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B3

Name B3
Country Brazil
Number of listed companies 463
Domestic market capitalization 935583 million US$
SSE Partner Exchange Yes
Has annual sustainability report Yes

ESG reporting required as a listing rule No

  • There are no listing rules related to ESG reporting at B3. However, there’s a specific item incorporated in the Reference Form by the Regulator, CVM (Securities and Exchange Comission of Brazil) – Item 7.8 “Social and Environmental Policies and Transparency” of CVM Instruction 480.
  • B3 encourages transparency and recommends that listed companies report their ESG practices and explain if they have published Annual Report that integrates sustainability indicators through item 7.8 of the Reference Form.

Has written guidance on ESG reporting Yes

Offers ESG related training Yes

  • B3 offers ESG training, workshops, events, and opportunities to exchange of experiences among listed companies and investors to foster this agenda in the Brazilian Capital Market. The initiative is lead by the Client’s Relationship Department in partnership with the Sustainability Area.
  • Integration of ESG issues to education through the B3 Education, a platform in which the Company acts as curator of knowledge already developed by the market, organizing content produced by partners, clients and academy, together with authored content, in the form of knowledge trails. Launched in 2020, it had 71 courses at the end of the year of 2021, more than 400 contents and 178,000 registered users, in addition to 1,7 million of registered accesses.

Market covered by sustainability-related index Yes

Has sustainability bond listing segment Yes

Has SME listing platform Yes

Women on boards mandatory minimum rule No

Additional information
B3´s ambition is to connect sustainability with the business, leveraging the company´s strategic objectives, and promoting a resilient business environment aligned with the best ESG practices. For B3, sustainability is an essential market practice, which generates long-term value for its stakeholders.

As an organization that is at the center of the financial and capital markets, B3 has the role of inducing the best ESG (Environmental, Social and Governance) practices among its stakeholders, offering products and services that support the clients in the transition to a resilient, low-carbon economy and, at the same time, conduct its own activities through responsible internal management.

To reinforce this commitment, B3´s Sustainability Strategy, approved by Executive Board, is based on 3 pillars:

  1. To be a company aligned with the sustainability best practices
  2. Induce ESG best practices in the Brazilian market
  3. Strengthen the product portfolio and develop new ESG market fronts

Considering the importance of the ESG agenda, B3 has the Social and Environmental Responsibility Policy, approved by the Board of Directors, which is  aligned with the company’s strategic principles and aims to formalize and guide actions on the subject.

Regarding governance structure, the company has a Sustainability Committee, responsible for strategic guidance on B3’s sustainability issues and approval of the planning and macro initiatives related to sustainability. It is composed by the CEO, Chief Financial, Corporate and Investors Relations Officer, Chief Client and Products Officer, Managing Director of People, Marketing, Communication and Sustainability and two members from the Board of Directors.

Believing in the value of partnership, B3 acts as an associate, member and/or signatory of several institutions and commitments with an ESG focus. Thus, the company seeks to monitor trends and possible regulations that may impact operations and stakeholders, and subsidies for the creation of new products and services. B3 was the first stock exchange in the world to become a signatory to the UN Global Compact, in 2005, and the first stock exchange in an emerging country to commit to the Principles for Responsible Investment (PRI), in 2010. In 2012, the company became a signatory founder of the Sustainable Stock Exchanges initiative (SSE) within the UN and, since 2014, is a member of the Sustainability Working Group of the World Federation of Exchanges (WFE). In the climate agenda, B3 is a member of the Advisory Board of the CDP Latin America.

B3 also seeks to engage companies in sustainability issues and, at the same time, prepare them for this new business context, in which ESG factors are as important as economic-financial ones. As an example of the promotion of this agenda, B3 has the Corporate Sustainability Index (ISE B3), which, since 2005, aims to create an investment environment compatible with the demands for sustainable development of contemporary society and encourage ethical responsibility of corporations, among other initiatives.

B3´s activities have a low environmental impact due to their nature. However, considering the company´s commitment to be aligned with the best sustainability practices and encourage other companies to do the same, B3 monitors its environmental impacts and implement management, mitigation and transparency initiatives, among which it can be highlighted the preparation of the greenhouse gas emissions inventory since 2009; being Carbon Neutral for 9 years, through the neutralization of greenhouse gas emissions; Reporting to the CDP Climate Change questionnaire since 2009; and the implementation of internal selective waste collection, eco-efficiency, and incentive to conscientious consumption programs.

As a responsible company, B3 strive to attract and retain talent, promote quality of life, and develop its employees. In addition, the company encourages diversity, inclusion, gender equality and volunteering agendas. B3 is also committed to inducing social practices in its value chain and promoting private social investment through B3 Social, a non-profit association, founded in 2007, responsible for integrating and coordinating the private social investment projects. In 2021, the company contributed with approximately R$48 million to 160 civil society projects on several topics, including youth training projects, fighting the impacts of the pandemic on food, health and income fronts, and projects supported through incentive laws on the fronts of health, sport and culture.

In 2021, B3 became the first stock exchange in the world to issue a Sustainability Linked Bond (SLB) in the amount of US$700 million and is now financially committed to meeting sustainability-related goals. Among the commitments foreseen in the SLB are, by 2024, the creation of a diversity index for the Brazilian market and, by 2026, increase to 35% the percentage of women in leadership positions within the Exchange.

