The Central Bank of Brazil approved a new disclosure standard for the Report on Social, Environmental and Climate-related Risks and Opportunities, replacing the previous framework for institutions in segments S1 to S4 of the National Financial System. The standard adds comparable metrics and indicators to enhanced qualitative disclosures and standardizes reporting on transition plans, where they exist, as well as institutions’ voluntary targets and commitments. Institutions must disclose exposures to greenhouse gas intensive sectors, including agricultural counterparties by crop and livestock type, and assess potential future exposure to drought and heavy rainfall risks by counterparties’ geographic location. Further disclosures cover counterparties subject to federal environmental fines or embargoes, operators of tailings dams at an emergency level, and rural credit involving the removal of native vegetation. Reports must remain on institutions’ websites for five years and be published as open data. The requirements take effect on Jan. 1, 2027, with phased implementation based on institutions’ regulatory segments.
2026-09-10Central Bank of Brazil
Central Bank of Brazil sets standardized social, environmental and climate risk disclosures from 2027
The Central Bank of Brazil approved standardized social, environmental and climate risk disclosures for institutions in segments S1 to S4. The framework adds comparable metrics covering emissions intensive sectors, physical climate risks and specified environmental exposures. Requirements take effect on Jan. 1, 2027, with phased implementation by regulatory segment.