SUSEP publisheds Circular No. 666/2022 setting out the requirements of sustainability requirements to be observed by supervised entities in Brazil
The Circular is in line with the United Nations (UN) Sustainable Development purposes, of which SUSEP is a supporting entity. This initiative reflects the main global trends related to ESG criteria (Environmental, Social and Governance) and demonstrates the alignment of the insurance industry in promoting a sustainable economic and social development.
The regulation establishes that managing sustainability risks will be part of the Risk Management Structure and the Internal Control System of the entities.
For this purpose, the Circular establishes that supervised entities are required to observe, based on their risk assessment and complexity of their operations:
i. conduct a materiality assessment, which must be carried by:
| Date | Segment of supervised entity |
| 31 December 2023 | S1 |
| 28 February 2024 | S2 |
| 30 April 2024 | S3 ou S4 |
ii. draft a sustainability policy, which sets out the response of the supervised entity to risks and opportunities arising from (a) sustainability, (b) climate events (physical, transitional and of litigation) and (c) environmental and social events. The policy must provide the principles and guidelines to integrate sustainability in the conduct of business to avoid financial losses. The policy must be implemented by:
| Date | Segment of supervised entity |
| 31 December 2022 | S1 |
| 28 February 2023 | S2 |
| 30 April 2023 | S3 ou S4 |
iii. prepare a sustainability report, which must be approved by the 30th of April and published yearly as of April 2023. The report must address the development and offer of products or services, the conduct of business, the implementation of sustainability measures, as well as how sustainable risks which the supervised entity could be exposed to were managed. The report must be made available on the company’s website for five years from publication.
iv. update the investment policy to consider sustainable criteria for their investment portfolio.
v. the relevance of the supervised entity’s corporate governance in implementing the sustainability measures established in this Circular.
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