Annual Sustainability Report
2010
Table of Contents
5. Introduction
92. Relationships
94. Employees
100. Clients
112. Stockholders
113. Suppliers
116. Government
14. Results of the main challenges taken on in 2010
117. Media and public relations
18. Profile of the organization
119. Environment
22. Main financial indicators
128. Social and cultural investments
24. Operations in Brazil and abroad
130. Fundação Itaú Social
26. Outlook and strategies
134. Instituto Unibanco
136. Instituto Itaú Cultural
8. M
essage from the Chairman of the Board
10. Message from the CEO
12. 2010 Highlights
30. Vision of sustainability
34. Corporate governance
138. Awards and recognitions
36. Governance structures
140. Appendices
42. Accountability
43. Risk management
52. Crisis management
148. Itaú Unibanco Assurance Statement
53. Ethics management
54. Business
57. Commercial banking
76. Itaú BBA
81. Consumer credit
84. Insurance, private pension and capitalization
90. Business abroad
2
Summary
2
140. Global Reporting Initiative
(GRI) Cross Index
151. Independent Auditor’s Limited Assurance
153. GRI Application Level Check
154. Editorial Team
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
3
4
4
Introduction
Working
Accumsan eget
together
fringillafor
itaú
sustainability
Itaú Unibanco Holding S.A. publishes its Annual
Sustainability Report in accordance with the guidelines of
the Global Reporting Initiative (GRI) and Associação Brasileira
das Companhias Abertas (Brazilian Association of Publiclyheld Companies). This includes relating its economic, social
and environmental performance to the 10 principles of the
Global Compact, an initiative of the United Nations (UN) to
disseminate corporate responsibility. (Profile 3.3 and 4.12)
In accordance with the indicators and the other relevant
information, this report is self-declared as application level A+. To
be included at this level, it is necessary to identify which elements
of the GRI G3 Guidelines structure were applied in determining the
content of the report and to present the forms of management
of relevant aspects of sustainability. It is also necessary to show
performance by means of indicators identified as relevant for the
organization and its stakeholders, including the indicators of the
financial services sector supplement. (See Appendix 1 for details
of the GRI indicators and Appendix 4 for the certification of Itaú
Unibanco’s GRI status.) The information provided in the Annual
Sustainability Report was subject to assurance by the audit firm
PricewaterhouseCoopers, as shown in Appendix 3. (See Appendix 2
for Itaú Unibanco’s own assurance statement.) (Profile 3.13)
5
5
Presentation
The information on performance consolidates the
operations of the whole organization in Brazil and abroad
and refers to the period from January 1 to December 31,
2010. (Profile 3.1, 3.6 and 3.8) The limitation provided for
in the GRI guidelines – Definition of Content, Quality and
Scope of the Report will be complied with within five years
to include all the organizations that are subject to the
control or significant influence of Itaú Unibanco Holding
S.A. (Profile 3.7)
Among the most important factors in the quality of a
sustainability report are the inclusion of stakeholders
and relevance, that is, the prioritization of essential
topics and subjects for conducting business from the
point of view of the company itself and society. Among
the main stakeholders of the company are the clients,
employees, stockholders, suppliers, government and
media. (Profile 4.14)
The Annual Sustainability Report of Itaú Unibanco
Holding S.A. was based on certain important
procedures to meet these conditions. The Essência da
Sustentabilidade (Sustainability Essence) prepared at
the end of 2008 formalized the eight main challenges
for the organization’s sustainable operation and was
used as a reference in the selection of this report’s
content. The Essence is the result of a first reflection,
which involved consultations with specialists and
employees, as well as an analysis of benchmarks
from the financial sector. In addition to this guiding
document, interviews with the company’s employees
were also held. Accordingly, the content of this
publication presents the evolution of the practices
described in the previous report (2009) and makes
projections for 2011. (Profiles 3.2, 3.5, and 4.15)
6
Presentation
6
24
The 2010 Itaú Unibanco Holding S.A. Annual
Sustainability Report is the result of the coordinated
efforts of hundreds of people, who provided
information and indicators of the bank’s performance
during the year. It reflects a process of continuous
improvement and strengthening of sustainability
practices, and, therefore, all comments, criticisms and
suggestions are extremely important and should be
sent to [email protected]
com.br. (See Appendix 5 for details of the report’s
editorial team.) (Profile 3.4)
In addition to this printed version, Itaú Unibanco
has made available an online report with additional
content at http://www.itauunibanco.com.br/
relatoriodesustentabilidade/.
Transparency and accountability to society are
important to maintaining the trust of all of our
stakeholders. For this reason, the sustainability
report is published on an annual basis, and always
contains a complete analysis of the targets set for
each area in the previous report. (Profile 3.3) Our
responses to the GRI indicators are presented in the
table on page 140. (Profile 3.12)
Nosso Jeito de
Fazer, a set of
10 attitudes
and values that
guide all our
relationships.
This is the
language we
want to speak both inside
and outside
the house.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
7
Message from the Chairman of the Board
What was a well-founded hope a year ago, when I wrote my message
a high growth level and its strong connections with Latin America
for Itaú Unibanco’s last annual report, is now an unquestionable fact:
created a favorable environment for commodities, the prices of
Brazil has easily overcome the global economic crisis, which many
which increased significantly and improved the terms of trade. In
described as a great depression. In addition having come through
2011, although the economic outlook indicates stability, we will have
the crisis without major surprises, Brazil was one of the first nations to
at least one major challenge in Brazil: Brazil’s inflation reached 5.9%
regain stability after the severe turmoil in the international markets.
and it will be necessary to bring it down to the center of the target
And this was only possible because, for the past two decades, Brazilian
of 4.5% to avoid losses in the population’s purchasing power. An
political stability has existed side by side with economic stability.
appropriate combination of monetary and fiscal policies would help
minimize the costs of this transition.
The year 2010 was characterized by elections and another
democratic transition – a transition that represented the final chapter
For Itaú Unibanco, 2010 was a year characterized by the completion,
of a fortunate historical cycle, during which we had two presidents
ahead of the expected deadline, of the integration of the brands,
with strong institutional commitment. Fernando Henrique Cardoso
systems and branch network operations of the banks that now
faced difficult times, but he knew how to lead Brazil towards the
form the new institution. This was the last stage of the merger
much desired economic stability, by means of a bold and in-depth
process between Itaú and Unibanco, which, therefore, was officially
program of reforms. He received one country, and delivered another.
completed. A little more than two years after November 3, 2008, a
Luiz Inácio Lula da Silva succeeded him and had the unquestionable
date when the history of the financial markets in Brazil was changed
merit of preserving, above partisan issues, the fundamentals of our
forever, I am happy to see on how many fronts – and in how many
economy. And despite being a popular president, he never gave in
ways – the proposal for combining the qualities of the institutions
to the temptations of populism or sought to perpetuate himself in
that make up Itaú Unibanco is present in our daily lives.
office for successive reelections, as we have seen in other countries
in Latin America. The newly-elected president, Dilma Rousseff, will
In the strength of the Itaú brand, which has been obtaining more
face important challenges ahead – particularly in areas such as
market share and visibility in Brazilian cities; in the Uniclass segment,
education, health, infrastructure and public security – but she has
which introduced the high income concept in our retail branches; in the
inherited a country that is undoubtedly more stable and developed
broad concept of convenience, which today is represented by Itaú 30
than it was before the terms of the last two presidents.
Horas (Itaú 30 Hours); in the integration process conducted with high
efficiency at Itaú BBA (Wholesale Banking ‒ IBBA); in Private Banking, in
2010 was also characterized by the vigorous recovery of economic
the corporate segment, in the credit card, asset management, insurance,
activity in Brazil. Gross Domestic Product (GDP) grew around 7.5%
and retail banking areas and in all of our administrative areas – wherever
and unemployment dropped to 6%, the lowest level in many years.
you look it is easy to see how the combination of two banks, which
Society consumed more and invested more. The consumption of
were already outstanding in their own right, is building an extraordinary
durable goods, for example, exceeded pre-crisis levels. Investments
organization. And the results already reflect this progress. The bank’s net
in the real estate industry resumed, quickly reducing the housing
income in 2010 showed a growth of 32.3% in relation to 2009, reaching
deficit. Small and medium-sized companies and large corporations
R$13.3 billion. On December 31, 2010, our shares were traded at
found a proper environment in which to grow. The income
US$22.84 on the New York Stock Exchange (NYSE), 5.1% over the closing
generated in this process has been gradually distributed on a
price in the previous year.
more equal basis, benefiting all social classes, particularly the most
underprivileged. And the financial sector has been significantly
An institution that already operates in a fully integrated way must
contributing to this scenario by means of varied credit instruments,
also have a differentiated culture, capable of inducing the attitudes
which, as a proportion of GDP, reached 46.3% in November.
necessary to support its bold growth plans, whether quantitative
or qualitative. With this in mind we launched, in February 2010, a
8
This result was particularly notable in an international environment
corporate culture project for Itaú Unibanco, named Nosso Jeito de
that is still uncertain, with growth challenges in some developed
Fazer (Our Way to Do Things), whose development involved a broad
countries. More vigorous recovery in other emerging countries, on
debate with employees from many regions and from different
the other hand, helped to balance this scenario. China maintained
functions and positions. It all started with the definition of our
Message from the
Chairman of the Board
8
vision, whose objective is to be a leading bank in client satisfaction and
sustainable performance. Next, the culture project unfolded into a set of
10 attitudes that will allow us to achieve this vision. The launch of Nosso
Jeito de Fazer involved thousands of people from across the organization
and is gradually being incorporated into each of the human resource
management pillars within the company.
We strongly believe in corporate culture as a differentiating – and,
therefore, decisive – factor in a company’s trajectory. In addition to
being large, our company aspires to be extraordinary. Accordingly, we
understand that the dissemination of the attitudes expressed in Nosso
Jeito de Fazer will provide Itaú Unibanco with a singular, unrivaled culture,
which will be converted into an important competitive advantage in the
global market.
In line with this vision, in 2010, Itaú Unibanco’s Board of Directors disclosed
an important and ambitious program to recognize and publicize the
professionals who are making a difference and leading the organization’s
future direction by making them partners. This initiative, which is unique
among large Brazilian banks, was named Programa de Sócios Itaú
Unibanco Holding (Itaú Unibanco Holding Partners Program) and is a
clear demonstration of our institution’s concern about reinforcing and
disseminating one of its main characteristics: the business owner’s attitude.
Continuing with the effort to spread this distinct culture, in 2011, Itaú
Unibanco will turn its attention to a topic that is absolutely decisive for the
success of institutions: the increasingly common practice of meritocracy.
We understand that meritocracy means having the right person in
the right place and with the proper recognition – which will be more
differentiated the better the individual’s performance. To achieve this goal,
which is already part of the set of attitudes that we are keenly pursuing,
we will hold a wide-ranging discussion on the matter. This discussion will
have a strong impact on the way we make decisions and manage the
careers of each of our more than 100,000 professionals.
Based on everything I have stated, I am deeply excited about the
prospects for Brazil and for our bank this year. The year 2011 promises
to be even more comprehensive in terms of achievements than 2010,
bringing us ever closer to the ambitious vision we have set for the Itaú
Unibanco conglomerate. (Profile 1.1)
Sincerely,
“In addition to
being large, our
company aspires
to be extraordinary.”
Pedro Moreira Salles
Chairman of the Board of Directors of Itaú Unibanco Holding S.A.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
9
Message from the CEO
Looking back at the events that took place at Itaú Unibanco
while preparing to write this message, I must say that I
could not help being impressed with the achievements and
results of the bank in such an intense year. A lot happened
and the impression we all have here is that many years were
condensed into just one. And this is exactly right. Two years
into our merger, we had the great pleasure of announcing
that the integration of our branches had been completed in
record time.
The challenge was immense and its achievement was only
possible thanks to the remarkable effectiveness of our
teams, which worked in a coordinated and organized way
to make this change as painless as possible for our clients.
This process was a success and I am sure that it has become
an international benchmark, particularly in view of its scale.
The integration allowed us to proudly announce that, yes,
one plus one is much greater than two.
In 2010, there was also an important internal development,
which laid the foundations for the bank we want to build in
the future: the launch of our vision and our culture, Nosso
Jeito de Fazer. I am sure that, based on the 10 attitudes that
make up Nosso Jeito de Fazer and driven by our vision, we
will be able to deliver an extraordinary bank.
Although we have completed important stages such
as these, new challenges appear every day. Taking
into consideration our commitment to leadership in
sustainable performance and client satisfaction, we must
continuously rethink the way we operate, be attentive to
the development of competition and adapt to the changes
“I am sure that, based on
the 10 attitudes that make
up Nosso Jeito de Fazer, we
will be able to deliver an
extraordinary bank.”
seen in Brazil in recent years, as well as to the technological
changes over the past decade.
If we take a close look at Itaú Unibanco’s figures, there is
no doubt that the merger of these important players in
the Brazilian financial market was positive for stockholders,
clients, employees and society in general.
This can already be seen in our results. Our net
income reached R$13.3 billion in 2010, with an
average return on stockholders’ equity of 23.6%. Total
free, raised and managed own assets reached a record
balance of R$1 trillion.
10
Message from
the CEO
10
The balance of the loan portfolio at the end of 2010 totaled
and high school education in Brazil, this has already been
R$335.5 billion, an increase of 20.5% in relation to the same
happening.
period of 2009. Among the highlights, the real estate loan
portfolio, taking into consideration both individuals and
Take care of the present, plan for the future. Understand
legal entities, jumped 55.8%, and the portfolio of small and
that the world is changing and that society is calling for
medium-sized companies, 31.2%.
new commitments that are potentially harder to put into
practice due to their challenging and ambitious nature, but
Our efficiency ratio is the best in the financial market today
that have an enormous potential to benefit all. Therefore, we
at 48.8%. These figures are a consequence of an impressive
believe that, in this Annual Sustainability Report, our major
scale of 4,911 branches and Customer Site Branches (CSBs),
commitment to express is to following up on the changes
a large base of more than 40 million clients in all business
in the world, society, and our clients, as well as anticipating
segments, and the efficiency of our team of more than
demands and needs so that, by means of technology,
108,000 employees.
expertise and the right attitudes, we can build long-lasting
and productive relationships with all.
Brazil is growing in a balanced and sustainable way and
Itaú Unibanco has been accompanying this growth. We
Today, we already have the market’s recognition of our
continue to expand credit for individuals and legal entities,
practices, such as the creation of sustainable finance
and we are always attentive to the maintenance of proper
products, our participation in the Global Compact, and our
levels of default. The conscientious use of money has
continued presence no the Dow Jones Sustainability Index
been an important tool for carrying out the bank’s sale of
(DJSI) and the Bovespa Corporate Sustainability Index (ISE)
products and provision of services in the best way possible.
from the outset. These show us, without a doubt, that we are
A long-lasting relationship with our clients depends on
heading in the right direction.
this and we have been making a constant effort within the
organization to prioritize topics such as quality and client
But this is not enough for a bank that aims to be a leader
satisfaction in decision-making.
in sustainable performance and client satisfaction. Every
day, we must review what we are doing and ask ourselves
This is even more important as we increase our credit
if we can do better. We must focus, without exception, on
card base, which now has 26 million clients if we
sustainable performance, on creating the maximum value for
combine the operations of Itaucard and Hipercard. We
the bank by providing our clients with the best the market
know that Brazil currently has more credit card holders
has to offer, on improving the bank’s efficiency ratio, and on
than open current accounts. In fact, the credit card
practicing meritocracy totally based on Nosso Jeito de Fazer,
has become the first banking instrument for people
with no deviations.
who have climbed up the social ladder and started to
consume financial instruments.
Not just one, but many, big dreams are necessary.
Therefore, it is increasingly evident that financial education
This is how I see the future of Itaú Unibanco. An organization
practices, supported by our Uso Consciente do Dinheiro
made up of people who aspire and contribute to a fairer
(Conscious Use of Money) platform, are becoming more
society and, more importantly, one that is more prosperous
necessary. We know that we still have a long way ahead
and happy. (Profile 1.1, 1.2 and 2.9)
of us. Not only Itaú Unibanco, but Brazil too, must include
this matter in its agenda and also start to teach it in the
classroom. In our arena of social private responsibility, by
Sincerely,
means of Fundação Itaú Social (Itaú Social Foundation) and
Instituto Unibanco (Unibanco Institute), which are both
dedicated to improving the quality elementary, middle,
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Roberto Setubal
Chief Executive Officer of Itaú Unibanco Holding S.A.
11
2010 Highlights
New vision and culture
Fully integrated branches
During the Encontro entre Líderes (Leaders’ Meeting),
Less than two years after the largest merger in the Brazilian
held in February 2010 with the participation of 14,000
financial system, Itaú Unibanco completed in October 2010
employees, the new vision and the new culture of Itaú
the integration of its entire service base throughout Brazil. In
Unibanco were launched. To this end, we looked to Modo
aggregate, this involved the migration of over 1,200 banking
Itaú de Fazer (Itaú’s Way) and Jeito Unibanco (Unibanco’s
service centers of Unibanco, creating a network of almost
Style). We combined the best of the two cultures with new
5,000 units across Brazil, all carrying the Itaú brand.
challenges and approaches. After outlining the new vision
satisfaction), we developed our Nosso Jeito de Fazer, or “10
Itaú Unibanco is the largest private
financial institution in Brazil
Commandments”, a set of ten attitudes and values that
In an annual survey conducted by Exame, a magazine dedicated
guide all our relationships and the language that we wish
to economics and business, Itaú Unibanco ranked number one
to use, inside and outside our walls.
among the 50 largest banks in Brazil, based on stockholders’
(to be a leading bank in sustainable performance and client
equity. This information was published in the special 2010
Todos pelo Cliente (All for the Client)
Melhores & Maiores (2010 Best and Largest) issue of Exame.
The Todos pelo Cliente attitude, the first of the ten listed in Nosso
Jeito de Fazer, is one of the main driving forces behind the work
Created from the merger between the banks Itaú and Unibanco,
carried out by all employees of Itaú Unibanco. With this attitude in
which was announced in November 2008, Itaú Unibanco is
mind, we seek to keep our focus on the satisfaction of our clients.
currently one of the ten largest banks in the world in market
value. Its operations cover more than 1,000 municipalities in
Brand management
Brazil, in addition to branches and offices in 19 countries and two
The color orange, as well as the slogans “feito para você” (made
territories (the Cayman Islands and Hong Kong) in the Americas,
for you), “30 Horas” (30 hours), and “i digital”, are some of the
Europe, Asia and the Middle East.
elements that have helped us build our brand identity and
have given it an importance that is consistent with the size of
Itaucard stores
our organization. Beyond profit and the products and services
In 2010, 31 stores were opened throughout Brazil to serve
it offers, Itaú Unibanco is increasingly seeking to take on a lead
Itaucard clients. These are banking service centers that stand
role in transforming society, acting as a company in tune with
out for not marketing cards, because they have been created
its time, which recognizes current needs and opportunities
to operate as channels of exclusive access with the sole task
but focuses on shaping a brighter future. By understanding
of supporting clients.
the scale of this role, we have been able to understand the
importance of managing the asset that is our brand.
The Itaucard stores make perfect sense in view of the number
of active credit card users, and the fact that more than half
The most valuable brand in Brazil
for the seventh consecutive time
of them are not Itaú Unibanco’s clients. The objective of the
Among the factors that have contributed the most to the
closer to those of non-account holders so that problems and
appreciation of the Itaú brand, we highlight the improving
doubts can be solved. These banking service centers started
and consistent financial results, the progressive consolidation
to be opened in the first quarter of 2010 and, today, between
of the operations as a multiple-service bank under the Itaú
150 and 350 clients visit them every day. Among the problems
corporate brand, and the strong participation of the bank
solved by these stores are the renegotiation of debts, issuing
in sustainability-related issues. The successful merger with
of copies of documents, clarifications on bills and rights, and
Unibanco in 2008 is also an important fact that has enhanced
granting of higher credit limits. (Profile 4.16) (Economic
the brand’s value in recent years.
Management Approach)
12
2010 Highlights
12
Itaucard stores is to bring the operations of account holders
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
13
Results of the main challenges taken on in 2010
Results of the main challenges taken on in 2010 (Profile 1.1 and 1.2)
Focus
Challenges for 2010
Transparency and
governance
Improve communication and transparency in contracts,
bills and client statements, so as to make them more
clear and understandable.
In order to meet this challenge, several actions were taken, such as new contracts for clients; review of fees related to Advances to
Depositors; consultation on the history of Limite Itaú para Saque (Itaú Overdraft Limit) - LIS charges on statements; review of credit
card bills; Conscious Use Tips and Executive Summary of Credit Cards; the creation of the Total Effective Cost for vehicle financing;
improvements in communication and in the process of reimbursing the Tarifa de Boleto (Bill Fee) in Itaucred; the creation of the new
guidebook for Itaú Real Estate Loan clients; the Garantec Executive Summary; and the folder containing explanations of capitalization.
Client satisfaction
Complete the integration process at the
administrative level.
The integration process, to the extent it refers to the transfer of people, payrolls, incentive models and the structure as a
whole, among other related items, was completed in December 2010.
Client satisfaction
Reduce disagreements with clients, thus decreasing the
number of complaints.
Itaú Unibanco recorded the best performance among banks in the Problem Solving Increase rate in the preliminary
phase through Preliminary Information Letters (Cartas de Informações Preliminares – CIPs) It resolved 79.1% of
problems, exceeding the target of 75% set for 2010, and improving on the rate of 69% recorded in 2009. In relation
to the performance in the Consumer Protection and Advisory Program (Procon) Complaint Reduction rate, we ranked
third place among banks. The volume remained basically stable in the comparison between 2010 and 2009 (growth of
1.4%). As to the Hearing Settlement Increase rate, we reached 65.1%. Although we did not reach the established target
of 70%, the performance was better than in 2009, when the institution had a 64% rate of success.
Client satisfaction
Increase transparency in client relationships
and strengthen our partnerships with consumer
protection agencies.
During 2010, we strengthened our relationships with the many different agencies of the Consumer Protection System. In order
to achieve this goal, we held several meetings with these agencies aimed at continually strengthening the relationships. This
will enable the permanent development of an agenda for transparency within the bank, by means of a proactive dialogue,
discussion of the institution’s positioning and identification of opportunities for improvement of harmonious consumer
relations and client satisfaction.
Client satisfaction
Strengthen the public commitment to listen to
clients and meet their demands through the
available service channels.
In 2010, we signed a commitment with the Departamento de Proteção e Defesa do Consumidor (Consumer Protection
and Defense Department – DPDC) of the Ministry of Justice – Public Indicators Project. This involved pledges to reduce
complaints and increase both solutions and settlements.
Social and
environmental
criteria
Undertake more initiatives for the collection and reuse of
rainwater.
The installation of water tanks for collecting rainwater (reused in toilets in building A of the Tatuapé Administrative Center)
began. The installation is expected to be completed in 2011.
Social and
environmental
criteria
Replace the flush valves in all administrative centers
to achieve minimum savings of 20% to 40% in water
consumption.
All the floors of the main administrative buildings are undergoing renovations. The new layout includes more
economical taps, as well as dual flush valves and urinals that consume 0.8 liters of water per flush. Renovations
will continue in 2011.
Social and
environmental
criteria
To increasingly include in technical projects
materials, suppliers and technologies that enhance
eco-efficiency gains.
All the renovations in the conglomerate have included materials for energy gains, such as more efficient lamps and
reflective blinds, which decrease the absorption of heat, thus enabling the use of air conditioners at lower levels. Materials
that are less harmful to the environment have also been used. This is the case with the new fitted carpets, whose
production emits fewer greenhouse gases. The new building C of the Tatuapé Administrative Center, which is still in the
design stage, will be built according to the Leadership in Energy and Environmental Design Certification standards.
Social and
environmental
criteria
Implement the environmental management
system in operations.
The Tatuapé Administrative Center, one of the main administrative buildings, is going through the International Organization
for Standardization (ISO) 14001 certification process. As one of the improvements already implemented at that site, we can
highlight the creation and maintenance of an environmental management system that controls and measures the general
consumption of resources, as well as the production of waste and other items that may have an impact on the environment.
Social and
environmental
criteria
Use recycled water in the cooling towers of other
administrative buildings, in addition to those that
already adopt this process.
The project is still under review.
Social and
environmental
criteria
Supply another administrative center with
renewable energy generated by the Bandeirantes
Thermoelectric Plant.
Since May 2010 the Tatuapé Administrative Center has been supplied with energy generated by the Usina Termoelétrica
Bandeirantes (Bandeirantes Thermoelectric Plant), thus totaling seven administrative buildings supplied by the energy
arising from this power plant.
Social and
environmental
criteria
Prepare and implement a waste management program
that establishes processes, records evidence and
encourages service providers to improve their practices.
The waste management program was implemented at the Tatuapé Administrative Center for the purposes of controlling,
monitoring and reducing the generation of waste and its environmental impacts, thus ensuring the practice of proper
waste disposal. It is probable that the measures taken at this site will be gradually adopted at the other sites.
Social and
environmental
criteria
Equip another telepresence room.
Another five telepresence rooms were equipped, totaling nine rooms in all buildings of the conglomerate.
Increase and communicate the practices of proper IT
equipment disposal.
Target achieved with the adoption of sustainable disposal in the network of branches and storerooms. In 2010, over
3,000 metric tons of technological waste from data centers, work stations, branches and inventories were disposed of
properly. In relation to the communication of these measures to employees, in 2010 we conducted two campaigns that
reached approximately 20% of the institution’s employees, and collected over 3,200 items, totaling more than 3 metric
tons of electronic waste.
Social and
environmental
criteria
14
Challenges taken
on for 2010
14
Result
Comments
Focus
Challenges for 2010
Climate change
Strengthen the fight against climate change, with
mitigation/reduction actions in our operations.
The actions/solutions performed in Green IT avoided emissions of CO2 [energy consumption (kWh) converted into CO2].
During 2010, we consolidated the virtualization of servers, the modernization of the data center, and the implementation
of the Virtual Desktop Infrastructure solution, in addition to changing cathode ray tube (CRT) monitors to liquid crystal
display (LCD) screens and using telepresence and videoconference rooms.
Financial education
Improve the financial education initiatives within the
scope of the Uso Consciente do Dinheiro program.
In 2010, we developed initiatives such as: TV Itaú Corretora (Itaú Corretora TV), Simulador Projeto Vida (Life Project
Simulator), Itaucard e Livraria Cultura, Hipercard and Colaboradores Endividados (Indebted Employees). These actions were
aimed at improving financial education within the scope of the Uso Consciente do Dinheiro program.
Improve the internal and external disclosure of the
Essência da Sustentabilidade, based on the findings from
the Stakeholders’ Panels held in 2009.
In July 2010, we released the second edition of the Banco de Ideias Sustentáveis (Sustainable Ideas Databank – BIS),
a program aimed at involving and encouraging employees to contribute ideas about sustainability that can be
implemented at the bank. In this second edition, the following new ideas were presented:
• Popular vote – employees had the opportunity to express their opinions and, together with the Sustainability
Commission, choose the top five ideas of this edition;
• Blog – gives everybody the opportunity to express their opinions and improve the submitted ideas.
In 2010, there were 37 days for submitting ideas and 1,142 were put forward – in 2009, 1,300 ideas were put forward in
150 days. The key topics were the bank’s top eight sustainability challenges that make up the Essência da Sustentabilidade.
Stakeholder
engagement
Disseminate the new corporate culture.
In 2010, through practices based on Nosso Jeito de Fazer, we were able to start spreading the bank’s new corporate culture.
Many actions were taken during the year, such as the Encontro entre Líderes, the Portas Abertas (Open Doors) program and
the Walther Moreira Salles Award, in addition to the alignment survey, the organization of workshops and the drawing up
of the map of Nosso Jeito de Fazer.
Stakeholder
engagement
Improve the process of training leaders by implementing
the Leadership Academy.
Launched in 2010, the Leadership Academy is an educational strategy aimed at the continuous development of the
institution’s leaders. The strategy offers several training programs for the development of the skills necessary for conducting
business, managing people and achieving personal excellence. The training programs are targeted at employees who have
become leaders and at newly hired or promoted managers.
Stakeholder
engagement
Manage talents with a focus on recruitment,
development and retention.
The 2010 Trainee Program of Itaú Unibanco was completed with 95% retention, while the market average is 70%. In 2011,
this program attracted over 43,000 applicants.
Stakeholder
engagement
Evaluate all of our recurring suppliers in accordance with
the risk matrix.
All of our recurring suppliers are evaluated in accordance with the risk matrix, in which risk rating groupings are
assigned according to potential loss level and service continuity risk, based on the following criteria: risk in operations,
ease of replacing the supplier, access to the bank’s confidential information, likelihood of labor claims, financial
importance of the group, and risk to image. The risk matrix of the group was defined and made available on the
procurement management SharePoint to the entire team. The internal policy and the ISO procedure include the
evaluation and approval criteria according to the risk matrix of the group.
Stakeholder
engagement
Improve the website of suppliers, using methodologies
adopted after the merger.
Several improvements were implemented in the supplier system, with the inclusion of new managerial status and the internal
registration of suppliers, the inclusion of documents for additional analyses, the determination of new fields – which enable more
in-depth analyses – and the development of a system for automating the prevention of money laundering process. In 2011, the
Conheça seu Fornecedor (Know Your Supplier – KYS) automation solution will be implemented, along with other improvements.
Stakeholder
engagement
Increase the control and efficiency of the suppliers’
reference file.
The control and efficiency of the reference file were improved by means of the following set of actions: processing of the
database of suppliers with annual revenue over R$300,000 together with the procurement departments, support from
compliance areas so that all recurring suppliers are approved, publication of the internal policy and ISO updates, and
monitoring of larger suppliers, which represent 80% of payments.
Stakeholder
engagement
Strengthen the bank’s relationship with the media with a
focus on communication about the integration process, topics
related to sustainability and financial education, and our
consolidation as a global competitor.
In 2010, we organized the Sustentabilidade em Pauta (Sustainability on the Agenda) meetings and the second edition of
the Itaú de Finanças Sustentáveis (Itaú Sustainable Finance) program, which recognized the work presented by journalists
and students on this topic.
Stakeholder
engagement
Strengthen our relations with other opinion makers through
institutional relations events and actions.
Relations were strengthened through events such as Diálogos de Sustentabilidade (Dialogues on Sustainability) and
Sustentabilidade em Pauta, in addition to events promoted by the Public Relations team together with many areas of the bank.
Stakeholder
engagement
Promote and enhance the quality of the debate about
public full-time education policies.
In 2010, Fundação Itaú Social held in São Paulo the Colóquio de Educação Integral (Full-time Education Colloquium), which
was extended into four regional meetings and distance-learning courses.
Stakeholder
engagement
Increase the visibility of successful full-time education
experiences.
The Tendências para Educação Integral (Full-time Education Trends) publication was prepared in partnership with Unicef
under the technical coordination of Centro de Estudos e Pesquisas em Educação, Cultura e Ação Comunitária (Center of Studies
and Research on Education, Culture and Community Action). This publication was released during the launch of the Prêmio
Itaú-Unicef (Itaú-Unicef Award) in March 2011.
Develop and disseminate methodologies for training
youths.
Fundação Itaú Social organized and published the content of the Jovens Urbanos (Urban Youths) program so that it could be replicated
by entities that work with young people. In partnership with Instituto Unibanco, it held the Ações Sociais com Juventude (Social Actions
with Youths) seminar and sponsored research on the young, such as the Índice de Audiência no Ensino Médio (High School Attendance
Rate), Perfil Sócioeconômico e Demográfico dos Jovens da Rede Pública de Minas Gerais (Social, Economic and Demographic Profile of the
Young People from the Public Education System of the State of Minas Gerais), Evasão Escolar entre as Etapas do Ensino Fundamental e
Médio (Dropout Rates Between Elementary and Middle School and High School), Fluxo Escolar entre as Etapas do Ensino Fundamental
e Médio (Grade Progress Between Elementary and Middle School and High School), Relação entre Qualidade e Permanência do Jovem
no Ensino Médio (Relationship between Quality and Continuity of High School Students), and Modalidades de Ensino Médio no Brasil:
Relação com Evasão e Abandono (Types of High School Education in Brazil: Relationship with Dropout Rates and Withdrawal).
Stakeholder
engagement
Stakeholder
engagement
Result
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Comments
15
Tables of challenges
Focus
Challenges for 2010
Result
Comments
To overcome this challenge, in 2010, we undertook the Melhoria da Educação no Município (Improvement of Education in the Municipality)
program of Fundação Itaú Social, which operated in 18 municipalities in the State of Paraná. The program benefited 77 people, namely
municipal education secretaries, principals, teachers, municipal and guardian councilors, and technicians from the education department.
90% of the municipalities completed the training in 2010, 100% of which established commissions with representatives from different
institutions, and 100% of the municipalities prepared a diagnosis. Also, meetings were held in partnership with the União Nacional dos
Dirigentes Municipais de Educação (National Association of Municipal Education Directors), in which technical speeches were given on
management topics (São Bernardo, Vitória, Fortaleza and Olinda), with an average of 500 participants per meeting. These were in addition
to the Brasil Hoje (Brazil Today) meetings for the training of managers (40 training meetings of four hours each for 1,243 professionals)
and the Formação de Educação Integral (Full-time Education Training) meetings (four Regional Training Meetings, bringing together
organizations participating in the Prêmio Itaú-Unicef from various places in Brazil, such as Curitiba, São Paulo, Salvador and Rio de Janeiro).
We can also mention the expansion initiatives of the Encontros Regionais de Formação (Regional Training Meetings), whose activities were
carried out together with partners to increase the debate on full-time education in the following cities: Natal, State of Rio Grande do Norte;
Betim, State of Minas Gerais; Diadema, State of São Paulo; Campinas, State of São Paulo; and João Pessoa, State of Paraíba).
Fundação Itaú Social is responsible for the publication of Modelo de Escola Charter: A Experiência de Pernambuco (The Charter
School Model: the Experience of the State of Pernambuco).
Stakeholder
engagement
Train education managers.
Stakeholder
engagement
Produce knowledge in the educational management area.
Stakeholder
engagement
Reach 80,000 schools and 300,000 educators through the
Olimpíada da Língua Portuguesa – Escrevendo o Futuro
(Portuguese Language Olympics - Writing the Future).
The Olimpíada da Língua Portuguesa – Escrevendo o Futuro, organized by Fundação Itaú Social, reached 239,000 educators
and 60,000 schools.
Promote the use of assessment as a management tool.
In partnership with Escola Nacional de Administração Pública (National School of Public Administration – ENAP) of the
Federal Government, Fundação Itaú Social trained public servants from seven ministries and special departments in
economic assessment of social projects, an important measure to broaden the scope of this methodology. Training of
teachers on this methodology, 15 courses on publicizing the methodology (in a number of cities), three regional seminars
(Rio de Janeiro, Belo Horizonte and Fortaleza) and one international seminar (São Paulo) were offered.
Stakeholder
engagement
Stakeholder
engagement
Stakeholder
engagement
Stakeholder
engagement
Stakeholder
engagement
Stakeholder
engagement
Expand the virtual databases of Instituto Itaú Cultural
(Itaú Cultural Institute) through the release of the Film,
Music and Dance Encyclopedias and the launch of the
institution’s new website, which will strengthen its
position as a content portal for Brazilian art and culture.
Turn the main technologies developed by Instituto Unibanco
into social franchises to be offered to the new state
governments as of 2011.
Transfer the technology from the Programa Entre Jovens
(Among Youths Program - PEJ) to the Rio de Janeiro
Municipal Education Department, to be experimentally
implemented in 349 municipal schools.
Implement, on an experimental basis, the financial education
program in public high schools together with the Committee
for Regulation and Supervision of Financial Markets, Capital,
Insurance,Pension Plans and Capitalization (Coremec)/Pedagogical
Support Group, Brazil’s Ministry of Education and the World Bank.
Apply the technology for assessing the impact of social
projects in all actions of Instituto Unibanco.
Instituto Itaú Cultural is conducting the research for the launch of the Film, Dance and Music Encyclopedias. The new website
has not been launched due to technology development problems.
Instituto Unibanco developed materials for the Transferência (Transference) project and made a contract with the consulting
firm that is supporting the process.
The technology was applied in schools, but without the transfer of technology (the Transferência project was conceived and
scheduled in detail based on the strategy approved by the Board of Trustees and the Management of Instituto Unibanco).
In 2010, Instituto Unibanco commissioned an external evaluation, conducted by the Centro de Políticas Públicas e Avaliação
da Educação (Center for Public Policy and Evaluation of Education) and participant teachers, as well as the monitoring and
reporting on the pilot program by the institute’s technical team.
Instituto Unibanco entered into a contract with the service provider to obtain the results of the assessments.
75%
Results
Achieved
Partially achieved
Not achieved
6%
Total of 37 challenges, 28 of which were achieved,
7 were partially achieved and 2 were not achieved
19%
16
Challenges taken
on for 2010
16
Challenges taken on for 2011
Increase Itaú Unibanco’s share in the markets where it operates in South America (Argentina, Chile, Uruguay and Paraguay).
Expand the branch network abroad.
Increase the corporate segment in foreign markets, mainly focused on small and medium-sized companies.
Consolidate the organizational culture.
Strengthen the concept of meritocracy within the organization.
Migrate 600 branches to the new layout.
Implement a systemic evaluation tool for the KYS procedure and increase the number of categories to be evaluated.
Follow the schedules for the renovation and maintenance work on the administrative units to increase eco-efficiency practices (reuse of water, use of underground water, and
reduction in the consumption of electric energy).
Maintain the growth of IBBA.
Increase the role of IBBA in the issue of fixed income securities and shares of Latin American companies.
Increase the operations of IBBA with corporate clients.
Improve the service to ultralarge clients.
Implement, at IBBA, the commitments assumed in the Protocolo Verde (Green Protocol).
Maintain IBBA’s active participation in the Equator Principles Steering Committee.
Train IBBA’s staff to address climate change and develop, in the medium and long terms, mitigation and adaptation instruments and measures, including financing mechanisms.
Foster the international expansion of the internal audit area, with the strengthening of external structures in Latin America and review of professional profiles.
Utilize forecasting, analysis and statistics tools to support the work of the internal audit area.
Increase automation in the internal audit processes.
Create a structure to handle the audit of projects, focused on the evaluation of offices and the monitoring of the company’s critical projects.
Intensify the systemic evaluation of fraud, money laundering, regulatory and image risks.
Increase the coverage of the Sarbanes-Oxley Act in the routine internal audit work.
Put a stop to the process of reviewing contracts, which should be presented in simple language.
Enhance the litigation management model and strengthen relations with the Public Prosecution Office and the Judiciary.
Reduce the filing and the average cost of lawsuits.
Complete the renovation of the administrative centers, introducing a new layout concept intended to let staff work in closer proximity, facilitate their processes and speed up
decision-making.
Develop systems that consume less electric energy and use fewer physical resources, contributing to the optimization of the Data Processing Centers (DPCs).
Rethink the application systems, making them more efficient from the standpoint of consumption of machinery and electric energy, as well as use of inputs, such as paper.
Double the size of the real estate loan portfolio.
Expand the Programa de Certificação Itaú Empresas (Itaú Corporate Certification Program) across the corporate area.
Complete the unification of the treasury departments.
Advance the implementation of the Fluir Platform (financial process reformulation program).
Have a consolidated balance sheet under the International Financial Reporting Standards.
Secure a larger market share and more significant results for the bank, keeping the focus on operational efficiency and quality of service to our clients.
(Profile 1.1)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
17
Profile of the
organization
Profile of the organization
3,967 branches
all over Brazil
18 • Profile
Geração
ofde
thevalor
organization
22 • Main
Liderança
em sustentabilidade
financial
indicators
24 • Operations
Um novo banco,
umaand
nova
cultura
in Brazil
abroad
• Principais indicadores
We present below the main figures and information
of Itaú Unibanco, one of the ten largest banks in the
world in market value:
Company name: Itaú Unibanco Holding S.A. (Profile 2.1)
Direct employees, contracted workers and trainees in
December 2010: 108,040 in Brazil and abroad. (Profile 2.8)
Head office: São Paulo (State of São Paulo). (Profile 2.4)
Total branches and customer site branches in Brazil: On
December 31, 2010, our network comprised 3,967 full-service
branches throughout Brazil. We also operated 944 CSBs. The range
of services provided by the CSBs may be the same as those offered
by the full-service branches, or more limited, in accordance with
the size of the corporate client and its needs. The CSBs are a lowcost alternative to opening full-service branches. On December 31,
2010, the bank also had 29,311 ATMs available to its clients in Brazil.
On the website
See the table that shows the 2010
Distribution of Value Added (DVA), where
the expenditures with salaries and benefits
granted to employees are itemized, with
payments made to the government and
operational costs, among others.
Main brands, products and/or services offered by the company:
The most important brands of Itaú Unibanco Holding S.A. or its
On the iPad and in the Magazine
subsidiaries, which are used in the performance of their activities,
are “ITAÚ”, “ITAÚ PERSONNALITÉ”, “ITAÚ BBA”, “ITAUCARD”, “HIPERCARD”
and “GARANTEC”. These brands are registered with the National
Institute of Industrial Property (Instituto Nacional da Propriedade
Industrial), which is the body responsible for registering trademarks
and patents in Brazil in the areas of activity in which the organization
and its subsidiaries operate.
10
Itaú Unibanco Holding S.A. Relatório Anual de Sustentabilidade 2010
10
Read the notes “A marca mais valiosa do Brasil”
(The most valuable brand in Brazil) and “The
big bank”, which show important information
on Itaú Unibanco’s performance in 2010.
Profile of the organization
Itaú Unibanco is currently one of
the 10 largest banks in the world
in market value.
We offer a wide range of banking services to a diversified
base of individual and corporate clients. These services
are provided on an integrated basis by the commercial
banking, IBBA and consumer credit segments.
Additionally, Itaú Unibanco has a wide range of operations
Legal entities
Individuals
abroad and has strengthened its presence in the international
markets based on units that are strategically located in the
Americas, Europe and Asia. Accordingly, significant synergy is
IBBA
annual billing > R$150 million
Itaú Private Bank
investments ≥ R$2 million
e
nc
ura
Ins
nd
it a
red
,C
nts
me
est
Inv
Itaú Institutional Clients
Public Authorities
Small and medium sized companies
R$500,000 ≤ annual billing ≤ R$150 million
Specialized
structures
offering of more sophisticated financial transactions and private
banking operations. (Profile 2.2)
Itaú Personnalité
income > R$7,000
Date of Itaú Unibanco’s foundation: September 27, 1924.
Legal nature: Itaú Unibanco is a publicly-held company
Itaú Uniclass
R$4,000 ≤ income ≤ R$7,000
Itaú Negócios (individual)
annual billing ≤ R$500,000
generated in foreign trade financing, placement of Eurobonds,
with shares traded under the ITUB code on three stock
Itaú
branches
Itaú Retail
Up to R$4,000
exchanges: São Paulo Stock Exchange (Bolsa de Valores,
Mercadorias & Futuros de São Paulo – BM&FBovespa),
Buenos Aires Stock Exchange (Bolsa de Comércio de
Buenos Aires – BCBA) and NYSE. In these last two markets,
trades take place by means of share deposit certificates
[American Depositary Receipts on the NYSE and Argentinean
Depositary Certificates (Certificados de Depósito Argentinos)
on the BCBA]. (Perfil 2.6)
The commercial banking segment offers a wide range
IBBA is responsible for the provision of services to the
of banking services to a diversified base of individuals
corporate segment and investment banking activities.
Countries and territories where Itaú Unibanco operates:
and companies. The services offered by the commercial
The management model of IBBA is based on the
Brazil, Chile, Uruguay, Paraguay, Argentina, Peru (opening in
banking segment include insurance, private pension and
establishment of strong relationships with clients by
January 2011), United States, Portugal, England, Luxembourg,
capitalization products, credit cards, asset management,
meeting their needs and offering customized solutions.
Japan, China, United Arab Emirates, Bahamas, Spain, France,
credit products, and customized products and solutions
Services for the corporate segment include the provision
Germany, Switzerland, Mexico, Cayman Islands and Hong
that are specifically created to meet clients’ demands. The
of banking services to large companies, whereas the
Kong. (Perfil 2.5)
marketing strategies are adapted to the profile of each
investment banking activities include the offer of financing
client and implemented through the most appropriate
to this segment by means of fixed and variable income
distribution channels. Our target is to increase the number
instruments, among others.
The operations of Itaú Unibanco
cover more than 1,000
municipalities in Brazil, in addition
to branches and offices in 19
countries and two territories (the
Cayman Islands and Hong Kong)
in the Americas, Europe, Asia and
the Middle East.
of products used by our clients, thus diversifying the sources
of income. This segment is an important source of income
The consumer credit segment offers non-account holders
for our operations and generates significant financial
financial products and services, such as vehicle financing,
earnings and service revenue.
credit cards and loans to low-income consumers.
Profile of the
organization
20
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Main financial
indicators
Operations in Brazil
and abroad
22
24
11
Profile of the organization
Main financial indicators (Profile 2.8)
Total assets: (R$ billions)
Deposits of clients*: (R$ billions)
638.1
2008
608.3
2009
190.8
2009
755.1
2010
206.2
2008
202.7
2010
* Includes demand and time deposits, deposits in savings accounts, interbank
deposits and others.
