2013 Annual Report
FROBEET PORTFOLIO
The Policy should be complied with by all Santander's
employees and interns and by our partners. The guidelines
require compliance with the Brazilian environmental
legislation applicable to the Bank, its financial operations
and other commitments undertaken by the Organization,
such as UNEP FI (United Nations Environment Programme
Finance Initiative) and the UN PRI (Principles for
Responsible Investment).
The policy includes the management of impacts related
to credit operations and services by means of the Social/
environmental Risk Practice; the inclusion of social/
environmental criteria in the process involving the creation/
review of Santander products; and the promotion
of education for the sustainability of employees, clients
and suppliers.
Microcredit: Santander has a specific policy for each
product offered in the microcredit portfolio. The loans
approved should be invested in the stated activity and
under the guidance of a Credit Agent hired to operate
in the regions specified by Santander Microcredit
(low-income communities). The Policy was published
on 06 June 2013. The benchmarks used are rules laid
down by the market and Resolution 4.000 of the
Brazilian Currency Board (CMN).
Other policies which guide the Bank's activities are
the Stakeholder Engagement Policy and the Supplier
Relationship Policy, which guide Santander's commitment
to the promotion of sustainability, managing the Bank's
business in full compliance with the legislation in force,
and based on ethical principles of Human Rights, respect
for the environment and the promotion of stakeholder
relationship based on respect and fairness. At Santander
the policies are in accordance with the best practices
of corporate governance, the principles of the Global
Compact, and other commitments undertaken, including
the Corporate Integrity and Anti-Corruption Agreement.
Commitments
At Santander Brazil, people comply with commitments
which serve as guidelines for the product portfolio either
directly or via Grupo Santander. These include the Equator
Principles, the National Agreement for the Eradication
of Bonded Labor, Roundtable on Responsible Soy, the
Sustainable Livestock Technical Group and UNEP-FI. The
Bank is also a signatory to the United Nations Principles
of Responsible Investment (UNPRI) and a supporter of the
Forest Footprint Disclosure. No new commitments related
to social/environmental risk were undertaken in 2013.
Assessment Mechanisms
Products are assessed throughout their creative process and
monitored on a constant basis throughout the marketing
phase (see more on page 36 of the Annual Report).
Indicators Consolidation
Procedures for assessing and screening environmental
and social risks in business lines G4-FS2
The Bank has procedures in place for the identification
of social and environmental risks related to its activities.
→ Money Laundering - In order to meet the requirements
of the local regulatory authorities and to prevent the
financial system from being used in money laundering or
to fund terrorism, the Money Laundering Prevention Unit
has implemented policies and practices for the acceptance
of clients. As such, potential clients are assessed in
accordance with pre-established risk criteria and are given
a rating prior to establishing a relationship with the Bank.
→ Social/Environmental Risk in Private Equity - In the
field of Private Equity, the Social and Environmental Risk
area has served as the social/environmental manager
of the Infrabrasil Fund since 2006, conducting analyses
based on the standards of the International Finance
Corporation (IFC). The Fund invests in infrastructure
projects and publishes social/environmental monitoring
reports on the projects in question every six months.
Social and Environmental Risk in the Treasury
Department - The Bank has a process in place to assess
the brokers which provide services to the Treasury
Department. The purpose of the Broker Accreditation
Program is to rate the brokers with which the Proprietary
Desk operates every two years, taking into account
technical, social, environmental and governance-related
criteria, as a means of redefining the timeframes in
Social and Environmental Risk Analysis in 2013 G4-FS2
CLIENT ANALYSIS - WHOLESALE
Approved
Approved subject to qualifications
Rejected
Total
I PROJECTS NOT SUBJECT TO THE EQUATOR PRINCIPLES
Approved
Approved subject to qualifications
Rejected
Total
relation to their operations with the Bank. Upon
conclusion of the program the brokers receive feedback
detailing their strengths and suggestions for improvement.
Even though this is a rating process, it is clear many of
these companies have been enhancing their management
processes. The relevance of this program is mirrored in the
importance of these brokers. The Bank operates with the
top stockbrokers on the Brazilian market, which, together,
account for almost 85% of the total volume traded
on BM&FBOVESPA - and which, therefore, have an
enormous capacity to influence the local financial market.
→ Social and Environmental Risk in loan approval and
the acceptance of Wholesale clients - The benchmark
for this process is the Social and Environmental Risk Policy
set out on page 45 of the Annual Report.
2011
1,072
2012
2013
2,053
2,034
51
47
32
3
1
1,126
2,101
2,066
2011
2012
2013
0
0
0
8
1
25
0
0
0
8
1
25
CLIENT ANALYSIS - MORTGAGE LOANS
2011
2012
2013
9
8
8
4
15
11
5
1
0
18
24
19
Approved
Approved subject to qualifications
Rejected
Total
170 Annual Report 2013
CLIENT ANALYSIS - COMPLIANCE
2011
2012
2013
Approved
Approved subject to qualifications
Rejected
91
15
25
24
2
4
27
7
37
Total
142
24
66
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