Integrated Report 2019

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Capa e Verso_Relatório Integrado_2019.indd 2 17/02/20 09:21 contents

4 Foreword 6 Statement from the Chairman of the Board of Directors 8 Statement from the CEO 10 Materiality Matrix 12 The Bradesco Ecosystem 14 2019 Highlights 16 Our DNA 19 Business Model 24 Strategic positioning 38 Sustainability 42 Risk management 48 Technology and innovation 60 Governance and compliance 66 Ethics and integrity 68 A focus on creating value 69 Economic value 77 Social value 107 Environmental value 114 Governance Bodies 116 Limited Assurance Report 118 Corporate information 118 Credits

BRADESCO INTEGRATED REPORT 2019 3 foreword In developing this report, we have continued to draw guidance from Global Reporting Initiative (GRI) and International Integrated Re- porting Council (IIRC) guidelines. In addition to the GRI, we have also applied the integrated reporting framework to join Bradesco’s financial and non-financial information together into a coherent whole. Other sources of guidance include the Sustainability Ac- counting Standards Board (SASB) Our Integrated Report 2019 de- methodology, the B3 (Brasil, Bolsa, scribes our most significant activi- Balcão) Corporate Sustainability ties and results for the year across Index (ISE), the Dow Jones Sus- the four pillars of our strategic tainability Index (DJSI), the Carbon plan (sustainable and profitable Disclosure Project (CDP), the Task growth, customer relations, effi- Force on Climate-related Financial ciency and innovation, and human Disclosures (TCFD), addressing cli- capital) and the 12 topics currently mate-related risks and opportuni- deemed most material by us and ties, and the ABRASCA Listed Com- our stakeholders, as identified in pany Self-Regulation Code and our most recent stakeholder sur- Good Practices. We also report on vey in 2018. The 12 topics are: our performance and challenges in supporting the United Nations (UN) • Customers; Sustainable Development Goals • Technology and innovation; (SDGs) as part of Agenda 2030. • Human capital; Our Integrated Report has again • Market and competition; been a collective effort of employ- • Business strategy; ees from across the Organization. • Efficiency; The report is published in two for- • Economic environment; mats: a condensed version in print • S ocial and environmental and the full report in PDF, available responsibility; for download from the Bradesco • Corporate governance; investor relations website: • Risk management; banco.bradesco/ir-en

• Regulation and compliance; We hope you find this report use- • Capital management. ful and informative.

4 foreword how to read this report

CAPITALS SDGS1

Our Integrated Report 2019 FINANCIAL 1 NO POVERTY describes our essence as an Organization and the results we 2 ZERO HUNGER achieved in 2019 with the support HUMAN of our fundamental pillars. In the 3 GOOD HEALTH & report, we present our DNA, our WELL-BEING organizational structure and our INTELLECTUAL QUALITY EDUCA- strategic vision, followed by an 4 TION account of the key ways we have GENDER EQUAL- delivered across the three di- SOCIAL 5 ITY mensions of sustainable business CLEAN WATER management: economic, social 6 MANUFACTURED AND SANITATION and environmental. AFFORDABLE AND 7 CLEAN ENERGY Each chapter features icons (see NATURAL opposite) that correlate the top- 8 DECENT WORK AND ECO- ics discussed with the relevant NOMIC GROWTH integrated reporting capitals, the 9 INDUSTRY, INNOVATION stakeholders affected and the AND INFRASTRUCTURE STAKEHOLDERS SDGs supported by our activities. REDUCED IN- 10 EQUALITIES For the purpose of standardiza- CUSTOMERS SUSTAINABLE CITIES AND tion, when we refer to Bradesco 11 COMMUNITIES as a whole, we use the terms Or- INTERNAL STAKEHOLDERS RESPONSIBLE CONSUMPTION ganization or Bradesco. When we 12 AND PRODUCTION refer to banking activities only, we use the term Bank. Bradesco SHAREHOLDERS & 13 CLIMATE ACTION Seguros Group is also referred to INVESTORS as Group and Insurance Group. LIFE BELOW 14 WATER Other subsidiaries are referred SUPPLIERS to by their respective names. 15 LIFE ON LAND In referring to our professional GOVERNMENT/ REGU- team, we always use the term LATORS 16 PEACE, JUSTICE & employee. Third-party employees STRONG INSTITUTIONS are referred to as such. COMMUNITY/SOCIETY/ PARTNERSHIPS FOR THE THIRD SECTOR 17 GOALS

1. Throughout the report, we illustrate how we have contributed directly and indirectly to the 2030 Agenda (SDGs). Learn more in the chapter “Sustainability” on page 38

BRADESCO INTEGRATED REPORT 2019 5 Statement from the Chairman of the Board of Directors

Bradesco’s establishment in 1943 ushered in a transformation in the way banking was done in Brazil. An open-door bank policy made us a pioneer in providing democratic values when it comes to ethics, access to financial services. This and our focus on providing the innovative, adaptable and inclusive best possible experience to our di- DNA, which has been passed on verse customers. Our customers from one generation to the next, is stage in which they are in their life are the reason for our existence. among our differentiators today. cycle, and then create opportunities that support their life achieve- 2019 was again a testament to the We are a relationship-oriented ments. This is our mindset and our strength of our strategic plan and bank. This defines our identity, and way of doing banking. business model. With our teams’ our reality. Our purpose is to be continued commitment, we suc- the bank and insurer of choice of We are alert to the constant ceeded in achieving the goals set. our customers by offering best-in- changes around us and responsive class products and services across to emerging trends, and work ef- Education has remained a flagship both physical and digital channels, fectively to anticipate technolog- of our social commitment, and a for a simplified, practical and se- ical developments to ensure the driving force for a fairer, more equal cure customer journey. longevity of the business. and more prosperous society. We are proud to have provided free, We build trust-based relations with These changes create the ideal high-quality education to 90,198 our customers, acting as a partner environment for a bank like ours, students in 2019 through the 40 to understand their needs and the with our unwavering principles and schools of Fundação Bradesco,

6 foreword which are present in severely un- derdeveloped areas in every state of Brazil and in the Federal District.

2020 will present new challenges, but we are alert and prepared to meet them and continue to create value for shareholders and society. We remain confident of Brazil’s potential and the capabilities of its people, and work continually to support the country’s continued economic and social left a legacy for Brazil’s financial development. We live in a country services industry and for everyone of opportunity, with an exciting who had the opportunity to work present and a promising future. with him. He will always be our role model of integrity, energy I end my message with a tribute and wisdom. to Mr. Lázaro de Mello Brandão, chairman of Bradesco’s parent On behalf of Bradesco, I would companies, who passed away at like to thank our shareholders and Luiz Carlos Trabuco Cappi age 93, after 76 years of dedicat- customers for their support, trust Chairman of the Board ed service to Bradesco. He has and preference. of Directors

Our purpose is to be the bank and insurer of choice for our customers by offering best-in-class products and services across both physical and digital channels, for a simplified, practical and secure customer journey.

BRADESCO INTEGRATED REPORT 2019 7 Statement from the CEO

We are well positioned to capture the benefits arising from Brazil’s economic recovery. Projections point to conditions for growth Bradescos was established with and a new and potentially extend- a mission to provide full-service ed credit cycle, with low interest banking to all customers, while rates and inflation under control. generating returns for shareholders and society. We can proudly say We remain on our journey forward, that, throughout our more than 77 delivering innovation through years of banking history, we have a pioneering mindset. A prime successfully fulfilled this mission. example of this is BIA (Bradesco Artificial Intelligence), a key step We recognize that our market is high- in our roadmap to embedding ly competitive. In recent years, we innovation in the services we pro- have witnessed fierce competition vide to customers. next, our native from new entrants, a changing do- digital bank, has also grown at a mestic regulatory environment, and remarkable pace. societal transformation. These developments have further underlined With a team of approximately our strengths and have confirmed 98,000 highly skilled professionals that our strategy is both sound and who are committed to our values, responsive to change. we serve more than 72 million

We reported a book net income of R$ 22.6 billion, or R$ 2.81 per share, and return on average equity of 18.0%.

8 foreword We are optimistic that in 2020 we will continue to deliver results, with strong expansion of our lending portfolio and a focus on further enhancing the customer experience.

uity of 18.0%. We paid our shareholders gross interest on equity and dividends of R$ 15.9 billion.

These results have been thanks to the commitment, responsibility customers in all regions of Brazil and dedication of our employees. and in strategic locations abroad, This, coupled with our vision for through both physical and digital business sustainability and our channels, with solutions designed confidence in Brazil, places us as for each customer profile. one of the most attractive companies for investment and helps 2019 saw a number of important to ensure our sustainability as an developments, such as the revital- Organization. ization of Ágora – our investment house – into a digital, open plat- We are optimistic that in 2020 we form, and Bradesco’s signing of a will continue to deliver results, with purchase and sale agreement to strong expansion of our lending acquire BAC Florida Bank, a bank portfolio and a focus on further en- specialized in financial services for hancing the customer experience. the high net worth segment. I would like to thank our stake- We reported a book net income holders for their trust and warmly of R$ 22.6 billion, or R$ 2.81 per invite you to read our Integrated Octavio de Lazari Junior share, and return on average eq- report for 2019 CEO

BRADESCO INTEGRATED REPORT 2019 9 materiality matrix

In 2018 we conducted a materiality matrix – with a wider range of stakeholders and increased partic- 2017 (World Economic Forum)) ipation from the Board of Directors and Bradesco’s internal strategic – to identify our most relevant and planning documents. This initial challenging topics and align expec- analysis generated a long list of tations with stakeholders. topics affecting our business.

The matrix included a review of Inputs from business managers and the industry research (Sustain- an industry survey were then used ability Topics for Sectors (GRI), to map out stakeholder responses RobecoSAM (DJSI), Sustainability and to prioritize listed issues. Accounting Standards (SASB), Commercial Banks and Invest- In 2020 we will conduct a new exer- ment, The Global Risks Report cise to revise our materiality matrix.

In total, the materiality review included more than 1,000 interactions with the following stakeholders:

ćć Senior leadership ććSuppliers ććInvestors ććSociety ććRegulators and trade ććEmployees associations ććCustomers

The assessment showed that lists the 12 most relevant issues the expectations of internal and for the Bank and how they relate external stakeholders are aligned. to the SDGs. The resulting materiality matrix

10 foreword Aspects related to the identified material issues

9 12 13 MARKET 8 AND 5 COM PET F ITIO AI N

CA PIT AL M A F 6 N AI 7 A CD 8 G Y E NC 9 M IE 12 E E IC N C FF N 13 T N E IO IA T L VA AI P O M N O N C C I CL PI U D D AI S

N N T A S 13 F

O O A S

12 M C CD

N Y

O I E

I A G 9 T F R

A L O S L 8 A L G U

N O

G D 7 E 1

N PI

R E

N 6 4

V CL

R T 5 O AI 12 N 8 M

E 9

N 10 T 8 A L

R CL E 10 S PI P 8 AI O CD 5 CD N 4 S 1 F IB Y F I G L E CD IT T Y A HU AL TR MAN CAPIT S CD SS E T IN N C US E O B EM RP O AG RA AN T M E G K O RIS VER NA AI NCE T EN NM IRO ENV ECONOMIC

BRADESCO INTEGRATED REPORT 2019 11 The Bradesco Ecosystem How we create and share value NATURAL CAPITAL INTELLECTUAL CAPITAL

Our vision, mission and values underpin everything we This foundation, combined with Bradesco’s guiding Climate Commitment do at Bradesco. Over the years, we have built a solid principles, enables us to pursue and evolve a strategy foundation across the different dimensions sustaining which has customers at its core. In doing so, we create 100% 100% R$ 2 billion invested in the business: human, intellectual, financial, social, value for these and other stakeholders in our network, of Bradesco’s CO2 of carbon emissions innovation manufactured and natural. supporting the longevity of the Organization and the operations will be neutralized beginning sustainable development of broader society. supplied with electricity in 2019 from renewable inovabra an ecosystem sources in 2020 MISSION that supports Contribute to people’s fulfillment innovation and sustainable development by MANUFACTURED CAPITAL SOCIAL CAPITAL Natural offering highly diversified and accessible financial and insurance solutions, products and services. 72 million 440,000 7,693 customers shareholders suppliers $ and investors Manufactured 11.8

VISION BILLION S HUMAN CAPITAL FINANCIAL CAPITAL U transactions

To be the bank of choice S T via digital for customers in both the A I channels physical and digital N $ A 97,329 R$ 1.4 trillion S B Intellectual environment, delivering M T L Total employees $ A in total assets R E

differentiated, efﬁcient T A

D E T

R E service to all market E

A 4,478 80,222 R$ 200 million R$ 25.9 billion

E I

segments. L

CAPITALS Service Points Invested in training

Branches

P in recurring

S $

I P

L and development U

M net income

Human S

R N S

VALORES T

Customers are our reason to exist; O VALUE CREATED AND SHARED A

We are Ethical in all business L S

activities and relations; * We are Transparent in providing Employees Bradesco Social needed information to stakeholders; R$ 19.3 billion R$ 18 billion We Believe in people’s value and $ in employee reinvested in our businesses, capability to develop; compensation products and services We Respect human dignity and diversity; We exercise social and Government Investors Financial environmental Responsibility and R$ 20.4 billion R$ 7.9 billion promote initiatives towards in taxes $ distributed sustainable development.

$12 BiA

1 + 3 = 4

12 foreword **SDGs 4, 5, 8, 9, 11 and 13 have been prioritized as goals we believe we can support most effectively. Learn more about the prioritization process in the chapter “Sustainability”, page 38. The Bradesco Ecosystem How we create and share value NATURAL CAPITAL INTELLECTUAL CAPITAL

VISION BILLION S HUMAN CAPITAL FINANCIAL CAPITAL U transactions

D E T

R E service to all market E

A 4,478 80,222 R$ 200 million R$ 25.9 billion

E I

segments. L

CAPITALS Service Points Invested in training

Branches

P in recurring

S $

I P

L and development U

M net income

Human S

R N S

VALORES T

Customers are our reason to exist; O VALUE CREATED AND SHARED A

We are Ethical in all business L S

* Not including extraordinary dividends of R$ 8 billion paid in 2019 based on retained earnings. Including these dividends, a total of R$ 15.9 billion was distributed in 2019. $12 BiA

1 + 3 = 4

BRADESCO INTEGRATED REPORT 2019 13 **SDGs 4, 5, 8, 9, 11 and 13 have been prioritized as goals we believe we can support most effectively. Learn more about the prioritization process in the chapter “Sustainability”, page 38. 2019 headlines

A Solid Organization

An expanded lending portfolio of R$ 605 billion

R$ 25.9 billion R$ 282 billion in recurring net income in market capitalization

An Innovative Organization

The first bank to deploy Artificial Intelligence, with more than R$ 2 billion invested in innovation 269 million annually interactions with BIA (Bradesco Artificial Intelligence)

More than 1,500 people next involved in our innovation A fully digital, ecosystem – inovabra open banking platform

14 foreword A diverse Organization that believes in its people's potential

More than 97,000 employees across four generations, of which more R$ 200 million than 50.4% are women invested in training and and 26.4% are black development

An Organization committed to sustainable development

More than R$ 665 million invested by Bradesco Foundation The only bank (Fundação Bradesco) present in all Brazilian – the largest private education municipalities initiative in Brazil

Present in the leading sustainability indexes and ESG ratings Corporate Sustainability Index (ISE), The only Brazilian bank to have Carbon Efficient Index (ICO ), Dow Jones 2 participated in developing the Sustainability Index (DJSI), Bloomberg Gender-Equality Index (GEI), among others UN Principles for Responsible Banking (PRB)

BRADESCO INTEGRATED REPORT 2019 15 our

CAPITALS SDGS STAKEHOLDERS 1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17

16 A strengthened

ćć Customers are the reason for our organizational existence; ććWe are Ethical in all business culture activities and relations; ććWe are Transparent in providing needed information to stakeholders;

ććWe Believe in our people’s value and capability to develop; After 77 years of existence in 2020, Bradesco is a leader in Brazil’s ććWe Respect human dignity and financial services industry. In our diversity; nearly eight decades of operating history, we have built and consoli- right opportunities and adjusting ććWe exercise social and dated a set of values and principles our costs to changing economic environmental Responsibility that have enabled us to navigate conditions. Our passion for innova- and promote initiatives towards often-challenging circumstances tion and awareness of being able sustainable development. and emerge a stronger Organiza- to improve education in Brazil and tion. These values and principles support its sustainable develop- Our values are also translated into are distinguishing marks of our ment are also a part of our organi- the following success factors: organizational culture and our way zational culture. of doing business, and are passed ććThe strength of the Bradesco on as a legacy to each generation Over the years, these values and brand, with a long-standing of professionals joining the Organi- beliefs have become key strengths. presence in the financial, capitals zation. Among them is our commit- Our aspiration to support Brazil’s and insurance market; ment to Brazil’s development and development has led us to grow to reducing regional inequalities in our banking presence; our drive for ććA solid culture and corporate a country of continental size and innovation has made us pioneers governance framework focused complexity. Another nonnegotiable in our industry on many occasions; on business continuity; value at Bradesco is our commit- and our strong customer focus has ment to delivering the best services helped us to build a customer base ććOne of the best networks in to customers across all income of more than 72 million people Brazil in terms of technology and levels, social classes and geogra- across diverse customer profiles, to coverage; phies. Also inscribed in our DNA is whom we provide helpful, straight- a commitment to acting at all times forward and friendly service. ććA broad portfolio of products, with ethics and integrity, fostering services and solutions for all employee motivation and well-be- We are proud to present below the segments; ing and delivering superior returns values that form our DNA and the to shareholders by capturing the ethos of each of our employees: ććStrong investment in technology.

BRADESCO INTEGRATED REPORT 2019 17 Ready for the future

We are currently undergoing a With so many transformations strengths. In the future we aspire period of profound transformation, occurring, it is clear to us that for, customers, people and innova- both in society as a whole and in we, as an Organization, also need tion acquire yet greater importance Brazil’s economy in particular. In to reinvent ourselves. And this and, together with the fourth pillar society, changes are being driven transformation is already under- of our strategy – Sustainable and by the digitization of social and way at Bradesco. We are preparing profitable growth – will take Brad- business relations and by a grow- for the future, but without leaving esco forward in this new chapter of ing desire for a fairer and more behind our legacy and our set of transformation. sustainable world. In the Brazilian economy, the current agenda of capped government spending and other fiscal efficiency measures are likely to make the private sector the The following are the pillars of Bradesco’s business strategy, primary driver of development in which position us to meet the challenges ahead. the country over the coming years. In the financial services industry, opportunities are being unlocked by the limited participation of government institutions in funding eco- EFFICIENCY AND nomic growth. Meanwhile, banks INNOVATION are being required to deal with new competitors, including players from other segments. CUSTOMER RELATIONS

HUMAN CAPITAL

SUSTAINABLE AND PROFITABLE GROWTH

18 our DNA future customers. We are also committed to increasing efficiency business model and cutting costs in our processes and operations as an imperative for further improvement in both our financial and our social and As we pursue our mission of con- Bradesco’s scale and country-wide environmental performance. tributing to people’s fulfillment reach (physical presence in all and sustainable development by Brazilian municipalities as well Bradesco’s strategy and future offering highly diversified and as digital presence through our vision rest on four pillars that guide accessible financial and insurance internet banking and mobile app us on our journey to sustainability: solutions, products and services, channels), an extensive portfolio, we feel prepared to capture segmented service capabilities ććCustomer relations; the opportunities and meet the and strong investment in technol- ććSustainable and profitable challenges presented to us in ogy and innovation, we are able growth; our journey of creating value for to deepen relations with custom- shareholders and society. ers of different profiles, provide ććEfficiency and Innovation; tailored solutions, and deliver ććHuman capital. Our business model, combining a practical, secure and efficient banking and insurance, helps to customer experience. Concurrent- Below we present each of our pil- diversify our sources of revenue ly, we have developed a differen- lars and relevant strategic develop- and create resilience. Through tiated value proposition to attract ments in 2019:

CUSTOMER RELATIONS and impartial role to support our rate segment, we created a sole relations with customers. proprietorship portal (MEI Portal) We serve all customer segments that helps independent workers to with the goal of being the bank Several other initiatives also reflect formalize their business without and insurer of choice of our cus- the importance that customers costs or red tape. tomers, and we demonstrate our (in both individual and corporate commitment to each customer by customers) have to our business Another highlight in the year was recommending products, services or sustainability. After creating a de- our acquisition of BAC Florida transactions that are suited to their partment dedicated to non-check- Bank in Miami for US$ 500 million, needs, interests and goals. Bradesco ing-account customers in 2018, we which will enable us to expand our created an ombudsman department launched a Non-Checking-Account financial services and products in in 2005, two years before it became Portal in 2019 that allows cus- the US for Bradesco customers in mandatory under National Monetary tomers to purchase products and the high net worth segment. The Council Resolution No. 3,477, due to services online without having a conclusion of the transaction is our belief that it would play a crucial checking account. In the corpo- pending regulator approval.

