In a world increasingly shaped by climate change, social inequality and economic uncertainty, the role of financial institutions is being redefined. Beyond profitability, there is growing demand for models capable of delivering long-term value while addressing pressing environmental and social challenges. Within this context, the credit union system has emerged as a powerful and scalable solution. By combining financial strength with a deep commitment to local development, cooperatives are uniquely positioned to channel resources in a more inclusive and impactful way. This model gains even greater relevance at scale, as demonstrated by Sicredi, one of Brazil’s largest cooperative financial institutions, with over 10 million members, more than 3,000 branches and presence in over 2,200 municipalities.
This consistent and large-scale impact has recently been recognised in the World Finance awards, where Sicredi was named the winner in the category ‘Outstanding Contribution to Sustainable Finance by a Cooperative (LatAm).’ The award recognises institutions that are not only advancing sustainable finance, but also reshaping how financial systems contribute to inclusive and low-carbon development.
Long-term development
At the core of Sicredi’s strategy is the integration of environmental and social criteria into credit decisions, ensuring that financial solutions actively contribute to long-term development. This approach has driven the expansion of its green credit portfolio, which reached $17.8bn in 2025, reflecting a consistent effort to align financial performance with sustainability outcomes. The green credit portfolio is defined through a robust classification framework that combines sectoral criteria, eligible credit lines and clearly identified environmental and social benefits. Sicredi adopts the sustainability taxonomy proposed by the Brazilian Banking Federation (Febraban), which is aligned with internationally recognised references such as the Climate Bonds Initiative, the European Union taxonomy and the Social Bond Principles.
The cooperative also plays a leading role in supporting under-represented groups
In practice, operations are classified as green when they support activities that contribute to the transition to a low-carbon economy, climate adaptation and resilience, sustainable land use, renewable energy generation, resource efficiency, biodiversity conservation or social inclusion in vulnerable territories. In addition to the purpose of the financed activity, credit decisions also incorporate social, environmental and climate risk assessments, ensuring consistency between sustainability outcomes, financial soundness and long-term development.
Within this strategic framework, $1.9bn was allocated to low-carbon agriculture. In parallel, Sicredi has also established itself as a leading financier of renewable energy, with a portfolio that has reached $4.3bn, particularly supporting the expansion of distributed solar generation. These investments enable producers to implement techniques such as crop rotation, efficient water use and biodiversity conservation, strengthening both environmental outcomes and agricultural resilience. Sicredi’s impact extends beyond environmental initiatives. Through its operations in small municipalities, rural areas and underserved regions, the cooperative plays a critical role in expanding financial inclusion and fostering local economic development. As a result of this presence, $5bn was directed to micro and small enterprises located in municipalities with below-average Human Development Index levels.
Economic empowerment
The cooperative also plays a leading role in supporting under-represented groups. Its portfolio dedicated to women-led businesses reached $1.8bn in 2025, reinforcing access to credit as a driver of economic empowerment, income generation and social inclusion. Strategic partnerships further amplify this impact. Collaborations with international institutions such as the International Finance Corporation (IFC) enable the mobilisation of global capital into local initiatives, combining financial resources with deep territorial knowledge. This blended approach strengthens the capacity to deliver scalable and measurable impact across diverse regions.
Taken together, these elements demonstrate that Environmental, Social and Governance (ESG) considerations at Sicredi are not treated as a separate agenda or a reputational layer, but as an expression of its very essence and an integral part of its business model and of the cooperative system itself. The integration of social, environmental and governance criteria guides strategic decisions, credit allocation, risk management and relationships with members and communities.
As sustainability becomes central to global financial systems, Sicredi demonstrates that the credit union system can play a transformative role in shaping a more inclusive and resilient economy. By aligning financial performance with social and environmental impact, the cooperative model offers a compelling pathway for sustainable development – not only in Brazil, but as a reference for financial systems worldwide.
