Serasa Experian’s Agro Score and Score ESG are able to democratize access to financial resources and evaluate social and environmental criteria
ESG practices are already driving decisions in the agribusiness credit market. Because of this, the rural producers that act in socio-environmental compliance have gained more visibility in front of their creditors, who have started to evaluate criteria that go beyond a good payer profile to grant financial resources. This conversation will be promoted by Serasa Experian, on May 26, within the program of the 9th Coffee Dinner & Summit, held by the Council of Coffee Exporters of Brazil (Cecafé).
In addition to providing reliable information to the market and financial institutions, Serasa Experian also supports the credit journey of coffee growers, since 75% of all coffee originating in Brazil goes through the company’s risk analyses. Considering all crops, the company has already carried out socio-environmental and credit evaluations of more than 3 million producers, as well as of 100,000 rural properties.
To promote these assessments, the company developed the Agro Score and Score ESG, solutions that mitigate risks, enable scalability, and generate secure partnerships. “Inserting more people in the agricultural credit market in order to democratize it is one of our objectives. In order to make this process possible, we combine solutions that provide lenders with fast and assertive risk analysis so that proposals for access to quality financial resources can actually reach rural producers,” explains Marcelo Pimenta, head of agribusiness at Serasa Experian.
The Agro Score and the ESG Score are scores that complement each other. For example, in a real scenario of more than 15,000 coffee producers analyzed, it was identified that 89.7% of them were well positioned in both evaluations, considering a cut-off point of 600 for Agro Score and 400 for ESG Score.
Still, there are also 1.6% of producers that rank well on the Agro Score but not on the ESG Score. In other words, approximately 90 out of every 100 producers analyzed in that client portfolio are good payers and follow ESG practices, but there are two others that have good credit risk profiles and a bad socio-environmental profile.
Thus, although there is a strong relationship between default and ESG risks, some producers may lose access to credit at a time when financial institutions are beginning to evaluate socio-environmental issues.
COFFEE DINNER & SUMMIT
Organized by Cecafé, the event stands out as one of the main global forums of the coffee sector, bringing together, every two years, around a thousand people and leaders of all segments of Brazilian and world coffee growing to promote business prospection, create commercial opportunities, share experiences and network, bringing together agribusiness players and coffee lovers in a spacious and cozy environment.
Under the theme “Production growth: its challenges and opportunities in times of ESG”, the ninth edition of the Coffee Dinner & Summit aims to promote debate and reflection on the economic, climatic, regulatory, and logistical challenges, and especially on the sustainable initiatives developed by Brazil and other coffee nations, which respect the criteria of socio-environmental governance. Those interested can obtain more information at https://coffeedinner.com.br/.
ZERO CARBON EVENT
Honoring its pillar of action focused on socio-environmental responsibility, sustainability, and food safety, Cecafé obtained the Green Seal https://ecooar.com/selo-verde/201/evento-9-coffee-dinner-summit-2023 from the reforestation startup Ecooar Biodiversidade for neutralizing the emission of greenhouse gases (GHG) with the 9th Coffee Dinner & Summit.
By calculating the carbon emissions generated during the two days of the event, the Council offset more than 2.5 tons of CO2 by planting native trees, contributing to the reforestation of Permanent Preservation Areas (APP) at Fazenda Santa Emília, a coffee producer in Garça (SP), where the regeneration of the environment and the preservation of spring waters benefit, directly and indirectly, about one million people in the 62 cities in the region.
INSTITUTIONAL SUPPORT
The 9th Coffee Dinner & Summit has the national institutional support from the Brazilian Coffee Industry Association (ABIC), the Brazilian Soluble Coffee Industry Association (Abics), the Brazilian Specialty Coffee Association (BSCA), the Brazilian Confederation of Agriculture and Livestock (CNA), the National Coffee Council (CNC), and the Coffee Museum; the international support from the European Coffee Federation (ECF), the National Coffee Association (NCA), the Paris Coffee Show, Rio Coffee Nation, and the Swiss Coffee Trade Association (SCTA); and the governmental support from the states of São Paulo and Espírito Santo.
SERASA EXPERIAN
Serasa Experian is the leading provider of business intelligence services in Latin America. In Brazil, it is synonymous with solutions for all stages of the business cycle, from prospecting to collection, offering organizations the best tools. With deep knowledge of the Brazilian market, he combines the strength and tradition of the Serasa name with Experian’s global leadership. Established in 1968, it joined the Experian Company in 2007. It answers online/real-time to 6 million queries per day, helping 500 thousand direct and indirect clients to make the best decision at any business stage.
Constantly focused on innovative solutions, Experian has contributed to the transformation of the information solutions market by continuously incorporating the most advanced intelligence and technology resources. For more information, visit www.serasaexperian.com.br
EXPERIAN Experian is a global leader in information services. In the big moments of life – from buying a house or a car, to sending your child to college, to growing your business by connecting with new customers – it empowers consumers and businesses to manage their data with confidence. The company helps people take control of their lives and access financial services, businesses make smarter decisions and prosper, lenders lend more responsibly, and organizations prevent identity fraud and crime.
In 30 countries, Experian employs about 21,700 people and every day invests more in new technologies, talented professionals and innovation to help every customer maximize every opportunity. With corporate headquarters in Dublin, Ireland, Experian plc is listed on the London Stock Exchange (EXPN) and makes up the FTSE 100 index. Learn more at www.experianplc.com or visit our innovation hub for the latest company news.
ABOUT CECAFE
Founded in 1999, Cecafé actively represents and promotes the development of the coffee exporting sector at the national and international levels. The entity offers support to the segment’s operations through the exchange of data intelligence, strategic and legal actions, and citizenship and socio-environmental responsibility projects. Currently, it has 118 commercial companies, exporters, trading companies, cooperatives, industries and producers, which represent 96% of the national shipments and send, annually, the product to more than 120 destinations.
More information to the press:
Cecafé – Communication Management
Paulo André Kawasaki
(61) 98114-6632 / pauloandre@cecafe.com.br
