sust_ capI,II_eng - Banif Investment Bank

Transcrição

THE POWER
OF HUMANITY
SUSTAINABILITY
REPORT
BANIF FINANCIAL GROUP
SUSTAINABILITY
REPORT ´08
THE
POWER OF
HUMANITY
Of all the forces to which we are subject, – the
forces of nature, and the forces of our own
economic and social evolution – it is in the power
of humankind that we believe most. It is in the
power of our own projects and enterprise, in
intelligence, in our values and in our actions
that we reveal, in each one of us, the ability to
make a difference and our capacity, all together,
to change the course of the world. Sustainability
has since the outset lain at the heart of our
business success and can only be fully achieved
with the involvement of us all.
WE BELIEVE
IN THE POWER OF HUMANITY
FINANCIAL
GROUP
FINANCIAL
GROUP
Contents
Contents
04
04
06
Opening Messages
Message from the Chairman of the Banif Financial Group
Messages from the Sustainability Steering Group
08
10
10
10
11
11
01 The Banif Financial Group
1.1
About us
1.2
Our companies
1.3
Banif around the world
1.4
Our first 20 years
1.5
Our new image
12
14
16
17
19
20
25
26
02 Sustainability in our business
2.1
Sustainability strategy and governance strategy
2.2
Interaction with stakeholders
2.3
Code of conduct
2.4
Quality
2.5
Responsible management
2.6
Distribution of wealth
2.7
Our commitments
28
30
34
03 Development of human resources
3.1
Overview
3.2
Training
36
38
39
40
41
04 Environmental commitment
4.1
Environmental policy
4.2
Financial products
4.3
Climate responsibility in the Banif Financial Group
4.4
Environmental performance
44
46
47
05 Engagement with society
5.1
Financial products
5.2
Sharing with the community
52
54
55
57
62
06 Annexes
Methodological notes
Environmental note on the production of this report
Global Reporting Initiative: list of contents
Glossary
04
OPENING MESSAGES
Message from the Chairman of the Banif Financial Group
The financial year of 2008 was marked by the complexity of the
current economic situation worldwide, which has necessarily
affected Portugal, with a direct impact on the business
operations of companies and financial institutions. It was only
natural that the Banif Financial Group should also have felt the
effect of this international situation.
But not all the news has been bad, and the Group is pleased to
report positive growth in a number of structural indicators.
Although the current financial situation appears to demand
short term responses, we have pressed ahead with out
sustainability strategy and believe that the work we have
undertaken in 2008 will be fundamental to the long term success
of our business activities and our engagement with society.
One of the main achievements of the year was the new Code
of Conduct for the Banif Financial Group, setting out the basic
guidelines for ethical and transparent conduct in business
dealings. This code, which draws on the Group’s core value –
integrity – summarizes the principles and standards of behaviour
with which our employees are required to act. We regard the
content of this code of ethics as breaking new ground in the
financial sector and as making a valuable contribution to pursuit
of the Group’s sustainability strategy. Also in 2008, both Banif,
SA and Banif - Banco de Investimento, SA (BBI) published their
Conflict of Interest Policies, designed to promote transparency
in all our operations at all levels of the hierarchy. These steps
have allowed us to comply with some of then legal requirements
deriving from the new European directives for the financial
sector and are part of our sustainability strategy as defined in
2007.
Our work satisfaction survey in 2008 recorded the highest ever
level of responses, revealing a favourable degree of satisfaction
as regards the relationship between employees and the company,
and showing an improvement in relation to the 2006 survey.
We are therefore confident that we have a strong and motivated
team, dedicated to its work.
In the investment banking field, we continued in 2008 to market
two special investment funds, the Luso Carbon Fund and the
New Energy Fund. In retail banking we have created credit
facilities for acquisition of environmentally friendly systems and
solutions, such as equipment for the use of renewable energy.
In the insurance sector, we have cut premiums for hybrid
vehicles. We have also conducted an environmental risk analysis
of our existing loans portfolio, and organized specific training
in this field for key staff in this process.
The Group’s environmental policy was therefore not only
developed in 2008, but also implemented through improved
monitoring of our environmental data, adoption of eco-efficient
practices and the offering of a number of financial products
which promote environmental balance.
With regard to the social environment, we have continued to
engage with the communities in which we do business,
supporting local initiatives in several areas, especially in the
fields of sport, education and the arts. This has included the
“Make a child smile” campaign run by Açoreana which, as part
of its integrated training plan, has encouraged all its employees
to involve themselves in helping children in need, as a means of
building closer ties and teamwork skills. We intend to move
ahead with this policy of engagement with a thoughtful and
consistent approach, so that the Group’s engagement with its
local communities is more than just writing a cheque.
It is at more difficult times, like those through which we are
currently living, that a strong but flexible culture is fundamental
for our success. Such strength is increasingly associated with
integrity. We therefore believe that our culture of integrity,
reflected in efforts geared primarily to medium and long term
interests, will make it possible to safeguard the interests of
generations to come.
We believe that this is the way forward, and that all these
additional efforts will be rewarded by the additional value they
generate, to be felt by all our stakeholders.
Horácio da Silva Roque
Chairman of the Board of Directors
FINANCIAL
GROUP
“We believe that this is the
way forward, and that all
these additional efforts will
be rewarded by the
additional value they
generate, to be felt by all our
stakeholders.”
05
06
OPENING MESSAGES
Messages from the Sustainability Steering Group
The sustainability and social responsibility of companies are concepts
that have taken on increasing importance in world markets in recent
years. To manage a company sustainably means incorporating social,
environmental and governance issues into the company’s vision,
mission, policies and procedures, as well as in the products and
services it provides on the market. It is now acknowledged by the
international markets that practices of this type are crucial for good
business management.
In keeping with our commitment to transparency and accountability
on environmental and social issues, we are delighted to publish once
again our annual sustainability report, which details our sustainability
strategy and the work carried out in this field.
It is with great satisfaction that I am able to report on the work
carried out by TF 1 – Codes of Conduct and Business Principles and
TF 4 – Strategic Giving.
TF 1 has successfully completed the task of incorporating
sustainability principles into the Group’s Code of Conduct. And TF 4
is already working on establishing partnerships for active involvement
in social projects, to complement the donations which have always
been a feature of our social policy.
In 2009, we are confident of carrying these aims even further.
Dr. Marques dos Santos
Vice-Chairman of the Board of Directors of Banif SGPS,
SA, Chairman of the Executive Board and Vice-Chairman
of the Board of Directors of Banif, SA and member of
the Sustainability Steering Group.
FINANCIAL
GROUP
07
Implementation of an environmental policy and the offering of financial
products which promote good practice with regard to environmental
and social issues are essential aspects of corporate social responsibility.
Through the work of TF 3 – Environmental Policy, the Banif Financial
Group has defined an environmental policy to be applied across the
entire Group, covering its main operational areas (with direct and
indirect impacts). In 2009 we will continue to implement eco-efficiency
measures of the type already well established in our companies.
In the field of financial products, TF 6 – Environmental and Social
Products has promoted pioneering and mould-breaking initiatives,
with products such as the Luso Carbon Fund and the New Energy
Fund. We also have other products aimed at the retail banking sector
and designed to encourage environmentally friendly behaviour and
to advance the cause of social inclusiveness.
This has been our vision of the future, and we have been striving
hard to set new standards in this field.
Dr. Raúl Marques
Director of BBI
and member of the
Sustainability Steering
Group
Environmental and social issues increasingly figure in boardroom
discussions and on corporate agendas. The sustainability of a financial
institution depends on involving all its staff in a common mission
and on including environmental and social criteria in its risk
assessment procedures.
TF 2 – Human Resources Policy has a programme for empowering
staff, through specific training to incorporate sustainability issues
into their work. The commitment to training and the well-being of
our workforce is already firmly entrenched in all our companies.
At the same time, TF 5 – Environmental and Social Risks has been
carrying out the highly important task of analyzing the environmental
risk of the Group’s lending and investment portfolio, with a view to
introducing environmental criteria in risk assessment.
We are therefore confident that risk management is being improved,
at the same time as we are contributing to sustainable development.
Dr. Carlos Brites
Director of Açoreana and
member of the
Sustainability Steering
Group
POWER TO
TAKE THE
PRESENT AND
MAKE THE
FUTURE
01
THE BANIF
FINANCIAL GROUP
Sustainability is a core value in the Banif Financial
Group, but it is the people who work in it who
take the challenge of sustainability and turn it
into reality. Education and inspiration,
encouraging the group spirit, sharing experiences
and social commitment: being sustainable means
caring today about tomorrow.
10
THE BANIF FINANCIAL GROUP
01. The Banif Financial Group
1.1 ABOUT US
The organizational structure supporting the provisions of this
wide range of products and services is based on a central holding
The Banif Financial Group celebrated its 20th anniversary in
2008 and we are especially proud to report on the gathering
momentum of the process of expansion and growth which has
been the watchword of the Banif project, and the consolidation
of the Group’s operations in the Portuguese and international
markets.
In a particularly difficult economic environment, exacerbated
by the instability of global markets, with a particular impact on
the financial sector, we have strengthened our capacity to
create value for shareholders, customers and other stakeholders.
company, Banif SGPS, SA, which divides its different business
segments between two sub-holdings, Banif Comercial SGPS,
SA and Banif Investimentos SGPS, SA, controlling companies
operating in specific areas of business.
Banif Comercial SGPS, SA controls the companies geared to commercial
banking and specialist credit, most notably Banif - Banco Internacional
do Funchal, SA, Banif - Banco Internacional do Funchal (Brasil), SA,
Banif Go and Banif Rent.
Banco Banif e Comercial dos Açores, SA (referred to below as
We have developed a growing sense of motivation and
responsibility to do more and to be more effective, and we have
risen to the expectations of all those who have, in one way or
other, put their trust in the Banif Financial Group.
The Group has achieved growth in its main financial indicators,
in the number of points of sale, in its workforce, market share,
the diversity of its product range and its geographical coverage,
whilst successfully raising its institutional profile.
Hand in hand with this dynamic of growth, the sustainability
strategy adopted seeks to enable the Group to engage with
its economic, social and cultural environment in Portugal and
to deal with the new challenges facing society. This stance
means fostering a culture of integrity, in the form of a new
vision of risk management, provision of financial products and
services which further good environmental, social and economic
practice, and a policy of sponsorship and corporate giving
geared to supporting a variety of social, cultural and sporting
initiatives.
1.2 OUR COMPANIES
The Banif Financial Group currently consists of a set of companies
with a high level of specialization in the different areas of
commercial and investment banking, insurance and specialist
credit, offering innovative solutions for its customers’ financial
needs, in Portugal and abroad.
Banif Açores), which formerly belonged to this sub-holding, was
merged at the end of the year into Banif, SA. By combining their
forces in a single financial structure, these banks will now be
able to upscale their capacity to provide flexible and dynamic
banking services to the customers of both institutions.
For its part, Banif Investimentos SGPS, SA controls companies
operating in international banking, investment banking and asset
management. Foremost amongst these are currently Banif Banco de Investimento, SA, Banif - Banco de Investimento (Brasil),
SA, Banif Gestão de Activos - Sociedade Gestora de Fundos de
Investimento Mobiliário, SA, Banif Açor Pensões - Sociedade Gestora
de Fundos de Pensões, SA, Banif Capital - Sociedade de Capital de
Risco, SA and Gamma - Sociedade de Titularização de Créditos, SA.
Banif SGPS, SA also has a financial holding in Companhia de
Seguros Açoreana, SA (referred to below as Açoreana) which
carries on all our insurance business.
1.3 BANIF AROUND THE WORLD
The Banif Financial Group owns and coordinates 48 companies
in 14 different countries across 4 continents, with more than
600 points of sale and a workforce currently numbering 4,600
employees dedicated to assuring value for our 1.2 million
customers.
FINANCIAL
GROUP
1.5 OUR NEW IMAGE
The mythical figure of the Centaur has been adopted as the new
symbol of the Banif brand, twinned with our new colour, indigo,
transmitting the concepts of strength and sobriety so as to
underline our new values. The signature “The power of believing”
reflects the Group’s 20 years of operations and our positioning in
the market.
In Portugal the Group has 449 points of sale, of which 70 are
located in the Azores and 47 in Madeira. In 2008, it opened a
further 51 branches of Banif, SA, in line with the Bank’s targets
for increasing banking business and creating jobs.
The Banif Financial Group has 173 points of sale outside
Portugal, with the main focus of its international operations
in Brazil and the United States.
The symbol transmits the idea of fusion between strength and
intelligence, movement, audacity, triumph and conquest, and the
colour indigo represents the balance of forces sustaining the values
of tranquillity, knowledge, idealism, humanism and also the capacity
for sacrifice and resistance. The colour sets the Group apart from
its competitors and is easily recognizable.
The Group’s companies have radically overhauled their points of
sale, both inside and out, taking special care to improve energy
efficiency.
Thanks to the advertising campaigns associated with the new
image, Banif, SA increased its spontaneous notoriety from less than
1% to 7%, meaning that public recognition of our brand has improved.
TOTAL ADVERTISING RECALL
1.4 OUR FIRST 20 YEARS
Taking advantage of the celebrations for the Group’s 20 th
anniversary, we surprised the market on 15 January with a
new corporate image for all Group companies. On the launch
day, Funchal was the venue for the first in a series of 10
conferences, with a distinguished Spanish speaker, and a
concert by the Orquestra Clássica da Madeira and a line-up of
leading Portuguese musicians.
Over the course of the year, the series of conferences took in
the main districts of the country, offering the opportunity for
fostering closer ties between local authorities, the Bank’s
customers and its senior management. Notable speakers were
chosen to present their ideas on current topics of social and
economic importance. Efforts were made to reflect different
tendencies and concerns in the contemporary world, dealing
with a variety of themes and with a special emphasis on
climate change.
Banif also marked its anniversary by inviting European bankers
to meet in Funchal, for the annual meeting of the Groupement
Européen de Banques (GEB), which it chaired, with representatives
of the twelve banks making up the group.