BRADESCO INTEGRATED REPORT 2019 19 SUSTAINABLE AND PROFITABLE GROWTH

We are committed to sustainable the customer experience, antic- and diversified growth, creating ipate customer needs, and offer value for all stakeholders by strik- profile-appropriate products and ing an optimal balance between services. risks and returns. Our goal is to strike an optimal Our initiatives are focused on balance between risks and re- optimizing our processes and turns, a fundamental aspect of technologies to accelerate trans- business sustainability. formations needed to enhance

EFFICIENCY AND INNOVATION

We recognize the importance of have steadily evolved – in 2019, delivering efficiency and the best 96% of our customer transactions possible customer experience, were made through digital chan- and work to embed technology nels. An important asset in our and innovation into our business digital offering is BIA (Bradesco models. We ensure our different Artificial Intelligence), which has customer profiles are serviced been actively interacting with our through appropriate business customers since its launch in the models. second semester of 2017. Also as part of our digital journey, towards We have a physical presence in the end of 2017 we launched next, all of the Brazilian cities that is Bradesco’s native digital bank. The consistent with regional develop- latest addition to our ecosystem ment potential, and we periodi- of solutions, next offers a unique cally review the business models value proposition for hyper-con- chosen for each geographical nected customers. From the first region and/or customer profile for quarter of 2020, next will have suitability. Our digital channels independent management and in-

20 our DNA frastructure to increase agility and Bradesco’s most recent initiative flexibility, further advancing the has been another demonstration Bank’s successful journey in the of our agility and flexibility in fintech market. Another significant the era of innovation. Ágora, an initiative is inovabra, an innovation investment house 100% owned by ecosystem that fosters collabora- the Organization, has been revital- tion among employees, business ized to become our official invest- functions, clients, companies, ment platform, with 100% digital startups, technology partners, onboarding, new product options investors and mentors to address and expert advisory, providing a customers’ changing needs and to convenient and trusted platform secure the long-term sustainabili- for investments. ty of the business.

Business models for different customer profiles.

Our succession plan identifies critical positions within each function and employees with the potential to fill strategic positions in the future (leadership positions or key positions requiring subject-matter expertise). HUMAN CAPITAL Bradesco’s public initiatives and The foundation of our strategy is commitments on the Diversity built on people. That is why we front are a testament to our belief work continually to enhance our in each person’s transformational ability to attract, develop and retain potential and our respect for indi- the right talent for each business in viduality and plurality. We encour- support of our corporate strategy. age our employees to strive to achieve their full potential, as part The importance of people manage- of our belief that outstanding re- ment in delivering our strategy has sults are achieved when individual led our leadership to implement values are aligned with the Organi- a modern, best-practice manage- zation’s broader strategy. ment approach that is responsive to emerging demands in the labor Some of the human resources market, helping us to sustain diver- guidelines and practices in place at sity, a healthy balance sheet and Bradesco include: performance re- consistent profitability. views and competency mapping for

BRADESCO INTEGRATED REPORT 2019 21 100% of our workforce; structured individual development plans (IDPs); and training and development supported by Unibrad, our corporate Strategy planning and execution University. Other initiatives include our Viva Bem health and well-being Bradesco’s corporate strategy – which includes our mission, vision program, and the Bradesco Volun- and values, our strategic goals, performance and risk indicators, teers Program, which encourages and strategic targets and initiatives – is periodically revisited by the employees to participate in volun- Board of Executive Officers. teering initiatives. During the budgeting process, the different departments In 2019 we launched the Extraor- throughout the Organization take guidance from our corporate dinary Performance Awards (PDE), strategy in developing their individual budgets. which recognize employees working in commercial functions at our Strategic initiatives define what actions we will implement branches who have exceeded per- to promote efficiency and optimal resource allocation and formance expectations. investment decisions.

To enhance effectiveness in delivering our strategy, Bradesco has invested in our Corporate PMO and several local project management and strategy offices. This year we were recognized as having the best PMO in the world in the PMO Global Awards 2019, an initiative hosted by PMO Global Alliance.

Façade of the Praça Benedito Calixto branch (São Paulo - SP)

22 our DNA 77 years of service with excellence and innovation

1943 1951 1956

Amador Aguiar establishes After only eight years in The Bradesco Foundation Bradesco in Marília, in the business, Bradesco becomes is created, later to become southeast of Brazil. the largest private bank Brazil’s largest philanthropic in Brazil. education organization.

1968 1995 2001

Bradesco launches Brazil’s Bradesco launches the Bradesco stocks are listed first credit card. first internet banking on the New York Stock Branches are present in all platform in Brazil and Exchange. states of Brazil. the fifth worldwide.

2006 2009 2014

Bradesco introduces Present in all Bradesco launches biometrics in its ATMs. municipalities in Brazil. inovabra, an open innovation ecosystem.

2016 2019

Bradesco launches BIA (Bradesco Artificial Bradesco becomes a signatory Intelligence), a testament to our innovative spirit. of the UN Principles for Responsible Banking (PRB).

BRADESCO INTEGRATED REPORT 2019 23 strategic

CAPITALS SDGS STAKEHOLDERS 1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17

24 customers are at the center of our attention

Our business is managed by the Board of Executive Officers with the support of our more than Engagement Policy. Our business 97,000 employees. The Board of structure is designed to provide Directors exercises oversight of all customers with high-quality, and provides support to the Board efficient and flexible services that of Executive Officers (read more in are tailored to the stage they are Governance and compliance). at in their life cycle, their goals, and their plans. Three of our exec- Bradesco has two primary busi- utive vice presidents are dedicat- nesses – banking and insurance ed to retail, wholesale and high- – offering a diversity of products net-worth customers, and one is and services. We have a seg- responsible for Organization-wide mented business structure that business support across Human puts customers at the center of Resources, Technology, Finances, our attention, as outlined in the Legal and Risk Management, and Bradesco Customer and User other functions.

With a customer-centered culture, Bradesco is organized under four executive vice presidents: three dedicated to retail, wholesale and high-net-worth customers, and one responsible for business support functions.

BRADESCO INTEGRATED REPORT 2019 25 primary businesses

banking insurance

ćć Accounts: Checking, Savings, Payroll, ćć Life and personal accident insurance International, Click Conta and Bradesco ććHealth insurance Universitário (checking accounts for underage customers and undergrad ććAuto insurance students) ććProperty and liability insurance ććPremium Bonds ććAccident insurance ććInternational and foreign-exchange ććPrivate pension plans (individual and transactions corporate) ććSecurities brokerage ććPremium bonds ććInvestment advisory ććPension investment contracts ććCards ććService packages ććPooled finance ććCapital market solutions ććProperty auctions ććBanking services (direct debit, checks, transfers and deposits, etc.)

26 strategic positioning CORPORATE

INSTITUTIONAL SEGMENT1

INDIVIDUAL LARGE BUSINESS CORPORATES CUSTOMERS Annual revenues from R$ 4 BILLION PRIVATE CLASSIC BANKING

Investments from CORPORATES R$ 5 MILLION Annual revenues from R$ 500 MILLION to R$ 4 BILLION PRIME Monthly income up to R$ 4,000 CORPORATE ONE Annual revenues from Annual revenues Monthly EXCLUSIVE R$ 30 MILLION to up to income from Monthly income from R$ 500 MILLION R$ 30 MILLION R$ 10,000 R$ 4,000 to R$ 10,000 OR OR 1. Asset management, pension funds and securities brokerage. 2. Individual or corporate customers that use Bradesco products and Investments from Investments of up to services without having a checking account. R$ 100,000 R$ 40,000

NON-CHECKING- ACCOUNT CUSTOMERS2

With a continuing focus on driving banking inclusion, we offer a comprehensive range of service channels and invest in initiatives to progressively integrate the nient, efficient and secure for our physical and digital environments. customers, with the added benefit In 2019 we created Most products and services avail- of attracting hyper-connected an Institutional segment able from physical channels are customers and helping to cut for corporate customers now also available from digital costs. As a result of this strategy – with specific needs related channels. Expanded access to which is responsive to the changes digital channels and innovative taking place in society – 96% of to the capital market, in service models have made the transactions were made through the most recent addition to banking experience more conve- our digital channels in 2019. our service capabilities.

BRADESCO INTEGRATED REPORT 2019 27 Bradesco at a glance – 2019

More than 72 million customers

More than 30.1 million checking account customers R$ 60 billion in consumer finance 1.8 million new checking account customers

R$ 15.9 billion R$ 55 billion paid to shareholders as interest on in credit card transactions own capital and dividends

28 strategic positioning SERVICE CHANNELS TRANSACTION VOLUME ATM 9% CONTACT CENTER 27% 1% INTERNET BANKING INDIVIDUALS AND 3% CORPORATE BRADESCO EXPRESSO

1% BRANCHES

59% MOBILE INDIVIDUALS AND CORPORATE

COMMITMENT TO preneurs and business formaliza- the different scopes in our GHG In- SUSTAINABLE DEVELOPMENT tion in Brazil; to our subscribing to ventory, beginning with emissions We remain committed to embed- the United Nations (UN) Principles generated in 2019. The initiative ding environmental and social as- for Responsible Banking (PRB) in will make Bradesco the first major pects into decision-making within september 2019. We were the only Brazilian bank to achieve this level the Organization. We strive to en- financial institution in Brazil to par- of emission offsets. sure the longevity and success of ticipate in developing the frame- the business in the long term while work, which has been created to We are a publicly traded compa- supporting the bankarization and accelerate the industry’s contribu- ny listed on the B3 (Brasil, Bolsa, success of our current and future tion to achieving the Sustainable Balcão), New York (NYSE) and customers and the sustainable de- Development Goals (SDGs) and the Madrid (Spain) stock exchanges. velopment of the broader society. Paris Climate Agreement. Bradesco’s market capitalization in 2019 was R$ 282 billion, a equiva- There are many examples of how We recently established two lent to 2.1 times our shareholders’ we have delivered on this com- new commitments as part of our equity, an increase of 16.3% from mitment: from Bradesco’s growing agenda on climate change. In 2020, 2018. We were also named for the presence in the mortgage lend- 100% of Bradesco’s operations will 14th time in the Dow Jones Sustain- ing market, with a portfolio of R$ be supplied with electricity from ability Index (DJSI), in the World 54.6 billion in 2019 and more than renewable sources. The initiative and Emerging Markets categories. 219,000 active contracts, mostly will make us one of the first major These results reflect not only our (216,700 contracts) with individual financial institutions in the world financial strength, but also the customers; through our exclusive to complete the transition. In addi- positive perceptions that investors digital account product for sole tion, we will neutralize 100% of the and other stakeholders have of the proprietorships, offering a range of greenhouse gas (GHG) emissions intangible aspects that increasingly advantages and supporting entre- from Bradesco’s operations across underpin our business.

BRADESCO INTEGRATED REPORT 2019 29 the strength of our distribution network We are present in every municipality in Brazil.

80,222 4,478 39,100 points of service1 branches Bradesco Expresso (banking correspondents) 57,720 33,900 ATMs Bradesco ATMs

4,439 Bradesco ATMs with banknote auto- feeding systems 159 Bradesco ATMs with readily available dollar and euro withdrawals 23,820 Banco24horas ATMs

1. Including branches; service points (PAs); ATMs located on companies’ premises (PAEs), Bradesco Expresso and Bradesco Financiamentos (banking correspondents); Losango; and Banco24Horas ATMS.

30 strategic positioning international presence

LONDON 1 1

LUXEMBOURG 1

HONG KONG 1 2 NEW YORK 1 2

MIAMI 1

MEXICO 1 GRAND CAYMAN 1 1

ARGENTINA 1

Branches | Subsidiaries | Office

MAIN OPERATIONS banking Insurance, private pension

ćć Banco Bradesco S.A. plans and premium bonds

ććBanco Bradescard S.A. ćć Bradesco Seguros S.A. ććBanco Bradesco Financiamentos S.A. ććBradesco Auto/RE Cia. De Seguros ććBradesco S.A. Corretora de TVM ććBradesco Vida e Previdência S.A. ććÁgora Corretora de Títulos e Valores Mobiliários ććBradesco Capitalização S.A. ććBRAM – Bradesco Asset Management S.A. ććBradesco Saúde S.A. ććBradesco Leasing S.A. Arrendamento Mercantil ććMediservice Operadora de Planos de Saúde S.A. ććBEM DTVM ććAtlântica Companhia de Seguros ććBradesco Saúde – Operadora de Planos S.A.

BRADESCO INTEGRATED REPORT 2019 31 Much more than a bank

We offer a broad portfolio of BRADESCO CORRETORA motorcycles, trucks, buses, ma- products and services across the Bradesco Corretora now provides chinery and equipment, through banking/financial services and services exclusively to institutional an extensive partner network of securities segments. All custom- customers. Through Bradesco BBI, dealerships throughout Brazil; and ers have access to support from Bradesco Corretora additionally Payroll-Deducted Loans for public expert professionals. provides extensive analysis cover- pensioners, civil servants (Feder- age of companies and industries. al, state and municipal) and the ASSET MANAGEMENT Our Bradesco Securities units serve Armed Forces, through a nation- PLATFORM the North American, European and wide and diversified network of Through our Asset Management Chinese markets in ADR (American authorized correspondents. Platform, we provide remote and Depositary Receipt) trading and in-person investment advisory ser- distribution of government and LENDING OPERATIONS vices across all Bradesco, Bradesco private securities to investors. Our credit management policies Previdência and Ágora Investimen- are continually revisited to ensure tos products. Advisory services are LENDING they reflect the current economic tailored to customers’ stage of life, Banco Bradesco Financiamentos conditions. We have continued to investor profiles and needs. offers specialized lending solu- expand and diversify our offerings tions including Direct to Consumer across the distribution channels, ÁGORA INVESTIMENTOS (DTC) Loans and Leasing facili- and especially digital channels, Ágora, Bradesco’s investment ties to purchase light vehicles, which are supplemented by our house, offers an extensive product portfolio with investments for every investor profile and stage of life, including products from The entrance to Bradesco Bradesco and the broader mar- headquarters at Av. Faria Lima (São Paulo – SP) ket. These include variable income securities, futures, treasury direct, structured transaction certificates (COE), funds, government bonds and private fixed-income securities. We also provide specialist advisory services, personalized portfolio recommendations, exclusive Capital Market content, and modern and secure digital platforms.

32 strategic positioning Branch and Banking Correspon- the Brazilian market and Brazilian platforms: internet banking and dent network. Bradesco’s capillary companies operating in foreign mobile. Bradesco ranked as the presence enables us to offer loans markets. The division has partner- market leader for user experience and financing both directly and ships with 50 international banks in the Relatório Bancário awards. through strategic partnerships and access to the Swift Network, Bradesco is the market leader in with retail chains. Some of our key enabling companies referred by the automotive, real estate and business lines include: partner banks to open accounts. heavy vehicles segment.

Consumer Finance; business loans; GOVERNMENT PRODUCTS ASSET MANAGEMENT Bradesco Corporate; Agribusiness AND SERVICES BRAM (Bradesco Asset Manage- Finance; Mortgages; and Onlending. Exclusive platforms for government) offers complete investment ment clients throughout Brazil, fund and portfolio management INVESTMENT BANKING with business managers who solutions to clients of all profiles Banco Bradesco BBI, our invest- are trained to provide secure, and segments, including Bank ment banking arm, advises clients high-quality products, services clients and institutional investors on primary and secondary share and solutions to clients in the in Brazil and other markets. In offerings; mergers, acquisitions Executive, Legislative and Judiciary 2019, we launched our first ETF and asset sales; structuring and branches across the Federal, state (Exchange Traded Fund) on B3 issuing debt instruments; and and municipal levels, as well as in- (Brasil, Bolsa, Balcão). An ETF is an project finance. The Global Markets dependent agencies, public foun- investment fund traded on stock division, which is responsible for dations, government-owned com- exchanges that is benchmarked securities and relations with insti- panies and the Armed and Auxiliary against Ibovespa, the main stock tutional clients, has a highly qual- Forces. On a monthly basis, more market index in Brazil. ified market research team cover- than 11.4 million public retirees and ing different industries and listed pensioners receive their benefits CAPITAL MARKET SOLUTIONS companies in São Paulo, Buenos via Bradesco, the largest benefits We offer the capital market a diver- Aires, Mexico, New York, London payer among banks in Brazil. sified set of services and solutions, and Hong Kong. R$ 236.6 billion including fiduciary management was transacted in 191 investment CARDS services for investment funds, qual- banking transactions in 2019. A complete line of payment method ified custodian services and agency solutions for personal and busi- services for non-resident investors. CASH MANAGEMENT ness customers of all social and SOLUTIONS economic profiles. We work with INTERNATIONAL In 2019 we became the most pres- the main card networks as well as FOOTPRINT tigious brand in Cash Management private-label cards in partnership We are also active in the for- Solutions as perceived by custom- with leading companies. eign-exchange, export, import, ers, and were named the Best Cash transfers and trade finance mar- Management Bank in Brazil by Euro- POOLED FINANCE kets. We have specialized units money, ranking first in the Best Ser- Products for all consumer pro- and service offices in Brazil and vice and Market Leader categories. files, available from the Brades- globally, as well as an international A broad portfolio of products and co branch network and digital network of correspondents. services, financial solidity, security, tailored solutions and platform integration support companies, utilities and government agencies in managing accounts receivable We offer a broad portfolio of and payable and tax and fee revenue. Our Global Cash Management products and services to a wide division offers structured solutions for global companies operating in range of customer profiles.

BRADESCO INTEGRATED REPORT 2019 33 Ágora Investimentos

Our investment house was restructured in 2019 into an open platform. Ágora’s value proposition rests on three pillars: Ágora offers a portfolio of investment products for every ććA product portfolio and recommended baskets on an open investor profile, on an open platform. platform providing originator- and issuer-agnostic access to any and all products on the market, and investment curatorship providing recommendations on the best Our investment management (fixed income and stocks) issued product combinations to match services are supported by branch by Bradesco and third parties. In customers’ goals, needs and managers and a team of invest- partnership with Bradesco BBI, profiles; ment advisory specialists who they additionally provide extensive provide advice on banking prod- analysis coverage of companies and ććSpecialized advisory services ucts, investment funds, capital industries. Ágora Investimentos is provided across different service market products brokerage and a platform dedicated to individual channels, designed to create private pensions. Customers customers, while Bradesco Correto- value for customers through a also benefit from recommended ra serves institutional investors. complete offering of investment baskets that combine a diversi- products and solutions that are ty of financial products and are Internationally, our Bradesco Securi- ideally suited to the needs of our developed monthly based on ties units serve the North American, investment, checking-account and projections for the domestic and European and Chinese markets with non-checking-account customers international markets. services that include trading stocks according to their stage of life, net represented by ADRs and stocks worth and profile; We offer the convenience of being listed on local stock exchanges, and ććState-of-the-art, digital trading able to invest via our internet bank- distributing government and private channels that provide quick, ing, mobile and other channels, securities to investors. easy and full-service access to including telephone or chat service; customers. customers can use these channels to process transactions and obtain investment advice.

With a market-leading position, Ágora Investimentos and Bradesco R$ Corretora are prepared to advise investment customers on transac- 57 tions in the domestic and international capital markets, fixed and billion variable income (stocks and deriva- LEARN MORE tives) securities, investment funds, in assets under About Ágora at: structured transaction certificates agorainvestimentos.com.br (COE), futures and public offerings custody

34 strategic positioning Bradesco Seguros Group

Our insurance, private pension plan The Group has a strong customer and premium bond businesses are focus and service capabilities that operated through Bradesco Seguros include web and mobile chan- Group, the Brazilian market leader, nels, call centers, physical offices which has consistently contributed staffed by commercial teams, to Bradesco’s consolidated results. the 4,478 Bradesco bank branch- The Group offers a wide range of es, and a network of more than R$ solutions to its more than 28.7 mil- 28,000 professionals. In addition, lion policyholders and customers, Bradesco Seguros offers exclusive 235 in the following categories: Auto services such as Meu Doutor No- and Property & Casualty Insurance vamed clinics to Bradesco Health million (homeowners and property insur- and Mediservice policyholders, ance for Individual and corporate providing outpatient care, physi- on average customers); Health Insurance; cian consultations and lab testing in benefits and insurance Dental Insurance, Life Insurance; and imaging studies. claims paid per business day Premium Bonds; and Private Pension Plans. Through the SRCSB (Swiss Re Corporate Solutions Brasil Seguros S.A.) joint venture between Brad- esco Seguros Group and Swiss Re Corporate Solutions, we also have a The market leader in Brazil and presence in the large-risk segment, including medium and large corpo- Latin America, Bradesco Seguros rates in different industries (aero- Group has state-of-the-art service space, automotive, heavy industry, etc.). Bradesco Seguros Group also capabilities serving more than 28 offers credit cards with exclusive benefits for policyholders. million customers.

