Banco de Brasil Adopts Equator Principles

Brasilia - 03 March 2005

Bank meets international criteria established for project analysis processes utilized for investments equal or more than US$50 million.

Banco do Brasil is the first official bank to join Brazilian financial institutions that meet the Equator Principles. Criteria established by the International Finance Corporation (IFC), an arm of the World Bank, were incorporated into analysis procedures for investment projects with a value equal or more than US$50 million.

The Equator Principles are a set of policies and procedures that address sustainability issues such as: protection of natural habitats and indigenous populations, dam security, cultural ownership, international water projects, waterway projects and occupational health and safety.

“BB has always had its own guidelines with regard to these issues, particularly when such large sums are involved. The Equator Principles, however, represent an opportunity to reinforce our analysis process and stimulate our day-to-day socio-environmental responsibility that contributes to the sustainability of companies and our society," affirms Vice-President of Credit, Finance and Global Risk, Adézio de Almeida Lima.

“Socio-environmental responsibility is a focus at the Banco do Brasil. Particularly in this past year, we have been consolidating, systematizing and expanding our processes in order to steadily incorporate it into our products and services. Certainly credit is at the top of this list,” affirms Vice-President of Personnel Management and Socio-Environmental Responsibility, Luiz Oswaldo S. Moreira de Souza.

Beyond the Equator Principles

In addition to compliance with the Equator Principles, BB is adjusting the analysis process for assessing credit risk by improving its questions addressing socio-environmental responsibility. These changes will begin to be applied to companies with earnings above R$100 million and investment projects involving credit equal or superior to R$10 million.

“Today the socio-environmental dimension is a central variable to development programs. Through these measures, we are sending a message to the market and to society that our resource allocation strategy consistently demonstrates an effective alignment of BB’s credit policies with social and environmental principles“, adds Vice-President Adézio de Almeida Lima.