Itaú BBA & Global Academy Insper 1

Sustainable Finance

Corporativo | Interno June 2023

 Agenda
1. What is ESG?
2. ESG Financing & Cases
3. ESG Market Overview
4. Itaú at a glance
5. Itaú BBA’s Strategy
6. Quizz

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 Section 1

What is ESG?

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 What is ESG?

Introduction to ESG Concepts

“ESG” is not something particularly new – but it has
gained a lot of traction over the last few years, and it is
becoming clear that it will increasingly define the way
business is done going forward. ESG is a triad
representing criteria for sustainability measurement
and the positive impact arising from certain projects,
services, investments and initiatives.

In the past, ESG investments used to be exclusively the

focus of a very specific group of investors. Nowadays, • Climate Change • Human Rights • Stalkeholder relations
it is becoming more and more widespread and a basic • GHG Emissions • Workforce, training, • Executive board
practice all across the financial market. • Ecoeficiency diversity and inclusion payment policies
• Renewable Energy • Community relations • Ethics
• Waste Management • Customer welfare • Integrity
It is not surprising then that ESG is currently
considered one of the most relevant topics for
corporates, impacting all economic sectors and
corporate departments – a truly transversal agenda.

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 What is ESG?

A three-dimensional perspective

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 What is ESG?
Taxonomy & Market Drivers
The 2030 Agenda & Paris
Agreement
The evolution of international policy
ovemarkets to associate the
compliance with UN Sustainable
Development Goals (SDG) with ESG
bond issuances, increasing the allure
of this type of investment to investors
and issuers. Bonds with a climate
component, which also comply with
the Paris Agreement signed in 2015
and with the taxonomy developed by
r the past years has led capital Climate
Bond Initative.
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Ratings & ESG Index
ESG Ratings aim to measure
a company’s management of
financially relevant ESG risks
and opportunities (e.g MSCI
ESG Rating)
An ESG index is a group of
companies that meet certain
criteria for positive ESG
actions (e.g S&P 500 ESG
Index, Bloomberg Gender
Index, ISE – B3)
ICMA & LMA Anbima
The International Capital Anbima has developed
Market Associatioan and the different guides to help
Loan Market Association set managers and issuer to
out some voluntary understand the rules for
guideliness aiming to identifying sustainable funds
harmonize existing rules and and bond by gathering
set a standard for ESG examples and didactic cases
operations. as well as seeking to
consolidate the concepts of
sustainability on the Brazilian
capital market.
 Section 2

ESG Financing & Cases

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 Possible pathways for ESG financing
Use of Proceeds ESG -Linked Transition

Green Social Sustainability Sustainability-Linked Transition

Core Components Core Components Focus on the project, linked to

1. Defined use of proceeds 1. Selection of indicators (KPIs)
2. Clear process for evaluation and selection 2. Calibration of Sustainability
3. Transparent management of proceeds Performance Targets (SPT)
4. Annual reporting 3. Linking to the characteristics
of bonds, reporting and
verification
the use of proceeds, and on the
company’s process and long-
term strategy, adopting targets
and KPIs, in both cases, and
taking its climate change
strategy into account
.

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 Use of Proceeds
Proceeds from green, social and sustainability bonds should be exclusively applied to finance eligible new or existing green and social
projects, based on the four components of the International Capital Market Association.

▪ All designated categories should provide clear environmental and/or social benefits, which will be assessed
and, where feasible, quantified by the issuer

Use of Proceeds ▪ How proceeds will be used should be appropriately described in the legal documentation of the issuance.