In digital channels, the Bradesco schedule appointments online with Seguros app provides a one-stop an exclusive network of physicians. platform for information and service The platform uses electronic health spanning all products across all cat- records that allow physicians and egories. Other available apps include other health professionals to store the Bradesco 24h Roadside Assis- patient information that can later be tance App (Bradesco Assistência Dia readily accessed. Bradesco Seguros & Noite), which provides 24 hour ac- Group customers can also use our cess to auto insurance coverage and BIA (Bradesco Artificial Intelligence) services, and Dirija Bem, which cap- virtual assistant within the Bradesco tures information about users’ driving Seguros app to search for informa- patterns and generates a report that tion about products. They can also encourages responsible and defen- use BIA in the Bradesco Seguros app sive driving. Another initiative is Meu to request services, such as finding a Doutor, a program in which users can network physician.

BRADESCO INTEGRATED REPORT 2019 35 Bradesco Seguros at a glance – 2019

With administrative buildings in Rio (SP), Bradesco Seguros Group is de Janeiro (RJ) and Curitiba (PR) and present in all regions of Brazil. headquarters in Alphaville, Barueri

142 28.7 More than commercial million 354,000 claims insurance policyholders paid by branch codes More than Bradesco Auto/P&C 3.7 million Bradesco Saúde policyholders More than 15 38 3 million Meu Doutor Bradesco Auto/P&C Bradesco policyholders1 Novamed 2 Auto Center More than clinics 7.3 million and another 14 dental scheduled to be opened policyholders in 2020 99 Meu Doutor Novamed clinic user satisfaction points

2 External clinics are located in São Paulo, Osasco, Guarulhos and Porto 1 Bradesco Seguros has approximately Alegre (RS). We also have six in- 1.4 million P&C (Property & Casualty) company units – the Cidade de Deus and 1.6 million Auto insurance campus, Bradesco’s headquarters, has customers. an on-site Meu Doutor Novamed clinic.

36 strategic positioning More than 835,000 16% requests made via the downloads Bradesco Auto app and 160,000 updates of the Bradesco Seguros, 24h Roadside Assistance, Dirija Bem and other apps

More than 19 94% million of towing service doctor’s appointments reimbursement previews provided to Bradesco Health via digital channels policyholders (Bradesco Health)

BRADESCO INTEGRATEDINTEGRATED REPORT 2019 37 sustainability

Bradesco’s sustainability vision is sustainability agenda, in 2019 we re- embedded in our corporate strat- visited our strategy and established egy and in our businesses and op- six pillars by which we will achieve erations. In response to the major further progress and anticipate challenges and trends affecting our future challenges.

Sustainable business Climate change Customer relations

Our goal is to expand our offering of We also work to ensure that Our purpose is to serve customers products and services that contribute our businesses are prepared for with excellence, while working to building a more inclusive society climate challenges by continually continually to improve our service so and support customers in their improving our approach to business that it is responsive to their needs transition to a more sustainable management, conducting strategic and goals and supports their life economy. reviews, and creating greater achievements. transparency around our climate impacts.

Diversity Innovation Private social investment

Bradesco embraces and promotes Leveraging our innovative force As one of the largest private donors diversity among our employees and – a force that is embedded in our in Brazil, we aim to amplify the customers. Our goal is to attract DNA and practices – in support of results and impacts with our social and retain talent, increase access sustainability has the potential to investment in Brazil. to career opportunities and serve create positive transformations in an increasingly diverse spectrum of our business operations and in our customer profiles. relations with customers.

Climate Commitment

100% of Bradesco’s operations will be 100% of carbon emissions neutralized supplied with electricity from renewable beginning in 2019 sources in 2020 This will make Bradesco the first major The initiative will make Bradesco one of Brazilian bank to achieve this level the first Banks in the world to complete of offsets the energy transition LEARN MORE in the full version of the Integrated Report.

38 strategic positioning SUSTAINABILITY GOVERNANCE, Under the leadership of our Sus- VOLUNTARY COMMITMENTS GUIDELINES AND MANAGEMENT tainability Committee, sustainability Bradesco’s commitment to sustain- In responding to the continuous governance at Bradesco involves the ability is also strengthened by our economic, social and environmental highest levels of the Organization engagement in initiatives to pro- changes around us, we rely on a set and aims to ensure we create long- mote sustainable development, as of guidelines and dedicated capa- term value, are responsive to stake- well as industry-led initiatives and bilities to manage these aspects of holders’ needs, and contribute to voluntary commitments. the Organization. social and economic development.

Sustainable Human Rights, Inclusion Sectoral Climate Change Development and Diversity

In 2019 Bradesco became a sig- Bradesco is not only among the with the United Nations' Envi- natory of the United Nations (UN) first signatories, but was also the ronment Programme Finance Principles for Responsible Banking only Brazilian bank to be among Initiative (UNEP FI). (PRB), a framework for the finan- the 30 financial institutions en- cial services industry to benefit gaged since March 2018 in devel- from an economy focused on oping the framework in alliance sustainable development.

BRADESCO INTEGRATED REPORT 2019 39 In 2018, Bradesco became the tives of stakeholders and the only Brazilian bank to join the Organization’s potential impact Principles for Responsible Bank- on the surrounding environment, ing (PRB) as part of a program Bradesco identified a set of prior- organized by the United Nations ity SDGs. Environment Program – Finance Initiative (UNEP FI) which, among Bradesco’s activities support INTEGRATING THE SDGS INTO other objectives, aims to align the several of the SDGs, as described OUR BUSINESS STRATEGY banking sector’s social responsi- throughout this report. By prioritiz- Bradesco has actively participated bility efforts with the Sustainable ing six goals, Bradesco has rein- in an agenda to engage Brazilian Development Goals. forced our commitment to align our businesses around the Sustain- businesses with the 2030 Agenda able Development Goals (SDGs) In 2019, five years after the 2030 and to monitor our impact on and and the UN Global Compact, both Agenda was launched and fol- contribution toward the society’s through our membership of the lowing an extensive study that goals and our progress on imple- Brazilian Committee for the Global explored the practices already in menting the Principles for Respon- Compact (CBPG) and the Open place at Bradesco, the perspec- sible Banking (PRB). Working Group on Sustainable De- velopment Goals, and through our sponsorship of studies – such as “Integrating the SDGs into Business Strategy” – to help amplify the private sector’s understanding and 1 2 engagement in accelerating such PRIORITY SDGS an ambitious agenda.

Since 2015, the SDGs have been used as a reference framework in gaining an understanding of, integrating and setting our strategy for action on the 2030 Agenda, as evi- denced by our materiality exercises (Materiality Matrix) and social and environmental investment.

1 The prioritization process was based on a stakeholder survey, industry benchmarking, our materiality matrix and strategic pillars, the state of affairs in Brazil (the most pressing social and environmental issues) and reporting and performance recommendations and guidelines. 2 The results from the prioritization process were audited by independent consultants ERM Brasil Ltda (Environmental Resources Management), with a favorable opinion. LEARN MORE About how the SDGs are embedded in our business strategy at undp.org/ content/dam/brazil/docs/ MORE INFORMATION publicacoes/prosperidade/ integracao-dos-ods-na- can be found in the full version of the estrategia-empresarial.pdf Integrated Report 2019.

40 strategic positioning ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) PERFORMANCE Bradesco’s progress on sustainabil- In 2019, Bradesco’s performance ity and performance on ESG (envi- was largely rated above the market ronmental, social and governance) average, as a result of a corporate issues have been recognized by the effort to implement best corporate LEARN MORE main stock exchange sustainability sustainability practices. about our performance indexes and ESG rating agencies. at bradescori.com.br

Specialized agency Awards Stock exchange indexes assessments and ratings

Dow Jones Sustainability Index – Bradesco was again included in the Dow Jones Sustainability Index (DJSI), in both the World and Emerging Guia Exame de Sustentabilidade Markets indices, and was the best – Bradesco was among the four top- rated among Brazilian private banks. rated financial services institutions in 2019.

Sustainability YearBook Award 2020 – Bradesco was recognized for the Corporate Sustainability Index – second consecutive year in the silver Bradesco was named for the B3 ISE category. index for the 15th consecutive edition.

BRADESCO INTEGRATED REPORT 2019 41 risk management

Our approach to risk management is based on guidelines established by the Board of Directors and by our committees, which set global risk management goals that are then The nature of our operations, the translated into targets and limits wide range of financial products and for the individual business units services we offer, and the globaliza- managing the relevant risks. Capital tion of the business expose us to a risk control and management units range of risks (credit, market, oper- support management by monitoring ational, liquidity, reputational, social, and assessing risk and capital. environmental and other risks) and require a robust and integrated risk We also have consistent processes management structure. Risk man- (measurement and control meth- agement is crucial for the long-term odologies, models and tools) for LEARN MORE sustainability and stability of the proactively identifying, measuring, Risk management instruments at Bradesco are continually evolving. Read business, and to provide security monitoring and reporting on risks more in our Risk Management Report – and assurance to stakeholders. so they are prevented or mitigated. Pillar 3, available at: banco.bradesco/ir-en

risk map

ćć Lending ććStrategy ććMarket ććReputational ććOperational ććModel ććUnderwriting ććContagion ććLiquidity ććCompliance, Conduct and Ethics ććSocial & Environmental ććCyber

42 strategic positioning RISK GOVERNANCE

Board of Directors Chief Executive Officer

Risk Committee Integrated Risk Bradesco Seguros Management & Capital Group Executive Risk Allocation Committee Management Committee (COGIRAC)

Business-specific executive committees

Executive Risk Executive Risk Executive Committee Management Committee Monitoring Committee for Money Laundering and Terrorist Financing/ Sanctions and Information/ Cyber Security

RISK MANAGEMENT Our risk and capital management management standards, criteria, GUIDELINES policies are in line with the Orga- controls and procedures. Bradesco has risk and capital man- nization’s strategic goals, local agement policies, standards and and international best practice, On an annual basis a calculation procedures in which Senior Man- and legal and regulatory require- is made of the solvency margin agement sets out basic guidelines ments, and are revised at least required to cover losses resulting that conform to the integrity stan- once per year by the Board of from catastrophic risks involving dards and ethical values upheld by Directors and disseminated to all Auto/P&C, Bradesco Health and the Organization. These guidelines employees and affiliates via our Bradesco Life and Pension Plan, apply to all activities within Brades- corporate intranet. including man-made and natural co and our subsidiaries. disasters such as wind storms, RISK MANAGEMENT AT earthquakes, rain and hail, floods Our policies, standards and proce- BRADESCO SEGUROS GROUP and landslides. dures ensure we maintain a control Bradesco Seguros Group has its structure that is consistent with own risk management structure, the nature of our operations, the which is designed to ensure that complexity of our products and the risks to which it is exposed services, activities, processes and are properly identified, reviewed, systems, and the scale of our expo- measured and addressed in sure to risk. accordance with applicable risk

BRADESCO INTEGRATED REPORT 2019 43 emerging risks

Bradesco works to continually The process consists of identifying, perfect our approach to managing assessing and monitoring emerging emerging risks in order to ensure risks, and is managed by a cross-de- they are adequately managed and partmental committee that reports measures are taken to prevent to the Organization’s risk control risks from materializing, minimize forums. The commission is led by adverse effects, and maximize the Integrated Risk Management opportunities. Department (DCIR) and includes a function dedicated to discussions related to emerging risks.

Our currently identified emerging risks include climate change and disruptive innovation in financial services (fintechs).

Cyber and information security risk

We have a Corporate Information and Cyber Security Policy that sets out guidance for all Bradesco employees and executives on confidentiality and adequately protecting the Organization’s and clients' data in order to mitigate risks to the Organization and society.

44 strategic positioning Social and environmental risk management

Social and environmental risks mental risks are assessed through adverse impacts. For projects related to financial institutions searches on internal and public (both greenfield and brownfield are largely indirect risks arising databases, such as the Employers projects) within the scope of our from business dealings, including Database (for slave or forced la- commitment, Bradesco’s assess- dealings with the supply chain and bor), the environmental regulator ments are conducted in accordance customers through lending and (IBAMA) blacklist and degraded with the International Finance investment activities. Our Social areas listed by state environmen- Corporation (IFC) Performance and Environmental Risk Standard tal regulators. We also conduct Standards and World Bank Group sets out the scope of assessments media searches for reports related Environmental, Health, and Safety for exposure to social and envi- to environmental accidents, im- Guidelines, going beyond mini- ronmental risks. pacts on traditional communities, mum legal compliance. Bradesco’s displacement of families, suspen- due diligence checklists evaluate In 2009, Bradesco implemented sion of environmental licenses and environmental, social, health and standards on social and envi- violations involving slave, forced safety, corporate governance and ronmental assessments for loan or child labor. As part of these as- climate change issues. underwriting. Prior to approving a sessments, we request additional client’s loan, social and environ- documents and clarification and On the Bradesco Sustainability then perform regular follow-up. website, we periodically publish case studies describing how we We became voluntary signatories have assessed potential social and of the Equator Principles in 2004 environmental risks and impacts and ensure that all major proj- relating to our clients and projects ects that are funded or advised (read the testimonial from a cus- by Bradesco and are subject to tomer monitored in accordance with the Equator Principles are devel- the Equator Principles since 2015). oped and managed in a socially responsible manner and implement environmental and human rights practices that support sustainable more than development. Where necessary, we also conduct due diligence in order 78 to prevent, mitigate and manage projects LEARN MORE Our Social and Environmental Risk Standard and social and monitored in 2019 against environmental risk and impact environmental, social assessment methodology for clients and projects are published at and human rights criteria bradescosustentabilidade.com.br.

BRADESCO INTEGRATED REPORT 2019 45 " Since the very first cycle, the audits for compliance with International Finance Corporation (IFC) Performance Standards have proven to be an important tool for continual improvement and for incorporating good practices that help to maintain and improve our social and environmental performance. Our partnership with Bradesco, a signatory of the Equator Principles, has provided an important foundation for the development of our business, with the Equator Principles framework providing support across all functions. An example of this was the implementation of an Integrated Management System, which has also led to further certifications.”

A Bradesco client in the port industry

TASK FORCE ON CLIMATE- The initiative, created in 2017, aims line with TCFD's recommendations. RELATED FINANCIAL to support financial decision-making At an international level, we are DISCLOSURES (TCFD) that takes into account the effects part of the UNEP FI’s second pilot Bradesco supports the market in of climate change on business. project alongside 32 other banks reporting on the financial impacts in different countries; in Brazil, we of climate-related risks and op- In 2019, Bradesco participated are a member of the working group portunities based on the recom- in two sectoral initiatives with a organized by the Brazilian Bank mendations published by the Task focus on developing climate risk Federation (FEBRABAN). Additional Force on Climate-related Financial management methodologies and information and reporting is avail- Disclosures (TCFD). tools for the banking industry, in able at unepfi.org.

SOCIAL AND ENVIRONMENTAL RISKS AT BRADESCO Seguros Group in line with Bra- environmental responsibility and the SEGUROS GROUP zilian Central-Bank Standard No. other on risk. Both contain guide- Bradesco Seguros Group has a 4.327/2014. lines on ESG (environmental, social dedicated social and environmen- and governance) issues and are tal risk assessment function that A working group with represen- applicable to all Group companies. is independent of Bradesco. In tatives from different Group de- 2019, controls were implemented partments and companies has The Social and Environmental to mitigate social and environ- developed and implemented two Risk Standard outlines risk man- mental risks affecting Bradesco related standards: one on social and agement processes that include

46 strategic positioning requirements on identifying, on discrimination, harassment of assessing, rating, controlling and any nature, child and forced labor, mitigating environmental, social and sexual exploitation. and governance risks in Group activities, in the development and In line with Bradesco’s corporate marketing of products and ser- policy, our Social and Environ- vices, and in managing real estate mental Responsibility Standard projects. The standard also re- requires that environmental, social quires due diligence on ethics and and governance criteria be in- social and environmental respon- corporated in Bradesco Seguros’ sibility for suppliers, clients and activities, and that environmental business partners in transactions protection be incorporated in the involving donations and sponsor- development and marketing of ship and in managing contracts products and services and in the and investments. In addition, it management of real estate devel- establishes a zero tolerance policy opments. On the environmental front, eco-efficiency and climate change have been set as priori- ties to ensure that products and services are developed to support these topics.

BRAM (Bradesco Asset Manage- for Responsible Investment (PRI), asset ment) manages investment funds BRAM uses a set of methodolo- and portfolios for clients of dif- gies to assess risks, opportunities management ferent profiles and segments. At and potential impacts from envi- year-end 2019, it had R$ 560.4 ronmental, social and governance billion in assets under management. (ESG) aspects on the performance As a signatory of the Principles of its assets. Of its total assets under management, R$ 556.7 billion or 99.3% were assessed – including on environmental, social and gover- Percentage of assets under management nance issues – in 2019. assessed on ESG issues The goal for January 2020 is to train all managers and analysts % % on the Responsible Investment 99.4 99.3 Assessment Standard and all em- % ployees in commercial and product 72.67 functions on responsible investment. In all, 120 people will receive training. These training goals had originally been set for 2019. An- % % other goal for 2020 is to publish a 2.52 15.21 report on the carbon footprint of BRAM’s portfolio. 2015 2016 2017 2018 2019

BRADESCO INTEGRATED REPORT 2019 47 technology and innovation

aspects permeate our strategy and are key levers in our journey into the future. By investing in technology and innovation, we will continue to deliver the best value proposition and the best experience to all Bradesco customers.

We annually invest approximately R$ Innovation is a part of Bradesco’s R$ 6 billion in technology and 6 bn culture. We have always actively have robust information technol- invested in followed trends in society and in ogy infrastructure and well-es- the financial services industry to tablished cybersecurity programs technology anticipate developments and trans- (read more in the subchapter each year form challenges into opportunities. Risk management); we use agile methodology in our business rou- The current context is more chal- tines and employ user experience lenging than ever. We have wit- design concepts to deliver prod- nessed the systematic develop- ucts and services that are more ment of disruptive technologies, user-friendly and responsive to helping to address customers’ changes in behavioral patterns, the customers’ and users’ needs. changing needs and secure the emergence of a new regulatory long-term sustainability of the landscape and growing competition Through inovabra, we have es- business (read more below). between incumbent financial insti- tablished a complete ecosystem tutions and new entrants, such as that promotes innovation inside Our efforts have translated into fintechs, big techs and insurtechs. and outside Bradesco through new products and business mod- We are alert to these developments collaboration among employ- els and process improvements and understand the prominent role ees, business functions, clients, and simplification, the benefits that technology and innovation companies, startups, technology of which are felt each day by our play in our business – indeed, these partners, investors and mentors, customers.

48 strategic positioning DIGITAL INNOVATION BRADESCO’S new products, services and INNOVATION technologies available on STRATEGY IS OPEN BANKING our digital channels which, CENTERED ON in combination with physical With new regulatory channels, simplify life for THREE FRONTS: developments requiring customers and provide a information sharing among convenient, efficient and financial and non-financial secure customer experience. institutions, banks now have the opportunity to establish external partnerships to offer new products and serve new niche markets.

a native digital bank designed to transform hyper connected users’ relationship with money.

Data science to enhance our offering user experience As part of our innovation ecosystem – inovabra – Bradesco invests in studies and research to two projects are in the pipeline that will increase continually improve the customer experience. All added value for customers by making our offering products, channels or services we develop are better targeted. In one project, called CRM 2.0, we based on user experience design methodologies are reorganizing the offering governance process that are applied by a dedicated team with support in an analytics-intensive project for which 80 data from strategic partners. Based on customer scientists have been recruited. We also launched a persona and journey investigations, we develop CRM decision support software system. prototypes and run tests with users using an agile The second program, called BRAIN (Bradesco approach, in a process in which multidisciplinary Inteligência de Negócio, or Bradesco Business teams are organized into a network and are able Intelligence), is using data intelligence to to independently make decisions, accelerating the transform our lending product offering to our process. User experience and usability facilitate customers by integrating journeys, processes, customers’ digital convergence and reduce the time pricing and credit analysis using real-time it takes to deliver products and services. decision support technologies.

