Socio-environmental Responsibility Policy
In line with its ESG agenda, Banco ABC Brasil has a Socio-environmental Responsibility Policy in which incidents related to socio-environmental damage, human rights violations, and illegal practices are captured in the risk analysis process when granting credit. In summary, the analysis process is conducted as follows:
- The scope of the socio-environmental risk assessment in credit granting occurs for: i) Middle, Corporate, and Large Corporate clients; ii) Project Finance operations; iii) Real Estate Guarantees; and iv) Special Purpose Vehicles at the project level (Real Estate);
- The clients fill out the socio-environmental questionnaire sent by Banco ABC Brasil and answer questions made by the Sales department;
- The Credit department, as part of a broader analysis of each client and operation, specifically deliberates on the socio-environmental aspects of the client, relying on multidisciplinary support from the following departments: i) Socio-Environmental Risk, providing technical support to the Credit area on its analyses; ii) Compliance, researching sources of information that may influence the ESG research; and iii) Legal, providing legal support if needed in the analysis;
- The result of this work is presented to the Credit Committee in the operation analysis, including a socio-environmental risk classification, based on the client’s sector of activity, the product offered, among others; and
- This analysis is updated, at least, every 12 months. If there is no ongoing risk, the questionnaire is updated every 3 years.
The contracts for loans, guarantees, and other credit exposures also include standard clauses that hold the borrowers accountable and become grounds for early maturity if there are socio-environmental irregularities. The mentioned policy also establishes an exclusion list, in which Banco ABC Brasil does not deal with companies that adopt the following practices:
- Production or commercialization of products or activities considered illegal or banned nationally and internationally;
- Production or activities that involve harmful or exploitative forms of child or forced labor;
- Trade of animals/plants under threat of extinction;
- Predatory fishing;
- Sexual exploitation; and
- Depredation of cultural or environmental heritage.
Additionally, and with strong adherence to the Environmental Pillar, is the use of the Agrotools tool in order to monitor moral, performance, credit, and reputational risks linked to agribusiness. Thus, the portfolio used as collateral for funding is entirely checked through this functionality, bringing more protection to the operations of one of the main sectors in which Banco ABC Brasil operates.
Click here to view the Socio-environmental Responsibility Policy (Portuguese only).
The headquarter of Banco ABC Brasil is located in the city of São Paulo in a building with LEED Gold certification, attesting the adoption of sustainable construction practices. The LEED (Leadership in Energy and Environmental Design) Certification is awarded by the Green Building Council and aims to encourage the adoption of sustainable construction practices by assigning ratings to green buildings, which are classified through the following levels: Certified, Silver, Gold, and Platinum. To be granted a rating, the building is evaluated taking into consideration issues such as rational use of water, energy efficiency, selection of the construction materials, indoor environmental quality, and innovative strategies.
Additionally, and as part of the efforts to minimize the environmental impacts of its activities, Banco ABC Brasil created a Working Group (WG) dedicated to the topic to explore opportunities for improvements related to the emission of greenhouse gases (GHG), generation and disposal of waste, optimization of natural resources, and relations with suppliers.
“Energia Verde” Stamp (UNICA/CCEE/Abraceel)
In May 2021, the energy trading controlled by Banco ABC Brasil received the “Energia Verde” Stamp, a green energy badge of the Bioelectricity Certification Program, which was created by the Brazilian Sugarcane Industry Association (UNICA) in partnership with the Chamber of Electric Energy Commercialization (CCEE) and the Brazilian Energy Traders Association (Abraceel).
The program aims to encourage and expand the participation of renewable sources derived from the production of sugar and ethanol in the Brazilian energy matrix, being the “Energia Verde” Stamp applicable to award producers, traders, and consumers.
In the case of energy traders, those that acquire renewable energy from producers with a bioelectricity certificate are eligible for the program, being the participation also conditioned to full compliance with the guidelines and fulfillment of the established criteria.