INSTRUCTION NORMATIVE BCB NO. 222, OF DECEMBER 28, 2021

Establishes the procedures for submitting information regarding social, environmental, and climate risks of exposures in credit operations and securities, as provided for in Resolution BCB No. 151, of October 6, 2021.

The Head of the Financial System Monitoring Department (Desig), acting in the substitute capacity, using the authority conferred by Art. 23, item I, letter “a”, of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 84.287, of February 27, 2015, based on Art. 77, item III, of said Regulations, and having in view the provisions of Resolution BCB No. 151, of October 6, 2021,

RESOLVES:

Art. 1 The submission of the information referred to in Art. 2 of Resolution BCB No. 151, of October 6, 2021, must be carried out through Document 2030 - Social, Environmental, and Climate Risk Document (DRSAC), in accordance with the annex to this Instruction Normative.

Sole Paragraph. The submission referred to in the caput must be carried out semiannually, by the 10th business day of the second month subsequent to the respective data base date.

Art. 2 As provided in Art. 3 of Resolution BCB No. 151, of 2021, the DRSAC must be submitted:

I - by the lead institution of each prudential conglomerate, on a consolidated basis, regarding the information of the institutions comprising the conglomerate, in accordance with the consolidation adopted for the calculation of Reference Equity; (Amended, effective as of 12/01/2023, by Instruction Normative BCB No. 423, of 11/24/2023.)

II - by financial institutions and other institutions authorized to operate by the Central Bank of Brazil, not belonging to a prudential conglomerate, and by cooperatives not part of organized systems of three or two levels; and (Amended, effective as of 06/01/2024, by Instruction Normative BCB No. 423, of 11/24/2023.)

III - by cooperative banks, by credit confederations, by service confederations constituted by central credit cooperatives or by central credit cooperatives, regarding the information of all cooperatives comprising organized systems of three or two levels, on an individual basis. (Included, effective as of 06/01/2024, by Instruction Normative BCB No. 423, of 11/24/2023.)

§ 1 Payment institutions that are the lead institutions of a Type 3 prudential conglomerate are included in item I. (Included, effective as of 12/01/2023, by Instruction Normative BCB No. 423, of 11/24/2023.)

§ 2 Observing the schedule of Art. 4 of Resolution BCB No. 151, of 2021, the information referred to in the caput must be prepared and submitted starting from the first data base date on which the institution authorized to operate by the Central Bank of Brazil is effectively functioning. (Included, effective as of 12/01/2023, by Instruction Normative BCB No. 423, of 11/24/2023.)

Art. 3 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil that do not possess the information referred to in Art. 2 of Resolution BCB No. 151, of 2021, capable of being submitted via Document 2030, must register this situation in the Document Submission Control System (CRD), available on the Central Bank of Brazil’s website at the electronic address https://www3.bcb.gov.br/crd, in the “Documents” tab, option “Zero Document”, observing the provisions of the CRD User Manual, available at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/controledocumentosif.

§ 1 The registration referred to in the caput must be made semiannually.

§ 2 The absence of the registration referred to in the caput presupposes the existence of information, as well as the need to submit Document 2030 within the deadlines and conditions provided for in this Instruction Normative.

Art. 4 The institutions mentioned in Art. 2 must indicate an employee qualified to answer any questions regarding the information provided in accordance with this Instruction Normative.

Art. 5 The indications of the responsible director, referred to in Art. 5 of Resolution BCB No. 151, of 2021, and of the technical responsible person, mentioned in Art. 4 of this Instruction Normative, must be registered and kept updated in the Information System on Entities of Interest of the Central Bank (Unicad).

Art. 6 This Instruction Normative enters into force on July 1, 2022.

Gustavo Martins dos Santos

ANNEX TO INSTRUCTION NORMATIVE BCB NO. 222, OF DECEMBER 28, 2021

Document Code: 2030.

Document Name: Social, Environmental, and Climate Risk Document (DRSAC).

