On 29 June 2022, the Brazilian Superintendence of Private Insurance ("SUSEP") published Regulation No. 666/2022, setting forth sustainability requirements applicable to the Brazilian insurance sector. Its goal is to establish guidelines for management of risks that are directly related to ESG policies of insurance and capitalization companies, local reinsurers and pension funds.
Pursuant to the new requirements, regulated entities must ensure that sustainability risks are properly managed, particularly by preparing a triennial materiality assessment identifying, assessing and classifying the risks to which the entities are exposed – not only in relation to their activities and operations, but also in relation to their products, services, clients, suppliers and service providers.
Another point of attention concerns the obligation to prepare a sustainability policy containing principles and guidelines to ensure that sustainability-related aspects – listed in the regulation – are considered both in the ordinary course of business and in the relationship with stakeholders. In addition, until 30 April of each fiscal year, regulated entities must prepare and publish a report addressing the effectiveness of their respective sustainability policies, as well as the management of the risks to which they are exposed.
Although Regulation No. 666/2022 will only enter into force on 1 August 2022, it already sets forth deadlines for regulated entities to achieve compliance. Deadlines vary depending on the type of regulated entity (S1, S2, S3 and S4, pursuant to SUSEP's classification), but the closest deadline expires as soon as 31 December 2022.
Visit us at Tauil & Chequer
Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."
© Copyright 2020. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.