The financial year of 2008 was also marked by other events
designed to commemorate the 20th anniversary, including the
3 rd Banif Painting Prize, which seeks to encourage artistic
creativity in this field.
December 2008: 22%
January 2008: 7%
Standard & Poor’s (S&P), one of the worlds leading rating
agencies, has for the second year running included the
Banif Financial Group in its “S&P Global Challengers Class”,
making Banif the only financial group in the Iberian
Peninsula to win a place amongst the leaders of the
future.
RATINGS OF BANIF, SA IN 2008
The Bank’s current ratings reflect the Group’s soundness in
the current economic environment.
Moody’s
Fitch Ratings
Long
Term
Short
Term
Outlook
A2
P-1
Stable
BBB+
F2
Stable
11
POWER
DEDICATED TO
ALL WHO
BELIEVE
02
SUSTAINABILITY
IN OUR
BUSINESS
It is the people, the employees and the clients,
who everyday believe in the importance of their
efforts and dedication, who make sustainability
a strategic and central aspiration, shared by
all the companies in the Banif Financial Group.
14
SUSTAINABILITY IN OUR BUSINESS
02. Sustainability in our business
2.1 SUSTAINABILITY STRATEGY AND GOVERNANCE STRATEGY
The Group’s sustainability strategy seeks to incorporate
For the Banif Financial Group, sustainability means incorporating
environmental, social and governance issues into its core business
and into its dealings with the community.
With this in view, the Group is actively committed to:
•
•
•
Standards of conduct which seek to go further than the legal
requirements;
Creating financial products which promote environmental
and social wellbeing;
Identification of potential environmental and social risks in
particular business areas, gathering appropriate information
and helping its companies to mitigate these risks;
sustainability into its core business, through product
design, risk analysis and transparency of information.
•
Minimizing the environmental impact of our consumption of
raw materials;
•
Employment involvement in community work;
•
Investment in society through strategic giving.
In order to put the strategy defined in 2007 into operation,
we have developed a governance model involving participation
by the main companies in the Group’s principal business
areas.
GOVERNANCE MODEL FOR THE SUSTAINABILITY OF THE BANIF FINANCIAL GROUP
Board of Directors of Banif SGPS, SA
Sustainability Steering Group
Sustainability Coordination and Management
Task Force 1
Codes of Conduct
and Business
Principles
Task Force 2
Human
Resources Policy
Task Force 3
Environmental
Policy
Task Force 4
Strategic
Giving
Task Force 5
Environmental
and Social Risks
Task Force 6
Environmental
and
Social Products
FINANCIAL
GROUP
The Board of Directors of Banif SGPS, SA has ultimate responsibility for sustainability issues.
The Task Forces comprise top and middle managers, who
propose measures they consider relevant for the Group.
After approval of these measures by the Steering Group
and by the Board of Directors of Banif SGPS, SA, the task
forces are also responsible for implementing them.
The Sustainability Steering Group, comprising 3 directors,
including the Vice-Chairman of Banif SGPS, SA, has the
following main aims:
•
•
•
•
•
•
•
•
To assure that sustainability is implemented in the
Group and that it is effectively placed high on the
agenda;
To strengthen Group culture by fostering the values
of sustainability;
To assure that the work of the different task forces
is carried out in a harmonious and coherent manner;
To monitor progress and validate compliance with the
task forces’ objectives;
To promote synergies between different Group
companies in order to boost visibility of the Group’s
brand;
To develop an integrated range of (sustainable)
products;
To give an opportunity for implementation of definitive
ideas arising in multidisciplinary discussions between
the different Group companies;
To provide employees with the resources for achieving
their objectives.
Sustainability Management is the responsibility of the
sustainability manager, who puts the sustainability
strategy into practice on a daily basis, and is included
within the Group’s Corporate Image Function. This
manager is wholly dedicated to sustainability issues and
his mission is to implement all the measures needed in
order to assure that the different task forces can carry
out the activities set out in the action plans. The
Sustainability Manager therefore has a facilitating role,
gathering and disseminating information and providing
support for the task forces.
In the governance model adopted by Banif SGPS, SA, sustainability
issues are assigned to the Corporate Image Division. This division
is responsible for coordinating and putting sustainability
management into practice within the organization, assisting
the work of the task forces and acting as facilitator between
the task forces and the directors in the Sustainability Steering
Group.
determined. Likewise, no formal assessment procedures are in place
for the highest level of management in respect of specific
environmental and social issues. However, it is fair to say, as may be
seen from a reading of this report, that environmental and social
issues are indirectly included in these assessments, insofar as these
issues have an increasing influence over the performance of
organizations.
There is a concern to align the remuneration of the directors
with ultimate responsibility for governance with the performance
of the Group companies in which they exercise management
responsibilities. The fact that the sustainability governance model
is relatively recent means that the senior managers of the Banif
Financial Group and its companies are not remunerated in line
with specific environmental or social issues, and their specific
powers and qualifications in these areas have not been formally
The Board of Directors of Banif SGPS, SA has not constituted an
Executive Board and consequently all seven directors are executive.
Issues relating to conflicts of interest are regulated by the Code of
Conduct approved in 2008, which will be disseminated to all hierarchical
levels during 2009. The 2008 Corporate Governance Report of Banif
SGPS, SA explores in detail the main questions relating to good
governance of Group companies.
BANIF FINANCIAL GROUP TASK FORCES – MAIN ACTIVITIES
Codes of Conduct and Business Principles
Human Policy
• Incorporation of sustainability into the Group’s Code of Conduct
• Design of a wide-ranging training plan in sustainability for employees
• Creation of procedures and measures to bolster the values of
• Preparation of a corporate voluntary work programme in which 7h/year
the Code of Conduct and responsible practices for suppliers
(the equivalent of 1 working day) is made available per employee of
Banif SA, so that staff can take part in voluntary work
15
16
BANIF FINANCIAL GROUP TASK FORCES – MAIN ACTIVITIES (cont.)
Environmental Policy
Strategic Giving
• Development and approval of an Environmental Policy for the
Group
• Implementation of the Environmental Policy
• Planning a broadly based project for collection of WEEE
• Periodic monitoring of environmental data
• Definition of the strategic areas for implementing distinctive
projects which generate value for society
• Contacts and meetings with a view to establishing partnerships
Environmental and Social Risks
Environmental and Social Products
• Analysis of the environmental and social risk associated with the
Group’s loans portfolio, pinpointing sectors with higher risks
• Specific training in environmental risks and the respective current
and future legal frameworks which may affect the environmental
performance of corporate clients
• Identification of topics which will allow environmental and social
issues to be included in analysis of the risk presented by corporate
clients
• Continued development and monitoring of the Luso Carbon Fund
and New Energy Fund
• Creation of two new credit facilities designed to promote correct
environmental behaviour: Crédito Pessoal Mais Ambiente and Crédito
Investimento Mais Ambiente
• Financial literacy projects related to the Nova Geração account,
using the cartoon character Ruca
• Preferential insurance terms for hybrid vehicles
2.2 INTERACTION WITH STAKEHOLDERS
At the Banif Financial Group we have various means of interaction
with our main stakeholders. In view of the strategic importance
of some of these stakeholders in the continuity and growth of
our business, it is with these groups that we have developed the
most visible and constant relationship.
The Group is involved in a number of organizations, at home and
abroad, as member, elected officer or member of working parties.
In certain cases, this involvement presupposes that we sign up
to the organization’s code of conduct.
Main Stakeholders
Main channels for dialogue
Employees
Newsletters, magazines, internet and intranet, satisfaction surveys, training, Code of Conduct
and internal policies
Customers
Points of sale, customer complaints office, customer support (telephone/email), internet/Banif@st,
letters, Vantagem magazine, events
Shareholders/Investors
Annual report and accounts, Sustainability report, general meetings, investor relations office
Communities
Partnerships, aid, donations and events
Regulatory Authorities
Annual report and accounts, Sustainability report, communications with the regulator and with
the market
Suppliers
Internet, email and telephone
Media
Articles in certain media publications
FINANCIAL
GROUP
The Banif Financial Group’s main stakeholders have been identified
through the work of the different task forces made up of Group
company employees.
The Group has visibly built up its relationship with its stakeholders,
in particular through participation in events and competitions
and by establishing contacts and partnerships. The Group is a
member of BCSD Portugal – Business Council for Sustainable
Development, and has taken part in the working parties for
“Development” and “Sustainability in the Financial Sector” (which
it sponsors). These task forces seek to encourage and disseminate
good sustainability practice amongst the companies taking part
and society at large.
In the course of 2008, a specific channel was created for dialogue
with stakeholders ([email protected]) and communication
efforts were made internally and externally to disseminate the
action taken and to raise the awareness of various groups. In
addition to publication of the Sustainability Report, this involved
responses to surveys and internal and external publications.
These efforts have had evidently positive results, as may be seen
in the satisfaction assessment of Banif customers in relation to
sustainability practices (69.7% said they were satisfied, of which
48% said they were very satisfied) and in the Group’s classification
by Heindrick & Struggles as one of the best players in the areas
of social and environmental reporting, employment practices,
development of human capital, management of customer and
investor relations, and as being above the national average in
these areas.
2.3 CODE OF CONDUCT
In 2008 the Banif Group formalized its basic guidelines for ethical
and transparent conduct in its new Code of Conduct. The new
code is based on our core value: integrity, understood as
comprising three essential pillars: personal integrity, relational
integrity and institutional integrity.
Personal integrity is related to the requirement made of all
employees, setting high standards of ethics and competence,
reflecting their training and education as professionals and
citizens. Relational integrity concerns dealings with customers,
between employees and stakeholders in general. Customers
should always come first, and enjoy first rate services. All
employees should be treated with respect, sharing their successes
and accepting responsibility for their mistakes. Dealings with
stakeholders should be guided by objective criteria of quality,
profitability, availability and independence. Finally, the culture of
integrity should be reflected in the primacy assigned to the
medium and long term interests of our organization, thereby
safeguarding the interests of generations to come.
ORGANIZATIONS IN WHICH THE BANIF FINANCIAL
GROUP IS REPRESENTED
Portuguese organizations
Bank of Portugal (BP)
Securities Market Commission (CMVM)
Portuguese Association of Banks (APB)
Portuguese Insurance Institute (ISP)
Portuguese Association of Insurers (APS)
Portuguese Association of Financial Analysts (APAF)
Portuguese Association of Investment, Pension
and Wealth Funds (APFIPP)
Business Council for Sustainable Development
(BCSD Portugal)
Civil Institute for Advertising Self-Regulation (ICAP)
Portuguese Association of Marketing Professionals (APPM)
FOREX-ACI - Financial Markets Association - Portugal
International organizations
International Forfaiting Association (IFA )
Groupement Européen de Banques (GEB)
European Financial Management & Marketing Association (EFMA)
Chambers of Commerce
Portuguese-Brazilian Chamber of Commerce and Industry
Portuguese-German Chamber of Commerce and Industry
Portuguese-Japanese Chamber of Commerce and Industry
Portuguese-Namibian Chamber of Commerce and Industry
Portuguese-South African Chamber of Commerce and Industry
Portuguese-Venezuelan Chamber of Commerce and Industry
Portuguese-Ukrainian Chamber of Commerce and Industry
Portuguese-Moroccan Chamber of Commerce and Industry
Lisbon Commercial Association/Portuguese Chamber of Commerce and
Industry
American Chamber of Commerce in Portugal
British-Portuguese Chamber of Commerce
The Code of Conduct is a tool which allows us to forge
a stronger culture of integrity in our organization. It
summarizes the principles and standards of behaviour
which should guide the conduct of our employees,
setting the framework for their daily work.
Breaking new ground in the financial sector, the new
Code of Conduct is an important tool in developing the
Group’s sustainability strategy.
17
Reporting of business concerns
Personal
Conflicts of interests
Protection of the assets of the Banif Financial Group
Outside business activities
Business opportunities
Commercial transactions with related persons
Personal transactions
Electronic communications
Intellectual property and confidential information
Use of the name, premises and relationships of the Banif Financial
Group
Relational
Abusive use of privileged information
Personal investments in shares in the Banif Financial Group and other shares
Creation and management of records
Research
Contributions to social and environmental work
Political activities and contributions
Integrity
Customer relations
Diligence in customer relations
Fair, respectful, discreet and non-discriminatory treatment of customers
Duty of professional secrecy
Compliance with competition law
Staff relations
Freedom of speech and opinion
Protection of privacy
Protection of personal data
Physical and moral integrity
Equality, non-discrimination and harassment
Fair recruitment practices, diversity and training
Supplier relations
Gifts and entertainment
Institutional
18
Acceptance of gifts and entertainment
Offering of gifts and entertainment
Expertise, quality and efficiency
Information barriers
Business continuity
Financial and fiscal reports
Know your customers
Prevention of money laundering
Public and media appearances
Sustainability
Banif, SA has also approved its own Code of Conduct. Dissemination
is currently being prepared, together with programmes for induction
training and e-learning.
Responsible financing
In the field of lending, Banif, SA has sought to develop its business
along responsible lines. This means that in any lending relationship
to be established with customers, the customer’s risk profile must
first be assessed in order to determine his or her capacity to keep
to repayment plans in a regular manner, without being placed in a
situation of financial difficulty.
This is called responsible financing, and is incumbent on the Bank
and its employees. The flipside of this responsibility is the duty of
customers to provide truthful information on their economic situation,
in other words, the duty of customers to use credit in a responsible
manner – what is called responsible borrowing.
FINANCIAL
GROUP
2.4 QUALITY
Banif, SA completed two further quality certification projects
in 2008. At Açoreana, a quality management system has also
been implemented for motor insurance and life insurance,
dealing with the entire process from product design and
marketing to underwriting and claims management.
Set up in October 2000, the Customer Complaints Office has
the mission of helping to improve the quality of services
provided by Banif, SA to its customers, and consequently to
improving the Bank’s image with its customers and the public.
In 2008, the offices examined 1,573 cases of which 44% were
deemed to be “groundless”. These cases relate above all to
complaints and suggestions made to the Bank, and the
remainder relate to issues originating with the Bank of Portugal
or the official complaints book. The main questions raised by
customers have to do with home loans, the Banif@st service
and accounts and cards.
