Risk approach and opportunities related to climate change

The approach used to foster opportunities related to climate change has a direct and indirect impact that can be positive, changing the society’s perception of institution’s management of climate-related and environmental matters, or negative with possible credit losses that can directly impact results expected by shareholders/investors, according to the control tools than can mitigate climate change-related events.

Material topics


Impacted stakeholders:

  • Shareholders/investors
  • Customers
  • Employees
  • Community/society
  • Suppliers and partners
  • Government
  • Environment
  • Banrisul Operations



Risk approach and opportunities related to climate change​

Total direct and indirect (Scope 1, 2 and 3) GHG emissions in metric tonnes of CO2 equivalent


Type of emission 2020 Amount (in TCO2e)² 2021 Amount (in TCO2e)
Total direct emissions (Scope 1) 639.7 958.9
Total indirect emissions (Scope 2) 2,067.6 4,642.3
Total other indirect emissions (Scope 3) 31.0 5,054.4
Biogenic emissions of CO2 6.9 871.9
Other - HCFC 22 (R22) 2,970.7 3,010.0
Total¹ 5,716.0 14,537.5

¹From the reference year 2020 to 2021, emissions from energy consumption increased mainly due to the growth in the emission factor, arising from the water crisis and the need to use energy from sources that contribute to Greenhouse Gas emissions. In 2021, the group’s companies were also included in the GHG Inventory, leading to an increase in emissions due to an improvement in data gathering.
²2020 was the year in which Banrisul prepared its first GHG inventory, using this year as the basis for its future inventories.

For purposes of calculating scope 1, 2 and 3 emissions, all gases (CO2, CH4, N2O, HFCs, PFCs, SF6, NF3) were considered, according to the methodology adopted by the Brazil GHG Protocol Program.

In the second GHG inventory, prepared in 2021, the Bank included rented cars in scope 1 emissions, as well as an analysis of electricity consumption at some leased venues in scope 2. In 2020, scope 3 included only business air travel, and for 2021, emissions related to transport and distribution (Upstream), business air and land travel, and employee commuting (home – work) were added.

Since the preparation of the first inventory in 2020, Banrisul has planned advancements and improvements in data gathering and in projects to mitigate emissions. For the upcoming cycle, the Institution plans to begin calculating emissions in the credit portfolio and in some other scope 3 categories, such as waste generation. In addition to officially disclosing the goal of reducing emissions by 2030, the Bank plans to adhere to some framework for managing its emissions.

The Renewable Energy Project is progress with the goal of migrating Banrisul’s energy consumption matrix to renewable sources, expected to start in 2022 and gradually transition the Bank’s branches and administrative buildings.

The Bank is exposed to transition risk arising from events associated with the transition to a low carbon economy, as well as legal and regulatory changes, technological innovations, changes in products and services supply and demand, unfavorable perception of clients, the financial market or society in general related to climate change.

Another risk that can impact the Institution is physical climate risk, which refers to the possibility of losses arising from frequent and severe weather conditions or long-term environmental changes. Examples of this type of risk include extreme weather conditions, such as droughts, floods, storms, cyclones, frosts and forest fires; and permanent environmental changes, including rising sea levels, scarcity of natural resources, desertification, and changes in rainfall or temperature patterns.

From the Integrated Risk Management process, in addition to monitoring the regulatory environment and customer perception, management includes consulting information on public lists and verifying the activities, products and services subject to social and environmental legislation. Therefore, the Institution seeks to ensure regularity at all levels of its operations. As for operations, Social, Environmental and Climate risks inherent to the activity’s economic industry are identified, based on the National Registry of Economic Activity (CNAE – Cadastro Nacional de Atividade Econômica) code.

Climate risk management costs are not calculated individually but are considered together with the resources allocated to the Institution’s risk management.