Compliance Briefing — October 20, 2023
Brazil’s securities regulator issued Resolution 193 requiring listed companies to publish sustainability reports aligned with ISSB standards from 2026, expanding assurance and governance expectations.
Executive briefing: On October 20, 2023, the Comissão de Valores Mobiliários (CVM) adopted Resolution 193, mandating Brazilian public companies and certain foreign issuers to disclose annual sustainability reports based on the IFRS S1 and S2 standards issued by the ISSB. The rule phases in from fiscal year 2026, with early adoption permitted.
Immediate compliance priorities
- Scope determination. Identify entities subject to the resolution, including listed companies, foreign issuers with Brazilian depositary receipts, and regulated investment funds.
- Reporting roadmap. Align sustainability data collection with ISSB-aligned governance, strategy, risk management, and metrics disclosures, planning for phased adoption.
- Assurance preparation. Coordinate with independent auditors to establish assurance-ready controls, evidence trails, and limited assurance procedures.
Control alignment
- Governance. Formalise board oversight of sustainability reporting and integrate climate-related responsibilities into board committees.
- Risk management. Embed climate and sustainability risks into enterprise risk assessments, scenario analysis, and capital planning.
- Data quality. Strengthen internal control frameworks over emissions, transition plans, and financial impact metrics to support ISSB-compliant disclosures.
Enablement moves
- Develop bilingual disclosure templates aligning CVM requirements with ISSB taxonomy and local market expectations.
- Implement sustainability data platforms capable of capturing scope 1–3 emissions and financed emissions where relevant.
- Engage investor relations teams to communicate transition plans and gather feedback on material topics.
Sources
Zeph Tech equips LATAM issuers with ISSB-aligned reporting controls, sustainability data platforms, and assurance coordination tailored to CVM Resolution 193.