENVIRONMENTAL PROTECTION PRINCIPLES |
ACTIONS |
| 7. Adopt a preventive approach to environmental challenges. |
- Adoption of the Equator Principles.
- Adoption of social-environmental criteria in credit analysis.
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| 8. Promote environmental responsibility. |
- Offering of a series of social-environmental products.
- Certification based on the ISO 14001:2004 environmental management standard
- Support to the initiatives of Fundação Amazonas Sustentável (FAS)
- Support to the initiatives of Fundação SOS Mata Atlântica.
- Adoption of the Eco-Efficiency Program.
- Adoption of a program for the neutralization of carbon emissions.
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| 9. Promotion of technologies which do not harm the environment. |
- Massive use of recycled paper.
- Support to projects based on the Clean Development Mechanism.
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| ANTI-CORRUPTION PRINCIPLE |
ACTIONS |
| 10. Combat corruption in all its forms, including extortion and bribery. |
- Implementation of a specific program – and training employees – for the detection of and combat to money laundering and terrorist financing.
- Formalization of employee's conduct in a series of documents of the Organization, including the Code of Ethics.
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Millennium Development Goals
The Millennium Development Goals consist of eight global commitments signed by 191 countries members of the United Nations in 2000, involving sustainability and the improvement of the quality of life in the whole planet. Even though this initiative was signed by government representatives, its successful fulfillment depends on the civil society and, especially, the corporate sector.
Bradesco supports the global commitment to some of the initiatives, including:
| GOALS |
ACTIONS |
1. Eradicate extreme poverty and hunger
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- Background of banking inclusion, currently reaffirmed with Banco Postal and Bradesco Expresso.
- Systematic donations to NGOs and philanthropic institutions which deal with this matter.
- Adolescente Aprendiz and Jovem Cidadão programs.
- Fundação Bradesco's projects.
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2 .Achieve universal primary education
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- Investments in Fundação Bradesco.
- Support to the Ayrton Senna Institute.
- Combat to child labor (requirement of the SA8000 standard)
- Donation of 1% of taxes payable to Child and Adolescent Defense Funds.
- Support, through Fundação Bradesco, to the Todos Pela Educação commitment.
- Educa+Ação Project.
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3. Promote gender equality and empower women
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- Creation of the Workgroup for the Valuation of Diversity.
- Investment in the Finasa Esportes program.
- Increase in the number of women holding managerial positions in the Organization.
- Adaptation of the branches' structure to ensure accessibility to physically-impaired people.
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4. Reduce child mortality.
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- Investments in Fundação Bradesco.
- Support to Fundação Bradesco's Volunteering Action National Day.
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5. Improve maternal health
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- Offering health insurance to employees
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6. Combat HIV/Aids, malaria and other diseases.
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- Donations to institutions, associations and hospitals.
- Savings bonds whose resources support the Brazilian Institute for Cancer Control.
- Active participation in the Brazilian Corporate Council for HIV/Aids Prevention (CEN).
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7. Ensure environmental sustainability
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- Support to the initiatives of Fundação Amazonas Sustentável (FAS)
- Certification based on the ISO 14001:2004 environmental management standard
- Eco-Efficiency Program.
- Adhesion to the Equator Principles and to environmental criteria in granting credit.
- Incentive to the development of Clean Development Mechanism projects.
- Program for the neutralization of carbon emissions.
- Support to the initiatives of Fundação SOS Mata Atlântica.
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8. Develop a global partnership for development
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- Adoption of the Global Compact.
- •Digital inclusion programs.
- Dialogues and partnerships with several NGOs in order to improve sustainability management and to develop products.
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Collective Commitment
Since 2006, as a signatory investor of the Carbon Disclosure Project (CDP), Bradesco has committed to report on the measures adopted to control its emissions (direct and indirect) of greenhouse gases (such as CO2). It is a global project which joins corporate social responsibility, climate changes and financial market, counting on the involvement of the largest banks, insurance companies and pension funds. Created eight years ago by the British government, this global initiative currently has a group of 315 institutional investors, with total equity of US$41 trillion.
The CDP has developed its own methodology to assess information disclosed by companies of several sectors on climate change potential risks and opportunities, allowing for the creation of a comprehensive database. The requested information refers to four areas, namely: climate change risks: opportunities and strategy; GHG emissions accounting; GHG emissions management; and climate governance.