Net income: (R$ billions)
Stockholders’ equity:
10.0
2008
2008
10.1
2009
Total loan operations with endorsements and sureties:
(R$ billions)
271.9
2008
22
Profile of the
organization
18
Main financial
indicators
22
60.9
2010
Basel Ratio: (%)
16,3
16,7
2009
335.5
2010
50.7
2008
278.4
2009
43.7
2009
13.3
2010
(R$ billions)
Operations in Brazil
and abroad
24
2010
15,4
Distribution of Value Added* - 2010 (EC1)
ROE*: (%)
2,2%
24.8
2008
22.3
2009
30,8%
23.5
2010
36,4%
* Recurring Return on Average Stockholders’ Equity (annualized)
Efficiency ratio: (%)
30,6%
45,3
2008
2009
42,4
48,8
2010
Employees
Interest on capital**
Taxes and
contributions
Interest on third
parties’ capital
* Refers to the direct economic value generated and distributed by the organization, including
revenue, operating costs, employees’ compensation, donations and other community
investments, retained earnings and payments to capital providers and governments.
** Includes dividends and interest on capital, retained profits/(losses) for the period and
non-controlling interests in retained profits.
Free, raised and managed own assets: (R$ billions)
2008
2009
2010
807.7
855.1
1.011.2 (trillion)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Total distributed:
R$ 39.1 billion
23
Profile of the organization
Operations in Brazil and abroad
(Profile 2.3) (Profile 2.5) (Profile 2.7) (Profile 3.6)
We present below, a list of the countries and territories where Itaú Unibanco operates:
Countries/Bank Locations
1
Brazil
2
Chile
3
Uruguay
4
Paraguay
5
Argentina
6
US
7
Portugal
8
England
9
Luxembourg
10
Japan
11
China
12
United Arab Emirates
13
Bahamas
14
Spain
15
France
16
Germany
17
Switzerland
18
Mexico
São Paulo (head office)
Santiago (head office)
Montevideo (head office)
Asunción (head office)
Buenos Aires (head office)
New York, Miami
Lisbon, Madeira
London
Luxembourg
Tokyo
Shanghai
Dubai
Nassau
Madrid
Paris
Frankfurt
Zurich
Mexico City
US$ million
2010
Territories
1
2
Cayman Islands
Hong Kong
Georgetown
Hong Kong
24
24
Profile of the
organization
Main financial
indicators
18
22
Assets
Stockholders’ Equity
Foreign branches
54,720
5,809
Itaú Argentina Consolidated
1,406
89
Itaú Europa Consolidated
7,634
838
Cayman Consolidated
9,138
3,813
Chile Consolidated
7,390
849
Uruguay Consolidated
2,144
179
Paraguay
1,369
191
Other companies abroad
1,120
1,013
Foreign Consolidated
77,507
12,779
Operations in Brazil
and abroad
24
Operations in the Domestic Market
(number of branches and CSBs)
North
106
2009: 68
Northeast
301
2009: 242
Midwest
357
Southeast
2009: 282
3.133
2009: 2.499
South
754
2009: 633
Total points = 4,651
Itaú facade branches in Paraguay
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
25
Outlook and
strategies
Outlook and strategies
Fully
integrated
branches
26 • Outlook and strategies
30 • Vision of sustainability
The year 2010 was characterized by the complete
integration of the branches of Itaú and Unibanco less
than two years after the merger.
By October 2010, more than 1,200 banking service centers had
already been revamped and carried the Itaú brand, creating
a network of nearly 5,000 service units throughout Brazil. In
this challenge, which was overcome in the record time of six
months, renovation work took place at times in as many as 500
sites simultaneously, involving branches in 25 states (plus the
Federal District) in more than 300 cities around Brazil. For 2011,
On the website
the target is to migrate another 600 Itaú branches to the new
service model.
See Itaú Unibanco’s Sustainability
Policy, by visiting ww2.itau.com.br/
sustentabilidade/_arquivo/politica-desustentabilidade.pdf
This accomplishment is the result of the work of each of
the 108,000 employees who contributed to the success of
this operation. And those who benefited from this were our
more than 40 million clients who have been offered a fully
integrated and strongly structured network.
Besides integrating the service network, Itaú Unibanco
On the iPad and in the Magazine
also took on the challenge of creating a new relationship
In the section “Our concern about
climate change”, read the article “De olho
na sustentabilidade” (With an eye on
sustainability), which addresses the Social
and Environmental Risk Policy and the
bank’s electronic waste management, in
addition to the climate change topic.
concept that brought together the strengths of the two
companies, adding modernity, transparency and proximity.
Today, the focus of everyone in the bank is to increase
client satisfaction. For this reason, in 2010, led by the Todos
pelo Cliente attitude – the first of the ten listed in Nosso
Jeito de Fazer – we trained our employees to promulgate
14
conscientious money practices and implemented the Todos
Itaú Unibanco Holding S.A. Relatório Anual de Sustentabilidade 2010
pelo Cliente Award. With all these objectives and practices in
mind, putting the client first will increasingly be our priority
in all areas of the bank.
14
Outlook and strategies
Our commitment is to seek efficiency and quality in
everything we do. In 2010, we reduced the number of
complaints with the Procon in São Paulo. We also presented
a reduction of 58% in total complaints considered valid by
the Central Bank in the period from January to November
In 2010, we reduced the number
of complaints with the Consumer
Protection and Advisory Program
(PROCON) in São Paulo.
our direct relationships with these bodies to promote
constructive dialogue in favor of the client. We also opened
31 Itaucard shops aimed exclusively at solving doubts and
complaints – after all, we have to know our clients very
well to ensure that the relationship between the parties
is a long-term one. Above all, we want to supply the right
product, to the right consumer, for the right price – and as
transparently as possible.
The highlight was the small and medium-sized company
segment, in which we made good progress and showed
better-than-expected results. For the wholesale banking
(IBBA) and credit card segments, 2010 was also a very
favorable year. (Product Management Approach)
management, marketing actions and, in addition, the
we analyzed when we thought of ourselves as a brand.
financial appraisal of the Itaú brands.
beyond the products and services we offer.
The market also recognizes all this effort. Despite
Market value vs.
Ibovespa Index
it is important to the people who develop it. Our
Our daily challenge has been to think of Itaú Unibanco
achievements since the merger are the result of the
bank remained on the DJSI, and it is the only bank in
as a leading player in the transformation of society, as
work of each of the 108,000 people who have made this
Latin America that has been included in this index
a company embedded in its time, which sees today’s
brand what it is today. This is the result of collaborative,
for the past 11 consecutive years. On December
needs and opportunities and focuses on building a
participative and contemporary teamwork that started
31, 2010, our market value was R$179.6 billion,
better future. Understanding the scale of this role
with the communication of the ten attitudes of “Nosso
which represents an increase of 2.57% in relation to
enables us to understand the importance of managing
Jeito de Fazer”.
December 31, 2009. In the same period, the Ibovespa
this asset that is our brand.
We exist against a backdrop of constant technological
and stimulate restless minds, together with an optimistic,
whereas the Ibovespa grew 4.5 times.
advances, which transform our relationships with the world
transparent and personal vision. This has been the
and with people, establish non-linear ways of thinking, and
challenge for the past two years. Today, our main
increasingly highlight the value of intuition and emotion. It
objective is to increase client satisfaction. To this end, we
is this changing framework that we examine when we ask
determined a clear purpose for our brand, which involved
ourselves where we actually make a difference.
an understanding of who we are, what we believe, what
According to Bloomberg1, at the end of December 2010,
Itaú Unibanco was in 10th place in the worldwide market
value ranking of banks, and this was the second year
running that the bank appeared among the world’s ten
motivates us and how we deliver.
This world establishes new standards of language,
Our challenge in the short term – that is, for the next
behavior and purpose. Today, we want relationships with
We see transformation as a smart way to evolve and
ten years – is to become the leading bank in the Latin
our clients that go beyond financial transactions; to this
promote the evolution of others. Our objective is to convert
American market. And, to this end, in addition to being
end, we seek partnerships with people whose values
challenges into achievements for many because we are
in line with our vision and Nosso Jeito de Fazer, we will
are similar to ours. If we are clear in our purpose, we will
restless and we always think ahead. We seek, persistently, to
have to adapt our policies to the countries where we
always be able to encourage our clients to make positive
be the best and to encourage the best in everyone else. We
operate, respecting local cultures.
changes in their lives, in the lives of their families and in
are part of today’s world and of the world of the future. We
society as a whole.
use technology to bring us closer to people.
Since the merger that created a bank larger than the sum
From now on, we will think of Itaú as a brand that is
of the two parts, a lot has been done in thinking of Itaú
recognized for the transformation it generates in individuals
Unibanco as a brand: the spread of a new culture that
and society, a legitimate transformation that inspires people
reflects the best of the two organizations, a brand with new
to find their own voices. Once we understood that we are
meanings and qualities, icons and visual identity, which
part of a world where priorities change, we established a
incorporate elements of the original companies.
tone for our brand that reflects our energy, optimism and
stakeholders are anchored in sustainability. It was for this
reason that the bank became a pioneer in its adherence
to the Equator Principles and the Global Compact.
Sustainability is also part of Itaú Unibanco’s daily routine
when we analyze the financing of projects that have
environmental and social impacts or when we create
better products and quicker and more flexible processes.
For all of this, Itaú Unibanco’s ambition is, daily and
increasingly, to be the leader in sustainable performance
and client satisfaction.
Market value (R$ billions)
To bring together the strengths of the two companies
our market value grew the equivalent of 8.4 times,
Our relationships and business with our many different
107,9
1) International agency that provides information to the financial market.
willingness to make things happen, and which brings us
We implemented an important tool to monitor the brand
closer to people in a simple manner.
with respect to the perceptions of image, values, positions
and indicators in different business lines. This monitoring
We are at the stage of disseminating a new way of
tool – called Painel de Marca (Brand Panel) – analyzes the
thinking, which reflects our past and incorporates our
results of the various surveys conducted over the year and
aspirations for the future.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Vision of
sustainability
A brand is only important to its consumer when
its focus on the migration of branches, in 2010, the
largest banks.
Outlook and
strategies
represents an important information channel for brand
with excellence. Until recently, these were the differences
index increased 1.02%. When compared to 2000,
In 2010, the bank developed well in all business segments.
Ibovespa (1,000 points)
Relevance, size, sales, profits, products and services offered
Today, we understand that our role as a market leader goes
2010 (in relation to the same period of 2009).
In order to improve quality, we have been strengthening
Our brand
Outlook and strategies
Vision of sustainability
Long-term plans
For Itaú Unibanco, sustainability is the maintenance of business in the
short, medium and long terms, aimed at a lasting delivery of value to all
stakeholders. This vision implies the structuring of a management model
that, together with the striving for performance for stockholders and
other stakeholders, also takes into consideration and positively manages
the impacts of its operations on the environment and on society.
In 2010, Itaú Unibanco matured even further in its understanding of
what sustainability means for its business and intensified a process
of reflection on and inclusion of the topic in all its areas. This exercise
will allow the bank to reach an alignment of the topic across all its
operations and processes.
Adopting this position represents a major challenge to any organization
because it means looking beyond its daily activities and making its products
and services satisfactorily meet the needs of its clients, while helping raise
awareness and contributing to the fair development of society.
To achieve this goal, Itaú Unibanco is supported by clear and welldefined operating strategies, by policies that guide the relationships
with stakeholders, by transparency and ethics in business and by
accountability. These are in addition to robust corporate governance,
where decisions increasingly incorporate the concepts of sustainability.
The practices embedded by Itaú Unibanco in the daily routines of
its employees are examples of the bank’s concern with learning and
incorporating the sustainability agenda and with guiding its operations
as a leading institution in the market. Policies, platforms and guidelines
– such as Todos pelo Cliente, Uso Consciente do Dinheiro and Critérios
Above all, we want to
supply the right product,
to the right consumer, for
the right price – and as
transparently as possible.
Socioambientais (Social and Environmental Criteria) – are developed with
employees and ensure that our management moves increasingly closer
to sustainable business practices for clients and society as a whole.
The catalysts in this evolution were the consultation with stakeholders,
made at the end of 2009, and the constant internal reflection on
the development of the topic around the world, the bank’s role in
this context and the impact on business. In 2011, one of the main
objectives of the bank is to map and systematize management of
sustainable practices and identify opportunities for operations to
be improved with a focus on sustainable performance. (Sector
Management Approach) (Profile 4.17)
30
Outlook and
strategies
26
Vision of
sustainability
30
Next, we will describe the Sustainability Essence,
guidelines that permeate strategy, management and
Policy and Governance of Itaú Unibanco. The
relationships with stakeholders. The Sustainability
Sustainability Essence shows the eight priority
Governance institutionalizes the discussions and
challenges of the bank to ensure its endurance,
decisions on the topic among the leaders of the
whereas the Sustainability Policy contains the
many areas of the organization.
Sustainability Essence
To understand the main impacts of our activity and
Diversity
the challenges to promote sustainable growth it
To foster diversity means to build quality relationships
is essential for us to put into practice the values,
with people of different backgrounds, races, opinions and
ideas and principles that guide Itaú Unibanco’s
cultures, without discrimination, in a way that understands
management. The elaboration of this topic is an
their differences and promotes inclusion.
ongoing process in which the active participation of
all stakeholders is essential.
Climate change
Climate change is one of the major challenges that
After analyzing the main concerns and showing that it is
society and our planet face in the pursuit of sustainable
open to dialogue, Itaú Unibanco developed its Essência
development. We understand that the bank has an
da Sustentabilidade, a document that presents, in a clear
important role in this sphere in the capacity of a
and concise way, the eight main challenges for the bank’s
financial institution that has a major impact on the
management in the pursuit of a sustainable performance.
market and society.
These are: (Profile 4.8)
Financial education
Transparency and governance
To develop instruments for people to improve the
We believe that transparency strengthens trust in any
management of their finances and offer products and
relationship. For this reason, we are careful to cultivate,
services that meet clients’ needs are ways of respecting our
by means of good corporate governance practices, the
most important stakeholders.
desire to communicate (internally and externally) on a
transparent basis.
Microfinance
Microfinance is an effective tool for the economic and
Client satisfaction
social inclusion of the underprivileged portions of the
Client satisfaction indicates how sensitive we are
population. Encouraging the development of this model
to the needs of our most important stakeholder
and other solutions that help reduce poverty is one of
group. To respect and satisfy consumers is the
our commitments.
way to make this relationship long-lasting and,
consequently, ensure we keep their business in the
Stakeholder engagement
medium and long terms.
We work to increase the opportunities for dialogue and
interaction with our stakeholders. We want to understand
Social and environmental criteria
their needs so we can respond with the right products
The social and environmental criteria must be applied
and services, as well as positive and transparent attitudes,
across all our business segments, from financing to
while focusing on the development and improvement of
investments, and throughout the supply chain.
people and companies.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
31
Outlook and strategies
Sustainability Policy
Executive Sustainability Committee
The Sustainability Policy of Itaú Unibanco has three
Composed of the members of Itaú Unibanco’s Executive
main objectives. The first is to reaffirm the bank’s
Committee, it meets every six months to determine its policies
commitment to sustainable development. The second
and guidelines, in addition to approving the annual planning
is to use the concept to constantly review, adapt and
proposed by the Sustainability Committee.
improve the business in accordance with the guidelines
determined. The third is to allow stockholders,
Sustainability Committee
employees, suppliers, opinion makers and society in
Composed of officers, it meets every two months.
general to get to know our guidelines and contribute to
Its main function is to determine our operations
the improvement of our practices.
strategy in accordance with the policies and guidelines
established by the Executive Sustainability Committee.
The Sustainability Policy establishes guidelines for:
It also monitors action plans, indicators and targets,
• management;
supports the development of projects and reflects on
• products and services;
ways to reach and involve stakeholders in the bank’s
• employees;
sustainability actions.
• relationships with suppliers;
• relationships with clients;
Sustainability Commission
• relationships with society;
Composed of superintendents and managers, it meets every
• the environment.
month and seeks to analyze internal risks and opportunities
related to the market, propose projects, solutions and new
For Itaú Unibanco’s complete Sustainability Policy, please visit
approaches, carry out the action plans determined in the
ww2.itau.com.br/sustentabilidade/_arquivos/politica-de-
sustainability strategy and spread the culture related to this
sustentabilidade.pdf.
topic in the bank.
Sustainability Governance
Dow Jones Sustainability World Index
In order to ensure the achievement of targets, as well as to
evaluate performance and the adherence of stakeholders
Itaú Unibanco was elected for the 11th consecutive year
to Itaú Unibanco’s Sustainability Policy, it is necessary to
for inclusion in the DJSI portfolio, which is composed of
implement a structure aimed at sustainability management
shares of companies that have management practices
and dissemination of this topic in all areas. For this reason,
recognized as sustainable. In the 2010/2011 edition, Itaú
the bank has a Sustainability Governance structure that has
Unibanco obtained the highest score in the Human Capital
approximately 70 executives and managers and is divided
Development category.
into four authority levels:
The new DJSI portfolio comprises 318 companies – only
Sustainability Monitoring Committee
seven Brazilian – from 27 countries in the Americas, Africa,
Composed of members of the Board of Directors, it
Asia and Europe. Among these companies are also Redecard
works to ensure that the sustainability practices do
S.A., a subsidiary of Itaú Unibanco Holding S.A., and Itaúsa –
not stray far from our values and principles. It is also
Investimentos Itaú S.A.
responsible for observing local and foreign standards,
trends and discussions related to the topic. This
In addition to this important achievement with respect to
Committee meets annually. (Profile 4.9)
our employees, Itaú Unibanco highlights the fact that it is
the only Latin American bank to be included in this index
since its creation in 1999.
32
Outlook and
strategies
26
Vision of
sustainability
32
Climate change
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Fight against money
laundering and
unlawful acts
Banco Nacional de
Desenvolvimento
Economico e Social (Brazilian
Development Bank – BNDES)
–Proesco (Energy Efficiency)
Emissions Inventory
Green IT
Principles for
Responsible
Investments
Environmental
Insurance
Fundo Itaú
Excelência Social
(Social Excellence
Itaú Fund - FIES)
IC – Credit line for
small companies
Program for
Employees
Instituto Unibanco Estratégia
Nacional de Educação
Financeira (Unibanco
Institute National Strategy
for Financial Education)
Fundação Itaú
Social: Jogo do Uso
Consciente (Itaú
Social Foundation:
Conscious Use Game)
Capability of Micro
Entrepreneurs
Supplier
Contracting
Policy
Pacto pela Erradicação
do Trabalho Escravo
(Pact for the Eradication
of Slave Labor)
Crises
Management
International Finance
Corporation (IFC)
– Credit lines for
carbon projects
BNDES Proesco (Forest
Financing)
Sustainability
Report
Ethics
Management
Equator Principles
University Loan
Personal banking:
Credit Guide and
Lectures
Fundo Itaú Índice
de Carbono (Itaú
Carbon Index Fund)
Environmental
Round
(Corporations)
Corporate
Governance
Partnership with
Organizaçoes da Sociedade
Civil de Interesse Público
(Oscips - Public Interest Civil
Society Organizations)
(Emerging Markets
Project): Extreme
Makeover and
Comunidade de Empresas
(Corporate Community)
Fundo Itaú Ecomudança
(Eco Changes Itaú Fund)
Projeto Eficiência
(Efficiency Project)
Transparency and
governance
Microinvest
Microfinance
Social and
Environmental
Risk Policy
Eco-efficiency
Social and
environmental
criteria
Wealth Management
Services (WMS):
Education for Investors
Uso Consciente do
Dinheiro Program
Financial
education
Solucione
(Solve It)
Consumer
Protection
Agencies
Ombudsman’s
Office
Todos pelo Cliente
Client satisfaction
Seguro Mulher
(Women’s Insurance)
Accessibility
Diversity
program
Diversity
AccountAbility 1000
(AA 1000) – corporate
responsibility standards
Associação dos Analistas e
Profissionais de Investimento do
Mercado de Capitais (Association
of Investment Analysts and
Professionals of the Capital
Markets – Apimec) meetings
Programa Itaú de
Finanças Sustentáveis
Itaú Sustainability
Dialogues
Ombudsman’s
Office
Sustainable
Ideas Databank
Client Forum
Fale
Francamente
(Speak Frankly)
Stakeholder
engagement
Sustainability incorporated into Itaú Unibanco’s business:
33
Corporate
governance
Corporate governance
Establishing
Strategies
• Governance structures
• Accountability
• Risk Management
• Crisis Management
• Ethics management
The corporate governance structure of Itaú
Unibanco is responsible for determining strategies,
making decisions and monitoring the bank’s
relationships with its stockholders, employees and
stakeholders, ensuring the lasting creation of value
and sustainable development conditions for the
institution and society in general.
At Itaú Unibanco, governance is supported by the work of
five committees: Audit, People, Appointment and Corporate
Governance, Risk and Capital Management and Strategy. These
five committees report to the Board of Directors, which is
responsible for the election or appointment of their members.
The promotion of ethics and transparency is indispensable for
the success of this continuous management improvement
On the website
Learn more about our risk
management process and the
principles of our Code of Ethics.
process. For this reason, we have independent members in the
Board of Directors and in our many committees.
For more information on Itaú Unibanco’s corporate governance
policies and practices and to see the qualifications of the
members of the highest governance body of the company,
please visit www.itau-unibanco.com.br/ri. (Profile 4.7)
On the iPad and in the Magazine
Refer to the note “Vitória da Transparência”
(The Victory of Transparency), about
the recognition as the most transparent
company on the Ibovespa received by Itaú
Unibanco in 2010.
Corporate governance
Corporate Structure on 12/31/2010 (Profile 2.8)
Egydio de Souza
Aranha Family
Moreira Salles Family
The appreciation of ethics and transparency is
indispensable for the success of this continuous
management improvement process.
Governance structures (Profile 4.1 and 4.2)
(*) Excluding Controlling Stockholders and Treasury Shares
Average traded volume (BM&FBovespa + NYSE)
Management of Itaú Unibanco Holding S.A.
Breakdown of Preferred
Shares on 12/31/2010
(R$ millions)
Stockholders’
General Meeting
16.28%
Fiscal Council
874
641
Board of Directors
242
650
559
8.38%
189
319
185
95
79
106
224
2005
2006
207
191
632
452
2007
NYSE (ADR)
20.38%
368
2008
2009
Audit
Committee
443
Appointment
and Corporate
Governance
Committee
Internal
Audit
BM&FBovespa
(ON+PN)
Foreigners
on the NYSE
Independent
Audit
Executive Board
Foreigners on the
BM&FBovespa
Disclosure
and Trading
Committee
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Accountability
Risk and Capital
Management
Committee
2010
Brazilians on the
BM&FBovespa
Governance
structures
People
Committee
Risk Management
Crisis Management
Ethics management
Strategy
Committee
International
Advisory Board
Corporate governance
Board of Directors
Composition of the Board of Directors (Profile 4.3)
A joint committee composed of 13 members, three of
Chairman
whom are independent professionals, which is responsible
Pedro Moreira Salles
for determining the business strategies and management
in the efforts toward solid and sustainable growth. Among
Vice-Chairmen
the other functions of the Board of Directors are: selecting
Alfredo Egydio Arruda Villela Filho
the members of the committees, electing and dismissing
Roberto Egydio Setubal
members of the Executive Board, determining their
Directors
functions and supervising their work.
Alcides Lopes Tápias (independent)
Alfredo Egydio Setubal
Candido Botelho Bracher
Itaú Unibanco’s Board of
Directors is a joint-committee
comprising 13 members; three
of them are independent
professionals.
38
Governance
structures
38
Fernando Roberto Moreira Salles
Francisco Eduardo de Almeida Pinto
Gustavo Jorge Laboissiere Loyola (independent)
Henri Penchas
Israel Vainboim
Pedro Luiz Bodin de Moraes (independent)
Ricardo Villela Marino
Accountability
Risk Management
Crisis Management
Ethics management
42
43
52
53
Executive Committees
Retail Banking - Individuals
Itaú Unibanco has two executive committees, which
Geraldo José Carbone
are responsible for managing and representing the
institution. The Executive Committee of Itaú Unibanco S.A.
is responsible for all operations, except for those of the
wholesale banking segment, which are the responsibility
Corporate Pension, Capitalization,
Institutional Relations and Marketing
José Castro Araújo Rudge
of Itaú BBA’s Executive Committee. In 2010, Alexandre de
Consumer Credit
Barros, Executive Vice-President for Technology, joined Itaú
Márcio de Andrade Schettini
Unibanco’s Executive Committee and Antonio Carlos de
Oliveira left his office as Executive Vice-President after 40
Itaucred - Vehicles, Real Estate Loans and Consortium
years with the bank.
Marco Ambrogio Crespi Bonomi
Composition of the Executive Committee
of Itaú Unibanco S.A.*
Corporate Banking
Ruy Villela Moraes Abreu
Chairman
Risks and Finance
Roberto Egydio Setubal
Sérgio Ribeiro da Costa Werlang
Technology
Operational Risk, Efficiency and Compliance
Alexandre de Barros
Marcos de Barros Lisboa
Wealth Management & Services
People and External Units
Alfredo Egydio Setubal
Ricardo Villela Marino
* In early 2011 there were changes on the Executive Committee. The new
structure can be found on www.itau-unibanco.com.br/ri
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
39
Corporate governance
Composition of the Executive Committee of Itaú BBA
Audit Committee
Chairman
The Audit Committee is responsible for the quality and
Candido Botelho Bracher
integrity of our financial statements, the compliance with
legal requirements and regulations, and the quality of the
Vice-Chairmen
internal and the independent audit and risk management
Commercial and Products
control systems.
Alberto Fernandes
Composition of the Audit Committee
Institutional Treasury
Chairman
Daniel Luiz Gleizer
Gustavo Jorge Laboissiere Loyola
Investment Banking
Members
Jean-Marc Robert Nogueira Baptista Etlin
Alcides Lopes Tápias
Alkimar Ribeiro Moura
40
Retail Operations and Business
Eduardo Augusto de Almeida Guimarães
Rodolfo Henrique Fischer
Guy Almeida de Andrade
Governance
structures
40
Accountability
Risk Management
Crisis Management
Ethics management
42
43
52
53
Personnel Committee
Composition of the Risk and Capital Management Committee*
The Personnel Committee guides the development of staff
Members
and retention of talent, in addition to setting guidelines for
Candido Botelho Bracher
recruitment, evaluation and career planning policies. It is also
Francisco Eduardo de Almeida Pinto
responsible for analyzing and approving the compensation
Gustavo Jorge Laboissiere Loyola
packages proposed for officers.
Pedro Luiz Bodin de Moraes
Roberto Egydio Setubal
Composition of the Personnel Committee
Chairman
Strategy Committee
Pedro Moreira Salles
The main function of the Itaú Unibanco Strategy Committee is to discuss and
analyze topics that might have an impact on the bank’s businesses. The members
Members
are elected annually and their task is to assist the Board of Directors in setting
Candido Botelho Bracher
business-related strategic guidelines.
Francisco Eduardo de Almeida Pinto
Ricardo Villela Marino
Composition of the Strategy Committee*
Roberto Egydio Setubal
Members
Henri Penchas
Appointment and Corporate Governance Committee Israel Vainboim
One of the main objectives of the Appointment and Corporate
Pedro Moreira Salles
Governance Committee is to monitor the governance of the
Ricardo Villela Marino
bank, particularly in matters related to the Board of Directors.
Roberto Egydio Setubal
This Committee is also responsible for helping the Chairman of
the Board make decisions on the appointment of the members
International Advisory Board
of the Board of Directors.
The objective of the International Advisory Board, chaired by former Minister of
Finance Pedro Malan, is to help expand our presence in the international financial
Composition of the Appointment and Corporate
Governance Committee*
community, as we consolidate our position as the largest and best national
private bank in Brazil.
Members
Alfredo Egydio Arruda Villela Filho
Composition of the International Advisory Board
Alfredo Egydio Setubal
Chairman
Fernando Roberto Moreira Salles
Pedro Sampaio Malan
Henri Penchas
Israel Vainboim
Members
Pedro Moreira Salles
André Lara Rezende
Carlos Ghosn
Risk and Capital Management Committee
Jacob A. Frenkel
The Risk and Capital Management Committee monitors and
Marcel Telles
reviews policies and helps determine the institution’s general
Pedro Aspe
conduct when facing market, finance, credit, liquidity, legal, image
Raghuram Rajan
and operational risks.
Pedro Moreira Salles
Ricardo Villela Marino
Woods Staton
* At the beginning of 2011, there were changes in the Executive Committee. The new structure can be seen on the website www.itau-unibanco.com.br/ri.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
41
Corporate governance
Accountability
Ethics and transparency
Itaú Unibanco is one of the largest banks in the world,
In 2010, through Itaú Asset Management, we also
with a market value of over R$179.6 billion at the end
consolidated our voluntary adherence to the Principles
of 2010 and shares traded on three stock markets
for Responsible Investment (PRI), a UN initiative
– BM&FBovespa, BCBA and NYSE. Because of this,
designed to guide the financial and capital markets in
accountability, based upon ethical and transparent
the pursuit of sustainable development and integration
values and principles, is one of the priorities for our
of environmental, social and governance topics in the
management.
management of organizations. Developed in 2005, the
PRI today has over 730 signatories worldwide.
In its history, Itaú Unibanco has incorporated monitoring
and accountability instruments that are internationally
The organization is also fully active in terms of
recognized, such as the Global Compact, the Equator
accountability, providing public information that is
Principles, the GRI guidelines, the United Nations
clear, transparent and timely. In 2010, we held 22
Environment Programme Finance Initiative, the Carbon
Apimec meetings with more than 2,500 participants
Disclosure Project, the GHG Protocol Initiative and the
in Brazil, in addition to 19 meetings abroad. These
AA 1000 standard. Among the Brazilian initiatives, we
meetings represent an important communication
are signatories of the Pact for Eradicating Slave Labor
channel for local and foreign investors to better
and the Green Protocol. Our business practices are in
understand the practices, policies and strategies
compliance with the code of ethics of the financial sector
behind the bank’s investment decisions.
and are aligned with the trends indicated by the DJSI
and the São Paulo Stock Exchange ISE, on which we have
been included since their creation, among other market
recognition. (Profile 4.12)
The promotion of ethics and
transparency is indispensable
for the success of this
continuous management
improvement process.
In essence
Transparency and governance…
...are requirements for responsible
corporate work.
Our Board of Directors has three
independent professionals and we have
been present, for 11 consecutive years, in
the Dow Jones Sustainability World Index
of the New York Stock Exchange.
42
Governance
structures
Accountability
Risk Management
36
30
42
43
Crisis Management
Ethics management
52
53
Risk management
Optimizing opportunities
Risk management is considered by Itaú Unibanco an essential
instrument for maximizing the use of capital and selecting the
In essence
best business opportunities, with a view to achieving the best
Social and environmental criteria
risk-return ratio for our stockholders.
Main risk categories
Market Risk – possibility of losses resulting from
fluctuations in the market value of the positions held
by a financial institution, as well as its financial margins,
including the risks of transactions subject to variations
in the foreign exchange rate, interest rates, and share
and commodity prices. The treatment given to market
risk is described in a specific circular.
Credit Risk – possibility of losses related to non-
In order to integrate sustainability into the
business, we always seek to enhance the
social and environmental criteria we use.
In addition to subscribing to the
Equator Principles and the Principles for
Responsible Investment (PRI), we take
social and environmental requirements
into consideration in all our business - from
financing to investments.
compliance by the borrower or counterparty with its
financial obligations under the agreed-upon terms, leading
to the depreciation of a loan agreement due to the
downgrading of the borrower’s risk rating, to lower gains or
Risk management process
remuneration, to benefits granted in a renegotiation and to
Risk management at Itaú Unibanco is a process in
recovery costs.
which: (Profile 4.11)
Liquidity Risk – possibility of imbalances between tradable
• the existing and potential risks of a transaction are
assets and liabilities falling due – “mismatches” between
identified;
payments and receipts – that may affect the institution’s
payment capability, taking into consideration the different
currencies, settlement terms, rights and obligations.
Operational Risk – possibility of losses resulting from
• the risk limits are established, in compliance with all business
strategies of the bank;
• policies, procedures and methodologies that are
failure, deficiency or inadequacy of internal processes,
consistent with the previously established risk limits are
people, systems or external events. It includes the legal risk
approved;
associated with inadequacy or deficiency in contracts signed
by the institution, as well as sanctions for non-compliance
with legal provisions and compensation for damages to third
• the risk portfolio of the bank is managed in relation to the
best risk-return ratios;
parties arising from the activities of the institution.
• the allocation of capital is consistent with the risks
Underwriting Risk – risk arising from an adverse economic
incurred.
situation that goes against the expectations of the insurance
company at the time of preparation of its underwriting
policy regarding the uncertainties existing when provisions
are estimated.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
43
Corporate governance
This process permeates the whole institution, whose
This structure is responsible for monitoring compliance
senior management, by means of committees,
with the regulations required by the leading institution
determines the global objectives that are passed on
of the conglomerate. Therefore, Itaú Unibanco manages
as targets and limits to the business units that manage
proprietary IT systems to fully comply with the capital reserve
the risks. The control units, in turn, provide feedback to
requirements related to risks of fixed rate operations and
the senior management, reporting the results of the
exposure to foreign currencies, according to measurements
consolidated risk monitoring.
and models of the Central Bank of Brazil (BACEN). It also
coordinates actions for verifying adherence to the qualitative
and quantitative requirements established by the proper
authorities for observing the minimum capital requirements.
Global Targets and
Risk Limits
The consolidation of the portfolios is already a mature
approach to credit and market risk, whereas for operational
Allocations Based
on Risk-Return
risks, work is being developed for the same purpose. The
Consolidation
modeling of the operational risk, which poses difficulties
Business
Units
Transactions
given the multidisciplinary nature of the risk and short
amount of time it has been observed and considered, is an
area in which the institution has made significant progress,
allowing increased accuracy in the allocation of capital for
Risk
Information
covering this kind of risk.
The objective of centralized control is to provide the
bank’s senior management with a global view of the
conglomerate’s exposure to risks so as to optimize and
Centralized control
speed up corporate decisions.
The Market, Credit, Liquidity, Operational and
Underwriting risk control structure is centralized at Itaú
In order to centralize the monitoring, we structured the
Unibanco in order to ensure that all different control
areas aimed at the consolidated management of credit,
units of the conglomerate follow the established
market, liquidity, operational and underwriting risks. Our
policies and procedures. The identification, aggregation
aims were to make the concepts used in risk management
and monitoring of risks are carried out in such a way
consistent and provide information for monitoring risk in
to provide the necessary information to the four above
the many different units.
mentioned commissions of the senior management.
To learn more about Itaú Unibanco’s risk management,
please visit www.itau-unibanco.com.br/ri.
The identification of risks aims at mapping out the
internal or external risk events that might affect the
strategies of the business and support units and the
accomplishment of their goals and possibly impact
allocated capital and results.
44
Governance
structures
Accountability
36
30
42
Risk Management
44
Crisis Management
Ethics management
52
53
Our Social and Environmental Risk Policy for
Corporate Credit was developed based on
internationally acknowledged policies and
principles, such as the Equator Principles.
Social and environmental risk
recognized policies and principles such as the Equator Principles.
On its launch in 2007, it was submitted to our stakeholders for
Financing for sustainable development
external consultation, with the international standard AA 1000 as
The analysis of the social and environmental risk underpins
a reference.
our management and is a strategic tool for integrating
sustainability with business. When analyzing the management
Medium-sized company segment
practices of its clients with regard to their impacts and risks
In the medium-sized company segment served by Itaú Unibanco,
for society and the environment, Itaú Unibanco seeks to foster
clients are classified according to their potential social and
sustainable development and improve its risk profile.
environmental risk – High (A), Medium (B) or Low (C). Companies with
an A or B social and environmental classification that are involved
There are two main tools that guide the social and
in loans equal to or higher than R$5 million undergo a social and
environmental risk analysis at the conglomerate: the Social
environmental risk analysis and can receive favorable or unfavorable
and Environmental Risk Policy for Corporate Credit and the
opinions. All opinions issued have an expiration date and are
Equator Principles.
monitored by the bank according to pre-established standards. In
addition to the classification of projects as High (A), Medium (B) and
The Social and Environmental Risk Policy for Corporate
Low (C) risk, the Banned List and the Restricted List are also consulted.
Credit outlines criteria and establishes tools that integrate
The Banned List describes the activities or practices of companies with
social and environmental issues with the process of granting
which the bank does not wish to have a relationship, such as those on
corporate credit. It was developed based on internationally
the Black List issued by the Ministry of Labor and Employment.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
45
Corporate governance
Social and environmental opinions issued by Itaú Unibanco in 2010 for
the medium-sized company segment (FS11)
Social and
environmental
classification
Favorable social and
environmental opinion
A
1,161
Unfavorable social and
environmental opinion
20
Practice changes
8
B
1,351
23
7
Total
2,512
43
15
Large-sized company segment
In the large-sized company segment served by Itaú BBA, the
Unibanco’s Social and Environmental Risk Policy,
social and environmental risk analysis covers the analysis of
based on the profile of IBBA clients.
risks and impacts, in addition to the evaluation of the social
and environmental management capability of both projects
In 2010, 16 corporate finance projects were
and economic groups.
analyzed and contracted based on the criteria
and tools set by the Social and Environmental
The Internal Procedures Handbook was prepared in order
Risk Policy, representing a total investment of
to help in the implementation of the guidelines of Itaú
R$5.2 billion.
Corporate finance projects contracted (under the Social and Environmental criteria)1 in 2010 (FS11)
Number of projects
contracted
Total investment
(in millions of reais)
Itaú BBA’s share
(in millions of reais)
Classification2 of the corporate finance projects
B+
12
4,835.6
1,215.8
C
4
365.1
174.2
Retail
4
365.1
174.2
Sugar and ethanol
2
2,925.0
690.0
Electric energy
9
1,689.5
401.9
Chemical industry
1
221.1
123.9
Southern Brazil
2
343,691.0
45.2
Southeastern Brazil
6
1,298,101.0
434.9
Midwestern Brazil
3
3,067.0
700.6
Northeastern Brazil
1
126.8
35.0
Brazil
4
365.1
174.2
16
5,200.73
1,390.01
Industry of the corporate finance projects
Location of the corporate finance projects
3
Total corporate finance projects contracted
Total
Notes: 1 – Social and Environmental Policy for Corporate Credit. 2 – Classification of the social and environmental risk of projects according to the Social and Environmental Risk
Policy for Corporate Credit. 3 – Projects implemented in more than one region of Brazil (e.g. horizontal integration). N.B.: unlike the project finance operations, the corporate
finance projects are not usually approved by a credit committee as specific operations; they fall into existing limits.
46
Governance
structures
Accountability
36
30
42
Risk Management
46
Crisis Management
Ethics management
52
53
In addition to the long-term financing analysis for corporate
finance and project finance loans, IBBA analyzes products
related to structured projects under the Social and
Environmental Risk Policy criteria. We present below the figures
related to the analysis made for bridge loans and guarantees for
structured projects.
Other operations related to project finance contracted in 2010
Bridge loan1
Guarantee2
Total
Number of operations contracted
Number of operations
2
4
6
Total investment (in millions of reais)3
1,808.6
4,347.0
6,155.6
Itaú BBA’s share (in millions of reais)
223.1
571.5
794.6
A+
1
3
4
B+
1
1
2
Northeastern Brazil
0
2
2
Southeastern Brazil
2
1
3
Brazil5
0
1
1
Amounts of the operations contracted
Classification of the operations contracted
4
Location of the operations contracted
Notes: 1 - Bridge loans for project finance.
2 – Guarantees for structured projects.
3 – If the amount is reported in a different currency, the exchange rate of the date of the contract was used.
4 – Classification of the social and environmental risk of the project according to the Social and Environmental Risk Policy for Corporate Credit.
5 – Projects implemented in more than one region of Brazil (e.g.: horizontal integration).
Other operations related to financing projects approved
by IBBA but not contracted1 in 2010
Bridge loan2
Guarantee3
Total
Number of operations approved (not yet contracted)
Number of projects
5
2
7
1,093.0
255.0
1,348.0
Amounts of operations approved (not yet contracted)
Volume approved of IBBA’s share (in millions of reais)
Location of operations approved (not yet contracted)
Northeastern Brazil
2
1
3
Southeastern Brazil
2
1
3
Southern Brazil
1
0
1
Notes: 1 – Contracting did not take place in 2010 for a number of different reasons.
2 – Bridge loans for project finance.
3 – Guarantees for structured projects.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
47
Corporate governance
Project finance
The social and environmental risk analysis for
granting credit under project finance is based on the
verification of the client’s compliance with the criteria
set by the Equator Principles.
In 2004, Itaú and
Unibanco were the first
two banks from emerging
markets to adopt the
Equator Principles.
Equator Principles
Created in 2003, the Equator Principles, to which
• Land acquisition and involuntary resettlement;
adherence is voluntary, consist of a set of social and
environmental criteria and guidelines that must be
• Sustainable natural resource and biodiversity
observed by the signatory banks when identifying and
management;
evaluating the risks and impacts in project finance
operations. These Principles use the Performance
• Impacts on indigenous peoples and their culture,
Standards (http://www.ifc.org/ifcext/sustainability.nsf/
traditions and values;
Content/PerformanceStandards) and the Environment,
Health and Safety Guidelines (http://www.ifc.org/ifcext/
• Protection of cultural and archeological heritage.
sustainability.nsf/Content/EnvironmentalGuidelines) of
In 2004, Itaú and Unibanco were the first two banks from
the IFC as parameters.
emerging markets to adopt these standards. Between
The main aspects to be considered by the signatories of the
September 2008 and March 2010, Itaú Unibanco chaired
Equator Principles when granting credit for project finance are
the Equator Principles Steering Committee, a landmark for
those defined by the IFC’s Performance Standards, namely:
the dissemination of good practices in emerging countries,
particularly in Latin America.
• Social and environmental management system;
For 2011, the bank’s challenge is to maintain its active
participation in the Equator Principles Steering Committee,
• Labor and working conditions;
in addition to contributing to the strategic review of the
• Pollution prevention and reduction, minimization of waste
Equator Principles and the IFC’s Performance Standards. The
and management of solid and chemical waste;
bank also intends to increase its capability to address the
climate change topic by development, in the medium and
• Protection of human rights and of community health and
long terms, of mitigation and adaptation instruments and
safety;
measures – including financing mechanisms.
48
Governance
structures
Accountability
36
30
42
Risk Management
48
Crisis Management
Ethics management
52
53
We present below the figures that reflect the social and
environmental risk analyses made for project finance in 2010:
Project finance1 contracted (under the Equator Principles criteria) in 2010 (FS11)
Number of projects contracted
Total investment
(in millions of reais)
Itaú BBA’s share
(in millions of reais)
Classification2 of project finance
B
2
242.7
90.5
Electric energy
1
37.5
10.5
Sanitation
1
205.2
80.0
Southeastern Brazil
1
205.2
80.0
Northern Brazil
1
37.5
10.5
2
242.7
90.5
Industry of project finance contracted
Location of project finance contracted
Total project finance contracted
Total
Notes: 1 – Project finance as defined by the Basel Accord at http://www.bis.org/publ/bcbs107.pdf
2 – See Principle 1, available at http://www.equator-principles.com/resources/equator_principles.pdf
Project finance1 approved by Itaú BBA, but not yet contracted2
(under the Equator Principles criteria) in 2010 (FS11)
Number of projects approved and not yet
contracted
Volume approved of IBBA’s share (in
millions of reais)3
Industry of project finance approved (not yet contracted)
Electric energy
3
380.0
Mining
1
73.2
Agribusiness
1
418.0
Location of project finance approved (not yet contracted)
Northeastern Brazil
4
453.2
Northern Brazil
1
418.0
5
871.2
Total project finance contracted (not yet contracted)
Total
Notes: 1 – Project finance as defined by the Basel Accord at http://www.bis.org/publ/bcbs107.pdf
2 – Contracting did not take place in 2010 for a number of different reasons.
3 – If the amount is reported in a different currency, the exchange rate of the date of the most recent approval by a committee was used.
N.B.: the final classification of the project will be made until the date of the contract (see Principle 1, available at http://www.equator-principles.com/resources/equator_principles.pdf ).
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
49
Corporate governance
The social and environmental analysis of IBBA may
result in the refusal of the project finance based
Loan, leasing and other
credit operations
on its risks and impacts. In 2010, one project was
PUBLIC SECTOR
Electric energy generation, transmission and distribution
Chemical and petrochemical
Other
PRIVATE SECTOR
CORPORATIONS
INDUSTRY AND COMMERCE
Food and beverages
Auto parts and accessories
Agricultural capital goods
Industrial capital goods
Pulp and paper
Fuel distribution
Electric and electronic products
Pharmaceutical
Fertilizers, insecticides and pesticides
Tobacco
Import and export
Medical and hospital materials and equipment
Construction materials
Metallurgy and iron and steel
Furniture and wood
Chemical and petrochemical
Supermarkets
Light and heavy vehicles
Clothing
Other/Commerce
Other/Industry
SERVICES
Civil construction (contractors)
Finance
Electric energy generation, transmission and distribution
Holding
Real Estate
Media
Service providers
Health
Telecommunications
Transportation
Other services
PRIMARY SECTOR
Agroindustry
Mining
OTHER/CORPORATIONS
INDIVIDUALS
Credit cards
Consumer credit /Current accounts
Real estate loans
Vehicles
GRAND TOTAL
In thousands of reais
1,165,860
%
0.4
turned down.
