Reporting – Banco do Brasil (2020)

Adoption Date:6 July 2006
Country of Headquarters:Brazil
Region of Headquarters:Latin America
Institutional Reporting Hyperlink:Annual Report 2020
Current EPFI Reporting Year/Period:2020
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: 19

SectorTotal
Sub Total19
Mining1
Infrastructure7
Oil & Gas0
Power5
Others6

RegionTotal
Sub Total19
Americas19
Europe, Middle East & Africa
Asia Pacific

PROJECT FINANCE TRANSACTIONS

Total number that reached financial close in the reporting period: 3

Totals030
Totals030
SectorCategory ACategory BCategory C
Mining
Infrastructure
Oil & Gas
Power3
Others
RegionCategory ACategory BCategory C
Americas3
Europe, Middle East & Africa
Asia Pacific
Country DesignationCategory ACategory BCategory C
Designated1
Non-Designated3
Independent ReviewCategory ACategory BCategory C
Yes3
No

1Designated 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. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

PROJECT NAME REPORTING FOR PROJECT FINANCE TRANSACTIONS

3 projects were not disclosed as per the disclosure conditions specified in Annex B of the Equator Principles

PROJECT-RELATED CORPORATE LOANS

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

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 at https://api.mziq.com/mzfilemanager/v2/d/5760dff3-15e1-4962-9e81-322a0b3d0bbd/22f3f814-cc25-4b66-d8ef-2c17811ade81?origin=2, or the sustainability page, available at https://ri.bb.com.br/en/corporate-governance-and-sustainability/sustainability/.”