▪ Eligible projects can include other related expenses, such as R&D, and be related to one or more
social/environmental categories and/or objectives

Process for Project ▪ The issuer of this kind of ESG Bond describe the decision-making process to be followed to determine the
eligibility of the projects.
Evaluation and
Selection
▪ The net proceeds of the bond should be credited to a sub-account, moved to a sub-portfolio or otherwise
tracked by the issuer (or a third party) and attested to by the issuer in a formal internal process linked to the
Management of project
Proceeds

▪ Issuers should make, and keep, readily available up-to-date information on the use of proceeds to be
Reporting renewed annually until full allocation, and on a timely basis in case of material developments

▪ The annual report should include a list of the projects to which bond proceeds have been allocated, as well
as a brief description of the projects and amounts allocated, and their expected impact

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 Eligible Categories for Green Bonds
Renewable energy
◼ Production
◼ Transmission
◼ Products
Low GHG emission
transportation
◼ Multi-modal transportation,
such as electric, hybrid, public,
rail, non-motorized,
infrastructure for clean energy
◼ Reduction of harmful emissions
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Energy efficiency
◼ New and refurbished buildings
◼ Energy storage
◼ District heating
◼ Smart Grids
◼ Appliances and products
Sustainable water and
wastewater management
◼ Sustainable infrastructure for
clean and/or drinking water
◼ Wastewater treatment
◼ Sustainable urban drainage
systems and river training
◼ Other forms of flooding
mitigation
Pollution prevention and
control
◼ Reduction of air emissions
◼ Greenhouse gas control
◼ Soil remediation
◼ Waste prevention
◼ Waste reduction
◼ Waste recycling
◼ Potential energy from waste
Climate change
adaptation
◼ Information support systems,
such as climate observation
and early warning systems
Environmentally sustainable
management of living
natural resources and land Terrestrial and aquatic
use biodiversity conservation
◼ Environmentally sustainable ◼ Protection of coastal, marine
agriculture, animal husbandry, and watershed environments
fishery, aquaculture, forestry
◼ Climate smart farm inputs
◼ Preservation or restoration of
natural landscapes
Eco-efficient and/or circular
economy adapted products,
production technologies and
processes Green buildings
◼ Development and introduction ◼ They must meet regionally,
of environmentally sustainable locally or internationally
products, with an eco-label or recognized standards or
environmental certification certifications
◼ Resource-efficient packaging
and distribution
 ESG Financing & Cases

Solinftec
Company profile

Solinftec was founded in 2007 in Araçatuba,

state of São Paulo, Brazil. The Company
provides digital agriculture services for SPO Provider: NINT
several sectors, including sugar and ethanol, Value: BRL 150MM (22) e 137MM (21)
grain, fiber and perennial crops, offering Product: CRA
solutions across 11 countries.
Categories:
▪ Renewable Energy & Energy
Label: Green Efficiency
▪ Pollution Prevention and control
Solinftec is the first operation focused on ▪ Environmentally sustainable
agricultural products and services in the management of living natural
world to receive the Climate Bonds Initiative resources and land use
certification. According to Solinftec, its tech ▪ Sustainable Water and Wastewater
platform has allowed its customers to avoid Management
▪ Climate change adaptation
over 680,000 tons of carbon dioxide
solutions
emissions over the past five years. The ▪ Eco-efficient and/or circular
benefit of this reduction is about the same as economy
planting 30 million trees or electrifying
700,000 cars each year.

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 Eligible Categories for Social Bonds
Eligible Projects

◼ Affordable basic infrastructure (drinking water,

wastewater service, sanitation, transportation and ◼ Affordable housing ◼ Food security
energy)

◼ Access to essential services (health education and ◼ Employment generation (including

◼ Socioeconomic advancement and
vocational training, healthcare, financing and financial through the potential effect of SME
empowerment
services) financing and microfinance)

Target population

◼ Vulnerable groups,
◼ Excluded and/or marginalized ◼ People with
◼ Living below the poverty line including as a result of
populations and /or communities disabilities
natural disasters

◼ Underserved, owing to a
lack of quality access to
◼ Migrants and /or displaced persons ◼ Undereducated ◼ Unemployed
essential goods and
services

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 ESG Financing & Cases

Itaú Unibanco
Label: Social

Itaú Unibanco has issued R$ 2 billion in social

instrument denominated in the local market to
support women's entrepreneurship in Brazil. Of SPO Provider: Sustainalytics
this total, R$ 1 billion has been raised with the Value: BRL 2.000MM
International Finance Corporation (IFC), and the Product: LF
second tranche of R$1 billion has been raised
with the market. Categories:
The operation, is connected to the Itaú Women ▪ Inclusive Finance
Entrepreneur Program, initiative conceived in
partnership with the IFC, which supports and
fosters the development of businesses led by
women through acceleration initiatives,
training, and networking programs.
The Program has already supported more than
28,000 women with business training to better
manage their enterprises. In 2021 and 2022, it
supported and developed projects aimed at
black female entrepreneurship, especially
concentrated in the North and Northeast
regions of the country, to evolve more than 2.7
million female enterprises to progress.

