SOCIAL AND ENVIRONMENTAL CRITERIA

G4-DMA Procurement practices | G4-DMA Child labor | G4-DMA Forced or compulsory labor

We strive continuously to improve relations with suppliers. These efforts are supported by our codes of ethical conduct and our sustainability and anti-corruption policies. All the information required of suppliers is also aligned with BM&FBOVESPA Corporate Sustainability Index (ISE) and Dow Jones Sustainability Index (DJSI) principles.

Our supplier chain comprises companies in diverse areas of activity and product and service categories. In 2016, 2,084 active approved suppliers from all over the country effectively provided services for us. From a social and environmental standpoint, the main supplier categories are: security, call center, data and voice communication, transportation and custody of cash and valuables, cards, civil construction works and services and IT equipment. G4-12

WE SEEK TO DRIVE BEST PRACTICES WITH THE SUPPLY CHAIN SOCIAL AND ENVIRONMENTAL RESPONSIBILITY PROGRAM

In 2016, the supplier approval model was concluded, resulting in a more efficient supplier registration management tool. The methodology is more selective, streamlining the process and making it more efficient. The manager of each area may invite the chosen company to participate in the selection process, while approval of this company is the exclusive preserve of the Procurement Department. Further information in the GRI Attachment

The tool addresses social and environmental responsibility, labor practices and slave and child labor, which permits the mitigation of risks with suppliers considered to be critical from a social and environmental standpoint.

With the approval method implanted, all managers in the area are able to visualize the profile of our suppliers. They have a broader view and may accompany the process online, with information about the supplier (registration, financial, commercial, social and environmental), as well as the essential documents for signing a contract, such as the articles of association and latest amendment, company records and certificates.

Percentage of suppliers evaluated under social and environmental aspects for the approval

2014

18%

2015

35%

2016

100%

For 2017, the target is to keep reaching 100% of suppliers.

14^th SUPPLIERS’ ENCOUNTER

With the goal of engaging our suppliers in fomenting sustainability, we promote the Bradesco Suppliers’ Encounter on an annual basis. In 2016, the central theme of the event was governance and sustainability initiatives. There was a presentation of the CDP Supply Chain on Climate Change – Global View and Regulatory Compliance, enabling participating companies to assess market trends in terms of regulation, legislation and the business environment, with a view to encouraging them to adopt preventive measures to ensure compliance with best market practices. During the event, three of the bank’s business partners were invited to share their experiences and practices in governance and sustainability, generating reflections for event participants and reinforcing relations, as well as driving benefits for the future of the planet and society.

To promote best practices, in 2016 the Social and Environmental Responsibility in the Supply Chain program was launched aimed at analyzing and certifying management of social and environmental responsibility in the supply chain. An independent auditor was contracted to verify suppliers in critical categories, focusing on questions such as health and safety, freedom of association, discrimination, remuneration and management systems. G4-HR4

MORE THAN 2,000 ACTIVE APPROVED SUPPLIERS PROVIDED SERVICES FOR THE BANK NATIONWIDE

Procurement measures in 2016

G4-DMA Training and education

Negotiation:

training for the Procurement area focused on international negotiation processes and models, based on strategic sourcing.

Procurement Planning, Management and Operation:

training focused on the role of procurement in adding value and opportunities in direct and indirect purchases, capital goods and services.

Taxes In Procurement:

training aimed at preparing professionals in tributary matters, including legal and financial implications and decision making to ensure the safest and most effective purchase.

Excel Pivot Table:

training in the use of pivot table resources, a tool which streamlines and ensures the accuracy of analyses that support management reports and decision making in account.

GARTNER SYMPOSIUM:

initiative dedicated to assessing new technology opportunities for the corporate market, adding knowledge and value in Bradesco Information Technology (IT) acquisition processes.