Integrated Annual
Report 2023
Integrated Annual
Report 2023
Contents
Introduction
About XP
Value creation
Strategy and management
Financial performance
Quality in relationships
Society
Environmental responsibility
Corporate Governance
Risks
GRI and SASB index
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About this report
GRI 2-2 | 2-3 | 2-5 | 2-12 |2-14
Consolidated Financial Statements 2023-2022-2021
Presents the financial performance of XP Inc. for the year, in accordance with the International Financial
Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), known as the IFRS
Welcome to the Integrated Annual Report of XP Inc., a Brazilian company that went public in
Accounting Standards. The financial statements were submitted to evaluation by independent auditors.
2019 on the U.S.-based second largest stock exchange in the world, Nasdaq.
As part of our commitment to transparency and creating long-term value for our audiences,
Integrated Annual Report 2023
we have consolidated information in this document on how we impact and are impacted in our
Provides a more comprehensive view of business management and performance in alignment with our short,
interactions and relationships.
Our financial and non-financial data is reported in two annual reports, which consolidate the
performance of XP Inc. and its subsidiaries, in line with the requirements of Form 20-F, filed
annually with the United States Securities and Exchange Commission (SEC) and posted on our
Investor Relations website.
Period covered by reports: January 1st to December 31st, 2023.1
: the XP group is currently made up of 57 entities, including XP Inc. and our
1 Entities included in this report
subsidiaries, of which 53 are controlled by us, 45 are incorporated in Brazil and 8 are incorporated in other countries. For
more information, go to page 44 of the 20-F Form submitted to SEC (U.S Securities and Exchange Commission) in April 2024.
GRI 2-2
medium and long-term strategies. It expresses the opportunities and risks related to social, environmental
and governance issues, represented by the acronym ESG (Environmental, Social and Governance), and our
ability to create value for stakeholders.
Adopted standards and guidelines
The 2023 Integrated Annual Report was prepared under the guidance of the 2021 Universal Standards of
the Global Reporting Initiative (GRI) and the standards of the Sustainability Accounting Standards Board
(SASB) and the Integrated Reporting Framework, of the Value Reporting Foundation. It also considers the
recommendations of the International Sustainability Standards Board (ISSB).
Responsibility for information
GRI 2-14
The accuracy and integrity of the content of this report is under the responsibility of the Board of
Directors of XP Inc. The CFO, who was also responsible for the Investor Relations area during the process
of preparing this report, contributed to creating the content, until the end of his term in April 2024.
The document was validated in May by the Audit Committee, the Board of Directors, and the Executive
Committee. The materiality update, conducted between the end of 2023 and the beginning of 2024, was
also validated by these three decision-making bodies.
For more information, contact: relacoes.investidores@xpi.com.br
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Dialogue channels with our audiences
GRI 2-29
We maintain channels of dialogue and frequent interactions with our stakeholders in order to
understand the real and potential impacts of our organization for each group, define actions to
prevent and mitigate potential negative impacts and enhance positive ones.
Stakeholder
Dialog mechanism
Satisfaction survey
SAC
WhatsApp +55 11 4935 2720
Frequency
Yearly
Individual and
Corporate Clients
Telephones: 11 4003 3710 (capitals and metropolitan
regions); 0800 880 3710 (other locations); 55 11 4935 2701
Permanent
(customers abroad); 0800 771 0101 (people with hearing or
speech impairments); 0800 772 0202 (questions, guidance
and complaints)
Ombudsman: 0800 722 3730
E-mail: relacoes.investidores@xpi.com.br
Permanent
Permanent
Form for sending questions, concerns and suggestions
Permanent
Investors
Earnings results conferences
XP Investor Day
Annual Shareholders Meeting
Pulse survey
Quarterly
Yearly
Yearly
Monthly
Collaborators
Society
Confidential Reporting Channel 0800 721 0744
Permanent
XP Educação Service
55 31 3047 3611 (Monday to Friday, 11 a.m. to 7 p.m.)
Permanent
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Message from senior management
Letter from the CEO
GRI 2-22
“
In recent years, the financial system has undergone a technological transformation that
has definitely changed the way Brazilians use banking products and services to transform their
lives. We at XP Inc. are proud to have contributed to breaking paradigms in this industry.
From the beginning, our mission has been to strengthen the role and autonomy of citizens in
terms of investments, democratizing access to opportunities that, until recently, were practically
inaccessible to small investors. We made a true revolution in this market and, in 2023, we continued to
implement our short, medium and long-term strategies, focused on quality, improving governance,
digital transformation, growth and creation of new businesses to expand the services offered to
customers.
The year began with an uncertain macroeconomic outlook marked by deteriorating credit, a decline
in business investment and high interest rates. We were able to deftly respond to this extremely
challenging scenario. We maintained cost discipline and capitalized on emerging opportunities,
demonstrating the resilience of our business model.
In addition to the challenges faced by the market as a whole, we are experiencing an intense
period of adaptations designed to solidify our transition from an investment company to a multiple
financial conglomerate that, over the last three years, has begun to embrace the activities of
commercial banking, private banking, wholesale and insurance, among others.
During this transition, our pioneering culture has demonstrated all its power. For the first time, we
surpassed R$1 trillion in client assets under custody, a monumental milestone that we celebrate
as it signals the trust placed in us by our clients.
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Throughout the year, we continued to focus on our three main strategic pillars: 1) Leadership in investments;
We have evolved in incorporating environmental, social, climate and governance themes into our activities
2) Improve our cross-sell capacity; and 3) Wholesale synergies. At the center of these pillars is our
and decisions. This is not a linear journey, as it requires a learning curve that we continue to build through
commitment to a culture of quality – our third wave of differentiation.
investment in technology and the internal spread of the ESG culture.
Throughout the year we also had the acquisition and subsequent integration of Banco Modal, which marked
In 2023, for example, training on the topic also became mandatory for the more than 14 thousand investment
a significant step in our journey, expanding our capabilities and improving the set of products and services
advisors who work with us. We saw a significant increase in ESG assets under custody, reaching R$13.4
offered to customers. This integration is almost complete at this point, providing revenue synergies and
billion, improved risk management processes on all business areas and submitted 100% of our operations
cost efficiencies.
and suppliers, both individuals and companies of all sizes, to social, environmental and climate risk analysis.
Our New Verticals and Large Enterprises & SME initiatives continued to thrive, playing a significant role
Deepening this perspective, at the beginning of 2024, we recalibrated public goals and commitments in
in the diversification of revenues – over 17% of our total gross revenue for the year, including Retirement
synergy with our material topics, advanced in improving governance, and published our Human Rights
Plans, Cards, Credit, Insurance, Foreign Exchange, Global Investments and Digital Account. The recognition
Policy.
of our credit card as the Best in Brazil by Melhores Cartões is proof of our commitment to offering superior
quality products and services.
Our priorities for this year involve the quality of service to our customers, governance in the people,
management and risk pillars, cost discipline to maintain long-term competitive advantages and the
One of the pillars of our mission has been to focus more on the quality of what we offer to customers.
consolidation and expansion of our new verticals, mainly the Wholesale Bank, in the Corporate and Large
We are dedicated to ensuring access to premium services that were previously available only to Private
Corporate segment, and the Digital Bank, in the individual and small and medium-sized companies segment.
customers. By extending these offerings to high-income customers, we want to break down barriers and
create a more inclusive and scalable financial ecosystem. The initiative reflects our past successes in
making premier investment products accessible to a wider audience, emphasizing our commitment to
investment excellence.
As a result, we posted a positive financial performance with record quarterly revenues and profitability.
And we closed the year with an EBT (earnings before taxes) 14% higher than that recorded in 2022, while
net profit increased by 9%. Another highlight was the Efficiency Ratio: it was the best we have obtained
since the IPO on Nasdaq in 2019.
Growth, for us, means going far beyond the pursuit of new financial heights. We want to conduct this
process guided by a sustainable development strategy that considers the impacts and opportunities for
business and our entire value chain.
We remain increasingly confident in our business model and are convinced that our commitments and
developments reinforce our purpose of continuing to transform the financial market to improve people’s
lives. Enjoy the material!
”
Thiago Maffra
CEO of XP Inc.
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Letter from the Chairman of the Board
GRI 2-22
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“
I like to look back because the past tells us a lot about who
we are and the way we shape our future. XP was born in battle in 2001,
and we discovered paths while continually reinventing ourselves to
get where we are. We didn’t know it yet, but we were building the
foundations of our culture at that time.
Big dreams, an open mind, an entrepreneurial spirit and customer
focus are values that have guided our attitudes and decisions since
the beginning. We never imagined that our small office of independent
agents, which distributed
investment products from another
brokerage, could go public on one of the largest stock exchanges in
the world. We arrived at Nasdaq, in the United States, because we
believe in the impossible.
From the beginning, we understood that financial education would be
essential to form an investor prepared for the debanking that would
happen in Brazil, as happened in other markets. We are proud to
lead this movement, with a technological and financial solution that
provided autonomy and strengthened the investor.
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Likewise, we achieved other major milestones, consolidated in 2023, after an intense period of
transformations and investments that began in 2019 with the IPO. Until then, we were a company
with 2,000 employees and, today, we are a team numbering over 6,600 people.
Dreaming together, we created a business where everyone feels ownership, is able to provide their
opinion and raise the yellow flag when they believe something doesn’t make sense — all with autonomy
and a desire to learn, without fear of making mistakes and knowing how to correct mistakes quickly.
Here, everyone faces daily challenges, learns, grows and strives to excel. This is what we usually call
a culture of performance, which has been our source of innovation.
In this environment full of opportunities, meritocracy and a long-term mentality and a focus on the
customer in search of continuous excellence prevail. With the clarity that what brought us to our
We believe that it is possible, and necessary, to embrace the challenges of our time and generate
positive results for our employees, our shareholders and the entire value chain, improving our
skills in social, environmental and governance issues. To this end, the material themes presented in
this document serve as a guide for the strategies led by senior management, unfolding in XP Inc.’s
business, processes and daily activities.
Therefore, we will continue to grow and promote a performance that exceeds 2023, a year that
goes down in our history for paving the way for a new cycle of expansion. Our ability to overcome
obstacles helped us perform superbly in a period marked by a very challenging macroeconomic
environment.
And we move forward, firm in our intention to continue transforming the financial market to improve
current level will not necessarily take us to the next stage, we need to review the formula, no matter
people’s lives.
how successful it has been, learn new skills, acquire other habits and think about perpetuity from
the company.
This is the context in which we continue to transform our businesses to foster an ESG culture.
We began this journey in 2020 and have now perfected our strategy, guided by the review of our
materiality. It captured perceptions about what is relevant to our stakeholders and to preserving
the sustainable performance of the business in the medium and long term.
In our reality, adequately addressing social, environmental and governance issues has become
imperative to better manage risks, attract investors and talent and reduce costs for raising capital,
among other factors that influence the longevity of organizations.
”
Guilherme Benchimol
Chairman of the Board of Directors of XP Inc.
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Materiality
GRI 2-4 | 2-14 | 2-23 | 3-1 | 3-2 | 3-3
This year, we conducted the materiality update developed in 2020, when XP was still in the early stages of its ESG journey. Since then, we have experienced strong transformations in business and felt the need to revisit
the material themes mapped to understand whether they remain relevant, both in the current context of the company and the market, and for our stakeholders.
We therefore seek to identify the issues with the greatest potential for positive and negative impacts on revenues and that may influence our ability to continue creating value for our stakeholders over time. The
methodology adopted was based on the GRI guidelines and covered the following steps:
Identification of material
topics
Stakeholder engagement
Materiality review
Contextualization and
validation of materiality
The work began with a benchmarking of six
The desk review stage resulted in a list of 40 relevant topics, and the
By analyzing insights captured on
The material topics were contextualized to
financial institutions with which we decided to
21 most aligned with our strategy were prioritized and submitted
the desk review and interviews with
facilitate the management of the initiatives
compare ourselves, observing their ESG strategies,
for stakeholder evaluation. Insights from our stakeholders were
stakeholders, and considering the
that will be prioritized and published by XP
commitments and practices. At the same time, we
captured through in-depth interviews with the company’s senior
interconnections with the company’s
Inc. in this report and in the next period, in
revisited global and sectoral guidelines (SASB and
management and through a survey submitted to a selected group
long-term strategies, we carried
adherence to the Sustainable Development
GRI standards) and key financial industry indices
of strategic suppliers, business partners, the community, customers
out a materiality review. The 21
Goals that we chose to promote. The result
(S&P, MSCI and ISS ESG), in addition to studies on
and investors.
trends produced by these indices and the World
Economic Forum (WEF). This allowed us to deepen
our understanding of the main emerging topics on
the global stage.
At the end of the in-depth interviews and online surveys,
stakeholders were invited to assign a score from 1 (low relevance)
to 5 (high relevance) for each of the 21 material topics. Weights
were also assigned for the final balance of the scores depending on
We also analyzed the Brazilian regulatory context
the expressiveness of each audience for the business. The ratings
(Central Bank, CVM and SUSEP) and other
obtained in the survey made it possible to identify the relevance of
international markets that have taken the forefront
each topic for stakeholders and its impacts on business.
on sustainability issues in recent years. Finally, we
reviewed XP Inc.’s internal documents and policies.
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topics submitted to the research
of the materiality review was approved by
were grouped into thematic blocks,
the Audit Committee and Board of Directors,
maintaining the philosophy adopted
whose members made a commitment to
in the previous materiality. In the
the guidelines.
end, the relevance of the four topics
prioritized since 2020 was confirmed,
and two new topics were added.
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Integrated Annual
Report 2023
Our material topics
ESG integration in processes, products and
services
Customer centricity, innovation and
technology
NEW
Diversity and inclusion
Create an internal environment that values and promotes
Offer financial products and services, in the best interest of
Ensure quality services, prioritizing customer focus and centrality
diversity and inclusion and carry out actions that encourage the
our clients, that promote solutions focused on ESG topics and
through technological innovation.
adoption of D&I practices in society and in relationships with our
support the advancement of our clients on their sustainability
different audiences.
journeys.
Ethics, human rights, compliance and
transparency
NEW
Education and financial inclusion
Data security and privacy
Promote inclusion through mechanisms that facilitate access to
Ensure security controls and data protection with public and
Promote ethical conduct, human rights, compliance and
financial products and services and, at the same time, contribute
transparent policies and risk monitoring.
transparency in our practices and in the value chain, with policies
to expanding financial education in society, based on alliances with
and processes to prevent, address and report practices such
strategic partners.
as money laundering and corruption, in addition to actions
that ensure fairness and responsibility in all communication
processes.
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Highlights of the year
Our team
Customer
base
Sustainable
business
6.667 employees allocated to
4.5 million customers 17%
R$13.4 billion in ESG assets
Efficiency
4% cost reduction
Dilution of costs vs. turnover
36,3% Efficiency Ratio
570bps better than the
one recorded in 2022
Capital
base
R$15 billion in Tier I Capital
different companies
14 thousand independent
advisors throughout Brazil
1.4 million active digital
accounts
NPS 72
Social, Environmental and Climate Risk
under custody
346% from 2020 to 2023
R$23.4 billion in green bonds
issued
28% of the Investment Banking
fixed income issuances linked to
the green economy
38 ESG investment funds on our
Business
• 100% of the corporate and
• 48,22% reduction in the
platform
private client portfolio to social,
intensity of emissions financed
environmental and climate scrutiny
from the credit portfolio from
R$1.1 trillion of client assets under
custody 19%
Profitability
14% growth in EBT (earnings
before taxes)
R$15.7 billion gross revenue
R$21 billion in the credit portfolio
R$3.9 billion net profit
23%
• 100% of suppliers submitted to social,
environmental and climate analysis
• 100% of new products and
services evaluated from a social,
environmental and climate
perspective
25.6% ROTE (Return On
Tangible Equity)
R$40 billion TPV Cards
• 100% of Greenhouse Gas Emissions
+17% in gross revenue from new
neutralized
R$20 billion net worth
business verticals
• Greenhouse gas inventory submitted
2021 to 2023, reaching 6.24
tons of carbon per each
million of Reais invested
• -2 percentage points in
climate sensitivity of the credit
portfolio from 2021 to 2023,
reaching 12.72%
• 100% of the energy consumed
in Brazil comes from renewable
sources, based on the purchase
R$3.76 billion in assets under
management by ESG funds
51 ESG products distributed on
our platform
187 thousand clients with ESG
investments
201% from 2020 to 2023
12% of all assets of individual
clients in Brazil
to external audit
of i-Rec
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ABOUT XP
We have built competitive advantages that have allowed us to expand our operations and generate a new
experience based on finance, investments and information.
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Who we are
GRI 2-1
Where we are
A company created in 2001 in a small office
in Porto Alegre (RS), which made financial
education and the inclusion of Brazilians in the
investment market the engine of its growth. In
just over two decades, we have become one of
the leading financial companies in the country,
preserving the democratization of access to a
wide range of financial services in our DNA.
Headquarters
• Cayman Islands
Espaços XP
• Manaus (AM)
• Brasília (DF)
• Fortaleza (CE)
• Recife (PE)
487 outsourced offices that distribute
products throughout Brazil
Branch offices
• Leblon and Botafogo (RJ)
• Belo Horizonte (MG)
• Miami
• New York
AM
1
RO
1
PA
3
MT
1
MS 1
MA
2 PI
2
CE
7
BA 12
RN 1
PB 2
PE 6
AL 1
SE 1
TO
1
DF 4
GO 9
MG 41
ES 5
SP
236
Main office
• City of São Paulo
PR 34
RS 33
SC 16
RJ 70
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Our products and services
Investments
Large companies and capital markets
• Public and private fixed income (bank securities, private credit and government
• Issuances of local debt securities (CRI, CRA, CDCA, FIDC and LF), hybrid securities
securities traded in the primary and secondary markets)
(FII, FIP and FIAGRO) and international securities: bonds, private placements,
• Variable income (shares, futures, listed funds, alternative funds, derivatives, structured
notes)
syndicated loans and structured private credit operations
• Financial instruments such as swaps
• Investment funds (+600) from XP Asset Management and third parties
• OTC derivatives
• International investments (dollarized fixed income, stocks, ETFs, REITs, ADRs)
• Financial advice on IPO, follow-on, block trade and tender offer
• Financial advisory
• Mergers and acquisitions (M&A)
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Retail banking
• Digital account
• Rico and XP brand credit cards
• Collateralized credit (with guarantee linked to the equity invested in XP)
• Currency Exchange
• Insurance (life and property and casualty insurance)
• Private pension, with proprietary and third-party plans
Institutional
• Trading desks
• Corporate access
• Support staff
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Our history
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• XP Investimentos founded in
Porto Alegre (RS)
• Founding of XP Asset
Management
• Valued at R$500 million,
• Valued at R$1.2 billion, XP
XP receives a private equity
receives a capital contribution
investment of R$100 million
of R$570 million from the
from the British management
management company
company Actis
General Atlantic
• 70 thousand customers
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2007
2011
2014
2001
2006
2010
2012
• Creation of XP Educação with
a focus on financial education
• Start of the Securities
Brokerage, following the
• Acquisition of Infomoney, the
• Acquisition of Clear, a stock
largest investment website
brokerage focused on
acquisitions of Manchester and
in Latin America
investor traders
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AmericaInvest
• #1 in the B3 ranking in asset
volume among independent
brokers
• Launch of XP Securities in
Miami (USA)
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• Itaú Unibanco acquired 49% of XP
shares, an investment of R$12 billion
• Start of activities as a commercial bank
• Introduction of digital account, XP credit and debit
(Banco XP)
cards, Rico credit card and life insurance
• Reduced brokerage fees to support
• Launches of international investment platform for
investors
retail and XTAGE for digital asset trading
• Buyback of Itaú Unibanco shares
2016
2019
2021
2023
2017
2020
2022
• Largest independent securities
• The largest IPO of a Brazilian
• Launch of XP Inc. BDRs on B3
• Improvement in governance, with the
brokerage in Brazil
company at the time on Nasdaq (USA)
• Announcement of the Itaú Unibanco
• Acquisition of Rico, a 100% virtual
• Company valued at R $62.5 billion
spin-off
investment platform
• Introduction of the XP credit card, the
departure of Itaú from the XP Board of
Directors
• R$1 trillion in client assets under custody
first with investback in the country (a
• Opening of the Nasdaq trading session on
portion of purchases are transformed
Expert XP. It was the first time in its 50-
into investments)
year history that Nasdaq opened its trading
• Creation of the Instituto XP
• XP is a sponsor-investor of the
Olympic Committee and the Team
Brazil
session in Latin America
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VALUE CREATION
We leverage the synergies provided by our ecosystem to offer financial solutions, information and education,
helping to improve the lives of millions of people.
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Our ecosystem
GRI 2-6 I GRI 201-1
• Open investment platform
• Public and private fixed income
• Variable income
• Asset issuances (local, hybrid and international debt securities)
• Financial instruments such as swaps
• OTC derivatives
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• +600 investment funds from XP Asset Management
• Financial advice on IPO, follow-on, block trade and OPA
and third parties
• International investments
• Financial advisory
• Mergers and acquisitions (M&A)
• Digital account
• Rico and XP brand credit cards
• Collateralized credit (with guarantee linked
to the equity invested in XP)
• Currency Exchange
• Insurance (life and property and casualty
insurance)
• Private pension, with proprietary and third-
party plans
• Trading desks
• Corporate access
• Support teams
• Financial content
• Financial education
• Training of advisors
• Technology and AI training
• Training in data science for the
financial market
• Multi+ Platform
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XP Investimentos Foreign Exchange Broker is the main entity of the XP Group, with the highest
The largest and most complete communication ecosystem specialized in economics, finance, investments
concentration of employees. It provides securities brokerage and private securities issuance services
and business in the country has been part of XP Inc. since 2011. With a loyal and engaged community of
to institutional and corporate clients. It offers a wide variety of products and services tailored to each
more than 70 million readers, InfoMoney produces quality content across all formats and on dozens of
client profile, accessed through the investment platform.
platforms.
Banco XP S.A.
Authorized to operate by the Central Bank on October 11, 2019, Banco XP does business as a multiple bank
with commercial and investment activities, in addition to carrying out transactions in the foreign exchange
market. Since then, it has been expanding its range of products and services, including digital accounts,
An investment platform created in 2011 and integrated into XP in 2016 as part of our objective of
Rico and XP branded credit cards, life and property insurance, both proprietary and from other insurers
empowering Brazilians to manage their financial lives. It offers straightforward, quality content to guide
in the market. It also offers solutions for planning retirement, with its proprietary and third-party private
and empower customers when choosing their investments through the website or app. It also offers
pension plans.
financial services, such as a digital current account.
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Founded shortly after the creation of XP, in 2003, XP Educação is the result of the integration of two
The first company to offer zero brokerage fees in Brazil, primarily serving traders (professional investors),
schools: IGTI, which became a reference in technology education, and Xpeed, XP’s finance school. The
offering the best experience with zero brokerage and custody fees. Founded in 2012, it was acquired by
platform offers undergraduate, graduate and bootcamp courses for professionals who wish to excel
XP in 2014, receiving strong investments in technological infrastructure. It then began distributing fixed
in the digital economy, graduate courses in technology with artificial intelligence, a training journey
income assets and trading platforms.
for investment advisors with undergraduate, graduate and bootcamps, and another in data science
for the financial market. It also offers open and free courses. Some of the content can be accessed by
subscription through the Multi+ program.
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Expert XP platform
An investment content platform for beginners and experts. It
features a research group with more than 30 experts supporting
retail clients in Portuguese and institutional clients in English. It
offers a wide range of content, which includes insights on fixed
income, stocks, funds, REITs, asset allocation, economics and
politics, among others.
The largest investment event in Latin America, held annually
and assembles financial market professionals and executives,
public sector leaders, investors, experts in economics and finance,
entrepreneurs and influential personalities to discuss trends,
investment strategies, business opportunities, and other subjects.
• + 126.2 thousand participants in 2023
• 188 sponsors
• 250 journalists covering the event
• + 2.4 thousand articles published in the media
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Value creation model
CAPITAL
INPUTS | RESOURCES
OUTPUTS | RESULTS
Human
6.667 employees
+6 billion added to staff in the
form of Meritocracy-focused
management
63 eNP
Training of leaders and employees
Context of the
environment in which
we operate in 2023
• Highly regulated market (BACEN/
+14 thousand highly specialized
12th place in Interbrand’s ranking of the most valuable brands in
• Increase of ESG regulations and
Best investment advisory in Brazil, according to Datafolha
CVM/SUSEP)
Intellectual
financial advisors
Employer branding
Financial
Total revenue R$15.7 billion
Affordable financial products
and financial education
Social
Taxes
Natural
Tax incentive laws
Risk analysis processes
ESG Governance
Calculation of emissions in
scopes 1, 2 and 3
Growth of distribution channels
Manufactured
Digital technologies and
innovations
BUSINESS MODEL
Culture focused on the
customer, innovation,
continuous improvement
and entrepreneurial spirit
Brazil
demands
from
regulators and
Winner of the “Canal Investimentos” category of the iBest 2023
investors
award by popular vote
• Population
with
access
to
Net earnings of R$3.9 billion, an increase of 9% compared to
investments in Brazil
2022
Financial and technological education through Instituto XP
• High demand for skilled labor and
need to attract talent
Partnerships with local agents focused on educational solutions
• Uncertain macroeconomic outlook,
National Award and Financial Education Tournament
Sustainable investment solutions
Distribution of products labeled as ESG
ESG education for stakeholders
Cutting-edge digital products and services that address
customer needs
characterized by deteriorating
credit, downturn
in corporate
investments, default, high interest
rates
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Distribution of value added
GRI 201-1
In 2023, the direct value added generated by our ecosystem totaled R$15.4 billion, positively impacting
society, through the collection of taxes, employees, with salaries, benefits and charges, the longevity of
the business, with adequate compensation on equity, and customers, in the form of compensation on
third-parties capital.
Direct Economic Value Generated (R$ billion)
2021
2022
2023
13
14.2
15.4
Distribution of Value Added
Year
2021
2022
2023
Personnel and
charges
Compensation
on equity
Taxes, fees and
contributions
Compensation
on third-parties
capital
37%
46%
40%
41%
42%
42%
20%
7%
11%
2%
5%
7%
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Voluntary commitments and participation in external forums
GRI 2-28
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We are signatories to the Principles for Responsible Investment (PRI), the UN Global
Compact, the Carbon Disclosure Project (CDP) and the Partnership for Carbon Accounting
Financials (PCAF), which is a partnership among financial institutions with the objective
of developing harmonized methodologies for measuring Greenhouse Gas Emissions.
PCAF is the most renowned initiative regarding the measurement of financed emissions,
being recommended by the Task Force on Climate-Related Financial Disclosures (TCFD)
for disclosure of financed emissions.
We have also joined the Climate Commitment, an initiative by Instituto Ekos Brasil
that connects companies interested in offsetting their Greenhouse Gas Emissions and
projects dedicated to generating social and environmental benefits.
We have also assumed voluntary commitments in the areas of diversity, human rights
and gender equality, subscribing to the following institutions: UN Women, Mover (Civil
Association of the Racial Equity Movement), Pact for Racial Equity, Rede Reis (Business
Network for the Inclusion of Disabled people).
NEW
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Sector development
We work alongside class and sector organizations, contributing to relevant topics for the market. At the
Brazilian Association of Banks (ABBC), we are coordinators of the Socio-environmental and Climate Risk
Commission, which aims to monitor, evaluate and supervise aspects related to good socio-environmental
management practices, standardized by regulatory bodies, aimed at strengthening concepts and standards
applicable to financial institutions. In the Financial Innovation Lab, we participate in the ESG Risks working
group.
We also took part in the ESG Integration Commission (CIASG) of the National Confederation of General
Insurance, Private Pension and Life Companies (CNseg), with the aim of supporting companies in the
insurance sector to incorporate the best market conduct practices.
We participate in working groups of the Brazilian Association of Financial and Capital Market Entities
(Anbima), related to the Carbon Market, ESG Funds and CMN Resolution 4945.
At the Brazilian Federation of Banks (Febraban), we are active in the ESG Committee and four other working
groups that focus on specific issues:
Climate Squad: develops and implements climate finance management tools, discussing
the assessment of physical and transition risk, the measurement of climate sensitivity and
financed emissions from the credit portfolio.
Regulation Squad: dedicated to discussions and adaptations to new Central Bank regulations,
such as the implementation of the loss basis and stress testing..
Sustainable Finance Squad: works to expand knowledge in sustainable finance, promoting
debates and training on sustainable debt instruments and corporate credit.
Deforestation Squad: discusses the management of deforestation risks in agricultural chains
in different segments of banking operations.
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Recognitions
Best investment Advisory in Brazil
Among the most valuable brands in Brazil
According to a survey by the consulting firm Interbrand, XP placed 12th in the ranking of the most
valuable brands in Brazil.
