• There is no listing rule related to ESG reporting at B3. However, this is a specific item incorporated in the Reference Form of the Regulator, CVM (Securities and Exchange Comission of Brazil) – Item 7.8 “Social and Environmental Policies and Transparency”.
• 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.

• Sustainability Guidance for Companies (second edition 2016; first edition 2011).
• Sustainability Guidance and Business Opportunities in the Intermediation Industry

• B3 offers ESG mentoring to its clients through a Customer Experience Program. Promotes 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 led by the Client’s Relationship Department in partnership with the Sustainability area.
• Integration of ESG issues to education through the B3 Education.

• Corporate Sustainability Index (ISE)
• Carbon Efficient Index (ICO2)
• Special Corporate Governance Stock Index (IGCX)
• Corporate Governance Trade Index (IGCT)
• Novo Mercado Corporate Governance Equity Index (IGC-NM).
• Special Tag-Along Stock Index (ITAG).
• Besides the indices, B3 has a couple of Exchange Traded Funds (ETFs), such as ETF ISE (ISUS11) and ETF ICO2 (ICOO11)

• Green Bonds

• BOVESPA MAIS, since 2005

B3 as an organization that is at the center of the capital market, has the role of promoting the best sustainability practices among its stakeholders and offering ESG (Environmental, Social and Governance) products and services to support its customers in this transition. The strategic ambition is to connect sustainability with the business, leveraging B3’s strategic objectives, and promoting a resilient business environment aligned with the best ESG practices.

In its governance structure, the company has a:

• Sustainability Committee: chaired by the CEO, composed of Vice-Presidents and an external member, responsible for the strategic orientation
• Sustainability Department: responsible for managing the theme on a daily basis.

B3 has a Social-Environmental Responsibility Policy approved by the Board of Directors in 2013, which is aligned with its strategic principles and aims to formalize and orient guidelines for action on the theme.

B3’s contribution to solutions to combat climate change and its effects on society is also expressed in initiatives directly related to the Company’s operation, which adopts measures to identify, manage and reduce environmental impacts arising from its activities. Several initiatives are developed, among employees and interns to encourage the conscious use of water, energy, and paper. Solid waste is also managed, including electronic waste and greenhouse gas emissions.

B3 has been making an inventory of its greenhouse gas emissions and responds to the CDP (formerly Carbon Disclosure Project) annual questionnaire since 2009. Since 2010 it has been audited externally and the document has been included in the Public Registry of the Brazil GHG Protocol Program. The inventory is a prerequisite to participate in ICO2. Also, the Exchange compensates its emissions that cannot be reduced, since 2013. In 2019, B3 joined the Climate Commitment Program, a platform that connects companies that want to offset their emissions through projects throughout Brazil, which generate positive environmental and social actions.

In the social pillar, B3 respects its internal and external relationships and promotes Human Rights, B3 pledges to attract and retain talent, encourage the pursuit of improved quality of life and develop its employees. It encourages agendas of diversity, inclusion and gender equality and encourages volunteer work, in accordance with the B3 Volunteer Policy. The Company is also committed to fostering good social practices across its value chain and promoting private social investment, via B3 Social.

B3 believes in the value of partnerships and, for this reason, is a member of many initiatives and commitments with ESG focus:

• It was the first stock exchange in the world to adhere to the Global Compact in 2004, and it is a member of the Compact’s Brazilian Committee. It was the first exchange in any emerging market country to commit officially to the Principles of Responsible Investment (PRI) in 2010. Became a founding signatory to the Sustainable Stock Exchanges initiative in 2012 and is a member of the WFE’s Sustainability Working Group since 2014.
• B3 also actively participates in the Working Groups on Financial Instruments and Impact Investments, Fintech, Green Finance and ESG Risk Management and Transparency of the Financial Innovation Laboratory (LAB) of the Securities and Exchange Commission of Brazil (CVM), which brings together representatives of the government and society to promote sustainable finance in the country. B3 is a member of the Advisory Board of CDP Latin America and supports the Task Force on Climate-related Financial Disclosures (TCFD) by signing the CEO and CFO letter.
• B3 is also the Initiative of Capital Markets from the Ministry of Economy of Brazil and Social Responsibility and Sustainability Commission and the Intrasectoral Sustainability and Environment Commission of FEBRABAN (The Brazilian Federation of Banks).

To see all the commitments, click here.

 

• Listed company for profit; demutualized in 2007

• Central Bank
• Conselho Monetário Nacional
• CVM (Securities and Exchange Commission of Brazil)

Limited Exchange Self-Regulatory Organization (SRO) Model

• B3’s organization and operations are subject to direct oversight from the CVM. We are a market operator and operator of clearing houses that, in such capacity, act as a self-regulatory and market surveillance organization, responsible for monitoring and overseeing market participants and the transactions carried out on our markets. Our self-regulatory and market surveillance arm is B3 Market Surveillance (BSM), which maintains close relationships with the regulators, in particular, the Central Bank 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 we provide through our four clearing facilities are subject to the regulatory and oversight authority of both the CVM and the Central Bank.

Location: São Paulo, Brazil.

• B3 S.A. – Brasil, Bolsa, Balcão is one of the world’s largest financial market infrastructure providers by market value. The services it offers range from exchange trading, clearing, and other post-trade services to the registration of over-the-counter (OTC) transactions and of vehicle and real estate loans.
• B3 was established in March 2017 when the securities, commodities, and futures exchange activities of BM&FBOVESPA were combined with the activities of Cetip, a provider of financial services for the organized OTC market. This combination consolidated the Company’s position as a financial market infrastructure and enabled it to extend the range of services and products offered to customers while creating efficiencies for the Company and for the market.
• In the markets for exchange-traded products, B3 develops, implements and operates trading and post-trading (clearing and settlement) systems and services for equities, equity, financial and commodity derivatives, bonds, federal government debt securities, spot currencies, and agricultural commodities. It provides a listing service and acts as a central securities depository (CSD) for the assets traded in its environments. It also offers software and index licensing services. Its operations in these markets require constant investment in technological infrastructure, as well as control and management of the risks inherent in these activities in order to ensure they operate efficiently and securely.
• For unlisted products traded bilaterally on the OTC market, such as financial instruments issued by banks and customized derivatives, B3 offers the infrastructure for registration of these trades by market participants.
• In addition, through its vehicle and real estate financing unit, the Company offers products and services that streamline local credit analysis and approval, making access to secured loans easier, faster and safer.
• Alongside its operational, technological and risk management excellence, B3 also boosts the dynamics of the markets it manages by means of innovation and product development, as well as educational programs for the general public.
• B3 is a public company traded under ticker symbol B3SA3 on the Novo Mercado premium listing segment for companies committed to the highest standards of corporate governance. Its stock is tracked by the Ibovespa, IBrX-50, IBrX and Itag indices, among others.
• The Company is headquartered in São Paulo and has units in Rio de Janeiro and Alphaville, Brazil. It also has representative offices in New York (USA), London (UK) and Shanghai (China) to support local market participants in activities with foreign customers and relations with regulators and to disseminate its products and governance practices to potential investors.