Banks should monitor conduct on illegal deforestation when offering credit to slaughterhouses

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Financial institutions will inspect the origin of their clients’ cattle in the Legal Amazon and Maranhão; understand. Meat in a refrigerator Reproduction/TV Globo The Brazilian Federation of Banks (Febraban) announced, this Tuesday (30), that banks will have to follow new rules of self-regulation to combat illegal deforestation when offering credit to slaughterhouses and slaughterhouses. The new protocol stipulates that banks participating in the Banking Self-Regulation System must ask their slaughterhouse customers in the Legal Amazon and Maranhão to implement an activity monitoring system. The objective, according to Febraban, is for the system to demonstrate, by December 2025, that the slaughterhouse has not purchased cattle associated with illegal deforestation, either from direct or indirect suppliers. The system should include information on embargoes and protected areas, deforestation data and authorizations for the suppression of vegetation, in addition to the Rural Environmental Registry (CAR) of the properties where the animals come from. In addition, banks should consider social aspects, checking the records of employers who have subjected workers to conditions analogous to slavery, for example. According to the Federation, this new regulation complements other initiatives on the subject led by the body since 2014. Even before the new rules, the current rule already defined socio-environmental criteria for granting rural credit. Non-compliance Febraban reported that financial institutions must define plans to adapt to the new rules, in addition to the applicable consequences in case of non-compliance (if the slaughterhouse buys cattle from suppliers that deforest illegally, for example). Thus, slaughterhouses must periodically disclose performance indicators so that banks can monitor their progress. Banks that adhere to self-regulation undertake to follow the new standards of conduct and may suffer punishment in case of non-compliance with the rules. Penalties may include: signing a conduct action/adjustment plan; fine payment; suspension of participation in the Banking Self-Regulation System, suspension of the use of the Self-Regulation Seal and the term of office of its Director on the Self-Regulation Board; exclusion from its participation in the Banking Self-Regulation System. For complaints, Febraban has a channel called “Conte Aqui”, through which it is possible to report eventual non-compliance with the rules. READ ALSO: Almost 3 months after ‘mad cow’, Qatar imports beef from Brazil again Beef production can pollute less with special feed Find out where food comes from: Where does what I eat come from: tilapia Where does food come from I eat: Eggs Where does milk come from

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