At the end of 2008, the Customer Complaints Office successfully
renewed its quality certification, lending firm credibility to its
role as provider of a prime channel of communication with
our customers.
Excellence in customer service
•
Certification of the quality management system
for personal loans and service at branches (to
be added to certification previously obtained for
e-banking, telephone banking, the customer
complaints office and home loans).
•
Certification of quality management for motor
and life insurance at Açoriana, ending the year
with more than 80% of its operations certified.
For 2009, Açoreana plans to obtain certification
for all its business activities, which will make it
the first insurance company operating in multiple
areas to achieve this level of certification in
Portugal.
•
1st place in the general ranking for mystery calls
research.
•
4th best Bank operating in Portugal in terms of
service quality, in mystery shopping research.
19
Satisfaction surveys of Banif Financial Group customers
constitute a valuable source of information for improving the
quality of our services. In the 2008 survey, we found that
professionalism and service quality are values strongly
associated with the Banif brand.
BRAND VALUES PERCEIVED
BY CUSTOMERS
Professionalism and service
quality
8.80
Personalization of customer
relations
8.73
Reliability and trust
8.53
Efficiency and speed
8.17
Innovation
7.45
Source: Customer Satisfaction Survey, 2008
Another example of our commitment to providing a quality service
is our subscription to the Code of Conduct of the Civil Institute
of Advertising Self-Regulation (ICAP). This code sets down
guidelines on ethics in advertising activities and communication.
By signing up to this code and complying with the guidelines in
full, our intention is to adopt and be seen to adopt a standard of
accountable, honest and transparent conduct.
Banif, SA has also adopted the Voluntary Code of Conduct on
Home Loans, in line with the recommendations of the European
Commission and the Bank of Portugal. This code deals with noncontractual information which should be provided to consumers
in relation to home loans, and is intended primarily to increase
transparency and improve the quality of services provided for
customers.
The Banif, SA website has held its own amongst the
top ten Portuguese sites in terms of performance and
availability. The service quality survey is conducted in
Portugal by Marketware, and the findings are published
weekly in the form of an index – the KPBI30.
20
At the Banif Financial Group we have sought to incorporate our
values of accountability, ethics and professionalism into all
communications with different stakeholders. In 2007 we published
our first sustainability report and we are now honouring our
commitment to issue this report on an annual basis. The sense
of responsibility we accept in our communication policy also
encompasses environmental values, in particular as regards the
materials and forms of communication produced. Examples of
this are the provision of digital communication products which
help to cut the amount of paper and ink used in printing and
the production of carbon neutral publications and promotional
materials, such as the Group’s annual report and sustainability
reports, and the 2009 diaries.
The bank has produced desk diaries which seek to serve an
educational function. For 2009, the theme of the calendar is
sustainability and the diary suggests how users can adapt their
habits and attitudes. The suggestions focus on social,
environmental and economic issues, and refer to a number of
websites where users can learn more.
2.5 RESPONSIBLE MANAGEMENT
At the Banif Financial Group our business decisions are based
on rigorous analysis of the risks involved. In this chapter we
describe how, in the Group, we manage some of these risks on
a continuous basis, especially through implementation of the
Markets in Financial Instruments Directive (MFID), how we
develop and disclose conflict of interest policies at Banif, SA
and BBI and also our money laundering prevention policy.
In addition, we will also look at how the Banif Financial Group
has implemented the main guidelines in the Basel Capital
Accord, known as Basel II, business continuity planning and
the main findings of the environmental risk analysis of the
Banif Financial Group’s loans portfolio.
Implementation of the Markets in Financial Instruments
Directive (MFID) in the Banif Financial Group
The prime purpose of this directive is to promote
competition between stock exchanges and other
alternative forms of trading, so that investors’ trading
costs can be reduced in the medium term. It also
harmonizes the rules of conduct to which financial
service providers are subject throughout the
community, whilst enhancing customer protection. In
short, the MFID:
•
Establishes the principle of the European passport,
decreeing that, once authorized in their country of
origin, companies which provide financial services
can operate in any European market without being
subject to any additional requirements.
•
Prohibits the concentration rule, meaning that
financial services providers are not longer to
channel their business exclusively to regulated
markets (stock exchanges) and can instead opt to
channel it to multilateral trading systems or opt
for systematic internalization, depending on which
offers the lowest price for the investor.
•
Requires providers of financial services to publish
fairly detailed information and, in the case of more
complex products, to check that the operation is
appropriate to the investor’s profile, in order to
offer increased protection.
FINANCIAL
GROUP
The MFID and customer protection
With the transposition of the MFID into Portuguese law in November 2007, Portuguese investors now enjoy increased protection
when they invest their savings in capital markets products – the most common of which are investment funds, shares and
bonds.
This protection derives not only from the fact that financial intermediaries are required to provide more detailed information
on the risks associated with financial instruments – using language which consumers can understand and alerting them
whenever there is the risk of losing the amount invested – but also because the intermediaries now have to distinguish between
“simple” and “complex” products. In the case of “complex” products, financial intermediaries are required to assess whether
a given operation is appropriate or not to the risk profile and the knowledge and experience of the customer – what is called
an appropriateness test.
When the MFID took effect, Banif, SA and BBI started to classify all the investment products they market using a scale of four
degree of complexity, which is assessed in the light of the risks attached to the products, with primacy being assigned to the
security of customers’ investments. The Banif Financial Group feels it is crucial to classify financial instruments, as this will
guide its conduct in providing services to customers, insofar as compliance with the duty of knowing your customer presupposes
that the customer has full knowledge of the risks of the financial instrument in which he seeks to invest – know your security.
The protection provided for customers also depends on their risk profile, experience and investment expertise, and the MFID
distinguishes between three categories of customer: non-professional customers, professional customers and eligible
counterparties. The Banif Financial Group has been eager to accept its responsibility for assuring all customers the greatest
possible protection, and consequently classifies (in its contractual terms) all personal customers as non-professional investors,
although they are offered the option of choosing a different category if they meet the necessary legal requirements.
Also in connection with the capitals markets, the Group has also approved a rigorous compliance programme for assessment
and monitoring of implementation of the MFID by Banif, SA, with a view to also creating a set of procedures to assure that the
Bank’s declared aim of customer protection is achieved on a sustained basis.
Group employees received training on these issues in 2007 (44 employees of Banif, SA and Banif Açores). At BBI this training took
place in 2007 and 2008 and involved most of the staff.
To learn more, please consult our websites at: http://www.banif.pt and http://www.banifib.pt/
21
22
Conflict of Interests Management Policy at Banif, SA and BBI
In 2008, both Banif, SA and Banif - Banco de Investimento, SA
disclosed the outline of their conflict of interests policies. Both
policies are based on the same principles, focussing on different
aspects in the light of the different business conducted by the
two institutions.
Conflict of Interests Policy: BBI
BBI’s conflict of interests policy:
•
Identifies the type of conflicts of interests which can
arise in the course of providing investment services;
Conflict of Interests Policy: Banif,
SA
•
Specifies the measures to be taken and the procedures
to be adopted in order to prevent, mitigate and manage
potential and/or actual conflicts of interest.
A conflict of interest is understood as any situation
which involves a material risk of harm to the legitimate
interests of customers, such as may arise between:
This policy establishes the measures and internal
•
The Bank and the Customer;
procedures which permit the Bank:
•
A relevant person and the Customer;
•
•
Between two or more Customers.
To identify areas of its organization and situations
where conflicts of interests with the potential to
harm its customers’ interests are more likely to arise.
Procedures for identifying and managing conflicts of
•
To prevent and mitigate the conflicts of interests
interest
identified, and also to manage and keep records of
The Bank has a number of procedures for identifying
conflicts of interests in the event of the preventive
and managing conflicts of interest, designed to safeguard
measures proving insufficient.
the aspects identified in the code. It is the Bank’s
responsibility to assure that all relevant persons take
The policy makes provisions for:
cognizance and comply with the Policy and procedures
•
for managing any conflicts of interest which may arise.
Assuring compliance with the legal rules in force with
regard to conflicts of interests and professional duties
incumbent on the Bank and its staff;
Conflict of potential interests – Examples of a general
nature
Potential situations in which a person in a controlling
relationship or a relevant person at the Bank:
•
May obtain a financial gain or avoid a financial loss,
to the detriment of the customer;
•
Has an interest in the outcome of a service provided
to the customer or of an operation carried out on
behalf of the customer, which interest differs from
that of the customer in such outcome;
•
Receives a financial or other benefit in order to give
the interests of one customer priority over those of
another;
•
Assuring that the Bank’s business is carried on in
keeping with strict ethical principles.
The policy on the management of conflicts of interests
applies to the financial intermediation departments
such as the research, investment consultancy, the
bank’s own trading activities, portfolio management
and corporate finance services.
This policy identifies a number of potential situations
where conflicts of interest may occur, providing
information which may help staff carry out their duties
•
Carries on the same business as the customer;
and also assist customers in terms of transparency
•
Receives or will in future receive, from a third party
with regard to the transactions carried out.
other than the customer, an unlawful benefit in
relation to a service provided to the customer, in any
form other than a fee or commission relating to such
service.
To learn more, please consult our websites at: http://www.banif.pt and http://www.banifib.pt/
FINANCIAL
GROUP
Money Laundering Detection and Prevention Policy
The Banif Financial Group is aware of the need to fight organized crime and to combat the laundering of the proceeds of
criminal activities, and has adopted high standards of protection and ethical conduct. It accordingly approved, in July 2008,
a declaration of principles in the form of its Policy on the Prevention and Detection of Money Laundering.
The management model for money laundering risk developed by the Group is based on an ongoing process of development and
improvement of an Environment of Control (raising awareness with a view to combating and preventing money laundering activities,
high ethical standards in contracts and training programmes for employees) and also Control Activities – procedures designed in
keeping with the established policy in order to provide an effective system for monitoring money laundering activities and terrorism
financing.
The Group has provided training for its staff on prevention and detection of money laundering, through e-learning and induction
training programmes. In 2008, 29% of Banif, SA employees successfully completed this type of training, and at BBI this training
has been extended to all staff.
If suspect operations are detected, procedures are adopted in accordance with the law, including notification of the relevant
authorities of the suspect operations.
In addition to assuring compliance with the law, all these initiatives are also designed to assure the security of our customers,
through internal adoption of the highest ethical standards.
To learn more, please consult the 2008 Report and Accounts of Banif SGPS, SA.
Basel Accord
The Basel II Accord has brought the Group better knowledge of its customers, their socio-economic situation and the risks
to which they are subject, considering the development made in terms of internal risk assessment models, the introduction
of new technologies to identify and measure risks and also personnel training which is more sensitive and better prepared
for prompt management and control of risks. The Group is therefore better prepared and has better information on its
customers, the potential risks they run; above all, the Group is better attuned to alerts and signs of risk which allow it to
take more effective preventive action. The various aspects of this accord have therefore brought us improved and more
extensive knowledge, leading to risk management procedures being adopted throughout the organization. Significantly, sales
departments are more aware of lending risks, mitigation techniques and the adjustment of remuneration to the risk of the
operation.
Business Continuity Planning
The Group has taken a broad range of measures to assure the effectiveness of the different existing Business Continuity
Plans, and to combine these efforts so as to provide an Overall Business Continuity Plan at Group level. Significant progress
was made in the Group in 2008 with the approval of policies and strategies for implementation of the Operational and
Infrastructure, IT and Financial Contingency Plan. This has involved defining alternative infrastructure locations, substitute
chains, crisis managers, minimum requirements for people and equipment, essential activities, vital records and other
issues.
23
24
Analysis of Environmental Risks in the Loans Portfolio
The decision-making structure for lending is collegiate and involves input from commercial and risk analysis staff at different
levels. The Banif Financial Group’s corporate loans portfolio consists essentially of small and medium sized companies, reflecting
the reality of the Portuguese business fabric. In general, SMEs can be said to be more vulnerable to environmental risks as
they are less likely to have knowledge of the expanding world of environmental legislation, which has, and will have, financial
effects on their activities.
There are naturally business sector more exposed to environmental risk than others, where the Group’s policy for granting
credit and the indicators used for decisions involve assessment of the main impacts and, in specific cases, set terms which
minimize and mitigate these risks. This is an issue which needs to be developed further within the Group, and in particular
there is the need for rules to be issued centred on the legal requirements.
From an analysis of the environmental risks involved
in the Group’s loans portfolio carried out during
2008, we may conclude that:
•
•
•
The Group is exposed to environmental risks
indirectly through the companies to which it
lends. The construction sector is especially
important, insofar as it may have significant
environmental impacts and represents a
considerable proportion of the commercial
banking loans portfolio;
The Group is exposed to potential environmental
risks posed by the large amount of lending to
companies in different manufacturing sectors;
This risk exposure is amplified by the fact that
most of the companies involved are small and
medium sized companies.
STRUCTURE OF THE BANIF FINANCIAL
GROUP’S LOANS PORTFOLIO BY BUSINESS SECTOR
Manufacturing 7.2%
9.1% Construction
3.9% Retail
Others 59.5%
(including
personal
customers)
17.8% Services
1.6% Financial
institutions
and insurers
0.8% Public sector
As a result of this analysis, the Group will look further into these questions in 2009 as regards the sectors with the highest
likelihood of risk.
FINANCIAL
GROUP
2.6 DISTRIBUTION OF WEALTH
Analyzing the Group’s leading financial indicators, we may see
that, despite a drop in net profits (due to the international
financial crisis, which obliged the Group to shore up its reserves),
operating revenue grew by 6% from 2007 to 2008.
