Sitawi has launched a public consultation for green taxonomy in partnership with FEBRABAN (the Brazilian Federation of Banks). The initiative addresses the new classification for the measurement of financial resources intermediated by the banking sector, characterized in accordance with socio-environmental and climate matters. The new proposal addresses three priority areas: Exposure to Climate Change (monitoring of the exposure of the portfolios to climate risk); Green Economy (monitoring of the potential positive impact on society/the environment); Exposure to Environmental Risk (monitoring of the exposure of the portfolios to environmental risk).

Gustavo Pinheiro, coordinator of the iCS low carbon economy portfolio, says that “the taxonomy construction is the way to regulate the financial system, by allowing the differentiation between businesses either aligned or in noncompliance with the objectives of the Paris Agreement, the Sustainable Development Goals and other structures that define the future that we are building.”