CAIXA Econômica Federal (2020)

Adoption Date: 18 Nov 2009
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: 10

Sector
Mining
Infrastructure 10
Oil & Gas
Power
Others
Sub-Total 10
Region
Americas 10
Europe, Middle East & Africa
Asia Pacific
Sub-Total 10

Project Finance Transactions

Total number that reached Financial Close in the reporting period: 1

Equator Principles Category A1 B2 C3
Sector
Mining
Infrastructure 1
Oil & Gas
Power
Others
Region
Americas 1
Europe, Middle East & Africa
Asia Pacific
Country Designation
Designated Country4
Non Designated Country 1
Independent Review
Yes
No 1
Totals 1
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 & Acquisition for Project Finance

Not applicable for this period.

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 (& Project-Related Refinance & Acquisition Finance for Project Finance)

No. Project Name Sector Country(s) Year of Financial Close
1 Atibaia Sanitation System Infrastructure Brazil 2020

Project-Related Corporate Loans

Total number that reached Financial Close in the reporting period: 0

Project-Related Refinance & Acquisition for Project-Related Corporate Loans

Not applicable for this period.

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

CAIXA foresees, within it’s risk management structure, the identification, classification, assessment, monitoring, mitigation and control of socio-environmental risk in the activities and operations of the bank and its subsidiaries; the application of specific guidelines for sensitive sectors and segments that represent the greatest potential for negative socio-environmental impact; the application of the guidelines established by the Equator Principles and other protocols, pacts and national and international conventions, when applicable, in asset management, corporate operations and in customer and project risk analysis; the maintenance of data records relating to actual losses due to social and environmental damage; and the assessment of legal, regulatory and market changes.

CAIXA’s social, environmental and climate risk management is managed by the Vice-Presidency of Risks, the area responsible for that topic also has the bank’s credit risk mandate. It is in this unit that models, guidelines and other socio-environmental requirements applicable to the entire bank are developed, as well as being responsible for the Equator Principles, to which CAIXA has been a signatory since 2009. Thus, the unit adopts social and environmental criteria referenced by the International Finance Corporation’s (IFC) Performance Standards on Social and Environmental Sustainability and in the World Bank Group’s Environment, Health and Safety Guidelines in financing projects under the Equator Principles.

CAIXA requires, in the analysis of projects, an assessment of social and environmental compliance carried out by an independent social and environmental consultancy in case high risk is identified (Category A) and, when necessary, in medium risk projects (Category B). This assessment addresses the legal requirements applicable to environmental management, health and safety management and occupational medicine, the conditions of environmental licenses and the implementation of the Basic Environmental Plan for compensation and mitigation of social and environmental impacts, as well as other criteria set out in the Equator Principles. For projects with high magnitude social and environmental impacts, social and environmental monitoring reports are also required periodically, which covers the implementation and operation of the project during the term of the financing. With the amendment to version IV of the Equator Principles, the socio-environmental risk area was responsible for adapting all the norms related to the subject, as well as communicating to all the business areas involved. In addition, it carried out training aimed at the credit risk teams, responsible for creating the models and methodologies.

Two socio-environmental risk consultants are currently working on the analysis and monitoring of projects that comply with the Equator Principles, whose review of the analyzes and monitoring carried out is carried out in pairs for greater diligence and critical assessment. Once validated by the team, all technical analyzes go through two higher instances until it is finally approved.

In addition, the team periodically reviews internal rules, always seeking to improve social and environmental risk management and ensure that projects are properly evaluated and monitored by the bank. The business areas are responsible for framing the operations, forwarding them to the social, environmental and climate risk area, in addition to carrying out all the necessary negotiations for Due Diligence, hiring consultants and dealings with the entrepreneur. It is also up to them to enter the contractual obligations to comply with Principle 8. In addition, they are responsible for monitoring the contract throughout the life of the project, as well as for dealings with periodic social and environmental monitoring. Annually, the socio-environmental risk area reports to higher authorities on the Equator Principles, both to the Bank’s Risk Superintendence to which it is linked, and to the General Secretariat, responsible for institutional relations with external entities. It is also responsible for the annual report on the Equator Principles with the EP Secretariat and on the Bank’s Integrated Report. The bank has specific rules and guidelines for the granting of responsible credit, using environmental and social criteria for the approval of clients and projects, to ensure that they are in accordance with CAIXA’s Institutional Policy. This concern also extends to the bank’s portfolio, with social and environmental requirements in other areas, such as rural credit, sanitation, infrastructure and housing. The company has specific rules to regulate its Institutional Policy, which delimits the implementation of socio-environmental responsibility guidelines. Among them, it is highlighted that in the management of social and environmental risk, the application of the guidelines established by the Equator Principles and other protocols, pacts and national and international conventions, when applicable, is foreseen in the management of assets (own and third parties), in the corporate operations and risk analysis of clients and projects, demonstrating the Bank’s commitment to the Equator Principles.

Further information on CAIXA’s social and environmental responsibility and on its social, environmental and climate risk management can be found in its Integrated Report here.