Indicators

2-6 a) Report the sector(s) in which it is active.
The Banrisul serves the public and private sectors in all economic segments, including civil servants, private sector employees, self-employed professionals and farmers.

2-6 b) Describe its value chain, including:

2-6-b) i) the organization’s activities, products, services, and markets served;
In its commercial portfolio, Banrisul grants lines of credit to various segments, including to small businesses. For the Rio Grande do Sul’s local governments, it offers lines of credit with its own funds to finance capital goods, and on-lending lines of the Brazilian Development Bank (BNDES, in Portuguese) for businesses installation and expansion projects.

Banrisul’s operations serve both the individual and corporate segments and provide commercial, real estate, and rural financing. Banrisul and the group’s companies offer their customers a wide range of financial products and services, including credit cards, securities brokerage, consortium management, payment methods, insurance, private pension plans, capitalization bonds, and intermediation in both variable and fixed income, as well as foreign exchange transactions.

2-6-b) ii) the organization’s supply chain;
Banrisul and its affiliates currently have several types of suppliers: lawyers, consultants, system analysts, vendors of perishable and non-perishable goods, international IT companies, armored truck companies and numerous other service and providers.

2-6-b) iii) the entities downstream from the organization and their activities.
Banrisul acts as a financial agent for customers from industry, agriculture, transport, service, trade and health sectors. Most of them are located in Brazil’s South region.

2-6 c) Report other relevant business relationships.
There are no other relevant business relationships.

2-6 d) Describe significant changes in 2-6-a, 2-6-b, and 2-6-c compared to the previous reporting period.
There were no significant changes.

2-21 a) Report the ratio of the annual total compensation for the organization’s highest-paid individual to the median.

The ratio of the annual total compensation of the organization’s highest paid individual and the average annual total compensation of all other employees (excluding the highest paid) was 10%.

2-21 b) Report the ratio of the percentage increase in annual total compensation for the organization’s highest-paid individual to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual).

The median remuneration of employees, excluding the highest paid, fell from 2022 to 2023, due to the dismissal of 506 employees through the Voluntary Severance Program, so it was not possible to calculate the proportion of the percentage increase requested in item b.

2-21 c) Report contextual information necessary to understand the data and how the data has been compiled.

The Chief Executive Officer was not included in this calculation, since there was a change to the Board of Executive Officers. The reference was the Deputy Chief Executive Officer, who is not an employee of the Bank. Total compensation included salaries, bonuses, job commission, full-time dedication bonus and length of service bonus, overtime, singing bonus, relocation bonus, executive officer bonus, retirement bonus and incentivized retirement plan.

2-29 a) Describe its approach to engaging with stakeholders, including:

2-29 a) i) the categories of stakeholders it engages with, and how they are identified;

• Employees
• Shareholders/investors
• Market analysts
• Customers
• Suppliers
• Government
• Unions
• Board of Executive Officers
• Board of Directors
• Social, Environmental and Climate Responsibility Committee – CRSAC Sustainability Committee

2-29 a) ii) the purpose of the stakeholder engagement;

Banrisul focused its efforts on engaging its stakeholders, especially internal stakeholders and managers. Due to the hiring of new employees and the fact that it was a year marked by changes in the Institution’s management, Banrisul intensified its efforts to connect employees and engage these professionals in the new strategic guidelines.

2-29 a) iii) how the organization seeks to ensure meaningful engagement with stakeholders.

Through the Onboarding Program, the People and Culture Development Unit – Corporate University, responsible for organizing the program, provided newcomers with a unique experience that allowed them to deepen their knowledge of Banrisul’s history, mission, culture, values, practices and goals. The initiative reinforces the Bank’s commitment to the continuous training of its employees, striving for constant improvement.

2-11 a) Report whether the chair of the highest governance body is also a senior executive in the organization.

The chair of the Board of Directors is not in Banrisul’s CEO.

2-11 b) If the chair is also a senior executive, explain their function within the organization’s management, the reasons for this arrangement, and how conflicts of interest are prevented and mitigated.

The chair of the Board of Directors is not in Banrisul’s CEO.

2-30 a) Report the percentage of total employees covered by collective bargaining agreements.

100% of employees are covered by collective bargaining agreements.

2-30 b) For employees not covered by collective bargaining agreements, report whether the organization determines their working conditions and terms of employment based on collective bargaining agreements that cover its other employees or based on collective bargaining agreements from other organizations.

All employees are covered by collective bargaining arrangements, in particular the Collective Bargaining Agreement and its amendment.

2-17 a) Report measures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development.

Every year, Management takes specific courses on topics such as corporate and financial market laws, data disclosure, internal controls, the code of ethics, the Anti-Corruption Law and other subjects related to Banrisul’s activities. In 2023, sustainability and ESG guidelines were included in the lectures, as requested by Management.

2-16 a) Describe whether and how critical concerns are communicated to the highest governance body.

At its ordinary or extraordinary meetings, the Board of Directors receives and resolves on the concerns reported by the Executive Board and the Statutory Audit, Eligibility and Remuneration, Risk and Social, Environmental and Climate Responsibility Committees. In addition to these, the crucial concerns received through the Whistleblowing Channel are communicated to the Board of Directors by means of reports which must contain, at the very least, the number and nature of the communications received, the areas responsible for dealing with the situation, the average time for treatment and the measures adopted by the Institution. If it is proven that employees engaged in wrongdoing, the complaints are brought to the attention of the Ethics Committee.

2-16 b) Report the total number and the nature of critical concerns that were communicated to the highest governance body during the reporting period.

The number and nature of critical concerns are deemed confidential by Banrisul.

2-27 a) Report the total number of significant instances of non-compliance with laws and regulations during the reporting period, and a breakdown of this total by:

2-27 a) i) instances for which fines were incurred;

2-27 a) ii) instances for which non-monetary sanctions were incurred.

In 2023 there were no significant incidents of non-compliance with laws and regulations¹

¹For 2023, in an effort to improve information management, the scope of the indicator was limited to fines and sanctions imposed on the institution in relation to its direct conduct on these issues. In this period, non-compliance incidents that cause social, environmental or climate damage are considered. For this reason, figures published for previous years have been adjusted in this report. This has led to a reduction in the number of cases presented.

2-27 b) Report the total number and the monetary value of fines for instances of noncompliance with laws and regulations that were paid during the reporting period, and a breakdown of this total by:

2-27 b) i) fines for instances of non-compliance with laws and regulations that occurred in the current reporting period;

2-27 b) ii) fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods.

¹All loss events involving administrative and court proceedings, administrative fines and damage to physical assets were considered as fines, such as events associated with bad weather and damage to physical assets (climate scope), data processing and over-indebtedness (social scope).

2-27 c) Describe the significant instances of non-compliance.

Significant cases of non-compliance consist of the total number of operational risk events with a social, environmental and climate scope, comprising fines, notices, damage to physical assets, administrative and legal proceedings (civil and labor) against the Banrisul Group.

2-27 d) Describe how it has determined significant instances of non-compliance.

The instances of social, environmental and climate non-compliance are identified based on Section VIII — Management of social, environmental and climate risks (articles 38-A, 38-B, 38-C) of Resolution 4,557/17 of the National Monetary Council. The articles mentioned above exemplify social, environmental and climate events that may lead to losses for the Institution. When these events are identified based on operating losses, the social, environmental or climate scope is marked.

2-15 a) Describe the processes for the highest governance body to ensure that conflicts of interest are prevented and mitigated.

Banrisul recognizes and manages conflicts of interest in all activities, including in relation to the Board of Directors, in accordance with the applicable legal rules, including Article 156 of Brazilian Corporate Law and Article 25 of the Bylaws.

In addition to the legal regulations, it has a Code of Ethics and Conduct and a Conflict of Interest Booklet for all those involved in the Banrisul Group, both of which are widely disseminated.  

When it comes to credit transactions, compliance also includes the Related-Party Transaction Policy, which defines the conditions for these and other transactions to be carried out.

2-15 b) Report whether conflicts of interest are disclosed to stakeholders, including, at a minimum, conflicts of interest relating to:

2-15 b) i) cross-board membership;

The participation of management members in other positions in Banrisul Group companies is reported in item 7.6 of the 2023 Reference Form.

2-15 b) ii) cross-shareholding with suppliers and other stakeholders;

There are no shareholdings of suppliers or other stakeholders not listed in the 2023 Financial Statements, page 38.

2-15 b) iii) existence of controlling shareholders;

The only controlling shareholder is the State of Rio Grande do Sul.

2-15 b) iv) related parties, their relationships, transactions, and outstanding balances.

We refer to Note 29 to the 2023 Financial Statements. Note 29 – transactions with related parties:

(a) Transactions with related parties are disclosed in compliance with Technical Pronouncement CPC 05(R1) and CMN Resolution 4,818/20.Account balances relating to transactions between consolidated companies are eliminated in the consolidated financial statements and also take into account the absence of risk. With regard to transactions carried out with the State Government and entities fully or jointly controlled by it, we have opted for the partial exemption granted by CMN Resolution 4,818/20. In this case, only the most significant transactions are disclosed. We carry out banking transactions with related parties, including checking account deposits (non-interest-bearing), interest-bearing deposits, open market funding, loans and service contracts. These transactions are carried out at the usual average market amounts, terms and rates in force on the respective dates, on an arm’s length basis.

2-13 a) Describe how the highest governance body delegates responsibility for managing the organization’s impacts on the economy, environment, and people, including:

2-13 a) i) whether it has appointed any senior executives with responsibility for the management of impacts;

The Board of Directors is responsible for steering the Bank’s business, guidelines and institutional goals. It is advised by the Audit, Risk, Eligibility and Compensation, and Social, Environmental and Climate Responsibility Committees, all of which operate on a permanent basis.

The Corporate Risk Executive Superintendent reports to the Chief Risk Officer (CRO) on the Institution’s risk management. The executive is responsible for the Corporate Risk Unit and for coordinating capital management and credit, market, IRRBB, liquidity, operational, social, environmental and climate risks, covering all the institutions in the Prudential Conglomerate. It also considers the possible impacts of risks associated with other companies controlled by Conglomerate companies and other significant risks identified.

In 2023, the Risk Office incorporated sustainability into the Social, Environmental and Climate Risk Department, with the intention of reinforcing the importance of sustainability and promoting integrated action on related risks and opportunities. Thus, the management of the Social, Environmental and Climate Responsibility Policy is aligned with the risk guidelines, integrating processes and directing the focus of its risk and responsibility initiatives.

2-13 a) ii) whether it has delegated responsibility for the management of impacts to other employees.

The corporate risk executive superintendent reports to the Chief Risk Office (CRO) on the Institution’s risk management.

2-13 b) Describe the process and frequency for senior executives or other employees to report back to the highest governance body on the management of the organization’s impacts on the economy, environment, and people.

The Institution has developed a series of indicators and flags to monitor its risk appetite, which are periodically monitored and reported to Senior Management by means of reports and a dashboard. The risk matrix is updated dynamically, with attention to the risks with the greatest exposure. Processes are monitored according to the frequency and impact of their respective risks. The Risk Appetite Statement (RAS), documented for Banrisul’s Prudential Conglomerate, is reviewed annually with the support of the Risk Committee, the Board of Executive Officers and the Chief Risk Officer (CRO).

2-24 a) Describe how it embeds each of its policy commitments for responsible business conduct throughout its activities and business relationships, including:

In its relationship with the various sectors of society, Banrisul acts based on principles of institutional conduct designed to value people and respect human rights. These principles are described in a series of institutional policies, approved by the Board of Directors, which determine the conduct expected of employees, contractors and suppliers.

2-24 a) i) how it allocates responsibility to implement the commitments across different levels within the organization;

The Ethics Committee, which reports to the Chief Executive Officer, is the body responsible for implementing, disseminating, training, reviewing and updating Banrisul’s Code of Ethics and Conduct in order to ensure its efficacy and effectiveness, in addition to analyzing and judging the issues submitted to it, recommending correction of conduct or disciplinary sanctions. The Committee has autonomy and operates independently. In the event of a conflict of interest, the Board of Executive Officers takes the final decision.

2-24 a) ii) how it integrates the commitments into organizational strategies, operational policies, and operational procedures;

Banrisul has an Ethics Committee responsible for implementing, disseminating, training, reviewing and updating Banrisul’s Code of Ethics and Conduct in order to ensure its efficacy and effectiveness, in addition to analyzing and judging the issues submitted to it, recommending correction of conduct or disciplinary sanctions. Therefore, it is incumbent upon the Ethics Committee to carry out this integration process, through policies and training.

Moreover, we had the Privacy and Data Protection Governance Program, which was responsible for integrating data protection commitments.

2-24 a) iii) how it implements its commitments with and through its business relationships;

In its relationship with the various sectors of society, Banrisul acts based on principles of institutional conduct designed to value people and respect human rights. These principles are described in a series of institutional policies, approved by the Board of Directors, which determine the conduct expected of employees, contractors and suppliers. These policies are communicated by means of an Administrative Instruction.

2-24 a) iv) training that the organization provides on implementing the commitments.

All employees receive training on the Code of Ethics and Conduct and the Anti-Corruption Code.

As regards data protection, the Data Privacy and Protection Governance Program was set up this year, comprising several fronts, including:

• Mapping of all activities involving personal data processing, identifying the data life cycle, from collection to deletion, and the appropriate legal framework;
• Creation of a customer service channel for holders of personal data, ensuring the full exercise of all the rights set out in the Brazilian General Data Protection Law (LGPD, in Portuguese);
• Formalization in a standard of a flow of adjustments of contracts with third parties to comply with the LGPD, including the definition of a methodology to help identify the Processor x Controller x Joint Controllers and define the flow for indicating LGPD clauses for business and administrative contracts;
• Implementation of the Privacy by Design and Privacy by Default methodologies in order to ensure the privacy and protection of personal data in the design of new products and services;
• Creation of specific guidelines for handling or responding to security incidents involving personal data, considering the requirements imposed by the LGPD in order to complement Banrisul’s existing Information and Cyber Security Policy; and
• Development of internal training for all the staff on the main points addressed by the Law and their impacts on the workplace, as well as creation of a website featuring content that helps disseminate a culture of data privacy and protection in the Institution.

2-7 a) Report the total number of employees, and a breakdown of this total by gender and by region.

2-7 b) Report the total number of:

2-7 b) i) permanent employees, and a breakdown by gender and by region;

2-7 b) ii) temporary employees, and a breakdown by gender and by region;

2-7 b) iii) non-guaranteed hours employees, and a breakdown by gender and by region;

2-7 b) iv) full-time employees, and a breakdown by gender and by region;

2-7 b) v) part-time employees, and a breakdown by gender and by region.

¹There are no temporary, non-guaranteed hours and part-time employees.

¹There are no temporary, non-guaranteed hours and part-time employees. There are no employees in the North and Northeast regions.

2-7 c) Describe the methodologies and assumptions used to compile the data, including whether the numbers are reported:

2-7 c) i) in head count, full-time equivalent (FTE), or using another methodology;

2-7 c) ii) at the end of the reporting period, as an average across the reporting period, or using another methodology.
Data was generated based reports from HR’s own systems, considering the totals at the end of the year.

2-7 d) Report contextual information necessary to understand the data reported under 2-7-a and 2-7-b.
All permanent employees reported are full-time employees.

2-7 e) Describe significant fluctuations in the number of employees during the reporting period and between reporting periods.
There was a 5.0% increase in employees between 2022 and 2023. To strengthen the team and bring new talent to the Institution, 244 new employees joined the IT departments and 898 employees joined the branch network in 2023.

2-2 a) List all its entities included in its sustainability reporting.
The conglomerate comprises Banco do Estado do Rio Grande do Sul and the following subsidiaries and affiliates: Banrisul Armazéns Gerais S.A; Banrisul S.A. Corretora de Valores Mobiliários e Câmbio; Banrisul S.A. Administradora de Consórcios; Banrisul Soluções em Pagamentos S.A.; and Banrisul Seguridade Participações S.A., all of which are included in the report and the financial statements.

2-2 b) If the organization has audited consolidated financial statements or financialinformation filed on public record, specify the differences between the list of entitiesincluded in its financial reporting and the list included in its sustainability reporting.
The Sustainability Report presents Banrisul’s consolidated information; other entities are not included.

2-2 c) If the organization consists of multiple entities, explain the approach used forconsolidating the information, including:
The approach used in the Sustainability Report concerns the company’s business or service, not necessarily its shareholding structure.

2-2 c) i) whether the approach involves adjustments to information for minority interests;
It does not.

2-2 c) ii) how the approach takes into account mergers, acquisitions, and disposal ofentities or parts of entities;
There were no mergers, acquisitions or disposals.

2-2 c) iii) whether and how the approach differs across the disclosures in this Standard and across material topics.
It does not.

2-18 a) Describe the processes for evaluating the performance of the highest governance body in overseeing the management of the organization’s impacts on the economy, environment, and people.

The Board of Directors is subject to a formal performance evaluation with the aim of gauging effectiveness and improving Banrisul’s governance — an evaluation similar to the one applied annually to the Board of Executive Officers and the Chief Executive Officer. The evaluation process complies with Law 13,303/16 and State Decree 54,110/18, covering self-evaluation and comparison of the results obtained with the targets set, among others.

2-18 b) Report whether the evaluations are independent or not, and the frequency of the evaluations.

Performance appraisals are carried out annually, anonymously, individually and non-independently.

2-18 c) Describe actions taken in response to the evaluations, including changes to the composition of the highest governance body and organizational practices.

All answers to the evaluation questionnaires are compiled into a report, which is sent to the Eligibility and Compensation Committee for prior analysis and then presented to the Board of Directors for consideration. The body suggests improvements in carrying out their duties.

2-5 a) Describe its policy and practice for seeking external assurance, including whether and how the highest governance body and senior executives are involved;
As a way of ratifying the credibility of its information, this report was submitted to an external and independent Limited Assurance of the Bank, carried out by the auditing firm Deloitte Touche Tohmatsu Auditores Independentes Ltda.