XP was selected as the top investment advisor in Brazil in the “The Best of the Internet” award, sponsored
by Folha de S. Paulo. It was also recognized, for the fifth consecutive year, as the best investment advisor
Asset leader in number of shareholders
in São Paulo in the “The Best of São Paulo” award, from the same media outlet.
In a survey conducted by the Trademap platform at the request of Valor Econômico, XP Asset saw the
highest growth in the number of shareholders in the liquid funds market in the 1st half of 2023.
Top of Mind Santa Catarina
We were the investment company most remembered by people from Santa Catarina, in the Top of Mind
Largest independent manager
survey carried out by the NSC Group.
XP Asset was the largest independent manager and the seventh largest asset manager in the country
in the Top Asset ranking from Investidor Institucional Magazine.
Best credit cards in Brazil
The XP Visa Infinite and XP Visa Infinite One were chosen as the best credit cards in Brazil in a ranking
Among the best ESG Research in Brazil
by the website Melhores Cartões (Best Cards), in a survey carried out at the request of Valor Investe.
We are among the top ESG Research teams in Brazil in the Institutional Investor ranking. In addition, our
Features such as better benefits, lower interest rates and travel advantages, among others, gained
Head of ESG Research, Marcella Ungaretti, was selected as the best ESG Research analyst in the country.
prominence.
Most innovative investment platform in Brazil
iBest 2023
By popular vote, XP was the winner of the Investment Channel category at iBest 2023 awards. InfoMoney
In the award sponsored by the Escola Superior de Propaganda e Marketing (ESPM), winning the majority
was also the winner in the same category in the iBest Academy vote, made up of a jury of experts,
of votes from more than 500 undergraduate students at the university.
entrepreneurs and personalities from the digital world.
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STRATEGY AND MANAGEMENT
What drives us is the purpose of transforming the financial market in order to improve people’s lives.
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Culture
Our value proposition
Our history is deeply connected to the transformation of the financial market in the country. With a
pioneering spirit and a belief that nothing is impossible, we worked to educate investors and created the
• We are trailblazers
first platform to give them autonomy to choose how and where to invest the money set aside to achieve
We build our future with our own hands, tirelessly. We’re proud of what we’ve done and even
their life goals. Breaking with the banking standards that had been in place, we reduced and eliminated
prouder of what’s to come.
fees that penalized returns.
By dreaming together with Brazilians, we have become one of the largest financial institutions in the
country. And we continue in our determination to broaden our services and grow, thereby promoting
• We are transformers
the development of people and the country.
We seek agility, efficiency and transformation capacity, and spare no effort to adapt to the new.
Our values
• We are determined
Entrepreneurial Spirit
We build the future with our
own hands with the highest level
of commitment and sense of
ownership.
Client Focus
We are determined to exceed
our clients’ expectations, always
putting them first in our decisions.
Open Mind
Our openness to new possibilities
and our ability to adapt are
features that make us evolve and
always improve.
Big Dream
We aim at the impossible, we
believe that it can come true, and
we can get there together, one
step at a time.
Behind extraordinary challenges, there are people willing to achieve them, thirsty to learn and
open to new opportunities every day.
• We are powerful and plural teams
What drives us in the same direction is our ambition to do more and be better. We are a powerful
combination of different experiences, skills and backgrounds, which results in high performance.
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Long term vision
Competitive advantages
Our long-term strategy is centered on three verticals: investments, cross-selling and wholesale
trend of large global markets, where much of the investment movement takes place outside banks. We
banking. In investments, the objective is to expand market share, focusing on high-income
anticipated this movement and, in this process, promoted the democratization of access to financial
audiences (private banking and retail). We want to use our experience and knowledge to achieve
services, with technological solutions, innovation in services and exemption from fees and charges. This
leadership in this segment, with different models to serve each customer profile.
boldness stimulated the creation of new market parameters, benefiting the consumer, and is the basis
In the early days of XP, we could see that the Brazilian financial sector would, sooner or later, follow the
of our competitive advantages.
We plan to capture a 15% share of the investment volume from individuals and companies
- by the end of 2023, this share stood at 11.6%. This will be achieved both by acquiring new
customers and increasing the investment share from our current client base .
We also want to take advantage of the full potential of cross-selling to expand the penetration
Differentiated technology
Synergistic distribution
system
of new products and services such as digital current accounts, insurance, foreign exchange,
We have a proprietary cloud-based platform that
We offer products and services through our omni
international accounts and credit cards in the customer base. We ended 2023 with R$15 billion
allows us to innovate and compete efficiently. We
channel distribution network, which generates
in revenue and we believe it is possible to reach R$26 billion in three years, adding R$2 to R$3
develop data-driven tools and solutions to support
a powerful network effect, integrating the retail,
billion from cross-selling.
In wholesale banking, the focus is on middle market companies, with revenues of over R$200
million. We started with investment banking and added services to these clients. With a holistic
view of your needs, we created a journey that makes access to a broad marketplace of financial
products and services even easier. One of our differences in this area is our significant reach in
the distribution of products for retail.
the customer and operate with advantages,
institutional, large corporate and capital market
efficiency and reduced costs.
segments.
Premium services available
to everyone
Specialized financial
advisory service
At the heart of these pillars is the commitment to a quality culture, our third wave of differentiation.
We have made services available to all customers
We have a highly qualified team of advisors
It encompasses the continuous improvement of all processes and relationships, including
that had traditionally only been available to high-
who support all corporate clients, from retail to
corporate governance, internal climate and employee satisfaction, customer centrality, business
income customers at other institutions, such
institutional, helping them access international
environmental performance and relationships with different actors in society.
as financial advisors. We thereby create a more
financial services and structuring and issuing
inclusive and scalable financial ecosystem.
financial products for corporate clients and
issuers, among others.
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ESG strategy
Good social, environmental and governance practices contribute to business continuity, strengthening
the XP brand and generating long-term financial results. With this perspective and guided by the Social,
Our Manifest
Environmental and Climate Responsibility Policy (PRSAC) (page 127), we have broken down our material
To deliver the best solutions for our customers, we need to go beyond and
topics into concrete goals and actions to accelerate the ESG agenda in our activities and relationships.
understand how these solutions leave a positive legacy for our society.
We created an ESG area that, since 2020, has supported the company’s different sectors and businesses
in this endeavor, and we have made significant inroads on the aspects that we have decided to prioritize,
Changes are necessary and urgent. But for transformation to happen, we
cannot rely only on the government and specific initiatives. We all need to be
each time involving senior management.
protagonists in building a better world.
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We build policies and training that provide a basis for the actions of our professionals and business
partners, adhere to public commitments (page 23), structure proprietary methodologies for social,
environmental and climate risk analysis that are now divulged in our customer onboarding, approval
processes of suppliers, partners and collaborators, development of new products and services and
application for credit, foreign exchange and investment products (page 49).
We expanded the offer of sustainable products to customers (page 48), developed our proprietary ESG
system (page 50) and, internally, began to manage and work to reduce consumption of resources and
We recognize our role in supporting the transition to a more sustainable world. We
know this is a journey. It will be walked together with our employees, customers,
investors, partners, and the market. We are a company of people for people.
Therefore, we want to inspire Brazilians on the journey of transforming Brazil.
We believe that investments generate value for society and the environment.
We want to increase the knowledge, engagement, and development of effective
solutions so that the ESG agenda is at the core of business models and decision-
Greenhouse Gas Emissions (page 86). We increased the diversity of our employees (page 70), improved
making processes.
governance and strengthened compliance and risk structures and processes (page 106), entrenching a
solid ESG culture in our ecosystem.
Make investments your voice.
This course was driven by goals related to the themes defined in our first materiality carried out in
2020. At the beginning of 2024, after updating our material topics, we began to operate according to
six pillars of action. In this process, we recalibrated the goals and defined another 34, all aligned with
the United Nations (UN) Sustainable Development Goals, with general and specific objectives, guiding
our management of risks and opportunities to take our business to a new ESG level in the coming years.
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Goals and challenges linked to material topics
ESG integration in processes, products and services
Our goals
How we evolved between 2020 and 2023
Key initiatives
25% of Investment Banking fixed income
issuances classified as ESG by 2025.
Have the largest ESG product platform in the
country
By the end of 2023, 28% of our Investment Banking fixed
Structuring of Green Bonds, Social Bonds and Sustainability-Linked Bonds, according to the
income issuances were classified as ESG.
guidelines issued by ICMA (International Capital Market Association).
R$23.4 billion in green bonds issued.
Structuring of a proprietary framework for ESG issuances (see page 50).
51 ESG products distributed on our platform.
We created the ESG Products area to engage and qualify the company in ESG business
R$13.4 billion in ESG assets under custody.
opportunities.
38 ESG investment funds on our platform.
We created an award for the offices that have distributed more ESG products between 2020 and
R$3.76 billion in assets under management by ESG funds.
2022.
187 thousand clients with ESG investments.
In 2023, we developed our ESG dashboard to follow the monthly evolution of business (page 49).
Increase ESG coverage of companies covered by
We closed 2023 with a coverage of 88% of companies
We published reports focused on ESG matters and held meetings with institutional investors, as
the Research area.
covered by the Research area.
well as events on subjects of interest for the investors (page 55).
Be recognized as the best ESG Research in the
country.
We stood among the best ESG Research teams in Brazil in
XP was the first investment company in Brazil with an area dedicated to the analysis of the
the ranking of “Investidor Institucional.”
environmental, social and governance performance of publicly held companies and identification
Our Head of ESG Research was appointed the best ESG
of major topics that are shaping this agenda (page 55).
Research analyst in the country.
Since 2021, we have maintained a recommended ESG portfolio.
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Our goals
How we evolved between 2020 and 2023
Key initiatives
Perform ESG integration in investment analyses in
93.4% ESG integration in the investment analyses of XP
We are signatories to the Principles for Responsible Investment (PRI).
100% of XP Managers by 2025.
Managers in 2023.
Responsible Investment Policy with guidelines for ESG integration by the managers.
Perform ESG integration in 100% of the
investment processes of XP Vida e Previdência
(XPV&P) by 2025.
100% ESG integration in the investment processes of
Social, Environmental and Climate Responsibility of XPV&P with guidelines for ESG integration in
XPV&P by the end of 2023.
investments.
We are signatories to the Partnership for Carbon Accounting Financials (PCAF).
Reduce the intensity of GHG emissions of the
Emissions of the corporate credit portfolio from 2021 to
corporate credit portfolio by 2030.
2023, reaching 6.24 tons of carbon per each million of
credit portfolio and monitoring the managerial index of intensity of Greenhouse Gas Emissions.
We have developed an internal climate transition plan, with specific targets for reduction of
We reduced by 48.22% the intensity of Greenhouse Gas
Since 2021, we have been calculating and reporting the financed emissions of our corporate
Reais invested.
emissions.
Maintain the assessment of the climate sensitivity
of the corporate credit portfolio within the climate
risk appetite.
Goal achieved. Reduction of 2 percentage points in
climate intensity between 2021 and 2023.
In 2023, we included a climate risk indicator in the company’s RAS.
We used the methodology that has been developed together with Febraban (Brazilian Federation of
Banks) since 2021, to calculate the climate sensitivity of the corporate credit portfolio (page 91).
In 2023, we included this indicator in the company’s RAS and established exposure limits.
Include at least one social, environmental and
In 2023, we included 2 social, environmental and climate
We set up the Social, Environmental and Climate Risk Commission, whose members include the
climate indicator in the company's RAS.
indicators in the company’s RAS.
company’s CRO (Chief Revenue Officer).
100% of customers evaluated from the
perspective of social, environmental and climate
risks.
100% of our customers were evaluated from this
We have structured manual and automated assessment processes that are used in accordance
perspective by the end of 2023.
with factors involving the importance, proportionality, and relationship or transaction risks.
We have developed proprietary methodologies to assess the social, environmental and climate
risk.
We developed a proprietary system for social, environmental and climate analysis and monitoring
of relationships and transactions.
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How we evolved between 2020 and 2023
Key initiatives
Proprietary evaluation methodology.
100% of suppliers evaluated from the perspective
100% of suppliers were evaluated from this perspective
Inclusion of social and environmental clauses in agreements and contracting instruments.
of social, environmental and climate risks.
by the end of 2023.
Engagement of a suppliers’ platform that generates an ESG score and incorporates our
proprietary analysis platform.
100% of new products and services evaluated
from the perspective of social, environmental and
climate risks.
100% of new products and services were evaluated under
Integrated assessment of social, environmental and climate risks into the evaluation process of
this perspective in 2023.
new products and services.
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Reduce Greenhouse Gas Emissions (scope 1, 2 and
We reduced our Greenhouse Gas Emissions (scope 1, 2 and
3) based on 2020.
3) by 13.57% from 2020 to 2023.
We have been conducting greenhouse gas inventory since 2019.
We have neutralized our GHG emissions since 2019.
In 2023, we engaged a consulting firm that helped us refine the methodology and calculation of
emissions, which resulted in a reduction of emissions, based on the year 2020.
In 2023, for the first time, we submitted our inventory to independent auditors.
The neutralization is determined according to the inventory of emissions.
In 2023, it was carried out through the purchase of carbon credits and RECs.
We have defined a methodology to calculate the internal price of carbon (page 87).
Neutralize 100% of Greenhouse Gas Emissions
We neutralized 100% of our Greenhouse Gas Emissions
(scope 1, 2 and 3).
(scope 1, 2 e 3) since 2019.
100% of the energy consumed in Brazil, within the
scope of the greenhouse gas inventory, is sourced
from renewable energy, based on the purchase of
i-Rec.
Reduce water consumption based on 2020.
In 2023, 100% of the energy consumed in Brazil, within
the scope of the greenhouse gas inventory, was sourced
Purchase of i-Rec to neutralize part of our emissions.
from renewable energy, based on the purchase of i-Rec.
We continue trying to reduce consumption, which
increased between 2022 and 2023 due to the engagement
of 1,472 new employees and inclusion of data regarding
our offices, which had not been calculated before.
Adoption of the system for input and monitoring of consumption as from 2024.
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Our goals
How we evolved between 2020 and 2023
Key initiatives
Reduce electricity consumption based on 2020.
Reduce solid waste generation based on 2020.
We continue trying to reduce consumption, which
increased between 2022 and 2023 due to the engagement
of new employees in the period, and inclusion of new data
regarding offices that had not been calculated before.
We continue trying to reduce consumption, which
increased between 2022 and 2023 due to the engagement
of new employees in the period, and inclusion of new data
regarding offices that had not been calculated before.
We observed an increase in the total volume of waste
destined for recycling.
Adoption of the system for input and monitoring of consumption as from 2024.
Adoption of the system for input and monitoring of consumption as from 2024.
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Ethics, human rights, compliance and transparency
Our goals
How we evolved between 2020 and 2023
Key initiatives
Provide a public reporting channel accessible to
all stakeholders.
100% transparency of the compliance and
governance structure.
Public reporting channel accessible to all stakeholders.
In 2023, we intensified the internal and external disclosure of our Public reporting channel.
Goal achieved in 2023.
Public disclosure of the compliance and governance structure in the Integrated Report.
100% of the high-risk value chain trained in ethics
We reached 100% of the high-risk value chain trained in
Mandatory training programs and booklets on ethics and integrity for the whole high-risk value
and integrity.
ethics and integrity in 2023.
chain.
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Our goals
How we evolved between 2020 and 2023
Key initiatives
100% full remuneration for Senior Management.
100% full remuneration for Senior Management.
In 2023, we started to develop the Conduct Score project, which included integrity criteria in the
process of remuneration for 100% of our Senior Management.
100% of employees trained in compliance, risks,
In 2023, 100% of collaborators were trained in these
Inclusion of compliance, risk, reporting channel and ESG topics in mandatory training programs
reporting channels and ESG.
topics.
for all areas of the company.
Zero complaints arising from cases of corruption.
We have not recorded any complaints arising from cases
Awareness actions, with lives about the Reporting Channel, and the Compliance Week, among
of corruption.
other initiatives.
36.9% increase the number of advisors trained in
Increase the number of advisors trained in
governance and integrity from 2021 to 2023.
governance and integrity
7,523 investment advisors were trained on the topic in
We intensified the training programs on this topic for our investment advisors.
2023.
Increase the number of offices with the
65.3% increase the number of offices with the
Governance and Integrity Seal
Governance and Integrity Seal from 2021 to 2023.
Apply disciplinary measures in cases of
harassment.
100% resolution of complaints in the confidential
channel.
The penalties include the dismissal of employees and
advisors, warnings and fines, in the case of partner
offices.
This goal is being achieved.
Zero cases of corruption involving public and
We have not recorded corruption cases involving public
private agents.
and private agents.
Intensification of training programs and promotion of the Governance and Integrity Seal.
Awareness actions, with lives about the Reporting Channel, and the Compliance Week, among
other initiatives.
Bimonthly monitoring of volumetry and complex cases by the Ethics Committee and the Board of
Directors.
Awareness actions about the topic.
Development of a Human Rights Policy
Goal achieved in the beginning of 2024.
We have published our Human Rights Policy.
Inclusion of the topic of Human Rights in our Code
of Ethics and Conduct
Improve the corporate governance, with a
majority of independent directors in the Board of
Directors.
Goal achieved in the beginning of 2024.
We have included the topic in our Code of Ethics and Conduct.
Goal achieved in May 2024, when the Board of Directors
We engaged an international consulting firm that supported us in our search for executives and
started to count on an independent majority of members.
directors with complementary expertise, and restructuring of our corporate governance.
Have at least two representatives of social
The Board of Directors has two representatives of social
Among other matters, the governance restructuring process focused on the maintenance of
minorities in the Board of Directors.
minorities since 2019.
diversity in the Board.
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Customer centricity, innovation and technology
Our goals
How we evolved between 2020 and 2023
Key initiatives
Increase the customer satisfaction levels.
We are working on increasing our NPS (Net Promoter
We have evolved in the creation of a Customer Centricity framework by launching the CX Days
Score), which has dropped in the last two years.
initiative (page 60).
Quality was placed at the heart of our strategic pillars, being our third wave of differentiation.
The NPS is now used as a senior management performance metrics.
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Increase the level of employee satisfaction.
Increase of 3 points in the eNPS (Employee Net Promoter
Score) in 2023.
Implementation of a hybrid and flexible working model.
Half-yearly 360° Assessment.
Bimonthly Pulse Survey.
Market survey to assess salary attractiveness.
All employees are eligible for the Partnership Program.
Education and financial inclusion
Our goals
How we evolved between 2020 and 2023
Key initiatives
Impact 50 million people through financial
11.2 million individuals directly impacted by our financial
education initiatives by 2030.
education initiatives from 2021 to 2023.
Educação Financeira Transforma award, Tino Econômico newspaper, content in partnership
with Instituto Kondzilla, XP Educação courses, partnership with Favelado Investidor, Guaranteed
Education project.
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Our goals
How we evolved between 2020 and 2023
Key initiatives
Strengthen technological solutions to expand
Brazilians’ access to financial products and
services.
We have a proprietary cloud-based platform that allows us
to innovate and compete efficiently.
We develop data-driven tools and solutions to support the
customer and operate with advantages, efficiency and
reduced costs.
Creation of Digital First, anchored in the intensive use of technology, with digital advisory and
greater scalability.
Matcher XP, which supports the engagement of qualified professionals.
XP Gênio, which supports investors in choosing their investments with enhanced risk control.
Creation of the Technology Governance and Information Security team.
Preparation of our platform to process, in an integrated manner, our own-branded products and
services, such as XP, Rico and Clear, as well as those of our business partners.
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Our goals
How we evolved between 2020 and 2023
Key initiatives
40% of women in the workforce by 2030.
24% of black people in the internal population
Increase of 7.9 percentage points in the number of women
at the company between 2020 and 2023.
Increase of 14.7 percentage points in the number of
women in leadership positions in the same period.
Increase of 2.4 percentage points in the number of blacks
compared to 2020.
Review of goals, keeping the commitment to reach new diversity levels in the coming years.
Hiring and promotion processes focused on the elimination of biases and subjectivity in decisions.
Training on biases.
Inclusion of the topic in corporate training programs.
15% black people in leadership.
Increase of 10.5 percentage points compared to 2020.
Lives organized by Affinity Groups about discrimination, harassment, career challenges for black
Exceed 5% of people with disabilities working at
Increase of 0.6 percentage points in people with
people, people with disabilities, LGBTQIAPN+ and use of the Reporting Channel.
the company.
disabilities compared to 2020.
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Our goals
How we evolved between 2020 and 2023
Key initiatives
Public data privacy policies.
100% of our Data Privacy Policies are public.
Publishing and disclosure of policies.
Maintain best practices to ensure data security.
Technology and Information Security area, with more
than 1.4 thousand professionals.
Process supported by controls at all levels of the IT
infrastructure, regular risk and vulnerability assessments,
prevention, detection and incident response measures.
Disclosure of functionalities that contribute to the security of personal data.
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FINANCIAL PERFORMANCE
Leveraging cutting-edge technologies, we have gained traction and developed the operational skills necessary
to scale the business and continue growing over time.
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More than 22 years ago, we began as independent financial advisors in a 25 m² office in Porto Alegre
Fenaprevi (National Federation of Private Pensions and Life) and other sources, accounting for more
(RS). Today, we are one of the largest investment platforms in Brazil, owner of the brands XP, Rico,
than 4.5 million active clients and R$ 1.1 trillion in assets under custody.
Clear, Infomoney and, more recently, Modal.
Currently, our largest share is in the group of mid-range clients (with more than R$300,000 in
To build our business from the ground up while competing with traditional banks, we dedicated
investments), where the work of investment advisors is concentrated. To increase participation in the
ourselves to leveraging cutting-edge technologies that helped us stand out and develop the operational
range of large investors (over R$10 million), we have customized flows and processes, and created
skills needed to scale. Over the last few years, we have invested in managing people and optimizing
products such as exclusive funds. For small investors (less than R$300,000), we created the digital
processes by adopting agile methodologies. We increased our range of products and services and
first project, anchored in the intense use of technology, with digital advice and greater scalability. The
strive to find new opportunities and solutions to serve Brazilian investors, making strategic alliances
digital first was initially implemented at Rico, one of the group’s brands, and then, at XP.
to foster the innovation process.
The open nature of our product platform was a key driver of XP’s early success. Until then, traditional
financial institutions in Brazil used to favor closed-loop models that significantly restricted the selection
of investment products made available to clients. We bring about disruptive innovation by facilitating
market disintermediation, breaking with the conventional model.
We began to educate new classes of investors, democratizing access to a wider range of financial
services, developing new products and using technology to empower our clients and offer the best
service and experience in the sector in Brazil.
With the mission of providing financial solutions, information and education to improve people’s lives,
we have a robust ecosystem that has 6,667 employees allocated to companies in various sectors.
We boast a network of more than 14 thousand independent investment advisors throughout Brazil, a
growth of 18% compared to December 2022, in addition to a solid corporate structure that allows us
to operate in different segments and countries with relevance and efficiency.
Accordingly, we have strengthened our growth strategy, anchored in three pillars: expansion of market
share in the investment segment; advancement in new business fronts, such as insurance, credit cards
and banking operations (traditional checking account); and growth of wholesale banking operations.
Today, our client assets represent almost 9% of a market totaling R$12.6 trillion, according to internal
research and public data from Anbima (Brazilian Association of Financial and Capital Market Entities),
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2022.
It was also a year of pronounced growth in our new Retail verticals,
which include Cards, Credit, Insurance and Pensions, helping us
to address the negative impacts of the economic environment on
goals.
financial planning, which maps the client’s needs in a broader way.
This has provided us the tools to carry out strategic planning and
Share buyback program
deliver an investment portfolio that helps clients achieve their
Our Board of Directors approved a new share buyback
Key highlights in results for the year
Despite the macroeconomic challenges, 2023 brought about major
We have also created a central allocation area that is linked to
achievements that proved the resilience of our business model.
the Research department. Today, we have a CIO (Chief Information
We surpassed the R$1 trillion mark in client assets, confirming our
Officer) with access to all areas of the company; we reworked client
growing presence in the market and the trust that our clients place
segmentation and revised the incentive model for investment
in us. Our net income was R$3.9 billion, an increase of 9% over
advisors to generate greater alignment. We have also created
our core business. These revenues grew by 43% compared to the
We ended the year with a drop of 21% in institutional revenue
previous year, reaching R$1.7 billion, and contributing to 11% of our
compared to 2022, due to lower volumes in B3. On the other hand,
global gross revenue.
We managed to meet our efficiency projections, reducing our
administrative expenses by 4%, totaling R$5.4 billion, and
remaining within our annual expense guidance for 2023, which
revenue from large companies and capital markets was R$1,576
million, posting a 22% jump year-on-year, with a resumption of
market activity and the contribution of mergers and acquisitions
(M&A).
was between R$5 billion and R$5.5 billion.
It was also the period in which we distributed the most dividends to
We completed the Banco Modal integration process, which marked
a significant step in our journey, expanding our capacity, and
improving the set of banking and investment products and services.
our shareholders, totaling around R$4.5 billion, including dividends
and share buybacks. For 2024, we will continue to expand the range
of services that had previously been restricted to private clients
to a broader audience, thereby gaining scale in a more inclusive
financial ecosystem.
program, which is intended to neutralize future shareholding
dilutions due to the long-term incentive plan for our
employees. Under the approved program for 2024, we may
repurchase up to 2.5 million Class A common shares in the
period from February 28 to December 27, 2024. Our Board
will periodically review the buyback program and may
authorize adjustments to its terms and size, or suspend or
discontinue the program.
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Our revenue lines
5% other
75% Retail
Administration fees, brokerage
fees, rebates, spreads,
distribution revenues, exchange
and others
of gross
revenue
10% Large companies &
capital markets
Commissions, spreads and other
income
10% Institutional
Commissions, spreads
and other income
Efficiency Ratio
2021
2022
2023
See the next page for the highlights in major business fronts in 2023.
39.2%
42.0%
36.3%
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XP Investimentos
Today, we have 11.6% of assets of individual clients in
Brazil.
Investors can access our services in different ways:
through the direct channels of XP companies, Rico
or Clear, or through more than 14,000 independent
investment advisors who work
in 487 offices
throughout Brazil.
Our strategy encompasses a broad spectrum of
distribution channels, including B2B, B2C, wealth
managers, broker as a service and advisors, allowing
us to reach a diverse client base and address their
unique needs. This diversification allows us to be
at the forefront of the financial services industry,
adapting to changes and seizing opportunities with
agility and vision.
Retail bank
In 2023, we posted a 16% growth in our retail revenue compared to the
same period of the previous year, totaling R$11.8 billion, which represented
76% of our consolidated result.
Some factors contributed to this growth, including revenues from float,
digital accounts, and fixed income, after a strong recovery in DCM activity
in the second half, in addition to cards.
Another new feature was the introduction of the global account, with
solutions for currency conversion, transfers and payments in dollars,
roughly one year after the creation of the international investment account,
which allows clients to make investments directly abroad.
Gross revenue (in R$ million)
2021
2022
2023
9,793
10,157
11,791
42
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Cards
XP is among the 15 leading issuers in the country according to data from the specialized publication Cardmonitor, and
our credit card was voted the best in Brazil in a ranking from the website Melhores Cartões.
We offer our customers one of the lowest interest rates on revolving credit in the market and zero annual fees, in addition
to an “investback” of at least 1%, which allows a discount on all purchases, discounts on products from major brands,
restaurants and services, as well as access to more than 1 thousand VIP lounges in 450 airports in 140 countries. The
credit card is our most successful cross-sell product, with 20% penetration.
As part of the strategy of continuing to evolve our value proposition, we rolled out new benefits related to travel directly
on the XP APP in partnership with the company BeFly, and new features to make our customers’ lives easier and boost
security when using the card, such as the Virtual Card for single use.
+1.1M customers
with active cards, including
credit and debit
69% revenue growth
R$40 billions in
transaction volume
285% of the amount
recorded in 2022
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Insurance and pensions
The offer of insurance, pension plans and consortiums is part of our strategy of becoming an increasingly
complete platform that addresses the different needs of our individual and corporate clients. We finished
2023 with 224,000 clients in pension plans and 54,000 clients in the insurance sector.
We work in partnership with the largest insurance companies in the world and, adopting the open pension
platform model, we allocate plan resources in more than 300 funds run in partnership with the best
asset management houses on the market. The experience and number of funds and managers made
available by XP Vida e a Previdência helped us become leaders in net market fundraising in the period
from January 2021 to September 2023, with the majority of funding coming from portability. Our assets
in pension funds topped R$56 billion, an annual increase of 23%. We ended the year with a portfolio of
180,000 customers.
In the insurance segment, the first product we launched in 2022 was life insurance. Today, in addition
Insurance | Gross revenue (in R$ mi)
2022
2023
97
149
+53%
to this segment, our portfolio includes health and dental insurance, coverage for Pix, cell phones, cards
Pension funds | Gross revenue (in R$ mi)
and the so-called “mass insurance,” whose greatest demand is for products that provide financial
protection for loss of income and those aimed at maintenance or equipment replacement, such as
extended warranties.
