R$608 bil 39.8 milli 102,000 88,000 4,900 12 cou

Transcription

Annual Sustainability Report 2009
Praça Alfredo Egydio de Souza Aranha, 100
Torre Olavo Setubal
CEP 04344-902 – São Paulo – SP
www.itau.com.br
This Report presents a panorama of the main accomplishments of
Itaú Unibanco Holding S.A. in 2009, the first year after the merger between
Itaú and Unibanco. The year was notable for its expectations and major
challenges, many of which have now been overcome thanks to the
performance and hard work of all the Bank’s teams, who share our Vision of
being a leader in sustainable performance and customer satisfaction.
Annual Sustainability Report
2009
R$608 billion
39.8 million
102,000
88,000
4,900
12 countries
in assets
clients
employees
suppliers
branches and banking services outlets in over 1,100 cities and towns
Present in
in the Americas, Europe and Asia
Torre Olavo Setubal
www.itau.com.br
2009
R$608 billion
39.8 million
102,000
88,000
4,900
12 countries
in assets
clients
employees
suppliers
Present in
Credits
Publication and Overall Coordination
Itaú Unibanco Corporate Visibility
Reading Guide
Coordination of Indicators
Itaú Unibanco Superintendency of Sustainability
Editorial and Graphic Design: Report Comunicação
Translation: Montreal Consultants
Revision: Assertiva Produções Editoriais
Photos: Pisco Del Gaiso – Contents, 2, 4, 6, 7, 9, 14, 17, 21, 23, 24, 25,
27, 29, 30, 32, 34, 35, 37, 39, 40, 42, 43, 44, 47, 49, 50, 51, 52, 53,
55, 56, 58, 59, 60, 61, 62, 64, 65, 66, 67, 69, 73, 74, 75, 76, 77, 78,
79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 90, 91, 92, 93, 95, 97, 98,
104, 105, 107, 117, 118 and 119
2009 Annual Sustainability Report
Ricardo Corrêa – Teclado (Learn More)
Unibanco Holding S.A. regularly reports to
stakeholders to demonstrate the impact of
Edu Simões – 31
the general public on its financial, social
our activities on people’s lives. The Audiobook
and environmental performance and future
is an aural program whose content is similar
Alexandre Battibugli – 33, 48, 57 and 102
projections. To give our stakeholders clear and
to that of the magazine, and was made
easy access to the information they want, we
specifically for the visually impaired. These
have divided this Report into publications
three communication platforms are present in
tailored for specific groups (see diagram on
the Online Report, which brings together all
opposite page).
the information in the 2009 Itaú Unibanco S.A.
Annual Sustainability Report.
Itaú Unibanco Archives – Cover, 11, 12, 16, 19, 68, 70, 94, 96,
100, 109, 110, 111, 112, 113, 114 and 116
Disclosure – 13 and 115
Online Report
Printing: Stilgraf Artes Gráficas e Editora Ltda.
www.itauunibanco.com.br/
relatoriodesustentabilidade
Print Run: 5,000 copies in Portuguese and 500 in English
Distribution: sent to shareholders, investors, employees, clients,
suppliers, charities, consumer protection groups, the media,
government agencies and universities.
The traditional printed Report is designed
for a select group consisting of shareholders,
The icons below accompany the text and
investors, analysts, governments and customers,
are used to draw our readers’ attention to
and provides the most material information
the relationship between the information
about our operations. The magazine version is
presented and Itaú’s priority Essence of
widely distributed and includes testimonials
Sustainability themes.
Itaú Unibanco Holding S.A.
Torre Olavo Setubal
from customers, employees and other
If you have any questions, comments or suggestions, please e-mail us
at: [email protected]
revista
Our special thanks to everyone who authorized the use of their image,
and to all staff members who helped create this Report.
Dialogues
Essence of Sustainability
The paper used in this Report was manufactured from wood from
certified forests and other controlled sources which meet FSC criteria.
Interaction initiatives for our
strategic relationship groups
People
The role of our employees
as we become a global player
Reaching a Milestone
Overcoming the merger and
global financial crisis with
our achievements in 2009
The eight challenges that comprise Itaú Unibanco’s Essence of Sustainability, which are
referred to throughout this Report (for more information see page 24).
Transparency and Governance
Climate Change
Customer Satisfaction
Financial Education
FSC Certification
Transformation through Art
Instituto Itaú Cultural and Instituto
Unibanco broaden public access
to culture and education
Relatório Anual de Sustentabilidade 2009 em Revista
Socio-environmental Criteria
Microfinance
Diversity
Stakeholder's Engagement
Printed Version
Audiobook
Magazine
1
The paper used in this Report was manufactured
from wood from certified forests and other controlled
sources which meet FSC criteria.
Credits
Reading Guide
27, 29, 30, 32, 34, 35, 37, 39, 40, 42, 43, 44, 47, 49, 50, 51, 52, 53,
55, 56, 58, 59, 60, 61, 62, 64, 65, 66, 67, 69, 73, 74, 75, 76, 77, 78,
79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 90, 91, 92, 93, 95, 97, 98,
104, 105, 107, 117, 118 and 119
Edu Simões – 31
opposite page).
100, 109, 110, 111, 112, 113, 114 and 116
Online Report
Torre Olavo Setubal
revista
Dialogues
People
Climate Change
Financial Education
FSC Certification
Microfinance
Diversity
Printed Version
Audiobook
Magazine
1
Contents
Message from the Chairman of the Board 2
Message from the President 4
2009 Highlights 6
Profile 8
Panorama 18
Sustainability Vision 20
Corporate Governance 26
Business 46
Relationships 72
Social and Cultural Investments 108
Awards and Recognition 118
Glossary 120
Appendices 122
1
Message from the Chairman of the Board
“A crisis is a terrible thing to waste.”
Paul Romer – Senior Fellow at the Stanford Institute for
Economic Policy Research
Ironically, the idea of decoupling is back in
economy should grow close to 6%, with inflation
vogue—but this time with a twist. There
remaining under control. Job creation is now
A year ago I wrote my first letter as Chairman
are now fewer uncertainties regarding the
at record levels. In fact, one of the biggest
of Itaú Unibanco in the midst of one of the
prospect of economic growth in developing
challenges that companies will face in coming
worst economic crises the modern world has
countries, particularly the so-called BRICs, than
years is hiring and training enough qualified
ever seen—one that brought down some of
in the developed world. There is an increasing
employees, which from a country’s perspective is
the biggest names in international finance.
consensus that the paths are diverging, at
a good problem to have. The markets’ indifference
Thanks to widespread panic and a grim business
least for the coming years: low growth rates in
to the upcoming presidential elections reflects a
environment, stock markets around the world
Europe, the United States and particularly Japan,
high degree of maturity and consensus within
hit rock bottom during the first quarter of 2009.
as opposed to higher and more sustainable
Brazilian society over those policies which have
Many felt the world was heading towards
growth rates in countries such as China, India
ensured economic stability. There are several
depression.
and Brazil.
risks with this rosy scenario, however, particularly
As I sit down to write this letter in January 2010
Brazil, in particular, came through the crisis
the general mood is entirely different. Stock
relatively unscathed. After a sudden stop in
markets have substantially recovered, Brazil’s
the fourth quarter of 2008, the effects of which
Bovespa Index has edged closer to its historic
were still being felt during the first quarter of
high, and key risk indicators are back to their pre-
2009, the economy rebounded vigorously. By
The bank had two major challenges in 2009:
crisis levels. Uncertainty remains, but the feeling
the fourth quarter of 2009 Brazil was growing
executing a highly complex merger and
of panic is behind us.
at an annual rate of 8%, with rapidly expanding
managing a credit portfolio in an apparently
What a difference a year makes.
on the fiscal side, which could bring serious
challenges to the next administration.
And what about Itaú Unibanco?
industrial activity. The job market also
rapidly shrinking market. One of the risks of
The global economy, however, still faces great
rebounded swiftly: the average unemployment
a merger of this size and complexity is that
challenges. An overhang of private sector debt
rate was 8.1% in 2009, very close to the 7.9%
people become internally focused, which can
and the accelerated growth of public debt,
rate of 2008, while the total wage bill boasted
negatively affect market share and profitability.
combined with still-growing unemployment and
real growth of 3.9% for the year.
Our approach was to avoid dragging out the
the inevitable reduction in fiscal and monetary
decision-making process by quickly selecting
stimulus packages, makes the possibility of a
Taking all of this into consideration, I look
new teams, business models, IT systems and
sustained economic recovery open to scepticism.
forward to 2010 with confidence. Brazil’s
product portfolios.
+
2
Decoupling – The ability of an economy to grow without corresponding increases in environmental pressure.
By December 2008 the new Executive
Defining the proper culture is, in my opinion, a
new group within Brazil’s rapidly expanding
Committee had been chosen. In February 2009,
cornerstone of the successful integration of the
insurance market.
when the Central Bank approved the merger,
two organizations that formed Itaú Unibanco,
the second level of management was put into
as it offers our over 100,000 employees a clear
Based on data from the International Monetary
place. In March the three treasury operations
vision of the future and provides a powerful
Fund, and adjusting for local currency
(Itaú, Itaú BBA and Unibanco) were consolidated
management tool to attract and develop
purchasing power, we estimate that Brazil
into a single unit. By mid-year all senior
the new talent and leadership needed in
will be one of the five largest economies in
management had gone through a thorough
the years to come. We will be building on
the world before the end of this decade. I am
evaluation by the Executive Committee, allowing
solid ground. Last year, two of Brazil’s leading
confident that Itaú Unibanco, whose creation
for a clear understanding of the talents and
workplace analysts—the Great Place to Work
is a testament to the stability of Brazil’s financial
skill sets available to the new organization.
Institute and the University of São Paulo—
system and the strength of its economy, will be
By year-end Itaú Unibanco was almost fully
named Itaú Unibanco as one of the country’s
one of the leading agents behind this growth.
integrated, save the branch network, which will
best companies to work for. Neither Itaú nor
be merged during 2010. Despite a strong focus
Unibanco had ever appeared at the same
on restructuring, Itaú Unibanco kept its market
time in both lists, which shows how highly our
share among private sector banks across virtually
employees value the opportunities the merger
all our business lines.
will bring to their professional development.
Managing the credit portfolio was not an easy
All these accomplishments were
task in 2009. During the first quarter we stated
enthusiastically received by the markets: Itaú
that some deterioration in the portfolio was to
Unibanco shares rose 129% in local currency
Chairman of the Board of Directors
be expected until the third quarter of the year
terms in 2009, while our market value at year-
when, according to our models, a reversal of the
end reached R$182 billion (US$104 billion),
trend would occur. In retrospect, this is exactly
placing us ninth among banks worldwide—
what happened. Excess reserves provided
and sixth among western banks.
Sincerely,
Pedro Moreira Salles
ahead of the merger were instrumental in
strengthening the Bank’s balance sheet which,
Before concluding this letter, I wish to mention
together with prudent lending throughout 2009,
a key strategic decision we took in 2009: the
allowed Itaú Unibanco to successfully confront
sale of our automobile and home insurance
the many challenges of these adverse economic
operations to Porto Seguro S.A., in return for
conditions. The Bank ended the year with
a 30% equity stake in the resulting entity. This
recurring return on equity of 22.3%.
leading insurance company now offers the
marketplace a strong line-up of well-known
In the fourth quarter of 2009 the Board’s Human
brands, the largest distribution network in
Resources committee conducted a thorough
the country, unparalleled customer service
analysis of the type of organizational culture
and a wide array of products and services. We
best suited to the bank’s ambitious goals.
are excited by the growth prospects for this
3
Message from the President
“Intensely. That’s how
we lived and worked in 2009.”
And that’s how we started 2010. After all, the
them with high quality financial services. We
With the creation of Itaú Unibanco Holding S.A.,
process of integrating an organization of our
have made car loans easier and, faced with
we envision new new business opportunities
size has required flexibility, commitment and
the challenges imposed by these economic
in the domestic market, in which gains of scale
adaptability from all of us. Just over a year after
times, have made refinancing much faster,
have become crucial in the face of determined
the beginning of joint operations, virtually all
which helps customers better adapt to their
competitors. At the same time, we have
areas of the Bank have been unified, which
financial means. In mortgage lending our
expanded our operations in the Southern Cone as
reveals our teams’ level of mobilization.
strong portfolio has continued to grow. We
a springboard to strengthen our performance in
have increased the range of services for
Latin America.
This is underlined by the fact that even in the
credit card customers, which has improved
middle of this intense process of transformation
their perception that electronic money is an
Given the desire to become a key player in the
we kept our market share in our key business
ally in their financial planning. In insurance
global financial market, in August we established
portfolios, and were chosen by our staff as
our priority has been simplicity, enabling
an International Advisory Board, whose objective
one of Brazil’s best places to work. We have
customers to clearly identify the value of
is to help expand our presence within the
consolidated our leadership in motor vehicle
having protection. All these initiatives share
international financial community. This new
financing and in the cards market, grown
the philosophy of placing customers first,
Board will allow us to better monitor the risks and
significantly in mortgage lending and redoubled
regardless of internal or external circumstances.
opportunities offered by the global economy.
our efforts with small and medium-sized
companies, all of which are priority segments for
In 2010 our challenge will be to complete the
In this environment of change and hard work,
us. We also restructured our insurance area and
integration of Unibanco’s 1,000 branches to
it’s critical to be connected to the desires of
joined forces with Porto Seguro, Brazil’s leading
the Itaú platform while maintaining service
the markets we serve. Listening to customers,
vehicle insurer, which should add greatly to the
quality. Our teams have been working on this
investors, consumer protection agencies and
products and services we offer.
since 2009, and have shown they can make
the general public are one of our primary
this integration a success, thanks to shared
commitments, as our strategic relationship
We have been alert to the effects of the global
cultures and values which will allow us to
groups are in the best position to point out where
economic situation on our markets, but have
develop business opportunities that will easily
we need to improve. We also recognize that not
not allowed ourselves to become paralyzed.
exceed the sum of our strengths. Now, with all
everyone may be happy with our integration
In fact, we have looked for innovative and
our areas restructured and driven by a single
process, but we are committed to minimizing
creative solutions to remain by our customers’
culture, we will begin to reap the rewards of the
these impacts and restoring their level of
side and maintain our commitment to provide
potential synergies generated by the merger.
satisfaction and trust.
4
In 2009 we undertook extensive relationship
Faced with the prospects of growth for the
efforts to show investors the scale of the bank
Brazilian economy, in 2010 we are focused on
we are building. Also in the relationships
achieving performance consistent with our
area, we are focusing on financial education
size, and consequently contributing to the
and in 2010 will increase the scope of the
development of our society. The recovery of
Conscientious Use of Money program. We
economic activity will have a positive impact on
want to give the general public information
the financial sector, where expansion of credit is
to help them be better prepared and able to
expected. The year will also mark the beginning
use financial services and products.
of a memorable period for Brazil, which is
looking ahead to two landmark events: the 2014
Although we dedicated considerable time
Soccer World Cup and the 2016 Olympic Games.
and effort to integrating our operations, we
We will be active participants in helping build
did win a number of awards at home and
this future, and are sure that all of us - individuals,
abroad, including Bank of the Year in Latin
professionals, fans and citizens - will have many
America from the British magazine The Banker,
accomplishments to celebrate. We look forward
and Sustainable Bank of the Year in Emerging
to even more years as intense as this past one.
Markets from the British newspaper Financial
Times. This recognition was not just for our
dedication, but for all our continuing work
to add value for investors, shareholders,
Sincerely,
customers and society.
In 2009 Itaú Unibanco was selected for
Roberto Setubal
the Dow Jones Sustainability World Index,
marking our tenth year on the world’s most
President and CEO, Itaú Unibanco Holding S.A.
important sustainability index. This is further
evidence that we have taken the right path,
and employed consistent practices which are
attuned to the challenges of our times.
5
Highlights 2009
A decade on the Dow Jones Sustainability World Index
For the tenth consecutive year we were part of the list of 317 companies from 27 countries that
comprise the Dow Jones Sustainability World Index. Maintaining our participation in this select
group during the first year of integrating our operations required a maximum effort from our
staff teams, who showed their commitment to ethical, transparent management and the need
to combine financial return with creating socio-environmental value. Itaú is Latin America’s only
financial institution to have been part of the Index since its inception in 1999. Among the seven
Brazilian companies selected for the 2009/2010 edition, two are directly or indirectly linked to our
operations: Itaúsa and Redecard.
Integration Progress
In the first year after the merger, the results of the integration of operations between Itaú and Unibanco
exceeded expectations. To strengthen our performance and ensure excellence in customer service,
we sought out the best aspects of both banks in all business areas. Other measures included adopting
the Board’s new governance structure, which now works through five committees, and the rapid
unification of the Corporate, Investment Banking, Brokerage, Asset Management, Vehicles, Private
Banking and Treasury areas, all of which were fully integrated by the first quarter.
Leadership in Cards
Revenues from credit cards reached R$5.8 billion in 2009, an increase of 7% over 2008 and accounting
for more than a third of our income from services. We are the leaders in Brazil’s credit card segment,
offering Itaucard, Unicard and Hipercard products to nearly 23 million account and non-account
holders. In 2009 we conducted about R$85 billion in credit card operations.
Association with Porto Seguro
In August Itaú joined forces with Porto Seguro, Brazil’s largest automobile insurer, creating one of the
most important partnerships in the domestic insurance industry: Porto Seguro Itaú Unibanco (Psiupar),
6
10 years
on the Dow Jones Sustainability World Index.
which will carry out home and car insurance for both institutions. The company immediately became
a leader in these segments, with 3.4 million vehicles and 1.2 million homes insured. The controllers of
Porto Seguro own 57% of Psiupar, while the Bank has 43%. Our employees who worked in the vehicle
and home insurance areas have now joined the new company, which is based in São Paulo.
Partnerships
Our partnership with retail chain Magazine Luiza has been expanded and extended until 2029.
Under the terms of the agreement we paid R$250 million to increase our exclusive relationship with
Luizacred S.A. The partnership includes the distribution of credit products by Luizacred, a financial
services company jointly controlled by Magazine Luiza and the Bank, in all of Magazine Luiza’s physical
and virtual outlets, as well as through call centres, the internet, mailing and other points of sale or
forms of contact between the retailer and its customers. Magazine Luiza is one of Brazil’s largest
retailers, with 455 stores. In 2010 we will step up efforts to secure other partnerships similar to those
we have established with the Lojas Americanas, Marisa, Magazine Luiza, CBD and Ponto Frio retail
chains, and Vivo, a mobile telephone carrier.
Unique Carbon Credit Fund
In September we launched the Itaú Carbon Index Fund, the first carbon credit index-linked fund in the
Brazilian capital market, raising over R$170 million by November. Returns are based on the Barclays
Capital Global Carbon Excess Return Index Euro (BGCI), a global index that tracks the performance of
carbon credits traded through the European Union’s Emissions Trade Scheme (ETS) and the UN’s Clean
Development Mechanism (CDM).
Rio Wind raises over R$2 billion
The Wind River (Rio Wind) equity fund, launched in Japan by our Asset Management division in partnership with Daiwa Asset Management, reached a milestone in November. In little more than 30 days, the
fund, which is composed of shares of Brazilian companies, raised R$2 billion from Japanese investors.
7
Profile
• Creating Value
• Leadership in Sustainability
• A New Bank, a New Culture
• Key Indicators
The creation of Itaú
Unibanco Holding S.A.,
announced on November 3, 2008, resulted in one of the
world’s largest financial services institutions.
The merger between Itaú and Unibanco was approved by the Central
Bank of Brazil on February 18, 2009. We have continued our commitment
to sustainable development by providing services, processes, products
and transparent relationships to our strategic relationship groups,
bringing together and reinforcing the sustainability vision and strategies
shared by Itaú and Unibanco.
We are leaders in numerous domestic business areas, and boast a highly skilled work force. Our
operating strategy in the increasingly competitive financial sector is to continue building a modern
corporate culture in keeping with a bank that seeks superior financial returns. To accomplish this
we will continue to follow, as always, the good corporate governance practices developed over
time by both institutions.
We operate in more than 1,100 Brazilian cities and towns throughout the entire country. Overseas
we have branches and offices in 12 countries in the Americas, Europe and Asia, and we plan to
increase our presence in these markets in coming years, after consolidating our operations in Brazil
and Latin America.
Based in São Paulo, the Bank had approximately 102,000 employees and a network of about 4,900
branches and banking services outlets at the end of 2009, plus over 30,000 ATMs installed in Brazil’s
five regions.
Itaú Unibanco trades its common and preferred shares on the São Paulo (BM & FBovespa) Stock
Exchange, and share deposit certificates and receipts (CEDEARs and ADRs) on the Buenos Aires
(BCBA) and New York (NYSE) stock exchanges, respectively.
8
In this chapter
The key indicators and features of Itaú Unibanco Holding S.A.
• Assets and financial results in 2009
• Building the future
• Overview of social and cultural activities
Pre-launch campaign of
the new corporate culture
to Itaú Unibanco staff.
9
Profile
• Creating Value
• Key Indicators
Creating Value
Leadership in Sustainability
During the first year of the merger, which was marked by the
For the tenth consecutive year Itaú
challenges of the process of consolidating our operations, our
Unibanco was chosen to be one of 317
performance was recognized by winning a number of national and
companies from 27 countries on the
international awards, thanks to the market position we achieved and
2009/2010 edition of the New York Stock
the consistency and transparency of our practices. These
Exchange’s Dow Jones Sustainability World
awards include:
Index (DJSI World). We are the only financial
institution in Latin America to be part of
Best Brazilian Bank (three awards) - Latin Finance, Euromoney and
Global Finance magazines;
• Most Admired Company in Brazil’s Banking Sector - Carta Capital
magazine;
• One of Brazil’s Best Companies to Work For (two awards), The Great
Place to Work Institute and Época magazine; and Exame and Você
SA magazines, Fundação Instituto de Administração (FIA) and the
University of São Paulo (USP);
• Most Sustainable Bank of the Year in Emerging Markets - Financial
Times newspaper and the International Finance Corporation (IFC);
• Bank of the Year in Brazil and Latin America - The Banker magazine; and
• Named one of 20 model companies in the 2009 Exame
Sustainability Guide.
this Index since its inception in 1999. The
DJSI World tracks indices that evaluate the
performance of public companies that are
leaders in sustainability, by geographical
distribution and sector of activity. These
companies are part of the leading 10% of
world leaders in sustainability, covering 70
sectors in 22 countries.
Among the seven Brazilian companies
selected for the 2009/2010 edition of the
Index, two are directly or indirectly linked
to our operations: Itaúsa (the Group’s
controlling shareholder) and Redecard,
of which we own 50%. Itaúsa, a leader in
financial services, is on the Index for the
sixth time and was selected for the third
consecutive year.
Itaú, Itaúsa and Redecard are also among the
more than 30 companies from 12 sectors
that make up the São Paulo Stock Exchange
(BM & FBovespa) Corporate Sustainability
Index (ISE). Launched in 2005, the ISE covers
only listed companies that are recognized for
adopting financial, socio-environmental and
corporate governance best practices.
10
R$608.3 billion
in total consolidated assets.
The Itaú Unibanco Vision
Be the leading bank in sustainable performance and customer satisfaction
The Organization innovated in setting out its vision. We chose a simple sentence –
albeit an objective and challenging one - that could be easily memorized. Any reader
will quickly ascertain where we want to go and what we want to be: giving customers
and our performance the same level of priority.
Code of Ethics - Principles
• Identity
• Good Faith
• Interdependence
• Excellence
A New Bank, a New Culture
Building the Future
Successful organizations have one thing in
The Itaú Unibanco Vision and Our Way were
common: a strong corporate culture. Based on
announced at the Leaders Meeting held in
this reasoning we dedicated our best efforts
São Paulo on February 22-25. During the
We combined an enormous legacy with the same solid
foundations, corporate positioning and values and principles
developed over the years by Itaú and Unibanco, which were
created by two men who believed in their ideas: Alfredo
Egydio de Souza Aranha and João Moreira Salles.
throughout 2009 to learning the aspirations of
event the Chairman of the Board of Directors,
our employees and consequently drawing up
Pedro Moreira Salles and the Chairman of
the Bank’s new culture and vision.
the Executive Committee, Roberto Setubal,
spoke to an audience of 14,000 Bank leaders
Throughout this process over 16,000
and pointed out their fundamental role in
employees from our administrative areas and
practicing these values and attitudes.
the branch network took part in quantitative
and qualitative surveys. The issue also
During the same event both men announced
extended to the People Committee, which
the launch of the new Itaú Unibanco Code of
operates under the Board of Directors, while
Ethics, which was also built on the previous
the design of the new corporate culture was
principles and codes of both institutions.
discussed in several Executive Committee
sessions. After countless hours of work, Our
This laid the foundations for us to build
Way was the result.
a cohesive, clearly directed team, with a
commitment to the same values and attitudes.
The process of building our Vision was
Team Itaú Unibanco - a bank with a deep
concomitant to that of the new culture. Both
interest in people and what they are capable
take into account the values perpetuated by
of doing to make this a better world.
Itaú and Unibanco throughout their histories
and what we want for our future. Our Way
has in its DNA a little of the Itaú Way and the
Unibanco Way, combined with our commitment
to continually improve for our customers,
employees, shareholders and the country.
The stories of the two banks crisscross each other on the
timeline. September 27, 1924 saw the beginning of banking
services offered by Casa Moreira Salles, which would later
become Banco Moreira Salles. This institution soon figured
in a long series of mergers and acquisitions, finally adopting
the name Unibanco in 1975.
The cornerstone of Itaú was laid by Alfredo Egydio de Souza
Aranha on January 2, 1945, when the first branch of Banco
Central de Crédito opened its doors. The Itaú brand emerged
in 1973, although the name had already been used by the
group for companies such as Itaú America.
With converging paths, the merger between the institutions
became public on November 3, 2008, concluding more than
a year of private discussion on how best to combine the
operations. On January 2, 2009 Itaú celebrated 64 years since
its founding, while Unibanco marked its 85th anniversary
on September 27. So in honour of the memory and legacy
built by their founders, the anniversary date of Unibanco, the
older of the two banks, was chosen.
Historically, two names have been crucial to the success
achieved by Itaú and Unibanco: Olavo Setubal and Walther
Moreira Salles. The lives of these two businessmen, and the
growth of the two banks they led, become intertwined with
Brazil’s economic, political and social history.
Similarities between the two banks are present in the values
of their leaders and staff teams. The founders’ successors
have remained faithful by building on another common
feature: the ability to meet customer needs with excellence
and in increasingly differentiated ways.
11
Profile
• Creating Value
• Key Indicators
Memory Preserved
Social and Cultural Actions
The Memory Space facility, located within the Itaú Unibanco Business Center at our
In the social and cultural areas we
corporate headquarters, houses the story of two institutions that have joined forces
operate through three independent but
to become one of the world’s ten largest financial services groups, according to US
complementary organizations that underline
firm Bloomberg.
our contribution to sustainable development:
Fundação Itaú Social, Instituto Unibanco
The idea of preserving our memory was born in 2003, with the safekeeping, handling
and Instituto Itaú Cultural. With different
and providing of information to support our internal areas and business activities, and to
strategy and governance structures, in 2009
promote our culture and values. The Memory Space features an exhibit area, a technical
they helped present the 50th anniversary
reserve for keeping document collections, research and technical treatment rooms and a
of the music of Roberto Carlos, the Salvador
mini-auditorium for viewing films, plus a refreshment area.
Carnaval, the Joinville Dance Festival and the
Curitiba Theatre Festival, among other events,
To celebrate our 85 years of existence, in September 2009 the Memory Space opened its
in addition to sponsoring all categories of the
Joining Histories, Building the Future exhibit, which runs until May 2010 and takes visitors
Brazilian national soccer team as well as other
on a journey through time by recreating the parallels between our histories and the
sports-related projects designed to train and
transforming ideas of our founders. The journey includes the technology revolution and
develop Brazilian athletes. Total investments
growth of customer services, from the old manual processes to the latest in automated
exceeded R$9 million.
banking, right up to the time of the merger and our most recent initiatives.
When visiting the facilities, visitors can access corporate information, photos of our
headquarters and historical images displayed on interactive digital screens, all in an
environment designed to stimulate knowledge and gain insights into history.
12
The Portuguese Language Olympics program - Writing
the Future, developed by Fundação Itaú Social, received
the 2009 Corporate Citizen of the Americas Award from
the Organization of American States’ (OAS) Foundation
for the Americas.
Joinville Dance Festival.
Financial Results
Itaú Unibanco’s net income was R$10.1
In Brazil the consumer client credit portfolio
billion in 2009, with a 21% return on average
reached R$103.1 billion, up 10.7% from 2008.
shareholder’s equity. Consolidated net equity
Large company loans reached R$88.9 billion,
reached R$50.7 billion at December 31. The
while the credit portfolio for micro, small and
Solvency (Basel) Ratio (the minimum capital
medium-sized companies finished the year at
required to guarantee loans) remained at 16.7%,
R$60.1 billion.
based on the Bank’s consolidated results.
Proprietary, raised and managed assets totalled
The Bank’s preferred shares rose 61.5% in
R$855.1 billion, rising 5.9% during the period,
value from December 31, 2008, while the
while technical provisions for insurance,
market value reached R$175.1 billion at
pensions and annuities were R$52.4 billion.
year-end, a figure that places us among the
world’s nine largest banks, according to the
US firm Bloomberg.
In 2009 the Bank collected or provided a total of
R$14.1 billion in taxes and social contributions.
It also collected and transferred R$8.1 billion in
taxes from customers, derived from financial
services. Consolidated assets reached R$608.3
billion at the end of December, the largest such
amount among privately-controlled financial
groups in the Southern Hemisphere.
13
Profile
• Creating Value
• Key Indicators
Itaú Unibanco Business Centre,
São Paulo, Brazil.
Key Indicators
(in R$ billions)
608.3
Total Assets Credit Operations 278.4
Customer Deposits 190.8
1
2
Net Equity 50.7 RNI 3
10.5
1
Including endorsements and sureties
2
Demand, Savings, Interbank and Term Deposits
3
Recurring Net Income
TOTAL ASSETS
(in R$ billions)
2005
244.2
313.4
2006
444.5
2007
638.1
2009
2008
608.3
2009
NET INCOME
(in R$ billions)
7.2
2005
2006
2007
14
15,8
8.4
11.9
2008
10.0
2009
10.1
Financial results show the Bank has
remained competitive during the
integration process.
Revista Exame, junho de 2009
20%
Reinvested Profits
35%
2008
19%
34%
11%
2008
13%
Shareholders
Total distributed: R$35 billion
2008
2%
2008
31%
32%
CREDIT OPERATIONS*
(in R$ billions)
148.4
202.9
2007
2005
17.0
2006
15,8 17.2
17.9
2007
271.9
2008
278.4
2009
*
3%
SOLVENCY (BASEL) RATIO (%)
114.9
2006
Refers to the direct economic value generated and
distributed by the Organization, including revenues,
operating costs, employees compensation, donations and
other community investments, retained earnings and
payments to capital providers and government.
*
Third Parties
Payroll
2005
Distribution of Value
Added (DVA)* - 2009
Taxes
2008
16.1
2008
16.7
2009
Including endorsements and sureties
ROE (%)*
CUSTOMER DEPOSITS
(in R$ billions)
190.8
Total Deposits
Cash Deposits
25.8
2008
2009
Interbank Deposits
29.4
15,8
26.2
2007
114.7
Term Deposits
2.0
2006
48.2
Savings Accounts
30.9
2005
24.8
22.3
*
Average Recurring Return on Equity – Annualized
NET EQUITY
(in R$ billions)
2005
2006
2007
2008
2009
EFFiCIENCY RATIO (%)
24.9
15,8
49.6
2005
33.5
2006
40.8
2007
43.7
2008
50.7
2009
15,847.4
46.5
45.3
42.4
15
Profile
• Creating Value
• Key Indicators
Branch in Santiago, Chile.