565,373
0.2
272,565
327,922
295,936,026
161,918,219
85,113,228
14,344,592
3,867,481
847,518
5,172,365
2,361,801
1,893,279
6,945,799
2,098,890
1,313,974
373,160
1,996,909
918,736
4,398,567
6,876,259
2,710,836
5,330,789
1,088,887
5,942,477
7,682,679
4,940,944
4,007,286
60,313,047
3,317,358
5,331,036
5,216,304
3,037,021
9,568,362
2,697,881
4,487,883
1,953,773
1,058,677
11,931,044
11,713,708
13,948,391
11,742,958
2,205,433
2,535,553
134,017,807
35,545,508
27,557,658
10,790,484
60,124,157
297,101,886
0.1
0.1
99.6
54.5
28.6
4.8
1.3
0.3
1.7
0.8
0.6
2.3
0.7
0.4
0.1
0.7
0.3
1.5
2.3
0.9
1.8
0.4
2.0
2.6
1.7
1.3
20.3
1.1
1.8
1.8
1.0
3.2
0.9
1.5
0.7
0.4
4.0
3.9
4.7
4.0
0.7
0.9
45.0
12.0
9.3
3.6
20.2
100.0
To learn more about the social and environmental risk
analysis of the real estate loan, vehicle financing and
insurance segments, see their respective chapters.
Loan portfolio classification
Itaú Unibanco operates in multiple business lines
from different segments of the economy. The
loan portfolio represented 39.3% of total assets in
December 2010; on that date, the reference equity
required for loan operations was 93.2%, which shows
that personal loans and corporate credit are the
bank’s main products. (FS6)
Staff training
Also in 2010, IBBA offered an e-learning training course on
Entendendo o que é Risco Socioambiental (Understanding what
Social and Environmental Risk Is) to the entire commercial area
and employees from the back office areas that are involved
in the social and environmental risk assessment process. An
in-person training course was also provided to the employees
of Itaú Europa. (FS4)
Stakeholder engagement
The objective of the relationships Itaú Unibanco
maintains with certain clients and companies in which
it holds an investment or of which it is a partner is to
disseminate knowledge about social and environmental
risk management issues. The interactions take place via
announcements, newsletters, in-person meetings, visits, calls
and independent consultations, among others, depending
on the activity developed by each stakeholder and their
geographic location.
The social and environmental evaluation and risk
management practices related to project finance
operations carried out by Itaú BBA, as well as their
international circulation, are essential for establishing
partnerships, particularly with clients and other
financial institutions. In this regard, the bank has
50
Governance
structures
Accountability
36
30
42
Risk Management
50
Crisis Management
Ethics management
52
53
worked together with these stakeholders to develop
criteria and guidelines based on international social
and environmental management standards, which
will be subsequently applied to projects developed by
companies, many of which are IBBA clients.
In 2010, we highlight the active participation in the strategic
review of the Equator Principles, which was coordinated by
the Steering Committee of these Principles; the review of
the IFC’s Performance Standards, which was coordinated
by the IFC itself; and the Advisory Group Meeting of the
Business and Biodiversity Offsets Programme (BBOP),
organized by BBOP to discuss the best practices in
biodiversity offsets. (FS5 and FS10)
Social and environmental audit
We have an internal audit department for evaluating the
implementation of social and environmental policies that
reports directly to Itaú Unibanco’s Board of Directors and
is technically supervised by the Audit Committee. The
department operates in all the companies and all the
processes of the conglomerate.
Regular evaluations of the Social and Environmental Risk
Policy for Corporate Credit are performed by testing the
effectiveness of compliance with the policy. As for project
financing, compliance with the Equator Principles is also
evaluated. The results of these evaluations are reported
to the executive officers, the Audit Committee and the
Sustainability Committee.
The Sustainability Policy is also regularly evaluated and the
results are reported to the executive officers and forwarded
to the CEO, the Audit Committee and the Chairman of the
Board of Directors.
The evaluation of the social and environmental risks is
taken into consideration for audits performed in Brazil
and in the foreign units. The internal audit department of
Itaú Unibanco uses the international auditing standards
of the Institute of Internal Auditors. (FS9) (Sector
Management Approach)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
We invest constantly in the
training of our employees from
the commercial, products and
corporate credit areas in order
to improve our Social and
Environmental Risk Policy.
51
Corporate governance
Crisis management
Taking care of business and reputation
The year 2010 was also characterized by the expansion of the
Itaú Unibanco’s Corporate Crisis Management Program
Corporate Crisis Management Program in the bank’s Brazilian
is continuously improved through the joint efforts of all
and foreign operations, a process that began in 2009. In Brazil,
departments. It is an important tool for the company’s business
167 interviews were conducted aimed at recycling the program.
sustainability and reputation management, and it has been
In addition, 60 new focus agents were appointed, representing
proven effective with each passing day.
a growth of 43% in relation to the number of agents in 2009.
Abroad, the program was implemented in six new units, located
Thanks to the business continuity plan, which is part of the
in Uruguay, Japan and the United States, with the appointment
program’s strategy, the bank managed to keep 95% of its
of 26 new focus agents (an increase of 21%).
business in Chile up and running during the emergency
situation caused by an earthquake in that country in
Evolution of the Corporate Crisis Management Program in 2010:
February 2010.
• Expansion to social networks on the Internet, aiming at
The Corporate Crisis Management Program is based on a
• Distribution of an Orientation and Awareness Guidebook
managing the bank’s reputation;
multidisciplinary management model designed to coordinate
to the Retail Network, which reached 3,000 employees at
quick response actions to any crisis, avoiding human and/
the bank’s branches (including the Uniclass Itaú and Itaú
or financial losses and any harm to the bank’s reputation. Its
operation is structured on three levels (strategic, tactical and
operational) and it is supported by the Crisis Management
Personnalité segments);
• Distribution of safety guidebooks to 15 new administrative
centers;
• Unification of the emergency department;
Policy, which covers the entire conglomerate.
• Qualification of 56 new centers of the bank;
Focus agents are responsible for the program’s success. They are
representatives appointed to work on resolving crises, assisting
• Expansion of the program’s database to support the team’s
knowledge and the development of crisis plans.
in the resumption of business, monitoring problems and
improving processes with a focus on prevention.
The Corporate Crisis Management Program is
based on a multidisciplinary management model
designed to coordinate quick responses to any
crisis, avoiding human and/or financial losses and
any harm to the bank’s reputation.
52
52
Governance
structures
Accountability
Risk Management
36
30
42
43
Crisis Management
Ethics management
52
53
To monitor trends and current demands related to
ethics, in 2010 we improved the Policy of Ethics and
Combating Corruption and Bribery, which establishes
guidelines that complement the Code of Ethics.
Ethics management
Responsible leadership
Itaú Unibanco conducts business in an ethical and
the values that should be put in place to resolve dilemmas,
responsible way. Accordingly, we ensure solid growth and
conflicts of interests and legal issues. (Profile 4.8)
leadership based on values and principles shared by all of our
employees.
To monitor trends and current requirements related to ethics, in
2010, we improved the Policy of Ethics and Combating Corruption
One of the main instruments for achieving this goal was the
and Bribery, which establishes guidelines that complement the
consolidation of the Itaú Unibanco Code of Ethics, which was
Code of Ethics. (Society Management Approach)
launched in February 2010 and distributed to all employees
in Brazil and abroad. Its dissemination was supported by
To disseminate and ensure compliance with this set of
various communication actions.
guidelines in the organization’s culture, Itaú Unibanco has
an Ethics Program that consists of the modules described
Our Code of Ethics was developed based on four major
in the table below. The management of this program is the
principles: Identity, Good Faith, Interdependency and
responsibility of Itaú Unibanco’s ethics and conduct joint
Excellence. This structure allows for a broader reflection on
committees. In 2010, 41 meetings were held.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
53
Business
Business
Growth in
Brazil and
abroad
• Commercial Banking
• Itaú BBA
• Consumer credit
• Insurance, private pension and capitalization
• Business abroad
The year 2010 was characterized by the full
integration of the activities of Itaú Unibanco.
We reached the end of the year with the certainty that the bank is
now in a position to take advantage of the growth opportunities
that the Brazilian and foreign markets have to offer and totally
focus on satisfying the needs of clients from all segments.
The most visible sign of this, and the one that symbolized the
completion of this movement, was the integration of all the
branches. Just 720 days after the announcement of the merger
between Itaú and Unibanco, an unprecedented operation in
the history of the Brazilian financial industry, we were able to
complete the migration of the entire network, in record time, to
start offering clients a new concept of space and relationships.
On the website
Access the “Overhauled
Appearance” box to get to know
all the details of the new layout of
the Itaú Unibanco branches.
Even though a major effort was concentrated on structuring this
new bank, it is noteworthy that we were able to keep pace with
the growth of the Brazilian market. And, in some segments, there
were gains in market share greater than those of the competition
- notably in vehicle financing, an operation in which we are
leaders in Brazil and which maintained its successful track record
in 2010. Itaú Unibanco holds a third of the financing market in
Brazil, which accounts for 55% of the bank’s total personal loans.
We are the world’s second largest operation by volume in the
banking sector. This is the result of investments in after-sale
services, which takes 1 million calls per month, and 60% of these
are successfully handled electronically.
On the iPad and in the Magazine
Read in the section “Integrados e Prontos
Para Crescer” (Integrated and Ready to
Grow), the article that addresses how
the merger between Itaú and Unibanco
impacts the day-to-day activities of many
stakeholders involved in this process. See
also how the life of a seamstress from Rio
de Janeiro changed for the better with
the aid of microcredit.
Business
Commercial banking
Itaú Unibanco is also among the ten largest credit card
of the above mentioned risks are controllable or not. For
operators in the world, administering 56 million active
the controllable risks, the organization should evaluate
credit cards. In Brazil, credit cards have become the
whether it should accept or minimize them, through the
Serving different stakeholders
companies involved and over 1,600 people working just in
primary banking instrument for individuals, requiring
implementation of controls. As for those that cannot be
The commercial banking segment offers a wide range
logistics and transportation.
special attention by the bank in order to encourage
controlled, the organization must decide whether to reduce
of banking services to a diversified base of individuals
their conscientious use.
the level of business activity or to accept them, proposing
and companies. The services offered by this area include
During this period, communication with account holders
another possible solution that mitigates the indicated risks.
insurance, (private) pension and capitalization products,
was intense. Detailed information about new current
In foreign operations, which represent 10% of our
In all stages of the product flow, outsourcing processes
credit cards, asset management, credit products and
account data, passwords, products and service channels
earnings, we have also made significant progress. In
are evaluated by the areas involved, for the purposes of
customized products and solutions designed specifically to
were sent at least one month prior to the change.
Latin America, our growth focus was in retail activities,
identifying the risks and impacts for clients.
meet the demands of clients.
During the process, over 420,000 volumes were transported,
in which we have grown above the market average in
all countries where we operate, driven by the positive
The scope of application of the above mentioned policy
Retail banking
totaling around 1.1 million items delivered (26,000 chairs
economic climate in the region. The performance of
involves product and services development throughout
The new Itaú Unibanco branch model is the result of a
and 11,700 tables, 6,000 counters, 1,600 lighted logos, 8,000
Itaú Unibanco abroad has progressed significantly on
the entire holding company. The policy and its guidelines
number of surveys conducted with clients, consumers and
façade stars, 81,000 square meters of carpeting and 97,000
several fronts. We support the business of Brazilian
are published on the intranet so that they can be accessed
opinion makers. The result of this was the concept that
square meters of flooring).
companies abroad, which require different types of
by employees. Ensuring the implementation of this
the sum of the parts produced something greater than
services, such as credit and advisory on acquisitions,
policy is a responsibility of the Efficiency, Quality and
each individual part, translated into the campaign “1 + 1
We ended 2010 with 3,967 branches, 944 CSBs and 29,311
imports and exports, in addition to fundraising to
Ombudsman’s Office.
> 2”. It is greater because we deliver a new type of service
ATMs throughout Brazil.
to our more than 40 million clients. We created an entirely
finance local development. This internationalization
of Brazilian companies, coupled with the desire of
A monitoring control is being implemented, in which there
new relationship structure, which reflects the qualities
Itaú Unibanco has its own infrastructure to serve individual
foreigners to invest in Brazil, led us to restructure our
will be focus points for areas considered critical such as Legal,
of our brand and strengthens a bank that is increasingly
clients, which gives it a unique perspective on the financial
subsidiaries to fully meet our international clients’
Accounting, IT and Operational Risk, among others, to report
competent, personal, helpful and dependable.
lives of those with whom it interacts. To offer appropriate
needs.. (Economic Management Approach)
requests for the development or modification of ordered
products. (FS15) (PR3) (Product Management Approach)
products and services, the bank has segmented its services
The magnitude of the project required synergy between
for three types of clients:
Product development and labeling
all areas, so that together we could build an environment
The bank has a Corporate Policy for the Evaluation of
to meet the needs of our clients. Every detail has been
Retail Clients – with income of up to R$4,000, Itaú
Products, Operations and Processes, whose guidelines
painstakingly thought out to create branches whose
Unibanco’s main concern regarding this category, which is
are internally defined in circular HF 28 (financial holding).
environment is accessible to all the different stakeholders.
usually the starting point for relationships with the bank, is
to offer resources and technologies to make the electronic
This policy aims to establish a standard process of Product
Evaluation Governance for new products and products
being modified, ensuring that the plans, decisions and
efforts are consistent with trade and ethics policies and
authority levels established by existing regulations and
senior management. The evaluation of products, operations
and processes should cover all the major risks that are
faced, whether they are credit, market, tax, operational,
In Latin America, our growth
focus was in retail activities, in
which we have grown above
market average in all countries
where we operate, driven by
the positive economic climate
in the region.
The new branches have different areas to meet the different
channels more convenient. The Retail Client group contains
needs of each stakeholder, such as Itaú Uniclass and Itaú
the majority of the individual current account holders.
Negócios. This demonstrates the value proposition that the
bank wants to build with its clients, promoting transparency,
Itaú Uniclass – with income between R$4,000 and
responsible lending and financial education as a way of
R$7,000, the clients receive special service in over 1,000
perpetuating our relationships.
branches in Brazil. In accordance with the concept of
bringing modernity and financial education to the client,
We have renovated 998 Unibanco branches and 245
Itaú Uniclass has reformulated its website (www.itau.com.
Unibanco CSBs. This means that 1,200 facilities have been
br/uniclass). The new space on the web enables easy
integrated with 3,900 service units of Itaú, in more than 500
browsing and the presents products and services with 3D
conditions, changes in existing laws and technological
simultaneous renovation projects per month for six months.
animation, allowing the client to explore the pillars of the
advances). The process should also determine which
The project has mobilized more than 650 suppliers – 65
Feito para você crescer (Made for you to grow) positioning.
furniture suppliers alone – contributing to the creation of
On the website, users can find tips on how to organize
both direct and indirect jobs: There were 150 construction
budgets and planning.
legal, etc., and consider both internal (nature of the activity,
technical qualifications of employees and changes in the
organization) and external factors (fluctuating economic
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Commercial Banking
Itaú BBA
Consumer credit
Insurance, private pension
and capitalization
Business abroad
Business
Itaú Personnalité – with income higher than R$7,000,
Credit Guide – service offered to help in the choice of
clients have nearly 200 customized branches. We
credit products that best suit a client’s needs or projects,
understand that these clients have already fulfilled some
given their stage in life. On the Internet, the client finds the
of their aspirations and are transitioning to establishing
option that is best suited to their profile, learns how to use
their equity, requiring special financial assistance and
the simulator tool and apply for the products and accesses
products and services that are suitable for this phase in
important tips that should be taken into consideration when
their lives, which is more focused on long-term credit and
taking out any type of loan, whether a short or long-term
investments. They also have a modern website at their
operation such as for purchasing property.
disposal: www.itaupersonnalite.com.br.
Reduction of the arrears interest rate – the reduction
Within the Todos pelo Cliente philosophy, we seek to be more
of the arrears interest rate significantly benefits clients
flexible in creating products and services for a wide range
who are behind on the payment of their loan contracts.
of clients and the different phases of their lives, leveraging
The rates were changed to the same rate as those of
our expertise and exclusive service to help them achieve
the contract with the client plus 1% a month, giving
their goals. In order to better identify the needs of each type
the client, in hard times, the possibility of reorganizing
of client, we have created permanent consultation forums,
their affairs.
which have given rise to many innovations, such as the
videochats developed for the Personnalité segment, with
Financial education for individual clients
online consultation for financial investments.
For its individual clients and for all segments that
need credit, Itaú Unibanco offers the Credit Guide, an
The following products and resources are offered to
online tool that identifies the ideal credit product and
our clients:
allows for consultation of other products related to the
client’s needs. Per month, 75,000 users access this tool
Cliente Estrela (Star Client) – we revamped this product after
for simulation.
we noted, from a survey of consumers, its importance as a
symbol of prestige and distinctive treatment. This client niche,
The Guide is further proof of Itaú Unibanco’s commitment
assigned according to the relationships clients have with the
to the Uso Consciente do Dinheiro program and the bank’s
bank, accounts for 28% of the retail client base, which totals
transparency regarding clients. When choosing credit in
3.7 million account holders.
accordance with their needs, the client avoids unnecessary
costs and excessive indebtedness.
Segmented Products – we invest in product segmentation as
a way of making credit granting quicker for the client. When
On Itaú Unibanco’s website, there is also a simulator
we detect a demand in the market, the bank develops credit
intended to help clients realize their investments, make
lines to meet clients’ needs. In 2010, three types of lines were
plans and establish targets for their financial goals. The
launched: Renovation, Solar Heaters and Travel. For 2011,
user can choose between four goals: Reserve, Travel,
we expect to increase the product portfolio in line with the
Property and My Millions (and the target for 2011 is to
development of Brazilian economy.
include new projects, such as Vehicle, Academic Future,
Retirement and the Future of Your Child).
Debt Statement – the Itaú Unibanco client can monitor
their financial situation online. By means of the debt
In December 2010, the website, with its new layout and
statement, the client knows exactly how much they owe
more simple language, was visited by approximately
to the bank in each type of transaction. The service was
6,000 people. This is because the Credit Guide is more
created for clients to better organize their finances and use
than a financial calculator that shows the monthly
funds in a cautious way.
installment for achieving a goal: the tool identifies the
58
Commercial Banking
58
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
Public sector
In essence
Our activities aimed at the public sector are structured to operate in
all sections, including the federal, state and municipal levels of the
Microfinance
Executive, Legislative and Judiciary branches. To serve public sector
clients, we use platforms that are independent from those of the
In the seven years in which we have
worked with microfinance, we have
developed a sustainable business model.
At the end of 2010, we had approximately
120 employees, including a team of 70
microfinance agents. In order to support the
agents’ work, we invested in technologies
to make credit granting quicker, and to
maintain direct contact with the client.
retail banking branches, with teams of specially trained managers
to offer customized solutions in terms of tax receipts, foreign
exchange services, asset management of public bodies, payments
to suppliers, payroll of civil servants and military personnel, and
retirement. Based on these platforms, we have a significant amount
of business with clients from the public sector, particularly in the
Brazilian states in which we previously acquired state-owned
financial institutions. On December 31, 2010, we handled the
payroll for 1.2 million civil servants and military personnel.
Microfinance
At the end of 2010, Itaú Unibanco’s microfinance operation
was stronger because we had started to accrue the results of
client’s risk profile, needs and financial prospects for
the investments in knowledge management that have been
a particular investment, and it also indicates what the
made since 2003, when Microinvest was created as a result of a
recommended products are.
partnership with the IFC, a division of the World Bank.
For clients and non-clients, Itaú Unibanco provides not
In these seven years of work, we can say we developed a
only financial guidance tools but also meetings and
sustainable business model that is capable of offering credit
innovative models, which educate and raise awareness for
access under suitable conditions for the microfinance segment,
those who participate. This is what happens at TEDx Vila
which has been increasing with the growth of the Brazilian
Madá, a new dialogue model that gathers contemporary
economy. We directed the operation so as to offer credit to
thinkers and activists who are challenged to make the best
small business owners – most of whom are entrepreneurs
presentation of their lives in 18 minutes.
working in the informal market (without a Corporate Taxpayers’
Registry Number) in the metropolitan regions of São Paulo, Rio
The model promotes dialogue and stimulates
de Janeiro and Porto Alegre.
communities, organizations and individuals to organize, in
their communities, events like TED, which gather people to
The regions that are more distant from the urban centers lack
share ideas and experiences.
(almost entirely) local financial services. Many entrepreneurs
spend most of the day taking care of their companies, making a
This meeting was held in August 2010 at the Cultura
trip to the bank and, consequently, find access to financial services
bookshop in Conjunto Nacional, São Paulo. The speech,
impossible. The work of microcredit agents in underprivileged
on Uso Consciente do Dinheiro, gathered 150 people and
regions takes the bank to clients, allowing these entrepreneurs
the discussion in the virtual community involved 400
to start using banking services and permitting a better
people. Also on that day, the Livraria Cultura Itaucard was
understanding of the activities carried out by them. In general, the
launched. (FS16) (Sector Management Approach)
micro formal and informal entrepreneurs from the D and E social
grades (semi- and unskilled manual workers, casual workers and
those dependent on the welfare system, as defined by the British
National Readership Survey) are the ones served. (FS13)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
59
Business
We now have approximately 120 employees, including
In numbers, Microinvest has already carried out more
a field team composed of 70 microcredit agents and
than 28,900 financing transactions, which is equivalent to
nine supervisors. Our operations work as follows: the
R$88.5 million. In 2010, year when we kept our focus on
agent goes to the community, visits potential clients,
strengthening the business structure, we signed 4,300 new
analyzes their business and offers a credit line that is
contracts, totaling R$14.9 million. This represents a growth
suitable to their needs. This employee is also responsible
of 14.1% and 12.7%, respectively, in relation to 2009.
for explaining the conscientious use of loans to the
small entrepreneurs, playing the role of a real social
For the coming years, Microinvest has ambitious targets,
transformation agent. (FS13)
such as to increase its market share by 2.5 times. New steps
in this direction were already taken in 2010 with the creation
There are two channels for increasing the client base:
of a group of well-known consultants specialized in topics
a receptive one and an active one. In the receptive
related to microcredit – such as behavioral economics,
channel, clients have access to a telephone number by
statistics and geostrategic planning.
means of which they can register proposals. In the active
channel, ten telemarketing operators offer microcredit
We also established a partnership with the Lan CDI
to the clients registered in the conglomerate’s databases
network, a business division connected with the
who have the right profile for this type of product. (FS13)
Committee for the Democratization of Information
Technology which mediates commercial transactions. By
To support the work of these agents, we have made
means of this partnership, the bank will offer member
significant investments in methodologies and
companie credit for improving local structures and,
technologies aimed at speeding up credit granting and
therefore, accelerating digital inclusion. Microinvest is also
maintaining direct contact with the client, one of the
preparing to turn Lan Houses into places where credit
main characteristics of microcredit. We have partners
agents can offer financial education programs and credit
such as the Inter-American Development Bank (IDB),
to the service’s users.
which supported Microinvest with a large technical
and financial cooperation project, and with the
We believe in the consolidation of the microfinance
Consultative Group to Assist the Poor, a body linked to
segment because we built this operation with a
the World Bank.
governance structure that allows us to share the
knowledge within Itaú Unibanco. Therefore, we can
We also work together with the main universities in
reinvest the results of the operation in the financial
Brazil and around the world – such as Fundação Getúlio
education of a segment that represents more than 20%
Vargas (Getúlio Vargas Foundation – FGV), Massachusetts
of Brazilian GDP, according to studies from FGV. (Sector
Institute of Technology, University of California, Los
Management Approach)
Angeles, and Harvard – in the creation of technology
systems which allow us to use smartphones to reduce
Processes for improving the skills of employees
the period for credit granting from seven days to one
The staffing and abilities necessary for implementing
day and eliminate the use of paper in the operation.
microcredit are identified with the support of external
consultants. There is a team of supervisors that manages
This effort has allowed us to generate significant gains by
the microcredit agents, ensuring compliance with
meeting clients’ specific needs and increasing operating
social and environmental practices and policies. In
efficiency, making the cost of credit more accessible. As
2010, both supervisors and agents were subject to
a result, Itaú Unibanco has a new way of operating in the
product management training, which consists of their
market, according to which the sustainability of clients is
daily monitoring by consultants in the field. By actively
seen as an integral part of the business model.
participating in the activities of a microcredit agent, the
60
60
Commercial Banking
60
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
consultant can offer practical and educational support
Microinsurance
on issues related to collection, risk analysis, business
After a broad survey in Brazil and in countries where this type
prospects, time management and, in particular, the
of operation is carried out, we created a family of accessible
development of a quality client portfolio.
insurance policies to meet the protection needs of the target
public. The objective of the bank is to offer insurance coverage
In 2010, Microinvest provided general training with
that enables the social mobility of its clients despite the
courses on the microcredit product, credit analysis,
occurrence of unexpected events such as accidents, illnesses
onsite collection, accounting, business prospects,
or death of the breadwinner.
operating systems, reading and use of reports, time
management and field training. These courses are
Small and medium-sized companies
directed at new employees – regardless of their
When thinking about the growth of micro, small and
position – such as product analysts, telemarketing
medium-sized companies, we structured ourselves to be
operators, microcredit agents, operation assistants
a major partner in clients’ businesses, providing financial
and credit analysts. (FS4)
advisory services and guidance on their daily needs and
topics in a way that adds value and effectively contributes to
Financial education for micro business entrepreneurs
improving the performance of their businesses.
In 2008, Itaú Unibanco developed, together with
Microlins, the Capacitação Gerencial ao Microempreendedor
To better understand the needs of clients and create
(Management Training for Micro Entrepreneurs). This is
innovative products and services, we implemented
aimed at small entrepreneurs (from the C, D and E social
a vertical structure that serves the many segments,
grades, or manual workers and below), who usually work on
subdivided into billing groups. The products, credit,
their own – formally or informally – with annual revenues
commercial, operational and legal collection areas work
of up to R$240,000, but usually lower, and are not able to
together so that we can have an operation that generates
prove their earnings; they therefore have difficulty accessing
benefits to all in the chain.
inexpensive credit and in the desired amount.
Internationally, operations for corporations are carried out
The objective of the course, which lasts nine hours and
by regional banks. In accordance with our ambition of
is divided into three classes, is to mitigate the financial
becoming a global player, we have been investing to foster
vulnerability of these clients by means of guidance
specialized national distribution in companies of different
on strategic and financial business management. This
sizes and from different areas. The major challenge of Itaú
guidance is designed to minimize the risk of damage to
Unibanco is to manage the national distribution in a country
the business through the use of tailored administrative
of the size and with the diversity of Brazil.
practices, in addition to generating financial stability
by means of the technical training of these people in
In order to meet this demand, in 2010 we started a large
Administrative Management.
project to train our employees. This training project was
prepared in the e-learning format for those involved in
In the first year of this initiative, around 700 entrepreneurs
the social and environmental risk analysis process. At
completed the course and received diplomas. In 2009, as
the same time, we developed, together with FGV, the
a result of the merger of Unibanco – the company that
Programa de Certificação Itaú Empresas, whose objective
created Microinvest – with Itaú, the initiative was put on
is to verify our specialist managers’ knowledge about
hold. The project was resumed in the last two months
products, sustainability, values, culture and ethics. Initially
of 2010 and another 111 entrepreneurs completed the
applied in the products area, the certification program will
course. For 2011, the target is to have 900 entrepreneurs
be extended in 2011 to all professionals who work in the
completing the course. (FS16)
corporate area.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
61
Business
In 2010, these actions consolidated the vision of our value
The implementation of the policy has brought innovation
proposition. By providing further transparency and specialized
to the financial market since it integrates social and
advisory services, we have a better understanding of the value
environmental risk criteria with the credit granting
of our products.
process in the medium-sized company segment.
In 2011, we will continue to prioritize this economic segment.
The Social and Environmental Risk Policy for
Internal indicators show that entrepreneurs are increasingly
Corporate Credit in the corporate area is in line
more confident, particularly about the increase in their
with Itaú Unibanco’s Sustainability Policy, which
companies’ revenues, the evolution of Brazil’s economy and
establishes the operational guidelines in all its
the prospects of investment in their businesses. We are very
business activities and relationships. The policy
well structured to take advantage of the opportunities that
is based on internationally established policies,
the growth of the Brazilian economy offers.
practices and principles, such as the Equator
Principles and the social and environmental
Social and environmental management for corporate credit:
classification of the IFC, and was developed
policy, risk assessment and monitoring
according to the standards of relationships with the
The Social and Environmental Risk Policy for Corporate
different stakeholders listed by AA1000. The policy is
Credit was published in December 2007. In this policy,
available at www.itau.com.br/sustentabilidade.
Itaú Unibanco assumed the commitment to work in
partnership with its clients, cooperating in making
effective changes in the relation among production and
commercial activities, the environment and society.
Product or service developed to generate specific social benefit* (FS7)
Microcredit
243 microcredit contracts.
Crédito Universitário (University Credit)
R$30 million in assets.
Microcrédito Produtivo Orientado
(Guided Productive Microcredit)
The active portfolio of clients had 3,510 clients by December 2010;
The amount granted in 2010 was R$14,918 million;
The number of loans granted in 2010 was 4,309.
Life insurance for women
As the Instituto Brasileiro de Controle do Câncer (Brazilian Institute for Cancer Control – IBCC) was a partnership
with Unibanco, we are entering into a new contract that also includes the products of Itaú. For this reason, we
do not yet know the amount Itaú Unibanco granted in 2010. Unibanco alone granted approximately R$36,000.
PIC capitalization plan
The amount granted to AACD (Association for Assistance to Disabled Children) in 2010 was R$2.1 million.
Seguro Itaú Vida (Itaú Life Insurance)
The Seguro Itaú Vida product offers, once for each term, a Basic Check Up (an appointment with a
general practitioner, a return visit and the following exams: hemogram, blood sugar, cholesterol and,
for women, pap smear) as from the third month of the policy. From January to December 2010, we
recorded 128,894 sales.
Unemployment insurance
Approximately three million policyholders have unemployment coverage.
Extended warranty
From January to December 2010, the insurance premiums of the line 95 (Extended Warranty – Assets)
reached R$1.16 billion (Source: Superintendency of Private Insurance – SUSEP).
FIES – Fundo Itaú Excelência Social (Itaú Social Excellence Fund)
R$320 million (equity on December 20, 2010).
Fundo Social Itaú Personnalité Futura DI
R$240 million (equity on December 20, 2010).
Fundo Crédito de Carbono (Carbon Credit Fund)
R$190 million (equity on December 20, 2010).
Fundo Governança Corporativa (Corporate Governance Fund)
R$32 million (equity on December 20, 2010).
* Monetary value, in reais, of this product or the number of transactions or clients.
62
Commercial Banking
62
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
The policy establishes analysis criteria and tools to
In the credit decision process, the social and environmental
identify the social and environmental risk management
risk is taken into consideration so that the decision is based
capability of the companies that are clients of the bank.
on solid criteria that ensure the proper identification of this
The tools are:
risk as well, segregating those companies that do not have
the proper capability to manage the social and environmental
• Banned List;
risks in their activities. For these companies, the credit is not
granted. (FS1, FS2 and FS3)
• Restricted List, which includes specific industrial
areas that pose greater potential for social and
Social and environmental risk assessment
environmental risk;
To assess the social and environmental impacts of its clients,
the bank follows the Social and Environmental Risk Policy
• Social and environmental self-assessment questionnaire;
for Corporate Credit, which includes the following processes
and procedures:
• Social and Environmental Risk Analysis and social and
environmental sector classification (high, medium and
low risk);
(a) Applies with the social and environmental classification
A (high risk) or B (medium risk) to clients in the corporate
area with credit involvement equal to or higher than
• Visits by specialists in social and environmental analysis.
R$5 million. The social and environmental classification
consists of the segregation of the activity lines based
The tools of the Social and Environmental Risk Policy
on the associated social and environmental aspects,
consider human rights issues (addressed in the Banned
namely water consumption, electric energy consumption,
List by means, for example, of the reference file of
pollution, emission of liquid effluents, generation of
employers who have kept workers in conditions similar to
waste, atmospheric emissions, ecosystems, operational
slave labor) and include sectoral methodology guidelines
health and safety, industrial disasters and contamination
for the analysis of specific industries that pose a greater
of sites, in risk categories according to the methodology
social and environmental risk, such as the sugar and
provided by the IFC, also taking into consideration
ethanol and pig iron industries. In May 2010, the social
Brazilian specifics.
and environmental risk analysis process was certified with
the quality seal of the ISO 9001 process, showing the
(b) The team responsible for the social and environmental
bank’s commitment to excellence and the continuous
analysis is specialized in the subject matter and allocated
improvement of this activity.
to the decision units of the credit business. This team has
to provide information on the social and environmental
By means of the Social and Environmental Risk Policy
risk to those in charge of credit decision-making so that
for Corporate Credit in the corporate area, the bank
the decision is based on solid information that ensures
encourages its clients to incorporate sustainable
that the bank is not investing in companies that are not
practices into their business strategies. The social and
capable of managing their social and environmental risks
environmental risk analysis also includes direct contact
in accordance with its Social and Environmental Risk
with the client, which seeks to further clarify possible
Policy for Corporate Credit.
practices that are not in accordance with the guidelines
of Itaú Unibanco’s social and environmental credit
(c) Always attentive to best practices and seeking the
policy. In many situations, we saw clients implement
continuous improvement of processes, the bank is also
action plans aimed at improving their practices and the
supported by the work of well-known consulting firms
consequent increase in their capability to manage social
in evaluating its Social and Environmental Risk Policy for
and environmental risk.
Corporate Credit. (Sector Management Approach)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
63
Business
Sustainability in products and services
The idea is to provide a safe and virtual meeting point
To disseminate sustainability issues to external
for business executives, promoting debate, knowledge
stakeholders, Itaú Unibanco offers products and services
sharing and communication among professionals in
such as the Sustainability Meter, an unprecedented
Brazil, thus helping them face everyday challenges. The
initiative in the financial market. By using this tool,
model is also intended to disseminate the importance
corporate clients can see the amount of paper saved
of financial sustainability in conducting and increasing
and total GHG emissions avoided through the use of
business, by sharing experiences, information and
digital signatures in foreign exchange transactions. Since
ideas in an environment with easy browsing and high
the launch of the foreign exchange digital signature in
functionality.
December 2009, over 3.7 million sheets of paper have
been saved, and the forecast for 2011 is that this figure
Comunidade de Empresas is a collaborative and
should exceed 5.7 million.
autonomous relationship network, under no interference
of the bank.
Itaú Unibanco also launched the MaxiConta Ambiental
Empresas (Corporate Environmental MaxiAccount) – the first
Projeto Progredir
package of services in the Brazilian market whose purpose is
Itaú Unibanco is one of the banks taking part in Projeto
to make clients aware of sustainability issues. In this package,
Progredir (Progress Project), launched by Petrobras in
all transactions are carried out via electronic channels, with
partnership with other Brazilian banks, which will start in
no use of paper. The reduced account maintenance fee and
2011. The project involves granting credit to all direct and
the charges for banking services that are potentially harmful
indirect suppliers, generating the contract information
to the environment have fostered the development of
from the supply chain for the banks and making credit
increasing environmental awareness. (EN6)
granting easier for all of Petrobras’ suppliers. The financing
collateral is in the form of receivables generated in
To encourage and acknowledge projects that encourage
Petrobras’ supply chain, which reduces the credit risk and,
sustainability, considering both the results and the attitudes
accordingly, the cost to the borrower.
of those who develop them, the Executive Board of
Corporate Products of Itaú Unibanco has, since 2008, offered
Itaú Empresas (Itaú Corporate) on the mobile phone
the Sustainability Award. The award is driven by the constant
In line with the culture of innovation and aimed at providing
search for the creation and implementation of new solutions
more comfort to our clients, we were pioneers in providing a
and improvements to products, business and processes with
solution focused on the mobility and decision-making process
economic, social and environmental benefits.
of corporate clients.
Comunidade de Empresas
In 2010, we developed an application for the iPhone (which
Launched in December 2010, Comunidade de Empresas
also runs on iPod Touch and iPad) that enables graphic
(http://www.comunidadeempresas.com.br/) is a social
interactions when viewing payments and collections,
network for business executives whose purpose is to
simplifying the decision-making process and allowing review
stimulate business and assist in the development of small,
of current accounts, payments and payment orders sent or
medium and large companies, in any industry.
received from abroad.
64
Commercial Banking
64
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
Compror Parceria
This entire flow can be followed up by the company’s
We launched Compror Parceria (Compror Partnership)
accountant, who can access the details and integrate (export)
(credit for mediating negotiations between suppliers and
information with the accounting systems.
their partner purchasers) for auto makers, manufacturers,
distributors, franchises, etc. Among the benefits the
Pague Aqui Itaú
program provides to suppliers is the receipt of payments
Pague Aqui Itaú (Pay Here Itaú) is recommended for
on the scheduled date and without risk, since it is not
retailers with a large customer base, such as supermarkets,
necessary to finance the clients’ purchases. For purchasers,
drugstores, and commerce in general. By contracting
the advantage lies in the revolving credit limit for
Pague Aqui Itaú, these retailers offer comfort and
financing their inventories, for the period required to
convenience to their customers, who may make their
receive funds from their own sales, in addition to more
payments and pay their utility bills, such as water,
attractive fees and the possibility of lower interest rates
electricity, and telephone, quickly and easily , and
and Tax on Financial Transactions. Itaú Compror also
with extended payment hours. Besides the additional
provides its suppliers and purchasers with an online tool
source of revenue, Pague Aqui Itaú attracts people to the
for financial and inventory management.
establishments, which can help raise sales.
Condominiums
Card Sales Manager
In 2010, we created exclusive and specific services for
We developed the Card Sales Manager so that the client can
condominium administrators and companies in this segment.
reconcile all sales made with the main brands of cards (on
Among the options offered, Registered Collection is a tool
the market), and choose the most appropriate consultation
that provides effective control over receivables by the
method to make decisions. The actions permitted by this
condominium’s administrator, and Condominium Card, a debit
product are:
card with a pre-established limit that enables the payment of
everyday expenses, optimizing the maintenance routine of the
• To receive the net sales amount of the cards of the main
condominium.
accrediting companies: Redecard, Cielo and Hipercard;
Sala de Crédito
• To provide receipts via Redecard on the following day, seven
Itaú Unibanco and the São Paulo State Federation of
days later and 30 days later, along with the full schedule;
Industries entered into an agreement for the bank to
participate in the Sala de Crédito (Credit Room) events
• To view advance receipts via Itaú 30 Horas;
that are periodically held by the entity for its business
associates. The purpose is to provide financial advice to
• To track the sales made on the Redecard machine.
associates regarding loans, investment transactions and
cash management.
Financial education for corporate clients
Corporate Client Sustainable Consulting Program
Electronic invoice
Itaú carries out financial education actions in the
We made available a fully online solution – integrated with Itaú
form of consulting and business training services.
Companies on the Internet – to manage electronic invoices
The bank offers, in partnership with the Brazilian
for the bank’s corporate clients. The solution enables the issue,
Service of Support for Micro and Small Enterprises,
receipt and custody of electronic invoices, for the legal term,
consulting services for companies in the following
thus allowing the company to fully reconcile and manage its
two segments: Companies 3 (with annual revenue
receivables (invoices issued and collection) and payments
between R$500,000 and R$6million) and Itaú Business
(invoices received from suppliers).
(with revenue below R$500,000).
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
65
Business
The consulting program consists of a visit to the client to make
Credit cards
a diagnosis of the company’s current situation. An opportunity
Itaú Unibanco is the leader in the consumer credit
map is then prepared, comprising actions aimed at the client’s
segment in Brazil. Through Itaucard, Hipercard and
financial reorganization and the subsequent return to growth,
Partnerships, it provides a wide product portfolio to 40.8
through a distance course and the supply of supporting material.
million clients, both account holders and non-account
holders, which originated in proprietary channels and
For a 60-day period after the beginning of the consulting
through partnerships with outstanding companies
services, consultants follow the company’s development and
in their respective industries. Between January and
the implementation of previously-defined actions, and they are
December 2010, the transacted amount reached R$129.9
available to clarify doubts.
billion, which accounted for a 26.4% increase compared
to the previous year.
In 2010, 150 companies took part in the sustainable consulting
program and achieved a 20% improvement in their default rates.
In 2010, even with the great effort to complete the
integration of all the processes of Itaú and Unibanco
Currently, 500 companies are participating in the program. (FS16)
involving credit cards, we were able to maintain our
leadership and even gain market share. The Brazilian credit
Technological and Financial Extreme Makeover
card market grew 22.9% in financial volume of transactions
Developed by Itaú, together with Microsoft and the Pequenas
over the year. The amount transacted using this payment
Empresas, Grandes Negócios (Small Companies, Big Business)
method also grew in Brazil, to R$333 billion in 2010 from
magazine (Editora Globo), this project offers complete
R$271 billion in 2009. This positive result was mainly due
consulting in finance, technology and sustainability, helping
to the outstanding performance in credit management,
selected clients to improve their processes, management and
increasing efficiency in the distribution and attraction of
social and environmental performance.
new clients and leverage provided by the new partnerships
entered into with strategic clients in the retail sector, as well
In the five editions of the project, micro and small
as marketing efforts and services focused on developing
companies fully changed their situations, proving that
the relationship with the contracted client base.
good control and management strategies can help in the
efficiency of companies of all sizes.
This leadership brings the responsibility of setting an
example for the market, through the offer of innovative
The consulting company delivered lectures on sustainability
products and quality service, focused on transparency
and financial education, diagnosed the sustainability stage
and the conscientious use of credit. Bearing this in mind,
of companies and made recommendations aimed at
and inspired by the ethos of Todos pelo Cliente, practically
improving the development of their economic, social and
the entire credit card operation was reviewed, based
environmental aspects.
on the opinions of clients and on the main complaints
recorded by our customer service and the consumer
The website is easy to browse, intuitive and visually attractive,
protection bodies.
so that the client may interact with the consulting company on
issues such as cutting costs, sustainability, productivity, safety,
The integration of the platforms helped provide greater
client attraction and retention, and mobility. At the end of the
speed in problem solving – and we have been able to
project, the client receives a customized report with tips and
meet more than 93% of the requests within 24 hours. In
suggestions about how to obtain sustainable and long-term
2009, responses were given within 3.5 days on average
financial growth, strengthening the bank’s partnership role with
(more information on the Ombudsman’s Office of Itaú
small and medium-sized companies. (FS16)
Unibanco is on page 107).
66
Commercial Banking
66
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
In 2010, even
with the
great effort to
complete the
integration of
all the processes
of Itaú and
Unibanco
involving credit
cards, we were
able to maintain
our leadership
and even gain
market share.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
67
Business
Being familiar and transparent with the client is
University loan
our priority. We opened 31 Itaucard service centers
The university loan, a credit facility with various interest rates
throughout Brazil. The purpose of the shops is only
that are often subsidized and/or collateralized, either totally
to render customer service, and not to sell cards,
or partially, by the government, is a very important financial
since the focus is on service provision – and the
instrument in the United States and many European
local government of São Paulo bars the sale of this
countries. In the United States, the balance financed using
type of product by retailers that are not banks.
this credit facility exceeds US$500 billion at present.
They are venues in which clients may resolve all
their doubts, check invoices and make complaints
This type of loan is starting to be granted in Brazil, with
directly to an employee.
Itaú Unibanco being the only private bank to provide this
credit facility. The product makes the dream of higher
The Hipercard brand is the largest donor to the
education possible for low-income students and for those
AACD. In 2010, the campaign for clients to donate
whose income is not sufficient to pay tuition fees. This
funds through the cards collected R$4 million.
loan is available for current and future students of 103
private education institutes (30 agreements), at over 255
Credit cards and donations to
campuses located in 24 Brazilian states.
social organizations
Our card portfolio offers alternatives that enable
One of the new developments we implemented in 2010
clients to make regular contributions to institutions
was to streamline the contracting process, which is now
involved with preserving the environment, protecting
directly available in the university secretary’s office or
the rights of children and adolescents, and supporting
in mini-shops we have opened within the educational
disabled people.
institutions, to inform students and parents of the benefits
and make the contracting easier. In 2010, Itaú Unibanco
Through the Sempre Presente (Always Present)
reached the milestone of 10,000 students served by the
Program, which accumulates points as Itaucard
program, exceeding R$32 million in the portfolio. Of this
clients spend money using the card, clients can
total of benefited clients, 78% come from families whose
have these points converted into donations to
parents do not have a higher education degree, which
these institutions.
shows the potential for social transformation provided by
the program. (FS7)
And by means of the Hipercard, we encourage client
donations to the AACD (R$2, R$5 and R$10), charged
By the end of 2011, there will be over 300 campuses directly
to the card, to contribute to rehabilitation programs
served by Itaú Unibanco, attended by approximately 600,000
for disabled children and youths. (FS7)
students, who will then have access to our product and
distribution channels. (FS13)
Debit card
An essential instrument, necessary for the economy as
Financial education in regard to university loan
a whole due to the automation of processes, the debit
For Itaú Unibanco, it is not enough just to grant a loan:
card is another product for which we hold a leading
it is necessary to offer guidance to the client about how
position in the Brazilian market. Each current account
to use it in an appropriate and beneficial way. For this
opened has the possibility of providing the client with a
reason, after completing a form for credit approval, and
card. This is a market that grows at annual rates of 20%
before the effective contracting of a loan, a university
by financial volume of transactions and we have grown
credit consultant contacts the students and guarantors
above this average.
