Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 70

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 70
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 ecosystems, communities and the local flora and fauna. If a client in the development of its project causes environmental damage, such as the contamination of soil and water pollution above the legally acceptable limit, and/or is responsible for environmental disasters, it has a direct obligation to repair the damage caused. Consequently, depending on the magnitude of the socio-environmental impact, a client may have its financial structure compromised. Such events could adversely affect our reputation, financial condition, operating results and the market value of our shares and ADSs.
 
3.D.20.10-02 Climate change may have adverse effects on our business.
 The risks associated with climate change are gaining increasing social, regulatory, economic and political relevance, both nationally and internationally. New regulations related to climate change may affect our operations and business strategy, causing us to incur financial costs arising from physical climate risks and risks arising from the transition to a low carbon economy.
 Physical climate risks are related to the projection that the global climate will continue to change, which is expected to result in an increase in the severity and frequency of chronic and acute weather events. These events could potentially affect the global economy, resulting in significant changes in asset prices and industry profitability. Damage to borrowers’ properties and operations can impair asset values and the credit quality of clients, leading to higher delinquencies, write-offs and impairment charges in our portfolios. In addition, our facilities may also suffer physical damage due to weather events, which may represent an increase in our expenses.
 Regarding transition risks, we recognize that economic shifts towards a low-carbon future are needed. The global market may face significant and rapid developments in market dynamics, technologies and legal and regulatory risks, which are capable of impacting our business. In addition, we expect to face greater scrutiny of the business we conduct from regulators, investors, civil society and the public.
  
30 – Form 20-F 2024 | Bradesco
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The effects of physical and transition risks may also represent losses for our clients, affecting the profitability of companies and their ability to repay loans. Thus, if we do not adequately incorporate the risks associated with climate change into our risk framework to adequately measure, manage and disclose the various financial and operational risks that could result from climate change, or if we do not adapt our strategy and business model to regulatory and market changes, we may experience a material adverse impact on our growth rates, competitiveness, profitability, capital requirements, cost of financing and level of compliance.
 Furthermore, our financial and operating performance may be adversely affected by extreme weather events such as