The Brazil Securities Commission (CVM) has published a regulatory outcome assessment study on environmental, social and governance (ESG) disclosures in the Reference Form (FRE), evaluating the effects of Resolution CVM 59, which simplified the form and introduced ESG-related fields. The study finds that the measure expanded ESG transparency in the Brazilian capital markets, but that use of ESG information through the FRE remains relatively limited compared with other information sources and that reporting could be better harmonised as Resolution CVM 193 becomes fully operational. The assessment reviews the development of ESG regulation in Brazil, compares it with major international jurisdictions and considers adoption of International Sustainability Standards Board (ISSB) standards. Its analysis draws on discussions with managers, representative associations and self-regulators, survey indicators from 905 respondents mainly retail investors, a qualitative review of ESG disclosure quality in the FRE, and statistics on access to ESG fields by investors and other stakeholders. The study notes that Resolution CVM 59 sought to balance investor demand for more reliable and transparent information with issuers' compliance costs through a comply-or-explain model and by not requiring independent assurance. Its proposed regulatory directions include reviewing disclosure areas where quality is below expectations, considering removal from the FRE of fields that duplicate sustainability-related financial reporting under IFRS S1 and IFRS S2, reducing fragmentation by limiting disclosures to ISSB-based international standards, and separating ESG reporting from broader corporate governance reporting in regulatory filings.
Brazil Securities Commission (CVM) 2026-05-11
Brazil Securities Commission publishes review of ESG disclosure rules and proposes aligning reference form reporting with ISSB standards
The Brazil Securities Commission (CVM) has published an assessment of ESG disclosures in the Reference Form (FRE), finding that Resolution CVM 59 has expanded transparency but that use of this information remains limited and reporting could be better harmonised as Resolution CVM 193 becomes fully operational. Based on consultations, surveys and disclosure reviews, the study highlights the comply-or-explain model and lack of assurance requirements, and proposes reviewing low-quality disclosure areas, removing fields duplicative of IFRS S1 and IFRS S2, limiting disclosures to ISSB-based standards and separating ESG from broader corporate governance reporting.