Resolution 1.710/23 of the CFC - What does the resolution of Brazilian standards for the preparation and assurance of sustainability reports say?

Recently, Resolution 1.710/23, of the CFC - Federal Accounting Council, which provides for the adoption of the Brazilian Standards for the Preparation and Assured Sustainability Report.

In accordance with resolution, resolution will be inserted in the Brazilian Accounting Standards: Brazilian Accounting Standards for Sustainability Information Disclosure (NBC TDS); and NBC TAS - Brazilian Accounting Standards to ensure sustainability information dissemination.

The goal is to align Brazilian practices with international sustainability disclosure standards issued by International Sustainability Standards Board (ISSB), thus seeking an important advance, ensuring more connectivity between sustainability dissemination practices and global accounting standards (IFRS).

Who applies to resolution? publicly traded companies, investment funds and securitizers

What is the importance of adopting norms?

Adoption of norms brings important benefits such as transparency and reliability, companies promote more credibility to their business, with clear information on environmental, social and governance impacts, since investors have more confidence and assertiveness in decisions. Companies are more competitive, providing more access to investments, partnerships and financing.

Another important point is that companies seek to improve their processes, valuing sustainability, generating a cycle of responsibility, thus establishing a positive influence throughout society.

What is the deadline for adequacy?

For the Calendarian years D and 2024 and 2025 , compliance with IFRS S1 and IFRS S2 is optional for dissemination of sustainability reports, until NBCs are issued, becoming becoming required from calendar year 2026.

It is important to emphasize that the Resolution highlights the technical responsibility of accounting professionals in the elaboration and ensuring of sustainability information reports.