The Comissão de Valores Mobiliários (CVM), Brazil’s Securities and Exchange Commission, has teamed up with CDP, the world’s only independent environmental disclosure platform, to launch a data partnership aimed at enhancing corporate environmental reporting in Brazil.
This collaboration is a significant advancement as Brazil moves toward mandatory climate disclosures based on ISSB (International Sustainability Standards Board) standards. Notably, this is the first time data reported to CDP will be directly shared with a regulatory body, facilitating the monitoring of implementation challenges and informing supervisory activities.
CDP will provide CVM with climate data from over 1,100 Brazilian companies, representing 86% of the country’s total market capitalisation. This data, aligned with the ISSB’s climate standard (IFRS S2), will support compliance with Brazil’s new mandatory disclosure framework.
Following CVM’s decision to adopt ISSB standards, voluntary reporting will begin in 2024, with mandatory compliance starting on January 1, 2026. As the ISSB’s key global climate disclosure partner, CDP uses these standards as its foundation for climate disclosures.
The partnership promotes a “write once, read many” approach to environmental reporting, significantly reducing the reporting burden on Brazilian companies. Firms already disclosing through CDP will have their IFRS S2-aligned data automatically recognized by CVM, creating a seamless integration between international standards and local regulations.
“This partnership with CVM is a testament to the powerful ecosystems we can build through collaboration. Brazilian companies will benefit from a streamlined process, disclosing their data once to meet multiple objectives—from regulatory compliance to informing global investors and markets. By reducing the reporting burden, this partnership allows businesses to spend less time on paperwork and more time on driving meaningful, actionable progress on sustainability,” said Sherry Madera, CEO of CDP.
In addition to providing climate data, the agreement includes initiatives to bolster sustainable finance in Brazil. This involves training CVM staff and listed companies on delivering ISSB-aligned data, developing reporting guidelines, and promoting transparency in climate risk reporting. These efforts aim to ensure Brazilian capital markets meet evolving global sustainability standards while safeguarding investor interests.
“The Cooperation Agreement between CVM and CDP is a milestone in advancing sustainable finance and transparency within Brazil’s capital markets. Through this collaboration, we aim to educate market participants on sustainable practices while providing access to high-quality, ISSB-compliant climate data to help monitor the sector’s adaptation to new sustainability rules, said Nathalie Vidual, Superintendent of Investors Guidance and Sustainable Finance at CVM.
As part of the agreement, CDP will also provide insights into national and global trends in climate-related financial disclosure, promoting best practices across the market and conducting research on the broader impacts of climate disclosures on market dynamics and corporate strategy.