Brazil

This would assist materially in ensuring climate risk mitigation in Brazil, facilitating better investment decisions and assisting with the maintenance of financial stability, as Brazil and its global trading partners seek to transition to a lower carbon economy. In particular, existing regulation would benefit from a greater recognition of the material financial risks to a company’s strategy (in the medium and long term) that may be posed by climate change, and integration of such risk analysis into general financial analysis and disclosure.

Practical actions for better climate disclosure in Brazil

Government

• The Federative Republic of Brazil should endorse the TCFD’s final recommendations, as should bodies such as the Brazilian Securities Exchange Commission and the Brazilian Superintendence of Complementary Pension Plan.

Stock exchanges

• B3 should reference the TCFD’s recommendations in reporting guidance.

Companies

• Brazilian companies should adopt the TCFD’s recommendations as a useful voluntary framework for consistent climate-related disclosures to investors. Sharing of good practice will assist in overcoming implementation hurdles, with convergence in reporting frameworks needed in the longer term.

Investors

• Investors should encourage companies to adopt the TCFD’s recommendations. Investors should also evolve their disclosure to beneficiaries and clients, informed by the TCFD’s guidance for asset owners and managers.

Produced in collaboration with Baker McKenzie