Bradesco: Scaling Sustainable Finance Through Mainstream Banking in Brazil
Bradesco has played a leading role in expanding sustainable finance in Brazil by integrating ESG considerations into mainstream banking operations and capital market activities. As one of Brazil’s largest private financial institutions, the bank helped strengthen Brazil’s sustainable finance market through thematic bond issuances, ESG-related lending, climate risk management, and the integration of sustainability considerations across lending, underwriting, investment banking, and asset management activities.
The Challenge
As demand for sustainable finance increased in Brazil, banks faced the challenge of mobilizing capital at scale for climate-related and socially sustainable investments while integrating ESG considerations into traditional banking operations. Sustainable finance products remained relatively concentrated in niche market segments, and financial institutions needed credible frameworks, transparent reporting practices, and internal ESG governance mechanisms to expand sustainable lending and attract broader investor participation.
For large financial institutions such as Bradesco, the challenge was not only to issue labeled instruments, but also to operationalize sustainability across lending, risk management, investment banking, and product development while supporting Brazil’s broader sustainable development and energy transition objectives.
Strategic Approach
Bradesco adopted an early and integrated approach to sustainable finance. The bank became a signatory to the Equator Principles in 2004 and joined voluntary green protocols in 2009, positioning itself among the early adopters of ESG-related banking practices in Brazil.
In 2020, Bradesco issued a BRL 1.2 billion (approximately USD 233 million) green bond, which at the time represented the largest sustainable bond issuance by a private bank in Brazil. This issuance followed the criteria established in the Climate Finance Framework, based on leading international references.
In 2022, Bradesco introduced a Sustainable Finance Framework aligned with international standards, including ICMA Green, Social, and Sustainability Bond Principles. The framework established eligibility criteria, reporting requirements, and impact indicators for sustainable financing activities covering sectors such as renewable energy, water and sanitation, clean transport, green buildings, sustainable agriculture, health, and education.
In 2022, the bank also issued its first international sustainable bond valued at USD 500 million.Bradesco integrated ESG considerations across lending, capital markets, asset management, and risk management activities. The bank incorporated social, environmental, and climate criteria into lending, product development, supplier management, and client engagement processes, while also applying exclusion criteria for activities associated with illegal deforestation, coal-related activities, and child labor.
The bank established governance structures linking sustainability, business operations, and risk management, including board-level oversight, sustainability committees, dedicated operational teams, and integrated climate and socioenvironmental risk management processes. Bradesco expanded sustainable finance activities through ESG-labeled bonds and loans, renewable energy and sanitation financing, electric vehicle lending, and sustainable capital market transactions.
In 2024, Bradesco structured 41 ESG-labeled transactions totaling BRL 12.3 billion, including green bonds, sustainability-linked bonds, transition bonds, green loans, and sustainability-linked loans. These included 24 renewable energy transactions totaling BRL 6.5 billion and 11 sanitation operations totaling BRL 5.2 billion.
Outcomes and Impact
Bradesco’s approach contributed to the expansion and mainstreaming of sustainable finance within Brazil’s financial sector. In 2021, the bank committed to channeling BRL 250 billion toward sustainable business activities by 2025. After achieving the initial target ahead of schedule, the commitment was increased to BRL 350 billion by 2025.
The bank’s sustainable finance activities helped mobilize financing for renewable energy, clean transport, sanitation, sustainable agriculture, and other climate-related investments. Bradesco also expanded ESG integration within asset management activities, with approximately 99.9 percent of assets under management incorporating ESG analysis and screening methodologies by 2024.
By integrating sustainability considerations into lending, underwriting, investment banking, asset management, and risk management activities, Bradesco helped strengthen market confidence in sustainable finance instruments and supported the broader development of Brazil’s sustainable finance ecosystem.
The bank also helped normalize ESG financing practices within Brazil’s banking sector by demonstrating how sustainable finance can be integrated into core banking operations rather than treated as a standalone niche activity.
Lessons Learned
Bradesco’s experience demonstrates that sustainable finance can be scaled more effectively when ESG considerations are embedded into governance, risk management, lending, product development, and capital market activities rather than treated as standalone niche products. Early adoption of international sustainability standards, integrated governance structures, and alignment across business lines helped the bank mainstream sustainable finance throughout its operations.
The case also highlights how large financial institutions can influence broader market development by combining labeled instruments, ESG lending, climate risk management, and sustainable investment practices to mobilize larger volumes of private capital toward climate-related and sustainable development objectives.
Key Links/Documents
Bradesco Sustainable Finance Framework