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 ESG Financing & Cases

Ambipar

Company profile
Ambipar is surely one of the most sustainable
companies in Brazil, having two major drivers: (i)
circular economy tech and services and (ii) SPO Provider: Sustainalytics
disasters mitigation and prevention. Its Value: BRL 1.000 MM
knowledge in disasters response is well known Product: Debenture
around the world, and Ambipar has operational
bases in almost every continent, even in Categories:
Antarctic.
▪ Renewable Energy & Energy
Efficiency
Label: Sustainable
▪ Clean Transportation
▪ Sustainable Water and Wastewater
Their business strategy is based on M&A
Management Waste Management
activities, and that is why Ambipar framework
and Resource Efficiency
was the first one in Brazil that considers
▪ Climate Change mitigation and
investments in ‘pure-play companies’ – i.e.,
adaption solutions
companies which more than 90% of its revenue
▪ Circular economy
is related to sustainable development, aligned
▪ Employment generation
with the ICMA’s Green Bond Principles eligible
categories. This structure is unprecedented in
Brazil, and it will allow Ambipar to keep
building a chain of green actions and,
consequently, contributing to a more
sustainable future.

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 Sustainability-Linked Bond Principles
Sustainability-linked bonds are any type of bond for which its structural characteristics can vary depending on whether the issuer achieves predefined
targets. They represent an explicit commitment (included in the bond documentation) to future improvements in sustainability outcomes of a company and,
different from the other bonds, their proceeds may be used for general purposes, hence this is not a determinant in its categorization.

◼ Sustainability targets are measured by KPIs, which should be:

̶ relevant and core to the issuer’s business and of high strategic significance to the company’s current and future operations
Selection of Key ̶ measurable and quantifiable based on a consistent methodology
Performance Indicators ̶ externally verifiable; and
(KPIs) ̶ able to be benchmarked

◼ The issuers should provide historical externally verified KPI values covering at least the previous three years

Calibration of ◼ The sustainability targets should be ambitious/aggressive and:

Sustainability ̶ represent a material improvement in the KPIs (beyond the “business as usual”)
Performance Targets ̶ where possible be compared to an external reference, a benchmark (science-based) or sector/industry standards
(SPT) ̶ be consistent with the issuers’ overall ESG strategy
̶ be determined on a predefined timeline

Characteristics of ◼ The cornerstone of a SLB is that certain characteristics can vary depending on whether the selected KPI achieves (or not) the predefined
Bonds SPTs
◼ The most used variation is the yield (rate step-up)

◼ Issuers should periodically make available (at least annually) and keep readily available up-to-date information on:
Reporting ̶ the performance of the KPIs
̶ the verification of the SPTs and the related impact on the characteristics of the bond
̶ any information enabling investors to monitor the level of ambition of the SPTs

◼ Issuers should seek independent and external verification of their performance level against each SPT for each KPI until the last SPT has
Verification been achieved
◼ Mandatory after the bond issuance

Framework To be in accordance with Anbima's ESG Guide, the framework publication is mandatory for all ESG-linked issuances. For loan operations, it will be evaluated on a
case-by-case basis.

