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Sustainability reporting has become a 'voluntary' practice in Brazil this year, but will become a mandatory requirement by 2026.
January 26, 2024
By: Charles Thurston
Latin America Correspondent
Sustainability reporting has become a “voluntary” practice in Brazil this year, but will become a mandatory requirement for companies operating in the country as of January 2026. Under President Luiz Inácio “Lula” da Silva, who has vowed to make environmental protection a hallmark of his administration, Brazil has adopted sustainability disclosure standards set by the International Sustainability Standards Board (ISSB). “We continue to hear strong support for the ISSB’s Standards from regulators globally and I commend the Brazilian Ministry of Finance and Comissão de Valores Mobiliários for providing clarity to companies and investors in Brazil by setting out a clear roadmap towards mandatory adoption,” said ISSB chairman Emmanuel Faber, during a meeting of the IFRS Foundation in Panama, in October 2023. The IFRS Foundation is a not-for-profit responsible for developing global accounting and sustainability disclosure standards, known as IFRS Standards. The new Brazilian standards requirements were announced by the Ministério da Fazenda, the Brazilian Ministry of Finance, and by the Comissão de Valores Mobiliários (CVM), the Securities and Exchange Commission of Brazil.
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