It is important to notice that Fundação Itau Unibanco hires Itau Asset management, PRI signatory, as its primary asset manager (98% of AUM). Itau Asset has a team of ALM specialists and portfolio managers who works close to Fundação Itau Unibanco's CIO.
The ESG Integration Method of Itau Asset Management incorporates ESG variables into its fundamental equity valuation models and fixed income issuers solvency indicators, by analyzing ESG impacts on cash flow and the cost of capital. The objective is to adjust individual target stock prices and solvency indicators to anticipate events that result in value creation or destruction. This approach provides flexibility to portfolio managers, who use the ESG valuation inputs to varying degrees, according to their specific strategies and mandates. The method does not use negative screening to exclude sectors or companies and so reduce the investment universe.
Since 2015, Fundação Itau Unibanco is committed to invest in timberland asset via hired external managers and, after a careful due diligence, we opted to invest BRL 21 Million with Copa Investimentos, PRI signatory.