In 2023, we added coverage for decreasing death benefit, terminal illness and serious illnesses, with the
possibility of signing up for products with a lifelong and temporary term. We also began to operate in
the auto insurance market.
2022
2023
333
365
+10%
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Credit
In 2023, we maintained our focus on the expansion of credit offer, increasing our portfolio of products and the concession
thereof through distinct structures with increased relevance in the day-to-day lives of our clients.
For example, we offer Credit with XP Collateral, which allows using investments as collateral for a more accessible credit,
paying only at the end of the contract.
This helps our clients to enhance their investments or increase the flexibility of their asset portfolio. We also began
offering Expanded Investment, a dynamic credit limit that is calculated based on the client’s assets, providing the peace
of mind of investing without restrictions.
Our total credit portfolio totaled R$21 billion in 2023, representing an increase of 23% compared to the same period in
2022. We expect an increase of R$1 billion to R$2 billion in revenues from credit to companies in the corporate, medium-
sized and small companies segments, reaching between R$1.8 billion and R$2.8 billion by 2026.
Credit granting in 2023 (In R$ million)
Loan by type
Loan with assets pledged as collateral
Retail
Companies
Credit card
Loan with unsecured assets
Retail
Companies
Credit card
Total loan operations
Expected credit loss
Total loan operations
2023
24,845.243
12,366,330
7,054.507
5,424,406
4,036.646
764,712
959,898
2,312.036
2022
20,198.764
10,932.086
5,311.675
3,955.033
2,061.774
309,468
546,678
1,205,628
28,881.889
22,260.538
-329,954
28,551.935
-49,377
22,211.161
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XP Asset
Management
XP Asset Management ended 2023 with over R$167
billion in assets under management. We offer a
complete portfolio of products, structured into 13
strategies: Variable
Income, Macro Multimarket,
Fixed Income and Credit, Structured Credit, Special
Situations, Infrastructure, Real Estate, Agro, Private
Equity, Venture Capital, Alternative FoF, XP Advisory
and Indexed and International.
We have more than 165 qualified professionals dedicated
to controlling risks and preserving the capital of more
than four million investors, including institutions and
individuals.
Our commitment is to maintain responsible, ethical and
transparent behavior in order to avoid conflicts and
ethical deviations. To this end, we maintain our own
policies and procedures based on concepts, business
principles and rules relating to internal controls,
conflicts of interest, control of privileged information,
and confidentiality obligations. And our employees are
trained on these topics.
Our management strategies in numbers, as of December 2023
Fixed
Income &
Credit
R$23,1 bi
Structured
Credit
R$4,8 bi
Special
Situations
R$5,3 bi
Multi-
Market
Macro
R$4,8 bi
Variable
Income
R$3,6 bi
Indexed &
International
R$37,7 bi
XP Advisory
R$43,3 bi
Infrastructure
R$2,6 bi
Real Estate
R$13,9 bi
Agribusiness
R$1,8 bi
Alternative
FoF
R$1,7 bi
Venture
Capital
R$0,8 bi
Private
Equity
R$3,6 bi
Wholesale bank
Our wholesale bank is made up of six
areas dedicated to assisting companies,
institutional investors and private clients:
XP Corporate, XP Private, XP Investment
Banking,
Institutional
Relations,
XP
International and Research. Our focus is to
ensure a unified, more strategic journey to
clients of this segment, based on a single
ecosystem that helps them access a broad
portfolio of financial products and services.
In 2023, our revenue from large companies
and capital markets
increased by 22%
compared to the previous year, totaling
R$1.6 billion, which represented 7% of the
consolidated result. Growth was driven by a
strong resumption of Debt Capital Markets
activity in the second half of the year,
combined with the continued expansion of
our Wholesale franchise.
Strategies: XP Asset Management Report, as of 12/29/2023
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A leading financial education platform
100% of startups with more than
1,000 employees include at least one
in Brazil. We offer courses, MBAs and
of our students in their teams
learning tools related to the world of
investing, from basic concepts to more
sophisticated techniques and advanced
strategies. We have developed an
innovative teaching proposal that is fully
integrated with companies and designed
with an eye on the future.
50% of our students work
in companies with over
1,000 employees
80% of the most valuable
brands have professionals
who graduated
from XP
Educação
Courses offered by type
2022
2023
Undergraduate degree
Graduate degree in technology
Signature
Total
5
21
1
27
5
20
1
26
Enrolled
students
2022
403
2,869
7,403
10,675
Enrolled
students
2023
0
2,981
3,457
6,438
Clear is a leading stock market broker in Brazil. Since
it was acquired by XP Inc., in 2014, millions of Reais
have been invested in infrastructure and systems,
in addition to the launch of new business lines, such
as distribution of fixed income assets and trading
platforms. The brand offers support and specialized
tools that allows traders of all backgrounds to
perform at their maximum potential. It was the first
broker to offer zero brokerage fees in Brazil.
+R$25 BI in
custody
This is our 100% digital investment platform, which
offers simple and uncomplicated content about the
world of investments, as well as a complete portfolio
of products. Since 2020, no brokerage fees are
charged for online share trading, reinforcing the
commitment to make investments available to more
people in Brazil.
+R$33 BI in
custody
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Our communication ecosystem specializes in markets, investments and business.
A pioneer in the digital universe since 2000, its mission is to simplify financial decisions and information, leading
the debate on finance and business in the country in an innovative, technological and democratic way.
In 2023, InfoMoney’s audience was the largest among the country’s leading investment information sites. There
were 237 million visits, 9% higher than the visits to the second place (data from the platform SimilarWeb
compiled by InfoMoney). The survey considered 32 investment, finance and business websites.
Reach and views
+1.9 BI
Interactions and engagement
+280 MI
Users and followers
+70 MI
Views on Instagram
+895 MI
Views on X
+86.3 MI
Views on YouTube
+151 MI
Podcasts Downloaded
+4.64 MI
Sustainable Business
FN-IB-410a.1 I FN-IB-410a.2 I FN-IB-410a.3 I FN-CB-410a.2
Understanding our role in promoting a low-carbon economy, we have prepared ourselves
to support our customers in this transition. This is why we have developed a portfolio
of ESG products, including investment funds, fixed and variable income assets and
structured operations. We are also taking a social, environmental and climate perspective
to new product areas in the Retail, Wholesale and Investment Banking segments.
At XP Asset, the Responsible Investment Policy establishes guidelines for integrating
environmental, social and corporate governance themes into the analysis, selection,
evaluation, acquisition and monitoring activities of assets under management. In order
to be classified as ESG, products undergo a due diligence process. Aligned with the
Principles for Responsible Investments (PRI), of which we are signatories, in 2023 we
reached 93.4% of assets submitted to ESG analysis and we continue to advance towards
the goal of reaching 100%.
To closely follow the evolution of sustainable business and our capacity to leverage
the opportunities of the new economy, in 2023 we developed a dashboard for monthly
monitoring of indicators such as ESG AuC (Assets under Custody), ESG AuM (Assets
under Management), number of clients with ESG investments, new ESG products and
the volume of ESG funding, among others.
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28% of Investment
Banking fixed income
issuances classified as
ESG (linked to the green
economy)
R$13.4 billion in
ESG-related Client Assets
187 thousand clients
allocaed to ESG products
38 ESG investment
funds
Evolution of ESG investments
2021
2022
2023
ESG Assets under custody (AuC)
R$8.8 billion
R$12 billion
R$13.4 billion
% of the total portfolio
1.03
1.30
1.22
Number of clients with ESG investments
182 thousand
227 thousand
187 thousand
Assets under management (AuM) of ESG Funds
R$2.49 billion
R$1.76 billion
R$3.76 billion
Investment banking fixed income operations
(% of the total portfolio volume)
27,8% Green economy
28% Green economy
18,6% Green Bond, Social Bond, Climate
Bond and Sustainability-Linked Bonds
19% Green Bond, Social Bond, Climate
Bond and Sustainability-Linked Bonds
2022
8,7% Internal Methodology
2023
9,0% Internal Methodology
72,2% Traditional economy
72% Traditional economy
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Framework of classification of fixed income
issuances in line with the green economy
In Investment Banking, the determination of issuances in line with the green economy follows
a specific methodology. To be considered as such, issuances must meet the following criteria:
1. The issuer should not be involved in important disputes relating to social, environment and
climate topics.
Green Bonds
We act as structuring agents in the issuance of 19 green and social bonds that are used to finance our
clients’ ESG projects and initiatives. Among them, 10 were classified as Green Bonds, Social Bonds
or Sustainability-Linked Bonds, in accordance with ICMA (International Capital Market Association)
guidelines.
For the other nine, we adopted our proprietary ESG emissions framework, which covers criteria such
as the purpose of the transaction or eligible allocation for thematic issuance, verification of relevant
2. The activities of the issuer must be classified as contributing for the green economy, based
controversies, sectors related to the green taxonomy and social, environmental and climate ratings.
on the criteria of Febraban’s Green Taxonomy, following the guidelines that seek to improve
human well-being, promote social equality and reduce environmental impacts.
3. The issuer must be analyzed by the ESG & Social, Environmental and Climate Risk team,
which will assess the issuer’s environmental, social and climate quality.
4. The issuer must have an internal social, environmental and climate rating “A” or “B”, which
indicates a low risk in these areas. This rating results from an owned methodology that
considers the potential of social, environmental and climate impacts, the management
capacity in these areas and the analysis of controversial notes and sectors.
5. The issuance should not involve any controversial purpose.
The most representative issuances in 2023 include those made for Aegea Águas do Rio SPE 1 and 4,
Rio+ Saneamento, Iguá RJ, Raízen and FS Bio.
R$23.4 billion in green
bonds
28% of total bonds
issued in 2023
6. The issuer and the transaction must be monitored during the period of effectiveness.
Offering
Segment
Product
The issuances that meet these criteria are accounted for as being in line with the green economy,
Aegea Águas do Rio SPE 1 and 4
Sanitation
reflecting our commitment to sustainable and responsible practices.
Rio+ Saneamento
Sanitation
Debentures
Debentures
Iguá RJ
Raízen
FS Bio
TOTAL
Infrastructure
Debentures
Logistics
Agribusiness
CRA
CRA
Total Volume
(in R$ million)
R$5,543
R$2,500
R$2,000
R$1,000
R$750
R$11,793
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Iguá RJ
Issuance of Incentive Debentures (12,431) for Águas do Rio 1
SPE S/A and Águas do Rio 4 SPE S/A, with surety by AEGEA
Saneamento e Participações S/A. The funds will go to future
payments or refund of expenditures, expenses or debts
relating to investments in expansion and improvement of
the water supply system, and implementation, expansion
and improvement of the sewage system of the cities served
Issuance of Simple Debentures for Iguá Saneamento Rio de Janeiro S.A., a
concessionaire that manages and operates water supply and sewage systems in
the states of Alagoas, Mato Grosso, Santa Catarina, São Paulo, Rio de Janeiro
and Paraná. The net proceeds from the funding will be used in financing or
refinancing investments that meet the eligibility criteria and relate to projects
with environmental and social benefits. The offering relied on the independent
opinion of Bureau Veritas Brasil, which attested the classification of the projects
by the issuers in the State of Rio de Janeiro. The offering
in the Sustainable Bonds Framework.
relied on the independent opinion of Sustainalytics, which
attested the classification of the projects in the Sustainable
Finance Framework.
Raízen
Rio+ Saneamento
In October 2023, Raízen Energia S.A. issued Agribusiness Receivables Certificates
(CRA). The debentures that backed the CRA were classified as “green debentures”
based on the commitment of the issuer to allocate the proceeds from the funding
Issuance of Simple Debentures for Rio+Saneamento BL3
to projects aligned with the ESG Framework, with a second opinion issued by
S.A., a water and sewage concessionaire of Rio de Janeiro.
Sustainalytics and available on Raízen’s website.
The net proceeds from the funding will be used in financing
or refinancing development, renewal, installation, and
expansion projects, and/or other capital expenses, as
well as grant expenses, maintenance services and other
operating expenses of the concessionaire. The offering
relied on the independent opinion of Bureau Veritas
Brasil, which attested the classification of the projects in
the Sustainable Finance and Blue Framework.
FS Bio
FS Indústria de Biocombustíveis participated in the issuance of Agribusiness
Receivables Certificates. The proceeds from the funding will be used in agribusiness
activities, and were characterized as Sustainable/Green CRA, based on the
certification issued by the Climate Bonds Initiative (CBI), attesting the compliance
with the Bioenergy Criteria of the Climate Bonds Standards Version 3.0, according
to the report issued by Sustainalytics.
Structured Notes
In 2023, we issued and made available to investors 11
“XP ESG #Refloresta structured notes”. The product
allows the exposure to a proprietary ESG index called
“SOLXPESG,” which follows the performance of a set of
ETFs, DSI (iShares MSCI KLD 400 Social), PHO (Invesco
Water Resources) and ICLN (iShares Global Clean
Energy), with potential for unlimited earnings and no
foreign exchange risk.
For every R$5,000 invested in the product, we donate
a native tree sapling to Instituto Terra, which works to
regenerate degraded areas in the Rio Doce Basin region,
which covers the states of Minas Gerais and Espírito
Santo.
The product totaled R$427 million in custody in 2023.
In addition to the donation, we monitor the planting and
growth of the seedlings in partnership with the Institute,
while investors receive a planting certificate.
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Funds
ESG Funds
FN-AC-410a.1 I FN-AC-410a.2 I FN-IB-410a.1 I FN-IB-410a.2 I FN-IB-410a.3
We ended the year 2023 with 38 ESG investment funds available on our platform, such as the Trend ESG
Global and the JGP Ações ESG 100 Icatu.
ESG Funds
AVIVA GLOBAL HIGH YIELD ADVISORY INVESTIMENTO NO
EXTERIOR FIC MULTIMERCADO CRÉDITO PRIVADO
XP AVIVA INVESTORS GLOBAL CREDIT ESG INTEGRATED DÓLAR
Net Worth in
December/2023
R$ 30,995,849.95
ADVISORY INVESTIMENTO NO EXTERIOR FIC MULTIMERCADO
R$ 25,502,317.69
CRÉDITO PRIVADO
TREND ESG GLOBAL DÓLAR FI MULTIMERCADO
ESG Funds
MS GLOBAL OPPORTUNITIES DÓLAR ADVISORY INVESTIMENTO
NO EXTERIOR FIC AÇÕES
SULAMÉRICA CRÉDITO ESG INVESTIMENTO SUSTENTÁVEL FI
RENDA FIXA CRÉDITO PRIVADO LP
COMPASS ESG CREDIT SELECTION FIC RENDA FIXA CRÉDITO
PRIVADO LP
SYSTEMATICA BLUE TREND ADVISORY INVESTIMENTO NO
EXTERIOR FIC MULTIMERCADO
Net Worth in
December/2023
SYSTEMATICA BLUE TREND DÓLAR ADVISORY INVESTIMENTO NO
EXTERIOR FIC MULTIMERCADO
NORDEA GLOBAL STARS ADVISORY INVESTIMENTO NO EXTERIOR
R$ 709,646,976.36
FI AÇÕES
R$ 604,307,169.69
BRADESCO FIA SUSTENTABILIDADE EMPRESARIAL
TREND CARBONO ZERO FI MULTIMERCADO
R$ 249,147,731.24
MULTIMERCADO
NORDEA ALFA 10 ADVISORY INVESTIMENTO NO EXTERIOR FIC
R$ 153,990,304.71
NORDEA GLOBAL STARS DÓLAR ADVISORY INVESTIMENTO NO
JGP ESG AÇÕES 100 PREV ICATU FICFIA
AQUA CAPITAL PRIVATE EQUITY AGRO 7 FIP MULTIESTRATÉGIA
R$ 137,057,585.77
VINCI IMPACTO E RETORNO ADVISORY FIP MULTIESTRATÉGIA
R$ 123,924,627.25
TREND ESG GLOBAL FI MULTIMERCADO
FAMA FIC AÇÕES
BLACKROCK GLOBAL EVENT DRIVEN INVESTIMENTO NO
EXTERIOR FIC MULTIMERCADO
MIROVA GLOBAL SUSTAINABLE EQUITY ADVISORY IS
INVESTIMENTO NO EXTERIOR FI AÇÕES
R$ 92,604,405.14
R$ 81,326,785.17
R$ 68,831,733.92
R$ 34,830,700.47
EXTERIOR FIC AÇÕES
NORDEA ALFA 10 DÓLAR ADVISORY INVESTIMENTO NO EXTERIOR
FIC MULTIMERCADO
TREND LIDERANÇAS FEMININAS FI MULTIMERCADO
EB FUTURO SUSTENTÁVEL FIP MULTIESTRATÉGIA
J EMERGING MARKETS ADVISORY INVESTIMENTO NO EXTERIOR
FI AÇÕES
R$ 23,015,412.89
R$ 22,424,160.22
R$ 17,922,126.72
R$ 15,972,721.39
R$ 15,702,538.98
R$ 14,744,587.54
R$ 14,514,942.90
R$ 14,420,036.93
R$ 14,244,310.40
R$ 12,036,257.82
R$ 8,751,957.51
R$ 7,692,251.70
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ESG Funds
WELLINGTON EMERGING MARKET DEVELOPMENT ADVISORY
INVESTIMENTO NO EXTERIOR FI AÇÕES
JGP ESG INSTITUCIONAL ADVISORY FIC AÇÕES
M GLOBAL BDR ADVISORY FIC AÇÕES BDR NÍVEL I
BLACKROCK ESG MULTI-ASSET ADVISORY INVESTIMENTO NO
EXTERIOR FIC MULTIMERCADO
Net Worth in
December/2023
R$ 5,693,771.34
R$ 5,286,586.49
R$ 4,812,784.93
R$ 3,899,062.36
Trend ESG Global FI Multimercado
ESG thematic fund from the XP Trend family focused on international investments. It offers
exposure to the performance of 1,050 shares of mostly large companies around the world
and with a high level of environmental, social and governance practices, through three ETFs
(Exchange Traded Funds, funds listed on the stock exchange): 50% in iShares ESG MSCI USA
(ESGU), comprised of more than 300 shares in the United States; 40% in iShares ESG MSCI
TREND ENERGIAS RENOVÁVEIS FI MULTIMERCADO
R$ 3,828,289.25
EAFE (ESGD), comprised of more than 450 shares in developed markets (except the United
AMUNDI BRIDGEWATER ALL WEATHER SUSTAINABILITY DÓLAR
ADVISORY FIC MULTIMERCADO
AMUNDI BRIDGEWATER ALL WEATHER SUSTAINABILITY
ADVISORY INVESTIMENTO NO EXTERIOR FIC MULTIMERCADO
SELECTION ESG FIC AÇÕES
XPA BLUE FIC MULTIMERCADO CRÉDITO PRIVADO
TREND ÁGUA TECH FI MULTIMERCADO
BB ASSET NORDEA GLOBAL CLIMATE AND ENVIRONMENT IS
INVESTIMENTO NO EXTERIOR FIC AÇÕES
BLACKROCK GLOBAL IMPACT ADVISORY INVESTIMENTO NO
EXTERIOR FI AÇÕES
OSMOSIS GLOBAL EQUITY DÓLAR ADVISORY INVESTIMENTO NO
EXTERIOR FIC AÇÕES
WESTERN ASSET ESG LEADERS HEDGED SUSTENTÁVEL IS FI
AÇÕES BDR NÍVEL I
R$ 3,458,711.30
R$ 3,263,286.36
R$ 3,257,156.74
R$ 3,032,645.75
R$ 2,337,872.85
R$ 2,146,378.17
R$ 2,066,080.78
R$ 1,936,223.69
R$ 783,921.70
States and Canada); and 10% in iShares ESG MSCI EM (ESGE), comprised of more than 300
shares in emerging markets.
JGP Ações ESG 100 Icatu Seguros FIC Ações Previdenciário
The Fund’s objective is to increase the value of its shares through the investment of resources
mainly in variable income assets, variable income derivatives, fixed income assets and fixed
income derivatives. The Fund’s philosophy is to invest in companies that present high levels of
corporate governance and that consider, both in their strategic decisions and in their day-to-day
operations, the best practices for sustainable development and preservation of the environment.
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Real Estate Funds
XP Asset has a Responsible Investment Policy and an ESG Committee tasked with guiding and monitoring the integration
In 2023, XP Asset released its second Real Estate Sustainability Report. The publication
of ESG issues across more than 20 real estate funds under its management. These funds are made up of real assets,
obtained the highest score (level A) in the GRESB Public Disclosure tool and is available
such as shopping malls, logistics centers and corporate buildings, structured credit funds and development funds.
on the website www.xpasset.com.br.
Together, they have more than 1.8 million shareholders and total equity of R$13.9 billion in assets.
Annually, three Real Estate Investment Funds (REITs) are submitted to evaluation by GRESB (Global Real Estate
Sustainability Benchmark), a global organization specialized in assessing the environmental, social and governance
(ESG) performance of companies and funds in the real estate and infrastructure sector.
In 2022, the three REITs obtained excellent evaluations, which are the result of initiatives such as energy, water
and waste consumption data management; stakeholder engagement program; monitoring the percentage of lease
contracts with “green” clauses (green lease); and a satisfaction survey conducted with users of the funds’ assets.
Based on this survey, plans for improving the management and efficiency of real properties are defined. The ESG
Forum of XP Asset’s Real Estate area meets monthly to evaluate the progress of initiatives and indicators.
• Our three funds evaluated by GRESB in 2023 (XP Log FII, XP Properties FII and XP Malls FII) achieved
the Green Star recognition. XP Log was the third best rated in Latin America and the Caribbean.
• Two assets in our portfolio (Catarina Fashion Outlet from XP Malls FII, and Faria Lima Plaza from
XP Properties FII), achieved the LEED O+M certification (for building operation and maintenance).
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Pension Funds
Institutional Investors
XP Vida e Previdência has under its mandate a pension fund formed by
The Institutional Investors channel is responsible for commercial services to closed supplementary pension entities
companies with sustainable practices, the “JGP ESG Ações 100 Previdenciário
(pension funds), RPPS (Personal Social Security System), insurance companies and financial institutions. Due to the
XP Seguros FI em Quotas de Fundos de Investimento de Ações,” a long-only
volume under management and the importance to the financial market ecosystem, the allocation made by these
ESG mandate equity fund dedicated to companies committed to sustainability
institutions impacts the market and dictates trends.
in their operations.
The ESG agenda is highly demanded by these institutions, which seek to understand how ESG criteria are inserted
The fund flexibly adjusts its net exposure to equities between 85% and
in processes and products, which generates greater engagement of asset managers on the topic. In 2023, we raised
100% of its net assets and seeks to achieve a risk-return ratio better than
a significant volume from an insurance company for the first time for an impact fund manager, and we continue our
that of Ibovespa in the long term. The ESG concept has been integrated into
efforts to ensure that third-party managers and XP Asset itself have more products adapted to institutional clients.
the investment philosophy, complementing a rigorous fundamental analysis
and the understanding of market, political and economic cycles. Among the
practices adopted, the following stand out: restrictions on investing in certain
sectors, use of ESG assessment frameworks in the company analysis process,
active engagement in improving the ESG practices of invested companies, and
control of the portfolio’s carbon and water footprint.
Two other funds, VRB Advisory Crédito Privado and VRB Advisory Multimercado,
donate part of the management fee to social projects focused on education
that benefited almost 1 million children and young people.
+R$81 billion AUC
Institutional clients
+400
Institutional clients
TAOS ESG INVESTIMENTO SUSTENTÁVEL FIC
MULTIMERCADO CRÉDITO PRIVADO
The fund, started in 2021, ended 2023 with growth of R$340 million, despite being impacted by events
in the private credit market.
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ESG Research
The ESG Research team produces nominal analyses of companies, sector analyses, thematic reports and a daily
curation of content to provide guidance on decision-making for both Retail investors and institutional investors
(investment funds). This work generates high visibility for our brand in the media.
Furthermore, since 2021, we have maintained a recommended ESG portfolio, reviewed monthly, which aims to
outperform B3’s Corporate Sustainability Index (ISE) in the long term. In addition, we hold ESG Coffee, a daily summary
of the latest news from Brazil and the world on the topic, which, in addition to political and sector updates, discusses
the historical performance of the main ESG indices in different countries, comparing them with the performance of
IBOVESPA and ISE.
Throughout the year, the team published 117 reports focused on ESG issues that covered 136 companies, and held 65
meetings with institutional investors, in addition to exclusive events on topics that are in the crosshairs of investors.
Research ESG also led panels on the topic at Expert 2023, the largest investment event in Latin America, bringing the
topic to the forefront of the discussion.
XP was the first investment company in Brazil to have an area dedicated to analyzing the environmental,
social and governance performance of publicly traded companies and identifying major topics that are
shaping this agenda.
431 thousand views of the content on the Research ESG page in 2023
3.5 thousand unique users reached
80 thousand views of content on social media
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QUALITY IN RELATIONSHIPS
By placing the customer at the center, we want to build lasting relationships with our stakeholders, ensuring
the continuity of the business and creating long-term value for employees, suppliers and our entire chain of
relationships.
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ESG engagement
GRI 2-29
Stakeholder engagement in strategy and ESG topics is a daily occurrence at XP in relationships between business managers, advisors and consultants with clients, in sharing challenges with employees, in internal
exchanges between areas and in interactions with investors and other stakeholders.
Individual and corporate clients
Employees
• ESG scrutiny in client onboarding.
• Internal communication.
• Social, environmental and climate risk assessment.
• Mandatory policies and training on ESG topics.
• Offering products and services with a socio-
• Compliance Week, dedicated to raising awareness,
Business partners
• Mandatory training on topics such as Compliance,
Code of Ethics and Conduct for partner offices.
• Code of Ethics and Conduct and other policies.
environmental bias.
• Research area.
• ESG themed events with retail, corporate and
institutional clients.
• Lectures with ESG topics at Expert XP.
raising awareness and training in legal, social,
• ESG scrutiny when engaging with partners and
environmental, climate and governance integrity
periodic risk analysis.
and compliance.
• Attribution of the Governance and Integrity Seal
• Participation in Compliance Week.
Investors
Suppliers
Society
• Regular schedule of meetings and meetings.
• ESG scrutiny in hiring.
• Review of the materiality process, identifying
• Socio-environmental risk analysis.
relevant issues for investors and establishing goals
to continue evolving in each pillar.
• Code of Ethics and Conduct.
• Participation in events, such as Compliance Week.
• Financial education, with its own actions and
carried out by Instituto XP in partnership with
representative, high-impact social organizations.
• Transparency in donations.
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Customers
GRI 417-1
We adopt a holistic approach to customer relationships that is not focused on products, but on solutions
that help people and companies develop and prosper with positive social and environmental practices.
By placing the customer at the heart of our strategy, we shape a more human approach to addressing
their diverse needs. In the Investment area, this strategy is rooted in the intensive use of technology to
offer solutions adapted to different types of customers.
For large investors, for example, we offer a range of customized processes and exclusive products.
For others, we adopt a digital first approach, which prioritizes digital advisory services and scalability
through the intelligent use of technology. We implemented this model at Rico, with plans to expand
throughout all of XP Investimentos.
Technology also plays a fundamental role in the strategy by supporting advisory offices, ensuring
operational efficiency, excellence in customer service and ongoing monitoring of risk and compliance.
This approach can be seen in initiatives such as the XP Gênio program and Matcher XP. Matcher XP
allows offices to determine the ideal characteristics of an advisor, and the system connects them to the
most suitable profiles. The goal is to resolve one of the primary challenges faced by financial offices:
hiring qualified professionals.
XP Gênio, the suitability tool that supports
investment decisions
FN-AC-270a.3
We created an unprecedented system in the market, XP Gênio, which supports investors to provide
them the freedom to choose their investments with enhanced risk control. The tool evaluates the
portfolio and alerts advisors about any misalignment with the investor’s profile. In practice, it
establishes a score, which ranges from 1 to 100, taking into account the following risks:
• Market, related to asset price fluctuations.
• Credit, which indicates the likelihood that an asset will not return the money with the agreed
interest.
• Liquidity risk, meaning the potential variation in the price of an asset depending on supply
and demand.
The higher the score, the riskier the application tends to be, facilitating the free choice of
products, but in different doses suited to the profile of each client. The information provided in
the suitability questionnaire (page 116) is added to the information on the financial and asset
situation and regular income recorded in the client’s records.
This way, the client is always aware of what the risk to their portfolio is and how much the
risk increases or decreases when making a move. The tool also allows profile customization,
providing a diversified portfolio that is more suitable for each investor.