BRADESCO INTEGRATED REPORT 2019 49 digital BIA (Bradesco Artificial Intelli- account transactions, financial in- gence) has been a major lever in dexes and nearby branches through innovation Bradesco’s digital transformation, geolocation. establishing the Bank as a leader in artificial intelligence and in In August 2019, we took BIA to the innovation. next level with the launch of voice- based wire transfers between Brad- In addition to getting information esco accounts using the Bradesco about financial services and prod- app for individual customers. We ucts, users can now also use BIA to have already recorded 269 million check their account balance, recent BIA-mediated interactions to date; on WhatsApp alone, 3.5 million people have chatted with BIA.

OTHER FRONTS After pioneering palm biometrics on all ATM machines, we now also offer voice biometrics in the Fone Fácil service and we are testing face recognition.

We also expanded the number of ATMs with bank note auto feeding mechanism in the year. With the solution, customers are no longer required to use envelopes, depos- ited cash is credited into customers’ accounts in real time, and the banknotes are fed back into cash cartridges for use in other customers’ withdrawals. In 2019, 4,400 ATM machines were equipped with the new technology, in more than 1,300 municipalities throughout Brazil. The self-service channel also gives users the option to send

3.5 million people have interacted with BIA to date.

50 strategic positioning the deposit receipt by email rather the mobile app for individual and than print it, reducing paper con- corporate customers, representing sumption. 11.8 billion transactions in 2019.

Another recently initiated project On the Bradesco app, checking will deploy technology and innova- account opening for individual cus- tion in the more than 40 Bradesco tomers is now 100% online. We also Expresso partners throughout offer an exclusive digital account Brazil. Several partners will shortly for sole proprietors that can be receive a new tablet with additional opened via the Bradesco Net Em- 17.1 features that will simplify day-to- presa app. Since implementation, in day activities and can boost busi- May 2019, a total of 21,100 accounts ness volumes. have been opened. million

In 2019 Bradesco attracted 1.8 There was also expansion in the Bradesco million new digital checking ac- volume of loans underwritten customers have digital count customers. Out of a total of through digital channels (internet checking accounts 30.1 million checking accounts, 17.1 banking, Bradesco Celular, ATM million are digital customers. machines and FoneFácil), which allow customers to purchase prod- The Bradesco app recorded 37.7 ucts and services directly. Personal million downloads (across the loans transacted via digital chan- Classic, Exclusive, Prime, Private nels increased by 47% and business and Net Empresa apps). Of our total loans by 40% compared with the transactions, 59% are now made via previous year.

The Bradesco app has reached 37 million downloads.

Digitization is also making strides at Bradesco Seguros Group. In 2019, approximately 40% of health insurance reimbursement claims at Bradesco Health were made via mobile app. At Bradesco Life and digital channels, while the per- Pension Plan, 175.000 applications centage of reimbursement pre- were signed electronically. Con- views via digital channels reached tact Center automation has also 92.6% in the year. At Bradesco progressed, with 40% of Bradesco Bradesco Auto/P&C, more than 8% Health Reimbursements and 63% of inspections and 16% of tow- of Bradesco Auto/P&C claims pro- ing services were arranged via a cessed through electronic agents.

BRADESCO INTEGRATED REPORT 2019 51 digitization in figures

11.8 billion % mobile transactions 82 of wire transfers (individual and corporate via our mobile app or Internet banking customers) in 2019 service – Individual customers 91% of DOC/TED transfers via our mobile app or internet banking service – Individual customers 269 million % interactions 99 with BIA of payments via our mobile app or internet banking service – Corporate customers

52 strategic positioning next - A digital native bank

Our second technology and innova- Launched toward the end of 2017, approximately 80% were not Brad- tion front is next, which in 2019 was next had 500,000 accounts at esco checking account customers named the best digital bank in Latin December 2018, and jumped to when they opened their next ac- America by Euromoney. next was 1.4 million accounts at September count, meaning customers are not also recognized for the second year 2019, ending the year at 1.8 million migrating from Bradesco to next, running as the best digital bank in customers. In 2019, an average of as expected. The current level of Brazil by Global Finance, and was well 10,000 accounts were opened per customer churn is 3.7%, in line with ranked in the Business Digital Trans- day. Of next’s total customers, other competitors. formation category in MicroPower’s Learning & Performance Awards. Designed as a 100% digital plat- A fee-free bank account form, next applies user experience design, intelligent customer jour- and credit card, unlimited neys and predictive algorithms to offer superior functionality and a withdrawals, free transfers, and better user experience, anticipate user actions, and suggest optimal discounts from partner brands financial management solutions to customers. It has also been de- are some of the benefits of next. signed and has established itself as a hub for connecting with other digital platforms, creating added value for customers. Under the slogan, “a digital bank with perks”, next offers bank account and credit card products with no fees, provides unlimited withdrawals from Bradesco and Banco24horas ATM machines, free wiretransfers (DOC and TED), investment funds, CDB and installment payments, as well as discounts from partner brands and personalized experiences.

The result is a high level of satisfaction. In 2019 next had an NPS (Net Promoter Score) of 77 points – on a scale from negative 100 to positive 100 – placing next among the best digital banks in Brazil.

Next’s new head offices (São Paulo – SP)

BRADESCO INTEGRATED REPORT 2019 53 STRATEGIC PARTNERSHIPS perks area operates as a benefits AND BUSINESS MODEL platform for next customers. A total As part of a transformation of of 290 partners now offer special the digital account distribution The goal of these partnerships is discounts on the app. process, throughout 2019 next to reach 200,000 new accounts, concluded strategic partnerships with partners centralizing pay- Further strategic partnerships are with companies and other sectors, ments in those accounts and op- expected to be established within such as the recently concluded erating as next distributors to the this model in 2020. partnership with a large cosmetics general public. company. This created a new busi- Alongside the new distribution ness model that offers a range of In addition to the benefits for model, next now also handles important benefits to beauty con- beauty consultants, the products payroll for companies whose em- sultants, including access to a free, from partner brands will be avail- ployees fall within the next cus- 100% digital next bank account able from the next perks hub, at tomer profile, leveraging Bradesco’s and a mobile credit card machine. a discount, for all customers. The strength in wholesale.

GROWTH IN NEXT CUSTOMERS

500,000 2018

1.8 million 2019

NUMBER OF TRANSACTIONS PROCESSED

90.2 million 2018

2019 376.4 million

54 strategic positioning open banking

Open banking is the third front in With open banking, customers can which distributes non-financial our innovation strategy, where op- check their account information and products (perks) to customers, and portunities to develop new prod- make payments out of their account on Ágora, a one-stop investment ucts and services and new business on other platforms and not only platform combining Bradesco’s in- models are being evaluated. The through the conventional channels vestment portfolio with third-party term “open banking” refers to the offered by financial institutions. In products. The concept is also pres- possibility of exchanging informa- Brazil, the Central Bank is respon- ent on our sole proprietorship portal tion with other financial services in- sible for establishing rules on data (MEI portal). The platform (mei. stitutions at the customer’s discre- sharing. The new open banking bradesco) was launched in 2018 as a tion, including the possibility of one framework is currently undergoing a provider of financial and non-finan- institution authorizing payments in public consultation, and is expected cial services for sole proprietorships an account held by the customer in to enter into effect in 2020. – including Bradesco customers and another institution. non-customers – assisting them in Open banking provides an oppor- managing their businesses, opening Open banking is a movement led tunity to develop new partner- sole proprietorships and develop- by regulators, banks and fintechs ships with third parties and create ing as entrepreneurs. In addition to that aims to explore opportunities financial products and services with offering customers the opportunity from sharing data and services. In added features, expanding the val- to open digital sole proprietor ac- general, open banking is enabled ue proposition and generating new counts via the Bradesco Net Empre- by APIs (Application Programming sources of revenue. sa app, with a range of benefits, the Interfaces), which allow systems and portal offers services and content programs to interact with each other The concept of open banking has from our initiative partners: Sebrae, through a standardized connection. already been incorporated in next, DicasMEI, MarketUP, Cielo and Stelo.

MEI Portal Ágora – Your Investment House More than R$ billion 20,000 57.2 Bradesco MEI under custody accounts opened via our mobile app 366,000 customers

BRADESCO INTEGRATED REPORT 2019 55 INOVABRA inovabra is an innovation ecosys- with employees, business func- tem developed to support our tions, clients, companies, startups, corporate strategy by promoting technology partners, investors and innovation through collaboration mentors. inovabra provides the ideal platform for sharing business insights, accelerating new solutions and materializing innovation ECOSSSEAINNOVATION DEECOSYSTEM OAO within the Organization, helping to address customers’ changing needs and secure the long-term sustainability of the business. inovabra comprises eight mutually synergistic programs:

centers hub

startups lab

ventures international

research habitat

INOVABRA CENTERS INOVABRA STARTUPS Created in 2012, inovabra centers Launched in 2014, inovabra start- is an internal innovation program ups is an open innovation program that stimulates creativity and designed to support strategic entrepreneurship in our employ- partnerships between Bradesco and ees by disseminating a culture of startups offering solutions that can innovation throughout the Orga- be applied or adapted to financial nization. Innovation projects are and non-financial services offered prioritized, structured and managed or used in Bradesco or partner from conceptual design, through companies. A total of more than 40 business model development and proofs of concept have been de- validation, to market launch. The veloped and 14 startups have been program brings together more engaged to date, including three in than 100 employees from different 2019. The program provides start- business functions, who interact ups with the opportunity to work with each other and with external with real-world customers, tests startups with a focus on developing solutions and build scale. innovative solutions to improve the customer experience.

56 strategic positioning INOVABRA VENTURES INOVABRA RESEARCH inovabra ventures is a private equity A multidisciplinary team of ana- fund launched in 2016, and current- lysts and researchers who study ly has R$ 400 million in available in depth about new technologies funding. The fund is managed by and business models for this fron- Bradesco’s Private Equity de- tier of knowledge, and develop partment and invests in startups use cases. Working closely with developing innovative technologies partners, universities and research and/or business models. inovabra institutions in Brazil and around ventures helps to lift startup valua- the world, the team supports in- tions and develop an entrepreneur- ovabra in the innovation process. ial environment, especially where The team is also responsible for solutions are being developed to conducting artificial intelligence address our clients’ needs. Invest- research at Bradesco, led by the ments have been made in seven Bradesco Center of Excellence for startups to date. Artificial Intelligence (CEBIA).

14 startups have been engaged through inovabra startups to date to develop solutions for Bradesco and our partners.

INOVABRA LAB Opened in late 2017, inovabra lab is a 1,700 square-meter facility in Bradesco’s Alphaville (SP) cam- software), prototyping, experimen- pus that houses 16 technology tation, proofs of concept, product laboratories designed to operate launches and solutions to new within a collaborative working challenges. It also provides opti- model alongside large technol- mal connectivity between business ogy partners co-hosted within functions and IT departments and the environment. This approach technology partners and brings LEARN MORE drives operational efficiencies by the Organization closer to emerg- Further information about optimizing and generating 60% ing frontier technologies. A total inovabra and its children programs is available on: time savings in the certification of of 523 certifications and 28 POCs www.inovabra.com.br. new technologies (hardware and have been completed to date.

BRADESCO INTEGRATED REPORT 2019 57 INOVABRA INTERNATIONAL In early 2018, we launched inovabra international, a program structured within a New York- based innovation environment and with links to London to provide an observatory of the innovation ecosystem and global startup activity. A dedicated team of employees works in a collaborative environment, in partnership with INOVABRA HUB a specialized firm, to identify solu- In 2017 we launched inovabra hub, tions that can create value for the a digital, collaborative platform business, and to monitor emerg- 1,800 that connects startups to business ing technologies and consumer opportunities in Bradesco and trends. More than 950 startups startups partner companies. More than 1,800 have been assessed and 26 solu- are registered on our digital startups have registered to join the tions are being developed at inov- inovabra ecosystem. abra lab and inovabra startups. platform: inovabra hub inovabra habitat currently has 191 resident startups and 92 large corporates.

INOVABRA HABITAT In February 2018, Bradesco launched inovabra habitat, a building measuring more than 22,000 square meters in area, situated squarely in São Paulo’s innovation and cultural hub – between working collaboratively to inno- Avenida Angélica and Rua da vate. More than 240 contracts have Consolação, near Avenida Paulista been concluded between compa- – where large companies, start- nies and resident startups, includ- ups, investors and mentors work ing 23 with Bradesco, of which 16 collaboratively to co-innovate and were concluded in 2019. In addition develop business opportunities. In to driving entrepreneurship and a just a short space of time, inovabra culture of innovation in organiza- habitat now has approximately 191 tions, habitat will support Brazil’s resident startups and 92 corpo- aspirations to take a leading posi- rates, with a total of 1,500 people tion in global innovation.

58 strategic positioning inovabra awards

ćć Valor Inovação Brasil 2019: 1st place in the ćć FELABAN CLAB 2019: BIA case study; banking category (3rd consecutive year); ććWhow! Award – Banking Category; ććEfma innovation of the month: Sole Proprietorship Portal case study; ććBank Reporting Award: Blockchain-Ripple case study; ććEfma innovation Awards 2019 – Digital Marketing: Vagalume case study; ććBank Reporting Recognition: Move Caronas app; ććGartner Eye on innovation: Sole Proprietorship Portal case study; ććLearning & Performance Brazil 2019/2020: BIA, in the Best in Brazil category.

The inovabra habitat co-innovation space at Av. Angélica, in downtown São Paulo – SP. The panel by artist Kobra and the Unicorn sculpture have made the fa- çade one of the most Instagram-worthy spots in the city

BRADESCO INTEGRATED REPORT 2019 59 governance

CAPITALS SDGS STAKEHOLDERS 16

A symbol of growth, renovation and openness, with roots in a successful past and a vision of the future (A sculpture at the corner of Faria Lima and Juscelino 60 Kubitschek – São Paulo – SP) committed to the highest standards of governance

(IGC) and the Corporate Sustain- ability Index (ISE). We are also a constituent of the Dow Jones Sus- the guidelines laid down by the US tainability Index (DJSI). Securities and Exchange Commis- sion (SEC). Internally, our bylaws Bradesco is listed in Corporate Our governance practices are and a set of standards and policies Governance Tier 1 on B3 – Brasil, based on the guidelines contained govern our activities. Bolsa, Balcão, reflecting our high in the ABRASCA Listed Company standards of corporate governance, Self-Regulation Code and Good Bradesco’s governance practices our commitment to transparency Practices, published by the Brazilian are a testament to our commitment and disclosure, and our successful, Association of Public Stock Corpo- to creating long-term value for integrated management model that rations (ABRASCA). We also support shareholders, employees and the reconciles financial with social and the Corporate Governance Best broader society. Our control frame- environmental aspects. Bradesco’s Practice Code of the Brazilian Cor- work was created by Amador Aguiar shares are also included in other porate Governance Institute (IBGC), with the aim of ensuring business B3 indices, including the Special of which we are members and continuity through any leadership Corporate Governance Stock Index sponsors. In addition, we adhere to successions or economic crises.

Our governance practices are based on the guidelines contained in the ABRASCA Listed Company Self- Regulation Code and Good Practices and on international standards.

BRADESCO INTEGRATED REPORT 2019 61 Reflecting his desire to convey a significant portion of Bradesco’s profits to charitable education pro- A significant portion of our profits grams, Amador Aguiar transferred part of his stock to the Bradesco are reverted to social programs Foundation, Brazil’s largest educational philanthropic organization. through the Bradesco Foundation, Another substantial portion of Bradesco’s stock was transferred to Brazil’s largest philanthropic a company, now BBD Participações S.A., the shares in which are held education organization. by the directive board and senior management. With this structure, BBD Part. and the Bradesco Foun- dation share control of the Bank careers with the Bank, helping to through Nova Cidade de Deus (see secure a balance between generat- our ownership structure). Under this ing short-term results and deliver- framework, shares in BBD Part. S.A. ing on our vision of sustainability, can only be redeemed when senior while also increasing stability in management personnel end their management.

Students at Fundação Brad- esco – Unit II (Osasco-SP)

62 GOVERNANCE AND COMPLIANCE ownership structure

46.30% CS 53.70% CS 100.00% PS BBDBBD PART. S.A. 26.07% Total 73.93% Total NOVA CIDADE FUNDAÇÃO (management/(management/ BRADESCO (1) employees)employees) DE DEUS

47.89% CS 47.89% Total

16.70% CS 35.41% CS 16.70% Total 35.41% Total CIDADE AGUIAR FAMILY DE DEUS

45.64% CS 0.02% PS 22.88% Total 25.13% CS 100.00% PS 60.41% Total

MARKET NCF

74.72% CS 0.15% CS 39.51% Total 0.08% Total 28.86% CS 8.43% 97.73% PS CS 63.22% Total 2.25% PS 5.35% Total

17.07% CS 8.55% Total BANCO BRADESCO

1. Bradesco senior managers (Board of Executive Officers and Board of Directors) make up the Bradesco Foundation’s highest governance body. CS: common shares; PS: preferred shares

BRADESCO INTEGRATED REPORT 2019 63 governance structure

Our highest decision-making body is and in any case for a period not ex- the General Shareholders’ Meeting, ceeding 180 days. Board of Directors which has powers to decide on all members serve a renewable term business matters pertaining to the of two years. The Internal Audit and Bank and to appoint members to the Governance Office – which is the Board of Directors and the Fiscal responsible for, among other duties, Council. Under Brazilian regulations, supporting all governance bodies only shareholders holding common and managing general meetings – shares (CS) are entitled to vote in report directly to the Board. General Meetings. However, in elect- ing members to the Board of Direc- tors and Fiscal Counsel, shareholders holding preferred shares (PS) and mi- COMPOSITION OF THE nority shareholders holding common BOARD OF DIRECTORS shares (CS) are entitled to vote. GENDER The primary duties of the Board of Directors are to define the business strategy, appoint or remove 1 woman 7 men members of the Board of Executive Officers, oversee the Chief Execu- tive Officer and appoint or remove AGE GROUP Independent Auditors. The Board has eight external members, who all jointly appoint a chairman and a vice chairman. The chairman is not permitted to serve as CEO other over 50 than in exceptional circumstances,

The Board of Directors is advised by The Board of Executive Officers seven supporting committees, each executes the business strategy of which has its own rules of proce- and continuously monitors the dure establishing members’ duties, effectiveness of decision-making. composition, and the frequency Officers are appointed for renew- of meetings. Bradesco also has a able terms of two years and are Fiscal Council in place since 2015, supported by a number of execu- LEARN MORE responsible for overseeing the active committees. Further information about our tivities of the Bank’s directors. The corporate governance structure is Fiscal Council is composed of five available at: banco.bradesco/ir-en. From the portal, users can download members and five substitutes, with our most recent Reference Form and two members and their substitutes Corporate Governance Report, among elected by minority shareholders. other documents.

64 GOVERNANCE AND COMPLIANCE SHAREHOLDERS’ MEETING

FISCAL COUNCIL

BOARD OF DIRECTORS AUDIT COMMITTEE

INTERNAL AUDIT INTEGRATED RISK MANAGEMENT & CAPITAL ALLOCATION COMMITTEE BOARD OF EXECUTIVE OFFICERS

INTEGRITY & ETHICAL CONDUCT COMMITTEE GOVERNANCE OFFICE

REMUNERATION COMMITTEE

SUCCESSION PLANNING AND NOMINATION COMMITTEE

SUSTAINABILITY & DIVERSITY COMMITTEE

RISK COMMITTEE

DEPARTMENT OFFICERS REGIONAL OFFICER OFFICERS

BRADESCO INTEGRATEDINTEGRATED REPORT 2019 65 ethics and integrity

Bradesco’s Code of Ethical Conduct sets out requirements on the conduct of managers and employees Bradesco Seguros Group has its for all of Bradesco’s companies, own Code of Ethical Conduct. as well as all third-party employ- We also have profession-specific ees and contractors. Using plain codes of ethical conduct, includ- and objective language, the Code ing codes governing the activi- describes expected and prohibited ties of employees working in the behaviors across issues such as financial and capital markets, pro- trust Act (Law No. 12,529/2011), transparency, conflict of interest, curement personnel, and auditors and international legislation. These insider information, recognition, and inspectors. programs – which extend to all ar- social and environmental responsi- eas of the Organization, including bility, political and party activities, Supplementing these are the foreign-based business units – are and leadership. It also sets out Bradesco Integrity Program and supported by corporate anti-brib- guidelines on dealings with our the Bradesco Antitrust Compli- ery and antitrust policies and different stakeholders, including ance Program, which contain standards, as well as documents customers and users, shareholders guidance on preventing, detecting containing guidelines on report and investors, competitors, suppli- and addressing any behavior and handling, donations and spon- ers, the media, communities, gov- actions in violation of the Bra- sorship, contributions to political ernment agencies and regulators, zilian Anti-bribery Act (Law No. candidates and parties, accounting and trade associations. 12,846/2013), the Brazilian Anti- practices, and other matters.