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 ESG Financing & Cases

Telefônica

Company profile
Telefônica, owner of the Vivo brand, is the
largest telecommunications company in the
country, with a portfolio of convergent products SPO Provider: Bureau Veritas
and services to deliver the best possible Value: BRL 3.500 MM
experience to more than 100 million customers. Product: Debenture
Label: SLB KPIs:
▪ Reduce greenhouse gas emissions
Vivo has publicly positioned itself regarding ESG
by at least 40% (scope 1) by 2027
commitments, to keep promoting positive
compared to 2021.
impacts through its operation. To this,
▪ Achieve a value equal to or greater
Telefônica Brasil conducted a study to assess
than 30% of leadership positions by
the topics with the greatest potential for society
black people by 2027.
and with strategic importance for the company
▪ Achieve a value equal to or greater
in two dimensions, environmental and social.
than 40% of black people in the
The practical result of this journey has been the
workforce by 2027.
issuance of a framework that allows the
▪ Achieve 40% occupancy of
company to issue sustainability-linked bonds
executive leadership positions by
with 4 targets. women by 2027.
This has been the first framework in Brazil with
at least 3 sustainable targets regarding
diversity, and the biggest ESG issuance ever
made in the local market.

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 ESG Financing & Cases

Energisa

Company profile
Energisa, is a Brazil-based holding company
involved in the energy sector. Through its
subsidiaries, the Company is mainly engaged in SPO Provider: NINT
the distribution and marketing of electric Value: BRL 750 MM
energy. Product: Debenture
Label: SLB KPIs:
▪ Provide access to clean energy in
Energisa was the first company in the sector to
remote regions of the country,
issue a sustainability-linked bond in Brazil
specially in the Amazon region:
aligned with ICMA’s Sustainability-Linked Bond
reach 20.067 connections until 2026.
Principles 2020. The SLB is related to 2 main ESG
Baseline: 1.810 connections (2022).
commitments: (i) provide access to clean energy
in remote regions of the country, specially in the
▪ Increase the capacity of distributed
Amazon region and (ii) increase the capacity of
generation plants: reach 371 MWp
distributed generation plants. For distribution
until 2024. Baseline 59,8 MWp (2022)
companies, the priorities involve moving
forward with investment in expanding the grid
and furthering universal access. This includes
groundbreaking solutions to guarantee
uninterrupted energy supply to areas that are
not easily accessible and did not have
conventional distribution grids.

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 ESG Financing & Cases

Sovereign Sustainability-linked bonds

Republic of Chile Uruguay

Value: USD 2 BI Value: USD 1,5 BI
Settlement Date: March/2022 Maturity Date: March/2042 Settlement Date: Oct/2022 Maturity Date: Oct/2034
SPO Provider: Sustainalytics SPO Provider: Sustainalytics

KPIs: KPIs:
KPI 1) Absolute GHG Emissions KPI 1) Percentage change in aggregate GHG emissions per real
▪ SPT 1.1) Achieve annual GHG emissions of 95 MtCO2e by 2030 GDP unit from the baseline year
▪ SPT 1.2): A maximum GHG budget of 1,100 MtCO2e between ▪ SPT 1.1) Achieve a 50% reduction in GHG emissions per unit of real GDP
2020 and 2030 by 2025, SPT 1.2): Achieve a 52% reduction in GHG emissions per unit of
Baseline: 112.33 MtCO2e (2018) I Ambitiousness: Ambitious (<2º real GDP by 2025
scenario) Baseline: 1900 I Ambitiousness: Ambitious (<2º scenario)

KPI 2) Share of Non-Conventional Renewable Energy

KPI 2) Native forest area, % of maintenance with respect to
Generation in the National Electric System
baseline year
▪ SPT 2.1) Achieve 50% electricity generation derived from non-
▪ SPT 2.1) Maintain 100% of the Native Forest area by 2025 I Ambitious
conventional renewable sources by 2028
▪ SPT 2.2) Achieve a 3% increase in the Native Forest area by 2025 I
▪ SPT 2.2) Achieve 60% electricity generation derived from non-
Highly Ambitious
conventional renewable sources (NCRS) by 2032
Baseline: 2012
Baseline: 27% (2021) I Ambitiousness: Highly Ambitious (1,5º
scenario)
Bond Characteristics: step-up
Bond Characteristics: step-up
Report: annual basis for KPI 1 and every four years for KPI2. United Nations
Report: annual basis for for KPI 1 and every four years for KPI 2. Development Program (UNDP will provide an external verification of the
KPIs.

