Banco do Brasil (2020)

Adoption Date: 06 Jul 2006
Country of Headquarters: Brazil
Region of Headquarters: Latin America
Current EPFI Reporting Year/Period: 2020
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: 19

Sector
Mining 1
Infrastructure 7
Oil & Gas
Power 5
Others 6
Sub-Total 19
Region
Americas 19
Europe, Middle East & Africa
Asia Pacific
Sub-Total 19

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 Country4
Non Designated Country 3
Independent Review
Yes 3
No
Totals 3
1

Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.

2

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.

3

Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.

4

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, June 2013 and November 2019, 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, the Bank may use the suspension of the transfer of funds and the early maturity of the debt, if the borrower fails to comply with the aforementioned clauses.

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.

Benefits of application of the Equator Principles 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 2020, available here or the sustainability page, available here.