CVM revokes the obligation of sustainability reporting for publicly held companies

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CVM revokes sustainability reporting

Highlights

The CVM published on May 29, 2026, CVM Resolution 244, revoking the obligation of sustainability reporting for publicly held companies and making the regime voluntary.
Companies that choose to adopt voluntary reporting remain required to follow the international CBPS and ISSB standards, maintaining reliability and comparability in disclosures.
The voluntary reporting must now be maintained for at least three consecutive fiscal years, with mandatory communication to the market if the company decides to discontinue the process.

This article was translated from the original. Read the original version by our correspondent here.

Regulation reform and new voluntary regime

As reported by the Securities and Exchange Commission, the authority issued CVM Resolution 244 on May 29, 2026, which reforms CVM Resolution 193 to provide greater flexibility to the voluntary adoption model for sustainability standards.

Under the new wording, the obligation that the original version of the regulation provided for publicly held companies after an initial period of voluntary adherence no longer exists. The change brings the treatment of these companies closer to the regime already applied to investment funds and securitization companies, for which there was no provision for mandatory adoption of sustainability information reporting under accounting standards.

The international standard, however, is preserved. Companies that choose to disclose sustainability-related financial information remain required to follow the CBPS and ISSB standards, which maintains the reliability and increases the comparability of these disclosures.

Impact on companies and market decisions

Companies that consider adoption inappropriate for their business are not required to report, but must communicate this decision to the market using the comply or explain model. According to the CVM, the review seeks to preserve transparency and comparability without restricting the freedom of entities to assess the costs and benefits of using investors' resources.

The authority also eliminates the rule that turned a voluntary report into a permanent obligation. In its place, the requirement is now to maintain reporting for at least three consecutive fiscal years, in addition to the obligation to communicate in the previous year any decision to discontinue voluntary disclosure.

With this, the CVM seeks to reduce a disincentive to experimental adoption of sustainability reports, while maintaining minimum predictability for investors and market participants.

The Best Funds Awards in Lisbon highlighted the performance of collective investment schemes and pension funds, as well as recognizing an academic dissertation focused on ETF aligned with sustainability objectives and ESG criteria. The initiative reinforced how risk-adjusted returns and sustainability-linked strategies continue to gain importance in decision-making and the evolution of the financial sector.

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