The Brazilian Pension Funds Authority (PREVIC) convened investment managers from the nine largest closed pension funds in the S1 segment to begin a debate cycle intended to inform draft rules on environmental, social and governance (ESG) considerations in investment portfolios, as required by Article 10 of National Monetary Council Resolution 5202/2025. The Norms Directorate is preparing text for inclusion in the next update to PREVIC Resolution 23/2023, with a public consultation expected in the second half of 2025. Initial proposals presented to participants envisaged an ESG risk and impact analysis approach for major portfolios with up to three levels based on relevance and materiality, at minimum broken down into credit, equities and alternatives (including private equity and real estate). Closed pension funds (EFPCs) would be expected to select, on an objective basis, the ESG topics they prioritise, with examples including climate-related effects aligned with the Task Force on Climate-related Financial Disclosures (TCFD), social indicators (gender, race and disability) and use of a green taxonomy. The S1 funds were asked to submit suggestions and supporting documents by 27 June 2025. Further meetings are planned on 27 June in Rio de Janeiro with small and medium-sized foundations and with Abrapp’s Investment and Sustainability Technical Commission, Anapar and APEP, feeding into the forthcoming consultation draft.

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