Presence in the Global Market
Unibanco London Branch
Europe (London)
Unibanco Representative
Office (New York)
Unibanco Securities (New York)
Securities (New York)
(New York)
BBA (New York)
Itaú Bank Ltd. (Cayman)
BBA (Nassau)
Europe (Luxembourg)
Unibanco (Luxembourg)
Securities (Tokyo)
Europe (Portugal)
(Tokyo)
BBA (Shanghai)
Securities (Dubai)
Unibanco Grand Cayman Branch
Unicorp Bank & Trust Ltd. (Cayman)
Securities (Hong Kong)
Unibanco (Brazil)
(Brazil)
BBA (Brazil)
Interbanco S.A. (Paraguay)
(Chile)
(Uruguay)
BBA (Uruguay)
(Argentina)
BBA (Argentina)
16
(in US$ millions)
at December 31, 2009
Overseas branches
Banco Itaú Argentina S.A.
Itaú Europe (consolidated)
Cayman (consolidated)
Chile (consolidated)
Uruguay (consolidated)
Paraguay
Other companies overseas
Overseas (consolidated)
Assets
29,746
1,217
16,052
7,026
6,617
1,761
1,105
824
56,084
Net Equity
5,065
99
889
2,372
747
161
142
750
10,178
Domestic Presence
Northeast Region
North Region
242
68
Midwest Region
282
Branches
Southeast Region
2,499
South Region
633
Channels
Branches
Banking Services Outlets
ATMs
2008
2009
3,906
999
30,909
3,724
918
32,704
(at December 31, 2009)
17
Panorama
Solid bases
for growth
Amidst the global financial crisis of 2009 we focused on integrating
the operations of the banks that were merged at the end of 2008.
This process included selecting the teams and establishing our operating
model, market approach and product portfolio. By year-end we had
accomplished the integration, with the exception of the branch network
conversion process, which will be completed in 2010.
At the same time we maintained our strategy
segments. We expect to be able to offer better
of establishing solid partnerships with well-
quality services at more affordable prices as
established companies that are recognized
a result of our investments in technology,
for their expertise in specific niches, in order
training and development of new risk
to expand the scope of our products and
management methodologies.
services, such as our new agreement with
Porto Seguro. Our market share among
This year Brazil’s economy should return to
privately-controlled banks remained stable in
its pre-crisis growth levels. The outlook is
most business areas.
for Brazil to grow around 6% for the year.
This optimism is linked to credit, which has
18
Customer satisfaction and sustainable
begun the year at a fast pace, spurred by
performance are priorities for us, and
competition between banks and the gradual
represent the basis of all our investments in
reduction of the default rate, thanks to
human capital, technology and processes. In
improvements in the Brazilian economy which
2010 our strategic goals are to grow the Bank’s
began in the second half of 2009. Credit is
operations in Brazil, prepare the Organization
expected to grow 15% to 20%, driven by
and our employees to perform in a bank that
retail operations and small and medium-sized
also competes in the international market,
companies, in addition to growth of 20% to
support the growth of lending operations
25% in mortgage lending for the property
and increase gains of scale in all customer
development segment.
In 2010 our priorities are to grow the Bank’s operations in Brazil,
prepare the Organization and its employees to perform in a
bank that also competes in the international market, support the
growth of lending operations and increase gains of scale in all
customer segments.
Branch in Japan.
Internationalization
The long-term forecast is for interest rates to
The severe financial crisis that erupted in 2008
In the midst of the worldwide process of
continue to drop in Brazil, despite an expected
dramatically affected most of the developed
consolidating the banking system, which will
slight rise during the year to counter domestic
world’s major financial institutions. As this
continue for the next few years as a direct result
supply and demand which has been stimulated
process is still far from being fully resolved,
of the crisis and the subsequent establishment
by rising middle class incomes and the
it represents many opportunities for Itaú
of new regulations for the financial services
consequent higher propensity to consume.
Unibanco, which ended 2009 as one of the
industry, there are countless opportunities in
The Real, in turn, should remain strong, in line
world’s largest banks by market capitalization,
Latin America and abroad for healthy banks
with other emerging currencies which are
with a solid capital base and high standards of
like Itaú Unibanco. Our ambition is to move
strengthening against the US dollar.
corporate governance.
gradually, using our differentiated fundamentals
to position ourselves as a global bank. This
These conditions should allow Brazilian banks
At the height of the crisis, Latin American
process will occur, but only after we have
to return to growth in lending, unlike what
banks lost less market value than the major
consolidated our operations in the domestic
will occur in the United States and Europe,
international institutions, making our position
and regional markets.
for example, whose economies will not start
in the global market even more favourable.
demonstrating any significant recovery before
Latin American banks also performed better
In addition to opportunities for mergers and
early 2011. It is estimated that the global
in profitability, leading the ranking of banks
acquisitions, there is a wide range of financial
economy should start growing again in 2010,
in the Americas. Furthermore, they were
services and products to be offered by Brazilian
and maintain a growth rate just below 4% over
less exposed to the assets that triggered the
banks to the international market. These
the next decade, due to stronger growth in
international crisis, such as sub-prime mortgage
include meeting the business needs of Brazilian
emerging countries, whose participation in the
securitizations and off balance sheet assets.
companies that have become multinational,
global GDP should increase markedly.
Banking supervision in the region is also
as well as meeting the demands of foreign
more comprehensive, closing loopholes for
investors, who are increasingly likely to bet
derivatives and securitization, and requiring
on Brazil’s growth as the country consolidates
more robust capital reserves.
its position as a global player through its
companies and financial institutions.
19
Sustainability
Vision
Commitment to
lasting development
The year 2009 marked the consolidation of
our sustainability positioning.
Shortly after the announcement of the merger between Itaú and
Unibanco, we released two documents: the Essence of Sustainability,
which outlines the eight priority themes for the Bank’s actions to ensure
its long-term sustainability; and the Sustainability Policy, whose
guidelines permeate our strategy, management and relationship
with all stakeholders.
The Executive Committee also approved our new Sustainability Governance, which institutionalized
company-wide sustainability discussions and decisions among the heads of our many areas.
We set out challenges that transcend our own operations, as they are predicated on a model of the
awareness of society and the responsible use of financial products and services. Through these three
defined structures, which have been widely disseminated to our employees, we are reaffirming our
commitment to sustainable development, with a focus on dialogue and transparency.
For Itaú Unibanco, sustainability means maintaining our business over the short, medium and
long-term, to deliver continual value to our stakeholders.
This understanding gains even more strength with the release of our new vision, which reinforces
the importance of sustainable performance.
20
In this chapter
The Bank’s Sustainability Governance Structure.
• Sustainability Policy
• Practical actions of the Sustainability Agenda
• Sustainability Agenda priorities for 2010
Reflecting pool at the Itaú Unibanco
Business Centre in São Paulo.
21
Sustainability Vision
• Commitment to
Sustainable Development
Sustainability Governance
Sustainability Monitoring Committee
Monitoring
Board of Directors – Yearly meetings
Executive Sustainability Committee
Guidelines and Policies
Executive Committee – Half-yearly meetings
Sustainability Committee
Senior Managers and Directors – Meetings every two months
Sustainability Commission
Superintendents and Managers – Monthly meetings
Sustainability Policy
The Bank’s Sustainability Policy was released
The goal of Sustainability Governance is to
ensure we meet our list of commitments, which
• management structure;
of the guidelines that permeate our strategy
and management, and promote innovations,
Operational
Sustainability Governance
• governance for sustainability;
in early 2009. The initiative is designed to
inform all our strategic relationship groups
Strategic
allows us to undertake initiatives, promote
the improvement of practices and align the
• guideline implementation process;
reviews and adjustments of our operations,
decision making process. The Sustainability
Governance structure is composed of about
based on the concepts of sustainability.
• commitments undertaken by the Bank;
This document provides operating guidelines
• communication; and
split into four levels
• monitoring.
1. Sustainability Monitoring Committee
70 executives, from members of the Board of
Directors to managers and coordinators, and is
with respect to managing our businesses,
products and services, staff members and
relationships with suppliers, customers, society
Comprised of members of the Board of
The audit revealed that the Sustainability Policy
Directors, this committee is responsible for
guidelines are being applied in a consistent
monitoring the following: adoption of the
To ensure our practices are consistent with the
and satisfactory manner, albeit at various
Sustainability Policy and its related practices;
Sustainability Policy, in 2009 an internal audit
stages of implementation across our business
checking its compliance with our values and
was undertaken to examine the alignment
areas. The audit also pointed to improvement
principles; monitoring the progress of our
of our management structure, processes and
opportunities for the policy, ranging from
ongoing strategy of integrating sustainability
sustainability standards to the commitments
establishing the frequency of updates to
into our culture and business management;
required under the policy, taking into account
defining of corporate processes, procedures
plus observing standards, trends and national
the following:
and controls which are structured to identify
and international benchmarks. The Committee,
and monitor management practices.
which meets once a year, can also propose,
and the environment.
• process of approval, disclosure, updating
and scope of the policy;
whenever it deems necessary, new approaches
to the issues that constitute the sustainability
agenda and which can help the Bank with the
strategic handling of these issues.
22
Itaú Unibanco is one of 20 model companies in
Exame magazine’s 2009 Sustainability Guide.
Main decisions
of Sustainability
Governance in 2009:
Approval of the Sustainability and Sustainability
Governance policies.
Approval of the institutional use of the FSC paper. The
first steps were the certification of one of our in-house
printers and accreditation of external printers already
certified by the FSC. In 2010 this type of paper will be
widely adopted by the Organization.
2. Executive Sustainability Committee
4. Sustainability Commission
Every six months members of the Executive
The Sustainability Commission is made up
Committee that make up the Executive
of superintendents and managers, and is
Sustainability Committee meet to define the
responsible for: promoting the progress of
guidelines and strategic orientation of the
our sustainability agenda; analyzing risks
Sustainability Policy, review its integration into
and opportunities in relation to the market;
our business practices and culture, and assess
proposing projects, solutions and new
the annual planning proposed by the
approaches (based on market practices and
Sustainability Committee. These meetings bring
trends); implementing action plans defined
the additional benefit of allowing our teams to
in the sustainability strategy; spreading
clearly see senior management’s commitment
the culture of sustainability throughout
to the effective application of the policy.
our operating areas, primarily in customer
relations; and reporing to the Sustainability
Presentation and approval of the Sustainability Project
for middle market companies. This initiative is designed
to make the segment a sustainability standard through
training, folders and actions that maximize business
opportunities and minimize risks. The pilot project began
in Campinas (SP) at the end of 2009.
Using the Essence of Sustainability, two major themes
were chosen as a target for specific actions: financial
education and climate change. The former is related to
Conscientious Use of Money initiatives, and is seen as a
high priority. In 2010, in addition to continuing measures
targeted at the general public, actions are planned for
employees that work in this area.
To discuss climate change, a working group was set up to
develop a proposal for the Bank’s positioning on this issue.
3. Sustainability Committee
Committee on the progress of action
The chief function of this committee, which is
plans for integrating sustainability into the
composed of directors, is to define our action
Organization’s management and business.
strategies in keeping with the policies and
The Commission previously met every two
guidelines established by the Executive
months, but in 2010 it will meet monthly.
The Socio-environmental Property Loans Credit Policy
(Financing Plan) and the socio-environmental risk
assessment macro flow were presented and approved.
action plans, indicators and targets; supporting
The Bank also relies on multidisciplinary
areas on issues related to integrating
work groups which are set up in response
The financial status and architecture of the socioenvironmental fund portfolios were presented.
sustainability into their activities, products
to identified needs and which help further
and services; contributing to stakeholder
specific issues and/or develop projects in
engagement for each theme; reinforcing the
conjunction with a variety of areas. The
involvement of leadership; and reporting to
work groups are made up of members of
the Executive Committee and the Board of
Sustainability Governance and employees
Directors on integrating sustainability into the
– called “Sustainability Leaders” – who are
Organization’s daily business activities. Until 2009
knowledgeable about the sustainability themes.
Committee. It is also responsible for: monitoring
The short list of ideas was selected for the Sustainable
Ideas Bank (SIB), for implementation in 2010.
Meetings for the Sustainability Committee were
set at once every two months, and monthly for the
Sustainability Commission, due to increased demand for
definitions and projects linked to environmental issues.
the Committee met quarterly, while in 2010 it will
meet once every two months.
23
Sustainability Vision
• Commitment to
Sustainable Development
The Essence of Sustainability
In late 2008 we held the first review of the key
1. Transparency and Governance
3. Socio-environmental Criteria
challenges for our sustainable performance and
The culture of transparency in the corporate
By adopting socio-environmental criteria in
released the document entitled the Essence of
world leads to improved quality in stakeholder
our policies and management, we are
Sustainability. The text covers the views of staff
relations, which results in greater trust. Good
committing to promote sustainable
and specialists, as well as best global practices
corporate governance ensures increased
development. Socio-environmental criteria
in the financial sector. Like any policy it is a
desire to provide transparent information
should be applied in all our business activities,
“living” document, open to adjustments and
internally and externally, which is the first step
from financing to investment and throughout
reviews so that it is continually aligned with the
on the road to sustainability.
the entire supply chain.
demands of society.
2. Customer Satisfaction
4. Diversity
The stakeholder consultation process continued
Customer satisfaction indicates how sensitive
Promoting diversity means building quality
in December 2009, when two panels were
we are to the needs of our most important
relationships with people of different
held. The first was for employees, while the
strategic relationship group. Respecting
backgrounds, races, cultures and opinions,
second featured a group of market experts and
and satisfying our customers are the means
without discrimination but understanding their
analysts. Both panels however, shared the same
to making this relationship long lasting to
differences and promoting inclusion. We must
goal: evaluate the relevance to the Organization
ensure business continuity. Accordingly, we
encourage respect for diversity among our
of the eight challenges listed in the Essence of
must also offer products and services that
employees and other stakeholders.
Sustainability. The meetings also helped
meet their real needs. This issue has gained
broaden these groups’ knowledge of our
ground with the Bank’s new vision - “Be the
concepts and sustainability practices.
leading bank in sustainable performance and
Climate change is one of the great challenges
customer satisfaction” – and is also one of the
that society and our planet will continue to
Following are the eight challenges that make up
commitments taken on in the Sustainability
face in the quest for sustainable development.
our Essence of Sustainability document and which
Policy: “Maintaining our business over the
Everyone should consider themselves agents as
impact directly on sustainable performance.
short, medium and long-term, to deliver
we seek to understand the phenomena and find
Their respective symbols also appear throughout
continual value to our stakeholders”.
viable solutions to the impact caused by human
5. Climate Change
the Report, indicating how the Organization is
activity on the climate. Itaú Unibanco believes
responding to these sustainability challenges.
that it has much to contribute as a financial
institution committed to promoting sustainable
development for people and businesses.
24
Engagement Strategy:
Stakeholder Panels.
Challenges for
2010
Improve internal and external disclosure of the Essence of Sustainability, based
on the results of the Stakeholder Panels held in 2009.
Review the Sustainability Policy.
Develop positioning and operating strategy in response to climate change.
Reinforce the stakeholder engagement strategy, consistent with the guidelines
of the AA1000 standard.
6. Financial Education
Financial education is a factor capable of
promoting economic development and social
inclusion. The commitment to developing
tools that allow people to better manage their
finances can contribute to mitigating one of
the major challenges faced by Brazilian society:
social inequality.
7. Microfinance
Thinking of ways to reduce poverty is essential
for sustainable development to be effectively
achieved. Microfinance comprises an efficient
tool for the economic and social inclusion of
the disadvantaged.
Awards and Recognition in 2009
Awards and recognition represent a way for the general public to view our contribution to society.
We have been included in the Dow Jones Sustainability Index - DJSI World every year since this
index began in 1999, and likewise for the BM & FBovespa Corporate Sustainability Index (ISE), which
began in 2005. In 2009 the Bank received other forms of recognition related to sustainability:
• chosen as the Sustainable Bank of the Year in Emerging Markets for the FT Sustainable Banking
Awards by the British newspaper Financial Times;
• included as one of the 20 model companies in the Exame magazine Sustainability Guide;
• named the Most Sustainable and Ethical Bank in Latin America by Latin Finance magazine and
consultants Management & Excellence;
• named by IstoÉ Dinheiro magazine as one of the “50 Companies on the Side of Good”;
• recognized as one of the leading private institutions in the Americas in the fight against poverty
by the Corporate Citizen of the Americas Award, presented by the Organization of American
States (OAS) for the “Portuguese Language Olympics - Writing the Future”; developed by Fundação
Itaú Social; and
• included in the “Top 50 Companies in Sustainability” by Imprensa magazine.
8. Stakeholder Engagement
Increasing opportunities for dialogue and
interaction with strategic relationship groups is
essential for any organization concerned with
having a socially responsible activity. We must
understand the needs of different groups to
respond with the appropriate products, services
and mutual understanding in relationships.
LEARN MORE:
To see the full version of our Sustainability Policy, visit:
ww2.itau.com.br/environmental/pdf/politica_sustentabilidade_ItauUnibanco.pdf
To learn more about the Essence of Sustainability, visit:
www.itauunibanco.com.br/relatoriodesustentabilidade/en/pdf/essencia.pdf
To learn more about the commitments and representations we have undertaken, visit the online
version of this Report at www.itauunibanco.com.br/relatoriodesustentabilidade
25
Corporate
• Governance Structures
• Transparency in Reporting
Governance
• Socio-environmental Risk
• Crisis Management
• Ethics Management
Stronger Structures
In June 2009 the Board of Directors approved our
new corporate governance structure
Our new corporate governance structure has been strengthened by combining the best
practices of both banks, which is the same guideline used in the integration of processes
and business. Corporate Governance now operates under five committees: Audit, People,
Appointment and Corporate Governance, Risk and Capital Management, and Strategy.
With this stronger governance structure we seek to build a management model which is increasingly
committed to sustainability at all decision-making levels (read more about our sustainable practices in the
Sustainability Vision section of this Report).
SHAREHOLDING STRUCTURE
Egydio Souza Aranha
Family
Moreira Salles
Family
100% Total
Companhia E. Johnston
de Participações
60.97% ON
17.87% PN
34.43% Total
Free Float (*)
39.03% ON
82.13% PN
65.57% Total
Itaúsa
36.20% ON
18.31% Total
50% ON
66.53% Total
50% ON
33.47% Total
IUPAR
Itaú Unibanco
Participações S.A.
Bank of America
51% ON
25.79% Total
Itaú Unibanco
Holding S.A.
99.99% Total
100% Total
Banco Itaú
Chile S.A.
99.99% Total
Banco Itaú
Uruguai S.A.
99.99% Total
Cia. Itaú
Capitalização
Itaú Seguros S.A.
30% Total
Banco Itaú
BBA S.A.
99.99% Total
Hipercard Banco
Múltiplo S.A.
100% Total
10.34% ON
91.58% PN
50.50% Total
99.99% Total
Itaú Corretora de
Valores S.A.
99.99% Total
Banco Itaú
Argentina S.A.
99.99% Total
26
Itaú Unibanco
S.A.
99.99% Total
Banco Itaú
Europa S.A.
99.99% Total
100% Total
Banco
Itaucard S.A.
Free Float (*)
2.47% ON
8.42% PN
5.41% Total
Porto Seguro
S.A.
50% Total
Orbitall Serv.
Proc. de Inf.
Comerciais S.A.
Redecard S.A.
100% Total
Itaú Vida e
Previdência S.A.
*
Shares issued and outstanding.
Note: Direct and indirect subsidiaries.
In this chapter
The Organization’s new governance structure.
• The composition of the Board of Directors and Management Committees
• Risk Management and Disclosure Policy
• Socio-environmental Risk Policy for Commercial Credit
• New Code of Corporate Ethics
Passageway at the Itaú Unibanco
Business Centre in São Paulo.
27
Corporate Governance
The association between Itaú and Unibanco
We hold public meetings in cities around
Following are selected corporate governance
involved an unprecedented shareholding
Brazil, the United States and Europe so that
achievements in 2009, which are the result of
reorganization, with the migration of the
investors, analysts, shareholders and other
the continual review and improvement process
shareholders of Unibanco Holdings S.A. and
strategic relationship groups can interact with
in our management model:
Unibanco-União de Bancos Brasileiros S.A.,
our senior management and discuss strategies
through a share exchange, to Itaú Unibanco
for making investment decisions. In these
S.A., formerly known as Banco Itaú Holding
meetings we detail our value creation strategy
• new operating rules for the Board of Directors;
Financeira S.A. The new Organization is
as well as the outlook for our operations, while
• new regulations for the Audit Committee;
controlled equally through Unibanco
investors have the opportunity to express
Holdings S.A. Itaú (Iupar), Investimentos Itaú
their views, criticize and make suggestions to
S.A. (Itaúsa) and Companhia E. Johnston de
us on topics they would like to see discussed
• Material Information Disclosure Policy;
Participações S.A.
by the Executive, the Board of Directors or at
• Trading Policy;
Shareholder Meetings.
We are always focused on creating value for
• changes to the Articles of Incorporation;
• Corporate Governance Policy;
• Operational Risk Management Policy;
all our stakeholders through the adoption
The www.itau-unibanco.com.br/ri website
of best corporate governance practices,
and the direct contact e-mail for our Investor
which is an ongoing and long-term process
Relations (relacoes.investidores@itau-
geared to the sustainable growth of the
unibanco.com.br) area are other effective
Organization. In this context transparency,
communication channels available to
Board of Directors
ethics and environmental responsibility are of
shareholders and investors.
A collaborative group comprised of 13 members,
the utmost importance and must encompass
• Stock Option Plans; and
• Itaú Unibanco Holding S.A. Principles
of Conduct.
the Board of Directors is responsible for defining
all stakeholders. Clear evidence of this
The committees report to the Board of
our strategy and those of our subsidiaries,
commitment is the presence of independent
Directors, which in turn elects and/or
analyzing issues of relevance and effectively
members on the Board of Directors and other
appoints their members to help create
overseeing our management on behalf of the
councils and committees, and our compliance
a common and systematic treatment
Bank’s shareholders. It also determines the
with the São Paulo Stock Exchange (Bovespa)
of matters of strategic importance or
general direction of the institution’s business,
Level 1 corporate governance and Sarbanes-
regarding control of the Bank. The Board
elects and removes executive directors and
Oxley Act + , both of which require adopting
and Committees act as collaborative groups
establishes their responsibilities, oversees the
a number of internal control and risk
and seek to obtain consensus through
performance of line directors and convenes
management procedures.
the dialogue and systemic vision that
Shareholder Meetings.
characterize our management.
+
28
Sarbanes-Oxley – An American law, enacted in 2002, which establishes rules for the standardization and improvement of the financial controls of
publicly-traded companies which are listed in the United States.
13 members
constitute the Board of Directors, which defines the strategy
of the group and its subsidiaries, and oversees management
on behalf of shareholders.
ADMINISTRATION OF ITAÚ UNIBANCO HOLDING S.A.
Fiscal Council
Board of Directors
Audit
Committee
Internal
Audit
People
Committee
Appointment
and Corporate
Governance
Committee
Risk and Capital
Management
Committee
Strategy
Committee
International
Advisory
Board
Independent
Audit
Executive Board
Disclosure
and Trading
Committee
29
The Board of Directors has independent members,
whose responsibilities include safeguarding the interests
of the Organization and its minority shareholders, in
addition to managing conflict of interest risks.
Members of the Bank’s
Board of Directors.
Board of Directors
The Board is also the body of record for
the Senior Ethics Commission, the Audit
disclosing company financial statements. It
Committee, the Disclosure and Trading
selects and removes independent auditors
Committee and the Commission to Prevent
Chairman
and decides on the payment of interim
and Combat Illegal Acts.
Pedro Moreira Salles
capital. It also decides on share repurchases
The Board of Directors currently has three
Vice-Chairmen
and the buying and/or granting of call
independent members. The independence
Alfredo Egydio Arruda Villela Filho
and put options. It approves the rules put
of these members is designed primarily
forward by the Audit Committee for its
to protect the interests of the business
Roberto Setubal
own operation, and monitors its activities
and our minority shareholders by
(also President and CEO)
through regular reports.
allowing the discussion of ideas which
dividends and payment of interest on
may differ from those of the directors
Directors
The Board also guides the implementation of
representing the control block. The
Alcides Lopes Tápias
the Organization’s financial, environmental
existence of independent advisers, free of
and social policies, as well its socio-
any business ties to the Organization, also
Alfredo Egydio Setubal
(also Director of Investor Relations)
environmental responsibility practices.
helps manage risk in relation to conflicts
Candido Botelho Bracher
To manage these activities we have four
of interests that might impair a board
Fernando Roberto Moreira Salles
internal governance groups which feature
member’s ability and neutrality when
Francisco Eduardo de Almeida Pinto
representatives of our many different areas:
analyzing issues before the Board.
Gustavo Jorge Laboissiere Loyola
the Sustainability Monitoring Committee
Henri Penchas
(which meets annually with the Board of
Only three members of the Executive Board
Israel Vainboim
Directors); the Executive Sustainability
sit on the Board of Directors (Roberto
Pedro Luiz Bodin de Moraes
Committee (half-yearly meetings of the
Setubal, President and Chief Executive
Ricardo Villela Marino
Executive Committee); the Sustainability
Officer, Alfredo Egydio Setubal, Vice-
Committee (executive meetings every two
Chairman and Director of Investor Relations,
months); and the Sustainability Commission
and Ricardo Villela Marino, Executive Director
(monthly meetings of supervisors and
of People and External Units), which allows
managers). Our collaborative bodies (Board
the Board to have greater involvement and
of Directors, committees and commissions)
access to information on management,
also discuss ethics related-issues through
without compromising their impartiality.
30
Executive Committees
Itaú Unibanco Holding S.A. Executive Committee
There are two executive committees
Roberto Setubal
Chairman
responsible for managing and
Alfredo Egydio Setubal
Wealth Management & Services
representing the Bank: the Executive
Antonio Carlos Barbosa de Oliveira
Technology, Legal and Compliance
Committee, which is responsible for all
Geraldo Carbone
Consumer Bank
group operations except those of the
José Castro Araújo Rudge
Insurance, Corporate Pensions, Annuities,
Institutional Relations and Marketing
responsibility of the Itaú BBA Executive
Márcio Schettini
Consumer Credit
Committee. Both committees report
Marco Bonomi
Itaucred - Vehicles, Mortgages and Consórcios
directly to the Board of Directors.
Ruy Moraes Abreu
Corporate
Sérgio Werlang
Risk and Finance
Marcos Lisboa
Operational Risk and Efficiency
Ricardo Villela Marino
People and External Units
wholesale bank, which are under the
Disclosure and
Trading Committee
The main purpose of the Disclosure and
Trading Committee is to manage the
Disclosure and Trading Policy. Its scope of
activities covers a range of internal actions
designed to improve information flows and
oversee the ethical conduct of management
and staff who are parties to the Disclosure
of Material Information and Trading
policies to preserve the transparency,
quality, fairness and security of information
provided to shareholders, investors, the
media, government authorities and other
groups involved in the capital markets.
31
Five committees
and an Advisory Board comprise the governance
structure of Itaú, which has been strengthened by
combining the best practices from both banks.
Members of the Itaú BBA S.A.
Executive Committee.
Itaú BBA S.A. Executive Committee
Audit Committee
There is a single Audit Committee for all our
Appointment and
Corporate Governance Committee
Candido Botelho Bracher
companies and it is responsible for ensuring
The Appointment and Corporate Governance
Chairman
the quality and integrity of financial statements,
Committee’s main objective is to monitor the
compliance with legal and regulatory
governance of the Organization, particularly
Alberto Fernandes
requirements and the quality and effectiveness
with respect to matters related to the Board
Sales and Products
of internal control and risk management
of Directors. It also is responsible for helping
systems. The Audit Committee is also
the Chairman of the Board decide on board
Antonio Carlos Barbosa de Oliveira
responsible for the performance, independence
membership. Its most important functions
IT, Legal, Compliance and Operations
and quality of the work of external auditors, as
include: identifing, analyzing and proposing
well as the performance, independence and
candidates for the Board to submit at
quality of internal auditing.
Shareholders Meetings; review the definition
Daniel Gleizer
Institutional Treasury
criteria for independent directors; evaluate
People Committee
the work of the Board; and discuss and make
Jean Marc Etlin
The People Committee is responsible for guiding
recommendations on the succession of the
Investment Bank
the development and retention of talents. For
Chairman of the Board and other directors,
this reason, among other responsibilities, it
plus the Chief Executive Officer. Based on
Rodolfo Fischer
must develop pay models for top executives
criteria established by the Board of Directors,
and evaluate and approve compensation
the Committee also analyzes and comments
packages for directors, as proposed by the CEO.
on situations of potential conflict of interest
Additionally, the People Committee establishes
between directors and companies within
guidelines for recruitment, appraisal and
the Organization.
career planning to ensure the development of
successors for all key positions.
32
Risk and Capital
Management Committee
International Advisory Board
The Risk and Capital Management Committee,
step forward through the creation of the
which is comprised of members who are
International Advisory Board, which is an
elected annually by the Board of Directors,
important internal governance body and a
was established in 2008. The Committee’s
strategic initiative in the context of today’s
responsibilities include monitoring and
economy, in which Brazil is consolidating
reviewing policies and helping define our
itself as a global player.
Stakeholder communications took a
general approach toward market, financial,
credit, liquidity, legal, image and operational
Chaired by Brazil’s former Minister of the
risks, among others.
Economy, Pedro Malan, the Board’s goal is to
help increase our presence in the international
Strategy Committee
financial community while we continue to
The main function of the Strategy Committee is
strengthen our position as the country’s
to discuss issues that may have a major impact
biggest and best privately-controlled bank.
on our business. The Committee’s tasks are all
The Board’s other members feature important
designed to support the Board of Directors in
business leaders and academics from a number
its discussions with the Itaú Unibanco Executive
of countries, all of whom are renowned for
on strategic guidelines for business matters. The
their experience in the financial world. These
Committee’s responsibilities include identifying
individuals are: Andre Lara Rezende, Carlos
investment opportunities and setting budget
Ghosn, Jacob Frenkel, Marcel Telles, Pedro Aspe,
guidelines to support and advise the CEO in
Raghuram Rajan and Woods Staton, in addition
monitoring corporate strategy. The Strategy
to Roberto Setubal and Pedro Moreira Salles.
Committee is supported by the Economic
Scenarios Subcommittee, which is comprised of
Organization executives with relevant expertise.
It provides the Board with macroeconomic data
to support its discussions on defining strategies,
investments and budgets.
33
Transparent Reporting
The progress of the integration process has
the São Paulo Stock Exchange (ISE-BM&F
made management and reporting even
Bovespa) Corporate Sustainability Index.
greater priorities for Itaú Unibanco. As a listed
company and one of the major players in the
Our disclosure policy includes the
global financial market, our shares are traded
publication of quarterly results and
on three bourses: the São Paulo Stock Exchange
newsletters, in addition to conferences,
(BM & FBovespa), where we maintain a Level 1
Roadshows
governance standing, the Buenos Aires Stock
analysts. Due to the international financial
Exchange (BCBA) and the New York Stock
crisis that erupted in late 2008 - over the
Exchange (NYSE).
course of which Brazil came through
+
and periodic meetings with
relatively unscathed - the number of
Given the growth of our operations, the
meetings held in Europe, Asia and Latin
distribution of our shares in the capital
America has been increasing.
markets and diversification of our strategic
relationship groups, we have adopted
In Brazil, the Investor Relations
monitoring instruments and reporting systems
(IR) area – whose objectives include the
consistent with internationally recognized
clear and transparent dissemination of
commitments such as the Global Compact, the
public information on which to base an
Equator Principles, the guidelines of the Global
investment in Itaú Unibanco shares - held
Reporting Initiative (GRI) and the AA1000 and
a record number of 22 public meetings in
SA8000 standards.
