Sustainable Finance Framework 2022
Sustainable Finance Framework 2022
Introduction
Rationale for Framework Alignment Use of Proceeds
Management of Proceeds Reporting Verification
Evaluation and Selection
Review
Disclaimer
The importance of cooperatives for sustainable development
At Sicredi, we define our positive impact as the
positive transformations in economic, social, and
environmental terms that we bring about in the
lives of people and society where we operate.
To enhance our capacity to generate sustainable
development, we seek to understand and
measure this generation of value through
studies and clear indicators that we can track
over time.
In 2020, we commissioned the specialist
in Applied Microeconomics and Economic
Development, Juliano Assunção, a researcher in
the Department of Economics at the Pontifical
Catholic University of Rio de Janeiro (PUC-Rio),
to carry out a study comparing the physical
presence of banks versus credit unions in
Brazilian cities.
The research concluded that Sicredi has a
natural preference for settling in rural locations,
that are more distant, that have lower GDP and
with smaller population number. Therefore, our
activity helps to increase the life quality of a
target population.
The study also pointed to a trend of
geographical expansion that contrasts with the
continuous decline in the presence of public
and private banks in Brazil. Finally, employing
industrial organizational techniques, the study
assessed the minimum size of a municipality
for the entry of banks and of Sicredi. In terms
of population size, it was identified that the
minimum viability is around 2.3 thousand
inhabitants. In terms of GDP, BRL 79 million
is the minimum requirement for any given
municipality. Banks, on the other hand, require 8
thousand inhabitants and BRL 112 million. The
study showed a clear potential for credit unions
to reach around 1.9 thousand cities where 9.5
million Brazilians live.
Being a cooperative financial institution is what
distinguishes us and brings us closer to our
mission. We are governed by the principles of
cooperativism, which guide us in promoting
the economic development of the communities
in which we are present. By remaining aligned
with our essence, the money raised in one
location is reverted to credit granted to other
members in the same location. In turn, this
creates a virtuous cycle that encourages
investments in the cooperative, the inclusion
of people in the financial system, and the
strengthening of our members' the business.
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