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Customer Committee
NPS - Net Promoter Score
GRI 2-29
Created in 2023, the Customer Committee is made up of
We use customer feedback to inspire new products, services and improvements. One
a multidisciplinary team that includes customer-focused
of the tools we use for this is NPS. We release quarterly results, both to investors
solution design, product development and technology.
and our teams. Internally, NPS feeds goals and improvements organically, with each
The group prioritizes the company’s main focuses at each
product advisor and customer channel adjusting their strategies based on feedback.
moment, allocating resources to priority areas according to
the customer experience.
CX Days
To improve our Customer Experience practices, we created
CX Days, a two-day program held once a year. During the
event, the company’s top executives, board members,
directors and leaders actively participate in customer
service to better understand the needs and challenges
facing consumers.
At the end, participants leave with a list of initiatives
to improve the customer experience in their respective
areas, resulting in concrete actions that help improve the
quality of the service offered. We are able to use this in
order to impact leaders so that they do not stray from
customers’ concerns.
NPS is also used as a metric for senior management performance. Executive
directors have goals linked to improving the indicator, which are broken down to
employees in different areas and business units.
In 2023, the NPS dropped by one point. As an example of what happened in the
previous year, we attributed this drop to the position the company was in, with
the opening of new business areas that are still being structured, as well as the
movement in the workforce to bring in people with the skills and abilities needed
for the activities involved in the new business verticals, such as Retail Banking.
Evolution of NPS - Net Promoter Score
2021
2022
2023
76
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Espaço XP
Espaço XP was designed to be an
experience hub for
investors and
financial market professionals. The
goal
is
to have
representatives
spread across different states and
municipalities with XP training and
knowledge of local culture. Espaço XP
serves both individual investors and
businesspeople, that is, from retail
to wholesale banking, focused on the
relationship between advisors and
clients and the promotion of financial
education through
lectures, events
and workshops on topics that impact
the lives of investors.
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Employees
Between 2020 and 2023, we recorded an 82% growth
in the number of employees, helping us in our strategy
of expanding new business verticals. On this journey,
we strengthened our entrepreneurial brand and people
management focused on creating opportunities based
on merit and long-term vision, with initiatives aimed at
attracting, retaining and developing talent. During this
period, our employees also changed their profile and
became more diverse.
Number of employees
2020
2021
2022
2023
3,651
6,192
6,928
6,667
Hybrid and flexible
working model
Our culture
is shaped by opportunities for
interaction, collaboration and exchange, which
reinforce the trust we build between our teams
and with our customers. That’s why we’ve taken
the remote working experience to the next level,
starting in 2020 with a hybrid and flexible model
that combines the best of both remote and in-
person work. This model favors freedom with
responsibility, people’s well-being and performance
with self-management.
The portion of time in which each structure works
remotely and in person may vary, according to
the nature of each role and career and the needs
of the company and customers. Sales teams, for
example, may have more frequent face-to-face
meetings than some staff in more technical and
support areas.
Employee profile
FN-AC-330a.1 I FN-IB-330a.1
Total number of employees, broken down by gender*
GRI 2-7
Men
Women
Total
2021
4,120
2,072
6,192
2022
4,529
2,399
6,928
2023
4,375
2,292
6,667
* Gender as specified by employees themselves (self-declared).
Total number of employees, broken down by region
GRI 2-7
North
Northeast
Midwest
Southeast
South
Abroad
Not applicable*
Total
2023
57
409
169
5,591
345
16
80
6,667
* Offshore employees, who work at the New York and Miami units, are subject to United States labor
legislation and exempt from responding to the census upon hiring.
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Total number of employees by type of contract, broken down by gender*
GRI 2-7
Total number of workers who are not employees and whose work is controlled by
2023
Men
Women
Total
* Gender as specified by employees themselves (self-declared).
Permanent / Full-time
Temporary / Part-time
the organization by gender*
GRI 2-8
4,194
2,199
6,393
181
93
274
Men
Women
Total
2021
717
534
1,251
2022
688
592
1,280
2023
767
585
1,352
Total number of employees by type of contract, broken down by region
GRI 2-7
* Control by region of the number of workers who are not employees and whose work is controlled by the organization is not carried out
2023
North
Northeast
Midwest
Southeast
South
Abroad
Not applicable**
Total
Permanent / Full-time
Temporary / Part-time
57
386
167
5,345
342
16
80
6,393
0
23
2
246
3
0
0
274
“Full-time” and “permanent contract”: CLT employees. Part-time and temporary contract: interns and apprentices, considering the
reduced working hours and temporary/maximum-term contracts (two years for interns, for example).
*Abroad: considered as any XP employee who does not have their main home in Brazil.
**Offshore employees, who work in the New York and Miami units, are subject to United States labor legislation and exempt from
responding to the census upon hiring.
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New hires and job turnover
Total number and rate of new hires
GRI 401-1
Total number and turnover rate of employees
GRI 401-1
2021
2022
2023
2021
2022
2023
Number
%
Number
%
Number
%
Number
%
Number
%
Number
%
Broken down by gender*
Men
Women
2,035
1,335
Broken down by age group**
Under 30 years old
1,587
From 30 to 50 years
old
Over 50 years old
Total
1,721
45
3.353
42%
51%
60%
51%
54%
1,487
851
1,357
952
29
2.338
34%
37%
47%
26%
25%
Broken down by gender*
953
519
21.8%
22.6%
Men
Women
656
245
982
465
25
1.472
35.0%
12.5%
16.7%
Broken down by age group**
Under 30 years old
From 30 to 50 years
old
Over 50 years old
Total
344
535
16
895
14%
9%
13%
16%
19%
1,068
534
557
1,007
38
1.602
24%
23%
19%
28%
33%
1,265
630
30.4%
28.8%
801
1,071
23
1.895
31.1%
29.6%
17.4%
* Gender as specified by employees themselves.
* Gender as specified by employees themselves.
**Rule for calculating age: Under 30 years old: younger=30; from 30 to 50 years old: between 30 and 50; over 50 years old: older=50.
Turnover= Dismissed (without considering interns)/ Average number of employees in the year (without considering interns)
** Rule for calculating age: Under 30 years old: younger=30; from 30 to 50 years old: between 30 and 50; over 50 years old: older=50.
Turnover= Dismissed (without considering interns)/ Average number of employees in the year (without considering interns)
Voluntary and involuntary exit
GRI 401-1
Voluntary exit
Involuntary exit
2022
Women
Total
238
296
785
817
2023
Women
Total
301
329
928
967
Men
627
638
Men
547
521
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Goals and performance
360° assessment
GRI 402 | 404-3
We conduct a 360° Assessment every six months, in which all our
Meritocracy is one of the pillars that support the way we think about people in the company. We have a robust cycle, with
employees are evaluated by their leaders, peers and other stakeholders,
well-defined and detailed goals for the teams, ensuring constant results, continuous improvement and transparency about
based on two key pillars: performance and adherence to culture.
the objectives that need to be achieved.
Our cycle of meritocracy and development
Meritocracy Cycle
Choice of
evaluators
Check-in
Performance
assessments
Definition of PLR
profit sharing, part-
nership, promotions Calibration*
Feedback and
distribution
Follow-Up
Follow-Up
Check-Out
Continuous feedback (considering everyone in the company)
* Calibration is carried out in the meritocracy cycle of the second half
Development Cycle
People forums
In order to cover all areas of the company, the “People Forums” contribute to calibrate the performance of 360° assessments
and goals, eliminating assessment biases and the impact of external factors on individual performance.
In 2023, we saw an historic level of employee and leadership participation
(96%) in the assessment cycle, ending the year with 96% of assessments
completed and calibrated in people forums (below). Employees who were
on leave, worked less than 45 days in the 2nd half of 2023 or did not
have at least 60 days of employment at the start of the cycle did not
participate.
96% of
employees
participated in the
360º assessment
6.863
professionals
evaluated*
34% women
66% men
*The total number of professionals evaluated is greater than the number of employees reported
on 12/31/2023 given that the evaluation cycle took place in July and November 2023.
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Satisfaction and engagement
We periodically measure the satisfaction of our employees and provide anonymous channels with no impact on performance
evaluations, so that each employee can contribute to our continuous improvement process and be a guardian of our Code of Ethics
and Conduct.
Pulse survey
Conducted bimonthly, the survey provides insights into team
satisfaction and engagement. Its results do not influence meritocracy.
Our leaders are instructed to set aside a moment in their schedules
to analyze the results from the survey and deepen the diagnosis with
the teams, better understanding possible shortcomings.
Teams are then encouraged to look for solutions to potential issues,
creating action plans that will have someone responsible for executing
and adhering to deadlines. The progress of each plan is monitored by
leadership, which can adjust the course of action when necessary.
77% participation in the survey
5% compared to the previous year
Employer Net
Promoter Score -
eNPS
Measured bimonthly, the eNPS assesses
the loyalty, satisfaction and engagement
of employees and leaders. In 2023, the
score obtained was 63. Our People
Analytics area cross-references the
results of Pulse surveys with eNPS
indicators to understand what the biggest
predictors of satisfaction are, prioritize
People & Management initiatives and
guide decision-making.
Compensation and
incentives
Our compensation consists of a fixed monthly salary, whose
initial value is a direct consequence of the combination between
position and career, in addition to variable compensation based on
the company’s earnings and the individual performance of each
employee. The practices are regulated by the Corporate Policy on
Positions, Merits, Promotions and Effectiveness.
The fixed salary is linked to the responsibilities of the position, the
area of activity and seniority and may be increased as employees
advance in their careers through promotions or annual salary
adjustments according to the collective bargaining agreement.
Variable compensation is paid every six months and is directly
related to the performance of the company, the unit in which the
professional is allocated and their individual performance. The
performance of the company and the business unit is determined
by the goals, while individual performance is evaluated taking into
account the results of the 360 assessment.
To ensure the attractiveness and competitiveness of our
compensation strategy, we conduct market research every two
years in which we compare ourselves to other financial services,
technology and startups companies in Brazil and around the world.
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Partnership Program
Ratio of basic salary and compensation of women to men for each employment category
The most significant long-term incentive for our employees is the
possibility of becoming partners in the company through Restricted
Stock Units and Performance Stock Units, with a vesting period of
at least five years. The selection process for new partners takes
place once a year, and all employees are eligible for the program.
We look for four main characteristics in our future partners: culture
and leadership, performance track record, growth potential and
strategic position. The average time for an employee to become a
partner is around three years.
GRI 405-2
Position
Executives
Directors
Superintendents
Managers
Coordinators
Specialist
2021
2022
2023
101%
96%
89%
98%
92%
89%
91%
95%
90%
530 employees are partners of XP
Full Administration and Operational
91%
93%
93%
Senior Administration and Operations
30% do not hold leadership positions
Junior Administration and Operations
Administration and Auxiliary Operations
23% are people from corporate
areas
34 years old (average)
Interns
Apprentices
87%
102%
78%
97%
100%
91%
97%
100%
98%
The calculation considers the average fixed salaries for each gender (female and male), segmented by seniority and by year.
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Training and education
GRI 404-2
In 2023, we recorded 15,231 hours of training for employees and
33,361 hours of leadership training. Discover the main programs
Campus XP
Leadership
development
below.
Level up: Udemy
Featuring an employee-focused approach and an end-to-end
Leadership plays a crucial role in the success of XP Inc.,
learning ecosystem, the initiative covers all XP employees. It
which is why we place a strong emphasis on providing
presents a portfolio of regulatory content, as well as training to
development opportunities for our high-performing
accelerate employees’ careers and develop essential skills for the
leaders.
Since 2021, we maintain a partnership with Udemy Business in
which a set number of licenses for the online course platform are
distributed to XP employees. The goal is to further encourage the
autonomy and leadership of our talents through a scalable learning
program, which offers personalized training wherever they are.
650
participants
37%
women
19,856 hours
of training in
2023
62% monthly
active users
future of XP.
Brokerage Sales Program
We launched the first Broker Training Program in the market in
an effort to cultivate our culture from the Broker/Institutional
base, attracting the top talent to ensure the sustainability of our
excellence over the medium and long term.
XPlores Program
Through this program, we invested in training software developers
in partnership with Trybe, a leading school in the field. Between
2022 and 2023, the initiative made it possible to hire 159 people
for the software engineering department – 23% of the number of
employees in the area.
Throughout the year, 1,000 leaders participated in our
development programs, with an average of 33.36 hours
of training per leader. In addition to group discussions
and lectures, such as the “Leader talk” and the “Lunch
for Business Unit and Platform leaders,” we implemented
other initiatives.
Lunch for business unit and platform
leaders
Meeting of leaders to discuss and align People, Management
and Business topics, with 35 participants over the year.
67
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Leader Talk
Leaders Academy
Leadership Offsite Meeting
Led by a top XP leader, an exclusive group discusses good People
Prepares professionals to exercise leadership. Special emphasis to
Meeting to align the areas of People, Management and Strategy,
& Management practices and leader skills, with 393 leaders
the participation of 800 individual contributor leaders.
which assembled 110 executive leaders and director leaders.
participating.
Leadership Program
Shift Program
XPonential Executive
Program that trains delivery and specialty leaders, with the aim
Development journey to leverage XP Inc. leadership and strategy
Program aimed exclusively to prepare young talents to become
of developing talents who serve in these new roles in XP’s matrix
competencies, attended by 60 executives.
business leaders.
model. In 2023, we trained 64 people in the Products and Design
specialty. Other leadership development actions include:
Leadership
training
2021
2022
2023
Total hours
15,256
19,800
33,361
Average/hours
15
18
33.36
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Internship Program
Onboarding Program
We provide new talent with a unique development path. Our interns are supported through the help and
The onboarding process is focused on culture, values and our business strategy. In 2023, we redesigned
mentoring of the company’s diverse professionals to improve their technical development and enhance
the program, which lasts three days, to provide greater exposure to the topics of People & Management,
their interpersonal skills. The program’s workload is 30 hours per week, with flexibility to adapt to
equipment and access configuration, XP culture and content about the business.
academic activities.
The inclusion of executive leaders and XP partners as speakers yielded a positive NPS score, which stood
The intern’s focal point throughout the selection process is a person from the Recruitment & Selection
at 93, and in engagement of the agenda. During the program, new employees perform an ergonomics
team, but they are also evaluated by the leadership of the vacancy in the area of interest and, eventually,
test, sending photos of their work environment and, upon analysis, we arrange for the acquisition of
by future peers and stakeholders. Those selected go through a stage with 100% focus on culture, which
necessary furniture.
we call a “Bar Raiser.” In 2023, the hiring of interns was focused on São Paulo.
11.4 thousand
applicants
272 hired
1,200 new
employees trained in
2023
Welcome Kit
with bottle, squeeze,
backpack, moleskine and
the book Na Raça.
Total and average hours of onboarding training per year, per new employee
34% women
6% LGBTQIAPN+
16,9% black
0,4% PwDs
Total hours
Average hours
2021
36,102
10.9
2022
23,38
10.8
2023
23,04
16
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Diversity and inclusion
GRI 2-7 |GRI 3-3 I GRI 405-1 | SASB FN-AC-330a.1 | SASB FN-IB-330a.1
We are committed to moving forward on incorporating all the diversity that exists in society into our work
With this in mind, we reviewed our goals, maintaining our commitment to reaching a new level
environment and, between 2020 and 2023, we achieved significant progress in this regard. The number of
of diversity in the coming years. The redefinition of objectives considered the company’s new
women in the company jumped from 26.5% to 34.4%, with 26.7% occupying leadership positions, compared to
workforce and our current work model.
12% recorded in 2020.
Our hiring and promotion processes have been enhanced to eliminate bias and subjectivity in
Likewise, the presence of black people grew from 17.6% to 20%, with 12.5% occupying leadership positions. People
decisions, so that they are guided by data and facts throughout the people management cycle.
with disabilities now make up 1.3% of our workforce, an increase from 0.7% previously. As for the LGBTQIAPN+
We also promote training on biases and address the topic in leadership training and through
presence, we went from 3.9% to 4.8%.
internal communication.
A more diverse and inclusive environment combines different experiences and perspectives, helping us to better
understand consumer requests and to continue innovating and making a difference in the lives of millions of
Brazilians. However, there are still a number of challenges that need to be overcome.
Our 2030 goals
Evolution of diversity in our internal environment
2020
2023
40% of women
in the company
15% of black people in
leadership positions
34,4%
26,5%
26,7%
20,0%
17,6%
12,0%
Number of
women in the
company
Women in
leadership
positions
Black
people
12,5%
-
Black people
in leadership
positions
0,7%
1,3%
People with
disabilities
3,9%
4,8%
LGBTQIAPN+
24% black people
+5% of people with
disabilities
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Affinity groups
A voluntary initiative by our employees, affinity groups play an important role in allocating our diversity
Percentage of employees by employment category
GRI 405-1
and inclusion actions. Each group is committed to offering a safe and welcoming space that works as a
support network for its members to connect and collaborate to develop each topic internally.
2021
2022
2023
• MLHR3: focused on promoting gender equality and equity, providing mentoring and promoting
employee awareness.
• INCLUIR: focused on physical, digital and behavioral accessibility and awareness of disability
issues.
Number
%
Number
%
Number
%
Broken down by gender*
Men
Women
4,120
2,072
66.54%
33.46%
4,529
2,399
65.4%
34.6%
4,375
2,292
65.6%
34.4%
• BLACKS: supports awareness about structural racism and racial injustices in the world of work.
Broken down by age group**
• SEJA: is the collective for the creation of a safe and diverse environment for LGBTQIAPN+ persons..
Under 30 years old
2,495
40.3%
3,159
45.6%
2.808
42.1%
Throughout the year, the groups held livestreams on discrimination, harassment and career challenges
for black people, people with disabilities and LGBTQIAPN+ and the use of the Reporting Channel with
the participation of internal and external experts. Tickets for the ESG Racial conference, the largest
equity event in the country, were also raffled off.
We also take advantage of external events to put the topic on the agenda. During Expert XP 2023, we set
up a space with manual and electric wheelchairs to help move around at the event, including dedicated
volunteers to support mobility and audio description, as well as Portuguese sign language interpreters.
From 30 to 50 years
old
3,610
58.3%
3,651
52.7%
3.709
55.6%
Over 50 years old
80
1.3%
118
1.7%
150
2.2%
Broken down by race
Asian
White
Indigenous
Black***
Not reported
Total
-
-
-
-
4,960
80.1%
5,501
79.4%
-
-
-
-
1,232
19.9%
1,427
20.6%
-
-
-
-
170
4,835
7
1,335
320
6.192
100%
6.928
100%
6.667
2.5%
72.5%
0.1%
20.0%
4.8%
100%
* Gender as specified by employees themselves.
**Rule for calculating age: younger=30 I between 30 and 50 I older=50.
*** Black and brown people, based on self-declaration made by employees.
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Physical, mental and financial well-being
GRI 403-1 I GRI 403-3 I GRI 403-4 I GRI 403-6 I GRI 403-7 | GRI 403-8 I GRI 401-2 | GRI 401-3
The well-being of our employees is essential to maintaining a
Health and dental plans
Physical activity
collaborative, happy and productive environment. Therefore, we
seek to offer a benefits package that supports and promotes the
physical, mental and financial health of each professional.
XP Educação courses
We offer employees, apprentices and interns two health and dental
Gympass is a benefit focused on the health of our employees, which,
plan options with national coverage, travel insurance, unlimited
in addition to entry to gyms, provides access to virtual classes and
reimbursements and a wide accredited network of doctors, hospitals
physical activity, meditation and therapy applications, according
and laboratories.
to the chosen plan.
We understand that financial education can transform lives. This is
Meal vouchers and food vouchers
Day care allowance
why we provide our employees with free courses or courses with
up to 80% discount, in a partnership with Udemy Academic for
learning and development programs, with hired per class, following
internal criteria, in addition to investment advice and access to
exclusive investment funds.
Maternity leave and paternity leave
Maternity leave is also a valid benefit in cases of adoption by
employees who have become parents and who are INSS insured. As
part of the Citizen Company program, in addition to the standard
leave, we offer an additional 60 days for mothers, totaling 180
calendar days, and 20 days for fathers, 15 more than stipulated by
law.
The food vouchers and meal vouchers benefit is available monthly
The daycare allowance supports the care and education of our
to all employees, including minor apprentices and interns.
employees’ children. It works as a reimbursement of up to R$510.00
for children up to 60 months old, to pay for caregivers (nanny) or
daycare.
Discount platform
We have partnered with New Value, a benefits platform that offers
the opportunity to save money in a simple way. There are over
Life insurance
25,000 brands and establishments available in eight categories of
Covers natural or accidental death, death of a spouse, with
products and services: Culture and Leisure, Eating and Drinking,
indemnity of 50% of the insured capital, death of children, with
Shopping, Travel and Tourism, Pets, Beauty and Fitness, Education
indemnity of 25% of the insured capital, and funeral assistance.
and Services.
Mental health
Zenklub platform, which offers support from professionals
specialized in mental health.
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Parental leave
GRI 401-3
2021
2022
2023
Man
Woman
Man
Woman
Man
Woman
Total number of employees who were entitled to take
maternity/paternity leave
Total number of employees who took parental leave in the
current year.
119
61
Total number of employees who took parental leave in
the current year, and whose leave also ends in the current
57
year.
Total number of employees who took parental leave in the
previous year, and whose leave ends in the current year.
Total employees expected to return in the current year
Total employees who returned to work after the end of
parental leave.
Return rate
Total employees who returned to work in the previous
year and remained employed for another 12 months,
which ended in the current year
Total employees who returned in the previous year
Retention rate
* Gender as specified by employees themselves.
Occupational accidents
GRI 403-9 | GRI 403-10
41
41
13
10
23
40
187
60
56
1
57
60
69
69
27
18
45
69
165
75
71
3
74
75
109
109
39
24
63
109
Freedom of association and trade unions
GRI 407-1
We promote freedom of association and unions among our
employees. As provided by law, all of our employees are linked to
a union. We have no record of operations or suppliers in which the
right to freedom of association and collective bargaining has been
put at risk.
3
60
61
100%
98%
100%
100%
100%
100%
32
40
8
10
80%
80%
44
60
73%
15
23
65%
40
34
57
70%
45
76%
Collective bargaining agreements
GRI 2-30
A total of 93.79% of our 6,667 active employees at the end of
2023 were covered by the collective bargaining agreement of the
trade union of the respective company to which they are allocated.
The 6.21% not covered by the agreement are interns, statutory
employees and employees who work outside Brazil.
In 2023, we recorded two accidents related to commuting (employees traveling between home and work), without serious consequences.
There were no deaths, occupational accidents or occupational illnesses reported among employees or non-employed workers. Between
2021 and 2022, we had no accidents.
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Suppliers
GRI 204-1 I GRI 414-1 | GRI 308-1 I GRI 409-1
Sector filter
We have 4,6 thousand active suppliers, and more than 85% of them are suppliers of local products and services,
contracted in Brazil. All of them are subjected to social, environmental and climate assessment during procurement
through a process that follows two distinct analysis: one for suppliers with high and medium potential for social,
environmental and climate impact, depending on the type of activity they carry out, and another for suppliers
with low potential for social, environmental and climate impact.
The first group undergoes a more in-depth manual assessment and, for the second, we adopt an automated
procedure. We thus cover 100% of our product and service providers, reducing the risk of problems such as
slavery-like work, child labor and illegal deforestation, and promoting sustainability in our supply chain.
Suppliers’ social, environmental and climate risk analysis flow
Companies with
high or medium
impact potential
In-depth
manual
analysis
Negative media + judicial
and administrative
Result
determines
proceedings + restrictive
whether to hire
lists + ESG questionnaire
or not.
Companies from sectors with high social,
Companies from sectors with low social,
environmental and climate impact
environmental and climate impact
100% subject to in-depth assessment
carried out by an analyst.
Automated procedure
In case of negative media, they are
subjected to in-depth analysis.
4.232 suppliers
validated in 2023
R$12 billion
in amounts paid
to providers
97,7% of spending with
local suppliers contracted
in Brazil
100% assessed from
the perspective of social,
environmental and
climatic risks
Companies
with low impact
potential
Automatic
analysis
Negative media + judicial
and administrative
proceedings +
restrictive lists
If there is any
note, it goes
to the manual
analysis. If not,
it is approved.
Our Social, Environmental and Climate Responsibility Policy (PRSAC) prohibits any type of
relationship with companies that maintain labor exploitation practices in conditions analogous
to slavery, child labor, human trafficking and others that violate human rights.
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As we contracted a service that supports us in supplier management, we integrated our methodology
Operations and suppliers at significant risk for incidents of child
with that provider’s platform (Linkana), which, as a standard, has adopted social, environmental and
governance criteria in the management cycle. Based on the company’s CNPJ (Corporate tax ID) in the
labor
GRI 408-1
validation process, the Linkana platform collects a series of indicators, such as public and private data
on compliance and environmental licensing, labor regularity and summonses for slave labor and child
labor.
In 2023, among our 4,648 suppliers with an active CNPJ, we mapped 12 suppliers (0.26% of total) with
a risk of child labor, 11 of them in the textile sector (91.66%), and one in the agricultural sector (8.33%).
Nine of these companies are located in the Southeast region, two in the South and one in the Northeast.
Cases of corruption, operating license and data on the company’s financial, fiscal and labor health are
Looking at the total of 1,929 operations, we identified 56 (2.90%) operations with a risk of child labor,
also observed. The indicators form ratings that point to the level of risk, which is taken to our supplier
23 in the textile sector, 33 in the agricultural/livestock sector.
management area and to the technical area, where a decision is made whether or not to engage the
supplier, in accordance with the validation result.
Our goal
100% of suppliers assessed from the perspective of social, environmental and climate risks.
How have we progressed
100% of suppliers assessed from the perspective of social, environmental and climate risks.
Key initiatives
• Proprietary methodology for analyzing social, environmental and climate risk
• Definition of governance and approval authority
• Inclusion of socio-environmental clauses in contracts and contracting terms
• Employing the Linkana system through the generation of ESG scores and incorporation
of our proprietary analysis methodology
It is important to mention that, although we classify these suppliers as being at risk of child labor due to
the higher potential for incidence of cases in these sectors, no active or operational suppliers had any
incident of child labor.
Operations and suppliers with significant risk of cases of forced or
compulsory labor
GRI 409-1
Among our 4,648 suppliers with an active CNPJ, we identified 73 companies (1.57% of the total) at risk
of cases of forced or compulsory labor. In relation to operations, we mapped 98 operations (5.08%)
with a risk of cases of forced or compulsory labor.
It is important to mention that, although we classify these suppliers as being at risk of forced or
compulsory labor due to the higher potential incidence of cases in these sectors, no active supplier or
one with operations with XP recorded an incidence of forced or compulsory labor.
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SOCIETY
We have an ambitious dream of impacting 50 million people with financial education initiatives by 2030.
Together, we will build a more powerful and sustainable Brazil, where people are equipped with the skills they
need to shape their financial well-being.
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Our social investment is carried out through Instituto XP, which
uses financial education and the development of socio-emotional
skills as tools for inclusion and social empowerment, impacting
millions of children, young people and minority groups each year.
Created in 2021, the Institute’s main targets are students from the
public school students, women and other vulnerable groups.
We chose this approach because we understand that education can
transform people’s lives. This is especially important in a country
with a high number of indebted and over-indebted households
and lack of a deep-rooted savings and investment culture. We
understand that this is where we can make our most significant
contribution to society.
As such, in 2023 we reviewed the portfolio of supported projects to
centralize efforts in bringing financial education to schools through
projects and organizations with exemplary levels of quality and
effectiveness. To enhance these measures, we seek to strengthen
relationships with influencers, teachers and researchers through
partnerships, content production and awards.
The initiatives involve both our own projects and those done in
partnership with social organizations. In addition, Instituto XP
earmarks funds and resources to social projects through incentive
laws, direct donations and volunteering.
Our goal
How have we progressed
Provide financial education to 50 million
Brazilians by 2030
11.2 million people directly impacted by
our financial education initiatives between 2021 and
2023
Key initiatives
• Educação Financeira Transforma Award
• XP Educação Courses
600 registrants, total of 480 thousand Reais in prizes for
+22 thousand people trained
24 finalists
• Tino Econômico newspaper
(Murilo Duarte)
• Partnership with Favelado Investidor
+269 thousand printed copies distributed in schools
+ 54 thousand young people impacted
throughout Brazil
+2.8 million students reached
• Guaranteed Education Project
2,222 tuition fees sponsored at 45 private partner
• Content in partnership with Instituto
schools
Kondzilla
+345 thousand people reached on social media
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We form alliances to develop
educators and foster and
promote financial skills for
everyone.
We work to raise awareness among
employees, educators, researchers,
social leaders, entrepreneurs,
customers and society, bringing
more people to the cause.
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We adopt professional
management with clear
goals and monitored results
to act consistently and give a
long life to the movement.
We work in partnership
and networks, encouraging
people, public and civil society
organizations to co-create
innovative solutions and promote
new practices and policies for a
single purpose.
