Brazil's financial sector does it again: it's home to two of the four emerging market banks singled out for innovations in sustainable banking in the Financial Times 2006 Sustainable Banking Awards shortlist, released earlier this week. Brazil's Banco ABN Amro Real1 and Banco Itau2 were shortlisted for the "Emerging Markets Sustainable Bank of the Year" laurels, along with South Africa's Nedbank and India's Yes Bank.
The FT Sustainable Banking Awards program, held jointly with World Bank's IFC - International Finance Corporation, recognizes global banks that have actively integrated social and environmental objectives into their operations.
Brazil is fast establishing itself as a hub of innovations on sustainable financing in emerging markets. In December 2005, it launched the Bovespa Sustainability Index, the first of its kind in Latin America. The index includes local companies listed on the Sao Paulo Stock Exchange and will track not only their economic and financial performance, but also their corporate governance and environmental and social performance.
[1] Banco Real was founded in Belo Horizonte, Minas Gerais state, on 16 June, 1925 as Banco da Lavoura de Minas Gerais. In mid-1998, the strategic partnership between Banco Real and Banco ABN AMRO SA - the Brazilian subsidiary of ABN AMRO Bank - was announced. ABN AMRO Bank (ABN AMRO), which owns all of the shares of ABN AMRO Bank N.V., is an international banking group offering a range of banking products and financial services on a global basis through its network of 3,557 offices and branches in 58 countries and territories.
[2] Banco Itau Holding Financeira S.A. (Public, NYSE:ITU) is the 2nd major private bank in Brazil founded in Sao Paulo, on 1945. The Company has four principal operations: banking (including retail banking through its wholly owned subsidiary, Banco Itau S.A. (Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA S.A. (Itau BBA) and consumer credit to non-account hold customers through Itaucred), credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan.