– in general, the parents – to explain how the product
68
Commercial Banking
68
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
work and to provide comparisons with other financing
branches, into multiple distribution channels, such as Lopes
alternatives, whether educational or not, that exist in the
Consultoria and Coelho da Fonseca.
market. All possible doubts are addressed during this
contact – which is mandatory, since these are long-term
In addition to these channels, we operate through
agreements and not the loans most commonly accessed
onlending, a product that meets the financing
by this population, which are focused on convenience
requirements of purchasers of properties built with
usage. For the duration of the agreement, Itaú Unibanco
financing from Itaú Unibanco. This procedure is
invests in continued communication with the client base,
even faster, since documentation required from the
emphasizing the importance of keeping up with payments,
seller and the property for the financing have already
sending reminders about maturity dates and, when
been analyzed by the bank, simplifying the list of
necessary, warning about possible demands for settlement
documents and forms for the purchasers. The strategy
in the case of default. To complement this, those who are
has enabled us to soar from an average penetration of
financially responsible for the student and are co-signers of
25% to 75% in onlending.
the agreement also receive communications that encourage
continuous monitoring of the current financial indebtedness
The real estate portfolio for companies also posted
of the students. (FS16)
an excellent performance in 2010, driven both by the
bank’s capacity to grant loans and by the role of IBBA in
Real estate loan
the projects in which it works with companies in the real
The result of major investments over the last few years, the
estate industry.
real estate loan was one of the highlights of Itaú Unibanco in
2010, with a 56% growth in the loan balance, reaching R$13.3
Another factor responsible for this performance was the
billion. This is a market that grows in Brazil at rates of 50% to
creation of Imobline PJ (Corporate Imobline), a new system
60% per year and that should continue at this pace for the
platform that permits the whole financing process, from
foreseeable future, since it still has a share of only 4% of GPD.
when it is first contracted to the release of the funds, to
be carried out on the Internet, enabling the business
With this bright outlook, we created a different way of
executive and commercial staff to keep track of the
distributing loans, integrating a philosophy focused on
operation in real time. Imobline PJ transformed this process,
the client’s vision. We have concentrated on convenience,
making it much faster and more transparent.
transparency and promptness so we can be the first choice
of candidates for real estate financing. Guided by this
For 2011, our challenge is to improve customer service and
philosophy, we established a credit processing facility. The
strengthen the relationships with clients, so that we can
contracting cycle fell from 72 days in 2009 to 21 days in 2010,
double our portfolio.
as compared to an average of 40 to 50 days on the market.
Real Estate Loan – Social and Environmental Management:
We were able to create a remarkable system, with credit
policies, risk assessment and monitoring
approval within one hour, seven days a week. Another
The Social and Environmental Policy – Real Estate Loan was
advantage is the fact that the documentation required by the
implemented to prevent social and environmental risks (both
bank is the simplest in the market, and the client may choose
current and future) stemming from the financed items. It is
a financing term of up to 30 years. The system enables us to
applied to all financing for the construction of residential and/or
hold 70% of the consultations online.
commercial developments (Plano Empresário – Entrepreneur Plan)
granted in all regions of Brazil, as approved by the relevant credit
With the evolution of the process for investing in technology,
executive board. The policy is based on the National Environment
we expanded the sale of the product, formerly restricted to
Policy, and this loan is not available to the public at large. (FS1)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
69
Business
The main purpose of this guideline is to mitigate possible
questionnaires started to be applied, training was provided
risks of environmental liability or non-compliance with
and supporting material on how to fill them in was distributed
laws regarding social and environmental aspects of the
to third parties and the bank’s employees. (FS4)
developments to be financed by Itaú Crédito Imobiliário (Itaú
Real Estate Loan). Among the risks mitigated by this policy are:
The policy proposes the application of three social and
environmental questionnaires for all developments financed
1) Environmental;
by Itaú Unibanco through the Plano Empresário product.
2) Financial losses;
The questionnaires address social and environmental
3) Impacts on the bank’s image.
aspects of the company, development and land. Two
questionnaires should be filled in by the business executive
Depending on the risk identified, the Real Estate Executive
and their objective is to obtain information on the social
Board may refuse the credit/project, and the IBBA Loan
and environmental practices of the company and the
Executive Board may reject the development project. The
development in question. The third questionnaire is filled
corporate governance bodies responsible for approving
in by the outsourced engineer and it should comprise the
theses policies are:
findings and information obtained during the visit to the site
of the future development. (FS3)
• Product Management – Itaú Crédito Imobiliário: Responsible
for creating, implementing and standardizing sustainable
The results of the questionnaires are measured by the
practices for Itaú Unibanco’s existing real estate products.
systemic platform, and when a financial risk or possible risk
for the bank’s image is identified, the transaction is submitted
• Real Estate Loan Superintendency – Corporate Credit Area:
to an internal analysis. The Imobline PJ systemic platform
Responsible for creating and standardizing the loan guidelines
comprises new systems and operations developed to contract
of the social and environmental policy and forwarding
and manage the agreements related to Plano Empresário.
projects to the Real Estate Loan Executive Board for approval
These questionnaires are answered by the responsible
or rejection, should there be social and environmental points
professionals and enable an automated analysis (depending
for attention in the questionnaires or non-compliance with
on the answers provided in the forms).
contractual clauses. (FS1)
In addition to the questionnaires, the policy includes a clause
• Real Estate Loan Superintendency – Monitoring:
in the agreements related to Plano Empresário, whose purpose
Responsible for monitoring compliance with contractual
is to strengthen the National Environment Policy (Decree
clauses and social and environmental problems identified
No. 99,274 and Law No. 9,605/1998) and the provisions of
during the payment of the installments. The Real Estate
the Federal Constitution. In the event the company does
Loan Committee is the authority empowered to pay the
not comply with the laws, Itaú Unibanco may terminate the
other installments and deny them or demand certain
agreement or advance the settlement of the obligations
conditions, should there be social or environmental points
contained in the financing agreement. (FS1) (FS2) (Sector
for attention in the questionnaires or non-compliance with
Management Approach)
contractual clauses. (FS1) (FS3)
Consortium
The suppliers responsible for checking the financed
Itaú Consortium is undergoing development at this
construction and the points for attention in the social and
time. After the organization of an exclusive executive
environmental questionnaires for granting credit received,
board for the area, in 2009, an evolution in the processes
in 2010, a handbook on how to fill in the questionnaire.
was noted, producing quite important results over
Whenever there are improvements in the questionnaires
2010. Taking advantage of the market upturn and the
and/or processes, the handbooks are updated. When the
consumers’ growing knowledge of consortia, in addition
70
Commercial Banking
70
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
to the strength of the brands Itaú and Fiat (with which
Private Banking
we work), Itaú Consortium posted an increase in revenue
In 2010, Itáu Private Banking confirmed its leading position in the
that exceeded 100%, when comparing 2009 and 2010.
domestic market. Its tradition and experience in management of
In addition, the division’s monthly sales average doubled
third parties’ services are illustrated by the various awards received
between January and December 2010, reaching 16,000
and by the growth in managed assets, which totaled over US$71.3
quotas sold in December 2010.
billion at the end of December 2010.
In Real Estate Consortium, Itaú Administradora de Consórcio
The internationalization strategy has already posted significant
stood out with successive improvements every month,
results. Itaú Private Bank International is present in the main
ending the year with the sixth biggest market share. As
financial markets, with offices in nine countries, such as
regards Vehicle Consortium, Itaú and Fiat acted together and
Luxembourg, Switzerland and the United States, along with
ranked third in market share at the end of 2010. Thus, 2011
Brazil and a number of countries in Latin America. At the end of
will be important to consolidate the sustainable growth and
2010, Itaú Private Bank International had 5,700 Latin American
to continue increasing market share.
clients with US$14.5 billion of assets under management.
Wealth Management & Services
Private Banking Awards
Innovation in products and services set the tone for 2010
In 2010, in accordance with Officina Sophia, we reached the
in the area responsible for all investment products for
highest satisfaction level among clients since the beginning of
individuals and companies – and involves the activities of
our activities in this market. This result shows that we are on the
private banking, asset management, brokerage services,
right path to assuring the sustainable growth of our business.
individual investment products, capital markets services,
In addition, the recognition of our activities in the market also
internal controls and compliance, as well as the area of
came by means of awards, such as the ones given by Euromoney
institutional and foreign clients.
magazine, as The Best Private Bank in Brazil, The Best Private
Bank in Peru and one of the Top 4 Private Banks in Latin America,
Institutional clients
being the only bank from Latin America to be included on
Itaú Asset Management is the largest private manager of
the list. Similar awards were won from publications such as
institutional clients’ funds in Brazil. It serves institutional
Private Banker International (Outstanding Private Bank – Latin
clients in the largest global financial centers and offers a
America/2010,Outstanding Private Bank – Latin America/2009
full portfolio of accessible services at a world-class level.
and Outstanding Private Bank – The Americas/2008) and Financial
The structure is segmented to serve clients in the Americas,
Times Global Wealth Management (Best Latin American Private
Europe, Asia and the Middle East.
Banking 2010). Such honors are strong and consistent evidence of
our performance in target markets.
The service structure was developed to provide a
direct, close and personal relationship. Our team of
Investment products and private
institutional managers is distributed by market niche,
pension plans for individuals
and this allows us to understand each segment in
In 2010, the unification of investment products in the Itaú Unibanco
depth, to identify its needs and provide specific
structure had, as its main difference, the change in strategy from
financial products and services, on an integrated and
product perspective to client perspective, by focusing on the client’s
customized basis – always with full transparency and in
personal projects. For the purpose of understanding the client’s set
compliance with a strict code of ethics.
of needs, the bank started to offer a complete financial advisory
service based on financial education. The figures in the area reflect
All this is with the commitment of continuously innovating,
the maturity of the market and the attitudes of investors, who have
to always offer new products and services that meet the
proven to be increasingly aware of the relevance of contracting
specific requirements of each client.
supplementary private pension plans in Brazil.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
71
Business
Get to know the Principles for
Responsible Investment
Itaú Unibanco’s investment products are mainly
characterized by the offering of appropriate financial
planning, taking into account the client’s needs, investment
1 – Incorporate ESG issues into investment analysis and
horizon and stage in life.
decision-making processes
The bank is the only one that, under the scope of
investment recommendations, implements the Investor
2 – Be active owners and incorporate ESG issues into our
Profile Analysis, taking into account all the investment
ownership policies and practices
products of the portfolio.
3 – Seek appropriate disclosure on ESG issues by the entities
We are currently the second largest company in the market,
in which we invest
with over R$51 billion, as compared to the volume in the
4 – Promote acceptance and implementation of the
market as a whole of approximately R$250 billion.
Principles within the investment industry
Itaú Asset Management
With over R$240 billion* in assets, Itaú Asset Management
5 – Work together to enhance our effectiveness in
remained the leader in the asset management market in Brazil.
implementing the Principles
In Asia, we were the first Latin American bank to open, in 2010,
an asset management company: Itaú Japan Asset Management,
6 – Report on our activities and progress towards
one year after the opening of Itaú Asia Securities in Tokyo.
implementing the Principles
In order to continuously improve the quality of services and
Main initiatives related to PRI in 2010
the sustainability of activities, Itaú Asset Management uses
1. PRI world meeting
the management excellence model of Fundação Nacional da
Itaú Asset Management sponsored the World Meeting of
Qualidade (National Quality Foundation), which is supported by
Signatories to the Principles for Responsible Investment,
eight pillars: leadership/governance, strategy, clients, society,
held in San Francisco, United States, which was attended
information, knowledge, processes/suppliers, and results. In
by over 300 people in October 2010. The attendees
order to assess the adherence to the model in 2010, Itaú Asset
were CEOs, CIOs and executives in charge of the largest
Management took part in the Prêmio Paulista de Qualidade
institutional investors and asset managers in the world.
da Gestão (São Paulo Management Quality Award), and was
The attendance of Itaú Asset Management reinforced not
awarded a gold medal.
only our concern with the issue, but also the relevance of
* Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais (Brazilian Association
of Financial and Capital Markets Entities – Anbima) management ranking – December 2010.
Sustainability in focus
strategic planning.
2. Engagement in the fight against slave labor
Itaú Unibanco was the first large Brazilian retail asset manager
Together with other signatories to the PRI and with the
to adhere to PRI. The PRI implementation project was initiated
Latin American Sustainable Finance Forum, a partnership
within the society pillar of asset management strategic planning
between the Center of Studies on Sustainability of the
and has been adopted as:
FGV and the IFC, Itaú Asset Management took part in
the initiative against slave labor. This initiative consisted
• an international best practices standard related to
of the sending of a letter to all companies listed in the
sustainability in investments;
BM&FBovespa and requesting their adherence to the
Pacto Nacional para Erradicação do Trabalho Escravo,
• an essential tool for promoting social and environmental
and challenging the policies and practices of the listed
and governance issues in the companies in which the
companies aimed at preventing slave labor in their
funds invest.
activities and production chains.
72
Commercial Banking
72
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
Carbon Disclosure Project
3. Emerging Markets Disclosure Project (EMDP)
Itaú Asset Management is a signatory investor to
In 2010, Itaú Asset Management took part, together with the
the Carbon Disclosure Project (CDP). In this capacity
other signatories to the PRI, in the international engagement
it signs, together with other signatory investors,
initiative EMDP. This is aimed at incentivizing companies to
the letter with the request for information sent to
be more transparent in environmental, social and corporate
companies on the risks and opportunities arising from
governance issues in developing countries.
climate change. The CDP currently has 551 signatory
investors, which total US$71 trillion in assets under
4. Developing an investment analysis methodology
management.
In 2010, Itaú Asset Management engaged a consulting
firm specialized in sustainable finance to work directly
Climate change may give rise to risks in sectors most
with investment analysts, providing inputs for the
exposed to variations in climate conditions. However, this
development of a methodology that incorporates
topic also leads to opportunities: currently, the area has two
environmental, social and governance issues into the
funds related to this topic, that is, the Itaú Ecomudança and
fundamental analyses of the investees.
the Itaú Fundo Índice de Carbono. (EC2)
This project maps out the main social and environmental
The PRI were developed by an international group
externalities of the significant economic sectors. In
of institutional investors, reflecting the increasing
addition to mapping these externalities, the project
relevance of ESG issues to investment practices.
has included approximately ten hours of training, for 22
The process was convened by the UN Secretary-
people, addressing the analysis of ESG (environmental,
General. These principles present a voluntary
social and corporate governance) issues in the investment
methodology by which investors may incorporate
decision-making process. Variable income and credit
environmental, social and governance issues into
analysts attended these training courses, as well as
the investment analysis process and into their asset
members of the bank’s sustainability team and Itaú Asset
holding practices.
Management’s products area.
For further information on PRI, visit the website
5. Voting policy
http://www.unpri.org/principles/.
Since 2009, the voting policy (holding of assets) Itaú
Asset Management has specifically stated that business
Product innovation
sustainability should be taken into account when
Wealth Management Services has an area
exercising the right to vote. This emphasis on business
responsible for promoting innovation in developing
sustainability is guided by three pillars: acting proactively
new products and services. According to an
in defense of the environment, social development
internationally acknowledged methodology, the
and good corporate governance. In 2010, Itaú Asset
WMS’s innovation area holds periodic meetings
Management voted in 47 meetings complying with the
aimed at encouraging the development of
guidelines of this policy.
innovative solutions to meet the clients’ and the
organization’s needs.
Itaú Asset Management’s voting policy, as well as the votes
cast, are publicly available at the website www.itau.com.
In addition to the process of innovation in
br [under Para Você (For You) / Investimentos (Investments)
products and services, Itaú Asset Management
/ Fundos (Funds); / Informações aos Cotistas (Information
has investment funds that take into account
to Stockholders) / Política de Voto do Itaú Unibanco (Itaú
environmental, social or corporate governance
Unibanco Voting Policy)]. (FS4, FS5, FS10 and FS12)
issues when selecting the invested assets.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
73
Business
Social and environmental funds
noteworthy governance practices, as set forth in the
Canal Futura
Corporate Governance Index of BM&FBovespa.
In an unprecedented action, together with Fundação
Roberto Marinho (Roberto Marinho Foundation), we
Índice de Carbono
have launched the Fundo Social Itaú Personnalité
The Fundo Itaú Índice de Carbono, amounting to
Futura DI, which allocates 30% of revenue from
R$173,761,201, is an alternative investment for the purpose
management fees to Canal Futura (Future Channel).
of portfolio diversification linked to global efforts to reduce
This channel is dedicated to education, one of the
greenhouse gas emissions. By investing in this fund the
largest challenges faced by Brazil.
investor contributes to the development of the carbon
credit market, which has an essential role in the fight
Ecomudança
against climate change.
Itaú Ecomudança, a fixed income fund, has a net
equity of R$245 million and allocates 30% of
Financial education at WMS
management fees to environmental projects for
In order to meet the increasing demand for financial
reducing GHG emissions.
education, we produce videos every two weeks that
bring knowledge of the financial market to our clients.
The funds allocated by Ecomudança have supported
This information is provided in a clear, innovative and
programs focused on relevant environmental
impartial way that is focused on their objectives and
preservation issues. Projects include recovery of native
providing solutions that are suitable to their needs.
forests, replanting of native seedlings in degraded areas,
Accordingly, we encourage our clients to use their money
replenishment of forests in environmental reserves,
carefully and to become increasingly responsible for
reforestation and prevention of deforestation. Projects
their financial decisions. These videos were originally
are selected by a council composed of sustainability
available only on the website of TV Itaú Corretora. Today,
leaders in the private sector, society, academia and Itaú
we have increased the range of the channels on which
Asset Management.
the programs are aired, which include TV Investshop,
Itaú Corretora’s Youtube channel and podcasts on Twitter
Excelência Social
and on the websites of Itaú, Itaú Personnalité and Itaú
FIES is an option for a socially responsible
Uniclass. Non-clients may also watch the programs.
investment, since it invests in shares of companies
with recognized ESG practices. Furthermore, it
We produce two online TV shows exclusively with
allocates 50% of the investment fund’s management
financial education content. In the Orientação Financeira
fees to Non-Governmental Organizations (NGOs)
(Financial Guidance) program, the Education Manager
working on childhood, environmental and
for WMS Investors and banking and market experts are
employment education. From 2004 to 2010, FIES
interviewed on the best ways for people to manage their
allocated over R$13 million to social programs
financial affairs and take advantage of opportunities to
developed by 77 NGOs from all over Brazil, benefiting
reach goals. In the Planejamento Financeiro (Financial
over 15,000 children and youths and over 1,500
Planning) show, a bank economist directly answers clients’
education professionals. In 2011, over R$3.6 million
financial questions that arrive via e-mail. Each client is
will be invested in technical and financial support to
guided on how plan to reach their objectives, always
20 organizations. FIES currently has a net equity of
taking into account the suitability recommendations.
R$273 million.
In 2010 we produced 36 videos on financial education,
which were viewed by approximately 90,000 people (10%
of total visits to the TV). (FS16)
Governança Corporativa
Itaú Governança Corporativa (Itaú Corporate Governance),
with R$360 million, invests in shares of companies with
74
Commercial Banking
74
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
We produced two online
TV shows exclusively with
financial education content in
which specialists of the bank
provide tips on how to manage
financial affairs.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
75
Business
Itaú BBA
notes totaled R$18.9 billion, and securitization operations
amounted to R$4.7 billion in 2010.
Expanding inside and outside Brazil
IBBA is responsible for handling the corporate segment
We are extremely proud of being the first Brazilian bank to
and the investment banking activities. IBBA’s management
lead National Treasury funding, by way of the Global 2041
model is based on building close relationships with clients,
issue, which totaled US$500 million. With respect to variable
meeting their needs and offering customized solutions. The
income, we are proud of being one of six bookrunners of
services in the corporate segment include the provision
the public offering of Petrobras shares – the largest ever
of banking services to large companies, whereas the
carried out in the world – in addition to having book run
investment banking activities include the offer of financing
the amount of R$132.3 billion in public offerings. We have
to this segment by means of fixed and variable income
kept this position among the market leaders and taken part
instruments, among others.
in 59% of the operations, which represents 89% of the total
volume issued in the period.
2010 was a year of great achievements for Itaú BBA. The
wholesale and investment banking total increased 66%, as
Additionally, IBBA provided financial consulting services
compared to 2009, to R$2.8 billion. This was a result of the
to 35 merger and acquisitions operations, and closed
consistent service to companies, in periods of both crisis and
the period ranking second in the number of operations,
economic upturn. We understand that the sustainability of
according to Thompson.
our business is dependent upon the long-term relationships
IBBA closed the year with 3,000 large and medium-sized
we build with our clients.
companies in Brazil and the Southern Cone as clients, and
The segregation of clients into Corporate (companies with
responsible for the 1,000 largest institutional investors
annual revenue between R$150 million and R$500 million)
operating in Brazil and abroad. Loans account for 40% of
and Large Corporate (above R$500 million) has enabled us
the revenue in this area, and the clients’ profile is quite
to provide a more specialized service. Adopting efficiency
differentiated, which causes the bank to permanently
parameters and developing customized products have led to
invest in training and hiring talent. We have a staff of 3,000
the bank’s leadership in key operations.
employees, who have an in-depth understanding of clients
and who develop products and services to cater to such a
Because we are well prepared, we can meet companies’ high
diversified portfolio.
demand for sophisticated products, such as fundraising to
keep up with the growth of the Brazilian economy. Itaú BBA,
In 2010, IBBA made progress in the structuring of
as the largest investment bank in Brazil, has a fundamental
international units, by optimizing service to clients in
role in representing Brazilian companies and Brazil to
other Latin America countries, as well as to Brazilian clients
international investors.
undergoing international expansion. Accordingly, IBBA has
started operations in Argentina and Chile. Peru will be the
The outcome of this investment in reporting the qualities of
next target, in line with Itaú Unibanco’s strategy of being a
Brazilian companies and our market was the international
regional player.
placement of a significant volume of debt securities of
Brazilian companies. The reward for our efforts was to lead
In order to service the distribution of Latin American
in the Anbima ranking of the fixed income distribution
companies’ securities in the global markets, with
category in December 2010, with a 23.3% market share, and
approximately 2,000 corporate clients and 200 institutional
to rank second in international fixed income issue, in which
investors, in very different countries, we have modernized
we operated as joint bookrunner of offers, with a total volume
our offices in New York, London, Hong Kong, Tokyo and
of US$13.3 billion. Issues of debentures and promissory
Dubai. Itaú Europa is now called IBBA Internacional, which is
76
Commercial Banking
57
Itaú BBA
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
part of the strategy of monitoring multinational companies
Itaú BBA’s social and environmental management: policies,
operating in Latin America as well as subsidiaries of Latin
risk assessment, monitoring and staff training
American companies expanding to Europe.
For the purposes of bringing about and implementing
the guidelines set forth in Itaú Unibanco’s Social and
In the investment banking area, our goal for 2011 is to
Environmental Policy for Granting Loans to Corporations
increase the securities issued by Brazilian and Latin American
and meeting the specific needs of IBBA’s clients, we created
companies. In the corporate area, we face the constant
the Itaú BBA Internal Procedures Manual. According to this
challenge of increasing and improving the relationships
manual social and environmental assessment comprises
with our clients, including ensuring sustainability in
not only the analysis of social and environmental risks
this relationship through social and environmental risk
and impacts, but also the assessment of the social and
assessments. Accordingly, we have worked on a project to
environmental management capacity of the economic
improve service to ultralarge clients, and we also plan to
groups and Itaú BBA’s clients along with financed projects.
change the social and environmental risk assessment area
The Itaú BBA Internal Procedures Manual is applicable to
into a strategic area, adding value to our clients.
credit relationships with companies deemed to belong
to the Corporate and Large Corporate segments. This
Itaú BBA’s excellent performance is the result of a series of
classification uses annual revenue above R$150 million as
actions in line with Itaú Unibanco’s new culture. The slogan
its main criterion.
DNA Itaú BBA (Itaú BBA DNA) represents our aim of being
seen as a bank in which people are proud to work – one
The tools used in the social and environmental risk
that is able to attract and retain the best talent in the market
assessment, as defined in the Internal Procedures Manual,
and be the first option for companies seeking transparent,
are, among others: Banned and Restricted Lists, available
modern products and services at a cost suited to the
public information, analysis conducted by specialized
established relationship.
advisory firms, when applicable, and assessment of potential
social and environmental risks and the client’s social and
We believe that the need for financial investment over the
environmental management profile.
next ten years will triple in view of the demand from the 30
million new consumers who have entered the consumer
The process of social and environmental assessment of
market and the other 30 million who will do so in the next
projects involves an analysis of the risks and impacts, as
five years, who are responsible for turning the wheels of the
well as the relevant mitigating factors. The outcome of
economy. All our efforts will make us ready to meet our
this assessment may give rise to recommendations for
clients’ demands in a timely, flexible and competitive way.
improvement actions, taking into account good market
practices. Based on these recommendations, the client
Climate change also poses a challenge and, therefore,
will prepare an action plan, which should be analyzed and
among our priorities is the improvement of our capacity
accepted by the bank.
to deal with this issue, aimed at the medium- and longterm development of mitigation and adaptation tools and
IBBA has examined the possibility of expanding, in the
measures, including financing mechanisms. Additionally, it is
medium term, its client relationships to point out and
noteworthy that IBBA was a pioneer in taking into account
create opportunities for sustainable businesses. Currently
social and environmental aspects when granting credit lines,
the internal policy strengthens the bank’s relationships
having developed its first management system in 2000.
with its clients and other stakeholders, by pointing out
This background means that our executives act as agents
the best market practices both for the client and for the
disclosing and spreading social and environmental risk
banks involved with IBBA in syndicated operations, thereby
management practices to other financial institutions that are
positively contributing to the development of more
peers of Itaú BBA.
sustainable projects.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
77
Business
Additionally, Itaú Unibanco has been a signatory
IBBA also provided the following training programs to our
to the Equator Principles since 2004. Therefore, for
banking areas:
the purpose of complying with the project finance
transactions with amounts equal to or higher than
• Entendendo o que é Risco Socioambiental, an
US$10 million, it assesses the social and environmental
e-learning course provided to the entire commercial
risks and impacts of projects primarily by using the
and back office areas that have a relationship with
criteria established by the Performance Standards
the social and environmental risk assessment team.
and the Environment, Health and Safety Guidelines of
This training program was aimed at communicating
the IFC. Among the topics addressed by these criteria
the concepts related to social and environmental
are biodiversity, involuntary resettlement, health and
risk assessment in Itaú BBA, as well as the associated
safety of communities and work conditions (related to
business opportunities;
occupational health and safety), with the purpose of
• Monitoring of social and environmental covenants, for the
preventing slave and child labor.
analysts from the covenants control area, for the purpose
In 2010, the following actions related to social and
of aligning responsibilities in the monitoring of social and
environmental assessment were carried out:
environmental covenants, if any, in contracts; and
• Verification of the social and environmental practices of
• Equator Principles and Social and Environmental Risk
economic groups in connection with the identification
Policy for Granting Loans to Companies, aimed at Itaú
of indications of involvement in activities listed on the
Europa’s employees.
Banned and Restricted Lists, as defined by the Social and
For the purpose of improving the relationships with
Environmental Policy;
external stakeholders, Itaú, through Itaú BBA’s social and
• Meetings with other areas of IBBA involved with Social
environmental risk assessment area, gave presentations at
and Environmental Risk Assessment Management,
the following events:
for the purpose of defining procedures to optimize
• High-level Workshop on Sustainable Banking, a training
the social and environmental risk assessment
[such as the formalization of procedures with the
event for Chinese financial institutions, held in Hong
Products – Onlending BNDES area and the back
Kong by the IFC together with the China Banking
office area responsible for formalizing the contracting
Regulatory Commission;
of operations in compliance with the social and
environmental requirements of the product BNDES
• Carbon Financial Instruments – Challenges and
Finame, as well as new social and environmental
Opportunities for Commercial Banks, Brokers, Asset
requirements for requesting the release of funds for
Management Firms, and Regional Stock Exchanges;
BNDES Automático operations].
• Financing Mechanisms for a Low Carbon Economy, an
In 2010, Itaú BBA’s social and environmental risk analysts
event held by the IDB; and
attended a series of courses, training programs, lectures,
and discussion forums and groups, which contributed
• Sustentabilidad Ambiental y Mercados Carbono:
to empowering the team by improving their knowledge
Retos y Oportunidades para el Sector Financiero
of relevant issues based on the individual needs of the
en América Latina y el Caribe (Environmental
management employees. Overall, seven analysts were given
Sustainability and Carbon Markets: Directions and
this training, which amounted to over 200 hours in courses,
Opportunities for the Financial Sector in Latin
lectures and other events.
America and the Caribbean).
78
Commercial Banking
57
Itaú BBA
78
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
Specialization in the social and environmental theme has
provided us with the most prestigious award in the global
financial sector: Sustainable Bank of the Year, awarded by the
Financial Times and the IFC in the Emerging Markets category.
Specialization in the social and environmental theme
The way it interacts with clients in these operations may
has provided us, for the second consecutive year, with
also be divided into:
the most prestigious award in the global financial sector:
Sustainable Bank of the Year, awarded by the Financial
(a) For financing corporate projects, short-term financing of
Times and the IFC in the Emerging Markets category. (FS1,
structured projects and granting of structured guarantees:
FS2, FS3 and FS4)
by assessing the project risks and impacts and respective
mitigation measures, by using the tools set forth in the Social
Social and environmental risk assessment
and Environmental Policy, and, when applicable, by verifying
IBBA currently carries out, based on conditions and parameters
compliance with the requirements defined in regulations
it defines itself, the social and environmental risk assessment
regarding sources of transferred funds;
of clients with loan operations. In 2010, 20% of Itaú BBA’s total
assets were subject to this assessment. IBBA has been working
toward expanding, in the medium term, its operations as a
(b) For long-term project finance: by analyzing the conformity of the
projects with the criteria established in the Equator Principles.
partner for its clients. It is doing so by identifying sustainable
business opportunities, among others, in the climate change
Economic groups that may have had indicators described in the
and sustainable construction segments.
Banned List and/or involvement with them or that performed the
activities described in the Restricted List. The way we interact with
In relation to 2010, it is possible to divide Itaú BBA’s social
clients in these categories may be divided into:
and environmental interactions with its clients into two
broad activity groupings, as follows:
(a) For indicators described in the Banned List and/or the
economic group’s involvement with them: through request for
Financing of projects and operations related to
clarifications on the event, seeking to identify any changes in
structured projects (bridge loans and guarantees).
the practices by the client;
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
79
Business
(b) For practicing the activities on the Restricted List:
By the beginning of 2011, the Equity Research team already
through an agreement with the client to learn about
covered over 130 companies, of which 115 are in Brazil. In
their social and environmental risk management
Mexico, the coverage reached 21 companies, which were
procedures and verifying whether they comply with
monitored by four analysts. In Brazil, the team is composed
the best market practices. (FS11)
of 30 analysts, covering the equity and fixed income
markets, in addition to the graphic analysis of the markets.
Corretora Itaú BBA
The next steps are the expansion of its presence in Mexico
The brokerage firm for institutional and foreign clients,
and Chile, in addition to the hiring of analysts for other
operating under the IBBA brand, was marked in 2010
Andean markets, such as Peru.
by the consolidation of its leadership in the Brazilian
market and a consistent international expansion. These
Products
clients stated their opinions through a survey conducted
Greater diversification in the portfolio of products was
by Institutional Investor magazine, a publication that
also required to enable us to serve a widely expanding
sets international benchmarks in the segment and that
client portfolio. In order to satisfy the needs of these
annually surveys managers of funds and foundations and
clients, IBBA produces dozens of monthly reports with
other institutional investors to find out which firms provide
in-depth analysis of companies, providing a broad view
the best services.
of relevant sectors, in addition to recommendations
on the strategy to be adopted given the market
On the domestic market, in addition to being
performance. In order to help investors in their decision-
responsible for the largest operations on the
making process, there are also graphic analysis of the
BM&FBovespa in 2010, the group’s brokerage firm was
market and independent reports – Global Connections
recognized by large clients due to the production of
and Global Strategy.
analytical content on the shares traded in Brazil.
In 2009, the brokerage firm acquired a new algorithmic
operating system, which enabled much more efficient
and optimized handling of large orders on behalf of the
clients representing greater distribution capacity and
Total companies covered in Latin America
expertise in the origination and structuring of variable
Brazil
115
income operations.
Mexico
21
Argentina
1
Chile
1
International expansion
In order to make the international expansion a reality,
it was necessary to expand the geographical coverage
of the Research team. With four analysts in Mexico, the
brokerage firm reaches locations in which other areas
of Itaú BBA, as a wholesale bank, does not yet have a
representation office.
Structure
Mexico
4 analysts
Brazil
30 analysts*
Argentina
2**
* Coverage of equities, fixed income and technical analysis.
** In process of expansion. In 2010, IBBA consolidated its
international expansion.
80
Commercial Banking
57
Itaú BBA
Consumer credit
Insurance, private pension
and capitalization
Business abroad
80
81
84
90
Consumer credit
Vehicle financing
The vehicle financing operation of Itaú Unibanco is the
Growth and innovation
largest in Brazil and the world’s second largest by volume
The consumer credit segment offers financial products and
in the banking sector. In 2010, we recorded the amount
services to non-account holders, such as vehicle financing,
of R$58.9 billion in loans, distributed across 3.8 million
credit cards and loans to low-income consumers (to learn
financing operations and representing a growth of 15.2%
more about our credit cards, see page 66).
in the vehicle portfolio balance compared to 2009.
With the growth of the economy, employment and
We operate in all segments. We hold a 34.5% market
consumption in Brazil, 2010 was a busy year for the consumer
share in light vehicles, 25% in the trucks segment and
credit segment, in terms of both growth and innovation.
the leadership in the financing of motorbikes, with a
The strong demand caused leading institutions, such as Itaú
20% market share. Our commercial structures involve, in
Unibanco, to increasingly make investments to seek client
addition to the branches, Banco Fiat, of which we are the
satisfaction and the sustainable growth of operations.
controlling stockholder, accounting for 46% of the volume
of financed cars in the Fiat dealership network. In addition
In the same way that Brazil has changed, the process of
to these dealerships, we have over 13,000 accredited
granting loans has also been revolutionized, stimulated by new
shops, which offer our products to their customers.
technologies and the introduction of new customers to the
consumer market. Payroll advance loans, for example, have
In line with the Todos pelo Cliente attitude, we have made
changed the way loans are granted by redirecting the operation
investments in convenience and post-sales services. On
of credit financing institutions, and the credit card has replaced
the website www.itaucred.com.br we seek to provide
installment-payment products, such as payment booklets.
clients with innovative features, such as carrying out any
and all requests related to the client’s contract, from debt
This scenario has caused us to divide our operation into five
surveys to financing transfers. Our call center has 1,100
business units: Itaucard correntista e não correntista (Itaucard
employees who handle over one million monthly contacts,
account holders and non-account holders), Hipercard, joint
55% of which are resolved electronically.
ventures, Itaucard Lojistas (Itaucard shop owners) and FIC,
our partnership with Pão de Açúcar. These activities are in
The sophistication of our systems, with a databank that
addition to the business as the acquirer of Redecard, which
enables us to analyze the credit simply by requesting
went through significant changes in 2010 in order to adjust to
the client’s Brazilian driver’s license (Carteira Nacional de
the new regulatory requirements of the sector.
Habilitação), enables quick responses and firm decisions
in credit granting. The default rate for the year remained
Itaú Unibanco’s agenda for 2010 – to remain unchanged in 2011
stable. In 2010, payments overdue more than 90 days
– focuses on the improvement and expansion of operations.
represented 2.6% of the total portfolio.
By prioritizing our retention of clients, as well as the pursuit of
gains in efficiency and service quality, we have managed to
An e-learning program on social and environmental
improve the results of the operations, which in 2010 accounted
policies and practices, aimed at employees of Itaucred
for 20% of the bank’s results, 8% more than in 2009.
Veículos, is in progress. It will focus on improving the
team’s ability to identify any possible risks involved in the
We understand that a financial institution must ensure that
credit granting process. (FS4)
its clients are well informed, properly guided and ready to use
credit products. Itaú Unibanco has made efforts to perform
this role, bearing in mind the importance of transparency and
the Todos pelo Cliente attitude.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
81
Business
Online price calculator – Originating from the idea
of a group of employees, the online calculator is an
innovative tool in the financial market. With this tool, the
commercial department has become quicker and more
flexible in negotiating a loan with a suitable price for each
type of client.
Social and environmental management: policies, risk
assessment and monitoring
The Social and Environmental Policy of Itaucred Veículos
– valid throughout Brazil – was implemented to assess
the social and environmental risk/impact of the activities
of companies requesting credit financing for light
vehicles, trucks, buses and road equipment (through
leasing, direct consumer credit financing, Finame and
consortium), credit analysis for individuals and financing
of trucks, road equipment and vans (transportation of
passengers and cargo, through leasing, direct consumer
credit, Finame and consortium). The policy is based on IFC
Standards and the Equator Principles, and the governance
body responsible for approval is the Superintendency
of Commercial Loans. The policy is not available to the
general public.
The social and environmental risk analysis is applicable
to commercial clients of Itaucred Veículos, either account
holders or non-account holders, with credit of at least R$5
million, having as a reference point the existing risks or
credit limits available in the conglomerate.
When adopted for companies that meet the eligibility
criteria, the social and environmental risk analysis
is used as a credit mitigating factor. The Social and
The online price
calculator provides
more agility in
the negotiation of
financing that best suits
the client’s profile.
Environmental Policy of Itaucred Veículos does not affect
the creation of and decisions on future products, but
rather the decision on granting credit to companies, by
assessing any possible social and environmental risks
of approving each operation. Accordingly, Itaucred
Veículos shows its care for stakeholders with its concern
and transparency responsible social and environmental
practices and operations.
Research conducted with credit protection bodies and
on websites (such as Google and the Ministry of Labor,
82
Commercial Banking
Itaú BBA
57
76
Consumer credit
Insurance, private pension
and capitalization
Business abroad
82
84
90
among others), in addition to the possible application
• Internally supporting sustainable development programs
of a social and environmental questionnaire, are used as
and actions and providing guidelines for training the
mitigating factors in the credit granting assessment. The
personnel of the commercial and corporate credit areas;
results of this research, together with other credit factors,
influence the bank’s decision of whether or not to grant
• Contributing to the commercial clients’ improvement of their
credit, therefore leading to greater decisiveness in the
social and environmental practices. (FS1, FS2 e FS3)
granting of credit.
Redecard
Also noteworthy is the fact that commercial clients are
In Redecard, we have experienced intense activity with the
classified, based on their operating activities, by social and
new regulation of the sector, aimed at clients, which is now
environmental risk level. This classification, which establishes
governed by the Central Bank of Brazil. As a market leader,
specific rules related to the mandatory performance of social
Itaú Unibanco had a proactive role in the development
and environmental procedures by Itaucred Veículos, involves
of this regulation. And 2010 was a year characterized by
five categories:
negotiations with stockholders, the government and shop
owners, requiring a set of skills we had to develop.
• Companies classified under risk A (high risk): if the
risk already existing in Itaucred (plus the amount of
Redecard used to dominate the market and, with the
the proposed transaction) is equal to or higher than
opening of the sector to new competitors, the price
R$500,000. For companies under the social and
competition became a significant component. We have
environmental category A, the social and environmental
started to operate under the Visa brand and have included
questionnaire for specific assessments is applied upon
the Hipercard brand in the same platform.
credit request;
In 2010, the financial volume of credit transactions
• Companies classified under risk B (medium risk): if
increased 25.6%, whereas the debit volume rose 22.1%,
the risk already existing in Itaucred (plus the amount
compared to 2009. Net income of R$1.4 billion increased
of the proposed transaction) is equal to or higher than
0.3% compared to 2009.
R$1 million;
Noteworthy is the fact that Redecard was chosen in
• Companies classified under risk C (low risk), whether account
2010, for the second consecutive year, for inclusion
holders or non-account holders: there is no need for the social
in the DJSI portfolio.It joined a select group of 318
and environmental risk analysis;
companies from 27 countries, of which only seven are
Brazilian – a group that includes Itaúsa Investimentos
• Clients included in the Banned List: these clients must not
and Itaú Unibanco Holding.
carry out loan operations with the bank;
China Unionpay
• Clients included in the Restricted List: there is nothing to
In 2010, Itaú Unibanco entered into a commercial and
prevent the bank from operating with these sectors, but the
cooperation agreement with China Unionpay Co. Ltd. (CUP),
operation must be approved by the Credit Commission.
which will enable clients of the Chinese bank to make
withdrawals in over 30,000 ATMs of Itaú Unibanco. With its head
The main risks and opportunities associated with the credit
office in Shanghai, CUP has over 400 associated institutions
analysis are as follows:
and is present in over 90 countries. Redecard, an Itaú Unibanco
Group company, has also entered into an agreement to enable
• Establishing guidelines and tools for assessing social and
the shops of its accredited network in Brazil to accept the 2.2
environmental risks in the credit granting analysis;
billion debit and credit cards issued by CUP.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
83
Business
Insurance, private pension and capitalization
Strategic restructuring
Garantec
In 2010, the process of restructuring the insurance, private
Garantec, a subsidiary of Itaú Unibanco Holding S.A. which
pensions and capitalization sector of Itaú Unibanco
works with retail chains in Brazil, maintained its leading
kept the aim of better meeting market demands – but
position in the extended warranty sector, with a 55.4%
without losing the focus on client satisfaction and risk
market share from January to December 2010, according to
management.
data from Susep.
In health insurance, during 2010, the Agência Nacional de
The insurance provides coverage for electrical,
Saúde Suplementar (National Health Agency) approved the
electronic or mechanical breakdowns that occur after
transfer of 100% of Unibanco Health Insurance’s corporate
the manufacturer’s warranty ends, and covers the cost
control to Tempo Participações.
of labor and parts needed to repair the unit. The main
products covered are: household appliances, electronics,
The restructuring of the insurance segment also included
computer equipment, mobile phones, fitness equipment,
the approval by Susep of the purchase of XL SWISS’s stake
watches and even furniture.
in Itaú XL Seguros Corporativos S.A. by Itaú Seguros. Itaú
Unibanco will be the owner of 100% of Itaú XL Seguros
In 2010, Itaú Unibanco stepped up its communication
Corporativos S.A., thereby maintaining its structure
with clients to make this type of insurance, still
for catering to large industrial and commercial clients,
considered new in Brazil, as popular as it has become in
including, among other industries, construction, chemicals
the United States. In October, after conducting surveys
and petrochemicals, energy and infrastructure. The deal
with retailers, sales teams and consumers, Garantec
also allowed us to offer innovative products tailored to the
changed the spelling of its name – Garantech – and
needs of large-scale projects to over 3,000 clients of Itaú
adopted a new logo, seeking to convey to the public its
BBA. At the end of 2009, Itaú Unibanco sold the 14.03%
main attributes of efficiency, closeness of relationships,
stake it held in Allianz Seguros S.A., a Brazilian subsidiary of
partnership and innovation.
the German insurer Allianz.
Guarantec’s Garantia Sustentável program
The changes have already begun to show results: we
In December of 2009, Garantec launched the Garantia
became a leader in the insurance sector – taking into
Sustentável (Sustainable Guarantee) program, designed
account the 30% share in Porto Seguro. The notable
to promote the proper collection and disposal of
products here include, in the individuals segment, Personal
electronic waste.
Life and Extended Warranty and, in the corporate segment,
Group Life and Corporate Solutions.
This program is aimed at collecting batteries and electronic
equipment that are broken or no longer being used, such
Total revenue from insurance, pensions and capitalization
as mobile phones and portable CD players, which can
reached R$5.6 billion in 2010, while technical provisions
be harmful to the environment because they contain
totaled R$60.7 billion.
substances that can contaminate soil, water and food we
consume. Garantec also encouraged its authorized technical
Furthermore, we continue improving our operational
assistance providers to use environmentally appropriate
efficiency, controlling costs and investing in new
disposal methods for old replaced components – such as
technologies to increase our productivity, simplify processes,
CRTs, monitors and electronic boards. The items collected are
eliminate risk,improve our relationships with suppliers and,
sent to specialized partner companies, responsible for the
most importantly, increase client satisfaction.
treatment, recycling and reuse of the materials.
84
Commercial Banking
Itaú BBA
57
76
Consumer credit
81
Insurance, private pension
and capitalization
84
Business abroad
90
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
85
Business
As a result, this project collected 2.2 metric tons of materials
Environmental insurance
in 2010 – which represents 0.20% of the total of products
Civil Environmental Liability Insurance is part of the product
sold with extended warranties by partners in the same
portfolio of Itaú Seguros Corporate Solutions. It provides
period. Part of the collected material comes from our
coverage for both sudden pollution events and for gradual
sales, and part comes from voluntary disposals. Today, the
pollution events, which represent a broad scope of solutions
program is active in 18 cities in the state of Sao Paulo, and
for the insured clients. In 2010, our portfolio generated
the goal is to extend the initiative to other regions of Brazil
approximately R$18.6 million in premiums, with insurance
in 2011, considering the public awareness of the need to
policies sold mainly in the Southeast of Brazil.
minimize environmental impacts caused by waste from
electronic equipment. (EN27)
This product offers coverage to companies from
different sectors, such as chemical, metallurgical,
Apólice Eletrônica
hospital, steel, pharmaceuticals and automotive, among
The Apólice Eletrônica (Electronic Policy) project seeks
others. It also helps protect society from risks brought
to generate economic, social and environmental
on by pollution events. This coverage represents a
benefits by decreasing the use of natural resources, and
guarantee that there will be funds available to properly
mitigating our impact on the environment by reducing
remedy damage to the environment and to third parties,
paper printing and the materials used in the process
aiming at maintaining a standard of environmental
of issuing and distributing policies. More information
quality and public health protection.
about this product is available on the Portal do Segurado
(Policyholder Portal) - www.itau.com.br/insurance
Therefore, besides the environmental benefits, the
(requires login and password).
coverage offered also provides social benefits, given that
when there is a claim to cover the costs of remedying
IBCC Partnership
environmental damage, the third party affected can also
Part of the income from sales of life insurance for
receive support. In line with this, we must understand
women is passed on to the IBCC, contributing to
that remedies will be applied to an asset that belongs to
the work of this important institution in promoting
the community – the environment, in accordance with
the awareness, diagnosis, prevention and treatment
what is established in article 225 of the Brazilian Federal
of cancer.