2-5 b) If the organization’s sustainability reporting has been externally assured:

2-5-b) i) provide a link or reference to the external assurance report(s) or assurance statement(s);
The assurance report is attached to the 2023 Sustainability Report.

2-5-b) ii) describe what has been assured and on what basis, including the assurance standards used, the level of assurance obtained, and any limitations of the assurance process;
The scope of the assurance is mentioned in the Assurance Report, which is attached to the 2023 Sustainability Report.          

2-5-b) iii) describe the relationship between the organization and the assurance provider.
Banrisul also works with Deloitte to audit its financial statements. Deloitte is an independent external entity.

2-9 a) Describe its governance structure, including committees of the highest governance body.

¹The members have no other duties or commitments to report.

¹The members have no other duties or commitments to report.

¹The members have no other duties or commitments to report.

¹The members have no other duties or commitments to report.

2-9 b) List the committees of the highest governance body that are responsible for decision-making on and overseeing the management of the organization’s impacts on the economy, environment, and people.

The Board of Directors is responsible for steering the Bank’s business, guidelines and institutional goals. It is advised by the Audit, Risk, Eligibility and Compensation, and Social, Environmental and Climate Responsibility Committees, all of which operate on a permanent basis.

2-9 c) Describe the composition of the highest governance body and its committees by:

2-9 c) i) executive and non-executive members;

2-9 c) ii) independence;

2-9 c) iii) tenure of members on the governance body;

2-9 c) iv) number of other significant positions and commitments held by each member, and the nature of the commitments;

Answered in item a.

2-9 c) v) gender;

2-9 c) vi) under-represented social groups;

2-9 c) vii) competencies relevant to the impacts of the organization;
The competencies of members of management are assessed during the eligibility process, according to the information presented in their CVs, in compliance with the Institution’s Nomination and Succession Policy.  In addition, training on Law 13,303 is offered every year to address relevant topics, enabling a diversity of thought and more informed decision-making.

2-9 c) viii) stakeholder representation.
Of the 11 seats available on the Board of Directors, one (1) is reserved for minority common shareholders, one (1) is reserved for minority preferred shareholders, and one (1) is reserved for an employee representative.

2-26 a) Describe the mechanisms for individuals to:

2-26 a) i) seek advice on implementing the organization’s policies and practices for responsible business conduct;

All employees receive training on the Code of Ethics and Conduct and the Anti-Corruption Code. Furthermore, there are rules, institutional regulations and the Whistleblowing Channel, available on the website, which allows the reporting of irregularities, with the option of anonymity, confidentiality and protection against retaliation.

2-26 a) ii) raise concerns about the organization’s business conduct.

Suspicions or evidence of non-compliance with these rules must be reported through the Whistleblower Channel, which receives reports of wrongdoing, with confidentiality, protection against retaliation and the option of anonymity.

2-28 a) Report industry associations, other membership associations, and national or international advocacy organizations in which it participates in a significant role.

The Bank participates in Febraban’s committees and squads, in AMCHAM’s ESG Committee and the Interinstitutional Committee on Environmental Education (CIEA in Portuguese).

2-10 a) Describe the nomination and selection processes for the highest governance body and its committees.

The Board of Directors currently has 11 members, of whom (i) eight are appointed by the controlling shareholder, in accordance with the current legislation (Federal Law 13,303/16; Federal Law 6,404/46 and Rio Grande do Sul State Decree 54,110/18); ii) one is appointed by the common minority shareholders, (iii) one is appointed by the preferred minority shareholders and (iv) one is a representative of employees, elected internally in accordance with regulations.

The Eligibility and Compensation Committee analyzes the nominees, checking the eligibility requirements in the Nomination and Succession Policy, which include skills, experience, availability, diversity, knowledge, behavior, culture, age and gender. The Committee reports to the State Attorney General’s Office, which decides whether the requirements have been met and whether there are no impediments. If the nomination is approved, the election process is carried out by the competent body.

2-10 b) Describe the criteria used for nominating and selecting highest governance body members, including whether and how the following are taken into consideration:

2-10 b) i) views of stakeholders (including shareholders);

The Board of Directors has 11 seats, of which one (1) is reserved for minority common shareholders, one (1) is reserved for minority preferred shareholders, and one (1) is reserved for an employee representative.

2-10 b) ii) diversity;

To reinforce its public commitment to diversity, the Organization is responsible for ensuring that, by 2030, at least 30% of the seats in Senior Management, the Fiscal Council and the Statutory Committees are allocated to diversity, a commitment that extends to the Group’s Subsidiaries, as stipulated in article 111 of the Bylaws.

2-10 b) iii) independency;

The Board of Directors currently has 11 members, of whom (i) eight are appointed by the controlling shareholder, in accordance with the current legislation (Federal Law 13,303/16; Federal Law 6,404/46 and Rio Grande do Sul State Decree 54,110/18); ii) one is appointed by the common minority shareholders, (iii) one is appointed by the preferred minority shareholders and (iv) one is a representative of employees, elected internally in accordance with regulations.Through this composition, the Board is in compliance with article 22 of the Bylaws, which determines, among other things, that 30% of the appointed members are independent, a criterion considered by Banrisul when selecting the members of the highest governance body

2-10 b) iv) competencies relevant to the impacts of the organization.

The competencies of members of management are assessed during the eligibility process, according to the information presented in their CVs, in compliance with the Institution’s Nomination and Succession Policy. In addition, training on Law 13,303 is offered every year to address relevant topics, enabling a diversity of thought and more informed decision-making. The current eligibility process carried out by Banrisul involves various spheres (the Finance Department, the Civil House, the State Attorney General’s Office, among others), providing security and reliability for all stakeholders.

2-1 a) Report its legal name.

Banrisul – Banco do Estado do Rio Grande do Sul S.A.

2-1 b) Report its nature of ownership and legal form.

A mixed-capital, publicly traded corporation, Banrisul trades its shares on Level 1 of Corporate Governance of B3 (the Brazilian stock exchange) and with shares traded on the over-the-counter market under the tickers BRSR3, BRSR5 and BRSR6.

The Bank is an indirect public administration body controlled by the Rio Grande do Sul State and linked to the Rio Grande do Sul State Finance Department.

2-1 c) Report the location of its headquarters.

Banrisul’s administrative headquarters is located in the city of Porto Alegre, Rio Grande do Sul state.

2-1 d) Report its countries of operation. 

The Bank operates only in Brazil, with branches in the states of Rio Grande do Sul, Santa Catarina, São Paulo, Rio de Janeiro, Paraná and the Federal District. As regards foreign operations, in May 2023, the Board of Directors approved the voluntary closing of the Grand Cayman Island branch.

2-23 a) Describe its policy commitments for responsible business conduct, including:

2-23 a) i) the authoritative intergovernmental instruments that the commitments reference;

Banrisul is grounded on the values defined in its code of ethics as transparency, ethics, commitment, integration and efficiency, as well as in principles and guidelines, such as integrity, respect for diversity, people, appreciation of work, social and environmental responsibility, respect for competition, respect for the image and excellence in rendering services.

Anti-Corruption Policy: It lays down the procedures and controls that must be adopted, as well as preventive measures to inhibit acts of corruption. In this sense, in order to improve its controls and adhere to the best market practices, the policy is updated according to changes in legislation. Banrisul also has the Policy on Prevention of Money Laundering and Terrorist Financing, the Compliance Policy, the Internal Controls Policy, the Whistleblowing Channel Policy and the Code of Ethics and Conduct.

The Institution’s integrated Capital and Risk Management structure must be forward-looking and compatible with its business model, the nature of the operations and the complexity of the products, services, activities and processes; proportional to the size and relevance of the risk exposure, as defined by the Institution; appropriate to the risk profile and its systemic importance; and able to assess the risks arising from macroeconomic and market conditions where it operates.

In this context, the identification, measurement, assessment, monitoring, reporting, control and mitigation of several types of risks, namely credit, market, operational, interest rate variation for instruments classified in the banking book, liquidity and social, environmental and climate risks, including relevant risks (according to the criteria established by the Institution) not covered by RWA, are processes intrinsic to the Institutional Capital and Risk Management Structure, as is the observation of adverse effects resulting from interactions between these risks.

Aimed at improving the capital and risk structure with the enactment of CMN Resolution 4,557/17, the Institution documented its risk appetite through the Risk Appetite Statement (RAS) for Banrisul’s Prudential Conglomerate. In this context, Risk appetite is defined by the Basel Committee on Banking Supervision (BCBS) as the level of aggregate and individual risk that an institution is willing to assume within its capacity to achieve its strategic goals and follow its business plan.

2-23 a) ii) whether the commitments stipulate conducting due diligence;

These guidelines/policies set forth responsibilities and consequences for all levels.

2-23 a) iii) whether the commitments stipulate applying the precautionary principle;

The Institution has developed a series of indicators and flags to monitor its risk appetite, which are periodically monitored and reported to Senior Management by means of reports and a dashboard. The risk matrix is updated dynamically, with attention to the risks with the greatest exposure. Processes are monitored according to the frequency and impact of their respective risks.

With the support of external consultants, the structure of the lines of defense was revised in 2023, and inspection activities were transferred from the Internal Audit to the second line of defense. Processes, tools and methodologies for managing risks, controls and auditing were also reviewed. With greater synergy and sharing of information and tools between the second and third lines, it was possible to improve risk management and internal controls.

2-23 a) iv) whether the commitments stipulate respecting human rights.

The principles of the Social, Environmental and Climate Responsibility Policy (PRSAC, in Portuguese) include valuing people and respecting and protecting human rights, including the promotion of inclusion, diversity and financial education. The Bank does not have a specific human rights policy, but as a signatory to the Global Compact since 2013, it reaffirms its commitment to the well-being of its employees and seeks to guarantee the rights of its customers, suppliers and all stakeholders.

2-23 b) Describe its specific policy commitment to respect human rights, including:

2-23 b) i) the internationally recognized human rights that the commitment covers;

No policy specifically addresses human rights issues. However, as a signatory of the Global Compact since 2013, Banrisul reaffirms its commitment to the well-being of its employees and seeks to guarantee the rights of customers, suppliers, and all the public with which it relates.

2-23 b) ii) the categories of stakeholders, including at-risk or vulnerable groups, that the organization gives particular attention to in the commitment.

Employees, customers, suppliers, vulnerable audiences.

2-23 c) Provide links to the policy commitments if publicly available, or, if the policy commitments are not publicly available, explain the reason for this.

Anti-Corruption Policy

Personal Data Protection Guidelines

Social, Environmental and Climate Responsibility Policy

Banrisul’s Anti-Corruption Policy

Code of Ethics and of Conduct

Annual Corporate Governance Charter 2023 – Fiscal Year 2022

2-23 d) Report the level at which each of the policy commitments was approved within the organization, including whether this is the most senior level.

The institutional conduct principles, laid down in several policies, are approved by the Board of Directors.

2-23 e) Report the extent to which the policy commitments apply to the organization’s activities and to its business relationships.

These principles are described in a series of institutional policies, approved by the Board of Directors, which determine the conduct expected of employees, contractors and suppliers.

2-23 f) Describe how the policy commitments are communicated to workers, business partners, and other relevant parties.

These policies are communicated by means of an Administrative Instruction, and all employees acknowledge they have received them by signing an Agreement to Comply.

2-20 a) Describe the process for designing its remuneration policies and for determining remuneration, including:

2-20 a) i) whether independent highest governance body members or an independent remuneration committee oversees the process for determining remuneration;

The Committee is responsible for assisting the Board of Directors in determining compensation by analyzing future internal and external scenarios and their possible impacts on the compensation policy for the Bank’s Management and the Group’s Subsidiaries. To prepare the Compensation Proposal, this committee analyzes the institution’s figures vis-à-vis market practices in order to identify significant discrepancies in relation to similar organizations and propose the necessary adjustments.

2-20 a) ii) how the views of stakeholders (including shareholders) regarding remuneration are sought and taken into consideration;

The following take part in defining remuneration policies: independent members (Eligibility and Remuneration Committee), the Board of Directors, the Government of the State of Rio Grande do Sul (controlling shareholder) and other shareholders. Board members and shareholders have their opinions recorded in the minutes of ordinary and extraordinary meetings and assemblies. The definition of employee remuneration includes the participation of representative bodies, through collective bargaining agreements.

2-20 a) iii) whether remuneration consultants are involved in determining remuneration and, if so, whether they are independent of the organization, its highest governance body and senior executives.

As per CMN Resolution 3,921/10, the Eligibility and Compensation Committee is responsible for assisting in the process of determining compensation and is composed of three independent members.

2-20 b) Report the results of votes of stakeholders (including shareholders) on remuneration policies and proposals, if applicable.

The individual voting results of members of the board of directors or committee members are not available for confidentiality reasons.

2-25 a) Describe its commitments to provide for or cooperate in the remediation of negative impacts that the organization identifies it has caused or contributed to.

2-25 b) Describe its approach to identify and address grievances, including the grievance mechanisms that the organization has established or participates in.

2-25 c) Describe other processes by which the organization provides for or cooperates in the remediation of negative impacts that it identifies it has caused or contributed to.

2-25 d) Describe how the stakeholders who are the intended users of the grievance mechanisms are involved in the design, review, operation, and improvement of these mechanisms.

2-25 e) Describe how the organization tracks the effectiveness of the grievance mechanisms and other remediation processes, and report examples of their effectiveness, including stakeholder feedback.

Information not available – The analysis of positive and negative impacts is under in-depth technical study, in which strategic actions are being mapped out and defined for the medium and long term.

2-19 a) Describe the remuneration policies for members of the highest governance body and senior executives, including:

2-19 a) i) fixed pay and variable pay;

The overall compensation of Senior Management and the Statutory Committees is set annually by the Shareholders’ Meeting, and the Board of Directors is responsible for defining the individual compensation of each Body.

The members of the Board of Directors receive a fixed monthly fee, with no variable compensation or benefits.  

The members of the Board of Executive Officers receive fixed monthly compensation and representation fees and are entitled to Profit Sharing (PLR, in Portuguese) and benefits such as paid time off, meal allowance, food basket allowance and health insurance, as well as variable compensation, provided that it is included in the overall compensation mentioned above, subject to the limits set by current legislation and based on criteria defined by the Board of Directors.

2-19 a) ii) sign-on bonuses or recruitment incentive payments;

Not applicable – the policy does not provide for this type of bonus.  

2-19 a) iii) termination payments;

Not applicable – the policy does not provide for this type of payment.

2-19 a) iv) clawbacks;

Not applicable – the policy does not provide for clawbacks.

2-19 a) v) retirement benefits.

Officers can also join private pension and insurance plans. These benefits may vary according to the specific profile of each professional. Officers who were Banrisul employees before taking office will be covered by the benefit plans they had when they were employees.

2-19 b) Describe how the remuneration policies for members of the highest governance body and senior executives relate to their objectives and performance in relation to the management of the organization’s impacts on the economy, environment, and people.

In addition to the Profit Sharing – PLR, in Portuguese ,(as per collective bargaining agreement), the Banrisul Conglomerate may pay variable compensation to its executive officers, provided it is included in the overall compensation approved by the Shareholders’ Meeting, observing the limits established by the legislation in force and based on criteria that may be defined by the Board of Directors.

2-3 a) Specify the reporting period for, and the frequency of, its sustainability reporting.
Annual.

2-3 b) Specify the reporting period for its financial reporting and, if it does not align with the period for its sustainability reporting, explain the reason for this.
The financial report covers the period from January 1, 2023 to December 31, 2023, the same as the Sustainability Report.

2-3 c) Report the publication date of the report or reported information.
August 2024.

2-3 d) Specify the contact point for questions about the report or reported information.
Questions may be sent to the Investor Relations team through the following channels:
Website: https://ri.banrisul.com.br/
E-mail: ri@banrisul-ri.com.br
Telephone: (+55 51) 3215-3232

2-4 a) Report restatements of information made from previous reporting periods and:

2-4-a) i) explain the reasons for the restatements;
In GRI indicators 305-1, 305-2 and 305-3, the base year used to compare emissions is 2021, year of the company’s first complete and assured inventory. Information on the amount of emissions from the previous year (2022) was restated, as it did not include the correct emissions for 2021.

In indicator 302-1, the amount of diesel oil consumed by motor vehicles has been included in the calculation, in addition to that used by generators. Therefore, values for 2021 and 2022 differ from those published in previous years.

In GRI indicator 2-27, to improve information management, the scope in 2023 was limited to fines and sanctions imposed on the institution concerning its direct conduct in these areas. In this period, non-compliance occurrences that cause social, environmental, or climate damage are considered. For this reason, figures published for previous years have been adjusted in this report.

2-4-a) ii) explain the effect of the restatements.
Given the restatement of information, scope 1 greenhouse gas emissions (Direct Emissions) increased by 0.03% of metric tons of  CO₂, and biogenic CO₂ emissions were up by 0.01% of metric tons of  CO_2. With regard to diesel consumption, data for 2021 increased by 424.3% and 2022 data by 117.2%In addition, the reformulation of cases of non-compliance with laws and regulations has led to a decrease in the number of cases filed in 2023.

2-12 a) Describe the role of the highest governance body and of senior executives in developing, approving, and updating the organization’s purpose, value or mission statements, strategies, policies, and goals related to sustainable development.

In line with its responsibility for steering the Bank’s business, guidelines and goals, the Board of Directors reviews and approves risk management policies, strategies and limits, and sets risk appetite levels in the Risk Appetite Statement (RAS), documented for Banrisul’s Prudential Conglomerate. The Bank also has the Social, Environmental and Climate Responsibility Policy (PRSAC, in Portuguese), which establishes the guidelines for conducting responsibility actions for each area, in a manner compatible with the nature of its activities and the complexity of its products and services, balancing business opportunities, to contribute to the sustainable development of the regions in which Banrisul operates.