BANIF FINANCIAL GROUP - LEADING BUSINESS
INDICATORS
(Thousands of Euros)
2007
2008
PERCENTAGE
VARIATION IN
RELATION TO 2007
Operating revenue
443,768
470,043
6%
Net profits
101,084
59,237
-41%
37,500
22,750
-39%
338,298
335,804
-1%
Customer lending
8,816,168
10,590,663
20%
Customer deposits and
other loans
5,331,498
6,514,863
22%
Distribution of dividends
Contribution to GVA
In addition, Banif is a responsible Financial Group which looks
constantly to the future, as is demonstrated by the fact that
62% of net profits were retained for investment. At the same
time, direct investment in the community (aid, sponsorship and
donations) totalled 4,261 million euros, representing 5.2% of pretax profits. The international operations of the Banif Financial
Group are fairly significant, given that approximately 32% of our
operating revenues are generated abroad.
In 2008, Banif SGPS, SA received no significant aid from government
entities. It also made no financial or other contribution to political
parties or related institutions.
DISTRIBUTION OF WEALTH CREATED
TO DIFFERENT PARTIES IN 2008
0.41% Direct investment
in the community
State 1%
taxes
4% Retained for
investment
Shareholders 2%
16% Employees
This was due to a great extent to increases of 20% and 22%
respectively in lending and customer deposits. These numbers
demonstrate significant growth in the Group’s financial operations
and show that customersd continue to deposit their trust in the
Banif Financial Group. With regard to distribution of the wealth
created, the main beneficiaries of the business activities of the
Banif Financial Group are the customers and staff who, together,
received 80% of what was generated and distributed in 2008.
Stock market capitalization of 381.5 million euros
at 31 December 2008.
Solvency ratio of 9.22% on an IAS/IFRS and Basel
basis, demonstrating a good equity/asset
structure.
13% Suppliers
Customers 64%
25
26
2.7 OUR COMMITMENTS
reviewed for a two-year period. The following table therefore
presents the progress made and the challenges for 2009/2010.
In the light of our sustainability strategy, we presented in 2007
our commitments for 2008. In view of the progress made on
these issues within the Group, the objectives defined have been
ACTION TAKEN IN 2008
Governance
Core Business
Commitments made for 2008-2009
Progress
Commitments for 2009-2010
- To support implementation of proposals from the
task forces.
- To start up a dialogue with external stakeholders.
- To develop a Group code of conduct.
Underway
- To strengthen the sustainability governance model.
Underway
Completed
- To promote structured dialogue with stakeholders.
- Continuous monitoring of compliance with the
Code of Conduct.
Underway
- Financing of hybrid vehicles and “Auto Multiprotection – Green Environment”.
- To develop partnerships to leverage product.
Products:
To launch the following products:
- Financing of hybrid vehicles and “Auto
Multi-protection – Green Environment”.
- Financing for acquisition of equipment for use of
renewable energy.
Risk:
- To assess environmental and social risks in the loans
portfolio.
- To assess customers’ environmental risks.
- To implement policies which incorporate the
assessment of environmental and social risks in the
process for granting and assessing credit and
monitoring lending risk.
Customers
Workforce
Society
Environment
Monitoring
Completed
Underway
Underway
Underway
To continue with the work already underway.
- To publish the 3rd Sustainability Report;
- To achieve better communication on sustainability
on the Group website
- “Dematerialization”, in the form of communication
through the Group website.
- To publish the 2nd Sustainability Report.
- To create a specific website on Group sustainability.
- To develop specific brochures for different
stakeholders our vision and activities on
environmental and social issues.
Completed
Underway
- To develop a sustainability training plan.
- To develop voluntary work in line with investment
in strategic giving.
- To develop agreements to implement the holiday
camp system.
Underway
Underway
- To develop partnerships with NGOs, universities
and other organizations, with a view to joint
implementation of specific measures in the fields
of education, environment and health.
- To maintain complete transparency with regard
to the projects we support, expectations and final
aims, through posting of periodic reports on these
products on the Group’s website.
Underway
- To define, communicate and implement the Group’s
environmental policy.
- To define and communicate the policy to suppliers.
Underway
Underway
- To communicate and implement the environmental
policy.
- To pursue work already started.
- To monitor regularly key issues relating to Group
sustainability.
Underway
- To pursue the work already started.
_
- Implement the plan defined.
- Extend the scope of the voluntary work
programme to the whole Group.
Under analysis
- To pursue work already started and assess areas
of greatest relevance to society.
Completed
FINANCIAL
GROUP
27
POWER TO
CHANGE
IDEAS AND
ATTITUDES
03
DEVELOPMENT OF
HUMAN RESOURCES
By putting sustainable policies and measures
into practice, by training and acting, by
communicating and sharing experiences, we
believe we will change ideas and social
preconceptions and inspire responsible
attitudes. Sustainability is everyone’s
responsibility.
DEVELOPMENT OF HUMAN RESOURCES
03. Development of human resources
3.1 OVERVIEW
BANIF FINANCIAL GROUP WORKFORCE,
BY TYPE OF EMPLOYMENT CONTRACT
The Banif Financial Group’s primary resource continues to be its
young, dynamic and motivated team, consistently geared for success.
In Portugal, this team currently comprises 3,438 employees in the
various Group companies, representing an increase of approximately
4% in staffing levels in relation to 2007. However, the total workforce
of the Banif Financial Group worldwide is currently 4,626.
3,500
3,000
363
333
2,947
3,105
2,500
2,000
1,500
Temporary
1,000
Permanent
500
0
2007
The Banif Financial Group expanded its workforce
in Portugal by 4% in 2008.
The strength of our team is reflected in the fact
that 90% of employees have permanent contracts,
and the lowest salary paid is, on average, 83% higher
than the minimum national wage.
2008
BY TYPE OF EMPLOYMENT CONTRACT
0.3%
Part-time
Full-time
99.7%
Approximately 99% of the Banif Financial Group’s employees in
Portugal work full time. These are joined by 15 trainees who,
although they are not formally employed by the Group, share in
its values, policies and guiding principles.
BANIF FINANCIAL WORKFORCE,
BY AGE RANGE
The diversity of the Banif Financial Group’s workforce is visible
in the breakdown by gender and by age range. Women account
for approximately 38% of the workforce (up by 6% on the previous
year), and nearly 70% of all employees are aged between 18 and
44.
BY GENDER
3,000
800
1,310
2,081
2,128
2,000
229
247
400
1,236
2,500
808
796
1,200
3,500
993
1,056
1,600
1,287
1,339
30
2007
1,500
2008
1,000
Female
Male
500
0
18-34
years
35-44
years
45-54
years
55-64
years
>65
years
0
2007
2008
FINANCIAL
GROUP
The company officers are predominantly male, representing
the different companies in the Group.
The right to association and to collective bargaining is fully
honoured within the Banif Financial Group, where
approximately 96% of employees are covered by collective
employment agreements which regulate various aspects
relating to the rights of employees, in particular minimum
notice periods for operational changes and issues relating
to health and safety at work. The 2007 Sustainability Report
put the percentage of employees covered by this agreement
at 86%, given that the calculation method used included
Group employees outside Portugal.
Health and safety at work is one of our management priorities,
reflected by the representation of the workforce on the health
and safety committees (approximately 3%). An average of 38
hours’ work was lost per employee in 2008 due to accident at
work or illness, up by 4% on the previous year. Alongside its
policy for health and safety at work, the Group is strongly
committed to preventive medicine, providing periodic medical
check-ups and examinations for its employees.
Performance management – driving our productivity
Employee performance assessments have been
fundamental to the growth and success of the Banif
Financial Group and a key element in the implementation
of our human resources management policy.
The objectives-based performance assessment model is
applied by most companies in the Group. This model has
made it possible to measure objectively and quantifiably
the commitment and contribution made by each employee
to achieving the Company’s objectives, assessing their
training needs and planning their progress through the
professional career structure.
This results in a direct relationship between performance
assessment and career management for different
functional groups and the different functions in Group
companies.
At Banif, SA, almost 100% of employees are subject to
performance assessments. At BBI and Açoreana the
process is currently being implemented.
Dialogue with top management at Açoreana
Meet the Chairman: roughly twice a month, the
Chairman of Açoreana has breakfast with a group of
6 to 10 employees from all levels in the Company. This
gives staff the opportunity to approach the CEO directly
in an informal setting, and to raise and discuss any
concerns they may have. The CEO has the chance to
meet and listen to the company, whilst employees have
the chance to get to know their leader better, together
with his vision and his plans and aspirations for the
company. Between 150 and 200 people have already
taken part in these informal breakfast meetings.
Executive Board (EB) Regional Days: every two months
the Executive Board, accompanied by senior managers,
visits one of the regions and spends a day with sales
staff in the branches. The issues facing branch offices
are discussed and action plans defined, and central
company plans are presented. In addition to contributing
to sales work, these events provide an opportunity to
raise concerns and to clarify major (or minor) issues,
whilst allowing employees around the country the chance
to meet the executive directors and central management
staff, and to be heard by them. The directors normally
take the opportunity to have dinner with the main
customers and agents in the region, once again in order
to listen to our principal partners and to present our
business vision.
Employee benefits
Irrespective of rank, all our employees can enjoy a range of
benefits, some of them available to their families, including
protective insurance (life, retirement, personal, property and
other insurance).
The permanent employees of Banif, SA are also exempt from
annual maintenance charges on credit and debit cards,
cheques, securities custody and purchase/sale of foreign
currency. In addition, they benefit from preferential overdraft
rates and special terms for home loans. Some of these benefits
are also extended to employees in other companies of the Banif
Financial Group.
31
32
The other benefits assigned to our employees include special
arrangements for social benefits (health insurance, pension
funds, equivalence to Collective Employment Agreement terms
The Banif Club organizes a number of annual events,
for home loans), subsidized health club membership and study
designed to help employees make the most of their
grants for the children of deceased employees (Banif, SA).
leisure time.
•
Diving for Success (Diving Unit);
•
Cycle-centaurs in Fátima (BTT Unit);
as Management Meetings, the Christmas Lunch and the Christmas
•
Portalegre Marathon (BTT Unit);
Party for employees’ children.
•
Karting in Sines (8th Banif Club Karting Grand Priz)
In addition, there are significant moments in our business life
when social gatherings help to align employee objectives, such
and the National Company Trophy;
•
Banif Futsal Team;
•
Paintball in Mafra.
Dignitas – Labor Omnia Vincit
The highest distinction for employees of Banif, SA and Banif Açores was this year awarded to 28 employees who distinguished
themselves in their dedication to the Bank’s values and their commitment to achieving its objectives.
Created in 2006, the aim of this prize is:
• To create a culture attuned to merit and generation of added value for the Bank;
• To encourage appropriation of Banif values, demonstrated by exemplary conduct;
• To reward employees who each year distinguish themselves by their performance, achievements and the example of their
conduct.
FINANCIAL
GROUP
Management/Staff
Meetings
Group Christmas
Lunch
Banif Madeira
Family Day
Every year the different Group
companies organize an annual
meeting of their management staff.
1700 employees of the Banif Financial
Group attended this year’s Christmas
Lunch, held in Santarém.
Banif organized its first family day
in Madeira, an event which brought
together 350 participants, including
employees and their families.
These meetings provide an
opportunity for presentation and
discussion of the Business Plan for
the year underway, and also for
presentation of guidelines for
subsequent years.
The entertainment was provided by José
Cid and also featured participation by
Comédia a la carte.
The day’s activities included body
combat, futsal and míni-basketball
tournaments and the 1 st Banif
model ship regatta.
The lunch was carbon neutral, thanks
to offsetting by purchase of carbon
credits in the Extensity Project, which
sequesters carbon through sustainable
farming practices in the Santarém
region, making this our contribution to
the region.
Ask, learn, act
23.3%
61.4%
Unfavourable
Neutral
Favourable
0.8%
14.5%
No
answer
As its name suggests, the Top of Mind Question (TMQ) is the first
question put to the employee and is designed to gauge his degree
of overall satisfaction in relation to the company. The findings for
this question were as follows:
Better than learning what was done is finding out how to do better
(Seneca)
The Banif Financial Group has been consistently concerned with
its working atmosphere. Starting in 2002, Banif has conducted
periodic work satisfaction surveys.
The day ended with a lunch and a
prize-giving ceremony.
8.8%
Unfavourable
11.2%
Neutral
66.4%
Favourable
13.5%
No
answer
When compared with previous studies, the findings of the 2008 Work
Satisfaction Survey presented very positive trends in the main indicators:
This year’s survey was answered by 1,882 employees of Banif,
SA, Banif Açores, Banif GO, Banif Rent and Banif Imobiliária,
corresponding to a participation rate of around 74%. This is the
highest rate yet recorded and reinforces the validity of the
findings.
The Group’s Overall Satisfaction Index (OSI), referring to all
responses except Top of Mind Question (TMQ) and Values/Conduct,
produced the following results:
•
A significant increase in the participation rate;
•
Substantial improvement in the Overall Satisfaction Index
(OSI) and the Top of Mind Question (TMQ).
On most issues there was also a significant increase in favourable
responses and a decrease in unfavourable responses.
33
3.2 TRAINING
Specific Training Topics in 2008
The Banif Financial Group continued in 2008 to devote considerable
energy to vocational training as a strategic tool for the professional
development of its workforce.
The Group’s training portfolio is significantly diverse and new
areas of training are identified each year with a view to improving
the personal and professional skills of our employees. The training
practices in place are tailored to the specific business needs of
each company.
Banif employees first make contact with training when they join
the company. All newly recruited staff of Banif, SA take part in
a modular training programme to integrate them in the Group
and to raise awareness of a range of issues, including: Bank and
Group organization and values, segmentation, products and
cross-selling, compliance, money laundering, health and safety
and others.
A total of 88,156 training hours were provided in 2008 in the Banif
Financial Group, corresponding to an average of 25.6 hours of
training per employee.
Banif4Client
Training was provided in 2008 on sales service standards as part
of the project for customer service certification.
Customer 2 Top Programme
As part of the wider programme for assuring a top class customer
service, the main aim of this programme is to bring back office
operations into line with the needs of sales activities, in order to
assure complete end customer orientation.
At a workshop involving constructions in Lego pieces, participants
reflected on their current identity, the way they feel they are
perceived by the different departments in the bank (and
specifically by the sales divisions) and how they would like to be
perceived in future (aspirational identity).
