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B3

Name B3
Country Brazil
Number of listed companies 328
Domestic market capitalization 1187362 million US$
SSE Partner Exchange Yes
Has annual sustainability report Yes

ESG reporting required as a listing rule Yes

  • B3 supports and recommends that listed companies report on item 7.8 of CVM’s (Securities and Exchange Comission of Brazil) Reference Form information if the company publishes annual report that takes SDGs into account, and if not, explain why. The initiative is led by CVM.
Has written guidance on ESG reporting Yes

Offers ESG related training Yes

  • 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.

Market covered by sustainability-related index Yes

Has sustainability bond listing segment Yes

Has SME listing platform Yes

Additional information
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.

 

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. 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.

About the stock exchange
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.

Stock Exchange Database Criteria

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

Conducts business in Country or Market in which the stock exchange operates
Number of listed companies (Date updated) Updated either by the stock exchange directly or using WFE data
Domestic market capitalization  Updated either by the stock exchange directly or using WFE data
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.