2009, which shows the level of interest of
foreign and local investors in the country.
34
Our business practices are based on financial
These meetings represent one of the most
sector codes of ethics and trends in the
important communication channels with
economy. They seek to track, if not define, best
the market, and are greatly appreciated
practices of the national and international
by investors, analysts and shareholders, as
markets, such as those which underline the
they provide the opportunity to discuss
performance of companies on industry metrics
with senior management the strategies and
like the Dow Jones Sustainability Index and
results obtained by the Bank.
Two of the ten executive areas of the new governance
structure – Operational Risk and Efficiency, and Risk and
Finance – combine our risk management practices into
a unified business vision.
Risk Management
The economic crisis has transformed
In the Organization, risk management
evaluation and reporting activities
risk management into a top priority for
consists of the process by which the
through its control units.
many companies and governments. For
existing and potential risks of a transaction
Itaú Unibanco it represents one of the
are identified; consistent risk limits are
Credit Risk
pillars of the Governance Policy, which
established in line with all our business
Credit risk is the probability that a
we consolidated in 2009. The main risks
strategies; policies, procedures and
borrower may not have sufficient funds
that affect the financial system are:
methodologies are approved in keeping
to meet the commitments of their debt.
market, credit, liquidity, operational and
with previously established risk limits; our
Accordingly, we monitor the possibility
underwriting.
portfolio risk is managed vis-à-vis the best
of losses associated with non-payment
risk-return ratios; and capital is allocated in a
of financial obligations, the devaluation
manner commensurate with the risks.
of a loan stemming from deterioration
With the new committee structure established
under the scope of the Board of Directors we
in the borrower’s risk classification, the
have set up a Risk and Capital Management
Main Risk Categories
reduction of earnings or remuneration,
Committee comprised of Pedro Luiz Bodin
Market Risk
the benefits granted in renegotiation
de Moraes, Roberto Setubal, Candido Botelho
Market risk is the risk that market values
and the cost of loan recovery.
Bracher, Francisco Eduardo de Almeida Pinto
of positions held by the Bank, as well as
and Gustavo Loyola.
their financial margins, will be affected
At Itaú Unibanco, governance of credit
due to exchange rate and interest rate
risk management is through committees
In the first half of 2009 we unified our ideas
fluctuations, and the prices of stocks and
and commissions which evaluate the
and procedures. The risk management
commodities. Given the dynamics of the
market’s competitiveness conditions,
structure was also reviewed to differentiate
economy, market fluctuations cannot be
establish our appetite for risk and review
business activities from management and
measured accurately. We have to monitor
control practices and policies. Credit risk
control, ensuring independence between
them and manage our operations to
is controlled by means of set limits and
these areas and balance in decision-making
reduce any eventual negative impact
levels of decision-making authority.
with respect to risks incurred and compliance
on financial results and maximize
with regulatory requirements.
opportunities for monetary gains.
We plan to increase our assets while
evaluating the risk-return ratio and
The risk management structure of the Risk
Our market risk management strategy
paying close attention to the quality of
and Finance area supports our operations.
balances the Bank’s business goals with its
the credit portfolio and generation of
The risk of default of each operation, the
appetite for risk, taking into account the
shareholder value. The evolution of the
necessary guarantees, the spread to be
political, economic and market conditions,
quantitative management and statistical
charged, and the cost of capital by allocating
our market risk portfolio and expertise at
modeling tools for active credit
resources to meet the standards of internal
operating in specific markets.
portfolio management has allowed us
models and the rules of the of Basel II
to identify expected losses that reflect
Capital Accord are measured to price each
Market risk control is performed by the
the statistical average, as well as the
transaction fairly for customers and securely
Market Risk and Liquidity Executive,
unexpected losses, also known as
for shareholders.
which conducts daily measurement,
Value at Risk – VaR) + .
+
Roadshows – A travelling presentation of business opportunities to institutional investors which specialize in globalized business.
VaR – Value at risk. A company’s total risk exposure, or the maximum potential expected loss of an investment portfolio, with a given
probability and time horizon.
35
With the significant diversification of risks by
our business units, the Organization maintains
a reduced overall exposure to market risk, when
compared with its capital.
Liquidity Risk
During the Itaú Unibanco merger process,
Underwriting Risk
Liquidity risk is designed to detect imbalances
for example, operational risks are carefully
Underwriting risk is applicable to insurance
between negotiable assets and payable
monitored once they become part of the
companies and is associated with the
liabilities, or when there is a mismatch
migration of branches and systems.
probability of decision errors in determining
the price and/or calculation of technical
between payments and receipts that might
affect our payment capability, considering the
Under our integrated operational risk
reserves for insurance products, as well as in
different currencies and settlement terms for
management policy, approved by the Board
monitoring the decisions made. Similar to
rights and obligations.
of Directors, we have adopted all Central Bank
Basel II + , the International Association of
requirements with respect to operational risk
Insurance Supervisors (IAIS) guides insurance
Liquidity risk management uses best
management, pursuant to CMN Resolution
companies on employing risk management
practices to avoid cash shortages and
3380 of June 2006, which is based on the
systems which supplement their minimum
difficulties in honouring payments due.
principles and good practices of Basel II.
capital and solvency margin systems.
and compliance is regularly reviewed by
The operational risk management governance
Our team specializes in underwriting risk
technical committees designed to ensure
structure is made up of the Board of
analysis and control for insurance products,
an additional safety margin beyond the
Directors, the Audit Committee, Internal
and builds mathematical models that
minimum projected security needs. Liquidity
Audit, the President’s Office plus Executive
capture such risks in the proper allocation of
management policies and their associated
Officers and Related Technical Risk areas. This
managerial capital.
limits are established based on periodically
structure is responsible for the operational
reviewed prospective scenarios, and on the
risk management process, which includes
Market Risk Indicators
limits set by the Senior Institutional Treasury
four phases: identification, evaluation,
The following Value at Risk table consolidates
Liquidity Commission.
management and monitoring.
Itaú Unibanco’s total VaR, covering the
Operational Risk
We employ management models for financial
Banco Itaú Argentina, Banco Itaú Chile and
Operational risk is the risk of loss resulting
evaluation by business line, quantifying
Banco Itaú Uruguay. The portfolios of Itaú
from inadequate or failed internal processes,
operational risks incurred by using statistical
Unibanco S.A. and Itaú BBA are grouped
people and systems, or from external
models that allow provisioning of reserves
together, separated by risk factor.
events. This category also includes legal risks
for expected losses and allocation of capital
associated with inadequate or incomplete
for unexpected losses. This gives us a more
contracts, as well as penalties incurred due
refined pricing process for products and
to non-compliance with legal provisions and
services offered to the market, and follows the
compensation for damages to third parties
criteria of the Basel II Capital Accord, within
arising from our activities.
the timeframes set by the regulator.
We have established guidelines and limits,
portfolios of: Itaú BBA, Banco Itaú Europa,
+
Basel II Capital Accord – Replaces the Basel I agreement which was signed in the Swiss city of Basel in 1988. The new accord was ratified by more
than 100 countries and seeks to establish minimum capital requirements to be held by commercial banks as a precaution against credit risk. Basel II
is built on three pillars: Capital (save); Supervision, (inspect) and Transparency and Market Discipline (disclose), in addition to 25 basic accounting and
supervision principles.
36
We maintained our policy of operating
within reduced thresholds in relation
to our capital. Values at risk in the
VaR Itaú Unibanco Holding S.A. (in R$ millions)
VaR by risk factor
31/Dec/09*
31/Dec/08
Fixed Rate
69.1
159.3
the other business units that comprise
TR Interest
11.7
13.8
it, by lower levels of volatility of the
Inflation Rates
16.2
4.6
Coupon Rate
11.3
16.6
Exchange Rate Variation – US$
Private Issues and
Sovereign Abroad
Equities
13.7
17.2
2.2
22.2
principal internal and external risk factors
during the fourth quarter of 2009, as well
as a conservative portfolio management
approach.
The table shows a significant
diversification of risks in the business units,
enabling the Organization to maintain
Itaú Unibanco + Itaú BBA
consolidated table were influenced, as in
7.4
15.5
External Rates
1.8
7.8
Commodities
3.1
0.0
Forex – Other Currencies
3.7
1.0
Others
3.8
8.6
a very low total exposure to market risk,
Unibanco
-
161.6
compared with its capital.
Banco Itaú Europa
1.7
5.9
Banco Itaú Argentina
1.4
5.1
Banco Itaú Chile
0.8
1.1
Banco Itaú Uruguai
0.3
2.8
(61.1)
(97.9)
VaR Global Total
87.2
345.3
Maximum VaR
60.9
814.6
Average VaR
160.8
263.0
Minimum VaR
241.6
126.6
Effect of Diversification
* Includes the Flow Book portfolio.
37
Other projects approved1 by Itaú BBA
using Equator Principles criteria – 2009
Projects evaluated and financed by Itaú BBA
1
using Equator Principles criteria - 2009
Sectors
Projects
Investments
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
Sectors
Projects
Investments
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
Energy
Services
Total
4
1
5
23,970.42
1,810.38
25,780.80
949.79
660.40
1,610.20
Energy
Services
Total
2
1
3
1,993.55
214.00
2,207.55
722.00
30.00
752.00
Sectors
Projects
Investments
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
Sectors
Projects
Investments
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
3
2
5
25,529.40
251.40
25,780.80
1,470.41
139.79
1,610.20
1
1
1
3
1,386.00
214.00
607.55
2,207.55
323.00
30.00
399.00
752.00
A
B
Total
1. P rojects in this table were financed during 2009, and were approved by the governance structure in 2009
or in previous years.
A
B
C
Total
1. Projects in this table were approved by the governance structure in 2009, but by year-end still had not been
financed, and therefore were not included in the previous table.
Socio-environmental Risk
The Equator Principles cover, among
other issues, the following:
• protection of human rights and
community health, safety and security;
• protection of cultural property and
heritage;
• land acquisition and involuntary
We are committed to improving our
Being at the forefront of this challenge
environmental risk management through
allows us to consolidate and disseminate
in-depth studies of our credit operations.
our experience in socio-environmental risk
Accordingly, we seek to establish longer
management policies. In October 2009, for
lasting relationships with customers and
example, in partnership with the International
other stakeholders in order to consolidate
Finance Corporation (IFC) - the World Bank
a new stance in the financial market,
arm for financing private investments -
one which promotes and is capable of
and other bank members of the Steering
multiplying good socio-environmental
Committee of the Equator Principles, we
practices.
led the discussions in London as part of the
resettlement;
consultation and review process of the IFC’s
Equator Principles
• impacts on indigenous peoples, and their
unique cultures, systems and values;
• pollution prevention and waste
Performance Standard.
We are in the leadership position for the
Equator Principles worldwide. We were
Financial institutions that decide to
appointed to chair its Steering Committee
voluntarily join the Equator Principles commit
on September 23, 2008, becoming the
to set and use socio-environmental criteria
minimization, pollution controls and solid
first financial institution from an emerging
when granting loans for projects whose
and chemical waste management;
economy to take on this post, where we will
total value equals or exceeds US$10 million
remain until March 15, 2010. We were the
(Project Finance operations, as defined in
unanimous choice of the member banks
Basel II), in addition to criteria established for
of the Committee, due to the commitment
Performance Standards by the IFC and the
we have displayed in applying the Equator
Health, Safety and Environment Guidelines
Principles criteria to project analysis, as well as
defined by the World Bank, which are
the conduct of our Socio-environmental Risk
recognized worldwide.
• sustainable management of natural
resources and biodiversity; and
• employment conditions.
Policy for Corporate Credit, which is based on
voluntary compliance with global initiatives
and accepted environmental standards,
policies, guidelines and procedures.
38
Itaú Unibanco has been in the leadership position in
the Equator Principles worldwide since 2008, and our
appointment has been extended until March 2010.
In Essence
Socio-environmental criteria
Assessing socio-environmental
criteria is fundamental in integrating
sustainability with business.
We have adopted the Equator Principles, incorporating
socio-environmental requirements into our credit
operations analyses. We comply with the Principles for
Responsible Investment (PRI), participate in the Carbon
Disclosure Project (CDP) and have created socially
responsible investment funds.
The division by risk category, based on the IFC’s socio-environmental criteria for project
classification and applied to the framework of the projects evaluated using the criteria of
the Equator Principles, corresponds to the following groups:
Category A
Projects expected to have significant social and/or environmental
impacts that are diverse, irreversible or unprecedented.
Category B
Projects expected to have limited potential for social and/or environmental
impacts. They are few in number, usually specific to the location, largely
reversible and readily addressed through mitigation measures.
Category C
Projects expected to have few or minimal social or environmental impacts.
39
Socio-environmental analysis categories, by risk potential
A-
High potential for significant socio-environmental impact.
Low socio-environmental risk management capacity
B-
Medium potential for significant socio-environmental impact
Low socio-environmental risk management capacity
A+
High potential for significant environmental impact
Company capable of managing socio-environmental risks
B+
Medium potential for significant socio-environmental impact
Company capable of managing socio-environmental risks
C
Low potential for significant socio-environmental impact
High
Medium
Low
Environmental Risk Policy
In addition to commitments taken on by
• give internal support to sustainable
stages: (1) classification of a sector socio-
joining the Equator Principles in 2007, we
development actions and programs and
environmental risk (High, Medium and Low
have established a Corporate Credit Socio-
provide guidelines for training professionals
risk - A, B, C); and (2) individualized analysis of
environmental Risk Policy. This initiative
from the business and corporate credit
those clients in high or medium (A and B) socio-
reaffirms our strategy of integrating social
areas; and
environmental risk classes, involving financing
of $5 million or more.
and environmental criteria into the credit
decision-making process. In applying the
policy we seek to evaluate the socio-
• encourage corporate clients to improve their
socio-environmental practices.
The continuous improvement of the
application process for this policy is a strategic
environmental risk of project funding and
of the customers’ activities, in this case by
Currently, Itaú Unibanco and Itaú BBA also
concern at Itaú Unibanco. We have made
analyzing their socio-environmental risk
develop specific guidelines to evaluate certain
investments in organizing the structure of the
management capability.
sectors. One example is the housing sector,
area in charge and in technology, with a view
which already has a sector-specific socio-
to improving the analysis tools to make the
In 2009, during the integration activities,
environmental policy, established in late 2009
process faster and easier.
we continued to consolidate our Corporate
for the mortgage loan review process for
Credit Socio-environmental Risk Policy.
commercial banking customers (read more
In 2009 we analyzed middle market customers
This process began in December 2007
about the subject in the Business/Mortgage
(medium-sized companies) in the portfolio,
with a unique socio-environmental
section of this Report).
using the criteria set by the policy. Every
risk assessment methodology, whose
customer involved with financing equal to
unique scope was the result of extensive
The Policy in Practice
or higher than R$5 million received a sector
consultation with some of our strategic
The Corporate Credit Socio-environmental Risk
socio-environmental risk classification of A,
relationship groups, similar to international
Policy began in 2007, and was expected to be
B or C, while eligible candidates (classes A
standard AA1000. The policy’s main
implemented within two years to provide socio-
and B), which represent 60% of this group,
objectives are:
environmental risk analysis of commercial loans
underwent the review process. During the
of over R$5 million. This objective was achieved
year, 2,046 socio-environmental technical
in 2009, and the socio-environmental risk analysis
statements were issued – 1,933 in favour and
socio-environmental risks in corporate credit
process and tools for commercial loans are now in
113 against. Of these, 13 were considered
risk analysis;
operation. The procedures include two separate
favourable after clarifications provided
• establish guidelines and tools to assess
40
In 2009
we issued 2,046 socio-environmental opinions:
1,933 in favour and 113 against.
Projects reviewed1 by Itaú BBA and financed under the criteria of the Policy
Category
A+
B+
C
Total
Sectors
Sugar and Ethanol
Energy
Extraction Industry
Manufacturing
Services
Total
Projects
Total
Investment
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
1
12
1
14
517.22
2,062.39
79.30
2,658.91
348.09
630.29
48.19
1,026.58
Projects
Total
Investment
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
4
6
2
1
1
14
774.46
964.04
673.28
132.14
114.97
2,658.91
144.26
355.73
388.54
83.00
55.04
1,026.58
Other projects approved1 using the Policy criteria
Category
B+
Total
Sectors
Sugar and Ethanol
Energy
Services
Total
Projects
Total
Investment
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
4
4
665.77
665.77
282.73
282.73
Projects
Total
Investment
(in R$ millions)
Itaú BBA’s
share
(in R$ millions)
1
2
1
4
150.82
295.00
219.95
665.77
90.00
150.90
41.83
282.73
1. Projects in this table were approved by the governance structure in 2009, but by year-end still had
not been financed, and therefore were not included in the previous table.
Training and Qualification
by customers, while 100 remain classified
As defined by one of the objectives of the
as unfavourable and are currently being
Corporate Credit Socio-environmental Risk
monitored by the socio-environmental risk
Policy, throughout 2009 Itaú Unibanco and Itaú
analysis area.
BBA held training sessions for their respective
teams of employees in the commercial, product
Monitoring Practices
and corporate credit areas to qualify them with
Monitoring is one of the stages of the socio-
respect to their objectives, concepts and use
environmental risk analysis process, and
of policy guidelines in socio-environmental
investigates whether the practices and/or
management. At Itaú Unibanco training activities
projects being financed for corporate clients,
were undertaken via e-learning (Distance
depending on the case, remain compliant
Education), while at Itaú BBA all meetings were
with the standards set by the Bank. This
in person.
stage includes actions such as site visits by
socio-environmental risk analysts and socio-
At Itaú Unibanco the training is targeted at credit
environmental consulting experts to assess
analysts and product and commercial managers
the practices set out in the contract.
(corporate customer service delivery), and were
made available to about 2,000 employees. For
Based on the results obtained during
2010 the goal is to reach all 6,000 professionals in
the monitoring stage, and based on our
these areas.
socio-environmental commitments, we
can question the practices of our corporate
At Itaú BBA the group that received training
clients, as well as their application to the
was comprised of credit analysts and managers.
projects being financed. In such cases,
Next year the training should cover all the
clients must submit supplementary
areas involved, directly or indirectly, in credit
information and/or review their
operations.
environmental practices in order to ensure
the delivery of service standards established
by Itaú Unibanco.
41
Itaú Unibanco Tatuapé
Administrative Centre,
São Paulo.
Crisis Management
• People Contingency
Itaú Unibanco’s structured crisis management
The program’s key points include over 200
program has delivered positive results. Begun
focus agents, or appointed representatives
Due to the Influenza A (H1N1) epidemic,
in September 2008, the Corporate Crisis
whose mission is to act in solving a
we mobilized ourselves to prevent the risk
Management Program was also implemented
possible crisis, assisting the Corporate Crisis
of a pandemic. In addition to publicizing
throughout 2009 at the units in Uruguay,
Management Committee in business recovery,
contagion prevention information to all our
Argentina, Chile and Paraguay, and as well
monitoring problem situations and improving
business units, we also developed a plan to
as in New York, Lisbon and Luxembourg. Our
processes with a focus on prevention.
enable employees to work off-site, should the
goal is to cover all international operations by
the end of 2010.
progress of the disease prevent access to the
Following are selected actions carried out in
workplace.
2009 which exemplify the essence of the Crisis
The program is based on a multidisciplinary
Management Program, as they contributed to
With its consolidation in 2009, the Corporate
management model approach designed to
preserving operations:
Crisis Management Program was one of the
coordinate quick response actions to any crisis
that could result in human and/or financial
losses, or affect our image and reputation.
initiatives that allowed us to earn a high score
• Business Impact Analysis
Our position in Brazil’s National Financial
System increases our responsibility to ensure
The crisis management model provides
business continuity, even in situations of
three levels of action - strategic, tactical
abnormality. Analysis of impacts on our
and operational - as described in the
business is a task performed by all units
Crisis Management Policy, and covers
of the Organization, with the objective of
the entire Group.
mapping priority processes and services
in crisis situations. Based on this work,
contingency plans are then drawn up to
maintain activities that can or must not be
interrupted, allowing us to conduct business
and provide customer service even in
emergency situations.
42
in the New York Stock Exchange Dow Jones
Sustainability World Index.
Ethics Management
The merger between Itaú and
• Good Faith – Our actions are transparent
The Ethical Commitments Management
Unibanco also led to a new Corporate
and we take responsibility for our actions
Program provides managers and other
Ethics Code, released in February 2010,
and choices;
employees with tools and information that
together with the process of building
a new culture that will help redefine
sector codes of conduct.
The new bank’s Vision - to be a leader in
enable them to resolve ethical dilemmas and
• Interdependence – We are open to dialogue
groups in order to share actions and goals that
The Continuing Education Program on
lead to the common good; and
Ethics disseminates our values and standards
sustainable performance and customer
satisfaction - expresses our conviction
conflicts of interest.
and we interact with our strategic relationship
of conduct to staff members. In addition,
• E xcellence – We develop environments that are
periodic internal communication actions are
that organizations cannot buy long-term
conducive to high quality work and those who
used to encourage the adoption of ethical
success, rather, success depends on the
perform it for the institution and society.
practices in relationships and daily activities
ability to lead with ethics and responsibility.
of the Organization. In 2010 an awareness
Accordingly, the new Code of Ethics
We have updated the management practices
and education program will be undertaken to
describes the behaviour expected from our
in the Corporate Ethics Policy. The new
expand the awareness of our new Code for all
employees and reinforces our commitment
policy was conceived based on corporate
our employees.
to best practices in the market. As a result,
values and vision, the requirements set by
we developed the following four Ethics
international standards AA1000 and SA8000
In 2009, based on the guidelines of the two
Principles to govern our personal and
and the sustainability indices of the São Paulo
programs, we held a Money Laundering
organizational conduct covering different
and New York stock exchanges. In practice
Prevention training event which was attended
times, places and cultures:
the Corporate Ethics Policy guides the
by about 13% of our employees via e-learning,
implementation of two programs:
approximately 14% of whom were managers.
• Identity – We align our businesses with
our corporate identity, based on high
standards of ethics, resilience and respect
We also provided e-mail training in Cash
• Ethical Commitments Management
Program; and
Transactions Control, launched in 2009,
which reached about 13% of our staff. Those
employees who were considered multipliers
for sustainability;
• Continuing Education Program on Ethics.
received presence training during the period.
43
Combating Corruption
To ensure the ethical conduct of our
In addition, all business units are subject to
In 2009 we recorded five instances involving
employees and partners we adopted control
the application of the Corporate Policy for
employees who sought financial benefits
procedures, criteria for investor and supplier
Combating Corruption and Bribery, and have
or personal favours in their relationships
relations, information security measures and
specific assessment and control procedures for
with suppliers or customers. The cases were
prevention of money laundering, among
the risks inherent in their processes.
examined and ended with the dismissal of
other measures.
The merger between Itaú and Unibanco also
the staff members involved - two of whom
encouraged us to continue and develop staff
were removed with just cause.
Preventing and combating illegal acts are part
awareness campaigns, focusing not only on
of our institutional responsibility. To formalize
Protection of Information for the Organization,
this commitment to society and following best
but also on shedding light on personal
market practices and recommendations from
information exposure risks on the Internet. This
international organizations, we established
initiative seeks to educate staff about virtual
the Corporate Policy for Preventing and
threats and forms of protection to ensure the
Combating Illegal Acts. To maintain a
integrity of our information.
control environment that discourages such
acts by means of preventive actions or by
In 2010 development of the Corporate Program
encouraging employees to commit to our
for Combating Corruption and Bribery continues
values and principles, some strategic actions
to be integrated into all initiatives, and gives
were adopted, such as software updates, staff
greater visibility to compliance with this policy.
training and certification in money laundering
Part of the program includes the consolidation
prevention.
of internal control practices, training and
communication actions, and the improvement
of complaints routing and investigation
channels. Our goals are to increase the scope
of training and place greater emphasis on
communication actions related to this issue.
44
The merger between
Itaú and Unibanco resulted in a
new Corporate Ethics Code.
LEARN MORE:
The biographies of the members of the
Board of Directors are available at
Ethics Management Governance
Objectives
Board of Directors
Projects/Process
• Approve changes in the Corporate Ethics Code
Frequency
Annually
• Submit proposals for improving the Corporate Ethics
Code to the Board of Directors.
• Monitor the ethical climate and assess the compliance
of the business and operations of the holding company
and its subsidiaries with the guidelines of the Policies.
The biographies of the members of the Itaú
Unibanco Executive Committee are available
at www.itau-unibanco.com.br/ri
The biographies of the members of the
Itaú BBA Executive Committee are available at
• Establish and administrate the Corporate Ethics Policy
and Corporate Policy to Combat Corruption and
Bribery (Policies).
Senior Ethics
Commission
www.itau-unibanco.com.br/ri
Half-yearly
For more information on the initiatives of the
Equator Principles, please visit
www.equator-principles.com
For risk analysis and other socio-environmental
risk practices of Itaú Unibanco, please visit
• Examine variances in the conduct of group companies.
• Rule on interpretations of the Corporate Ethics Code,
ethical dilemmas, conflicts of interest and other
guidelines in the Policies.
www.itau.com.br/socioambiental
• Rule on interpretations of the Corporate Ethics Code,
ethical dilemmas, conflicts of interest and other
guidelines in the Policies.
Ethics Committees
of related
companies in
Brazil and abroad
• Monitor the ethical climate and assess compliance of
the organization’s business and operations with the
guidelines of the Policies.
Quarterly
• Examine variances in conduct within the companies
of the Bank.
• Submit an annual report to the Senior Ethics Commission.
Sector Ethics
Committees
(one per
executive area)
• Monitor the ethical climate and assess compliance of
business areas and their operations with the guidelines
of the Policies.
• Examine variances in the conduct of the business area.
Quarterly
• Submit an annual report to the Bank’s Ethics Committee.
45
Business
• Branches
• Small and Medium-sized Companies
• Consumer Credit
• Wholesale and Investment Bank
• Encouraging Microcredit
• Wealth Management & Services
• Itaucred
• International Market
• Insurance, Pensions and Capitalization
Responsible Performance Strategy
The integration of the operations of Itaú and Unibanco has brought benefits to all
clients through improved corporate governance risk management, as well as the
provision of a range of innovative products and services.
The merging of our operations also helped us increase the supply of
credit in 2009, even in an economic environment marked by uncertainties
and expectations. The challenge of creating a new institution with solid
and competitive bases and a leadership role in Brazil and Latin America,
has become a major objective to be achieved collectively, one that from
now on will be guided by our corporate Vision: Be the leading bank in
sustainable performance and customer satisfaction.
To continue in this direction we maintained one of our traditional competitive strategies: customer
segmentation, whereby we identify the needs of each customer group to create products and
banking services that meet and exceed the specific demands of a broad and diverse set of
individuals and companies.
In 2010 our main goals are to consolidate our operations in Brazil while preparing the framework
for the Bank’s employees to work in an organization that seeks to become a global player in the
international market. With a continual focus on customer satisfaction we support the growth of
credit operations and broader economies of scale across all business segments.
46
In this chapter
Our main results and business outlook.
• Growth in lending
• Services for commercial clients
• The incorporation of Unibanco branches into the Itaú network
• Innovation in our international units
47
Business
• Branches
• Consumer Credit
• Itaucred
Segmentation: a differential
in customer service.
Branches
Our branch network typifies our commitment
We are in the middle of a process of
The Consumer Client Bank has its own
to society to promote economic
transformation and continuous improvement
infrastructure to serve this market segment,
development, environmental protection,
to satisfy our clients even more. Our customers
which is one of the largest within our
social inclusion and broadening the general
began to enjoy the benefits of the merger
Organization. Its Billing, Credit, Product
public’s access to banking services and
as of January 29, 2009, when the entire ATM
Development, Payroll Advance Loan and
products. In short, the durability of our
network was integrated. By year-end we were
Government Relations structures give us a
business is based on long-term relationships
present in more than 1,100 cities and towns,
unique view into the financial lives of our
with our stakeholders.
offering about 4,900 branches and banking
customers, allowing us to quickly create and
services outlets (PABs), plus more than 30,000
deliver products and services that meet their
ATMs to handle financial services essential
real needs.
One way to achieve this vision is to
invest in strategies and practices which
to the everyday life of our nearly 40 million
promote transparency, responsible lending
account and non-account holder clients.
The main directives that guide employees
working in the Consumer Client segment
and financial education - one of eight key
themes of the Essence of Sustainability.
As part of the strategy to segment our business
can be summed up in three basic attitudes:
Throughout 2009 all our business areas
activities, consumer or individual clients are
all employees must offer the best customer
began reviewing their procedures and
divided into three main groups:
service, try to understand their customers’
real needs, and help them be financially
processes and the changes are already being
felt in 2010. In this context our popular
Responsible Use of Money program has
• Retail customers, earning up to R$4,000
a month;
gained greater importance (read more in the
Sustainability Vision and Client/Relationships
sections of this Report).
• Uniclass customers (R$4,000 - R$7,000), both
under the Itaú brand; and
• Personnalité clients, earning over R$7,000
(served by a network of dedicated Personnalité
branches).
48
organized.
R$3.7 billion
was invested in technology last year by the Bank.
Integrated Network
Investments in Technology
In 2009 our efforts were focused on the integration
In 2009 the Bank invested R$3.7 billion in technology. Our clients
of operations plus the various teams and areas.
conducted approximately five billion transactions through self-service
Throughout 2010 the major change was the
channels: ATMs alone accounted for 30% of all operations, while our
incorporation of Unibanco’s 1,000-branch
19.1 million registered Internet Banking clients performed two billion
network into the Itaú platform – the brand that
operations during the year.
will continue in the sector. The operation will
require investments of R$580 million, including
We modernized the navigation platform of our domestic ATM network,
expenditure on works, equipment and materials.
making it even more simple and intuitive. This measure is consistent with
We expect to integrate an average of about 150
our ongoing process of technology growth to facilitate customer service.
branches each month.
In 2009 our Information Technology (IT) area reformulated its working
In addition to performing these adjustments
methods to reduce systems development time, increase the availability
efficiently to maintain excellence in service and
of services, facilitate development of future architecture, align itself
quality of banking services, we face the highly
even further with the business and stimulate innovation. The rapid
unique challenge of bringing to the Itaú brand
integration of the ATM network is a result of changes implemented
the integration of operations of two financial
over the years. We expect even more significant growth in 2010, as the
institutions that have merged and gained scale.
integration process continues.
Our ongoing changes will not be restricted to
creating a new layout of the branch network,
which was also designed to give more modernity
and greater visibility in the urban landscape. The
greatest concern in converting the Unibanco
branches to Itaú’s systems is ensuring not only the
modernization of facilities, but preserving a close
relationship with our customers and the quality of
banking services.
49
Business
• Branches
• Consumer Credit
• Itaucred
With the integration of our
operations, we will continue to be a
leader in the capital markets.
Consumer Credit
Credit Cards
Change of strategy
Consumer credit represents 40% of all loans
We are the domestic credit cards leader,
In 2009 we wound down the activities
granted by the Bank. Despite the credit crisis
with a 37.5% market share, equivalent to
of our Taií and Fininvest consumer
that marked the year 2009, we maintained our
a turnover of R$85 billion generated by 52
credit companies and closed all 389
27% market share, a performance that resulted
million cards in circulation. The integration
outlets in the network. As part of the
primarily from debt renegotiation policy
of our operations, which should be
integration process we are reorganizing
changes implemented in the fourth quarter of
completed in the first half of 2010,
our operations in this segment, and
2008. Forecasts indicate that consumer lending
will consolidate Itaucard, Unicard and
these activities will now fall under
will play a prominent role in the Brazilian
Hipercard, creating the largest credit card
Financeira Itaú CBD (FIC) and Financeira
economy in 2010. Our personal loan portfolio
issuer in the country. Currently we have
Americanas Itaú (FAI).
reached R$103.1 billion in 2009, up 10.7% from
23.4 million account and non-account
2008, and may grow another 20% to 25% next
holders who use Itaucard and Unicard
In 2010 we will step up efforts to secure
year, while mortgage lending analyses reveal
credit cards.
other partnerships similar to those
optimistic growth projections of about 20% to
we have established with the Lojas
25% for the same period.