AVERAGE TRAINING HOURS PER EMPLOYEE
29.0
(hours)
35
25.1
30
Average
23.5
25
20
12.2
15
10
5
0
Banif, SA
BBCA
Açoreana
Time is Life!
BBI
62,210
TRAINING BY OCCUPATIONAL CATEGORY
(hours)
70,000
60,000
35
32.4
50,000
30
25
24.3
20
30,000
15
10,000
0
10.5
Management Skilled and Middle-level
highly skilled
and
professionals intermediate
Training hours per employee
10
5
3.8
99
20,000
20,997
40,000
4,850
34
Unskilled
Total training hours
0
This is a wide-ranging strategic training programme, running
across the whole organization, designed to develop time and stress
management skills at a time of high pressure and heavy demands.
Participants in 2008 were top management, middle management
in commercial areas and heads of central departments. The
programme is set to continue in 2009 and will be broadened to
include various functions in sales areas: retail, corporate and
personal banking.
This training programme deals with important issues such as:
• Planning and organization in line with key areas;
• Priorities management – distinguishing what is important
and what is urgent – acting in accordance with these two
criteria;
• Focussing on “now” and strategic planning for the future;
• Time wasting factors: unproductive meetings, ineffective
communication, inefficient delegation and supervision;
• Tools to aid communication, planning and organization.
FINANCIAL
GROUP
Fraud Prevention
Training programme aimed at commercial divisions, focussing on
the most relevant issues relating to frauds and the respective
internal rules.
Career Development Training
Career development training is designed to assist employee
development and preparation for new duties, especially in terms
of acquiring new technical expertise and behavrious skills essential
for progress in professional careers. This has taken the form of
implementing Skill Development Cycles. In 2008 we sought to follow
through the rapid expansion of the Bank, assisting employees to
mature in their duties and to prepare around 100 employees for
new duties – representing increased participation in relation to
previous years. The specific activites organized were:
• 1 Managers Cycle;
• 3 Commercial Managers Cycles (Porto, Lisbon and Funchal);
• 1 Private Banking Cycle/Certification.
Açoreana remained committed to training in 2008 with 165
training initiatives, corresponding to 13,368 training hours for
employees. This figures represents an increase of 2,770 hours in
relation to the previous year.
Integrated Training Programme at Açoreana
In addition to its commitment to commercial training
in 2008, Açoreana launched an Integrated Training
Programme designed to develop its employees’ technical
and behavioural skills. The new programme comprises
sequential training levels, which are complementary
in terms of the complexity of the subject matter, from
reinforcing teamwork to customer orientation, time
management and team management, sales and
negotiation techniques, assertive communication and
conflict management, and presentation techniques.
One of the central features in 2008 was a team training
initiative built around the theme of social responsibility,
involving all of Açoreana’s workforce.
Interaction with the academic world and leading stakeholders
in training
As well as helping its employees to follow up their academic
education by supporting/subsidizing their undergraduate
and graduate studies, Banif, SA has also invested in fresh
talent and remains open to interaction with some of the
leading academic institutions in the country.
This also involved participation in the international Global
Management Challenge, for which it entered 10 teams: 4
employee teams and 6 student teams.
At the same time, the Bank continued to support sandwich
training in partnership with the Instituto de Formação
Bancária. This training is aligned with the national target of
raising the academic and vocational qualification levels of
young people in Portugal. In 2008 we took in and supervised
8 young trainees, who were placed at branches around the
country.
100%
Team
60%
Rigour
and speed
39%
Açoreana Academy
1%
Extra-Academy Training
35
04
ENVIRONMENTAL
COMMITMENT
Because sustainability should reflect our
everyday lives and hold up a mirror to best
practice, as well as setting a common course
which allows us to change attitudes and keep
up with a changing world. Generating new
ideas is our energy, our commitment to the
environment.
POWER THAT
GENERATES
NEW ENERGY
38
ENVIRONMENTAL COMMITMENT
04. Environmental commitment
4.1 ENVIRONMENTAL POLICY
In view of the important contribution which the financial markets
can make to furthering social and environmental well-being, the
Banif Financial Group has designed a strategy geared to making
an effective contribution to sustainable development in response
to society’s expectations. As part of this strategy, the Group
seeks to protect and manage the environment and to encourage
environmentally responsible behaviour, in terms of the financial
products and services it offers on the market, and in the
management of its day-to-day activities.
In order therefore to manage environmental issues at all stages
in the value chain in the business activities of Group companies,
in 2008 the Banif Financial Group defined its Environmental Policy.
The Banif Financial Group’s Environmental Policy
Promotion of ongoing improvement of the environmental performance associated with the activities of Group companies and
pollution prevention.
Awareness raising in relation to environmental issues throughout the value chain of Group companies, including staff, customers
and business partners.
Procedures for analysis of credit risk should include environmental aspects.
Offering of financial products and services which promote best environmental practice.
Optimization of eco-efficiency through practices which promote more efficient use of energy, natural resources consumed and
materials used, notably with regard to paper use.
Minimization of waste production and promotion of re-use and recycling.
Contribution to mitigation of the problem of climate change and loss of biodiversity.
Adoption of procedure geared to compliance with the applicable legal requirements, and with other standards to which Group
companies subscribe with regard to environmental issues.
FINANCIAL
GROUP
4.2 FINANCIAL PRODUCTS
The Banif Financial Group is proud of its pioneering position
in offering financial products and services with a strong
environmental component.
2008 saw the launch in Brasil of two important equity
funds investing in the environmental sector: FIP Caixa
Ambiental and FIP Bioetanol.
The Luso Carbon Fund remains the only fund in Portugal
investing in the carbon market through acquisition of
emission reduction credits for Greenhouse Gases (GHG)
generated under the Kyoto Protocol.
Luso Carbon
Fund (LCF)
New Energy
Fund (NEF)
Discount
on
premium
for hybrid
vehicles
New Energy Fund aims to achieve assets under
management of 100 million euros in renewable energy
projects.
Aims
Description
Value
To identify, assess and select
projects generating tradable
CERs and ERUs under the Kyoto
Protocol on the basis of the
Clean Development Mechanisms
and the Joint Implementation
Mechanisms.
Special closed-end investment fund. The fund invests on
credits generated by projects or companies contributing
to reduction of GHG emissions and traded off the regulated
markets.
82 M¤
These projects may involve renewable and alternative
energy or energy efficiency and conservation, and present
a high degree of geographical dispersal, with investments
in Russia, China, Thailand and Brazil.
22 Investment projects
To identify, assess and select
assets and projects developing
and/or operating in the field of
renewable energy.
This fund is especially geared to institutional investors.
50 M¤
During the first year of operation, the fund analyzed various
renewable energy projects, with a special focus on solar
energy (photovoltaic and thermal), advancing with its first
investment in May in a photovoltaic project in Spain with
capacity of up to 10 MW.
5 Projects
Encompasses the entire value
chain, from extraction of raw
materials through to technological development and the
application and operation of
new technologies.
In view of the changing needs
of customers and new trends
in the behaviour of Portuguese
motorists, environmentally
concerned customers of
Açoreana now enjoy advantageous terms for their car
insurance.
Net annual yield in 2008:
18.3%
More than 8 M¤ of
carbon credit tons
Up to the end of 2008, the fund also invested in biogas
projects in Portugal and acquired a holding in an Australianbased company which is developing a power generation
model using wave energy.
Açoreana offers a discount on car insurance premiums
to reward customers driving hybrid vehicles.
20,092¤ in gross
premiums
written relating
to 56 insurance
policies
39
40
Assessment and monitoring of the environmental risks
of the LCF and NEF
In the case of the LCF, the assessment process consists of
screening under the United Nations Framework Convention
on Climate Change, both for projects under the Clean
Development Mechanism (CDM) and those under the Joint
Implementation Mechanism (JIM). This process validates
implementation of the project and also provides assessment
over time. In the case of the NEF, all investments are subject
to favourable environmental impact reports.
The climate responsibility of the Banif Financial Group therefore
includes the offering of innovative financial products, such as
the Luso Carbon Fund and the new Energy Fund, by minimizing
and monitoring the carbon footprint of their activities, and by
seeking to offset some unavoidable carbon emissions.
The Banif Financial Group has sought to monitor energy
consumption and to increase the level of energy efficiency,
through measures such as:
•
Installation of domotic controllers (electronic and IT systems
which manage and control the various functions of buildings);
In the management of the LCF and NEF funds, requirements
for compliance with environmental standards are considered
at all times insofar as all investments are subject to legal
and contractual rules for projects to go ahead. The projects
are then closely monitored by certification authorities and
by the management team.
In late 2008, new products were
developed for financing investment
in ecological solutions and these
were presented to the market in
2009: Crédito Pessoal Mais Ambiente
for personal customers and Crédito
Investimento Mais Ambiente for
small businesses, sole traders and
professionals.
This is an open-ended finance
facility, in which the customer is
free to purchase the supplier of
the equipment and services of his
choice, rather than a closed
Use of domotics in
Banif, SA
•
Installation of electronic ballast;
•
Fitting of lighting control systems using presence sensors
and light sensors;
•
Use of low energy light bulbs;
•
Work station lighting which can be switched off, at the José
Malhoa building (Lisbon);
•
An energy system at branches of Banif, SA and Açoreana with
differentiated programming for difference circuits, namely
HVAC, public lighting, office lighting and merchandising signs;
•
Designs for new premises of Banif, SA and Açoreana which
make use of daylight;
•
Fitting of class A equipment for HVAC systems at branches
of Banif, SA and most branches of Açoreana.
solution limited to given suppliers
and equipment. The following projects are eligible for credit:
renewable energy systems, plans for improving energy
efficiency, ecological building solutions, technologies for
recycling and processing of waste, nature conservation
projects and acquisition of credits for offsetting carbon
emissions associated with events, travel and other
undertakings.
4.3 CLIMATE RESPONSABILITY IN THE BANIF FINANCIAL GROUP
In its day-to-day business, the Banif Financial Group contributes
to the emission of greenhouse gases (GHG) through systems
such as air conditioning and lighting in buildings and branches
and through activities such as travel, including air travel. These
are activities of daily activities which general carbon dioxide
(CO2) emissions and consequently an impact on climate.
In terms of the environmental impact of mobility, a number of
measures have already been implemented to reduce the amount
of travel needed, with videoconference facilities being used
throughout nearly all the Group and preferential use of train
travel between Lisbon and Oporto, instead of car journeys in BBI.
The Banif Financial Group has been seeking since 2007 to offset
some of its unavoidable carbon emissions. In 2008, it offset 110
tons of carbon in relation to its Annual Reports, the Sustainability
Report, the 2009 diaries and the Christmas lunch. These emissions
were offset by purchasing carbon credits under the Extensity
FINANCIAL
GROUP
Project. This project sequesters carbon through sustainable
farming practices in the Santarém region, with a strong
component of biodiversity protection.
This report is also carbon neutral. The respective emissions
are offset by supporting the Oxigénio project in the SintraCascais Natural Park. This project seeks to raise the awareness
of companies and citizens in relation to climate change and
the loss of biodiversity, through promotion and protection of
biodiversity – fauna and flora – in the Cascais-Sintra Natural
Park. Activities include the planting of indigenous tree species,
eradication of invasive species, erosion control and placement
Consumption of raw materials
Paper is an essential material for our day-to-day business.
Consumption of recycled paper (125 kg in 2008, in Banif,
SA, out of a total of 178 tons of white paper) and paper
recycling are two mitigation options which we have adopted
in our operations.
All our printers have been installed with options for booklet
printing and printing on both sides, in order to achieve
greater efficiency in the use of each sheet of paper.
In 2008 we consumed approximately 5,700 ink and toner
cartridges.
of nests.
responsibility practices, the Group took part voluntarily in 2008
300,000
in the 4th annual ranking for “Climate Change: Climate Change
and Corporate Management Index 2007”, organized by
250,000
255,731
248,906
Reflecting its commitment to transparency regarding climate
MAIN RAW MATERIALS CONSUMED
(kg)
Euronatura – Centro para o Direito Ambiental e Desenvolvimento
Sustentável. Out of a total of 50 companies, the Group was
200,000
position, more than doubling its score in relation
to the previous year.
150,000
72,638
88,462
ranked in
20th
100,000
Given the nature of the Banif Financial Group’s operations,
2007
50,000
2,533
2,558
4.4 ENVIRONMENTAL PERFORMANCE
0
White paper
consumed
certain environmental issues are more relevant than others.
Monitoring our consumption of resources and emissions of
White envelopes
2008
Plastics
pollutants is of extreme importance to developing and
commitment.
WATER CONSUMPTION
(m3)
35,000
31,271
34,951
implementing a strategy aligned with out environmental
26,787
24,792
30,000
Water management
25,000
We have gradually been adopting an important measure to
cut individual consumption levels by fitting flow control
valves in taps. Our aim is that this will increase water use
efficiency in buildings.
20,000
15,000
10,000
2007
5,000
1,152
940
Efficient management of water consumption is a priority
for the Banif Financial Group. Our consumption depends
essentially on the number of employees and the quality of
sanitary fittings and fixtures.
0
Banif, SA
Açoreana
BBI
2008
41
Energy Management
The main form of energy consumption by the Banif Financial Group is the use of power in buildings and branches, i.e. indirect
energy consumption.
Out climate change responsibility includes implementing a number of measures to reduce this type of energy consumption.
BBI achieved a reduction of approximately 5% in energy consumption in relation to 2007 as a result of the complete redesign of
its offices, incorporating a number of measures such as light and movement sensors, substitution of air conditioning equipment,
incorporation of electronic ballasts and low energy bulbs. A more effective reduction is expected in 2009 as a result of these
measures.
POWER CONSUMPTION
(GJ)
35,000
35,000
30,000
30,000
25,000
25,000
20,000
20,000
15,000
15,000
10,000
5,748
7,859
10,000
2007
5,000
864
919
2008
2
3
Banif, SA
Açoreana
2007
2008
0
BBI
Banif, SA
Açoreana
BBI
INDIRECT EMISSIONS (ton CO2)
(From power consumption, train and air travel)
Greenhouse Gas (GHG) Emissions
The main sources of GHG emissions at the Banif Financial
Group are associated with air, train and car travel and power
consumption (lighting, air conditioning and office equipment).
