The Brazilian Pension Funds Authority (PREVIC) held a further round of stakeholder meetings to develop draft rules that would embed environmental, social and governance (ESG) practices in the investment portfolios of closed pension funds (Entidades Fechadas de Previdência Complementar, EFPC). The initiative is intended to produce participatory, transparent requirements aligned with the investment guidelines set out in National Monetary Council (CMN) Resolution 5,202/2025. Between 25 and 27 June, PREVIC engaged technical commissions and EFPC in segments S2 and S3, including debates with Abrapp and Ancep’s accounting technical commission, Abrapp’s investment commission, and investment directors from S2 and S3 funds. The draft approach described includes requiring EFPC to map their current ESG practices, set expectations for outsourced asset managers and financial product providers, and define how service providers will be used for asset selection and monitoring, with implementation structured by materiality and relevance. PREVIC also indicated that EFPC workplans could include ESG risk and impact analysis across key portfolios with up to three levels of implementation, split by asset class (credit, equities and alternatives such as private equity and real estate); governance of pension fund investment functions was highlighted as a key ESG consideration, particularly for smaller and less complex entities. Segment S1 funds were consulted separately on 13 June and proposed adding an “Integrity” criterion. EFPC in segments S2 and S3 have until 11 July to submit their main practices and provide suggestions, criticisms and comments on PREVIC’s draft proposal.

Original source View in tracker