The Bradesco supplier chain comprises companies from diverse areas of activity and product and service categories. In 2015, 1,836 approved suppliers located nationwide effectively provided services for the Organization. Bradesco’s main supplier categories are: Graphic materials in general, Electronic printing, Furniture (standard and non standard), Civil construction work, Infrastructure equipment, Office materials, Checks, Caps and t-shirts, Visual communication (products and services), Basic infrastructure services, Uniforms and IT equipment.

Region Spending on local suppliers in 2015 (R$) Spending on local suppliers in 2015 (%)
Southeast 8,595,710,691.73 89
South 382,196,881.34 4
North 346,814,249.17 4
Midwest 187,947,221.91 2
Northeast 129,631,728.74 1
Overseas 13,482,032.42 0
Overall total 9,655,782,805.31 100
Value generation for suppliers
  2012 2013 2014 2015
Number of contracts 2,212 2,340 2,319 2,585
Amount (in R$ billion) 13.40 16.00 21.90 25.13
DMA Forced and child labor | DMA Supplier assessment | DMA Freedom of association and collective bargaining

In September 2015, with the beginning of the implantation of the new supplier approval system, all of the companies (100%) were submitted to assessment in accordance with social and environmental, company registration, commercial and economic-financial criteria. If a company does not achieve a minimum score of 50%, improvements plans aimed at adaptation and legal compliance are prepared. G4-EN32 | G4-LA14 | G4-HR4 | G4-HR5 | G4-HR6 | G4-HR10

Chart. 2012: 5.122, 2013: 4.958, 2014: 5.513, 2015: 5.540.
Fachada de uma agência Bradesco

The supplier selection process uses the RFI (Request for Information) tool, which comprehends questions such as the non use of child, forced or slave labor, health and safety management, as well as environmental and social practices. The intention for 2016 is to finalize the implantation of the supplier approval process in the new Supplier Management System, which enables the entire Organization to access a supplier’s records.

The defense and protection of human rights, labor rights and children’s and adolescents’ rights are principles of the Organization, set forth as a public commitment in Management Policies: Social and Environmental Responsibility and the Code of Ethics.

Additionally, the supplier approval system addresses freedom of association and collective bargaining for third-party employees, as well as other labor practices. These aspects are also taken into account in the new supplier management tool and in the supplier selection process by means of the RFI (Request for Information).

Under the system, improvement plans are determined, including adaptation measures and actions to comply with legislation. The process is complemented by on-site audits.

With the system, potential supplier risks are mitigated after the candidate has been approved. Since the second half of 2015, approved suppliers have been invited to update their records in the new system and new suppliers have registered directly to participate in the approval process.

In 2015, 1,070 RFIs were filled out by suppliers, assessing social and environmental, company registration, commercial and economic-financial criteria.

The mitigation of risks with suppliers is therefore no longer a departmental question, being considered an organizational risk in accordance with the principles of the BM&FBOVESPA Corporate Sustainability Index (ISE) and the Dow Jones Sustainability Index. In 2016, the bank will complete the implantation of the approval module in the new system.

For suppliers considered to be critical, Bradesco conducts a technical assessment whereby companies not meeting the established criteria are disqualified from supplying products or providing services to the Organization. To complete the process, all supplier and service provider contracts include clauses on anti-corruption, forced and child labor, as well as social and environmental questions. Relations with suppliers are governed by the Bradesco Corporate Code of Ethical Conduct, by the Procurement Professionals Code of Ethical Conduct and by the Corporate Anti-Corruption Policy.

Social and environmental responsibility in the acquisition of products and services

Social and environmental responsibility is a fundamental question in the definition of partners, who are seen as key elements in maintaining the standards of quality, innovation and efficiency adopted by Bradesco. To drive supplier awareness about the importance of these questions, every year the bank organizes the Bradesco Suppliers Encounter, as well as workshops and training courses. In 2016, UniBrad will launch a TreiNet program on the Sustainable Value Chain, aimed at raising internal buyers’ and suppliers’ awareness of the importance of adopting best economic-financial and social and environmental management practices.