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 Transition Bond Principles
Proceeds from transition bonds should be exclusively applied to finance new or existing climate transition projects, based on the four components of the
Transition Bond Guidelines

Climate Transition ▪ The transition bond should finance programs that support the implementation of climate change strategies
Governance and Strategy
▪ The issuance should signal that the issuer will implement a corporate strategy to transform the business
model to address climate risks and to be aligned with the goals of the Paris Agreement

▪ The issuance should finance significant actions in the issuer’s business model, set to impact the core activity so
Business Model
that the business strategy will focus on actions aligned with the environment and with positive impact on
Environmental Materiality
society.

▪ The business plan should:

Present clear targets and
paths to be followed
(“science-based”)
▪ be quantitatively measurable
▪ use metrics and science-based approaches
▪ be publicly disclosed
▪ be subject to independent verification

Transparent ▪ The transition plan and the process follow-up should be reported in a clear and transparent manner through
reports that disclose qualitative and quantitative climate-related outcomes and intended impacts, as well as
implementation
the used processes.

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 Categories Eligible for Climate Transition Bonds

Eligible Projects

Energy Transportation Sector

▪ Cogeneration plants (gas-powered ▪ Gas-powered vessels ▪ Investments in energy efficiency in the

production of combined heat and production of cement, metals or glass,
power (CHP)) such as:
▪ Alternative fuel to airplanes

▪ Carbon capture and storage ▪ Reduction in the proportion

of clinker
▪ Gas transportation infrastructure that
may be used for lower carbon fuel ▪ Use of recycled raw-material

▪ Reduction in casting and

▪ Change from coal to gas fuel in defined higher recycling rates
geographical areas, setting
metrics/indicators to identify carbon
emissions avoided

▪ Electricity generation from waste

▪ Oil and gas industry transition to other

more renewable energy sources

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 Summary

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 ESG Bonds
ESG bonds have gained the spotlight in the international market, and Itaú BBA has been at the forefront of this movement, being present in the main Brazilian
issuances.

What are ESG ► Issuances that promotes environmental, social and corporate governance aspects linked to the Sustainable Development
issuances? Goals (SDG) established by the UN

What are the ► Access special financing lines and new investor pockets (with specific guidelines/mandates and less price sensitive)
benefits to ► Possible valuation increase by incorporating practices that reduce costs in the long run
issuers?
► Reputational benefits and anticipating a trend that comes to stay (adding value to the brand)

What are the ► Balancing financial results with sustainable benefits (especially for funds with specific mandates/targets)
benefits to ► Thorough and deep analysis of the company’s risks (positive and negative filter)
investros?
► Contribute to the sustainability of long-term results, both for investments in fixed income and equity

► Definition of a strategy that is adherent to the SDGs with public and measurable KPIs and goals
How does it
► Validation/Opinion by an external consultant - not mandatory, but recommended especially for the first issues
work?
► Annual and continuous reviews by publishing reports, which allow the monitoring of the achievement of the goals

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 ESG Bonds: Table of Comparison
Summary of possible ESG funding formats
Principles Core Components Requirements Eligible categories
▪ Renewable energy ▪ Low GHG emission transportation
▪ Energy efficiency ▪ Sustainable water management
▪ Pollution prevention and control ▪ Climate change adaptation
▪ Environmentally sustainable ▪ Eco-efficiency
1. Defined use of proceeds ▪ Total volume of funding or series must
management of living natural resources ▪ Green buildings
2. Clear process for evaluation and selection be equal to the total volume of projects ▪ Terrestrial and aquatic biodiversity
3. Transparent management of proceeds labelled as Green, Social or Sustainable conservation
4. Annual reporting ▪ The volume that will receive the
thematic labeling must be subject to ▪ Affordable basic infrastructure ▪ Socioeconomic
monitoring and an annual report must (drinking water, wastewater advancement/empowerment
be produced to disclose allocation of service, sanitation, transportation ▪ Access to essential services
and energy) ▪ Employment generation
proceeds
▪ Affordable housing
Key Recommendations: ▪ Food security + Definition of target population
1. Elaboration of a Framework
2. External Review ▪ Green + social categories

