Itaú Unibanco revisited its approach to addressing issues related to climate change and launched its positioning, which should guide the institution's actions from now on. The initiative incorporates a series of variables into the bank's business strategy, with the aim of stimulating the transition to a low-carbon economy. With this, it seeks to influence its value chain, covering customers and suppliers. It also includes the expansion, in its hubs and administrative units, of the use of energy from renewable sources.
“We understand the relevance that the topic of climate change has globally, in addition to its impact on society as a whole. As a financial institution, we have relationships with all productive sectors of the economy and, as such, we believe we have the potential to influence positive transformations in society and foster a low-carbon economy”, says Denise Hills, sustainability and inclusive business specialist at Itaú Unibanco. “The companies we finance and invest in will have to adapt to this new reality, and the financial sector will increasingly have to incorporate such issues into its analyzes of risks and opportunities.”
The new positioning – available here – brings transparency to the bank’s actions related to the climate finance agenda. Activities include assessing and considering risks and opportunities for customers, businesses and society in relation to climate change. Itaú is the first Brazilian bank to launch a position in line with the recommendations of the Financial Stability Board (FSB), through the TCFD document (“Task Force on Climate-related Financial Disclosures”). The positioning also connects with the goals of one of the Sustainable Development Goals (SDGs), number 13, which aims to take action against climate change.
According to the Itaú Unibanco specialist, “climate risk can impact the analysis of credit, operational, reputation and market risks of financial institutions”, says Denise.
The physical risks considered are related to changes in the rainwater system, extreme events or scarcity of natural resources that impact buildings, agencies and assets, as well as companies seeking to contract insurance, financing or investment with the bank. Transition risks are linked to regulations, such as carbon emission restrictions, pricing implementation, new technologies and/or changes in consumer behavior.
Pilot projects for photovoltaic plates and films
Over the last three years, investments in eco-efficiency and improvements in operations have generated positive impacts on Itaú's environmental performance. To give you an idea, in the period from 2014 to 2016 the bank reduced its water consumption by approximately 300 thousand m³ (17%), 86 thousand MWh in energy consumption (12%) and 34% in direct and indirect GHG emissions.
Currently, the bank is also engaged in investing in new technologies that seek to test sources of its own renewable energy generation within its operations. An example is the pilot projects for photovoltaic panels and films in some administrative buildings and agencies. It is also worth highlighting the investment to expand energy consumption from renewable sources for the branch network, through the distributed generation system. The idea is that the energy consumed by the agencies is acquired from generating units, located in locations other than the point of consumption. For administrative buildings, innovative initiatives are also being tested, such as the solar façade, a pioneering technology in South America that aims to use façades to generate energy, through a photovoltaic film that was recently implemented in one of the bank's buildings, located in the east zone of the city of São Paulo.
“Seeking a sustainable operation, we have already defined some long-term commitments. Our goals include the consumption of water, energy, emissions, waste and transport”, adds Denise.
Since 2008, Itaú Unibanco has quantified, third-party assurance and annually disclosed its greenhouse gas (GHG) emissions and works intensely to reduce them. In line with its commitment to mitigating the impact of its operations, the bank purchases more than 90% of the electrical energy used in its administrative buildings from clean energy sources, such as small hydroelectric plants (PCH), biomass or wind.
Business challenge
Another initiative adopted by the bank recently, within a sustainable development agenda, should soon reach the bank's customers. Between August and September this year, for four weeks, employees from more than 30 areas of Itaú Unibanco met for a 'challenge', with the aim of developing product and service pilots to contribute to environmental issues. The focus was on the energy, water and green infrastructure sectors, both for the wholesale and retail segments. In total, 40 ideas emerged, which will give rise to 10 new banking products and services. Some of these solutions should already be launched in the first half of 2019.
