Brazil

Banco Central do Brasil publishes Report on Social, Environmental and Climate-related Risks and Opp

FEBRABAN publishes its Climate Risk Sensitivity Assessment Tool for the Agricultural Sector

BCB improves rules to access to rural credit - Res. CMN 5.081, June 2023

FEBRABAN publishes its updated assessment of the alignment of a set of sustainability reporting frameworks with the TCFD recommendations, providing a detailed mapping of the main reporting and disclosure requirements and initiatives in the Brazilian banking sector with the TCFD recommendations. The tool allows banks to identify these correspondences, optimizing compliance with transparency demands and their internal management procedures.

FEBRABAN publishes its Guide to Sustainable Debt in Brazil, updating the previous "Guidelines for Issuing Green Bonds in Brazil" (from 2016)

FEBRABAN publishes Sustainability and Climate Change: Implementation of FEBRABAN's Green Taxonomy to credit granted by the Banking Sector in Brazil (data from 2022)

Securities and Exchange Commission of Brazil (CVM) launches rules to companies report sustainable information aligned to IFRS S1 e IFRS S2 - Res. CVM 193, October 2023

National Treasury publishes its framework for sovereign sustainable bond issuance; and issues the first sovereign sustainable bond

Ministry of Finance launches the Brazilian Sustainable Taxonomy's Roadmap

Brazil Stock Exchange (B3) improves issuers rules to include criteria to consider gender diversity and the presence of underrepresented groups in senior leadership positions, and performance indicators linked to ESG themes or goals in management remuneration

BCB publishes scenario analysis for intense flood; launch internal newsletter on sustainability

The period between 2019 and 2022 was marked by a significant evolution of Labeled Operations in Brazil, with emphasis on the year 2021. In addition to the growth in volume, there was also the diversification of the labels of the operations, which were initially predominantly Green, and gradually also began to cover other themes. The most significant growth was in Performance Operations (“Sustainability-linked”), following the international trend: in 2021 they reached 62% of the total, in volume.

Securities and Exchange Commission of Brazil (CVM) defines ESG funds requirements, based on a methodology created by ANBIMA - Res. CVM 175, December 2022, article 49

BCB launches sustainability assets accounting rules - Instrução Normativa BCB 325, November 2022; sustainability criteria was adopted for the first time for reserve management.

FEBRABAN publishes Sustainability and Climate Change: Implementation of FEBRABAN's Green Taxonomy to credit granted by the Banking Sector in Brazil (data from 2012 to 2021)

FEBRABAN publishes its Multi-Sectoral Climate Risk Sensitivity Assessment Tool to support financial institutions in their journey to implement TCFD

BCB publishes the first assessment of financial system exposure to transition risks and scenario analysis for extreme drought

FEBRABAN publishes "FEBRABAN's Roadmap for implementing TCFD/FSB in the Brazilian banking sector: Progress since 2018" to take stock of financial institutions' efforts and achievements in implementing TCFD

BCB launches the the first edition of its Report on Social, Environmental and Climate-related Risks and Opportunities. The report presents an integrated view of the BCB initiatives related to social, environmental, and climate risks and opportunities.

The Brazilian Association of Financial and Capital Market Entities (ANBIMA) establishes rules to sustainable funds denomination

BCB issues new regulations on social, environmental and climate risk management, responsibility and reporting (Res BCB 151, October 2021; Res BCB 139, September 2021), as well as on sustainability criteria for Rural Credit operations (Res BCB 140, September 2021). These normative updates represent significant improvements on the sustainability regulatory framework of the Central Bank of Brazil

FEBRABAN issues its Green Taxonomy's Explanatory Guide. 22 percent of the credit portfolio of Brazilian Banks is classified under the Green Economy category of the Taxonomy in 2020.

The value of sustainable debt operations in H1 of 2021 reached 54 billion Brazilian reais (approx. $10.7 billion), including green/social/sustainable bonds and loans. This represents an increase of 88 percent when compared to total amount issued in 2020 (from January to December)

Green bonds issuance reaches $11.7 billion as of June 30, 2021

Government of Brazil announces Decree 10.387/2020: New Incentives for the Financing of Infrastructure “Green Projects”

FEBRABAN publishes its Green Taxonomy

FEBRABAN publishes the Guidelines for measuring financed GHG emissions

FEBRABAN updates SARB 14 on Social and Environmental Responsibility for Financial Institutions, incorporating relevant environment ESG issues, such as climate change, in alignment with the TCFD recommendations, and stricter criteria for deforestation risk 

FEBRABAN reviews its methodology for collecting data on the volume of credit directed to the sectors of the green economy, sectors with high exposure to environmental impact, and ones with high exposure to climate change in Brazil. From this year on, data is obtained directly from the Credit Information System of the Central Bank of Brazil

LAB publishes Mainstreaming Sustainability in Brazil´s Financial Sector - Policy Actions for a National Supporting Framework

BCB launches its BC# Sustainability agenda, as part of its strategic agenda

FEBRABAN signs an memorandum of understanding with IFC to promote sustainable finance in Brazil

FEBRABAN starts monitoring the volume of credit directed to the green economy and to sectors with potential socioenvironmental impact in Brazil, with data collected directly from banks, on a voluntary basis

FEBRABAN publishes Implementing the TCFD Recommendations: a Roadmap for the Brazilian Banking Sector

FEBRABAN joins SBFN

FEBRABAN and the Conselho Empresarial Brasileiro de Desenvolvimento Sustentável (CEBDS, Brazilian Business Council for Sustainable Development) publishes Guidelines for Issuing Green Bonds in Brazil

FEBRABAN publishes the Self-Regulation SARB 14 standard for the Creation and Implementation of Social and Environmental Policies

BCB issues Resolution No. 4327 on Social and Environmental Responsibility for Policies Financial Institutions

BCB joins SBFN

FEBRABAN issues Brazil's Green Protocol