Storebrand Asset Management, gathered 34 funds, with more than $4.6 trillion in assets, to convince the Brazilian government to reverse policies that destroy the Amazon. Storebrand, which dedicated its entire $90 billion portfolio to environmental, social and governance (ESG) investments, says it now has a “clear commitment” from the Brazilian government that it will respond to their demands.
Vale mining company is developing a 100% electric locomotive, the first in the sector in Brazil, in partnership with the American Progress Rail, of the Caterpillar group. The equipment is under construction at Progress Rail’s industrial plant in Sete Lagoas, Minas Gerais. The batteries will have a storage capacity of 1.9 MWH, being able to operate up to 24 hours without the need to stop to recharge.
The Development Bank of Minas Gerais (BDMG) is preparing to raise about $100 million in green bonds, with support from the Inter-American Development Bank (IDB). At the same time, environmental, social and governance-related investments (ESG) have gained increasing interest from large industrial companies, financial institutions and asset managers.
Brazilian electricity trader Tradener has begun exporting energy to Argentina, in operations that are expected to move around $20 million per week. The negotiations involve energy produced by thermoelectric plants operated in Brazil and by Paraná state-owned Copel.
The asset management division of the largest bank in the Nordic region reported that it has disinvested from Brazilian company JBS, the world’s largest meat processor, for deforestation in the Amazon. Nordea Asset Management, a €230 billion ($269 bn) fund, said the decision was taken by its investment committee and applies to about €40 million ($46 mm) in total that it still maintains at JBS.
The Confederation of Agriculture and Livestock of Brazil (CNA) estimates that the conclusion of a free trade agreement between Mercosur and Canada has the potential to increase the revenue from Brazilian exports of agricultural products by $7.8 billion. In 2019, trade in agricultural and livestock products with Canada was $628.7 million.
Eneva proposed a new proposal to BNDES, which seeks to get rid of its participation in the electricity company. The offer includes another cash payment of approximately R$2 billion ($400mm), the equivalent of R$ 1.00 per common or preferred share or R$5.00 per unit. BNDES has 28.4% of AES Tietê’s capital.
Magazine Luiza has concluded a deal with GreenYellow to supply solar energy to 214 stores. The contract stipulates the delivery of 9307.1 MWh per year. The 214 stores will then operate 100% on sustainable energy. According to data from Absolar in June, 39.5% of the solar energy consumed in the Brazil already goes to the commerce and services sector.
The S&P rating agency downgraded Gol’s rating on the global scale from B- to CCC+, citing the company’s increased risk of failing to pay off a $300 million debt due in August. The agency also put the company’s rating on ‘under development,’ depending on the company’s ability to complete debt refinancing.
Marfrig announced the Marfrig Verde+ Plan, a project created in conjunction with the IDH (Sustainable Trade Initiative) that guarantees that the entire production chain of the company will be healthy and free of deforestation in ten years. The goal is to invest R$500 million ($100mm) in sustainability actions over the next decade.