Second-Party Opinion Download

Sustainalytics is of the opinion that the Banco do Brasil Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Environmentally Sustainable Management of Living Natural Resources and Land; Renewable Energy; Energy Efficiency; Green Buildings; Clean Transportation; Sustainable Water and Solid Wastewater Management; Affordable Housing; MSME Financing and Microfinance; Socioeconomic Advancement and Empowerment; Access to Essential Services – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 1, 3, 7, 8, 9, 10, 11, 12, 15.   

PROJECT EVALUATION AND SELECTION

The project evaluation and selection process will be managed by Banco do Brasil’s Finance Division, ESG unit and other strategic units, as needed. Banco do Brasil has adopted internal environmental and social risk processes that are informed by Banco do Brasil’s Environmental and Social Risk Management (ESMS) practices. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

Banco do Brasil’s Finance Division will be responsible for the overall management and tracking of the proceeds. Banco do Brasil intends to allocate all proceeds within 36 months of each issuance. Pending full allocation, unallocated proceeds will be temporarily held in Banco do Brasil’s cash account or high liquidity and low risk instruments, such as government bonds. This is in line with market practice. 

REPORTING

Banco do Brasil intends to report on the allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include metrics such as the average loan amount, number of beneficiaries, disbursement amount for each eligible category and the amount of unallocated proceeds. Banco do Brasil intends to report on relevant impact metrics. Sustainalytics considers the allocation and impact reporting commitments as aligned with market practice.