2013 Annual Report slide image

2013 Annual Report

ECONOMIC PERFORMANCE EMPLOYMENT Indicators Consolidation Direct economic value generated and distributed G4-EC1 The distribution of added value can be found on page 69 of the Annual Report. Financial implications and other risks and opportunities for the organization's activities due to climate change G4-EC2 The incorporation of social/environmental risks and opportunities is growing in the Bank's business strategy. Although risks are not quantified, the Bank understands the potential for the development of business that promote the advancement of sustainability through our products, processes, and our efforts to let stakeholders know our position on these issues. To that effect, the Bank is committed to our target segments and audiences. They include: widen the availability of low-carbon solutions for our clients; develop new financial models to develop environmental asset markets; act as investors in the low carbon business; prepare, keep and report the greenhouse gas inventory; attain the global targets in emission reduction; offset emissions in scopes I and II; engage target audiences; participate actively in important forums on the climate change topic. Among the practices that underscore this commitment in 2013, the Bank continued to sponsor The Economics of Ecosystems and Biodiversity (the TEEB Brazil), with the objective of calculating the economic value of the local biodiversity, and we also attended the Annual Conference on Ecological Economics sponsored by the International Society for Ecological Economics (ISEE). In terms of social/ environmental risk management, the Social/Environmental Risk Analysis is applicable to clients in sectors that are subject to environmental licensing with limits in excess to R$1 million and Project Finance initiatives. In the field of opportunities, the Bank invested on supporting our clients in the advancement of sustainable practices. The advancement in social/environmental management means added efficiency to business, revenue growth or cost cuts. In the Corporate and Retail segments, the marketing areas gained an in-depth knowledge while improving their social/environmental business skills. Energy efficiency, renewable energy, sustainable construction, corporate governance action and certifications are examples of business totaling approximately R$20 billion per year. Still in 2013, there were advancements in the internal and external perception of the Bank's sustainability approach. For example, the 2013 climate and engagement survey suggested an evolution in the perception of sustainability as a key item of employee engagement. Materiality and Responsibility The Employment and Labor Relations items, under the Human Resources Office, is of material importance for the Bank as this is a topic of interest for stakeholders (i.e., information on how the Bank deals with labor issues); for the Bank's ability in influencing stakeholders; for the reputational risks associated thereto; for the topic being related to key regulations, laws and covenants of strategic importance for the Organization and its stakeholders; due to the high likelihood of generating significant risk for the Organization and because the Bank has taken on public commitments in connection therewith. Impacts - With approximately 50,000 employees, Santander is one of the largest employers in the country. A good relationship with the staff contributes to both attract and retain talent, improve the organizational climate and increase productivity while ensuring compliance with labor laws. However, inadequate people management practices may drive employee turnover, impact the organizational climate while leading to initiatives that are non- compliant with labor laws and agreements, under the risk of incurring in fines and other penalties, which in turn may generate reputational risk and financial losses. Policies and Commitments The Bank has in place special policies for rules concerning benefits such as medical and dental insurance, transport vouchers, and handbooks on the use of meal vouchers and life insurance. We also have in place a policy to hire employees and interns. These policies are available on the Bank's Intranet and are subject to revisions as needed. 152 Annual Report 2013 153
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