Brazilian market regulator CVM and CDP announce first-of-its-kind partnership to accelerate climate compliance in the capital market

Comissão de Valores Mobiliários (CVM), Brazil’s Securities and Exchange Commission, and CDP have announced a data partnership to streamline corporate environmental reporting in Brazil.

The collaboration marks a significant step forward as Brazil transitions to mandatory climate disclosures based on the ISSB (International Sustainability Standards Board) standards. It is the first instance where data reported to CDP will be directly shared with a regulator, supporting the monitoring of implementation challenges and impacts in the adoption of the rules, while also informing the Authority's supervisory activities.

CDP will provide CVM with climate data from approximately 1,100 Brazilian companies, including firms representing 86% of the country’s total market capitalization. The data, aligned with the ISSB’s climate standard (IFRS S2), will be used for internal studies to facilitate the learning of Brazil’s new mandatory disclosure framework.

This follows CVM’s recent decision to adopt ISSB standards, with voluntary reporting commencing in 2024 and mandatory compliance taking effect on January 1, 2026. As the ISSB’s key global climate disclosure partner, CDP's climate disclosure uses the ISSB's climate standard as its foundational baseline.

The partnership advances the model of environmental disclosure, facilitating the mapping of best practices. Companies already disclosing through CDP will have their data aligned to the IFRS S2 standard, being able to serve as informational input for the final preparation of sustainability reports in compliance with local regulatory requirements. "This partnership with CVM is a testament to the powerful ecosystems we can build through collaboration," said Sherry Madera, CEO of CDP.

Sustainability-Related Financial Information Reports must be submitted to the CVM

It is important to highlight that publicly traded companies will still be required to submit the Sustainability-Related Financial Information Report to the CVM through the Empresas.Net System, based on the international standards issued by the ISSB (IFRS S1 and S2). This report must undergo assurance by an independent auditor registered with the CVM, as outlined in CVM Resolution 193. 

Sustainable Finance in focus

Beyond the provision of climate data, the agreement includes initiatives to strengthen sustainable finance in Brazil. This includes training of staff at CVM and listed companies on delivering ISSB-aligned data, as well as on sustainability disclosure focused on the needs of the financial market for listed companies in the country, the development of reporting guidelines, financial education, and knowledge sharing to promote transparency in climate risk reporting. These efforts will ensure that Brazilian capital markets are equipped to meet evolving global sustainability standards while protecting investor interests. 

 "The Cooperation Agreement between CVM and CDP is a milestone in advancing sustainable finance and transparency within Brazil’s capital markets," said Nathalie Vidual, Superintendent of Investors Guidance and Sustainable Finance at CVM. "Through this collaboration, we aim to educate market participants on sustainable practices while providing access to high-quality, ISSB-compliant climate data to help monitor the sector's adaptation to new sustainability rules."  As part of the agreement, CDP will provide CVM with insights into national and global trends in climate-related financial disclosure, promoting best practices across the market. The partnership will also drive research into the broader impact of climate disclosures on market dynamics and corporate strategy.  

ENDS

About CDP

CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 700 financial institutions with over $142 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 24,000 organizations around the world disclosed data through CDP in 2023, with more than 23,000 companies – including listed companies worth two thirds global market capitalization - and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative.  

About CVM

The CVM was created by the Capital Markets Law (Law 6,385/76) as an autonomous entity linked to the Ministry of Finance. It is an independent administrative authority with its own legal personality and assets, whose mission is to supervise, regulate and develop the securities market in Brazil, as well as to enforce related rules and regulations.   

For more information, or exclusive interviews, please contact: 

• Samika Meshram-Jasinski: samika.meshram@cdp.net