BTG Pactual has been building its sustainable and impact investing capability for a decade. Since establishing a dedicated ESG division in 2015 and launching its sustainable and impact investing division in 2020, the bank has concentrated on one specific problem: connecting global capital with impact opportunities in Latin America, a market that has historically struggled to mobilise private finance at scale. The work of the past year suggests that ambition is starting to translate into volume.
The most significant institutional development in 2025 was the update to BTG’s sustainable financing framework, which was realigned with International Finance Corporation (IFC) guidelines for blue and biodiversity finance and the International Capital Market Association’s international standards. The revised framework expands eligible project categories to include biodiversity and blue finance – embedding social and environmental criteria more formally into the bank’s product structuring. BTG is one of the first Latam financial institutions to align its sustainable finance practices with IFC’s biodiversity guideline, it claims.
That framework underpins a strategic partnership with the IFC announced in 2025. The collaboration targets up to $1 billion in joint investments and private capital mobilised by 2028, combining IFC’s development finance expertise with BTG’s regional origination and distribution network. The scope covers co-financing, equity participation and fund investments across social, environmental and conservation initiatives, with a particular focus on nature-based solutions and Amazon bioeconomy projects.
Across initiatives … BTG has assembled a more complete impact investing offer than any comparable private bank in the region
The Amazon bioeconomy has become a distinct area of specialisation for the team. Through its minority stake in Systemica – a company that structures and commercialises carbon projects and other environmental assets – BTG has been developing nature-based solutions strategies for clients alongside its principal investment activity. BTG also joined the Amazon Finance Network, an alliance established by IDB Invest and IFC at COP28, designed to increase investment flows and mobilise capital across the Amazon region.
A separate structure addresses a different part of the bioeconomy. The Amazon Food & Forest vehicle is a blended finance fund designed to provide lower-cost financing to small and medium enterprises operating in Amazonian value chains including açaí, rubber, pau-rosa and cumaru. The fund’s initial target size is R$120 million ($23 million), with a potential scale-up to R$500 million subject to additional concessional capital. The structure uses a concessional first-loss tranche to reduce risk and lower financing costs for borrowers, with technical assistance provided by Impact Bank. It is a practical example of how BTG is engineering structures to make private capital viable in markets where risk-return profiles would otherwise deter commercial investors.
At the state level, BTG was selected in July 2025 – from a field of 11 national proposals – to manage the Espírito Santo Decarbonisation Fund, seeded with R$500 million from the state’s sovereign fund, Funses. The mandate covers investments in energy efficiency, solar power generation, biogas and reforestation, aligned with the state’s target of a 27% reduction in emissions by 2030 and carbon neutrality by 2050.
BTG’s capital markets capability has also produced notable impact transactions. As lead bookrunner, financial adviser and exclusive green certification adviser, the bank structured the R$395 million green bond issued by URE Barueri – a joint venture between Sabesp and Orizon Valorização de Resíduos – to finance Brazil’s first waste-to-energy plant. Separately, BTG acted as lead bookrunner on the R$24.4 billion project financing for Águas do Rio, the largest sanitation investment in Brazil’s history, serving more than 10 million people across 27 municipalities in Rio de Janeiro. The transaction received blue and sustainable debenture certification from Sustainalytics.
Across these initiatives – framework development, blended finance vehicles, carbon market participation, state-level mandates and landmark green bond transactions – BTG has assembled a more complete impact investing offer than any comparable private bank in the region.