Based on CVM Resolution 4945/21, the PRSAC also establishes that governance is effectively delegated to the Board of Directors and an officer responsible for implementing the actions designed to ensure effectiveness. In order to monitor and manage initiatives related to sustainability, the Company relies on a statutory Social, Environmental and Climate Responsibility Committee (CRSAC, in Portuguese), which is responsible for making recommendations to the Board of Directors and assessing the compliance of implemented actions with the Responsibility Policy.

2-12 b) Describe the role of the highest governance body in overseeing the organization’s due diligence and other processes to identify and manage the organization’s impacts on the economy, environment, and people, including:  

2-12 b) i) whether and how the highest governance body engages with stakeholders to support these processes;

As the institution’s highest body as regards the Risk Appetite Statement (RAS), the Board of Directors establishes the risk appetite levels and reviews them annually, supported by the Chief Risk Officer (CRO), the Board of Executive Officers and the Risk Committee.  

2-12 b) ii) how the highest governance body considers the outcomes of these processes.

The Institution has developed a series of indicators and flags to monitor its risk appetite, which are periodically monitored and reported to Senior Management by means of reports and a dashboard.

2-12 c) Describe the role of the highest governance body in reviewing the effectiveness of the organization’s processes as described in 2-12-b, and report the frequency of this review.

The Board of Directors meets monthly to assess the management reports on the main risks to which the institution is exposed. Changes to capital and corporate risk management policies are assessed annually by the body. At Management level, Banrisul relies on the Corporate Risk Committee and the Control and Risk Executive Office and, statutorily, on the Statutory Risk Committee.

2-14 a) Report whether the highest governance body is responsible for reviewing and approving the reported information, including the organization’s material topics, and if so, describe the process for reviewing and approving the information.

The Sustainability Report is submitted for approval to the Board of Directors and the Social, Environmental and Climate Responsibility Committee.

2-14 b) If the highest governance body is not responsible for reviewing and approving the reported information, including the organization’s material topics, explain the reason for this.

Not applicable as the Board of Directors is responsible for approving reported information.

2-22 a) Report a statement from the highest governance body or most senior executive of the organization about the relevance of sustainable development to the organization and its strategy for contributing to sustainable development.

See the answer to this content in the “Message from the CEO” section of the 2023 Sustainability Report, which can be accessed on the Sustainability Report page.

2-8 a) Report the total number of workers who are not employees and whose work is controlled by the organization and describe:
3 attachés and 1,986 interns.

2-8-a) i) the most common types of workers and their contractual relationship with the organization;
Interns: contractual relationship is established through an integration agent called Center for Company and School Integration (CIEE, in Portuguese); and attachés: agreement between agencies for the assignment of employees.

2-8-a) ii) the type of work they perform.
They serve bank customers, act as cashiers, provide documents to customers and perform collection activities. They also provide supporting services to the branches and other Bank departments, manage the flow of bank bags, clear documents and control documents in the archives. They communicate with customers and providing them with information on banking services.

2-8 b) Describe the methodologies and assumptions used to compile the data, including whether the number of workers who are not employees is reported:

2-8 b) i) in head count, full-time equivalent (FTE), or using another methodology;

2-8 b) ii) at the end of the reporting period, as an average across the reporting period, or using another methodology.
Consulting the database – internal system, considering the total figures at the end of the year.

2-8 c) Describe significant fluctuations in the number of workers who are not employees during the reporting period and between reporting periods.
There was a 9.7% reduction in trainees between 2022 and 2023. The variation is due to the length of the trainee contract, which is valid for up to 2 years. Another reason was the increase in the number of employees hired due to the civil service examination, which reduced the number of trainees over the period.

3-2 a) List its material topics.

• Innovation and Technology
• Corporate governance and integrity
• Privacy and data security
• Sales practices and customer satisfaction
• Sustainable products and business
• Partner and supplier management
• Human capital development
• Eco-efficiency
• Diversity and inclusion
• Financial inclusion and education
• Environmental, social and climate risk strategy

3-2 b) Report changes to the list of material topics compared to the previous reporting period.

Compared to 2021, the following new topics were added to the materiality list: “Diversity and inclusion”, “Corporate governance and integrity”; “Data privacy and security”; “Partner and supplier management”, “Human capital development”, “Eco-efficiency” and “Financial inclusion and education”.

In 2022, the topics “Risk approach and opportunities related to climate change” and “Quality of customer service and services provided” were added to the “Environmental, social and climate risk strategy” and “Sales practices and customer satisfaction” topics, respectively. The topic “Management of risks that can significantly impact business” was also added to “Environmental, social and climate risk strategy.

”Furthermore, topics “Management of energy consumption and solid waste generation,” “Criteria for financing assignment, positive impact and delinquency,” “Social investment in the external community” and “Business expansion strategy” have been excluded in this new step.

3-1 a) Describe the process it has followed to determine its material topics, including:

3-1 a) i) how it has identified actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights, across its activities and business relationships;

In 2022, Banrisul conducted a complete materiality assessment to define its material topics, which encompassed peer benchmarking, as well as analysis of the Company’s internal documents and industry literature, such as ESG ratings and standards. A list of material topics for the industry was prepared based thereon. This list was discussed with important stakeholders through interviews and, then it was prioritized through an online survey with larger stakeholder group. Results were assessed using a methodology that weighted the answers according to each stakeholder group. The results of the online survey were consolidated to the topics’ impact study to prepare the final list of material topics.

3-1 a) ii) how it has prioritized the impacts for reporting based on their significance.

Based on the analysis of internal risk documents, possible impacts related to each topic were identified and duly classified as regards their nature and then added to the consolidated materiality results. As a result, the final list of topics was defined based on the impacts of the topics in question.

3-1 b) Specify the stakeholders and experts whose views have informed the process of determining its material topics.

Representatives of the following groups took part in the consultations to define materiality:

• Employees
• Shareholders/investors
• Capital markets
• Customers
• Suppliers
• Government
• Non-profit organizations and/or social institutions
• Union
• Board of Executive Officers
• Board of Directors
• Social, Environmental and Climate Responsibility Committee

The Sustainability department, the Chief Executive Officer and the Board of Executive Officers approved the final material topics. The materiality results were also presented to the Social, Environmental and Climate Responsibility Committee. 

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section, on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

With technological advances, innovation is becoming increasingly relevant and necessary, both as a competitive edge for organizations and as a factor in improving and providing well-being for society. Banrisul sees innovation as a pillar for its business and sustainability, fostering the ecosystem and its various members. Therefore, it works with both closed and open innovation in a structured way.

The ongoing commitment to open innovation is evidenced by Banritech, an open innovation program that accelerates startups and supports initiatives such as Instituto Caldeira (a hub connecting large companies and startups) and NAVI (a hub for artificial intelligence development). Banritech also serves as the Bank’s link to the innovation ecosystem of Rio Grande do Sul and Brazil, promoting collaboration and exchange of information, as well as practices, and learnings.

Being increasingly engaged and influential in the innovation ecosystem allows Banrisul to advance in transforming its internal culture, since direct contact with different solutions and work formats impact the renewal and consolidation of innovative thinking in developing products and services.

Developing a solid innovation strategy allows the Bank to focus on the following internal commitments: prioritizing resources, delivering innovative solutions, gaining market share and driving transformation.

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

Banrisul has identified possible IT security and architecture failures as potential negative impacts.

In order to prevent negative impacts the Bank takes several measures, including preparing and disseminating information and running security campaigns to inform the Bank’s customers and employees; constantly updating tools and resources to protect customer service and relationship channels; updating and maintaining security policies that comply with the requirements of regulatory bodies and the specific needs of the business, in addition to the policies required to guide the business; constantly updating monitoring tools; operating and maintaining systems in the IT infrastructure and state-of-the-art systems to monitor and block suspicious activity in the IT infrastructure; operating and controlling an Identity Management and Digital ID System; operating and maintaining systems to monitor suspicious transactions in customer service channels; operating and controlling data centers; constantly training employees working in IT security; creating and developing projects to improve and maintain the infrastructure; participating in BACEN and Febraban working groups and working groups created to analyze and approve projects, deliver solutions to the business and with system suppliers, and guarantee the necessary protection for both customers and the internal infrastructure; working with hardware and software suppliers to guarantee the delivery of contracted infrastructure services; purchasing products and contracting services in compliance with national (INMETRO 170/2012 / ABNT) and international standards and EPEAT, RoHS, ENERGY STAR, ISO 14024 and IEEE 1680 certifications and sub-divisions; having a project dashboard; creating the third fiber route to the data center; and, finally, purchasing more energy-efficient equipment when replacing existing equipment.

All these measures seek to mitigate Banrisul’s potential negative impacts.

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

The Bank relies on different processes to address the actual negative impacts, such as the operation of the system to monitor suspicious transactions in customer service channels; the operation of the Security Operations Center (SOC), which detects access attempts, breaches and incidents of the Bank’s information security; support for the Bank’s departments directly involved in measures to deal with the negative impacts that security incidents may cause; and, finally, participation in the development and implementation of Continuity of Operations Plan (COOPs), Disaster Recovery Plans (DRPs) and Business Continuity Plans (BCPs), together with other units, mainly business units.

All these actions are designed to contribute to the remediation of actual negative impacts.

3-3 d) iii) actions to manage actual and potential positive impacts.

Banrisul has been taking measures to foster a culture of innovation and the Bank’s participation in the innovation ecosystem in Rio Grande do Sul and Brazil in order to generate and manage positive impacts.

Participating in technology events on security and possibly receiving an award for solutions and products that have outstanding security features are opportunities to generate a positive impact on the topic. In these opportunities, Banrisul works together with other departments to ensure that these events are publicized on internal channels and external media, bringing positive visibility to the business through IT security.

Other measures include training employees on innovation issues and engaging them in projects/activities, such as the South Summit and Caldeira Week. In 2023, a number of programs, projects and processes were initiated to help manage the positive impacts. They include the Innovation Thesis (guiding innovation efforts), the Innovation Pipeline (process for developing innovative ideas), the WHAT IF?! Program (Idea Generation Program), the Innovation Circuit (Training Program on Innovation Topics for Employees) and the Innovation Laboratory (place for experimenting with ideas/solutions).

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

The bank tracks the effectiveness of actions through project deliveries; growth and good reputation of digital solutions; and monitoring of scalability and availability indicators and monthly reports, through annual audits and feedback from business channels.

As mentioned above, in 2023, the focus was on developing processes/artifacts to promote innovative thinking and the creation of innovative products and services. Therefore, the effectiveness of these projects will be evaluated starting in 2024.

With regard to open innovation, in 2023, effectiveness was measured by monitoring the results of partners who have been directly and indirectly fostered by Banrisul. For 2024, the plan is to structure a Banrisul Community, which will make it possible to monitor more appropriate indicators to assess the effectiveness of initiatives.

Product effectiveness is monitored by means of:

• Periodic assessment of the progress of each product through a review ceremony carried out every one or two weeks by the business areas and other interested parties;
• Application of UX metrics to evaluate the performance of specific solutions in the context of the product; and
• Collection and analyses of feedback from product users through surveys and evaluation tools.

Some tools help track effectiveness, including:

• SATI is the channel that receives claims involving technology infrastructure assets and services.
• Dashboard – with grouping and cross-referencing of information for consultation and control for decision-making, which makes it possible to follow the life cycle of the IT solution and initiatives (from the idea to obsolescence), also generating alerts that direct attention to what is most important and urgent in the period of analysis in question.
• CA Spectrum Reports – monthly scalability reports collected and analyzed by each technical coordinator.
• The replacement of workstations (Call for Proposals 424.2023), which considerably reduces interruptions due to hardware failures and offers employees superior performance in tasks, standing out in the Institution for the efficiency and speed of the process.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

Setting Information Security goals, targets and indicators is a major challenge for Banrisul, as most of them are directly or indirectly susceptible to external factors or actions that depend on multiple parties. External factors are not under Banrisul’s control. For this reason, any target could show significant quantitative deviations, but, in most cases, this does not reflect a decline or improvement in information security.

Nevertheless, there is ongoing work to identify goals, targets and indicators that can be meaningful to the market and reflect the high level of information security already achieved, without exposing internal or confidential information.

However, we are already working towards a major goal: no major information security incidents, which has been achieved so far.

As regards to IT, every year, the Board of Executive Officers decides on targets, which are used to draw up a strategy and plan for achieving Banrisul’s goals. Similarly to information security, some of these goals represent a major challenge for Banrisul, given that, in addition to being complex, many of them are directly or indirectly susceptible to external factors or actions that depend on multiple parties/factors. It is up to management and its employees to mitigate the possibilities as much as possible so that Banrisul can achieve its goals, since external factors are not under its control and can negatively influence the delivery of results.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

The effectiveness of IT security actions is evident in the feedback from business channels, the growth of the business, the adoption and growth of digital solutions, the monitoring of scams and fraud against customers and the monitoring of cyberattacks against the Bank’s infrastructure.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

The management and operation of information security in a banking institution involves daily learning, which is first shared with internal teams and then documented in internal manuals and/or corporate standards, or even in the Policy. Changes are disseminated to the appropriate audience, through the unit’s internal forums, for instance. It is not uncommon for learning to also lead to the need for maintenance and investment.

The lessons learned are constantly incorporated, as the impacted areas are involved in the development and approval stages of the programs and processes. Another way of incorporating learning is through connection between Banrisul and external agents.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

In order to protect information and the IT infrastructure, the Bank’s Board of Executive Officers is a stakeholder that supports and promotes the proposed actions. On the other hand, the implementation of policies and methods aimed at security depends on the action and sponsorship of the Technology and Business Units, through their managers and superintendents; thus, they are also in the category of stakeholders. This group has also made every effort to put previously defined policies and methods into practice, contributing to a general culture of security at the institution.

Because innovation projects are strategic and work on the culture of innovation, stakeholders need to be included during all stages of the project, i.e., from idea to implementation. The project is modeled based on the feedback from the stakeholders.With regard to relationships with partners in the innovation ecosystem, contact with universities, other companies and partners provides feedback that is constantly evaluated and contributes to the planning of activities and strategies established for action and promotion.

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section, on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

Encouraging sustainable actions and practices is one of Banrisul’s strategic pillars. The Bank is constantly striving to facilitate the granting of credit to beneficiaries who have proven to operate in a sustainable manner, implementing practices and technologies capable of reinforcing the need to operate so as not to impact future generations, thus creating a Culture of Sustainability.

 There is no specific policy on products with a sustainability bias. However, by granting credit products, it is expected that the funds used by the companies will promote the quality of life of their employees and communities and reduce environmental impacts.          

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

 No potential negative impacts have been identified.         

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

The Bank uses a network of technical partners to set up projects/budgets and releases loans in accordance with technical recommendations.

In order to properly grant credit, the Institution has adopted a social and environmental compliance analysis process for all rural credit proposals, with assessment of environmental compliance, the suitability of agricultural entities and practices, and legal environmental, social and climate criteria. This has enabled the Bank to assess whether the borrower or the area being financed has any restrictions on the granting of rural credit.

3-3 d) iii) actions to manage actual and potential positive impacts.

Environmental management is mainly based on regulatory compliance, which has strict rules and will be added to the determinations of the Green Bureau of the Central Bank of Brazil (Bacen, in Portuguese). All costing operations are incorporated into the compliance forms, and the Bank is constantly undergoing internal and external audits, as well as inspections by Bacen and the Brazilian Development Bank (BNDES, in Portuguese).

Mindful of the legislation, the Institution has revised its internal regulations on environmental compliance. Its goal is to expand rural credit with a sustainable bias and, to this end, it is preparing a campaign to publicize credit to the branch network and technical assistants of the credit lines through courses, lectures and participation in events, such as agricultural fairs.

Lastly, the Bank has partnerships and agreements with technical support contractors, technical support service companies and machinery and equipment retailers, which enables a more agile service and better information to rural producers.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

The Bank is constantly audited by internal and external auditors, as well as by the Central Bank of Brazil and the Brazilian Development Bank (BACEN and BNDES, respectively, in Portuguese). The Company has engaged a consulting firm specializing in agribusiness to monitor internal and market movements, conducting benchmarking to suggest process improvements.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

The Bank’s goal is to expand rural credit with a sustainable bias and, to this end, it is preparing a campaign to publicize credit to the branch network and technical assistants of the credit lines through courses, lectures and participation in events, such as agricultural fairs.         

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

When new legislation is published, an impact analysis is carried out and the necessary measures are taken, including system adjustments and amendments to contractual clauses, among others, as quickly as possible. The effectiveness of the measures is reflected in the results of audits and compliance reports. As for the increase in the sustainable credit portfolio, we will be able to see the increase in the number of “sustainable” loans granted at the end of the period compared to the previous period.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

Mindful of the legislation, the Institution has revised its internal regulations on environmental compliance.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

Stakeholder feedback is an input to improving or adapting processes, aimed at best practices.

¹ Credit lines classified as sustainable, according to internally defined criteria, considering social, environmental and/or climate additionalities, as they direct resources that contribute to: reducing income inequality, generating employment, providing access to health and education, promoting family farming, financial inclusion and health, improving energy efficiency, promoting renewable energy, and supporting sustainable water and sewage management. Monetary values recorded in the Central Bank of Brazil’s Rural Credit Data Matrix.

¹ Credit lines classified as sustainable, according to internally defined criteria, considering social, environmental and/or climate additionalities, as they direct resources that contribute to: reducing income inequality, generating employment, providing access to health and education, promoting family farming, financial inclusion and health, improving energy efficiency, promoting renewable energy, and supporting sustainable water and sewage management.

¹Credit lines classified as sustainable, according to internally defined criteria, considering social, environmental and/or climate additionalities, as they direct resources that contribute to: reducing income inequality, generating employment, providing access to health and education, promoting family farming, financial inclusion and health, improving energy efficiency, promoting renewable energy, and supporting sustainable water and sewage management.

