1. Themes
  2. Private Finance
  3. Taxonomies, Standardization, and Disclosure

Taxonomies, Standardization, and Disclosure

Common definitions, classification systems, and disclosure standards at national level can improve transparency, reduce greenwashing risks, and align capital flows with climate goals.

2030 Goals

01

Mandatory adoption of Brazilian Sustainable Taxonomy by 2026, with a voluntary phase throughout 2025, enabling capital markets and financial institutions to adapt.

02

A centralized MRV platform to monitor taxonomy-aligned public and private finance flows.

03

Full adoption of CBPS 01/02 disclosure standards (based on IFRS S1/S2) by listed companies and regulated financial entities.

04

Enhanced interoperability with dominant international taxonomies (EU, Colombia, Mexico), incorporating Brazil‐specific social inclusion goals (racial, gender, regional equity).

Status

Moderate Progress

The Taxonomy Action Plan was launched in December 2023 at COP28, and the first draft of the Brazilian Sustainable Taxonomy was released in late 2024. Public consultations were held in two stages: measurement, reporting, and verification design from December 2024 to January 2025, followed by technical thresholds and safeguards from February to March 2025.

The draft taxonomy sets seven environmental objectives including climate mitigation, climate adaptation, biodiversity, circular economy, water and marine resources, pollution prevention, and sustainable land use. It also defines four social objectives, making it one of the first taxonomies to integrate social criteria deeply into design.

The scope covers agriculture, livestock, and forestry; extractive industries, manufacturing, and energy; transport, water, and waste management; and social sectors such as information and communications technology, health, education, and tourism.

Leading Actors

Cooperation is required between these actors and audiences to drive progress foward in Taxonomies, Standardization, and Disclosure.

Private Financial Institutions

B3

Private Financial Institutions

Itaú

Private Financial Institutions

Bradesco

Private Financial Institutions

BTG Pactual

Public Financial Institutions

Brazilian Development Bank (BNDES)

Public Financial Institutions

Central Bank of Brazil (BCB)

Multilateral Development Banks

Inter-American Development Bank (IDB)

Multilateral Development Banks

World Bank

International Organizations

G20

International Organizations

UNEP Principles for Responsible Investment (PRI)

International Organizations

Climate Bonds Initiative (CBI)

Ministries

Ministry of Finance (MF)

Ministries

Ministry of Planning and Budget (MPO)

Ministries

Ministry of Environment and Climate Change (MMA)

Key Milestones

Showcasing the key reform milestones for Taxonomies, Standardization, and Disclosure that have been addressed at global events.

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Brazil

Brazilian Sustainable Taxonomy announcement

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  • Monetary Policy, Financial Regulation, and Supervision

    Finalize GRSAC–ISSB/CBPS convergence and taxonomy tagging so climate data reliably feeds pricing, indices, and benchmarks used by private investors.

  • Taxonomies, Standardization, and Disclosure

    Build integrated MRV systems by consolidating fragmented data sources across agriculture, forestry, and rural finance, enabling scalable and verifiable application of taxonomy criteria. Strengthen institutional capacity among regulators and financial institutions to implement MRV aligned with CBPS (Socio-environmental Best Practice Guidelines) standards and integrate climate data into internal reporting. Ensure interoperability of Brazil’s taxonomy with international systems while incorporating national social and environmental priorities into criteria design and governance. Establish strong enforcement and disclosure linkages to prevent greenwashing and uphold the credibility of taxonomy-aligned sustainable finance.

Learn More

Publications and educational material to deepen understanding of Taxonomies, Standardization, and Disclosure.

Taxonomia Sustentável Brasileira: Insumos para Classificação de Atividades de Uso da Terra

Taxonomies, Standardization, and Disclosure

Study providing inputs for Brazil’s sustainable taxonomy, focusing on land-use activities and classification criteria.

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Sustainable Taxonomy of Brazil Action Plan

Taxonomies, Standardization, and Disclosure

Action Plan for the Sustainable Taxonomy of Brazil, detailing steps to classify and guide sustainable economic activities.

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New regulation on social, environmental, and climate-related risk disclosures

Taxonomies, Standardization, and Disclosure

New regulation requiring financial institutions to disclose environmental, social, and climate-related risks.

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