Since 2010, base year 2009, B3 has been releasing the Annual Report drawn up based on the guidelines of the Global Reporting Initiative (GRI) and, since 2020, it also started to consider indicators of the Sustainability Accounting Standards Board (SASB) and some elements of the International Integrated Reporting Council (IIRC). The Annual Report, which is audited by a third party, and which covers the most relevant UN Sustainable Development Goals (SDGs) for the company´s business, aims to disclose, in a transparent manner, economic, environmental, social, and corporate governance information related to the strategy, business and performance of B3.

Organizational model of stock exchange
  • Listed company for profit; demutualized in 2007

Regulatory bodies

Regulatory model
Limited Exchange Self-Regulatory Organization (SRO) Model

  • B3’s organization and operations are subject to direct oversight from the CVM. B3 is a market operator and operator of clearing houses that, in such capacity, acts as a self-regulatory and market surveillance organization, responsible for monitoring and overseeing market participants and the transactions carried out on its markets. The self-regulatory and market surveillance arm is B3 Market Surveillance (BSM), which maintains close relationships with the regulators, in particular the Central Bank of Brazil and the CVM. It is also responsible for keeping the CVM abreast of market developments and providing the market regulator with periodic reports of its market surveillance operations. Activities involving clearing and settlement services, which are provided through B3´s four clearing facilities, are subject to the regulatory and oversight authority of both the CVM and the Central Bank.

About the stock exchange
Location: São Paulo, Brazil.

  • B3 provides market infrastructure, with products and services that connect, enable and develop the capital and financial markets. The company operates as a stock, commodities and futures exchange, has a private securities clearinghouse, and is also a fixed income and equities depository.
  • B3 activities, therefore, encompass securities trading, post-trading, clearing, settlement, depository and registration, being managed by a structured and strict combination of standards and rules. The company also has robust risk management and governance, which guarantees solidity, agility and credibility to the services it provides to customers, including banks, brokerage houses, companies, asset managers, high frequency traders, individual investors and pension funds, among others.
  • B3 is a publicly-held company with more than 98% of its shares traded in its own exchange environment’s Novo Mercado listing segment, in which companies commit to Corporate Governance best practices.
  • B3 is headquartered in São Paulo, with offices in Rio de Janeiro (RJ) and Alphaville (SP). Overseas, the exchange has offices in London (UK), Shanghai (China) and Chicago (United States) dedicated to assisting customers with activities in these markets and disclosing products and services to potential investors. B3 also has stakes in stock exchanges in Chile, Colombia and Peru.

Criteria for Stock Exchange Database

The SSE maintains a database of sustainability activities for all stock exchanges that are either members of the SSE initiative and/or members of the World Federation of Exchanges. This database is the most comprehensive database of stock exchanges worldwide and contains data on all main stock exchanges. The information in this database is intended to inform investors and other stakeholders on the work stock exchanges are undertaking to advance sustainability in their respective markets.

The information provided in this database is based on publicly available information prepared by the SSE Secretariat with input from stock exchanges in most instances. Sources and explanatory notes on sustainability information have been included in individual Stock Exchange Fact Sheets. The criteria for each category can be found below.

While every effort is made to keep the information in this database up to date, please be aware that certain factors change frequently and therefore may not be exact, such as the number of listed companies or market cap.

Field

Criteria Considered

Country Country of primary residence or registration
Has signed the SSE Commitment Letter? To be considered an SSE Partner Exchange, the CEO or Chairperson of the exchange must sign an SSE commitment letter. Contact the SSE for more information if your exchange would like to join.
Has annual sustainability report? For a yes, stock exchanges must report, either in a stand alone report or integrated into their financial report, on their environmental and social impact and corporate governance.
ESG reporting required as a listing rule? For a yes, all three factors have been considered (environmental, social and governance) within the listing rules for some or all listed companies. This requirement may come from the regulatory authority or the exchange, depending on the market.
Offers written guidance on ESG reporting? For a yes, all three factors have been considered (environmental, social and governance). The SSE has developed a model guidance that all exchanges can use to develop their own guidance to issuers. For more details, click here.
Offers ESG related training? For a yes, training must have taken place in the previous 12 months, and must be interactive. The topic of the training must be on some area of sustainability.
Market covered by sustainability-related index? Sustainability-related indices may include environmental or social  indices, or ESG indices. This could include specific themes, such as low carbon indices, or general sustainability indices. The index must be specific to the market the exchange operates in (a region or world index is not included).
Has sustainability bond listing segment? For a yes, the exchange has developed the rules and regulations allowing for sustainability bonds to be listed, and provides a separate segment for listing making the bonds easy to find and identify.
Has an SME listing platform? For a yes, the exchange offers a listing platform specifically for Small-and-Medium sized enterprises.
Additional Information Additional Information captures exchanges’: sustainability section of websites,  sustainability products not captured under indices; information on future sustainability commitments and other information on the exchange
Organizational model of stock exchange Whether the exchange is listed or not, and when it was demutualized
Regulatory bodies The regulatory authority that sets listing requirements and capital market regulation for the exchange's market
Regulatory model

The extent to which exchanges have regulatory authority in their market. This may include:

  • Limited exchange SRO
  • Strong exchange SRO
  • Independent member SRO
  • Government (Statutory)
  • Non-SRO
About the stock exchange The location of the headquarters of the exchange, and any additional details about the stock exchange.