Proprietary projects
Transforma Financial Education Award
The initiative by Instituto XP, the largest of its kind in Brazil, was designed to inspire, recognize, connect
and empower individuals and organizations who are actively working to transform financial education
in the country. The award has eight categories that, in a complementary way, contribute to financial
education in Brazil: researchers, teachers, students, NGOs, digital solutions, people who are part of the
XP ecosystem, nano-influencers, and micro-influencers.
In 2023 the panel of judges included renowned experts and professionals in finance and entrepreneurship,
such as Nathalia Arcuri, Thiago Nigro, Konrad Dantas, and Edu Lyra, in addition to Thiago Godoy, from XP
Inc., and Raquel Balarin, editorial director at Infomoney. The event to announce the winners, carried out
in March, recorded more than 600 registrants, mobilizing thousands of votes and distributing R$480
thousand in prizes for 24 finalists.
Financial Education Network
The top three places in all categories of the Financial Education Transforma Award have been invited
to participate in our financial education network, created to enhance the initiatives and promote the
exchange of learning and opportunities among its members.
In 2023, in addition to online meetings, they had the opportunity to participate in Expert XP, in addition
to livestreams and promotion of content, among other activities. A live onsite event was also held in São
Paulo to welcome the new class of finalists and facilitate the connection with the Network.
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Partnerships
Nova Escola
We have formed a partnership with Nova Escola, a leading platform in social education that
involves producing and distributing free content, courses and lesson plans to empower the work
performed by public school teachers across Brazil. In 2023, more than 312.2 thousand teachers
benefited from lesson plans and content and almost 9.4 million students were impacted.
During the year, we also carried out another stage of research on financial education in public
schools with the intent of measuring the impact of the Transforma Financial Education program.
873 teachers were interviewed across Brazil from November 6 to 16. They brought their
perceptions about the program, evaluated its relevance and application, and the evolution of
the implementation of financial education in classes.
Financial Education in Schools – Sebrae MG/CVM/MEC Partnership
We have joined forces with Sebrae Minas to offer financial education to students in public schools across the
country between 2023 and 2027. The goal is to provide knowledge and promote the development of socio-
emotional skills in children and young people, right from school age, to help them to become more conscious
adults in relation to the use of money. In May, along with institutions such as B3 Educação, CVM and SEBRAE-
MG, we participated in the official launch event of the National Financial Education Week (ENEF Week).
Partnership with Favelado Investidor
In 2023, we entered into a partnership with influencer Murilo Duarte, better known as Favelado Investidor, to
produce financial education content in a simple language, based on everyday examples. Over the year, the
influencer worked as an ambassador for the Instituto XP in a partnership that offered financial education to
95% of educators
believe that
financial education
is important in
elementary school.
85% believe that
financial education
creates more prepared
adults, teaches conscious
consumption and helps
with family planning.
more than 54,000 youths.
FinLab
Instituto XP partnered with the Anima Institute to develop an Educational Policy Innovation Laboratory that is
focused on the design, implementation, monitoring and evaluation of evidence-based programs and projects.
The partnership hopes to introduce the first integrated methodology (Finland+Stanford) of financial education
in Brazilian public schools, in line with the National Common Curricular Base (BNCC), contributing to the
professional development of teachers and public administrators.
The project’s mission is to support the transformation of the financial habits and the change in young people’s
attitude towards money, emphasizing the making of financial decisions and their implications throughout
adulthood, with emphasis on topics such as financial vulnerability, exposure to fraud, participation in informal
financial systems, unconscious consumption, debt and savings.
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Partnership with iFood
Já_é! Program
Instituto XP has partnered with iFood to offer financial education to accredited delivery drivers
Instituto XP, in partnership with Artemisia, supports the Já_é! Program, which promotes open platform
and restaurant employees, from small to large establishments, on the iFood platform. Through
models to scale impactful business solutions, validate market opportunities and foster innovation. In 2023,
this partnership, we have made the online course Financial Balance available free of charge on
aligned with the concept of productive inclusion with an emphasis on promoting the generation of work and
the iFood Decola platform, a content portal aimed at the professional development of delivery
income through entrepreneurship, Artemisia, with support from Instituto XP, launched the Ja_é! Entrepreneur
drivers and business growth. In 2023, almost 1.6 thousand delivery drivers and restaurant
Support Day, a free initiative that trained more than 40,000 entrepreneurs.
employees took the course.
Escola do Trabalhador 4.0 Course
Instituto Kondzilla
Instituto XP and Instituto Kondzilla forged a partnership to offer financial education to young people through
Instituto XP, in partnership with Microsoft Brazil through Escola do Trabalhador 4.0, offers free
the web series Vai Pagar para Ver, in which MCs were interviewed to discuss topics related to money. Content
courses in digital skills as part of the Caminho Digital Program. The Financial Education Using
was also created and published by influencers on social media to raise awareness about financial education in a
Excel course, offered by Instituto XP, covers basic budgeting fundamentals, expense control,
light and engaging way. In 2023, the content created reached more than 345.7 thousand people on social media.
debt prevention, savings and introduction to investments.
Tino Econômico
Defined as the Financial Times of young people, Instituto XP, in partnership with Magia de Ler,
introduced Tino Econômico, a financial education newspaper distributed in public and private
schools for children and teenagers. The newspaper also has an online version. The goal is to
provide important information in an accessible way, promoting student training and engagement
with financial education.
Almost 270 thousand printed copies of the Tino Econômico newspaper were distributed to
schools across Brazil, reaching more than 2.8 million students. These editions were financed by
Instituto XP.
XP Educação courses
We offer free financial education courses through the website xpeducacao.com.br. The objective is
to create opportunities for people to improve their relationship with money, gaining security and
autonomy to plan the future. In 2023, we impacted more than 22,000 people through these courses.
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Donations and incentive laws
In 2023, companies in the XP Inc. group allocated federal incentive funds that benefited 43 projects,
directly impacting more than 1.2 million people and indirectly impacting more than 19 million. We also used
benefits from Rio de Janeiro’s ISS to invest in 27 projects in different states in Brazil, covering areas such
as financial education, cultural support, music festivals, street races, and others.
Contribution of incentive laws 2023
9% PRONAS
9% PRONON
37% Culture
8% ISS RJ*
9% Elderly
9% FIA
18% Sports
* ISS-RJ: in 2023, the resource was used for supporting Marathon Rio and Fiocruz. FIA (Childhood and Adolescent Assistance
Fund). Elderly (Elderly Assistance Fund). Pronon (National Oncology Care Support Program). Pronas (National Program to
Support Health Care for People with Disabilities).
+R$12.4 million in
incentivized funds
allocated to projects
+4.3MM in direct donations
made to more than 10 social
organizations working in the
areas of education, climate
emergency and others
Guaranteed Education Project
In partnership with the Instituto da Criança, we created the Guaranteed Education Project to provide
scholarships for young people in private schools. In 2023, the project ended its cycle, with the following
outcomes:
• 2,222 sponsored monthly payments
• 21 municipalities supported
• 45 partner schools
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Sponsorship of the Brazilian Olympic
Committee and Team Brazil
We have been official sponsors of the Brazilian Olympic
Committee and Team Brazil since the 2022 Tokyo Games
and Winter Olympics, including the 2023 Pan American
Games and the 2024 Paris Olympics.
We have also entered into an agreement with the National
Football League (NFL), the most popular sports league in
the USA, to support its promotion in Brazil. And, at the same
time, leverage the XP brand locally and internationally.
To celebrate the agreement, Expert XP had Tom Brady
participate, a seven-time Super Bowl champion and one of
the top names in the sport.
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Promoting diversity and inclusion in society
In 2023, we renewed our partnership with entities that promote awareness-raising activities and engage private companies in promoting the inclusion and employability of people with disabilities. We also adhere to
the Pact for the Inclusion of People with Disabilities, demonstrating our commitment to complying with all the objectives of the proposed agenda.
Civil Association of the Racial Equity
Movement – MOVER
REIS Network - Business Network
for the Inclusion of People with
Our partnership with MOVER aims to support the creation of 10
Disabilities
thousand leadership and C- Level positions for black people by
Through adherence to the Pact for the Inclusion of People
2030. MOVER is an institution that formulates tools for inclusive
with Disabilities, we express our commitment to involve
recruitment policies, career development, reporting channels, code
senior leadership in promoting the rights of this audience
of conduct against discrimination, permanence policies, affinity
and developing policies and procedures with a view to
groups for debates and training and awareness to influence social
affirmative actions inside the organization. Our goal is
promotion policies related to racial equity.
Pact for the Promotion of Racial Equity
also to promote an inclusive and accessible culture and
environment, in addition to including the topic of planning
products, services and customer service.
By joining the Pact for the Promotion of Racial Equity, we support
actions that encourage greater racial equity, focusing on the
JUNTOS McKinsey Conference
adoption of affirmative actions, improving the quality of public
We participated in JUNTOS McKinsey to foster the
education and training black professionals. The Pact is an initiative
employability of black and brown people, set up a stand
that proposes the implementation a Racial ESG Protocol in the
where we promoted our open job positions and offered
country, bringing the subject to the center of the economic debate
support to participants in creating more attractive CVs.
and attracting the attention of large companies, civil society and
the government.
ESG Racial Conference
We participated in a lecture on financial education, given by Gabriela
Torquato, head of Instituto XP, promoting and supporting the topic.
Future in Black
We support the “Future in Black” event, promoted by MOVER in partnership
with The Black Entrepreneurs Club (BEC), which assembled over 500
people, including CEOs, vice-presidents, directors, heads, managers and
company founders, around the objective of accelerating and leveraging
the development of black leaders.
Blood donation
In August 2023, we helped the administration of the SPCTowers
condominium and the São Lucas blood center by contributing to
the blood donation campaign, encouraging our employees from
the São Paulo office to take part and benefiting around 356 people.
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ENVIRONMENTAL RESPONSIBILITY
We want to promote the transition to a low-carbon economy by minimizing the environmental impacts of our
activities and influencing good practices in the companies with which we interact.
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Climate Change
We recognize the broad effects of climate change on society and the economy, with a careful eye on both
Scope 1
the risks and opportunities to transform our business and continue fulfilling our mission of improving
In Scope 1, direct emissions were considered, where we have operational control, obtained by
people’s lives. We are aware of Brazil and Latin America’s vulnerability to climate impacts and understand
summing all XP Inc. emissions categories, such as stationary combustion, mobile combustion and
that the financial sector can exert significant power to influence the transition to a low-carbon economy.
fugitive emissions. The main source is fugitive emissions, which account for 54% of total emissions
In this sense, we take an active stance in adopting measures to adapt our portfolios and mobilize our
ecosystem around the science-based targets assumed by the Paris Agreement. In 2023, we continued to
advance in managing climate risks and enabling sustainable business, including measuring and reducing
in this scope, arising from the use of R-410A refrigerants in air conditioning systems.
our emissions, adhering to the recommendations of the TCFD (Task Force on Climate-related Financial
Scope 2
Disclosures), reducing the intensity of financed emissions and the climate sensitivity of our credit
portfolio, and developing products that encourage choices and investments aligned with this agenda.
To calculate Scope 2 emissions, we account for indirect GHG emissions arising from the acquisition
of electricity for consumption in our facilities. A significant part of the emissions in this scope
comes from our Miami (USA) unit, which accounted for 46.7% of total emissions in this scope.
GHG Emissions
Scope 3
We use the GHG Protocol methodology to calculate, monitor and provide transparency to our inventory
To calculate Scope 3 emissions, indirect GHG emissions resulting from our activities were considered,
of Greenhouse Gas Emissions in scopes 1, 2 and 3. In 2023, we refined our emissions calculations,
coming from sources that do not belong to or are not controlled by the company. Our inventory
expanding the scope to cover all sources and business units and, for the first time, we submitted our
accounts for emissions related to trips made by motorcycle couriers, waste generated in operations,
carbon inventory to external auditing.
business trips and home-to-work emissions, with the business trips category having the greatest
impact on the result.
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Drop in total emissions
Even with the significant expansion of our business, our total Greenhouse Gas Emissions fell by 4% in
Comparison of total emissions (tCO2e) by categories
GRI 305-2 | GRI 305-3
2023, totaling 6,322.191 tCO2e. We also observed a 56% reduction in emissions related to Scope 1 coming
from direct sources owned or controlled by XP. These changes are mainly explained by the adaption of
Total Emissions (tCO2e)
2022
2023
Range
the calculation methodology, made after feedback from the external consulting firm that verified our
inventory.
In scope 3, related to the supply chain, we posted a 37% increase in GHG emissions. This increase is due
to factors such as the provision of air conditioning, the inclusion of private aviation fuel consumption
in corporate travels, a new positioning in relation to home office arrangements, and the proportional
increase in emissions from home-to-work commuting.
Direct (Scope 1, 2, 3) of Greenhouse Gas Emissions (GHG)
GRI 305-1 | GRI 305-2 | GRI 305-3
Scope 1
Stationary Combustion
Mobile Combustion
Fugitive Emissions
Scope 2
Location approach
3,238.54
1,410.08
-56.46%
0.88
0.00
4.19
375.90%
539.35
0.00%
3,237.66
866.55
-73.24%
143.77
522.27
263.26%
143.77
522.27
263.26%
Emissões diretas
Scope 1 (tCO2e)
Scope 2 (tCO2e)
Scope 3 (tCO2e)
Total Greenhouse Gas Emissions (tCO2e)
* Increase recorded due to energy costs in the NY and Miami offices.
2022
2023
Range
3,238
143
3,214
6,597
1,410
522
4,,390
6,322
-56%
265%*
37%
-4%
Scope 3
3,208.80
4,389.83
36.81%
Upstream Transport and Distribution
Waste Generated
Business travel
5.55
291.11
0.01
161.31
-99.76%
-44.59%
2,412.39
2,962.34
22.80%
Home-Work Emissions
499.76
1,266.17
153.36%
Total
6,591,118
6,322.191
-4.08%
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Emission offsetting
Between 2019 and 2020, we offset 100% of our GHG emissions through the purchase of carbon credits
generated by forest conservation and regeneration projects. We also neutralize Scope 1 and 2 emissions
by acquiring emission reduction certificates from REDD+ projects, a United Nations mechanism that
Internal carbon price
promotes conservation, sustainable management and the increase in forest carbon stocks. In Scope 3,
neutralization was done through biogas recovery and renewable energy projects.
Since 2021, we have calculated the internal price per ton of carbon based on the
average price of the carbon credit purchased in the year. In 2023, the average price
To advance this agenda, we became members of the Climate Commitment, which since 2017 has connected
was R$15.00/ton.
companies interested in offsetting their emissions and projects dedicated to generating positive social
and environmental impacts. The origination of credits follows a strict technical and legal analysis, in
addition to eligibility criteria, with the aim of minimizing reputational risks and guaranteeing the quality
of the credits.
Accordingly, in 2023, we neutralized Scope 1 and 3 emissions through the Climate Commitment, with
the acquisition of around 5,800 carbon credits from renewable biomass projects. Scope 2 emissions
were offset with the purchase of Renewable Energy Certificates (iRec), which guarantee that the energy
consumed comes from renewable sources.
100% of our emissions offset with the purchase
of carbon credits and iRec
Carbon market
We have contributed to the voluntary carbon market since 2019, through the purchase
of carbon credits and the origination of investment products. In addition, we work in
advocacy, participating in working groups organized by Febraban and Anbima focused
on the regulated market.
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Financed emissions
GRI 201-2 | GRI 305-3 I FN-AC-410b.4 I FN-CB-410b.4
The financed emissions (scope 3, category 15) relate to greenhouse gases originating from assets present in the
portfolios of financial institutions, and they are largely made possible by loans and financing for their clients’
activities. According to CDP, financed emissions are, on average, 700 times higher than direct emissions from
the financial sector.
In our case, only 9.72% of total GHG emissions relate to our own emissions, which are completely neutralized.
The remaining 90.28% is due to financed emissions from the credit portfolio, the intensity of which we seek to
manage with a customer engagement strategy, in order to help them move forward, with XP, in the transition to
a low carbon economy, mitigating risks and capturing opportunities that may arise in the new scenario.
We demonstrated our commitment to climate responsibility by joining the Partnership for Carbon Accounting
Financials (PCAF) in early 2022, when we formally started using the PCAF methodology to calculate our financed
emissions. In the previous year, we had already made calculations based on this methodology, as part of our
goal of improving the governance of socio-environmental and climate risks, which are a significant concern for
our institution.
XP Inc. emissions profile
90,28% Financed emissions
9,72% Own emissions
Total
emissions
65.023t
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How have we progressed and where we want to get
When we began to measure our financed emissions in 2021, we recorded an intensity of 12.05 tons of
carbon per million Reais borrowed, with a credit portfolio exposure of R$3.2 billion. In 2022, when the
credit portfolio more than doubled in size, reaching R$6.9 billion, the intensity of financed emissions
fell to 9.23 MM/t/CO2e.
In 2023 we recorded a new milestone: the credit portfolio increased to R$9.3 billion and the intensity
of financed emissions reached 6.24 MM/t/CO2e, a reduction of 48.22%. We will continue to deepen
the portfolio growth strategy with a significant improvement in its climate quality, with the goal of
significantly reducing this indicator by 2030.
2021
2022
2023
12.05
9.23
4,81
4,58 4,59
37,214
6.24
3.2
64,621
58,701
9.3
6.9
Intensity of financed
emissions MM tCO2e
Weighted quality
score*
Financed emissions
tCO2e
Exposure of the credit
portfolio R$ billions
* The PCAF methodology assigns a score from 1 to 5, with 1 being the most accurate calculation. As our portfolio is mainly made up of
small and medium-sized companies, which normally do not disclose their emissions data, we achieved a score of 4.59.
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Improvement in the methodology
In 2023, we advanced the methodology for calculating financed emissions, increasing the precision
and scope of data relating to our clients’ activities. Using the TCFD sector classification, we are able to
engage our customers more accurately, obtaining a more in-depth view of the environmental impact
Sector benefiting from credit
of our business.
Financed emissions
(tCO2e)
Sector benefiting from credit
Financed emissions
(tCO2e)
Agriculture
Food and Beverages
Financial services
Commerce
Transport
Industry
Petrochemical and chemical
Metals and mining
Administrative services
Paper and forest products
Textile
Energy
12.385.93
7,832.65
6,771.22
6,033.51
3,450.1
3,368.81
3,169.67
3,163.55
2,553.59
1,689.67
1,184.29
1,173.44
Exposure of the
credit portfolio R$
billions
170.24
622.53
3852.75
689.52
215.45
222.6
70.71
135.17
587.06
62.09
98.66
83.12
Intensity by
sector, weighted
by percentage of
Health
Tourism and Leisure
Real estate management and
exposure
1.318.110
0.83355
0.720593
0.642086
0.367159
0.358509
0.337316
0.336665
0.271753
0.179815
0.126033
0.124877
development
Wood and furniture
Construction
Technology
Pharmaceuticals and Cosmetics
Motor vehicles and auto parts
Others
Recycling
Education
Communication
Sanitation
Total
875.36
863.73
806.58
652.71
628.06
563.94
389.26
387.22
235.91
230.96
228.91
46.06
16.38
58,701.52
9,396.73
Exposure of the
credit portfolio R$
billions
673.49
424.2
318.8
23.56
695.64
174.67
9.5
78.54
59.39
2.62
103.92
22.1
0.42
Intensity by
sector. weighted
by percentage of
exposure
0.093156
0.091918
0.085836
0.069462
0.066838
0.060014
0.041425
0.041208
0.025106
0.024579
0.024361
0.004902
0.001743
6.247012
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Climate sensitivity of the credit portfolio
GRI 201-2 | GRI 305-3
Stress test
To assess the climate risk of our credit portfolio, we still use the Climate Risk Sensitivity Ruler, a
The Social, Environmental and Climate Risk area analyzes all XP customers on a broad basis,
methodology we developed along with Febraban, based on TCFD recommendations. It allows measuring
covering 100% of the credit portfolio for companies. Portfolio quality is monitored according
how sensitive the client or operation is to the physical and/or transitional effects of climate change. The
to its exposure to the Social, Environmental and Climate Rating. The stress test is updated at
company’s sector, credit quality, average term of the operation and the representativeness of the sector
least once a year and its guidelines and results are discussed and approved by the Executive
or client in the credit portfolio are taken into account.
Board.
Combined, these variables help to classify portfolio exposure into three levels of climate sensitivity
Although stress testing is only mandatory for entities in the S2 segment, we adopt a dedicated
(high, medium or low), defining the customers most sensitive to climate factors. This process covers
idiosyncratic scenario that seeks to aggravate specific revenues from potentially exposed
100% of the credit portfolio of legal entities and indicates the degree of risk, providing guidance on the
businesses. As of next year, hypotheses about changes in climate patterns and the transition
decision-making on whether or not to go ahead with closing the deal.
to a low-carbon economy will be included.
At the end of 2023, our portfolio’s climate sensitivity reached 12.72%, a reduction of two percentage
points compared to 2021, when we started this measurement. We thus improved the climate quality
of the credit we grant and, consequently, of our credit portfolio. Still in 2023, the climate sensitivity
indicator was incorporated into the company’s RAS, with exposure limits and monthly monitoring.
Climate sensitivity of our credit portfolio
2021
2022
2023
TCFD recommendations
Published in 2017, the recommendations of the Financial Stability Board’s Task Force on Climate-
Related Financial Disclosures (TCFD) aim to encourage the disclosure of financial information
related to climate risks and opportunities, allowing investors to make more informed decisions.
14.50%
We recognize their relevance and firmly support this commitment, advancing our adherence
to the recommendations throughout 2023 in each of the four disclosure pillars.
12.62%
12.72%
Also, see how our social, environmental and climate risk analysis process works on page 127.
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Governance
Risk management
• The Board of Directors, the Executive Committee, the Audit Committee and the Risk,
• We carry out climate risk analysis for 100% of our customers and credit operations.
Credit and ESG Committee monitor the evolution of the ESG agenda as a whole, including
the company’s climate agenda, with pre-defined periodicity and agendas.
• In addition to these governance bodies, the Social, Environmental and Climate Risk
Committee and the Social, Environmental and Climate Risk and Responsibility Committee
monitor the climate agenda with pre-defined periodicity and agendas.
• Our corporate policies link employee compensation to compliance with climate-related
guidelines, including at the executive level.
• We carry out training and disseminate the topic across the company, through training
and live sessions related to the topic.
• We develop a proprietary climate risk assessment methodology that impacts the credit
rating.
• We manage the climate risk of our credit portfolio through climate risk management
indicators.
• We have a specific climate risk indicator in the company’s RAS.
• We monitor the climate risk of our credit portfolio.
• We consider climate risk in stress testing programs in a dedicated idiosyncratic scenario,
which seeks to aggravate specific potentially exposed business revenues.
• We engage our customers to reduce the impact of climate change on our business.
Strategy
• We map our exposure to climate risks and potential impacts for the company.
Targets and metrics
• We have a climate transition strategy, with internal goals and respective deadlines for
• We have our own emissions reduction targets.
compliance defined.
• We established targets for reducing the intensity of financed emissions in the credit
• We have targets for reducing our own emissions and financed emissions.
portfolio.
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• We calculate the internal carbon price.
• We have contributed to promoting the carbon market in the country, participating in
sectoral working groups, meetings with representatives from the most diverse sectors,
clients and other players interested in the subject.
• We develop climate-related financial products and services.
• We measure and neutralize 100% of Greenhouse Gas Emissions from our activities (scope
1, 2 and 3*).
• We implement financed emission intensity and climate sensitivity metrics of the credit
portfolio.
• We report our climate sensitivity and financed emission metrics under the TCFD.
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Eco-efficiency
Energy
We strive to minimize the negative impacts of our activities by promoting sustainable practices, efficient resource
unit (RJ) into the measurement,(RJ), following the acquisition of Banco Modal. In addition,
use, and proper management of water and energy consumption, waste and effluent generation, and Greenhouse
1,472 new employees were hired during the year. In 2023, we refined our calculation of energy
The total energy consumption increased, which is explained by the incorporation of the Botafogo
Gas Emissions. We offset 100% of our Scope 1, 2, and 3 emissions.
Seeking the lowest possible impact of our facilities, we prioritize green buildings when selecting and leasing
properties. Our main office, located in the city of São Paulo, for example, is located in a building with LEED
(Leadership in Energy and Environmental Design) Platinum 3.0 Core and Shell precertification, which guarantees
the highest levels of energy efficiency and sustainability.
See below how the consumption of resources and the management of waste and emissions evolved in 2023.
consumption, also including the two external offices, located in New York and Miami. It’s also
worth noting that our Belo Horizonte office uses photovoltaic energy in all common areas.
Total energy consumption within the organization
GRI 302-1
In kWh
Total
2021
2022
2023
1,641,476,00
1,586,193,00
3,516,084,22
Energy consumption by unit
GRI 302-3
Unit
São Paulo
Botafogo
Leblon
Belo Horizonte
New York
Miami
Total (kWh)
Total (MWh)
1,835,296,65
97,902,00
151,040,00
27,198,00
782,627,87
622,019,70
1835,30
97,90
151,04
27,20
782,63
622,02
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Water
GRI 303-1 I GRI 303-5
Waste
The increase in total water consumption recorded in 2023 is mainly due to the change in the measurement
Each building is responsible for collecting and controlling the waste generated on each floor, which is
scope. Until 2022, we only considered the consumption in our São Paulo offices. In 2023, data from the
recorded monthly by the number of bags used, with capacity for 10 liters each. Later on, the conversion
Leblon, Botafogo and Belo Horizonte offices also began to be considered.
is made to tons, since in some units, such as São Paulo, accounting is done in bags.
Total water consumption of all areas
Total water consumption
in megaliters (ML)
Total water consumption
By Physical Unit
in megaliters (ML)
São Paulo
Botafogo
Leblon
Belo Horizonte
2021
3,003
2021
3,003
-
-
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2022
5,229
2022
5,229
-
-
-
2023
11,232
2023
7,318
2,692
1,054
0.169
The total volume of waste generated in the year increased due to the incorporation, in the counting, of
the Botafogo and New York units, whereas in previous years only waste generated in the São Paulo offices
was counted. Likewise, we observed an increase in the total volume of waste destined for recycling.
Total waste generated and total waste with final disposal in landfills and
sent for recycling
GRI 306-3 | GRI 306-5
Total weight of waste generated in metric tons and a breakdown of this total by waste
composition
Destination
Type of waste
generated
2021*
2022*
2023*
Landfill
Organic
Recycling
Recyclable
Total amount of waste generated (bags)
Total amount of waste generated (tons)
8,128
14,563
22,691
8,999
7,060
16,059
161
12,860
9,214
22,074
221
*In 2021 and 2022, only waste generated in the São Paulo office was considered.
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Waste not intended for final disposal
GRI 306-4
Destination
Waste generated (Bags)
2022*
Glass
Plastic
Metal
Paper
Recycling
Total waste in bags
Total waste in tons
*Waste monitoring is carried out only in the SP office.
151
2.684
300
3.925
7.060
2023
255
3.418
353
5.188
9.214
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Electronic waste
We carry out reverse logistics and correct disposal of our electronic waste not classified as environmentally
hazardous, which consists of IT equipment, such as monitors, desktops, cables and others.
We work in partnership with the company Manureversa, specialized in electronic waste management,
which “purchases” obsolete electronics from XP, converting the value into a quantity of native tree
seedlings, which are donated to the Amigos da Mata project, run by Instituto Refloresta, which works to
recover degraded areas.
Equipment that is not part of the “buy and sell” proposal is exchanged for one native tree seedling for
every 50 kilos of discarded equipment. The seedlings are donated to local farmers, and planting is done
in springs and sensitive areas, such as riverbanks and deforested springs in the Atlantic Forest biome.
Since we started supporting, in 2020, we have donated 253 trees.
Total waste not intended for final disposal
GRI 306-4
Destination
Recycling
Total electronic waste (in kg)
Waste generated (kg)
Electronics
2023
3,429
3,429
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CORPORATE GOVERNANCE
We continue to improve our processes, policies and decision-making bodies, seeking the highest standard of
governance in all businesses and activities.
GRI 2-13
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The year 2023 marked the beginning of a cycle of changes in our governance structure, which has
employees, culture and other strategic HR topics. In addition, slate elections for the appointment of
been based on two key drivers. The first is compliance with the Central Bank´s prudential regulation,
directors by the Annual Shareholders’ Meeting were eliminated, allowing for the individual selection
due to XP’s classification in the “Segment 2” of the National Financial System.
of directors, thereby increasing their accountability to shareholders.
In October 2019, we received authorization from BACEN to act as a multiple bank, with commercial
and investment portfolios, and to operate in the foreign exchange market. Until then, XP had been
classified in Segment 3, with operations restricted to the investment area. Since then, we have worked
hard to meet prudential capital and risk requirements.
