The deadline to participate in B3’s public hearing on ESG practices — of an environmental, social and governance nature, ends this Friday (16th).
Since August 17, the Brazilian stock exchange has promoted a consultation among society to evaluate the new rules proposed to increase gender diversity and representation of minority groups in high leadership positions.
The idea is that all companies listed on B3 elect at least one woman and one member of the so-called social minorities — black or brown people, members of the LGBTQIA+ community or people with disabilities — in positions of authority, either on boards of directors, or in statutory directorships.
Those already listed on the stock exchange until the new rules come into force, expected next year, will have until 2025 to prove the election of the first member and, in 2026, that of the second.
If they do not comply with the measure, B3 proposes a mechanism called “practice or explain” – that is, companies that do not comply with the new rules must “give transparency to the market about the actions taken”.
Following the same logic, companies that make the IPO after the rules come into force will have up to two years to elect both members.
In the view of specialist Fabricio Stocker, coordinator of the Graduate Program in Environment and Sustainability at Fundação Getulio Vargas (FGV), B3’s “welcome” movement follows an international wave.
“We are in a growing number of discussions about the concept of ESG, in which companies around the world are having to implement measures and adopt management transparency to get out of the speech and into the practice”, he says.
“It is not something new, nor is it fast, but it is a sign that ESG is here to stay. B3, as a regulatory body that gives guidelines to large companies, is sending this message.”
As informed to the report, the next steps after receiving the comments at the public hearing will be to evaluate and prepare a final text, to be submitted for approval by B3’s internal bodies and then by the Securities and Exchange Commission (CVM).
The expectation is that, at the end of these stages, the new rules will come into force at the beginning of 2023. The manifestations received at the public hearing will be published in the future on the B3 website.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
