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Oct 26, 2023

Brazil adopts ISSB standards with mandatory use looming by 2026

New roadmap established to attract capital and global investment in the region

The Brazilian Ministry of Finance, in conjunction with the Comissão de Valores Mobiliários (CVM), has unveiled plans to incorporate the International Sustainability Standards Board’s (ISSB) standards into the nation’s regulatory framework.

The move will see the rollout of the ISSB’s IFRS S1 and IFRS S2 begin on a voluntary basis in 2024, ultimately becoming mandatory on January 1, 2026.

According to the IFRS, Brazil’s commitment to adopting the ISSB global baseline underscores its determination to enhance transparency surrounding sustainability-related risks and opportunities, with the goal of attracting global investment and fortifying the nation’s capital markets.

ISSB chair Emmanuel Faber acknowledges Brazil’s adoption as testament to the strong support received from the ISSB worldwide. ‘I commend the Brazilian Ministry of Finance and CVM for providing clarity to companies and investors in Brazil by setting out a clear roadmap toward mandatory adoption,’ he says.

The move comes less than four months after the ISSB officially launched its two global standards, first in London and subsequently through a series of events hosted by its partners worldwide.

It also follows recent research by Millani that found Canadian companies will need to boost their climate-related disclosures if they are to meet the ISSB’s standards.


According to the ISSB, the two standards, which set rules for general requirements for disclosure and climate-related disclosures, have been designed to help companies communicate their sustainability in a ‘robust, comparable and verifiable manner’.

Officially, the IFRS S1 and IFRS S2 standards will be effective from January 2024 with the first reports by public companies expected to be published in 2025. Adoption of the framework will remain broadly voluntary.

Brazil now joins the ranks of Latin American nations that have mandated sustainability-related financial disclosures. Chile and Colombia have already embraced the TCFD recommendations and SASB Standards, which serve as the foundation for the ISSB Standards.

Mexico’s national standard-setters are also actively exploring the potential integration of the ISSB Standards into their regulatory framework.