The Code of Ethical Conduct is our primary reference framework for direct and third-party employees.

66 GOVERNANCE AND COMPLIANCE Training and engagement To engage our employees around ethics, integrity and compliance, in 2019 we provided a range of training solutions including workshops, classroom-based and online courses, memorandums, video series and the Integrity System. In all, there were more than 1,600 in-person attendances during Integrity Week.

reporting channels

Bradesco provides a set of channels for anonymous and confidential BRADESCO GROUP REPORTING CHANNELS reporting on ethics and integrity concerns. Direct and third-party e-mail telephone employees can also make reports directly to their immediate manager ćć[email protected]; numbers or the Officer above them. ćć[email protected]; ćć Bradesco Ombudsman ćć[email protected] 0800 727 9933 (for antitrust concerns); ććAudit Committee ćć[email protected]; (11) 3684 9110 ććGeneral Inspectorate Department (11) 3684 2266 ććSocial Responsibility 0800 776 4240

FOR BRADESCO SEGUROS GROUP e-mail telephone ćć[email protected]; numbers ććprevencaoafraude@ ćć Fraud Hotline bradescoseguros.com.br; 0800 701 2788 ććBradesco Seguros Ombudsman 0800 701 7000 ććHearing or speech impaired 0800 701 7877

BRADESCO INTEGRATED REPORT 2019 67 Bradesco’s Headquarters on Av. Faria Lima (São Paulo – SP)

a focus on

CAPITALS SDGS STAKEHOLDERS 1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17

68 economic value

Despite its many challenges – both Liquidity conditions are favorable, structural and situational – Bra- in an environment in which underly- zil presents a wealth of business ing inflation remains under control, opportunities. Among the coun- resulting in gradually reduced eco- try’s strengths are entrepreneurs nomic stagnation and a positive and who are creative and adaptable, well-founded outlook. an abundance of natural resources, and a sizable consumer market Concurrently, we are experiencing with a potential for expansion that a period of profound, technolo- is rare in the current global con- gy-driven change that is reshaping text. The banking and insurance the way people purchase products industries tend to benefit from and services and interact with orga- this potential. nizations, with attributes like security, efficiency, ethics and transpar- Looking beyond the sector-based ency becoming increasingly high in context, declining interest rates and demand. Especially in the banking the passing of the Pension Reform and insurance industries, we have through Congress were important witnessed new regulatory frame- for Brazil’s economic recovery in 2019, which was also helped by Sev- erance Indemnity Fund (FGTS) pay- outs in the second semester of the year. In 2020, further progress on structural reforms, a Federal con- Technology-driven change cession and privatization program, credit expansion and an improving is reshaping the way people employment market are expected to provide a stimulus to the do- purchase products and services mestic market, positively affecting business, investor and consumer and interact with confidence. organizations.

BRADESCO INTEGRATED REPORT 2019 69 works and seen new competitors OUR RESULTS enter the market – such as fintechs, Return on Average Equity (ROAE) pensions and premium bonds big techs and insurtechs – introduc- saw continued growth to 20.6% in businesses, growth in fee and ing more flexible and competitive 2019, an increase of 1.6 p.p. from commission income and reduced business models. Lastly, growing 2018. Operating performance has ALL (Expanded) expenses and concerns over economic, social and continued to drive improvement in other operating revenue/expense, environmental issues (especially net income year over year. Recur- which offset the higher operating issues surrounding climate change) ring net income was R$ 25.9 billion expenses in the period, primarily have made these an important dif- in 2019, an improvement of 20.0% relating to variable expenses. ferentiator for organizations. year over year. The growth in net income from 2018 to 2019 reflects Alert to the emerging challenges higher net interest income, the and opportunities surrounding contribution from our insurance, economic, social and environmental issues, in 2019, Bradesco under- took a revision of our Sustainability strategy to prioritize those issues RECURRING NET INCOME that are most important to society (R$ million) and to the Organization, including climate change and sustainable business. The goals in our revised 3.22 strategy include reducing our carbon emissions, increasing our maturity in climate risk management, delivering solutions that are 2.68 responsive to customers’ and society’s needs, and supporting green/ 2.37 inclusive economy sectors. As we 25,887 advance further in this process, in 2020 we will revise our strategy for 21,564 28.8% other issues: customer relations, 19,024 29.6% diversity, innovation, and social in- 29.1% vestment. To reinforce our commitment to sustainable development, in 2019 Bradesco became one of the first signatories of the Princi- ples for Responsible Banking (PRB), 70.9% 70.4% 71.2% an international commitment that we helped to develop on invitation from the UN. 2017 2018 2019

SHARE OF BANKING BUSINESS SHARE OF INSURANCE BUSINESS RECURRING NET INCOME PER SHARE (R$)1 TOTAL

1 For the 12-month period (shares were adjusted to reflect stock dividends paid and share splits during the relevant period).

70 a focus on creating value FEE AND COMMISSION INCOME Fee and commission income was FEE AND COMMISSION INCOME R$ 33.6 billion in 2019, an increase (R$ million) of 3.0% compared with the previous year. The positive performance was driven by higher checking account revenue reflecting an 32,614 33,606 increase in our checking account 31,020 customer base and strong revenue from pooled finance management, custody and brokerage services, and underwriting/financial advisory services. During the period, adjustments were made in relation to asset management and secured transaction fees and lower card acquiring revenue. 2017 2018 2019

NET INTEREST INCOME The Net interest income grew NET INTEREST INCOME 5.4% compared with the previ- (R$ million) ous year. Net Interest Income was driven primarily by Net interest income - Customer portion and was benefited by higher average 58,756 transaction volumes, especially in 55,579 55,756 individual loan operations, driven by growth in consumer finance (personal and payroll deducted loans, vehicle loans and credit 47,993 46,729 49,631 cards). These improvements also supported stronger performance across the broader product mix.

7,586 9,027 9,125 2017 2018 2019

NET INTEREST INCOME – CUSTOMER PORTION NET INTEREST INCOME – MARKET PORTION TOTAL

BRADESCO INTEGRATED REPORT 2019 71 ALLOWANCE FOR LOAN-LOSS (ALL) EXPENSE ALL (EXPANDED) – EXPENSE The reduction in ALL (Expanded) (R$ million) Expense from 2018 to 2019 reflects higher revenue from credit recov- eries, lower impairment of financial assets and discounts granted/ 20,902 other, which offset the higher ALL (Expanded) expense as a result of loan growth and changes in the 14,755 14,408 portfolio mix, especially expansion in individual and micro-, small- and medium-sized enterprises loans.

2017 2018 2019

INSURANCE, PRIVATE PENSION PLANS AND PREMIUM BONDS Bradesco Seguros Group net in- NET INCOME FROM INSURANCE, PENSION PLANS AND come was R$ 7.4 billion in 2019, an PREMIUM BONDS increase of 16.6% over 2018 primar- (R$ million) ily as a result of higher operating income, reflecting strong revenue performance – with especially strong growth in the health, 7,451 premium bond and life insurance business lines – and higher finan- 6,389 cial revenue, reflecting stronger 5,534 performance in variable income and multi-market securities and IPCA-indexed investments, which contributed to a Return on Average Equity (ROAE) of 23.5% in 2019.

2017 2018 2019

72 a focus on creating value PERSONNEL EXPENSES Personnel expenses were R$ 21.8 PERSONNEL EXPENSES billion in 2019, an increase of 8.9% (R$ million) relative to the previous year reflecting higher expenses on salaries and social security taxes due to a 4.3% 21,767 raise under a collective bargaining 19,500 19,986 agreement, higher variable expenses (profit sharing – a variable compensation program was imple- 16,063 16,037 16,871 mented in 2019) on branch network employees, and higher expense on provision for labor claims, reflecting settlements concluded. 3,437 3,949 4,896

2017 2018 2019

STRUCTURAL NONSTRUCTURAL TOTAL

ADMINISTRATIVE EXPENSES Administrative expenses were R$ ADMINISTRATIVE EXPENSES 21.4 billion in 2019, 5.5% higher than (R$ million) in 2018. The year-on-year increase largely reflects expenses in connection with higher business volumes (“variable portion”), which increased by 7.5%, while other expenses (“fixed portion”) increased by 5.1% 20,291 21,407 over the same period driven by a 20,122 higher advertising expense. It is important to note that despite the higher investment in digital transformation and process improvements, administrative expenses (“fixed portion”) grew below the rate of inflation (IGP-M 7.3%).

2017 2018 2019

BRADESCO INTEGRATED REPORT 2019 73 EFFICIENCY RATIO (ER) The higher Efficiency Ratio (ER) in the period was affected by the net interest income, income from in connection with variable ex- insurance, pension and premium penses linked to performance. The bond operations, and fee and com- continual improvement in Risk-Ad- mission income, which offset the justed ER reflects a reduction in higher operating expenses largely 12-month ALL (expanded) expense.

EFFICIENCY RATIO - % 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

ER – quarterly 49.0 49.7 49.4 50.4 48.6 49.2 49.9 48.3

12-Month Risk-Adjusted ER 70.2 68.4 67.0 65.2 64.5 64.2 63.9 63.4

12-Month ER 49.0 49.4 49.3 49.6 49.5 49.4 49.5 49.0

EXPANDED LOAN PORTFOLIO The 13.8% growth in the ex- EXPANDED LOAN PORTFOLIO panded loan portfolio compared (R$ million) with 2018 was primarily due to growth in loan operations as well as changes in the portfolio mix, 604,953 especially expansion in individual 18.5% and micro-, small- and medi- 531,615 um-sized enterprises loans. 492,931 19.1% 18.7%

43.1% 45.7% 44.3%

35.6% 36.6% 38.4%

2017 2018 2019

INDIVIDUAL CUSTOMERS CORPORATES MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES TOTAL

74 a focus on creating value 90-DAY DELINQUENCY RATIO loans and adjustments to the loan in delinquency for corporates and Despite strong loan growth (+14% underwriting and credit recovery micro, small and medium-sized en- year on year) and the changes in processes. The delinquency ratio terprises. Since early 2018, all seg- the portfolio mix, the overall delin- for individual customers remained ments have shown improvement in quency ratio improved by 0.3 p.p. virtually level in the quarter and delinquency and the total ratio has in the quarter and by 0.2 p.p. in the in the year. The lower total ratio declined by 2.3 p.p. since it peaked year, reflecting the quality of new is explained by the improvement in March 2017.

90-DAY DELINQUENCY RATIO (%) MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES INDIVIDUAL CUSTOMERS TOTAL 6.1% CORPORATES

5.2% 5.1% 4.7% 4.4% 4.4% 4.3% 4.3% 4.3% 4.4% 4.8% 4.5% 3.7% 4.2% 4.2% 4.3% 3.9% 4.1% 3.6% 3.6% 3.5% 3.3% 3.3% 3.2% 2.0% 1.7% 1.9% 1.5% 1.5%

1.0% 0.8% 0.8%

Mar ‘18 Jun ‘18 Sep ‘18 Dec ‘18 Mar ‘19 Jun ‘19 Sep ‘19 Dec ‘19

BASEL RATIO BASEL RATIO – BASEL III Our total Basel Ratio was 16,5% in (%) 2019, a reduction from 2018 primarily reflecting the payment of R$ 8 billion in extraordinary dividends in 17.1% 17.8% October 2019 as well as prudential 16.5% adjustments reflecting an increase in tax credits. These effects were 13.7% 1.4% partly offset by strong capital 13.1% 0.8% 13.3% 1.3% generation (net income) and fund reallocation via dividends from the Insurance Group. 12.3% 12.3% 12.0%

2017 2018 2019

PRINCIPAL SUPPLEMENTA- TIER I TOTAL BASEL CAPITAL RY CAPITAL RATIO RATIO

BRADESCO INTEGRATED REPORT 2019 75 DISTRIBUTION OF VALUE ADDED (%)

26.9% 28.8% REINVESTMENT OF EMPLOYMENT INCOME COMPENSATION

11.8% INTEREST ON EQUITY/ DIVIDENDS (PAID AND 30.6% PROVISIONED FOR) CONTRIBUTION TO GOVERNMENT 1.9% THIRD-PARTY CAPITAL REMUNERATION – RENT

DISTRIBUTION OF VALUE ADDED (R$ MILLION) Description 2017 2018 2019 %

Employment compensation 17,171 17,665 19,278 28.8

Contribution to Government 16,126 20,552 20,440 30.6

Third-party capital remuneration – rent 1,211 1,213 1,299 1.9

Interest on equity/dividends (paid and provisioned for)* 7,204 7,299 7,863 11.8

Reinvestment of income 11,820 14,265 18,024 26.9

Total 53,532 60,994 66,904 100.0

* Not including extraordinary dividends of R$ 8 billion paid in 2019 based on retained earnings. Including these dividends, a total of R$ 15.9 billion was distributed in 2019.

ESTIMATES FOR 2020 9% to 13% 4% to 8% 3% to 7% expanded loan portfolio net interest income fee income 0% to 4% 4% to 8% R$ 13.5 to (personnel + Income from insurance, pension operating expenses 1 administrative + other operating expenses plans and premium bonds R$ net of revenue) 16.5 bn Expanded ALL 1. Includes financial income.

76 a focus on creating value social value

On the following pages we describe how Bradesco has worked to create value for our key stakeholders.

employees

healthy work-life balance. These principles, which are outlined in our Human Resource Management Bradesco is fully focused on Policy, guide the activities of Brades- serving all customers of all back- co’s Human Resource Department. grounds. This can only be achieved with a diverse makeup of people We remain committed to supporting practices that enhance employee who are committed to our purpose our employees’ careers within Brad- engagement and satisfaction in and our belief that each customer esco, as an organization that has working with Bradesco, such as is unique and deserves the best always believed in the benefits of our Viva Bem health and well-be- service and the best solutions at employee development in tandem ing initiatives, and our program to all times. Our more than 97,000 with business development. Re- encourage employees to participate employees are truly the foundation flecting this commitment, 56.4% of in volunteering initiatives (www. sustaining our business. our employees progressed in their voluntariosbradesco.com.br). careers in the last two years. Some Bradesco’s approach to manag- of the human resources guidelines In 2019 we launched the Extraor- ing human capital is governed and practices in place at Bradesco dinary Performance Awards (PDE), by a set of principles: excellence, include: performance reviews and which recognize employees work- respect, transparent relations, competency mapping for 100% of ing in commercial functions at continual investment and de- our workforce; structured individual our branches who have exceeded velopment, knowledge sharing development plans (IDPs); training performance expectations. and recognition of human value and development supported by without discrimination. We also Unibrad, our corporate university; To support our HR processes, new seek to provide a safe and healthy an attractive compensation and technology has been deployed to work environment for all direct benefits package that is consistent provide scalability and a better and third-party employees and a with market practices; and other employee experience. Partner-

BRADESCO INTEGRATED REPORT 2019 77 ships with startups, system up- SUCCESSION PLANNING grades and the launch of Integra Our Succession Map identifies RH (a unified people management employees with potential to take platform) are some of Bradesco’s on leadership positions, or posi- HEALTH & WELL BEING initiatives with a focus on human tions involving greater complexity Bradesco believes it is essential capital. Integra RH was created to for employees pursuing specialist that employees strike a good work- perfect and integrate three fun- careers. As of 2019, a total of 2,692 life balance. Launched in 2012, the damental pillars: Bradesco Corpo- employees were mapped within the Bradesco Viva Bem (“Live Well”) rate University (Unibrad), people succession process. well-being program was strategi- management functions responsible cally repositioned in 2019 with a for performance reviews, and the EMPLOYEE PROFILES focus on disease prevention and succession process at Bradesco. At Bradesco, 50.4% of employees promoting healthy lifestyles, mind- are women and 26.4% are black. We sets and behaviors. The program also have employees across differ- comprises three pillars (“Live Well ent age brackets and from different in Balance”, “Live Well in Health” academic backgrounds, from data and “Live Well in Movement”) that scientists through psychologists to encompass all our health and user experience designers. well-being initiatives.

drugstore and a grocery store) and food service, revitalizing our including cafeterias and restaurants. The Meu Doutor Novamed specialist clinic and headquarters the dental clinic at our headquarters, which are available to both employees and their families, will Bradesco’s headquarters at Cidade de Deus, soon feature new facilities, including a testing and which is currently home to 11,000 employees imaging laboratory, a nursing room for mothers, and (11.3% of our workforce), underwent a major an ambulance available 24/7. renovation throughout 2019 that reflects Bradesco’s commitment to providing optimal working conditions and well-being in a safe, healthy and accessible workplace environment.

The newly built spaces provide greater convenience to employees and improve quality of life, making Cidade de Deus a more pleasant workplace that fosters collaboration and sharing experience.

The renovated office space now features socialization areas, services (fitness center, laundry room, express sewing services, hairdressers, a barbershop, manicure and pedicure service, a shoe repair shop, a

78 a focus on creating value learning journeys

Training and development path- provided 2,780 courses and more portal features articles, news, an ways are designed in accordance than 84% of employees met event agenda and online courses. with the Bradesco Education, the four-asset target. Brades- Portal courses are built around Training and Development Policy co recorded more than 1 million five major pillars: Careers and the and are largely administered by attendances – 206,000 in person Market, Innovation and Technolo- the Bradesco Corporate University and more than 829,000 online. Our gy, Ethics, Financial Education and (Unibrad). Unibrad has 13 campuses investments in the university were Diversity. We work to develop por- with 80 classrooms and 12 audi- a total of R$ 200 million. tal content that is attractive and toriums throughout Brazil – a new current, and regularly revisit the Unibrad campus is currently being In 2018 we launched Unibrad digi- portal pillars so they are aligned built in the district of Barra Funda, tal (Unibrad.com.br), a portal open with current issues and incorpo- São Paulo City. The training and to all Bradesco stakeholders , rate the content produced by our courses available from Unibrad are including employees’ families. The Corporate University. aligned with our strategy, address behavioral competencies and are responsive to current challenges, such as new business models that are emerging on the back of innovation and digitization. We had set a goal of having 80%

We had set a goal of having 80% our employees attend at least our employees attend at least four Unibrad learning solutions four Unibrad learning solutions throughout the year in 2019. We throughout the year in 2019.

DEVELOPMENT AT attendances and 40,589 broker BRADESCO SEGUROS GROUP attendances. Created in 2004, the University of Insurance (UniverSeg) aims to Another significant program disseminate and build knowledge is Você em Foco, which fea- and a culture of insurance among tures workshops that develop employees and brokers, preparing self-awareness and address cur- them for an increasingly compet- rent issues relating to prevention, itive, agile and innovative market. health and building more hu- UniverSeg organizes a wide range mane relationships. In the second of initiatives throughout Brazil in semester of 2019, a mindfulness support of technical and behav- program and an Ethics and Liter- ioral development. In 2019 Uni- ature program for managers were verSeg recorded 98,036 employee incorporated in the initiative.

BRADESCO INTEGRATED REPORT 2019 79 diversity and inclusion

Our commitment to diversity and inclusion is expressed in Brades- co’s Code of Ethical Conduct, our Recognition in 2019 Human Resources Management Policy and our Diversity & Inclusion ćć Present in the Bloomberg Gender-Equality Index, an index that brings Policy. We have a function dedicat- together 325 companies that create work environments supporting ed to Diversity within the Human diversity and gender equality. Resources Department, which ććNamed one of the Best Workplaces for Women by Great Place to Work. is responsible for implementing initiatives that deepen diversity ććNamed one of the Best Workplaces for People with Disabilities by within the Organization and foster Great Place to Work. respect and human dignity. The ććWon a Sim à Igualdade Racial award in the Best Ethnic and Racial Sustainability & Diversity Commit- Practices category, presented by Instituto ID_BR and Great Place to Work. tee is structured at senior management level and reports directly to ććElected one of the Best Companies for Diversity by the Business the Board of Directors. Initiative for Racial Equality.