¹ Credit lines classified as sustainable, according to internally defined criteria, considering social, environmental and/or climate additionalities, as they direct resources that contribute to: reducing income inequality, generating employment, providing access to health and education, promoting family farming, financial inclusion and health, improving energy efficiency, promoting renewable energy, and supporting sustainable water and sewage management.

405-1 a) Percentage of individuals within the organization’s governance bodies in each of the following diversity categories:

405-1 a) i) gender;

Percentage of individuals within governance bodies by gender.

405-1 a) ii)  age group: under 30 years old, 30-50 years old, over 50 years old.

Percentage of individuals within governance bodies by age group¹.

¹ There are no members of governance bodies under the age of 30 in the years 2021 and 2022.

¹ There are no brown, indigenous, or yellow individuals who are part of the governance bodies.

There are no people with disabilities in the governance bodies.

405-1 b) Percentage of employees per employee category in each of the following diversity categories:

405-1 b) i) gender;

405-1 b) ii)  age group: under 30 years old, 30-50 years old, over 50 years old;

405-1 b) iii) other indicators of diversity where relevant (such as minority or vulnerable groups).

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic:

Not applicable. There are no specific policies or commitments on the subject.

3-3 d) i) actions to prevent or mitigate potential negative impacts;

Not applicable. No potential negative impacts reported.

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

The Bank set up a management team with professionals dedicated to Diversity and created Affinity Groups, such as the Gender Equity Group, the Race and Ethnicity Group, the People with Disabilities Group, the LGBT+ Group and a Diversity, Equity and Inclusion Committee, with the aim of planning and implementing actions in this area, monitoring indicators and training leaders and employees on the subject.

3-3 d) iii) actions to manage actual and potential positive impacts.

Monitoring of Diversity, equity and Inclusion indicators and Training for leaders and employees.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

The Committee, which has 11 members from different areas, holds monthly meetings to discuss the actions and plans related to Banrisul’s intentions on the topic and receives requests from the affinity groups. In 2023, the Committee coordinated several actions aimed at promoting changes in internal communication, with the monthly distribution of materials on relevant topics to the affinity groups and webinars.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

Banrisul has committed to adopting an inclusion and succession policy to ensure that 30% of the seats in Senior Management bodies, the Fiscal Council and Statutory Committees will be filled based on diversity criteria by 2030.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

At the end of the fiscal year, the Board of Directors had 20% of its seats filled by diversity.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

There have been changes to internal communication, implementation of monthly actions on topics related to the affinity groups, and webinars on diversity.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

Through the creation of the Committee with the participation of 11 members from different areas, including representatives of the affinity groups, and engagement surveys, as well as the creation of affinity groups.

1. The entity shall disclose the amount of card-related fraud losses it incurred during the reporting period.

Card-related fraud losses incurred in the reporting period amounted to R$117,910.2.

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section, on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

There is a standard that determines the flow of adjustments of contracts with third parties to comply with the LGPD, including the definition of a methodology to help identify the Processor x Controller x Joint Controllers relation and define the flow for indicating LGPD clauses for business and administrative contracts.

Specific guidelines have been created for handling or responding to security incidents involving personal data, considering the requirements imposed by the LGPD in order to complement Banrisul’s existing Information and Cyber Security Policy.

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

No potential negative impacts have been identified.

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

In 2023, Banrisul created the Crisis Committee for Personal Data Incidents and approved the flow for reporting incidents related to data breaches, set out in the Guidelines for Preventing and Responding to Personal Data Incidents. The formalization of this process aims to guarantee the appropriate prevention, response and treatment of incidents involving personal data related to Banrisul and its customers, including the means/processes that must be implemented to mitigate and/or remedy adverse impacts.

3-3 d) iii) actions to manage actual and potential positive impacts.

Confidentiality: this information is not disclosed to the external public in order to protect business secrecy.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e)  i) processes used to track the effectiveness of the actions;

In addition to the quarterly report to the Audit Committee, the Internal Audit assessed the procedures, rules and mechanisms adopted to ensure the protection and privacy of personal data, in compliance with the LGPD.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

The annual plan of the Privacy and Data Protection Governance Program defines indicators, which, after approved by the Executive Board, are submitted to and monitored by the Strategy and Planning department.  

Goals and targets are not available for disclosure as they are confidential. Confidentiality: this information is not disclosed to the external public in order to protect business secrecy.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

Every year, the Data Privacy and Protection Governance Program is reviewed to check that the goals set in the previous year have been achieved and to determine the goals for the following year, so that it operates on an ongoing basis.  

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

At the end of each year, the actions planned for the cycle are accounted for in order to identify which initiatives have had actual and potential impacts.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

Stakeholder engagement is crucial to the success of this program both in the role of Senior Management, with the consent and guarantee of implementation, and in the role of the units that comply with the program, in pursuit of compliance with the law.

418-1 a) Total number of substantiated complaints received concerning breaches of customer privacy, categorized by:

418-1 a) i) complaints received from outside parties and substantiated by the organization;

Seven customer complaints involving banking secrecy and/or the LGPD were filed with the Ombudsman’s Office this year, including external bodies.

418-1 a) ii) complaints from regulatory bodies.

The Ombudsman’s Office did not receive any complaints from regulatory agencies, only two from the Central Bank of Brazil, which were also dismissed, i.e., no data breach was identified while handling these complaints.

418-1 b) Total number of identified leaks, thefts, or losses of customer data.

 All complaints were classified as unsubstantiated.            

418-1 c) If the organization has not identified any substantiated complaints, a brief statement of this fact is sufficient.

Substantiated complaints were identified, as reported in the previous items.

Total number and percentage of total FI points of access available in low-populated or economically disadvantaged areas by region and by type of access.

Provide context to this data in relation to overall access to financial services in the regions reported on/provide any benchmarks.

The classification that the reporting organization has used to classify regions.

These data consider the Rio Grande do Sul average urbanization rate of 85.1%, with 404 locations having a lower percentage. Of this total, 92% (372) have some type of Banrisul service. The number of points of service in these municipalities totals 870, including branches, banking stations, ATMs and Banripontos.

The initiatives in place demonstrate the Company’s commitment to promoting inclusion and ensuring that the Bank’s facilities, products and services are accessible to people with disabilities and other special needs. The adoption of recognized standards seeks to ensure that Banrisul’s practices are in line with the best market practices, demonstrating corporate social responsibility and enabling the Bank to increase its customer base and have a positive image in society.

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section, on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

Financial education strategies for both internal and external audiences are based on Bacen Notice 34,201/2019 and the Social, Environmental and Climate Responsibility Policy. With the publication of Joint Resolution 8 of the Central Bank of Brazil and the National Monetary Council, the Bank has been taking part in discussions in a working group with Febraban in order to understand good practices in complying with the obligations set out in the resolution and develop indicators to measure the impact of the actions taken.

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

The financial education strategy is implemented by the People Development Department — Corporate University, which connects working groups with employees from several technical areas and the branch network. The main initiatives for young people and the community usually consist of talks and workshops with children, young people and adults to raise awareness of the importance of financial organization planning. In addition, webinars and content are developed on the Moodle platform, catering to the entire staff, including interns.

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

In addition to the initiatives mentioned in item 3-3-d i, based on the experience developed by branch managers, the working groups and branch representatives co-create a training program for financial education multipliers acting in the communities, considering the appropriate content, activities and language for the different target audiences.

3-3 d) iii) actions to manage actual and potential positive impacts.

Banrisul conducts a diagnosis of every strategy to be developed both for the internal and the external public, identifying their profile and potential vulnerabilities in order to adjust the content and language.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

For online or in-person lectures, workshops and seminars for internal stakeholders, an evaluation survey is carried out immediately after the event. Meanwhile, for events for external stakeholders, pre-event surveys are carried out, enabling the assessment of the level of financial education knowledge, interest and needs, as well as reflections, feedback and an applicability of content after the event.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

The main goals achieved in 2023 were making podcasts available on the Moodle platform; the production of three videos and two podcasts for Global Money Week; the production of social media posts on National Financial Education Week; educational workshops for young people participating in Banrisul’s Pescar project and the Nova Geração Caldeira initiative; Financial Education lecture for Moda Alegre artisan leaders from inner city communities in Porto Alegre; workshop for children in Guaporé; updating of the educational booklet available online on the Bank’s website, with 70,000 printed units for use in face-to-face actions in 2024; and registration of volunteers to participate in the Banrisul multiplier network, with 42 volunteers registered.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

Measuring impact indicators related to Financial Education is a challenge for the financial market as a whole. Banrisul participates in the discussion group of the Brazilian Federation of Banks (Febraban, in Portuguese) and strives to keep up with market practices in terms of actions and monitoring.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

The demands from the community served by Banrisul’s branch network are addressed as they are received. However, the experience gained from working with a wide variety of audiences allows for the development of a more robust plan to expand the Bank’s reach through multipliers. Briefing surveys to map the public and feedback after the end of the activities make it possible to fine-tune actions according to the reported expectations and needs.

1. The entity shall disclose the number of individuals that participated in financial literacy initiatives for unbanked, underbanked, or underserved customers.

2. The entity shall calculate the total number of unique individuals who are documented to have participated in at least one initiative conducted by the entity during the reporting period.

In 2023, 489 people participated in financial education strategies.

3. The scope of disclosure shall include both individual retail customers and relevant commercial customers (e.g., small and medium enterprises and minority owned business).

In 2023, there was no disclosure to individual retail customers and relevant commercial customers.

4. The scope of disclosure shall include financial literacy initiatives provided by the entity directly as well as by third parties for which a contractual agreement to provide such initiatives exists with the entity.

Strategies include lectures, webinars, gymkhanas and workshops developed directly by Banrisul employees.

1. The entity shall disclose the total number of loans outstanding qualified to programs designed to promote small business and community development, and the total amount outstanding of these loans.

All loans granted to small businesses that meet this criterion are listed in the G4 FS7 indicator.

2. The entity shall provide the number and amount of loans outstanding qualified to programs designed to promote small business and community development in accordance with the guidance to Schedule RC-C of the Consolidated Report of Condition and Income (Call Report).

All loans granted to small businesses that meet this criterion are listed in the G4 FS7 indicator.

3. The entity shall consider the FFIEC’s Guide to CRA Data Collection and Reporting a normative reference, thus any future updates made to it shall be considered updates to this guidance.

All loans granted to small businesses that meet this criterion are listed in the G4 FS7 indicator.

4. The entity shall provide a description of its short-term and long-term strategy or plan to expand its portfolio of loans qualified to programs designed to promote small business and community development.

There is no strategy drawn up.

5. The entity shall include a discussion of its results of the examinations for compliance with the CRA.

The Company does not have said compliance examination.

6. The entity shall include a discussion of how its results of the CRA Examinations are integrated into its short-term and long-term financial inclusion and capacity building strategy.

Said examination and report have not been adopted.

1. The entity shall describe its approach to the incorporating environmental, social, and governance (ESG) factors into its credit analysis.

The proposals for targeted credit transactions, above R$10 million, are aimed at production and medium- and long-term investment in the real estate, rural and infrastructure sectors. In these cases, social, environmental and climate risk assessment analyses , are carried out, using a specific form covering industry, location, legal and management characteristics. Throughout 2023, 38 transactions underwent this process.

The Bank monitors its agribusiness credit transactions with a Social and Environmental Compliance System, a tool that aims to identify possible restrictions on access to rural credit due to legal or infra-legal provisions relating to social, environmental and climate issues, as provided for in Rural Credit Manual 2-9 (MCR 2-9, in Portuguese) and other environmental legislation.

The Bank prevents actual negative impacts on operations and on the sale of products and services to the agricultural sector by regularly checking the documents of the enterprise to be financed under rural credit, including, where applicable, its inclusion in the Agricultural Climate Risk Zoning (ZARC, in Portuguese). Banrisul also monitors the risk of deforestation in the beef chain, in a voluntary commitment made as a signatory to Febraban’s self-regulatory system (Febraban Standard SARB 26/2023), which provides for the monitoring of customers operating in the cattle slaughterhouse and meatpacking activities, especially those located in the Legal Amazon region. The Bank now requires these customers to adopt a traceability system for their herds by December 2025 and to demonstrate that they do not purchase cattle associated with illegal deforestation from direct and indirect suppliers.

In other sectors with greater exposure to risk, the Institution identifies the SAC risks inherent in the economic sector of the activity, based on the CNAE code, according to the Green Taxonomy methodology developed by Febraban.

For smaller companies (average monthly revenue of up to R$2 million) and individuals, the analysis is carried out using statistical models. The exception segments for legal entities are identified based on the company’s main CNAE and apply to companies with seasonal activities. In addition to the statistical models used for credit risk assessment, which aim at mitigating the risk of default and supporting the credit granting process, the customer’s exposure is controlled in order to avoid over-indebtedness by determining healthy levels of commitment based on the customer’s risk rating, size and profile.

 2. The scope of disclosure shall include commercial and industrial lending as well as project finance.

The risk analysis for establishing the exposure limit is general in nature, i.e., it addresses the most relevant information and considerations for credit risk without taking account the specific characteristics of the credit lines in question. In this context, additional information and analyses can be required during the credit analysis and approval process, with special attention to ESG aspects, especially credit lines for investment, agribusiness and real estate projects.

Given the relevance of credit exposures, all operations above R$10 million in which the use of funds or directed credits is known must fill out standardized questionnaires. The questionnaire may also be applied to other operations or amounts lower than this threshold.

The proposals for targeted credit transactions (budget funds earmarked for production and medium- and long-term investment in the real estate, rural and infrastructure sectors) above R$10 million, in which the use of funds can be known, are subjected to social, environmental and climate risk assessment by filling out a specific questionnaire. Other transactions or proposals of a lower amount than the cut-off, or from other lines of credit, are subjected to assessment upon request of the Credit Committees. The information collected makes up the basis of a risk opinion, which is made available to the Credit Committee as an additional input for decision-making, showing Banrisul’s exposure to these risks. To prepare the opinion, public social and environmental compliance lists are consulted and information is sought from freely accessible media. The company’s size is taken into account, as well as practices adopted by its peers, considering: the counterparty’s sector of activity, the location where the credit will be used, specific applicable legislation and the counterparty’s level of management of social, environmental and climate aspects.

3. The entity shall describe policies that determine its approach to the incorporation of ESG factors in credit analysis.

ESG aspects are analyzed qualitatively by credit risk analysts in line with Banrisul’s Institutional Manual/Social and Environmental Responsibility Policy. At Banrisul, credit risk analysis is based on statistical models for individuals and for corporate customers in the retail segment. The exception segment includes those of low commercial interest, including those of high environmental and social risk.

In the BLT system, there are internal and external incidents received from credit bureaus and other official agencies, in which management and restrictive incidents that may indicate a worsening of ESG-related risk are recorded . As for individual analyses, in addition to these same controls, data extracted from the financial statements and notes thereto, as well as other information made available by customers are used. They must also fill out a specific checklist, which helps analysts to gather qualitative information that will be used in their opinion, risk analysis and exposure limits.

Legal entities that are not subject to the retail analysis are also analyzed, on an individual basis, in which quantitative and qualitative aspects are observed. In the qualitative analysis, besides the governance and management aspects, which are essential for credit risk analysis, environmental and social matters related to the company and its production chain are evaluated. Analyses are performed by risk analysts who are sorted in specialized groups per industry in which the companies operate, interacting with the other analysts and who have detailed knowledge of the companies, their role and impact on the local economy. In order to include a qualitative aspect in credit analysis, Banrisul incorporated an ESG assessment tool into the process. The tool uses a questionnaire completed by companies/economic groups with exposure or proposed risk limit higher than R$5 million to generate a score that is incorporated into the customer’s internal risk rating. The tool is currently being used to assess the risk limit of sectors considered to be more sensitive to ESG aspects.

Following the credit risk analysis, considering potential impacts of investment transactions (project finance), all transactions above R$10 million are subjected to the completion of special questionnaires to better measure social, environmental and climate risk (this questionnaire may also be used in other transactions or in transactions involving a lower amount)

Moreover, in specialized lines, environmental licensing and compliance with labor/tax certificates, etc. are required. The guidelines related to the products, which complement the Institution’s credit policy, are set out in the specific regulations for Agribusiness (N7), Development (N33) and Real Estate (N30).

The Institutional Policy on Social, Environmental and Climate Risk Management is targeted at outlining the management processes, seeking to mitigate these risks and, consequently, safeguard the assets and interests of its customers, shareholders, employees and other stakeholders.

The Social, Environmental and Climate Risk Responsibility Policy (PRASC in Portuguese) sets out the guidelines for social, environmental and climate responsibility activities of the Bank and companies in the prudential conglomerate, aligned to the nature of each company’s activities and the complexity of their products and services, complying with the principles of relevance, proportionality and efficiency.

4. The entity shall discuss how it incorporates ESG factors when estimating credit losses over the contractual term of the entity’s financial assets.

The monthly calculation of the provision for loan losses (PCLD, in Portuguese) also takes into account ESG factors for all active contracts based on the rating calculation – one of the factors that can worsen this rating is the customer not having an approved credit exposure limit. This individual analysis is not allowed for some business sectors/CNAE codes (CNAE stands for national classification of economic activity in Portuguese), including gambling and betting and various agricultural crops (tobacco and sugarcane, for example), as well as companies included in the list of Slave Labor and Judicial Restrictions, among others. In the analysis process, exposure limits may be denied on the basis of insufficient environmental licenses or debts to the federal government, among other factors.

Moreover, during the analysis process, exposure limits may be denied due to the lack of environmental licenses, debts with the federal government, and one of the consequences is the possibility of worsening the customer’s credit score, especially for those who already have exposure with the Bank.

