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Banco BTG Pactual S.A.

PRI reporting framework 2019

Export Public Responses

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Asset class implementation not reported in other modules

SG 16. ESG issues for internally managed assets not reported in framework

Describe how you address ESG issues for internally managed assets for which a specific PRI asset class module has yet to be developed or for which you are not required to report because your assets are below the minimum threshold.

Asset Class

Describe what processes are in place and the outputs or outcomes achieved

Forestry

Since BTG Pactual became UN PRI signatory we have been evolving in our ESG apporach in all asset strategies. For timberland strategy, as example, BTG Pactual has a specific responsible investment policy with nine principles and annualy published TIG ESG Report which several KPIs consolidating our global perfomance in managing forests. For example, during the reporting year, we reach 89% of forest certified by a recognized independent third part, as FSC, PEFC, SFI, American Three Farm or Cerflor and also 100% of sites managed have been checked in order to identify any known rights related to land claims or acess of indigenous people on the asset. 

16.2. Additional information [Optional].

TIG’s Environmental and Social Management System (ESMS) is a set of policies, procedures, and measurement tools which affirm TIG’s commitment to responsible investment, while providing a framework for identifying and mitigating environmental and social risks associated with timberland investments throughout our global footprint.

In conjunction with BTGP’s pledge to the UN PRI, two internal policies express the core principles upon which the ESMS is constructed.  BTG Pactual’s Environmental, Social and Corporate Governance Policy expresses the firm’s commitment to responsible and sustainable development, while TIG’s Responsible Investment Policy adds clarity in applying these values to the Timberland Investment Group’s operations.

To effectively monitor TIG’s implementation of the Environmental Social Management System, a set of key performance indicators (KPIs) has been established.  The KPIs are designed to track progress in applying the principles of ESG and Responsible Investment in our global timberland asset management operations.

TIG is committed to pursuing 3rd party certification of our forest management practices for all investments where it is financially and operationally feasible.  Some of the current investments are in rights to timber only, without rights to the management of the land after the timber is harvested.  In these cases the inability to guarantee reforestation after harvest precludes certification under several programs.  TIG is dedicated to increasing the proportion of managed forests certified in 2017.  Also, most of the forests which are composed of timber rights only are managed under the same systems and to the same standards as certified forests.

During the reporting period, BTG Pactual released an TIG ESG Report and make it public available on our sustainability website. TIG’s Responsible Investment Policy is based upon nine core principles which ensures market best practices are being taken into consideration during our investment process. These nine core principles are further defined below:

1 Strictly comply with environmental, social, health and safety laws, regulations and standards TIG seeks to comply with all applicable laws, regulations, and standards related to environmental, social, and governance issues in all locations where it manages timberland. BTG Pactual’s structure of compliance and standard controls are used to monitor adherence to anti-corruption, labor, and environmental laws. TIG also expects service providers to establish regionally appropriate health and safety standards and implement all industry best practices when providing services to TIG and its clients. 

2 Foster environmental protection and enhance biodiversity conservation TIG is committed to the enhancement of biodiversity in all regions where it manages property and promotes this initiative through the forest management supply chain by ensuring preferred positions to companies who demonstrate their commitment to ESG matters. 

3 Respect and uphold human rights in all operations and contracts It is mandatory for all TIG employees and third-party service providers to respect and uphold human rights in all regions where we manage timberland. BTG Pactual and TIG are committed to the United Nations Global Compact and encourage every stakeholder to engage in these principles. We encourage the support, respect, and furtherance of internationally proclaimed human rights to help ensure there are no human rights abuses.

4. Develop supply chain and prioritize local hiring Service providers must comply with all applicable laws related to ESG and TIG also expects service providers to develop training programs focused on enhancing suppliers’ qualifications and workforce competency. When possible, local suppliers should be hired as a means to positively impact local communities. 

5 Strictly comply with anti-corruption and bribery regulations TIG avoids corruption in all forms, including extortion and bribery, upholding compliance standards, and organizational integrity by complying with relevant antifraud and money-laundering regulations. Service providers are responsible for ensuring all anti-corruption and fraud compliance of their employees when performing operations and sourcing sub-contractors or materials on properties where TIG manages timberland.

6 Establish an open dialogue with the community where TIG manages timberlands TIG is committed to local communities and is receptive to any and all feedback provided by these communities. TIG’s policy of open and transparent communication is a key component in this process. TIG holds service providers to a high standard which includes appropriate communication channels that guarantee local communities have a voice in the process. 

7 Promote ESG awareness among employees by developing and providing specific training programs TIG is committed to enhancing ESG awareness and knowledge within stakeholder groups by developing training programs and/or reporting on ESG issues. TIG also expects service providers to promote regionally appropriate ESG awareness throughout its company and with its business partners.

8 Report ESG performance with clarity and transparency TIG periodically discloses ESG performance through reports and website publications. We are committed to providing transparency to investors and other stakeholders about our activities related to responsible investing. Where appropriate, TIG expects service providers to disclose ESG progress, detailing ESG risks, impacts, and mitigation practices they have in place.

9 Commit publicly to global initiatives that strengthen our values TIG publicly commits to relevant initiatives that demonstrate our engagement with ESG best practices and provides transparency to our investors. BTG Pactual is a signatory of UN PRI and United Nations Global Compact, which highlight TIG’s commitment to ESG matters. We will seek to continue to be a signatory of these and other initiatives and disclose TIG’s performance in incorporating them into our internal practices.


SG 17. ESG issues for externally managed assets not reported in framework (Not Applicable)


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