INSTRUCTION NORMATIVE BCB No. 153, OF SEPTEMBER 15, 2021

Establishes the standardized tables for the purposes of disclosing the Social, Environmental and Climate Risks and Opportunities Report (GRSAC Report).

The Head of the Prudential and Exchange Regulation Department (Dereg), in the exercise of the attribution conferred upon him by art. 23, item I, letter “a”; and art. 118, item I, letter “d”, of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 84.287, of February 27, 2015, and having in view the provisions of art. 56 of Resolution No. 4.557, of February 23, 2017,

RESOLVES:

Art. 1º The tables relating to the Social, Environmental and Climate Risks and Opportunities Report (GRSAC Report), which is the subject of BCB Resolution No. 139, of September 15, 2021, are detailed in annexes I, II and III of this normative instruction.

Sole Paragraph. The tables mentioned in the caput will also be available at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/regulacao_prudencial_normas, on the Central Bank of Brazil’s internet page.

Art. 2º This Normative Instruction enters into force on December 1, 2022.

Ricardo Franco Moura

Annex I - Mandatory table for institutions classified in segment 1 (S1), segment 2 (S2), segment 3 (S3) and segment 4 (S4), in accordance with Resolution No. 4.553, of January 30, 2017.

Table GVR: Governance of the management of social risk, environmental risk and climate risk

Objective: Description of the governance of the management of social risk, environmental risk and climate risk.
Content: Qualitative information.
Frequency: Annual.
The role of the board of directors (BD), the institution’s executive board, the risk management director (CRO) and the risk committee in the governance process for the identification, measurement, assessment, monitoring, reporting, control and mitigation of social risk, environmental risk and climate risk must be described, as provided for in Resolution No. 4.557, of February 23, 2017.
Detailing of information
(a)	Identification of the institution’s governance instances with responsibilities in the management of social risk, environmental risk and climate risk. · Consider the instances at their various levels (strategic, tactical, operational, control and compliance, in accordance with Resolution No. 4.595, of August 28, 2017), highlighting the BD, the executive board, the CRO, the risk committee, the audit committee, other existing committees, and business units and risk management units.
(b)	Description of the responsibilities assigned to the instances identified in item (a), and the relationship between them. · Consider, among the responsibilities, the forms of control, the delegation of authority and the division of responsibilities.
(c)	Process and frequency of receipt, by the BD and, in its absence, by the executive board, of information relating to social risk, environmental risk and climate risk, taking into account what is described in item (b).
(d)	Description of the criteria used by the BD and, in its absence, by the executive board to ensure the consideration of social risk, environmental risk and climate risk, when relevant, in the approval and review processes: · of the institution’s risk appetite levels; · of the risk management and capital management policies, strategies and limits; · of the stress testing program; · of the policies for business continuity management; · of the liquidity contingency plan; · of the capital plan and the capital contingency plan; and · of the remuneration policy.
(e)	Forms of monitoring by the BD and, in its absence, by the executive board of the institution’s strategic objectives and, if applicable, its targets related to social, environmental and climate aspects.

Annex II - Mandatory tables for institutions classified in S1 and S2, and optional for institutions classified in S3 and S4, in accordance with Resolution No. 4.553, of 2017.

Table EST: Strategies used in the treatment of social risk, environmental risk and climate risk

Objective: Identification and description of the actual and potential impacts, when considered relevant, of social risk, environmental risk and climate risk on the institution’s business, strategies and risk and capital management.
Content: Qualitative information.
Frequency: Annual.
Aspects of social risk, environmental risk and climate risk with potential impacts, when considered relevant, on the business, strategies and risk and capital management must be described, as provided for in Resolution No. 4.557, of February 23, 2017.
Detailing of information
(a)	Identification of social risk, environmental risk and climate risk events that generate the possibility of relevant losses for the institution at different time horizons. · Divide, when possible, into (a.1) for social risk events, (a.2) for environmental risk events and (a.3) for climate risk events, in their physical climate risk and transition climate risk aspects. · Indicate the percentage of credit portfolio losses and other financial intermediation activities, considering the economic sector, the geographic region and the average maturity of the exposures. · Indicate the criteria adopted to define the different geographic regions and the temporal criteria adopted to define the different horizons (short, medium and long term). · Indicate the respective sources of information in the process of identifying risk events.
(b)	Identification of significant concentrations of the risks mentioned in item (a) in the institution’s credit exposures, observing the provisions of art. 38-D, item V, of Resolution No. 4.557, of 2017.
(c)	Description of how the events mentioned in item (a) are considered in the institution’s business, strategies and capital management, detailing the time horizon considered and the criteria adopted in prioritizing the assessed risks.
(d)	Description of the hypotheses of changes in climate patterns and transition to a low-carbon economy used in carrying out scenario analyses, within the scope of the stress testing program referred to in art. 7º, item VII, of Resolution No. 4.557, of 2017.
(e)	Description of the institution’s adaptation capacity, considering the hypotheses mentioned in item (d).