Furthermore, regardless of the exposure limit in force and the size of the company or individual customer, in the monthly calculation of the Provision for Loan Losses, incidents are verified that may worsen the customer’s risk in a timely manner, such as inclusion on the list  of Employers that use Forced/Compulsory Labor, court restrictions, internal audit notes for fraud, fraud with the BACEN and irregularities with the CVM.

5. The entity shall describe its approach to implementation of the aspects of the entity’s ESG incorporation practices.

ESG aspects are analyzed qualitatively by credit risk analysts and is in line with the Institutional Manual/Socia and Environmental Responsibility Policy. Banrisul has currently incorporated an ESG assessment tool into the analysis process. The tool uses a questionnaire completed by companies/economic groups with exposure or a proposed risk limit higher than R$5 million to generate a score that is incorporated into internal the customer’s risk rating. The tool is currently being used to assess the risk limit of sectors considered to be more sensitive to ESG aspects.

In order to prepare an opinion on social, environmental and climate risks in relevant operations (targeted credit above R$10 million), public social and environmental compliance lists are consulted and information is sought from open-access media. The size of the company is taken into account, as well as the practices adopted by peers:

• Industry: risk classification according to the National Registry of Economic Activities (CNAE, in Portuguese), based on Febraban’s Green Taxonomy methodology, which considers gas emission standards, consumption of environmental resources and impact on society.
• Location: when available, the geographical location of the enterprise is checked, in order to assess the regional characteristics that imply a risk to the activity and/or guarantee (e.g., protected area; flood level; risk of erosion).
• Applicable legislation: check whether the economic activity (CNAE) requires a specific standard/certification (e.g., genetically modified organisms must present a Biosafety Quality Certificate; rural properties must be registered with the Rural Environmental Registry).
• Management: check the counterparty’s level of management of social, environmental and climate aspects (e.g., sustainability report, professional dedicated to the topic).

7. The entity shall discuss whether it conducts scenario analysis and/or modeling in which the risk profile of future ESG trends is calculated at the portfolio level of commercial and industrial credit exposure.

The sensitivity stress test for environmental and climate risk consists of increasing the provision by reducing the value of the guarantees given on customer transactions classified as high climate and/or environmental exposure. In the scenario analysis, there is the ad hoc scenario, with a downgrade in the risk levels of all transactions listed as high exposure, leading to an increase in the provision. These processes are evaluated periodically, reviewed by the internal and external audits and monitored by the Control and Compliance area in operational risk analysis cycles.  

8. The entity shall discuss ESG trends that it views as broadly applicable in terms of their impact on sectors and industries, as well as the trends it views as sector- or industry-specific.

Whereas the individualized analyses make use of, but are not limited to, relevant information from the ESG Agenda, the knowledge acquired during these analyses, combined with the constant monitoring of trends, are currently used to identify process improvement opportunities.

When monitoring the credit portfolio, we aim to look at credit allocation according to the sector, as well as the largest individual and economic group exposures. These views are shared with various Banrisul units and the Credit Strategy and intelligence Unit, contributing to timely initiatives that may lead to adjustments in the automated exposure limits – an action carried out with greater recurrence during the pandemic, in individual analysis of the exposure limits (LR), in adjustments to the parameters of Provision for Loan Losses calculation or in the worsening of the company’s risk rating – via individual analysis (monitoring) due to a material fact.

In the geographic context, the statistical models used in credit assignment have a variable that signals the main regions of the State where the information is gathered by the Regional Superintendence (Sureg) of the customer relationship branch, which, together with the CNAE (corporate customers) or CBO (individuals) information, add to and complement this sector and geographic evaluation.

9. The entity shall describe significant concentrations of credit exposure to ESG factors, including, but not limited to, carbon-related assets, water-stressed regions, and cybersecurity risks.

Banrisul adopts Febraban’s Green Taxonomy to analyze the risk exposure profile, based on three dimensions: Contribution to the Green Economy, Exposure to Climate Change and Exposure to Environmental Risk.

The activities listed in Resolution 237/97of the National Environmental Council (CONAMA, in Portuguese), which requires environmental licensing for sectors with higher potential impact, were considered in the classification of the Exposure to Environmental Risk. In December 2023, 38.56% of the corporate credit portfolio had high exposure to environmental risk.

The classification related to Exposure to Climate Change was prepared based on the activities defined by the Task Force on Climate-related Financial Disclosures (TCFD) as having the highest probability of being affected by transition and physical risks, considering three factors: greenhouse gas (GHG) emissions, energy use and water consumption. These sectors were classified as high exposure, and the activities related to or financially exposed to this sector were classified as moderate exposure. In December 2023, 42.67% of the corporate credit portfolio had significant exposure to climate risk.

10. The entity shall describe how ESG factors are incorporated in the assessment of and influence the entity’s perspectives.

In addition to the statistical models used for credit risk assessment, which aim at mitigating the risk of default and supporting the credit assignment process, the customer’s exposure is controlled in order to avoid over-indebtedness, which, based on the customer’s risk rating, size and profile, seeks to outline healthy levels of commitment, such as:

For individuals: overall limits (OG) are defined to determine the customer’s monthly income commitment level;

For corporate customers in the retail segment, there are the short-term monthly commitment (C), the credit limit (LC), and the product limits (LP – 6 – grouping of products according to homogeneous characteristics), assessing the customer’s total exposure, including in the National Financial System;

For legal entities that have individual analysis: risk limit (LR) is divided between operations with personal guarantees and those with real guarantees.

Also, statistical models are used for individual customers to classify the customer’s levels of vulnerability. Vulnerability is assessed in order to mitigate the risks related to the customer’s understanding (or lack thereof) regarding products and services, as well as the risk of over-indebtedness. In order to qualify the service to customers with higher risk arising from their vulnerabilities, credit operations of customers classified at a high level of vulnerability are analyzed exclusively by a higher committee.

As regards customers who are circumstantially in financial vulnerability, the Bank has specific conditions and lines of credit to adjust their financial flows, aiming to preserve both the Bank’s – of receiving the credits granted –, and the customer’s interest – to reorganize their flows and adjust their responsibilities to the Bank.

In addition to these customer-focused aspects, the business areas make available products focused on sustainability. There is also a specific policy that establishes criteria for the acceptance of guarantees which are aligned with the best market practices.

11. The entity may disclose additional quantitative measures related to its approach to the incorporation of ESG factors in credit analysis.

Proposals for targeted credit operations above R$10 million, in which the use of funds can be known, are subject to social, environmental and climate risk assessment, by filling out a specific questionnaire to verify sector, regional, legal and managerial characteristics. Throughout 2023, 38 (thirty-eight transactions underwent this process.

201-1 b) Where significant, report EVG&D separately at country, regional, or market levels, and the criteria used for defining significance.

Banrisul’s operations are focused on Brazil’s Southern region.

203-1 a) Extent of development of significant infrastructure investments and services supported.

Banrisul is committed to investing in culture, education, sports and technological innovation in order to promote social and economic development in small towns and large cities in Rio Grande do Sul. In this sense, through sponsorships and donations, it supports cultural, educational and sports projects, in addition to hundreds of fairs, shows, and exhibits on family farming, agriculture, livestock, industry, regional tourism, food  and technology, among others.

203-1 b) Current or expected impacts on communities and local economies, including positive and negative impacts where relevant.

The projects are evaluated considering their relationship with the various social, cultural and economic aspects of the communities and regions, understanding their potential, interests and needs in order to promote integration and sustainable regional development.

203-1 c) Whether these investments and services are commercial, in-kind, or pro bono engagements.

In-kind.

408-1 a) Operations and suppliers considered to have significant risk for incidents of:

408-1 a) i) child labor;

408-1 a) ii) young workers exposed to hazardous work.

408-1 b) Operations and suppliers considered to have significant risk for incidents of child labor either in terms of:

408-1 b) i) type of operation (such as manufacturing plant) and supplier;

408-1 b) ii) countries or geographic areas with operations and suppliers considered at risk.

No potential risks for incidents of child labor were identified in the Institution’s operations.

Suppliers, especially those with contracts involving the outsourcing of labor, are submitted to thorough checks for compliance with labor and social security obligations, through monitoring of certificates of good standing, among other actions.

408-1 c) Measures taken by the organization in the reporting period intended to contribute to the effective abolition of child labor.

The Bank thoroughly monitors contracts with suppliers and outsourced service providers, especially with regard to compliance with labor and social security legislation.

Regarding customers, Banrisul conducts checks to make sure they have all applicable certificates and licenses, in addition to their potential history of non-compliance.

409-1 a) Operations and suppliers considered to have significant risk for incidents of forced or compulsory labor either in terms of:

409-1 a) i) type of operation (such as manufacturing plant) and supplier;

409-1 a) ii) countries or geographic areas with operations and suppliers considered at risk.

No potential risks for incidents of forced labor were identified in the Institution’s operations.

Suppliers, especially those with contracts involving the outsourcing of labor, are submitted to thorough checks for compliance with labor and social security obligations, through monitoring of certificates of good standing, among other actions.

409-1 b) Measures taken by the organization in the reporting period intended to contribute to the elimination of all forms of forced or compulsory labor.

Especially for contracts involving the outsourcing of labor, they are submitted to thorough checks for supplier compliance with labor and social security obligations, through monitoring of certificates of good standing, among other actions.

As regards customers, the Bank checks the list of employers who use compulsory labor published by the Ministry of Labor and Employment.

413-1 a) Percentage of operations with implemented local community engagement, impact assessments, and/or development programs, including the use of:

413-1 a) i) social impact assessments, including gender impact assessments, based on participatory processes;

Banrisul has an ongoing Sponsorship Program designed to support projects in the areas of culture, sports, social responsibility, education and technological innovation with a focus on serving the interests and meeting the needs of the target audience. Projects sponsored and supported by Banrisul seek to expand access to personal training and to cultural activities and equipment that promote, in addition to knowledge and experiences for young people and adults, the generation of employment and income for communities. Some of these investments enable technical improvements in cultural and sports venues, the implementation of projects for the conservation of tangible and intangible cultural heritage and access to innovation and technological training, encouraging young people and children to participate in sports and cultural activities and to generate knowledge and income, expanding opportunities and contributing to the promotion of citizenship, human development and respect for equality.                            

413-1 a) ii) environmental impact assessments and ongoing monitoring;

Through its sponsorships, the Bank supports third-party projects. There is no effective monitoring of their environmental impact, and the proponents are responsible for adapting to best practices in this field. However, criteria/features such as sustainability, social responsibility and citizenship, democratization, among others, are essential in the analysis of projects supported by Banrisul, and proposals which, for example, damage the environment or mistreat animals are considered inappropriate.

413-1 a) iii) public disclosure of results of environmental and social impact assessments;

413-1 a) iv) local community development programs based on local communities’ needs;

413-1 a) v) stakeholder engagement plans based on stakeholder mapping;

413-1 a) vi) broad based local community consultation committees and processes that include vulnerable groups;

413-1 a) vii) c works councils, occupational health and safety committees and other worker representation bodies to deal with impacts;

413-1 a) viii) formal local community grievance processes.

Not applicable. Banrisul’s sponsorships support third-party projects and, even though the Bank is not in a position to effectively monitor direct environmental impacts, possible environmental risks are assessed from the analysis of proposals to the finalization of projects, and proponents must comply with sustainability principles laid out in the call for proposals. By supporting these projects, the Bank is integrated into the communities, seeking to help transform and improve the quality of life part of the local population. In return, the brand is associated with the various projects supported, expanding the audience reached and the possibilities for relationships with new and traditional customers.

2-21 a) Report the ratio of the annual total compensation for the organization’s highest-paid individual to the median.

The ratio of the annual total compensation of the organization’s highest paid individual and the average annual total compensation of all other employees (excluding the highest paid) was 10%.

2-21 b) Report the ratio of the percentage increase in annual total compensation for the organization’s highest-paid individual to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual).

The median remuneration of employees, excluding the highest paid, fell from 2022 to 2023, due to the dismissal of 506 employees through the Voluntary Severance Program, so it was not possible to calculate the proportion of the percentage increase requested in item b.

2-21 c) Report contextual information necessary to understand the data and how the data has been compiled.

The Chief Executive Officer was not included in this calculation, since there was a change to the Board of Executive Officers. The reference was the Deputy Chief Executive Officer, who is not an employee of the Bank. Total compensation included salaries, bonuses, job commission, full-time dedication bonus and length of service bonus, overtime, singing bonus, relocation bonus, executive officer bonus, retirement bonus and incentivized retirement plan.

2-11 a) Report whether the chair of the highest governance body is also a senior executive in the organization.

The chair of the Board of Directors is not in Banrisul’s CEO.

2-11 b) If the chair is also a senior executive, explain their function within the organization’s management, the reasons for this arrangement, and how conflicts of interest are prevented and mitigated.

The chair of the Board of Directors is not in Banrisul’s CEO.

2-17 a) Report measures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development.

Every year, Management takes specific courses on topics such as corporate and financial market laws, data disclosure, internal controls, the code of ethics, the Anti-Corruption Law and other subjects related to Banrisul’s activities. In 2023, sustainability and ESG guidelines were included in the lectures, as requested by Management.

2-16 a) Describe whether and how critical concerns are communicated to the highest governance body.

At its ordinary or extraordinary meetings, the Board of Directors receives and resolves on the concerns reported by the Executive Board and the Statutory Audit, Eligibility and Remuneration, Risk and Social, Environmental and Climate Responsibility Committees. In addition to these, the crucial concerns received through the Whistleblowing Channel are communicated to the Board of Directors by means of reports which must contain, at the very least, the number and nature of the communications received, the areas responsible for dealing with the situation, the average time for treatment and the measures adopted by the Institution. If it is proven that employees engaged in wrongdoing, the complaints are brought to the attention of the Ethics Committee.

2-16 b) Report the total number and the nature of critical concerns that were communicated to the highest governance body during the reporting period.

The number and nature of critical concerns are deemed confidential by Banrisul.

2-15 a) Describe the processes for the highest governance body to ensure that conflicts of interest are prevented and mitigated.

Banrisul recognizes and manages conflicts of interest in all activities, including in relation to the Board of Directors, in accordance with the applicable legal rules, including Article 156 of Brazilian Corporate Law and Article 25 of the Bylaws.

In addition to the legal regulations, it has a Code of Ethics and Conduct and a Conflict of Interest Booklet for all those involved in the Banrisul Group, both of which are widely disseminated.  

When it comes to credit transactions, compliance also includes the Related-Party Transaction Policy, which defines the conditions for these and other transactions to be carried out.

2-15 b) Report whether conflicts of interest are disclosed to stakeholders, including, at a minimum, conflicts of interest relating to:

2-15 b) i) cross-board membership;

The participation of management members in other positions in Banrisul Group companies is reported in item 7.6 of the 2023 Reference Form.

2-15 b) ii) cross-shareholding with suppliers and other stakeholders;

There are no shareholdings of suppliers or other stakeholders not listed in the 2023 Financial Statements, page 38.

2-15 b) iii) existence of controlling shareholders;

The only controlling shareholder is the State of Rio Grande do Sul.

2-15 b) iv) related parties, their relationships, transactions, and outstanding balances.

We refer to Note 29 to the 2023 Financial Statements. Note 29 – transactions with related parties:

(a) Transactions with related parties are disclosed in compliance with Technical Pronouncement CPC 05(R1) and CMN Resolution 4,818/20.Account balances relating to transactions between consolidated companies are eliminated in the consolidated financial statements and also take into account the absence of risk. With regard to transactions carried out with the State Government and entities fully or jointly controlled by it, we have opted for the partial exemption granted by CMN Resolution 4,818/20. In this case, only the most significant transactions are disclosed. We carry out banking transactions with related parties, including checking account deposits (non-interest-bearing), interest-bearing deposits, open market funding, loans and service contracts. These transactions are carried out at the usual average market amounts, terms and rates in force on the respective dates, on an arm’s length basis.

2-13 a) Describe how the highest governance body delegates responsibility for managing the organization’s impacts on the economy, environment, and people, including:

2-13 a) i) whether it has appointed any senior executives with responsibility for the management of impacts;

The Board of Directors is responsible for steering the Bank’s business, guidelines and institutional goals. It is advised by the Audit, Risk, Eligibility and Compensation, and Social, Environmental and Climate Responsibility Committees, all of which operate on a permanent basis.

The Corporate Risk Executive Superintendent reports to the Chief Risk Officer (CRO) on the Institution’s risk management. The executive is responsible for the Corporate Risk Unit and for coordinating capital management and credit, market, IRRBB, liquidity, operational, social, environmental and climate risks, covering all the institutions in the Prudential Conglomerate. It also considers the possible impacts of risks associated with other companies controlled by Conglomerate companies and other significant risks identified.

In 2023, the Risk Office incorporated sustainability into the Social, Environmental and Climate Risk Department, with the intention of reinforcing the importance of sustainability and promoting integrated action on related risks and opportunities. Thus, the management of the Social, Environmental and Climate Responsibility Policy is aligned with the risk guidelines, integrating processes and directing the focus of its risk and responsibility initiatives.

2-13 a) ii) whether it has delegated responsibility for the management of impacts to other employees.

The corporate risk executive superintendent reports to the Chief Risk Office (CRO) on the Institution’s risk management.

2-13 b) Describe the process and frequency for senior executives or other employees to report back to the highest governance body on the management of the organization’s impacts on the economy, environment, and people.

The Institution has developed a series of indicators and flags to monitor its risk appetite, which are periodically monitored and reported to Senior Management by means of reports and a dashboard. The risk matrix is updated dynamically, with attention to the risks with the greatest exposure. Processes are monitored according to the frequency and impact of their respective risks. The Risk Appetite Statement (RAS), documented for Banrisul’s Prudential Conglomerate, is reviewed annually with the support of the Risk Committee, the Board of Executive Officers and the Chief Risk Officer (CRO).

