Reporting – Banco de la República Oriental del Uruguay (2019)

Adoption Date:3 January 2008
Country of Headquarters:Uruguay
Region of Headquarters:Latin America
Institutional Reporting Hyperlink:https://www.portal.brou.com.uy/web/guest/institucional/rse/principios-de-ecuador/traduccion

Current EPFI Reporting Year/Period:2019
EPFI Reporting in Compliance:Yes

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 above.

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: 0

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 0

IMPLEMENTATION OF THE EQUATOR PRINCIPLES

BROU and EP ADOPTION

BROU adhered to the Equator Principles in 2008, becoming one of the first banks to do so in Latin America, and the first one in Uruguay, being the only one in the country to this day.

Financial institutions that adopt these principles undertake to assess and to take into consideration the social and environmental risks of the Projects that require financing and which total investment is over USD 10,000,000, granting loans only to those proposals that can prove the appropiate managcountriesement of said risks, strictly complying with the provisions of the Equator Principles.
With the implementation of socially responsible Projects, this method of business benefits society in general, and companies in particular, by reducing their operational risks, increasing their competitivity and facilitating access to international markets.

For BROU, this ensures that the funds loaned are directed to environmentally and socially sustainable ventures, which is consistent with its development bank profile.

This way, BROU is part of the group of main international banks that adhere to these Principles, and are responsible for over 70% of the financing of investment Projects located in developing. In 2014 BROU has continued to work on its goal to achieve higher levels of training in the different operational levels. Decisions have been made in this sense, allowing to widen the access to information and inquiries. Particularly, and regarding the environmental and social risk area, we highlight the affiliation of BROU to UNEP FI, an institution that promotes the development of the United Nations Environment Programme for Financial Institutions and seeks to provide technical support for the achievement of sustainable financial operations.-

TRAINING

By the end of 2014, and upon IADB’s funding project to finance investment projects requested to BROU, the adaptation of the System of Analysis of Environmental and Social Risk was carried out, so as to make it also compatible with the Environmental Safeguard of said multilateral credit Institution.

In order to accomplish this goal, the IADB appointed an internationally recognized and independent environmental advisor, who, along with our technical team, developed the new document that defines the current System of Analysis of Environmental and Social Risk, to be applied in the financial operations carried out at BROU, included in said document due to its characteristics.

At the end of 2015, BROU obtained high positive evaluation as a consequence of the first review by the IADB on the implementation of the management system developed.
In 2016, and within the continuous training framework, members of the technical team finishe the Master in Environmental Management and Audits, taught by the European University of the Atlantic through the Ibero-American University Foundation (FUNIBER) platform.-
In 2018 BROU subscribed a agreement with IADB in order to update the environmental evaluations and standardize the procedures.

TECHNICAL TEAM

BROU has a technical team of specialists in the assessment of environmental and social risk who, besides their specific discipline, count with the support of professional advisors in several fields, both belonging to the functional frameworks of the Institution as well as independent professionals hired when necessary.

The team has full technical independence, develops an ongoing professional training plan and is tightly linked to organisations and/or institutions involved in environmental and social issues, such as national and international universities, environmental government agencies, local governments, NGOs, etc.. In 2019, following organizational changes, the technical team became dependent on the Infraestructure Area and therefore acquired hierarchical independence from the institutions’s administrative and business area. At the same time, an Environmental Advisor was incorporated to the technical staff, in order to improve the office performance.

Further information on Banco de la República Oriental del Uruguay (BROU)’s EP implementation is provided at: https://www.portal.brou.com.uy/web/guest/institucional/rse/principios-de-ecuador/traduccion.