Table GER: Processes for the management of social risk, environmental risk and climate risk

Objective: Description of the structure for the management of social risk, environmental risk and climate risk.
Content: Qualitative information.
Frequency: Annual.
The processes for identification, measurement, assessment, monitoring, reporting, control and mitigation of social risk, environmental risk and climate risk must be described, as provided for in Resolution No. 4.557, of February 23, 2017.
Detailing of information
(a)	Description of the process for identification, measurement and assessment of social risk, environmental risk and climate risk.
(b)	Description of the criteria used for classifying exposures regarding social risk, environmental risk and climate risk, considering the economic sector, the geographic region and the average maturity of the exposures.
(c)	Description of the mechanisms used for the timely identification of political, legal or regulatory changes that may impact the transition climate risk incurred by the institution.
(d)	Within the scope of integrated risk management, description of the mechanisms used for the treatment of interactions between social risk, environmental risk and climate risk, and between these and the other risks incurred by the institution, observing the provisions of art. 38-E of Resolution No. 4.557, of 2017.
(e)	Description of the processes for the management of social risk, environmental risk and climate risk, highlighting the monitoring, control and mitigation of these risks.
(f)	Description of the mechanisms used for the monitoring of concentrations in economic sectors, geographic regions or segments of products and services more susceptible to suffering or causing social, environmental and climate impacts.

Annex III - Optional tables

Table MEM: Indicators used in the management of social risk, environmental risk and climate risk

Objective: Description of the quantitative indicators used in the management of social risk, environmental risk and climate risk.
Content: Quantitative information.
Frequency: Annual.
The quantitative indicators used in the management of social risk, environmental risk and climate risk must be described, as provided for in Resolution No. 4.557, of February 23, 2017.
Detailing of information
(a)	Quantitative indicators used in the management of social risk, environmental risk and climate risk, highlighting those associated: · with the classification of exposures regarding these risks, considering the economic sector, the geographic region and the average maturity of the exposures; and · with significant concentrations in the institution’s exposures, observing the provisions of art. 38-D, item V, of Resolution No. 4.557, of 2017.
(b)	Description of the methodologies used for the calculation or estimation of the indicators mentioned in item (a).

Table OPO: Business opportunities associated with social, environmental and climate themes

Objective: Description of business opportunities associated with social, environmental and climate themes.
Content: Qualitative information.
Frequency: Annual.
The business opportunities associated with social, environmental and climate themes must be described, as provided for in BCB Resolution No. 139, of September 15, 2021.
Detailing of information
(a)	Governance instances of the institution with responsibilities in the identification of business opportunities associated with social, environmental and climate themes, considering the instances at their various levels (strategic, tactical and operational).
(b)	Description of the responsibilities assigned to the instances identified in item (a) and the relationship between them.
(c)	Process and frequency of receipt, by the BD and, in its absence, by the executive board, of information relating to business opportunities associated with social, environmental and climate themes.
(d)	Identification of business opportunities associated with social, environmental and climate themes that generate the possibility of relevant gains for the institution at different time horizons. · Divide, when possible, into (d.1) for social themes, (d.2) for environmental themes and (d.3) for climate themes. · Indicate the criteria adopted to define the different geographic regions and the temporal criteria adopted to define the different horizons (short, medium and long term).
(e)	Description of the process for identifying the business opportunities mentioned in item (d).
(f)	Description of how the business opportunities mentioned in item (d) are considered in the institution’s strategies, detailing the time horizon considered and the criteria adopted in prioritizing these opportunities.