Do Brazil’s new ESG regulations go far enough?

Brazil's securities commission has issued new regulations on disclosure regarding ESG. Some think they are not clear or comprehensive enough

esg regulations brazil
Photo: Ivan Marc/Shutterstock

Amid the rise in importance of environment, social, and governance (ESG) principles in Brazilian markets and around the world, investors looked on in hope at the country’s securities commission CVM, waiting patiently for adequate regulations. And, at the end of 2021, the agency finally crossed ESG off its to-do list — but the regulated sector wasn’t exactly over the moon about the new rules.

The CVM resolution in question establishes broad disclosure requirements for Brazilian corporations, but many say the regulation falls short of its full potential by failing to enhance companies’ commitment to sustainable development goals. But the...

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