Americanas, Marisa, Magazine Luiza,
As in other areas of the Organization,
the main challenge with credit cards
CBD and Ponto Frio retail chains, and
On another front we will continue to seek out
is to ensure comprehensive customer
Vivo, a mobile telephone carrier. In
partnerships with large retailers in 2010. In 2009
satisfaction. Accordingly, in 2009 we
2009 we established more than 300
this sector added new sales outlets to distribute
maintained our focus on five strategic
new partnerships.
financial products and services offered by the
objectives: integration; guaranteed
Bank, accounting for more than 17 million
budget and results; ensuring the quality
clients throughout Brazil.
of data processing during the integration;
maintaining market share; and principally,
building a strategy for improving our
excellence in providing services to clients.
The major change in card operations
in 2009 was due to a general review of
50
Credit Cards which transfer funds to social organizations and charities
In 2009 we offered three ways for our customers to use their credit cards to make donations to institutions linked to environmental
conservation, child and adolescent rights and helping the disabled.
When they receive one of our socio-environmental cards – Aqualung Unicard, Greenpeace Unicard and Abrinq Foundation Unicard customers make a monthly donation. The value of the transfer varies according to each card, and totaled R$203,000 during the year.
Through Hipercard, clients can authorize a debit donation to AACD, a charity for handicapped children and young people. In 2009
donations from this card totaled R$3 million.
The Always Present Program is optional for Itaucard MasterCard ® International, Visa Itaucard International, Gold Mastercard® and
Visa Gold Itaucard customers, allowing them to donate to institutions that are part of our “catalogue”.
Card/Program
Charities Benefited
Aqualung Unicard
Instituto Ecológico Aqualing, which promotes environmental education and preservation.
Greenpeace Unicard
Greenpeace, which works toward environmental preservation.
Fundação Abrinq Unicard
Fundação Abrinq, which works to improve the quality of life of children and adolescents.
Hipercard
AACD, which works with disabled children and adolescents.
Always Present Program
Doctors of Joy, Growing up in the Country, Create, Bem TV, FUMDHAM, Friends of the Earth, Aqualung,
Fundação Abrinq, Hope House, Abdim, Carpe Diem and Unicef.
University Student Credit
products, policies and procedures – more
We have a special line of credit to fund
Specialized Network
than 200 actions were put in place - to
undergraduates in partner educational
Itaú Unibanco University Student Credit
improve everything from processes to
institutions. This facilitates the access
is available for 73 private educational
transparency in customer relations. Our
of young low-income people to
institutions, spread across 213 campuses in
team’s key accomplishments included
higher education. Students have the
23 states. Students can apply at the schools
reformatting the billing statement, which
opportunity to complete their studies
themselves, which are supported by a
cleared up items that previously generated
while paying approximately half the
network of 171 bank branches in the cities
customer questions; changes in the
monthly fee, with the remainder to be
where the schools are located, and whose
customer service script to reduce response
paid after graduation. We offer these
staff are specially trained to provide this
time; simplification of the authorization
loans at 7% to 8% per year, a level below
product’s services.
policy, which reduced the number of
the cost of the Central Bank lending rate
calls to the call centre, and changing the
and far below prevailing market rates,
Payroll Advance Loans
process to replace cards (read more in the
which range from 15% to 25% a year.
We maintained our goal of growing
Relationships/Clients section of this Report).
without losing profitability in payroll
By year-end over 5,000 people in 23
advance loans for private sector workers,
Redecard
states were registered in the program,
civil servants and pensioners.
We own 50% of Redecard, a company
accounting for total assets of R$22.5
offering multi-branded credit, debit and
million. Most of these people belong
benefit cards, and which is a leader in
to families whose parents did not
of portfolios acquired from other financial
the domestic payment cards market.
attend university, while two-thirds of
institutions, based on Central Bank Circulars
In 2009 the number of credit and debit
the families who benefit earn up to five
3407, 3411 and 3414, which altered the
card transactions through Redecard grew
times the monthly minimum salary,
regulations to facilitate transactions between
18.2%, reaching R$148 billion. During
which demonstrates the program’s
the banks. At December 31 the portfolio
the year it accredited 342,000 new
potential for social transformation. In
amounted to R$6 billion, down 6.4% from 2008.
establishments, allowing the availability of
2010 we expect to reach up to 12,000
equipment for electronic transactions to
young people for a total benefit value of
rise 11% about 987,000 units.
R$50 million.
In 2009 we consolidated the integration
51
Business
• Branches
• Consumer Credit
• Itaucred
Encouraging Microcredit
In 2009 microcredit made strides in
The Bank’s microcredit activities are conducted
developing a sustainable business
on three fronts:
model. A series of meetings with
employees, stakeholders and experts
• Microinvest - offers manufacturing microcredit
on the eight themes in the Essence of
to informal micro-entrepreneurs in low-
Sustainability, including microcredit,
income communities. In 2009 the service was
yielded important information for
offered in two large communities: Rocinha in
improving our actions in the industry
Rio de Janeiro, and Paraisópolis in São Paulo;
(read more in the Sustainability Vision
• granting of credit lines to civil society
organizations of public interest (Oscips)
The process of working closer with the
registered with the National Program
general public and the government allowed
of Manufacturing Microcredit (PNMPO).
us to identify at least three key demands: make
Under this model the evaluation of micro-
microfinance products more available; make
entrepreneur credit is carried out directly by
clients and the general public more aware of
the Oscips; and
our activities; and reach a scale commensurate
with our aspirations. Microcredit is also among
our priorities for 2010.
• providing microcredit to low-income account
holders through the branch network,
eliminating the need for these customers to
show how the loan will be used. This is a low
interest personal loan provided in installments
of up to R$1,000.
52
The Bank has strengthened its strategy to develop
partnerships which make it easier to make
special loans to micro-entrepreneurs, a group
which typically faces difficult access to traditional
financing lines.
In Essence
Microfinance
We work on three fronts...
...in lending money to micro-entrepreneurs who
have difficulty accessing traditional financing lines:
making direct loans (manufacturing microcredit);
partnerships with civil society organizations
(Oscips) that operate as microfinance institutions
in disadvantaged communities; and microcredit to
low-income account holders.
53
Business
• Branches
• Consumer Credit
• Itaucred
Microinvest
In the manufacturing microcredit segment
To accelerate the growth of the portfolio
Financing
Microcredit Institutions
we offer financing to formal and informal
over the next three years, Microinvest has
Itaú Unibanco also uses microcredit in
entrepreneurs through Microinvest.
implemented new projects to standardize
new business opportunities, being Brazil’s
Created in October 2003, Microinvest is a
flow and procedures, and establish an
only privately-controlled bank to provide
partnership with the International Finance
internal audit structure for processes.
a specific line of funding for civil society
Corporation (IFC), the World Bank’s arm
that finances private sector projects.
organizations of public interest (Oscips).
Microinvest currently has 110 employees,
including a field team of 70 agents and
This strategy has allowed us to strengthen
The company maintains a belief in a
eight micro supervisors. The agents
a still underdeveloped sector in Brazil,
broad-based granting of financial services
evaluate the ability of micro-entrepreneurs
one which is fundamental for successful
to low-income residents through a model
to make their loan payments, as well as
entrepreneurship: namely, microfinance
that combines close contact with the
the impact these loans will have on their
institutions which serve those who form
client - typical in the most successful
activities. They also advise clients on general
the base of the social pyramid. We seek
programs in Asia and Eastern Europe - with
financial matters.
to expand these partnerships because
state of the art information technology
microfinance institutions, without this
tools. This allows the demographic
Since beginning its operations
support, cannot reach all the communities
information acquired by the field teams
Microinvest has made over 24 million
needing this type of financial service.
to be added to the communication
loans, equivalent to R$72 million, with
facilities and knowledge management
interest rates ranging from 2.8% to 4%
In 2009 this line of financing grew 125% from
brought about by technological advances,
per month. In 2009 it made 3,778 loans,
R$8 million to R$18 million, and we currently
especially in the use of smart phones and
totalling R$13 million. The focus of the
are working with nine Oscips.
statistical treatment of the data collected.
loans is on informal urban entrepreneurs
located primarily in the metropolitan
In 2009 we implemented a new lending
areas of São Paulo, Rio de Janeiro and Rio
model developed with technical
Grande do Sul States.
cooperation from CGAP, a World Bank
organization. Additionally, through an
For micro-entrepreneurs Microinvest
agreement signed with the Inter-American
created the Financial Education Program in
Development Bank (IDB), Microinvest
2008, the scope of which was expanded in
has developed projects to strengthen its
2009. Microcredit personnel who act as an
team and the implementation of good
important agent in educating customers on
microfinance practices. The combination
the responsible use of credit now have a special
of these efforts has improved the quality
training program to help them better perform
of the portfolio and loan repayments.
their customer relations functions.
54
The construction industry is
one of our priorities in 2010.
The first step to satisfying our
customers is knowing their needs
and necessities.
Itaucred
Vehicles
Consórcios
Mortgages
Itaú Unibanco’s vehicle loans sector
As a result of the merger, in 2009 we created
Mortgage lending is booming in Brazil, despite
performed well in 2009, in spite of the
a new business division for the Consórcio
setbacks caused by the global economic
economic crisis and consequent increase
area, which includes Itaú Consórcio
crisis, particularly in 2009. Given the optimistic
in default levels. To confront this adverse
Administradora and Administradora
forecasts for growth in coming years, the
situation, the area focused its attention
de Consórcio Fiat, in partnership with
sector represents a priority for the Bank, and
on improving lending processes, which
automobile manufacturer Fiat. The operations
we are preparing to operate on a large scale to
have become more efficient, and the
of these two management companies are in
provide financial support to the development
renegotiation of debts. With these measures
the process of becoming unified so they can
of construction in Brazil.
in place we expect that by mid-2010
maintain the best practices of each, ensuring
payments in arrears for more than 90 days
better savings for the Organization and the
We adopted several innovations in 2009,
will return to their pre-crisis levels.
most comprehensive range of products for
including the separate pricing of loans for
consórcio members.
individuals, which now includes each client’s
credit profile and operation before setting
The result of these actions led to a drop
in default rates and helped us continue to
Unique to Brazil, consórcios are groups of
interest rates, and reducing the number of
lead the domestic vehicle financing market,
consumers who pool their resources so they
documents needed to grant a loan to business
with a loan portfolio of approximately
may each purchase certain goods under
people and end users. These initiatives have
R$51.3 billion, up 4% from 2008. Total loans
beneficial conditions. These groups and their
resulted in higher gains because they give us
for financing and leasing + transactions
funds are managed by the Bank.
better support conditions to conduct business,
and make the financing process easier.
totalled R$24.8 billion.
The outlook for 2010 is positive, even for the
property consórcio, which should grow more
than 10%. In 2009 we recorded a total of
85,195 shares sold.
55
Business
• Branches
• Consumer Credit
• Itaucred
New Rules
Consistent with industry best practices and
Once the risk is identified, the operation will
our Corporate Sustainability Policy, as of 2010
be subjected to detailed analysis of socio-
we will adopt a new Socio-environmental
environmental risk. Based on survey results,
Policy for property loans to commercial clients
receiving a loan may require resolving the
and construction companies. This initiative
identified risks, or be subject to a new approval,
covers 100% of new loans, estimated at
or even be denied. The same results may
about R$6 billion. Our goal is to assess the
occur during the time period for releasing the
level of socio-environmental risk involved
financing monies.
in financing and implement environmental
responsibility practices in the company and
This policy also provides for a specific
the development project.
clause in the Financing Plan contracts to
ensure they comply with Brazil’s National
The evaluation will be conducted using
Environmental Policy (Decree Law
three online questionnaires to facilitate the
99274/1990 and 9605/1998), in addition
process and streamline the evaluation and
to meeting certain requirements of the
response to the client. We expect that by the
Federal Constitution. If the company does
end of 2010, 30% of the current portfolio will be
not comply with this legislation, we may
assessed under this new policy.
terminate the contract or liquidate it ahead
of schedule.
The new rules will apply to all funding for the
construction of residential and/or commercial
properties (Financing Plan) in Brazil.
56
In pensions, our priorities are to offer financial
consulting to clients and present pension plans
as a complement to their financial portfolios.
R$17 million
was the value of our environmental insurance premiums at the
end of 2009. There is no similar product on the Brazilian market.
Insurance, Pensions and Capitalization
In 2009 we made a series of changes in
In health insurance we sold 100% of Unibanco
our insurance business. The area was
Saúde Seguradora to Tempo Participações and
restructured to meet diverse market
are now awaiting final approval of the deal
sectors, without losing focus on customer
from the National Health Agency (ANS). In the
satisfaction and risk management. The
high risk segment we purchased the XL Capital
changes were designed to consolidate
group’s share, allowing us to maintain the service
an integrated operation that operates in
structure for large industrial and commercial
a highly competitive market which offers
clients, which involves, among other projects,
great and immediate growth potential.
construction, chemicals and petrochemicals,
energy and infrastructure.
Due to our splitting of the Itauseg and Itaú
Seguros Auto e Residência S.A. (Isar) portfolios
The restructuring of our insurance area also
in November, the auto and residential
covered the December sale of the 14.025%
segments no longer form part of Itaú
shareholding we held in Allianz Seguros S.A., a
Unibanco Holding S.A.’s consolidated results.
Brazilian subsidiary of German insurer Allianz, for
As well, the association with Porto Seguro,
R$109 million.
announced in August, led to the creation of
Porto Seguro Itaú Unibanco Participações
Net income from insurance, pensions and
(Psiupar), which now has 28% of all auto
capitalization reached R$3.9 billion in 2009, while
insurance sales in Brazil. Currently, Itaú
technical provisions totalled R$51.4 billion at
Unibanco Holding S.A. owns 43% of Psiupar
year-end, a figure that makes us market leaders
and indirectly has 30% of Porto Seguro S.A.
in a number of sectors.
57
Business
• Branches
• Consumer Credit
• Itaucred
Capitalization
Insurance by iPhone
To meet this goal we adopted a new
Itaú and Unibanco’s capitalization areas
Auto insurance customers can now call for 24-
management tool which has allowed the
were integrated quickly and the products
hour assistance using their iPhone. Introduced in
commercial area to better identify client
of the two institutions were maintained.
early 2009, this service allows insurers to use GPS
needs regarding pension products. This
Capitalization is an investment vehicle
to monitor the route of the assistant sent to help,
measure, coupled with the reformulation
unique to the Brazilian market, combining
including location and expected arrival time.
of the product range we offer, resulted
the features of an annuity with a bonus
in increased sales and record revenues in
component. In 2009 sales reached
Pensions
the corporate plans sector, despite the
approximately R$1.8 billion, with technical
We reached approximately R$40 billion in
recession caused by the economic crisis.
reserves of around R$2.3 billion. A total of
6,085 clients drew bonus earnings in 2009,
total pension reserves, including plans for
individuals and corporations. Individual
Our pensions portfolio ended the year
from a total pool of R$41.1 million.
pension plans were transferred to the Wealth
with approximately R$43.2 billion in
Management & Services area. The priority is
reserves, an increase of 24.4% over 2008.
We occupy third place in the market,
to provide financial consulting to clients and
In the supplementary corporate pension
helped by sales of our socio-environmental
present private pension plans as a complement
plans sector, even with the economic
plans, which donate part of their revenues
to their financial portfolios, as they bring long-
downturn, we achieved record revenues
to groups such as the Disabled Children’s
term advantages in the form of tax deductions.
of R$9.6 billion.
Assistance Association (AACD), the United
Nations Children’s Fund (UNICEF) and the
World Wildlife Fund (WWF).
Established in 2007, our partnership with
AACD helps this charity to treat and care for
handicapped children. In 2009 the AACD
received over R$3 million from Itaú Unibanco.
58
In service
to companies, we focused our efforts on providing financial
and management consulting to strengthen our relationship
with this client segment.
Garantech
Garantech, a subsidiary of Itaú Unibanco Holding
Climate Impact
S.A. which acts as a principal partner with retail
Insurers treat climate change as an increasing risk factor for their
chains in Brazil, maintained its leading position
operations due to potential losses that may be caused by hurricanes,
in the extended warranty sector, with a 65.5%
floods, droughts, earthquakes and other weather events.
market share.
Given these conditions, our strategy is to create solutions and
The company stepped up its communications
products to help our clients protect themselves from risks brought
with clients to make this type of insurance,
on by climate change, and provide advice on changing their
still considered new in Brazil, as popular as it
processes to reduce any environmental harm they cause.
has become in the United States. Their policies
extend the manufacturer’s warranty for product
Environmental Insurance
lines in white and brown goods - refrigerators,
In 2009 we continued to be the only company in the industry to offer
freezers, stoves and other household appliances.
civil liability insurance for damage from environmental pollution.
This product was launched in 2005 by Unibanco to meet the needs
Garantech was one of the top companies
of companies concerned with the impacts of their operations,
at the 2009 Abrasa Awards, winning in four
not only in the communities where they operate, but also for the
categories: Best in Extended Warranty Insurance
environment in general. Environmental insurance ended the year
for the sixth consecutive year; Executive of the
with premiums of R$17 million. In 2010 Itaú Unibanco is preparing
Year; Network Inspector; and Gold Case, for its
to face a more competitive market, after the entry of
“Sustainability - Garantech working so the dream
new competitors.
of a green future can come true”, in recognition
of the company’s efforts to promote projects
and follow principles that ensure environmental
conservation. The Sustainable Guarantee
program, for example, is designed to reduce
environmental impact by promoting the proper
collection and disposal of electronic equipment.
59
Business
• Branches
• Consumer Credit
• Itaucred
Small and Medium-sized Companies
Our operation with small and medium-sized
years, in a scenario where the economic
employees involved in the credit approval
companies (PMEs) performed very well
climate is more conducive to increased
process to meet the analysis criteria of
in 2009, obtaining the best result in the
production and services, coupled with the
the Socio-environmental Risk Policy. The
companies sector, despite uncertainties
formalization process that small and middle
team will dedicate itself to new business
caused by the global financial crisis and a
market companies have been undergoing.
opportunities which have been identified
record increase in defaults. We faced the
after analyzing over 1,800 companies.
period of economic downturn without
In 2010 the corporate sector will remain
reducing our support to the manufacturing
a major priority for the Bank, as much of
We also created specific training programs
sector, job creation or improving our
the credit expansion will be for small and
to make employees become multipliers of
relationship model. We started servicing our
medium-sized companies. With growth
our corporate culture in their relationships
commercial customers in a more personal
prospects of 25% in the loan portfolio in
with customers, sustainability-related
and specialized manner by focusing on
Brazil, which would raise this segment’s
groups and the general public. This
financial and management consulting.
share to over 45% of the country’s GDP, we
initiative covers everything from programs
plan to grow 21% above the market.
like the responsible use of money and
the processes that facilitate responsible
We gained 246,000 new
commercial clients in 2009, up 41% from
Socio-environmental Training
lending, to initiatives that educate
2008, and ended the year with more than
Staff in the commercial and credit areas
stakeholders on the Bank’s policy of (re)
844,000 companies in the portfolio, while
received distance training in 2009 to
investing profits.
in the same period loans increased 13.7%
help them disseminate our Corporate
to R$42.5 billion. The most popular credit
Credit Socio-environmental Risk Policy
Innovations
lines were for cash flow and long-term
and present the flow process of Socio-
To raise awareness among corporate clients
environmental Risk Analysis in Credit
on their legal responsibilities to environmental
Decisions. In the first phase 1,985
issues, in 2009 we launched the “Sustainability
employees were involved, 830 of whom
Counter.” This project received widespread
have now been trained.
support from clients and helped them think of
products such as Finame, leasing
+
and
BNDES financing.
The average growth rate achieved by the
ways to help reduce greenhouse gas emissions
Bank in the companies sector was 20%
above the market average. We expect the
In 2010 we will continue our socio-
(GHG) and what role they could play with
sector to reflect solid growth in coming
environmental training, helping all
respect to climate change.
60
The small and medium-sized company segment
grew substantially in 2009, and the outlook for
2010 continues to be positive.
With each digital signature forex operation
Incentives for Sustainable Management
conducted through the Bankline service, the
We offer the market products and services that help business management be focused
Sustainability Counter shows clients the amount
on sustainability, guiding corporate clients to consider their economic, social and
of paper saved and the amount of carbon
environmental scope.
dioxide (CO2) that was not emitted into the
atmosphere. In 2010 we want to extend digital
We also created a guide for managers which covers the sustainability aspects of
signature operations to other products and
products offered to corporate clients, plus new business opportunities. As well as
make the Counter an increasingly popular tool.
increasing the number of employees trained in corporate sustainability, we hope to
develop and implement projects that bring together the expertise of the Organization’s
On the same lines as the Sustainability Counter,
various areas, and enhance our ability to service the corporate sector by focusing on
we have spared no efforts to encourage the use
socio-environmental issues.
of Authorized Direct Debit (DDA), an innovative
payment method adopted throughout the
In 2009 we also developed communications specifically designed for clients,
financial system. The service, which is widely
which emphasized sustainable business management and addressed the issues of
accepted, allows all bills and accounts to be
sustainability, financial and environmental management and climate change.
paid electronically through the client’s bank.
This measure avoids the use of tons of paper,
Another initiative was the revision of the Products Evaluation Form (FAP), which now
as the physical bill is no longer issued. It also
includes questions about sustainability. For 2010 the goal is to analyze all our products
reduces line-ups in branches and greater
and processes related to our operations in the corporate sector to ensure they have a
security when paying bills, and is much faster
sustainability component.
due to less time needed to issue a bill. Thanks
to our ongoing investments in advanced
In 2010 we also seek to develop capacity-building activities for managers. This will help
technology we will offer this service to all
make Itaú Unibanco a standard in sustainable business in this segment, and contribute
clients beginning in October.
to more accountable corporate management among clients and non-clients.
61
Business
R$1.7 billion
was Itaú BBA’s net profit in 2009.
Wholesale and investment
bank operations have been
consolidated into Itaú BBA.
Wholesale and Investment Bank
With the integration of financial operations,
The consequences were more visible in
Unibanco’s Wholesale and Investment
the first half of 2009, mainly because of the
Bank has been consolidated into Itaú BBA.
economic downturn and lower export and
In this new structure the customer base
investment levels. Under these conditions the
was divided into two segments: Corporate,
Bank readjusted the debt profile of its clients
which includes conglomerates with annual
by evaluating their portfolio risk level. The
revenues of R$150 million to R$500 million,
effectiveness of Itaú BBA’s risk management
and Large Corporate, for groups with
was essential to get through the crisis with no
revenues of over R$500 million. Itaú BBA
further difficulties.
has strengthened its leadership position
in the market, thanks to a highly qualified
As an investment bank, Itaú BBA maintained
team that is structured to meet the specific
its leadership position for the sixth consecutive
requirements of each client sector.
year in distribution of fixed income, as ranked
by the Brazilian Association of Financial
In 2009 Itaú BBA’s net income reached R$1.7
and Capital Markets Institutions (Anbima).
billion, down 2.4% from 2008. This slightly
Debenture and promissory note operations in
lower result was due primarily to the impact
which the Bank participated totalled R$17.8
of providing R$1.15 billion against doubtful
billion, while securitization operations added a
loan losses during the year, R$682 million
further R$1.4 billion. Itaú BBA also reached the
higher than in 2008. These reserves, however,
number one position in the international debt
were partially offset by an increase of 14.8% in
issues ranking, acting as a Bookrunner
income from clients, which amounted to just
deals totalling US$5 billion, including an issue
over R$4 billion.
by a foreign company.
The global financial crisis had a major effect
on the operations of the Wholesale Bank.
62
+
on
• Branches
• Consumer Credit
• Itaucred
In equity issues Itaú BBA acted as Bookrunner +
for IPO
+
and Follow-on
+
totalling R$14.2
The process to integrate the Treasury
operations was successful. The task of unifying
billion. In number of transactions we ranked
the treasuries of the three banks (Itaú,
first, having participated in 14 out of the 24
Unibanco and Itaú BBA) required considerable
issues carried out during 2009.
effort and had impacts on all areas of the
Bank. On the other hand, the mitigation of
Itaú BBA also participated in 33% of fixed
operational and financial risks led to gains
income and 58% of equity issues. After an
in efficiency and control which are already
abrupt halt due to the financial crisis, the
evident in the 2009 financial results.
frequency of issues resumed in the second
half of the year.
Treasury contributed to our consolidated net
earnings with a market financial margin of
Expectations for 2010 are optimistic given
R$5.6 billion in 2009. Despite the international
the volume of investments planned and the
economic crisis, which resulted in high
funds that businesses need as they prepare
volatility and a low appetite for risk, we
to face a growing Brazilian economy. These
managed to buy up depreciated assets.
projects are combined with the increasing
interest in local opportunities among
Other initiatives were adopted with a focus
domestic and foreign investors.
on automated transactions, including online
investing through the Bankline service, the
In this context Itaú BBA’s challenge will be to
development of treasury sales operations in
consolidate and improve its performance in
New York for corporate clients, and the creation
the Corporate sector and maintain its Large
of new products to respond to competition
Corporate positioning in a more competitive
from State and major international banks and
environment.
Brazilian private financial institutions.
+
Bookrunner – Any bank that structures a securities issue by setting the price and inviting other subscribers to participate. It also
structures the order book for debt securities or shares and allocates the securities among the investors.
IPO – Initial public offering, or the first time a company’s shares are offered to the market.
Follow-on – An additional offering of shares, which had been in the control block, after a company conducted a previous share issue.
63
Business
• Branches
• Consumer Credit
• Itaucred
Wealth Management & Services
Asset Management
All our investment products for consumer
At December 31 our Asset Management
and corporate clients fall under the
area had R$226 billion in assets under
responsibility of the new Wealth
administration, as ranked by Anbima.
Management & Services structure, which
We manage or act as an advisor for
brings together Private Banking activities
funds in Brazil and Latin America, and
(with separate local and international
in countries such as South Korea, Chile,
operations), Asset Management, Securities
Argentina, Uruguay, Mexico, Canada,
Brokerage, Consumer Client Investment
Norway, Portugal and Luxembourg.
Products and Services, Capital Markets,
During the period, total assets managed
Internal Control and Compliance plus
abroad exceeded R$18.8 billion.
Domestic and Foreign Institutional Clients.
The structuring of more specialized areas
With this change we have improved
for the management of each type of fund
the integration of products, processes and
also sets the Bank apart, which starts 2010
people, allowing us to maintain our quality
with a differentiated team that is prepared
management of third party assets that
to take advantage of a new growth cycle
differentiates us in the financial market.
in the Brazilian economy. Foreign interest
This integration will also help us improve
soared in the second half of 2009, as the
customer service and offer products that
country has recovered quickly from the
are best suited to each investor profile. In
international economic crisis and enjoys
2009, when the priority was the integration,
a healthy outlook for economic growth in
the Bank was named best fund manager by
coming years.
Exame magazine.
64
In just 30 days
the Bank raised R$2 billion from Japanese investors
who were interested in the Rio Wind Fund, which was
launched in November, 2009.
Sustainable Funds
Itaú Social Excellence Fund
Invests in companies that have differentiated
social responsibility practices. Allocates 50%
of management fees to social projects.
Value: R$365 million
2008: R$242.9 million
We presented some new products in
In November 2009 we launched the Rio
2009, including the launch of the first
Wind Fund, making reference to the
Brazilian investment fund tied to a carbon
Olympics and the Soccer World Cup.
credits index, which raised more than
Investors were found in Japan through
R$170 million. The Itaú Carbon Index
Daiwa Asset Management. In just over
Fund is designed for investors with a
30 days this new investment opportunity
global investment portfolio in Unibanco
raised about R$2 billion from Japanese
or Itaú of at least R$300,000. This initiative
investors seeking a fund consisting of
shows that banks can act effectively in
shares in Brazilian companies.
stimulating the development of this
Corporate Governance Fund
Invests in companies that have differentiated
corporate governance practices.
2008: R$278.9 million
Ecomudança (Eco-change) Fund
Allocates 30% of management fees to support
actions which reduce carbon emissions.
2008: R$135.3 million
Private Social Fund
Donates part of its earnings to educational
and vocational-related social projects.
market and contribute towards combating
In 2009 Unibanco Asset Management
climate change, using their expertise in
followed the Principles for Responsible
the business.
Investment (PRI), which is an initiative
Value: R$2.9 million
2008: R$5.8 million
of a group of 20 institutional investors
Unibanco Sustainability Fund
from 12 countries that have accepted
Invests in companies that are on the
São Paulo Stock Exchange Corporate
Sustainability Index (ISE).
The creation of the Itaú Carbon
Index Fund increased the portfolio of
the UN’s 2005 challenge to develop
products which reflect our concern for
the PRI principles, including several
global warming. Launched in 2007, the
new themes. These principles cover
Itaú Eco-change funds also contribute to
environmental, social and governance
environmental conservation by allocating
criteria and provide a benchmark for
Itaú Carbon Index Fund
30% of their management fees to carbon
achieving better returns on long-term
emission reduction projects developed by
investments and more sustainable
non-governmental organizations (NGOs).
capital markets.
Investment tied to a carbon credits
index. Linked to global efforts to reduce
greenhouse gas emissions.
Value: R$6.8 million
2008: R$3.4 million
65
Business
• Branches
• Consumer Credit
• Itaucred
Voting Policy for
Investment Funds
The Bank has created a policy for exercising
To achieve the goal of being the leading
voting rights in the portfolios of the
Brazil specialist, offering high-quality
investment funds managed by the institution.
analysis and one of the market’s largest
The goal is to establish requirements,
distribution capacities, Itaú Corretora
principles and procedures that govern the
conducted major investments and
company when voting at shareholders’
increased its presence in the international
meetings as a representative of the
market. It has an office in London and a
investment funds under our management.
presence in Dubai and Hong Kong, while
The general principles of the voting policy
the New York office, located on Fifth
include aspects related to the sustainability
Avenue, should open in 2010.
of the business, and are based on three
pillars: act proactively on environmental
Itaú Corretora’s biggest challenge will
preservation, social development and good
be to adopt internationally recognized
corporate governance.
practices to attract investors from around
the world who seek to invest in stock
Itaú Corretora
markets in Brazil, Latin America and
In 2009 Itaú Corretora (the Bank’s
emerging markets in general. One way to
securities brokerage arm) consolidated
create value for these investors is the use
its position in the Brazilian capital market
of advanced technology that allows for
and prepared its expansion into the
electronic or algorithmic trading, in which
international market. The integration of
buy and sell orders are done by computer,
operations was fully consolidated by the
making operations more efficient.
end of the year, giving it the necessary
conditions to seize on the opportunities
Together with Itaú BBA, Itaú Corretora
of Brazil’s growing economy.
also participates actively in various IPOs
and bond issues. Its goal is to become
Latin America’s leading specialist in its
field by 2011.
66
Institutional Clients
Brazil’s positive international image as one of the
During the year we were named Outstanding
most promising investments among emerging
Private Bank - Latin America by the Private Banker
countries has also helped our standing in the
International magazine, which is considered the
foreign market. The institutional client sector
world’s most important award in the wealth
ended the year with 1,538 active accounts (65%
management sector. With more than R$90 billion
Brazilian and 35% foreign) and revenues of
in assets, we are the private banking leader in
R$618 million. We manage R$98 billion in assets,
Brazil and Latin America according to Private
R$18 billion of which comes from clients abroad.
