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UNLOCKING THE TRANSITION:

how Brazil’s financial sector is turning

ambition into action

Fabiana Costa – Head of Sustainability at Bradesco

As the world prepares for COP30 in Belém, Brazil’s The Rise of Sustainable Finance
role in the global transition is once again under In recent years, the financial sector has advanced
the spotlight. The country combines one of the in integrating climate-related metrics into credit
world’s richest reserves of natural capital with a and investment decisions. Tools such as the
mature financial system — a combination that estimation of financed emissions, climate stress
gives it unique leverage to design pathways testing and portfolio alignment models are
reconciling economic growth, inclusion and increasingly used to steer business strategies.
conservation.
Bradesco was the first financial institution in
For Brazilian banks, the challenge is clear: to Brazil to measure its financed emissions under
translate climate ambition into concrete financial the Partnership for Carbon Accounting Financials
solutions that reach all regions and sectors. Over (PCAF) methodology, incorporating these results
the past decade, financial institutions in Brazil have into risk management and portfolio steering
developed methodologies, governance structures processes – a key step towards aligning finance
and instruments to embed sustainability at the with climate science.
core of their operations. This evolution has been
both technical and cultural — from measuring risks Banks have also expanded access to sustainable
to identifying opportunities that deliver social and finance instruments — including green, social and
environmental value. sustainability-linked loans and bonds — to support
clients in decarbonisation and adaptation projects.

Community of Tumbira, on the banks of the Rio Negro, where financial inclusion and local entrepreneurship have helped
strengthen sustainable livelihoods. Photo: © Ednei Fialho Lopes.

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