Brazil's Federal Prosecutor's Office Challenges CVM Sustainability Reporting Rule

The Federal Public Prosecutor's Office (MPF) has asked to join a public civil action against the Brazilian Securities Commission (CVM) over the agency's recent change to sustainability reporting requirements. The MPF argues that CVM Resolution 244, which replaced mandatory disclosure of financial‑related sustainability information with a voluntary “report or explain” regime, was issued without a regulatory impact analysis, public consultation, and with an atypical board composition. The prosecutor, Renato de Freitas Souza Machado, highlighted risks to legal certainty and Brazil's commitments under the Paris Agreement and other environmental treaties. A federal court in Rio de Janeiro will decide whether to admit the MPF as a co‑author in the case, while the judge has previously ordered the CVM to provide the full administrative record supporting the rule change.