▪ The sustainability performance targets

1. Selection of indicators (KPIs) must be very ambitious/aggressive
2. Calibration of Sustainability Performance
Targets (SPT) ▪ Provide historical externally verified KPI ▪ Without limitation
3. Linking to the characteristics of bonds, values covering at least the previous 3
years
reporting and verification
▪ KPI base year must be audited by an
independent third party

▪ Issuer’s credible climate transition strategy

Focus on the project, linked to the use of and governance ▪ Energy
proceeds, and on the company’s process and ▪ Environmental materiality ▪ Transportation
long-term strategy, adopting targets and KPIs, ▪ Energy efficiency
▪ Science-based business plan with
in both cases, and taking its climate change
measurable targets
strategy into account
▪ Reporting and transparency
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 Section 3

Market Overview

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 ESG Issuances I International Market

ESG Market Overview ▪ Sustainable bond issuance saw a small year-on-year decline in 2022 for the first
(U$ MM) time since 2011. After a record breaking 2021 in which sustainable bond issuance
surpassed $1 trillion in the year for the first time ever, 2022 saw a slowdown amidst
1.200
wider market volatility with issuance reaching just over $880 billion.
1070
▪ Issuance was down for every label, including the sustainability-linked label which
1.000
882 saw its rapid growth slow significantly in the second half of the year. Credibility is
going to be key for SLB transactions. Green bonds remain by far the biggest label
745 at over $490 billion.
800
▪ Transition bond issuance remains low, however, there has been a huge shift in
600 geographical issuance, with Japan accounting for over 90% of transition issuance
in terms of value.

375 ▪ As investor appetite for sustainable bonds remains strong, Moody’s expects a 10%
400
increase in sustainable debt transactions in 2023, reaching R$ 950 billion in 2023.
230
150 200
200 ▪ As the sustainable bond market returns to growth, issuers and investors face
105 greenwashing concerns, new regulatory developments – and the prospect of
massive issuance as the net-zero transition accelerates.
-
2015 2016 2017 2018 2019 2020 2021 2022

Verde Social Sustentável SLB Transição

Source: Environmental Finance & Climate Bond Initiative

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 ESG Issuances I International Market

0,0 U$ Bn 20,0 40,0 60,0 80,0 100,0 120,0 140,0

Renewable Energy 130,4

Clean Transportation 88,8
Green Buildings 87,7

Use of proceeds Energy Efficency 72,8

breakdown of
Acess to essential services 59,1
Affordable housing 55,9
bonds issued in Socioeconomic advancement and empowerment 47,9
2022 by value. Sustainable water management 42,5
Employment generation & microfinance 30,3
Pollution prevention and control 29,7
Climate change adaptation 24,8
Affordable basic infrastructure 24,1
Sustainable management of living resources 22,9
Eco-efficent products 18,5
Biodiversity conservation 12,7
Food Security 5,9
Usos de Recursos Verdes
Covid-19 response 1,4 Usos de Recursos Sociais

Fonte: Environmental Finance

Não Corporativo
 ESG Issuance I Brazilian Companies
ESG issuances for Brazilian companies (local and international market) ESG issuances for Brazilian companies (local and international market)
(Volume R$MM) (#Number of issuances)
80.000 ▲ 300%
75.068
100
70.000 93
90
+160 millions
60.000
80

50.000 70
44.353 62
40.000 60

50
30.000
23.256 40
31
20.000
30
10.664
10.000 6.744 20 18
794 9
0 10 4
2017 2018 2019 2020 2021 2022 0
2017 2018 2019 2020 2021 2022
SLB Verde Transição Sustentável Social
SLB Verde Transição Sustentável Social

Source: Itau BBA, Dealogic, Bloomberg, Sitawi e Anbima

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 Section 4

Itaú at a glance

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ESG Strategy
Our strategic sustainability vision, launched in 2019 and
reviewed annually, is the result of an ongoing process of
identifying and assessing global risks and challenges for
Itaú Unibanco and our main stakeholders, with whom we
carry on a dialogue to identify and prioritize the most
relevant topics for business sustainability.