Another relevant fact is that in July 2023 the shareholders’ agreement signed between Itaúsa and XP
was terminated. The decision, a consensus between the parties, led to a significant improvement in
our governance and ending the prerogative of Itaú Unibanco, one of our main competitors, to appoint
two members to our Board of Directors and one member to the Audit Committee.
With the resignation of the Itaú Unibanco representatives, we reduced our Board from eleven to nine
members and began to reformulate this decision-making body by adopting best market practices. We
hired an international consultancy to support us both in the search for executives and board members
and in defining their roles and responsibilities and adding new committees. We entered 2024 with
significant progress in this process.
We increased the number of independent directors, who now form the majority. We also created two
new advisory committees to the Board: the Risk, Credit, and ESG Committee, which will oversee, among
other topics, market risk factors, liquidity, credit, cyber security, environmental, social, governance,
and climate issues, and the Strategy and Performance Committee, which now encompasses goal
setting, evaluation of new products, establishment of departments, and other topics.
Shareholder structure
Shareholder
XP Controll LLC
Free Float
ITB Holding Ltd.
Tesouraria XP
Total shares
Voting rights
18,81%
73,23%
7,77
0,19%
66,55%
25,90%
7,55%
55,5% Independent members on the Board of Directors
We have expanded the number of independent members on our Board of Directors,
adding individuals with a diverse range of knowledge, attributes, and experiences
that strengthen our material issues, helping us align strategies with the questions the
company needs to address at each moment, fostering its longevity and its ability to
Another novelty was the expansion of the scope of action of the People Committee, which had its
generate value.
name changed to the Compensation, People, Appointment and Governance Committee, with powers
to define succession, compensation, promotion, hiring goals and assessment of executives and
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Governance structure
GRI 2-9 | 2-10 | 2-1 | 2-12 | 2-17
Our governance model is made up of four main decision-making bodies supported by internal regulations,
which discipline and regulate the role of each senior management body, and by compensation, incentive
Board of Directors
and evaluation policies, which guarantee the alignment of decision-making mechanisms with the
As of December 31, 2023, our Board of Directors was made up of nine members, four of whom are
company’s long-term strategies.
AGM Fiscal
Council
Board of
Directors
Committees
Executive
Committee
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Annual Shareholders’ Meeting
Held once a year, the Annual Shareholders Meeting decides on changes in the governance structure and
independent, with a term of office until October 2025. Three members held positions on the Audit
Committee. As part of the restructuring process, which began last year, one of the non-independent
directors (Fabrício Almeida) and three independent directors (Luiz Felipe Calabró, Frederico Seabra de
Carvalho and Cristiana Pereira) resigned from their positions on April 24, 2024, effective as of May 24,
2024.
Five new independent directors were then appointed after an extensive period of prospecting conducted
by the consulting firm hired to support us in this process. The number of directors was maintained at
nine, however, the majority is of independent directors. The chairman of the Board does not hold an
executive position in the XP group.
With these changes, approved at the Annual Shareholders’ Meeting held on May 24, 2024, the highest
governance body expanded its supervisory scope, gained greater representation of non-controlling
shareholders and had greater breadth, capabilities and experiences. The new members added, for
example, expertise in topics such as risk management, retail banking business, people management and
medium and long-term investments to be made. The Extraordinary Shareholders Meeting takes place
whenever the shareholders deem it necessary. The minimum quorum for both is 50% of the shares
diversity & inclusion.
entitled to vote.
We seek, then, to ensure that the Board of Directors is well positioned to direct long-term strategies,
exercise its role in guiding management and leadership, protect and enhance XP’s culture as it grows
and evolves, and ensure robust succession planning. Other important roles include leading the evolution
of governance processes and strengthening risk and control management as XP’s operations become
increasingly complex, balancing and complementing management’s expertise on key business-related
topics.
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The term of office for all Board members is two years, and the members who did not resign from their
previous positions were presented for re-election at the Annual Shareholders’ Meeting, even before the
expiration of their terms. Shareholders thus had the right to individually elect the Directors, in accordance
with the best corporate governance practices.
Gabriel Leal
Member
The company’s highest decision-making body meets at least quarterly, with a defined agenda that includes
the approval of strategies, the business plan and the annual budget, and the creation and eventual changes
in policies and other directions, including on social, environmental and governance issues relevant to the
company. The CEO of XP Inc., Thiago Maffra, and the CEO of Banco XP, José Berenguer, participate in the
meetings as guests, bridging the gap between advice and the definition of plans and priorities to be put
into practice.
In 2023, eight meetings were held, four of which were attended by 100% of the Board Members. In three
others, the attendance rate was 90.9% and in one of them, held in mid-February, the attendance rate was
72.7%.
Current composition of the Board of Directors, approved at the Annual
Shareholders’ Meeting held on May 24, 2024.
Guilherme
Benchimol
Chairman of the
Board
Bruno Constantino
Member. Until August
2024, he also holds
the position of Chief
Financial Officer
(CFO) of XP Inc.
Martin Emiliano
Escobari Lifchitz
Independent
member
José Luiz Acar
Pedro
Independent
member
Melissa Werneck
Independent
member
Bernardo Amaral
Member
Oscar Rodriguez
Herrero
Independent
member
João Roberto
Gonçalves Teixeira
Independent
member
To learn about the experience and profile of each
member of the Board of Directors, access the
Proxy Statement document on the SEC platform.
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Senior management compensation
GRI 2-19 | GRI 2-20
The annual compensation for the Board of Directors consists of an identical fixed compensation for
all members and additional compensation for those who also chair or are members of the Audit and
Compensation Committees. Board members who hold executive positions are not remunerated, avoiding
duplication in compensation.
In November 2023, the Board approved a compensation recovery policy in compliance with new SEC and
NASDAQ regulations. Under the new policy, if a financial update causes executives to receive greater
incentive compensation than anticipated in the original financial information, the excess amounts must
be recovered.
The Executive Committee’s compensation is guided by a set of goals related to short-term financial
performance and another set linked to the health and sustainability of the business over the long term.
For the CEO, short-term financial goals in 2023 included EBT Margin, Net Profit and an expense efficiency
metric. The long-term goals were made up of:
• Net Funding
• Customer satisfaction (NPS)
• Employee turnover
• Capabilities score, a metric designed to measure the progress of areas and roles that are critical
for the company in the long term, such as Risks, People, Management, Technology, Products and
Operations.
The CEO’s goals are broken down into specific goals for each director who is part of the Executive
Committee and, from there, for each leader and employee of all business units.
Diversity on the Board
Currently, our Board of Directors has a woman, Melissa Werneck, and Martin Emiliano Escobari
Lifchitz, a Bolivian who represents minority and underrepresented Latin ethnicities, according
to the SEC’s concept of ethnicities, the United States Securities and Exchange Commission.
Performance assessment of governance bodies
GRI 2-18
All executives are evaluated every six months by leaders, colleagues and stakeholders based on
culture and results, as is the case with other employees. In addition, Board members carry out
an annual self-assessment that seeks to identify, classify and point out how their performance
impacts the organization’s economic, environmental and people management. Once the self-
evaluation cycle is complete, the Board meets to discuss opportunities for improvement and,
when appropriate, the realignment of both composition and organizational practices.
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Collective knowledge of the highest governance
body
GRI 2-17
In 2023, the members of the Board of Directors participated in an in-company workshop on
Best Practices for the Board of Directors, organized by IBGC - Brazilian Institute of Corporate
Governance.
Risk, Credit and ESG Committee
NEW
Defines and ensures compliance with the ESG strategy, monitors the evolution of indicators, goals
and projects, evaluates the adherence and effectiveness of the actions implemented to comply with our
ESG policies and strategy and monitors regulatory compliance related to ESG and social, environmental and
climate risks. It also defines the risk appetite in coordination with the Audit Committee.
Advisory committees
Composed of independent members of the Board of Directors who do not have decision-making powers,
the committees are responsible for advising the Board of Directors and making recommendations on
the topics that fall under their respective jurisdiction.
Audit Committee
CoAud is made up of three independent members, meets every six months and is governed by the prudential
regulation of the Central Bank and the Private Insurance Superintendency (SUSEP). They maintain a
schedule of monthly conversations with the business, risk, ESG and internal and external audit areas, making
recommendations and monitoring risk prevention and containment plans.
The progress of initiatives are reported to the Board of Directors at least every quarter. Crucial concerns
are regularly communicated to the company’s highest governance body, through the Risk Committee of the
Board of Directors.
Strategy and Performance Committee
NEW
Responsible for reviewing business strategies and supervising relevant structures and performance indicators
related to the company’s capital and organizational structure.
Compensation, People, Nomination and Governance Committee
EXPANDED SCOPE
With its expanded scope of action, it now supervises not only executive compensation, but also recruitment,
promotions, retention and evaluation of executives, directors and employees.
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Executive Board
José Berenguer
Chief Executive
Officer of Banco XP
Guilherme Resendes
Leonardo Cardoso
Chief Product Officer
Chief Risk Officer
Guilherme
Sant’Anna
Channels Officer
Leonardo Cardoso
Chief Risk Officer
Bruno Constantino
Chief Financial
Officer (CFO)
Victor Mansur
Finance and
Strategy Officer.
From August 2024,
he will also hold the
position of CFO
Gustavo Pires
AMS and Security
Officer
Luiza Ribeiro
Chief Human
Resources Officer
Lisandro Lopez
Chief Marketing
Officer (CMO)
Cristiano Ayres
Banking Products
Officer
Marino Aguiar
Chief Technology
Officer (CTO)
Lucas Rabechini
Financial Products
Officer
Fabrício Almeida
General Counsel,
Compliance and ESG
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Number and percentage of individuals who were part of the organization’s
governance bodies on 12/31/2023, broken down by race and gender
GRI 405-1
ESG governance
GRI 2-13
On December 31, 2023, the Board of Directors consisted of nine members, all white. See the
composition by gender below.
By gender*
Men
Women
Total
2021
2022
2023
Number
11
1
12
%
92%
8%
100%
Number
10
1
11
%
91%
9%
100%
Number
8
1
9
%
89%
11%
100%
* Gender as specified by employees themselves.
Number and percentage of individuals who were part of the organization’s
governance bodies on 12/31/2023, broken down by age group
GRI 405-1
By age group
Under 30 years old
From 30 to 50 years
old
Over 50 years old
Total
2021
2022
2023
Number
0
10
2
12
%
0%
83%
17%
100%
Number
0
9
2
11
%
0%
82%
18%
100%
Number
0
9
0
9
%
0%
100%
0%
100%
Our ESG governance is structured around the Board of Directors and the Executive Committee
(Comex), which are responsible for monitoring the evolution of this agenda and social,
environmental and climate risks in the group’s companies. The topic is included in the meetings
of the Board and the Executive Committee.
The General Counsel and Compliance and ESG Officer, who is responsible for the Social,
Environmental and Climate Responsibility Policy (PRSAC) with the Central Bank, leads discussions
on the topic at Comex, providing input and participating in decision-making. He and the Head
of the ESG & Social, Environmental and Climate Risk area, who reports to the Executive Board
and the Risk, Credit and ESG Committee, present the progress of practices, challenges and
opportunities related to the ESG scenario at meetings of XP Inc’s highest governance body.
The Board of Directors therefore closely monitors the progress of the company’s social,
environmental, climate and governance initiatives and defines macro strategies with the support
of two advisory committees: Audit Committee and Risk, Credit and ESG Committee.
The ESG governance structure is complemented by the ESG Committee, which maintains a close
proximity to the Executive Board, in addition to the Social, Environmental and Climate Risk
Committee, linked to the Executive Risk Committee and reporting to the CRO (Chief Risk Officer),
and to the Social, Environmental and Climate Risks and Responsibility Committee, reinforcing
our commitment to the integrated management of social, environmental and climate risks with
other risks managed by the company.
The company also has the Credit Decision Committee, Corporate Initiatives Committee and the
Credit Product Distribution Committee as governance bodies related to ESG topics and social,
environmental and climate risks.
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Learn about the responsibilities and roles of the
bodies that form our ESG governance.
Audit Committee
It receives biannual reports on the evolution of ESG agendas and
social, environmental and climate risks and monitors the development
of topics in the organization.
ESG Committee
Board of Directors
Monitors the progress of the company’s ESG agenda and
initiatives focused on social, environmental and climate
risk.
Thiago Maffra
Chief Executive
Officer of XP Inc.
Risk, Credit and ESG Committee
A Committee that advises the Board of Directors on defining,
implementing and monitoring the ESG strategy. It receives biannual
reports on the evolution of the organization’s ESG agendas and social,
environmental and climate risks.
Executive Committee
It is responsible for approving the Social, Environmental and Climate
Responsibility Policy and its amendments, ensuring its compatibility
with other group policies and with the recommendations of the Central
Bank. It also supervises and monitors the ESG strategy, evaluating
the degree of adherence of the actions implemented to PRSAC.
Fabrício Almeida
General Counsel,
Compliance and ESG
Leonardo Cardoso
Chief Risk Officer
Fabio Simabukuro Cruz
Head of ESG and Social,
Environmental and
Climate Risk at XP Inc.
Social, Environmental and Climate Risks and
Responsibility Committee
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Social, Environmental and Climate Risks and
Responsibility Committee
NEW
Social, Environmental and Climate Risk
Commission
Credit Decision Committee
The Credit Decision Committee is responsible for approving credit
Permanent executive body composed of independent members
Monitors exposure to social, environmental and climate risks,
limits and operations, including deliberating the credit risk arising
of the Board of Directors, which reports to the Executive Board.
deciding on the definition of exposure limits and risk appetite.
from social, environmental and climate events through social,
Its bylaws are governed by the prudential regulations of BACEN.
It monitors management indicators and adherence to sectoral
environmental and climate risk assessments as a basis for decision
It advises management on the establishment and the review of
regulations and self-regulations. It discusses, deliberates and
making.
the PRSAC. It assesses the degree of adherence of the actions
approves policies
implemented to the policy, ensuring good risk management and
mitigation practices,
internal controls,
information security,
fraud prevention, conflict of interests and social, environmental
and climate issues. When necessary, it proposes measures for
improvement, keeping a record of recommendations.
and procedures related to risk management, prohibited or restricted
sectors, climate risk management in the portfolio and climate
transition plans. It also tracks the progress towards goals and
contributes to deepening the integration of social, environmental
and climate risks into decision-making and business processes.
Legal, Compliance and ESG Executive Board
ESG Commission
Corporate Initiatives Committee
The Corporate Initiatives Committee is responsible for deliberating
on requests to implement new strategic projects, including, but not
limited to, the inclusion of new products and services, decisions
to create new businesses, platforms, channels and experiences,
observing, among other aspects, ESG and social, environmental
and climate risk factors.
Assists the Board of Directors in decisions related to PRSAC,
responsible for initiatives that guarantee the effectiveness of
the policy, monitoring and evaluating the actions implemented. It
works to improve practices if gaps are identified.
Linked directly to the Legal, Compliance and ESG Executive
Board, the Commission meets whenever necessary to decide on
operations with a high potential for social, environmental and
Credit Products Distribution Committee
climate risks, especially those involving the financing of projects
and companies that do not have a good reputation for sustainability.
When necessary, it resorts to the impartial external opinion of a
specialized consulting firm, and may approve or reject operations.
In case of disagreement, the CEO of XP Inc. has the final say.
The Credit Products Distribution Committee is responsible for
ensuring the effectiveness of the assessment and monitoring of
credit risk for the selection and subsequent monitoring of securities
eligible for allocation by the client base through fundamental
analysis of private securities issuers, as well as the assessment
of their guarantee structures and/or payment sources, including
social, environmental and climate risk assessments.
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Compliance
GRI 2-15 | 2-16 | 2-25 | 2-26 | 205-1 | 205-2 | 205-3
The Code of Ethics and Conduct aligns all employees, executives, partners and senior leadership of XP Inc.,
its subsidiaries, affiliates, offices, independent agents and suppliers around the highest standards of ethical
conduct in all our activities and relationships. The code promotes an internal culture of adherence to laws,
regulations and good business practices, defining behavioral standards to prevent and combat illicit practices,
ensure the confidentiality of information and resolve conflicts of interest.
GRI 2-24
The Compliance Policy complements and strengthens this way of acting, establishing disciplinary measures in
case of non-compliance with established guidelines. Our employees and business partners are also required
to comply with specific policies, such as Anti-Corruption, Prevention of Money Laundering and Terrorism
Financing (AML-TF), Conflicts of Interest and Social, Environmental and Climate Risk. At the beginning of
2024, we also introduced the Human Rights Policy and updated our Code of Ethics and Conduct to spread the
topic throughout our ecosystem.
GRI 2-23 | GRI 3-3
The activities are coordinated and managed centrally by the Compliance area with support from senior
management. Made up of more than 60 professionals allocated to technical groups, the team is responsible
for formalizing procedures, internal controls, monitoring adherence to policies, auditing and due diligence in
cases of deviations.
Another important role of the area is the training of employees and service providers and regular communication
on the topic, fostering a culture of Compliance in our network.
The Code of Ethics and Conduct and other policies are approved by the Board of Directors and provide for
processes to identify and mitigate risks in our different interactions and relationships. These processes are
managed and audited periodically. All documents and policies are public and available on the Compliance
website. The XP group does not make donations to political causes and organizations.
GRI 2-23 | GRI 415-1
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Reporting channel
GRI 2-16 | 2-26 | 205-1 | 406-1 I FN-CB-510a.2
|FN-AC-510a.2 |FN-IB-510a.2
Our Reporting Channel receives and addresses issues that violate the Code of Ethics and Conduct,
laws and regulatory standards, as well as other XP Group policies. The channel can be accessed
by employees, partners, customers, suppliers and society in general. Reports can be carried out
anonymously or identified, with the complainant’s data being preserved.
The channel operates 24x7 with electronic support, and from Monday to Friday, from 9 a.m. to
5 p.m., with analysts for telephone support.
All reports are analyzed and investigated. After investigation, the cases are discussed by the
Internal Committee if any irregularity is identified that requires the application of disciplinary
measures. Furthermore, the Compliance area reports bimonthly to the Ethics Committee and
the Board of Directors the volume and the details of cases received and handled.
In 2023, crucial concerns were communicated involving 147 advisors and 266 employees, with
the average regulatory deadline for compliance and completion being met.
Combating discrimination and harassment
GRI 406-1
The Code of Ethics and Conduct prohibits any type of discrimination and psychological and sexual
harassment and encourages the use of the Reporting Channel when any person in our network
has had their dignity violated. In 2023, we had no cases of discrimination. We registered a case
of harassment, in which the disciplinary measure applied was the dismissal of the employee
involved. Penalties may also involve warnings and fines, in the case of partner offices.
0800 721 0744 | Monday to Friday, from 9:00 am to 5:00 pm.
Assistance provided in English and Portuguese.
www.canalconfidencial.com.br/xpinvestimentos
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Ombudsman, BACEN and other channels
The complaints received by the Ombudsman’s Office are dealt with and addressed within a
maximum of fifteen days. They are consolidated monthly and taken to customer forums, serving
as a basis for the adoption of improvement plans for processes, products and services. The
same happens with complaints addressed by BACEN, the Consumidor.Gov.br portal and other
channels. The goal is to continually improve the customer experience.
In 2023, the XP Investimentos Ombudsman Office registered 14,188 requests relating to the
group’s brokerage firms, of which 7,484 were received through internal channels (0800 and
Ombudsman Office Form), 1,990 via the Consumidor.gov.br portal, 4,000 via regulators (CVM
and BACEN) and 714 from other channels.
In relation to Banco XP, the Ombudsman Office registered a total of 8,402 requests, of which
3,908 were registered on the Ombudsman Office’s internal channels, 2,140 through BACEN,
1,842 through the Consumidor.gov.br platform, and 512 on other service channels.
Regarding requests related to Seguradora XP, 123 cases were registered with the XP Seguros
Ombudsman Office, 52 of which came from the Ombudsman Office’s internal channels, 43
through the Consumidor.gov.br platform, 26 through BACEN, and 2 through other channels.
0800 722 3730 Monday to Friday, 9am to 6pm
https://www.xpi.com.br/ouvidoria/
Evolution of requests received - XP Investimentos
2021
2022
2023
9,853
4,368
14,188
Evolution of requests received - Banco XP
1,288
1,263
2021
2022
2023
8,402
Evolution of requests received - XP Vida e Previdência
2021
2022
2023
45
69
123
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Training and awareness
GRI 2-24 | 205-2 | GRI 410-1
XP’s onboarding program includes a week of training on corporate and compliance policies, ensuring
Total and average number of hours of compliance training per year, per employee*
a solid foundation for new employees. All professionals, including executives and senior management,
GRI 404-1
must also complete an annual training exercise on the topic.
Training is done through an online platform, with a content retention test and a certificate issued at
the end. Anyone who does not submit their evaluation or does not complete the courses within the
established deadline is subject to punishment, such as cutting access to our systems.
Main mandatory training:
• Anti-Corruption and Compliance Procedures
• Code of Ethics and Conduct
2021
2022
2023
Total
hours
Average
hours
Total
14,907
2
*Segmentation by region and functional category not available.
Total
hours
5,246
Average
hours
2
Total
hours
15,231
Average
hours
3
• Sexual and Psychological Harassment and Confidential Channel
Compliance Week
• Personal Investments
• Suitability
• Prevention of Money Laundering and Terrorist Financing (AML-TF)
• Information Security and the General Data Protection Law (LGPD)
• Financial Risks and Risk Management, including social, environmental and climate risk
• Circulation of Information
• Reputational and Social Media
Each year, we dedicate an entire week to dialogue, awareness and training on compliance topics. In
2023, the topics covered ranged from regulatory changes in the crypto active investment fund industry
to PLD-FT, abusive practices, anti-corruption policy, relationships with influencers, social, environmental
and climate risks, combating fraud and LGPD, and others. Some of the lectures are open to the general
public.
Conduct Score
In addition, we require a series of certifications for professionals working in certain business areas,
In 2023, we began to implement the Conduct Score project, with the objective of creating an indicator
such as investments and foreign exchange. For security personnel, who are outsourced, we provide
that considers compliance criteria in the recognition actions of XP Inc.’s meritocracy cycle. The result
the Integrity Booklet, reinforcing awareness of compliance and human rights aspects among service
obtained in the score may impact variable compensation and eligibility for promotion of employees,
providers.
including executive leadership. The initiative was discussed and approved by the senior management.
The first calculation was carried out in the 1st half of 2024.
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Director of Legal,
Compliance, and ESG
Head of Compliance
Compliance Platform
Team dedicated to Compliance area support, supporting the
development of indicators and monitoring to identify possible
irregularities and KPIs, applying data analytics and ML. Owner
of the BUDEX system.
AML-TF
Trade Surveillance
Regulatory and Control
Room
Advisor Governance
Social, Environmental
and Climate Risk
Takes
care of
the
customer
Monitors and follows client and
Responsible
for monitoring of
Serves, guides and supervises the
Analyzes client operations from a
onboarding process and monitors
Treasury operations
from
the
policies, procedures and controls
network of
independent agents,
social, environmental and climate
the transactions carried out by them
perspective of rules on abusive
aligned with the latest standards in
correspondents, brokers and internal
perspective, ensuring that processes,
from the perspective of preventing
market practices.
all XP Inc. companies.
advisors.
money
laundering and
terrorist
financing.
procedures and policies comply with
current standards. It also develops ESG
methodologies for the organization.
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Compliance Platform
The Compliance Platform is a team that serves, in a transversal way, all areas of Compliance,
supporting the development of data, indicators and KPIs. It also monitors to identify possible
atypicalities, using data analytics and machine learning tools.
The group manages our proprietary compliance platform (BUDEX), which integrates more than
twenty internal sources of transactional, registration and reputational data from customers and
investment advisors, as well as APIs from external bureaus to capture historical information
from customers, creating mathematical models for assigning risk scores.
The system uses advanced technologies and machine learning to monitor day-to-day transactions,
identifying suspicious transactions and making information, such as customer rating and product
eligibility, available in the company’s critical flows and systems. It thereby provides a solid data
base for decision making.
Constantly improving, the tool supports the Compliance area units in the centralized management
of risks associated with non-compliance with codes, policies, laws and regulatory frameworks.
It therefore provides high efficiency in preventing money laundering and behavioral monitoring
of investment advisors.
It also has a module dedicated to social, environmental and climate risk, connected to XP’s
registration database and to bureaus that provide information such as inclusion of clients on
restrictive lists of work similar to slavery, embargoed areas, illegal deforestation, contaminated
areas, indigenous territories, “quilombola” areas, among others, discrediting media related to
social, environmental or climate issues, as well as judicial and administrative proceedings related
to social, environmental and climate issues.
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Business areas and processes integrated into the Compliance Platform
+100 million pieces
of information to fuel
compliance controls each
month
+R$200 million
saved with rating
generation and
prevention of illicit
activities
+3 terabytes of
data used in the
analysis processes
Registration
Exchange
Procurement
and Suppliers
Institutional
Compliance
Partners
TAC/NAC*
Advisor
Governance
Social,
Environmental
and Climate Risk
People
International
Account
AML-TF
Fraud
TAC = Transaction Approval Committee | NAC = New Activities Committee
Banco XP
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Prevention of money laundering and
terrorist financing
Conflict of interest
GRI 2-15
We have a Conflict of Interest Policy that defines rules that must be observed
by all executives, employees and investment advisors. To ensure compliance, we
We have a dedicated due diligence unit to prevent money
identify atypical patterns and activities, such as “orange”
supervise employees’ personal investments, carry out due diligence in partner
laundering, terrorist financing and the proliferation of
(fraudulent) accounts opened with the consent of the
offices, conduct reputational analyses and promote an annual campaign to update
weapons of mass destruction, in addition to combating
true holders, leading to the closure of accounts, inclusion
the Know Your Employee Form.
abusive practices in the market. The objective is to identify
of holders on restrictive lists and communication to the
atypical situations in operations that may indicate the
Financial Activities Control Council (COAF).
use of XP products and services in criminal practices.
In addition, the Personal Investment Policy defines rules for employees’ personal
investments, avoiding legal, regulatory and image risks related to the use of
Another focus was the prevention of money laundering
privileged information. The tool evaluates the portfolio and alerts advisors about
The area monitors transactions with customers to
in the foreign exchange market, with a series of activities
any misalignment with the investor’s profile.
identify atypical situations in accordance with rules
aimed at mitigating risks in foreign exchange operations,
and parameters established for each product or service
especially those related to bookmakers (bets). More than
(current account, foreign exchange, fixed and variable
20,000 analyzes were carried out on such transactions,
income and loans, among others). And it applies a scoring
an average of 1,600 per month.
model to classify customers into different risk levels, with
specific procedures for each level. The system generates
alerts that are directed to the Compliance area.
All higher risk operations undergo rigorous analysis, which
includes due diligence, and may lead to discontinuity
in customer relationships, denial or cancellation of
operations.
In 2023, for example, we performed a scan to identify
irregular practices using Pix. The study made it possible to
20.2 thousand risk
analyses in foreign
exchange operations in 2023
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Tax approach
GRI 207-1 | 207-2 | 201-4
We adopt a tax approach based on strategies to ensure rigor, correct calculation
and declaration of taxes to the tax authorities, in all jurisdictions in which the
group has operations, including units domiciled outside Brazil. The process is
In 2023, XP was not exposed to legal actions involving unfair competition practices. A process initiated in August 2022 by
CADE (Administrative Council for Economic Defense) to investigate allegations of infringement related to the investment
distribution market, made by interested third parties and competitors of XP, was archived in March 2024. CADE determinedthat
guided by a group of tax experts who work in Tax Legal and Tax Compliance.
there was no evidence of anticompetitive conduct by XP.
Legal actions
GRI 206-1
The topic’s governance structure is complemented by the Fiscal Committee,
which validates the strategies that are disseminated across the different
business lines and must be observed in all company products and services. We
therefore seek the best tax design and, at the same time, act to prevent and
address risks of illicit or unethical behavior in relation to taxes. In case of a
relevant impact, tax issues are taken to the Executive Board.
In 2023, we will use tax incentive laws that allow us to direct part of our income
tax to social projects in the areas of sport and culture, among others. For the
same purpose, in some cases, we also made use of tax incentive laws on taxes
on services.
Monetary losses resulting from legal proceedings
FN-CB-510a.1 I FN-AC-510a.1 I FN-IB-510a.1
In 2023, we recorded three cases of monetary losses resulting from financial sector regulations. As a preventive measure, we
adopted process improvements to avoid exposure to risks in this area.
• A fine of R$25 thousand applied for delay in sending the declaration of Foreign Capital to the Central Bank in October
2022. The measure adopted next was the review of control flows for exchange rate reporting.
• In view of the analysis of full compliance with the Offer Code, carried out by Anbima within the scope of Process No.
OP002/2022, XPI CCTVM SA presented a Proposal for a Term of Commitment and paid a fine in the amount of R$222,000.00.