Submission System: Sisbacen.

Submission Frequency: Semiannual.

Submission Deadline: By the 10th business day of the second month subsequent to the respective data base date.

Data Base: Last business day of the months of June and December.

Unit Responsible for Curation: Desig.

Submission Method: Electronic means.

System for Submission: File Transfer System (STA), as regulated and made available on this Agency’s website, at the address https://www.bcb.gov.br/acessoinformacao/sistematransferenciaarquivos.

Submission Format: XML (eXtensible Markup Language).

Submission Validation: Anticipated.

Submission Validation Schema: XSD (XMLSchema Definition).

Additional Elements for Submission: Layout, filling instructions, and other necessary documents, available on the Central Bank of Brazil’s website at the address https://www.bcb.gov.br/estabilidadefinanceira/leiautedocumentoscrd.

Responsible Director for Submission: Indicated in accordance with Art. 5 of Resolution BCB No. 151, of October 6, 2021.

Registration of Responsible Director for Submission: “Links - Inclusion - Responsible Director by Area of Activity” module of Unicad.

Employee Indicated to Answer Questions: Indicated in accordance with Art. 4 of this Instruction Normative.

Registration of Employee Indicated to Answer Questions: “Links - Inclusion - Internal Audit / Ombudsman / Resp. for Info Submission” module of Unicad.

Electronic Address for Resolving Doubts about Submission and Document Filling: drsac@bcb.gov.br

NOTE

Resolution CMN No. 4.945, of September 15, 2021, instituted the Social, Environmental, and Climate Responsibility Policy (PRSAC), by which institutions must assess and control social, environmental, and climate risks. These risks are also assessed within the integrated risk management structure (GIR), provided for in Resolution No. 4.557, of February 23, 2017. Based on these regulations, the Central Bank of Brazil published Resolution BCB No. 151, on October 6, 2021, establishing that financial institutions and other institutions authorized to operate by the Central Bank of Brazil classified in Segment 1 (S1), Segment 2 (S2), Segment 3 (S3), or Segment 4 (S4) must send to this Agency information regarding the assessment of social, environmental, and climate risks of their exposures in credit operations and to securities, and of their respective debtors. The submission of this information will be semiannual and will begin from the December 2022 data base date through Document Code 2030 - Social, Environmental, and Climate Risk Document (DRSAC).

2. This Instruction Normative BCB only establishes the procedures for submitting the information provided for in Art. 2 of Resolution BCB No. 151, of 2021, and does not introduce any new informational requirements regarding the provisions of said regulation. Regarding the established procedures, the same technological structure already provided for in most submission documents (deadline, method, system, format, and validation procedures) was adopted, so that this proposal brings no innovation regarding the required procedures.

3. Additionally, it is important to highlight that the document was designed so that financial institutions will provide only the information they possess in accordance with their Social, Environmental, and Climate Responsibility Policies (PRSAC) and following the criteria defined in the current regulation regarding the risk management structure, with the possibility of sending empty fields if they are not applicable. Furthermore, if institutions do not possess any of the information provided for in the document, it will be possible to make a specific registration in the Document Submission Control System (CRD) to avoid the need to submit the document to the Central Bank, as provided for in Art. 3 of the Instruction Normative.

4. Thus, based on the above, it is concluded that this instruction normativity only clarifies the procedure for executing an obligation contained in Resolution BCB No. 151, of 2021, without causing, therefore, a significant increase in costs for economic agents, budgetary or financial expenses, nor substantially impacting the public policy executed. Therefore, in view of what is provided for in Decree No. 10.411, of June 30, 2020, regarding regulatory impact analysis (RIA) and the hypotheses for exemption from carrying out this analysis, I understand that this BCB Instruction Normative is exempt from carrying out an RIA as it falls under the hypothesis provided for in item III of Art. 4 of said decree.

Gustavo Martins dos Santos
Head of the Financial System Monitoring Department (Desig), substitute