Securities and Exchange Commission updates Volume 1 of its sustainable finances guide
On January 8th, 2024, the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários or “CVM”) released the updated version of the Volume I of its educational series, so-called ‘CVM’s Sustainable Guide’, with emphasis on previously underexplored topics, and simplifying the material to facilitate the investor comprehension.
The practice of ‘greenwashing’, which has been covered in the CVM’s Sustainable Finance Policy since January 2023, is now addressed in a dedicated chapter. According to the document, mitigating greenwashing concerns to both policymakers and financial regulators. This risk might be mitigated by the development of an official green taxonomy in Brazil, expected to be released by the end of 2024.
The guide, along with the CVM’s Action Plan for the Biennium 2023-2024, is an outcome of the Financial Sustainability Policy of the commission, which has a focus on the education of investors, aiming to steer the financial market towards an indeed greener economy. This scenario increasingly emphasizes the importance of informed decision-making among investors.