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
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
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
National Monetary Council (Brazil), Ministry of Labor and Employment (Brazil), Task Force on Climate-related Financial Disclosures (TCFD), Central Bank of Brazil, Brazilian Stock Exchange (B3), National Confederation of Industry (CNI), Valor International, Federation of the Industries of the State of Minas Gerais (FIEMG), Electrobas, International Sustainability Standards Board (ISSB), SINAI Technologies, APlanet, Natural Gas and Biofuels (ANP), National Council for Self-Regulation in Advertising (CONAR), Brazilian Securities and Exchange Commission (CVM), ADM, Ministry of Finance (Brazil), ENGIE Brasil Energia, Ambipar, National Congress (Brazil), National Agency of Petroleum, Ellen MacArthur Foundation, BYD, BCG, Cargill, International Trade Administration (ITA), UN Development Programme (UNDP), Brazilian Association of Entities of the Financial Market (ANBIMA), Vale, WayCarbon, Bunge, Federal Senate (Brazil), Supreme Court (Brazil), US Department of Labor, UN, Brazilian Private Insurance Authority, Brazilian Development Bank (BNDES)
About the Authors
Jessica Pransky
Principal Analyst
Jessica is a Principal Analyst in the Verdantix ESG & Sustainability practice, which she joined in 2022. Her current research agenda covers ESG reporting and data manageme…
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Kim Knickle
Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain…
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