CVM Reverses Mandatory Sustainability Reporting Rule

Overview

• On May 29 the Comissão de Valores Mobiliários issued Resolução 244, signed by interim president João Accioly, that revoked the prior rule requiring IFRS S1/S2‑aligned sustainability financial reports for listed companies.
• Resolution 244 makes reporting fully voluntary for exercises starting in 2026 and adds transitional procedures that require companies that opt out to publish a market notice from January 1, 2027 explaining their decision.
• The rule keeps conditions for firms that choose to publish: an explicit statement of adherence to CBPS and ISSB standards, publication for at least three consecutive years, filing deadlines tied to annual reports, and assurance by an auditor registered with the CVM.
• Major market groups including Febraban, Anbima and ABDE and a coalition of 328 signatories have publicly urged the CVM to reinstate mandatory reporting and requested a meeting with the regulator, calling the reversal sudden and harmful to investor transparency.
• Some large issuers such as Natura have said they will continue to publish IFRS S1/S2‑aligned reports voluntarily while supporters and critics warn the change will either lower immediate compliance costs and ease implementation or fragment disclosures, reduce comparability and make it harder to attract foreign capital.