Banker International, and a standard of excellence
for financial managers the world over.
Our segmentation strategy mirrors that of the
world’s largest banks and creates a competitive
Our operations in the United States,
edge for the local market. In the fourth quarter
headquartered in Miami, consolidate our
of 2009, taking advantage of synergies and to
internationalization strategy. Acquisitions
optimize relationships, Brazilian and foreign
of private banking operations in 2007 from
customers began to be serviced within the
BankBoston International in Miami; from
same organizational structure.
BankBoston Trust Company Limited in Nassau;
and from ABN AMRO Bank N.V. in Miami and
Private Bank
Montevideo were important business additions
Itaú Unibanco’s Private Bank operations,
and crucial toward Itaú Private Bank becoming
which manage the assets of high net worth
one of the leaders in the region.
individuals, were organized into local and
international structures in 2009. This measure
Many of the 9,000 clients we gained through
allows greater transparency and agility in
the acquisition of BankBoston and ABN AMRO
asset management, a key differential in light
operations come from other Latin American
of Brazil’s economic recovery.
countries, including Argentina, Chile, Uruguay and
Venezuela. To care for their needs in the form of
information and orientation, Itaú Private Bank has
created specialized structures in these countries.
67
Business
• Branches
• Consumer Credit
• Itaucred
International Market
In the midst of a global economic crisis,
We operate in New York, Grand Cayman,
the merging of Itaú and Unibanco created
Nassau, Lisbon, Madeira, London,
an institution which today occupies a
Luxembourg and Miami. In Asia, where our
prominent position in the international
presence has grown each year, we work
market. The Bank, which is preparing to act
through Itaú Corretora in Singapore, Hong
as a global player, is among the ten largest
Kong and Tokyo. Itaú Corretora was also
financial institutions in the world, based on
the first brokerage firm from a BRIC (Brazil,
rankings by the US firm Bloomberg.
Russia, India and China) country to open an
operations base in Japan.
Our international presence and strength
are demonstrated by a broad network of
Banco Itaú Europa
overseas operations, which allows us to
Banco Itaú Europa (BIE), headquartered in
offer quality support to Brazilian companies
Lisbon, posted net income of €36.6 million
operating in other countries. It is also clear
in 2009, a result 86.8% above the figure
evidence that we are a company with
registered for 2008. The consolidated banking
global objectives.
product reached €135.6 million, up 12.6% in
the period.
We have built our international presence
based on strategically positioned units
BIE is involved in allocating and distributing
in the Americas, Europe and Asia, which
structured finance to corporate clients,
work together in the areas of foreign trade
capital markets, treasury and international
finance, the placement of Eurobonds,
private banking. At December 31, 2009
offers of more sophisticated financial
the Bank registered consolidated assets of
operations (structured notes) and private
nearly €5.1 billion, in line with the amounts
banking operations through Banco Itaú
of December 2008.
Europa Luxembourg.
68
US$56 billion
was the sum of Itaú Unibanco’s asset operations
abroad in 2009.
Brazilians overseas can easily
send remittances and access their
accounts in Brazil.
Southern Cone
Its commercial loan portfolio reached €2.1
Our internationalization strategy begins
The objective for 2010 is to become
billion, and is backed by an asset composition
in Latin America, where we offer a
the leader in Latin America’s financial
primarily consisting of structured loans
network of 188 branches located in
market. To achieve this we have been
typically associated with the financing of
Argentina (81), Chile (70), Paraguay (19)
concentrating our efforts on aligning our
Brazilian exports. In this context BIE operates
and Uruguay (18). In all there are 4,800
culture with all the other countries in the
in line with the dynamic of the Itaú Group’s
employees to serve nearly 700,000
region, a project that involves key areas
market segmentation structure, increasing
clients, with assets of R$18 billion.
of the Bank, including Human Resources,
its corporate and middle market client base
Profits earned by operations in the
Sustainability Policies and Corporative
by offering products specifically structured
region have grown steadily from R$87
Governance.
for the international marketplace and capital
million in 2005 to R$177 million in 2009.
markets, and supporting investments by
Among public and privately-owned
Argentina
European companies in Brazil.
banks, Itaú Unibanco is fourth largest
Banco Itaú Argentina (BIA) will receive
in Uruguay and Paraguay, ninth in Chile
investments of U$20 million in 2010, sufficient for
and sixteenth in Argentina.
the Bank to help it become the leading financial
BIE’s international private banking activity,
institution in Argentina, where we have been
developed by BIE Luxembourg, BIE International
(Miami) and BIE-Bank & Trust (Bahamas), had
At all our branches we focus on
present for 15 years. These investments are to be
nearly US$10 billion in managed assets and
increased earnings and better
made in the area of Information Technology and
approximately US$2.3 billion in customer
operational efficiency. The Latin
on professional training courses.
deposits at year-end.
American operations also function as
test laboratories for our advance on
BIA had a network of 81 branches at the end of
BIE currently has branches in London and
the international market. Accordingly,
the year. The number of clients increased by 7%,
on the island of Madeira, with permanent
specially-skilled employees have been
reaching a total of 250,000 individual account
representatives in Madrid, Paris and Frankfurt,
hired in Brazil and abroad, and are being
holders and 7,800 business accounts, while total
as well as subsidiaries in the Cayman Islands,
trained to implement the concept of
assets reached R$2.1 billion. It also posted a
Luxembourg, Miami and Nassau.
international culture that is starting to
R$1.1 billion credit portfolio, R$1.6 billion in
grow within the Organization.
deposits and R$10 million in net income.
69
Business
• Branches
• Consumer Credit
• Itaucred
Interbanco branch, Paraguay.
Chile
Interbanco has the country’s largest
We plan to open ten new branches in
number of customers, which it segments,
Chile in 2010, taking advantage of the
and is the leader in the supply of products
recovery of the local economy and the
and services. The client portfolio has
prestige that we are building each day,
grown 13%, totalling approximately
demonstrated by being named the Best
220,000 consumer clients and 2,400
Brazilian Company in Chile by the Brazil-
corporate clients, who are served from 25
Chile Chamber of Commerce.
branches and banking services outlets.
At the end of 2009, 70 branches were
At the end of 2009 local operations reached
operating in Chile. The increased number
R$1.9 billion in assets. The credit portfolio was
of clients during the year was due
R$900 million, deposits were R$1.6 billion and
to organic growth. Consumer clients
net income totalled R$91 million.
increased 6% to nearly 85,000, while total
assets reached R$10.7 billion.
Uruguay
We operate in Uruguay through Banco Itaú
The credit portfolio was R$7.7 billion, deposits
Uruguay, which ended 2009 with
totalled R$7 billion and net income was
R$3 billion in assets, and a R$1.2 billion
R$95 million.
credit portfolio. Deposits reached R$2.3
billion, thanks to a 12% rise in the
Paraguay
customer base, which comprises 120,000
We operate in Paraguay through
consumer clients and 9,000 corporate
Interbanco, which is the country’s fourth
clients, who are served from 18 branches.
largest bank. In 2009 it was named by the
70
British magazine Euromoney as the Best
Through Banco Itaú Uruguay we own 100%
Bank in Paraguay, and in 2007, 2008 and
of Unión Capital Afap, a Uruguayan private
2009 was named by the Global Finance
pension company with approximately 195,000
magazine as the country’s Best Bank.
customers and US$858 million in assets under
10 new
branches will be opened in Chile.
175,000
people in Uruguay are Bank
pension customers.
LEARN MORE:
administration, equal to 17% of all pension
This scenario points to an influx of
fund assets in Uruguay.
foreign money into Brazil, so establishing
international partnerships in this segment is
Asian Continent
vital for the success of the business.
We are active in Asia through the operations
of Itaú Corretora, which has offices in Hong
We began investing in Japan in 2006.
Kong, Tokyo and Singapore. We were the
Since then our operations have posted
first securities dealer from a BRIC (Brazil,
significant growth. We currently manage
Russia, India and China) country to establish
R$40 million in Brazilian and Latin
an operational base in Japan. In the Asian
American fixed income and equity funds,
market our financial activities are focused on
which benefit from our management or
sourcing Japanese institutions to invest in
advisory capacities in partnership with
Brazilian assets.
Japanese asset managers.
Read about all the actions undertaken by the
Garantech Sustainable Warranty program by
visiting www.garantech.com.br
Learn about the Bank’s main sustainabilityrelated credit lines in the online version of this
Report at www.itauunibanco.com.br/
For Itaú Unibanco, Asia represents a priority
market that has required investments geared
primarily to sourcing and securing Asian
customers with considerable interest in Brazil,
as shown by the huge demand for our Rio
Wind fund, launched in November.
In 2010 we expect our relationship with
investors on the Asian continent will
increase due to the likelihood of significant
investments in Brazilian infrastructure in
coming years, offshore oil exploration in
the ‘pre-salt’ layer and the hosting of the
Soccer World Cup and Olympic Games.
71
Relationships
• Employees
• Suppliers
• Customers
• Media and Public Relations
• Shareholders
• Environment
Transparency and Ethical Conduct
2009 marked the beginning of building a new culture in the Organization. This challenge
requires us to combine the values of Itaú and Unibanco, which historically have always
maintained a common thread: seeking transparent, ethical and lasting relationships with
their many stakeholders + .
To incorporate stakeholder engagement into our management strategy through an
internationally recognized methodology, in 2006 we adopted and continue to follow
the guidelines of AccountAbility standard 1000 (AA1000) + .
The main groups with whom we engage, as mentioned in our Sustainability Policy, are clients, employees,
shareholders, investors, suppliers, business partners and the general public. The dynamics and goals of the
business areas determine the development of projects to improve and meet the demands of all these groups,
which are gradually integrated into our practices and become part of our culture.
In 2009 we conducted research on our relationship with stakeholders, in conjunction with the UK consultancy firm
AccountAbility. One of the main findings of this analysis concerns the need for engagement to develop a strategic
tool to achieve sustainability-related goals, based on ideals aligned with our priorities. Their recommendation is
that opportunities be created for stakeholders to influence the adoption of initiatives, which, if undertaken as
strategic goals of the Organization, will strengthen our commitment to sustainability.
In tandem with this analysis, Stakeholder Panels were held in 2009 to advance the development of those issues
of greatest importance to the Bank, from the perspective of our different relationship groups. These meetings
resulted in further information for our sustainability strategy, as well as for training and involvement projects
developed by the Commission and by the Sustainability Leaders. The events also allowed us to hear the opinions
of different stakeholders regarding the Organization's practices and their expectations for Bank performance,
based on the Essence of Sustainability, which was included in the 2008 Sustainability Report.
These perceptions must be consolidated and incorporated into the process of improving our products and
services as well as into our own strategy. Additionally, the results of the panels will be used as a basis for planning
in 2010, when the Policy and Essence of Sustainability will be re-evaluated in light of all these considerations, to
consolidate our sustainability strategy.
72
In this Chapter
Itaú Unibanco’s practices with its strategic relationship groups.
• The characteristics of each profile
• Engagement initiatives
• New management programs
• People management guidelines
In Essence
Stakeholder Engagement
As part of our integrated,
comprehensive strategy to mobilize
our different relationship groups and
create awareness among them...
...we held Stakeholder Panels, created the Clients Forum
and extended the powers of the Ombudsman. We also
maintain a website for communication with suppliers,
held sustainability meetings with various public groups
and created the Itaú Sustainable Finance Award.
73
Relationships
• Employees
• Suppliers
• Customers
• Shareholders
• Environment
Employees
Our Greatest Asset
One of our major concerns in 2009 was to
could function collectively. This body of
ensure that the process of consolidating
principles and goals was turned into our
Itaú and Unibanco had the backing and
new Vision, which has been disseminated
support of our employees, and that right
through communication campaigns and
from the start it be based on best people
training and development programs.
management practices. Accordingly,
we have created a specific work group
A sign that we are on the right track
under the responsibility of the People
lies in the fact that in 2009, during the
Committee, which reports directly to the
first year of integrated operations, we
Board of Directors. This group has the
were named by the Great Place to Work
challenge of promoting the consolidation
Institute as one the Best Companies to
of a new corporate culture, which has at
Work for in Brazil, in partnership with
its foundation the values and principles of
Época magazine, the University of São
each of the two institutions that became
Paulo (FIA-USP) Fundação Instituto de
Itaú Unibanco.
Administração (FIA), and Exame and Você
S/A magazines.
In 2009 we were able to progress with the
74
engagement of most of our employees
During the year we implemented a new,
in the integration process. This work
unified and simplified Objectives System
consisted of identifying a set of goals and
designed to achieve greater alignment and
values which reflected the best aspects of
commitment from every employee to help
each bank and how they could be applied
us attain our results. We also introduced a
to the new Organization, as well as what
new labour benefits package.
101,640
employees were on the Bank’s
payroll at the end of 2009.
Itaú Holding Unibanco S.A. Employee Categories, by Function
2008
2009
Management
(Supervisors, Managers and Coordinators)
14,848
14,998
Administration (Junior, Line and Senior)
50,160
53,224
178
200
Trainees
Production (non-commissioned)
Subtotal(*)
Board
Executive Officers
Interns
Apprentices
Total
42,841
33,218
108,027
101,640
48
18
198
194
1,350
1,048
2,371
1,794
111,994
104,694
IncludesstaffwithaCLTcontractandatexternalunits.
(*)
Sustainability Policy
The Sustainability Policy contains the
• apply sustainability criteria to the selection,
In 2009 fixed remuneration for staff, plus their
following guidelines for our employees,
hiring, promotion and dismissal of staff, as
respective charges and benefits, totalled R$8.6
who are a strategic relationship group:
well as during the evaluation of results and
remuneration;
billion, while social benefits for employees
and their dependents reached the equivalent
• promote an inclusive workplace
of R$1.5 billion. Additionally, we invested
environment which values diversity
R$117 million in advancement, training and
and equality;
• ensure adequate working conditions and the
well-being of employees by complying with
occupational health and safety standards; and
development programs.
• develop education programs and
In 2008 we introduced SA8000, an
awareness of sustainability for all
international standard recognized worldwide
managers and employees;
• encourage the responsible use of financial
services through financial education.
and the most applicable to our work
environment. However, in the midst of
changes arising from the merger of Itaú and
Unibanco, plus the renovation of buildings
and branches, which also required employees
to change their work locations, the process
was temporarily put on hold, but should be
resumed in 2010.
75
Relationships
• Employees
• Suppliers
Employees
• Customers
• Shareholders
• Environment
Employees
ItaúUnibancoHoldingEmployees,byRegionand
ExternalUnits.
2008
9,301
Career
2009
Attraction and Retention
South
8,682
South
2008
82,021*
Southeast
* Revised
We seek to ensure, in our daily activities, an
Trainee Program
attractive working environment by adopting
With the support of mentors and executives, we
management practices geared to stimulating
give trainees the opportunity to work in several
the exchange of ideas, teamwork, transparency,
areas of the Bank. In 2009 we registered a record
creativity and meritocracy.
34,287 applicants, of which 87 candidates were
2009
77,128
Southeast
2008
3,911
hired from 487 finalists.
We spare no efforts to retain talented
individuals. One of the most important projects
Corporate Internship Program
developed in 2009 was the People Relocation
Lasting up to two years, this program allows
Program (PRP), which is designed to create
students to complement their academic studies
Midwest
career opportunities for the largest possible
by working in various areas of the Organization.
2009
number of employees. To-date more than
3,656
Midwest
2008
6.228
2,300 experienced employees, who had priority
Special Talent Programs
within internal selection processes, have been
To attract professionals from leading schools to
relocated.
our trainee, training and internship programs,
we participated in nine events at Brazilian
Northeast
To develop and maintain our employees and
universities and also promoted seven events at
2009
attract new candidates, we reformulated our
universities in the U.S. and Europe during 2009.
Northeast
adopt best market practices and simultaneously
International Internship Program
align the desired results with our business
We hire interns from international universities
strategy.
every six months in order to offer students the
5,798
2008
1.188
internal and external recruitment programs to
opportunity to develop projects in our business
North
2009
976
North
Externalunitshad5,400employees
atDecember31,2009.
*
76
Career Opportunities Program (POC)
areas. In 2009, two interns who worked on
This program allows employees to take
projects in the Wealth Management & Services
advantage of job opportunities that arise in the
area were hired from the United States.
Organization.
200 trainees
were working in different areas of the Organization at the end of 2009.
Hiring the Disabled program.
A commitment to diversity.
Summer Job Program
Training activities carried out during 2009
This program is for students who live outside the
included:
city of São Paulo and do not have the time to
invest in an internship during the school year.
Afro-Brazilians
The Afro-Brazilian Training program is a social
inclusion initiative created in 2005 with the
Corporate
main objective of hiring young black university
Approximately R$95 million was invested in
students. To support the program, a training
Development and Training
training programs for employees in 2009.
schedule was developed with 584 hours per
With the challenge of making the merger
Activities included training courses and
student, covering behavioural issues and
between Itaú and Unibanco successful, one
distance learning.
specifications of the banking industry. In 2009,
64 students took part.
of the strategic priorities for development and
training of staff is the search for alternatives
Specifics
so that teams are better prepared to face the
A total of 30,557 employees participated
Training of People with Disabilities
challenges inherent to a new Organization.
in specific training for business, support,
In 2009 more than 25,000 employees
Accordingly, a Business School was inaugurated
infrastructure and administration.
participated in training courses to learn how
in 2009, whose main task is to propagate values
to serve people with disabilities, including
and guidelines for business, based on our new
Graduation
training programs with certification in Brazilian
corporate culture and by focusing on training
A total of 4,399 employees participated
Sign Language. Another 116 employees with
employees in the areas of business and the
in academic studies or development
disabilities participated in special training
development of new leaders.
programs including undergraduate courses,
sessions that specifically addressed behavioural
graduate studies, MBA (in-company),
issues and themes such as communication and
During 2009 the Business School ran a Strategic
foreign language classes and Masters
safety. These courses provided a total of 40,000
Management and Business program for senior
degrees (including abroad).
hours of training.
executives, with modules covering issues such
as strategic thought, change management and
Anbima (formerly Anbid)
coaching. Leaders of business units located
In 2009 more than 2,900 employees were
outside of Brazil also participated in the initiative,
certified by the Brazilian Association of
as a way to ensure that the targets set for
Financial and Capital Markets Institutions,
successful integration are achieved in every area
which entitles them to begin or specialize in
where we operate.
this industry as a career.
77
Relationships
• Employees
• Suppliers
Employees
• Customers
• Shareholders
• Environment
Investments in training motivate
employees and make us more
competitive.
Training
Performance and Feedback
AverageHoursofTraining,perEmployee.
Through individual tools such as coaching
mentoring
2008
9.33
+
and assessment
+
+
and professional attitudes of regional managers
of international units, executive officers and
leaders in the development of their skills,
directors. In its first stage all vice presidents and
abilities and attitudes, with the goal of
executive directors participated in the process,
2009
accelerating learning, consolidating their
which evaluated a group of 116 leaders.
Executive
sustainability.
Executive
4.70
professional roles and promoting business
Remuneration
In 2009 every employee became eligible for
2008
20.97
Management
2009
24.76
Management
2008
21.37
Administration
2009
23.02
Administration
2008
15.62
Production
2009
15.45
Production
In 2009 we developed a new and unique model
performance-related profit sharing. In the
for performance evaluation: the Itaú Unibanco
evaluation process, conducted from December
System of Performance Goals. The objective
2009 to January 2010, the goals were evaluated
is to simplify the evaluation of employee
and the best performances of the year were
performance by offering them continuous
presented to human resources committees. The
orientation, while the challenge is to achieve
best performances are recognized by means
results and encourage high performance from
of the Compensation for High Performance
our employees.
Program. This initiative seeks to ensure the
practice of meritocracy by acknowledging
With the adoption of the Itaú Unibanco
professionals who overcome challenges and
System of Performance Goals, all employees
show their commitment to our strategic
now participate in a performance evaluation
objectives.
process. Out of a total of 93,168 employees,
approximately 35,000 are covered by the new
methodology, while the rest are evaluated
by means of goals programs that address the
specific nature of their area or business. In 2009
we also created Strategic Planning for People
(PEP), which consists of a structured process
for objectively identifying talents, based on
a survey and analysis of performance results
78
,
, we support
Occupational Health and Safety Indicators
Injuries
2008
2009
801
1,052
261,000,301
254,835,692
Injury rate
0.61
0.83
To maintain a healthy environment for our
Work-related
Illness
2008
2009
employees, we invest in the adoption of new
Total cases
benefits and initiatives that preserve workplace
Hours worked
health and safety and promote quality of life.
Total cases
Wellness
Hours worked
632
798
261,000,301
254,835,692
Illness rate
0.48
0.62
New Benefits
Work days lost
2008
2009
In October 2009 we announced a new increased
Total days
324,951
371,852
Hours worked
261,000,301
254,835,692
Days lost rate
249.00
291.84
benefits package. Aligned with the integration
process, the design sought to harmonize and
readjust various practices, identify best opportunities
for synergy and consolidate them fairly to
Absenteeism
2008
2009
offer differentiated benefits to employees. The
Work days lost
103,153
128,075
innovations we adopted include: charging special
Days worked in
same period
12,535,638
13,639,975
0.82
0.94
banking fees, pension funds, membership in the
Absence rate
Itaú Unibanco Club, the Be OK personal support
program, life insurance and various partnerships
with companies offering unique advantages to
every Bank employee.
We also offered to employees a new medical
insurance plan, with new terms for operating and
tracking, so now everyone has access to better
standards of medical and dental care provided by a
Note:in2009therewasasignificantincreaseinabsenteeismcausedbyrespiratorydiseasesduetothespreadoftheH1N1virus.The
highestpercentageofabsenteeismwascausedbymuscle,boneandconnectivetissuediseases(23.3%),followedbyinstancesof
mentalandbehaviouraldisorders(14%).However,thesesamegroupsofdisordersremainedstablebetween2007and2009.
Companiescovered:Grupo Itaú –BancoItaúS.A.,ItaúCorretoradeValoresS.A.,ItaúPrevidênciaeSegurosS.A.,ItaúLeasing,BancoFiatS.A,
BancoItaúHoldingFinanceiraS.A,Isar–ItaúSeguroseResidência,FinanceiraItaúCDBCréd.Financ.eInvest.,FináustriaAsses.Adm.EServs.
Créd.,BancoItaucredFinanciamentosS.A.,FinaPromoçãoeServiçosS.A.,BancoFiatS.A.,TrishopPromoçãoeServiçosLtda.,FicPromotorade
VendasLtda.,Facilita,Fai,BancoItaúCartões,TotalServiçosPromoçãoeNegóciosLtda.,ItaúSegurosS.A.,ItausegSaúdeS.A.,OrbitallServs.
Proces.InformaçõesCom.Ltda.,ItaúAdm.ConsórcioItaúSegurosS.A.,Kinea,BancoItaucardS.A.,IcarrosLtda.,Dtvm,Pró-ImóveleItaúXlSeguros
CorporativosS.A.Grupo Unibanco–Unibanco-UniãodeBancosBrasileirosS.A.,MegabonusNegóciosVarejoLtda.,Uam–AssessoriaeGestãode
InvestLtda.,ItaúSegurosS.A.(formerlyUnibancoAigSegurosS/A),Cia.ItaúdeCapitalização(formerlyUnibancoCia.deCapitalização),Banorte,
UnibancoServiçosdeInvestimentoLtda.,HipercardBancoMúltiploS.A.,MarcepCorretagemdeSegurosLtda.,UnibancoAigSaúdeSeguradoraS/A,
LuizacredSASoc.deCréd.Fin.Invest.,ProvarNegóciosdeVarejoLtda.,UnicardBancoMúltiploSA(75),InvestshopCorret.Val.Mob.C/SA,Unicard
BancoMúltiploSA(80),UnibancoAigVidaePrevidenciaS/A,UnibancoProj.eConsult.deInvest.Ltda.,Prom.deVen.ePre.deSer.Ltda.,Unibanco
ConsultoriadeInvest.Ltda.,MaxFácilPromotoradeVendas,UnibancoCons.Invest.InvestLtda.,DibensLeasingS/A-ArrendamentoMercantil.
(*)
wide, accredited network which includes the best
+
Coaching – training activity for professional development.
Mentoring – monitoring the activities of employees by a tutor.
Assessment – methodology used to evaluate the skills of employees.
79
Relationships
• Employees
• Suppliers
Employees
• Customers
• Shareholders
• Environment
Workplace Environment
doctors, hospitals and clinics. All benefits
With innovative processes and a set of actions
areas where we need to improve. The results
are extended to legal dependents and
oriented towards the construction of collective
help us take the actions necessary to ensure
household members.
goals, during the first year of the merger we strove
the continuous improvement of processes of
to maintain an attractive and stimulating working
people management and satisfaction levels
Quality of Life, Health
and Safety at Work
environment for all our employees.
of employees. In this case, 79% of employees
In terms of health and quality of life, Itaú
Organizational Culture
2010, in the qualitative stage, the project will
Unibanco provides numerous activities for
In January 2009 we concluded the planning for
continue with the dissemination of results and
recreation, culture and health, including: walking,
an analysis of the corporate culture which has
development of action plans. Managers will
massage, fitness, nutrition education, a library,
resulted from the merger of Itaú and Unibanco.
receive contributions from working groups
sports, choir, pre-retirement programs, sexually
The aim is to develop a work plan to consolidate
and a practical guide to assist in the analysis of
transmitted disease (STD/AIDS) prevention,
the Organization’s new practices. In the following
results and in building action plans.
vaccination against HPV and influenza, anti-
months the analysis was carried out, which
hypertension and stress (Body and Mind Space),
included a quantitative stage (cultural survey
Sustainable Ideas
medical care, nutrition for pregnant women and
and Values survey), involving approximately
Introduced in March 2009, the Sustainable Ideas
many others. Programs specifically for health
16,000 people, and a qualitative stage, with
Bank was created to encourage employees to
include the Personal Support Program, Be OK,
interviews (about 70) and focus groups (with
reflect on the theme of sustainability and make
Health Time, Stop Smoking Program, Vocal Health
90 executives and 240 managers) (For more
suggestions that could be adopted by the Bank.
Program, the Support Program for Returning to
information on our new culture, see the Profile
As well as putting into practice the winning
Work, Rehabilitation Training and the Women’s
suggestions, the intention is to compose a
participated in the quantitative survey. In
Health Program.
virtual bank of ideas for consultation and future
Speak Frankly
implementation. In its first year the Sustainable
In the safety area the main theme developed in
The Speak Frankly survey was implemented
Ideas Bank received more than 1,300
2009 was safety at work, at home and at leisure,
in 2009 and given to all our employees. It
suggestions. Each employee can submit one or
with the aim of encouraging preventative habits
is the main tool to supply managers and
more ideas in three categories: eco-efficiency,
and greater awareness in different everyday
senior management with information on the
sustainable finance and strategic relationships
situations.
organizational climate of each area and the
(stakeholders).
Bank as a whole, revealing positive points and
80
Through the Sustainable Ideas Bank, employees from
every area of the Organization can submit suggestions
for innovations and improvements.
Staff dining area at the Itaú
Unibanco Tatuapé Administrative
Centre, São Paulo.
Ombudsman
Through the Sustainable Ideas Bank, which
To encourage an open and transparent work
Independence is important to ensure
runs annually, employees from every area of
environment we rely on the Ombudsman,
freedom of action, the transparency
the Organization can offer suggestions for
a service created to receive complaints,
needed in the process and the right of
innovations and ways to improve. All ideas are
suggestions, questions and reports, as well as
the Ombudsman to contact any person at
evaluated at three levels, including by employees
giving advice to those employees interested
whatever level, for clarification or the solution
who work in areas related to the topic discussed.
in the intervention of a third party to resolve
of the issue submitted by the employee.
Employees who have ideas worth reviewing
professional issues. The role of the Ombudsman
receive feedback, and the winners receive
is guided by three principles: independence,
The Ombudsman has a blog for employees
trophies, travel tickets and dinners.
confidentiality and neutrality.
to share corporate issues and those
Walther Moreira Salles Award
Confidentiality is an option offered to
September 2008, up to December 31, 2009
For recognition within the workforce, the
the employee when they contact the
there have been more than 47,500 visitors. In
Walther Moreira Salles Award recognizes
Ombudsman service - by phone, fax, e-mail,
2009, with the merger of Itaú and Unibanco,
different initiatives by employees. In 2009
internal mail, voice mail or in person. When
the service was extended to all employees
five categories were included: Efficiency,
accessing the service, the staff member has
of the Organization.
Quality, Innovation, Sustainability and People
the choice of identifying themselves, choosing
Management. Winners receive shares in the
a degree of anonymity or total confidentiality.
company and have their idea publicized.
Once the choice is made to remain
of general interest. Since its launch in
anonymous, confidentiality is maintained
In 2009, 396 projects were submitted. The
throughout the process. The purpose is to
Award ceremony will be held in April 2010 at
protect the employee from unnecessary or
Sala São Paulo in the downtown area of the
unwanted exposure.
city of São Paulo.
Neutrality is essential so that the case can
be treated independently, without value
judgments or misconceptions. The objective
is to understand what occurs and to help the
people involved reach a solution to the conflict.
81
Relationships
• Employees
• Suppliers
Employees
• Customers
• Shareholders
• Environment
Internal Communication
Other Channels
We have over 100,000 employees in Brazil
recruitment goals, a new benefits package
In addition to the direct actions of internal
and abroad, who always strive to do more
and new facilities. The main objective was to
communication, there are channels for
and to do it better. These people believe
help the integration process go as smoothly
two-way communication for the relationship
in our core values and are aware of the
as possible.
between staff members and the Organization:
they are helping generate income in Brazil
To carry out the internal communication
Resolve – the internal postal service created to
and that they should always act ethically
actions, known as Endomarketing initiatives,
address questions and complaints forwarded
and transparently in their relationship with
we provide a number of electronic and print
by employees or their friends and relatives.
our clients, which leads to sustainable results
communication channels. Since the beginning
for everyone.
of the merger process they have ensured
People Central – direct service channel for the
speed and transparency in the daily flow of
People area.
influence they have on society. They know
Internal communication plays a crucial
information about the changes resulting from
role in developing these attitudes: not
the integration of our operations.
only through it, but also because of
Unions and Associations
We have a structured communication and
it, we can align objectives and share
Our internal communication channels and
relationship plan with trade unions, and
information and important factors which
initiatives include:
operate in compliance with Conventions 87
guarantee the commitment of everyone
and 98 of the International Labour Organization
in achieving the goals and strategies of
• Itaú Unibanco Magazine - a monthly
(ILO), which ensures freedom of association,
the Organization. Furthermore, internal
publication distributed to all employees;
protection of the right to organize and the right
communication is a vital component
toward building an environment that is
to collective bargaining without interference
• Integration Bulletin;
from authorities.
• Messaging via e-mail marketing;
In 2009 we conducted a total of 88 meetings
more cooperative and differentiated, in
which people feel respected, involved
and take pleasure in their work.
with leaders and members of various trade
• Unibanco Portal (intranet);
In 2009 one of the most important
internal communication initiatives was the
associations representing the employees of the
• Visual displays in administrative buildings; and
disclosure of changes regarding the team
integration process, which included a career
opportunities program, a unique system of
82
union groups, the staff commission, and retiree
Brazilian operations. Of the total employees we
currently employ, 1,642 are union leaders and
• Internal campaigns.
38,541 are union members.
2,300 employees
received priority when participating in internal
selection processes.
In Essence
Diversity
We believe that different life experiences
stimulate the development of people and
organizations.
Equal opportunities for different
professional profiles.
With a commitment to promote an inclusive labour
environment, which values and respects diversity, we
conduct initiatives to support the right of access and
use of banking services by the disabled, movements
aimed to improve women’s health and to promote the
educational development of Afro-Brazilians.
