Santander Brasil grants green financing of R$60 million to BSBIOS

Santander Brasil granted R$60 million with an ESG commitment to BSBIOS, the largest biodiesel producer in Brazil. The amount will be used to expand the social project for collecting used cooking oil (UCO) in Passo Fundo, Rio Grande do Sul. The initiative will reduce the environmental impact caused by inappropriate disposal of waste in the environment and will increase the income of families that are already part of the municipality's recycling cooperative by 15%. The residue is used as raw material for the production of biodiesel, at the BSBIOS unit, in the city itself.

The ESG Linked Loan line of loans is a model in which Santander offers the benefit of reducing the interest rate linked to meeting targets for environmental, social and governance indicators pre-established in the contract. The Bank is a pioneer in the loan market linked to sustainability indicators in Brazil. “We have been investing more and more in green products and incentives, like this one for BSBIOS. We closely monitor the proposals, always considering the reality of each business, so that there are advances in their socio-environmental indicators”, highlights Carolina Learth, Sustainability leader at Santander Brasil.

“Green” financing was a natural path for BSBIOS, which already has in its DNA the purpose of practicing sustainable development through agribusiness and renewable energy. One of its main goals is to become one of the three largest producers of biofuels in the world and carbon neutral by 2030. “As a company that has sustainability as one of its values, we are happy to announce this partnership, which will certainly have many positive impacts on the environment, social inclusion and income generation for the local economy”, highlighted Erasmo Carlos Battistella, President of BSBIOS.

The company uses animal fats, soybean oil and UCO as raw materials for the production of biodiesel. Approximately 40% of the raw materials used come from family farming, benefiting around 10 thousand families of small rural producers.

In addition to two production units in the country, one in Passo Fundo (RS) and the other in Marialva (PR), BSBIOS also has a production unit in Switzerland and is leading the construction project for the Omega Green biorefinery in Paraguay, which will produce advanced biofuels from 2025. Recently, the company also announced the project to implement an ethanol production unit in Rio Grande do Sul.

Counterpart

In return for ESG financing, BSBIOS sought a local partnership, in Vila Popular, in Passo Fundo. The Cooperative Friends of the Environment (COAMA) already works with recyclers and has an environmental license to collect used cooking oil. The action will develop suppliers for purchasing UCO, coming from the public collection system, commercial establishments and homes.

The president of COAMA, Eva de Fátima Godois de Chaves and the vice-president, Aparecida Oliveira Sodré, highlighted the importance of the partnership. “This action is very important for all of us at the cooperative, for the company and especially for the environment. It is something that will certainly have a positive impact on our work and our income”, they highlighted.

The project envisages the installation of new collection points and the supply of equipment for packaging the collected oil for transportation. Support will also come from training members on business management issues, through a company volunteer group, which will also provide support for coordination with the public and private sectors to expand the oil collection network. The idea is to involve the entire community in a major environmental education action, generating engagement, bringing social gains and sustainable development to the municipality.