Summary
Details
- Brazil
CVM Resolution 193 is Brazil’s ISSB-aligned sustainability and climate disclosure regime for capital-market entities. It applies to publicly held companies, investment funds and securitisation vehicles supervised by CVM, and requires them to publish sustainability-related financial information (including climate risks and emissions) in line with local ISSB-based standards CBPS 01 and CBPS 02.
Deep dive
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Background
In October 2023, Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM) issued Resolution 193, creating a sustainability-related financial reporting regime based on the ISSB’s IFRS S1 and IFRS S2 standards. The rule moves Brazil from scattered ESG references to a single, accounting-style framework for climate and broader sustainability information. Earlier steps included CVM Resolution 59/2021, which added ESG and climate questions to the mandatory Formulário de Referência, and Resolution 80/2022, which restructured that form. Implementation is coordinated with the Brazilian Committee for Sustainability Pronouncements (CBPS), which issues local pronouncements CBPS 01 (general sustainability) and CBPS 02 (climate) based on IFRS S1 and S2. According to the IFRS Foundation, Brazil is one of the first countries to formally embed the ISSB global baseline in capital-markets rules.
Reporting requirements
Under Resolution 193, with effect from 1 January 2026, covered entities must prepare a “Sustainability-Related Financial Information Report” for the same period as their annual financial statements, using ISSB-based standards. Following CBPS 01 (IFRS S1-based), companies describe material sustainability-related risks and opportunities, structured around governance, strategy, risk management, and metrics and targets, and explain how these issues affect cash flows, access to finance and cost of capital.
CBPS 02 (IFRS S2-based) adds climate-specific content: exposure to transition and physical climate risks, climate-related opportunities, use of scenario analysis where applicable, and any transition plans and climate targets. Companies must disclose Scope 1 and Scope 2 greenhouse-gas emissions and, in most cases, relevant Scope 3, indicating methodologies, boundaries and any use of carbon credits.
Reports are submitted electronically through CVM’s Empresas.Net system, clearly identified and presented separately from financial statements, and must undergo independent assurance by a CVM-registered auditor—limited assurance initially, rising to reasonable assurance from 2026 onwards.
Current status and future outlook
Resolution 193 is in force in Brazil, with indications of robust implementation. A partnership between CVM and CDP will see the CDP share climate data from around 1,100 Brazilian companies, representing about 86% of local market capitalisation, all aligned with IFRS S2. This will support CVM’s supervision and monitoring of the new rules, while allowing companies to leverage CDP disclosures when preparing ISSB-compliant reports. The partnership also includes training, technical guidance and financial-education initiatives on ISSB-aligned reporting, strengthening Brazil’s sustainable-finance ecosystem and likely cementing its role as a regional reference point.
Resources
CVM Resolution 193 – sustainability-related financial information – Official Portuguese text and English translation.
CVM Resolutions 217, 218 and 219 (2024) – Make CBPS 01 and CBPS 02 mandatory and refine deadlines.
IFRS – “Brazil adopts ISSB global baseline” – ISSB summary of Brazil’s decision and timeline.
Mattos Filho – CVM requires companies disclose financial information related to sustainability – Practitioner overview of scope, phasing and assurance.
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