83
Relationships
• Employees
• Suppliers
Employees
• Customers
• Shareholders
• Environment
Currently, 4.2% of our
employees are disabled.
Society
The search for balance between our people
Through the Hiring People with Disabilities
management practices and the demands of
Program, 1,127 people were employed in
a society in constant transformation is part
2009. For 2010 the goal is to ensure that at
of the continuous development process of
least 5% of the staff is comprised of disabled
the Organization.
people and to continually invest in the
awareness of managers and teams so the
Diversity
inclusion process is legitimate and contributes
The Corporate Diversity Program illustrates
to the results expected by the Organization.
our commitment to inclusion and
equal opportunities. The challenge is to
Solidarity Games
promote an inclusive work environment
With the slogan “Together we do more
with investments to attract and retain
and do it better” these Games enabled
employees, and to encourage attitudes that
the collection of clothing and bedding
respect their differences.
through partnerships developed with
Social Solidarity Funds, State Social Welfare
Hiring the Disabled
Boards, NGOs plus Departments of Social
In 2008 we had 2,736 disabled staff
Welfare and Human Rights in all Brazilian
members. In 2009, even with the
states. With the active participation of all
temporary suspension of external hiring
employees, in 2009 donations totalled 65
due to the merger of operations, we
tonnes, with supplies going to charities in
maintained our commitment to inclusion
the cities where they were collected. We
and fulfilled our goal of hiring individuals
also donated blankets to the South and
with disabilities. To-date, 4,018 disabled
Southeast regions and bedding to the
employees have been hired, which
North, Northeast and Midwest.
represents 4.2% of the workforce.
84
One of our challenges for 2010 is to complete
the design of the new corporate culture,
which will help us communicate better with all
employees and leaders.
Challenges for
2010
Complete the integration process.
Disseminate the new corporate culture.
Improve the process of training leaders by implementing
the Leadership Academy.
Talent management focused on attraction, development and retention.
Awards and Recognition in 2009
During the first year of integrating the operations we won a number of important awards in
recognition of our efforts:
• We were named by the Great Place to Work Institute as one the Best Companies to Work
for in Brazil, in partnership with Época magazine, the University of São Paulo (FIA-USP)
Fundação Instituto de Administração (FIA), and Exame and Você S/A magazines;
• Human Resources Managers from the Bank were chosen as among the Most Admired HR
Managers in Brazil, by Gestão & RH magazine; and
• We were chosen for the third time as one of the Dream Companies of Young People in a
survey conducted by Cia. de Talentos and TNS.
LEARN MORE:
About our People Management programs and initiatives in the online version of this Report at
www.itauunibanco.com.br/relatoriodesustentabilidade
85
Relationships
• Employees
• Suppliers
• Customers
• Shareholders
• Environment
Customers
Commitment to Satisfaction
For us, quality service for our approximately
Agency (Procon), the media and other
40 million customers (account and non-
consumer defence groups.
account holders) has become paramount in
maintaining long-term relationships guided
Since the beginning of the unification of
by values such as respect, trust and obtaining
the activities of Itaú and Unibanco, the main
the desired results. Continuous improvement
challenge has been integrating customer
of our products and services is one of the
service operations to ensure maximum
main objectives of corporate governance.
efficiency in solving the problems that arise in
It is part of our business strategy to ensure
daily operations.
transparency in customer service for the
different segments in which we operate, and
Joint Action
seek the most appropriate solutions for each
In addition to helping mediate conflicts
customer profile.
and identify improvement opportunities,
the Ombudsman works in tandem with
Attentive Ears
the Customer Service Excellence area,
The Ombudsman is the avenue of recourse
whose responsibilities include setting and
for customers that were not satisfied with the
monitoring indicators for delivery of services
service received or solution provided by our
to customers and tracking improvement
conventional service channels like the Customer
plans developed by the Organization.
Service Centre (SAC) or Contact Us.
This integrated action also contributes to
building an institutional agenda focused on
The primary responsibilities of the Ombudsman
reducing failures in service, products and
are to identify the best solutions to our
services, improving the problem solution
customer demands and suggest improvements
process and transparency in communication
to products, services and the quality of service
with customers.
provided by the customer relationship channel.
86
It is also responsible for handling complaints
The integration of the Itaú and Unibanco
from the Central Bank, the Consumer Protection
Ombudsman areas was completed in the
39.8 million
customers use the Organization’s
many products and services.
Although the Ombudsman is the final
avenue of recourse for customers,
we also offer a number of other
communication channels.
second half of 2009. In the course of this
customer satisfaction. The meetings seek to
process the best practices from both
promote synergy among the areas, identify
Institutional
Recognition Program
organizations were reviewed to ensure
best practices in service delivery, spread the
Recognizing and promoting good practices
continuity and quality of customer service,
“customer view” and seek effective solutions for
by employees who oversee the quality of
as well as efficiency and speed in resolving
internal processes that impact on consumer
service we provide represents an opportunity
their problems.
satisfaction and on our image; and
for us to promote a culture of transparency
and respect for the customer.
Customer Service Governance
• Executive Service Excellence Committee
With the objective of spreading the “customer
- established in August 2009, its members
Prior to the merger, Itaú and Unibanco
vision” throughout the Organization, reducing
are executives from the business areas who
had already encouraged such initiatives
the number of complaints and increasing
meet monthly to discuss action plans and the
through recognition programs. In 2009,
the level of satisfaction, we established a
strategic direction.
while still operating separately, Itaú’s Star
Service program and Unibanco’s Value
model of governance for issues related to
customer service that included introducing a
Satisfaction Goals
Attitude program each inspired the search
dedicated customer service structure to every
Our institutional commitment to customer
for quality in service delivery, encouraging
business area, with a view to facilitating the
satisfaction was strengthened by setting quality
respect for customers.
implementation of improvement plans.
related goals for the different departments of
the Organization. The goals established consist
As part of the establishment of this
of reduced customer complaints and increased
model, two committees were created,
customer satisfaction, measured by satisfaction
coordinated by the Customer Service
surveys.
Excellence area:
In the analysis of complaints, transparency is
• Customer Service Excellence Committee -
vital in consumer relations, a theme which is
comprised of directors from the business
strongly reinforced by our executives, who
and support areas, this committee has
reaffirm our commitment to promoting an
been meeting every two weeks since June
organizational culture guided by respect for
2009 to discuss issues related to quality and
consumers.
87
Relationships
• Employees
• Suppliers
Customers
• Customers
• Shareholders
• Environment
In Essence
Each business area has its own
service delivery structure.
Customer satisfaction is an
ongoing challenge for us.
Listening to our customers through surveys, market
research, customer forums and other channels of
communication is a basic premise of the Organization,
whose principal objectives include building
transparent and long lasting relationships guided
by trust and respect.
88
Through the Customer Forum, we hear suggestions
that can help us improve our operations.
Customer Forum
• Regulators – Central Bank of Brazil (Bacen), the
this decision was correct, as it allows us to
pioneering initiative created in 2005 by
Securities and Exchange Commission (CVM) and
identify customer demands more quickly
Unibanco. At Itaú the initiative began in
the Superintendent of Private Insurance (Susep),
and thus implement improvements to meet
October 2008 with the establishment of two
which regulate Brazil’s financial, insurance,
these demands. It also further enabled us
groups from the personal banking (retail)
pension and capitalization systems.
to strengthen the partnership between the
The Customer Forum is the result of a
Organization and other consumer protection
segment. This is a key channel for us to have
closer dialogue with customers and listen to
• Consumer Protection agencies – Department
groups in order to ensure customer satisfaction.
their suggestions and criticism, allowing us to
of Justice, the courts, the Consumer
improve the quality of services and products
Protection Agency, Prosecutors, Department
In December 2009 the Ministry of Justice
offered by the Organization.
of Consumer Defence (DPDC) and the Civil
issued its annual ranking of companies that
Entities of the National System of Consumer
had received the most complaints through
Protection and Defence.
Consumer Protection agencies affiliated with
The Forum has an annual term of office, and
the National Consumer Defence System
is comprised of persons selected from our
customer base.
• Sector groups – Brazilian Federation of Banks
(Sindec). The financial sector (banks, card
(Febraban), National Federation of Private
companies and lenders) ranked second in
During each term the customers are invited
Insurance and Capitalization (Fenaseg) and the
complaints, second only to telephone utilities.
to participate in three or four meetings,
Brazilian Consórcios Administrators (ABAC).
Despite the efforts of its employees, Itaú led the
complaints in the banking sector, which lets
where they can air their views directly to
the executives responsible for the different
Our performance in 2009, as analyzed and
us know the size of the challenge we have to
business segments.
ranked by the Central Bank of Brazil and the
overcome and encourages us to expand and
Consumer Protection Agency, shows that
strengthen our customer satisfaction initiatives.
Consumer Protection
As the integration process has progressed we
ITAÚ IN THE 2009 CENTRAL BANK COMPLAINTS RANKING
have sought the best ways for our groups to
Number of complaints
work together. As a result we created a new
area: Relationship with the Consumer Protection
System, which underlines our commitment to
maintain respect for people. The main challenges
with this initiative, which is unique in the financial
services sector, are to establish constructive,
objective and proactive relationships which allow
consumer protection agencies, regulators and
sector groups to be cognizant of our position, and
to point out risk areas and suggest opportunities
for us to improve.
Following are the main consumer protection
agencies with whom we interact.
Ranking
256
Jan
*
3rd
365
Feb*
2rd
630
Mar
410
Apr
205
May
1st
207
Jul
1st
303
Aug
1st
124
Sep
1st
151
Oct
1st
Nov 75
Dec
2rd
3rd
248
Jun
2rd
3rd
85
1st
(*) In January and February the banks appear individually in the list; the ranking refers to Itaú, as during this
period Unibanco was not on the list.
89
Relationships
• Employees
• Suppliers
Customers
• Customers
• Shareholders
• Environment
To demonstrate our commitment to
In Rio de Janeiro a partnership between
respect consumers, we have taken on the
Itaú and the State Public Defender’s
goal of an 8.9% decrease in the number of
Office has allowed the development of a
complaints to Consumer Protection agencies
consumer service model whose processes
affiliated with the National Consumer Defence
allow more than 80% of the cases to be
System, increase the number of issues resolved
concluded with agreements.
at first contact to 70%, and achieve the same
percentage in progress for consumer service in
Valued Relationship
conciliation hearings.
In another pioneering initiative, in October
2009 we created the Relationship Adviser
The monthly ranking of complaints to the
office, which has the autonomy to establish a
Central Bank also represents an important
dedicated, direct relationship with consumer
customer relationship management parameter
protection groups. The relationship Adviser
and enables the identification of possible points
acts in the 11 cities with the greatest number
for improvement. This year we figured among
of demands sent to the Organization
the three first places in all the lists published.
through these groups: Belo Horizonte,
In 2008 Itaú was absent in ten editions, while
Brasília, Campinas, Curitiba, Fortaleza,
Unibanco was absent in four.
Guarulhos, Goiânia, Recife, Rio de Janeiro,
Salvador and São Paulo.
During the year several working meetings were
90
held around the country with representatives
In addition to strengthening the relationship
of the consumer defence system. This attention
with the local consumer protection agency
to the demands of customers led us to develop
and other consumer protection groups,
a new model of credit card bill - one of the
the Adviser seeks to reduce the number of
products that caused the most complaints -
complaints, eliminate the conciliation hearings
which better addresses the needs of customers
and identify opportunities for improvements
in terms of visualization and understanding of
in customer service. This Adviser has a
the information contained. The new bill will be
corporate role, and represents all Bank
implemented in 2010.
companies at the local level.
Education and Sustainability
To celebrate World Consumer Day, on March 15,
We also held meetings with consumer
2009 we organized Consumer Week, with the
defence system agencies to let them know
goal of educating customers, employees and
the improvements we have implemented
other relationship groups on the responsible
and the service channels customers have at
use of money and consumption. This initiative
their disposal.
is in keeping with the “financial education”
theme, which is one of the challenges in our
Sustainable Dialogues
Sustainability Policy.
In 2009 we hosted nine meetings in the
Itaú Sustainability Dialogues series, in the
Actions undertaken included the distribution
cities of São Paulo, Rio de Janeiro and
of consumer guidance information booklets,
Fortaleza. At some of the events the topic
the availability of hotsites with simulators and
covered was Brazil’s image abroad, as the
tips for the family budget and investments,
internationalization of Brazilian companies
chats with our guest experts through our
has become a priority issue in the interaction
site, the publication of specific contents on
with strategic relationship groups in other
internal communication channels and internal
countries. Topics such as entrepreneurship,
campaigns that stressed to our employees the
responsible consumption, financial planning,
importance of respect for customers.
Green IT, climate change and the Dow Jones
Sustainability Index were also discussed.
In addition, presentations were made with the
participation of consumer defence groups such
These meetings are designed to
as the Consumer Defence Agency, to inform
stimulate discussions around sustainable
our staff of the leading customer requirements,
actions and initiatives, publicizing good
based on complaints received by these
practices and information sharing. In the past
organizations. These presentations also allowed
three years they have been held in São Paulo,
representatives from various areas of the Bank to
Rio de Janeiro, Porto Alegre, Belo Horizonte
learn about our ranking and the improvements
and Fortaleza.
needed to meet the demands of customers.
91
Relationships
• Employees
• Suppliers
Customers
• Customers
• Shareholders
• Environment
In Essence
Financial Education
To contribute in a
sustainable way ...
...to economic development and social inclusion,
disseminating relevant information on the
conscientious use of money through presentations,
chats and booklets. The challenge lies in making
our customers, as well as society, be increasingly
better prepared for the responsible use of financial
products and services.
92
Challenges for
2010
Reduce customer attrition and thereby
decrease the number of complaints.
Responsible use of money
and financial services
We are determined to contribute to the financial
education of the Brazilian people by inspiring a
change in behaviours and attitudes. Accordingly,
we have invested in the Responsible Use of Money
program. In addition to lectures and chats targeted
at employees, customers and the general public,
teaching booklets are available through our website
and in bank branches, and are written in an informal
style that can reach everyone, whether individual or
corporate customers.
Increase transparency in the relationships
with our customers and strengthen our
partnerships with consumer protection
agencies.
Improve communication and transparency
in contracts, bills and customer statements
by making them even clearer and easier to
understand.
Strengthen our public commitment to listen
to customers and address their concerns
through the available service channels.
Improve actions in financial education as part
of the Responsible Use of Money program.
Extreme Makeover Project
In 2009 we held the fourth edition of the Extreme
Makeover project. Undertaken by the Bank in
partnership with Editora Globo and Microsoft, this
project provides financial and technology advisory
services for micro and small enterprises. During the
period covered by the project, companies receive
classroom guidance on finance, banking products
and technologies available, as well as ways of
incorporating socio-environmental issues into their
daily business activities.
To replicate and present these suggestions and
LEARN MORE:
About the activities of the Customer Forum in the online
version of this Report, available at www.
itauunibanco.com.br/relatoriodesustentabilidade
To read the full content of brochures and other
information about the Responsible Use of Money
program, please visit www.itau.com.br/usoconsciente
solutions to a larger number of people, in 2009 we
provided online and blog consulting services to the
participants, through which entrepreneurs can carry
out financial, technological and environmental selfdiagnoses and monitor the changes underway in the
companies taking part in the project.
93
Relationships
• Employees
• Suppliers
• Customers
• Shareholders
• Environment
Shareholders
Transparency in Communication
Our Investor Relations (IR) activities were the first to be integrated after
the announcement of the merger between Itaú and Unibanco.
With the shareholder restructuring, stock
Similar to other areas of the Bank, the
held by shareholders of Unibanco-União
best practices of both Unibanco and
de Bancos Brasileiros S.A. (Unibanco)
Itaú were maintained in our shareholder
and Unibanco Holdings S.A. (Unibanco
communication policy. As part of our
Holdings) was incorporated into Banco Itaú
commitment to providing the market with
S.A. and then into Itaú Unibanco S.A. (Itaú
clear, accurate, accessible and comprehensive
Unibanco). Consequently, the shareholders
information, the Shares in Focus newsletter
of Unibanco and Unibanco Holdings became
was launched immediately following the
shareholders of Itaú Unibanco and are
merger. It presents the results of the Bank, the
entitled to dividends and interest on capital,
performance of our actions, IR activities and
including dividends paid monthly, declared
details about corporate social responsibility.
by Itaú Unibanco from the base date of
Shares in Focus arose as a result of surveys
November 28, 2008.
which revealed the need for a succinctlyworded communication vehicle offering a
In our relationships with investors and
brief summary of the most significant events
shareholders we maintain transparency as
of each quarter.
our fundamental guideline. Special attention
is paid to the communication platform for
these strategic relationship groups, and we
continually invest in the improvement of
customer service channels and the quality of
services provided.
94
22 meetings
around Brazil were held with APIMEC-affiliated
professionals, who received balanced, transparent
reporting of our results and strategies.
Strategic Relationship Groups
• shareholders;
• individual and institutional investors;
• market analysts;
• regulatory agencies;
• capital markets agencies (national
and international);
• financial industry media;
• academia.
Shareholder
Communication Channels
• Itaú Unibanco Investor Relations website;
• public meetings;
• meetings with investor groups
in Brazil and abroad;
• teleconferencing;
• Shares in Focus newsletter;
• Annual Sustainability Report;
• chats (individual investors);
• e-mail alert;
• Contact Us;
• service by telephone.
95
Relationships
• Employees
• Suppliers
Shareholders
• Customers
• Shareholders
• Environment
Apimec Meetings: dialogue with
investors and shareholders.
The Investor Relations website features
announcement, in front of a record number
financial information, management analysis
of over 700 participants. This event was
of operations, press releases, material facts,
broadcast on the Internet with simultaneous
historical data and teleconferences, among
translation into English and Spanish. In
other matters of interest. It is available in
addition to Brazilian journalists, the event
three languages and represents an important
was also covered by reporters from Chile,
shareholder communication channel. In 2009
Argentina, Paraguay and Uruguay.
more than one thousand e-mails were sent to
+
answer questions from individual, corporate or
In 2009 we held Apimec
institutional investors.
cities of São Paulo (SP), Uberlândia (MG),
meetings in the
Caxias do Sul (RS), Campo Grande (MS),
Additionally, the Itaú Unibanco Investor
Cuiabá (MT), Curitiba (PR), Goiânia (GO),
Relations profile was set up on the Twitter
Vitória (ES), Ribeirão Preto (SP), Manaus
microblog in order to convey relevant
(AM), Belém (PA), Recife (PE), Salvador (BA),
information about our performance in the
Brasília (DF), Santos (SP), Florianópolis (SC),
capital markets.
Campinas (SP), Juiz de Fora (MG), Fortaleza
(CE), Rio de Janeiro (RJ), Belo Horizonte (MG)
To strengthen our dialogue with shareholders
and Porto Alegre (RS).
and investors and provide balanced,
+
96
transparent disclosure of our results and
Due to the economic and financial crisis
strategies, we participated in 22 meetings
and Brazil’s standing on the world stage,
throughout Brazil for professionals affiliated
we held a record number of events abroad
with the Association of Capital Market Analysts
in 2009. To inform foreign investors about
and Investment Professionals (Apimec).
the performance of the Brazilian economy,
The first meeting was held in São Paulo in
meetings were held in Europe, the United
December 2008, shortly after the merger
States, Asia, the UAE and Latin America.
Apimec – Association of Capital Market Analysts and Investment Professionals.
10 events
were held abroad for foreign investors in 2009.
In Essence
Transparency and Governance...
...are mandatory requirements for
responsible corporate activity.
We have independent members on our Board of
Directors and other councils and committees, and
comply with São Paulo Stock Exchange Level 1
Corporate Governance and Sarbanes-Oxley Act
requirements, factors which have helped us be
part of the New York Stock Exchange Dow Jones
Sustainability World Index for the past ten years.
97
Relationships
• Employees
• Suppliers
• Customers
• Shareholders
• Environment
Suppliers
Value Partners
Purchasing Policies
To provide products and services essential
Before companies can become our suppliers
to the operation of our different areas, we
of materials and services they must first
had commercial ties with 88,252 supplier
register on the www.itau.com.br/suppliers
companies in 2009. The post-merger size
website. This triggers the start of a detailed
of the Organization strengthens the Bank’s
financial, administrative and technical
position as a promoter of good practices in
assessment process.
its community of partners. All contracts have
clauses establishing the need to address
Introduced in 2006, the site has been
and monitor compliance with labour,
improved to establish clear criteria for
environmental and tax requirements, as well
administrative certification. Information
as respect for diversity and human rights.
requested from suppliers covers health
and safety issues, freedom of association,
We also value the regionalization of
diversity, working hours and suitable pay.
hiring and encouraging suppliers which
Companies whose activities represent risks for
are based in the same state as the
the environment must provide a respective
Organization’s purchasing unit. This occurs
Operating License (Environmental Legislation),
in cases where efficiency can be added to
and undergo technical visits. The site was
the commercial transaction.
developed along AA1000 guidelines, which
are an international standard on ethics and
Supplier management is carried out centrally
social reporting for corporate transparency
to ensure smooth handling of the purchase
and accountability. The site also offers access
processes and transparency in the various
to the Corporate Code of Ethics and socio-
operations performed.
environmental responsibility guidelines which
are contractual clauses to help guide the
actions of suppliers.
98
In addition to security personnel training
and refresher courses, the Bank created a video
and the Keeping an Eye on Security and Good
Service booklet.
DISTRIBUTION OF LOCAL SUPPLIERS
Local Suppliers (%)
Northeast
North
Challenges for
70
Midwest
60
65
76
South
Southeast
77
Brazil
77
2010
CalculatedbytotalvalueofbillingsfromlocalsuppliersdividedbythetotalvalueofpurchasesforeachState(inBrazil)andgroupedbygeopoliticalregion.
Change in calculation methodology for 2009-In2008approximately46,000suppliersofItaúandUnibancowerelisted.Thisfigurewastheresultofadding
upallsuppliersintheSAPpaymentsregistrationsystem.In2009weusedtheCNPJtaxnumberforanypaymentreceivedinthelast12months,regardlessofthe
systeminwhichtheoperationwasperformed.Onthisbasisthedatabasebecomes88,252suppliers,thefigurecurrentlyrecognizedbytheOrganization.
Ensure all our recurring suppliers are
evaluated using the risk matrix.
Improve the procurement site, using
methodologies incorporated after the
Trained Security Personnel
merger.
After registering, companies undergo the
Our surveillance and security teams are
approval and document inspection process,
formed by outsourced service providers.
Increase control and efficiency of the
in addition to an assessment of critical aspects
All professionals working in this area
supplier database.
of the company with respect to socio-
undergo strict training, required by law,
environmental issues.
which also includes issues related to
human rights and human relations in
Rigorous Selection Process
order to prepare them for direct contact
We have our own mechanisms to review
with the public. Aspects dealt with
our team of suppliers, segmented into 13
include appropriate and priority service
categories of activities. One of these tools is the
to people with disabilities, public safety,
risk matrix, through which partners are scored
criminology, interviewing techniques,
according to their actions and responses for an
radio communication, alarms and
extensive list of requirements which vary by line
surveillance.
of business.
In addition to training and refresher
The results of this evaluation are reported
courses for security personnel, we have
quarterly to managers from the pertinent areas
developed a video and the Keeping an
and those in charge of the partner organization.
Eye on Security and Good Service booklet,
At the end of 2009 about 90% of the
which educate these professionals on
outsourced labour workforce had already been
the alignment with our security policy.
covered by this evaluation process, including
Both materials offer guidance on how
contracts signed with suppliers.
to provide the best service to customers
LEARN MORE:
For more information about our suppliers,
visit the online version of this Report
at www.itauunibanco.com.br/
and other users of banking services,
Companies that fail to meet targets or act
without losing focus on security, by
contrary to our policies and Code of Ethics are
addressing issues such as politeness,
disaccredited and prevented from participating
kindness, respect, discrimination and
in further purchasing processes.
caring for people with disabilities.
99
Relationships
• Employees
• Suppliers
• Customers
• Shareholders
• Environment
Media and
Public Relations
Image and Reputation
Highlights in 2009
The media is one of the Bank’s strategic
Service Delivery
relationship groups, and has a specialized
In 2009, 112 press releases and notes were issued,
team tasked with leading our ongoing image
and over one thousand requests from journalists
building, encouraging strong relationships with
were answered.
opinion formers plus identifying and managing
risks and opportunities.
During the year 380 journalists and opinion
formers participated in meetings, chats,
+
In the first year of the merger between Itaú
workshops, interviews, Roadshows
and Unibanco a major concern was to disclose
conference calls sponsored by the Organization.
the speed of integration of operations and the
For the fourth consecutive year journalists from
benefits generated for customers. Among the
around Latin America came to Brazil to visit some
most important measures resulting from this
of the places where we operate.
and
was the development of a communications
plan which established a group of
We have an exclusive relationship channel for the
spokespersons who follow a single discourse
media through the www.itau.com.br/imprensa
on the developments of the merger, such as
website, which allows users to request interviews
values, goals and business prospects.
and information, access the database for news
releases, studies and presentations published by
For 2010 the strategy is to strengthen our
the Bank, plus have their questions answered and
relationship with the press and other opinion
receive the phone number for the service team
formers, keeping the focus of communication
responsible. In 2009 the site recorded 281,114
on the integration process, the discussion of
single visits, a figure 60% higher than in 2008.
issues related to sustainability and financial
education, as well as our consolidation as a
In public relations our objective was to increase
global player.
the visibility of the Organization by way of
relationship actions at corporate events, as well
as journalism activities to bring us even closer to
our stakeholders.
100
Challenges for
To help achieve this goal Itaú Unibanco
Social Investment
participated directly or indirectly in organizing
Education is the road to sustainable
more than 20 public events in 2009.
development for Brazil. Our commitment
2010
to the community is focused on
Financial Education
the development and spreading of
One of our goals is to enrich the discussion
methodologies which improve the quality of
on various topics by using tools to positively
public schooling and strengthen the culture
influence opinion leaders. Examples of this
of social projects evaluation. Accordingly,
Strengthen the Bank’s relationship
are the “Sustainability on the Agenda” and
every year we report on the social programs
with the media by focusing
“Macroeconomics on the Agenda” series,
developed by Fundação Itaú Social.
on communications about the
integration process, discussions
quarterly workshops for media professionals
with the participation of outside experts, as
In 2009, 245 journalists from around the
on sustainability-related issues
well as releasing reports and studies by the
country each received a copy of Educational
and financial education, and our
Bank on macroeconomic conditions and
Reform in New York - Possibilities for Brazil, a
consolidation as a global player.
other relevant issues. In 2009, two editions of
publication which presents the educational
each series were issued.
experiences and strategies put in place in
Expand the discussion of sustainability-
New York City. The book launch event also
issues by focusing on our Latin America
included a workshop featuring Chris Cerf,
consolidation strategy.
As financial education is one of eight
key themes of our Essence of Sustainability,
the New York Secretary of Education, as well
a workshop on “Entrepreneurship in the
as education specialists and technicians and
Broaden our relationship with other
Post-crisis Market” was held for reporters to
Brazilian journalists.
opinion formers through institutional
relationship events and actions.
show the opportunities available to small
and medium sized companies in these times
In June an international seminar held
of easier credit. The event also discussed
by Fundação Itaú Social discussed the
the new Authorized Direct Debit electronic
relationship between economic development
payments system (ADD).
and education. American professor Eric
Hanushek and specialists from Brazil took part
In 2009 we also sponsored the Itaú
in the event, which was followed by journalists
Sustainable Finance Award, which
from eight Brazilian States, leading to coverage
recognized the best academic papers
in newspapers such as O Globo, Estado de
and reports on the subject. This initiative,
Minas and Gazeta do Povo.
supported by the U.K. consultancy
SustainAbility and the Ethos Institute, had
Additionally, about 200 journalists received
79 participants. Winners in each category
News in Network, a monthly newsletter which
received cash prizes plus trips to London,
provides information on topics of interest
where they visited sustainability-related
from Fundação Itaú Social.
institutions.
101
Relationships
• Employees
• Suppliers
• Customers
• Shareholders
• Environment
Environment
The Green Overpass (Passarela
Verde) adds value to São Paulo’s
urban landscape.
Eco-efficiency Management
During the first year of the merger between
One opportunity for us to improve our
Itaú and Unibanco our main concern was the
operations is the management of environmental
integration of our teams, businesses, operations
impacts from the generation of waste,
and processes. However, we also continued
greenhouse gas (GHG) emissions and the
with our eco-efficiency projects, primarily
consumption of natural resources and electricity.
those related to identifying improvement
In practice the behaviours encouraged by the
opportunities consistent with the new
Organization can also positively influence our
Sustainability Policy, which establishes the
many relationship groups.
following environmental guidelines:
An example of this in 2009 was the
• support market mechanisms and internal
development of a single model for selective
policies to promote respect for the
waste collection in office buildings. With
environment, quality of life and preservation of
encouragement for our employees to take part,
biodiversity;
the project will be implemented in 2010, which
should increase the volume and efficiency of
• develop and improve mechanisms and
our internal waste collection processes.
internal policies for managing the indirect
financial impacts of our operations; and
In 2009 we focused our efforts on the design of
an environmental management system for our
• mitigate the environmental impacts of
our operations.
operations, which we expect to implement in
2010. This system will allow us to rationalize the
consumption of electricity, water and fuel and
to reduce waste and waste products.
102
During 2009 the Bank consolidated the
information in its greenhouse gas (GHG)
emission inventories.
Substance emissions harmful to the ozone layer, by weight - 2009*
Consumption (Kg)
ODP
Estimated Emission
(kg CFC-11 eq.)
R-22
2,650.10
0.055
145.76
141-b
27.00
0.11
2.97
407-c
65.00
0.00
0.00
R-134 a
446.80
0.00
0.00
3,188.90
-----
148.73
Type of gas
Total
Note: figures refer to administrative buildings. Total consumption (Kg) of air-conditioning coolant gas in the administrative buildings, plus the
estimated emissions of tonnes of CFC-11 equivalent is listed below. Values based on criteria set by the Montreal Protocol on the ODP (Ozone
Depletion Potential). *
Data taken from the Greenhouse Gas (GHG) Emission Inventory - 2009 and audited (limited assurance) by PricewaterhouseCoopers.
Significant emissions of NOx and SOx. by weight - 2009*
Estimated Emission
NOx (t)
Estimated Emission
SOx (t)
Own air fleet
3.01
0.27
Own ground fleet
8.97
0.31
Transportation
9.97
0.52
Source
Eco-efficiency
We created our Eco-efficiency program to allow
a significant advance on the environmental front
after the merger between Itaú and Unibanco.
One example of the actions we developed is the
implementation of a single, centralized model
for selective waste collection in our buildings.
Garantech
12.63
0.04
Freight transport
111.99
1.97
Cash transport
39.65
4.00
Pouch transport
87.20
0.85
Generators
21.96
8.65
Taxis
5.92
0.04
Mileage reimbursement
5.33
0.27
In 2009 this initiative faced challenges during
Vehicle leasing
0.54
0.03
the design stage, but these will become less
Fuel tickets
82.24
4.11
of a factor in 2010 as the integration process
Fuel reimbursement
16.72
0.84
evolves. Our main achievements in 2009 include
Total
406.15
21.90
the consolidation of a single inventory of GHG
emissions which includes the operations of both
Itaú and Unibanco.
