Trends of the sustainability agenda in 2026

January 29, 2026 / João Vitor Souza and João Henrique Bueno

Artigo 1 Tendencias em Sustentabilidade 2

There is no doubt that the corporate sustainability agenda is a movement that is here to stay. In recent years, however, the initiatives have undergone important changes, aimed more at slowing down than at boosting. The European Union (EU), which for many years has been a protagonist in sustainability actions, has brought advances not only in terms of investment and public policies, but also in regulations. As a result, other countries followed the European bloc so as not to lose the bilateral market with these countries.

Recently, however, the EU has been under great pressure from companies to retract the regulatory agenda. The Omnibus package, a set of actions to simplify sustainability reporting and regulations in Europe, was launched in 2025, excluding the obligation of some institutions for reporting such as the CSRD (Corporate Sustainability Reporting Directive).

Along with the Omnibus, the directive (EU) 2025/794, called “Stop the clock”, has also been bringing a longer time for companies to adapt to the standards that make up Europe’s Green Taxonomy. In the United States, the election of President Donald Trump brought a less rigid view on sustainability regulations, a movement illustrated by his withdrawal from the Paris Agreement in 2025, for example.

But this does not mean that the agenda has lost strength in Brazil, where the corporate sustainability agenda is still maturing and the first regulations are emerging. The recent slackening in Europe do not exempt Brazilian companies from adopting international standards, either for opportunities to export goods and services or for monitoring the best market practices. More than that, the retraction of regulations abroad gives Brazilian companies the necessary breath to keep up with changes in the agenda.

Brazilian progress in corporate sustainability: Sustainable Taxonomy and SBCE

To align with existing standards outside the country and expand the agenda internally, the Brazilian Government launched, in 2025, the Brazilian Sustainable Taxonomy (TSB), which guides companies on how to report, verify, and monitor their sustainability information. Companies that adopt, even voluntarily, TSB, will demonstrate reliability to their investors and customers, expanding the market and getting ahead of their competitors. In 2026 and in the coming years, TSB should be the focus of discussions, and the expectation is that it will generate broad adherence by companies.

Another important instrument is the Brazilian Emissions Trading System (SBCE), which establishes the regulatory framework for the carbon market in the country, in order to reduce emissions and stimulate the use and investment in low-carbon technologies. This system offers companies an opportunity to strategically position themselves in the climate mitigation agenda, in addition to generating income and new business in the future Regulated Carbon Market.

Brazilian protagonism: IFRS S1 and S2

Another trend for the coming years is the sustainability information reporting standards published by the International Sustainability Standards Board (ISSB) in 2023: IFRS S1 and S2. The rules will be mandatory in Brazil as of Resolution 193 of the Brazilian Securities and Exchange Commission (CVM).

As a result, Brazilian publicly traded companies must, as of 2027, publish a report that presents financial information related to sustainability and climate change, structured in: i) Governance; ii) Strategy; iii) Risk Management; and iv) Goals and Metrics.

The new regulation will require companies to identify publish financially relevant risks and opportunities for the business in the field of sustainability. In this way, they will start to answer questions raised by various stakeholders, such as investors and creditors, who seek to understand the financial impact of climate and sustainability aspects.

At first glance, the emergence of yet another standard for reporting sustainability information has raised concern. For professionals who spend a large part of the year structuring reports and/or answering questionnaires to meet the various existing standards (GRI, CDP, S&P and others) the question arises: “with the IFRS S1 and S2 standards, can I stop participating in CDP or publishing a Sustainability Report?”

The answer is “no”. It is important to understand that each report has different purposes, levels of detail and stakeholders to be reached. CDP, for example, focuses on environmental issues (climate change, water security, and the use of forest commodities), not addressing social issues such as health and safety, labor aspects, or information security. On the other hand, the Annual Sustainability Reports continue to be the main instrument of corporate transparency and “accountability” of companies to society, since they start from material topics to define the content to be presented.

The balance between “collection” and “deceleration”

The regulatory progress proposed by Brazil is very positive when it comes to advancing the maturity of corporate management related to these aspects. Despite this, we have been following movements that seek to delay the application of CVM resolution 193, in line with what happened in the European Union, with the Omnibus. In other words, companies have a critical choice about which path to follow in 2026: i) take the lead and seek to anticipate the new regulation, anticipating challenges and problems; ii) wait for possible postponements, observing market movement and examples of “early adopters”, risking exposure to possible punitive sanctions or negative evaluations by stakeholder groups.

The path to regulatory compliance with IFRS S1 and S2 standards is complex. Initially, it is necessary to identify financially material risks and opportunities, understand their impact on financial planning (cash flow, CAPEX, OPEX), map the governance of sustainability aspects and how they are integrated into the corporate risk management process, and define monitoring indicators and goals. Despite this, it is necessary for companies to take the lead in identifying and communicating this information, preventing its absence from being interpreted as uncertainty and risk, and anticipating the new challenges that will arise throughout this process.

How can my company adapt?

WayCarbon, as a member of the IFRS Sustainability Alliance, offers specialized consulting for the adaptation of companies to IFRS S1 and S2 standards, as well as courses on the subject and in-company training. Courses include understanding the key concepts of IFRS S1, how to apply them in reporting sustainability-related financial information, and identifying climate-related risks and opportunities. WayCarbon also provides IFRS adherence diagnostics and technical support for reporting sustainability-related financial information.

Count on our experts to support your company in advancing ESG maturity and adhering to IFRS standards and reporting to stakeholders.