Sustainable Finance Framework 2022 slide image

Sustainable Finance Framework 2022

Sustainable Finance Framework 2022 Social Eligibility Criteria Investments in: SBP Eligible Project Category Eligibility Criteria and Example Projects Introduction Rationale for Framework Alignment Management of Proceeds Use of Proceeds Evaluation and Selection Reporting Verification Review Disclaimer Target population Access to essential services a) To bring financial access to rural populations or urban cities with lower social indicators, which are more dependent on government pay-outs. a) Underserved, owing to a lack of quality access to essential goods and services; b) Excluded and/or marginalised populations and/or communities. Employment generation, through the potential effect of SME financing and microfinance a) SME financing and microfinance, such as credit lines seeking to finance formal and informal microentrepreneurs and promote the inclusion of low income microentrepreneurs in the financial market. . a) Micro and Small Companies. b) Medium, Micro and Small 10 companies, which are led or owned by: women11; • Entrepreneurs located primarily in North and Northeast region of Brazil, or in municipalities or states with human development index (HDI) below Brazil's average; c) Migrants and/or displaced persons; d) Excluded and/or marginalised populations and/or communities; e) Aging populations and vulnerable youth; f) Other vulnerable groups, including as a result of natural disasters. Family Rural Production a) Small rural producers¹², in selected subprograms such as: Pronaf Custeio, Pronaf Mais Alimentos, Pronaf Agroindústria, Pronaf Mulher, Pronaf Bioeconomia, Pronaf Agroecologia, Pronaf Cotas Partes. a) Low-income rural communities and women. SDG Alignment NO 1 POVERTY DECENT WORK AND ECONOMIC GROWTH 10 REDUCED 10QUALES M BECENT WORK AND ECONOMIC GROWTH Σ 2 SSS ZERO DEGENT WORK AND OECONOMIC GROWTH 10 REDUCED 10 INEQUALITIES M 8 Located in municipalities with human development index (HDI) below 0,755, which according to UN development agency, as of 2015, is Brazil's average HDI. According IFC's definition of Medium Enterprise, the annual revenue threshold for this segment is from USD 3 million to USD 15 million. Medium companies in Brazil face similar issues as Micro and Small Enterprises in terms of access to financial services, especially in some regions in Brazil that lack infrastructure and economic opportunities. 10 According IFC's definition of micro and small companies, the annual revenue threshold for this segment is USD 3 million. Those companies may face challenges related to limited access to financial services, such as affordable loans and payments solutions due the lack of collateral or minimum use of access of technology. 11 According to IFC's definition, an enterprise qualifies as a woman-owned enterprise if: (a) ≥ 51% owned by woman/women; or (b) ≥ 20% owned by woman/women; AND (i) has ≥ 1 woman as CEO/COO/President/Vice President; AND (ii) has ≥ 30% of the board of directors composed of women, where a board exists. Entrepreneurship is a way and alternative for needy families and minority groups to guarantee income, while it benefits the community around them. 12 The Framework defines smallholder farms as those with annual revenues up to BRL 500,000 12
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