We have well-established initiatives to address the inclusion of black people, people with disabilities and women. We are continually evolving on these issues and on LGBTI+ inclusion. Learn more below:

Employees at Bradesco's headquarters (Osasco – SP)

80 a focus on creating value WOMEN Bradesco’s workforce is currently Bradesco has an active Gender working with women managers in 50.4% women – our sales force, in Affinity Group composed of em- Bradesco’s Wholesale department. particular, is now largely composed ployees from different functions Another significant initiative in the of women. We work to support who voluntarily engage around and year was an event organized on women’s professional growth and help to develop studies, analyses November 25 (International Day to grow the presence of women in and initiatives related to gender for the Elimination of Violence leadership positions. In 2018, we equity and women’s empower- against Women) under the theme endorsed the Women's Empower- ment, helping to ensure these “It’s Our Business”. The purpose of ment Principles and joined the He topics are addressed at a strategic the event was to provide informa- For She movement, two initiatives level at Bradesco. tion about the support available promoted by UN Women and the from our internal channel, Lig Global Compact. We also joined In 2019 we launched a leader- Viva Bem, in cases of domestic the Coalition to End Violence ship program called #Mulhere- violence, including social, emo- Against Women and Girls, an initia- sPraFrente to further strengthen tional, legal and financial support, tive launched in August 2019 with women’s empowerment in the Or- provided either in person or over support from UN Women. ganization. The program is initially the phone.

The “It’s Our Business” event on November 25 (International Day for the Elimination of Violence against Women)

BRADESCO INTEGRATED REPORT 2019 81 ETHNICITY In 2019, Bradesco had 26.4% black In 2019, we celebrated the 15th an- employees. niversary of our partnership with Zumbi dos Palmares University An Ethnic-Racial Affinity Group, (FAZP), through which we promote composed of employees from dif- the inclusion of black profession- ferent functions, works to promote als at Bradesco and in the broader ethnic and racial inclusion and non- job market. In May, the month that discrimination at Bradesco. marks the Abolition of Slavery in Brazil, an event was held at We are signatories of the Business our headquarters to welcome 50 Initiative for Racial Equality, a plat- interns hired from the 15th class in form bringing together companies the Bradesco Professional Qualifi- committed to addressing ethnic cation Program. and racial issues, including initiatives to improve employability for black youth.

ACCESSIBILITY AT OUR HEADQUARTERS Bradesco’s headquarters were designed to provide accessibility for people with disabilities.

EMPLOYEES WITH DISABILITIES Through Fundação Bradesco, in Our commitment to supporting the 2010, we launched Bradesco's Ca- professional development of our pacity Building Program for Peo- team extends to all employees with ple with Disabilities, which in 2019 disabilities. We offer these employ- trained 39 professionals who have ees opportunities for professional now joined as employees. Immedi- development, and believe and ately after being hired, new em- invest in their potential. Bradesco ployees initiate a course on Banking also works to understand the diffi- Management. With support from the culties imposed by their disabilities Bradesco Foundation and Unibrad, to help address them. In 2019 the the six-month course includes prac- subject of disabilities saw even tical activities at Bradesco branches. greater focus at Bradesco as we joined The Valuable 500, a global Employees’ managers also attend movement to put the inclusion of the training and workshops. Other people with disabilities on the busi- employees can also attend training ness leadership agenda. on the subject, such as the Diversi- ty, Inclusion & Accessibility course. We also organize internal initiatives that foster discussion, and participate and sponsor external events.

82 a focus on creating value SEXUAL ORIENTATION AND GENDER IDENTITY Our commitment in this dimen- Another initiative was organized in We also offer employees the option sion was ratified in 2019 when we June – LGBTI+ Pride Month. Brades- to use their preferred name. Through joined Fórum de Empresas e Di- co’s headquarters were decorated the Lig Viva Bem channel, we provide reitos LGBTI+, a movement bring- with the colors of the rainbow, post- social, psychological, medical and ing together large corporations ers, banners and stickers celebrating legal support on different issues, around commitments to respect- our commitment to inclusion. including gender transitioning. ing and promoting human rights for LGBTI+ people in the corporate environment and in society.

We structured a Sexual Orientation and Gender Identity Affinity Group In 2019 we joined Fórum de in 2019, where volunteer employees Empresas e Direitos LGBTI+, have worked to develop solutions to increase employee awareness which supports LGBTI+ inclusion about the obstacles faced by LGB- TI+ people in society. in the corporate environment.

" I was born in an inner-city neighborhood. At 17, I started my academic life at Zumbi dos Palmares University (FAZP), but could only afford to complete the first semester. That is when I learned about the inclusion partnership between Bradesco and the university. I passed the selection process and got my first job. The opportunity provided by Bradesco, combined with my dedication and effort, enabled me to complete my undergraduate studies and expand my horizons. I was ultimately hired and today, at age 24, I am a manager with the CPA10 (ANBIMA) certification. I am now studying toward the CPA 20 certification to take the next step in my career at Bradesco."

Mary Grace Fernandes Ribeiro Account manager, Bradesco

BRADESCO INTEGRATED REPORT 2019 83 customers 96% With a strong customer focus, we Across all digital channels, the loan work to provide convenient, effi- growth was 43% in the year. of transactions cient, fast and secure service to made via digital channels all customers, offering solutions BIA (Bradesco Artificial Intelli- in 2019 that are ideally suited to each gence) has learned more by the customer’s profile and needs. Our day, and the number of interac- primary goal is to deliver the best tions with the digital assistant via possible experience – whether in the Bradesco app, WhatsApp, Goo- person or digital – and achieve the gle Assistant, Alexa (an Amazon highest level of satisfaction with service) and Apple Business Chat the Organization. rose by 205% in 2019 compared to the previous year. Bradesco has a segmented service structure staffed by professionals The following phases will allow BIA who provide customized services to learn about new subjects and to both individual and corporate to be more transactional, offering customers. We also invest sys- a pleasant, efficient and intuitive tematically in technology and user experience. innovation to create digital solutions that make customers’ routine interactions with Bradesco more user-friendly and streamlined. The results are seen in the numbers of digital checking account cus- Our goal is to provide a tomers, which rose to 17.1 million in 2019, an increase of 1.8 million superior customer experience compared with December 2018. – whether digital or physical. We ended the year with 96% of transactions completed via digital channels (internet banking, Brad- The technology also supports esco Celular, ATM machines and our employees in their duties at Fone Fácil), especially the Brad- branches. Using Bradesco Link, esco Celular app. The volume of managers can consult a wide range underwritten loans (R$) to both of products and services and pur- individual and corporate customers chase them via a corporate mobile increased by 87% in 2019. device that streamlines services.

84 a focus on creating value We designed a new branch format that enhances our advisory role.

This has made our branch activi- These developments combined ties increasingly advisory and less have helped us to offer superior operational in nature, and we have services and a superior portfolio non-checking-account customers accordingly continued a process of products and services to our in 2018 and strengthening our to restructure our network. We are more than 72 million custom- relations with this audience, in also investing in redesigning our ers, including both checking as 2019 we launched a portal (banco. branches in two formats: smaller well as non-checking account bradesco/naocorrentista/) where (satellite) branches that connect to customers who purchase prod- non-checking account customers larger (hub) branches. However, we ucts or services from Bradesco’s can purchase a range of Bradesco have maintained our presence in all extensive portfolio. After struc- products and services from the regions of Brazil. turing a dedicated department for comfort of their homes.

A NEW BRANCH MODEL

satellite/PA

satellite/PA satellite/PA branches

satellite/PA

BRADESCO INTEGRATED REPORT 2019 85 Bradesco’s first Touring PA

In 2019 Bradesco launched its first Touring debit cards, perform loan transactions (via a Business Unit (Touring PA), fully equipped and terminal), download the Bradesco app, register prepared to take the Bradesco brand every- their biometrics, and use other services. The unit where – especially to trade shows and events also has an ATM machine (without deposits and – where customers have access to high-quality withdrawals). service and an extensive portfolio of Bradesco products and services. In 2019, the Bradesco Touring PA toured a number of events in the states of São Paulo, Minas Gerais, Customers can open accounts, access Brades- Paraná, Rio Grande do Sul and Santa Catarina. An- co systems, create passwords, request credit/ other two units are planned to be launched in 2020.

86 a focus on creating value NEW HEAD OFFICES IN THE FINANCIAL CENTER approach. With a focus on relation- also about our values and art and OF SÃO PAULO ship building, content co-creation culture. Our social media content In 2019 we opened a new 14-floor and brand monitoring, we have a includes FAQs (Bradesco Explica), head office building with approx- presence on Facebook (5.1 million live podcasts about investments, imately 19,000 square meters of followers), Twitter (179,000 follow- market trends and appropriate office space, strategically locat- ers), LinkedIn (943,000 followers – products, and other varied con- ed in one of the most important on LinkedIn we also rank 12th in the tent, such as our coverage of the financial centers in São Paulo. The LinkedIn Top Companies list), Insta- annual Lollapalooza Festival. new offices will house the BBI, gram (243,000 followers), Medium corporate, international & foreign and YouTube, where we have 3.2 We also have a dedicated team of exchange, private banking, and million subscribers. In all, Bradesco social media experts who respond BRAM (Bradesco Asset Manage- has more than 9 million followers. to customer and non-customer ment) teams. queries 24 hours per day, seven On social media, we are posi- days per week. With our social IN SOCIAL MEDIA tioned as the leading bank for media outreach, conversations Bradesco’s social media function content across the community. and interactions with users are was created in 2004 and it has Using natural, plain language, we more consistent and personalized, earned recognition from the market develop content not only about making the customer experience for its pioneering and innovative our products and services, but more positive.

OUR SOCIAL MEDIA OUTREACH AT A GLANCE

More than 9 million 3.2 million social media YouTube subscribers followers With more than Present on 1.9 billion LinkedIn views (cumulative from Top Companies 2014 to 2019)

Our short animation #ShineYourWay topped 190 million views for a single video and was the most viewed brand video on YouTube in 2019.

BRADESCO INTEGRATED REPORT 2019 87 satisfaction

Bradesco uses an approach that future trends so we are able to an- places the customer at the center ticipate solutions, leverage possibili- of our decisions, making them more ties and multiply opportunities. effective and transparent. We adjust our systems, products, services and We periodically conduct customer solutions to make them increasingly and competition surveys, primar- aligned with each customer’s needs. ily using the Net Promoter Score Concurrently, primary sources help (NPS) methodology. A widely used, to capture customer feedback and proven methodology, NPS measures consumer perceptions and identify the degree to which customers are loyal to Bradesco and would recommend the Bank, our service channels, products and services. The survey is conducted at a na- We continually capture customer tional level and covers all segments in which we operate, in both Retail perceptions at each stage and Wholesale. In addition to NPS surveys, we also conduct contin- of their journey and their uous and one-off surveys using a experience with Bradesco. range of quantitative and qualita-

A customer service area at Bradesco's headquarters at Av. Faria Lima (São Paulo – SP)

88 a focus on creating value tive methodologies, such as: Brand and Communications Tracking, CHANGES IN SATISFACTION LEVELS Neuroscience, Usability, Channel Satisfaction, Product and Service Concept Testing, Mystery Shopper and Customer Communities. These surveys help us to gain a better 125% understanding of trends, habits and 120% mindsets, assess customer perceptions of our brand, and develop 100% products and services that meet their needs. Considering 2017 as the base 100, we had an evolution of 25% for 2019 in the evaluation according to the methodology.

INSIGHT FOR IMPROVEMENT 2017 2018 2019 To ensure our efficiency and per- Note: 2017 Base 100 formance indicators continually

improve, in 2019 we began developing a new model designed for continuous, mass capture of customer perceptions at each stage of the customer’s journey and experience with Bradesco. We want to take a step beyond mere metrics. By looking closely at all touch points, we can increase the level and quality of information about consumers’ needs and expectations, which is crucial in improving customer relationships and increasing satisfaction. The path to this transformation is a long journey, but we have already made significant progress together with our leadership. We want to be seen as a company that makes life easier for customers, shares in their challenges and helps them to pursue their dreams.

Digital Business Space, Shopping Tamboré (Barueri – SP)

BRADESCO INTEGRATED REPORT 2019 89 QUALITY COMMITTEE Our Quality Committee helps to translate customer perceptions and preferences into effective ac- late those insights into corrective tion to improve products, services actions to ensure greater effective- and solutions, establishing a virtu- ness and a better customer expe- ous cycle of continuous improve- rience, an essential step in building ment. This governance structure indirectly contribute to providing loyalty and evolving our products, generates engagement and com- customers with a superior experi- services and processes. mitment across all departments ence at Bradesco. and organizational levels within The Quality Committee is dedicated Bradesco. The committee’s work- Within the Quality Committee, to assessing consumer perceptions ing groups, commission and exec- feedback from surveys and com- and recommending permanent im- utive committee are composed of plaints provides insights that help provement plans, ensuring that cus- multidisciplinary representatives to identify the root causes of prob- tomers are provided with the best from all functions, who directly or lems. Working groups then trans- experience and the best journey.

QUALITY COMMITTEE GOVERNANCE

organization Executive Committee

strategic (monthly) Cross-departmental Committee

Working group tactic Wholesale (monthly) Retail operational (daily)

90 a focus on creating value suppliers

Bradesco’s scale and capillarity Prospective suppliers are screened mean our suppliers play an es- by the Procurement Department sential role in achieving our goals against registration, commercial, and results and delivering best- economic, financial, social and envi- in-class, high-quality and efficient ronmental requirements. solutions to customers. In 2019, we had 7,693 registered suppli- MONITOR AND DEVELOP ers, and 1,151 new suppliers came From the time suppliers come on onboard during the period. board as partners, we work to monitor risks and impacts and de- The different stages of our rela- velop our suppliers to help them tions with these strategic stake- build their business. An example holders are guided by recom- of this is the Bradesco Supply mendations contained in a set of Chain Social Responsibility Pro- standards, policies and programs, gram (PBRSA CS), which conducts which are accessible on bradescofornecedores.com.br and/or banco.bradesco/ri. In 2019, all the new suppliers that We also draw guidance from the Corporate Sustainability Index and came on board were screened against the Dow Jones Sustainability Index (DJSI), of which we are a constituent. social and environmental criteria.

THE SUPPLY CHAIN AT A GLANCE 7,693 companies in our current supplier procurement volumes base higher than 1,151 R$ new suppliers 19 2,696 screened in 2019 active billion contracts in 2019

BRADESCO INTEGRATED REPORT 2019 91 periodic audits on three socio-en- of implementing positive social vironmental pillars: social respon- and environmental practices, and sibility, environment, and health the importance that Bradesco & safety. Audits are conducted on attaches to sustainability. The 2019 all critical suppliers – i.e. secu- edition discussed the 17 Sustain- rity, call center, data and voice able Development Goals as part of communications, cash-in-transit, the UN’s 2030 Agenda. The meet- cards, civil works, clothing, timber, ing was attended by 189 delegates visual communications, infrastruc- from 80 suppliers. ture equipment, and information technology services and equipment suppliers. After an audit, suppliers are required to develop action plans to address identified financial analyses nonconformities and areas for improvement. In 2019, we conducted In May, we launched a financial review program for new suppliers that 250 on-site audits, and all have came on board in which we review their balance sheets for the previous been addressed by action plans. three financial years, public certificates and commercial information. The review generates a report in which the suppliers are placed into Since 2006, we have held annual different risk tiers, ranging from low risk to very high risk. For suppliers Supplier Meetings to raise supplier rated as high risk or very high risk, meetings are held with contract awareness about the importance managers and the relevant supplier to determine the reason for the risk rating. In 2019, a total of 315 financial reviews were completed.

We also conducted the first assessment of our suppliers’ financial dependence on Bradesco.

Bradesco's Annual Supplier Meeting

92 a focus on creating value regulators

with regulators exercising oversight of its activities, including SUSEP, ANS PREVIC and others. The Internal Controls and Com- In Brazil, financial institutions and pliance function helps to ensure insurers are regulated by the gov- compliance with applicable reg- ernment, and this requires us to ulations, monitors the receipt of continually interact with different and responses to correspondence regulators – the Central Bank, the from regulators, complies with Securities Commission (CVM), the periodic regulatory requests, and Brazilian Private Insurance Au- follows regulatory audits. thority (SUSEP) and the Brazilian Private Health Care Agency (ANS), among others.

To ensure integrity in these interactions, our Department of Insti- Internal standards and policies tutional Relations supports the help to ensure that we Board of Directors and the Board of Executive Officers in institu- conform to all regulations to tional relations with government agencies and private organizations which we are subject. on relevant matters.

We also have specific policies and standards designed to ensure we INTERACTION WITH TRADE Examples of trade associations we conform to all applicable laws, ASSOCIATIONS interact with include the Brazilian regulations and self-regulation Bradesco also recognizes the Bank Federation (FEBRABAN), the codes, both in Brazil and in other importance of trade association Brazilian Private Health Insurance jurisdictions. These include our membership to follow and contrib- Federation (FenaSaúde), the Na- Corporate Compliance Policy ute to important discussions with tional Federation of Private Insur- and our Regulatory Compliance the potential to create positive ance, Premium Bond and Private Standard, which are managed by impacts on the Organization, on the Pension Companies (FENASEG) the Compliance, Conduct & Ethics industries in which we operate and, and the National Confederation of Department (DCCE). more broadly, on Brazil’s social and General Insurance, Private Pension economic landscape. and Life Insurance, Health Insur- Bradesco Seguros Group has its ance and Premium Bond Compa- own framework for interactions nies (CNseg).

BRADESCO INTEGRATED REPORT 2019 93 society

credit. An example of these products is microcredit, an inclusive product for small businesses that gives entrepreneurs a boost by pro- Bradesco works to create positive viding funds to purchase goods and value for society both through the equipment or as working capital. Bradesco Foundation and across a proprietors (read more in the chapter variety of other fronts. We support On the internet, our Financial Educa- “Innovation”), and an Investment the social and economic develop- tion Portal features educational con- Portal with educational videos, ment of Brazil and its people through tent organized by subject (Organiz- simulators and information about an extensive banking network with a ing your finances; Learning to save; investment products. presence in all municipalities of Brazil EducaKids, etc.) and other interactive – including branches, service offices tools. Another available education Unibrad, our corporate university, (PAs) and banking correspondents channel is the Saber para Crescer recently launched its own web por- (Bradesco Expresso) – and through (Learning to Grow) Facebook blog, tal, providing any person connect- our various digital and remote service which has more than 500,000 fol- ed to the Internet with access to channels, providing millions of peo- lowers. In 2018 we also launched our articles, news and courses online, ple with access to financial services. MEI Portal, for people who already such as our personal finances But we recognize we can do more, are or are looking to becoming sole course. In social media, Bradesco and use our expertise in the financial services industry to promote and support education and financial inclusion. In a win-win relationship, Addressing financial education and our efforts on this front promote the bankarization of an increasing inclusion: one way we create positive number of people and support the responsible use of money and value for the broader society. credit. On our part, we deliver on our commitment to financial sustainability and social responsibility, and publishes a range of videos and sonal finances, called Na Real, with strengthen our relations with part- clips about the subject, address- videos, presentations and pod- ners, customers, future customers ing real-world issues with guest casts featuring tips, techniques, and the broader community. experts on economics. An example practical examples and real-world is a series launched in December situations, as well as spreadsheets A number of different initiatives are 2019 called “Da Sua Conta”, with and exercises. The series can be focused on education and finan- Mari Ferreira, a financial educa- accessed either via a mobile app or cial inclusion, from web portals tion expert. The series can be on a desktop computer and, after dedicated to the subject, through viewed on IGTV (Instagram) and each episode, participants can social media content and lectures will feature additional episodes in receive a certificate. The videos in with support from our employees, 2020. In 2019, Unibrad partnered this series have reached more than to Bradesco products and solutions with Saint Paul Business School to 166,600 views. Check out the series designed to facilitate access to publish a free series about per- on: www.serienareal.com.br

94 a focus on creating value Unibrad also fosters a culture quality of life, as financial inde- ployees’ families and friends. On of prudent money management pendence supports well-being and the Business Portal, a web channel and responsible credit. Alongside health. This has therefore been for insurance brokers, new features the website, the university offers selected as one of the four pillars were incorporated for manag- learning solutions and educational of longevity (finances, well-being business and interaction with programs for micro-entrepreneurs, ing, knowledge and harmonious clients, including quotes, policies public and private school students, cohabitation). The Group organizes pending renewal, policy queries residents in low-income communi- a variety of initiatives on this topic. and other features. ties, indigenous tribes and river- In November, a specialized firm side communities in the Amazon, held a workshop with employees For clients, the Insurance Group and other audiences. at our Rio de Janeiro, Curitiba and portal provides simulators for life Alphaville campuses – the work- insurance, pension plans, auto For Bradesco Seguros Group, bal- shop in Alphaville was broadcast insurance, travel insurance, and ancing finances is also essential for live to other locations and to em- other products. With these tools, customers enter their personal details and can find out which products best suit their profile. Communication channels are also available to consult specialists about the responsible use of prod- " ucts and services, financial education and responsible consumption. I moved to the Tumbira community A Policyholder’s Manual describes the rules and details of policyhold- and started making home- ers’ health insurance plans, helping baked bread, but was unable to them to use their plans responsibly. Our “Long Live Longevity” standardize bread sizes. With a portal (vivaalongevidade.com.br) also publishes a variety of articles microcredit loan from Bradesco, I on financial education. bought equipment that not only solved this problem, but also made bread-making a faster process. The next step will be to set up my bakery and install all the needed machinery.” on the web Joaquim da Costa Filho a baker in the riverside community of Our Financial Education Portal, Tumbira, on the banks of the Saber para Crescer (Learning Negro River, in the Amazon. to Grow) blog, MEI Portal and Investment Portal provide advice and financial education to all audiences.

