ESG Products

Financing of Positive Impact Industries

We are committed to contribute with R$400 billion by 2025, through business initiatives that foster a sustainable and increasingly greener and more inclusive economy. In our “positive impact” rating, we have selected six major sectors for positive impact financing:

▪ renewable energy: generation of energy from cleaner sources, such as solar, wind and small hydroelectric power plants, which contribute to reducing the negative impact on the environment and society;

▪ energy services: initiatives that reduce the cost of access to energy, making this basic service more accessible across Brazil;

▪ health and education: hospitals and laboratories that improve the quality of life, and educational institutions, which aim at the population qualification and employability;

▪ infrastructure works: projects that increase the economic development through rail transport, sanitation and solid waste;

▪ pulp and paper: projects that contribute to climate mitigation, based on responsible management;

▪ Agribusiness: initiatives that promote the preservation of forest areas and good practices and investment in productivity, ensuring food availability, supporting biodiversity, the preservation of water resources and carbon inventory. In addition to the financing of these industries, ESG Operations (Green Bonds, Social Bonds, Sustainability Bonds) and ESG products of the Retail segment, such as Microcredit, Loans to Women Entrepreneurs, Credit for Solar Panels and Financing of Electric Cars, are also included.

ESG debt securities in the capital market in the local market

Itaú BBA has played an outstanding role in structuring the issuances of ESG debt securities in local capital markets following the guidelines of the International Capital Market Association (ICMA) and best market practices, which include operations with a green, social or sustainable seal, or operations with a seal of transition or characteristics linked to sustainability targets (“ESG-Linked”). The offers that counted on Itaú’s participation had a diversified range of fixed income ESG-labeled products.

Agribusiness Receivables Certificates (CRA), Real Estate Receivables Certificates (CRI), Promissory Notes (NP), Incentive Debentures supported by Federal Law No. 12,431/11, Simple Debentures, Credit Rights Investment Funds (FIDC), among others, were issued. (*) ESG offers in which Itaú took part were subject to the appraisal of specialized consultancies for “Second Party-opinion” (SPO)

ESG debt securities in the capital markets, foreign market

Itaú BBA has played an outstanding role in structuring the issuances of ESG debt securities in foreign capital markets following the guidelines of the International Capital Market Association (ICMA) and best market practices, which include operations with a green, social or sustainable seal, or operations with a seal of transition or characteristics linked to sustainability targets (“ESG-Linked”). (*) ESG offers in which Itaú took part were subject to the appraisal of specialized consultancies for “Second Party-opinion” (SPO).

ESG proprietary funding

Proprietary issuances (green, social or sustainable) in which funds raised must be used to finance or refinance eligible green and/or social investments in our loan portfolio, as described in our Sustainability Finance Framework. Learn about the allocation of funds in the Report on the Allocation of Sustainable Funding 2022.

BBA ESG Advisory

We have a team dedicated to providing advisory services to clients and originating ESG operations at Itaú BBA. We understands that, especially in emerging markets, such as Brazil and other countries where the Bank operates, the commitment not only from clients, but also from financial institutions, is required to materialize the additionality of ESG operations so that it can be enjoyed by all stakeholders.

We have opted for not charging clients (in terms of service provided) for ESG advisory services, so that this motivates clients and recurring issuers to anticipate the trend of ESG integration in their business model and, therefore, they may contribute to the global challenge of achieving the UN 2030 Agenda goals.

Green Entrepreneur Plan

The Plano Empresário Verde (Green Entrepreneur Plan) is an Itaú BBA’s product in Brazil, which consists of financing residential or commercial real estate developments that foster sustainable construction. In order for the project to be eligible to the Plano Empresário Verde, the real estate development must have at least one of the three certifications currently accepted, namely: EDGE Certification (Excellence in Design for Greater Efficiencies); AQUA Certification (High Environmental Quality); LEED (Leadership in Energy and Environmental Design) Certification.

Green Onlending

Repasse Verde (Green Onlending) is the sustainable mortgage loan for individuals. The program aims at offering the best rate available at Itaú on the contract date for those who buy apartments in buildings with sustainable certifications from the developments that were financed by the Green Business Plan. The Green Onlending benefit is applied to purchase transactions financed by individuals, offered at the time the real estate unit is transferred to the final buyer.

Reverte Program

The Reverte (Reverse) program is an initiative of Syngenta and, in the Cerrado (Brazilian scrubland), a partnership with TNC (The Nature Conservancy), aimed to technically and financially promote the conversion of degraded pasture areas into arable areas in the Cerrado.

In addition to increasing productivity, this movement enables expanding production areas without the need of opening new areas. Agricultural producers who adhere to the program comply with the environmental and social criteria, and receive technical guidance and technological solutions provided by Syngenta and partners to implement the project for the recovery and conversion of the areas. We are partners of the Reverte program, providing exclusive financial solutions that are suited to the agricultural producer needs to carry out the project.