These topics are grouped into ten positive impact

commitments, aligned with the UN Sustainable
Development Goals (SDGs), and bring together over
50 short, medium and long-term goals, guiding the
management of ESG risks and opportunities and the
search for more sustainable performance and for
businesses that generate increasing positive impacts
on society and the environment.

know more_
about positive impact commitments in
our sustainability website.
Financing Positive Impact Sectors
We reviewed our “positive impact” classification, taking into consideration the concepts being
globally discussed by the European Union, the Climate Bonds Initiatives, the United Nations
(UN), the International Capital Markets Association (ICMA) and the Brazilian Federation of Banks health and education
(FEBRABAN) and selected six major positive impact industries for financing: institutions such as hospitals and
labs that improve public health
and quality of life, in addition to
educational institutions aimed at
increasing the qualifications and
employability of the population.

renewable energy energy services

energy that contributes to a cleaner
and lower negative impact of the
grid on the environment and society.
For example: solar, wind and small
hydroelectric plants.
services that reduce energy
costs, making this basic service
more accessible all over Brazil.

infrastructure works
projects that increase
economic development
through railway
transportation, sanitation
and solid waste.
pulp and paper
for its contribution to
mitigating climate change if
handled in a responsible way.

agribusiness
initiatives that promote good practices,
preservation of forest areas and investment
in productivity, ensuring the availability
of food, supporting the maintenance of
biodiversity, preservation of water resources
Learn more about our Strategy:
and carbon stock. ESG Report 2022
NetZero

To be the climate transition bank for our clients_

Disclose Invest in and Develop products Invest in
Invest in conservation 2050:
Disclose the targets and encourage the and services for
innovation and projects, become a
financial sectoral plans voluntary and customers
development via restoration and Net Zero for
emissions in line with regulated transitioning to a
Cubo ESG opportunities scopes 1,2
annually the NZBA carbon market carbon-neutral
in the Agro. and 3.
economy

We joined the Net Zero Banking Alliance in October 2021, committing to establish climate targets to be
achieved by 2030 and 2050 that are aligned with net zero.
 Section 5

Itaú BBA’s Strategy

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 ESG as a core
business
We were the first Brazilian bank to set
up a fully dedicated team to ESG
business opportunities, leveraging both
our financial and sustainability
expertise.
Our ESG business model is strategically
based on a collaborative approach.
Client engagement is at the core of our
what we do in our effort to develop
customized ESG products to meet each
financing need.
We apply ESG criteria to our entire range
of financial products. As long as there
are no conflicts between the ESG
eligibility criteria and the characteristics
of a financial product, a ESG label can be
added to the specific transaction
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ESG advisory services
Education
Customized training; ESG market
updates and overview of recent
issuances; ESG Newsletter and ESG
Market Color.
Financial ESG
Pre-issuance advisory Aspects criteria
In-depth company ESG analysis; support
to the development and/or assessment
of ESG projects, metrics and KPIs; ESG
framework drafting.
Advisory during the issuance
Funding strategy designed in
compliance with international ESG
standards and best practices;
established relationship with top
certifiers; technical support to
ESG-labelled transaction
discussions with certifiers including for
the selection of KPIs and identification of
ESG projects.
34
 Itaú has developed solutions to scale up the ESG market
We were the first Brazilian bank to set up a fully dedicated team to ESG business opportunities, leveraging both our financial and
sustainability expertise.

Our ESG business model is strategically

based on a collaborative approach. Client
engagement is at the core of what we do in
our effort to develop customized ESG
products to meet each financing need.

In 2021, Itaú BBA developed its own

methodology for ESG analysis, combining
risk and opportunity in a unique vision
(Snapshot ESG).

We apply ESG criteria to our entire range of

financial products. As long as there are no
conflicts between the ESG eligibility criteria
and the characteristics of a financial
product, a ESG label can be added to the
specific transaction.

35
Corporativo | Interno
 Quizz

Corporativo | Interno