The Brazilian Pension Funds Authority (PREVIC) has outlined a November 13 session on applying Ordinance PREVIC No. 728/2026 to environmental, social and governance (ESG) risk assessments in closed supplementary pension entities’ investments. The second session in its previously announced November series will clarify the rules’ practical application. ESG assessments apply specifically to investment management, with safety, profitability and fiduciary responsibility remaining the central principles for allocation decisions.
The ordinance establishes rules for new investment processes while allowing entities to determine their own adaptation schedules for assets already held. Each entity’s ESG plan will organize its assessment, priorities and institutional goals. The session will explain the plan’s minimum requirements and approval process, alongside reporting requirements that apply proportionately according to entities’ size and segment.
Risk analysis considers asset relevance and uses double materiality, which PREVIC previously highlighted for pension investment policies. Assessments examine both how external factors affect investments and how investments affect society and the environment. The session will also clarify that the ordinance’s annex provides illustrative risks rather than requiring every listed risk to be assessed for every asset class.