Abrasca asks the CVM to make the adoption of sustainability standards more flexible | Businesses

The CVM, through Resolution 193, determines that publicly traded companies, investment funds and securitization companies must prepare and disclose financial information reports related to sustainability, based on standards issued by the International Sustainability Standards Board (ISSB, a global board that creates international standards for sustainability reporting). Disclosure will be mandatory beginning with fiscal years beginning January 1, 2026. However, companies can do early adoption for the fiscal year beginning January 1 of this year.

In a letter sent to the regulator, that the Value had access to it, Abrasca lists other challenges to the accounting and financial adequacy agenda of companies, also from 2026, such as the simultaneous implementation of the consumption tax reform, the new rules of the second pillar of the Organization for Economic Co-operation and Development (OECD) and taxation on dividends. In this scenario, the Audit and Accounting Committee (Canc) and the Liquidity, Finance and Taxation Committee (Clift) of Abrasca have “closely monitored” the associated companies in the implementation of these standards throughout the year 2025 and in measuring the level of consolidation of the IFRS S1 and S2 rules.

“In addition to the points already mentioned on the simultaneous challenges of implementing mandatory rules, the reform of consumption taxation has undoubtedly had a major impact on the accounting, financial, control and internal audit teams of companies, with a complete revision of the methods of invoicing, issuing invoices, collecting taxes and even a modification of the economic models of companies taking into account the need to modify the provision of services linked to the sale of products”, affirms the association.

At the same time, according to Abrasca, companies expressed operational difficulties and sought the assertive support of specialized consultants to lead the implementation of the sustainability standard. “These concerns reflect the lack of response from experts on how to guarantee aspects inherent to the activity of certain companies, raising concerns about the affirmation of the models at this initial stage,” explains the entity.

According to Abrasca, several companies confirm that they have enlisted the assistance of auditors and other external providers in the process of identifying gaps as part of their efforts, recognizing that this is only the first of the challenges related to providing information in IFRS S1 and S2. On the other hand, surveys of domestic and non-resident institutional investors indicate that there is still no effective demand for data in IFRS S1 and S2 formats.

Abrasca said he has contacted some of the large managers, who have indicated that they are interested in knowing the progress of Brazilian companies in sustainability reporting, but recognize that there are, to date, no compliance requirements that create conditions for non-investment or divestment in companies that do not yet disclose financial data according to this standard. For them, standards are desirable and welcome, but they do not constitute requirements.

Abrasca therefore proposes that the adoption of the standards be voluntary initially, which would represent an “appropriate balance” between the necessary international convergence and the reality of the national market and the current legislative challenges impacting the accounting and financial areas of public companies.

If this proposal cannot be accepted, the association suggests that the start of the obligation be extended by at least three years, with progressive application depending on the size and structure of the companies. The entity states that the measure is essential to reduce costs and allow adequate adaptation to international practices.

Currently, only Vale and Lojas Renner have published the first financial information reports related to sustainability and climate, but Abrasca says four of its member companies have indicated they are preparing to provide information.

In the letter, Abrasca also made himself available to contribute to additional studies, technical dialogues and participation in working groups that could support the CVM in this agenda. In addition to the letter, the association sent the regulator a technical note which “deepens and broadens” the considerations raised.