Second-Party Opinion Download

Sustainalytics is of the opinion that the BRK Ambiental Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds, namely Sustainable Water and Wastewater Management, and Affordable Basic Infrastructure, are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 9 and 14. 

PROJECT EVALUATION / SELECTION

BRK has established an ESG Committee to oversee ESG-related matters, including the disbursement of bond proceeds for refinancing the bridge loan for the grant concession for a project to develop and provide water and sewage services. The ESG Committee will work in consultancy with BRK’s Risk Commission to evaluate the associated risks and action plans for the project. Sustainalytics considers the risk management system to be adequate and the process for project implementation to be in line with market practice.  

MANAGEMENT OF PROCEEDS

BRK Ambiental’s ESG Committee will ensure the allocation of bond proceeds goes towards the refinancing of a bridge loan and a grant payment related to the concession won for the eligible project upon issuance. This is in line with market practice. 

REPORTING

BRK Ambiental intends to report on the allocation of proceeds on its website on an annual basis. This information will be published in its Sustainability Report as well as financial reports. In addition, BRK Ambiental is committed to reporting on relevant impact metrics, such as volume of water treated, and population benefitted. Sustainalytics views BRK Ambiental’s allocation and impact reporting as aligned with market practice.