pc
nid 92467
May 11, 2026
ggallwey@vixio.com
Brazil
Administrative Council for Economic Defense
financial services
108% of draft length
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1955 charsBrazil's Securities Commission Publishes Study on Environmental, Social and Governance Disclosures in Reference Forms
On May 11, 2026, the Comissão de Valores Mobiliários (CVM), Brazil's securities regulator, published a regulatory outcome assessment study examining environmental, social and governance (ESG) disclosures in the Reference Form (Formulário de Referência, or FRE). The study evaluates the effectiveness of CVM Resolution 59, which simplified FRE fields and introduced ESG-related disclosure requirements.
The study, conducted by the CVM's Economic Analysis, Risk Management and Integrity Assessment Division (ASA), forms part of the CVM's 2025 Regulatory Agenda, the Sustainable Finance Action Plan (PAFS) 2025–2026, and the Multi-Year Regulatory Outcome Assessment Agenda 2023–2026. The assessment examined whether Resolution 59's transparency requirements effectively addressed information asymmetry between companies and investors on ESG matters.
The study's methodology included: a chronology of ESG regulation in Brazil with international comparisons; consultations with asset managers, representative associations and self-regulatory organisations; a survey of 905 respondents, primarily retail investors; qualitative evaluation of ESG disclosure quality in the FRE; and analysis of access statistics for ESG fields. The study found that while Resolution 59 represented a significant step toward expanding ESG transparency in Brazil's capital markets, access to ESG information through the FRE remains relatively low compared to other information sources.
The regulatory outcome assessment proposes several directives, including: analysing disclosure segments with suboptimal quality; evaluating removal of redundant FRE fields duplicating IFRS S1 and S2 sustainability reporting standards; reducing fragmentation of ESG disclosures by limiting them to International Sustainability Standards Board (ISSB) standards; and separating ESG from broader corporate governance topics in regulatory reporting.
The full study is available on the CVM website.
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2102 charsBrazil Securities and Exchange Commission Publishes Regulatory Assessment of Environmental, Social and Governance Disclosure Framework
On May 11, 2026, the Brazilian Securities and Exchange Commission published a Regulatory Outcome Assessment evaluating the effectiveness of Environmental, Social and Governance (ESG) disclosure requirements introduced under CVM Resolution No. 59 for publicly traded companies’ Reference Forms (FREs).
The study assessed whether the ESG disclosure framework improved transparency and reduced informational asymmetries between issuers and investors through standardized disclosure of environmental, social and governance information. The assessment included engagement with market participants and self-regulatory bodies, investor surveys, qualitative analysis of ESG disclosure quality and evaluation of investor access to ESG-related information.
According to the CVM, Resolution No. 59 represented an important transitional step in Brazil’s ESG reporting framework by introducing structured ESG disclosure requirements while avoiding excessive compliance burdens on issuers through a “comply or explain” model and the non-mandatory use of independent assurance.
The report identified several areas for potential future regulatory and supervisory action, including:
increased regulatory scrutiny of ESG disclosure segments where reporting quality remains below the desired standard;
reduction of fragmentation across ESG disclosure documents;
greater alignment of sustainability disclosures with IFRS S1 and S2 standards adopted through the International Sustainability Standards Board (ISSB) framework; and
separation of ESG disclosure requirements from broader corporate governance reporting obligations.
The assessment also highlighted the implementation of CVM Resolution No. 193 , which established mandatory sustainability-related financial disclosures aligned with ISSB standards for publicly traded companies from fiscal year 2026 onward, with voluntary adoption available from 2024.
The CVM stated that the study forms part of its broader sustainable finance agenda and ongoing efforts to align Brazilian ESG disclosure practices with international sustainability reporting standards.