The Brazilian Pension Funds Authority (PREVIC) used the IV High-Level Dialogues of the Inter-American Conference on Social Security in Mexico City to present Brazil’s approach to sustainable investing for closed pension funds and to flag that it is developing new regulatory proposals aligned with environmental, social and governance (ESG) criteria. In remarks delivered by PREVIC’s coordinator-general for investment rules, Claudemiro Correia Quintal, the authority positioned closed pension funds (Entidades Fechadas de Previdência Complementar, EFPC) as long-term capital providers that can support the transition to a green economy, arguing that investment guidelines should consider retirement outcomes and quality of life. The presentation linked ESG considerations with “green taxonomy” classification systems and noted that Brazil has promoted socio-environmental responsibility among EFPC since 2009, including by embedding ESG considerations into regulation and pension fund risk analysis and by issuing PREVIC’s Best Practices Investment Guide in 2019 with ESG recommendations. Quintal identified key challenges for the sector as the lack of a standardized ESG model, the need for regulatory refinement, and the trade-off between sustainability and portfolio returns. PREVIC indicated that, as part of its work on new proposals this year, it is seeking greater transparency from pension funds on ESG impacts and how these affect the entity.

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