6,000
5,289
6,281
0
5,000
4,601
3,850
40,000
40,766
40,731
34,427
41,423
40,000
GASOLINE AND DIESEL CONSUMPTION
(GJ)
5,000
DIRECT EMISSIONS (ton CO2)
(From consumption of gasoline and diesel)
1,800
4,000
1,868
1,851
3,000
2,000
1,200
0
0
Banif, SA
Açoreana
BBI
Banif, SA
Açoreana
224
111
2008
2007
1,000
177
346
205
172
2007
600
256
350
42
BBI
2008
FINANCIAL
GROUP
WASTE PRODUCED BY FINAL DISPOSAL
(un)
800
717
201
Figures for 2008 show an increase in power consumption and in
CO2 emissions. However, we should bear in mind that these
increases result from the opening of 54 new branches in Portugal
and an increase of 4% in the workforce.
600
We have accordingly implemented a number of procedures
for recycling plastics, bulbs, batteries, paper, toners and
ink cartridges and for sending the waste produced for
more sustainable forms of disposal.
283
0
400
2007
200
2008
38
22
Although we are not an intensive waste producer, compared
with other industrial sectors, we are concerned not only
with the quantity produced but also with the disposal of
the waste.
145
350
Waste Production
0
Ink and
toner
cartridges
Recycling
Ink and
toner
cartridges
Landfill
IT materials IT materials
Recycling
Donated
In 2008, paper and cardboard sent to recycling more than
doubled in relation to 2007 (up from 14 to 38 tons).
Waste of separation practices already adopted for subsequent
recycling
Guide to good practice in Social and Environmental
Responsibility
Açoreana began in 2008 to research and organize its
new Guide to good practice in Social and Environmental
Responsibility, which is designed to foster more
responsible employee attitudes to these issues.
The guide sets down a number of principles designed
Paper
Fluorescent tubes
to cut energy consumption, through attitudes and
solutions which help to improve energy efficiency.
Environmental awareness raising
With a view to cutting the use of paper and other
consumables for printers and faxes, Açoreana is making
Because we know that reducing our environmental impact
priority use of information technologies, encouraging
depends on the efforts of each of our employees, we have
communication by email and on-screen consultation of
striven to encourage the adoption of good practices. At
documents. It has also developed a number of electronic
Banif, SA this has involved internal communication through
tools to help improve the working efficiency of its sales
the Banifactos magazine and in newsletters.
teams and intermediaries, which will also cut down on
the quantity of paper used in processes.
In 2008, the Banif Financial Group was not subject to any fines
or non-pecuniary penalties for noncompliance with environmental
laws or regulations.
43
POWER THAT
UNITES TO
MAKE A
DIFFERENCE
05
ENGAGEMENT WITH
SOCIETY
Direct contact with our social and
environmental surroundings gives us a wider
vision and opens new windows onto the future.
Giving is an act of generosity with a gratifying
come-back, feeding our emotions and making
sense of our strength. The strength of Belief.
46
ENGAGEMENT WITH SOCIETY
05. Engagement with society
5.1 FINANCIAL PRODUCTS
As a financial institution, we have an added responsibility for the
products and services we offer. Our sustainability strategy has
been designed to encourage the creation of products and services
with a positive impact on improving the quality of life and wellbeing
of the communities with which we interact – in our retail banking,
investment banking and insurance business.
We can already offer a number of products which meet this aim,
and the Group intends to develop other innovative and creative
alternatives able to respond to the needs of the global community.
Product/Service
Activities relating to Banif’s Nova Geração account
have sought to contribute to financial literacy
amongst children and young people.
Using the cartoon figure Ruca, Banif has taught
young people about the importance of saving and
managing their money.
Description
Amounts
STUDENT LOANS
Banif offers 2 credit products designed for students in higher
education, including students aged 18 years and older on
technological specialization courses, first degree, postgraduate, MA and PhD studies.
273,000¤
MUTTUALLY ASSURED STUDENT
LOANS
The financing covers registration, fees, other academic
expenses, travel, accommodation and associated personal
expenses during the time they are studying.
148,700¤
CONTA NOVA GERAÇÃO
As part of its strategic approach to the youth market (0
to 25 years), Banif launched a new account product in
September 2008 – Conta Nova Geração. With this new
account Banif is seeking to offer a distinctive product for
this customer segment, designed to encourage saving
and to confront young people with the importance of
managing their money.
9,436 new
accounts opened
SMALL-SCALE
FISHING CREDIT
Banif Açores’ credit facility is designed to support investment
projects by the owners of fishing craft, with a view to
renovating and modernizing the traditional fishing fleet,
and to supporting fishermen’s associations and cooperatives
in financing projects for onshore support for local and
coastal fishing, so as to support production, improve product
quality and refocus operations.
Banif, SA has also supported small business through its credit facility PME Investe.
Deposits of 12 M¤
At year-end 2008,
159 operations
were underway
with total lending
of 4,856,255¤
FINANCIAL
GROUP
5.2 SHARING WITH THE COMMUNITY
The Arts
In addition to offering financial products geared to improving
the quality of life and social development, the Banif Financial
Group has been directly engaged in various initiatives,
including in the arts, sport and health, education and social
responsibility.
The Group is committed to promoting Portuguese art and
Some of these social projects have involved direct support
form employees belonging to Clube Banif, whilst others have
been pursued through partnership with a range of
institutions.
artists, especially through initiatives in Madeira and the
Azores, where access to the arts is often restricted, due to
the limited number of events.
3rd Banif, SA Painting Prize
The Banif, SA Painting Prize was incorporated this year into
the celebrations for the Bank’s 20 th anniversary. This prize
seeks to encourage artistic creativity in the field of painting
and to gain recognition for the work of Portuguese artists.
Prizes were awarded in two different categories in 2008: the
New Talent prize went to Nádia Duvall, a student at the Escola
In 2008, the Banif Financial Group invested a
total of 4.3 million euros in society (up 20% from
2007). Approximately 12% of this was related to
sponsorship.
Superior de Arte e Design das Caldas da Rainha, and the prize
for Established Artists going to Fernando Lemos, a
multifaceted Portuguese painter, currently resident in Brazil.
Coliseu Micaelense
In March Banif signed a further cooperation agreement with
the Coliseu Micaelense, renewing an alliance first created by
SUMMARY OF AID, SPONSORSHIP AND DONATIONS - 2008
Banif Comercial dos Açores in 2005. This is an excellent
opportunity to press ahead with our policy of cultural
engagement and to strengthen our ties with the public in
the Azores, where the Coliseu has served as a prime arts
1%
venue, hosting a wide range of quality events and attracting
12%
7%
a broad audience, with annual audience figures for recent
years in the order of 270,000.
Musical Theatre
29%
In 2008, Açoreana continued to support the arts, with
51%
sponsorship of the musicals West Side Story, Jesus Christ
Superstar and Fiddler on the Roof at the Teatro Politeama in
Lisbon.
Culture and education
Sport
Leisure
and wellbeing
Social responsibility
Business
Education
The Banif Financial Group is aware that its commitment to
social responsibility should involve public education, by
promoting financial literacy and by organizing educational
At the same time, the Group’s corporate giving activities have
included both one-off donations to projects and institutions
with specific needs and continuous support over recent years
for other initiatives.
activities involving different generations and population
groups.
Massachusetts Institute of Technology - MIT
Banif, SA has signed up to the MIT Program, under an agreement
The following is a representative selection of the many events
and projects which enjoyed support from the Banif Financial
Group in 2008:
between the Fundação para a Ciência e a Tecnologia,
representing the MIT-Portugal Program and the Madeira
Regional Energy and Environment Agency. This partnership
47
48
is designed to further a research project into Sustainable
Islands, by mobilizing Portuguese and MIT research teams, in
close collaboration with companies. The banks will also provide
two credit facilities to promote investment in projects in the
field of energy efficiency.
Education in Madeira
Agente X is the regional online mathematical problem solving
championship. This project has been underway since last
year, with Banif as its official sponsor. The main aim is to
promote mathematics as an accessible academic subject,
involving all the schools in the region. This project reaches
more than 14,000 students each year.
Financial Education
Ruca teaches young people about saving
As part of its Social Responsibility programme, Banif, SA has
undertaken a number of initiatives designed to encourage
and develop the idea of saving, and to improve financial
literacy amongst the young.
With the cartoon character, Ruca, used to promote the Nova
Geração account, the aim has been to teach children (0 to 6
years) the concept and habit of saving. This involved an
educational game available at three shopping centres. The
aim of the game was to lead children to choose which of two
objects best transmits the idea of saving. In comparing the
objects, the children had to decide which would be most
economical.
At the end of the game, the children were given a Ruca
participation diploma, a colouring book and pencils. The
colouring book is given over to themes related to the idea of
saving. As not all children were able to visit one of the shopping
centres involved in the scheme, Banif and Ruca took the
programme to them, visiting the Paediatric Department at
the Hospital Pedro Hispano (Porto), the Paediatric Wing at
Faro Hospital and the Aboim Ascensão Children’s Home (Faro),
Sponsorship of the Global Investment Challenge
where Ruca and his friend Violeta handed out the colouring
The Global Investment Challenge is a competition open to the
books and pencils.
public, free of charge, providing a simulation of investment in
the stock exchange and designed to teach people how the
On the same theme, Banif marked Savings Day, on 31 October,
market functions and operates. Keen to help promote financial
by taking part in events at two of Madeira’s main schools,
literacy amongst the general public, the Banif Financial Group
designed to draw young people’s attention to the importance
took part in the initiative alongside the weekly newspaper
of saving as a means of facing the challenges of the future.
Expresso and Euronext, on the invitation of the company SDG.
FINANCIAL
GROUP
Sharing with Society
Lecture Series
In recent years Banif - Banco de Investimento has supported
Associação Sol to help assure a better future for the children
cared for by this institution.
As part of the celebrations of the Bank’s 20th anniversary, a
lecture was organized in Funchal on the day Banif launched its
new brand. This was the first of a series of lectures, taking in
10 districts where Banif, SA is well established. The series helped
to build closer relations between local authorities, the Bank’s
customers and senior staff.
The talks were given by distinguished speakers, dealing with
topics of contemporary interest, from the world economic
situation through to the environment.
Support for Enterprise and Entrepreneurship
rs4e Project
An agreement was signed in October 2007 under which Banif
has supported the rs4e - Road Show for Entrepreneurship. This
is a pioneering initiative in Europe, and Banif has been involved
from the outset.
The project is devoted to fostering entrepreneurship and is
organized by CEIM - Centro de Empresas e Inovação da Madeira,
with a view to drawing young people’s attention to the business
and wealth creation opportunities of self employment, as means
of promoting economic efficiency and social stability.
Approximately 1000 young people are involved each year, aged
16 to 25 years.
Sponsorship of the Madeira Top 100 Companies
Banif supported the 19 th “Madeira Top 100 Companies” in
conjunction with DN Madeira, RTP, Previsão, ECAM and Madconta.
This initiative is designed to promote sustained growth in the
business fabric of Madeira, and the performance and
competitiveness of the regional economy. The 2008 conference
was opened by Dr. João Salgueiro, chairman of the APB (Associação
Portuguesa de Bancos), alongside Comendador Horácio Roque,
who spoke about the important role played by Banif in the
development of the regional economy.
Support for Charities
The Banif Financial Group has consistently supported social,
humanitarian and healthcare charities, as a way of actively
helping to minimize social problems in critical and needy areas.
Christmas Donations
Since 2001, Banif, SA and Banif Açores have made charitable
donations equivalent to the amount normally set aside for
Christmas gifts. These donations are allocated on a rotating and
equitable basis, to institutions in mainland Portugal, Madeira and
the Azores.
Make a child smile
Açoreana has run an internal training programme which has
contributed to the wellbeing of children at a number of
institutions. This is part of the company’s social responsibility
programme and involved the entire workforce in a total of 4,250
training hours.
Through six one-day initiatives. the employees worked as a team
to renovate and improve the premises of four charity organizations
which together support around 150 children and young people,
aged 2 to 21 years. The programme brought a smile to the faces
of 167 children.
The project had a positive outcome in terms of both social
responsibility and development of team spirit, creating high
expectations for future initiatives. Açoreana plans to continue
the project in 2009/2010.
49
50
Sport in the Community
Participation in sport should be a right at all ages, irrespective
of each person’s spending power. Essential for everyone’s
health and wellbeing, sport helps to create balance and to
bring communities together, and we are therefore keen to
provide ongoing or occasional support for both professional
and amateur events and activities.
Women’s Run, Portuguese Half Marathon and Lisbon Half
Marathon
Banif has been the official bank for the Women’s Run, the
Portuguese Half Marathon and the Lisbon Half Marathon since
2006, as part of its partnership with the Portuguese Marathon
Club, and has renewed its sponsorship up to 2010. Entry
numbers have been growing from year to year, and the three
events attracted more than 60,000 runners in 2008.
The Women’s Run is a very special event, designed not only to
promote sport but also to raise funds for equipment for
screening and treatment for breast cancer, a disease affecting
increasing numbers of women around the world. The event
attracted 13,000 runners, raising around 105 thousand euros.
Fundação Pauleta and Clube Desportivo Santa Clara
Football is a sport which draws large crowds and maintains
close ties with local communities. We were therefore happy
in 2008 to continue to support the Fundação Pauleta, in view
of its valuable work in instilling values and discipline in young
FINANCIAL
GROUP
students, and also the Clube Desportivo Santa Clara, a football
team which plays in the nationwide Vitalis league.
School Sports
Banif, SA was once again the official sponsor of School Sports
Week, a project organized by the Regional Education Department
as from the start of the school year, with tournaments between
middle and secondary schools in Madeira.