Constitution of 1998.
Corporate Insurance Solutions
Social and environmental insurance management: policies,
In 2010, the area of Corporate Insurance Solutions of
risk assessment, monitoring and staff training
Itaú Seguros S.A. improved its processes, products and
The underwriting policy applies to all clients who request
structure. The aim was to seek the best performance in
these products, and the criteria that are used are similar in
meeting the needs of large companies, by providing
all Brazilian states. When it comes to environmental risks
insurance solutions to major industrial and commercial
and pollution, the specifics of each state are addressed on a
clients in the construction, chemical and petrochemical,
case by case basis.
electric energy and infrastructure industries, among
others, who play a relevant role in the development of
To operate this structure, the Corporate Solutions
Brazil. The solutions offered reflect the commitment of our
department of Itaú Seguros has professionals with
institution to providing insurance to customers who seek
extensive experience in underwriting and developing
long-term development that is consistent with the kind of
civil liability insurance. They also have specific training in
economic growth we pursue and capable of maintaining a
environmental engineering and civil engineering, graduate
harmonious relationship among people, the planet and the
training in environmental management, and experience in
financial viability of the investments that we support.
industrial risks inspections and scheduling environmental
86
Commercial Banking
Itaú BBA
57
76
Consumer credit
81
Insurance, private pension
and capitalization
86
Business abroad
90
hazards inspections. Outsourced professionals with
the claims involving our products and the business
training in environmental risk assessment can also be
continuity of our insured clients.
hired. Internally, there are frequent discussions among the
risk underwriters to improve knowledge exchange and
Two physical changes that may occur as a result of climate
enhance the skills of those involved with the assessment of
change, and that receive a lot of attention from the
environmental risks. (FS4)
insurance company, including in prices, are flooding and
storm risks. Given this, the field inspectors always seek to
Training needs are assessed internally, by the area
analyze such risks, and in their reports ultimately advise the
of underwriting in general, and are designed to be
insured client or prospective insured client to watch out for
offered as either in-company training or external
points of vulnerability and to adopt procedures to improve
events, with opportunities for training with global
controls and risk management measures in their industrial
reinsurers. In 2010, around 30 underwriters took a 12-
or commercial operation, designating the level of exposure
hour training course on civil liability insurance, which
as high, moderate or low. For events involving risk of
included environmental risks involving environmental
storms, heavy rain and flooding, inspections seek to focus,
pollution. (FS1, FS2, FS3 and FS4)
among other suggested measures, on the insured client’s
goods and equipment that are located in outdoor areas
Climate change
or subject to damage by water, cross-referencing this with
As regulations relating to climate change grow
data from an analysis of the region’s susceptibility to these
worldwide, the market for products with low emissions
risks and generating a recommendation if adjustments
of GHGs – as well as those developed using new
are necessary. The adjustments that may be suggested
technologies – increases, and so does the number of
are, among others: construction of covered brick areas,
companies investing in energy efficiency and allocating
construction of wind barriers by planting trees around the
resources to clean energy. This situation is the basis of a
industrial or commercial unit and strengthening of existing
low carbon economy along with the new markets which
brick structures.
the bank can access.
Therefore, the insurance product and the services
Itaú Seguros believes that climate change will create a
connected with the purchase of such products can
framework of risks and opportunities for the insurance
positively and effectively influence the adjustments
industry, and addressing this aspect of the operation
made by clients to natural phenomena resulting from
will allow us to handle the company’s current and
climate change, protecting their assets and mitigating
emerging issues relating to sustainability in the
future risks. (EC2)
insurance industry more rigor.
Support initiatives for clients’
We seek to reflect on and consider climate change
insurance programs
issues strategically and in view of the future, both in
Itaú Unibanco and its clients develop insurance education
underwriting and in the development of new products.
initiatives that aim to explain the importance of insurance
An example of this mindset is the opportunity for
products to support, in a complementary and effective
alignment with global reinsurers who have expertise on
way, the management of business risks. We can mention,
climate change issues through the contacts we have with
among other things, instructive support on products
the insurance and reinsurance markets worldwide.
such as Directors and Officers (D&O) Liability Insurance,
Errors and Omissions (E&O) Insurance, and Civil Liability
Considering this, the physical changes that may arise as
Environmental Insurance. The risks covered by these
a result of climate change represent potential risks to
products are complex, and sometimes go unnoticed by
our business and may influence, directly or indirectly,
the potential client.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
87
Business
Financial education in insurance
redemptions and transfers of resources to other entities,
The insurance area offers specific training for
resulted in outstanding net funding when compared to the
prospective client companies and brokers about
overall corporate pension market.
innovative insurance products such as Environmental,
The assets portfolio of Itaú Vida e Previdência contains the
D&O and E&O.
fund Unibanco Previdência Corporate Responsabilidade Social
In this training program we explain the risk types that
(Unibanco Previdência Corporate Social Responsibility).
these products are intended to cover, and clients are
This fund can invest up to 49% of its portfolio in shares of
advised about the potential risks that may be part of their
companies listed on the ISE of the São Paulo Stock Exchange
operations and that could be addressed through adequate
(Bovespa), and the remainder in fixed income securities.
insurance coverage. (FS16)
During 2010, the measures that focused on the quality of
Pension
customer service featured prominently. Because of them,
Itaú Unibanco has reached R$51.4 billion in total pension
Itaú Vida e Previdência was named The Company with the
reserves in 2010, with R$41.9 billion in plans for individuals and
Most Respect for Consumers, an award sponsored by the
R$9.5 billion in corporate pension plans.
Consumidor Moderno (Modern Consumer) magazine, in
the Private Pension category. The main aspects that were
For the individual pension plans, the business strategy is based
analyzed were quality of customer service – encompassing
on financial consulting, while observing the profile and needs
the entire contact cycle – as well as product quality, company
of the clients to maximize the tax benefits in the existing
image, price and differentiators in the area of social and
pension plans.
environmental responsibility.
Product innovation has been important for the sustainable
Capitalization
growth of the pensions for individuals, and we have plans
In 2010, sales reached approximately R$1.8 billion, with
whose investment policy stands out from others available
technical reserves of around R$2.6 billion.
in the market. One highlight is the Flexprev Índice de Preços
(Flexprev Price Index), which invests primarily in bonds
Itaú Unibanco takes part in environmental and social
linked to the National Broad Consumer Price Index (Índice
responsibility initiatives which transfer resources from sales of
Nacional de Preços ao Consumidor Amplo ) and whose
various products, primarily capitalization certificates.
coupon payment periods exceed five years. Another unique
product is Flexprev Valor (Flexprev Value), which invests part
The partnership with the AACD was established in 2007 with
of its resources in shares that, in the opinions of specialized
the capitalization plan from Unibanco and was extended on
managers, have more chances of appreciating in value
July 1, 2010 to include the capitalization plan from Itaú.
according to the analysis of the company fundamentals. In
December 2010, Flexprev Turbo RF, another groundbreaking
From January to December 2010, the AACD received
product, was launched. This is a fixed income fund investing in
R$2.1 million from Itaú Unibanco. The institution promotes
fixed rate and floating rate securities, aimed at beating the IMA
rehabilitation and social inclusion for people with physical
Geral index (excluding bonds pegged to the IGP-M index).
disabilities throughout Brazil.
In corporate pension plans, the fundraising highlight was
the achievement of significant transfers from other private
pension organizations and a consistent rising trend in
sales revenue from its existing portfolio of clients. This
trend, combined with a successful strategy for retention of
88
Commercial Banking
Itaú BBA
57
76
Consumer credit
81
Insurance, private pension
and capitalization
88
Business abroad
90
Our target
is to reach a
leadership
position in Latin
America: we
are a Brazilian
bank with
Latin American
aspirations.
Itaú Branch in Argentina
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
89
Business
Business abroad
In 2010 Itaú Unibanco entered into a partnership
with BNDES for the creation of a credit line aimed
Focus on Latin America
at fostering Brazilian exports to the Mercosur
The international presence of Itaú Unibanco has been
countries. The project started with Argentina
increasing year after year, particularly in Latin America. A
but we intend to expand the credit to the other
little more than 10% of our earnings are already generated
countries in the region where we already operate,
abroad. Today, the institution has retail and private banking
such as Chile, Paraguay and Uruguay. Given the
operations in many South American markets such as
expertise of Itaú Unibanco in Latin America, mainly
Argentina, Chile, Paraguay and Uruguay. The bank also
in the small and medium-sized company niche, the
operates in North America, Europe and Asia, where it carries
bank led the structuring of this credit line along
out corporate and private banking, brokerage and asset
with BNDES. This is why we were the first institution
management operations.
to offer the product.
In 2010, virtually all our foreign units underwent reformulations
Argentina
as a result of Brazil’s positive image abroad – where it is seen
In 2010, the main innovation of Banco Itaú Argentina
as one of the most promising emerging countries – and also
in the corporate segment (micro, small, medium and
as a result of the internationalization of Brazilian companies.
large companies) and individual segment was the
Our units are strategically located, particularly the European
launch of Itaú Personnalité, a strategy through which
operations, with units in Portugal, England, Spain, France,
we provide a differentiated model of service. The bank
Germany, Luxembourg and Switzerland.
also made a strategic alliance with TAM Airlines to offer
Argentine costumers a co-branded credit card. And in
Itaú Unibanco offers foreign institutional clients a
the last quarter of 2010, Banco Itaú Argentina entered
complete package of products and services, such as asset
into an important commercial agreement, which will
management, fund management, custody, alternative
allow for an increase in the client base by launching a
products, equities, fixed income, foreign exchange,
co-branded card.
guarantees and treasury products. Foreign institutional
clients are served by specialized staff composed of
In Argentina, Itaú Unibanco has a network of 81 branches
professionals of different nationalities as well as by
and 1,514 employees. The main products offered to
relationship managers based in our units in New York,
individuals are savings accounts, personal loans and
London, Hong Kong, Tokyo and Dubai.
credit cards. For corporations, the bank offers financing,
treasury products – such as derivatives and foreign
Southern Cone
exchange – and syndicated loans.
Our aim is to be the leading bank in Latin America in
the near future: we are a Brazilian bank that has Latin
Total assets amounted to R$2.3 billion in 2010 and
American aspirations. Our strategy is based on the
income before taxes was R$1 million. We highlight the
idea that we have to make clients who are searching
fact that we needed a lower provision for loan losses in
for financing services in the region think of Itaú
the period.
Unibanco first. In 2010 we prepared to reach this target,
disseminating Itaú Unibanco’s new vision, Nosso Jeito de
Chile
Fazer, and the Code of Ethics to all our units.
In Chile, Itaú Unibanco operates in the corporate
segment (micro, small, medium and large companies)
In 2010, the credit card clients were able to enjoy events
and the individual segment focused on medium and
and promotions, such as discounts in many establishments
high income clients, offering them a wide range of
and the summer event that took place in Punta Del Este.
products. This unit has more than 2,000 employees.
90
Commercial Banking
Itaú BBA
57
76
Consumer credit
81
Insurance, private pension
and capitalization
Business abroad
84
90
The growth of the Chilean economy resulted in some
Total assets amounted to R$3.6 billion and net income
important actions by Itaú Unibanco in Chile in 2010. Two
was R$54 million. Increased earnings from credit card and
branches were opened, bringing the total to 75. The ratings
pension fund operations, in addition to the need for a lower
agency Moody’s attributed an A3 (“upper-medium grade”)
provision for loan losses, were the highlights.
foreign currency rating to Itaú Unibanco in Chile, providing
further access to the network of external financing.
Paraguay
The high point in 2010 in Paraguay was the change
The rating, together with the prestige and reputation of Itaú
from the Interbanco brand to the Itaú brand. After the
Unibanco in the foreign markets, helped the bank obtain
change, which took place on July 12, 2010, the bank
a syndicated loan of US$200 million, initially provided for
started to use the same brand in all regions where it
at US$150 million, maturing in two years and contracted
operates. In Paraguay, Itaú Unibanco has a service
under very favorable conditions. The funds will be used
structure in the individual and corporate segments
to further leverage our growth in that country, which is
(small, medium and large companies, agribusiness, and
already twice as high as that in the financial system.
institutional clients), in addition to 19 branches and
517 employees.
Our target is to grow 50% above the market average
and consolidate our leadership in the ABC1 segment
Credit cards play a very important role for us in the
(the middle class as classified by the British National
generation of income in Paraguay. In 2010, the institution’s
Readership Survey), with a market share of 18%. The
total assets amounted to R$2.3 billion, with a special
bank is also concentrated in the corporate segment
highlight on the growth in loan operations, mainly in the
in Chile, especially the niche of small and medium-
corporate portfolio. Net income totaled R$94 million in the
sized companies, as well as the private banking and
year, helped by the growth of the portfolio. However, these
investment banking operations.
results were affected by non-recurring expenses arising from
the change of the brand.
Another achievement was the launch of the university loan
in the Chilean market, which has significantly contributed
Europe
to the growth of the institution’s retail portfolio in Brazil.
The banking activities of Itaú Europe are developed
In 2010, total assets of Itaú in Chile amounted to R$12.3
in Portugal, England, Luxembourg, Switzerland, Spain,
billion, whereas the loan portfolio totaled R$9 billion,
France and Germany and are mainly focused on
representing a 21.26% increase over 2009. Net income was
international corporate banking, capital markets and
R$169 million, with an emphasis on the growth of the loan
private banking activities. The work is conducted in
portfolio and the results of a better credit granting process,
close cooperation with the institutions and areas of the
which is responsible for reducing the default rate for loans
conglomerate that coordinate these activities in Brazil.
overdue for more than 90 days.
In 2010, we started our operations in Zurich, Switzerland.
Uruguay
This subsidiary, which is linked to the holding company,
In Uruguay, Itaú Unibanco operates in the corporate and
will operate in the private banking segment and its main
individual segments by means of 21 branches, two of
objective is to serve Brazilian and Latin American clients
which were opened in 2010. The main products offered
seeking global investment opportunities.
are credit cards, cash management, trade financing,
investment services and private pension funds. In 2010,
The consolidated assets of Itaú Unibanco’s operations in
we became the Visa billing market leader and entered
Europe totaled R$12.7 billion, and managed assets from
into a partnership with Telefônica Movistar to issue the
the private banking segment amounted to R$21.1 billion.
Movistar Itaú credit card.
Net income was R$96 million on December 31, 2010.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
91
Relationships
Relationships
Transparent
and long-lasting
relationships
• Employees
• Clients
• Stockholders
• Suppliers
• Government
• Media and Public Relations
The development of sustainable
management requires transparent
relationships and open dialogue between
an organization and stakeholders.
• Environment
Itaú Unibanco is increasingly concerned about developin lasting
relationships with clients, employees, suppliers, stockholders, media,
government, and society as a whole by means of transparent practices.
The bank believes that, to be an organization that creates value,
long-term relationships must be developed. This can be achieved
through communication channels that are always evolving, a
willingness to listen and evaluate the requests of all stakeholders
and the development of policies and strategies that can lead to
the improvement of services, products and processes.. (Labor
Management Approach)
Transparency is also fundamental to ensure that our clients receive
proper treatment in their relationship with the bank, that employees
On the website
Todos pelo cliente, Liderança Ética e Responsável,
Carteirada não Vale and Brilho nos Olhos. These
are four of the 10 attitudes of Nosso Jeito de
Fazer, which you will get to know in detail
by visiting the website of the Itaú Unibanco
Annual Sustainability Report. Visit also the
chart with the number of employees in Itaú
Unibanco’s workforce in each region of Brazil
in addition to details on the Prêmio Todos pelo
Cliente and the organization’s occupational
safety and health program.
are able to perform their work according to the principles and ethical
values we want to undergird our growth, and that our suppliers,
partners and stockholders trust the company and its accountability.
Itaú Unibanco has made a commitment to influence society in
general by promoting social investment actions to improve education
and increase cultural access.
By fully understanding how its operations impact – directly or
indirectly – the environment, the bank contributes to a better use of
natural resources. (Sector Management Approach)
On the iPad and in the Magazine
Read the box that describes the seven
behaviors highlighted in the Guia Todos pelo
Cliente (All For The Client Guide), such as “Trate
o cliente como você gostaria de ser tratado”
(Treat the client the way you would like to be
treated) and “Entenda as necessidades do cliente
e surpreenda-o, indo além do que ele espera”
(Understand the client’s needs and surprise
them by surpassing their expectations). In the
section “Our concern about climate change”,
see the article “De olho na sustentabilidade”.
Relationships
Employees
Local hiring
Valuable professionals2
Although Itaú Unibanco does not have a formal policy
Valuing human capital is one of the priorities of Itaú
People united by a new culture
Three months after the launch of Nosso Jeito de Fazer, we
for filling vacancies with residents of the communities in
Unibanco’s management and sustainable performance
“To be a leading bank in sustainable performance and client
conducted a survey to assess the practical application of the
which it operates, it does adopt practices for local hiring.
strategy. In 2010, we completed the consolidation
satisfaction.” (Profile 4.8) The new vision of Itaú Unibanco,
ten proposed principles. Some 54,000 employees participated
Of the 15,853 members of senior management – positions
of the partners and associates program, through
disclosed at the beginning of 2010, is quite challenging, and
(60% of the total), which permitted us to identify strengths
concentrated in Central Administration Offices, located
which high-performing employees who think in an
for us to reach it, it is essential that all employees are in line
and issues for improvement.
in the capital city of São Paulo – 82% come from the local
institutional way and are a model of adherence to
community, that is, from São Paulo. (EC7)
the conglomerate’s values, as well as an example of
with our values and principles. One of the most important
achievements over the year was the strategy to encourage the
In addition to this initiative, a number of in-house
leadership and management, can advance further in
engagement of leaders so the new organizational culture can
communication actions focused on employees contributed
their careers. (Labor Management Approach)
be disseminated among all staff members and bring benefits
to a better understanding of the attitudes. Through practical
for both the bank and its clients.
examples published in the newsletter, culture quizzes and the
hotsite of Nosso Jeito de Fazer, people were enabled to better
Total number of own employees,
by region (in Brazil) (LA1)
The appointment of partners and associates considers
the performance measured by the Strategic Planning for
understand the meaning, the advantages and what the bank
Region
2,010
Personnel (Planejamento Estratégico de Pessoas – PEP),
expects to achieve with the adoption of Nosso Jeito de Fazer.
South
9,341
launched in 2009, and how these professionals spread the
Southeast
81,269
principles and values of Itaú Unibanco to their teams.
set of ten attitudes that will enable us to achieve further goals
In March 2010, we started the Portas Abertas program, which
Center-West
3,962
in the future. These principles – also internally known as the
organizes conversations without any set agenda with Roberto
Northeast
6,530
These professionals may invest a percentage of their
10 Commandments – were launched in February 2010 at the
Setubal (CEO), Pedro Moreira Salles (Chairman of the Board
North
1,214
bonus in Itaú Unibanco shares, and, in doing so, receive
Encontro entre Líderes, which took place in the city of São Paulo.
of Directors) and Ricardo Marino (one of the Directors). These
Total
102,316
a consideration from the company. As a result, their
Since then, everybody has been responsible for putting them
discussions are intended to bring different hierarchical levels
commitment to long-term sustainable results and
into practice.
closer together and stimulate the exchange of experiences
alignment with the stockholders’ interests are constantly
and suggestions so that we can achieve the vision of Itaú
strengthened. Participating in the program means
This clear vision represents the long-term commitment made
by Itaú Unibanco to clients and society. The way to comply
with this commitment is summarized in Nosso Jeito de Fazer, a
Consolidating the new vision and involving all employees
Unibanco by practicing Nosso Jeito de Fazer. Over the year,
is not an easily or quickly performed task, but 2010
235 employees participated in the program, in 16 groups that
allowed us to obtain satisfactory results towards it.
contributed with more than 30 different ideas that are already
Specific awareness programs designed for the main
being addressed by the company.
continuously building and improving the conglomerate’s
Itaú Unibanco in the fight against corruption
culture and performance.
In 2010, the monitoring routines for assessing
All employees of Itaú Unibanco (own employees, based in
leaders were carried out for the new organizational
risks related to corruption were applied only to
Brazil) are included in the performance evaluation model.
culture to be learned and spread. The action of the Nosso
Itaú Unibanco S.A. These risks are specified in the
Of all the employees:
Jeito de Fazer Map, for example, had the participation
Corporate Policy of Combating Corruption and
of approximately 9,600 employees by December 2010.
Holding company’s total number of employees (LA1)
We also organized the Nosso Jeito de Fazer workshop,
Bribery (HF-22), which regulates corruption together
• approximately 35,000 are in the Performance
with the Code of Ethics of Itaú Unibanco. Over the
Management Program;
which was designed for officers and superintendents and
Hierarchical level
2010
year, neither employees nor managers were trained
involved 96% of these employees.
Management
15,853
in policies and procedures combating corruption in
• the others are included in programs such as AGIR
Administrative
52,616
the organization. Corruption and bribery offenses
(network of branches and commercial departments)
The new organizational culture was also conveyed to all Itaú
Production
39,403
were neither reported nor investigated, and there
or proprietary programs for performance evaluation,
Unibanco employees abroad. This process was conducted
Trainees*
168
were no lawsuits against the organization or its
considering the specific nature of the business.
by means of experience and knowledge exchange programs
Total
108,040
employees. (SO2, SO3 and SO4)
between the units and the parent company, and the
* From 2009, the Trainee group was excluded from the Administrative total.
For 2009, the name of the process was changed
participation of employees in training programs organized
from Performance and Goal System to Performance
in Brazil and abroad, following a global strategy but
Management Program. (LA12)
respecting local abilities. (Think globally, act locally). (Labor
Management Approach)
Companies considered for this report (limit):Itaú Unibanco, Hipercard, Itauprev,
Itauleasing, Itaú Unibanco Holding, Banorte, Megabonus, Microinvest, Dibens, Provar
Negócios, Luizacred, Financeira Itaú, Maxfacil, Fináustria Part, Fina Prom Servs, Banco
Fiat S.A., Trishop, Fic Promotora, Facilita, Fai, Total Serviços, Itaú Seguros, Itauseg Saúde,
Orbitall, Kinea, Banco Itaucard, Icarros Ltda., Dtvm, Pro-Imóvel, Marcep and Unibanco Prev.
2
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Employees
Clients
Stockholders
Suppliers
Government
Media and Public Relations
Environment
Relationships
Young talents
In essence
Another Itaú Unibanco initiative in connection with
relationships with employees is searching for and
valuing young professionals who prove themselves to
Stakeholder engagement
be capable of and willing to develop their professional
career at the bank. In 2010, the Trainee Program had
in our strategy to mobilize and
promote awareness among our
different stakeholders...
a 95% retention rate – whereas the market average is
70% – and it received applications from approximately
35,000 applicants. The bank selected and hired 87 young
...we consult with stakeholders in panels,
we implemented the Portas Abertas
Program, we organize Client Forums and
make a communications channel available
to our suppliers on the Internet.
people who had graduated between 2007 and 2009, in
a selection process that directly involved 70 leaders of
the company.
The strong competition by recent graduates – 427
candidates per position, or 43,359 applicants in 2010 – is
also the result of a campaign developed by Itaú Unibanco
to show young people that a financial institution needs to
bring together different professional profiles.
Walther Moreira Salles Award
With the motto What are you made of?, the bank’s
information campaign focusing on trainees and interns
Meritocracy is an important principle in the
showed professionals working in areas quite different from
construction of an environment in which
those traditionally imagined in a bank – this is, trading
transparency, respect and valuing employees prevail.
desks and bank branches. Attracting attention through
At Itaú Unibanco, the Walther Moreira Salles Award
social networks and media favored by young audiences,
is an acknowledgment of efforts in the pursuit of
the campaign also promoted the importance of the 2010
sustainable performance.
Internship and 2011 Trainee programs.
In 2010, Itaú Unibanco organized the 10th edition of
The 2011 Trainee Program, whose selection process was
the award, which acknowledges outstanding actions
conducted in 2010, received a record 43,549 applicants, a
and projects. In this edition, some 400 projects were
28% increase compared to the previous year. We had 298
submitted in five categories – Sustainability, Innovation,
finalists, from which we hired 106 trainees.
Efficiency, Service Quality and People Management.
The young employees have the opportunity to take part in
The award ceremony was held at Sala São Paulo. The
a number of qualification and professional development
winners received, in addition to trophies, shares in
programs, the purpose of which is to prepare them to hold
Itaú Unibanco.
positions of leadership in the future.
Created in 2000, the award’s name was inspired
In 2010, for the second consecutive year, we were the
by the ambassador Walther Moreira Salles, the
only financial institution listed among the ten main
founder of Unibanco, who always made a point of
companies in Brazil where young people dream of
considering people the most valuable asset of an
working. The survey, conducted by Companhia de Talentos
organization.
(Company of Talents), interviewed over 35,000 university
students throughout Brazil.
96
Relationships
96
Clients
Stockholders
Suppliers
Government
100
112
113
116
Training and qualification
Itaú Unibanco offers its employees training in its social
and environmental policies and practices, and encourages
participation in public events, forums, courses, lectures
and discussion groups in relation to such topics. There
are specific and general training courses, conducted both
internally and externally. They are available to staff engaged
in social and environmental risk analysis, allocated in various
departments of the bank, and aim to qualify them to
better identify these potential risks as part of the decisionmaking process involving investments, financing and credit
granting. (FS4) (Labor Management Approach)
Corporate training – average hours per
training course, per year* (LA10)
2010
Executive
Management Administrative Production
Board
Total
Number of hours for training
in Personnel Management
0
65,323
20,144
472
85,939
Number of hours for
training each employee by
functional category (other
corporate training)
24
268,813
1,135,943
562,238
1,966,994
Number of trained
employees
5
14,032
49,253
36,149
99,439
* Companies considered for this report (limit): Itaú Unibanco, Hipercard, Itauprev, Itauleasing, Itaú Unibanco
Holding, Banorte, Megabonus, Microinvest, Dibens, Provar Negócios, Luizacred, Financeira Itaú, Maxfacil,
Fináustria Part, Fina Prom Servs, Banco Fiat S.A., Trishop, Fic Promotora, Facilita, Fai, Total Serviços, Itaú Seguros,
Itauseg Saúde, Orbitall, Kinea, Banco Itaucard, Icarros Ltda., Dtvm, Pro-Imóvel, Marcep and Unibanco Prev.
E-learning program in sustainability
Financial education for employees
In 2010, 207 employees enrolled in the Itaú
As a way of managing indebted employees, the bank provides
Unibanco e-learning program in sustainability and
the Guide For Managers – How to Address the Topic with the
underwent 103 hours of training. The bank’s goal
Employee. It also prepares reports to support the management
for 2011 is to launch the same e-learning program
(officers and superintendents), with case studies on the following
in English and Spanish in the first half of the year.
situations: at least one bank product on which payment has been
(Profile 4.16)
overdue for 60 days or more, in an amount equal or higher than
R$200, and/or inclusion on a bad debtor list (the credit reporting
In 2009, an e-learning program on social and
bureau Serasa, financial institutions, retailers, etc.).
environmental risk was developed and made
available to the commercial and credit analysis
The program was launched in 2007 and its purpose is to make
department. This program, which lasts just 30
employees aware of the proper use of credit facilities and to
minutes, is on the institution’s course schedule
enable managers to take preventive action in cases of employees
and is available to new employees. At the
facing financial problems.
beginning of 2011, the course was reviewed to
be made available to the other employees, who
In 2010, as a preventive measure, managers were sent notices
cannot access it yet. (FS4)
with guidance on the judicious use of money. And a review of
the Manager’s Guide is scheduled for 2011.
The employees’ training base is also being
reviewed, so as to adapt the content to each
Itaú Unibanco also addresses the issue of financial guidance in
individual’s needs. In 2010, all of the bank’s
the induction program for new employees. (FS16)
analysts attended the social and environmental
risk event offered by the Brazilian Federation of
Diversity and human rights
Banks (Federação Brasileira de Bancos – Febraban)
The plurality of opinions, cultures, origins and ethnic groups
in partnership with the IDB. (FS4)
among employees is valued and encouraged at Itaú Unibanco,
since it contributes to the durability of the organization. Therefore,
in 2010 we dedicated even more attention to the topic of diversity,
by launching the Valuing Diversity Policy. We have also resumed an
important governance action in the diversity area: the Committees
for Gender and People with Special Needs.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
97
Relationships
In essence
Total employees by gender* (LA13)
Women
Men
Total
2010
%
2010
%
2010
Board of
Directors
0
0%
17
100%
17
Statutory officers
13
7%
177
93%
190
1,430
71%
584
29%
2,014
825
54%
709
46%
1,534
Apprentices
Interns
Total employees by gender* (LA13)
Women
Men
Grand total
2010
%
2010
%
2010
%
Management
6.572
6.08%
9.281
8.59%
15.853
14.67%
Administrative
29,932
27.70%
22,684
21.00%
52,616
48.70%
Production
26,153
24.21%
13,250
12.26%
39,403
36.47%
53
0.05%
115
0.11%
168
0.16%
62,710
58.04%
45,330
41.96%
108.040
100%
Trainees
Total
Diversity
Seeking to increase the plurality of
points of view, ethnic groups, cultures
and origins of our employees...
...in 2010 we dedicated even more
attention to the topic of diversity, by
launching the Valuing Diversity Policy. We
have also resumed the Commissions for
Gender and People with Disabilities.
To expand the internal scope of the new policy, Itaú
Unibanco structured its actions in three pillars: Inclusion,
Culture and Business. Each column is represented in the
Executive Committee by one ambassador. (Human Rights
Management Approach)
Total employees by age group* (LA13)
Below 30
years old
Board of Directors
-
Statutory officers
Between 30 and
50 years old
Over 50
years old
Total
2010
%
2010
17
0%
1
6%
16
94%
Governance body:
Of the 17 members of the Board, 16 are over 50 years old and
only one is between 30 and 50 years old.
-
0%
112
59%
78
41%
190
Apprentices
2,014
100%
-
0%
-
0%
2,014
There are no women or black directors, nor people with special
Interns
1,533
100%
1
0%
-
0%
1,534
needs. All units within the holding company were considered
for the 2010 information.
Communication channels
Listening to the employees and being aware of areas for
Total employees by age group* (LA13)
improvement is one of Itaú Unibanco’s most effective
Below 30
years old
Between 30 and
50 years old
Over 50
years old
means of enhancing its management and strengthening
Total
its relationships with internal stakeholders. Accordingly, the
2010
%
2010
%
2010
%
2010
%
Management
1,163
1%
12,703
12%
1,987
2%
15,853
15%
various communication channels of the institution are always
Administrative
17,106
16%
31,645
29%
3,865
4%
52,616
49%
being updated, evaluated and changed, so as to contribute to
Production
23,841
22%
13,769
13%
1,793
2%
39,403
36%
a better performance.
166
0.2%
2
0%
-
0%
168
0%
42,276
39%
58,119
54%
7,645
7%
108,040
100%
Trainees
Total
employees
Complying with the principles of confidentiality, neutrality
and independence, the role of Itaú Unibanco Ombudsman’s
* Notes: All units within the holding company were considered in 2010. From 2009, the Trainee item was
excluded from the Administrative total.
Office is to contribute to the consolidation of ethical and
98
Relationships
98
Clients
Stockholders
Suppliers
Government
100
112
113
116
In 2010, we had 4,113 employees
with disabilities, which is equivalent
to 4.5% of our staff.
transparent practices, acting as the main communication
Following the disclosure of the results, the participation
channel through which the employees may submit questions
of the employees was also essential for the continuity of
and report misconduct.
the activities related to the survey. A total of 330 working
groups were organized to formulate improvements for their
In 2010, the service received 2,545 contacts, comprising complaints,
respective executive boards and areas.
suggestions and accusations. The Ombudsman blog, which shares
corporate topics with all employees, recorded over 37,000 hits.
Another important tool for Itaú Unibanco to understand, listen to
Banco de Ideias Sustentáveis
and approach employees is the Fale Francamente climate survey,
which was last released in October 2010. Participation is voluntary
BIS, whose second edition occurred in 2010, is an
and the survey was completed by 86% of the employees (about
online platform in which all employees can submit
94,000 people). Fale Francamente permits important decisions to
one or more proposals that are in line with the eight
be made in relation to the internal stakeholders. (Profile 4.4)
topics of the bank’s Essência da Sustentabilidade.
In January 2010, the bank disclosed the results of the previous
In 2010, 1,142 ideas were registered with BIS. The
survey, in which over 70,000 employees took part (79%
finalist suggestions, chosen by employees and
participation rate). In this survey, there was a 69% satisfaction level
by the Analysis Committee, were published on
regarding the company and 73% regarding the managers. The
a hotsite and on a blog, in which it was possible
assessment was supported by the consulting services of the Great
to make comments or new suggestions on the
Place to Work Institute.
selected suggestions.
Itaú Unibanco Holding S.A. Relatório Anual de Sustentabilidade 2010
Media and Public Relations
Environment
117
119
99
Relationships
Clients
Itaú Unibanco in the complaint ranking of the
Central Bank and Procon in 2010
Long-term partnerships
To maintain a long-term relationship and meet the client’s
Itaú Unibanco was ranked second in client complaints
expectations, Itaú Unibanco values ethics and transparency
in 2010, according to the accumulated monthly
above all. Therefore, it is important that financial education
rankings released by the Central Bank. The ranking
programs and effective communication channels are
considers only banks with more than 1 million clients.
constantly improving, thereby promoting the conscientious
Itaú Unibanco had 2,830 complaints during the year.
use of money and assuring the clients’ complete satisfaction.
51% (1,432) of these complaints were accepted,
reaching a rate of 0.58.
For Itaú Unibanco, it is not enough just to think about the
client. It is necessary to think as a client. This focus is a pillar
In 2010, we had 25 administrative proceedings settled
of management and responsibility in all the bank’s areas,
with the payment of fines, issued by Susep. In total,
not only in those in which there is direct contact with
there were 22 complaints, two petitions and one
these stakeholders.
infringement notice.
In 2010, this commitment became even more explicit with the
In the complaint ranking of Procon São Paulo in 2010,
announcement of the Corporate Vision – “To be the leading
Itaú Unibanco was also ranked second, achieving an
bank in sustainable performance and client satisfaction” –
important reduction of 24% in the number of complaints
and the new organizational culture, which is an important
as compared to the 2009 ranking (from 2,258 to 1,708).
motivation for employees to review their everyday actions
and reflect on how small changes may reduce the number of
These figures were recorded in the period in which the
complaints, increase satisfaction and win clients’ loyalty. (PR5)
network of 1,000 branches of Unibanco was integrated
with the Itaú platform, when 150 new branches were
The pursuit of client satisfaction requires cutting-edge technology,
opened, in addition to the significant expansion of the
a willingness to innovate and the effort to put into practice the
credit segment. These were initiatives of great complexity
values we believe in. A practical example of this pursuit occurred
and scale, particularly in an institution that became
in 2010, when all of the executive boards of Itaú Unibanco
among the largest in the world after the merger. (PR4)
incorporated goals related to client satisfaction and the reduction
of complaints. The weighting of the goals varies among officers
and superintendents and they are weighted according to the
activity and impact that these goals have on clients. Accordingly,
the action goals are spread across all business and support
structures. (PR5) (Product Management Approach)
The pursuit for client satisfaction requires cutting-edge
technology, a willingness to innovate and the effort to put
into practice the values in which we believe.
100
100
Relationships
94
Clients
100
Stockholders
Suppliers
Government
112
113
116
Number of accepted complaints1 (PR4)
Itaú in the accumulated monthly complaint rankings
released by the Central Bank in 20102
4,000
3,000
2,000
0.69
Banco do Brasil
-58%
0.58
Itaú Unibanco
3,378
3
1,000
1,432
Reclamações
Procedentes
0
2009
0.44
Bradesco
HSBC
0.31
Santander
0.30
Caixa Econômica
2010
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
0.21
Notes: 1 – Claims in which non-compliance
by the institution with the regulations of the
National Monetary Council or the Central
Bank of Brazil was proven;
2 – Number of complaints accepted divided
by the number of monthly clients protected
by FGC, multiplied by 100,000 (base 2010);
3 – The number of complaints accepted in
2000 covers those attributed to Itaú and
Unibanco.
101
Relationships
Ranking of companies with the most complaints at Procon São Paulo in 2010
Rank
Supplier
1.º
TELEFÔNICA 2.º
Grupo: ITAÚ UNIBANCO
Resolved
Rejected
Total
Change 2010/2009
2.275
862
3.137
-80%
Rank 2009
1.º
825
883
1708
-24%
2.º
3.º
Grupo: BRADESCO (Inclusão do Banco IBI)
632
522
1.154
-27%
7.º
4.º
SAMSUNG
868
114
982
207%
20.º
5.º
CLARO 711
223
934
3%
6.º
6.º
ELETROPAULO METROPOLITANA 249
614
863
-36%
3.º
7.º
CELULAR SONY ERICSSON 424
386
810
-37%
4.º
8.º
LG ELETRONICS
459
321
780
341%
30.º
9.º
Grupo: SANTANDER/REAL 145
550
695
6%
19.º
10.º
Grupo: NET
393
299
692
72%
17.º
11.º
Grupo: OI CELULAR
307
361
668
5%
11.º
12.º
POSITIVO INFORMÁTICA S/A
566
82
648
258%
28.º
13.º
TIM CELULAR
306
271
577
-48%
5.º
14.º
CASAS BAHIA
295
276
571
113%
24.º
15.º
Grupo: CARREFOUR
98
433
531
20%
15.º
16.º
NOKIA DO BRASIL
130
385
515
12%
14.º
17.º
Grupo: BANCO DO BRASIL
97
354
451
2%
25.º
18.º
Grupo: EMBRATEL
390
46
436
-37%
10.º
19.º
Grupo: MICROCAMP
238
169
407
-7%
16.º
20.º
Grupo: PANAMERICANO
94
308
402
-35%
12.º
21.º
Grupo: B2W
220
103
323
80%
29.º
22.º
Grupo: CITIBANK
113
195
308
-41%
13.º
23.º
BANCO BMG S/A
119
187
306
12%
23.º
24.º
Grupo: PONTO FRIO
100
204
304
82%
33.º
25.º
VIVO S/A
229
51
280
-30%
18.º
26.º
Grupo: MABE/GE/DAKO/CONTINENTAL
239
40
279
163%
42.º
27.º
ELECTROLUX DO BRASIL
224
54
278
66%
32.º
28.º
LOJAS MARABRAZ
200
39
239
123%
41.º
29.º
MOTOROLA
72
165
237
31%
27.º
30.º
CAIXA ECONÔMICA FEDERAL
64
164
228
-9%
26.º
Source: Procon
In 2010, the insurance segment recorded 25 administrative proceedings
conglomerate accepted the DPDC goals. These goals were
settled with the payment of fines, issued by Susep. In total, there were
proposed based on the figures from the 2009 National
22 complaints, two petitions and one infringement notice.
Reference File of Accepted Complaints, which consolidate
data from Procons integrated with the National System of
Public commitment to client satisfaction
Consumer Protection Information (Sistema Nacional de
In 2010, Itaú Unibanco made, through the Public Indicators
Informações de Defesa do Consumidor – Sindec).
project of the Ministry of Justice’s DPDC, a social commitment
to improving in relationships with clients. For Itaú Unibanco, the
The three commitments accepted by the institutions were:
DPDC project is a consumer relations policy that significantly
• Reduction in the number of complaints, that is, reduction in
benefits all consumers, in addition to assisting the companies to
the total number of consumers who need to turn to Procons
improve their operations and operating indicators.
to solve their issues with the companies;
By adhering to Public Indicators – together with other
• Increase of solutions through prior notices, known as CIPs;
and
companies in the financial and other sectors – the
102
Relationships
94
Clients
102
Stockholders
Suppliers
Government
112
113
116
In 2010, we made a commitment, by means
of the Public Indicators project, to society in
general, to promote improvements in the
relationship with our clients.
• Increase in settlements in complaint administrative
proceedings, usually solved in hearings.
In search of excellence in services
Aiming at the quality of services and reduction in the number of
complaints to the consumer protection agencies, the institution developed
In December of the same year, the Ministry of Justice
a number of work fronts and adopted the following initiatives: (PR5)
published the results for the first 12 months of the project.
Itaú Unibanco showed the best performance among
1 - Working with the consumer protection agencies
banks in the indicator Increase of Problem Resolution in
Working in partnership with the consumer protection agencies is
the preliminary phase, achieving a resolution rate of 79.1%.
crucial to understanding the issues more clearly and internalizing
This rate exceeded the 75% target established for 2010
them. This will enable us to adopt corrective measures in our
and also showed progress in relation to the performance
processes, products and services, improving the quality of service.
of 69% registered in 2009. Regarding the results achieved
for the indicator Reduction of Procon Services, we had the
The relationships developed with the consumer protection agencies
third best performance among banks. The number was
have provided input for a number of improvements that have been
practically unchanged in the comparison between 2010
devised and implemented, both in direct contact with Procons
and 2009 (1.4% growth in relation to the previous year).
and in the organization’s products and services, in addition to the
Regarding the indicator Increase of Resolution in Hearings,
preventive approach of protecting the consumer. There is a clear
we reached 65.1%. Although we did not achieve the
awareness about consumer rights and responsibilities, a task that
proposed goal of 70%, the performance was better than in
increasingly demands that companies, society and government pay
2009, when the institution reached a 64% success rate in
special attention to consumer relations. The main activities carried
this indicator. (PR5) (Society Management Approach)
out for this purpose are: (Product Management Approach)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
103
Relationships
• Strengthening the work of the relationship advisors
2 - Reduction of complaints
in the consumer protection agencies, covering the
The reduction of complaints and the resolution of issues
following aspects:
contribute to the promotion of client satisfaction. For
this reason, a number of initiatives are being adopted for
– representing the conglomerate before the agencies,
this purpose:
aiming at discussing the required progress, the
improvement of services to the Procons, reduction in
Institutional Agenda for Improvement: based on the
claims, minimization of the impacts of the merger and
main reasons for complaints detected in the in-house
the involvement of these agencies in the assessment of
communication channels and in the consumer protection
new products;
agencies, improvement plans were developed in the business
units, aimed at streamlining processes, products, services and
– representing the clients before employees and the
customer service.
corporate structure’s areas, aiming at conveying the
main expectations of the consumer representative
Institutional projects: supplementing the actions developed
bodies to the company. Additionally, strengthening the
in the agenda, projects focusing on customer service issues
local relationships with Procons and other consumer
and common to all business units were implemented
protection agencies.
throughout the organization.
• Performance of duties of certain consumer protection
Service Excellence Committees: as reported in the 2009
agencies, serving clients in arrears and/or excessively
edition, as part of the governance process of client-focused
debt, with good results in the amicable and consensual
actions, committee meetings were organized twice a
renegotiation of debts, thereby avoiding the registering or
month with officers from the business and back office areas,
lodging of complaints and filing of lawsuits.
and monthly committee meetings were set up with the
executives of the same areas, to identify improvements,
• Reformulation and qualification of Procons Telephone
Service for the immediate resolution of the issues of clients
monitor the projects and search for effective solutions for
internal processes that impact client satisfaction.
that turn to these agencies for mediation, including for
Itaucard Shops: the bank created the Itaucard shops
renegotiatiation of their debts.
– 31 physical points exclusively to provide in-person
• Participation in major conferences, forums and seminars
service to clients, distributed throughout Brazil in
of the National Consumer Protection System, organized
easily accessible ares. They are specialized shops
by different sectors of society, always with the purpose of
whose purpose is to act quickly to resolve credit card
debating the proposed topics.
issues of the Itaú Unibanco conglomerate and provide
assistance consumers. The focus of the shops is to
• Participation in working meetings with the National
facilitate communication with consumers that turn
Consumer Protection System across the country to discuss
to Procon for immediate solutions to their problems
important topics such as: Agreements, Fees, Fraud, New
involving credit cards issued by Fininvest, Unicard,
Products, Customer Service, Excessive Indebtedness and
Itaucard, Taií and Hipercard, as well as the negotiation
Conscious Use of Credit and Credit Cards, among others.
of personal loan or credit card debts.
104
Relationships
94
Clients
104
Stockholders
Suppliers
Government
112
113
116
3 - More and better transparency in communicating products
and services
Transparency is essential in Itaú Unibanco’s relationships with
In essence
its clients. Accordingly, in 2010 one important agenda was
Client satisfaction
carried out, seeking to make communications with consumers
clearer, especially in relation to items that are more difficult to
understand.
As part of this initiative, the bank restructured its
communications materials – both internal and external – in
order to improve the understanding of its messages and
information:
Agreements and summaries: we started to use simpler
expressions to ease public understanding;
Client satisfaction is
our priority.
Therefore, listening to them, through
surveys, market research, forums and other
communication channels is one of the
premises of the organization, which has, as
one of its main goals, building transparent
and long-lasting relationships.
