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Sustainability: Incorporating Social and Environmental Variables in the Analysis of Credit in Brazil

20 Pages Posted: 18 Jan 2013  

Luiz C. J. Perera

Mackenzie Presbyterian University

Aida Maria M. Milani

Mackenzie Presbyterian University

Roberto Borges Kerr

Mackenzie Presbyterian University

Marco Antonio F. Milani Filho

Mackenzie Presbyterian University

Date Written: July 18, 2012

Abstract

This work is aligned with the Equator Principles that are minimum criteria for granting of credit to ensure that the funded projects are developed in a socially and environmentally responsible way. The objective of this paper is to verify the relevance of social and environmental variables included in the credit analysis. The main results show the relevance of social and environmental variables for the improvement of credit score models. It might be inferred also that models should provide more robust results as the social and environmental variables are standardized and incorporated into the audited financial statements of companies.

Keywords: Brazil, Sustainability, Social Variables, Instrumental Variables, Environmental Databases, Experimental Methods, Credit Analysis, Equator Principles

JEL Classification: A13, C210, C250, C260, C360, C830, C900, G170, G210, G240, G280, M410, Q560

Suggested Citation

Perera, Luiz C. J. and Milani, Aida Maria M. and Kerr, Roberto Borges and Milani Filho, Marco Antonio F., Sustainability: Incorporating Social and Environmental Variables in the Analysis of Credit in Brazil (July 18, 2012). Available at SSRN: https://ssrn.com/abstract=2201630 or http://dx.doi.org/10.2139/ssrn.2201630

Luiz Carlos Jacob Perera (Contact Author)

Mackenzie Presbyterian University ( email )

Rua da Consolação 896
São Paulo, São Paulo 010302907
Brazil
+55.11.21148273 (Phone)
+5511.21148836 (Fax)

HOME PAGE: http://www.jperera.pro.br

Aida Maria M. Milani

Mackenzie Presbyterian University ( email )

Rua da Consolação 920
São Paulo, 010302907
Brazil

Roberto Borges Kerr

Mackenzie Presbyterian University ( email )

Rua da Consolação 920
São Paulo, 010302907
Brazil

Marco Antonio F. Milani Filho

Mackenzie Presbyterian University ( email )

Rua da Consolação 920
São Paulo, 010302907
Brazil

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