Club Sponsorship – Marítimo Futebol Clube and Nacional da
Madeira
52 Banif / Expresso Olympic Ideas
Following up the partnership established with Expresso in 2007
for airing positive ideas which people can apply in their everyday
lives, the Banif Financial Group has taken its cue from the 2008
Olympic Games to transmit the idea of mutual help and
cooperation: “Forgetting the differences which separate use,
leanring to live and grow in peace, in understanding and
cooperation. Sport is also a synonym of overcoming; like athletes,
we can give of our best and beat our personal records”.
Over the 52 weeks of 2008, 52 ideas were aired which any
citizen can apply in his life, using sporting metaphors and reallife sporting events.
In 2008, Banif renewed its sponsorship of Marítimo Futebol
Clube for three more seasons, reflecting its continuing
commitment to fostering sport in Madeira. Banif’s support for
this club and also for Clube Desportivo Nacional da Madeira
is complemented by its support for their amateur sports
activities. We feel that this provides support for professional
and amateur sports, both of which are crucial for a balanced
society and healthy citizens. Out involvement extends to
amateur hockey, basketball, handball, athletics, indoor football
and volleyball.
This sponsorship activity is complemented by initiatives of a
more social nature in conjunction with these clubs. This has
included autograph sessions with the clubs’ players, which
provide a boost for young fans. As the official sponsor of these
clubs, Banif, SA launched the Banif Charity Trophy in 2008,
with revenues going in full to the Chapéu de Esperança project.
Initiatives for improving access to financial services for
persons with physical and/or neuromotor handicaps
Text-to-speech
A new text-to-speech function was developed in 2008 for
the Banif, SA site. This new function allows blind, partially
sighted and illiterate people to gain easier access to
information on Banif’s financial products. This tool allows
users not only to hear the site contents but also a major
innovations – users can navigate around the site using
spoken messages, allowing them to find the information
they want. This new function was developed and validated
with the involvement of the Associação Promotora do Ensino
dos Cegos (APEC).
Wheelchair ramps
One of our main concerns has been to improve access by
people with reduced mobility, and 246 Banif branches in
mainland Portugal are now fitted with wheelchair ramps,
with plans for extending these facilities even further.
51
06
ANNEXES
A pro-active approach and personal realization
lie at the heart of our dedication to the
environment and social welfare, because it is
in the team spirit that we find the human
dimension in each of us and a common vision.
The ability to make a difference.
POWER THE
TRAILBLAZER
54
ANNEXES
METHODOLOGICAL NOTES
Global Reporting Initiative, G3 Guidelines: In drawing up this
Sustainability Report we have followed the G3 Guidelines from
the Global Reporting Initiative. To this end, task forces comprising
managers from different departments and business areas
worked together, coordinated by the Sustainability Management
division, and identified the topics to report on and supplying
the quantitative and qualitative information presented in this
document. At the same time we have sought to respond to the
indicators in the Financial Services Sector Supplement, drawn
up by the GRI.
External assurance: This report has not been subject to external
verification. The Banif Financial Group makes a self declaration
of compliance with level B requirements, which are summarized
in the GRI contents table, presented in this report.
Scope of report: This report deals with business carried on by
the Banif Financial group in Portugal in 2008. Whenever relevant,
we have included reference to operations and/or results in other
countries where the Group operates. The information on the
sustainability strategy applies to the Group as a whole and, in
order to complement this report, readers may consult the 2007
Sustainability Report, the Corporate Governance Report and the
2008 Annual Report and Accounts of the Banif Financial Group.
Changes in relation to previous reports: The Sustainability
Report of the Banif Financial Group is published annually, and
this is the second reporting cycle. With a view to improving the
quality of information presented in each reporting cycle, the
assumptions and methodologies for generating data may (in certain
cases) differ in 2008 from those used in 2007. This fact should be
taken into account when the figures reported in 2008 fail to coincide
with those indicated in last year’s report.
Notes and calculations used in presenting economic, environmental
and social data: Economic data is presented in accordance with
International Financial Reporting Standards.
Environmental data has been quantified for this report using
calculations based on an internal inventory drawn up by the members
of the task forces and using the table opposite, for the purposes of
conversion.
Conversion Factors
Electricity (GJ/kWh)
Diesel
Gasoline
0.0036
PCI
Density
PCI
Density
43.31 GJ/ton
0.837 ton/m3
44.77 GJ/ton
0.735 ton/m3
GHG Emission Factors
Electricity
Motor Vehicle
Train
Airplane
< 1,500 km
1,500-6,000 km
> 6,000 km
487 g CO2/kWh
129 g CO2/pkm
61 g CO2/pkm
338 g CO2/pkm
217 g CO2/pkm
197 g CO2/pkm
Sources: APA, DGGE, Carbonozero
The following notes are provided for graphs presenting environmental data:
Graph
Main raw materials
consumed
Water consumption
Energy consumption Electricity, Gasoline and
Diesel
Emissions (Direct and
Indirect)
Waste produced
Notes
Bleached paper printed includes paper for printing statements.
Plastics including folders and coin bags (figures for 2007 exclude Açoreana).
Toners (2007) excludes Açoreana.
Banif, SA: represents data for branches of Banif, SA and its central buildings. Calculations on the
basis of average figures for 10 branches of Banif, SA., extrapolated for the branch network as
a whole.
BBI: represents buildings in Lisbon, Porto and Funchal, with figures being obtained by estimate, as
cost is included in lease.
Electricity:
Banif, SA: represents data for branches of Banif, SA and its central buildings. Calculations on the basis
of average figures for 10 branches of Banif, SA., extrapolated for the branch network as a whole. In
the central buildings, the Europa building is only included as from 07/2007 and the 4th floor of the
Pórtico building is only included in 2008.
BBI: data calculated on basis of extrapolation and estimates (on basis of average kWh in power bill)
and includes buildings in Lisbon, Porto and Funchal.
Fuel:
Figures calculated on the basis of average gasoline and diesel consumption of the company’s vehicle
fleet, using average mileage of 100 km = 8 litres.
The assumptions used in calculating energy consumption have implications for the graphs of Direct
and Indirect Emissions.
Domestic flights were deemed to be those less than 1, 500 km, European flights as those between
1,500 km and 6,000 km and long haul as those longer than 6,000 km.
Data does not include Açoreana (information not available). In 2008 there is no information on the
quantity of toners and ink cartridges for Banif, SA.
FINANCIAL
GROUP
GLOBAL REPORTING INITIATIVE: LIST OF CONTENTS
GLOBAL REPORTING INITIATIVE - GRI G3: LIST OF INDICATORS
Page
Scope
1. Strategy and Analysis
1.1
1.2
Statement from the most senior decision-maker of the organization and from the directors about the relevance of sustainability
4-7
to the organization and its strategy
Description of key impacts, risks, and opportunities relating to the company's activities
4-7, 14, 20-24, 26
BFG
BFG
2. Profile Organizational
2.1
Name of the organization
64
BFG
2.2
Primary brands, products, and/or services.
10, 39, 46
BFG
2.3
Operational structure of the organization
10, 14-16
BFG
2.4
Location of organization’s headquarters
64
BFG
2.5
Number of countries where the organization operates, and names of countries with either major operations or that are
specifically relevant to the sustainability issues covered in the report
10-11
BFG
2.6
Nature of ownership and legal form
64
BFG
2.7
Markets served
2.8
Scale of the reporting organization
2.9
Significant changes during the reporting period regarding size, structure, or ownership
2.10 Awards received in the reporting period
10, 11
BFG
10, 11, 25, 30
BFG-Portugal
43, 54
BFG
11,19
BFG-Portugal
3. Report Parameters
3.1
Reporting period for information provided
54
BFG
3.2
Date of most recent previous report
54
BFG
3.3
Reporting cycle
54
BFG
3.4
Contact point for questions regarding the report, including email address and website
64
BFG
3.5
Process for defining report content, including: determining materiality, prioritizing topics within the report, and identifying
stakeholders the organization expects to use the report
54
BFG
3.6
Boundary of the report (countries or regions, products or services, departments, facilities, joint ventures or subsidiaries,
together with other specific boundaries)
54
BFG
3.7
State any specific limitations on the scope or boundary of the report
54
BFG
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly
affect comparability from period to period and/or between organizations
54
BFG
3.9
Data measurement techniques and the bases of calculations, including hypotheses and techniques underlying the estimates
used in compiling indicators and other information contained in the report
54
BFG
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
(e.g. Mergers/acquisitions, change in the base period of year, nature of business, measurement methods)
54
BFG
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report
31, 54
BFG
3.12 Table identifying the location of the Standard Disclosures in the report
57-61
BFG
54
BFG
3.13 Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report
accompanying the sustainability report, explain the scope and basis of any independent verification which has taken place,
together with the natures of the relationship between the organization and the auditor(s).
4. Governance, Commitments and Engagement
4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific
tasks, such as setting strategy or organizational oversight
14
BFG
4.2
Indicate whether the Chair of the highest governance body is also an executive officer
15
BFG
4.3
For organizations that have a unitary board structure, state the number of members of the highest governance body that
are independent and/or non-executive members
15
BFG
57
58
ANNEXES
14-17, 31
BFG-Portugal
Linkage between compensation for members of the highest governance body, senior managers, and executives (including
departure arrangements), and the organization’s performance (including social and environmental performance)
15
BFG-Portugal
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided
22
BFG-Portugal
4.7
Process for determining the qualifications and expertise of the members of the highest governance body for guiding the
organization’s strategy on economic, environmental, and social topics
15
BFG-Portugal
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and
social performance
17, 22, 23, 38
BFG-Portugal
Procedures of the highest governance body for overseeing the organization’s identification and management of economic,
environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally
agreed standards, codes of conduct, and principles
14-16
BFG-Portugal
4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental,
and social performance
15
BFG-Portugal
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization
38
BFG-Portugal
17, 19-21, 41,
47-51
BFG-Portugal
4.13 Memberships in associations and/or national/international advocacy organizations in which the organization: participates in
projects or committees, provides substantive
17
BFG-Portugal
4.14 List of stakeholder groups engaged by the organization
16
BFG-Portugal
4.15 Basis for identification and selection of stakeholders with whom to engage
17
BFG-Portugal
16, 17, 19, 33,
46-51
BFG-Portugal
17, 19, 20, 31, 33
BFG-Portugal
25
BFG-Portugal
24, 39-41
BFG-Portugal
NAv
-
25
BFG-Portugal
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
4.5
4.8
4.9
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization
subscribes or endorses
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded
to those key topics and concerns, including through its reporting
Economic Performance
EC1 Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other
investments in the community, retained earnings and payments to investors and governments
EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change
EC3 Coverage of the organization's obligations relating to the defined benefit plan
EC4 Significant financial assistance received from government
EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation
30
BFG-Portugal
NAv
-
NR
-
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial,
in-kind, or pro bono engagement
47-51
BFG-Portugal
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts
46-51
BFG-Portugal
EN1 Materials used by weight or volume
41
BFG-Portugal
EN2 Percentage of materials used that are recycled input materials
41
Banif, SA
EN3 Direct energy consumption by primary energy source
42
BFG-Portugal
EN4 Indirect energy consumption by primary source
42
BFG-Portugal
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of
operation
Environmental Performance
EN5 Energy saved due to conservation and efficiency improvements
42
BBI
EN6 Initiatives to provide energy-efficient or renewable energy based products and services
40-43
BFG-Portugal
EN7 Initiatives to reduce indirect energy consumption and reductions achieved
40-43
BFG-Portugal
EN8 Total water withdrawal by source
41
BFG-Portugal
EN9 Water sources significantly affected by water consumption
NR
-
EN10 Percentage and total volume of water recycled and reused
NR
-
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside
protected areas
NA
-
FINANCIAL
GROUP
EN12 Significant impacts of activities on protected areas or areas of high value for biodiversity
NA
59
-
NAv
-
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity
41
BFG-Portugal
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level
of extinction risk
NA
-
EN16 Total direct and indirect greenhouse gas emissions by weight
42
BFG-Portugal
EN13 Habitats protected or restored
EN17 Other relevant indirect greenhouse gas emissions by weight
42
BFG-Portugal
40-43
BFG-Portugal
EN19 Emissions of ozone-depleting substances by weight
NAv
-
EN20 NOx, SOx, and other significant air emissions by type and weight
NAv
-
NR
-
EN22 Total weight of waste by type and disposal method
43
BFG-Portugal
EN23 Total number and volume of significant spills
NA
-
EN24 Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention Annex
I, II, III and VIII, and percentage of transported waste shipped internationally
NA
-
EN25 Size, protected status and biodiversity value of water bodies and related habitats significantly affected by the reporting
organization's discharges of water and runoff
NR
-
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved
EN21 Total water discharge by quality and destination
EN26 Initiatives to mitigate environmental impacts of services, and extent of impact mitigation
40-43
BFG-Portugal
EN27 Percentage of products sold and their packaging materials that are reclaimed by category
NA
-
EN28 Fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
43
BFG-Portugal
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization's operations,
and transporting members of the workforce
NAv
-
EN30 Total environmental protection expenditures and investments by type
NAv
-
30
BFG-Portugal
Social Performance - Labour Practices
LA1 Total workforce by employment type, employment contract, and region
LA2 Total number and rate of employee turnover by age group, gender, and region
NAv
-
31,32
BFG-Portugal
LA4 Percentage of employees covered by collective bargaining agreements
31
BFG-Portugal
LA5 Minimum notice period(s) regarding operational changes
31
BFG-Portugal
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor
and advise on occupational health and safety programs
31
BFG-Portugal
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
31
BFG-Portugal
NAv
-
LA9 Health and safety topics covered in formal agreements with trade unions
31
BFG-Portugal
LA10 Average hours of training per year per employee by employee category
34
BFG-Portugal
34, 35
BFG-Portugal
31
BFG-Portugal
30, 31
BFG-Portugal
NAv
-
HR1 Significant investment agreements that include human rights clauses or that have undergone human rights screening
NAv
-
HR2 Principal suppliers that have undergone screening on human rights
NAv
-
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations,
including the percentage of employees trained
NAv
-
HR4 Total number of incidents of discrimination and actions taken
NAv
-
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees
LA8 Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or
community members regarding serious diseases
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them
in managing career endings
LA12 Percentage of employees receiving regular performance and career development reviews
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group
membership, and other indicators of diversity
LA14 Ratio of basic salary of men to women by employee category
Social Performance - Human Rights
60
ANNEXES
HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk
31
BFG-Portugal
HR6 Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination
of child labour
NR
-
HR7 Operations identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the
elimination of forced or compulsory labour
NR
-
HR8 Security personnel trained in the organization's policies or procedures concerning aspects of human rights
NA
-
HR9 Incidents of violations involving rights of indigenous people and actions taken.
