Itaú Unibanco

"We recognize the crucial role that tropical forests play in countering climate change and we are convinced that the increase in deforestation in the Amazon is not conducive to the development of business and projects that are fundamental for Brazil. Given this scenario, in partnership with two other private banks (Bradesco and Santander), we launched an integrated plan with the aim of effectively contributing to the Amazon's sustainable development. Such plan includes 10 measures created from three fronts of action identified as priorities for the region: environmental conservation and development of bioeconomy; investment in sustainable infrastructure; and guaranteeing basic rights of the Amazon's region population. The plan was presented to the federal government and we are working in partnership with the other banks on detailing the next steps for each measure and in establishing the governance of the project, counting on expert advice that will assist in setting clear goals and objectives. On the same line, in July of this year we reiterated our commitment to the sustainable development agenda through a communique issued by the Brazilian business sector addressed to the Vice President of the Republic and the National Council for the Legal Amazon. In this document we have strengthened our commitment, emphasizing support for solutions focused on the following priorities: combatting illegal deforestation in the Amazon and in other Brazilian biomes; social and economic inclusion of local communities to ensure forest conservation; a minimal environmental footprint in the use of natural resources, valuing and preserving biodiversity; adoption of carbon credit trading mechanisms; channeling of financing and investments to a circular, low-carbon economy; and incentive packages conditional on a circular, low-carbon economy." "EcomudançaIta Ecomudança, of fixed income, has equity of R $ 245 million and allocates 30% of the management fee to environmental projects to reduce greenhouse gas emissions. The resources provided by Ecomudança funds supported programs on topics relevant to environmental preservation. The projects include recovery of native forests, replanting of native seedlings in degraded areas, reforms of forests in environmental reserves and reforestation and avoided deforestation. The selection of projects is carried out by a council formed by sustainability leaders from the private sector, society, academia and Itaú Asset Management."

"This Policy applies to Brazil and abroad, to every manager, employee and controller of Itaú UnibancoConglomerate’s and non-profit units linked to the Conglomerate in Brazil and any person with whom theConglomerate maintains commercial relations, including clients, partners, suppliers and other audiences [...] The following items are principles, guidelines and procedures guiding Itaú Unibanco Conglomerate to fight and prevent corruption: [...] Including, when applicable, anti-corruption clauses in client agreements."

"To formalize our commitment to sustainable development, we have a Sustainability and Environmental and Social Responsibility Policy. This policy is revised and approved by the Board of Directors on an annual basis [...] Seeking to highlight even more the relevance of the environmental and social issues, our Corporate Environmental and Social Risk Policy, approved by officers, is guided by the best environmental and social risk management practices, being continuously improved and ratifying our commitment to and concern about the topic."

"Clients involved in the activities listed above are identified based on media reports and through lists issued by official bodies. If a client has been proven to be involved in such activities, he/she is blocked in our systems and not allowed to begin any relationship with the bank. In 2018, 37 clients had their credit transactions blocked due to indications of engagement in activities of our Exclusion List. We only resume a credit relationship if the client successfully proves it has changed its labor practices and its name was excluded from the lists issued by official bodies [...] After meeting the fundamental criteria in connection with the list of excluded activities, clients are submitted to additional environmental and social assessment criteria, based on requirements specific for type of product, market segment, and guarantee structure proposed for each operation [including forestry and beef processing]. For credit-granting transactions collateralized by properties, whether rural or urban, a specific environmental and social diligence is required, aiming at identifying any environmental liabilities, such as indications of contamination, environmental preservation area, among others. This analysis is based on information on past and current activities performed on the property and on data on the surrounding areas to issue a technical report."

"We developed a methodologyable to distinguish credit risk associated to environmentaland social issues for clients of the same sector. The methodology is based on the drivers developed in the assessmentand other variables, such as management capacity and risksassociated to locating clients. The methodology is expectedto be applied in 2019 to a portfolio with at least 150 clients,totaling over R$22.8 billion.In 2018, we conducted 2,311 client analyses, including clients in the Restricted List." "In the process of socio-environmental risk analysis carried out for the granting and formalization of credit operations to legal entities, the practices exercised in the company's activity are verified, through surveys and a self-declaration questionnaire; if the client's involvement in practices considered by Itau to be prohibited is proven - use of labor analogous to slavery; use of child labor, in violation of legislation; and encouragement and / or exploitation of prostitution, including child abuse - the client is blocked in our systems, making it impossible to start any relationship with the bank.In 2019, 118 customers were blocked due to involvement in activities considered prohibited. In such cases, the unlocking is only carried out if it proves that it has made changes in its practices and obtains the exclusion of its name from the lists issued by official agencies."