Bank statements and bills: we replaced technical terms, in
addition to simplifying and explaining the language used in
these documents;
These changes are not only timely, but also part of an ongoing
effort to improve communications with clients.
Sales and products: we reviewed processes and made
4 - Client satisfaction
changes in the scripts.
Satisfaction survey: Itaú Unibanco also conducts surveys
Below are some examples of the materials reviewed:
with a sample of active clients, aimed at evaluating client
satisfaction with the main features of the bank relationship.
• Retail banking
This survey, which has been conducted every six months since
New contracts; consultation on changes in LIS charges in the
2008, is based on a quantitative methodology with a random
bank statement.
sampling representing the client base, and is conducted
by telephone, without identifying the bank. Based on the
• Cards and Credit Shops
outcomes of this survey, action plans are designed for the
Review of the credit card bills; executive summary; tips for the
purpose of maintaining and permanently improving the
wise use of credit cards.
results. Feedback is obtained from these surveys, call centers
and Client Forums (periodic meetings with groups of clients
• Itaucred/Real Estate Loans
and bank executives).
Creation of the Total Effective Cost of vehicle financing;
improvement in communications and the process of
For the purposes of measuring client satisfaction at the points
reimbursing the Bank Collection Fee in Itaucred; new guide
of sale, surveys are conducted in all branches. Based on the
for Itaú Real Estate Loan clients.
quantitative methodology, these are carried out via Bankline
(Internet), ATMs (for the individuals segment) and telephone
• Insurance/Garantec
(for the corporate segment). The surveys for the individuals
Garantec executive summary; explanatory folder on
segment have been conducted monthly, and for the corporate
capitalization.
segment, weekly, since 2008.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
105
Relationships
In 2010, surveys were conducted for the individuals
In essence
segment (Retail/Itaú Uniclass and Personnalité), the
corporate segment, the credit card area and Itaucred,
comprising the portfolio of available products and
Financial education
points of sale. (PR5)
Client Forum: The Client Forum is an Itaú Unibanco initiative
to ensure compliance with one basic assumption in the
pursuit of service quality and business continuity: listening
to the clients. Aimed at increasing the bank’s understanding
of the opportunities for improvement throughout its
management, the forum is also a way to promote direct
contact between the company and those who use its services
and contract its products.
Itaú Unibanco has taken it upon itself
the task of stimulating clients to use
their money in a conscious way.
To this end, we provide the Credit Guider
(an online tool that identifies the ideal
credit for each consumer) and we offer –
to clients and non-clients – meetings to
educate and create awareness, such as
TEDx Vila Madá.
The open dialogue environment created in these meetings is
based on transparency and a willingness to listen, understand
and meet the expectations of account and credit card holders
and consumers of other financial products.
Protection Code, Itaú Unibanco reinforced its commitment
Itaú Unibanco holds specific Client Forums for each business
to respect consumer rights and internal practices to meet
segment. Each group is composed of eight to 12 randomly
client satisfaction. On this occasion all the organization’s
invited clients, who take part in four meetings with the
officers accompanied the launch of a client relationship
organization’s executives during the year. With membership
guide and a new institutional recognition program called
changed every 12 months, the group is selected on a random
the Todos pelo Cliente Award.
basis from the conglomerate’s client base. In 2010, 14 meetings
with five different bank areas were held.
The alignm the Itaú Unibanco teams, through the
transmission of the lessons learned from experience
There are real examples of client suggestions that have
with consumer protection agencies in a number of the
been incorporated by the bank. This is the case of the
bank’s business areas, is noteworthy for its emphasis
expansion of convenience processes, which today enables
on continuously respecting clients. An example of the
us to send account holders, via e-mail, information on
constant involvement of the whole organization was the
operations carried out electronically, such as TED and DOC.
Consumer Protection Forums held by Itaú Unibanco in
Another request arising from the forums, which is already
the cities of João Pessoa and Campinas. For the first time,
being tested, is the videochat, which offers online advice
these events gathered managers from all business areas
on financial investments on the exclusive website of Itaú
of the conglomerate, headquartered in the region, who
Personnalité. (Profile 4.16) (PR5)
talked about respecting consumers. The forum was aimed
at raising awareness and uniting the team around Todos
5 - Working with the internal stakeholders
pelo Cliente, improving the relationships with the local
In line with Itaú Unibanco’s new culture, over the year we
consumer protection system bodies and enhancing the
carried out a number of actions aimed at raising internal
institution’s image in the state, in a joint effort to improve
awareness of performance focused on service quality and
client satisfaction and reduce complaints. Considering the
client satisfaction. At an event with leaders held in September,
success of this activity, new forums will be held in many
the month of the 20 year anniversary of the Consumer
regions in Brazil in 2011.
th
106
Relationships
94
Clients
106
Stockholders
Suppliers
Government
112
113
116
Employees are informed of the main projects and client-
6 - Financial education
focused actions focused are published in the Itaú Unibanco
The Conscious Use of Credit and Credit Cards topics should be
magazine, which is distributed to all employees. Therefore,
prioritized in 2011 in order to prevent high indebtedness by families.
the actions are communicated and good practices are
It is necessary to improve the mechanisms for credit granting and
shared among the areas.
contracting, monitoring of borrowers and renegotiation of debts.
After all, financial education is a project for society as a whole (families,
schools, companies, universities) and, in particular, Itaú Unibanco and
the consumer protection bodies. (FS16)
Ombudsman’s Office – a commitment to the client
Delivery of products and services with transparency and
its efforts to identify and propose improvements, by
clarity, ensuring client satisfaction, is one of the main
starting to point out, in addition to measures to correct
reasons for Itaú Unibanco to make every effort necessary
and improve products and services, any opportunities
in its ethical management. And the bank’s Ombudsman’s
to improve the SACs. In addition to the specialized
Office, set up in 2005 (two years before it was mandated by
problem solving services, the Ombudsman’s Office is
the Central Bank), plays an important role in this structure,
responsible for handling any complaints registered by the
reinforced by and based on the internal guidelines focused
conglomerate’s clients with the Central Bank or Procons or
on client satisfaction.
aired in the media. It has been recognized for its progress
– for example, the Consumer Protection and Defense
The Ombudsman’s Office operates as a communications
Department’s identification of Itaú Unibanco as the most
channel of last resort for clients to file complaints, and
efficient financial institution in the preliminary complaints
it works on resolving the problems of clients who have
resolution process, according to data from Sindec.
already used the preliminary customer service channels –
Consumer Service Center (SAC), call centers, branches and
In 2010, in order to seek an even more efficient service
Fale Conosco (Contact Us) – and have not been satisfied
to meet client complaints registered with consumer
with the response or whose request has not been fully
defense bodies, the structure of the Ombudsman’s Office
met. The Ombudsman’s Office is also responsible for
expanded the Client Telephone Service to the Procons
carrying out the process of assessing and identifying
(0800), a means for Procon representatives to contact
opportunities to improve products and service and
the bank and find an immediate solution to problems
referring these to the applicable areas.
of clients who seek the mediation of the consumer
protection bodies.
The Ombudsman’s Office is one of the areas that take part
in the governance process of assessing new products,
Also in 2010 the Ombudsman’s Office of Itaú Unibanco
by analyzing their impact on the client’s vision and their
was the first Ombudsman’s Office of the financial sector
adherence to the Consumer Protection Code.
in Brazil to receive the international certification ISO
9001 (quality management). The certification is a
In 2010, in line with the institutional purposes expressed
recognition of the excellence of the body’s management
in the Vision, the Ombudsman’s Office expanded its
system, which, in order to receive it, has undergone a
performance, enabling more clients to use it and,
detailed diagnosis of its activities, as well as a review of
therefore, sort out their problems directly with the
documents and procedures and the definition of new
bank. The Ombudsman’s Office has also intensified
quality parameters. (Profile 4.16) (PR5)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
107
Relationships
Customizing client service
Throughout its journey, Itaú Unibanco has understood that
there are different client profiles, with specific demands for
each moment in their lives – and that, in order to be a good
partner, the bank would have to make large investments
in the segmentation of its products, services and customer
service. This strategy has enabled the company to establish
closer relationships with its clients and reach satisfactory results
in terms of lines of credit, investment advice and delivery of
financial products and services tailored to each group of clients.
In Brazil, there are a large number of clients whose
relationships with the bank are still only beginning – a group
composed of individuals who are opening their first bank
account and have a basic level of knowledge of the financial
services available. Itaú Unibanco is concerned about offering
this segment the necessary information through the customer
service process in the branches and contact mechanisms
available on the Internet, at ATMs and by telephone. With
transparency and using a user-friendly wording, we are
concerned about meeting the needs of these clients in a
timely, accurate and ethical way – and with starting a longterm financial education process so that the client may better
plan the use of the loans that will be granted.
Another segment is composed of clients to whom Itaú
Unibanco’s challenge is to offer the same comfort in financial
operations, in addition to providing flexibility and advantages
when granting credit and offering investment advice. These
are people concerned about planning the future and who
need the bank to be a strong and reliable partner. There are
also clients with occasional credit demands who are more
concerned about how to make safe and profitable investments
Itaú Unibanco
strives to offer
customized services
to all client segments,
quickly, accurately
and ethically.
value, for which the bank provides specific communication
channels that are undergoing permanent improvement.
It is important to emphasize that the strategy to segment
customer service is not directly related to segregation by
income, but rather to the different needs of each group in
relation to banking services – a factor mainly linked to the
different stages in the personal and financial lives of the
clients. Without this strategy, it is not possible to provide
clients with products and services that are truly suited to
their expectations.
108
Relationships
94
Clients
108
Stockholders
Suppliers
Government
112
113
116
Initiatives to improve access to services
Client security
Itaú Unibanco is also concerned about providing the
underprivileged population with access to banking
For the purposes of client security at the bank’s CSBs
services. Areas in which the population density is lower
and branches, Itaú Unibanco assesses any impacts
than the average and/or that have an economically
on security at the following levels: products and
vulnerable population were identified as the following,
services (asset security at points of sale related to
according to data from Fundação Seade (Seade
security surveillance and equipment), development
Foundation), Instituto Brasileiro de Geografia e Estatística
of the offered product or service concept, operation,
(Brazilian Institute of Geography and Statistics), Pesquisa
use and service. As regards the stages of research and
Nacional por Amostra de Domicílios (National Housing
development, certification, marketing and promotion,
Survey), and the Economia Informal Urbana (Informal
as well as disposal, reuse or recycling, there is no impact
Urban Economy) survey: (FS13)
and this assessment is not applicable.
São Paulo – Carapicuíba, Tremembé, Brasilândia, Brás, Pq. São
Itaú Unibanco invests in this security impact assessment in
Rafael, Pq. Marajoara, Cangaíba, Ermelino Matarazzo, Jardim
compliance with Federal Law No. 7,102/83 (which regulates
Helena, Itaim Paulista, São Miguel Paulista, Itaquera, Iguatemi,
financial institutions and the inspection body, which is
Cidade Tiradentes, Guaianazes, Lajeado, Campo Limpo, Capão
the Federal Police) and with legal requirements (state and
Redondo, Heliópolis, Paraisópolis, Socorro, Pedreira, Cidade
municipal laws). Compliance is also ensured in its relations
Dutra, Santa Catarina, Parelheiros, Grajaú, Diadema, Mauá, Cotia,
with the bodies of the Public Security Department (Federal,
Itapevi, Itapecerica da Serra, and Taboão da Serra. There are 32
Civil and Military Police) and its internal policies (as defined
CSBs in these locations.
in executive committees – such as the Asset Security
Committee – or the Corporate Security Office (Diretoria de
Rio de Janeiro – Rocinha, Vila Cruzeiro, Morro do Alemão, Vila
Segurança Corporativa – DSC) itself ).
do João, Maré, Mangueira, Manguinhos, Lixão, Vl. Operária, Vl.
Ideal, Mangueirinha, Pantanal, Cidade de Deus, Boréu, Rio das
The security policy includes the following procedures:
Pedras, Juramento, Quitungo, Morro do Bumba, Vila do Vintém,
layout analysis of points of sale (branches/ CSBs/ credit
Morro dos Macacos, Jacaré, and Acari. There are 21 CSBs in
shops) to be opened or under construction, renovations for
these locations.
installing security devices and risk analysis of points of sale
aimed at improving security aspects.
Rio Grande do Sul – Alvorada (Americana), Viamão (Santa
Isabel), Canoas (Matias Velho), and Porto Alegre (Ruben Berta,
The bank also determines and implements the security
Lomba do Pinheiro). There are four CSBs in these locations.
policy for employees and service providers in the points of
sale. The resources employed include circulars/regulatory
In order to discuss measures to support the victims of the
bulletins, security manuals, DVDs, lectures and internal
heavy rains that struck the Northeastern Region in June 2010,
communications, among others. (PR1)
Public Assistance Hearings were held in the cities of Recife
and Palmares, State of Pernambuco, with members of the
local consumer protection bodies, municipal authorities and
representatives of economic sectors, among them the banking
sector. Some initiatives by Itaú Unibanco related to credit
granting and in solidarity with the affected population arose
from these meetings.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
109
Relationships
Visually impaired account holders have options to have
conformity with these codes on an ongoing basis, by means
their contracts read when they open their accounts,
of market surveys, customer service channels and the joint
in addition to their bank statements, letters with
management of internal controls, compliance and legal
instructions regarding debit cards – carried out by
issues. Itaú Unibanco does not sell prohibited products
the commercial team – and card cases. Regarding the
or products objected to by stakeholders. (PR6) (Product
bank statement and the instruction letter, the client
Management Approach)
may opt for how they want to receive them: in Braille
and enlarged characters or normal format. The card
Fines related to the provision
case, meanwhile, comes with information described in
of products and services
Braille, expanded characters, normal format and high
In 2010, there were 1,613 administrative sanctions imposed
relief. Of a total of 2,483 visually impaired clients, 4%
on the bank due to non-compliance with laws or regulations
have opted for the enlarged character format, 8% for
related to the provision and use of products and services.
Braille, and 7% for the regular format. The others have
Two of these sanctions were significant, with potential
chosen no option. (FS14)
penalties totaling R$2.9 million (together).
Another relevant action is the adjustment of bank
These two penalties, which are pending final decision, refer
branches to the necessary building infrastructure
to the alleged issue of unrequested cards, one of them
(ramps, special toilets and tactile flooring), to
involving Procon in the State of Minas Gerais, in the amount
facilitate the access of disabled people. By the end
of R$1.9 million, and the other Procon in the State of São
of 2010, 87% of the branches and CSBs had been
Paulo, in the amount of R$1 million.
adapted. (FS14)
There were other prospective fines, less significant in
Communication and marketing
amount, resulting from proceedings that are in progress.
As a voluntary standard related to communication and
There were no significant amounts paid as fines in
marketing, Itaú Unibanco complies with the Corporate
administrative proceedings.
Code of Ethics, Nosso Jeito de Fazer, Corporate Guide
for Information Security, Corporate Crises Management
In 2010, there were 23 lawsuits involving the potential
Program and Business Continuity Guide. The bank
application of significant fines, in the total amount of R$19
adheres to the Self-Regulation Codes of BACEN, Susep,
million, which are awaiting ruling.
the Conselho Nacional de Autorregulamentação Publicitária
(National Council of Advertising Self-Regulation),
The monetary value of the significant fines, for the period,
Febraban, the Associação Brasileira das Empresas de
totals R$22 million. (PR9)
Cartões de Crédito e Serviços (Brazilian Association of
Credit Card and Service Companies) and the Código
de Defesa do Consumidor (Consumer Protection Code),
among others, which also regulate the communication
and marketing of financial services. We analyze our
The Conscious Use of Credit
and Credit Card should be
prioritized by Itaú Unibanco in
2011 in order to prevent high
indebtedness by families.
110
Relationships
94
Clients
110
Stockholders
Suppliers
Government
112
113
116
As a voluntary
standard, Itaú
Unibanco
complies with
the Corporate
Code of
Ethics, Nosso
Jeito de Fazer,
Corporate
Guide for
Information
Security,
Corporate
Crises
Management
and Business
Continuity
Guide.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
111
Relationships
Stockholders
Creation of value and information
In a selective and dynamic market such as the
The bank also publishes the Ações em Foco (Actions
financial market, transparency, timeliness and the
in Focus) newsletter. With a print run of 80,000 issues,
quality of the information provided to stockholders,
which are sent to stockholders with updated reference
analysts and investors are a strategic differentiator
files as well as to employees of Itaú Unibanco, this
for Itaú Unibanco.
newsletter presents the results and the performance of
shares in the quarter, in addition to the organization’s
main social and environmental actions.
Among the most important tools to improve the
relationships with these strategic stakeholders of
the bank are the public gatherings and meetings
The communication system of the bank with
held during the course of the year, focused on
the capital markets also includes this annual
results and the bank’s strategy. In 2010, Itaú
sustainability report, the quarterly information
Unibanco organized 22 Apimec meetings in Brazil
report, a Twitter account (@itauunibanco_ri),
and 19 conferences and road shows abroad in cities
teleconferences on the bank’s results and strategies,
like London, Edinburgh, New York and Miami. (FS5)
e-mails, telephone service and the publication of
communications and relevant facts. (Profile 4.4)
Another important action last year was the
participation in 11 Expomoneys – a round of
The investor relations area has also been participating
events aimed at the financial education and
in the bank’s commissions and committees since 2005.
training of individual investors – in which Itaú
The core purpose of this involvement is to determine the
Unibanco became closer to investors and
social and environmental responsibility of Itaú Unibanco
professionals in the industry by disclosing
and establish the alignment of the bank’s actions by
information on the company and giving
analyzing risks, opportunities and threats concerning its
lectures on financial education. The Internet is
social and environmental actions, in addition to proposing
an important means of communication with
projects and solutions. (FS5 e FS10)
investors. The bank has its own channel: the
website www.itau-unibanco.com.br/ri, in three
languages (Portuguese, English and Spanish).
In order to facilitate the relationship
with stockholders, we publish the
newsletter Ações em Foco (Shares in
Focus), which presents, in detail, the
results and the performance of the
bank’s shares.
In 2010, a study conducted by an external
consulting firm of the websites of the ten largest
banks in Brazil found the Investor Relations
website of Itaú Unibanco to be the only one to
present a level of excellence in communication
with its many stakeholders.
112
Relationships
Clients
94
100
Stockholders
Suppliers
112
113
Government
116
Suppliers
Sustainable partnerships
In 2010, Itaú Unibanco’s strategic plan of relationships
bank. The purpose of this is to minimize the main risks
with its main suppliers was improved. With a base of
associated with the relationships of Itaú Unibanco with
103,000 companies that deal with the bank – whether
companies that are either unsuitable or suspected of
supplying simple quotes or products and services that
involvement in unlawful acts. The challenge for 2011 is to
are indispensable for the operation of the many areas of
expand this analysis to other risk categories.
the organization – the bank must have an operational
model that allows and ensures the dissemination of
Itaú Unibanco also offers a specific communication channel
good management practices, respect for human rights,
for its suppliers on the Internet, which was developed in
compliance with labor legislation and preservation of the
accordance with the guidelines of the AA1000 international
environment. (HR2)
standard, which establishes transparency and accountability
standards. The site has been constantly evolving to allow
This process is conducted by means of an area that
greater clarity with respect to the bank’s expectations and the
centralizes procurement and supplier management,
obligations included in contractual clauses.
whose main objective is to ensure that the processes
for the acquisition of products and services that are
Another action taken in 2010 was the broad disclosure of the
necessary for the bank are conducted efficiently and
Itaú Unibanco Code of Ethics, which should also be known and
ethically and that they are free from legal or operational
followed by suppliers. In this way, the values and principles
risks that may jeopardize the performance of the
that guide the bank’s actions can be extended to the whole
business areas and client satisfaction. The application
production chain, ensuring better provision of services to end
of the Procurement Policy facilitates a careful selection
clients. (Product Management Approach)
of suppliers and the subsequent monitoring of the
Contracting local suppliers
application of the required practices. (HR2)
The regionalization of contracts takes place in cases in which
In 2010, in continuation of the operational model established
this practice adds efficiency to the operation. The selection
in 2009, all main suppliers underwent a ratification process.
of suppliers takes different factors into consideration,
The evaluations were made in accordance with a category risk
such as financial health, environmental and social
matrix, which determines the management model and the
management, technical qualifications, costs and efficiency
criteria that should be applied in its ratification process. For
in the performance of their activities, among others. All
the categories that pose greater risks, which are represented
competitors are treated equally.
by approximately 2,000 companies, the monitoring is more
frequent, allowing each supplier to have a risk score in
In 2010, expenditures to suppliers represented 72% of total
accordance with its operation.
expenditures. In some regions, the percentage increased
and the process of migrating branches was a factor with a
Additionally, in 2010, suppliers started to be evaluated
major influence. (EC6)
based on their prevention of unlawful acts and frauds. This
was part of the Conheça seu Fornecedor procedure, which
establishes conditions for the registration of companies
to be made with all the analyses necessary to ensure,
accurately and at any time, that we know the identity
(“who”), the activity (“what it does”) and the suitability of
the people who maintain commercial relations with the
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
In 2010, expenditures with local
suppliers represented 72% of total
expenditures with suppliers.
113
Relationships
When allegations or cases of non-compliance are identified
among the active suppliers, should any violation be verified,
Expenditures with local suppliers, by region (in %)
an action plan is immediately created that may result in
the termination of the agreement for the entire supplier
$
North
organization.
2009: 65%
In relationships with its suppliers Itaú Unibanco adopts
91%
preventive procedures and actions aimed at mitigating
possible risks, therefore minimizing the number of
occurrences.
$
Northeast
94%
For example:
2009: 60%
1. In the approval process, suppliers are evaluated based
on a matrix that determines the level of risk in each
Midwest
$
77%
2009: 70%
category, management model and evaluation criteria.
$
Southeast
72%
2009: 77%
These analyses consider not only the financial and tax
aspects, but also the social and environmental aspects
and the operations that are in conflict with the corporate
ethics and values, among other things. This process is
periodically reviewed;
South
91%
2009: 76%
$
2. For the high risk categories, during the period in which
the contract is active, suppliers are more frequently
monitored, allowing the areas that manage the
operation to have a global view of their contracted
Calculation method: we consider operating units that are important to the
operations by Brazilian state. Local suppliers are those in the same areas as those
generating the demand.
suppliers and to be able to act preventively in the event
of non-compliance;
3. All service agreements between Itaú Unibanco
Policies and practices related to human rights
and its suppliers specify compliance with labor
In 2010, no cases of violations of human rights,
(domestic and foreign), social security and
child or young workers exposed to hazardous work,
tax obligations. They also refer to social and
forced labor or the equivalent of slave labor were
environmental responsibility that is compatible
identified in supplier operations. Itaú Unibanco
with the principles and responsibilities stipulated in
offers communication channels via telephone, its
legislation – and, in particular, with the rules related
website and e-mail, by means of which any person
to the preservation of the environment and respect
can register complaints, suggestions and questions.
for constitutional social rights;
These communication services are prioritized by the
bank, and if any indications that a supplier is violating
4. The corporate procurement policy and the ISO 9001
human rights laws are identified or if any information
procedure are available on the corporate portal and
on such practices is received, an internal investigation is
are regularly updated with the improvements made
opened. (HR6 e HR7)
to the process. (HR2)
114
Relationships
Clients
Stockholders
94
100
112
Suppliers
114
Government
116
Itaú Unibanco has communication channels
via telephone, website and e-mail. Anyone can
use these channels to file complaints, offer
suggestions and ask questions.
Itaú Unibanco, by means of a suppliers’ website, has
evaluating companies regarding the prevention of money
transparent relationships with all of its potential suppliers.
laundering and unlawful acts – the latter will be implemented
The approval process clearly requires care for the social
in 2011. (Society Management Approach)
welfare of employees, such as the non-existence of child
and forced labor, health and security at the workplace,
Security practices
freedom of association and affiliation with unions in different
The security teams are composed of outsourced service providers
employment categories, diversity, proper working hours
who, according to legal requirements, take a training course and,
and compensation, more humane disciplinary practices and
every two years, take a refresher course. These courses include
maintenance of an effective communication channel for
topics such as human rights and human relations in order to
outsourced employees to be heard within the structure of
prepare them for dealing with the public.
the contracted companies.
Itaú Unibanco developed a guidebook and a thematic video
In 2010, Itaú Unibanco was once again awarded with a
called De olho na segurança e no bom atendimento (An eye on
certification in the supplier evaluation process by ISO 9001.
security and good service), which guide these professionals in their
Among the improvements implemented in the evaluation
compliance with the security policy. The materials are distributed
processes and systems are the improvement in the
to security service providers for use in the training of the security
registration tool, inclusion of more detailed information,
guards. They address issues such as education, courtesy, respect,
which allows for more in-depth analyses, implementation
discrimination and dealing with disabled people. (HR8) (Human
of the electronic contract and the design of a system for
Rights Management Approach)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
117
119
115
Relationships
Government
to political parties or committees. The amounts allocated
for this purpose also strictly follow the laws governing
Transparency in elections
donations to political campaigns.
Itaú Unibanco supports political candidates according
to the principles and values of transparency and ethical
The Political Assessment Committee is responsible for
conduct, which are the basis of the organization’s
examining the candidates’ histories and political platforms
operation. In 2010, donations made by the bank to
and for selecting the candidates whose campaign messages
candidates from all regions of Brazil amounted to
place the most importance on market competition,
R$23.7 million.
meritocracy and social development.
To ensure the ethical conduct of this procedure, a Political
For more information on the subject and about the
Contributions Committee comprising board members and
donations made by Itaú Unibanco, visit www.tse.gov.br/
executives of the bank was created. Our policy determines
internet/eleicoes/2010/prestacaoDeContas.html. (SO6)
that contributions go entirely to the candidates and not
(Society Management Approach)
Allocation of Itaú Unibanco donations to candidates in the 2010 elections (SO6)
Per sphere*
Per coalition
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
National
Congress
O Brasil Pode Mais (1)
States
(1)
PSDB/DEM/PTB/PPS/PMN/PTdoB
Para o Brasil
Seguir Mudando (2)
(2)
No coalition
PT/PMDB/PCdoB, PDT, PRB, PTC e PTN
* National: President; Congress: federal representatives and
senators; State: governors and state representatives
Per position
Per region
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
President
Governor
Senator
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Federal
State
representative representative
North
Northeast
South
Southeast
116
Relationships
Clients
Stockholders
Suppliers
94
100
112
113
Government
116
Midwest
Media and public relations
held in eight Brazilian cities to publicize the Olimpíada da
Língua Portuguesa – a governmental program based on the
Ongoing management of reputational risks and
opportunities
for involving the specialist press was the International
In 2010, for the seventh consecutive year, the Itaú brand was
Seminar on Economic Evaluation of Social Projects, which
considered the most valuable brand in Brazil, according to the
brought together experts to debate the topic in São Paulo.
global consulting firm Interbrand, a pioneer in the development
The year 2010 also marked the expansion of Fundação
of the brand valuation method. The bank’s brand was valued
Itaú Social’s frontiers in dealing with journalists from
at R$20.6 billion, almost double the amount of R$10.552 billion
international publications.
methodology of Fundação Itaú Social. Another opportunity
measured in 2008, the date of the last ranking. This is the result of
a number of actions focused on delivering better products and
The close and long-term relationships with its stakeholders
services, in addition to efforts to gain market and clients’ trust,
contribute to the good reputation of the bank. In addition to the
as well as investments in marketing and advertising campaigns.
relationships with the media, contact with other stakeholders is
But branding is part of the ongoing process of managing the
fundamental, and one of the ways we do this is through public
reputation the bank has built over its history.
relations initiatives. Therefore, institutional events, holidays,
anniversaries and sponsorships are a few of the opportunities
In this context, Itaú and Unibanco see the media and opinion
we have to be in contact with these people.
makers as stakeholders in the process of establishing a
transparent and ethical dialogue with society. Through a
Examples of this tendency are the guided tours to introduce the
specialized team and a specific area on the bank’s website
new concept of service and the new layout of our branches to
(www.itau.com.br/imprensa), news organizations can access all
clients (Retail and Uniclass), stockholders, opinion makers, media
communications and press releases, organized by month, ask
and government. The visits were conducted at the Iguatemi
for assistance in making news reports and ask questions about
branch (in São Paulo, with 40 participants) and in Santos (State
specific business areas, management, financial performance
of São Paulo, with 60 participants).
and social investment programs developed by the organization.
In 2010, 134 press releases were issued and over 1,000 requests
Another situation in which we focused on contact with different
from journalists were answered.
stakeholders was the Brasiliana Itaú exhibit, which opened in
São Paulo and was also presented in Belo Horizonte and Rio de
In 2010, Itaú Unibanco occupied a leadership position among
Janeiro. Other centers in Brazil will be hosting the exhibition in
private banks in terms of positive exposure in the media. An
2011. The objective of this event was to present to stakeholders
external audit conducted by the agency CDN showed that the
one of the most extensive and significant collections of
bank was mentioned positively more than 148,000 times and
historical and visual Brazilian memory and strengthen the
negatively nearly 21,000 times over the year.
relationships with opinion makers of great importance to Itaú
Unibanco. During the exhibition, we offered a guided tour
During the year, we took actions that contributed to the
led by the curator Pedro Correa do Lago. Among the many
accumulation of knowledge, strengthening the concept
stakeholders who were impacted by this initiative were opinion
of financial education. An example of this is the series
makers, media, clients of CSBs, government representatives and
Macroeconomia em Pauta (Macroeconomics on the
Uniclass and Personnalité clients.
Agenda), which brought together journalists and the bank’s
macroeconomic team in four events, and the workshop
The Christmas event held at Mario Covas Park, located on
“The evolution of the consumption of class C”. The area
Avenida Paulista in São Paulo, was another opportunity to
also maintains a close relationship with the media that
strengthen our relationships with opinion makers and their
specializes in education, because of Fundação Itaú Social
children, the media, clients and Fundação Itaú Social partner
and Instituto Unibanco. In 2010, two road shows were
organizations. The main purpose of this action was to attract
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
117
Environment
119
117
Relationships
stakeholders to the shows and to see the decoration of the
park. Mario Covas Park is maintained by a partnership between
the bank and the municipality of São Paulo.
Itaú Sustainable Finance Award
Companies that focus on organizing and putting into practice
the management of sustainability also have a duty to encourage
the popularization of this subject outside their domain, fostering
dialogue and reflection in society in general. In line with this
concept, Itaú Unibanco developed the Itaú Sustainable Finance
Award, whose second edition was completed in 2010 and
acknowledged the work submitted by journalists and academics
on the subject.
Developed in partnership with the Ethos Institute and the
British consultancy SustainAbility, the prize is awarded every
two years. After wide consultation with various stakeholders,
it was determined that the award program would work
with the concept that “sustainable finance actions are all the
initiatives that are linked to the core activity of institutions in the
financial market that are aimed at integrating economic, social
and environmental aspects. “ The goal is to create a network
to disseminate the concept and promote the debate on
sustainable finance.
The award is given in even-numbered years – like 2010 – and
is intended to encourage the participation of journalists and
academics. In odd-numbered years we promote discussions,
workshops and the publication of content on the website
www.itaufinancassustentaveis.com.br or through classroom
activities, aimed at spreading all of the information and ideas
that exist on the subject.
We created the Itaú de
Finanças Sustentáveis
(Itaú Sustainable Finance)
Program to encourage
dialogue and reflection
on the topic in society.
Professionals and students who submitted their work were
awarded in the following categories: Journalistic Work –
Newspapers, Magazines and Digital Media (Internet) – and
Academic Work – Undergraduate, Lato Sensu post-graduation
program and Stricto Sensu post-graduation program. The
winners of each category received a prize of R$10,000. The
editors of the winners of all journalistic work categories and
the supervisors of the winners of all academic work categories
received an Itautec Netbook. The media companies and
educational institutions with which the winners are associated
received an award certificate. (Sector Management Approach)
118
Relationships
Clients
Stockholders
Suppliers
Government
94
100
112
113
116
Environment
Efficient natural resources management
Itaú Unibanco operations have direct and indirect impacts on
In essence
Climate change
the environment. Therefore, one of the strategic concerns for
the bank management is the quest for tools that will enable it to
make rational and appropriate use of resources. Actions geared
towards enhancing the energy effectiveness of the electronic
DPCs and computers, recycling waste and disposing of it
properly, reusing water and reducing the consumption of paper
and other inputs are some of the concerns of all areas. Such
actions can yield effective operational gains. We are aware that,
since we have a large client and employee footprint, innovations
and small improvements yield significant results.
In 2010, the renovation process for the integration of branches
In order to mitigate the impact of our
operations on climate change, Itaú
Unibanco implemented, in 2010,...
...renovations in the administrative
buildings for the introduction of more
economical and efficient equipment. Also,
another five telepresence rooms were
equipped, totaling nine rooms throughout
the conglomerate.
posed a challenge for the environmental management. Added
to the data centers, workstations and inventory renovation,
this process generated about 3,800 metric tons of electronic
While these initiatives were in progress, Itaú Unibanco launched a
waste, which was collected and properly disposed of – with the
number of awareness campaigns aimed at its workforce, in order
support of specialized contractors hired by the bank – in order
to promote the sustainable disposal of technological devices.
to prevent environmental damage. This type of waste poses
The results achieved were quite rewarding, with over 3,200 items
significant soil and groundwater contamination potential, due
collected, including mobile phones, chargers, videogames,
to the heavy metals employed in its manufacture.
computers, printers, keyboards, mouses and other components,
amounting to about 3 metric tons. After this technological waste
Focusing on the generation of electronic waste, the Sustainable
is processed, salts and metallic oxides are obtained. These will be
Guarantee program, launched in December 2009, promotes
used in chemical, paint, ceramic dyeing materials, and ceramic and
the collection and proper disposal of electronic waste - and
refractory plants, among other industries.
was responsible for the collection of about 2.2 metric tons of
materials throughout 2010. Collection points were placed at
Thus, in 2010, Itaú Unibanco generated 10,492.77 metric
franchised customer service outlets within the Greater São Paulo
tons of waste in its operations, out of which 239.57 metric
area, as well as in other cities throughout the state. In addition to
tons comprised hazardous waste – in addition to 15 CRT
the disposal of batteries and broken or unused electronic devices,
units. The weight of the hazardous waste taken to outside
the corporation encouraged the customer service outlets to send
suppliers/locations amounted to 236.81 metric ton. (EN24)
on the replaced components after the repairs were made, such
(Environmental Management Approach)
as CRTs, monitors, metal wires, plastic components, printed circuit
boards and cables, and electric motors. All waste was forwarded
to specialized contractors – which are our partners in this project
– for materials treatment and recycling. Currently the program
is in place in 18 cities within the State of São Paulo. We plan to
Amount of waste generated by the
corporation’s operations in 2010 (EN22)
extend the program to other regions in Brazil throughout 2011,
taking into consideration the general public’s awareness of the
need to minimize the environmental impact caused by electronic
hardware waste. (EN27)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
Environment
118
119
Hazardous (local legislation or place of origin)
Non-hazardous (all other solid or liquid waste,
except effluents)
239.57 M.T.
15 CRT units
13,902.50 M.T.
119
Relationships
Materials employed
Itaú Unibanco uses, in all of its operations, only paper certified
Total amount of waste by type and
means of disposal (EN22)
by the Forest Stewardship Council (FSC). This is an assurance
that the whole production process has been verified and that
Hazardous waste
Description
CRTs
Amount
2010
Means of
disposal 2010
Amount
2009
it uses inputs in compliance with environmental and social
Recycling
criteria, according to sustainability requirements and in line
with the applicable labor and tax legislation. Throughout the
15 units
Reuse
Sundry batteries
(uninterruptible power
supplies, among others)1
221.6 M.T.
Recycling
118.0 M.T.
Yes
Fluorescent light bulbs2
12.00 M.T.
Recycling
7.7 M.T.
Yes
and credit cards were produced and issued. The cards were not
Sundry batteries9
2.21 M.T.
Recycling
4.6 M.T.
Yes
manufactured from recycled material. (EN1 and EN2)
Sundry batteries
0.55 M.T.
Sanitary landfill/
Industrial landfill/
Export
Sundry batteries
2.40 M.T.
Industrial landfill
0.83 M.T.
Electro deactivation
through microwave
treatment
3
Outpatient clinic waste
4
Organic waste
5
Coolant gas6
was FSC-certified. Within the same period, 41,817,228 debit
Water
With regard to the use of water, Itaú Unibanco does not affect
water sources in a significant manner, since its administrative
buildings only use water in order to meet the employees’
basic requirements, as well as for cooling and cleaning. (EN9)
Non-hazardous waste
Description
year 2010, we consumed 48,428 metric tons of paper, and 100%
Amount
2010
Means of
disposal 2010
Amount
2009
Recycling
216.20 M.T.
Composting
223.7 M.T.
Yes
3.3 M.T.
Recycling
In 2010, the total volume of water provided by the utilities amounted
to 710,381 m3/year in the administrative buildings and 1,281,160 m3/
approx. 1.6 M.T.
year in the branches. Groundwater taken amounted to 89.803,45
Electronic waste8; 1
3,724.00 M.T.
m3/year, originating from the three artesian wells from the Raposo
Paper/cardboard
approx.
3,650.00 M.T.
3,000.0 M.T.
Yes
Administrative Center, which have an initial water use registration
Plastics
138.90 M.T.
157.0 M.T.
Yes
approved by the São Paulo State Basic Sanitation Company (Sabesp)
Glass9
8.56 M.T.
5.9 t
Yes
(the licensing process is in progress), and from the artesian well at
Aluminum9
16.89 M.T.
621.8 M.T.
Yes
Iron9
288.45 M.T.
366.5 M.T.
Yes
the ITM Administrative Center, which has been licensed by the local
Sundry scraps7
9
9
approx. 80.00
M.T.
Incineration
(or use as fuel)
Electronic waste
76.00 M.T.
Industrial landfill
Organic waste9
2,045 M.T.
Sanitary landfill
500, 000 units
Reusable products
auction
Elevated floors (wood)
Refrigerator, stove, hair
straightener, hair dryer,
microwave oven, car
radio, DVD player, etc.10
government and by Sabesp. No surface water has been taken (from
rivers, lakes or oceans). Altogether, water consumption amounted to
2,081,344.00 m3/year (reused water excepted). (EN8)
1,348.5 M.T.
No
The total volume of reused water consumed was 40,929 m3/year,
broken down as follows:
1 – Disposal of batteries and some electronic waste: the contractor turns printed circuit boards into salts and
metal oxides, and the remainder, which can be recycled, is sent to manufacturing plants within several sectors,
as raw material. 2 – Estimated amounts sent for decontamination; the items are collected by contractors (waste
management companies), which, in turn, forward them to specialized decontamination companies (Apliquim
or Tramppo Lâmpadas). Light bulbs go through a process whereby mercury is removed. 3 - Sanitary landfill/
Industrial landfill/Export. Disposal in accordance with Certificates of Allocation of Industrial Waste submitted by
the companies. 4 – Stored by the outpatient clinic crews in proper packaging and collected by a contractor hired
by Limpurb (the city’s garbage collection agency). The waste is taken to the contractor Unidade de Tratamento de
Resíduos (Waste Treatment Unit), which is responsible for groups A and E (contaminated and puncturing/cutting
objects). Once there, it goes through electric deactivation by means of microwave treatment and is decontaminated
before undergoing a process whereby it is no longer classified as outpatient clinic waste. After this process, the
waste in question becomes regular waste and is sent to a sanitary landfill accredited by the São Paulo Environmental
Sanitation Technology Company (Companhia de Tecnologia de Saneamento Ambiental) in Caieiras (State of São
Paulo). The amounts reported are estimated. The outpatient clinics are managed by a contractor. 5 – Actual amounts,
checked and weighed (these are not estimated amounts). 6 – Coolant gas recycling is an item that was added to the
bank’s contract about two years ago, and the results are just now becoming apparent. 7 – Estimated amount. 8 – The
amount of electronic waste has increased considerably from 2009 to 2010 for two reasons: the disposal process of
central management as a whole, of the branch networks and of inventories increased; and there have been transfers
of branches (from Unibanco to Itaú). 9 – Estimated weight. 10 – Estimated amount and equipment.
* The method of disposal was established according to information provided by the contractor in charge of
waste disposal and also by means of organizational defaults of the contractor in charge of waste disposal.
• Eudoro Vilela Tower (Corporate Center): collected from
lavatories, originating from the city’s water supply;
• Raposo Administrative Center: the water used within the building
is rerouted for treatment upstream of the Parshall flume (a location
where the volume of sewage sent to the city’s grid is measured). After
treatment, this water is used for flushing and irrigation.
The percentage of the total volume of water that is recycled/
reused by the corporation in relation to the total volume of
water reported as taken is 2%. (EN10)
120
Relationships
Clients
Stockholders
Suppliers
Government
94
100
112
113
116
All the water used is disposed of in domestic sewers
In addition, we neutralized theGHG emissions
treated by the utilites (losses due to air conditioning
associated with our 22 Apimec meetings, a
evaporation or garden watering were not taken into
project launched in conjunction with the Oscip
consideration). (EN21)
Iniciativa Verde (Green Initiative). (Environmental
Management Approach)
Direct energy consumption by primary source
Total amount of water taken by source, in m3 (EN8) (EN10)
As primary, non-renewable energy sources acquired by Itaú
in 2010, we had: jet fuel, gasoline, diesel, natural gas (NG) and
2010
Branches
710,381
1,281,160
Public system
Public system
Water consumption (m³)/year
Sources
liquefied petroleum gas (LPG). We did not use any renewable
Administrative
buildings
In 2010, the total amount of groundwater taken was 89,803.45 m3/year.
In 2010, the total amount of groundwater taken from all sources was
2,081,344.00 m3/year (except for reused water).
primary energy source. While accounting for our inventory, it was
not possible to gather specific information about the fuel used
to power some flex-fuel vehicles. In these cases, according to the
GHG Protocol guidelines, we worked with the worst-case scenario,
that is, we made our assumptions with regard to emissions based
on the use of gasoline as fuel.
In 2010, the total amount of reused water was 40,929 m3/year.
The initiatives implemented to enhance the energy efficiency
of equipment, computers, servers and other devices have had a
Electric energy and emissions
major impact on Itaú Unibanco’s environmental management. In
A significant achievement was the construction of five
2010, following the virtualization of our servers, the replacement
additional teleconference rooms – bringing the total number
of tube-type monitors with new, LCD-type ones, and the physical
of such rooms to nine which enable us to settle issues more
modernization of the data centers, among other actions, we were
quickly, in addition to reducing GHG emissions. Equipped with
to avoid electric energy consumption on the order of 19,511 GJ.
audio and video equipment, these rooms also increase the
This reduction has resulted in savings of R$1,732,000. In 2010,
possibility of interaction with other areas, both domestically
61,980.7 GJ was consumed. (EN3 and EN18)
and elsewhere. The target for 2010 included the construction
of one additional room, and the benefits achieved due to the
initiative surpassed our forecasts.
Energy saved due to improvements in
conservation and efficiency
Among the initiatives carried out in 2010 to reduce electric energy
In the course of the 653 meetings (983 hours) held in these
consumption is the use of T8-type fluorescent light bulbs (T5 light
venues throughout the year, Itaú Unibanco prevented its
bulbs are being evaluated) and electronic reactors in the new
workforce from traveling 32,995 km over land (thus achieving
branches, with a 15% reduction in electric energy consumption as
savings related to the cost of taxis and other vehicles) and
compared with conventional fluorescent light bulbs.
983,892 air miles (along with flight tickets and accommodation)
– such trips would have caused the emission of 236 metric tons
The pilot project for remote monitoring of electric energy
of CO2. That is tantamount to the felling of 1,548 trees. (EN7)
consumption in the bank’s branches, launched in five units, makes
it possible to control the shutdown of air conditioning and lighting
The possibility of expansion and interaction with other locations
equipment; in addition water consumption can be monitored in
and corporations is now being evaluated by the bank. The
order to detect leaks. The system is connected to the utility’s meter,
construction of new rooms is envisioned especially in foreign
so as to allow the disconnection of a few pieces of equipment
centers. In 2011, the nine Itaú Unibanco teleconference rooms
(such as air conditioners) at peak demand times, when the cost
shall be integrated with those of Itaú BBA, bringing up the total
of electric energy is higher. One of the pilot branches analyzed
number of such venues to 18. (EN7)
(Branch # 0677 – Bom Pastor) achieved an average savings of 504
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
117
Environment
121
121
Relationships
kWh at peak times and 341 kWh at off-peak times. That translates
to average savings of about 10% in the branch’s average monthly
electric energy consumption. This reduction in consumption
Indirect electric energy consumption
from primary source (EN4)
corresponds, respectively, to 504,000 J/s and 341,000 J/s.
