Resolution No. 4,327 of April 25, 2014

Resolution No. 4,327 establishes the guidelines that financial institutions and other entities authorized by the Central Bank of Brazil must observe in developing and implementing their Social and Environmental Responsibility Policy (PRSA). It defines the principles of relevance and proportionality, guiding the management of social and environmental risks in financial operations. The framework requires governance structures, monitoring mechanisms, advisory committees, and specific action plans to mitigate social and environmental impacts. It also mandates a five-year review of the policy and the recording of socio-environmental loss data for at least five years. Its objective is to integrate socio-environmental responsibility into risk management, products, services, and stakeholder relations within the Brazilian financial system.