1. The entity shall describe the processes and policies that are set forth within its whistleblower program, including, but not limited to, internal compliance programs, whistleblower hotline details (e.g., if it is managed by an independent third-party), reference to and publication of the hotline number (e.g., within corporate compliance manuals or code of ethics), whistleblower incentives for reporting violations, and methods for submitting tips.

The Bank has a Whistleblowing Channel, available on the Corporate Intranet and on Banrisul’s website, under the Customer Service option. Aimed at employees, customers, users, partners or suppliers, the Channel receives complaints and communications about situations of alleged wrongdoing, of any nature, related to the Bank’s activities, which affect the Institution’s image and do not comply with internal controls and the Compliance Program. A registration form is available within the Whistleblowing Channel, which can be filled in completely anonymously.

2. Disclosure shall include the entity’s compliance with applicable whistleblower regulations.

The internal and external channels for submitting complaints and queries covered by the Policy are disclosed, respectively, on the Corporate Intranet and on Banrisul’s website – www.banrisul.com.br, in the section Whistleblowing Channel.

3. Disclosure shall include a discussion of any violations of whistleblower regulations and any corrective actions the entity has implemented as a result of violations.

In the event of non-compliance with this Policy and related regulations, actions will be taken according to the level of the offender’s relationship with the Bank: – if an employee, sanctions provided for in item Sanctions of the Personnel Regulations will be adopted, appropriate to address the non-compliance; – if an Officer or Board/Committee Member, the non-compliance will be reported by the Internal Audit to the Board of Directors, complying, when applicable, to Banrisul’s Whistleblowing Policy; – if an Intern or Outsourced Employee, sanctions provided for in the agreement will be adopted. If managers, other employees and/or other related parties become aware of misconducts and do not report them to the Personnel Department or the Whistleblowing Channel, they will , also be held accountable. Regardless of the degree of relationship with Banrisul and the penalty adopted, anyone who fails to comply with the organizational policies may be held civilly or criminally liable for proven misconduct.

2-18 a) Describe the processes for evaluating the performance of the highest governance body in overseeing the management of the organization’s impacts on the economy, environment, and people.

The Board of Directors is subject to a formal performance evaluation with the aim of gauging effectiveness and improving Banrisul’s governance — an evaluation similar to the one applied annually to the Board of Executive Officers and the Chief Executive Officer. The evaluation process complies with Law 13,303/16 and State Decree 54,110/18, covering self-evaluation and comparison of the results obtained with the targets set, among others.

2-18 b) Report whether the evaluations are independent or not, and the frequency of the evaluations.

Performance appraisals are carried out annually, anonymously, individually and non-independently.

2-18 c) Describe actions taken in response to the evaluations, including changes to the composition of the highest governance body and organizational practices.

All answers to the evaluation questionnaires are compiled into a report, which is sent to the Eligibility and Compensation Committee for prior analysis and then presented to the Board of Directors for consideration. The body suggests improvements in carrying out their duties.

2-9 a) Describe its governance structure, including committees of the highest governance body.

¹The members have no other duties or commitments to report.

¹The members have no other duties or commitments to report.

¹The members have no other duties or commitments to report.

¹The members have no other duties or commitments to report.

2-9 b) List the committees of the highest governance body that are responsible for decision-making on and overseeing the management of the organization’s impacts on the economy, environment, and people.

The Board of Directors is responsible for steering the Bank’s business, guidelines and institutional goals. It is advised by the Audit, Risk, Eligibility and Compensation, and Social, Environmental and Climate Responsibility Committees, all of which operate on a permanent basis.

2-9 c) Describe the composition of the highest governance body and its committees by:

2-9 c) i) executive and non-executive members;

2-9 c) ii) independence;

2-9 c) iii) tenure of members on the governance body;

2-9 c) iv) number of other significant positions and commitments held by each member, and the nature of the commitments;

Answered in item a.

2-9 c) v) gender;

2-9 c) vi) under-represented social groups;

2-9 c) vii) competencies relevant to the impacts of the organization;
The competencies of members of management are assessed during the eligibility process, according to the information presented in their CVs, in compliance with the Institution’s Nomination and Succession Policy.  In addition, training on Law 13,303 is offered every year to address relevant topics, enabling a diversity of thought and more informed decision-making.

2-9 c) viii) stakeholder representation.
Of the 11 seats available on the Board of Directors, one (1) is reserved for minority common shareholders, one (1) is reserved for minority preferred shareholders, and one (1) is reserved for an employee representative.

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

The Integrity Program includes the Anti-Corruption Policy, the Code of Ethics and Conduct, the Whistleblowing Channel Policy, and the Internal Control and Compliance Report.

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

These actions are managed by the Control, Compliance and Inspection Unit, together with other departments of the Bank. Policies, training and a whistleblowing channel are in place to prevent acts of corruption and mitigate integrity risks.

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

The Bank has a Whistleblowing Channel, available on the Corporate Intranet and on Banrisul’s website, under the Customer Service option. Aimed at employees, customers, users, partners or suppliers, the Channel receives complaints and communications about situations of alleged wrongdoing, of any nature, related to the Bank’s activities, which affect the Institution’s image and do not comply with internal controls and the compliance program.

3-3 d) iii) actions to manage actual and potential positive impacts.

Constant maintenance and improvement of good practices related to the prevention of illegal acts, as well as continuous training for those interested.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

The channel is managed by an independent area, the Control and Compliance Unit, which sends a report every six months on the complaints received during the period to the Board of Directors, describing the number and nature of the communications received, the areas responsible for dealing with the situation, the average processing time and the measures adopted. Every year, the Internal Controls and Compliance Report is submitted to the Senior Management.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

1. Joint development of a strategic sustainability agenda for 2023, with the direct involvement of all Executive Officers and approval by all bodies. The main guideline is the Bank’s strategic planning, established by the ESG pillar.
2. Constant improvement of procedures related to the Integrity Program, such as training and preparation of reports.
3. Policy indicator: the Policy provides for annual updates.
4. Whistleblowing Channel: the indicator states that complaints must be responded to within 45 days and a report must be submitted to senior management every six months.
5. Training: the indicator states that training on integrity is mandatory for all the Bank’s employees.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

The effectiveness of the actions are not yet known, as Banrisul will only have the results once the 2030 Agenda has been effectively implemented.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

The joint development of commitments, indicators, and targets proposed by the Bank’s departments has been showing the topic’s greater maturity within the institution and the leadership’s stance, and the Institution aims to constantly update the policies based on current regulations.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

The methodology used to create the agenda enabled a greater engagement of the units and executive offices, which had to work together and expand their knowledge. This is an ongoing process, but it is already possible to see advancements in the governance front.

Each time regulations are updated, the information is disseminated through administrative instructions, which are available to all employees.

The Bank has a Whistleblowing Channel, available on the Corporate Intranet and on Banrisul’s website, under the Customer Service option. It is aimed at employees, customers, users, partners or suppliers and, if it is proven that employees engaged in wrongdoing, the complaints are brought to the attention of the Ethics Committee.

2-10 a) Describe the nomination and selection processes for the highest governance body and its committees.

The Board of Directors currently has 11 members, of whom (i) eight are appointed by the controlling shareholder, in accordance with the current legislation (Federal Law 13,303/16; Federal Law 6,404/46 and Rio Grande do Sul State Decree 54,110/18); ii) one is appointed by the common minority shareholders, (iii) one is appointed by the preferred minority shareholders and (iv) one is a representative of employees, elected internally in accordance with regulations.

The Eligibility and Compensation Committee analyzes the nominees, checking the eligibility requirements in the Nomination and Succession Policy, which include skills, experience, availability, diversity, knowledge, behavior, culture, age and gender. The Committee reports to the State Attorney General’s Office, which decides whether the requirements have been met and whether there are no impediments. If the nomination is approved, the election process is carried out by the competent body.

2-10 b) Describe the criteria used for nominating and selecting highest governance body members, including whether and how the following are taken into consideration:

2-10 b) i) views of stakeholders (including shareholders);

The Board of Directors has 11 seats, of which one (1) is reserved for minority common shareholders, one (1) is reserved for minority preferred shareholders, and one (1) is reserved for an employee representative.

2-10 b) ii) diversity;

To reinforce its public commitment to diversity, the Organization is responsible for ensuring that, by 2030, at least 30% of the seats in Senior Management, the Fiscal Council and the Statutory Committees are allocated to diversity, a commitment that extends to the Group’s Subsidiaries, as stipulated in article 111 of the Bylaws.

2-10 b) iii) independency;

The Board of Directors currently has 11 members, of whom (i) eight are appointed by the controlling shareholder, in accordance with the current legislation (Federal Law 13,303/16; Federal Law 6,404/46 and Rio Grande do Sul State Decree 54,110/18); ii) one is appointed by the common minority shareholders, (iii) one is appointed by the preferred minority shareholders and (iv) one is a representative of employees, elected internally in accordance with regulations.Through this composition, the Board is in compliance with article 22 of the Bylaws, which determines, among other things, that 30% of the appointed members are independent, a criterion considered by Banrisul when selecting the members of the highest governance body

2-10 b) iv) competencies relevant to the impacts of the organization.

The competencies of members of management are assessed during the eligibility process, according to the information presented in their CVs, in compliance with the Institution’s Nomination and Succession Policy. In addition, training on Law 13,303 is offered every year to address relevant topics, enabling a diversity of thought and more informed decision-making. The current eligibility process carried out by Banrisul involves various spheres (the Finance Department, the Civil House, the State Attorney General’s Office, among others), providing security and reliability for all stakeholders.

205-1 a) Total number and percentage of operations assessed for risks related to corruption.

 Overall, Banrisul had five operations assessed by the Corporate Risks Unit in 2023. This figure was not measured as a percentage of total operations. 

205-1 b) Significant risks related to corruption identified through the risk assessment.

Operational risk management includes identifying and assessing external fraud events, the possibility of employee misconduct that offers or results in undue advantage and operational flaws in developing processes to assess or identify suspicious operations.These actions are managed by the Control, Compliance and Inspection Unit, together with other departments of the Bank. Policies, training and a whistleblowing channel are in place to prevent acts of corruption and mitigate integrity risks. The policies are reviewed annually reflecting updates to regulations and administrative instructions.

2-20 a) Describe the process for designing its remuneration policies and for determining remuneration, including:

2-20 a) i) whether independent highest governance body members or an independent remuneration committee oversees the process for determining remuneration;

The Committee is responsible for assisting the Board of Directors in determining compensation by analyzing future internal and external scenarios and their possible impacts on the compensation policy for the Bank’s Management and the Group’s Subsidiaries. To prepare the Compensation Proposal, this committee analyzes the institution’s figures vis-à-vis market practices in order to identify significant discrepancies in relation to similar organizations and propose the necessary adjustments.

2-20 a) ii) how the views of stakeholders (including shareholders) regarding remuneration are sought and taken into consideration;

The following take part in defining remuneration policies: independent members (Eligibility and Remuneration Committee), the Board of Directors, the Government of the State of Rio Grande do Sul (controlling shareholder) and other shareholders. Board members and shareholders have their opinions recorded in the minutes of ordinary and extraordinary meetings and assemblies. The definition of employee remuneration includes the participation of representative bodies, through collective bargaining agreements.

2-20 a) iii) whether remuneration consultants are involved in determining remuneration and, if so, whether they are independent of the organization, its highest governance body and senior executives.

As per CMN Resolution 3,921/10, the Eligibility and Compensation Committee is responsible for assisting in the process of determining compensation and is composed of three independent members.

2-20 b) Report the results of votes of stakeholders (including shareholders) on remuneration policies and proposals, if applicable.

The individual voting results of members of the board of directors or committee members are not available for confidentiality reasons.

2-19 a) Describe the remuneration policies for members of the highest governance body and senior executives, including:

2-19 a) i) fixed pay and variable pay;

The overall compensation of Senior Management and the Statutory Committees is set annually by the Shareholders’ Meeting, and the Board of Directors is responsible for defining the individual compensation of each Body.

The members of the Board of Directors receive a fixed monthly fee, with no variable compensation or benefits.  

The members of the Board of Executive Officers receive fixed monthly compensation and representation fees and are entitled to Profit Sharing (PLR, in Portuguese) and benefits such as paid time off, meal allowance, food basket allowance and health insurance, as well as variable compensation, provided that it is included in the overall compensation mentioned above, subject to the limits set by current legislation and based on criteria defined by the Board of Directors.

2-19 a) ii) sign-on bonuses or recruitment incentive payments;

Not applicable – the policy does not provide for this type of bonus.  

2-19 a) iii) termination payments;

Not applicable – the policy does not provide for this type of payment.

2-19 a) iv) clawbacks;

Not applicable – the policy does not provide for clawbacks.

2-19 a) v) retirement benefits.

Officers can also join private pension and insurance plans. These benefits may vary according to the specific profile of each professional. Officers who were Banrisul employees before taking office will be covered by the benefit plans they had when they were employees.

2-19 b) Describe how the remuneration policies for members of the highest governance body and senior executives relate to their objectives and performance in relation to the management of the organization’s impacts on the economy, environment, and people.

In addition to the Profit Sharing – PLR, in Portuguese ,(as per collective bargaining agreement), the Banrisul Conglomerate may pay variable compensation to its executive officers, provided it is included in the overall compensation approved by the Shareholders’ Meeting, observing the limits established by the legislation in force and based on criteria that may be defined by the Board of Directors.

2-12 a) Describe the role of the highest governance body and of senior executives in developing, approving, and updating the organization’s purpose, value or mission statements, strategies, policies, and goals related to sustainable development.

In line with its responsibility for steering the Bank’s business, guidelines and goals, the Board of Directors reviews and approves risk management policies, strategies and limits, and sets risk appetite levels in the Risk Appetite Statement (RAS), documented for Banrisul’s Prudential Conglomerate. The Bank also has the Social, Environmental and Climate Responsibility Policy (PRSAC, in Portuguese), which establishes the guidelines for conducting responsibility actions for each area, in a manner compatible with the nature of its activities and the complexity of its products and services, balancing business opportunities, to contribute to the sustainable development of the regions in which Banrisul operates.

Based on CVM Resolution 4945/21, the PRSAC also establishes that governance is effectively delegated to the Board of Directors and an officer responsible for implementing the actions designed to ensure effectiveness. In order to monitor and manage initiatives related to sustainability, the Company relies on a statutory Social, Environmental and Climate Responsibility Committee (CRSAC, in Portuguese), which is responsible for making recommendations to the Board of Directors and assessing the compliance of implemented actions with the Responsibility Policy.

2-12 b) Describe the role of the highest governance body in overseeing the organization’s due diligence and other processes to identify and manage the organization’s impacts on the economy, environment, and people, including:  

2-12 b) i) whether and how the highest governance body engages with stakeholders to support these processes;

As the institution’s highest body as regards the Risk Appetite Statement (RAS), the Board of Directors establishes the risk appetite levels and reviews them annually, supported by the Chief Risk Officer (CRO), the Board of Executive Officers and the Risk Committee.  

2-12 b) ii) how the highest governance body considers the outcomes of these processes.

The Institution has developed a series of indicators and flags to monitor its risk appetite, which are periodically monitored and reported to Senior Management by means of reports and a dashboard.

2-12 c) Describe the role of the highest governance body in reviewing the effectiveness of the organization’s processes as described in 2-12-b, and report the frequency of this review.

The Board of Directors meets monthly to assess the management reports on the main risks to which the institution is exposed. Changes to capital and corporate risk management policies are assessed annually by the body. At Management level, Banrisul relies on the Corporate Risk Committee and the Control and Risk Executive Office and, statutorily, on the Statutory Risk Committee.

2-14 a) Report whether the highest governance body is responsible for reviewing and approving the reported information, including the organization’s material topics, and if so, describe the process for reviewing and approving the information.

The Sustainability Report is submitted for approval to the Board of Directors and the Social, Environmental and Climate Responsibility Committee.

2-14 b) If the highest governance body is not responsible for reviewing and approving the reported information, including the organization’s material topics, explain the reason for this.

Not applicable as the Board of Directors is responsible for approving reported information.

Whether the organization has implemented auditing systems for its environmental and social risk assessment policies.

In its organizational structure, the Bank has an Internal Audit area, which reports directly to the Board of Directors, whose scope considers all the functions of the Bank and the other companies that make up the conglomerate, observing the guidelines of CMN Resolution 4,879/2020.

Both the completed audit and the verification in progress were carried out by the Internal Audit, based on CMN Resolution 4,945, of September 15, 2021, and CMN Resolution 4,557, of February 23, 2017. Most of the comments refer to the effectiveness and implementation of the Social, Environmental and Climate Responsibility Policy.

For the year 2024, the Bank plans to carry out the audit, once again, within the scope of CMN Resolution No. 4,945/2021.

Any exclusions or limitations to the audit coverage of regions or products and services.

There are no exclusions or limitations to audit coverage related to regions or products and services.

Whether the audit(s) was carried out using internal/external auditor(s).

The internal audit department is responsible both for the completed audit and the one in progress.

The names of any standards utilized for the audit.

CMN Resolution 4,945, of September 15, 2021.

CMN Resolution 4,557, of February 23, 2017.

Follow-up actions (if any) to overall findings of the audit(s).

Among the follow-up actions for overall audit findings, there are actions aimed at the effectiveness of Social, Environmental and Climate Responsibility Policy (PRSAC, in Portuguese), the dissemination of complete and up-to-date information and the implementation of the PRSAC.

305-1 a) Gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent.

305-1 c) Biogenic CO2 emissions in metric tons of CO2 equivalent.

305-2 a) Gross location-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

305-3 a) Gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent.

305-3 c) Biogenic CO2 emissions in metric tons of CO2equivalent.

¹Scope 2 emissions recorded a reduction in both 2022 and 2023 due to a decrease in the conversion factor of the National Integrated System (SIN, in Portuguese) used by the GHG methodology to convert MWh consumption into tCO₂.

²Regarding biogenic emissions, the variation arises from improved data collection for commuting emissions and, in 2023, we began considering emissions from employees working remotely, which were previously not measured due to uncertainties about the appropriate methodology.

