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illuminem summarizes for you the essential news of the day. Read the full piece on Thomson Reuters Institute or enjoy below:
🗞️ Driving the news: Brazil's mandatory ESG reporting regulation, effective from 2026, will require lawyers to play a crucial role in guiding publicly traded companies through compliance with the new structure
• This marks a significant shift in the corporate environment towards transparent and consistent sustainability reporting
🔭 The context: The Brazilian Securities Commission (CVM) has evolved its ESG policies over the years, moving from voluntary guidelines to mandatory disclosure aligned with the International Sustainability Standards Board (ISSB) standards
• Companies will need to disclose ESG impacts on governance, strategy, risks, and opportunities, ensuring consistency across financial and sustainability reports
🌍 Why it matters for the planet: This regulation positions Brazil as a leader in ESG reporting, promoting transparency and accountability in addressing climate change
• The move underscores the global trend towards sustainability, potentially influencing other countries to adopt similar measures
⏭️ What's next: Lawyers must help companies connect existing data, understand industry-specific materiality, and enhance corporate governance structures
• Early adoption and proactive compliance will be key to managing legal risks and meeting investor expectations
💬 One quote: "Lawyers need to ensure that the information and data presented among these reports and other materials... is consistent," said Henrique Antunes, an expert in capital markets and ESG matters
📈 One stat: The UN poll found that 86% of people want their countries to set aside geopolitical differences and work together on climate change
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