Strategic Focus: Understanding ESG And Sustainability Regulations In Brazil

04 Feb, 2025

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Executive Summary

Brazil’s economy is heavily intertwined with its vast natural resources and immense biodiversity, and protecting these resources is crucial for the country’s future growth and success. Over the past two years, Brazil has ramped up its commitments to improve its environmental impact and has passed regulations aimed at making these commitments a reality. The country is also addressing some of its other major challenges, such as inequalities in the workplace and poor labour conditions. This report provides executives with an overview of the recent shifts in the Brazilian sustainability landscape and the actions they can take to best prepare for these changes.
Summary for decision-makers
Brazil is strengthening and expanding its ESG and sustainability requirements

The country’s environmental commitments reflect the complicated relationship between biodiversity and climate
Regulations play a crucial role in demonstrating progress towards the country’s environmental commitments
Efforts are emerging to address some of the social challenges facing firms in Brazil 
Firms in Brazil should not delay in preparing for evolving sustainability standards
Figure 1. Key plans and regulations to improve land use in Brazil
Figure 2. Core legislation and incentives geared towards renewable energy
Figure 3. Comparison of Brazil’s adoption of the ISSB standards with the requirements of the CSRD
Figure 4. Overview of Brazil’s regulated carbon credit market regulation

About the Authors

Jessica Pransky

Jessica Pransky

Principal Analyst

Jessica is a Principal Analyst at Verdantix, specializing in providing insights to sustainability leaders and analysing ESG and sustainability reporting software. She advises ...

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Kim Knickle

Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

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