Bioinputs

Bioinputs made its way into the ABC+ Plan in 2021 as one of the technologies with potential to mitigate GHG emissions from farming systems.

In addition to this one, adopting it brings several other benefits to the system, such as improving the fixation and availability of soil nutrients for plants, favoring the natural cycling of soil nutrients, building organic matter, reducing production costs and exchange rate fluctuation impacts (given that organic products are mostly of national origin and reduce dependence on imports).

Solar Energy

The Linha Energia (Energy Credit Line) is intended for investments in acquisition, installation and/or maintenance of photovoltaic energy generation projects in operations of agricultural producers, farming industries and cooperatives. In addition to promoting energy transition in farming activities, it contributes to the installation of stable and safe infrastructure in rural areas, reducing the risk of energy supply interruptions and mounting production costs. In 2023, Solar Power financing totaled R$5.6 million.

Coverage

The Cobertura (Coverage) line is aimed at agricultural producers and production cooperatives. The purpose of the line is to supplement a good practice already widely adopted in Brazilian agricultural production, namely the no-till system on straw, that is, without tilling the soil. The adoption of a cover crop in the off-season makes up, together with crop rotation and no-till system on straw, the so-called Direct Planting System, which is one of the various practices of the regenerative system of agricultural production.

Certifications

The Certificações (Certifications) line is intended for financing certified production (agricultural producers and production cooperatives). For now, this line of products includes two certifications recognized internationally for their robust protocols and for comprehensively covering sustainability in rural production: RTRS (Round Table on Responsible Soy Association) for soybean producers, and Rainforest Alliance for coffee, citrus and other fruit crops.

ESG-linked loans

Itaú BBA operates in the structuring of several ESG loan operations, both onshore and offshore, following the guidelines of the Loan Market Association (LMA) and best market practices, which includes operations with a green, social or sustainable seal, or operations with a seal of transition or characteristics linked to sustainability targets (“ESG-Linked”). Loan operations contracted with Itaú Unibanco may be structured in different financial products, such as working capital, debtor risk, foreign currency products, such as Export Credit Notes (NCE), Export Prepayment (PPE), loans (Loan 4131), among others. These products follow their specific regulation with the additionality of ESG requirements, criteria and guidelines.

ETF ISUS11 – Itaú Asset Management

A listed equity fund with shares traded on stock exchanges, it covers monitors the performance of the B3’s Corporate Sustainability Index (ISE).

ETF GOVE11 – Itaú Asset Management

A listed equity fund with shares traded on stock exchanges, it monitors the performance of the B3’s Corporate Governance Index (IGCT).

ETF YDRO11– Itaú Asset Management

Itaú Unibanco’s international listed equities fund, which replicates the S&P Kensho Hydrogen Economy portfolio, tracking the performance of companies focused on the hydrogen economy, an element with high combustion power and great potential to revolutionize the energy market.

ETF REVE11 (“Green Revenues”) – Itaú Asset Management

Aimed at investing in companies that are well advanced in the transition to a green economy, this ETF replicates the portfolio of the Russell 1000 Green Revenues 50 Index, providing access to shares of 50 global companies that make the highest proportion of their earnings from green products and services, according to the European Union’s green taxonomy.

International Itaú ESG Portfolio Fund– Itaú Asset Management

A diversified allocation fund with significant improvement in ESG performance of invested assets. Derived from the successful Fundo Carteira Itaú, this fund offers a complete portfolio with investments in Brazil and abroad in equivalent vertex funds, but with ESG methodology.

Itaú ESG water index fund – Itaú Asset Management

This is a fund that tracks the performance of the largest global water-related business companies. With access to 50 global companies from 10 countries, this fund offers investments linked to a theme little explored in Brazil and, therefore, with great potential for diversification.

Itaú ESG clean energy index fund – Itaú Asset Management

This is a fund that features clean energy linked investments in the world, offering access to over 30 global companies active in clean energy generation, such as biofuels, solar power and wind power, supporting the transition to a more emissions-efficient economic system.

Itaú ESG Moment Fund – Equities – Itaú Asset Management

This fund provides clients with an unrestricted equity strategy, seeking absolute long-term returns and avoiding investing in companies currently involved in ESG disputes, by including the Itaú Asset ESG filter to pick companies as it combines the search for companies with high quality of business and management with the flexibility to explore market opportunities.

Itaú ESG Active Fix Fund – Itaú Asset Management (fixed income)t

Fundo Itaú Active Fix ESG (Fixed Income): the purpose of this fund is to invest in companies from industries with positive environmental and social impacts in their core business, such as healthcare, education, sanitation, renewable energy and low-income housing, among others.

Itaú global ESG equities fund

This fund invests in global companies with the best ESG performance in their industries (best-in-class). This fund tracks the MSCI World SRI index, which integrates quantitative and qualitative ESG aspects in the company screening and selection process. In addition to selecting top ESG-performing companies, the index screens out companies that operate in controversial sectors or are involved in ESG controversies in connection with their operations, products and services (negative screening).

