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Santander Bank involved in Amazon rainforest exploitation in Brazil

Santander Brazil Outlines Application of Global Policies and Local Procedures in Amazon Operations

Santander banks involved in deforestation of Brazilian Amazon rainforest
Santander banks involved in deforestation of Brazilian Amazon rainforest

Santander Bank involved in Amazon rainforest exploitation in Brazil

In a bid to safeguard the sustainable development of the Amazon rainforest and other biomes in Brazil, Santander Brasil has embedded global policies and local procedures in its activities. The bank is committed to ensuring that its financing activities do not contribute to deforestation, a longstanding issue in Brazil caused by illegal ranching, logging, agriculture, and other activities.

To achieve this, Santander Brasil verifies land ownership or lease before financing farmers and ranchers, and monitors all properties financed or held as collateral for deforestation alerts. The bank screens loan applications to ensure that properties do not overlap with officially recognized indigenous territories, conservation units, and forests classified by the government as Type B.

Santander Brasil's efforts extend beyond its lending practices. The bank has announced the creation of Biomas, a forest company aimed at protecting and restoring four million hectares in Brazil over the next 20 years, with an expected reduction of around 900 million tons of CO2e from the atmosphere.

Moreover, Santander Brasil engages with over a dozen beef processing customers to tackle illegal deforestation linked to their supply chains by 2025. The bank has issued two green CRAs in 2023: one for agroforestry and non-timber forest product cooperatives and eco-businesses across Brazil's five biomes, and another for deforestation-free soy production in the Cerrado, following IFACC socio-environmental criteria.

Santander Brasil is a signatory of the IFACC initiative, launched in 2021, which aims to accelerate financing for sustainable production in the Amazon, Cerrado, and Chaco regions. The bank also conducts annual ESG reviews of more than 2,000 corporate and retail customers, including beef processors, soy traders, and logging companies.

The bank's efforts are not limited to these initiatives. Santander Brasil has an E&S risk department in São Paulo, staffed by expert analysts, and it complies with the sector protocol SARB 026/2023, which sets standards for managing the risk of illegal deforestation in the bovine meat chain. All major banks in Brazil have agreed to comply with this protocol.

Furthermore, Santander Brasil uses an E&S rating which is taken into account in the credit rating of corporate customers, considering not only if our customers are legally compliant but also the existence of good practices. The bank has been actively engaging with its meatpacking customers to comply with the Febraban protocol and has verified 100% of eligible customers for protocol compliance by December 2023.

The Amazon Journey Platform, launched in 2022, aims to promote the innovation and entrepreneurship ecosystem in the Amazon, focusing on bioeconomy solutions to support forest conservation. The Platform has trained 2,071 people, created and structured 141 startups, and classified and accelerated 74 startups by the end of 2024.

These initiatives demonstrate Santander Brasil's dedication to combating deforestation in the Amazon and other biomes in Brazil, aligning with global efforts to mitigate climate change and preserve biodiversity.

  1. Santander Brasil extends its environmental concern beyond lending practices, launching Biomas, a forest company set to protect and restore four million hectares in Brazil over the next 20 years, aiming to reduce approximately 900 million tons of CO2e from the atmosphere.
  2. In addition to their engagement with beef processing customers, Santander Brasil also issues green CRAs, such as one for agroforestry and non-timber forest product cooperatives and eco-businesses across Brazil's five biomes in 2023.
  3. Recognizing the importance of technology in conservation efforts, Santander Brasil launched the Amazon Journey Platform in 2022, promoting innovation and entrepreneurship in the Amazon, with a focus on bioeconomy solutions to support forest conservation.

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