NR
-
15, 16
BFG-Portugal
Social Performance - Society
SO1 Programs and practices that assess and manage the impacts of operations on communities
SO2 Business units analyzed for risks related to corruption
NAv
-
23
BFG-Portugal
NAv
-
17
BFG-Portugal
SO6 Financial and in-kind contributions to political parties, politicians and related institutions
25
BFG-Portugal
SO7 Legal actions for anti-competitive behaviour, anti-trust and monopoly practices
NR
-
NAv
-
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage
of significant products and services categories subject to such procedures
NA
-
PR2 Incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services
during their life cycle
NA
-
19-21
BFG-Portugal
19
BFG-Portugal
19
BFG-Portugal
19-21
BFG-Portugal
SO3 Employees trained in organization's anti-corruption policies and procedures
SO4 Actions taken in response to incidents of corruption
SO5 Participation in public policy development and lobbying
SO8 Fines and non-monetary sanctions for non-compliance with laws and regulations
Social Performance - Product Responsibility
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such
information requirements
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and
labelling, by type of outcome
PR5 Practices related to customer satisfaction
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising,
promotion, and sponsorship
PR7 Incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising,
promotion and sponsorship
19
BFG-Portugal
NAv
-
PR8 Complaints regarding breaches of consumer privacy
NAv
-
17, 18, 38
BFG-Portugal
24, 40
BFG-Portugal
FS3 Processes for monitoring clients' implementation of and compliance with environmental and social requirements included in
agreements or transactions
40
BFG-Portugal
FS4 Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to
business lines
14-16, 34-35
BFG-Portugal
FS5 Interactions with clients/investors/business partners regarding environmental and social risks and opportunities
17
BFG-Portugal
FS6 Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector.
24
BFG-Portugal
FS7 Monetary value of products and services designed to deliver a specific social benefit
46
BFG-Portugal
39
BFG-Portugal
PR9 Fines and non-monetary penalties relating to non-compliance with laws and regulations
Indicators: Financial Services Sector Supplement
FS1 Policies with specific environmental and social components applied to business lines
FS2 Procedures for assessing and screening environmental and social risks in business lines
FS8 Monetary value of products and services designed to deliver a specific environmental benefit
FS9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures
NAv
FS10 Percentage and number of companies held in the institution's portfolio with which the reporting organization has interacted
on environmental or social issues
NAv
FS11 Percentage of assets subject to positive and negative environmental or social screening
-
40
BFG-Portugal
FINANCIAL
GROUP
61
FS12 Voting policies applied to environmental or social issues for shares over which the reporting organization holds the right to vote
shares or advises on voting
NAv
-
FS13 Access points in low-populated or economically disadvantaged areas by type.
NAv
-
51
Banif, SA
17-21
BFG-Portugal
48
BFG-Portugal
FS14 Initiatives to improve access to financial services for disadvantaged people.
FS15 Policies for the fair and transparent design and sale of financial products and services
FS16 Initiatives to enhance financial literacy by type of beneficiary
Key
BFG - Banif Financial Group
BBI - Banif - Banco de Investimento, SA
NA - Not Applicable
The indicators in question are not appropriate to the financial sector.
NAv - Not Available
There are some indicators for which we lack the methodologies which would allow us to report this information in this document. We remain committed
to gradually improving the collection of non-financial information, and it is to be expected that in future we will be in a position to present further
indicators.
NR - Not Relevant
In view of the specific nature of the operations of the companies in the Banif Financial Group and the subject matter identified, the internal team
responsible for this report has identified a number of indicators which are not relevant to the Group. In relation to environmental aspects, we consider
that the most material impact of our operations is related to the products we sell.
Self-declaration
Optional
External third party
GRI verification
√
B+ A
A+
Third party verified
Mandatory
C+ B
C
Self-declaration for GRI application level: Level B
62
ANNEXES
GLOSSARY
Açoreana: Companhia de Seguros Açoreana, SA.
HVAC: Heating, ventilation and air conditioning systems.
Banif Açores: Banco Banif e Comercial dos Açores, SA.
Banif, SA: Banif - Banco Internacional do Funchal, SA.
BBI: Banif - Banco de Investimento, SA.
Stock market capitalization: The estimate of the total value of
the financial institution on the basis of the listed market price
(value) of its shares. The capitalization value is calculated, at a
given point in time, by multiplying the listed share price by the
total number of shares in issue.
CER – Certified Emission Reduction: Emission reduction certificates
generated under the Kyoto Protocol flexible mechanism.
Contribution to GVA: GVA (Gross Value Added) is a classic economic
aggregate used to express the added economic value created at
different levels in the production of goods or services, from the
perspective at all times of aggregate supply. In the case of
financial institutions, which are service providers, GVA may be
calculated as follows (reflecting the economic value created by
the financial institution in the course of its operations): GVA =
Net interest income + Dividend income + Net commission income
+ Net profits on financial operations + Other net operating income
– Overheads.
Sustainable development: According to the Bruntland report
published in 1987, sustainable development is development that
meets present needs without compromising the possibility of
future generations meeting their own needs.
Carbon dioxide: One of the gases contributing most to the
greenhouse effect and which is discharged into the atmosphere
primarily as a result of the burning of fossil fuels.
Distribution of Dividends: Dividend distribution is net profit that
the financial institution distributes to its Shareholders, in other
words, the return on capital for the holders of portions in the
share capital of the company (Shareholders).
MiFID: Markets in Financial Instruments Directive, which is designed
to help create a single European market in securities, through
harmonization and convergence of the law applicable to financial
brokerage and the workings of markets, and simplification of
oversight at community level, through a new division of
responsibilities between the competent authorities.
Domotics or home automation: Technology for managing all home
resources. The term “domotics” derives from the Latin word
“domus” (house) and “robotics” (automated control of something).
It is the robotics element that makes the system valuable,
simplifying people’s daily lives, meeting their needs in terms of
communication, comfort and security. When home automation
first appeared (with the first buildings using the system in the
1908s), the aim was to control lighting, temperature and security,
and interconnection between these three elements.
Eco-efficiency: Refers to the supply of goods and services at
competitive prices which met human needs and enhance quality
of life, whilst also reducing environmental impacts and resource
intensity over the course of their life cycle. May be regarded as
a process whereby the same quantity of goods or services may
be produced, reducing the use of natural resources and also the
waste resulting from the production process.
Renewable energy: Energy obtained from natural sources which
are able to renew themselves, meaning they are virtually
inexhaustible, such as: wind, sun and waves.
ERU – Emission Reduction Units: Certified emission reduction
units generated under the Kyoto Protocol flexible mechanism.
Net exposure: Relates to the maximum exposure less the
mitigation effect considered as effectively reducing the lending
risk, discounting bills/personal guarantees and other collateral
of less value.
Maximum exposure: Relates to the net balance sheet value of
the financial institution.
Strategic giving: Corporate practices to the benefit of society,
and which follow the guidelines set by the company’s business.
These practices are normally part of a broader plan conceived to
complement the company’s business strategy.
EIF: Equity Investment Funds.
FSSS – Financial Services Sector Supplement: Global Reporting
Initiative supplement for the financial sector, designed to respond
to specific reporting requirements in sustainability reporting.
GHG – Greenhouse Gases: Gases which absorb part of the infrared
radiation reflected by the earth’s surface, making it difficult for
this radiation to reach space. With increased concentration of
these gases in the atmosphere, the effect is more intense,
preventing the atmosphere from cooling normally, and keeping
the planet at abnormally high temperatures.
FINANCIAL
GROUP
Governance for sustainability: The structure, systems and
processes used by the company to manage and implement
sustainability in the company at corporate level and in individual
business units.
GRI – Global Reporting Initiative: Multi-stakeholder organization
which promotes guidelines for the drafting of sustainability
reports.
Environmental impact: Any alteration in the environment or any
one of its components as a result of a given human action or
activity. These alterations may be quantified, and classified as
positive or negative.
KPBI30: Business index, made up of the Portuguese websites
most representative of six business sectors. The 30 websites
included in the index present the necessary balance in terms of
business sector, and the main criteria for inclusion are the
visibility of the site, consistent high ratings and successful
performance in relation to other sites in the same sector.
Clean Development Mechanism (CDM): Flexible mechanism,
created and regulated under the Kyoto Protocol, and essential
for States and private organizations subject to CO2 emission
reduction targets to be able to obtain CER. This is the mechanism
whereby these entities buy CER from projects resulting in real
reductions in GHG emissions, carried out in developing countries
which have ratified the Kyoto Protocol.
Extensity Project: Environment and sustainability management
systems in extensive farming – A project financed by the European
Commission and coordinated by the Instituto Superior Técnico,
with the principal aim of optimizing the business, environmental
and social performance of farms.
Kyoto Protocol: International treaty with commitments to
reduction of GHG emissions.
Solvency Ratio: Financial indicator designed to analyze the balance
(or imbalance) existing between the different components in the
balance sheet of a financial institution (FI). In the final analysis,
it makes it possible to determine the relative percentage of the
FI’s assets which is financed by equity in relation to the portion
financed by borrowing. In simplistic terms, it consists of equity
divided by liabilities. The higher this ratio, the greater the financial
stability of the FI and vice versa.
Net profit: The net profit of a financial institution is usually
determined in the financial statements by subtracting total costs
(personnel, external supplies and services, depreciation for the
period, provisions for the period and tax) from banking income.
Stakeholders: Interest groups that include all those who affect
or are affected by the activity of a given company (shareholders,
workforce, customers, suppliers, governments, state agencies,
NGO and civil society).
Joint Implementation Mechanism (JIM): A mechanism similar in
all respects to the CDM, but intended only for the trading of CER
between States and countries regarded as developed.
Sustainability: Underpinned by the idea that the development
of companies, organizations and countries should consider not
merely the traditional factors, but also environmental, social and
governance issues. Environmental, social and governance factors
are also regarded as business risk factors for the organization.
Relevant person: In the context of Banif, SA’s policy on
management of conflicts of interest, “relevant persons” are
deemed to be the persons identified in Article 304.5 of the
Securities Code, specifically the directors of the financial
intermediary, persons effectively managing or supervising each
of the intermediation activities and the employees of the financial
intermediary or subcontractors.
Task Forces: Task forces set up by the Banif Financial Group,
comprising top and middle managers in Banif, SA, Banif - Banco
de Investimento, SA and Companhia de Seguros Açoreana, SA in
connection with the Group’s sustainability strategy. They propose
a series of initiatives they consider appropriate for the Group,
and after approval by the Steering Group and Group Directors
they are also responsible for implementation.
Operating income: Aggregate bringing together all the revenues
obtained by a financial institution. Normally, most of these
revenues result from the receipt of interest (on lending) and the
collection of commissions for services rendered. However, it
should be noted that the final value is net of certain expenses:
interest expenses on deposits and losses on certain investments
are the most typical examples. Normally, in the (simplified) financial
statements of financial institutions this indicator is calculated
as follows: Banking Income = Net Interest Income (includes
dividend income) + Profits on Financial Operations (net) + Other
Income (net).
63
Banif SGPS, SA
Public Limited Company
Registered Offices: Rua de João Tavira, 30 – 9004-509 Funchal
Share Capital: 350,000,000 Euros
Companies Registry and Corporate Person no.: 511 029 730
www.grupobanif.pt
TECHNICAL CREDITS
Published by Banif - Financial Group
Consultants - Sustentare
Design - Brandia Central
Computer typeset by Maisimagem
Print run - 1,600 copies
Printed and bound by Lisgráfica
Deposit Copy - 273862/08
Environmental note on the production of this report
Aware that climate change is a global issue, the Banif
Financial Group believes that it can make a difference.
The production and printing of the Sustainability Report of
the Banif Financial Group involves emissions of approximately
320 kg of carbon dioxide equivalent (CO2e), responsible for
global warming.
One ton of carbon discharged at one point on the planet
can be cancelled out at another point on the planet, giving
rise to the concept of “offsetting”.
Taking a responsible stance on the climate issue, the Banif
Financial Group has decided to offset these emissions by
supporting the Oxigénio project, in the Sintra-Cascais Natural
Park. This project, organized by Cascais Natura, sets out to
raise the awareness of companies and citizens to issues
ACKNOWLDGEMENTS
such as climate change and the loss of biodiversity, by
promoting and protecting biodiversity – fauna and flora –
This Sustainability Report is the fruit of a team effort drawing
on contributions from different areas of the Banif Financial
Group and various entities outside the Group.
This way we believe we are contributing in a constructive and
transparent manner to improving our practices for the sake
of Sustainable Development.
To all those who have made it possible to produce this
Sustainability Report we wish to offer our sincere thanks.
in the Sintra-Cascais Natural Park. This work includes
planting indigenous trees, eradicating invasive species,
control of erosion and construction and placement of nests.
The 2008 Sustainability Report of the Banif Financial Group
is carbon free.
------------The 2008 Sustainability Report of the Banif Financial Group is printed at
a plant certified in accordance with the Quality Management Systems
standard - NP EN ISO 9001:2000. The paper used is Inaset Plus Offset,
120 g/m2, produced by Portucel, which is certified under the same
standard and also in accordance with the standard on Environmental
We value your opinion. Please help us to do better, sending
your suggestions to: [email protected]
Management Systems – NP EN ISO 14001: 2004 – and with OSHAS
18001:1999. The paper is produced from forests managed on a sustainable
basis.

sust_ capI,II_eng - Banif Investment Bank

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