Hard infrastructure (including physical assets such as telecommunication assets, buildings, and equipment), and soft infrastructure (such as rules, standards, policies and processes) that enable financial transactions and other functions of the financial system to take place.
Sustainable financial landscape in Brazil
Brazil’s financial institutions and its central bank have been integrating sustainability issues in the financial system. This began with the Forest Code (2008) followed by the responsibility principles for environmental risks for financial institutions (2014). To develop assessment and monitoring instruments proportional to the complexity of their operations, financial institutions active in the country need to integrate environmental risks into their risk management processes. Working in this direction, on 1 July 2022, the Central Bank of Brazil launched its Sustainability Dimension 13. It is a comprehensive agenda for the alignment of financial regulation with international best practices covering climate risk assessment and management, financial incentives for green finance through collateral and liquidity management, and disclosures and reporting.
Source: CEPR, Schoenmaker, & Volz. (2022, October). Scaling up sustainable finance and investment in the Global South. CEPR. Retrieved December 22, 2022.