Social-environmental Risk Management

Social-environmental Risk Management

Banco ABC Brasil recognizes the importance of the responsibility to evaluate the counterparty, in order to mitigate possible risks related to sustainability.

Therefore, in order to establish a culture of social and environmental risk management and corporate governance, Banco ABC Brasil includes a social-environmental risk analysis in its businesses strategies, through the implementation of its Social-environmental Responsibility Policy.

Social-environmental risk is a transversal risk. The failure to anticipate and manage this risk could have consequences for the institution as a whole, including credit risk, legal risk, reputational risk, and market risk. Such impacts may require compensation for damages or payment of fines, delay or interrupt ongoing projects, or even affect the payment capacity of clients.

Social-environmental Risk Analysis Process

Banco ABC Brasil has a social-environmental risk area, responsible for implementing the Social-environmental Responsibility Policy and establishing guidelines and methodologies for the assessment of social-environmental risks.

The area is also involved in the onboarding of commercial managers and supports the Legal team in the elaboration of socio-environmental clauses since all our clients have these clauses in their contracts. In addition, it prepares content and conducts training for the areas involved in the process.

The details of the guidelines and processes adopted for the management of social-environmental risk are described in the ESG Presentation.

Businesses Appreciation

Banco ABC Brasil is committed, through the evaluation of social-environmental risks, to enhance the value of its businesses, by:

  • Identifying potential social and environmental risks that clients and operations may compromise;
  • Minimization of operational impacts;
  • Generating economic-financial value by promoting and maintaining the sustainable development of society;
  • Providing evidence of due diligence.