Promoting investment in Brazil’s socio-economic transformation
This report is intended for policy makers and institutional investors interested in Brazil’s policy approach to enabling responsible investment and driving private capital towards activities that support the country’s economic transition.
It builds on earlier jurisdiction-specific work focused on investor duties, to cover broader sustainable finance measures and economic policy tools in the Brazilian market. It also identifies immediate and longer-term opportunities and provides recommended policy reforms developed through extensive interviews and consultation with policy makers, PRI signatories, industry experts and other stakeholders.
The report sets out Brazil’s national context, constitutional principles that enable and encourage responsible investment policy and practice, recent policy measures towards a just climate transition, and the key institutions charged with delivering those policies.
Given challenges faced by policy makers and investors in directing capital towards sustainable investment opportunities in Brazil, the report presents a series of recommended policy measures across the following elements:
- a whole-of-government approach to transition;
- investor sustainability responsibilities, covering fiduciary duties and product-level disclosure frameworks;
- stewardship;
- corporate sustainability disclosures and accounting standards;
- corporate transition plans;
- the development of a sustainable finance taxonomy;
- human rights and environmental due diligence.
It also makes recommendations for broader economic policy reform to promote investment in Brazil’s climate transition. These address the country’s planned carbon market, roadmaps for key economic sectors, the promotion of blended finance tools and its Climate and Ecological Transformation Investment Platform.
Finally, the report explores how Brazil is seeking to align its climate transition with the protection of nature and manage its socioeconomic impacts. Private capital naturally flows towards profit.
Recommendations in this report aim to strengthen Brazil’s enabling policy environment and reduce barriers for domestic private capital to contribute to Brazil’s transition to a fair and sustainable economy.
The PRI thanks the numerous contributors to this research, including market participants who provided invaluable insights and feedback, and the PRI’s Global Policy Reference Group.
