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Banco do Brasil (2019)
Adoption Date: | 06 Jul 2006 |
Country of Headquarters: | Brazil |
Region of Headquarters: | Latin America |
Current EPFI Reporting Year/Period: | 2019 |
Institutional Reporting: | Link to Report |
Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association website.
Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.
Project Finance Advisory Services
Total number mandated in the reporting period: 0
Project Finance Transactions
Total number that reached Financial Close in the reporting period: 3
Equator Principles Category | A1 | B2 | C3 |
---|---|---|---|
Sector | |||
Mining | |||
Infrastructure | |||
Oil & Gas | |||
Power | 3 | ||
Others | |||
Region | |||
Americas | 3 | ||
Europe, Middle East & Africa | |||
Asia Pacific | |||
Country Designation | |||
Designated Country 4 | |||
Non Designated Country | 3 | ||
Both | |||
Independent Review | |||
Yes | 3 | ||
No | |||
Totals | 3 |
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. See list of Designated Countries.
Project-related Refinance & Project-related Acquisition For Project Finance
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Project Name Reporting For Project Finance (And Project-related Refinance & Project-related Acquisition Finance For Project Finance)
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 3
Under EP4, project name reporting is required for Project Finance transactions that have reached Financial Close and encouraged for Project-Related Corporate Loans that have reached Financial Close.
Project-Related Corporate Loans
Total number that reached Financial Close in the reporting period: 0
Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Implementation of the Equator Principles
Banco do Brasil was the first public bank worldwide to join the group of financial institutions that adhered to the Equator Principles. In July 2006 and June 2013, it formalized its readmission to the pact, in updated versions after a long process of consultations and discussions between banks, customers and civil society organizations.
Socio-environmental issues are addressed by Banco do Brasil in its Credit Specific Policy. In it, the Bank defines that the socio-environmental responsibility and the capacity to generate employment and income of the enterprise should be considered in the decision on operations with credit risk. In addition, the policy emphasizes that the Bank does not assume credit risk with a client that is responsible for intentional damage to the environment, to submit workers to degrading forms of labor or keep them in conditions akin to slave labor, in which sexual exploitation of minors or child labor is practiced. The materialization of this orientation is given by the inclusion in all Credit Instruments of specific clauses with the commitment of the borrower not to use slave labor and child labor and also not to discriminate by race or gender. In addition, provision is made for the suspension of the transfer of resources and the early maturity of the debt, in case the borrower breaches said clauses.
The flow of the credit process in Banco do Brasil starts in the commercial area, which directly serves the customer. Clients who comply with the Equator Principles are oriented towards their application and to whether or not to hire an independent socio-environmental consulting.
Subsequently, the environmental documentation is analyzed by advisers in a credit analysis department where it is and then made Socio-environmental Assessment Report is granted by a Credit Committee.
The projects assessed by Banco do Brasil are classified in a socio-environmental risk matrix that identifies relevant impacts and risks and management measures. Category A covers projects in which the potential risk or adverse socio-environmental impact is significant, multiple, irreversible or without a precedent. Category B, in turn, covers the projects that have the potential of risks and adverse socio-environmental impacts limited, in a lower number, extensively reversible and immediately controllable by using mitigation measures. Category C covers initiatives in which minimal or no adverse environmental and social risks and/or impacts. In all requests for financing categorized as A or B, Banco do Brasil requires the customer to develop or maintain an environmental and social management system. Furthermore, in high-risk cases it may be necessary to ask the customer to provide additional evaluation documentation, with a specific due diligence on human rights.
That process provides the expertise of employees involved with the application of the Principles. Benefits include better control and monitoring of projects, the greater range of risks vision, the ability to better mitigate environmental risks, reputation, credit, legal and positive approach to shareholders, customers and employees.
For more information on the application of the Equator Principles to Banco do Brasil, see the Annual Report 2019, available here, or the sustainability page available here.