New CVM Resolutions on the disclosure of sustainability and climate information are published
In addition, article 5 of CVM Resolution 193 was amended, providing for new deadlines for the submission of financial information related to sustainability in the fiscal years of voluntary adoption.
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On October 29, 2024, the Brazilian Securities and Exchange Commission (CVM) published Resolutions 217, 218 and 219, which, in short, bring the following new features:
- CVM Resolution 217: Makes CBPS Technical Pronouncement No. 01 mandatory for publicly traded companies, which defines the general requirements for disclosing financial information on sustainability and correlates with the International Sustainability Standard – IFRS S1.The standard requires the entity to disclose information on all risks and opportunities related to sustainability that could reasonably affect its cash flows, access to financing or cost of capital in the short, medium or long term. Resolution came into force on November 1, 2024, and applies to fiscal years beginning on or after January 1, 2026.
- CVM Resolution 218: Makes CBPS Technical Pronouncement No. 02 mandatory for publicly traded companies, which defines the general requirements for climate-related disclosures and correlates with the International Sustainability Standard – IFRS S2.The standard requires the entity to disclose information about the risks and opportunities related to climate change for which there is a reasonable expectation that they could affect the entity’s cash flows, access to financing or cost of capital in the short, medium or long term. Resolution came into force on November 1, 2024, and applies to fiscal years beginning on or after January 1, 2026.
- CVM Resolution 219: Amends art. 5 of CVM Resolution 193 to define new deadlines for the submission of financial information related to sustainability in the fiscal years of voluntary adoption.According to the new regulations, entities must file the financial information report related to sustainability through an electronic system available on the CVM’s website, observing the following deadlines:
(a) In financial years of voluntary adoption: until the last day of the 9th (ninth) month following the end of the financial year;
(b) In the first fiscal year of mandatory adoption: on the same date of delivery of the Reference Form – FRE; and
(c) From the second fiscal year of mandatory adoption: within 3 (three) months of the end of the fiscal year or on the same date as the financial statements are sent, whichever comes first. It came into force on November 1, 2024.
The new Resolutions therefore standardize and strengthen transparency in ESG practices for publicly traded companies, meeting the growing market demand for environmental, social and governance information, as well as positioning companies in a global scenario focused on sustainability.
Our Environment, Climate Change and Sustainability team, as well as our Capital Markets team, are following the issue closely and are available should you or your company have any doubts and/or questions about the new provisions.