Total 2009
MWh per
employee
2009
Total 2010
MWh per
employee
2010*
580,881,146.8
kWh
5.72 MWh
597,782,823.6
kWh
5.84 MWh
With a view to reducing electric energy consumption, Itaú
Unibanco uses more efficient equipment, materials and
structures in the renovation projects of the administrative
* Basis for calculation: 102,316 employees.
buildings. A few examples of this are the replacement of
traditional venetian blinds, the placement of heat-insulating film
on the window glass panes, and the use of more efficient light
fixtures. We have no way of measuring the savings achieved
Itaú Unibanco draws electric energy from the nationwide
with the implementation of these changes, since a number of
distribution grid, and since in Brazil, the electric energy generation
variables may play a role during this transition period, such as
system is based on hydroelectric plants, it can be considered that,
the mobilization of the workforce due to the restructuring of
by and large, the electric energy is drawn from renewable sources.
departments and the retrofit, the possible increase in electric
Nevertheless, we must highlight the fact that the Brazilian electric
energy consumption due to the times when lights on some
energy system is deteriorating due to the growth of electric
floors remain on (during nights and weekends) for renovation
energy generated by thermoelectric plants.
work, and the use of construction equipment, which use more
electric energy, among other reasons. (EN5 and EN18)
Emissions inventory
The GHG inventory process, based on the GHG Protocol, is
Initiatives to promote
environmentally-efficient services
evolutionary in nature. In 2009, we put together our first
In this category, we would like to highlight the Foreign Currency
our emissions. In 2010, based on the experience acquired in
Current Account (Conta-corrente em Moeda Estrangeira – CCME
the previous year, the process was improved. We were able to
Online). This is a tool of Itaú 30 Horas which enables clients to transfer
achieve improvements in data gathering. We also reworked the
amounts from their real-denominated account to a foreign currency
calculations in order to reducee uncertainties. In addition, we
account (or vice-versa), request transfers between foreign currency
separated the sources for better control.
inventory, and the main outcome was that we were able to view
accounts or send amounts to a destination abroad. The travel
agencies that use CCME Online have begun to ask their vendors to
The amount of emissions in scope 1 (direct GHG emissions) was
e-mail their invoices, thus saving printing costs and electric energy
reduced slightly, even though new emission sources have been
consumption. The work to put together and print transaction letters,
added. The reduction in emissions from our fleet of vehicles as
the practice of sending couriers to the exchange facility and the
well as the more focused management of coolant fluids – in the
circulation of paper documents are no longer required.
administrative buildings in which Itaú Unibanco has control over
the purchase of such products – made it possible to offset the NG
For 2011, the bank’s target is to see to it that the number of
increase (since we took into account the cafeteria of an additional
virtual servers surpasses the number of physical servers – as
administrative building).
of now, the ratio is 58% physical to 42% virtual servers – and
complete the replacement of all tube-type computer monitors
In scope 2 (GHG emissions from purchased electricity), we
with LCD-type monitors, which will yield even larger energy
doubled our emissions, even though our electric energy drawn
efficiency gains. In addition, data center improvement projects
from the grid has increased only slightly. This occurred because
are forecast. The data centers, which will use more efficient
the nationwide electric energy grid emission factor, a variable
technologies and the best practices available in the market, will
over which the bank has no control, increased from 0.0245 tCO2 /
also make it possible to use less energy and space. (EN6)
MWh in 2009 to 0.0511 tCO2/MWh in 2010.
122
Relationships
Clients
Stockholders
Suppliers
Government
94
100
112
113
116
In scope 3 (all other indirect GHG emissions), we exceeded the GHG
Protocol’s requirements. We included the emissions originating from our
paper waste in landfills and from composted organic compounds. The
changes in the estimation method used to calculate fuel consumption
have generated a considerable impact on the way we account for
emissions, especially on the significant reduction in some of our emissions,
such as in the transportation of valuables and cash in bags. (This was
formerly based on the amount envisaged in a contract, and in 2010 it
was calculated as a function of the number of unloading operations
performed.) On the other hand, these reductions were offset by the
increase of taxi use, for mileage allowance and fuel reimbursements and
due to the transportation of cargo and materials, as a result of the transfer
of branches from Unibanco to Itaú. (EN16, EN17 and EN18)
2009
2010
Emissions (tCO2e)
Emissions (tCO2e)
Total inventory
90,521.7
103,412.3
Scope 1
4,922.9
3,648.9
866.8
785.8
959.6
94.5
GHG source
Our own aircraft fleet - fixed-wing
Leased aircraft fleet - rotary-wing
Mobile combustion
Our own or leased fleet of vehicles
38.4
Car rental
134.0
Van (shipping) – IBBA
Coolant (134a)
Fugitive emissions
0.3
606.8
211.9
63.2
45.7
Fire extinguisher
LPG
Stationary combustion engines
GN
Electric and thermoelectric generators
Scope 2
Electric energy acquired
Electric energy acquired
Scope 3
Commuter buses for employees + van service
Car rental
Mobile combustion outsourced fleet
168.2
479.2
2,258.3
1,859.1
14,233.3
30,546.7
14,233.3
30,546.7
71,365.5
69,216.7
2,736.2
1,030.4
83.7
Garantec
1,286.2
227.6
Transportation of cargo + materials
9,147.9
12,826.1
Cash and valuables transportation
18,566.2
4,382.6
Cash bag transportation + couriers
9,324.8
158.8
855.2
2,164.1
Airline tickets purchased
13,111.4
20,319.7
Fuel vouchers
12,817.8
18,991.2
Taxi
Mileage allowance reimbursement
Fuel reimbursement
Waste
0.1
830.1
2,606.1
6,7624
Waste transportation
121.5
Landfill
445.1
Composting
85.6
Stationary combustion engines
Electric and thermoelectric generators
924.3
Fugitive emissions
Coolant (134a)
777.4
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
117
Environment
123
123
Relationships
Emission of substances detrimental to the ozone layer (EN19)
Gas type
Consumption (t)
Estimated emissions
(t of CFC-11 equivalent)
2009
2010
2009
2010
R-22
2.65
1.7
0.146
0.1
R-141-b
0.27
0.2
0.002
0.02
Nitrogen oxides (NOx), sulfur oxides (SOx) and other emissions to atmosphere, in 2010* (EN20)
Pollutants (kg/year)
Source
Activity
Fuel
Electric energy generation
Stationary
Mobile
NOx
SOx
Total
Organic
Compounds
Particulate
Matter
Carbon
Monoxide
Diesel
49,024.3
3,223.8
4,780.1
3,446.1
10,560.8
311.7
NG
1,038.9
2.2
40.8
28.2
LPG
44.1
0.0
3.4
2.4
Gasoline
19.6
194.1
34.9
19,906.9
50,126.9
3,420.1
4,859.3
Food preparation
Transportation - light vehicles
Total
25.5
293.4
3,476.7
11,191.3
* In order to calculate the emissions as required in this table, we chose to use only scope 1 of our inventory, due to the uncertainties associated with the other scopes, since it was
no longer possible to calculate fuel consumption directly. This increases the uncertainty in this information – which is quite normal when dealing with GHG inventories. Since this
indicator’s emissions are heavily dependent on factors such as technical specifications of the equipment, detailed breakdown of the fuel and type of combustion, the uncertainty in
this calculation would have been considerable to begin with, and, once added to the uncertainty about obtaining the fuel volume, our result could be far from reality.
Mitigation of environmental impact
Itaú Unibanco has a number of initiatives in place to mitigate
• implementation of a single after-sales kit (consolidation of
the environmental impact of its products and services. We
the after-sales kits) for individual life and personal accidents
would like to highlight the following initiatives:
insurance products, in keeping with the client segment (Retail,
Itaú Uniclass or Personnalité). As a result, the cost of after-sales
• implementation of the electronic insurance policy, with
materials sent to the client saw a R$960,000 reduction;
the following goals: to reduce the use of natural resources;
to lessen the bank’s environmental impact, by reducing the
• a one-page reduction in the after-sales kit of the product
use of paper and other materials in issuing and distributing
known as Proteção Financeira Itaucred (Itaucred Financial
policies; to raise our clients’ awareness of the sustainability
Protection). This has yielded a reduction of 600,000 printed
issue, leading by example when it comes to sustainable actions;
pages per year;
and to standardize our communication with policyholders, by
generating savings in the printing and logistics costs. Before
• installation of a rainwater catchment reservoir. The water
this initiative was launched, for an annual average of 82,000
obtained in this manner is reused to flush the toilets in building
deals (policies and endorsements), we used to print an average
A of the Tatuapé Administrative Center. This job is expected to
of 1,827,000 sheets of paper (on both sides). As of now, for
be completed in the first quarter of 2011;
the same average number of deals, the number of documents
printed is approximately 209,000;
124
Relationships
Clients
Stockholders
Suppliers
Government
94
100
112
113
116
• for the supply of the administrative buildings, diesel-fueled
in the GHG Inventory. As a mitigating action, as of 2010, the
generators are used. In the long term, these generators may
bank has seven administrative buildings which receive clean
contribute to atmospheric pollution, even though the bank
energy generated at the Bandeirantes Thermoelectric Plant
considers this a low-impact issue, due to their operational
(Unibanco Administrative Center, Unibanco, EBI, EBV, CAO, ITM,
characteristics. In order to establish this impact, the generators’
Tatuapé Administrative Center); the Tatuapé Administrative
diesel fuel consumption is monitored and the data are reported
Center started receiving this energy in May 2010. The plant is
in the GHG Inventory. As a mitigating action, the Lavador de
a result of a project developed by the then-Unibanco, and its
Gases do Centro Administrativo Tatuapé (Tatuapé Administrative
power is generated from the burning of methane produced
Center Gas Washing project) is expected to be completed by
from the decomposition of the waste placed in the landfill.
2011. With this initiative we expect to reduce emissions of
(EN26 e EN28)
SOx (up to 99%), NOx (5%) and particulate matter (80%) gases
Transport-related impact
caused by burning diesel fuel;
The environmental impact caused by the means of
• currently, organic waste originating from sweeping, from the
transportation employed by the corporation encompasses
toilets, and from non-recyclable materials is hauled to a sanitary
emissions (GHG, NOx, SOx) and sound pollution. Both take
landfill licensed by the Cetesb. Even though the volumes are not
place during the transportation of employees, waste, cash bags,
great, the hauling of waste to sanitary landfills may contribute,
cargo and materials, and are not seen as very significant, due
in the long term, to the overburdening of these disposal
to the characteristics of the bank’s operations. Nevertheless,
locations. In addition, the placement of waste in landfills causes
emissions may cause an increase in atmospheric pollution. Data
the production of gases (methane/CH4, carbon dioxide/CO2,
on such emissions are part and parcel of the GHG Inventory,
hydrogen sulfide/H2S, ammonia/Nh3) due to the decomposition
which was undergoing production while this report was being
of organic matter as a result of the actions of micro-organisms.
prepared. As a mitigating step, measurement equipment
In order to establish these impacts, the volume generated is
(Ringelmann Smoke Chart) is used in the vehicles that serve
monitored, and the data are reported in the GHG Inventory. The
the Tatuapé Administrative Center: if the smoke color is not
mitigating actions implemented are as follows: channeling most
in compliance with the recommended standard, the supplier
of the waste to recycling, which prevents it from being disposed
is asked to implement corrective measures. (EN28 e EN29)
of in landfills; hauling the waste generated in administrative
(Environmental Management Approach)
buildings in the São Paulo area to a covered landfill, which
proper disposal of waste generated in the renovation work of the
Products and services that are beneficial
to the environment
offices, which was previously left under the responsibility of the
In order to generate benefits and environmental offsets, Itaú
construction companies and is now collected by a recycled waste
Unibanco has developed the following products and services:
reduces the production of gases; implementing, in 2010, the
contractor that delivers it to recycling companies; and selectively
collecting waste at the main Itaú Unibanco facilities, with a
Environmental Liability Insurance for Sudden and Gradual
project for its expansion to other buildings;
Pollution – offers coverage for the repair of environmental
damage as well as damage sustained by third parties due
• for the supply of the administrative buildings, electric energy
to pollution events. Thus, the coverage offered enables the
from the city grid is employed, which in the long term may
policyholder to manage the environmental risk associated
contribute to a shortage of natural resources, even though the
with its operations covered by the policy, and, if pollution
bank considers this a low-impact issue, due to its operational
events covered by the policy occur, the policyholder shall
characteristics.
receive the full amount specified in the contract to use in the
environment’s recovery, as well as in the repair of damage
In order to determine this impact, the consumption of electric
sustained by third parties as a result of such events which have
energy from the grid is monitored and the data are reported
taken place by accident.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
117
Environment
125
125
Relationships
Crediário Aquecedor Solar (Solar-Powered Heater Loan) – a
the course of the renovations performed on the floors of
reduced-rate loan for the purchase of solar-powered heaters.
administrative buildings;
MaxiConta Ambiental Empresas (Corporate Environmental
• R$1,379,373.71 in the Lavador de Gases do Centro Administrativo
MaxiAccount) – the first package of services and rates in the Brazilian
Tatuapé, created to treat the bank’s emissions;
market that is meant to promote an awareness of sustainability
issues among clients. For this package, all operations are performed
• R$1,130,700.00 in the establishment of teleconference rooms
electronically; no paper is used. The reduced maintenance fee and the
(cleaner technology, since it does away with the need to travel
fact that we charge to provide banking services that are potentially
to attend meetings);
harmful to the environment promote environmental awareness.
• R$365,688.66 in the Tatuapé Administrative Center ISO 14001
BNDES Automático e Programa BNDES Procopa Turismo –
certification. Even though this is not included in the targets for
(Automated BNDES and BNDES Pro World Cup Tourism
2010, the bank made great efforts to recommend the Tatuapé
Program) – lines of credit provided by BNDES, which
Administrative Center for ISO 14001 certification. As a goal for
bring favorable conditions to the hospitality sector (bed &
2011, an audit is scheduled to take place in the first half of the year;
breakfasts, hotels and resorts), for construction, extension, and
modernization of the hospitality network (bearing in mind the
• R$47,500.00 to hire the ICF consulting firm, to provide
2014 World Cup and the 2016 Olympic Games). Covered are the
assistance in preparing the emissions inventory. (EN30)
purchase of locally-produced machinery, equipment, furniture
and software, labor and training, in addition to studies and
In 2011, the bank intends to engage in the following projects:
projects. The hospitality businesses that are certified as per the
Sistema de Gestão da Sustentabilidade para Meios de Hospedagem
• replacement of the R22 coolant in the Tatuapé Administrative
of the Ministério do Desenvolvimento, Indústria e Comércio Exterior
Center air conditioning equipment – which is detrimental to
Brasil (Hospitality Business Sustainability Management System of
the ozone layer – with the R407C coolant, which is considered
the National Institute of Metrology, Standardization and Industrial
environment-friendly;
Quality) or level “A”- in energy efficiency as per Procel Edifica shall
have access to special rates and terms.
• completion of the Lavador de Gases do Centro Administrativo Tatuapé
project. This has already been mentioned in EN26 and EN30;
Contador de Sustentabilidade (Sustainability Meter) – this
is an unprecedented initiative in the financial market. This tool
• installation of a rainwater catchment reservoir. The water
enables corporate clients to view the number of saved sheets
obtained in this manner shall be reused to flush the toilets in
of paper and the total amount of GHG emissions they have
building A of the Tatuapé Administrative Center. This job is
prevented by using electronic signatures in the course of their
expected to be completed by the first quarter of 2011;
foreign exchange operations. Since the launch of the electronic
signature for exchange contracts in December 2009, over 3.5
• construction of three additional teleconference rooms;
million sheets of paper have been saved, and according to our
forecast, in 2011 this number will exceed 5.7 million. (FS8)
• continuation of the project whereby the waste generated in
the renovation work on certain floors of the buildings is properly
Environment-related investments
disposed of. This project originated from BIS. This is an initiative
In 2010, Itaú Unibanco invested R$4,440,208.25 in environmental
through which employees’ ideas with regard to sustainability are
protection.
reviewed. The initiative was implemented in 2010 in one center,
and a few months later it was extended to other hubs which are
• R$1,516,945.88 in treatment and disposal of building
undergoing renovations, promoting sustainable attitudes among
management waste, as well as the waste generated in
employees, contractors, and suppliers;
126
Relationships
Clients
Stockholders
Suppliers
Government
94
100
112
113
116
Nature preserve
Fundação Itauclube (Itauclube Foundation) owns a
protected area, located at the Guarapiranga Country
Club in the city of São Paulo, with 7,601 m² of built-up
area and a total area of 73,276 m². The club is located
on a spring of great importance for the region. Its
conservation value is assured by Law No. 13.885/04,
which regulates the M’Boi Mirim District Land Use
Master Plan, and its listing as a “Leisure and Tourism
Area” (ZLT-02), part of a classification system that
establishes the standards for urban use and allocation
in a legally protected nature preserve. (EN11)
• selective collection of waste at the main Itaú Unibanco facilities
with intended expansion to other buildings;
• a rainwater catchment project is also being studied, to provide
water for reuse in the Corporate Center cooling towers.
Green IT
The Green IT concept implemented at Itaú Unibanco is directly
related to the bank’s sustainability. The projects developed by
the information technology area in order to promote more
efficient processes are underpinned by four pillars:
• Products’ life cycle (and electronic waste management);
• Energy efficiency;
• Green workplace;
• Green applications.
Through actions implemented in keeping with these targets set
forth for the IT area, it is possible to reduce the use of resources
and properly manage the activities around which the bank’s
operations are centered.
We are aware that the technology environments’ improvement
process is a long and time-consuming journey; it requires
relentless research investment, review of the results achieved,
and knowledge of the innovations available in the market.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Media and Public Relations
117
Environment
127
Electronic waste collection campaign
carried out in the administrative buildings.
3,200 ITEMS
were collected in the course
of a number of awarenessraising campaigns to promote
sustainable disposal among Itaú
Unibanco employees
127
Social and cultural
investments
Social and cultural
investments
Supporting
education
and art
• Fundação Itaú Social
• Instituto Unibanco
• Instituto Itaú Cultural
Contributing to social development
is a strategic sustainability issue for
Itaú Unibanco.
The investments made in the cultural and social areas – especially
those geared towards the enhancement of education – are
linked to the corporation’s vision to seek sustainable performance
leadership. Our target is to employ the same expertise and
efficiency that we employ in our business in the development
of technologies and tools that may prompt the government,
by means of partnerships, to develop public policies for Brazil’s
sustainable growth. Likewise, it is our wish that these actions be
absorbed by other corporations within civil society and replicated,
yielding high-quality results. (SO5) (Economic Management
Approach – Indirect Economic Impact)
On the website
Refer to the table that highlights
the indirect economic impacts
caused by the Fundação Itaú
Social’s projects in 2010.
The three institutions responsible for Itaú Unibanco’s social
investment – Fundação Itaú Social, Instituto Unibanco and Instituto Itaú
Cultural – act independently, although they complement each other.
Primarily, Fundação Itaú Social and Instituto Unibanco study, develop,
implement and promote innovative technologies and methods to
improve childhood and youth education throughout Brazil. Instituto
Itaú Cultural seeks to promote more democratic access to culture and
arts. Specifically, it promotes continuing education programs, exhibits
and similar events; it also promotes the work of new local artists.
(Society Management Approach)
In 2010, Itaú Unibanco’s social and cultural investments amounted to
about R$241 million. Notable among these were the investments in
education and culture, which amounted to R$126 million. (EC1 and EC8)
On the iPad and in the Magazine
Itaú Unibanco has made a strong
commitment to the improvement of the
quality of education in Brazil with the
aid of Fundação Itaú Social and Instituto
Unibanco. Read more about this in the
article “Ator privado, missão pública”
(Private Actor, Public Mission).
Social and cultural investments
Fundação Itaú Social
presented in a quick and simple graph-like format that is
accessible to the wider public.
Focusing on basic education
the teaching of the Portuguese language. One of the
One of the main contributions of Itaú Unibanco in the
most efficient tools Itaú Unibanco has to contribute to
The Avaliação Econômica de Projetos Sociais (Economic
social sphere has been the joint actions taken by Fundação
the improvement of the quality of education in Brazil
Evaluation of Social Projects) program, created with the
Itaú Social along with the municipal, state and federal
is the dissemination of knowledge and practices so
support of the Risk and Financial Control area of the bank
governments to develop educational policies to improve
that members of the school community and public
and applied in the programs developed by Fundação Itaú
the quality of education. By means of ongoing projects
authorities can develop mechanisms to improve
Social, allows us to analyze the impact that a social project
whose results are measured in the long term, the foundation
education management. In this respect, Fundação Itaú
may have on the lives of participants and calculate the
has contributed to disseminating technologies, providing
Social develops two important programs: Melhoria
social return on the investments made. The initiative also
In total, Fundação Itaú Social served 9,638,280 people through
information and enhancing education management in Brazil.
da Educação no Município (Municipal Education
contributes, based on statistics methodologies, to enhancing
its projects in 2010, 2.4 million of whom benefited directly while
(Society Management Approach).
Improvement) and Excelência em Gestão Educacional
project management, making investments more transparent
over 7.2 million benefited indirectly. The projects covered the
(Excellence in Education Management).
and planning future actions.
following regions: São Paulo, Santa Catarina, Acre, Minas Gerais,
Paraná, Rio de Janeiro, Ceará, Rio Grande do Sul, Goiás, Tocantins,
One of the examples of the alliance between the different
government spheres and Fundação Itaú Social is the
Preparing municipal managers in the education field so
In 2010, Fundação Itaú Social entered into a partnership
Mato Grosso and Pernambuco. Additionally, there were some
Escrevendo o Futuro program. Launched in 2002, it later
they can put together and manage a Municipal Education
with the federal government’s ENAP to train civil servants
nationwide projects. (EC8 and SO1)
became a public policy of the federal government in 2008
Plan, which ensures that children, teenagers, youngsters and
from seven special ministries and departments on how to
when it was renamed Olimpíada da Língua Portuguesa –
adults have access to education, is the goal of Melhoria da
economically evaluate social projects, which is an important
We present below a summary of the Foundation’s performance
Escrevendo o Futuro. By 2010, this program had already
Educação no Município, which was developed in 1999. The
measure to broaden the scope of the methodology used.
in 2010:
reached 99% of Brazilian municipalities. The objective
2010 edition of the program reached 16 municipalities in
of this initiative is to improve the writing and reading
the State of Paraná.
skills of students from different education levels by first
Performance of Fundação Itaú Social in 2010 (EC8 and SO1)
improving the teaching skills of educators in the public
The Excelência em Gestão Educacional program involves
school system. Supported by the Ministry of Education
teachers, school management centers, parents and
(MEC), all 122,000 public schools received the Coleção
communities and is focused on improving student learning
da Olimpíada (Olympics Collection), which is used to
skills. Implemented in 2009 and inspired by actions
help teach students the skills to write different types
developed in New York City, the three-year pilot project is
of texts. At the end of 2010, 20 students from different
being developed in partnership with the São Paulo State
grades who had written on the topic O lugar onde vivo
Education Department in ten schools in the eastern region
(The place where I live) were awarded prizes. In the four
of the city of São Paulo. The Excelência em Gestão Educacional
categories – poems, literary memories, short stories and
also promotes studies of successful initiatives implemented
essays – 239,435 teacher registrations were received from
in Brazil or abroad as a means to enhance thinking on school
60,123 public schools, involving 7 million students from
management and the practices adopted.
Social welfare
winners of the national phase – students and teachers –
Fundação Itaú Social also offers managers in the field of
Subtotal
were awarded gold medals, computers and printers. The
education the Portal Itaú Fase (Itaú Phase Portal) (http://
Institutional expenditures
schools these children attend were awarded computer
ww2.itau.com.br/itausocial/fase/), which organizes the
Total
labs, consisting of ten personal computers and a printer, in
results from national scientific studies on the factors that
addition to books for their libraries.
impede the quality of elementary education. Accordingly,
Fundação Itaú Social
Total (R$)
Description and results
Education
28,078,033.68
69 institutions and/or projects sponsored.
Volunteer work
3,160,214.50
Sponsorship divided into three fronts: Prêmio Escola Voluntária
(Volunteer School Award), support for employees to make donations
and volunteer actions.
Third sector management
1,825,677.93
Five institutions, projects and/or events supported to promote the
improvement of the nonprofit sector.
Health
2,140,137.36
16 institutions and/or projects sponsored to improve service quality or
access to health services.
680,000.00
elementary, middle and high schools nationwide. The 20
18 institutions and/or projects sponsored to improve service quality and
skills and ensure and improve access to different social welfare services
such as the Associations of Parents and Friends of Exceptional Children,
daycare centers and other social welfare institutions.
35,884,063.47
21,562,183.19
57,446,246.66
public policy makers, managers and society in general
For 2011, we plan to implement the following projects:
In odd-numbered years, the organization of workshops
have more information to make decisions on the
and training meetings is extremely important
allocation of the funds invested in education. The portal’s
• Olimpíada de Língua Portuguesa – Nationwide;
to increase teacher training, evaluate the results
content is easy to understand and regularly updated
• Prêmio Itaú-Unicef – Nationwide;
achieved and ensure an in-depth understanding of
with all the latest scientific studies – and the results are
• Evaluation Course (NGOs and Students) – Nationwide.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Fundação Itaú Social
Instituto Unibanco
Instituto Itaú Cultural
Social and cultural investments
Full-time education
Itaú Criança Program
Full-time education, which encourages activities in
periods when students are not in the classroom, allows
In 2010, another activity of great importance of Fundação
the enhancement of interpersonal, cultural, scientific
Itaú Social was the Ler Faz Crescer (Reading Makes You Grow)
and artistic repertoires. For this reason, Fundação Itaú
campaign, a national initiative disseminated by the Itaú Criança
Social has been structuring, since 1995, programs that
(Itaú Children) program to encourage reading by children of up
stimulate the implementation of strategies that take
to six years of age. Parents, educators, volunteers from social
the concept of education beyond that provided by the
institutions and other interested people had access to kits
school and the family.
containing four children’s books, a leaflet with tips for storytelling and a sticker to help publicize the idea. Kits can be
The Prêmio Itaú-Unicef is granted every two years. Its
requested free of charge at www.itau.com.br/lerfazcrescer and
goal is to identify, recognize, publicize and stimulate the
are also sent via mail.
work of NGOs that contribute, in keeping with public
education and social welfare policies, to the full-time
Approximately 16 million books were made available and
education of at-risk children and adolescents. In odd-
over 4,000 Itaú Unibanco branches took part in the initiative.
numbered years, the winning projects are selected and
The bank employees were encouraged to strengthen their
awarded. In even-numbered years, the educators from
relationships with clients and the community in order to seek
the organizations that participate in the award, public
partners in the reading activities and to become ambassadors
agencies and different segments of society are offered
of this practice. At the branches, there are materials to inform
onsite and distance training courses. In 2010, we held
people of the importance of reading for children’s development
in São Paulo the Colóquio de Educação Integral, which
and to encourage the participation of members of society.
was extended into four regional meetings and distance
courses. Over the course of its existence, the Prêmio Itaú-
The campaign focuses on reading for children of up to six years
Unicef has received applications from more than 9,000
of age because it is at this age that personalities and habit
projects containing innovative experiences developed in
preferences, including cultural, are established. Studies show
different learning venues.
that the relationship with books in that period is a decisive
factor for cognitive and affective development. For of all
The Jovens Urbanos program is another important
these reasons, Itaú Unibanco believes that the Ler Faz Crescer
action in this area. It offers training to at-risk youths.
campaign has significantly contributed to the transformation
Its objective is to broaden the social and cultural
of society and to the development of Brazil, communities and
repertoire of the young so as to contribute to their
people – because we know we will not be able to achieve
personal and social transformation. To this end,
sustainable development on our own.
training courses are offered by NGOs located where
they live. These training courses offer opportunities to
Created in 2006 for the purpose of drawing the attention of
explore the city and territory, give access to different
society to the protection of the rights of children and adolescents,
technologies through experiments in workshops
as well as to help publicize and apply the Estatuto da Criança e
and encourage the youths identify and implement
do Adolescente (Statute of Children and Adolescents), the Itaú
community intervention projects. Accordingly,
Criança program is a successful example of joint mobilization by
the program contributes to these youths staying
employees, clients, partners and community.
in or returning to school, to connect them to new
educational processes, in addition to facilitating their
Since the beginning of the program, partnerships with over 5,000
access to cultural and social resources that are available
public schools have been established. These schools enriched
in the city, thereby increasing the set of skills and
their library collections with books collected at Itaú branches and
abilities they will need for public life and work.
acquired by Fundação Itaú Social and by the program’s partners.
132
Fundação Itaú Social
132
Instituto Unibanco
134
Instituto Itaú Cultural
136
At the end of 2010, we started the sixth edition of the
program, which will include 16 hands-on NGOs and serve
960 youths from four different districts in the city of São
Paulo (Lajeado, São Miguel Paulista, Grajaú and Ipiranga/
Heliópolis). Among the results achieved to date, we can
highlight the average growth of 77% in the monthly
income of participants, in addition to the 49% increase
in their chances of finding a job, according to data from
the economic evaluation carried out in 2010. In 2011,
this methodology will be expanded by the institution via
social franchising.
Social mobilization
The involvement of Itaú Unibanco employees in social
projects and activities contributes, on an individual
level, to the transfer of the bank’s vision of sustainability
as well as to practical initiatives. The Itaú Voluntários
(Itaú Volunteers) Program concentrates the actions of
Fundação Itaú Social and Instituto Unibanco to meet the
employees’ own interests in engaging in social projects,
as well as to foster this practice. Launched in 2003, the
initiative expanded gradually and had, at the end of
2010, more than 10,000 participants, namely employees,
retirees and guests (friends and relatives) who engage
in corporate and personal activities. Anyone interested
can support the projects of Fundação Itaú Social, Instituto
Unibanco and their partners, in addition to participating
in the projects developed by other employees. The
program also features the Portal Itaú Voluntario (Itaú
Volunteer Portal) (www.ivoluntarios.org.br), a tool with
more than 5,500 users and a monthly average of 32,000
page views (8,000 unique visitors), which promotes
integration and the exchange of experiences among
employees nationwide.
In 2010, the corporate actions implemented by Fundação
Itaú Social and Instituto Unibanco to promote volunteer
work among employees included workshops on
information technology, entering the job market, wise
use of money and story-telling, in addition to these
institutions’ large programs such as the Olimpíada da
Lingua Portuguesa – Escrevendo o Futuro, Jovens Urbanos,
Mentoria Jovem (Young Mentors) and Estudar Vale a Pena
(Studying is Worthwhile).
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
R$ 241 million
This was the total amount
invested in social and
cultural actions by Itaú
Unibanco in 2010.
133
Social and cultural investments
Instituto Unibanco
This project provides tutoring for students who have just
entered high school, allowing them to review the subjects
Focus on high school education
in which their achievement rates have been unsatisfactory
The actions of Instituto Unibanco are focused on improving the
since elementary and middle school. This tutoring is provided
performance of young high school students in Brazilian public
to avoid an inadequate knowledge base that would impede
schools, as well as on reducing dropout rates in this stage.
the understanding of new subjects, increasing the gap and
discouraging the continuation of their studies.
By developing technologies and methodologies that result in
increased retention and better performance of young people
Tutoring programs in Portuguese Language and Mathematics are
at school, the institute targets one of the most important
offered outside school hours. The tutors are university students
Brazilian social problems: social inequality.
from teaching courses who, by participating in the initiative, have
the opportunity to improve their professional education. In 2010,
The technologies and methodologies developed by the
PEJ served 246 schools and benefited over 20,000 youngsters.
institute aim to enhance policies and practices in effect
in public schools and their efficiency is tested by impact
The Jovem de Futuro (Youths with a Future) program, another
evaluations carried out by independent evaluators. They are
action developed by Instituto Unibanco, is also supported by state
available for governments and civil society organizations and
education departments. Its objective is to provide school managers
are developed so as to allow their application in different
and school community agents with proper training and tools to
circumstances.
establish a model of permanent mobilization and management in
search of better performance results and graduation rates. Based
An example of a joint action between the institute and
on an evaluation method, educational institutions identify needs
education departments, which is dedicated to improving
and deficiencies in every aspect of the school life (average grades,
students’ achievement rates and reducing dropout rates, is
teacher profiles, management routines and facilities) and then
PEJ, developed in 2007 by Instituto Unibanco in partnership
determine their own planning matrices. In 2010, the program
with the state education departments of Rio de Janeiro (State
reached 98 public schools in Greater São Paulo, Vale do Paraíba (State
of Rio de Janeiro), Vitória (State of Espírito Santo), Juiz de Fora
of São Paulo), Rio de Janeiro (State of Rio de Janeiro), Greater Belo
(State of Minas Gerais), Campinas (State of São Paulo) and
Horizonte (State of Minas Gerais), and Greater Porto Alegre (State of
Brasilia (Federal District).
Rio Grande do Sul), impacting around 140,000 young people.
Main projects developed by Instituto Unibanco in 2010 (EC8, SO1)
Instituto Unibanco
Total (R$)
Description and results
Jovem de Futuro
program
18,209,370.00
The Jovem de Futuro program comprises actions, methods and technologies that offer high schools a comprehensive and participative
management model focused on results. It is based on the training of a management group composed of members of the school
community itself to create a Quality Improvement Plan to be implemented over three years with the technical and financial support of
the institute. Currently, it is being developed in the following regions: Greater Belo Horizonte, Greater Porto Alegre, Greater São Paulo, Vale
do Paraíba, and Greater Rio de Janeiro. In 2009, it was implemented in 86 schools with the participation of 69,553 students. In 2010, the
project reached 138,143 students from 98 schools.
Entre Jovens program
7,780,440.00
PEJ consists of technology created by Instituto Unibanco and developed in partnership with state education departments. It
is aimed at facing the academic obstacles to attending high school (lack of the basic skills of elementary and middle school)
that a large number of students face and that is responsible for poor performances and, in many cases, dropouts. PEJ offers
complementary education to freshmen of public high schools through tutoring programs provided by university students from
teaching courses. The periodic monitoring evaluations showed that the performance of the students who participate in the project
is five points higher. This can be considered a very significant result given the short time of intervention: six months, with three
months of activity in each school semester. Currently, it is in place in: Vitória (State of Espírito Santo), Juiz de Fora (State of Minas
Gerais), Brasília (Federal District), Rio de Janeiro (State of Rio de Janeiro) and Campinas (State of São Paulo). In 2009, the program was
implemented in 157 schools. In 2010, this number rose to 246 schools.
134
Fundação Itaú Social
128
Instituto Unibanco
134
Instituto Itaú Cultural
136
The technologies and methodologies
developed by the institute aim to
enhance policies and practices in effect
in public schools.
Instituto Unibanco
Sponsored projects: many
social education initiatives
carried out by other
organizations
Total (R$)
3,489,945.00
Description and results
Support for many social education initiatives carried out by other organizations.
Financial education
684,146.00
The institute realized that to reduce school dropout rates advising younths in the public school system to continue studying and
working was not enough; it was necessary to show them how to deal with money in a cautious way, helping to increase their family
income and creating a perspective for the future based on financial planning. With this objective, Instituto Unibanco has, since 2008,
been working on the Estratégia Nacional de Educação Financeira (National Financial Education Strategy – Enef ), established by the
federal government in partnership with the main regulatory bodies of the financial system. The objective of Enef is to have financial
education included as a school subject. For this purpose, the Diretrizes de Orientações Curriculares para Educação Financeira nas Escolas
(Curricular Guidelines and Directions for Financial Education in Schools) were prepared – a document that has already been approved
by the MEC. In the second phase of the Financial Education program, Instituto Unibanco prepared the teaching material for high school
students and teachers. The first module deals with individual and family-level finances, the second deals with finances from society’s
point of view, and the third addresses topics related to public policies.
Centro de Estudos Tomas
Zinner (Tomas Zinner
Study Center)
682,320.00
Located in a large green area in Jardim Esmeralda, in São Paulo, near the Unibanco Administrative Center, the Centro de Estudos Tomas Zinner has
computerized classrooms, reading areas and an auditorium with multimedia equipment. Created and supported by Instituto Unibanco, it develops
activities aimed at testing and validating educational technologies to be applied in projects focused on improving the quality of high school
education, reducing school dropout rates and including young people in the labor market, specifically in the sphere of the Lei de Aprendizagem
(Learning Law). In addition to serving, through its pilot projects, as a laboratory for proposals to improve public policies in the education, the
center promotes social and educational activities and its infrastructure is made available to the local community.
Núcleo Amigo do Professor
(Teacher-Friendly Center)
Total
2,143,322.00
The Núcleo Amigo do Professor is a center of Plug Minas (Digital Education and Experimentation Center), which pursues social development
through education combined with the use of Information and Communication Technology. The center’s objective is to reduce school
dropout rates and increase the graduation and performance rates of students of public high schools in the State of Minas Gerais. All the
courses are free of charge and certified by the Government of the State of Minas Gerais.
32,989,543.00
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
135
Social and cultural investments
Instituto Itaú Cultural
Support for art and culture
Founded in 1987, Instituto Itaú Cultural has a very
important role in preserving Brazilian art and culture, and
promoting artistic expression of new Brazilian artists and
increasing public appreciation of the arts.
The Rumos Itaú Cultural (Itaú Cultural Directions) program,
developed continuously since 1997, is one of the main
tools of the institute to promote reflection on Brazilian
artistic production and to identify sources and new talent
that may contribute to the development of a vision of
national art. This nationwide program develops and
promotes work in nine thematic areas: performing arts,
cyberarts, visual arts, film and video, dance, cultural
journalism, literature, music and cultural management
research. In 2010, approximately 4,100 applications
were received for projects in the areas of theater, cultural
management, literary review, and music.
Another important achievement of Instituto Itaú Cultural
over the year was the increase of the Virtual Encyclopedias
database, which is available to the general public at http://
itaucultural.org.br. The encyclopedias have the largest
collection of visual arts in Brazil, with more than 28,000
images from the Enciclopédia Itaú Cultural de Artes Visuais
Cybernetic art exhibit
Emoção Art.ficial 5.0 (Art.
ficial Emotion 5.0)
(Itaú Cultural Encyclopedia of Visual Arts) and more than
5,353 entries (in Portuguese, Spanish, French and English),
in addition to the content from the encyclopedias on
Theater (878 entries), Brazilian Literature (332 entries) and
Art and Technology – totaling 6,563 entries.
The Rumos Itaú Cultural (Itaú
Cultural Directions) program,
developed since 1997, is one of
the main tools of the institute to
promote reflection on Brazilian
artistic production.
Itaú Cultural is also open for dialogue with society
through temporary and permanent exhibits that can be
visited free of charge at its headquarters at 149 Avenida
Paulista. In 2010, the institute received 253,097 visitors
including approximately 16,600 students from private
and public schools.
136
Fundação Itaú Social
Instituto Unibanco
128
134
Instituto Itaú Cultural
136
Main Projects developed by Instituto Itaú Cultural in 2010 (EC8 and SO1)
Instituto Itaú Cultural
Amount (in R$)
Description
12,162,938.91
Exhibits are focused on Brazilian artistic production and its relations with international art. All
of them offer educational services to elementary, middle and high schools, contributing to the
education of the public.
607,705.83
Itaú Cultural’s programming is characterized by the diversity of contemporary artistic expression
and by the constant search for innovation in terms of content and formats. The programming
investigates boundaries instead of putting on only well-known productions, and it is
characterized as a place for artistic experimentation.
Courses/seminars
2,459,369.15
Education on contemporary art and the enhancement of the cultural and artistic knowledge of
the public are the objectives of this type of action.
Rumos (Directions) program
6,787,516.02
The objective of this program is to map, encourage and publicize artistic production in Brazil, in
addition to educating and informing cultural agents (artists, producers, critics, researchers and
curators). It also carries out a comprehensive public policy project for art and culture in Brazil. In
2010 we worked in the Art and Technology, Visual Arts, Film and Video, Music, Culture and Art
Education, Research, Dance, Theater, Cultural Journalism and Literature prospectuses.
Enciclopédias IC
(IC Encyclopedia)
1,767,429.39
Brazilian art is the raw material of the institution’s virtual encyclopedia. Created in 1987 as a
computerized database, and operating today in an encyclopedia format, it offers students,
teachers, art and culture professionals, among others, biographical and chronological data,
images of artworks and historical, conceptual and critical texts about representatives of visual
arts, literature, theater and techno-art, in addition to art concepts and artistic movements.
Educação Cultural
(Cultural Education)
1,585,326.93
Among other things, it promotes activities that stimulate awareness, understanding, idea
formulation and interaction of the public with artistic works and concepts that are present in
the exhibits. It works toward public appreciation cultural production and its relation with the
education field.
Observatório (Observatory)
1,498,491.90
It promotes regular reflection on culture and subsidizes the preparation of multiple policies for
the sector through the organization of meetings, publications and projects. It openly discusses
the interactions between culture, arts, economy and society.
Exhibits (visual arts, art and
technology, music, dance,
collections and audiovisual)
Performances (dance, theater
and music)
Total
26,868,778.13
Itaú Cultural also stands out for managing Itaú Numismática
(Itaú Numismatics), a collection of more than 6,800 pieces,
including coins, medals, awards of the holding company
and the Coleção Brasiliana (Brasiliana Collection), with
approximately 2,150 items.
In 2010, Itaú Cultural carried out 456 activities, 371 of which were
national and 85, international. A total of 25,673 cultural products
were distributed, mainly books, DVDs and art catalogues. In this
One important achievement
of Instituto Itaú Cultural in
2010 was the expansion of the
Virtual Encyclopedias database,
which has the largest collection
of visual arts works in Brazil.
period, the institute signed contracts with 111 new TV partners.
The total investment via Lei Rouanet (Rouanet Law), which sets
public policies relating to national culture, was R$26,978 million
(Article 26 of the Law). Also, R$17,836 million arising from other
resources was invested. (EC8, SO1)
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
137
Awards and recognitions
The main awards and
recognitions received by
Itaú Unibanco are:
(Profile 2.10)
Performance and Efficiency
• Considered the Best Private Banking in Brazil by
Euromoney magazine.
• Considered the Best Domestic Cash Manager in Brazil by
Euromoney magazine.
• Considered the Best Private Banking in Chile by
Euromoney magazine.
• In Latin America’s Best Managed Companies Awards
granted by Euromoney magazine, Itaú Unibanco came first
in the Banking and Financial category.
• Winner of the Apimec in the Best Publicly-Held Company
category.
• Considered the Best Bank in Latin America and the Best
Bank in Brazil in the Awards for Excellence granted by
Lula, Roberto Setubal and
Mino Carta at the Most Admired
Companies in Brazil award ceremony.
Euromoney magazine.
• In the Top 1000 World Banks Awards granted by The
Banker, Itaú Unibanco came first in the ranking of the 25
Latin American Banks.
In 2010, Itaú Unibanco
was granted awards in the
Performance and Efficiency,
Brand and Image, Information
Technology and Internet,
Sustainability and Human
Resources categories.
138
Awards and recognitions
138
• Winner in the Grand Prix for the Best Investor Relations
(IR) Program of large cap companies of the IR Magazine
Awards Brazil, granted by IR Magazine, Revista RI magazine
and by the Brazilian Institute of Investor Relations (Instituto
Brasileiro de Relações com Investidores).
• In the Top 100 Latin American Banks Awards granted by
The Banker, Itaú Unibanco was recognized as the top bank
based on Capital Tier I.
• In the Most Admired Companies in Brazil Awards
organized by Carta Capital magazine, the bank came
in first in the banking category and sixth in the overall
ranking. Roberto Setubal, Chief Executive Officer of
Itaú, came in fourth in the Most Admired Corporate
Leaders category.
• Named, in a survey conducted by Institutional Investor
In 2010, Itaú Unibanco was considered
the Most Valuable Brand in Brazil by
Interbrand (1st place in the ranking with
a brand value of US$20.651 billion).
• Winner in the categories Most Sustainable Bank in Emerging
magazine, as the best bank in Latin America in terms of
Markets and Most Sustainable Bank in Latin America in the FT
investor relations.
Sustainable Awards organized by the Financial Times newspaper
and the IFC.
• Awarded by the IR Magazine Awards Brazil 2010, of IR
Magazine, in two categories: Grand Prix, as the Best IR
• Ranked for the 6th consecutive time by Latin Finance magazine and
Program of large cap companies, and Best Performance in
Management & Excellence S.A. consulting firm among the Most
IR by a CEO or CFO.
Sustainable Banks in Latin America in the Large Banks category.
• IBBA was recognized by Institutional Investor magazine as
• Included for the 5th consecutive year among the companies in
having the best research team in Brazil, proving the quality
the Guia Exame de Sustentabilidade (Sustainability Exame Guide)
of its staff and the commitment to its clients.
organized by Exame magazine.
Brand and image
• Awarded for the 3rd consecutive year the Prêmio Época de
• I taú Unibanco was considered the Most Valuable Brand in
Mudanças Climáticas (Época Climate Change Award) granted
Brazil by Interbrand (1st place in the ranking with a brand
by Época magazine. The bank was among the ten companies
value of US$20.651 billion).
named Leaders in Climate Policies.
Information Technology and Internet
Human resources
• In the Green Enterprise IT Award granted by the Uptime
• Awarded for the 2nd time in The Best 100 Companies to Work
Institute, Itaú Unibanco was recognized in the Joint IT and
For survey, conducted by the Great Place to Work (GPTW)
Facilities Innovation category.
international consulting firm in partnership with Época magazine.
Sustainability
• Ranked among the 50 Best Companies for Executives to Work For
• Selected for the 11 consecutive year for inclusion in the
th
portfolio of the DJSI in its 2010/2011 edition.
• Selected for the 6th consecutive year for inclusion the
portfolio of the ISE of BM&FBovespa.
according to the ranking organized by the GPTW consulting firm
in partnership with Época magazine.
• Ranked 7th in the Empresa dos Sonhos dos Jovens (Company of
Young People’s Dreams) award granted by Cia. de Talentos. Itaú
Unibanco was the only financial institution included.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
139
Appendices
The Annual Report of Itaú meets the requirements for the GRI application level A+.
G3 Management
Approach
Not required
Performance
Indicators
& Sector
Supplement
Performance
Indicators
Report fully on a minimum
of any ten Performance
Indicators, including at
least one from each of the
following: society, economy,
and environment.