Highlights in 2009
Emissions
Materials
During 2009 we consolidated the
of coolant gases from air conditioning
One of the principal actions in 2009 was the
information in our greenhouse gas (GHG)
systems and the burning of fossil fuels by
incorporation of the vision of sustainability
inventories. This consolidation was carried
power generation systems used in the
into our building retrofits (whereby outdated
out with advice from experts, and as of
event of power shortages. Our indirect
equipment is replaced by more modern
2010 will define the actions necessary for us
emissions are caused by the transportation
technology), and in new building projects.
to improve our targets and performance in
of people and materials, the transportation
Several sustainability parameters like
fighting global warming.
of cash and valuables carried out by
third-party armoured vehicles, and by the
energy efficiency, percentage of recycled
components in materials and certification
The inventory complies with the Brazilian
(such as ISO 14001), are taken into account
GHG Protocol Program, which is based
in the supply chain for products and services,
on the most widely used international
promoting supplier compliance for eco-
standards for measuring emissions. Our main
efficiency practices.
sources of direct emissions are the leakage
consumption of electricity.
103
Relationships
• Employees
• Suppliers
Environment
• Customers
• Shareholders
• Environment
In Esssence
Climate Change
Climate change is one of our planet’s
greatest challenges. It represents risks,
but also opportunities.
Climate change is a part of our strategies. We
conduct inventories of greenhouse gas (GHG)
emissions and develop studies and analyses in our
Insurance area. In 2009 Itaú launched the Carbon
Index Fund – Brazil’s first investment fund linked to
a carbon credits index.
104
40,000 m
3
Reuse of water in 2008:
51,226 m3
was the approximate volume
of water reused in 2009.
equivalent to 2.1% of
the total consumed.
Direct and indirect greenhouse gas (GHG) emissions, by weight – 2009
Energy
Actions to reduce and control our energy
Scope I
Itaú Unibanco
One of our major environmental management
concerns is to reduce and optimize water
consumption in all facilities. Most of the water
866.78
Own ground fleet
959.57
Generators
2.258.3
606.84
Gas leaks - HFCs and HCFCs
63.2
Stationary natural gas combustion
applying Green IT practices (see item on Green
Energy Consumption
Scope II
Water
Own air fleet
Stationary combustion - LPG
consumption were expanded in 2009 by
IT, below).
Emission (tCO2e)
168.17
Emission (tCO2e)
Administrative buildings and points of sale
14,223
Indirect greenhouse gas (GHG) emissions, by weight – 2009
Itaú Unibanco
we use comes from the utility network supply.
Emission (tCO2e)
Staff use of public transport
2,736.17
1,286.18
Cargo transport
9,147.93
the year, including water reuse projects in use
Pouch transport
9,324.77
at the Itaú Unibanco Eusébio Administrative
Cash transport
18,556.2
Centre and the Itaú Business Centre..
Incentives and Partnerships
We invest in forming partnerships and
recognizing actions that lead to the
dissemination of good sustainability practices.
In 2009 one of our initiatives in this area was a
Scope III
Garantech
A number of initiatives were evaluated during
Taxi
Mileage reimbursement
Car rental
855.16
830.12
83.69
Fuel voucher
12,817.77
Fuel reimbursement
2,606.12
Air travel
13,111.4
Total
71,355.51
partnership established with the Massachusetts
Institute of Technology Sloan School of
Management to promote discussions on
sustainability in Brazil and Latin America.
105
Relationships
• Employees
• Suppliers
Environment
• Customers
• Shareholders
• Environment
Waste Disposal in 2009* – Itaú
Waste
Total amount (t)
Paper/Cardboard
Plastic
Glass
Aluminum
Iron
Organic waste (landfill)
Direct energy
consumption, by
primary energy source
Organic waste (compost)
Light bulbs
Batteries
Electronic waste
Overall total 2009 (t)
Overall total 2008 (t)
3,000.0
157.0
5.9
621.8
366.5
1,348.5
223.7
7.7
4.6
118.0
5,853.6
4,605.9
Recycling
YES
YES
YES
YES
YES
NO
YES
YES
YES
YES
WiththemergingofoperationsofItaú
andUnibancoin2009,theOrganization
didnotconductthemonitoringof
printercartridgesused.
Note:forthoselocationswherethe
generationofsolidwastewasnot
recorded,theamountswereestimated
basedonthenumberofemployees.
Wasteproductsareproperlyremoved
anddisposedofbythird-party
companies.
*
Total: 49,682.01 GJ
Note:conversion:1l=0.2641gal;
1gal=0.138GJ(diesel)and0.125GJ(gasoline).
FiguresincludeItaúBBA.
18,148.1
cars for executive
transport
2008
23,167.3
31,553.8
Generators in
buildings and
branches
2008
56,872.4
We have invested US$500,000 in this
analysis of projects will be held in partnership
partnership project. Part of the funds
with the Ekos Institute, and the winners will be
will be used to create the Itaú Unibanco
announced in March 2010.
Sustainability Fund, which will promote
sustainability research and development
Bandeirantes Thermoelectric Plant
projects. Other monies will encourage
The Bandeirantes Thermoelectric Plant
studies that explore key challenges faced
(Uteb) is managed by the Bank and produces
by Brazil and Latin America on issues such
electricity from biochemical gas extracted
as sustainable economic development,
from the Bandeirantes Landfill, located
economic and social inequality, lowering the
at Km 26 on the Bandeirantes Highway
emission of greenhouse gases, opportunities
in São Paulo’s Perus neighbourhood. In
for the use of renewable fuels, biodiversity
2009 the plant eliminated the emission of
protection and sustainable agriculture. These
approximately 390,000 metric tons of carbon
funds may also be used for collaborative
dioxide equivalent into the atmosphere.
projects between students from MIT and
Energy consumption
Ano2009
580,881
Total electricity
consumption (in MWh)
2008
536,182
5.72
MWh per employee
2008
5.55
106
universities in Brazil that are aligned with
The plant brings environmental benefits
the areas covered by the Itaú Unibanco
because it prevents the release of methane, a
Sustainability Fund and the additional studies.
greenhouse gas. Accordingly, it is authorized
to issue carbon credits which may be
The Eco-change (Ecomudança) Program
purchased by industries in countries that
is designed to stimulate and encourage
have emission reduction targets agreed in
projects by non-profit organizations that
the Kyoto Protocol.
help reduce greenhouse gas emissions. We
will invest R$330,000 in the program, to be
We use the renewable energy produced by
invested in energy efficiency, renewable
the plant to supply six of our administrative
energy and waste management projects. This
buildings. In 2009 the total electricity
figure represents 30% of the management
consumed by these units was 49,000
fees of the Itaú DI Ecomudança and Itaú RF
MWh. For 2010 our goals are to supply an
Ecomudança funds from August 31, 2008 to
additional administrative centre with the
September 1, 2009. The best carbon capture
energy generated by the plant and reach
project will receive a further R$330,000. An
60,000 MWh.
The Bank’s Green IT Committee discusses
technological development, efficiency,
cost reduction and risk mitigation, and the
socio-environmental risks related to each.
Total investments and expenditures in 2009 for environmental protection, by type
Investment type
Amount (R$)
Gas cleansing
86,078.74
Consulting for the GHG inventory
113,578.95
Selective waste collection at administrative centres
760,800.00
Waste removal and disposal
Total
1,950.30
962,407.99
Challenges for
2010
Increase the fight against climate change
through mitigation/reduction actions in our
operations.
Green IT
Green Information Technology (IT) consists of
and videoconferencing rooms helped
a set of practices associated with technological
avoid unnecessary travel, leading to lower
developments for environmental efficiency,
greenhouse gas (GHG) emissions.
reduced costs and mitigating risks, including
socio-environmental risks.
At the end of 2009 we opened three
telepresence rooms that simulate the
Expand initiatives to capture and reuse
rainwater.
Replace the flushing systems at all
administrative centers to achieve
minimum savings of 20% to 40% in water
consumption.
Our Green IT Committee was established in
environment of an actual meeting, and in
2008 and is comprised of staff members
2010 another room will be in operation,
from the Technology and Sustainability areas.
helping reduce unnecessary travel.
Steadily increase the amount of materials,
suppliers and technologies that will
allow greater eco-efficiency gains in our
technical projects.
Sustainable disposal
of electronic equipment
Implement the operations environmental
management system.
The proper disposal of electronic
Use water for reuse in the cooling towers of
other administrative buildings, plus those that
already use this process.
The committee constantly discusses the
subject and creates practices to reduce
environmental impacts.
Following are our main achievements in
equipment is an initiative that helps in the
Green IT during 2009.
reuse of materials, which, after reprocessing,
serve as raw material for new applications
Energy Efficiency
without the need to further exploit the
Our energy efficiency actions are designed to
environment, in addition to reducing health
reduce energy consumption by providing the
risks (some heavy metals, if absorbed into
right amount of electricity for each space. In 2009 the soil or water table, can cause irreversible
we undertook the following actions: updating of
brain damage) which could occur through
mainframe hardware, consolidation and server
their improper disposal.
virtualization, acquisition of precision cooling
machinery, virtualization of desktops and the
In 2009 our sustainable disposal of
exchange of CRT monitors with LCD devices,
electronic waste reached about 118
which generated savings of about 1,900 MWh,
metric tons as a result of exchanging
equivalent to R$590,000.
obsolete IT equipment. Of this total,
approximately 98% was reused after
“Green” workplace environment
reprocessing and the remainder was
The use of instant messaging,
treated in keeping with environmental
smartphones, print management tools
agency and regulatory guidelines.
Supply an additional administrative center
with renewable energy generated by the
Bandeirantes Thermoelectric Plant.
Develop and implement a waste management
program that establishes procedures, keeps
records and encourages service providers to
improve their practices.
Open one more telepresence room.
Increase and publicize the practices of proper
IT equipment disposal.
Combine our best practices and meet with
leading systems suppliers to better optimize
the Bank’s systems.
107
Social and Cultural
Investments
• Fundação Itaú Social
• Instituto Unibanco
• Instituto Itaú Cultural
Joining forces
strengthens our actions
Making cultural and social investments and supporting related initiatives primarily in education - embodies our cultural commitment to one of Brazil’s
great development challenges.
This position, which is aligned with our Vision, Values, Sustainability Policy
and guidelines for the involvement of stakeholders, is enshrined in the
Essence of Sustainability, a document released in early 2009 which sets out
eight priority issues for the Bank.
In practice we rely on the activities of Fundação Itaú Social, Fundação Unibanco and Instituto Itaú
Cultural, which, while having different governance structures and strategies, act in a complementary
manner, seeking to help improve the quality of education and spread culture throughout the country.
Instituto Unibanco and Fundação Itaú Social invest in education initiatives - a key area for social
transformation - the promotion of civic responsibility and the country’s sustainable growth, while
Instituto Itaú Cultural seeks to broaden the general public’s access to culture and art, covering various
means of expression throughout Brazil.
These institutions are forming partnerships with the three levels of government (municipal, state
and federal), the private sector and civil society organizations to participate in the joint development
of solutions to Brazil’s social challenges. Their coordinated actions are also designed to ensure the
sustainability of initiatives and to gain scale so their benefits can be extended to all of society.
108
In this chapter
The main activities developed by Fundação Itaú Social, Instituto Unibanco
and Instituto Itaú Cultural.
• Public policy initiatives to improve the quality of public education
• Actions to improve the spread of Brazilian culture
• Goals and objectives in education and culture for 2010
Instituto Itaú Cultural
headquarters, in São Paulo.
109
Social and Cultural
Investments
Instituto Itaú Cultural facilities
host free activities which are
open to the public.
Expanded Operation
The merger between Itaú and Unibanco also
the production of Brazilian art and culture, as well
represented the joining of forces of their
as publicizing and training local artists.
three social and cultural institutions, making
it possible to expand the scope, results and
Instituto Moreira Salles, which safeguards and
impacts of their programs. In 2009 our social
preserves collections of Brazilian art and history,
and cultural investments reached R$248 million.
and whose activities were described in the 2008
Itaú Unibanco Annual Sustainability Report, is
Instituto Unibanco and Fundação Itaú Social
now an independent entity as a result of the
focus on the quality of learning for children and
merger, and accordingly its activities do not form
young people, and formulate, implement and
part of this Report.
disseminate methodologies and educational
technologies designed to improve public
Focus on Education
education policy in Brazil.
With activities converged on the area of
education, in 2009 Fundação Itaú Social and
Through initiatives undertaken with funding
Instituto Unibanco sought to unlock the
from Itaú Unibanco, Instituto Itaú Cultural uses
synergies between their actions, a process which
tax incentives guaranteed by the Rouanet Law, a
should strengthen further in 2010.
federal government initiative to support cultural
110
incentives. This allows Instituto Itaú Cultural
Their joint actions include the integration of
to develop free, multidisciplinary activities
all volunteer programs, the formation of a
and programs nationwide, consistent with its
partnership to conduct seven surveys on high
objective of spreading access to culture and art.
school education, and the promotion of forums
Its Directions program, for example, encourages
and debates on education administration.
In 2010 the challenge will be to further unlock
synergies between Instituto Itaú Cultural,
Instituto Unibanco and Fundação Itaú Cultural.
Fundação Itaú Social
Fundação Itaú Social (the “Foundation”) is
distribution of training materials and national
experiences in management education
supported by an endowment fund, and its
awards for texts written by public school
worldwide, and supply Brazilian managers
budget is based on any surplus obtained by the
students, it promotes the training of educators
with relevant information to help them
fund during the year. It operates primarily in the
to teach reading and writing. In 2009, presence
improve existing methodologies. In 2009
areas described below.
training sessions were held for 1,407 technicians
it published Education Reform in New York:
from various Secretaries of Education. A further
Possibilities for Brazil, which it distributed to a
Comprehensive Education
2,882 professionals received distance training,
qualified group of experts, opinion formers
The main program is the Itaú-Unicef Award,
becoming multipliers to about 43,000 teachers
and Foundation partners.
a pioneering initiative of the Foundation and
in their respective schooling systems. A new
the United Nations Children’s Fund (Unicef ),
edition of the Olympics will be held in 2010.
Based on this experience, in 2009 the
Foundation - in partnership with the São
with technical coordination from the Centre
for Studies and Research in Education, Culture
In December 2009 it received the Corporate
Paulo State Secretary of Education - began a
and Community Action (Cenpec). Held every
Citizen of the Americas Award from the
three-year pilot project for coaching teachers,
two years since 1995, the eighth edition was
Organization of American States’ (OAS) Fund for
implementing parent coordinators and the
held in 2009, with 1,917 projects registered. The
the Americas, which are private institutions that
training of young leaders in ten schools in
goal is to recognize and encourage the work
fight poverty in the Americas.
Eastern District 3. In 2010 a new publication
will report on an innovative experiment in
of non-governmental organizations (NGOs)
and other groups to contribute, in conjunction
Education Administration
with public schools, to the comprehensive
To strengthen education administration skills at
education of children and adolescents living in
various levels of the public school system and
In 2009 the Foundation also continued its
vulnerable conditions.
enrich and broaden the debate on the subject
Municipal Education Improvement program,
public schools in Pernambuco state.
the Foundation runs two directed programs:
conducting 12 seminars on education
Reading and Writing
Municipal Education Improvement and
management for 1,029 managers from
The Portuguese Language Olympics - Writing
Excellence in Education Management.
627 cities. The program’s methodology
was included in the 2010 Educational
the Future was adopted as a public policy by
the federal government in 2007, in partnership
The Excellence in Education Management
Technology Guide, published by the Ministry
with the Ministry of Education. Through the
program seeks to study and analyze successful
of Education (MEC).
111
Social and Cultural
Investments
Volunteer actions
connect our teams to
various communities.
Another initiative is the Itaú Phase Portal
Youth
(www.fundacaoitausocial.org.br/phase), which
The Urban Youth program offers training
offers various support tools for analysis and
to young, socially vulnerable residents of
decision-making in investments in education.
low-income suburban areas in Brazil’s larger
cities. Its objectives are to expand their
Economic Assessment of Social Projects
By valuing the importance of economic
assessment as a management tool for social
programs and projects, the Foundation, in
partnership with the Bank’s specialized Risk
and Finance Controls teams, developed the
Economic Assessment for Social Projects
program. This initiative applies the skills of
our financial area to the social field in order
to improve social investing in Brazil.
socio-cultural repertoire, increase and qualify
their prospects of accessing the job market,
encourage people to stay in or return to
school, develop knowledge and basic skills
for public and personal life and expand their
capacity to move about the city.
In 2009 the fifth edition of Urban Youth was
held in São Paulo. Each edition involves 480
people, and the program can be replicated
by entities that work with young people, as
The program spreads the culture of
assessment in the social area through
courses and seminars, in addition to an
electronic guide covering the main issues,
economic assessment methodology
and other information, and is available
on the Foundation’s website at www.
fundacaoitausocial.org.br.
112
the youth training content was systemized
and will be published in 2010. The Social
Franchise program also got underway
in 2010, and was included in the 2010
Educational Technology Guide, published by
the Ministry of Education (MEC).
11 courses
in the Economic Assessment
of Social Projects program were conducted in 2009. This initiative applies
the skills of the Bank’s economic area to the social field in order to
improve social investing in Brazil.
Mobilization of Employees
We encourage our teams to be committed to
partners and communities. Itaú Child places
the community by encouraging employees
the entire network of Itaú and Unibanco
from different areas to get involved in social
branches and the mobilization of our
actions. Fundação Itaú Social, in partnership
employees at the service of this social cause.
with Instituto Unibanco, contributes to this
The program’s initiatives are diversified,
mobilization through various programs designed
based on the movements of awareness,
to educate our professionals on the importance
involvement and the opportunity to make
of social actions to Brazil’s development.
a solid commitment. With the support of
2,867 branches, in 2009 two million copies
Over 9,000 employees took part in our actions
of the Guide to Education in the Family were
during 2009, including:
distributed. Another initiative was the
expansion of 1,466 public school libraries
• Saturday Volunteer - Six events, held in
nationwide.
Salvador, Belo Horizonte, Goiânia, Manaus,
Campinas and Porto Alegre involved a group
of 1,292 volunteers.
• Itaú Unibanco Solidarity – Now in its sixth
edition, this program seeks donations and
allocates taxes paid by bank employees to
• Volunteer Week - Encourages the
projects for protecting the rights of children
participation of employees in the volunteer
and adolescents. A total of 252 volunteers
program. The website had 80% more page
took part through the Itaú Unibanco Solidarity
views and 1,014 new registrations.
Committees, which identified local projects
to receive the donations. Results: R$902,000
• Itaú Child - Created in 2006, this program
promotes mobilization for the rights of
donated, 12,271 employees taking part, and
29 projects benefitted.
children and adolescents by encouraging
the participation of employees, customers,
113
Social and Cultural
Investments
Instituto Unibanco develops
educational programs for the
integration and training of
young people.
Instituto Unibanco
Instituto Unibanco focuses on improving the
initiative also offers future educators - selected
Developed in partnership with State Secretaries
quality of education offered to public high
from universities - the opportunity for an
of Education, the project also offers technical
school students and particularly on the human
invaluable educational and teaching experience,
support to improve education management to
development of young people in vulnerable
in which they can use the assessments on a large-
achieve results. In 2009 the initiative benefited
situations. Its main activity is to develop
scale to identify the learning gap of each student.
a group of about 70,000 students from 83
schools, including 22 in Rio Grande do Sul State,
technologies that help public schools improve
their performance and reduce dropout rates.
In 2009 the program was developed in the cities
20 in Minas Gerais State, 21 in greater São Paulo
In 2009 more than 250 schools took part in this
of Rio de Janeiro, Vitória, Juiz de Fora, Brasília
and 20 in Vale do Paraíba, in São Paulo State.
initiative.
and Campinas, involving more than 160 schools,
approximately 20,000 high school students and
The program’s budget was about R$13 million
The two main projects developed by Instituto
520 university students. Investments during
in 2009, and will rise to R$17.1 million in 2010,
Unibanco - Among Youth and Youth With a
the year totalled about R$7 million, and are
when it will work with 15 additional schools in
Future - are listed in the Ministry of Education’s
expected to reach R$6.3 million in 2010.
Rio de Janeiro.
The city government of Rio de Janeiro intends
Young Apprentice
to adopt the Among Youth program as a public
Instituto Unibanco works in partnership with 24
education policy in 2010 for Grade Nine students.
non-profit groups to help insert young people
2010 Technologies Guide, enabling them to be
adopted by schools.
With the merger between Itaú and Unibanco,
Instituto Unibanco has begun to develop
aged 16 to 24 into the formal job market, under
projects and actions that are integrated with
Youth With a Future
the Apprentice Law. In 2009 over 2,000 students
Fundação Itaú Social and Instituto Itaú Cultural.
The Youth With a Future program offers
were selected, primarily from public schools, to
technical and financial support for the design,
act as young learners and help reduce truancy
Among Youth
implementation and evaluation of a plan to
and dropout levels.
The Among Youth program is designed to
improve the quality of education. To participate,
complement and address the shortcomings of
schools must commit to goals to be achieved
the basic content of English and mathematics
within three years - the duration of the program –
in the first year of high school, leading to better
and be assessed periodically. To fund the activities
performance and lower dropout rates. The
each school receives R$100 per year, per student.
114
In 2009
Instituto Itaú Cultural conducted 401 activities
in Brazil and 121 abroad.
Culture is a tool for social transformation, civic
access to culture. They are free of charge and
responsibility, and stimulating the construction
focus on ensuring the spread and increase
of critical thinking within a nation. Accordingly,
of artistic production throughout Brazil,
Instituto Itaú Cultural (the “Institute”) acts
using the cultural apparatus available to and
in different areas of expression, developing
incorporated by communities.
ongoing projects which support the
production of, and increased access to, Brazilian
The Institute’s social nature is manifested
art, the understanding of cultural practices by
by its free events and the development of
all social sectors and the encouragement of
an educational program which includes
new talents throughout Brazil.
teacher training, providing transportation
for public schools to visit exhibits at its
Its principal activities include the
facilities in São Paulo, and the distribution of
Directions program, cultural activities and
support materials. It also helps improve the
multidisciplinary exhibitions such as the
skills of specialized professionals through
Occupation project; the Culture Observatory;
training, research and other programs on the
nationwide distance actions (through the
relationship between art and technology, all of
website); virtual encyclopaedias and Web
which make use of new technological tools to
radio; cultural materials in print, digital, sound
broaden access to culture.
and virtual formats such as books, movies,
catalogues, magazines, CDs and DVDs; plus
In 2009 the Institute invested R$39 million.
partnerships with cultural institutions and
Of this figure, R$30 million came from the
public TV and radio stations throughout Brazil
application of tax incentives guaranteed by
and in other countries.
Article 26 of the Rouanet Law for Cultural
Support. During the year the Institute
Like Fundação Itaú Social and Instituto
conducted 401 activities covering every
Unibanco, the actions of Instituto Itaú
Brazilian State, as well as 121 activities abroad.
Cultural are also designed to promote public
policies and improve social conditions and
115
Social and Cultural
Investments
Instituto Itaú Cultural promotes access
to the production of Brazilian art.
Integration in Schools
One of the main projects developed by the
One of the first projects where Instituto
Institute is its Directions program, which for
Itaú Cultural and Instituto Unibanco came
12 years has been supporting the artistic and
together was in forming a partnership for a
intellectual production of art and culture
contest among public school students and
professionals, researchers and students from
teachers, based on Instituto Itaú Cultural’s
around the country. The program covers nine
Brazilian History Panorama series. The Institute
areas: art, cyber arts, visual arts, film and video,
supported the national production of all 15
dance, cultural journalism, literature, music and
episodes in the series (recorded on DVD),
research in cultural management. In 2009 the
which offer a modern day examination of
program received 2,000 submissions in the
political and cultural events in Brazilian history.
dance, cyber arts, film and video and cultural
journalism categories.
Seminars were held in nine cities to launch
the contest, and featured the distribution of
In 2009 the Institute also strengthened its
boxes containing DVDs and a teacher’s guide
dialogue with institutions abroad by holding
to the series as a means to stimulate debate
an extension course in Cultural Management
and discussion with students. This is just one
at its facilities in São Paulo, in partnership with
of the many ways that Instituto Itaú Cultural
the Unesco Chair in Cultural Management and
combines support for quality education with
the University of Girona in Catalonia, Spain.
its mission to promote critical analysis of
Over 2,000 people applied for the 35 places
Brazilian culture.
available, including museum, cultural institute
and government department specialists and
managers from all over Brazil. The course
runs until July 2010, and offers 240 hours
of presence and online classes.
116
Challenges for
2010
Duis eu lacus diam. Sed
adignissim leo, at vestibulum
nulla vulputate in
Fundação Itaú Social
Promote and qualify the discussion of public policies for comprehensive education.
Publicize successful experiences in comprehensive education.
Develop and disseminate methodologies for training young people.
Enable educational administrators.
Produce knowledge in educational management.
Reach 80,000 schools and 300,000 teachers through the Portuguese Language
Olympics - Writing the Future.
Challenges for 2010
In the coming year the main goals
and common objectives of the three
institutions are:
Promote the use of assessment as a management tool.
Expand its virtual databases through the release of Film, Music and Dance
Encyclopaedias and the launch of the Institute’s new website, which will strengthen the
portal’s content as a reference source for Brazilian art and culture.
• strengthen the synergies between Instituto
Itaú Cultural, Instituto Unibanco and
Instituto Unibanco
Fundação Itaú Social;
Turn the key technologies developed by Instituto Unibanco into social franchises to be
offered to the new State Governor as of 2011.
• create opportunities to engage our
employees in social actions;
• integrate the education management
actions of Fundação Itaú Social and Instituto
Transfer technology from the Among Youth program to the Rio de Janeiro Municipal
Secretary of Education, to be conducted experimentally in 349 schools in the city’s network.
Implement, on an experimental basis, the Financial Education program into public schools
in conjunction with Coremec/GAP, Brazil’s Ministry of Education and the World Bank.
Apply social project impact assessment technology to all Instituto Unibanco actions.
Unibanco; and
• provide grants to strengthen our
relationship with the community.
LEARN MORE:
about the programs of Fundação Itaú Social, Instituto Unibanco and Instituto Itaú
Cultural in the online version of this Report, available at www.itauunibanco.com.br/
For more information on the programs developed by Fundação Itaú Social, visit:
www.fundacaoitausocial.org.br
For more information about the activities of Instituto Unibanco, visit:
www.institutounibanco.org.br
To learn more about the projects and initiatives of Instituto Itaú Cultural, visit:
www.itaucultural.org.br
117
Awards and
recognition
In 2009 our achievements were recognized by leading media institutions and
publications. Following are selected awards and recognition we received:
Category: Performance and Efficiency
• Latin America’s Best Bank - Latin Finance magazine.
• Itaú Unibanco was one of the 20 most profitable
publicly-traded financial institutions in the
United States and Latin America. The ranking was
• Bank of the Year, Latin America - The Banker
conducted by consulting firm Economática.
magazine.
•O
ne of Brazil’s Most Admired Companies,
• Global Leader for Banking in Latin America Emerging Markets Report.
• Best Bank in Brazil - Latin Finance.
and First Place, Banks Category - Carta Capital
magazine survey.
•B
razil’s Most Shareholder-Friendly Company Institutional Investors magazine.
• Bank of the Year, Brazil - The Banker.
•O
ne of the Best and Biggest Financial
• Best Bank in Brazil - Global Finance magazine.
Conglomerates – Fundação Getúlio Vargas
(FGV) Conjuntura Econômica magazine, with
• Best Bank in Brazil – Euromoney magazine, for
the 11th time. Also, Itaú BBA was chosen Best
special recognition for: Best in Retail and
Highest Net Income Growth.
Regional Cash Manager, South America and Best
Cash Manager, Brazil.
•B
est Money Manager, Funds - Você S/A
magazine and Fundação Getúlio Vargas (FGV).
• Latin America’s Best Managed Company, and
Best Company in Corporate Governance, Brazil Euromoney.
• First Place, Large Banks, and Second Place, Best
Banks - América Economia magazine ranking.
118
•B
est Bank in Fund Management – Exame
magazine Personal Investment Guide.
•B
est Money Manager, Funds - Você S/A
magazine and Fundação Getúlio Vargas (FGV).
LEARN MORE:
To view our full list of awards and
recognition, please see the online version of
this Report at www.itauunibanco.com.br/
• Itaú BBA was named Best Bank in Latin America,
Investment Banking by The Banker.
Partners, with recognition in the Bank and
Category: Brand and Image
Top Intangibles Brazil and First Place in the
• Itaú was named the second most valuable brand
2009 Reputation Index ranking.
in Brazil by Brand Finance and Brand Analytics.
• Itaú BBA was recognized for the Deals the Year
Award by Latin Finance magazine.
•B
anking Report Award, presented by Relatório
Bancário. Winner in 11 categories.
• Itaú BBA was named one of the World’s Best
Investment Banks by Global Finance magazine.
Outstanding Private Bank - Latin America by
organized by Época Negócios magazine.
Excellence in Customer Service Award,
Category: Information
Technology and the Internet
presented by Consumidor Moderno magazine.
• In the E-Finance Award, presented by
Private Banker International magazine,
considered the world’s top award in the wealth
management segment.
• Itaú Unibanco Private Bank was named Best
The 100 Most Prestigious Firms in Brazil,
• Winner in the Premium Bank and Credit
Cards categories for the Modern Consumer
• For the second consecutive time, named
• We were included in the 2009 Brands Yearbook:
Executivos Financeiros magazine, Itaú won
• Winner in the CEO of the Decade, Marketing
in five categories: Correspondent Banking,
and Communication Personality of the Decade
Business Intelligence, Virtualization,
and Relationship of the Decade categories for
Applications Development and Hardware.
the Modern Consumer Excellence in Customer
Private Banking Services Overall in Brazil and
Service Award, presented by Consumidor
The Outstanding Private Bank of the Americas
Moderno magazine.
by Euromoney magazine.
• World’s Best Foreign Exchange Banks - Country
Winners - Brazil by Global Finance magazine.
• Intangibles Brazil Award, presented by Grupo
Padrão and consulting firm DOM Strategy
119
Glossary
AA1000
Bookrunner
An international standard designed to ensure
Any bank that structures a securities issue by
the quality of accounting, auditing and social
setting the price and inviting other subscribers
and ethical reporting, composed of principles
to participate. It also structures the order book
and a set of process standards. Its goal is to
for debt securities or shares and allocates the
support organizational learning and overall
securities among the investors.
performance - financial, environmental
and ethical – leading to the organization’s
Coaching
contribution to sustainable development.
The process of preparing people, through
individual monitoring and training, by offering
Apimec
them the tools, knowledge and opportunities
Association of Capital Markets Analysts and
needed for professional development.
Investment Professionals. A Brazilian group
which promotes cultural activities designed to
Commodity
stimulate the integration, training and expertise
Materials requiring a manufacturing process
of its members.
before they are ready for consumers. These
products are normally traded on commodities
Assessment
exchanges.
A term used in the area of human resources to
describe methods for identifying current and
Credit
potential skills. The result of applying these
Covers the value of loans and financings,
methodologies allows greater understanding
including endorsements and sureties.
of development possibilities and career
advancement for those candidates being
Customer deposits
assessed.
Customer funds held on deposit by a bank.
Assets
Decoupling
Includes the use of monies, typically in
The ability of an economy to grow without
possessions and rights.
corresponding increases in environmental
pressure.
Benchmark
financial market the term is used to determine
Dow Jones Sustainability World Index
(DJSI World)
an index which acts as a comparison parameter
Launched in September 1999, the Dow Jones
between investments. An exchange rate
Sustainability Indices were the first to evaluate
fund, for example, may use the US dollar as a
the financial performance of the world’s
benchmark.
leading sustainability companies. The Dow
A reference or example to be followed. In the
Jones Sustainability World Index covers the top
performing 10% of a group of 2,500 companies
on the Dow Jones Global Total Stock Market
Index, measured by financial, environmental
and social criteria.
120
Efficiency Ratio
Mentoring
Shareholders’ Equity
The ratio between non-recurring interest and
Partnership between a more experienced
The difference between a company’s assets
interest income (financial margin + income
professional, who acts as a tutor, and a
and liabilities, or the firm’s net worth.
from services + income from insurance,
less experienced professional, in order to
annuiities/capitalization and pensions + other
exchange experiences and knowledge, and
Solvency (Basel) Ratio
operating income + tax expenses).
promote professional and personal growth.
