The Inter-American Development Bank (IDB) and Banco do Brasil established a partnership for green financing and announced on Tuesday, the 26th, the first phase of a technical and financial cooperation in three areas: human rights and socio-environmental risk; green finance; and measuring the economic, social, and environmental impacts of credit. This initiative seeks to mobilize private investment in mitigation actions and low-carbon and sustainable business models and is aligned with IDB’s mandate and Banco do Brasil’s business strategy and its Sustainability Plan – Agenda 30 BB, in its challenge to develop financial solutions and business models that promote the transition to a green, sustainable, and inclusive economy.
Based on methodology developed by the Brazilian Federation of Banks (FEBRABAN), which deals with the measurement and identification of resources allocated to the Green Economy, in 2017, BB’s green business portfolio presented a balance of R$ 197 billion. This portfolio makes up the credit operations related to investments and loans for renewable energies, energy efficiency, sustainable construction, sustainable transport, sustainable tourism, water, fishery, forestry, sustainable agriculture, and waste management. Social areas such as education, health, and local and regional development are also part of this portfolio.
“We are seizing opportunities in reforestation, urban infrastructure, mobility, decentralized energy generation, energy efficiency, and sustainable production chains in agricultural and livestock activities. Our Socio-Environmental Responsibility Policy (PRSA) expects companies, governments, and society to work together in defining initiatives aimed at reducing risks and taking advantage of opportunities related to socio-environmental issues,” explains Carlos Netto, Director of Strategy and Organization at Banco do Brasil.
IDB seeks to support the private sector of Latin American and Caribbean countries by financing sustainable companies and projects to maximize the social and environmental development of these regions. “Green finance represents a business opportunity with multiple benefits, from revenue generation to the more efficient use of natural resources. In this regard, banks play a key role in circulating this agenda because their actions help to create the environment that favors the necessary long-term investments. We believe that this partnership with Banco do Brasil corresponds to an integral part of the need for green investment in Brazil,” said Maria Netto, Financial Markets Specialist at IDB.
Starting in 2017, Banco do Brasil’s Sustainability Plan was renamed Agenda 30 BB, reflecting the propositions of the 2030 global Agenda and in line with the Sustainable Development Goals (SDGs) set by the United Nations (UN) in 2015. The Plan contributes directly towards deepening the commitment and incorporation of socio-environmental variables in BB’s management and business, playing a key role in improving results and therefore producing a better performance in Capital Markets indices such as the Corporate Sustainability Index (ISE) of B3, and the Dow Jones Sustainability Index (DJSI) of the New York Stock Exchange.
The Inter-American Development Bank’s mission is to improve lives. Founded in 1959, the IDB is one of the leading sources of long-term financing for the economic, social, and institutional development of Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and offers advice on policies, technical assistance, and training to the public and private clients throughout the region.