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Climate Action 2016-2017

COUNTRY PERSPECTIVES

COUNTRY PERSPECTIVES CAIXA ECONÔMICA FEDERAL, BRAZIL Brazilian Bank, Caixa, discuss their contribution to the country’s social and environmental welfare in partnership with the Brazilian government. Through its 155 years of existence, Caixa has grown into more than a bank – it is a complete financial institution present in the lives of hundreds of millions of Brazilians. When it was created in the 19th century Caixa had a clear purpose: to encourage the habit of saving among Brazilians and thus contribute to the formation of citizenship and national development. More than a century and a half later, this purpose is strengthened through our operations as a public company throughout the country, acting not only as a provider of banking services, but also as the Brazilian government’s main partner in implementing programmes in sectors such as housing, sanitation, infrastructure, social benefits and income transfer. CONTRIBUTION TO THE COUNTRY’S WELFARE The company concentrates on constantly increasing its consolidated structure and enhancing its contribution to Brazil, maintaining its position among the largest banks in assets in Latin America. In 2015, Caixa injected more than US$230 billion into the Brazilian economy, through activities such as the distribution of welfare benefits, investments in infrastructure, credit facilities, and the social benefits from Caixa lotteries, among others. The financial results in 2015 showed a net income of US$2.3 billion, a 0.9 per cent growth in 12 months, and an increase of 13 per cent in own assets, reaching US$372 billion. These results reflect recent years’ investment in modernisation of assets and technology parks; building an extensive service network that includes branches, lottery shops, correspondents and boat and truck branches, available for secluded locations; qualification of service channels, focusing on digitisation, segmentation and multi-channel offerings; social and environmental responsibility in credit grants, mitigating risks specific to the sector; and also responsible banking inclusion, prioritising issues such as financial education and offering competitive rates for home financing and access to goods and services. As a partner of the Federal government and an institution with long-term vision, Caixa reaffirms its vocation to believe in the country’s resilience capacity, especially in the face of adverse scenarios. The loan portfolio grew 11.9 per cent in 2015, even during a more restrictive environment in the financial sector. Income transfer programmes totalled US$8.6 billion, highlighting Bolsa Família, which plays a decisive role in fighting extreme poverty and encouraging social inclusion and child and youth education for low-income families. Minha Casa Minha Vida (‘My House, My Life’), the largest housing programme in the country, had contracted funds of up to US$12 billion, with 347,000 housing units. Since the programme’s inception in 2009, more than 3.5 million families have achieved the dream of owning a home. As for labour welfare, Caixa paid US$65 billion in unemployment insurance and the Fundo de Garantia do Tempo de Serviço (FGTS), a worker protection fund. Caixa has also fostered business with positive social and environmental impact, SOLAR ENERGY FOR CAIXA’S BRANCHES Caixa Econômica Federal has an investment programme of US$31 million for solar energy generation in 195 branches, spread over three different regions of Brazil. The forecast is to generate around 19 Gigawatt hours (GWh) a year, which accounts for 3 per cent of the bank’s total energy consumption. The project started in June 2016 with the aim of making 44 buildings 100 per cent sustainable in electricity generation. Photovoltaic panel systems will be installed in 42 branches located in São Paulo, as well as in one of the Headquarters and the Cultural Complex, both in Brasília. The idea is to generate 100 per cent of the energy used in these buildings, which will account for a US$1.3 million cut in the company’s annual electricity bill. The Cultural Complex in Brasília, for instance, will be the biggest solar energy power plant in the country’s capital. Having 360 panels, the energy generated on the building would be enough to supply 50 houses and will supply energy to over 200 shows held in the complex theatre every year. The savings should add up to US$28,000 a year. A pilot project was carried out in December 2014 in a branch in Vazante, in the state of Minas Gerais. The branch was chosen for the location’s high solar exposure measurements, as well as for its proximity to the project managers overseeing its implementation. The Vazante branch is the first self-sufficient bank branch in Brazil, with 276 photovoltaic panels installed on its rooftop. Every year, 115 MWh are produced in the building, enough capacity to provide for 95 houses. The project accounts for a yearly economy of US$16,000. contributed to the generation of knowledge and developed territories affected by our operations, through the Social and Environmental Fund (FSA Caixa, see box), cultural and sports sponsorships and national and international partnerships. Caixa is fully aware of the responsibility it holds as the Brazilian government’s main strategic partner, so it is always seeking to 40

COUNTRY PERSPECTIVES strengthen its position as a reliable bank and chart growth routes aligned to social inclusion and encouraging the promotion of economic activity. Through measures such as the inclusion of sustainability aspects in strategic planning, credit lines operation for crucial sectors – such as agriculture and construction – creating opportunities for home ownership and operation of government funds, Caixa acts in line with the needs of the country and the Brazilian citizen. Caixa Econômica Federal, Brazil (www.caixa. gov.br), is one of Brazil and Latin America’s major public banks, whose business success goes beyond strong financial performance. Created in 1861, today Caixa is the third largest bank in Brazil in assets and one of the five largest in Latin America. We work to encourage sustainability in the financial industry and disseminate it as non-negotiable management criteria for all Caixa operations. With headquarters in Brasília, the institution is linked to the Ministry of Finance and operated as a strategic partner with the Federal government in the infrastructure, housing, and sanitation sectors, contributing to the social and economic development of the country. THE SOCIO-ENVIRONMENTAL FUND (FSA) Through the Caixa Socio-Environmental Fund (FSA), the institution provides financial support for social and environmental projects aimed at integrated development in partnership with public and private organisations. The FSA fund provides non-reimbursable or partially reimbursable investments in initiatives aligned with Caixa programmes, mainly those benefiting low-income groups. FSA financial support is channelled into designated priority areas, such as: • Sanitation and environmental management • Job and income generation • Socially-oriented housing projects • Health • Education • Sports and culture • Social justice and advocacy • Food • Institutional development • Rural development • Sustainable development • Social measures for low-income groups. Since 2011, when it was created, FSA has invested R$139.4 million in 156 projects covering distinct areas of activities, biomes and regions in Brazil. In partnership with the Ministry of the Environment’s National Environment Fund, FSA Caixa also provides support for projects aligned with national environmental policy in two specific biomes: the Cerrado, with a focus on extractive activities and ecotourism; and the Caatinga, where the emphasis is on energy eff iciency, ecological stoves and forestry stewardship plans for smallholders and ceramics and plaster producers. The economic model aims to foster sustainable development in these regions by valuing local knowledge, by promoting sustainable income generation and maintaining environmental assets. Furthermore, beneficiaries’ participation has contributed to enhancing project eff ectiveness and ensuring the empowerment of low-income communities. Sustainable extraction. FSA Caixa has financially supported part of the Mosaico Sertão Veredas- Peruaçu Development Plan, by allocating funds for community capacity building in sustainable cultivation of local fruits; to provide environmental education in partnership with local associations; and to strengthen community organisation, enabling the formation of production and artisan groups. Concluded in 2016, the project delivered training courses for families and, as an example, enabled the production of 7,670 kilograms of buriti palm scrapings to be sold at a profit. Eco-cultural tourism in the Sertão Veredas- Peruaçu. Additionally, FSA Caixa has financially supported the Mosaico SertãoVeredas-Peruaçu eco-tourism development plan. This support covered entrepreneurial training for providers of lodgings and meals, tourist guides, local tourism operators, as well as general training in tourism and the development of eco-cultural itineraries; it also improved infrastructure for three community guest houses. As a result about 1,000 people received benefits from this project. www.climateactionprogramme.org 41