³As for non-Kyoto emissions (R22), the reduction is due to the ongoing implementation of air conditioning system renewal at Banrisul’s premises, aimed at reducing the average age of equipment and consequently reducing fugitive GHG emissions.

⁴For scope 2, only CO₂ was included in the calculation.

⁵Considering scope 1 and 3 emissions.

⁶The assurance of the inventory for the year 2023 was carried out by Instituto Totum, an independent auditing firm, in accordance with the standards of the Brazilian GHG Protocol Program and the NBR ISO 14064 series.

305-1 b) Gases included in the calculation; whether CO2 , CH4 , N2O, HFCs, PFCs, SF6 , NF3 , or all.

Todos.

305-1 d) Base year for the calculation, if applicable, including:

305-1 d) i) the rationale for choosing it;

In 2021, Banrisul completed its first greenhouse gas inventory, measuring emissions for 2020, based on the GHG methodology. However, the first complete and third-party assured inventory refers to the 2021 fiscal year. For this reason, the reference year used as a measure to monitor emissions over time is 2021.

305-1 d) ii) emissions in the base year;

958.9 tCO₂.

305-1 d) iii) the context for any significant changes in emissions that triggered recalculations of base year emissions.

The base year used for emissions comparison is 2021, as it was the first comprehensive and assured inventory year. In this regard, we restated the information on emission quantity from the previous year (2022), which did not reflect the correct base year emissions (2021).

305-1 e) Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

Emission factors and indices used according to the GHG Protocol calculation tool.

305-1 f) Consolidation approach for emissions; whether equity share, financial control, or operational control.

Operational control.

305-1 g) Standards, methodologies, assumptions, and/or calculation tools used.

The GHG Protocol calculation methodology was used to prepare the inventory, which was assured by an independent audit firm.

305-2 b) If applicable, gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

1,352.402 tCO₂ equivalent, measured considering the year 2023 for all Banrisul companies.

305-2 c) If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

For scope 2, only CO₂.

305-2 d) Base year for the calculation, if applicable, including:

305-2 d) i) the rationale for choosing it;

In 2021, Banrisul completed its first greenhouse gas inventory, measuring emissions for 2020, based on the GHG methodology. However, the first complete and third-party assured inventory refers to the 2021 fiscal year. For this reason, the reference year used as a measure to monitor emissions over time is 2021.

305-2 d) ii) emissions in the base year;

4,642.3 tCO₂ equivalent identified in emissions in 2021, according to the GHG Protocol methodology.

305-2 d) iii) the context for any significant changes in emissions that triggered recalculations of base year emissions.

The base year used for emissions comparison is 2021, as it was the first comprehensive and assured inventory year. In this regard, we restated the information on emission quantity from the previous year (2022), which did not reflect the correct base year emissions (2021).

305-2 e) Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

 Emission factors and indices used according to the GHG Protocol calculation tool.

305-2 f) Consolidation approach for emissions; whether equity share, financial control, or operational control.

 Operational control.

305-2 g) Standards, methodologies, assumptions, and/or calculation tools used.

The GHG Protocol calculation methodology was used to prepare the inventory, which was assured by an independent audit firm.

If available, include the targets for the next cycle.

The Bank is currently migrating its energy consumption to renewable sources. As a result, it has 11,417.989 I-REC certificates, equivalent to 11,417.989 MWh of electricity generated from renewable sources, reducing greenhouse gas emissions by 465,054 tCO₂ equivalent, reinforcing the Company’s commitment to a cleaner and more sustainable energy matrix.

305-3 b) If available, the gases included in the calculation; whether CO₂; CH₄; N₂O; HFCs; PFCs, SF₆; NF₃; or all.

 All, according to the GHG Protocol tool.

305-3 d) Other indirect (Scope 3) GHG emissions categories and activities included in the calculation.

Only the categories set out in the GHG Protocol methodology tool were used.

305-3 e) Base year for the calculation, if applicable, including:

305-3 e) i) the rationale for choosing it;

In 2021, Banrisul completed its first greenhouse gas inventory, measuring emissions for 2020, based on the GHG methodology. However, the first complete and third-party assured inventory refers to the 2021 fiscal year. For this reason, the reference year used as a measure to monitor emissions over time is 2021.

305-3 e) ii) emissions in the base year;

 5,054.4 tCO₂ equivalent in scope 3 in 2021.

305-3 e) iii) the context for any significant changes in emissions that triggered recalculations of base year emissions.

The base year used for emissions comparison is 2021, as it was the first comprehensive and assured inventory year. In this regard, we restated the information on emission quantity from the previous year (2022), which did not reflect the correct base year emissions (2021).

305-3 f) Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

 Emission factors and indices used according to the GHG Protocol calculation tool.

305-3 g) Standards, methodologies, assumptions, and/or calculation tools used.The GHG Protocol calculation methodology was used to prepare the inventory, which was assured by an independent audit firm.

201-2 a) Risks and opportunities posed by climate change that have the potential to generate substantive changes in operations, revenue, or expenditure, including:

201-2 a) i)  a description of the risk or opportunity and its classification as either physical, regulatory, or other;

Short-term physical climate risk: customers’ reduced payment capacity in the event of extreme weather events, such as heavy rains and periods of drought, including risks related to climate vulnerability in agribusiness credit transactions.

Medium-term physical climate risk: concentration of the loan portfolio in economic sectors most likely to suffer impacts related to extreme weather events, with the risk of compromising the Bank’s liquidity and competitiveness.

Climate transition risk: business relationship with sensitive and carbon-intensive industries. In the long term, by maintaining business relationships with these sectors, we can be negatively affected by changes in consumer preferences, as well as by restrictions, limitations and even bans on financed production processes.      

201-2 a) ii) a description of the impact associated with the risk or opportunity;

In the short term, extreme events, such as heavy rainfall and periods of drought, can harm customers’ payment capacity, especially in sectors that are more susceptible to the effects of climate change.

In the medium term, the concentration of the loan portfolio in economic sectors most likely to suffer impacts related to extreme weather events can compromise the Institution’s liquidity and competitiveness.

In the long term, the Institution, by maintaining business relationships with sensitive and carbon-intensive industries, can be negatively affected by changes in consumer preferences, as well as by restrictions, limitations and even bans on financed production processes.        

201-2 a) iii) the financial implications of the risk or opportunity before action is taken;

Customers’ capacity to honor their financial commitments to the Institution can be compromised.            

201-2 a) iv) the methods used to manage the risk or opportunity;

The business strategy aims to minimize the risks to which we are exposed in order to protect the assets and interests of customers, shareholders, employees and other stakeholders. The Risk Appetite Statement (RAS) is the instrument that defines the level of risk that the Institution is willing to accept in order to achieve its goals, regularly monitoring and reporting to higher bodies on the status of the indicators for monitoring social, environmental and climate risks.

Capital management is treated as an ongoing process, compatible with the nature of the operations, the complexity of the products and services offered and the scale of the risk exposure.

For relevant changes or the development of new products and services, a Social, Environmental and Climate Risk (RSAC, in Portuguese) analysis is carried out based on the information provided by the requesting business area. When necessary, recommendations for improvement are made in order to mitigate possible social, environmental and climate risks.

Where applicable, RSAC criteria are analyzed in credit transactions using a specific form, covering the industry, location, legal and management characteristics of the counterpart and the transaction.

Business opportunities are being developed by expanding the supply of sustainable products, such as the Sustainability CDC line, which finances renewable energy projects, electric charging stations, energy efficiency projects and electric scooters, among others.

In credit risk analysis, when applicable, the result of the assessment of social, environmental and climate risks is considered as part of a set of variables that affect the definition of the risk limit for customers.

201-2 a) v) the costs of actions taken to manage the risk or opportunity.

The costs of the measures taken to manage these risks or opportunities linked to climate issues and sustainability amounted to R$ 348.3 thousand in 2023.

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

The organization has a formal risk management policy, described in a document called “Institutional Structures and Policies for Capital Management and Corporate Risks”. It covers capital management and credit, market, IRRBB, liquidity, operational, social, environmental and climate risks.

The Bank operates in line with the regulations issued by the Brazilian Federation of Banks (Febraban, in Portuguese) in the self-regulation system, including standard 14/2014 (Social and Environmental Responsibility Policy and Social and Environmental Risk Management) and standard 26/2023 (management of the risk of illegal deforestation in the beef chain).

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

In the granting of agricultural credit, in 2023, Banrisul began monitoring the areas by remote sensing and hired a specialized company to carry out a social and environmental compliance study of the financed areas, a process that is constantly being improved. Another practical measure has already been put into practice: a half-point reduction in the interest rate on loans to rural producers for areas that have had their Rural Environmental Registry (CAR, in Portuguese) analyzed.         

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

No actual negative impacts have been identified.

3-3 d) iii) actions to manage actual and potential positive impacts.

Throughout 2023, we adopted numerous measures to manage risks or opportunities, such as technical consultancy for the preparation of strategic sustainability management and the greenhouse gas emission reduction and mitigation plan; starting the implementation of the sustainability agenda; participating in the Brazilian GHG Protocol program; joining the CDP; and acquiring carbon credits and renewable energy certificates. The costs of the measures taken to manage these risks or opportunities linked to climate issues and sustainability amounted to R$526,398.7 in 2023. 

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

Processes are evaluated periodically, including assessing the internal and external audits, the Controls and Compliance department’s monitoring, operational risk analysis cycles, among other procedures.

Banrisul is an active member of Committees and Working Groups at the Brazilian Federation of Banks (Febraban, in Portuguese), debating current guidelines relevant to the topic of social, environmental and climate risks and responsibility, as well as participating in public consultations and sharing best practices with other institutions in the financial sector.

Through voluntary reports (such as CDP, GHG, Global Compact and GRI) and compliance reports, we demonstrate the level of compliance with current regulations and adherence to best market practices. The Institution’s processes are also supervised by the Central Bank of Brazil, which issues recommendations and notes when opportunities for improvement and necessary corrections are identified.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

The Bank seeks to continuously improve its social, environmental and climate risk management, reflecting the guidelines of international frameworks and best market practices, as well as the national regulatory framework.

It is worth noting that the Bank monitors the risk of deforestation in the beef chain, a commitment voluntarily made by the Bank as a signatory to Febraban’s self-regulation system. The Bank now requires these customers to adopt a traceability system for their herds by December 2025, which demonstrates that they do not purchase cattle associated with illegal deforestation from direct and indirect suppliers.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

Banrisul’s risk management, especially with regard to social, environmental and climate risks, has been improved to ensure adherence to the standards of the Central Bank of Brazil and the Self-Regulation system of the Brazilian Federation of Banks. Even though the Bank already has robust risk management, there are still opportunities for improvement, especially in defining sensitive sectors and drafting restrictive policies.

The actions undertaken have proven effective, leading to advancements in the risk theme recognized by CDP, where the Bank improved from a C grade in 2022 to an A grade in risk management and a B grade in risk reporting in 2023.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

The efforts to improve risk management demonstrated the need to formalize processes already developed into internal policies, as well as the importance of establishing robust controls and systematizing monitoring.

An important step in advancing risk management is to identify the relevant impacts for the Institution, allowing management to prioritize mitigation and correction actions. To this end, a project is underway in partnership with a technical consulting firm specializing in evaluating the impact of products and services offered to the public.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

Banrisul’s corporate risk department interacts with the other administrative and business departments, providing training and assisting first-line managers in developing tools for proper risk management. Internal and external training is available to ensure the continuing education of risk teams.

In order to capture the perception of the market and the financial system, Banrisul holds meetings with representatives of other institutions and participates in working groups on risk issues. The Ombudsman’s reports are also used as input so we can respond to customer demands.

When Banrisul receives demands from investors regarding these issues, they are handled together with the investor relations department.

302-1 a) Total fuel consumption within the organization from non-renewable sources, in joules ormultiples, and including fuel types used.

302-1 b) Total fuel consumption within the organization from renewable sources, in joules ormultiples, and including fuel types used.

302-1 c) In joules, watt-hours or multiples, the total:

302-1 c) i) electricity consumption

302-1 c) ii) heating consumption

302-1 c) iii) cooling consumption

302-1 c) iv) steam consumption

302-1 d) In joules, watt-hours or multiples, the total:

302-1 d) i) electricity sold

302-1 d) ii) heating sold

302-1 d) iii) cooling sold

302-1 d) iv) steam sold

302-1 e) Total energy consumption within the organization, in joules or multiples.

302-1 f) Standards, methodologies, assumptions, and/or calculation tools used.

302-1 g) Source of the conversion factors used.

¹There was no energy sale.

²In metric tons, standard measurement unit used by the GHG Protocol methodology.

Regarding the “Energy consumption within the Organization” table, three points should be noted:

• In 2023, Both owned and leased vehicles began using ethanol as fuel due to its lower greenhouse gas emissions. resulting in an 18.7% reduction in gasoline consumption.
• Since early 2023, the amount of diesel oil consumed by motor vehicles has been included in the calculation, in addition to that used by generators. Therefore, values for 2021 and 2022 differ from those published in previous years. – Since mid-2023, Banrisul Armazéns Gerais, a company within the Banrisul group, has been generating energy from solar panels at its storage facilities. This energy is consumed by the Company, and the surplus is fed into the utility grid. In 2023, from July to December, a total of 346,170.7 kWh was generated, of which 230,979.0 kWh were fed into the utility grid, and 115,191.7 kWh were used internally.

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

Banrisul has joined the Carbon Disclosure Project (CDP) and started using renewable energy sources, while continuing its participation in the Brazilian GHG Protocol program to enhance the technical and institutional capacity of its professionals in managing greenhouse gas emissions for calculation and reporting purposes. 

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

Energy efficiency and ESG factors are also considered within the supplier chain. For the development and execution of engineering projects and services, air quality analyses are required, including the implementation of a semi-annual procedure for air sampling and analysis in Banrisul’s environments with and without public access, and reviewing the reports issued by laboratories.

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

 No actual impacts requiring remediation actions were identified.

3-3 d) iii) actions to manage actual and potential positive impacts.

 No measures have been identified to manage actual or potential positive impacts.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

Use of renewable energy: monitored through regular reports presented to the Administrative Officer.

Energy efficiency: monitoring energy consumption at Banrisul’s premises.

Air quality analysis: through analysis of reports issued by the laboratories.

ESG in the supplier chain: through the inspection of the works and services with the issuance of a technical monitoring report.

Banrisul has internal controls to track waste generation, documenting volumes of each type of waste and dates of handover to partner companies responsible for final disposal. Moreover, for each destination, specific documents are generated, such as the Waste Transportation Manifest and, at the end of the operation, the Final Disposal Certificate (CDF, in Portuguese), presenting all the information related to the waste handled.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

As part of Banrisul’s action plan, goals include reducing scope 1 and 2 GHG emissions by 25% by 2030, based on 2020 levels (emission reduction targets calculated using the SBTi tool – 2021), offsetting 100% of remaining emissions with an annual carbon-neutral project, maintaining the lifespan (10–15 years) of air conditioning equipment in branches until 2030, and pursuing improvements in eco-efficiency projects.

The amount of waste generated is not constant because it depends on non-recurring factors, which makes it difficult to set individual targets. For example, maintenance and renovations in workplaces generate waste as a result of the replacement of fluorescent light bulbs. However, Banrisul is committed to replacing all fluorescent light bulbs with LED bulbs during branch refurbishments.

Similarly, no targets have been set for unserviceable furniture, but the Bank is committed to properly disposing of all furniture that is no longer used by the Institution.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

Use of renewable energy: 70 consumer units migrated to the Free Energy Market (ACL, in Portuguese) from October to December 2023.

Energy efficiency: delivery of spaces featuring energy-efficient components and equipment, such as occupancy sensors to turn lights on and off, LED panels, inverter air conditioning equipment and sunshades.

Air quality analysis: an air collection and analysis procedure is conducted every six months at the premises (including both units that do and do not serve customers).

ESG in the supply chain: benchmarking.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

With the recent update of the Solid Waste Management Plan in 2023, it was possible to review solid waste disposal flows, as well as assess the gaps to be addressed. The Bank is currently implementing the action plan resulting from this update.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

The ESG agenda was embedded the various levels through meetings, the dissemination of targets, external communication to the market and internal communication.

306-2 a) Actions, including circularity measures, taken to prevent waste generation in the organization’s own activities and upstream and downstream in its value chain, and to manage significant impacts from waste generated.

Waste management processes are outlined in an internal regulation, revised in 2023, which specifies the types of waste generated by the Bank, the disposal flows, responsible departments for execution, and monitoring measures in line with the Solid Waste Management Plan (PGRS, in Portuguese). This management includes monthly tracking of waste volume indicators and oversight of contracts with companies and partners for proper final disposal and donation of unserviceable items.

In 2023, we concluded the Copinho Zero (Zero Cups), a project aimed at reducing single-use plastic waste by replacing plastic cups with reusable coffee mugs and water bottles by all employees. We issued an administrative instruction to our branch network to procure cups made from sustainable materials to offer to customers, thereby mitigating the negative environmental impact of these wastes.

306-2 b) If the waste generated by the organization in its own activities is managed by a third party, a description of the processes used to determine whether the third party manages the waste in line with contractual or legislative obligations.

Internal controls track waste generation, documenting volumes of each type of waste and dates of handover to partner companies responsible for final disposal. For each destination, specific documents are generated, such as the Waste Transportation Manifest and, at the end of the operation, the Final Disposal Certificate (CDF, in Portuguese), presenting all the information related to the waste handled.

306-2 c) The processes used to collect and monitor waste-related data.

The Bank’s waste management is centralized internally, with materials quantitatively measured for appropriate disposal according to their type.

306-3 a) Total weight of waste generated in metric tons, and a breakdown of this total by composition of the waste.

306-4 a) Total weight of waste diverted from disposal in metric tons, and a breakdown of this total by composition of the waste.

