The policies or commitments focused on this material topic are the Social, Environmental and Climate Responsibility Policy (PRSAC, in Portuguese) that regulates processes and business in a comprehensive way; however, the Green Bureau will be soon implemented by the Central Bank (for the Agribusiness segment), which will allow rural credit benefits to be granted to customers who fit the Program\u2019s sustainability criteria.<\/p>\n\n\n\n
As regards actions taken to manage this topic and its related impacts, focused on strengthening the offer of rural credit, the Programa Sementes<\/em> (Seeds Program) and Operation 365 were expanded, which encourage the preservation and maintenance of the chemical, physical and biological quality of the soil, thus increasing productivity. Branch network\u2019s employees receive training, almost every month, on sustainable rural credit products to support the offer of financing for the production of biofertilizers.<\/p>\n\n\n\n In the credit granting process, Banrisul prepares a risk assessment report for transactions totaling more than R$10 million including a social, environmental and climate analysis of the company. To improve and speed up the credit granting process, documents are digitalized and input into a social and environmental compliance system for credit proposals.<\/p>\n\n\n\n The social and environmental compliance system also verifies if the company receiving the financing has any restrictions for the granting of rural credit, e.g., conservation units, IBAMA and ICMBio embargoes, and being listed as a company that use forced labor; therefore, this tool is used to address actual negative impacts arising from this topic. Banrisul also relies on a network of associated technician for preparing projects\/budgets.<\/p>\n\n\n\n To track actions taken, the data collected in the system undergo internal and external audits, benchmarking process, and inspections by both the Brazilian Central Bank and the BNDES. Banrisul also hired a consulting company specialized in agribusiness to monitor the internal movements, suggesting process improvements. <\/p>\n\n\n\n These measures aim to comply with the environmental legislations and review the Company\u2019s internal regulations, in order to keep them up to date. Through courses, training programs and verification of the compliance system in all financial departments, Banrisul was able to share and improve the knowledge about social and environmental compliance.<\/p>\n\n\n\n As regards economic impacts, in granting agribusiness credit, the feasibility of the proposals is verified by checking projects and cash flow estimates. To manage positive social impacts, Banrisul does not grant credit to people who have restrictions and makes specific allocations available for small and medium-sized producers. The Bank also offers a crop insurance product called Proagro Mais that covers production costs and funds to maintain the producer’s costs in case of problems with the harvest.<\/p>\n\n\n\n We are always analyzing market trends, proposing projects to develop our reposition products, services, and fees with other product management areas through research, suggestions received through the ombudsman, and benchmarking with the areas. The goal is to increase the granting of rural credit with a sustainable bias.<\/p>\n\n\n\n Focused on creating an investment fund that integrates ESG matters, in 2022, Banrisul held meetings with renowned consulting companies to survey the resources needed to implement this new process. A working group responsible for the “sustainability” topic has been set up in the Company, which has the task of assessing the issue in greater depth and implementing the actions required for the creation\/inclusion of ESG investment products in the portfolio.<\/p>\n\n\n\n\n\n
\n \n Impact <\/th>\n \n Classification (positive or negative) <\/th>\n \n Event (potential or actual) <\/th>\n \n Time frame (short-term or long-term) <\/th>\n \n Systemic or one-time impact <\/th>\n \n Irreversibility (high, medium, low - only for negative impacts) <\/th>\n \n Production chain process or activity that causes impact <\/th>\n \n Resources \/ stakeholder group impacted <\/th>\n <\/tr>\n \n \n Fostering micro and small entrepreneurs <\/td>\n \n Positive <\/td>\n \n Actual <\/td>\n \n Long-term <\/td>\n \n Systemic <\/td>\n \n - <\/td>\n \n The impact will be generated according to the purpose of the credit granted, usually working capital credit, which will enable the enterprise\u2019s maintenance, as well as small improvements and expansions. <\/td>\n \n Shareholders\u00a0and Investors, Community, Customers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n \n \n Increase family income <\/td>\n \n Positive <\/td>\n \n Actual <\/td>\n \n Long-term <\/td>\n \n Systemic <\/td>\n \n - <\/td>\n \n After credit granting, when the credit facility starts to have financial returns to the creditor. <\/td>\n \n Customers, Suppliers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n \n \n Contamination of soil and bodies of water, and impacts on biodiversity and human health <\/td>\n \n Negative <\/td>\n \n Actual <\/td>\n \n Long-term <\/td>\n \n Systemic <\/td>\n \n Medium <\/td>\n \n Indirectly caused by the granting of credit to rural producers, who use agrochemicals in the soil and generate the impact. <\/td>\n \n Community, Environment, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n \n \n Increase in renewable energy consumption <\/td>\n \n Positive <\/td>\n \n Actual <\/td>\n \n Long-term <\/td>\n \n Systemic <\/td>\n \n - <\/td>\n \n The rural producer install solar panels or other type of renewable energy source at his\/her property, contributing to the increase of clean energy consumption and reduction of conventional energy consumption. <\/td>\n \n Environment, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n \n \n Expansion of the agricultural frontier, leading to deforestation or agriculture and livestock activities in forbidden areas <\/td>\n \n Negative <\/td>\n \n Actual <\/td>\n \n Long-term <\/td>\n \n Systemic <\/td>\n \n Medium <\/td>\n \n The rural producer, whether an Individual or Company, who deforests areas without permission to increase the cultivated area, as well as the producer who develops his\/her enterprise in a restricted area, such as indigenous lands, Quilombola areas, conservation units, among others. <\/td>\n \n Community, Environment, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n \n \n Impact on business results for not having ESG-related products in the portfolio yet <\/td>\n \n Negative <\/td>\n \n Potential <\/td>\n \n Short-term <\/td>\n \n One-time <\/td>\n \n High <\/td>\n \n Banrisul Corretora de Valores is aware that it may lose customers for not having ESG-related products in its portfolio yet, as investors, especially younger generations, seek to relate to sustainable or purpose-driven companies. <\/td>\n \n Shareholders\u00a0and Investors, Employees, Community, Customers, Suppliers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n <\/table>\n<\/div>