SOCIAL AND ENVIRONMENTAL PERFORMANCE

Transcription

1 SOCIAL AND ENVIRONMENTAL PERFORMANCE 3Q11

2 Summary Summary...1 Index of Tables...2 Index of Figures...3 Social and Environmental Performance...4 Business with Social and Environmental Emphasis...5 Eco-Efficiency...7 Relationships with Staff...9 Recognition of the Investor Market... 12

3 Index of Tables Table 1. Sustainable Regional Development (DRS)...5 Table 2. Microcredit operations...5 Table 3. Credit with Socio-environmental Responsibility (RSA) - Other Programs...6 Table 4. Investment funds with Socio-environmental Responsibility (RSA) criteria...6 Table 5. Use of Water...7 Table 6. Use of Paper...7 Table 7. Growth in the number of scholarships granted Table 8. Employee Training - 12-month flow Table 9. Quarterly Average Expense per Employee (Statement with Reallocations) Table 10. Expenses with profit sharing Table 11. Employee Rotation Table 12. Shares in Stock Indexes in the Brazilian Market - %... 12

4 Index of Figures Figure 1. PRONAF/Proger Rural Portfolio (R$ million)... 6 Figure 2. Automated Transactions without the use of paper... 8 Figure 3. Consumption of toner units... 8 Figure 4. Staff Members According to Age Groups... 9 Figure 5. Tenure... 9 Figure 6. Breakdown of the Staff of Employees by educational level Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

5 Social and Environmental Performance Banco do Brasil has maintained the pioneer initiative among Brazilian banks of disclosing information about its socio-environmental performance. In this chapter, are presented the historical series and analyses that allow the reader to understand the advances and efforts undertaken in the quest to make sustainability increasingly present in the company's strategies and policies. The decision about the quarterly disclosure of this information is based on the commitment to the creation of social and environmental values, materialized in Agenda 21, and the understanding that this data is as important to the company's sustainability as the economic and financial information, deserving a treatment similar to that is already given to it. RSA practices selected to form a part of this report were picked out based on their relevance to the Company's business, on the tangible return to shareholders, and on market research with pension funds and specialists on the subject. The selection of which data justifies the quarterly monitoring of its development (the other indicators are traditionally reported in the Annual Report) was also used as a criterion in the structuring of this report. 4 - Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

6 Business with Social and Environmental Emphasis Banco do Brasil, with its concern for contributing to the improvement in the life quality of society and preserve the environment, carries out businesses that support the sustainable development of the country. Accordingly, the Bank offers environmentally and socially responsible products and services and designs business approaches intended to foster the sustainable development of the Brazilian regions in which operates. Sustainable Regional Development - DRS Sustainable Regional Development (DRS) is a business strategy through which the Banco do Brasil seeks to drive sustainable development, by mobilizing the agents of economic, social, and political activities in order to support productive activities that are economically feasible, socially fair, and environmentally correct. The table below shows the result of the Sustainable Regional Development strategy for 3Q11: Table 1. Sustainable Regional Development (DRS) DRS - Transactions Concluded (R$ million) 10,122 16,821 20,333 Business Plans in implementation 3,681 3,953 3,979 DRS Beneficiaries (million) Bank Accounts opened in DRS assisted communities¹ 218, , ,432 ¹ Accrued Position. Monitoring begun as of Microcredit Microcredit consists in low volume loan transactions, normally aimed at low-income groups that do not have access to conventional credit facilities. Law 10735/03 regulates the concession of loans to the low income population and refers to the allocation of funds corresponding to 2% of the demand deposits obtained by the financial institutions for microcredit operations, at a rate of up to 2% per month. The table below evidences microcredit transactions in the quarter: Table 2. Microcredit operations R$ million Microcredit - Portfolio 1,126 1, Loans in Period Number of Agreements in Portfolio - (million) Family Agriculture - Pronaf Banco do Brasil is the country's largest lender to family farming. Besides performing the social role of supporting small producers and the generation of income in the rural zone, PRONAF enables the Bank to prospect new clients, generate new income and seek new business based on the increase in the loyalty of these clients. The graph below shows the PRONAF portfolio in the quarter: 5 - Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

