Financial Sector

31/05/2015
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Financing criteria and practices from public and private financial institutions that take into account the impacts caused by a project on climate change are critical to encourage a scenario where carbon emissions are reduced in different sectors and economic activities, reducing the climate impact from company operations and projects, and fostering a low-carbon economy.

For such, decision-making processes in financial institutions should be aligned with the goals of the United Nations Framework Convention on Climate Change, the Kyoto Protocol, the Bali Action Plan, the Copenhagen Summit, as well as protocols such as the Equator Principles, the Global Compact and the Green Protocol. 

In this context, establishing a legal framework is critical for financial institutions to engage in the creation of an environment where investments focus on activities of reduced carbon intensity activities and to offer security to organizations willing to get financing to enter the low-carbon economy in a proactive way.

Besides, financial institutions, similar to other organizations, can adopt internal mitigation policies, mapping their greenhouse gas emissions and adopting management practices that enable direct reduction, as well as cutting emissions from their suppliers and employees.

As sustainability is incorporated into the Brazilian economic development model, through an integrated view of corporate and public policies, it will be possible to contribute to the global effort of reducing the effects of climate change on human well-being and natural ecosystems.

Given this context, it makes sense to include, from 2011 on, the financial sector as one of the thematic areas in the Companies for the Climate platform.