The Future Is Green
and Goes Beyond
the Carbon Market.
stockcapital.com.br
We publicly commit to sustainability by joining the UN Global Compact, incorporating advanced social and environmental responsibility practices into our operations and aligning our strategies with the UN's Sustainable Development Goals (SDGs).
Our goal is to create a positive and lasting impact on both society and the environment. This commitment reflects our determination to adopt essential values that guide our actions, which are based on the ten principles of the Compact, as outlined below:
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: Make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labour;
Principle 5: The effective abolition of child labour; and
Principle 6: The elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Uncourage the development and diffusion of environmentally friendly technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
The Sustainable
Development Goals
We reaffirm our commitment to the Sustainable Development Goals (SDGs) and to sustainability practices aligned with ESG principles, actively contributing to global efforts to foster a more inclusive, equitable and sustainable future. This commitment is reflected in the following goals:
Goal 5:
Gender Equality
Achieve gender equality and empower all women and girls.
Goal 6:
Clean water and sanitation
Ensure availability and sustainable management of water and sanitation for all.
Goal 8:
Decent work and economic
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Goal 13:
Climate action
Take urgent action to combat climate change and its impacts.
Goal 17:
Partnerships for the goals
Strengthen the means of implementation and revitalize the global partnership for sustainable development.
Commitments to Stakeholders
As signatories of the International Capital Market Association (ICMA), we are committed to adhering to the best international practices of governance, transparency, and responsibility in the capital markets.
We align with the ICMA guidelines for the issuance of financial instruments that integrate value with environmental, social, and governance (ESG) criteria, reinforcing our commitment to an innovative and sustainable financial market.
Our framework is based on essential principles, including:
1. Sustainable, Social, and Green Bond Guidelines (2021) – Regulated by ICMA, these guidelines establish best practices for the issuance of instruments in the capital markets.
2. Green and Social Loan Principles (2021) – Published by the Loan Market Association (LMA), these guidelines establish standards for bilateral and syndicated loans with financial institutions and multilateral agencies.
These principles structure our framework, ensuring compliance with the highest international standards of sustainability and social responsibility. As voluntary guidelines, they promote transparency and integrity in the raising of funds through ESG Financial Instruments (ESG-FIs), highlighting best practices within the sector.
We have developed our framework with a focus on clear and transparent communication with our stakeholders, ensuring that all stages of our projects and resource management meet the expectations and interests of our partners and society.
Our practices are based on the four key components of the ICMA Principles:
• Development of forest projects (REDD+) and carbon removal projects, projects for the recovery of degraded areas.
• Preservation and restoration of natural landscapes.
• Development of environmental education programs.
• Development of programs, educational assistance, and professional training for youth in at-risk communities.
• Due deligence and socio-environmental diagnosis.
• Technical and environmental feasbility analysis.
• Legal and regulatory compliance.
• Socio-environmental impact assessment.
The funds raised through the Sustainable Bonds issued by Stock Capital will be managed by the company’s Corporate Governance to finance new or existing projects.
Stock Capital will allocate the proceeds from the Sustainable Bonds to portfolios of eligible green and social assets and projects, selected in accordance with the eligibility criteria outlined in principle 1 (Use of Proceeds).
Stock Capital will maintain specific control performed by an area independent from the business area, with independent reporting to the Executive Committee, for the determination and supervision of the asset and project portfolio in relation to the guidelines described in this Framework and the amount of funds raised from the issuance of the Sustainable Bonds.
Monitoring will be conducted periodically through internal reports, using Stock Capital’s information systems to track and report on eligible projects or assets, as defined in the “Use of Proceeds” chapter.
If, for any reason, the value of the green and social asset portfolio is less than the total value of the Sustainable Bond issuance, Stock Capital will demonstrate that:
1. It has maintained the unallocated balance in its own cash or in high-liquidity and lowrisk Federal Government Bonds;
2. Stock Capital reiterates that the funds obtained from any issuance of Sustainable Bonds that fit within the prerogatives of this Framework will be used exclusively to finance assets and projects that meet the eligibility criteria described above.
As part of our transparency practice and commitment to best governance practices, it is our intention to annually disclose a consolidated report on our website. This report will contain detailed information about all funds raised through Sustainable Bonds as defined in our Environmental, Social, and Governance (ESG) Sustainability Framework. Our intention is to maintain this annual disclosure until all net proceeds from the Sustainable Bond are fully directed to finance eligible investments.
Additionally, we reserve the right to publish periodic updates at the company's discretion. As soon as the net proceeds are fully allocated to eligible projects and thereafter it meets the maturity of the Sustainable Bond, Stock Capital will provide investors annually on its website or in the annual sustainability report with the following information:
1. The amounts attributed to the Eligible Categories (as described above);
2. The percentage of net proceeds allocated to Eligible Investments;
3. The proportion of financed vs. refinanced eligible investments.
The reports will be subject to an independent review by an independent verifier or an external consultant specializing in ESG research and analysis, responsible for ensuring their integrity and accuracy. Furthermore, whenever possible, we will be able to disclose information related to the expected environmental or social impact projections of the Eligible Investments.