In line with the Corporate Sustainability Policy, the Organization gives preference to purchases or services based on the social and environmental practices of the suppliers, as well as continually questioning the characteristics of products and services and analyzing their social and environmental impacts.

Through its Supplier Engagement program, Bradesco drives awareness by informing the supply chain about its sustainable practices. Supplier adhesion to these principles has a major impact on the reduction of waste, waste management and water and energy savings.

Supplier engagement in the SA 8000 standard program

The Bradesco Organization continually assesses the social impact of its operations and the conditions under which its employees, partners and suppliers work. Based on SA 8000 Certification, it runs its Supplier Engagement Program, which is divided into five stages:

  • Map – applied in identifying the suppliers.
  • Make aware – training for companies and service providers.
  • Monitor – visits to companies’ head offices and service suppliers’ workplaces.
  • Guide – identification and/or inclusion of problem/issue. The Organization detects the cause of the problem and provides the partner with corrective and/or preventive solutions.
  • Recognize – the Organization increases the scores of partners that do not present problems/issues in the relationship between the parties.
Suppliers must comply with SA 8000 requirements
Suppliers must comply with SA 8000 requirements

All participants must sign a letter of intent agreeing to comply with the SA 8000 Standard requirements.

The program includes classroom training for suppliers so that their employees know how to use the communication channels which, like the program itself, are available for handling complaints. Deviations are addressed with corrective plans accompanied by internal audits conducted by an independent body. In 2015, 289 suppliers, all considered critical with respect to social risks, took part in the Engagement Program. G4-HR12

Regarding labor practices and human rights questions, in 2015 the Supplier Engagement Plan mapped 189 companies as presenting potential risks of negative impacts. Of this total, improvement plans were developed for 24 suppliers in order to mitigate significant actual or potential impacts. G4-LA15 | G4-HR11

DMA Assessment
The assessments of compliance with the SA 8000 standard, as well as the independent audits and the channels for reporting deviations enable systematic and periodic analyses of the results of the management processes by means of working meetings and critical analyses. The performance results in the SGRS (SA 8000) are presented in critical analysis meetings, over the intranet and in face-to-face meetings with regional managers, ensuring the information is disseminated.

Assessment of impacts on human rights G4-HR11
  Suppliers submitted to assessment Suppliers with negative impacts Receiving improvement plans
2015 921 183 24 (13%)
2014 490 180 (37%) 20 (11%)
2013 522 248 (48%) -

Description of the Organization’s goals and targets:

Initiate implantation of supplier management system Achieved The implantation of the system for the supplier management approval module was initiated in the second half of 2015. Finalize the implantation of the supplier approval module in the new supplier management system.
Continue Procurement Training program Achieved The Procurement Training program was continued in 2015. Continue Procurement Training program at basic and intermediate level, with diverse internal and external training courses given by employees in the business cells. The subjects include Negotiation, Tributes, Purchasing Intelligence and TCO, among others.
Organize 13th Supplier Encounter Achieved Event held on December 3rd, 2015 – the theme was the water crisis. For 2016, social and environmental risk management tools and mechanisms will be implemented; similarly the standards and manuals will be reviewed and updated to drive continuous improvement.
Organize 8th CDP Supply Chain Encounter

Achieved Event held from April 29 to May 7, 2015. In 2016, a mechanism for tracing information about social and environmental risks and impacts at suppliers and in projects financed by the company will be developed (pilot project).
Review Supplier Social and Environmental Assessment and Monitoring program In progress With the publication of Resolution No. 4,327, the Social and Environmental Risk Standard was prioritized, defining the scope of analysis. In 2016 the review of the Assessment and Monitoring program will begin. Continue to improve management and development of the Organization’s suppliers aimed at mitigating social and environmental risks through compliance with the Social and Environmental Risk Standard and the review of the tool in the Supplier Social and Environmental Assessment and Monitoring program.