BRADESCO INTEGRATED REPORT 2019 95 EMPLOYEES: CHAMPIONS OF FINANCIAL EDUCATION EMPLOYEES TRAINED IN FINANCIAL Our employees also take training EDUCATION COURSES TARGET on financial education. In 2019 a total of 12,371 employees received training, more than our target of training 10,000 employees in the year. As spokespersons of the Organization, they help to disseminate financial education on a daily 19,998 basis, both at work in their interaction with customers and at home with their families and friends. Employees also attend events that 12,371 10,000 we organize each year. 8,469

Since 2010 we have organized Re- 4,718 gional Bradesco Events in under- developed locations. These events are open to the general public 2016 2017 2018 2019 2020 and include workshops facilitated by the Bradesco Expresso commercial team about responsible Unibrad launched the Unibrad Se- borrowing and other products mear program in 2018, in partner- and services, and about manag- ship with the Bradesco Volunteers to another municipality the State ing personal finance. Participants Program and social enterprise of São Paulo, benefiting approx- also receive special educational Carlotas. The goal is to devel- imately 5,000 municipal school materials. Since 2015, the project op community skills in financial students. The project began with has had more than 75,600 partici- education and socio-economic training for volunteering em- pants, including 15,121 participants competencies. After reaching ployees. Volunteers then trained in 319 meetings in 2019 – our tar- 1,050 people in the Rio Pequeno public school teachers as financial get was to organize 320 events for (SP) area in the first edition, in education facilitators for third 16,000 people. 2019, the initiative was expanded grade primary school students.

in partnership

We also support external initiatives, such as the Brazilian Micro and Small Business Support Service (SEBRAE) Entrepreneurship Fair for micro and small franchise entrepreneurs. Bradesco Seguros Group is a member of the Microinsurance Networking group – which promotes insurance services among people living in socially and economically vulnerable communities – and the CNseg Inclusive Insurance Commission.

96 a focus on creating value In addition, Bradesco offers products minimal monthly investment and that generate benefits for the envi- encourage customers to use money ronment and society, such as card responsibly and plan for the future. Financial rewards programs that allow custom- Life insurance, of which there are ers to donate redeemed points to so- multiple options available, is another cial programs, and fixed and variable way of raising customer awareness inclusion income investment products incor- about the importance of financially porating environmental attributes. protecting their families against dif- ficult times. Life insurance for micro Other examples include our univer- and small businesses is also available Bradesco’s portfolio features sity accounts, which can be opened at affordable rates. Bradesco Health products and services that support without proof of income and provide offers an insurance product for financial inclusion. Some of our exclusive products and services; businesses starting at three lives. The products are exclusively for small Click Conta Bradesco, a product de- product offers an optimal combina- and medium sized businesses within signed for young customers aged up tion of availability, quality and effi- Local Productive Arrangements to 17 years to manage their monthly ciency at competitive costs. Another (APLs) – groups of businesses and allowances or other amounts while option is Losango Personal Protec- projects within a given area that receiving advice from Bradesco on tion Microinsurance, which includes specialize in the same production how to manage their finances from coverage for involuntary unemploy- activity and have some form of an early age; and sole proprietor ment, permanent disability following integration and governance. Brad- accounts, which are 100% digital injury and accidental death. The esco is the only private organization and provide exclusive benefits for Group also offers an auto insurance in the financial services industry to micro-entrepreneurs. product for personal and business participate in working groups for customers, called Seguro Auto Light, APLs as part of a Federal Govern- Bradesco Seguros Group also offers which provides all the covers and ment initiative. Our activities cover a variety of products that support benefits of conventional insurance 423 APLs, serving more than 47,000 inclusion and financial education. For at more affordable costs, and is the companies in 57 industries, in 1,543 example, a number of private pen- first Bradesco Auto/P&C product with Brazilian municipalities. Bradesco’s sion plans are available that require 100% digital paperwork. participation in the movement led to an agreement with the World Bank’s International Finance Corporation (IFC) and a syndicate of international banks to offer a financing package Bradesco is the only private exclusively for these businesses. In 2018, Bradesco raised a US$300 organization in the financial services million financing package from the industry to participate in working IFC with a maturity of three years. We also offer other products such groups for APLs as part of a Federal as stock replenishment loans and microcredit. Government initiative.

BEING WHERE THE CUSTOMER IS 1,456 service offices in towns with In addition to products, we also no other financial institutions. In provide solutions that make it another 1,307 municipalities, we are easier for people to access bank- present through 2,998 Bradesco ing and credit. Through Bradesco Expresso offices. Expresso and our service offices (PAs), we have a presence in We continue to operate our float- small or remote towns where the ing branch aboard the Voyager V, availability of banking services is which travels the Solimões River still limited. In 2019, Bradesco had between Manaus and Tabatinga,

BRADESCO INTEGRATED REPORT 2019 97 in Amazonas. The touring branch makes life easier for approxi- DISTRIBUTION OF THE BRADESCO EXPRESSO mately 250,000 people – mostly NETWORK, BY GEOGRAPHY (%) indigenous – living in remote areas in northern Brazil, who previously had to go to larger cities to with- MIDWEST draw cash and for other banking 9.17% business. Our floating branch also 39.08% helps to boost the local econo- SOUTHEAST mies of these 50 riverside communities and 11 municipalities. 16.06% SOUTH Bradesco is also present in remote communities in Amazonas within protected areas. This initiative is part of a partnership with Fundação Amazonas Sustentável (FAS) and reaches more than 4,000 people. Unibrad has implemented financial 32.56% education and entrepreneurship NORTHEAST 6.12% initiatives in 397 communities, ben- NORTH efiting 2,400 people in 2019.

When" we were offered the opportunity to implement Bradesco Expresso in our inn and restaurant, initially I thought it wouldn’t work. But the technicians were very helpful and I quickly adapted to working as a banking correspondent. Bradesco Expresso has really boosted the local economy. Shop owners no longer need to go to town to purchase goods, nor pensioners to receive their benefits. Tourists are also using the services and now spend more money within the community.” Roberto Brito a tourism entrepreneur in the riverside community of Tumbira, on the banks of the Negro River, in the Amazon.

98 a focus on creating value civic engagement and philanthropy

Bradesco also develops and sup- preservation. Below are some of ports projects that promote educa- our key areas of action and high- tion, culture, sports, health, social lights in 2019: development and environmental

Students at Bradesco Foundation - Unit II (Osasco-SP)

Bradesco More than Foundation

More than six decades ago, our be- Bradesco’s founder, Amador Aguiar, 90,000 lief in the transformational power the Bradesco Foundation was one students are benefited by of education led us to undertake a of the first private social responsi- the Bradesco Foundation commitment to Brazil. In 1956, we bility programs in Brazil and today founded the Bradesco Foundation, is the largest social and educational which provides free, high-quality program in the country, recognized education to children, teenagers globally for its consistent track and young adults in socially vul- record of results. nerable areas. The brainchild of

BRADESCO INTEGRATED REPORT 2019 99 With a mission of promoting social their children. Fundação Bradesco inclusion through education and schools are present in all states championing educational best of Brazil and the Federal District. practices, the Bradesco Foun- The Foundation works across the dation manages 40 schools that education spectrum including early help to better the lives of 90,000 childhood, primary and secondary students, of which 90% are from education as well as associate-lev- the local communities surround- el professional education. It also ing the schools. The remaining provides young adult education 10% are Bradesco employees or and initial and continuing education, with courses that support employability, income opportunities and entrepreneurship in our communities. Currently, most students are in Basic Education (46%) and Initial and Continuing Adult Education (48.9%). Among students attending Early Childhood and Primary Education, the average passing grade is 96%.

In addition to education, we also provide accommodation, food, uniforms and other assistance to students. Headquartered at the Cidade de Deus Campus in Osas- co (SP), the Bradesco Foundation employs more than 3,000 people – including 1,500 teachers.

Bradesco Foundation students - Bodoquena Unit – MS

More than #TransformationThruEducation In 2019 we ran a broadcast TV and 1,500 teachers working at the social media campaign, themed Bradesco Foundation #TransformationThruEducation, to showcase the social impact that the Bradesco Foundation has had on society.

100 a focus on creating value 2019 HIGHLIGHTS More than The total Foundation investment in 2019 was R$ 666.4 million. Part of the R$ funds was invested in infrastructure and educational technology. 72 Educational transformation was periences. The modernization project million established as a priority. In a new ap- included the dormitories, TV room proach to teaching, students, teach- and central squares. invested (out of both ers and staff use agile and modern Bradesco-provided and methodologies focused on efficiency The Foundation has also carried out tax-deducted funds) and engaging staff around improving other projects and initiatives through in projects focused the quality of education. collaborations. In 2019, we part- on education, culture, nered with Futura, a broadcast TV sports, the environment In October, a renovation of the channel, to produce a series called and other areas accommodations at the school in Futura Responde, in which teachers, Bodoquena (MS) was completed. instructors and coordinators from Throughout the renovations, stu- around Brazil submit questions to be dents were involved in discussions answered by leading researchers and about their needs and previous ex- experts in different fields.

The Bradesco Esportes Under 21 Volleyball Team

BRADESCO INTEGRATED REPORT 2019 101 LEARN MORE at fundacao.bradesco escol@ virtual courses in Business Administration, Accounting & Fi- Our Virtual School (ev.org.br) has provided a way for nance, Information Technology, Education, and Person- the Bradesco Foundation to reach out beyond our al & Professional Development. In 2019, more than 1.1 classrooms and further expand the number of people million students completed at least one of the distance benefited. The platform offers more than 90 online learning courses available from the e-learning portal.

BRADESCO FOUNDATION AT A GLANCE More than R$ 665 More than million 90,000 invested in 2019 students enrolled More than 40 schools 1.1 million throughout Brazil students attending Escol@Virtual

" I studied at the Bradesco Foundation from age 5 to 17. Throughout my time there, the school was more than a learning environment – it was a second home. I made friends that I still have today, I had teachers that encouraged me, and who I admire. I received not only education, but also values that have stuck with me for life. My greatest desire is that my daughter can also receive her education at the foundation, an institution that gave me support and made me the professional I am today at Bradesco.” Thainá Vargas Martins a former Bradesco Foundation student and currently an employee of Bradesco

102 a focus on creating value MEI Portal

A pioneering initiative, Bradesco’s MEI portal (mei. offers benefits that include a tailored service package, bradesco) offers a portfolio of financial and non-fi- business checks, factoring (cards, checks and trade nancial solutions that assist micro-entrepreneurs in bills) and targeted microcredit. On the platform, users their day-to-day business activities. In 2019, a new can also access content and services developed by our feature was launched that allows users to open their partners in the initiative. MEI accounts from the Bradesco app. A MEI account

The platform (mei. bradesco) was launched in 2018 as a provider of financial and non-financial services for sole proprietorships – including Bradesco customers and non-customers – assisting them in managing their businesses, opening sole proprietorships and developing as entrepreneurs.

" Bradesco has streamlined the process of formalizing businesses as sole proprietorships through the MEI portal, and MEI bank accounts provide a wealth of benefits and tips that help us better manage and grow the business.”

a photographer and sole proprietor client

BRADESCO INTEGRATED REPORT 2019 103 BRADESCO SPORTS AND FUNDAÇÃO AMAZONAS EDUCATION PROGRAM: SUSTENTÁVEL: With more than 30 years of activ- Bradesco is a partner of Fundação ities, this program supports the Amazonas Sustentável (FAS), development of children and youth whose mission is to protect the through women’s basketball and Atlantic Forest while improving volleyball. The program promotes quality of life for communities in health and develops talents at all the region. In a decade of activ- Fundação Bradesco schools, at mu- ities, FAS has developed an eco- nicipal sports centers, at state and system services compensation private schools, and at our Sports program that has become a global Development Center – all in Osasco benchmark for poverty reduction (SP). Around 1,500 girls aged 8 and and environmental preservation in up participate in activities annually forest areas. The program bene- as part of Training and Specialist fits around 40,000 people in 581 Programs. To be eligible to partic- riverside communities located ipate, students must be enrolled within 16 protected areas, covering in school. Participants also receive a total area the size of Portugal. civic education instruction – includ- In 10 years, the average income of ing guidance on preventing drug people living in these communities abuse and unwanted pregnancy rose by 202%, and deforestation – and students at Specialist Cen- fell by 76%. Among the programs ters are offered health insurance, currently in place are initiatives transportation, food, an allowance to create a sustainably managed and other benefits. supply chain for pirarucu, which connects fisherpeople directly to consumers to expand sales opportunities and increase earnings from the sales of fish caught. Since 2017, total of 373 families have participated in the program, with a gross income of R$ 3,066. Anoth- er entrepreneurship program has

Fundação Amazônia Sustentável receives UNESCO Award

In 2019, FAS was the first organization in South America to be presented with a UNESCO-Japan Prize on Education for % Sustainable Development. 202 Other recognitions in the year included: ććBest NGO and Best NGO - North Region awards, from Instituto increase in Doar and Fundação Getulio Vargas, average income among residents and communities ććHonorable mention in the Qualidade Amazonas awards. benefited by Fundação Amazônia Sustentável

104 a focus on creating value been implemented in the Uacari ing and choir lessons for children Sustainable Development Reserve. aged 7 to 12. In 2019, the program Six young adults participated in a benefited 400 children and teen- technical workshop administered agers at eight children’s homes and by FAS and now operate a startup three public schools. At the end that, in 2019, processed and sold 4 of the year, the children attending metric tons of andiroba oil, gener- music lessons star in the Bradesco ating revenues of R$ 96,000 that Christmas Pageant through the are cascaded to 60 almond collec- windows of the historical building tor families in the region. In the Rio Palácio Avenida, which houses our Negro Sustainable Development offices and a branch in downtown Reserve, two local agents provide Curitiba (PR). microcredit mentorship to local entrepreneurs. On the education SOS MATA ATLÂNTICA: front, FAS has been supported by Bradesco has been a partner of SOS Bradesco in building and maintain- Mata Atlântica since 1989. Among ing five Sustainability and Conser- the initiatives we have implemented vation Centers, where 410 students in partnership with the organization from 33 communities are currently is native tree planting. receiving training. Through the Amazônia Edu 2019 platform, the Foundation also organizes immer- sion courses to train leaders on Bradesco’s head office at Palácio Avenida (Curitiba – PR) sustainability. Since 2014, 111 people have attended the courses, including students from all states of Brazil and from other countries.

EDUCATION PROGRAM: Bradesco provides free after-school activities to vulnerable children and teenagers in greater Curitiba (PR). The program includes medical and psychological care, as well as musical appreciation, sing-

Children participating in Bradesco’s Education Program also star in our Christmas Pageant in Curitiba (PR).

BRADESCO INTEGRATED REPORT 2019 105 Bradesco Seguros Group new registered users. A total of 545 content assets have been published. We also sponsored the 2019 edition social initiatives of the “Long Live Longevity” seminar organized by the newspaper O Globo, which discussed the importance of quality of life in all the age Like Bradesco, it is also a practice at Rio de Janeiro, organizing weekly groups. The seminar was broadcast Bradesco Seguros Group to orga- rehearsals with 22 children. Their on the Long Live Longevity portal. nize and support programs that debut performance was held We also organized three editions of create positive value for society, during Christmas at the Insurance our Longevity Talks, a compact edi- with a focus on initiatives relating Group’s Port Corporate building. tion of the Longevity Forum, which to business areas where we see the generates debate on related topics. opportunity to provide a greater LONGEVITY PROGRAM: contribution to society. For the Bradesco Seguros Group, CULTURAL CIRCUIT longevity is about well-being and BRADESCO SEGUROS: BUSINESS-SCHOOL continuous learning; it’s about The Bradesco Seguros Cultural INTEGRATION PROJECT: having a high-quality social life, Circuit sponsors drama plays, exhi- In 2004, Bradesco Seguros Group feeling useful, and being financially bitions and dance and music perfor- launched the Business-School prepared for both the present and mances. The program is advertised Integration Project (PIEE), working the future. The Group’s “Long Live on the Bradesco Seguros Group with the Bradesco Foundation to Longevity” portal (vivaalongevidade. website and on social media. In 2019, assist children in Rio Comprido, com.br) publishes periodic content 19 performances were staged in 24 Rio de Janeiro. The program has with tips, discussions and inspiring cities, including the musicals The 850 available spots and includes stories. In 2019, the portal received Phantom of the Opera and The 70s? cultural workshops (visual arts, more than 1.1 million visits and 3,800 The Decade of the Wonderful Divine. dance, music and drama) and sports activities (soccer, swim- ming, futsal, volleyball, basketball and capoeira), as well as social and environmental initiatives. A total of 966 children were benefited throughout 2019. The program also ran a campaign to collect used oil, which was sent to a recycling company to be processed into soap. In exchange, the partner supplies cleaning products that are donated to children and adolescents at a charity – 102 children aged 6 to 15 received free products. Another environmental education initiative was a clean- up at Afonso Pena Square, in the district of Rio Comprido. Fourteen children helped to collect three bags full of litter. In 2019, PIEE supported and managed the Brad- Bradesco Seguros Headquarters (Rio de Janeiro – RJ) esco Foundation student choir in

106 a focus on creating value environmental value

As members of the financial ser- which generates a social and en- vices industry, our greatest oppor- vironmental rating. We also have tunities to create environmental products and services that help to value arise indirectly through the build a green economy. funding we can provide to our value chain, and especially our In addition, Bradesco recognizes customers. As a signatory of the the direct environmental impacts of Equator Principles, we take envi- our activities and our facilities, es- ronmental, social and governance pecially our usage of water, energy (ESG) compliance into account and paper and our greenhouse gas in underwriting loans. The loan (GHG) emissions, as well as efflu- underwriting process includes ents and waste. We have focused a review of social and environ- our efforts on two major action mental risks by a specialist team, areas – Eco-efficiency and Climate Change – and we continually manage these efforts using an integrated, Organization-wide approach.

Bradesco’s Eco-Efficiency Mas- ter Plan is our primary source of guidance on environmental management, including guidance on environmental targets, the initiatives to achieve them, and how we will track the performance. In the (2016-2018) cycle, we met five of the eight proposed targets. Water savings in the period, for example, reached 556,084 m3.

Based on lessons learned during the cycle, we set new goals for 2019, 2020 and 2021, as well as overall targets for the period. These targets have now been reorganized – some are aligned with the Paris Agreement to keep global tem- An electric bus circulating perature rise this century below 2 within Bradesco’s degrees Celsius above pre-industri- headquarters campus in Osasco – SP al levels. A number of metrics have also been reformulated.

BRADESCO INTEGRATED REPORT 2019 107 SUSTAINABILITY AT OUR HEADQUARTERS In 2019 we opened three socializa- All buildings have been designed with automated irrigation systems, tion and convenience areas at the to be environmentally sustainable. toilet flushes supplied with recy- Cidade de Deus campus, with a to- Steel structures have been used cled water from the Wastewater tal area of 3,800 m2, including sev- and the natural terrain has been Treatment Plant, solar panels used en food courts, five general service kept intact, reducing both costs and to heat water for the showers at areas and a fitness center adjoining construction waste. The new spaces the fitness center, LED lighting and the sports complex. A new medical also feature artificial wood mate- waste segregation. and dental clinic is also being built rials made from scrap wood and at our headquarters, with a total polymers, which are more durable. Air-conditioned electric buses area of 3,000 m2. Other features include a green roof are also available for employees to get around within the campus. The Cidade de Deus Campus has 10 bus stops with tactile flooring, Green roofs with automated providing accessibility to people with disabilities, as well as highly irrigation, solar panels and highly efficient LED lighting and aw- nings with UV protection films. efficient LED lighting are some of Solar panels provide power to the lighting outlets and USB sockets the sustainable features at our available at the bus stops – an automatic device activates the headquarters. lighting only after dark.