• Within the scope of BSM Supervisão de Mercado’s Operational Quality Program, the absence of prior orders from XPI
CCTVM SA resulted in the signing of a Term of Commitment and payment of a fine of R$30 thousand.
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Advisor Governance
Fostering an ethical and compliance culture in the network made up of 14
Governance and Integrity Seal
thousand investment advisors, in addition to insurance and pension brokers and
banking correspondents, we have an area dedicated to closely monitoring the
activity of these professionals, from onboarding the maintenance of partners and
collaborators who perform these duties.
Advisors are required to comply with capital market rules, policies and procedures
established in the Code of Ethics and Conduct for Investment Advisors. The
We have a qualification program for investment advisory offices that periodically diagnoses advisors and awards the Governance
and Integrity Seal to those who perform well in the following criteria:
• Internal controls and best corporate governance practices (self-assessment).
• Integrity in activities and relationships in the twelve months prior to the assessment carried out by Compliance.
document defines behavioral standards and practices to resolve conflicts of
• Engagement in the training carried out (presence and grades from advisors in assessments).
interest, guarantee the security and confidentiality of information and promote
practices to prevent and combat illicit activities.
In an effort to improve this process, in 2023 we updated the Investment Advisor
Compliance Manual, which consolidates, in a single document, all the policies and
guidelines to be followed by companies and professionals who provide services
to our clients. Adherence to the Manual is formalized at the time of establishing a
contractual relationship.
The advisor governance team uses data and analysis to identify atypical events
in the operations and services provided to clients by advisors, monitors, audits
and performs due diligence to ensure compliance with good business practices.
Issues alerts to the different compliance cells and adopts punitive measures, when
appropriate. It also works to raise awareness, train and guide professionals.
The initiative aims to mitigate possible risks and engage the network of advisors, on an ongoing basis, in legal compliance and
compliance with the rules, internal policies and guidelines of XP Investimentos.
Advisors trained in compliance, participated in the
assessment process and were certified
Year
2021
2022
2023
Participant
Offices with
Offices
Seal
Trained
Advisors
263 (69.5% of
49 (12% of the
5,495 (53% of
the network)
network)
the network)
270 (71% of the
44 (11% of the
6,573 (64% of
network)
network)
the network)
253 (65% of
80 (21% of the
7,523 (60% of
the network)
network)
the network)
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Integrity Seals awarded to
partner offices in 2023
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Suitability
The profile of investors is identified through a questionnaire filled out by the customer when opening
their account and the analysis of registration information, including financial situation, assets and
regular income maintained by the client. Based on this data, risk scores are assigned and the investor
is classified as conservative, moderate or aggressive, according to Anbima rules and CVM Resolution
30/2021, delimiting the products recommended to them.
The questionnaire can be updated by the customer at any time. Furthermore, we periodically re-
evaluate product recommendations and maintain a public Suitability Policy that explains, step by
step, our analysis methodology. Learn more about the Policy on the XP website.
Anti-corruption practices
GRI 205-1 | GR 205-2 | GRI 205-3 | GRI 3-3
The Code of Ethics and Conduct, the Anti-Corruption Policy and other company policies establish clear
rules for combating bribery, kickbacks, extortion and other forms of corruption. In 2023, no cases of
this type were registered in the group’s companies.
The policies apply to XP Inc. companies and subsidiaries, its employees, independent investment agents,
third parties and business partners. As part of the Compliance Program, we evaluate the reputation of
everyone involved in business with group companies, including customers. The objective is to avoid
discrediting situations in terms of reputational, competitive, socio-environmental risk and corruption.
Employees also comply with rules for receiving gifts, sponsorships, participation in external events and
relationships with the Government, and receiving any improper invitations that could be characterized
as bribery and corruption are prohibited.
In compliance with Brazilian law, the US Foreign Corrupt Practices Act, and the UK Bribery Act, among
others, we also carry out work to assess corruption risks in the Know Your Customer (KYC), Know Your
Employee (KYE) and Know Your Partner (KYP) reputational analysis flows and in evaluating relationships
with politically exposed people.
Likewise, operations involving public entities are evaluated and monitored within money laundering
prevention flows. The data is reported to regulatory bodies.
The anti-corruption topic is reinforced annually as part of the regulatory training track, so that employees,
investment advisors and professionals from partner offices are periodically trained on these issues. In
addition, we make an effort to raise awareness, with 37 communication actions carried out in 2023,
including communications on regulatory issues, awareness pills and reinforcement of guidance.
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Total number and percentage of members of the governance body to whom
the anti-corruption policies and procedures adopted by the organization were
communicated
GRI 205-2
Total number and percentage of employees to whom the anti-
corruption policies and procedures adopted by the organization were
communicated, broken down by region
GRI 205-2
2021
2022
2023
Employees reported, by
2023
Number
11
1
12
%
92%
8%
100%
Number
10
1
11
%
91%
9%
100%
Number
12
1
9
%
89%
11%
100%
Total and average number of hours of training in anti-corruption practices
carried out by the organization’s employees
GRI 205-2
2021
2022
2023
Total number
of hours
14,907
Average/h
2
Total number
of hours
5,246
Average/h
2
Total number
of hours
15,231
Average/h
3
Note: We do not control by gender and employment category
region
North
Northeast
Midwest
Southeast
South
Abroad*
Not applicable**
Total
Number
57
409
169
5,591
345
16
80
6,667
%
0.85%
6.13%
2.53%
83.86%
5.17%
0.24%
1.20%
100.00%
*Abroad = considered as any XP employee who does not have their main home in Brazil.
**Offshore employees, who work in the New York and Miami units, are subject to United States labor legislation and exempt
from responding to the census upon hiring.
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Technology and information security
FN-CB-230a.2
Training and engagement of employees,
customers and suppliers
We have more than 40 standards, policies and procedures that guide the
company’s and our customers’ information security, data protection and
privacy processes. This framework is reinforced by daily awareness and
training that seeks to engage 100% of our employees and business partners in
Main standards and policies
a strong cybersecurity culture, which supports the success and sustainability
• Information Security Policy
of the business in the long term.
Our Technology and Information Security area includes over 1,400 professionals
who are dedicated to protecting our information assets against internal
and external threats, ensuring the confidentiality, integrity and availability
of data. This process is supported by adequate controls at all levels of the
IT infrastructure, regular risk and vulnerability assessments, prevention,
detection and incident response measures.
Another approach is the use of technology to transform businesses. In this
sense, in 2023, a Technology Governance and Information Security team was
created and a mapping of competencies to be developed in the coming years
was carried out to further increase the company’s maturity and capabilities
in this area.
We have also evolved in the formalization of data processes and made progress
in technological risk management, financial management and service level.
One of the highlight projects of the year was the preparation of our platform
to process, in an integrated manner, products and services from our own
brands, such as XP, Rico and Clear, and from business partners. The initiative
brought about agility, cost reduction and improved customer experience.
Onboarding of new employees includes content on information
security and data privacy. Upon arriving at the company, everyone
signs an employment contract with confidentiality clauses and
specifications of responsibilities.
Employees follow a training routine provided by the Compliance
area and regularly receive information on the subject through our
communication channels. Phishing simulations are also carried out
• Data Privacy Policy for employees
• Data Privacy Policy for customers
in order to identify and mitigate potential risks. Another initiative is
• Information Security and Data Privacy
Policy for Suppliers and Business
Partners
• Standard for Acceptable Use of Assets
Visit the XP Investor Relations page to
learn more about public policies.
the Security Champions Program, which trains system developers
to apply secure techniques.
Our business partners and IT service providers undergo an
information security and data privacy assessment by a forum of
experts. The contract contains clauses that require compliance
with requirements and the adoption of controls, processes and care
regarding the topic.
We also maintain a monthly flow of communication with customers,
informing them about the main types of scams and frauds and how
to prevent them. In addition, we disclose features that contribute to
the security of personal data, such as hiding assets in the application,
blocking access, facial biometrics and others. We provide a page with
specific content on the XP website.
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Structure of the information technology and security area
CTO
(Chief Technology
Officer)
CISO
(Chief Information
Security Officer)
Identity and Access
Management
Security Operations
Application Security
Information Security
Privacy, Governance,
and Supplier IS
Fraud Prevention
Engineering
Identity and access management
We have a group that takes care of granting, changing and revoking
access in all XP environments, defining policies and controlling
user access to systems, applications and data, in an integrated
manner with XP’s security and identity management systems.
Performs audits and adopts security measures to protect users’
identity data against unauthorized access, theft or compromise.
Security operations
The area tests, designs, implements and continuously monitors
the security of the organization’s infrastructure, networks and
systems. Identifies and responds quickly to incidents, implements
security and traffic control measures, and performs analysis to
identify suspicious activity or anomalies that may indicate a
security breach.
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Application security
Critical incident reporting
The team works to ensure that projects, systems and APIs are planned, built and delivered in accordance
In 2023, we did not record any data breaches or damage to our environment from cyber-attacks or
with information security requirements. In addition to guiding developers to create secure code that
any other means. We adopt an incident response plan with clear and objective guidelines for quickly
adheres to best security practices, it reviews code, carries out tests to identify vulnerabilities in
and effectively carrying out actions to contain problems in the event of crises.
applications and systems and coordinates correction.
Privacy and information security governance
Area focused on actions to meet data privacy requirements (LGPD) at XP in our service providers. The
team manages regulatory compliance and security guidelines by measuring performance indicators
and continuous improvement, maintaining policies and standards for suppliers and affiliates.
Total number of substantiated complaints regarding violation of privacy
and loss of customer data
GRI 418-1
2021
2022
2023
Fraud prevention engineering
Responsible for developing and implementing models, algorithms and systems to detect and prevent
Complaints received from independent
parties and substantiated by the
organization
Complaints from regulatory agencies
fraudulent activities. It analyzes large volumes of data, develops rules and heuristics and implements
Total number of substantiated complaints
real-time detection systems. Continuously tests and validates detection models and mitigation
regarding breaches of customer privacy
strategies, and keeps the company up to date on trends in fraud and prevention technologies.
Total number of leaks, thefts or losses of
customer data that were identified.
If the organization has not identified any
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0
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substantiated complaints, a brief statement
N/A
N/A
of that fact will suffice.
0
3
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0
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RISKS
We adopt centralized management of financial and non-financial risks, which covers all our activities,
processes, products and services, business partners and strategic suppliers.
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Integrated Risk Management
The main risks associated with the industry in which we operate are the volatility of domestic and international
financial, bond and equity markets, funds and other asset classes, in addition to intense competition, extensive
regulation and litigation risk. We are not subject to emerging risks.
GRI 201-2
Another risk inherent to the financial market is related to the poor performance of investment products
recommended or sold by our advisors or distributed through our platform. We are also exposed to substantial
fluctuations in the volume and price level of securities and dependence on the solvency of various parties and
third parties.
Our Integrated Risk Management Policy establishes the principles and guidelines to foster a risk culture in the
organization, defining the processes for identifying, measuring, evaluating, monitoring, reporting, controlling
and mitigating risks. The Risk Appetite Statement establishes acceptable levels of risk that we are willing to
assume.
In 2023, we reinforced risk management as a responsibility for all employees, expanding internal communication
actions and at corporate events. Every month, we release a Risk videoclip newsletter, with information and
guidance and the topic is part of Compliance Week (page 109). The CEO of XP Inc. included the Risk Mitigation
Index in his personal goals, moving the company around the topic. The indicator allows not only the mitigation,
but also the maturity of the risks in each area of the company.
5.077 professionals trained in risk and compliance in 2023
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Lines of defense
Risk governance
The highest decision-making body for risk is the Executive Board, supported by the Audit and Risk Committee, which advises
the Board of Directors, Internal Audit and nine committees that are under the management of these areas. The Risk, Financial
and Legal departments join forces in risk prevention and mitigation initiatives, with regular reporting of these initiatives and
decisions to the Risk Committee.
The Risk Department has six structures dedicated to the management of each of the following risks: market, interest rate risk
of banking book, credit, counterparty, non-financial, administrator and social, environmental and climate risk. The Financial
Department is responsible for risks related to the management of assets, liabilities and capital, controllership and financial
results. The Legal Department, in turn, is responsible for legal and compliance risks.
First line
Business and support areas. They are responsible for identifying,
evaluating, reporting and controlling the risks inherent to their
activities.
Second line
Control areas. They are responsible for defining the risk
management strategy and structure, analyzing and monitoring
operational risk limits and challenging first-line functions.
Third line
Internal Audit. Independent assessment of the risk management
structure, governance and internal controls.
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Executive Risk Board
Executive Board
Audit Committee
Treasury Committee
Economy Committee
Internal Audit
Company Compensation Committee
AML/TF Committee
Corporate Initiatives Committee
Ethics Committee
Risk Committee
Credit Products Distribution Committee
Credit and Policy Monitoring Committee
Credit Decision Committee
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Risk Department
Financial Department
Legal Department
Market, IRRBB,
Liquidity and
Capital Risk
Credit Risk
Counterparty
Risk
Non-Financial
Risks
Administrator
Risk
Social,
Environmental
and Climate
Risk
Assets,
Liabilities
and Capital
Management
Controllership
Managerial
Results
Legal
Compliance
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Our main risks
Credit risk
Liquidity Risk
It is the possibility of losses associated with non-compliance by the borrower or counterparty. The non-
Liquidity risk is associated with the possibility that the institution will not be able to efficiently honor
compliance may be due to the respective financial obligations under the agreed terms, the devaluation
expected and unexpected, current and future obligations, including those arising from binding guarantees,
of the credit contract resulting from the deterioration in the borrower’s risk classification, the reduction
without affecting daily operations and without incurring significant losses. Or, even, that the institution
in earnings or compensation, the advantages granted in the renegotiation and the recovery costs.
will not be able to negotiate a position at market price, due to the large size in relation to the volume
Credit Risk also covers other risks, including:
• Counterparty Credit Risk: possibility of non-compliance, by a given counterparty, with obligations
relating to the settlement of operations involving the trading of financial assets, including those
relating to the settlement of derivative financial instruments.regulatórios inerentes das atividades da
instituição, gerando assim possíveis riscos de sanções legais ou regulatórias, multas ou penalidades,
perda financeira ou danos à reputação resultantes do descumprimento de leis, regulamentos, regras
ou requisitos regulamentares.
• Country Risk: possibility of losses associated with non-compliance with financial obligations under
agreed terms by a borrower or counterparty located outside the country, as a result of actions carried
out by the government of the country where the borrower or the counterparty is located, and Transfer
Risk understood as the potential for obstacles occurring in the exchange rate conversion of amounts
received.
• Concentration Risk: the possibility of losses associated with significant exposures to the same
counterparty; to counterparties operating in the same economic sector, geographic region or product
and service segment; to counterparties whose revenues depend on the same type of merchandise or
activity; to financial instruments whose risk factors, including currencies and indexes, are significantly
related; to the same type of financial product or service, and whose risk is mitigated by the same type
of instrument.
normally traded or due to some discontinuity in the market.
Market Risk
Market risk is the potential for loss resulting from fluctuations in the market values of proprietary
positions. The risks involved are variations in interest rates, share prices, exchange rate variations and
commodity prices for instruments classified in the Trading Book and Banking Book.
Social and Environmental Risk
Social and environmental risk is the probability of losses resulting from exposure to environmental and
social events related to the Company’s activities.
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Climate Risk
It is understood as the possibility of losses caused by the emergence
of physical risks, including extreme events and chronic changes
in climate patterns, or transition, including reputational, legal and
market risks, which may manifest themselves as a consequence of
the transition of a low-carbon economy.
Business Continuity Management
Business Continuity Management is a comprehensive process that identifies potential threats to XP and the possible impacts on our
operations if the threats materialize. Its objective is to build and continually improve organizational resilience, so that the company
is able to respond effectively to risks and safeguard the interests of the parties involved, its reputation, brand and value-added
activities. The process is divided into five macro stages: identify, analyze, define, perform and monitor.
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Regulatory and Compliance Risk
Regulatory and Compliance Risk refers to potential litigation,
investigations and regulatory processes inherent to the institution’s
activities, thus generating possible risks of legal or regulatory
sanctions, fines or penalties, financial loss or damage to reputation
resulting from non-compliance with laws, regulations, rules or
regulatory requirements.
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Social, Environmental and Climate Risk
GRI 201-2
For us, social and environmental risk represents the probability of
Additionally, we have a Social, Environmental and Climate
losses resulting from exposure to events related to these topics
Responsibility Policy (PRSAC) that aims to reinforce the principles
in the company’s activities. Climate risk is understood as the
and guidelines applied to our business, activities, processes and
possibility of losses caused by the materialization of physical risks,
relationships with stakeholders. PRSAC seeks to prevent and
including extreme events and chronic changes in climate patterns,
mitigate negative impacts and increase positive impacts on the
Prohibited and restricted
sectors
We prohibit any type of link or relationship with companies
involved in slave labor or slavery, child labor and prostitution.
Furthermore, all operations carried out with companies in
restricted sectors are subject to a detailed assessment by
or transition, including reputational, legal and market risks, which
environment and society, based on the principles of relevance and
the ESG & Social, Environmental and Climate Risk area.
may manifest themselves as a consequence of the transition of a
proportionality and our other specific internal policies.
low carbon economy.
We also have the Social, Environmental and Climate Risk Procedure
In this sense, we manage these risks in our activities and operations,
(RSAC), which establishes and documents the guidelines, rules and
Restricted sectors
in our customers and suppliers and in our products, including the
procedures for analyzing and managing social, environmental and
• Weapons and Ammunition
steps for identifying, classifying, analyzing, monitoring, mitigating,
climate risk, directing our practices for identifying and managing
controlling and recording the occurrence of losses related to social,
risks and opportunities.
environmental and climate aspects.
The guidelines take into account the principles of relevance and
Recognizing the importance of effectively managing these risks in
proportionality of these risks, with a synergistic vision of all activities
• Tobacco and smoke products
• Asbestos
• Coal
business, we created the ESG & Social, Environmental and Climate
and businesses. This process is supported by the Compliance
• Slaughterhouses
Risks area in 2020 directly linked to the Legal, Compliance and
Platform (page 111), which integrates information about clients,
ESG Department. Governance related to these topics is shared and
suppliers and investment advisors and assigns a risk score to each
integrated, at the executive level, by the Executive Risk Committee
individual or company that interacts with us.
through the Social, Environmental and Climate Risk Committee
and the Social, Environmental and Climate Risks and Responsibility
Committee. Within the scope of the Board of Directors, governance
is formed by the Risk, Credit and ESG Committee and the Audit
Committee.
100% of customers, suppliers and
products subjected to RSAC analysis
• Mining
• Wood
• Steel industry
• Agribusiness
• Petrochemicals
• Radioactive materials
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How the social, environmental and climate risk
analysis cycle works
During Client Onboarding, the first filter is automated, following the rules defined by the
Compliance Platform (page 111). This filter layer also identifies the client’s sector and, if it fits
into the list of restricted sectors, it is sent to the ESG & Social, Environmental and Climate Risk
team for analysis. The same happens when negative situations are verified, such as discrediting
media, inclusion on restrictive lists and judicial or administrative proceedings related to social,
environmental or climate issues.
The impacts of new operations, such as the creation of Project Finance at the Wholesale Bank, are
also analyzed, establishing the operational requirements necessary for a safe implementation
from an ESG point of view. We therefore ensure that products are launched in a responsible and
ethical manner. In the same way, we evaluate our product and service providers and foreign
exchange operations.
In credit, we adopt an automated process that signals the need or not for in-depth analysis,
in accordance with the pre-established credit policy for each company. It is mainly used for
collateralized credit operations, in which the company’s investment is given as collateral. As
the credit risk is low in these cases, approval is usually quick, except for companies in sectors of
attention, which are automatically directed to a social, environmental and climate risk analyst.
The second stage of the process is formed by a more in-depth analysis of the company or
operation, which is subsequently submitted for analysis by the Credit Committee, which has
veto power. More complex cases are addressed to the executive board and, if necessary, to
higher decision-making bodies.
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Analysis methodology
Risk matrix
Based on the assessment of the three aspects of our social, environmental
Our proprietary methodology considers the potential social, environmental and climate impact of customers and product and service
and climate risk analysis methodology, we generate a report for the client
suppliers and the capacity they have to manage these topics. There is also a pillar on controversial notes and sectors, which involves
company or supplier of products and services along with their respective
scanning media, lists and administrative and judicial processes to identify possible situations that discredit the companies with which
ratings. Risks can be classified into five levels, from A to E; the higher the
we interact.
level, the higher the required approval authority.
The analysis is applied to 100% of relationships and products, such as foreign exchange, credit to individuals and legal entities and
Investment Banking operations, such as Debt Capital Markets (DCM) and Equity Capital Market (ECM) issues.
Potential social,
Social, environmental
environmental and climate
and climate management
Controversial notes and sectors
impact
capacity
We use the Febraban Green
We make a qualitative
Taxonomy, the Categorization
assessment of the
List of the European Bank
company's ability to
for Reconstruction and
manage the key social,
Development (Categorization
environmental and climate
List from the European
risks inherent to its activity.
Bank for Reconstruction and
To do this, we use public
Development - EBRD), CONAMA
information disclosed in
Resolution 237 and Cetesb's W
sustainability reports,
Complexity Factor to classify
websites and ESG rating
the risk potential.
agencies, among others.
We use research in media bureaus, lists and administrative
and judicial processes brought together by the Money
Laundering Prevention area to carry out a qualitative
assessment of social, environmental and climate-related
violations in which the client is involved.
In the assessment processes, identification of negative
media, administrative or judicial processes and lists of
a restrictive nature are also considered, such as slave-
like work, child labor, prostitution, illegal deforestation,
environmental crimes, pollution, contaminated areas,
embargoed areas (IBAMA and ICMBio), activities in
indigenous and traditional communities, and human rights
issues, among others.
Social, environmental and
climate rating
Approval authority
very low risk A
low risk B
ESG & Social,
Environmental and
Climate Risk Area
medium risk C
high risk D
very high risk
E
ESG Director
(if necessary, the ESG
Comission)
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Application on business areas
We implement social, environmental and climate risk analysis processes in all business areas, from opening checking accounts or investments for individuals and companies to issuing debt securities. In all of them,
the final decision on acceptance of the client or the operation rests with the ESG Officer, if the ESG & Social, Environmental and Climate Risk area disagrees with the approval. See below the scope of actions in the
different business processes.
Customer Onboarding
Supplier Certification Process
Foreign exchange operations
Since 2021, we have incorporated social, environmental and
All of our suppliers undergo a mandatory social, environmental
All of our foreign exchange operations are subject to scrutiny for prohibited
climate topics into the onboarding process for individuals
and climate risk analysis, following the guidelines for
activities and restricted sectors and go through the automated flow of
and legal entities, and adopted specific criteria for customer
prohibited activities and restricted sectors, in addition to our
negative media research, administrative and judicial processes, and social,
acceptance. Analysis is carried out on all new accounts opened,
proprietary analysis methodology.
environmental and climate restrictive lists (see the “Controversial Notes and
following the guidelines for prohibited activities and restricted
sectors. The assessment also covers the identification of
negative media, administrative or judicial processes and lists of
a restrictive nature (see the “Notes and controversial sectors”
pillar, on page 129).
New products and services process
New businesses and products are assessed using the TAC-NAC
(Transaction Approval Committee-New Activities Committee)
Governance Process, which considers ESG and social,
environmental and climate risk criteria. These factors are also
observed by the Corporate Initiatives Committee, responsible
for deliberating on requests to implement new strategic projects,
such as the creation of products and services, businesses,
platforms, channels and experiences.
Suppliers classified as having low impact potential in these
Sectors” pillar on page 129.
areas go through a simplified and automated flow, which
Those related to the wood, mining (mainly linked to the extraction of gold,
involves negative media research, administrative and judicial
diamonds and other precious stones), tobacco, weapons and ammunition
processes and restrictive lists (see the “Notes and controversial
sectors are subjected to detailed manual analysis. For companies in these
sectors” pillar, on page 129). On the other hand, suppliers
sectors, environmental licenses, authorizations from the National Mining
classified as having medium and high impact potential must
Agency (ANM), Kimberley Certification (specific to diamonds), FSC Certification
also respond to the ESG questionnaire.
and a list of suppliers, among others, are required.
At the end of the analysis, a social, environmental and climate
We are thus able to eliminate the risk of foreign exchange transactions related,
rating is assigned to the supplier. The final decision on its
for example, to possible illegal practices and money laundering, and the export
acceptance is made based on the level at which it has been
of illegal wood and ores extracted from protected areas.
classified in our risk matrix (page 129). Those with higher risk
are subject to higher approval levels than those of the ESG &
Social, Environmental and Climate Risk area.
The final decision on approving the operation is made based on these
assessments, and operations denied by the ESG & Social, Environmental and
Climate Risk area are decided by the ESG Officer.
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Credit Transactions
ECM Operations
Since 2021, 100% of our credit operations have been subjected to social, environmental and climate risk
Our Equity Capital Market operations have been undergoing social, environmental and climate risk
analysis. We follow the guidelines for prohibited activities and restricted sectors, and assess the potential
analysis since 2022. All clients listed in restricted and attention sectors, such as weapons industries,
impact, the company’s social, environmental and climate management capacity, socio-environmental
mining and agribusiness, are subjected to detailed analysis. The assessment also covers the list of
notes and controversial sectors (page 129).
prohibited activities and information checks in internal bureaus.
All operations are also subject to detailed analysis by the ESG & Social, Environmental and Climate Risk
team. Often, at this stage, meetings are held with the credit team and the client to clarify labor, supply
chain and other aspects.
The social, environmental and climate rating assigned to the company or operation is integrated into
the qualitative credit rating calculation model, which may even impact credit rates and pricing.
DCM Operations
Debt Capital Markets operations have been subject, in their entirety, to the social, environmental and
climate risk analysis process since 2022. We follow the guidelines for prohibited activities and restricted
sectors and our proprietary analysis methodology, which measures the potential impact of the company,
its ability to manage these topics, socio-environmental notes and controversial sectors (page 129), with
application of the risk matrix.
Other operations and activities analyzed
Other operations for which technical opinions on social, environmental and climate risk are issued
are the issuance of Financial CPR (Rural Producer Certificate) and CCB (Bank Credit Certificate),
the sale of energy, the constitution of XP Asset’s funds and fund management, and asset issuances
on our investment platform. We also analyze donations and partners benefiting from them.
Training in social, environmental and climate risk
We carry out periodic training on the topic of ESG and social, environmental and climate risk across
the company. This topic is present in the customer and supplier onboarding training trail carried out by
Additionally, if there is any urban or rural property offered as collateral in the operation, we assess
employees at all levels at the beginning of the relationship with XP.
the regularity of environmental licensing and the Rural Property Registry (CAR), the list of embargoed
areas from IBAMA and ICMBio, illegal deforestation activities, presence on the dirty list of work similar to
slavery, public civil actions, presence in “quilombola” and indigenous territories and integral protection
units, soil contamination and other topics.
Additionally, between 2020 and 2023, we carried out a series of training courses on the subject for the
areas of Risk, Compliance, Audit, Credit, Legal and Commercial, in addition to workshops and lectures
for different stakeholders. Last year, we also developed the Advisor Trail, a mandatory annual training
for all investment advisors in our network, which will begin to be applied in 2024.
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Social, environmental and climate risk analysis indicators
In 2023, we increase the volume of manual assessments carried out by almost 5% compared to the previous year. 780 companies and individuals were the subject of social, environmental and climate scrutiny, in
the onboarding, foreign exchange, DCM, ECM, capital markets and energy trading processes, among others.
Of this total, 8% were denied due to social, environmental or climate issues or, in other words, the relationship with XP did not move forward. In 2022, the denial rate was 6%. The increase is related to the
improvement of risk processes.
Additionally, in 2023, we carried out 768 analyses for the Credit Decision and Credit Product Distribution committees, which included derivatives, ACC, CRI, CRA and Debentures operations.
Number of analyses of individuals and legal entities
2022
2023
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70 (8% denied)
748
(94% approval)
780
(92% approval)
Number of analyses for the credit decision and credit product distribution
committees
2022
2023
669
768
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Emblematic cases
GRI 201-2
Periodic risk monitoring
FN-IB-410a.3 I FN-CB-410a.2
The social, environmental and climate risk analysis processes have made
it possible to anticipate risks and prevent XP from being exposed to
negative situations related to disrespect for human rights, the protection of
indigenous territories, the deforestation of protected areas, among other
issues that may violate our ethical and responsible policies and conduct.
Additionally, they have helped to mitigate potential reputational, legal and
credit risks related to these topics and to prevent money laundering.
One of our focuses is foreign exchange operations requested by companies
in the mining sector, with a close eye on the risk of illegal mining of precious
stones in protected areas. In 2022, In 2022, for example, we blocked a
transaction with a company that exports gold. In April 2023, an operation
carried out by the Federal Police identified the company’s involvement in
illegal practices.
