Itau Unibanco is a Brazilian bank that provides a range of financial products and services to individual and corporate clients. The bank operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market and Corporation. Itau Unibanco has over 31,000 service points throughout Brazil and approximately 20 other countries in which it operates.
Itau Unibanco’s vision is to be the leading bank in sustainable performance by integrating social and environmental initiatives into its corporate business practices. Itau Asset Management has adopted the Principles for Responsible Investment, and the bank is a signatory to the Equator Principles. Moreover, the bank has developed an internal social and environmental risk policy that formalizes its analysis process and guidelines for lending. In addition to reporting to the CDP Climate Change Program, the bank has normalized targets to reduce all of its key performance indicators and 2020 goals to reduce waste sent to landfill by 32% while sourcing 96% of its energy from renewable sources. Itau Unibanco has roughly 9,000 suppliers, all of whom have gone through a formal contracting process to ensure transparency and sustainability. Recently, 94% of the company’s supplier audits led to improvement action plans. The bank makes community investment an important objective too, contributing annually to education, health, culture, sports and urban mobility programs.
Itau Unibanco has been accused of failing to pay interest on customers’ deposit accounts and hiding its assets to avoid seizure. Additionally, six bank branches were closed recently due to a strike against abusive working conditions. Itau Unibanco does not have any women on its twelve-person board.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.