BANCO DO BRASIL S.A.

Adoption Date: 6 July 2006
Country of Headquarters: Brazil
Region of Headquarters: Latin America
Institutional Reporting Hyperlink: http://www.bb.com.br/docs/pub/siteEsp/uds/dwn/PrincEquadIng.pdf
Current EPFI Reporting Year/Period: 2015
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: 9

Sector
Total
Mining
Infrastructure 6
Oil & Gas
Power 1
Others 2
Sub Total
9

 

Region
Total
Americas 9
Europe, Middle East & Africa
Asia Pacific
Sub Total
9

 

PROJECT FINANCE TRANSACTIONS


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

Totals
0
2
1
Sector
Category A
Category B
Category C
Mining


Infrastructure
1
Oil & Gas


Power
1 1
Others


Region
Category A
Category B
Category C
Americas
2 1
Europe, Middle East & Africa


Asia Pacific


Country Designation
Category A
Category B
Category C
Designated1


Non-Designated
2 1
Independent Review
Category A
Category B
Category C
Yes
2
No

1
Totals
0
2
1

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: http://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: 1

Totals
0
0
1
Sector
Category A
Category B
Category C
Mining


Infrastructure

1
Oil & Gas


Power


Others


Region
Category A
Category B
Category C
Americas

1
Europe, Middle East & Africa


Asia Pacific


Country Designation
Category A
Category B
Category C
Designated1


Non-Designated

1
Independent Review
Category A
Category B
Category C
Yes


No

1
Totals
0
0
1

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: http://www.equator-principles.com/index.php/ep3/designated-countries


IMPLEMENTATION OF THE EQUATOR PRINCIPLES

Banco do Brasil (BB), in February 2005, was the first public bank worldwide to join the group of financial institutions that adhered to the Equator Principles. In July 2006 and June 2013, 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.

Social and environmental issues are addressed by BB in its Credit Specific Policy. Here the Bank sets which should be considered when deciding an operation with credit risk and risks inherent in the business, social and environmental responsibility and the capacity to generate employment and income of the enterprise. 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 process flow in BB starts in the commercial area, which directly serves the customer. Customers are informed about the application of the Equator Principles, and to whether or not to hire an independent environmental consulting company.

Subsequently, the environmental documentation is reviewed by advisers in a credit analysis department and an Environmental Assessment Report is granted by a Credit Committee. The projects assessed by BB 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 socioenvironmental 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, BB 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. That process provides the expertise of employees involved with the application of the Principles. Benefits 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, employees and market indices.