São Paulo – Brazil’s state-controlled development bank BNDES approved the provision of a financing requiring a public commitment to run inventory of greenhouse gas emissions. According to a statement released by the bank on Monday (11), this is unheard of.
A BRL 32 million (USD 7 million) credit was granted to Cipalam Group, a flat-rolled steel manufacturer based in Ipatinga, Minas Gerais. According to BNDES, the greenhouse gas inventory allows for tracking the sources of emissions in an effort to reduce them. Cipalam hired a consulting firm to do the job.
The financing was provided with the program BNDES Crédito ASG, which offers more attractive financial conditions for clients that prove improvement of indicators and effective practices in the environmental, social and governance area.
The provision of credit requires that the company present an ISO 14001 environmental certificate as well as three other compensations: creating and publishing in the company’s website a socioenvironmental responsibility policy, incorporating a primary focus on education and diversity in its customers’ social policy and presenting a sustainability report.
Translated by Guilherme Miranda