Another example was the work of the ESG and Social, Environmental and
Climate Risk area in preventing credit loss and reputational risk with the
denial of credit, in 2023, to an agro-industrial company that was later
exposed for alleged criminal activities in indigenous and “quilombola”
areas and, as a result, it filed a request for judicial recovery.
We also blocked a DCM transaction with a supermarket chain that, despite
its compliance, had signs of land grabbing regarding the property given as
collateral, mitigating potential image, collateral and legal risks.
Since 2022, we have periodically monitored the social, environmental and climate risk of our customers and operations, in
three layers.
1
Automated daily monitoring
Of customers, through the Compliance Platform, to monitor possible negative media, administrative and judicial
processes, and inclusion in restricted lists, such as slave labor and embargoed areas, among others. When a social,
environmental and climate issue is identified, we make an in-depth assessment and change the classification and
opinion, which may result in the maintenance of the operation or relationship, change in client’s risk, blocking of
the operation and limits and, finally, the termination of the relationship.
2
Semi annual monitoring
Of the credit portfolio of legal entities, running 100% of the portfolio in the social, environmental and climate
risk module of the Compliance Platform and reclassifying it. Customers reclassified with a “D” or “E” rating are
reassessed on a case-by-case basis, with a new opinion being issued and analyzed by the relevant authority. The
opinion may recommend maintaining the customer’s operations and limits, blocking possible operations and limits
and, finally, requesting the termination of the relationship with the customer.
3
Hand-to-hand monitoring
In the last layer, we carry out a closer monitoring of credit portfolio customers with a “D” or “E” social, environmental
and climate rating (high and very high risk, respectively), with a manual and more detailed monitoring of each of
them.
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Social, environmental and climate risk management
GRI 201-2 I FN-AC-410b.3 I FN-CB-550a.2 I FN-IB-550a.2
We manage the social, environmental and climate risk associated with our activities, customers,
operations, suppliers and products, including the stages of identification, classification, analysis,
monitoring, mitigation, control and recording of loss occurrences. The objective is to maintain exposure
to social, environmental and climate risk within the tolerances pre-established in our RAS.
In 2022, we included climate variables in the definition of the social, environmental and climate rating,
such as the potential physical or transition risk of the sector; history of extreme weather events; and
the company’s climate management capacity, using information on eco-efficiency targets, public
climate commitments, disclosure of Greenhouse Gas Emissions, climate targets, incorporation of TCFD
recommendations, existence of a climate change policy, and targets or guidelines for addressing climate
The evolution of the monitored management indicators is reported quarterly to the Risk Department,
risk.
and every six months to the Audit, Risks, Credit and ESG Committees and to the Board of Directors,
following the guidelines of the Social, Environmental and Climate Responsibility Policy, the Integrated
Risk Management Policy, and the Social, Environmental and Climate Risk Procedure.
That year, we also became signatories to the PCAF and adhered to Febraban’s Climate Sensitivity Rule,
starting to measure, monitor and manage the exposure of the credit portfolio based on two managerial
Management Indicators
climate indicators: climate sensitivity and financed emissions (page 88).
Monitoring these indicators allowed us to establish, in 2023, our climate risk appetite metrics, with
subsequent definition, together with the Social, Environmental and Climate Risk Commission, which is
linked to the Executive Risk Committee, of targets for reducing the intensity of financed emissions and
the portfolio’s climate sensitivity. This year, we began to assess the resilience to potential climate risks
• Exposure to sectors with high potential for social, environmental and climate impact
of the credit portfolio, based on the worsening of specific revenues from businesses exposed to the
of the corporate credit portfolio
climate.
• Financed emissions from the corporate credit portfolio
• Credit exposure to green economy sectors
RAS indicators
• Social, environmental and climate quality of the corporate credit portfolio
• Climate sensitivity of the corporate credit portfolio
We ended 2023 with just 2.2% of the risk allocated to companies with high and very high social,
environmental and climate risk in the credit portfolio, that is, within our risk appetite limits.
The financed emissions indicator had an intensity of 6.24 tCO2e/R$ MM, with a reduction of
48.22% between 2021 and 2023. Only 12.72% of the risk allocated had a high climate sensitivity
classification, being within our RAS limits, with a reduction of two percentage points between
2021 and 2023. These indicators show that our credit portfolio has grown together with the
social, environmental and climate quality of the portfolio.
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Main climate risks and impacts for XP, with their possible materialization deadlines and actions taken to mitigate
such risks
FN-CB-550a.2 I FN-IB-550a.2
Climate Risks
Impact
Materialization in
other risks
Climate Risks
Impact
Materialization in
other risks
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Transition Risk:
Regulatory
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Possibility of fines resulting from non-
compliance with regulatory requirements.
Legal Risk
Operational Risk
Reputational Risk
Credit Risk
Reputational Risk
Legal Risk
Transition Risk:
Market
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Possibility for the institution of losing market
share due to changes in consumer behavior.
Credit Risk
Market Risk
Possibility for client-companies of losing market
share due to changes in consumer behavior.
Market Risk
Reputational Risk
Possibility of losing market share due to the
imposition of economic barriers.
Credit Risk
Market Risk
Possibility of change in the demand and supply
of products.
Credit Risk
Market Risk
Need for climate adaptation measures.
Operational Risk
Credit Risk
Costs with regulatory compliance.
Operational Risk
Possibility of enforcements related to the
reduction of Greenhouse Gas Emissions.
Credit Risk
Possibility of pricing and/or carbon taxation.
Credit Risk
Possibility of increased operating costs, with
changes in prices due to structural changes or
supply shocks.
Credit Risk
Transition Risk:
Legal
Possibility of climate litigation unfavorable to
the company.
T
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Transition Risk:
Reputational
Risk of greenwashing.
Possibility of increasing climate responsibility
when taking actions for decarbonization.
Legal Risk
Reputational Risk
Credit Risk
Operational Risk
Reputational Risk
Legal Risk
Credit Risk
Reputational Risk
Legal Risk
Operational Risk
Credit Risk
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Climate Risks
Impact
Materialization in
other risks
How we manage risks
T
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Transition Risk:
Technological
Acute Physical Risk
(Extreme Climate
Events)
Chronic Physical
Risk (Long-Term
Changes)
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Need to incorporate new technologies with
increased competitiveness and production
costs.
Credit Risk
Market Risk
Need to invest in new technologies.
Credit Risk
Operational Risk
Possibility of client-companies losing
productivity due to business interruption or
asset idleness.
Credit Risk
Possibility of damage or repricing of family
and business assets.
Credit Risk
Operational Risk
Possibility of loss of/reduction in family
income.
Credit Risk
Possibility of reduction in productivity of the
agricultural sector.
Credit Risk
Possibility of reduction in productivity of the
agricultural sector.
Credit Risk
• ESG and social, environmental and climate risks governance implemented at the institution.
• Periodic monitoring of the climate-related regulatory agenda.
• Management and monitoring of legal and regulatory compliance.
• Social, environmental and climate risk analysis process implemented in the onboarding,
suppliers, foreign exchange, credit, DCM and ECM processes, where we assess, among other
factors, the regulatory compliance related to social, environmental and climate topics, in
addition to possible processes and fines related to the topic.
• Social, environmental and climate monitoring process implemented for customers.
• Social, environmental and climate risk management process in the institution’s portfolios.
• Monitoring possible losses related to social, environmental and climate events.
• Contingency plan that considers climate events.
• Monitoring of the credit portfolio’s climate sensitivity indicator.
Possibility of impact on supply chains.
Credit Risk
• Monitoring the intensity of financed emissions from the credit portfolio.
Possibility of impact on company productivity.
Credit Risk
136
Integrated Annual Report 2023
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Process for recording losses due to social, environmental and climate issues
We have established a detailed process for recording losses arising from social, environmental and
• Slave labor at XP Inc.
climate damage, both relating to administrative and judicial proceedings (operational risk), or relating
to credit operations (credit risk).
• Child labor at XP Inc.
• Criminal profit from prostitution.
The methodology follows the guidelines of Febraban’s “Guide for Recording Losses resulting from
• Contamination carried out by XP Inc.
Socio-Environmental Damage.” In the case of losses related to administrative or judicial proceedings,
we mark the proceedings that result in provisions and/or disbursements arising from the following
topics:
• Contamination carried out by a customer or supplier.
• Climate litigation.
• Inadequate discharge of solid waste by XP Inc., including disposal, recycling and reverse logistics.
• Inadequate discharge of solid waste by the customer and/or supplier, including disposal, recycling
and reverse logistics.
For credit operations, for example, events related to environmental licensing, illegal deforestation, slave
labor, environmental fines, indigenous lands, among others, are considered. Furthermore, we carry
out a process of marking losses in three phases: identification of operations with credit loss; social,
environmental and climate verification of the companies involved; and analysis of the relationship
• Failure to comply with environmental legislation in accordance with law 6.938 by XP Inc.
between credit loss and social, environmental and climate issues, thus ensuring adequate recording
• Environmental crime committed by XP, in accordance with law 6.938/1981.
of losses resulting from these damages.
• Non-compliance with environmental regulations in accordance with law 6.938/1981 by the customer
and/or supplier.
This approach aims to promote XP’s responsibility and transparency in relation to the social,
environmental and climate impacts of our operations and improve the social, environmental and
• Environmental crime committed by the customer and/or supplier in accordance with law 6.938/1981.
climate risk management process. It is worth highlighting that we did not record any losses relating
• Areas and assets with restricted use and/or land occupation and areas of special preservation
to events of this type in 2023, which demonstrates the company’s adequate management of these
interest, including historical, archaeological and cultural heritage.
social, environmental and climate risks.
• Environmental licensing, including lack of licensing or non-compliance with conditions set by
environmental agencies and legislation.
• Discrimination or prejudice in the work environment carried out by XP Inc.
• Discrimination or prejudice in the work environment carried out by customers or suppliers.
• Customer or supplier working with slave labor.
• Customer or supplier working with child labor.
We did not record any losses related to such events in 2023, which demonstrates
the proper management of the company’s Social, Environmental, and Climate Risks.
137
Integrated Annual Report 2023
Integrated Annual
Report 2023
GRI and SASB index
Summary of GRI disclosures
This report complies with the GRI Standards (GRI 1: Foundation 2021), for the period from January 1 to
December 31, 2023.
Metric
Description
Response location
Status
Comment
GRI 2: The organization and its reporting practices (General Disclosures 2021)
2-1
2-2
2-3
2-4
2-5
Organizational details
Entities included in
the organization's
sustainability report
Reporting period,
frequency and point
of contact
About this Report,
page 3
About this Report,
page 3
Information
restatements
Materiality,
page 9
External assurance
Not verified
GRI 2: Activity and workers (General Disclosures 2021)
2-6
2-7
2-8
Activities, value chain
and other business
relationships
Value creation, page
17
Employees
Employees, page 61
Workers who are not
employees
Employees, page 62
Metric
Description
Response location
Status
Comment
GRI 2: Governance (General Disclosures 2021)
2-9
2-10
2-11
2-12
2-13
2-14
2-15
2-16
2-17
Governance structure
and composition
Governance structure,
page 98
Appointment and
selection to the
highest governance
body
Governance structure,
page 99
Chair of the highest
governance body
Governance structure,
page 99
Role of the highest
governance body
in overseeing the
management of
impacts
Delegation of
responsibility for
managing impacts
Role of the highest
governance body
in sustainability
reporting
Governance structure,
page 99
Corporate
Governance, page 101
About this Report,
page 3
Conflicts of interest
Compliance, page 106
Communication of
critical concerns
Collective knowledge
of the highest
governance body
Compliance, page 106
Governance structure,
page 98
138
Integrated Annual
Report 2023
Metric
Description
Response location
Status
Comment
Metric
Description
Response location
Status
Comment
2-18
2-19
2-20
2-21
Assessment of the
performance of the
highest governance
body
Compensation
policies
Process for
determining
compensation
Total annual
compensation ratio
Corporate
Governance, page
100
Governance
structure, page 100
Governance
structure, page 100
GRI 2: Estratégia, políticas e práticas (Conteúdos Gerais 2021)
2-22
2-23
2-24
2-25
2-26
Statement on
sustainable
development strategy
Letter from the CEO,
page 5
Policy commitments
Materiality, page 9
Incorporation of
policy commitments
Processes to
remediate negative
impacts
Mechanisms for
seeking advice and
raising concerns
Compliance, page 106
Compliance, page 106
Compliance, page 106
2-27
2-28
Compliance with laws
and regulations
Not applicable
Membership
associations
Value creation, page
23
No significant cases
of non-compliance
were identified to be
reported, as there
were no fines applied
or important non-
monetary sanctions
to detail.
Not reported
GRI 2: Stakeholder engagement (General Disclosures 2021)
2-29
2-30
Approach to
stakeholder
engagement
Quality in
relationships, page 4
e 58.
NPS – Net Promoter
Score, page 60.
Collective bargaining
agreements
Collective bargaining
agreements, page 73
GRI 3: Material Topics 2021
3-1
3-2
3-3
Process to determine
material topics
Materiality, page 9
List of material topics Materiality, page 10
Management of
material topics
Materiality, page 9
GRI 201: Financial Performance 2016
201-1
Direct economic
value generated and
distributed
Value creation, page
18
Distribution of added
value, page 22
139
Integrated Annual
Report 2023
Metric
Description
Response location
Status
Comment
Metric
Description
Response location
Status
Comment
201-2
201-3
201-4
Financial implications
and other risks and
opportunities due to
climate change
Defined benefit
plan obligations and
other retirement
plans
Financial assistance
received from the
government
Financed emissions
page 88
Social, environmental
and climate risk
management, page
134
Tax approach, page
114
GRI 202: Market presence in 2016
202-1
Ratios of standard
entry level wage by
gender compared to
local minimum wage
GRI 203: Indirect Economic Impacts 2016
203-1
203-2
Infrastructure
investments and
services supported
Significant indirect
economic impacts
GRI 204: Procurement Practices 2016
204-1
Proportion of
spending on local
suppliers
Suppliers page 74
Not applicable
There are no retirees
Not reported
Not applicable
Not applicable
There are no
investments in
infrastructure and
support for services
There are no
significant indirect
economic impacts
GRI 205: Anti-corruption 2016
205-1
205-2
205-3
Operations assessed
for risks related to
corruption
Communication and
training on anti-
corruption policies
and procedures
Confirmed incidents
of corruption and
actions taken
Compliance, pages
106 e 116
Compliance, pages
106, 109 e 117
Compliance, page 116
GRI 206: Anti-competitive Behavior 2016
206-1
GRI 207: Tax 2019
207-1
207-2
Legal actions for anti-
competitive behavior,
anti-trust, and
monopoly practices
Tax approach
Tax governance,
control, and risk
management
Tax approach, page
114
Tax approach, page
114
GRI 301: Materials 2016
301-1
Materials used, by
weight or volume
Not applicable
There is no
representative use of
materials
140
Integrated Annual
Report 2023
Metric
Description
Response location
Status
Comment
Metric
Description
Response location
Status
Comment
301-2
GRI 302: Energy 2016
Raw materials or
recycled materials
used
Not applicable
There is no
representative use of
materials
302-1
302-2
302-3
302-4
Energy, page 93
Energy consumption
within the
organization
Energy consumption
outside the
organization
Energy intensity
Reduction in energy
consumption
GRI 303: Water and effluents 2018
303-1
303-2
303-3
303-4
303-5
Water, page 94
IInteractions with
water as a shared
resource
Management of water
discharge-related
impacts
Water intake
Water discharge
Water consumption
Water, page 94
Not applicable
Not reported
Not applicable
There is no energy
consumption outside
the company
There was no
reduction in energy
consumption
Not applicable
There is no discharge
of effluents
Not applicable
Not applicable
There is no water
intake
There is no water
discharge
GRI 304: Biodiversity 2016
304-2
304-3
Significant impacts
of activities, products
and services on
biodiversity
Protected or restored
habitats
GRI 305: Emissions 2016
305-1
305-2
305-3
305-4
305-5
Direct (Scope 1) GHG
emissions
Greenhouse Gas
Emissions, page 86
Greenhouse Gas
Emissions, page 86
Greenhouse Gas
Emissions, page 86
Financed emissions,
page 88
Climate sensitivity of
the credit portfolio, ,
page 91
Energy indirect
(Scope 2) GHG
emissions
Other indirect (Scope
3) GHG emissions
GHG emissions
intensity
Reduction of GHG
emissions
Not applicable
Not applicable
There are no
significant impacts of
activities, products
and services on
biodiversity
There are no
protected or restored
habitats
Not reported
Not applicable
There was no
reduction of
Greenhouse Gas
Emissions
141
Integrated Annual
Report 2023
Metric
Description
Response location
Status
Comment
Metric
Description
Response location
Status
Comment
GRI 306: Waste 2020
GRI 401: Employment 2016
306-1
306-2
306-3
306-4
306-5
Waste generation
and significant waste-
related impacts
Management of
significant waste-
related impacts
Waste generated
Waste, page 94
Waste diverted from
disposal
Waste, page 95
Waste directed to
disposal
Waste, page 94
GRI 308: Supplier Environmental Assessment 2016
308-1
308-2
Suppliers,
page 74
New suppliers that
were screened
using environmental
criteria
Negative
environmental
impacts in the supply
chain and actions
taken
Not applicable
Not applicable
We did not identify
significant impacts
related to waste
generated in our
operations during the
year.
We did not identify
significant impacts
related to waste
generated in our
operations during the
year.
Not applicable
We have not
identified negative
environmental
impacts from our
supply chain.
401-1
401-2
New hires and
employee turnover
New hires and job
turnover, page 63
Benefits provided to
full-time employees
that are not provided
to temporary or part-
time employees
Physical, mental and
financial well-being,
page 72
Physical, mental and
financial well-being,
page 73
401-3
Parental leave
GRI 403: Occupational Health and Safety 2018
403-1
403-2
403-3
403-4
Occupational
health and safety
management system
Physical, mental and
financial well-being,
page 72
Hazard identification,
risk assessment and
incident investigation
Not applicable
There is no hazard
identification, risk
assessment or
incident investigation
Occupational health
services
Physical, mental and
financial well-being,
page 72
Worker participation,
consultation, and
communication on
occupational health
and safety
Physical, mental and
financial well-being,
page 72
142
Integrated Annual
Report 2023
Metric
Description
Response location
Status
Comment
Metric
Description
Response location
Status
Comment
403-5
403-6
403-7
403-8
Worker training on
occupational health
and safety
Not applicable
Promotion of worker
health
Physical, mental and
financial well-being,
page 72
Prevention and
mitigation of
occupational
health and safety
impacts directly
linked by business
relationships
Workers covered
by an occupational
health and safety
management system
Physical, mental and
financial well-being,
page 73
Physical, mental and
financial well-being,
page 72
Physical, mental and
financial well-being,
page 73
403-9
Work-related injuries
403-10
Work-related ill health
GRI 404: Training and Education 2016
404-1
404-2
404-3
Average hours of
training per year, per
employee
Programs for
upgrading employee
skills and transition
assistance programs
Percentage of
employees receiving
regular performance
and career
development reviews
Training and
awareness, page 109
Qualification and
training,
page 67
360º assessment,
page 64
GRI 405: Diversity and Equal Opportunity 2016
405-1
405-2
Diversity of
governance bodies
and employees
Ratio of basic salary
and compensation of
women to men
Diversity and
inclusion, page 70
Compensation and
incentives, page 66
There were no
reported deaths,
work accidents or
occupational illnesses
of employees or non-
employed workers
GRI 406: Non-Discrimination 2016
406-1
Incidents of
discrimination and
corrective actions
taken
Compliance,
page 107
143
Integrated Annual
Report 2023
Metric
Description
Response location
Status
Comment
Metric
Description
Response location
Status
Comment
GRI 407: Freedom of association and collective bargaining 2016
GRI 411: Rights of indigenous peoples 2016
407-1
Operations and
suppliers in which
the right to freedom
of association and
collective bargaining
may be at risk
Freedom of
association and trade
unions, page 72
GRI 408: Child labor 2016
408-1
Operations and
suppliers at
significant risk for
incidents of child
labor
Operações e
fornecedores com
risco significativo de
casos de trabalho
infantil, page 76
GRI 409: Forced or compulsory labor 2016
409-1
Operations and
suppliers at
significant risk for
incidents of forced or
compulsory labor
Operations and
suppliers at
significant risk for
incidents of forced or
compulsory labor, ,
page 76
GRI 410: Security practices 2016
410-1
Security personnel
trained in human
rights policies or
procedures
Training and
awareness, page 109
411-1
Incidents of violations
involving rights of
indigenous peoples
GRI 413: Local Communities 2016
413-1
413-2
Society, pages 76 e
83
Operations with
local community
engagement, impact
assessments,
and development
programs
Operations with
significant actual and
potential negative
impacts on local
communities
GRI 414: Supplier Social Assessment 2016
414-1
New suppliers that
were screened using
social criteria
Suppliers,
page 74
GRI 415: Public Policy 2016
Not applicable
There were no cases
of violation of the
rights of indigenous
peoples
Not applicable
No operations with
significant actual or
potential negative
impacts on local
communities were
identified.
415-1
Political contributions
Not applicable
There were no
political contributions
144
Integrated Annual
Report 2023
Metric
Description
Response location
Status
Comment
Metric
Description
Response location
Status
Comment
GRI 416: Consumer health and safety
GRI 418: Customer Privacy 2016
416-1
416-2
Assessment of
the health and
safety impacts of
product and service
categories
Incidents of
non-compliance
concerning the health
and safety impacts of
products and services
GRI 417: Marketing and Labeling 2016
417-1
417-2
417-3
Requirements for
product and service
information and
labeling
Incidents of
non-compliance
concerning product
and service
information and
labeling
Incidents of
non-compliance
concerning marketing
communications
Customers, page 59
Not applicable
Not applicable
Our products and
services do not
generate direct
impacts on the health
and physical safety of
customers
No cases of non-
compliance were
identified in relation
to impacts on health
and safety caused
by products and
services.
Not applicable
Not applicable
There were no
incidents of non-
compliance relating
to information and
labeling of products
and services
There were no cases
of non-compliance in
relation to marketing
communications
418-1
Substantiated
complaints
concerning breaches
of customer privacy
and losses of
customer data
Total number of
substantiated
complaints regarding
breaches of privacy
and loss of customer
data, page 120
SASB index
We report information applicable to our materiality in accordance with SASB Financial Sector standards, for the
segments: Commercial Banking (CB); Asset Management and Custody Activities (AC); and Investment Banking
and Brokerage (IB).
Code
Metric
Page
Comment
Data security
FN-CB-230a.2
Description of the
approach to identify and
resolve data security risks.
Technology and Information,
page 118
145
Integrated Annual
Report 2023
Code
Metric
Page
Comment
Code
Metric
Page
Comment
Transparent information and fair advice for customers
FN-AC-270a.3
Description of the approach
to inform customers about
products and services
XP Gênio, the suitability tool
that supports investment
decisions, page 59
Diversity and inclusion of employees
FN-AC-330a.1
FN-IB-330a.1
Percentage of representation
of gender and diversity groups
in executive management,
non-executive management,
technical positions and all other
employees.
Diversity and inclusion,
page 70
Employee profile, page 61
Incorporation of environmental, social and governance factors in credit analysis
FN-CB-410a.2
Description of the approach to
embed environmental, social
and governance (ESG) factors to
credit analysis.
Sustainable Business, page
48
Periodic risk monitoring,
page 133
Incorporation of environmental, social and governance factors into investment management and
advisory services
FN-AC-410a.1
Value of assets under
management, by asset
class, that use integration
of environmental, social and
governance (ESG) issues,
thematic sustainability
investment, and screening.
Sustainable Business, page
48
ESG Funds, pages 52 e 53
FN-AC-410a.2
Description of the approach
to incorporate environmental,
social and governance factors
into investment and/or wealth
management processes and
strategies.
Sustainable Business, page
48
ESG Funds, pages 52 e 53
Incorporation of environmental, social and governance factors into investment banking and brokerage activities
FN-IB-410a.1
FN-IB-410a.2
FN-IB-410a.3
Revenues from underwriting,
advisory and securitization
operations that include
environmental, social and
governance (ESG) factors, by
sector.
Number and total value of
investments and loans that
include environmental, social
and governance (ESG) factors,
by sector.
Description of the approach to
include environmental, social
and governance (ESG) factors
in investment banking and
brokerage activities.
Sustainable Business, page
48
Sustainable Business, page
48
ESG Funds, pages 52 e 53
Sustainable Business, pages
48 e 49
Periodic risk monitoring,
page 133
ESG Funds, pages 52 e 53
Financed emissions
FN-AC-410b.3
Percentage of total assets under
management (AUM) included
in the calculation of financed
emissions.
Social, environmental and
climate risk management,
page 134
146
Integrated Annual
Integrated Annual
Report 2023
Report 2023
Code
Metric
Page
Comment
FN-AC-410b.4
FN-CB-410b.4
Business ethics
FN-CB-510a.1
FN-AC-510a.1
FN-IB-510a.1
FN-CB-510a.2
FN-AC-510a.2
FN-IB-510a.2
Description of the methodology
used for calculating financed
emissions
Financed emissions, pages
88 e 90
Total amount of monetary losses
arising from lawsuits associated
with fraud, insider trading,
antitrust, anti-competitive
conduct, market manipulation,
mismanagement or other
related rules or regulations of
the financial sector.
Monetary losses arising
from legal proceedings,
page 114
Description of reporting policies
and procedures.
Reporting channel
page 107
Systemic risk management
FN-CB-550a.2
FN-IB-550a.2
Description of the approach
to incorporate the results
of mandatory and voluntary
stress tests in capital adequacy
planning, long-term business
strategy and other business
activities
GSocial, environmental and
climate risk management, ,
page 135
147
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s
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i
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a
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o
f
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p
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a
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a
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S
Distribution of taxes by sphere of government R$
2022
2023
Distribution of value added (R$/million)
2021
2022
2023
Federal
State
Municipal
Deferred
787,390.00
1,279,840.00
3,770.00
229,817.00
2,308.00
241,261.00
-396,437.00
-555,062.00
Distribution of value added (R$/million)
GRI 201-1
2021
2022
2023
DIRECT ECONOMIC VALUE GENERATED (revenue)
Provision of services (before taxes)
6,801,679
6,508,756
7,153,640
Result of operations with financial instruments
5,997,072
7,527,333
8,572,322
Other net operating revenues (expenses)
324,354
256,944
10,638
Reversal (supplementation) of the allowance for doubtful
accounts
Total Revenues
Inputs acquired from third parties
Operating Costs
-92,560
-94,159
-360,859
13,030,545 14,198,874
15,375,741
Personnel and charges
Direct compensation
Employees' profit sharing
Benefits
Social security charges
Other
Taxes, fees, and contributions
Federal
State
Municipal
Deferred taxes
Compensation on third-parties capital
Financial expenses
Rents
3,283,457
3,943,284
3,728,125
1,416,247
1,597,229
1,371,973
1,362,046
1,640,904
1,680,754
130,187
358,878
16,099
1,773,467
1,128,707
2,516
195,763
487,237
22,151
624,54
787,39
3,77
259,053
229,817
223,694
437,377
14,327
968,347
1,279,840
2,308
241,261
383,191
152,23
135,732
16,498
-396,437
-555,062
416,794
402,303
14,491
641,134
617,478
23,656
3,592,460
3,580,211
3,899,391
3,657,592
4,009,818
4,568,409
Compensation on equity
Communication and data processing
-327,522
-713,022
-771,381
Non-controlling shareholder's interests
3,044
1,161
689
Loss and recovery of asset values
Other administrative expenses
Gross value added
Depreciation and Amortization
Net value added produced
Value added received from transfer
Equity accounting
Total value added received from transfer
-4,377
-
-
Retained earnings (losses) of shareholders
3,589,416
3,579,050
3,898,702
-
-693,163
-620,048
Distribution of value added
8,801,614
8,564,829
9,236,997
9,041,054
8,782,871
9,415,903
-231,730
-205,877
-252,413
8,809,324
8,576,994
9,163,490
-7,710
-7,710
-12,165
-12,165
73,507
73,507
Total value added to be distributed
8,801,614
8,564,829
9,236,997
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Integrated Annual Report 2023
Integrated Annual
Report 2023
Acknowledgments
General coordination
ESG & Social, Environmental and Climate Risk Area of XP Inc.
Fabio Simabukuro Cruz
Amanda Oliveira
Karla Mesquita
Julyo Bezerra
Legal, Compliance and ESG Department
Fabrício Almeida
Compliance Office
Renato Ferrari
Images
Shutterstock
Freepik
Studio Caco Parise
Organization of the process of collecting indicators, updating materiality, writing, graphic design and
Casa Azul Conteúdo e Design para Sustentabilidade
layout
XP Inc.
Av. Chedid Jafet, 75 - Torre Sul - Vila Olímpia, São Paulo
Investor Relations
relacoes.investidores@xpi.com.br
149