Text commented by Bruno de Queiroz - Executive Director of Galeazzi & Associados

In October of this year, the Brazilian Securities and Exchange Commission (CVM) adopted a new resolution requiring publicly traded companies to publish a special report once a year, containing financial information related to sustainability issues within the companies.

This is part of the current government's agenda on ecological transformation. The report is part of the Risk-Based Supervision Plan, and not only the CVM but other regulatory bodies are also included in this plan.

Starting in 2025, the norm becomes voluntary, and it is only in 2027 that the disclosure of this information in the form of a report becomes mandatory.

However, I have a very strong opinion about sustainability and the ESG (Environmental, Social, and Governance) agenda in general. When this trend started, I genuinely thought it would be different from other trends that have emerged, but the truth is, we find ourselves in the same place for a long time!

The CVM's new resolution aims to encourage more investments in Brazilian companies that adhere to the proposed green agenda. Still, honestly, speaking specifically about sustainability, everyone talks about its importance, but in practice, not much is done, and it ends there.

Furthermore, these meetings called "COPs", which are also part of the sustainability agenda and discussions about the climate crisis, only serve to confirm that no one has achieved any goals and to renegotiate goals that, surprisingly, will not be met again.

When I see proposals and resolutions like these, I understand how they could be catalysts for change if done properly. Understanding the importance of the issue, I also know that if activities, oversight, and enforcement of ESG matters were taken more seriously, things would be on a different level. However, based on years of experience, I realize that this issue is far from achieving its goals.

Probably, in a few years, we will be repeating the same things and concluding that we are in the same place. Food for thought.

(Source: Valor Globo, 2023)

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