The size of a company’s after-tax income
compared to its total debt obligations. It
Follow-on
Recurring Net Income
provides a measurement of how likely a
An additional offering of shares, which had
The difference between revenue and
company will be to continue meeting its debt
been in the control block, after a company
expenses, net of income tax and profit
obligations.
conducted a previous share issue.
sharing, recorded by a company during
the fiscal year, excluding non-recurring or
Stakeholder
extraordinary events.
Any strategic relationship group.
the economy of a country in a period, usually
Recurring Return on Equity
Value Added Statement
one year.
The ratio between a company’s recurring
Financial statement which shows how
net income and its average shareholders’
much value or wealth has been created by
equity.
a company by using its capacity, capital,
Gross Domestic Product (GDP)
Refers to the sum of all wealth generated by
IPO
manpower and other resources, and how
Initial public offering, or the first time a
Return on Equity (ROE)
it is allocated among stakeholders such as
Net profit divided by shareholder’s equity,
employees, lenders, shareholders and the
for a given period.
government in an accounting period.
Corporate Sustainability Index (ISE – BM &
Roadshow
Value at Risk (VaR)
FBovespa) comprises companies recognized
A travelling presentation of business
A company’s total risk exposure, or the
for their commitment to sustainability, as
opportunities to institutional investors
maximum potential expected loss of an
selected from the Exchange’s 150 most
which specialize in globalized business.
investment portfolio, with a given probability
company’s shares are offered to the market.
ISE Sustainability Index
Created in 2005, the São Paulo Stock Exchange
actively-traded companies.
and time horizon.
SA8000
Leasing
International standard of social
An agreement where one party gives another
responsibility that covers the quality
party the right to use a property, payable via
of working conditions, developed and
lump sum or rent.
supervised by Social Accountability
International (SAI).
Market share
Percentage held by a company of the entire
Sarbanes-Oxley (SOX)
market available to it.
An American law, enacted in 2002, which
establishes rules for the standardization and
improvement of the financial controls of
publicly-traded companies which are listed
in the United States.
121
Appendices
the Global Reporting Initiative (GRI), an interna-
B
B+
A
A+
External verification
Sustainability Report follows the guidelines of
The 2009 Itaú Unibanco Holding S.A. Annual
C+
Self-declared
Assessed by
third-parties
Optional
About this Report
Mandatory
C
Assessed by GRI
tional standard for sustainability reporting, and
the Brazilian Association of Public Companies
(Abrasca). This Report also compares the Bank’s
formalizes the eight main challenges for
Sustainability Report. The main demands and
financial, social and environmental performance
the Organization’s sustainable performance
subsequent actions taken are summarized in
with the 10 Principles of the Global Compact
and served as a reference for selecting the
the table below.
(see table on page 123), a United Nations initiative
contents of this Report. The Essence is the
to disseminate corporate responsibility.
result of a first examination, which included
The 2009 Itaú Unibanco Holding S.A. Annual
consultations with experts and staff, plus
Sustainability Report represents the collective
analyzing financial sector benchmarks.
work of hundreds of people who provide
Now that a little over a year has passed since
information and indicators on the Bank’s
the merger that created Itaú Unibanco Holding
S.A., in most cases we were able to present
In addition to the Essence of Sustainability,
performance throughout the year. It reflects
consolidated performance information covering
in December 2009 Itaú Unibanco hosted a
a process of continuous improvement
the operations of the entire Organization, in
Multistakeholder Panel that brought together
and bettering our sustainability practices.
Brazil and abroad, from January 1 to December
60 representatives from the Bank’s strategic
Accordingly, all comments, criticisms and
31, 2009. Where this integration has not yet
relationship groups – employees, customers,
suggestions are extremely valuable to us and
been consolidated, information specific to each
suppliers, competitors, experts, civil society
should be e-mailed to visibilidadecorporativa@
transaction is presented. Similarly, any data
organizations and the media. The focus
itau-unibanco.com.br.
range limitations are described in the notes
of the meeting was to evaluate the 2008
accompanying the tables.
This Report has a GRI Guidelines A+ application
Multistakeholder Panel – Principal Recommendations
level in responding to all key indicators and the
supplement for the financial services sector.
Demands
Actions Taken
Socio-environmental information was subject
Integrate the eight themes of the
Essence of Sustainability into the
Report
The themes are discussed throughout the Report and are identified by icons. There are also specific
texts to show the relationship of the content to the Essence topics.
Provide comparative data to facilitate
understanding the indicators
To enable monitoring the progress of our indicators, we have presented some responses from the
previous Report, where the base is comparable. However, there is no consolidation of sustainability
indicators of the Brazilian financial sector in the GRI standard.
Present goals
One year after the merger, the integration of systems and operations has allowed some goals to be
presented, at the end of the chapters. Other goals, however, are qualitative and as such are not shown.
Present the positive and negative
impacts of the operation
The impacts were constantly evaluated, demonstrated by the transparency of the Bank’s
communications.
Use the Report as a stakeholder
education tool
The magazine and audio versions of the Report were widely distributed to Itaú Unibanco S.A.
stakeholders, and played an educational role in reporting our economic, social and environmental
performance using accessible, journalistic language.
Include the voice of stakeholders
through testimonials
The magazine and audio versions of the Report feature testimonials from customers, employees and
representatives of other stakeholder groups.
Highlight relationships between
the Bank (branches) and the local
community
The Report describes relationship actions with the community, such as microcredit initiatives
and social and cultural projects. The process of integrating Bank operations, which continued
throughout 2009, was a limiting factor for the development and identification of key actions on the
direct relationship between branches and communities.
Describe employee engagement
actions for sustainability
The Report presents the role of employees in Itaú Unibanco’s sustainability agenda and highlights
actions of the joint construction of solutions, such as the Ideas Bank and Sustainability Leaders.
to an assurance from PricewaterhouseCoopers
Independent Auditors, whose report appears on
pages 126-127.
Among the principles most important to
the quality of a sustainability report are the
inclusion of stakeholders and materiality,
namely, focusing on the presentation of
topics and issues essential to the operation
of the company and to society. The Itaú
Unibanco Holding S.A. Annual Sustainability
Report undertook key procedures to meet
these conditions. At the end of 2008 the Bank
created the Essence of Sustainability, which
122
• About this Report
• GRI Cross Index and Correlation with the Global Compact
• Independent Auditor’s Limited Assurance
• AA1000 Assurance Statement
• Communication and Service Channels
10 Principles of the Global Compact
Human Rights
Environment
1. B usinesses should support and respect the protection
of internationally proclaimed human rights.
7. Businesses should support a precautionary approach to
environmental challenges.
2. Make sure that they are not complicit in human
rights abuses.
8. Undertake initiatives to promote greater environmental
responsibility.
Labour Standards
3. Businesses should uphold the freedom of association and
the effective recognition of the right to collective bargaining.
4. The elimination of all forms of forced and compulsory labour.
5. The effective abolition of child labour.
9. Encourage the development and diffusion of environmentally
friendly technologies.
Anti-Corruption
10. Businesses should work against corruption in all its forms,
including extortion and bribery.
6. The elimination of discrimination in respect of employment
and occupation.
Global Reporting Initiative Cross Index and Correlation with the Global Compact
Global Reporting
Page
1.2. Impacts, risks and opportunities
2–5
8; 18 and 19
Organizational Profile
8
2.2. Primary brands, products, and/or services
8
2.4. Location of organization headquarters
2.5. Countries where the organization operates
Page
3.12. GRI Summary
Assurance
8; 16 and 17
8
8; 16 and 17
126
Governance, Commitments, and Engagement
Governance
4.1. Governance structure of the organization
26 and 29
4.2. Executive officers
30
30
3.1. Reporting period
122
4.3. Independent and/or non-executive Directors
4.4. Mechanisms for shareholders and employees to provide
recommendations or direction to Board
4.5. Linkage between compensation for Board members,
senior managers and executives
and the organization’s performance
4.6. Processes in place for Board to ensure conflicts of interest
are avoided
4.7. Process for determining the qualifications and expertise
of Directors
4.8. Statements of mission, values, codes of conduct and
principles relevant to economic,
environmental and social performance plus status of their
implementation
3.2. Date of most recent previous report
122
4.9. Procedures of the Board of Directors
122
4.10. Processes for evaluating Board performance
2.6. Nature of ownership and legal form
2.7. Markets served
2.8. Scale of the reporting organization
2.9. Changes during the reporting period
2.10. Awards received in the reporting period
8
8; 16 and 17
11
8
10; 23; 85 and 118
Report Parameters
Report Profile
3.3. Reporting cycle
3.4. Contact point for questions regarding the report or its
contents
Report Scope and Boundary
3.5. Process for defining report content
122
72 and 122
122
3.7. Limitations on the scope or boundary of the report
122
3.8. Basis for reporting
122
122
122
8 and 88
28
28
30
11
22; 23 and 30
30
Commitments to External Initiatives
4.11.Whether and how the precautionary approach or
principle is addressed
3.6. Boundary of the report
3.9. Data measurement techniques and the bases of calculations of Itaú and Unibanco
3.10. Explanation of the effect of any re-statements of information provided in earlier reports
3.11. Significant changes from previous reporting periods
Global
Compact
Principle
123
3.13. External assurance
2.1. Name of reporting organization
2.3. Operational Structure
Global Reporting
Indicadores gerais
GRI Content Index
Strategy and analysis
1.1. Messages from the Chairman and the President
Global
Compact
Principle
4.12.Externally developed economic, environmental and
social charters, principles or other initiatives
4.13. Memberships in associations
36
6; 7 and 48
34
Stakeholder Engagement
4.14. List of stakeholder groups engaged by the organization
4.15. Basis for identification and selection of stakeholders
with whom to engage
4.16. Approaches to stakeholder engagement, including
frequency of engagement
by type and by stakeholder group
4.17. Key topics and concerns that have been raised through
stakeholder engagement
72
122
72 and 122
122
123
Appendices
Economic Performance Indicators
Indicadores de desempenho
Page
Global
Compact
Principle
ECONOMIC PERFORMANCE
EN22. Total weight of waste by type and
disposal method
Form of management
EC1. Direct economic value generated and distributed
15
EC2. Financial risks and opportunities related to climate
change
23 and 59
EN24. Hazardous waste transported
EC4. Financial assistance received from the government
115
In 2009, the lowest salary was 5% higher
than the national minimum wage. In 2008
it was 15% higher.
EC6. Policy, practices and spending on locallybased suppliers
EC7. Procedures for local
hiring
No significant spills were recorded.
8
The Organization does not perform the monitoring of this information. Waste generated
by the company is properly transported and
disposed of by third-parties.
8
Itaú Unibanco does not significantly affect
water bodies and/or habitats through
discharge or drainage, as it generates only
domestic effluents
8
Products and Services
EN26. Mitigation of impacts of products and services
98 and 99
EN27. Percentage of products sold and their packaging
materials reclaimed
The Organization’s practice is to undertake
selective processes in its own facilities where
job opportunities are available. Generally,
candidates come from those facilities.
107
7, 8 and 9
8 and 9
Compliance
EN28. Monetary value of significant fines
Indirect Economic Impacts
EC8. Development and impact of infrastructure investments
8
EN25. Water bodies and habitats affected
Market Presence
Global
Compact
Principle
106
EN23. Total weight and volume of significant
spills
2
EC3. Pension Plan
EC5. Ratio between lowest salary and local
minimum salary
Page
PerformancedeIndicators
Indicadores
desempenho
In 2009, the Organization received no
environmental fine or penalty.
Transport
100 – 116
EN29. Impacts of transporting products and other goods
and materials
ENVIRONMENTAL PERFORMANCE
Form of management
105
Overall
Materials
EN30. Total environmental protection expenditures and
investments
EN1. Materials
8
EN2. Percentage of materials used that are recycled
8–9
Performance Indicators
107
Page
Energy
EN3. Direct energy consumption
106
8
SOCIAL PERFORMANCE
EN4. Indirect energy consumption
106
8
Labour Practices And Decent Work
EN5. Energy saved due to conservation and efficiency
improvements
106
8 and 9
EN6. Energy efficient or renewable energy based products
and services
106
8 and 9
EN7. Initiatives to reduce indirect energy consumption and
reductions achieved
106
8 and 9
EN8. Total water withdrawal by source
105
8
EN9. Water sources affected by withdrawal of water
105
8
EN10. Water recycled and reused
105
8 and 9
LA1. Total workforce by employment type and region
LA2. Total number and rate of employee turnover
LA3. Benefits provided to full-time employees
Water
Global
Compact
Principle
75 – 77
6
79
Labour/Management Relations
LA4. Percentage of employees covered by collective
bargaining agreements
1 and 3
LA5. Minimum period for notification in advance of
operational changes
3
1 and 3
Biodiversity
Occupational Health and Safety
Protected and high biodiversity areas
The Bank’s operating units are located solely
in urban areas.
8
EN12. Impacts on biodiversity
see EN11
8
EN13. Habitats protected or restored
see EN11
8
EN14. Management of impacts on biodiversity
see EN11
8
EN15. IUCN Red List species
see EN11
8
8
EN11. Protected and high biodiversity areas
Emissions, effluents, and Wast
EN16. Direct and indirect emissions of greenhouse gases
105
EN17. Other indirect emissions of greenhouse gases
105
EN18. Initiatives to reduce emissions of greenhouse gases
105
7, 8 and 9
EN19. Emissions of substances harmful to the ozone layer
103
8
EN20. NOx, SOx and other emissions
103
8
Discharged water is only from domestic utility
and collected rainwater.
8
EN21. Total water discharge
LA6. Percentage of total workforce represented in
joint management/worker health and safety
committees
LA7. R ates of injury, occupational diseases, lost days and
absenteeism, and work-related fatalities
79
1
LA8. Programs regard ng serious diseases
1
LA9. Health and safety topics in agreements with unions
1
LA10. Hours of training
78
6
LA11.Programs for skills management and continuous
learning
76
LA12. Percentage of employees receiving regular performance and career development reviews
78
Training and education
Diversity and equal opportunities
124
LA13. Composition of governance bodies and workforce
1 and 6
Page
Indicadores de
Performance
Indicators
desempenho
LA14. Ratio of basic salary of men to women by employee
category
Global
Compact
Principle
Investment and Procurement Practices
SOCIAL PERFORMANCE – PRODUCT REPSONSIBILITY
HR1. Percentage and total number of investment agreements with human
rights clauses/screening
No investment contracts were
undertaken during the period.
1, 2, 3, 4, 5 and 6
HR2. Percentage of suppliers evaluated for human rights
and actions taken
99 and www.itauunibanco.com.
br/relatoriodesustentabilidade
1, 2, 3, 4, 5 and 6
PR1. Assessment of impacts
No training sessions on this topic
were conducted in 2009.
1, 2, 3, 4, 5 and 6
PR2. Non-compliance with the voluntary codes
1, 2 and 6
98, 99
PR3. Procedures for products and services labelling
61
The Organization does not
perform the monitoring of this
information.
1, 2 and 3
PR5. Practices related to customer satisfaction
1, 2 and 5
Compulsory and Slave Labour
89 and 90
Communication and Marketing
PR6. Adherence to laws, standards and codes
HR7. Operations with risk of forced or compulsory labour
98, 99
1, 2 and 4
The Organization does not perform the
monitoring of this information.
PR7. Non-compliance
Security Practices
HR8. Security personnel trained in human rights
99
1 and 2
Indigenous rights
Customer Privacy
PR8. Violation of customer privacy
HR9. Violations of indigenous rights
The Organization has no record of any violation of rights of indigenous peoples.
1 and 2
Form of management
Community
SO1. Managing impacts of operations on communities
44, 45
SO3. Training in anti-corruption policies
44, 45
SO4. Measures taken in response to cases of corruption
38; 40 and 41
10
FS3. Socio-environmental monitoring of client
38; 40 and 41
10
FS4. Training in socio-environmental policies
10
114, 115; 117
1 and 5
In 2009 Itaú made no political campaign contributions as there were no
elections. As a practice, in election years our support for political campaigns
is fully transparent and consistent with the principles and values of the
Organization.
10
41; 44; 61
FS5. Interactions on socio-environmental risks/opportunities
91; 93
Financial Services
40 and www.itauunibanco.com.br/
FS6. Percentage of portfolio of business lines
53 and 60
FS7. Products and services for social benefit
FS8. Products and services for environmental benefit
65 and
FS9. Socio-environmental policies audits
91; 93
FS10. Interaction with companies on socio-environmental issues
FS11. Assets subject to socio-environmental screening
FS12. Voting policies applied to socio-environmental issues
Society
FS13. Access in areas of economic disadvantage
Anti-competitive Behaviour
SO7. Legal actions for anti-competitive behaviour, anti-trust and monopoly practices
24; 25; 38 – 40; 56
FS2. Socio-environmental risk assessment
44, 45
To ensure the ethical conduct of this procedure, the Committee created
a Contributions Policy Committee, composed of board members and
executives of the Bank. This committee examines the candidates’ platforms
and careers, and after extensive evaluation and discussion chooses
those candidates offering proposals judged most effective for achieving
sustainable development and improving the living conditions of Brazilians.
The contributions go entirely to the candidates and not to political parties,
and are recorded by the Organization, in strict compliance with legislation
regulating donations to political campaigns.
Fines paid - Procon – Individual complaints
about products: R$38,040.03
FS1. Socio-environmental policies
Public Policies
SO5. Participation in public policy development and
lobbying
51 – 54
FS14. Access for people with disabilities
There were no reports during the period.
Our concern with the issue of competition is
described in our new Code of Corporate Ethics,
and will become even more evident through
corporate communications undertaken
during 2010.
1
Financial Services Sector Performance Indicators
110 a 117
Corrupção
SO2. Assessments of risks related to corruption
89
Compliance
PR9. F ines for non-compliance with laws and
regulations concerning provision
and use of products and services
SOCIAL PERFORMANCE – SOCIETY
SO6. Contributions
to political parties
PR4. Non-compliance
Child Labour
HR6. Operations with risk of child labour
44; 61
Product and Service Labelling
Freedom of Association and Collective Bargaining
82 and www.itauunibanco.com.
br/relatoriodesustentabilidade
Form of management
Customer Health and Safety
Non-discrimination
HR5. Operations where freedom of association and collective
bargaining may be at risk
R$141,869.16 – total fines paid for breaching municipal bylaws dealing with service
time, not including labour issues and/or
products and services.
SO8. Fines and penalties for non-monetary
non-compliance with laws and regulations
Form of Management
HR4. Cases of discrimination
Global
Compact
Principle
Compliance
1 and 6
SOCIAL PERFORMANCE - HUMAN RIGHTS
HR3. Hours of human rights training for employees on
human rights
Page
Indicadores
Performancede
Indicators
desempenho
77 and 99
Products
FS15. Development and sale of products and services
FS16. Financial education
22 and 23
54; 91 and 93
125
Appendices
Independent Auditors’ Limited Assurance
Report on the Annual Sustainability Report
for 2009 of Itaú Unibanco Holding S.A.
To the Board of Directors
Introduction
We have been engaged to perform a limited assurance engagement on the Annual Sustainability
Report for 2009 of Itaú Unibanco Holding S.A., prepared under the responsibility of the Bank’s
management. This responsibility includes designing, implementing and maintaining internal
control over the proper preparation and presentation of the Annual Sustainability Report for 2009.
Our responsibility is to provide a limited assurance report on the information disclosed in the
Annual Sustainability Report for 2009 of Itaú Unibanco Holding S.A.
Criteria to Prepare the Sustainability Report
The Annual Sustainability Report for 2009 was prepared in accordance with the guidelines for
sustainability reports of the Global Reporting Initiative (GRI-G3) for the A+ Application Level. By
following these guidelines, Itaú Unibanco Holding S.A. reported 78 performance indicators between
essential and additional, and 16 performance indicators of the financial sector supplement.
Procedures Applied
Our limited assurance work was performed in accordance with Assurance Standards and
Procedures NPO-01 issued by the Brazilian Institute of Independent Auditors (IBRACON) and
comprised: (i) planning the work, taking into consideration the relevance and the volume of
information presented in the Annual Sustainability Report of Itaú Unibanco Holding S.A.; (ii)
obtaining an understanding of the internal controls; (iii) examining, on a test basis, evidence that
supports the quantitative and qualitative data in the Annual Sustainability Report; (iv) interviewing
the managers responsible for the information; and (v) comparing the financial information with the
accounting records. These procedures were deemed sufficient to allow a limited level of assurance
and, consequently, do not include all those required for issuing a broader assurance report, as set
forth in Assurance Standards and Procedures NPO-01.
Our limited assurance work also comprised checking the application of the requirements
prescribed by GRI-G3 for the reports with A+ Application Level.
126
Scope and Limitations
The objective of our work was to verify and evaluate whether the data included in the Annual
Sustainability Report for 2009, with respect to the obtaining of qualitative information and
measurement and calculation of quantitative information complies with the following criteria:
(i) Brazilian Accounting Standards NBC T 15 - Social and Environmental Information; and (ii)
guidelines for sustainability reports from the Global Reporting Initiative (GRI G3). Opinions,
historical information, descriptive information and information resulting from subjective
evaluations are not included in the scope of the work performed.
Conclusion
Based on our limited assurance work, we are not aware of any significant change that should be
made to the information included in the Annual Sustainability Report of Itaú Unibanco Holding
S.A. for the year ended December 31, 2009, for this information to be fairly presented, in all
material respects, in accordance with the criteria utilized for the A+ Application Level.
Further Considerations
With regard to the definition of Sustainability Report Contents, in accordance with GRI-G3
principles, we noted that the 2009 report is clearer in respect to the process of merger between
Itaú and Unibanco and the integration of performance indicators of sustainability, in addition to
presenting a unique strategy for sustainability.
São Paulo, March 26, 2010
PricewaterhouseCoopers
Independent Auditors
CRC 2SP000160/O-5
Manuel Luiz da Silva Araújo
CRC 1RJ039600/O-7 “S” SP
127
Appendices
AA1000 Assurance Statement
Consistent with the ongoing process of independently auditing Itaú Unibanco’s stakeholder
engagement procedures, BSD Consulting reviewed the preparation of the 2009 Itaú Unibanco Annual
Sustainability Report as it pertains to the Bank’s current Policy and Essence of Sustainability.
Objectives and Scope
The auditing process is designed to provide Itaú Unibanco stakeholders with an independent
opinion on: sustainability management processes; compliance with AA1000AS 2008 principles; and
the continuity of the Bank’s engagement processes. The scope of our work covers the information
contained in the print and online versions of the 2009 Itaú Unibanco Annual Sustainability Report.
Methodology
The independent evaluation process was conducted in compliance with AA1000 Assurance Standard
2008 Type 1, which provides a moderate level of assurance. The evaluation approach consisted of:
monitoring stakeholder panels, analysis of the Bank’s ongoing engagement processes, and checking
those issues arising from the Bank’s new Sustainability Policy, a key element of which is the Essence
of Sustainability. We interviewed managers and stakeholders currently involved in the processes of
engagement or Essence issues in the Bank.
Responsibilities and Limitations
The Annual Sustainability Report is prepared by Itaú Unibanco, which is responsible for its content.
Assessments of the reliability of the data reported and related GRI application levels were outside
the remit of BSD Consulting.
Independence
BSD Consulting is a company which specializes in sustainability. We operate independently, and
no BSD employee has any professional consulting relationship or other commercial ties with
Itaú Unibanco. BSD Consulting is licensed by AccountAbility as an assurance provider (AA1000
Assurance Licensed Provider), under registry number 000-33.
Key Findings - AA1000AS Principles
1. Inclusion – addresses the participation of stakeholders in the development of a transparent, strategic
sustainability management process and the scope of these management efforts
Following is our analysis of this Principle, pursuant to the Bank’s Sustainability Policy.
128
• Governance and management: after a smooth merger process, Itaú Unibanco was able to align its
management areas with sustainability and created committees that functioned at an operational level
in 2009. However, there is a need to consolidate a strategic endorsement of sustainability management
at senior levels, which could result in commitments and goals for the Organization’s performance in
relation to the objectives of its Sustainability Policy.
• Ethics and transparency: the new Itaú Unibanco entity enjoys a positive history in promoting ethics
among employees and transparency with stakeholders. In 2009 the Bank undertook efforts to give even
greater transparency to the relationship with its customers, however, the Organization still has failings in
this area, as evidenced by an increased number of complaints.
• Products and services: Itaú Unibanco continuously seeks to improve its service packages using social
and environmental criteria, and to meet customer needs through consultations with key stakeholders.
However, it is essential to balance the relationship between customer needs and products offered
by modifying the sales strategy and customer service. This can help eliminate controversial market
practices, as the search for market growth and the impacts of conventional products may conflict with
the Organization’s pursuit of sustainable development.
• Employees: the forms of dialogue with staff (Speak Frankly and the employee Ombudsman) were
effective in identifying and resolving critical issues. The internal audit of these processes and the plan to
revisit the SA8000 certification procedure underlines the Organization’s commitment to its employees.
We expect this same approach to be maintained in the Bank’s international expansion activities.
• Relationship with suppliers: the Bank still does not conduct proactive engagement to develop its
suppliers (with the exception of security and transport personnel), which leads to major sustainability
challenges. However, this area has shown commitment to the policy’s goals, working not only in the
complex risk assessment of suppliers, but also beginning a full review of contractual status, including,
among others, SA8000 criteria in all contracts.
• Relationship with customers: Itaú Unibanco seeks to improve its level of service excellence using
different tools such as Customer Forums, the Ombudsman, Relationships with Consumer Protection
agencies and the inclusion of manager goals in an effort to restore or maintain customer satisfaction
levels. The success of these measures will depend on how well the Bank can put into practice the
necessary changes and include card customers, a group composed primarily of non-account holders
who are served by third-parties, and who are not as committed to the Bank as regular customers.
• Relationship with society: investments in society through the Bank’s Institutes are recognized for their
level of excellence. The Bank should pursue the same level of excellence in transparency with respect
to those issues most critical to society, such as fees and interest rates and the financing of political
campaigns, which are not often discussed in the institution’s communications.
129
Appendices
• The Environment: Although the Bank has shown progress over the so-called retrofitting of
materials in building renovation and calculating emissions and waste, it still fails to integrate
sustainability through a management system such as ISO 14000, which forces the Bank to commit to
continuous improvement and a broader scope for the entire branch network. The Bank should also
strengthen the assessment of its environmental impact in indirect credit, which for now is restricted
to just a few sectors.
• Relations with shareholders: the relationship with shareholders is thoroughly assessed inside
and outside the Bank, and employs a wide range of relationship channels and a high degree of
transparency. We suggest including shareholders in the Sustainability Policy, as this stakeholder
group has huge potential to positively influence the Bank’s sustainability agenda.
2. Materiality (or relevance) - addresses issues necessary for stakeholders to draw conclusions on the
Organization’s economic, social and environmental performance
To define the issues which are most relevant to the search for sustainability, Itaú Unibanco has
established, via consultation with experts and other stakeholders, the Essence of Sustainability,
which comprises the following issues:
• Governance Transparency;
• Customer Satisfaction;
• Socio-environmental Criteria;
• Diversity;
• Climate Change;
• Financial Education;
• Microfinance; and
• Stakeholder Engagement.
We found that all these issues are being addressed within the ongoing processes of the
Sustainability Policy, and are already assessed under the principle of Inclusion.
Based on the views of stakeholders involved in the Essence evaluation panels, the Bank needs to
improve its explanation of the issues presented and provide tangible goals for progress regarding
the selected areas. In our view, this process would be better served with a more systematic
mapping of the Bank’s stakeholders and a materiality test showing that the areas actually relate to
key issues raised by stakeholders.
130
3. Response Capacity - addresses actions taken by the Organization due to specific
stakeholder demands
• Itaú Unibanco has channels such as the Ombudsman, Customer Forum and a supplier website
to respond to the needs of its stakeholders. These and other existing channels work well, but it is
extremely important that third-parties or non-account holders, who are impacted by the Bank’s
operations, receive the same degree of response to critical issues raised.
• The response to the market to create new products and realign business objectives in keeping
with sustainability is ongoing, but a greater effort should be made to promote sustainable products
and attitudes. Customers and shareholders still do not associate the Bank with sustainability.
• The Bank has recognized and addresses the issue of greater transparency to its customers, an
effort that deserves further attention in future Reports.
• Organizational responses in relation to environmental challenges have begun and should
continue on a more expanded basis through the introduction of a more rigid management system,
in addition to the GRI indicators report.
• The reporting of targets presented in previous reports is essential to chart the Bank’s performance
regarding sustainability.
After a one year period dedicated to organizational consolidation, Itaú Unibanco has begun
integrating its sustainability management process by investing in the promotion of key issues and
compliance with the sustainability policy. In turn, this policy should take on a greater role in the
Organization’s processes and strategy through clearer goals and monitoring results and impacts.
São Paulo, March 17, 2010
Beat Grüninger
Partner - BSD Consulting, Brazil
131
Appendices
Communication and Service Channels
Itaú Customer Services
Unibanco Customer Services
Head Offices
Capitais e Reg. Metropolitanas
4004 4828
Main cities and metropolitan regions
4002 0030
Torre Olavo Setubal
Investor Relations Services
Torre Conceição – 11.º Andar
E-mail: [email protected]
Shareholder Services
São Paulo - SP
Av. João Pinheiro, 195 – Térreo
CEP 30130-180 – Sra. Jussara F. Souza
Brasília – DF
SCS Quadra 3 – Edifício Dona Angela – Sobreloja
CEP 70300-500 – Sra. Constância M. S. Oliveira
Curitiba – PR
Rua João Negrão, 65 – Sobreloja – CEP 80010-200
Sra. Márcia N. Machado
Porto Alegre – RS
Rua Sete de Setembro, 746 – Térreo –
CEP 90010-190 – Sra. Sandra F. da Silva
Rio de Janeiro – RJ
Rua Sete de Setembro, 99 – Subsolo
CEP 20050-005 – Sra. Mônica Lopes C. Rodrigues
Salvador – BA
Av. Estados Unidos, 50 – 2.º andar
Edifício Sesquicentenário – CEP 40010-020
Sr. Watson P. Barreto
São Paulo – SP
Rua Boa Vista, 176 – Subsolo – CEP 01014-000 Sra. Claudia Germano Vasconcellos
132
Other locations
0800 970 4828
www.itau.com.br
SAC
0800 728 0728
Corporate Ombudsman
0800 570 0011
Caixa Postal n.º 67.600
CEP 03162-971
Clients with hearing disabilities
0800 722 1722
Other locations
0800 722 3030
www.unibanco.com.br
SAC
0800 726 1809
Ombudsman
0800 722 6281
Clients with hearing disabilitie
0800 722 2808
Credits
Reading Guide
27, 29, 30, 32, 34, 35, 37, 39, 40, 42, 43, 44, 47, 49, 50, 51, 52, 53,
55, 56, 58, 59, 60, 61, 62, 64, 65, 66, 67, 69, 73, 74, 75, 76, 77, 78,
79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 90, 91, 92, 93, 95, 97, 98,
104, 105, 107, 117, 118 and 119
Edu Simões – 31
opposite page).
100, 109, 110, 111, 112, 113, 114 and 116
Online Report
Torre Olavo Setubal
revista
Dialogues
People
Climate Change
Financial Education
FSC Certification
Microfinance
Diversity
Printed Version
Audiobook
Magazine
1
Torre Olavo Setubal
www.itau.com.br
2009
R$608 billion
39.8 million
102,000
88,000
4,900
12 countries
in assets
clients
employees
suppliers
Present in

R$608 bil 39.8 milli 102,000 88,000 4,900 12 cou

Transcription

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