Microcredit

In our microcredit operations, we offer formal and informal microentrepreneurs (up to R$ 360,000/year in revenue) a line of credit to finance productive activities, in line with the national program for productive and oriented microcredit (PNMPO). We offer more affordable rates, simplicity in hiring and exclusive service, seeking to promote financial inclusion and the creation of an ecosystem of small entrepreneurs for the social and economic development of the low-income population in Brazil.

Loans from the microcredit portfolio are offered throughout the Northeast, with amounts ranging from R$ 400.00 to R$ 21,000.00. In addition, our product is integrated with iti, a free digital bank, and with Itaú, for account holders. The client receives the credit through the application, after a face-to-face technical visit by the microcredit specialist, and is able to manage money digitally, with access to other financial functionalities such as payments, transfers and credit cards.

Financing of electric and hybrid vehicles

We offer differential rates (starting at 1.29% p.m.) to encourage growth in the country’s electricity industry. In this way, we offer our clients benefits that can be another motivator for this choice. We noted a growth in the share of these vehicles in our production of financing lines. In the past 2 years, the volume of credit granted for vehicle financing in these categories grew by 267%, compared to 2020. Compared to 2021 there was a 22% increase. We also offer a consortium option for electric and hybrid vehicles, with incentives for paying in cash, in addition to all the benefits of a consortium, such as planning, smaller installments and no interest rate.

Solar Panel Financing

Aiming at making it easier for our clients to invest in the installation of sustainable energy generating units (which provide autonomy for their consumption, without generating greenhouse gas emissions), we provide financing lines for solar panels, which contribute to the expansion of renewable energies in Brazil’s energy matrix.

Through an uncomplicated digital experience, we will offer financing to photovoltaic projects for account holders and non-account holders, with differential rates.

Digital accessibility

Accessibility is a pillar in the design of all our projects, products and services. As part of this commitment:

– We follow the W3C’s international digital accessibility guidelines, the WCAG (Web Content Accessibility Guidelines).

– Evaluation of digital channels: such as apps and websites, are evaluated on a large scale with the participation of people with disabilities, guaranteeing autonomy and safety for all audiences.

– Service channels: such as chat, WhatsApp and telephone are accessible and have a qualified team to serve all clients.

– Service in Libras via video call: for clients who are deaf or have hearing impairment and/or speech difficulties, and we have attendants who are trained in Brazilian sign language and who also have hearing impairments.

– Bill in the Braille format: our visually impaired clients who have a credit card have the option of receiving their invoices at home printed in Braille or in large characters, in addition to having accessibility tools on digital channels for a complete experience.

– Branches: they have an inclusive and friendly architecture.

– The ATMs enable self-service for all people, with audio operation for people with visual impairments.

– Credit cards for visually impaired people: the iti has a physical credit card for visually-impaired people, with features such as Braille writing, absence of numbers on the plastic card and a cutout on the side to identify which side should be inserted into machines for making payments.

100% recycled card

First Brazilian card made from 100% recycled plastic promotes reduction in CO2e emissions, energy and water used in the production process compared to cards made of common plastic. In 2023, all new iti account card orders were issued with this fully recycled material, at no cost to the client.

iti: digital bank

It is a full services digital current account at no cost. Iti clients have access to products, such as the acquisition of 100% digital microcredit, salary portability, debit and credit cards, digital withdrawal, mobile recharge, targets, possibility to pay bills, pix (instant electronic payment solution), underage accounts and payroll.

agricultural insurance

We sell 100% of our Agricultural Insurance products through partner insurance companies to protect the agricultural producer’s crops from planting to harvesting against weather events, such as: fire, lightning, hail, frost, water storms, drought, excessive rain, excessive temperature variation, strong winds, and cold winds. If agricultural producers use precision farming, which is a managerial and technological farming process where production systems are developed in a more sustainable way, they may be eligible for rate reductions. The goal of this insurance product is to bring economic stability, maintain jobs in rural areas and foster the development of technology. Additionally, it is also aimed to protect income and production and mitigate credit risk in the agribusiness financing chain, as one of its assumptions is to be of a biological character of our clients’ production and to have total dependence on nature due to climatic events.

Itaú woman life insurance

The Seguro Itaú vida mulher (Itaú woman life insurance) was designed to meet the specific needs of the female audience such as, for example, to ensure a compensation in life for diagnosis of breast or cervical cancer, as well as to indemnify the beneficiaries in case of natural or accidental death

Entry-level and low-cost products

Get the Card protection insurance for unforeseen events that may happen to you when you have your card with you, at an affordable price that fits in your pocket. Protection for all!

Increase the protection of your account against transactions carried out by criminals, in the event of kidnapping. In the event of kidnapping, all amounts will be returned at an affordable price that fits in your pocket!