7 22,084 22,864 23,904 24,995 18,279 18,880 19,998 20,763 Dec/09 Mar/10 Jun/10 Sep/10 Dec/10 Mar/11 Jun/11 Sep/11 Figure 1. PRONAF/Proger Rural Portfolio (R$ million) Credit with Socio-environmental Responsibility (RSA) - Other Programs In addition to the programs already described, Banco do Brasil supports the organic foodstuffs activity (BB Produção Orgânica) and forest production (BB Florestal). The total amount invested in these two lines was R$ 1.9 billion at the end of the quarter. Table 3. Credit with Socio-environmental Responsibility (RSA) - Other Programs R$ million BB Florestal 602 1,907 1,914 BB Produção Orgânica TOTAL 610 1,931 1,937 Other Business with Social and Environmental Attributes Banco do Brasil offers its customers alternatives of investment funds that adopt RSA criteria. Emphasis for the portfolio of BB Ações ISE which is comprised of companies form the theoretical portfolio of Business Sustainability Index - ISE of BM&FBovespa. BB Referenciado DI Social 50 allocates 50% of its management fees, through Fundação Banco do Brasil, to social programs. The new BB Multi Balanceado transfers 20% of the management fee to the Água Brasil program, geared towards the preservation of Brazilian watersheds. Table 4. Investment funds with Socio-environmental Responsibility (RSA) criteria R$ million BB Ações ISE BB DI Social BB Multi Balanceado¹ Total ¹ Activities started in March Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

8 Eco-Efficiency The objective of eco-efficiency is to produce more using fewer natural resources and less energy in the productive process, reducing waste and production and operation costs. In publishing information on eco-efficiency, Banco do Brasil demonstrates the effort undertaken in the increasingly efficient use of natural resources and of energy, reflected not only in the environment, but also in the control of administrative expenses and in risk mitigation. Annual Use of Water in the Main Buildings The ratio below refers to the use of water in Banco do Brasil's main buildings. Main buildings I, II, and III located in Brasilia concentrate a major part of Banco do Brasil's executive officers, in addition to support operating bodies and one branch. Table 5. Use of Water Use of Water in the Main Building (m³) 122, , ,060 Employees in Main Buildings I, II, and III (average) 7,529 10,447 10,151 Use of Water (m³) / Employees¹ ¹Data accrued over 12 months White Paper - Annual Use Banco do Brasil has also put in place a number of steps to reduce the use of paper. Corporate systems are adapted to print preferably on both sides, employee awareness campaigns are created, and customers are encouraged more and more to employ automated channels not involving the use o paper. One example that can be cited is the possibility of BB customers inhibiting the sending of printed credit card invoices. Paper consumption was down in the quarterly comparison and in 12 months, even with the increase in the client base. Table 6. Use of Paper Paper Consumption (tons) 3,549 3,611 3,477 Checking Account Base¹ (million) Consumption per Customer² (gr) ¹ 12 months average ² Data accrued over 12 months 7 - Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

9 Automated Transactions without the use of paper There was an increase in the use of automated channels in the quarter, attaining 43.1%, against 42.8% in 2Q % 42.4% 41.8% 40.0% 42.0% 42.7% 42.8% 43.1% 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Automated Transactions without use of paper Figure 2. Automated Transactions without the use of paper Use of Toner The use of toner is another potential creator of residues related to printing documents. Banco do Brasil uses 100% of reconditioned cartridges. During the quarter, the use of toner had a decrease. 26,378 23,449 24,856 30,471 26,624 24,490 27,376 26,827 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Toner Consumption Figure 3. Consumption of toner units 8 - Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

10 Relationships with Staff This section contains the main actions regarding business sustainability, in connection with investments in staff by Banco do Brasil. Characteristics of Staff Banco do Brasil invests in the creation and strengthening of a bond with its collaborators, so that its professionals feel encouraged to build a career at the institution. The graphs below show the staff stratification by age: 3Q10 2Q11 3Q11 7.7% 7.5% 7.3% 28.8% 36.3% 29.0% 37.3% 29.2% 37.6% 27.2% 26.1% 26.0% Up to 25 years old from 26 to 35 years old from 36 to 45 years old Over 45 years old Figure 4. Staff Members According to Age Groups We present below the breakdown of the staff by length of service: 3Q10 2Q11 3Q % 12.9% 12.7% 3.8% 2.4% 10.9% 22.3% 46.9% 3.6% 9.7% 7.4% 20.8% 45.5% 3.6% 9.4% 8.4% 21.1% 44.9% Up to 5 years From 6 to 10 years From 11 to 15 years From 16 to 20 years From 21 to 25 years Over 25 years Figure 5. Tenure 9 - Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

