On June 14, 2022, the Brazilian Association of Financial and Capital Markets Entities (Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais/Anbima) included criteria for identifying sustainable receivables investment funds (fundos de investimento em direitos creditórios/FIDCs) in a public hearing concerning the Third Party Resources’ Administration Code.
FIDCs that are considered 100% sustainable – that is, intended for sustainable investment – may use the term IS (Sustainable Investment/Investimento Sustentável) in their name. Funds that simply include ESG (environmental, social and corporate governance) aspects in their management processes, but whose mais purpose is not sustainable investment, will not be able to be identified in this way.
- 100% sustainable FIDCs
To be entitled to use IS in its name, the fund’s portfolio must be aligned with sustainability, and must explain, in its rules and regulations, that (i) its ESG objective considers the transferor company (that sells credits) and/or drawee company (debtor), and (ii) ensure that the transaction counterparty (transferor and/or drawee, as the case may be) will not cause any damage to this portfolio.
- FIDCs that consider ESG aspects
Funds that consider ESG issues in their portfolios but are not fully committed to sustainability may use the phrase “this fund includes ESG issues in its management” in sales materials intended for investors – and must also clarify whether the inclusion of ESG criteria is based on the assignor and/or drawee, as the case may be.
It should be noted that managers of both types of FIDC must disclose policies and actions taken to include ESG factors in a fund's management activity.
Please click here For access to the Third Party Resources’ Administration Code, please click here. The public hearing is open until July 13, 2022. For more information, please contact our Capital Markets team at ([email protected].
