The Securities and Exchange Commission of Brazil (CVM) has issued a resolution removing the mandatory requirement for listed companies to report under Brasilian aligned ISSB standards (CBPS).
The CVM said: "The international accounting standard remains in place: companies that choose to publish financial sustainability information may only do so if they comply with the standards of the CBPS and the ISSB, thereby preserving the reliability and enhancing the comparability of such disclosures. On the other hand, companies that consider this adoption to be unsuitable for their business will not be subject to such an obligation, and need only disclose their decision through a market announcement, following a 'comply or explain' approach.
"The rule whereby voluntary reporting by any entity in a financial year imposed a permanent reporting obligation - which discouraged experimental voluntary adoption - is also abolished. In its place comes the requirement to report sustainability information for at least three consecutive financial years and the duty to communicate any decision to discontinue voluntary reporting in the financial year preceding the discontinuation."