A fitness center within the sports complex at Bradesco’s headquarters in Osasco – SP

108 a focus on creating value Bradesco Seguros Group’s new headquarters

Bradesco Seguros Group also opened its new headquarters in 2019, in the port area of Rio de Janeiro. Combining state-of-the- art technology with resource efficiency, the building has its own rainwater harvesting system and other green solutions, and is eligible for LEED (Leadership in Energy and Environmental Design) certification for sustainable building design and construction.

water

Since December 2012, we have ing for local facilitators, who then de Deus campus (which created monitored monthly water consump- cascade what they have learned at new socialization and convenience tion at our facilities throughout Bra- their workplaces. spaces) and at other sites through- zil using a software-based system out the Organization, overall water managed by a specialized firm. The Bradesco’s Eco-Efficiency Master consumption increased by 10% in raw consumption data shown on Plan set a target to reduce over- the year. Our target for 2020, with the facilities’ utility bills are used to all water consumption across the the completion of the new water set specific annual targets. Organization by 2% in 2019 com- system and enhanced awareness pared with the previous year. As a initiatives for employees, is to re- More than just measuring consump- result of renovations at the Cidade duce water consumption by 2.5%. tion, we work continuously to identify potential new water efficiency projects and engage our direct and third-party employees around re- Water consumption monitoring sponsible consumption. An example of these efforts is our Efficiency throughout Brazil informs Campaign, an ongoing initiative at Bradesco that includes communica- the annual targets and water tion and education initiatives such as awareness workshops and train- efficiency projects.

BRADESCO INTEGRATED REPORT 2019 109 and guidelines on energy efficien- energy cy projects and responsible energy usage. By the end of the second plan cycle (2018-2022), we hope to reduce electricity consumption by 22% from a 2016 baseline of The tool used to monitor water 1,954,374 GJ. consumption, which was implemented at year-end 2012, also Throughout the year, we invested monitors our monthly electricity R$ 89 million in a set of optimization consumption by location. We also initiatives, such as LED lighting ret- set segmented annual targets and rofits at our branches, automation at have a regularly updated ranking our office building, and replacement of the most efficient units, which is of machinery and equipment for sent to regional officers and office more efficient models. by office building renovations in buildings to encourage energy sav- the year and new spaces opened ing initiatives. The energy manage- Our Eco-Efficiency Master Plan at our headquarters. Despite the ment process is audited in accor- set a reduction target of 3.7% for expansion in 2019, we have main- dance with ISO 14064 (greenhouse 2019 compared with a prior-year tained our target of reducing gas emission inventories) and ISO baseline. Due to weather condi- consumption by 5.6% by 2020 and 14001 (environmental management tions requiring increased use of 22% overall by 2022. To achieve systems). In addition, in 2017, we air conditioning, we recorded an this, the original initiatives in the developed an Energy Efficiency increase of 1% in electricity usage. Energy Efficiency Master Plan will Master Plan with recommendations Consumption was also affected be restructured.

We invested R$ 89 million in initiatives to optimize energy consumption in 2019.

FLEET MANAGEMENT ees looking to share a ride when commuting to and from the Cidade The second cycle of our Eco-Ef- de Deus Campus. The platform is ficiency Master Plan establishes part of the Bradesco Mobilidade targets for reducing the use of (ridesharing) program and has been Bradesco’s road and air fleets, both designed to improve employee of which directly affect the energy mobility and reduce the flow of consumption and greenhouse gas vehicles at our headquarters. With (GHG) emissions of our operations. fewer vehicles on the streets, it also helps to indirectly reduce resulting MOVE CARONAS GHG emissions. In 11 months, the Launched in February 2019, Move program reached 111,200 rideshares Caronas is a secure ridesharing and 890,000 km covered, avoiding

platform that connects employ- 160,200 kg in CO2 emission.

110 a focus on creating value paper usage emissions

invoices for expenses below a given Bradesco has compiled greenhouse threshold. Digital invoices reduce gas (GHG) emission inventories Our Eco-Efficiency Master Plan not only paper usage, but also GHG since 2006 and was the first bank, includes a commitment on reducing emissions from transporting these in Brazil, to publish its emissions paper usage for printing through- documents by post. We have also (scopes 1, 2 and 3). Two years out Bradesco – our target for 2019 reduced the number of printed later, in 2008, we were among was to reduce consumption by documents sent to customers, such the founders of the GHG Protocol 20%. We successfully reduced as credit card rules, which can now Brazil Program and began reporting paper usage by 17.6% in the period, be read online. A number of newly emissions in accordance with the reflecting a number of initiatives introduced products, such as loans protocol that same year. that have been in place for sever- and financing, now have fully digital al years and that were intensified journeys – contracts are signed dig- Our annual inventory is published throughout 2019. Examples of these itally, avoiding the need for custom- in the Public Emissions Register and initiatives include self-enveloping ers to go to one of our branches, is audited by an independent third credit card bills, eliminating the which means indirect emissions are party accredited by the Brazilian use of envelopes, and 100% digital also positively affected. Institute for Metrology, Quality and Technology (INMETRO). Good practices have ensured our conformity to ISO 14064, a standard on greenhouse emission reporting, and have earned us a Gold certification within the GHG Protocol Brazil. waste

After restructuring our Corporate Solid Waste and IT Waste Man- agement Plan, we have been able to inventory and manage most of the waste materials generated at Bradesco. With a focus on process optimization, we had set a target of reducing organic waste by 2%, and achieved a reduction of 19% in 2019. The biggest contributor to meeting the target was the implementation of waste segregation EFFLUENTS at 36 office buildings – for other office buildings, no suppliers were In 2019, the Wastewater identified that could meet our Treatment Plant and wells at the requirements. As an offset, we expanded waste segregation to 524 Cidade de Deus campus were branches in Greater São Paulo. The process is currently in progress recognized with an ECO Amcham and should be completed in the first quarter of 2020. Estadão Award.

BRADESCO INTEGRATED REPORT 2019 111 investor relations

The primary purpose of our Market MEC-sponsored meetings in Belo Relations Department (DRM) is to Horizonte (MG), Brasília (DF), Rio de communicate information, insights Janeiro (RJ) and Porto Alegre (RS). and strategies to the financial com- Like our quarterly earnings calls, munity so that Bradesco’s shares these events are transmitted via are adequately valuated at fair mar- podcast with simultaneous trans- ket value. The department is also lation. More than 1,200 people responsible for keeping our man- viewed the podcast. The follow- agement informed about market ing month, the Bradesco Seguros perceptions of our performance. Group organized Insurance Day.

Information about Bradesco is Another highlight was our first consolidated on our Investor international roadshow to present Relations website and is kept up our commitment on environmental, to date. We also organize regular social and governance (ESG) issues meetings and conference calls to and our current practices. The engage more closely with local roadshow toured Frankfurt (Ger- and international investors. In many), London (England) and Paris 2019, we organized 272 events, (France), with 25 attending analysts. with 4,016 attending investors.

In March, we held the Bradesco Analyst Day, with over 520 participants, both in person and via webcast. In November, we hosted the Bradesco Day at our headquarters, where we presented our strategy to more than 300 people. The event is supported by the Bra- zilian Association of Capital Market Analysts and Investment Profes- sionals (APIMEC). We also held API-

112 a focus on creating value An annual meeting with analysts and investors at Bradesco headquarters in Osasco – SP

THE BEST IR TEAM Contact our AND PROFESSIONAL IR department

In 2019, Institutional ćć Investor Relations website: Investor named us the No. 1 banco.bradesco/ir-en Investor Relations team and ćć[email protected] ććCustomer Service: professional in the Financial 0800 704 8383 Services/Banking category ććShareholder services: in Latin America. 0800 701 1616

BRADESCO INTEGRATED REPORT 2019 113 governance bodies AS OF 1/16/2020

BOARD OF DIRECTORS Deputy Officers – Paulo Eduardo Waack CHAIRMAN – Glaucimar Peticov – Roberto Medeiros Paula Luiz Carlos Trabuco Cappi – José Ramos Rocha Neto – Vinicius Urias Favarão – Antonio José da Barbara – Waldemar Ruggiero Júnior VICE CHAIRMAN – Edson Marcelo Moreto Carlos Alberto Rodrigues Guilherme – José Sérgio Bordin Officers – Leandro de Miranda Araujo – Albert Adell Roso MEMBERS – Roberto de Jesus Paris – Alexandre Cesar Pinheiro Quercia – Denise Aguiar Alvarez – Alexandre Panico – João Aguiar Alvarez Department Officers – André Luis Duarte de Oliveira – Milton Matsumoto – Ademir Aparecido Correa Junior – Carlos Alberto Alástico – Alexandre da Silva Glüher – André Bernardino da Cruz Filho – Carlos Henrique Villela Pedras – Josué Augusto Pancini – André Ferreira Gomes – Carlos Leibowicz – Maurício Machado de Minas – Antonio Carlos Melhado – Edmir José Domingues – Antonio Daissuke Tokuriki – Gilvandro Matos Silva – Carlos Wagner Firetti – Jeferson Ricardo Garcia Honorato BOARD OF EXECUTIVE OFFICERS – Clayton Camacho – Jefferson Ricardo Romon EXECUTIVE OFFICERS – Edilson Dias dos Reis – José Leandro Borges Chief Executive Officer – Edilson Wiggers – * Juliano Ribeiro Marcílio Octavio de Lazari Junior – Fernando Antônio Tenório – * Julio Cesar Joaquim – Fernando Freiberger – Nairo José Martinelli Vidal Júnior Executive Vice Presidents – Fernando Honorato Barbosa – Nilton Pereira dos Santos Junior – Marcelo de Araújo Noronha – José Augusto Ramalho Miranda – * Renata Geiser Mantarro – André Rodrigues Cano – José Gomes Fernandes – Roberto França – Cassiano Ricardo Scarpelli – Julio Cardoso Paixão – Romero Gomes de Albuquerque – Eurico Ramos Fabri – Klayton Tomaz dos Santos – * Rubia Becker – Layette Lamartine Azevedo Júnior – Ruy Celso Rosa Filho Managing Officers – Leandro José Diniz – Vasco Azevedo – Moacir Nachbar Junior – Manoel Guedes de Araujo Neto – Victor Rosa Marinho de Queiroz – Renato Ejnisman – Marcelo Frontini – Walkiria Schirrmeister Marchetti – Marcelo Santos Dall’Occo Regional Officers – Guilherme Muller Leal – Marcio Henrique Araujo Parizotto – Alberto do Nascimento Lemos – Rogério Pedro Câmara – Marcos Aparecido Galende – Almir Rocha – João Carlos Gomes da Silva – Marlos Francisco de Souza Araujo – Altair Luiz Guarda – Bruno D´Avila Melo Boetger – Mauricio Gomes Maciel – Altair Naumann – Oswaldo Tadeu Fernandes – Amadeu Emilio Suter Neto

114 governance bodies – André Vital Simoni Wanderley – André Rodrigues Cano – Moacir Nachbar Junior – César Cabús Berenguer Silvany – Glaucimar Peticov – Glaucimar Peticov – Deborah D’Avila Pereira Campani Santana – Clayton Camacho – Leandro de Miranda Araujo – Delvair Fidêncio de Lima – Edilson Wiggers – Oswaldo Tadeu Fernandes – Francisco Henrique França Fernandes – Nairo José Martinelli Vidal Júnior – Geraldo Dias Pacheco – Renata Geiser Mantarro COMMITTEE SUBORDINATED – João Pedro da Silva Villela – Vinicius José de Almeida Albernaz TO THE CEO – José Flávio Ferreira Clemente – José Roberto Guzela Integrated Risk Management & Capital Executive Disclosure Committee – Marcos Daniel Boll Allocation Committee – Leandro de Miranda Araujo - Coordinator – Nelson Veiga Neto – André Rodrigues Cano – Coordinator – Octavio de Lazari Junior – Osmar Sanches Biscuola – Octavio de Lazari Junior – Marcelo de Araújo Noronha – Paulo Roberto Andrade de Aguiar – Josué Augusto Pancini – André Rodrigues Cano – Rogerio Huffenbaecher – Maurício Machado de Minas – Cassiano Ricardo Scarpelli – Telma Maria dos Santos Calura – Marcelo de Araújo Noronha – Eurico Ramos Fabri – Cassiano Ricardo Scarpelli – Moacir Nachbar Junior – Eurico Ramos Fabri – Antonio José da Barbara COMMITTEES SUBORDINATED – Moacir Nachbar Junior – Carlos Wagner Firetti TO THE BOARD OF DIRECTORS – Vinicius José de Almeida Albernaz – Marcelo Santos Dall’Occo – Marlos Francisco de Souza Araujo – Marcos Aparecido Galende STATUTORY COMMITTEES – Oswaldo Tadeu Fernandes Audit Committee Risk Committee – Antonio Campanha Junior – Milton Matsumoto - Coordinator – Alexandre da Silva Glüher - Coordinator – Vinicius José de Almeida Albernaz – Paulo Roberto Simões da Cunha – Carlos Alberto Rodrigues Guilherme - Financial Expert – André Rodrigues Cano FISCAL COUNCIL – Wilson Antonio Salmeron Gutierrez – Paulo Ricardo Satyro Bianchini Succession Planning and Sitting Members – José Luis Elias Nomination Committee – Ariovaldo Pereira - Coordinator – Luiz Carlos Trabuco Cappi - Coordinator – Domingos Aparecido Maia Remuneration Committee – Carlos Alberto Rodrigues Guilherme – José Maria Soares Nunes – Luiz Carlos Trabuco Cappi - Coordinator – Milton Matsumoto – Ivanyra Maura de Medeiros Correia – Carlos Alberto Rodrigues Guilherme – Octavio de Lazari Junior – Walter Luis Bernardes Albertoni – Milton Matsumoto – André Rodrigues Cano – Fabio Augusto Iwasaki (non-management – Glaucimar Peticov Deputy Members member) – João Batista de Moraes Sustainability & Diversity Committee – Nilson Pinhal NON-STATUTORY COMMITTEES – André Rodrigues Cano - Coordinator – Renaud Roberto Teixeira – Luiz Carlos Trabuco Cappi – Genival Francisco da Silva Integrity & Ethical Conduct Committee – Carlos Alberto Rodrigues Guilherme – Reginaldo Ferreira Alexandre – Carlos Alberto Rodrigues Guilherme – Milton Matsumoto - Coordinator – Alexandre da Silva Glüher Ombudsman’s Department – Milton Matsumoto – Josué Augusto Pancini Nairo José Martinelli Vidal Júnior - Ombudsman – Alexandre da Silva Glüher – Maurício Machado de Minas – Josué Augusto Pancini – Octavio de Lazari Junior – Maurício Machado de Minas – Marcelo de Araújo Noronha – Octavio de Lazari Junior – Eurico Ramos Fabri – Cassiano Ricardo Scarpelli – Marcelo de Araújo Noronha * Currently being ratified by BACEN.

BRADESCO INTEGRATED REPORT 2019 115 limited assurance report

To the Shareholders and Board of Directors of Banco Bradesco S.A. Osasco - SP

Management’s responsibility

TThe Management of Bradesco is responsible for the preparation and adequate presentation of the evidence obtained. We conducted sustainability information included our work in accordance with the Independent Limited Assurance in the Summary Version of the In- NBC TO 3000 - Assurance Engage- Report to Banco Bradesco S.A. tegrated Report in accordance with ments Other than Audit and Review on the Sustainability Information the criteria described under section and ISAE 3000 Assurance Engage- in the Summary Version of its “Criteria for preparing the sustain- ments Other Than Audits or Re- Integrated Report ability information included in the views of Historical Financial Infor- Summary Version of the Integrated mation, issued respectively by the We have been engaged by Banco Report” and for any other informa- Brazilian Federal Accounting Board Bradesco S.A (“Bradesco”) to pre- tion contained in this report, and for and the International Auditing and pare a report on the sustainability designing, implementing and main- Assurance Standards Board. These information included in the sum- taining internal controls relevant to standards require that we plan and mary version of Bradesco Inte- the preparation and presentation perform our procedures to obtain a grated Report for the year ended of the sustainability information meaningful level of limited assur- December 31, 2019, in the form of included in the summary version ance about whether the sustain- an independent limited assurance of the Integrated Report in order ability information included in the conclusion on whether, based to ensure that the information is Summary Version of the Integrated on the work performed and the free from material misstatement, Report is adequately presented, in evidence obtained, anything has whether due to fraud or error. all material respect, as the basis for come to our attention that causes our limited assurance conclusion. us to believe that the sustainabil- Independent Auditors’ ity information contained in the Responsibility KPMG Auditores Independentes(“K- Summary Version of the Integrat- PMG”) applies Brazilian and in- ed Report has not been properly Our responsibility is to review the ternational standards on quality prepared, in all material respects, sustainability information included control and consequently maintains in accordance with the criteria in the Summary Version of Inte- a comprehensive of quality con- described in section “Criteria for grated Report prepared by Brad- trol system, including documented preparing the sustainability infor- esco and to report there on in the policies and procedures related mation included in the Summary form of an independent limited to the fulfillment of ethical and Version of the Integrated Report”. assurance conclusion based on the professional standards, in addition

116 assurance report to the applicable legal and regula- Characteristics of and Limitations tory requirements. We comply with on the Sustainability Information the comprehensive code of ethics, included in the Summary Version including detailed independence ofthe Integrated Report requirements, established based on ethical principles of integrity, Our conclusion does not include objectivity, competence and pro- aspects related to prospective in- fessional care, confidentiality and formation contained in the sustain- professional behavior. ability information included in the summary version of the Integrated The selected procedures depends Report, nor offers any guarantee on our understanding of the sustain- whether the assumptions used by ability information included in the Management provide a reasonable Summary Version of the Integrated basis for the projections present- We believe that the evidence we Report and other engagement cir- ed. Therefore, our report does not have obtained is sufficient and cumstances, and our consideration offer any type of assurance on appropriate to provide a basis for of the areas where material mis- the scope of future information our conclusion. statements are likely to arise. (such as goals, expectations and ambitions) and descriptive infor- Based on the procedures we have The procedures performed in a lim- mation that is subject to subjective performed and the evidence ob- ited assurance engagement vary in assessment. tained, nothing has come to our nature and timing and its extension attention that causes us to believe is less than a reasonable assurance Criteria for preparing the that the sustainability information engagement. Therefore, the level sustainability information included included in the Summary Version of of assurance obtained in a limited in the Summary Version of the the Integrated Report has not been assurance engagement is signifi- Integrated Report adequately presented, in all materi- cantly l smaller than the assurance al respects aspects , in accordance that would have been obtained, if a The sustainability information with the information described in reasonable assurance engagement included in the summary version of the section “Criteria for prepar- had been performed. the Integrated Report for the year ing the sustainability information ended December 31, 2019 has been included in the Summary Version of As part of this engagement, we prepared by Bradesco's Manage- the Integrated Report”. have not performed any proce- ment in accordance with the criteria dures of audit, review or verifi- described in the section “Foreword” cation of the sustainability infor- of the Summary Version of the Inte- mation contained in the Summary grated Report. Osasco, February 19, 2020 Version of the Integrated Report or of the underlying records or other Conclusion KPMG Auditores Independentes sources from which the sustain- CRC SP – 028567/F ability information contained in the Our conclusion has been formed Summary Version of the Integrated based on, and is limited to the mat- André Dala Pola Report was extracted. ters outlined in this report. Accountant CRC 1SP214007/O-2

BRADESCO INTEGRATED REPORT 2019 117 corporate information

BANCO BRADESCO S.A. Controllership Department Cidade de Deus – Osasco (SP) Corporate Sustainability Function ZIP: 06029-900 Phone: (11) 3684-8777 www.bradesco.com.br www.bradescosustentabilidade.com.br

Shareholder services CONTACT FOR MARKET ANALYSTS, To exercise rights or to obtain information INSTITUTIONAL INVESTORS AND OTHER about shares, dividends or other matters, STAKEHOLDERS: Bradesco shareholders can contact the Bradesco branches where they operate Market Relations Department their accounts. For other information, Phone: (11) 2194-0922 please contact: banco.bradesco/ir-en [email protected] Shares & Custody Department Phone: 0800 701 1616 Accountant-General’s Department [email protected] Phone: (11) 3684-3702 [email protected]

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OVERALL COORDINATION PHOTOGRAPHS Bradesco - Market Relations Department Deco Cury Bradesco photo archive PARTNER CONSULTANTS (EDITORIAL COORDINATION, GRI CONSULTING AND ILLUSTRATIONS DESIGN) Cássio Bittencourt Report Sustentabilidade AUDIT KPMG

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