BTG Pactual announces the acquisition of a stake in Systemica, a developer of carbon projects and environmental assets for reducing GHG emissions

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May 15, 2023, 14:00 ET

The partnership enables the bank to expand its operations in the carbon credit market with solutions for both the domestic and global markets

SÃO PAULO, May 15, 2023 /PRNewswire/ -- BTG Pactual (BPAC11), the largest investment bank in Latin America, signed an investment agreement for acquiring a minority stake in Systemica, a company that structures, develops, and implements projects for reducing greenhouse gas (GHG) emissions, in addition to trading the environmental assets generated. The operation aims to contribute to a transitional economy and join efforts for advancing the carbon credit market, contributing to the integrity, quality and international reputation of carbon projects in Brazil and Latin America.

Demand for a low-carbon economy has been growing internationally, with financial institutions and large companies committing to reduce emissions and structuring strategies for decarbonizing their operations. From 2020 to the beginning of 2023, the number of companies committed to reducing emissions formalized under Science Based Targets (SBTi) — which shows how actions are based on science for combatting climate change — grew more than 10 times, which materializes in terms of ever-increasing volumes of retired carbon credits, according to Trove Research.

In terms of financial volume, increased demand caused the global voluntary carbon market to grow almost fourfold from 2020 to 2021, reaching close to US$ 2 billion in traded credits, according to Ecosystem Marketplace. Last year, the market continued to grow and, by 2030, the expectation is to reach a global volume of US$ 10 billion to US$ 40 billion, according to BCG. And Brazil is one of those markets with the greatest potential for offering assets to the global market, with a significant increase in international capital.

"The partnership between BTG and Systemica joins two top players who are references in their respective areas of activity, to foster the still incipient carbon credit market in Latin America and create a platform for environmental assets. The investment speaks directly with the bank's ESG & Impact Investments agenda, which once again takes the lead in encouraging the financial market to adopt practices and develop products that contribute to a low-carbon economy" says BTG Pactual CEO, Roberto Sallouti.

Systemica CEO, Munir Soares, sees positive synergies with BTG, mainly because it is a credible institution that will be important for expanding the company's capability to operate and generate impactful business. "The alliance with BTG Pactual will provide the support of a large financial institution and add further quality to the carbon credits sold, as well as contribute to developing our environmental assets and solutions ecosystem, as well as the market itself, on a larger scale", Soares adds.

Systemica focuses on developing projects for the voluntary carbon market (REDD+, Reforestation, and other Nature-Based Solutions), but sees great potential in other environmental services that develop as products with possible growing demand, such as biodiversity conservation, carbon credits linked to sustainable agriculture, and the potential plastic market. In addition, Systemica has extensive experience in developing public policies and projects for Public-Private Partnerships, Finance, and Investments, and has a multidisciplinary team that enables implementing customized methodologies for projects in the public sector, NGOs, and private companies.

Completion of the transaction is subject to verification of certain preceding conditions, including obtaining the necessary regulatory approval from the Central Bank of Brazil.

About BTG Pactual

BTG Pactual (BPAC11) is the largest investment bank in Latin America and operates in the Investment Banking, Corporate Lending, Sales & Trading, Asset Management, Wealth Management, and Banking markets. BTG Pactual has established itself as one of the country's most innovative investment platforms, with a complete transactional bank to support its clients' life moments and build their history. In addition, it is a pioneer in the ESG agenda, with financial products that support transition to a greener and more sustainable economy. The institution is internationally recognized and awarded, and has more than 6,000 employees in Brazil, Chile, Argentina, Colombia, Peru, Mexico, United States, Portugal, and England.

About Systemica

Systemica is headquartered in São Paulo, with offices in Belém and Manaus, as well as strategic partnerships in other Brazilian states, and develops projects for generating carbon credits and other environmental assets, aiming to reduce GHG emissions and generate benefits for biodiversity and communities. It is committed to generating a positive impact, combining economic, social and environmental returns.