Environmental requirements for cow slaughter expanded in Brazil
Brazil’s National Economic and Social Development Bank (BNDES), one the main institutions promoting production in the country, announced it will require public credit beneficiaries to demonstrate they are not violating environmental laws in their new production deals.
Independent auditing reports will have to be submitted on a yearly basis, the bank declared, showing that suppliers are not included on the list of areas banned by Brazil’s Institute of the Environment and Renewable Natural Resources (IBAMA). They must also prove they have not been sentenced for deforestation.
The auditing must be conducted until contracts are fulfilled. In case of noncompliance, fines and termination penalties may apply. The new rules are effective for contracts inked as of January 3, 2022.
Slaughterhouses were already required to provide a list of direct suppliers and implement procedures for the purchase of cattle, the bank declared. Only suppliers that can demonstrate compliance after an assessment are accepted.
“BNDES expects the measure makes it possible for the bank to ensure compliance with the new rules for the support of the production chain in cow slaughter, a key segment in Brazilian economy and the country’s export agenda,” a note issued by the bank reads.
