First CBPS-IFRS sustainability reporting conference held in Brasília, bringing together public and private sector to discuss Brazil’s ISSB adoption journey.
Description
On May 22nd, a sustainability reporting forum was organised to discuss Brazil’s ambitious journey towards adopting the sustainability disclosure standards by the International Sustainability Standards Board (ISSB). The local standard setter, Comitê Brasileiro de Pronunciamentos de Sustentabilidade (CBPS) hosted the event in collaboration with the IFRS Foundation. The forum was held in Brasília and supported by the Global Project Sustainable Economic Transformation and Sustainable Finance on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
The forum on the implementation of the ISSB sustainability disclosure standards brought together over 180 regulators, investors, company representatives, and ISSB technical experts to discuss Brazil’s ambitious implementation plans. Brazil is one of the first jurisdictions globally to announce plans to adopt, or otherwise use, the ISSB standards and clearly outline the jurisdiction’s adoption journey.
The event aimed to raise awareness about the spirit and letter of IFRS S1 and IFRS S2, as well as Brazil’s adoption journey. Additionally, it provided capacity-building opportunities for Brazilian companies looking to implement the standards and offered a platform to discuss the needs of regulators for effective supervision of ISSB standards implementation.
Participants expressed strong interest in advancing the application of ISSB standards and emphasised the need for training for both preparers and accountancy professionals. They also urged the ISSB to consider developing standards that address social and biodiversity aspects, thereby broadening the existing set of standards.
Background
Although many companies are already reporting on their sustainability-related risks and opportunities, the introduction of ISSB standards brings much-needed standardization to this process in Brazil, and globally. The jurisdiction has taken a proactive stance in this regard, setting ambitious goals for the adoption of these standards. By 2026, publicly traded companies and investment funds will be required to report against these standards, with a voluntary testing phase taking place in 2024/2025. Brazil's capital markets regulator, the Comissão de Valores Mobiliários (CVM), was one of the first regulators worldwide to prescribe ISSB reporting in its regulations. Furthermore, the recent translation of IFRS S1 and S2 into Portuguese aims to enhance accessibility for stakeholders in Brazil.
Partners
The forum was attended by a large variety of public and private sector stakeholders. Amongst others, Brazilian partners comprised the Comissão de Valores Mobiliários (CVM), Comitê Brasileiro de Pronunciamentos de Sustentabilidade (CBPS), the Brazilian Central Bank (BCB), and the Ministry of Finance (MF).
