Brazil Securities Commission seeks evidence to assess voluntary ISSB sustainability reporting regime

The Brazil Securities Commission (CVM) has launched a public call for evidence to assess its regime for financial disclosures related to sustainability under International Sustainability Standards Board (ISSB) standards. The exercise follows the May 2026 removal of mandatory reporting for listed companies, which left adoption voluntary subject to regulatory conditions. The assessment will test whether existing disclosure obligations leave material information gaps and whether voluntary reporting delivers sufficient coverage, comparability and credibility. It also examines whether mandatory adoption could reduce issuers’ aggregate cost of capital by more than the additional compliance costs. Evidence is sought on disproportionate costs for smaller companies and whether requirements for reasonable assurance, reporting for at least three fiscal years and declaring full compliance discourage voluntary adoption. These are hypotheses to be tested, not findings or indications of a preferred policy. Potential alternatives include retaining or adjusting the voluntary regime, introducing mandatory or phased reporting, and integrating information into the Reference Form. Nonregulatory and self regulation approaches are also open for assessment. The evidence gathering precedes, but does not replace, any formal regulatory impact analysis. The CVM board will decide whether to undertake that analysis, its scope and the responsible organizational unit when preparing the 2027 regulatory agenda.