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Investor Presentaiton

Annual Report AR 2022 SUMMARY WHO WE ARE OUR STRENGTH AND OUR RESOURCES OUR RESULTS Agenda BC# The BCB became a member of the Steering Committee of the Network for Greening the Financial System (NGFS) The BCB became a member of the Steering Committee of NGFS. In 2022 and 2023 the BCB will be part of the group of 15 central banks that help better outline the network's agenda, composed of more than 100 members. By the end of 2022, 19 of the G20 countries were members of the NGFS. This move is a relevant recognition of BCB's efforts on the issue of sustainability. Less than two years after joining the Committee, the BCB already participates in numerous NGFS initiatives, more recently by coordinating the preparation of a progress report on supervision. Being part of the Steering Committee brings a greater chance to actively participate in the discussions and influence the direction intended by the NGFS to its issues, which is relevant in a network mostly composed of European elements and countries with advanced economies. Besides the benefits of producing relevant material and exchanging experiences, being part of the Steering Committee is an opportunity to bring the perspective of an emerging Latin American economy to this agenda. The exchange of experiences and participation in the NGFS working groups enhance knowledge in the BCB, which is crucial to design its new regulations and publish reports in the ESG (environmental, social, and governance) area. Report on Social, Environmental, and Climate Risks and Opportunities (RIS) In 2022, the second edition of the RIS was published. The report was based on the structure proposed by the World Economic Forum, addressing not only climate aspects, but also social and environmental ones. It is worth remembering that, in 2020, the BCB included the Sustainability dimension in the Agenda BC#. Thus, the BCB confirmed its understanding of the importance of social, environmental, and climate risks in the economy and in the SFN, and the relevant role played by institutions in addressing these risks. The second edition of the RIS presented an overview of the actions underway in the Sustainability dimension since the publication of its first edition, in 2021, as well as new actions included in the agenda during 2022. Promoting the disclosure of information related to risks is a fundamental step towards building a consensus on the best way to measure, disclose and then manage these risks appropriately. Improvements in the monitoring of rural credit operations with advances in the FiBraS Project The FiBras Project reached the end of its first phase in March 2022. Starting in October 2018, it pursued the improvement of structuring conditions for the Brazilian green finance market development. FiBraS was originally conceived with a focus on supervision-specific issues, to ensure the implementation of rules related to socio- environmental risk management by financial institutions in their lending operations. The BCB was able to improve the qualification of its employees in topics related to social, environmental, and climate risks, through courses and consultancies offered by FiBraS. The project provided the BCB with access to relevant tools to improve the monitoring of rural credit operations, with the expansion of the use of geospatial data in the process. It also contributed to the promotion of regulatory improvements. 102
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