Skip to main content

Innovation and Sustainability: What Major Banks Look For in the Companies They Finance

| Radaz | Blog

The equation is simple:
Innovation + Positive Impact = Investment.

More than ever, large banks and financial institutions are seeking companies that deliver more than just profit. They want solutions to real-world problems — businesses that create measurable environmental and social value, and back it up with data.

But what exactly makes a company “sustainable enough” to attract funding from major players like Itaú?

In this article, you'll discover:

  • How sustainable resource allocation actually works
  • What banks evaluate before financing a company
  • And a real-world example of a Brazilian deep tech that made it onto their radar (literally)

What is sustainable allocation?

When banks raise capital through green bonds or sustainable finance mechanisms, those resources must be directed to projects aligned with ESG criteria — Environmental, Social, and Governance.

This process is called sustainable allocation. And it's not random. The institution must ensure that funds are being applied to initiatives that:

✅ Improve efficiency and reduce environmental impact
✅ Support global sustainability goals
✅ Offer traceability and verifiable results
✅ Demonstrate strong governance and long-term vision

In other words: it's not about looking sustainable. It's about proving it, scaling it, and generating measurable impact.

What are banks looking for?

Allocation reports released by institutions like Itaú, Bradesco, or BNDES reveal a clear pattern: they favor companies that combine technology, innovation, and purpose.

They prioritize businesses operating in areas like:

  • Regenerative agriculture
  • Clean energy
  • Smart mobility
  • Land use and conservation
  • Resilient infrastructure
  • Environmental monitoring

And even more importantly: they want solutions to complex problems — especially in countries like Brazil, where land, climate, food production and conservation intersect daily.

A concrete example: from the lab to Itaú’s sustainability report

Among the highlights of Itaú’s 2024 Sustainable Allocation Report is a standout Brazilian startup developing advanced radar systems for remote sensing of large areas — Radaz, the company behind this blog.

Its technology enables the real-time monitoring of geotechnical movements, changes in land use, agricultural productivity, and risk-prone zones — all through precise, reliable data that supports smarter, more sustainable decision-making. 

Radaz was featured on page 14 of the report as an example of an innovative project with strong positive impact, particularly due to its evidence-based approach to territory monitoring and risk reduction.

What does this mean?

More than institutional recognition, being featured in a report like this proves that Brazilian technology can lead real-world transformation — through innovation, science, and purpose.

And for other companies, it’s a strategic wake-up call:

Sustainability is no longer a differentiator. It’s a requirement.

Those who know how to leverage data, technology, and impact as growth assets will increasingly open doors — including in the financial system.

Want to see how this kind of technology works up close?

Follow the lead of institutions like Itaú. Discover what Radaz can do for your business.