BC wants transparency from banks on social and environmental risks, says expert

BC wants transparency from banks on social and environmental risks, says expert

As of Friday (30), banks will have to adapt to the new rules defined by the Central Bank and must consider social, environmental and climate risks when making decisions about financing or investments with their customers.

The obligation begins to take effect in 2023, with the submission of reports that show how banks are dealing with the rules in force.

In an interview with CNN Radio the leading partner for the Financial Services Market at EY Brazil, Rafael Schur, explained that banks, as companies, are not major emitters of greenhouse gases, or environmental issues.

“But they are investors in companies and corporations that have an impact on the environment, so they have an impact within the global context.”

The Central Bank then prepared the resolution, which seeks “from 2023 onwards, to improve the definition of social and environmental risk, including the concept in the banks’ management agenda.”

“It will be new information, made available on the websites and for the regulator, for possible risks regarding the stock market and opportunities for banks to act in favor of a more sustainable economy”, he added.

Schur explains that financing by institutions is an incentive for them “to be able to work together with counterparties to understand ways and actions that could make these loans and investments generate less environmental impact.”

“It is not a case of stopping credit for companies, which are important engines within the economy, but if you want to provide transparency and when having the information, these two parties seek alternatives to indicate reductions in these effects”, he reinforced.

The specialist believes that the measure adopted by the Brazilian Central Bank is “vanguard”.

*With production by Isabel Campos

Source: CNN Brasil