B+
Management Approach
Disclosures for each
Indicator Category
Report fully on a minimum
of any 20 Performance
Indicators, at least one
from each of the following:
economy, environment,
human rights, labor, society,
and product responsibility.
A
A+
Same as requirement
for Level B
Management Approach
disclosed for each Indicator
Category
Respond on each G3 core
and sector supplement*
indicator with due regard to
the materiality principle by
either: (a) reporting on the
indicator or (b) explaining the
reason for its omission.
Report Externally Assured
G3 Profile
B
Report on all criteria listed for
level C+:1.2;
3.9, 3.13;
4.5 to 4.13,
4.16 to 4.17
Report Externally Assured
C+
Report Externally Assured
Content of the Report
C
Report on:
1.1;
2.1 to 2.10;
3.1 to 3.8, 3.10 to 3.12;
4.1 a 4.4, 4.14 to 4.15;
Profile
1. Strategy and Analysis
Indicator
Description
1.1
Message from the CEO
Fully
1.2
Description of key impacts, risks, and opportunities
Fully
Reason for
omission
Global
Compact
9, 11, 17
_
_
11, 14
_
_
Reason for
omission
Global
Compact
Reported
Page/Online PDF
2. Organizational Profile
Indicator
Description
Reported
Page/Online PDF
2.1
Name of the organization
Fully
19
_
_
2.2
Primary brands, products, and/or services
Fully
21
_
_
_
_
_
_
24
2.3
Operational structure of the organization
Fully
2.4
Location of organization’s headquarters
Fully
140
Global Reporting
Declaração de Garantia
Initiative (GRI) Cross Index (assurance statement)
Itaú Unibanco
140
152
We are a financial holding controlled by IUPAR, an investment company that is jointly controlled by
(i) Itaúsa, a holding company controlled by the members of the Egydio de Souza Aranha family and
(ii) E. Johnston, a holding company controlled by the former majority stockholders of Unibanco,
the Moreira Salles family. Itaúsa also directly holds 36.2% of the entity’s common shares. Our
operating segments are: (i) Commercial Banking (comprising insurance, private pension plans and
capitalization products, credit cards, asset management and many credit products and services for
individuals and small and medium sized companies); (ii) Itaú BBA (large companies and investment
banking) and (iii) Consumer Credit (financial products and services for non-account holders). =>
item 7.2 : Joint Ventures Itaú Unibanco has joint venture and partnership contracts with more than
300 retailers in Brazil, serving more than 17.2 million clients on December 31, 2009. The consumer
credit joint venture portfolio totaled R$ 7,941 million on December 31, 2009. Itaú Unibanco
achieved a strong presence in the consumer financing segment by means of strategic alliances with
leading retailers in Brazil, such as Magazine Luiza, Marisa, Pão de Açúcar (CBD), Ponto Frio (Globex
Utilidades S.A.), Lojas Americanas S.A. and Ipiranga (Ultrapar Participações S.A.). Since 2001, when
the first partnerships were established, these alliances have been supporting consumer financing
by means of many products, such as co-branded credit cards, private label cards, personal loans and
insurance. 2) Business chapter: segmentation according to the 2009 Reference Form (CVM 480)
and the Complete Financial Statements (2010).
19
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
Reason for
omission
Global
Compact
21, 24
_
_
Fully
21
_
_
Fully
24
_
_
Indicator
Description
Reported
2.5
Countries where the organization operates, and names
of countries with major operations
Fully
2.6
Nature of ownership and legal form
2.7
Markets served
Page/Online PDF
19, 22, 36
2.8
Scale of the reporting organization
Fully
The limitation provided for in the GRI guidelines – Definition of Content, Quality and Scope of
the Report will be observed within five years to include all the organizations that are subject to
the control or significant influence of Itaú Unibanco Holding S.A.
_
_
2.9
Significant changes during the reporting period
Fully
11 and Online version
_
_
2.10
Awards received in the reporting period
Fully
138
_
_
Reason for
omission
Global
Compact
3. Report Parameters
Indicator
Description
Reported
Page/Online PDF
3.1
Reporting period for information provided
Fully
6
_
_
3.2
Date of most recent previous report
Fully
6
_
_
3.3
Reporting cycle
Fully
5, 6
_
_
3.4
Contact point for questions regarding the report or
its contents
Fully
6
_
_
3.5
Process for defining report content
Fully
6
_
_
3.6
Boundary of the report
Fully
6, 24
_
_
3.7
Statement of any specific limitations on the scope or
boundary of the report
Fully
The limitation provided for in the GRI guidelines – Definition of Content, Quality and Scope of
the Report will be observed within five years to include all the organizations that are subject to
the control or significant influence of Itaú Unibanco Holding S.A.
_
_
3.8
Basis for preparing the report
Fully
6
_
_
_
_
6
3.9
Data measurement techniques and the bases of
calculations
Fully
The mediation techniques used in the estimates for compiling indicators and other
information in the report can be found in the footnotes to these indicators. The calculation
bases used in the estimates for compiling indicators and other information in the report can
be found in the footnotes to these indicators. The hypotheses and techniques used in the
estimates for compiling indicators and other information in the report can be found in the
footnotes to these indicators.
3.10
Re-statements of information provided in earlier
reports
Fully
None
_
_
3.11
Significant changes from previous reporting periods in
the scope, boundary, or measurement methods applied
in the report
Fully
6
_
_
3.12
Table identifying the location of the Standard
Disclosures in the report
Fully
6
_
_
Fully
Itaú Unibanco Holding S.A. Audit Committee was favorable to the assurance services for the
2010 Annual Sustainability Report provided by PwC, particularly considering that there is no
impediment to the service according to the rules contained in the conglomerate’s Internal
Circular that governs the contracting of services to be provided by the independent auditor.
Item 2 of the Reference Form (CVM 480) mentions the relationship of Itaú Unibanco with the
independent auditors. Further details on page 4 of link: http://ww13.itau.com.br/PortalRI/
HTML/port/download/formulario_ref_2009.pdf
_
_
3.13
Policy and current practice with regard to seeking
external assurance for the report
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
141
Indicator
Description
Reported
Page/Online PDF
Reason for
omission
Global
Compact
Reported
Page/Online PDF
Reason for
omission
Global
Compact
4. Governance, Commitments, and Engagement
Indicator
Description
4.1
Governance structure of the organization, including
committees under the highest governance body
Fully
37
_
_
4.2
Chair of the highest governance body
Fully
The President of the Board is not the CEO of the organization
_
_
4.3
Members of the highest governance body that are
independent and/or non-executive members
Fully
38
_
_
_
_
_
_
_
_
_
_
99, 112
4.4
4.5
Mechanisms for stockholders and employees to provide
recommendations
Linkage between compensation and the organization’s
performance (including social and environmental
performance)
Fully
Fully
Every employee has access to a communication channel that is made available by the Investor
Relations area through which it is possible to contact our Board of Directors. Additionally, it
is worth noting that any employee has free access to the corporate e-mail addresses of the
members of the Board. We also have an Ombudsman service, whose main function is to receive
reports on ethical deviations and properly forward them in accordance with the type of matter.
We are constantly reviewing our practices, including with respect to the implementation of the
best way to establish the communication between employees and our management.
Item 13 of the Reference Form (attachment 24 of CVM Instruction No. 480/09) addresses the
matter in detail. Basically, when determining Itaú Unibanco’s compensation policy, we take
into consideration the values that are in line with those adopted by the market, Itaú Unibanco’s
strategy and the proper management of risks as time goes by so as to not to encourage
behaviors that increase risk exposure to beyond the levels that are considered prudent.
Itaú Unibanco privileges variable compensation, which corresponds to a significant part of
total compensation paid to management staff. The governance structure for determining
compensation provides for clear and transparent processes.
The prevention of conflict of interests in the Board is provided for in the Board of Directors’ Internal
Regulations. In accordance with the Regulations, Directors must act independently, applying the
following rules:
(i) The members of the Board cannot take part in resolutions related to matters in which their
interests conflict with those of the Company. Each member is responsible for communicating to the
Board their conflict of interest as soon as the matter is included in the agenda or proposed by the
Chairman of the Board and, in any case, before the beginning of any discussion on the matter.
4.6
Processes in place to ensure conflicts of interest are
avoided
Fully
(ii) In the first meeting following their election, the Director must communicate to the Board: (a)
the main activities they develop outside the Company, (b) their participation on the boards of
other companies, and (c) their commercial relationship with companies of the Itaú conglomerate,
including whether they provide services to these companies. This information must be presented
annually and whenever there is a new event that requires an update of this type of information.
The Directors can serve on no more than four (4) boards of directors of companies that are not part
of the same economic conglomerate.
For the purposes of this limit, the exercise of this function in philanthropic entities, clubs
or associations will not be considered. This limit can be exceeded upon the approval of the
Appointment and Corporate Governance Committee.
(iii) If a member of the Board or a company under their control or management carries out a
transaction with companies of the Itaú Unibanco conglomerate, the following rules must be
observed: (a) the transaction must be carried out on an arm’s length basis, (b) if it is not a routine
transaction or a service provision, there must be reports issued by first-class entities proving that
the transaction was carried out on an arm’s length basis, (c) the transaction must be reported to the
Appointment and Corporate Governance Committee, and (d) the transaction must be carried out
through the usually proper channels in the hierarchy of the Itaú Unibanco conglomerate.
35
4.7
Qualifications of the members of the highest
governance body
Fully
142
Global Reporting
Declaração de Garantia
Initiative (GRI) Cross Index (assurance statement)
Itaú Unibanco
142
152
The Board of Directors must annually appoint the members who will compose the
Compensation Committee. The appointments of Directors Pedro Moreira Salles, Alfredo Egydio
Arruda Villela Filho, Henri Penchas, Israel Vainboim and Pedro Luiz Bodin de Moraes to compose
the Compensation Committee are hereby ratified. The decisions made by the Compensation
Committee at the meeting held on February 16, 2011, at which the compensation packages
of the executives mentioned in items “II” and “III” above are also ratified. Finally, the Directors
approved that the creation of the Compensation Committee and the new division of authorities
between the committees of the Board of Directors will be reflected in the Company’s Corporate
Governance Policy and the content of which should be subsequently ratified by this Board.
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
Reason for
omission
Global
Compact
31, 53, 94
_
_
Fully
32
_
_
Fully
The information contained in item 12 – General Meeting and Management, item c) of the
2009 Reference Form (CVM 480) partially meet the requirements of this indicator, particularly
with respect to environmental and social performance. Further details on pages 141 to 180 of
link: http://ww13.itau.com.br/PortalRI/HTML/port/download/formulario_ref_2009.pdf. The
procedures for the self-assessment by the Board of Directors in the environmental and social
aspects will be reviewed in 2011.
_
_
_
_
_
_
_
_
_
_
_
_
Indicator
Description
4.8
Statements of mission and values, codes of conduct,
and relevant internal principles
Fully
4.9
Responsibilities for the implementation of economic,
environmental, and social policies
4.10
Processes for evaluating the highest governance body’s
own performance
Reported
Page/Online PDF
43
4.11
Explanation of whether and how the precautionary
principle is addressed by the organization
Fully
4.12
Externally developed social charters, principles, or
other initiatives
Fully
Risk management is considered an essential instrument by Itaú Unibanco for optimizing the use
of capital and selecting the best business opportunities, aimed at obtaining the best risk-return
ratio for our stockholders. To learn more about Itaú Unibanco’s risk management, please see
pages 163-166 of our financial statements: http://ww13.itau.com.br/PortalRI/HTML/port/
infofinan/demon/Dcc_e_MDA/df311210/irr311210.pdf
5, 42
Febraban: Sector Sustainability Officer
Associação Viva o Centro (Long Live Downtown Association): Vice Chairman
Associação Paulista Viva (Lively Paulista Association): Vice Chairman
Associação Amigos Pça Victor Civita (Association of the Friends of the Victor Civita Park): vice
chairman of the Board.
Equator Principles: Steering Committee
UNEP-FI: Latin America Task Force
Latin American Forum on Sustainable Finances (LASFF)
Itaú participates in the activities of the forum – coordinated by Fundação Getúlio Vargas,
developed for the purpose of fostering sustainable finances in Latin America.
Center of Reference in Sustainability (FDC)
4.13
Memberships in associations and/or national/
international organizations
Fully
Itaú is a member of the Center of Reference in Sustainability of Fundação Dom Cabral (Dom
Cabral Foundation), which promotes studies and debates on sustainable development. It is
also a member of the Responsible Retail Development Center of the same institution, whose
purpose is to generate knowledge focused on retail companies and those who are part in
its supply chain.
Empresas pelo clima (Companies for the climate) Itaú is a founding member of Empresas
pelo Clima. Launched on October 8, 2009, Empresas pelo Clima is the first Brazilian platform
aimed at creating the regulatory framework in the process for economic adaptation to
climate change. By adhering to the platform, the companies take on the commitment to
publish their inventories of greenhouse gases in accordance with the methodology of the
GHG Protocol Brazilian Program, and to develop policies and plans for managing polluting
gases that ensure competitiveness, innovation and stimulation to the stand in favor of a low
carbon economy in Brazil.
– AMCHAM – Brazilian-American Chamber of Commerce.
– Câmara Portuguesa (Portuguese Chamber)
– Dutcham
– Centro Paulista Viva (Lively Paulista Center)
– CEBRI
4.14
List of stakeholder groups engaged by the organization
Fully
4.15
Basis for identification and selection of stakeholders
with whom to engage
Fully
6
6
Our process for identifying and selecting stakeholders is based on the AA1000 standard.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
143
Appendices
Indicator
Description
Reported
Page/Online PDF
Reason for
omission
Global
Compact
_
_
Proprietary
information
_
Reason for
omission
Global
Compact
–
–
–
–
6,12, 97, 106, 107
Among the most important factors in the quality of a sustainability report are stakeholder
inclusiveness and materiality, that is, the prioritization of essential topics and subjects for
conducting business from the point of view of the company itself and society. Among the
Company’s main stakeholders are the clients, employees, stockholders, suppliers, government
and media. Problems with the public rainwater runoff system under Carnaubeiras street,
located near the Itaú Unibanco Corporate Center, were detected. To renovate the entire damaged
system, Itaú Unibanco entered into a partnership with the Municipal Government of São Paulo.
4.16
Approaches to stakeholder engagement
Fully
4.17
Key topics and concerns that have been raised through
stakeholder engagement
Partially
The damage detected could result in the leakage of the collected rainwater, evolve into cracks
and cause the street to sink, harming the people who live there and impairing the circulation
of vehicles and pedestrians in the region, including homeless people. We held a meeting for
the community with the presence of the company responsible for the renovation works, the
city office of the district of Jabaquara, the Traffic Engineering Company (CET), Sabesp (the
water utility), Eletropaulo (the electricity company) and all the residents and shop owners
in the region who could be affected. At this meeting, the diagnosis of the problem, the risks
involved, the proposed solution and the problems entailed were presented. The strategy for the
performance of the works aimed at mitigating all risks was discussed and approved. At the end,
we delivered a folder with a summary of the most relevant information on the project. There is
not a pre-determined frequency.
30
Management approach
Indicator
EC
EN
Description
Reported
Page/Online PDF
Economic Performance
Fully
Market Presence
Fully
Indirect Economic Impacts
Fully
–
–
Materials
Fully
–
–
Energy
Fully
–
–
Water
Fully
–
–
Biodiversity
Fully
–
–
Emissions, Effluents and Waste
Fully
–
–
Products and Services
Fully
–
–
Compliance
Fully
–
–
Transport
Fully
–
–
General
Fully
–
–
144
Global Reporting
Declaração de Garantia
Initiative (GRI) Cross Index (assurance statement)
Itaú Unibanco
144
152
12, 16, 56, 129
16, 119, 121, 125
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
Indicator
LA
HR
SO
PR
FS
Description
Reported
Page/Online PDF
Reason for
omission
Global
Compact
Labor
Fully
–
–
Labor/Governance Relations
Fully
–
–
Occupational Health and Safety
Fully
–
–
Training and Education
Fully
–
–
Diversity and Equal Opportunities
Fully
–
–
Procurement Process
Fully
–
–
Non-discrimination
Fully
–
–
Freedom of Association
Fully
–
–
Child Labor
Fully
–
–
Forced/Slave Labor
Fully
–
–
Security Practices
Fully
–
–
Indigenous Rights
Fully
–
–
Community
Fully
–
–
Corruption
Fully
–
–
Public Policy
Fully
–
–
Anti-Competitive Behavior
Fully
–
–
Compliance
Fully
–
–
Client Health and Safety
Fully
–
–
Product and Service Labeling
Fully
–
–
Communication and Marketing
Fully
–
–
Client Privacy
Fully
–
–
Compliance
Fully
–
–
Social and Environmental Policy
Fully
–
–
Audit
Fully
–
–
Products and Services
Fully
–
–
93, 94, 95, 97
98, 115
16, 53, 103, 115, 116, 129, 130
28, 56, 100, 103, 110, 113
16, 30, 51, 59, 60, 63, 70, 93, 118
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
145
Economic Performance Indicators
Indicator
Description
Reported
Page/Online PDF
Reason for
omission
Global
Compact
–
–
–
7
Economic Performance
23
EC1
Core
Direct economic value generated and
distributed.
Fully
EC2
Core
Financial implications and other risks and
opportunities due to climate change.
Fully
EC3
Core
Coverage of the defined benefit plan
obligations.
Fully
Online version
–
–
EC4
Core
Significant financial assistance received
from government.
Fully
The bank received R$61,722,894.77 in 2010. The amount reported refers to the Programa de Alimentação do
Trabalhador (Workers’ Meal Program), donations to the Children’s and Adolescents’ Fund, article 1845 of the
Rouanet Law, sponsorships granted to sports projects and extension of maternity leave.
–
The standard entry level salary is the same as the local minimum salary of R$510.00. The lowest
salary, of R$510.00, is paid to the Sales Assistant position in Porto Velho, State of Rondônia.
Not available
1
Page 70 of the Financial Statements: http://ww13.itau.com.br/PortalRI/HTML/port/infofinan/
demon/Dcc_e_MDA/df311210/DCC311210.pdf; and investment in communities reported on
page 128-137.
73, 87
The bank was not able to quantify the financial implications related to the topic.
Market Presence
EC5
Additional
Range of ratios of standard entry level
salary compared to local minimum salary.
EC6
Core
Policies, practices, and proportion of
spending on locally-based suppliers.
EC7
Core
Local hiring of employees.
Partially
Fully
113
-
-
Partially
95
Not available
6
Indirect Economic Impacts
EC8
Core
Impact of infrastructure investments
provided for public benefit.
Fully
129, 131, 134, 137 and online version
–
–
EC9
Additional
Description of significant indirect economic
impacts.
Fully
Online version
–
–
Reason for
omission
Global
Compact
Environmental Performance Indicators
Indicator
Description
Reported
Page/Online PDF
Materials
EN1
Core
Materials used by weight or volume.
Fully
120
–
8
EN2
Core
Percentage of materials used that are
recycled input materials.
Fully
120 and online version
–
8 and 9
EN3
Core
Direct energy consumption by primary
energy source.
Fully
121
–
8
EN4
Core
Indirect energy consumption by primary
source.
Fully
122
–
8 and 9
EN5
Additional
Energy saved due to conservation and
efficiency
improvements.
Fully
122
–
8
EN6
Additional
Initiatives to provide low energy
consumption based products and services.
Fully
64, 122
–
–
Energy
146
Global Reporting
Declaração de Garantia
Initiative (GRI) Cross Index (assurance statement)
Itaú Unibanco
146
152
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
Reported
Page/Online PDF
Reason for
omission
Global
Compact
–
–
Indicator
Description
EN7
Additional
Initiatives to reduce indirect energy
consumption and reductions achieved.
Fully
121
EN8
Core
Total water withdrawal by source.
Fully
120, 121
EN9
Additional
Water sources significantly affected by
withdrawal of water.
Fully
120
8
EN10
Additional
Percentage and total volume of water
recycled and reused.
Fully
120, 121
8
Water
8 and 9
Biodiversity
EN11
Core
Location and size of land owned.
Fully
127
8
EN12
Core
Significant impacts of activities, products,
and services on biodiversity.
Fully
Currently, the impacts of Itaú Unibanco’s activities
on biodiversity are not monitored since most of its operations are located in urban areas.
8
EN13
Additional
Habitats protected or restored.
Fully
Currently, there no habitats protected or restored by
Itaú Unibanco since most of its operations are located in
urban areas.
–
EN14
Additional
Strategies for managing impacts on
biodiversity.
Fully
Most of our activities are conducted in urban areas; for this reason, the bank does not have a strategy to mitigate
impacts on biodiversity.
–
EN15
Additional
Number of International Union for
Conservation of Nature (IUCN) Red
List species and other conservation
list species.
Fully
There is no system to monitor the IUCN Red List species since most of the bank’s activities – performed
within administrative buildings and bank branches – are carried out in urban areas.
–
Emissions, Effluents and Waste
EN16
Core
Total direct and indirect greenhouse gas
emissions.
Fully
123
–
8
EN17
Core
Other relevant indirect greenhouse gas
emissions.
Fully
123
–
8
EN18
Additional
Initiatives to reduce greenhouse gas
emissions and reductions achieved.
Not available
7, 8 and 9
EN19
Core
Emissions of ozone-depleting substances.
Fully
124
–
8
EN20
Core
NOx, SOx and other significant air
emissions.
Fully
124
–
8
EN21
Core
Total water discharge by quality and
destination.
Fully
121
–
8
EN22
Core
Total weight of waste by type and disposal
method.
Fully
119, 120
–
8
EN23
Core
Total number and volume of significant
spills.
Fully
The bank’s activities did not cause any significant spills in the reported period.
EN24
Additional
Weight of transported waste deemed
hazardous.
Fully
119
EN25
Additional
Protected status and biodiversity value of
water bodies and related habitats.
Fully
Itaú Unibanco does not significantly affect water bodies and/or habitats as a result of discharge of water or runoff.
The holding bank only generateshousehold effluents.
Partially
121 ,122, 123
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
8
–
–
–
147
Appendices
Indicator
Description
Reported
Page/Online PDF
Reason for
omission
Global
Compact
Partially
125, 126
Not available
7, 8 and 9
86, 199
–
8 and 9
Products and Services
EN26
Core
Initiatives to mitigate environmental
impacts.
EN27
Core
Percentage of products and packaging
materials that are reclaimed by category
of product.
Fully
Monetary value of fines and total number
of non-monetary sanctions for noncompliance with environmental laws.
Fully
The bank did not receive significant fines or non-monetary sanctions for non-compliance with environmental laws
and regulations in the reporting period.
8
Environmental impacts of transporting
products and members of the workforce.
Fully
125
–
8
Total environmental protection
expenditures and investments.
Fully
126
–
7, 8 and 9
Compliance
EN28
Core
125
Transport
EN29
Additional
General
EN30
Additional
Labor Practices and Decent Work Performance Indicators
Indicator
Description
Reported
Page/Online PDF
Reason for
omission
Global
Compact
Labor
LA1
Core
Total workforce by employment type,
employment contract, and region.
Partially
94, 95
Not available
–
LA2
Core
Total number and rate of employee
turnover by age group, gender, and region.
Partially
Online version
Not available
6
LA3
Additional
Comparison of benefits provided to fulltime employees and temporary employees.
Fully
Online version
–
–
Labor/Governance Relations
LA4
Core
Percentage of employees covered by
collective bargaining agreements.
Fully
All Itaú Unibanco employees based in Brazil are covered by collective bargaining agreements.
LA5
Core
Description of notice period(s) (terms and
procedures).
Fully
Online version
–
–
1, 2 and 3
Occupational Health and Safety
LA6
Additional
Percentage of total workforce represented
in formal health and safety committees.
Fully
Online version
–
1, 2 and 3
LA7
Core
Rates of injury, occupational illnesses and
lost days of employees and outsourced
workers.
Fully
Online version
–
1
LA8
Core
Education, prevention, and risk control
programs.
Fully
Online version
–
1
LA9
Additional
Health and safety topics covered in formal
agreements with trade unions.
Fully
Online version
–
1
Not available
6
Training and Education
LA10
Core
Average hours of training per year.
Partially
148
Global Reporting
Declaração de Garantia
Initiative (GRI) Cross Index (assurance statement)
Itaú Unibanco
148
152
97 and online version
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
Reported
Page/Online PDF
Reason for
omission
Global
Compact
Indicator
Description
LA11
Additional
Programs for skills management, lifelong
learning and retirement.
Fully
Online version
LA12
Additional
Percentage of employees receiving regular
performance reviews.
Fully
95
–
–
–
Diversity and Equal Opportunities
LA13
Core
Composition of senior management
and boards and proportion by group
and gender.
Fully
98 and online version
–
1 and 3
LA14
Core
Ratio of basic salary of women to men by
employee category.
Fully
Online version
–
1, 2 and 3
Reason for
omission
Global Compact
Human Rights
Indicator
Description
Reported
Page/Online PDF
Procurement Process
HR1
Core
Description and percentage of
policies and guidelines to address
all aspects of human rights in
investments.
HR2
Core
Contracted companies that have
undergone human rights screening.
HR3
Additional
Policies for evaluating and
treating performance in
human rights.
Fully
Partially
There were no significant investment contracts with relevant majority ownership interest to which the
organization is a party.
113, 114
–
Not available
1, 2, 3, 4
Fully
There were no training programs on human rights in the reporting period.
–
Fully
Online version
–
1, 2, 3
Freedom of association policy and level of
its application.
Fully
Online version
–
1, 2, 3
Measures taken to contribute to the
abolition of child labor.
Fully
114
–
1, 2, 3
Measures taken to contribute to the
elimination of
forced labor.
Fully
114
–
1, 2, 3
Security personnel trained in the policies
concerning aspects of human rights.
Fully
115
–
–
Total number of incidents of violations
involving rights of indigenous people and
actions taken.
Fully
There were no incidents involving indigenous rights in the reporting period.
Non-discrimination
HR4
Core
Total number of incidents of discrimination
and corrective actions taken.
Freedom of Association
HR5
Core
Child Labor
HR6
Core
Forced/Slave Labor
HR7
Core
Security practices
HR8
Additional
Indigenous Rights
HR9
Additional
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
–
149
Appendices
Indicator
Description
Reported
Page/Online PDF
Reason for
omission
Global
Compact
Programs and practices to evaluate and
manage the impacts of operations on
communities.
Partially
131, 134, 137 and online version
Not available
10
Society
Community
SO1
Core
Corrupção
10
SO2
Core
Business units analyzed for risks related to
corruption.
Partially
95
Not available
10
SO3
Core
Percentage of employees trained in anticorruption policies and procedures.
Fully
95
–
10
SO4
Core
Actions taken in response to incidents of
corruption.
Partially
95
Not available
10
Partially
129 and online version
Not available
10
Public Policies
SO5
Core
Public policy positions.
SO6
Additional
Policies for financial contributions to
political parties, politicians or institutions.
Fully
116
SO7
Additional
Number of legal actions for anticompetitive
behavior.
Fully
In 2010, no legal actions were pending or terminated.
Description of significant fines and total
number of non-monetary sanctions.
Fully
There were no significant fines in the administrative, judicial and arbitration spheres nor non-monetary sanctions.
Compliance
SO8
Core
Product Responsibility
Indicator
Description
Reported
Page/Online PDF
Reason for
omission
Partially
109
Not available
Client Health and Safety
PR1
Core
Policy for preserving consumer health and
safety during the use of the product.
PR2
Additional
Non-compliance concerning impacts of
products and services.
Fully
There were no significant fines in the administrative, judicial and arbitration spheres nor non-monetary sanctions.
Product and Service Labeling
PR3
Core
Type of product and service information
required by labeling procedures.
Partially
PR4
Additional
Non-compliance concerning product and
service labeling.
Fully
100, 101
–
PR5
Additional
Practices related to client satisfaction,
including results of surveys.
Fully
100, 103, 105, 106, 107
–
–
56
Not available
Communication and Marketing
PR6
Core
Programs for adherence to laws, standards,
and voluntary codes.
Fully
110
PR7
Additional
Incidents of non-compliance with
regulations concerning the communication
of products and services.
Fully
There were no incidents of non-compliance concerning regulations and voluntary codes.
PR8
Additional
Substantiated complaints regarding
breaches of client privacy.
Fully
There are no records of civil inquiries or proceedings under appeal with Procon regarding the breach of privacy or
loss of data.
Fines for non-compliance concerning the
provision of products and services.
Fully
110
Compliance
PR9
Core
150
Global Reporting
Declaração de Garantia
Initiative (GRI) Cross Index (assurance statement)
Itaú Unibanco
150
152
–
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
Global
Compact
FINANCIAL SECTOR INDICATORS
Indicator
Description
Reported
Page/Online PDF
Reason for omission
FS1
Core
Policies with specific environmental and social components
applied to business lines.
Fully
63, 69, 70, 79, 83, 87
–
FS2
Core
Procedures for assessing and screening environmental and social
risks in business lines.
Fully
63, 70, 79, 83, 85
–
FS3
Core
Processes for monitoring clients’ implementation of and
compliance with environmental and social requirements
included in agreements or transactions.
Fully
63, 70, 79, 83, 87
–
FS4
Core
Process(es) for improving staff competency to implement the
environmental and social policies and procedures as applied to
business lines.
Fully
50, 61, 70, 73, 79, 81, 87, 97
–
FS5
Core
Interactions with clients/investees/business partners regarding
environmental and social risks and opportunities.
Fully
51, 73, 112
–
FS6
Core
Percentage of the portfolio for business lines by specific region,
size (e.g. micro/small/medium/large) and sector.
Partially
FS7
Core
Monetary value of products and services designed to deliver
a specific social benefit for each business line broken down by
purpose.
Fully
62, 68
FS8
Core
Monetary value of products and services designed to deliver
a specific environmental benefit for each business line broken
down by purpose.
Fully
126
FS9
Core
Coverage and frequency of audits to assess implementation
of environmental and social policies and risk assessment
procedures.
Fully
51
FS10
Core
Percentage and number of companies held in the institution’s
portfolio with which the reporting organization has interacted
on environmental or social issues.
FS11
Core
FS12
50
Not available
–
Partially
51, 73, 112
Percentage of assets subject to positive and negative
environmental or social screening.
Fully
46, 49, 80
Core
Voting polic(ies) applied to environmental or social issues for
shares over which the reporting organization holds the right to
vote on shares or advises on voting.
Fully
73
–
FS13
Core
Access points in low-populated or economically disadvantaged
areas by type.
Fully
59, 60, 68, 109
–
FS14
Core
Initiatives to improve access to financial services for
disadvantaged people.
Fully
110
–
FS15
Core
Policies for the fair design and sale of financial products and
services.
Fully
56
–
FS16
Core
Initiatives to enhance financial literacy by type of beneficiary.
Fully
59, 61, 66, 69, 74, 88, 97, 107
–
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
Global
Compact
Not available
151
Appendices
Methodology
Assurance Statement
Itaú Unibanco
The approach of the AA1000AS process consisted of:
• An evaluation of the content of the 2010 Annual Sustainability Report;
• An understanding of the process of generating information
In the period of 2010/2011, BSD Consulting, giving continuity to its
for the Annual Sustainability Report, taking into consideration
mandate for the independent assurance of the sustainability reporting
the engagement process and the definition of content;
and stakeholder engagement process, reviewed the preparation of the
2010 Annual Sustainability Report with respect to the current Política de
• A review of selected information from print media, websites
Sustentabilidade (Sustainability Policy) and Essência de Sustentabilidade
and other specialized sources;
(Sustainability Essence). The purpose of the assurance process is to
provide Itaú Unibanco’s stakeholders with an independent opinion
• Interviews with managers and employees from key areas
on: the quality of the report; the stakeholder engagement process; the
to check the relevance and context of the information for
adherence to the principles of AA1000AS (2008); and the continuity of
reporting and management, and on the adherence of the
the sustainability management processes.
bank to its own sustainability commitments;
Independence
• An analysis of internal documents and minutes that prove
We operate independently and we assure that no BSD employee
the authenticity of the information presented in the report
has any professional consulting relationship or other commercial ties
and provide evidence of the decision making process for
with Itaú Unibanco. BSD Consulting is licensed by AccountAbility as
relevant topics;
an assurance provider (AA1000 Assurance Licensed Provider), under
• An analysis of the relevance of the information in the Annual
Registry No. 000-33.
Sustainability Report in view of the corporate guidelines contained
Our Responsibility
in the Política de Sustentabilidade and Essência de Sustentabilidade.
BSD Consulting is a company specialized in sustainability. The work
has been conducted by a team of experienced professionals who are
Main Conclusions
trained in external audit processes.
In the view of BSD Consulting, Itaú Unibanco was able to
respond to the challenges of sustainability, meeting the
Responsibilities of Itaú Unibanco and BSD
expectations of its main stakeholders and showing positive
The content of the Annual Sustainability Report, the engagement
results in many key areas, such as client service. However,
processes and the definition of materiality are the responsibility of Itaú
the inclusion of more relevant matters in the management
Unibanco. The assessment of the report’s content and the checking of
process still needs a more solid basis than the Essência de
the GRI application levels were not in the scope of BSD Consulting’s work.
Sustentabilidade. This document is not yet satisfactorily
complying with the principles of inclusion and materiality. We
Scope and Limitations
present below the summarized conclusions with respect to
The scope of our work included the information presented in the
the three principles of AA1000AS.
printed version of the Itaú Unibanco 2010 Annual Sustainability
evaluation process was conducted in compliance with the AA1000
Main Conclusions on the Adherence to the
AA1000AS Principles
Assurance Standard 2008 following Assurance Type 1, which provides
1. Inclusion – addresses the participation of
a moderate level of assurance. The process covered the evaluation
stakeholders in the development of a transparent and
of the adherence of the process to three main principles: Inclusion,
strategic sustainability management process and the
Materiality and Responsiveness.
scope of this management
Report for the period covered by the report. The independent
152
Global Reporting
Initiative (GRI) Cross Index
140
Declaração de Garantia
(assurance statement)
Itaú Unibanco
152
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
We presented the analysis of these Principles in accordance with
• Relationships with clients: The mobilization to ensure greater
the segments of the bank’s Sustainability Policy.
client satisfaction within the Todos pelo Cliente campaign brought
positive results and reduced the number of accepted complaints.
• Governance and Management: In 2010, Itaú Unibanco
The non-account holders of the bank were granted special access
consolidated its sustainability committees and commission,
to the service channels and have their own shops, created to serve
providing support to the activities of the sustainability area at
the clients from the credit card segment.
the senior management level. However, the bank still faces the
challenge of taking the topics discussed at specialized forums to
• Relationship with society: The bank’s social investments continue
the day-to-day activities of managers and employees, establishing
to be applied on relevant areas for Brazilian society, such as the
real targets at the operating levels of departments and branches.
strengthening of public education. In its report, Itaú Unibanco makes
a considerable effort to show the mechanisms of donations to
• Ethics and transparency: The understanding of the ethics
political campaigns conducted pursuant to clear rules and criteria.
and transparency principles by employees reached a high
level that may be considered a benchmark in the industry. The
• Environment: The year 2010 was characterized by a reform of
progress in this segment includes new efforts with respect to
the bank buildings of the agency network. This reform has not
the availability of information on a transparent basis to clients.
yet incorporated the progress that the bank showed preparing
The bank responded as transparently as possible to the issue
the Tatuapé Administrative Center for the ISO14000 certification
regarding donations to political candidates.
(expected to be audited in the first half of 2011), and the successful
LEED certification for the office at the Eldorado Business Tower.
• Products and services: Itaú Unibanco continued to make efforts
towards increasing the application of social and environmental
• Relationship with stockholders: The relationship with
criteria in its main services and products. However, it still needs
stockholders is marked by a high level of communication and
to apply social and environmental criteria to new products (with
transparency. The inclusion of stockholders in the Sustainability
no restriction) and adjust sales processes to avoid antagonistic
Policy would have a positive effect on the mobilization of new
situations in which the need to increase sales conflicts with the
investors who seek to align their objectives with sustainable
search for sustainable development by the organization.
financial institutions.
• Internal public: The bank has effective mechanisms of
2. Materiality – addresses relevant issues that influence
engagement with the internal public that allow dialogue
for stakeholder decisions about the economic, social and
and the integration of employees with the organization’s
environmental performance of the organization
objectives. We verified that the implementation of the SA8000
• In 2010, Itaú Unibanco decided on the maintenance of its
certification, mentioned by the Política de Sustentabilidade and
sustainability agenda via the Essência de Sustentabilidade
started in 2009 within the scope of the Administrative Center,
document, which is composed of the following topics:
did not continue in 2010.
Transparency and governance; Client satisfaction; Social and
environmental criteria; Diversity; Climate change; Financial
• Relationship with suppliers: The bank includes a risk analysis
education; Microfinance; Stakeholder engagement.
system in the management of its suppliers. Although it applies
social and environmental criteria in the contractual process, it
• The topics were addressed within the processes arising
has not yet integrated the sustainability topic in its production
from the Política de Sustentabilidade or further discussed in
chain in an expressive way. The process is not yet well
internal seminars and workshops with the broad participation
disseminated to the other areas of the bank. The improvement
of internal stakeholders. Whereas the Transparency and
in communication and dissemination of sustainability in
governance, Client satisfaction, Social and environmental
the production chain are challenges for the upcoming
criteria and Financial education topics were integrated into
management and reporting cycles.
operations in a more clear manner, the Diversity, Climate
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
153
Appendices
change, Microfinance, and Stakeholder engagement topics
Medium (B) risk. The analysis proved to be effective, resulting
show more conceptual than practical progress.
in the improvement of projects (15 in total) and decisions to
deny financing (43) in cases for projects that are highly critical
• The high number of targets listed by the bank in its report and
with respect to social and environmental aspects.
the difficulty faced in the practical application of the Essência de
Sustentabilidade show that the bank should review its process
• In 2010, Itaú Unibanco implemented the GRI indicators with
for determining materiality, giving stronger emphasis to the
more propriety, aiming to regularly monitor the performance and
selection of topics that are truly strategic for the bank at the
creating the basis for a more tangible measurement of compliance
current time and applying a qualified stakeholder engagement
with its sustainability objectives.
based on the AA1000-methodology.
• Despite the effort of Itaú Unibanco to be inclusive in the
3. Responsiveness – addresses the actions taken by
implementation of the indicators, the variation of the limits
the organization to respond to specific demands from
throughout the report (sometimes referring to foreign
stakeholders
operations and, sometimes, to domestic operations), does not
• The bank positively addressed the topic of improving
allow for a comparison of the published indicators.
the relationship with its clients, recognizing the need to
address failures via the identification of the root cause and
In the evaluation of BSD Consulting, in 2010, Itaú Unibanco
concentrating efforts on all levels of the bank to improve the
was able to multiply actions related to those Essência de
satisfaction of this key stakeholder.
Sustentabilidade topics that are more connected with
its business, such as Client Satisfaction and Social and
• Itaú Unibanco started a financial education process with the
Environmental Criteria. To ensure the full implementation of
internal public that creates value for all employees and their
its policy, the bank needs to better integrate matters at the
families and will provide a more solid basis for the financial
operating level and in the areas that are not directly related to
education efforts intended for external stakeholders, which is
the Essência de Sustentabilidade topics, as well as to implement a
currently implemented for some client segments.
more qualified and systematic stakeholder engagement model.
• In response to a market demand, the bank develops new
products and reformulates existing products with sustainability
criteria. However, the innovation must be associated with
strong work together with the sales department to increase
the sales of such products aligned with sustainability, covering
all business areas, such as insurance and vehicle financing.
• The implementation of the social and environmental risk
São Paulo, April 14, 2010
analysis grew in an organic manner and reached 100% of the
projects and clients with financing amounts higher than R$ 5
Beat Grüninger
million, which are analyzed and classified to be of High (A) and
Partner – BSD Consulting, Brazil
154
Global Reporting
Initiative (GRI) Cross Index
140
Declaração de Garantia
(assurance statement)
Itaú Unibanco
Independent
Auditors’ Limited
Assurance Report
152
155
GRI Application Level Check
157
Independent Auditors’ Limited Assurance Report on the Annual
Sustainability Report for 2010 of Itaú Unibanco Holding S.A.
To the Board of Directors
Itaú Unibanco Holding S.A.
Introduction
We have been engaged to perform a limited assurance
In a limited assurance engagement, the evidence-gathering
engagement on the Annual Sustainability Report for 2010 of
procedures are more limited than those performed in a
Itaú Unibanco Holding S.A., prepared under the responsibility
reasonable assurance engagement; therefore, less assurance
of the Holding’s management. This responsibility includes
is obtained than in a reasonable assurance engagement.
designing, implementing and maintaining internal control
The procedures selected depend on the practitioner’s
over the proper preparation and presentation of the Annual
judgment, including the assessment of the risks of material
Sustainability Report. Our responsibility is to provide a limited
noncompliance by the Sustainability Report with the
assurance report on the information disclosed in the Annual
criteria described below (Scope and limitations). Within
Sustainability Report of Itaú Unibanco Holding S.A. for the year
the scope of our work we performed procedures which
ended December 31, 2010.
included but were not limited to: (i) planning the work,
taking into consideration the materiality and the volume of
Criteria adopted in preparing
the sustainability report
information presented in the Annual Sustainability Report
The Annual Sustainability Report for 2010 was prepared in
controls; (iii) examining, on a test basis, evidence supporting
accordance with the guidelines for sustainability reports of the
quantitative and qualitative data in the Sustainability
Global Reporting Initiative (GRI-G3) for Application Level A+.
Report; (iv) interviewing the managers responsible for the
Following these guidelines, Itaú Unibanco Holding S.A. has
information; and (v) comparing information of a financial
reported 79 essential and additional performance indicators
nature with the accounting records. These procedures were
and 16 performance indicators of the financial sector.
deemed sufficient to allow a limited level of assurance and,
for 2010; (ii) obtaining an understanding of the internal
consequently, do not include all those required for issuing a
Procedures Applied
broader assurance report, as set forth in said standard.
Our limited assurance engagement was performed in
accordance with the Brazilian Accounting Standard NBC TO
Our limited assurance engagement also included verifying
3000 for assurance engagements other than audit and review,
the application of the requirements established in GRI-G3 for
issued by the Federal Accounting Council (CFC). This standard
Application Level A+ reports.
requires that we comply with ethical requirements and plan
and perform the assurance engagement to obtain limited
assurance that no matter has come to our attention that
causes us to believe that the Annual Sustainability Report for
2010 is not in accordance with the criteria described below
(Scope and Limitations), in all material respects.
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
155
Appendices
Scope and Limitations
Additional comments
The objective of our work was to verify and evaluate
Information on the major challenges faced by the Holding,
whether the data included in the Annual Sustainability
which are characterized as the “Sustainability Essence”, was
Report for 2010, with respect to the obtaining of
improved in the Annual Sustainability Report for 2010, by
qualitative information and measurement and calculation
improving the structuring of the eight suggested topics, which
of quantitative information, complies with the criteria
show the Holding’s focus on the major challenges and impacts
and guidelines for sustainability reports from the
on sustainable development.
Global Reporting Initiative (GRI-G3). Opinions, historical
information, descriptive information and information
With respect to the definition of the Contents of the
resulting from subjective evaluations are not included in the
Sustainability Report in accordance with the principles
scope of the work performed.
established in GRI-G3, the Annual Sustainability Report for 2010 is
more clear and transparent as regards the challenges undertaken
Conclusion
in 2010 and their related results, and also provides the Holding’s
Based on our limited assurance engagement, we are not
position with respect to challenges assumed for 2011.
aware of any significant modification that should be made to
the information included in the Annual Sustainability Report
São Paulo, April 14, 2011
for 2010 of Itaú Unibanco Holding S.A. for the year ended
December 31, 2010, for this information to be fairly presented,
in all material respects, in accordance with the criteria adopted
for Application Level A+ reports.
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5
Manuel Luiz da Silva Araújo
CRC 1RJ039600/O-7 “S” SP
156
Declaração de Garantia
(assurance statement)
Global Reporting
Itaú Unibanco
Initiative (GRI) Cross Index
140
152
Independent
Auditors’ Limited
Assurance Report
GRI Application Level Check
155
157
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
157
Appendices
Publication and general coordination:
Public Relations and Recognition Department
Itaú Unibanco Superintendency of Corporate Communication
Coordination of indicators:
Itaú Unibanco Superintendency of Sustainability
Coordination of editorial project:
Report Comunicação
Graphic and editorial design:
Report Design
Proofing:
Assertiva Produções Editoriais
Photography:
Cia de Foto – 3, 7, 9, 13, 18, 21, 30, 34, 37, 38, 40, 45, 51, 53, 54, 75, 79, 82, 85, 92, 99, 101, 103, 108, 111, 115, 118, 127, 155
Disclosure – 4, 9, 12, 25, 26, 89, 128, 133, 135, 136, 138
Gulherme Colugnatti – 67
Marcelo Soubhia – 39, 127
Printing: Stilgraf Artes Gráficas e Editora Ltda.
Print run: 500
Online version:
TheMediaGroup
Itaú Unibanco Holding S.A.
Praça Alfredo Egydio de Souza Aranha, 100
Torre Olavo Setubal – CEP 04344-902 – São Paulo – SP
158
Editorial Team
158
Aiming at minimizing the
environmental impact of
this publication, it was
printed using vegetable
oil based paint.
Falta
selo
FSC
inglês
Itaú Unibanco Holding S.A. 2010 Annual Sustainability Report
159
Praça Alfredo Egydio de Souza Aranha, 100
Torre Olavo Setubal
CEP 04344-902 – São Paulo – SP
www.itau.com.br
Download

Annual Sustainability Report