IFRS S1 and S2: Prepare your company for the new ESG era with diagnostics and tools from Sustain Quality Brasil.
Prepare your company for IFRS S1 and S2. Sustain Quality Brasil offers diagnostics, tools, and complete support for compliance with CVM and CBPS.
What are IFRS S1 and S2 and why are they important?
IFRS S1 and S2 are standards that transform how companies disclose financial information related to sustainability. In Brazil, their adoption will soon be mandatory, and anticipating this is essential to ensure compliance, transparency, and competitiveness. Therefore, if your company wants to position itself ahead of the market, Sustain Quality Brasil is the ideal partner to offer comprehensive diagnostics and practical tools that simplify the preparation of annual reports aligned with international requirements.
Regulatory Context in Brazil
- CVM Resolution No. 193/2023 officially recognized the voluntary adoption of IFRS S1 and S2 standards (via CBPS 01 and 02) starting in 2024 for publicly traded companies, investment funds, and insurance companies. [linkedin.com] , [apsiscarbon.com]
- Coming mandatory from 2026 : CBPS 01 (equivalent to IFRS S1, general sustainability disclosure) and CBPS 02 (equivalent to IFRS S2, climate risks and opportunities). [linkedin.com] , [apsiscarbon.com]
- They also cover banks and financial institutions regulated by CMN and BCB (CMN 5.185/24 and BCB 435). [bdo.com.br]
Who needs to comply with IFRS S1 and S2?
Companies required to comply include:
- Publicly traded companies listed on the B3.
- Investment funds and securitization companies.
- Financial institutions regulated by the Central Bank.
On the other hand, companies with global supply chains or international investors should also prepare, even without being publicly traded.
Why act now and not wait until 2026?
The requirement starts in 2026, but starting early has advantages:
- Avoid penalties imposed by the CVM (Brazilian Securities and Exchange Commission).
- Strengthen investor confidence , as they prioritize companies with robust ESG reports.
- Gain a competitive edge and stand out in the market.
Consequently, acting now means reducing risks and seizing opportunities.
Market Overview
- Only ~35% of companies are prepared for implementation; voluntary adoption remains low. [decisorbrasil.com.br] , [contabeis.com.br]
- Major audit and advisory players (EY, Deloitte, Grant Thornton) are already active in this area, but there is a great opportunity for specialized expertise. [ey.com] , [grantthornton.com.br]
Why act now?
- Avoid regulatory risks : non-compliance can lead to penalties for violating the CVM (Brazilian Securities and Exchange Commission) and other regulatory bodies.
- Strengthen investor confidence : 69% of investors consider sustainable management critical in their decisions. [pwc.com]
- Competitive advantages : companies that are ahead of the curve gain reputation, access to capital, supplier compliance, and a business advantage. [grantthornton.com.br] , [growinconsult.com.br]
How Sustain Quality Brazil helps your company comply with IFRS S1 and S2.
Complete diagnosis for IFRS S1 and S2
Identifying gaps, conducting maturity analysis, and creating a customized action plan.
Practical tools for implementation
Digital solutions and methodologies that simplify data collection, financial-ESG integration, and emissions measurement (Scopes 1, 2, and 3).
Support in preparing the annual report.
Wording aligned with IFRS standards, limited assurance (until 2025) and reasonable assurance (from 2026 onwards).
Training and capacity building
Training for teams, ensuring autonomy and continuity.
Benefits of hiring Sustain Quality Brazil
- Regulatory compliance guaranteed.
- Reducing reputational risks.
- Easier access for investors.
- Saving time and resources.
Furthermore, our ongoing support ensures your company is always up-to-date.
Step-by-step guide to get started today.
- Contact our experts.
- Initial diagnosis.
- Implementation of the tools.
- Continuous monitoring.
Finally, your company will be ready to meet international requirements.
Conclusion
Engaging with Sustain Quality Brazil now allows you to:
- Anticipating the mandatory requirement of 2026
- Mitigating regulatory risks and strengthening governance
- Attracting investors with transparency and robust ESG data.
- Gain a competitive edge with standardized and professionally prepared financial sustainability reports.
Get in touch and plan your IFRS S1 and S2 compliance journey today!
In summary, the adoption of IFRS S1 and S2 standards is a regulatory and strategic milestone. Don’t wait for it to become mandatory: anticipate it, strengthen your ESG governance, and gain a competitive advantage. Sustain Quality Brasil is your ideal partner for this journey.
Request your free diagnosis and prepare your company for the future!