Initiative aims to promote transparency, fairness and positive impacts in relations between companies and local communities 

Fundo Vale recently took part in an event called Fair Contracts in the Amazon, to discuss an initiative designed to make commercial relations between companies or investors operating in the Amazon and local communities fairer and more transparent. During the meeting, the results of this project were presented, and a space was created for the co-creation of engagement strategies​.  

This initiative is coordinated by SBSA Advogados, a pioneering law firm that specializes in assisting civil society organizations and impact businesses, with more than 20 years in the legal market. SBSA’s Advisory Board includes organizations such as the Amazon Conservation and Sustainable Development Institute (Idesam), the Amazon Environmental Research Institute (IPAM), Origens Brasil and the Sustainable Connections Institute (Conexsus). 

The project’s methodology arose from extensive mapping work covering more than 30 initiatives related to contracts between inequal parties, as well as a review of 170 books and articles. Interviews with experts working in the Amazon region have also been carried out as part of the project. 

The methodology is underpinned by three fundamental principles: 

• It’s only fair if you can understand it: Ensure that all parties clearly understand the terms of the contract. 

• It’s only fair if it reduces asymmetries: Negotiations should be carried out honestly and openly, with the aim of reducing asymmetries. 

• It’s only fair if it improves people’s lives and the environment: Partnerships should improve the lives of the people involved and generate social and environmental benefits. 

These principles are accompanied by nine basic practices, including the need for balanced financial solutions, respect for human rights and ensuring stable relationships​. 

“This project is of great interest to Fundo Vale because it has the potential to transform the way companies and investors interact with Amazonian communities, promoting fairer, more transparent and more sustainable partnerships. The methodology contributes to achieving the desired results and impacts in Vale’s and Fundo Vale’s 2030 Forest Goal theories of change, encouraging a fair distribution of the financial benefits of enterprises and a regenerative economy, based on valuing natural resources and the fair, equal and equitable distribution of their benefits throughout the value chain,” said Juliana Vilhena, Fundo Vale’s strategy, management and impact manager. 

The methodology will be formally launched in Manaus during the Amazon Impact Investing and Sustainable Business Festival (FIINSA), which will take place between October 22 and 24, sponsored by Fundo Vale. To find out more, visit SBSA Advogados’ social networks.