BSBIOS has new financing from Santander linked to ESG goals

Santander Brasil granted a new financing of R$ 40 million linked to ESG commitments to BSBIOS. This is the second operation of this nature carried out between Santander and BSBIOS this year – the first, in July, was for R$ 60 million, which added to the new amount totaled R$ 100 million. The resources are being invested in the improvement of the operations of the BSBIOS. Among the counterparties agreed for the transaction is the expansion of the used cooking oil collection social project, in Passo Fundo, in Rio Grande do Sul, and the implementation of the 2SC Sustainable Provider Credit Program, with sustainable development of the supply chain and bonuses carbon credit.

O Santander is a pioneer in the loan market tied to sustainability goals in Brazil. The purpose of the bank is to support its clients in solutions for their businesses based on the principles of the ESG agenda, acting as a structuring bank, financier and guarantor of projects for strategic sectors in the decarbonization of the economy, such as biofuels. For the operation of BSBIOS, the option was structured as a Sustainability Linked Loan. In this model, the Bank offers an incentive to the client (reduction of the operating tax tax) by meeting goals for environmental, social or governance indicators pre-established in the contract.

“The good progress of the first operation has led us to carry out this new transaction. One of their two differences is the implementation of a program that encompasses the chain of suppliers in a broader way, which is a fairly material issue for the sector. Each indicator is evaluated considering the reality of the business, always looking for an evolution of the socio-environmental performance of the client.”
Alex Sciacio, Head of Green Finance of Santander Brazil

The objective of the 2SC Program is to build, together with the BSBIOS partners, a supply chain of sustainable raw materials for the production of biofuels, which meet the demands of both internal and external markets. The action also strengthens the relationship of the company with the suppliers. The initiative is aligned with the principles of sustainability, with the objective of increasing the quality and promoting the permanent performance of the supply chain, aiming at mitigating risks and obtaining eco-efficiency, as well as guaranteeing the participation of companies in the national and international markets of sustainable fuels by means of of certifications. For us it is very important that Santander continue together with this program, it can strengthen the belief that we are, not Brazil, an example of sustainable production of raw materials and biofuels.

In this new financing, the commitments assumed by the BSBIOS are linked to the increase in the participation of the volume of animal fats as raw material and to the generation of Decarbonization Credits (CBIOS) from suppliers participating in the 2SC Program. Through this initiative, the raw material supplier will have access to both financial benefits and incentives related to ESG issues.

The company recently endorsed the Brazilian Service for Support of Micro and Small Businesses (SEBRAE) and the National Service for Industrial Learning (SENAI), the Termo de Cooperação for the training of providers of the 2SC Program.

In the first operation between Santander and BSBIOS, the commitment assumed was linked to the expansion of the Ser Sustentável program, which has as a partner Cooperativa Amigos do Meio Ambiente (COAMA). The institution is working with recyclers and has an environmental license to make or collect used cooking oil from commercial establishments and residences.

At the initiative, it is installing new collection points and providing more equipment for conditioning and transporting the collected oil. The volunteer group of the company promotes constant training in business management issues for the cooperative members, in addition to providing support for articulation with the public and private sectors to expand the oil collection network, generating engagement of the entire community of Passo Fundo. The collected oil is destined for the production of biodiesel, completing the cycle of the circular economy.