CVM introduces resolution mandating sustainable reports from 2026
Under this resolution, companies will be required to submit the sustainable reports annually, always in May, alongside the reference form
The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários, CVM) unveiled a resolution on this friday (20), stipulating that publicly-traded companies must begin publishing annual special reports containing sustainability-related financial information, starting in 2026.
This initiative is a pivotal component of the government’s officially designated ecological transformation plan, referred to as the “green agenda.”
Mandatory reports with transition period
Under this resolution, companies will be required to submit these sustainability reports annually, always in May, alongside the reference form. However, for the upcoming year and 2025, the submission of these reports will be voluntary.
Subject to potential modifications following a public consultation, the rule’s primary objective is to empower investors to make decisions aligned with sustainable criteria. By offering more transparent insights into opportunities and risks associated with each company’s operations, these reports will enable investors to adopt sustainability-focused strategies.
During the presentation of the CVM’s resolution at the Finance Ministry in São Paulo, Minister Fernando Haddad emphasized the rule’s objective to position Brazil at the forefront of global advancements in sustainable practices, thereby attracting investments. Haddad highlighted that Brazil was the first nation to embrace these sustainable accounting standards.
He took the opportunity to enumerate the government’s achievements in the green agenda, including the Senate’s approval of a regulated carbon market and the commencement of a public consultation on sustainable taxonomy. Furthermore, he announced the conclusion of the public consultation on new market accounting rules, with forthcoming publication.
Haddad underscored that it would not be reasonable to compel the immediate disclosure of sustainability reports so late in the year. Hence, a transition period has been implemented, during which report publication is not obligatory.