Strengthen forest conservation through financial inclusion

Banco Bradesco S.A. operates in a region where social inequality, limited access to financial services, and economic dependence on environmentally harmful activities contribute to deforestation and forest degradation. Remote Amazonian communities often lack banking access, financial education, and viable income alternatives compatible with forest conservation.

As part of its broader financial inclusion and sustainability strategy, the company aimed to support socioeconomic development while contributing to long-term forest preservation by enabling sustainable livelihoods, improving access to finance, and strengthening local entrepreneurship.

Location of the initiative: Brazil

Banco Bradesco S.A. established a long-term strategic partnership with a local non-profit organization specialized in Amazon conservation and community development. The initiative combined three mutually reinforcing pillars:

• Forest conservation support through community-based development

• Financial inclusion via local banking access points and financial education

• Entrepreneurship enablement through oriented productive microcredit

A local banking service point was installed within a community-run eco-lodge, eliminating long-distance travel for financial and social services. Sustainable tourism and local enterprises were supported as alternatives to predatory economic activities.

Sustainability impact

Climate

• Targeted emissions: Scope 3, Category 1 (Purchased Goods and Services) and Category 15 (Investments), through enabled conservation outcomes

• GHG impact: The initiative acts as an enabler of avoided emissions by reducing incentives for deforestation and forest degradation. By supporting sustainable income generation, the initiative contributes to preserving standing forest carbon stocks over the long term (expected impact over 10+ years)

Nature

The initiative contributed to the protection of primary rainforest within a legally protected reserve by supporting economic activities compatible with conservation. Reduced pressure on forest resources helped maintain biodiversity, ecosystem services, and watershed protection in the Rio Negro region.

Social

The initiative directly benefited more than 43 families and 20 local entrepreneurs by improving access to financial services, income opportunities, and financial education. It strengthened community autonomy, reduced geographic exclusion, and supported formal economic participation.

Business impact

Benefits

• Strengthened long-term presence in remote regions through inclusive financial services

• Enhanced social license to operate and stakeholder trust

• Portfolio growth in oriented productive microcredit

• Reduced risk exposure linked to environmental and social factors

Costs

• Investment: R$129 million invested over 17 years in conservation and development initiatives

• Operating costs: Ongoing support for local service points and community programs

• Dependencies: Effectiveness depends on long-term partnerships, community engagement, and local governance capacity

Costs were optimized by partnering with a specialized non-profit, leveraging existing community infrastructure, and integrating financial services into viable local businesses.

Typical business profile

• Financial institutions or corporates operating in biodiversity-sensitive regions

• Companies with Scope 3 exposure to land-use change

• Organizations at an intermediate to advanced sustainability maturity level

• High relevance for emerging markets and remote geographies

Approach

1. Identify priority regions with high environmental and social vulnerability

2. Establish long-term partnerships with trusted local organizations

3. Co-design community development plans aligned with conservation goals

4. Deploy local financial access points and financial education programs

5. Enable sustainable entrepreneurship through oriented microcredit

6. Monitor social, environmental, and economic outcomes over time

Stakeholders involved

• Project leads: Sustainability and financial inclusion teams

• Company functions: Retail banking, microcredit, ESG, risk

• Main partners: Local conservation and community development organization

• Other stakeholders: Community leaders, local entrepreneurs, reserve management authorities

Key parameters to consider

• Initiative maturity: Proven, long-term community-based approach

• Implementation timeline: Multi-year (initial setup ~12 months)

• Average lifetime: Long-term, ongoing partnership model

• Pre-requisites: Community trust, stable local partners, basic infrastructure

• Geographical relevance: High for forested and remote regions

Implementation and operations tips

• Invest in long-term partnerships rather than short-term projects

• Align financial products with local economic realities

• Embed services within existing community enterprises

• Combine financial access with education and capacity building

• Track outcomes beyond financial metrics, including social and environmental indicators