Market roundup: Stock market diversity rules a go in Brazil

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Brazil’s securities commission greenlights diversity rules

The Brazilian Securities Commission (CVM) on Thursday approved measures proposed by B3, the manager of the São Paulo stock exchange, to promote diversity in the top management of listed companies. They will take effect in August.

New rules. By 2026, companies at all listing levels on the Brazilian stock exchange must have at least one woman and one member from “underrepresented communities” on their board or in senior management.

Why it matters. According to data reported in June by more than 300 of the 416 companies currently listed on B3, 55 percent have no women among their statutory directors, and 36 percent do not have any female participation on their boards.

The lack of racial diversity in listed companies is even more pronounced: 336 of them have no black officers, and 327 have no black board members.

Overview. The rules were posted for public comment between August and September last year and received more than 250 submissions. With the watchdog’s approval, B3 has issued a new set of instructions to guide issuers.

One of the changes to the original text is the inclusion of indigenous people among the minority groups, alongside black people, members of the LGBTQIA+...

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.