Public companies in Brazil will be required to provide annual sustainability and climate-related disclosures starting in 2026, according to a new announcement by Brazil’s Securities and Exchange Commission (CVM) and Ministry of Finance.
According to the CVM, the new reporting requirements will be based on the recently published sustainability and climate-related disclosure standards issued by the IFRS Foundation’s International Sustainability Standards Board (ISSB). The ISSB was launched in November 2021 at the COP26 climate conference and aims to develop IFRS Sustainability Disclosure Standards, driven by demand from investors, companies, governments and regulators to provide a global baseline of disclosure requirements to enable a consistent understanding of the effect of sustainability risks and opportunities on company prospects.
Brazil is the latest in a series of jurisdictions to announce the adoption of the new standards, following recent announcements by the UK and Australia. In July, the IOSCO, the leading international policy forum and standards setter for securities regulators, called on regulators to incorporate the standards into their sustainability reporting regulatory frameworks.
The new reporting requirements form part of Brazil’s Ecological Transformation Plan, launched earlier this year, and are aimed at driving the transition to a green economy; this includes USD350bn in planned public and private infrastructure investment.
According to the CVM, public companies and investment funds will be able to begin sustainability reporting following the IFRS Standards in 2024 on a voluntary basis, with mandatory reporting for public companies to begin in 2026. From 2027, sustainability reporting will be required within three months after the end of the fiscal year or simultaneously with the release of financial statements, whichever occurs first.
The CVM added that the new reporting requirements would help global investors assess risks and opportunities, reduce information costs, optimise capital allocation and enable decisions aligned with sustainable and responsible values.
Source: Brazil to require mandatory sustainability reporting from 2026 – ESG Today
About the Authors
Associate Director, Investment Banking
Prachurjya has over 16 years of experience in investment banking with Acuity Knowledge Partners. At Acuity, he has led sector and product-specialist pilot teams across Capital Markets, ESG, Debt Advisory, Loan Syndications, Metals & Mining and Real Estate. He has been actively involved in setting up and on-boarding new ESG Advisory, ESG DCM and Sustainable Finance teams for various bulge bracket investment banks. Within DCM and Rating Advisory, he has been instrumental in helping the clients achieve over 30% in annual savings on both regular and adhoc tasks through standardization of the outputs and deployment of our proprietary BEAT tools.
Delivery Manager, Investment Banking
Puja has 6 years of extensive experience in ESG, Climate Change & Sustainability and she is supervising the ESG team at Acuity. She also has diverse experience in conducting ESIA, EHS compliance audits, ESG Risks and Controls, EHS & ESG Due Diligence assessments. Prior to joining Acuity, she was working with companies like KPMG Global Services, EY India and ERM India. She has expertise in provisioning extensive research requirements for clients through preparation of Peer Benchmarking, Target Compilation, Sustainability report, Sustainable Finance Updates and Sectoral ESG Thematic Detailing Engagement.
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