On 23 October, Peru’s Congress passed the BIC Peru Law, which recognizes private companies that voluntarily produce positive impacts, by combining their economic activity to produce social and environmental benefits.

The main objective of the project “Support for the Benefits and Collective Interest Law (BIC) in Peru” was to support the enactment of the BIC Law. The law recognizes companies’ aims and impact on the economy at a time when the business sector should work with the Peruvian government to provide public goods that reduce environmental and social needs. The project was implemented by Sistema B, partnering with the NGO Libélula, and was supported by the Swiss Agency for Development and Cooperation (SDC).

This law is one of the first steps to be taken to recognize such businesses and marks a clear trend towards the consolidation of a business ecosystem that works with Peruvian government authorities to reduce gaps and fulfil national and international commitments.

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These will include tackling the challenges of COVID-19 on Peruvians’ health and welfare, aligning public-private interventions with economic recovery in line with the Sustainable Development Goals (SDGs), reducing greenhouse gas emissions through Peru’s commitments to the Paris Agreement, the United Nations Framework Convention on Climate Change, the Convention on Biological Diversity, and the Convention to Combat Desertification.

A number of stakeholders encouraged Congress to pass the BIC Bill. They joined forces to publicise the importance of the law, and to attract various other stakeholders who could benefit from the recognition of BIC companies, because they help to comply with the SDGs. Union representatives, entrepreneurs, universities, business associations, companies and the media were invited to contribute to the debate, further the understanding of the law and alert other sectors to it.

Next steps

Now the BIC Law has been passed, the Executive must enact and regulate it.  SDC will continue to support the Sistema B Peru team, in order to continue pooling efforts and consolidating triple impact action in the business sector.

For the law to be regulated, various stakeholders will need to work together to link up needs, interests and objectives that make sustainability a priority for making public-private partnerships to provide public goods that reduce environmental and social needs.

Links of interest:
Facebook BIC Law

Agencia Andina, Congreso: Pleno aprueba marco jurídico de Sociedad de Beneficio e Interés Colectivo