In 2007, Bradesco once again responded the annual questionnaire (CDP-5). One of the main goals was to improve the quality of the answers and standardize the presentation of information, so as to facilitate inter- or intra-sector comparisons. Bradesco's answers are available at www.bradesco.com.br/rsa/eng.
Technology as the basis
Information Technology (IT) is one of the pillars of the corporate and commercial strategies of Bradesco Organization. The Bank boosted the access to innovative services by concluding, in September, the construction of the building where the new Information Technology Center (CTI) is located, in Cidade de Deus. With a contemporary and bold architecture, the unit is one of the most advanced technological centers in the world, and has 10,000 square meters of built-up area. The complex, which took three years to be concluded and demanded investments of R$170 million, was planned to store different platform computers and the whole infrastructure to support systemic operations.
The construction of the new Information Technology Center is part of the actions carried out by the IT Improvement Project, whose purpose is to make Bradesco a world benchmark in technology applied to banking operations. Started in 2003 – and expected to be concluded in 2009 -, it currently involves 28 different initiatives.
Sustainable building
The following solutions were projected aiming at reducing energy consumption and other direct and indirect impacts to the environment were taken into account in the construction of the new Information Technology Center (CTI):
- use of reflective metallic coating over the main roof structure, reducing the effect of the solar rays and of the heat on the building;
- chilled water central with cutting-edge centrifugal chillers, equipped with linear capacity control and high thermal conversion factor;
- Use of cold and hot corridors in the air-conditioning distribution, and steam barrier in the walls, improving the efficiency of the installation;
- Micro-processed air conditioners, equipped with frequency variation devices, electronic flow, temperature and humidity control;
- High performance fluorescent lighting, with aluminum reflectors and electronic reactors;
- Cutting-edge UPS devices (high power factor) and long useful life batteries (20 years), made with fully-recyclable materials;
- Electric power limitation installed in the racks, distributing high consumption servers in larger areas, conserving the original distribution of the air-conditioning system;
- State-of-the-art building automation system, with specialized software for the detection of all infrastructure variables, optimizing the useful life and maintenance of equipment;
- Use of structure, façade and slabs made of prefabricated concrete elements with thermal treatment, reducing the use of exhaustible natural resources, and enhancing the thermal efficience;
- Adaptation of the construction quotas to the land profile, reducing the interference with existing underground springs, and avoiding moving soil;
- Partial conservation of the trees existing in the site, and replanting of new species in locations determined by the City Government of Osasco;
- Use of constructive methods with reduced noise and vibration levels, decreasing the impact on the environment;
- Use of emergency generators run on diesel, with electronic power control, low noise level, and low emission of pollutants;
- Reuse of storm water;
- Use of ecological gas R134A (which does not harm the Ozone Layer) in the ventilation system;
- Use of wires which do not propagate flames and have low gas emissions (LSOH).
Ethics In Businesses
Ethics plays a fundamental role in the process of strengthening and propagating the Organization’s sustainability culture. More than representing guidance for personal and professional conduct, to be used by all managers, employees, suppliers, service providers, controlling companies, subsidiaries and companies integrating the Bradesco group, the Corporate Code of Ethics sets forth our way to do business.
The Sector Code of Conduct, specific to the Accounting and Financial Management sectors, addresses topics such as prevention of conflicts of interest; compliance with applicable laws, rules and regulations; and disclosure of complete, appropriate, accurate, timely, fair and understandable information in reports and other documents presented to Regulators, investors, the market, and other public disclosures.
The Codes are managed by the Committee on Ethical Conduct, a statutory body of the Board of Directors. It is incumbent upon the Committee to propose actions to adhere to the best ethical practices of the market, receive and analyze suggestions, determine occasional changes, and propose awareness actions to propagate ethics in businesses. The Committee is also responsible for analyzing occasional noncompliance to the code and violations, as well as reporting the occurrences to the appropriate agencies for the adoption of the necessary measures.
Bradesco’s ethical management has been recognized in the market. According to Management & Excellence (M&E), a renowned Spanish company which rates banks in terms of sustainability, corporate governance, and corporate social responsibility, the Organization rates AAA+ in ethics. The rating is the same for sustainability, social responsibility, transparency and corporate governance.