11 Education and Professional Development Banco do Brasil develops countless education and professional development actions. These actions include presence-based and self-instructional courses as well as the establishment of partnerships to provide distance education solutions and the concession of scholarships (both academic and for languages). Table below displays the growth in the number of scholarships granted: Table 7. Growth in the number of scholarships granted Undergraduate Scholarships 3,646 3,242 3,037 MBAs, Masters' and Doctors' Scholarships 5,246 5,394 5,317 Language Scholarships Total Scholarships Granted 9,103 8,954 8,722 Average number of Employees in the period 108, , ,594 Undergraduate Scholarships per Employee 3.4% 2.9% 2.7% MBAs, Masters' and Doctors' Scholarships per Employee 4.8% 4.8% 4.7% Language Scholarships per Employee 0.2% 0.3% 0.3% Total Scholarships per Employee 8.4% 7.9% 7.7% The charts below display the composition of the staff by level of education. Special emphasis on the employees' evolution with specialization, masters and doctoral degrees. 3Q10 2Q11 3Q % 48.9% 27.6% 48.9% 27.2% 48.8% 0.5% 21.9% 0.5% 23.0% 0.5% 23.6% Elementary School High School Bachelor's Degree Specialization, Master's or Doctorate Figure 6. Breakdown of the Staff of Employees by educational level In addition to the formal education of employees, Banco do Brasil invests in other types of training. A significant number of these courses is developed by the Corporate University of Banco do Brasil. The table below evidences the quantity of hours of training of the employees in presence-based and self-instructional courses and the quantity of employees with Anbima certification Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

12 Table 8. Employee Training - 12-month flow Hours of Training (thousand)¹ 11,993 12,323 13,187 Total employees* 105, , ,689 Hours of training by employees**¹ Employees with Anbid Certification CPA 10 47,226 49,054 48,805 Employees with Anbid Certification CPA 20 12,503 15,176 15,660 ¹Indicator calculated based on data accrued over 12 months Generation of Value to the Employees Personnel Expenses in their diverse aspects comprise an important index of value added by the Bank to staff members. The table below shows the progress of these expenses in absolute terms and in average sums per employee. Table 9. Quarterly Average Expense per Employee (Statement with Reallocations) Personnel expenses (reallocated) R$ million 3,186 3,364 3,481 Average number of employees in the period¹ 105, , ,689 Quarterly Average Expense per Employee R$ 30, , , ¹Headcount does not include trainees. As a manner of providing improved financial returns to collaborators and at the same time confirming the commitment by everybody in the organization with the generation of consistent profits, Banco do Brasil has made efforts to constantly enhance its Employee Profit Sharing (PLR). During 3Q11 the average sum provisioned for paying out to each employee reached R$ 3, Table 10. Expenses with profit sharing Profit Distribution provisioned in the quarter R$ million¹ Average number of employees in the period² 105, , ,689 Average PLR per Employee R$ 3, , , ¹ Accrued profit sharing considered only for BB Multiple Bank ² The number of employees does not include interns Rotation of Staff Members The turnover rate, which measures the proportion of dismissals in relation to the mean headcount in the period, presented a slight increase in relation to the previous quarter. Table 11. Employee Rotation Employee Turnover Rate¹ No. Employees in Prior Quarter 106, , ,913 No. Employees in Quarter 108, , ,594 Terminations in Period² 1, ,014 ¹ Proportion of releases as compared to the average number of employees in the period ² The concept of dismissals includes discharges, retirements, early retirements, deaths and leaves at the request of the employee 11 - Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011

13 Recognition of the Investor Market Besides having a representative share in the Ibovespa, BB participates, among other, in the following indices in the São Paulo Stock Exchange: Differentiated Tag Along Share Index - ITAG; Differentiated Corporate Governance Share Index - IGC; The Corporate Governance Trade Index - IGCT, the Corporate Sustainability Index - ISE and the Efficient Carbon Index - ICO2 The objective of ITAG is to measure the performance of instruments of companies that offer better terms to minority shareholders, in the event of sale of control. The portfolio is composed of shares that grant tag along rights in excess of 80% to minority common shareholders. Banco do Brasil grants 100% of tag along to minority shareholders. IGC's purpose is to measure the behavior of companies shares with good levels of corporate governance and those listed in the Novo Mercado or in corporate governance levels 1 and 2 in BM&FBOVESPA. The Bank is also a member of the IGCT composed of shares of companies with good levels of corporate governance and a high level of liquidity in the financial market. The ISE groups the companies with best corporate governance and socio-environmental responsibility practices of BM&FBOVESPA, and is renewed annually by means of the application of questionnaires and document evaluation. Banco do Brasil has been part of the Index since its creation, in the year Banco do Brasil is also a member of the ICO2 index, composed of shares of companies that adopt transparent practices in relation to their greenhouse gas emissions. Table 12. Shares in Stock Indexes in the Brazilian Market - % Sep/10 - Dec/10 Jan/11 - Apr/11 May/11 - Aug/11 Sep/11 - Dec/11 Carbon Efficient Index - ICO Corporate Governance Trade Index - IGCT Special Corporate Governance Stock Index - IGC Corporate Sustainability Index - ISE Special Tag Along Stock Index - ITAG Source: BM&FBovespa % 12 - Banco do Brasil - Socioenvironmental Performance 3 rd Quarter/2011