Brazil steps back from mandatory sustainability reporting
Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), has amended its regulation requiring public companies to provide annual ISSB-aligned sustainability disclosures, moving from a mandatory to a voluntary system. Mandatory reporting had been due to apply to 2026 data, with disclosures beginning next year.
The shift is not a full retreat, however. Companies that choose not to report are required to publicly justify that decision at the time of filing their annual financial statements in 2027, creating a comply-or-explain framework. Those that do proceed must follow the Brazilian Sustainability Pronouncements Committee (CBPS) standards, which are based on IFRS S1 and S2, and must commit to at least three consecutive years of reporting. Companies wishing to stop reporting must also announce that decision in the fiscal year before they do so.
Read the Resolution here.