306-4 b) Total weight of hazardous waste diverted from disposal in metric tons, and abreakdown of this total by the following recovery operations.

306-4 c) Total weight of non-hazardous waste diverted from disposal in metric tons, and a breakdown of this total by the following recovery operations.

306-4 d) For each recovery operation listed in Disclosures 306-4-b and 306-4-c, a breakdown of the total weight in metric tons of hazardous waste and of non-hazardous waste diverted from disposal.

306-5 a) Total weight of waste directed to disposal in metric tons, and a breakdown of this total by composition of the waste.

306-5 b) Total weight of hazardous waste directed to disposal in metric tons, and a breakdown of this total by the following disposal operations.

306-5 c) Total weight of non-hazardous waste directed to disposal in metric tons, and abreakdown of this total by the following disposal operations.306-5 d) For each disposal operation listed in Disclosures 306-5-b and 306-5-c, a breakdown of the total weight in metric tons of hazardous waste and of non-hazardous waste directed to disposal.

¹There was no recovery of waste not destined for final disposal within the Organization, only outside.

²We have data on fluorescent lamps; however, the metric used in our control is by units. In 2023, fluorescent lamps were no longer disposed of, due to the process of replacing them with LED lamps.

³ The reduction in Class II non-hazardous waste compared to previous years is because there was no monitoring of this waste. After improvements in control, in June 2023 the organic waste from the Headquarters Building, which goes to landfill, began to be monitored by weighing it daily.

⁴ The organic solid waste generated in the organization is sent for public collection in the locations where the branches are present. A company is contracted to dispose of organic waste at the headquarters building.

306-3 b) Contextual information necessary to understand the data and how the data has been compiled.

306-5 e) Contextual information necessary to understand the data and how the data has been compiled.

See the footnote of the table and answer to item GRI 306-2 b).

306-4 e) Contextual information necessary to understand the data and how the data has been compiled.

Unserviceable furniture was redirected through donation, quantified in units: 2,382, in 2022; and 2,661 in 2023. Organic waste was sent to landfills: at the headquarters, 312.5 m³ in 2022, equivalent to 125 metric tons of waste, using a density of 400 kg/m³, and 11.5 metric tons in 2023, starting from August.

See the answer to item GRI 306-2 b).

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

To govern supplier relations, Banrisul uses the Bidding Law, other related federal and state legislation and the Internal Bidding and Contract Regulations (RILC, in Portuguese), published on the Bank’s website under Transparency.

The website also features other documents governing supplier relations, including the Supplier Relations Manual, which governs supplier behavior in bidding processes and the contracting of Banrisul Group companies, and Banrisul’ Supplier Manual, created to help the Bank’s suppliers know and understand the procedures used in its business relations for the acquisition of goods and services.

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

The terms and conditions of the relationships between the Company and its suppliers are set out in the contracts entered into between the parties.

Especially for contracts involving the outsourcing of labor, they are submitted to thorough checks for compliance with labor and social security obligations, through monitoring of certificates of good standing, among other actions.

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

In public procurement rules, there is a tool that mitigates the real impact of shortages: emergency contracting, a device that allows the immediate contracting of service providers/suppliers to meet an urgent service requirement. The resource makes it possible to carry out the services or supply and then deal with the internal administrative procedures provided for in the regulations, to make the contract effective.

3-3 d) iii) actions to manage actual and potential positive impacts.

 No positive impacts requiring management actions were identified.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

Suppliers, especially those with contracts involving the outsourcing of labor, are submitted to thorough checks for compliance with labor and social security obligations, through monitoring of certificates of good standing, among other actions.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

There are no targets or indicators to evaluate the progress of the monitoring and sanctioning processes, because their contribution to the overall process is a lot more qualitative than quantitative.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

The effectiveness of the actions is felt qualitatively when the managing units are more concerned about describing possible penalties for the poor performance of the contract in the contracting processes; the managing units seek new ways to choose service providers through more robust qualifications in bidding processes; contractors try to anticipate future problems of understanding in requests of performance to the contractor, avoiding the filing of a sanctioning process; and contractors understand the importance of sending labor documentation to be effectively monitored by the Supervision department.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

The terms and conditions of the relationships between the Company and its suppliers are set out in the contracts entered into between the parties. Given the right/duty of the managing department to start proceedings to determine responsibility in case of poor performance of the contract by the contractor, the contracting process is moralized, preventing possible market suppliers with bad intentions from participating in contracting procedures. Similarly, the effectiveness of outsourcing supervision can be reducing the number of labor complaints in which the Bank is jointly and severally liable.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e). 

Departments were created by the Procurement Unit, always with the support of the Board of Executive Officers. Pursuant to internal regulations, departments must always be created by a resolution, previously approved by the higher bodies.

308-1 a) Percentage of new suppliers that were screened using environmental criteria.

As contracts may have specific sustainability criteria, such as the use of sheets with the FSC seal, equipment with lower impact on ozone emissions and appropriate disposal of construction waste, among others, all contracts signed by the Bank go through an analysis of environmental criteria.

414-1 a) Percentage of new suppliers that were screened using social criteria.

All Banrisul’s contracts are evaluated on the basis of social criteria, including labor and social issues, in accordance with specific legislation.

404-1 a) Average hours of training that the organization’s employees have undertaken during the reporting period, by:

404-1 a) i) gender;

¹ To calculate the average number of hours, we used the total number of training hours per employee divided by the number of employees by gender (see GRI 2-7). In 2021, trainees were not included in this calculation. The data for 2022 was adapted to the methodology, which led to a decrease in the average number of training hours [GRI 2-4]. All the courses included in these figures are considered apprenticeships.

404-1 a) ii) employee category.

With regard to the average number of training hours, by employment category, there was an increase in the Manager category, due to attendance in training programs, as shown in the following table; a reduction in the Analyst category, as a result of the voluntary redundancy program, which terminated more than 500 employees, whose activities were transferred to other employees; extinction of the Assistant category, which included the technical advisor position; expansion of the Clerk category due to the entry of new employees, who participated in the onboarding program and training courses for the position; a reduction in the Intern category, compatible with the return to face-to-face activities, which demand new tasks and restrict the time available for capacity building; and a positive impact on the Other category, as a result of the new classes in the Supervisor Training Program.

¹ To calculate the average number of hours, we used the total number of training hours per employee divided by the number of employees by employee category (see GRI 405-1). All the courses included in these figures are considered apprenticeships.

² Assistants were considered in the functional category of Analysts.

³ The training hours of attachés were not taken into account.

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

Banrisul does not have a specific policy on the topic.

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

Through the Onboarding Program, the People and Culture Development Unit – Corporate University, responsible for organizing the program, provided newcomers with a unique experience that allowed them to deepen their knowledge of Banrisul’s history, mission, culture, values, practices and goals. The initiative reinforces the Bank’s commitment to the continuous training of its employees, striving for constant improvement. 

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

Through investments in employee training, which totaled R$5.3 million in the year. Among Corporate Education initiatives, Banrisul invested in training programs for the branch network and general management units based on learning paths in distance learning or in-person format.

3-3 d) iii) actions to manage actual and potential positive impacts.

Banrisul invests in the development of educational strategies and programs through co-production, integrating the vision of the branch network and -general management, focused on using knowledge to enhance productivity and provide better service. Attention to inclusive and integrative language in the dissemination of programs and learning paths enhances qualifications by bringing together and connecting all units and Regional Superintendencies.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

To monitor the development of the training area, the Bank tracks investments, employee participation in courses, certifications achieved, mandatory courses developed, career progression based on training, course and webinar reaction surveys, and the applicability of academic research, among other things.

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

Banrisul evaluates Corporate Education based on key indicators: investment, number of employees who attended courses, number of employees who received certification, training hours per employee, course/event satisfaction level and course/event quality level.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

Periodically, quantitative data on trained employees are shared with the Board of Executive Officers and employees in articles published in the internal portal. Every time Banrisul identifies a position that needs to be filled, specific training is developed to prepare professionals to meet the requirements of the job as market managers, business operators and agribusiness relationship managers, among others.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

In 2023, several webinars focusing on Diversity, Equity and Inclusion were created, strengthening the inclusive culture in the Organization. In the New Employee Onboarding Program, strategies for welcoming new colleagues with disabilities and guidance for managers were incorporated into educational strategies, in partnership with human resources.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

Banrisul offered courses through the Training Program to advance its employees’ careers. The courses were designed through co-production organized by the Corporate University, involving the administrative units, the branch network and Banrisul Group affiliates.

401-1 a) Total number and rate of new employee hires during the reporting period, by age group, gender and region.

¹ The rates were calculated based on the total number of employees hired.

²In 2023, the number of employee hires was higher due to a civil service exam.

¹ The rates were calculated based on the total number of employees hired.

²In 2023, the number of employee hires was higher due to a civil service exam.

¹ The rates were calculated based on the total number of employees hired.

²In 2023, the number of employee hires was higher due to a civil service exam.

401-1 b) Total number and rate of employee turnover during the reporting period, by age group, gender and region.

¹ The rates were calculated based on the total number of employees dismissed.

²In 2023, the number of layoffs was high due to the implementation of the Incentivized Retirement Plan carried out in 2022, with layoffs scheduled for the following year.

¹ The rates were calculated based on the total number of employees dismissed.

²In 2023, the number of layoffs was high due to the implementation of the Incentivized Retirement Plan carried out in 2022, with layoffs scheduled for the following year.

¹ The rates were calculated based on the total number of employees dismissed.

²In 2023, the number of layoffs was high due to the implementation of the Incentivized Retirement Plan carried out in 2022, with layoffs scheduled for the following year.

403-1 a) A statement of whether an occupational health and safety management system has been implemented, including whether:

403-1 a) i) the system has been implemented because of legal requirements and, if so, a list of the requirements;

403-1 a) ii) the system has been implemented based on recognized risk management and/or management system standards/guidelines and, if so, a list of the standards/guidelines. 

Safety risk management is supported by guidelines applied by the main regulatory bodies in the sector, taking into account recommendations from specific regulations contained in manuals published by the following entities:

• Ministry of Labor and Social Security;
• Labor Prosecution Office;
• Fundacentro (a government foundation linked to the Ministry of Labor);
• Brazilian Health Regulatory Agency (Anvisa, in Portuguese);
• Occupational Safety and Health Administration (OSHA);
• National Institute for Occupational Safety and Health (NIOSH);
• American Conference of Governmental Industrial Hygienists (ACGIH); and- Collective Bargaining Agreement.

403-1 b) A description of the scope of workers, activities, and workplaces covered by the occupational health and safety management system, and an explanation of whether and, if so, why any workers, activities, or workplaces are not covered.

All employees are covered by the same worker protection initiatives in all the Bank’s units. The scope includes branch network employees, administrative staff in the General Management units and the Board of Executive Officers.

403-3 The reporting organization shall report the following information for employees and for workers who are not employees but whose work and/or workplace is controlled by the organization:

403-3 a) A description of the occupational health services’ functions that contribute to the identification and elimination of hazards and minimization of risks, and an explanation of how the organization ensures the quality of these services and facilitates workers’ access to them.

The PCMSO is responsible for the screening and early detection of possible work-related health problems, reporting them to the Specialized Safety Engineering and Occupational Medicine Service (SESMT – Serviços Especializados em Segurança e Medicina do Trabalho in Portuguese) for assessment of service quality with the PCMSO coordinating physician.

GRI 404-2 a) Type and scope of programs implemented and assistance provided to upgrade employee skills.

Training courses offered:

• Business Managers and Business Managers in Other States, which trains and develops professionals to work in the branch network, serving corporate customers;
• Account Managers, which promotes the onboarding, training and development of employees selected to work in the new role of Account Manager, developing the skills and attitudes necessary for the proper performance of their activities;
• Business Operators, which trains employees selected to work in the new Business Operator position, aiming to prepare them to serve and work with individual customers;
• Supervisors, which trains and develops professionals to work as Supervisors in the branch network, serving the Bank’s internal and external public;
• Market Manager, which trains and develops the employees selected for the new position of Market Manager in the branch network;
• Agribusiness Relationship Manager, aimed at professionals who will manage a pre-defined portfolio of customers of the respective point of service, with a business focus on middle- and high-income rural producers;
• Agribusiness Manager, which trains employees selected for the new Agribusiness Manager position, developing technical skills focused on the segment, expanding their knowledge of rural credit products and services, aiming at attracting and managing new business in this segment.
• Corporate Business Manager, which aims to train professionals to manage Large Companies accounts;
• Government Business Managers, which aims to train professionals to work at the superintendencies, in line with the Government Business Unit’s goals.

¹All courses included in these figures are considered apprenticeships

¹All courses included in these figures are considered apprenticeships

GRI 404-2 b) Transition assistance programs provided to facilitate continued employability and the management of career endings resulting from retirement or termination of employment.

The Bank focuses on continued employability and follows-up with the participants of the Pescar Project and the Young Apprentice Program in order to monitor their insertion in the job market, after completing their experience at Banrisul.

403-6 a) An explanation of how the organization facilitates workers’ access to non-occupational medical and healthcare services, and the scope of access provided.

In addition to offering Cabergs, a self-managed health insurance plan, the Bank has preventive programs aimed at maintaining general health.

403-6 b) A description of any voluntary health promotion services and programs offered to workers to address major non-work-related health risks, including the specific health risks addressed, and how the organization facilitates workers’ access to these services and programs.

In 2023, the main actions of the programs were the annual flu vaccination campaign, the emotional support program for victims of robbery during work activity (PASS, in Portuguese), with full reimbursement of the necessary therapies in order to prevent illness due to post-traumatic stress, and the program to pay for all treatment to recover from accidents at work and illnesses related to professional practice (PROAT, in Portuguese).

417-3 a) Total number of incidents of non-compliance with regulations and/or voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by:

417-3 a) i) incidents of non-compliance with regulations resulting in a fine or penalty;

There were no incidents.

417-3 a) ii) incidents of non-compliance with regulations resulting in a warning;

There were no incidents.

417-3 a) iii) incidents of non-compliance with voluntary codes.

There were no incidents.

417-3 b) If the organization has not identified any non-compliance with regulations and/or voluntary codes, a brief statement of this fact is sufficient.

There were no incidents of non-compliance with laws and/or voluntary codes in relation to marketing communications.  

3-3 a) Describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights.

3-3 b) Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships.

See the answers to this content in the impact section on the material topics page.

3-3 c) Describe its policies or commitments regarding the material topic.

In the customer area, the Institution has rules for excellent customer service:

•  Institutional Manual/Banrisul’s Customer and User Relations Policy, which consolidates the guidelines, policies, standards and responsibilities that must be observed when conducting business with the Bank’s customers and users, throughout the entire relationship cycle: before, during and after product and service contracts;
• Institutional Manual/Ombudsman Policy, which defines guidelines and rules for handling customer/user complaints as a last resort, after all attempts at satisfaction and/or a definitive solution have been exhausted by the Bank’s primary service channels.

3-3 d) Describe actions taken to manage the topic and related impacts, including:

3-3 d) i) actions to prevent or mitigate potential negative impacts;

Satisfaction surveys (NPS and CSAT) are the main tools for showing progress in customer relations. In addition to showing goals, targets and indicators, the metrics help to identify points for improvement in the customer experience and influence the Quality of Service Indicator (IQA, in Portuguese).

3-3 d) ii) actions to address actual negative impacts, including actions to provide for or cooperate in their remediation;

Banrisul relies on an Ombudsman Office to analyze and seek solutions to customer/user complaints, as a last resort when the primary service channels do not respond satisfactorily.

When a complaint is deemed valid by BACEN, the Ombudsman Office assigns responsibility to the branches, general management units or Banrisul Group companies.

3-3 d) iii) actions to manage actual and potential positive impacts.

Banrisul strives to offer excellent service to its customers, in all relationship channels catering to this public. In line with its proposal to work towards constantly improving its service, the Bank completed the installation of Service Management Terminals (TGA, in Portuguese) in the third quarter of 2023.

The resource makes it possible to generate corporate data and information on customer behavior at the physical point of service. This information is also used to manage service quality indicators, which impact branch performance and are now part of the Bank’s employee compensation and career planning metrics, contributing to the development of a culture focused on service quality. TGAs are an important tool for improving the customer journey and supporting branch agents.

3-3 e) Report the following information about tracking the effectiveness of the actions taken:

3-3 e) i) processes used to track the effectiveness of the actions;

Satisfaction surveys (NPS and CSAT) are the main tools for showing progress in customer relations. In addition to showing goals, targets and indicators, the metrics help to identify points for improvement in the customer experience and influence the Quality of Service Indicator (IQA, in Portuguese).

3-3 e) ii) goals, targets, and indicators used to evaluate progress;

Indicators such as NS, TA, CSAT, NPS, IQA, as well as feedback from the Ombudsman Office.

3-3 e) iii) the effectiveness of the actions, including progress toward the goals and targets;

Progress includes, but is not limited to:

• Simplification and improvement of the customer journey, with all after-sales services now provided by the Bank;
• First-level customer service and solutions, with step-by-step explanations on how to access the app (via chat or telephone);
• Focus on customer service, without the intervention of retention and/or sales strategies.

3-3 e) iv) lessons learned and how these have been incorporated into the organization’s operational policies and procedures.

Complaints received by the Ombudsman Office, after careful analysis and identification of the root cause of the problem reported, are used as inputs to enhance processes, products, and services; reduce the risk of recurrence; prevent litigation; and make improvements to all customers and users. The weaknesses identified by the Ombudsman Office when handling demands derive from the corporate environment used by the Bank’s risk and control departments, contributing to build a consolidated information framework that enables managers to better assess their risks.

3-3 f) Describe how engagement with stakeholders has informed the actions taken (3-3-d) and how it has informed whether the actions have been effective (3-3-e).

The complaints registered by customers are considered opportunities for detecting flaws in processes, products and services.