Green Equities
Green Equities are a designation provided by B3 for listed companies or companies undergoing an Initial Public Offering (IPO). The main objective of Green Equities is to recognize companies whose activities contribute to protecting the environment and combating climate change.
B3 was inspired by the Green Equity Principles launched in 2023 by the World Federation of Exchanges, respectively “WFE Principles” and “WFE”. The WFE is the global federation of exchanges and its goal is to foster the development of capital markets through research, studies and statistics on good market practices, including sustainable finance and international standards.
The WFE Principles consist of guidelines for stock exchanges to follow in the development of regulations that support the designation of companies as Green Equities on B3 Brazilian Exchange.
Increase their visibility in the market through their green credentials and their commitment to the green economy
Leverage their profile among investors seeking to allocate capital in companies committed to the environment and to combating climate change
Align the company with best market practices
Access new investors
Increase the universe of investments in sustainability-focused assets
Have new parameters to generate performance comparability between issuers
Guide their investment decisions through more performance data
The company must hire an Approved Reviewer previously accredited by B3.
To receive the Green Equity designation, the Approved Reviewer must certify that the company meets the following requirements:
of annual gross revenue from activities that contribute to the green economy
of annual investments and operating expenses allocated to activities that contribute to the green economy
of annual gross revenue deriving from fossil fuel activities
Hire an Approved Reviewer previously accredited by B3
Send a formal request with the Approved Reviewer report by email to [email protected]
Register on ESG Workspace and enter data related to the designation requirements on the platform
The Approved Reviewer must exclusively use the Sectors and Activities items of the European Union Taxonomy to define the green activities to be considered for calculating revenues and investments (using the company’s annual financial statements). The Approved Reviewer must also assess the negative impacts of the issuer. The methodology must be previously approved by B3 and publicly disclosed by the Approved Reviewer.
To maintain the designation, the assessment of activities must be carried out annually by an Approved Reviewer, with the first assessment being complete and, in the other two consecutive years, the assessment may be complete or limited depending on the choice of issuer. However, a full assessment is mandatory every three years, regardless of the choice of assessment in the intervening two years.
Further information can be found in the Circular Letter and in the B3 Guide to Green Equities.
What are Approved Reviewers
Approved Reviewers are external audits responsible for assessing the revenues and investments of companies interested in obtaining the Green Equity designation. If the company meets the mandatory requirements, the Approved Reviewer issues a report that must be forwarded to B3 by the issuer.
Approved Reviewers Entities:
ESG data, analytics and research to help market participants and corporates make sustainable decisions.
S&P Global - Oslo
Science Park, Gaustadallen 21, 0349, Oslo, Norway
Contact: Kristina Alnes - [email protected]
ERM
Av. Engenheiro Luis Carlos Berrini, 105, Condomínio Thera One, Torre 3, setor B, 17º andar, conjunto 171, Cidade Monções, São Paulo - SP, CEP 04571-010
Contato: [email protected]
Companies with B3 Ações Verdes Green Designations
Assessment Report
(In the process of equity distribution offering)
Who can receive the designation?
Any listed company or a company undergoing an Initial Public Offering (IPO), which fit into a sector and activity of the EU taxonomy and meet the mandatory requirements.
Can companies already listed on the exchange receive the designation?
Yes, they can. And the Green Equity designation does not interfere with the equities that the company holds, such as common, preferred, nominative, book-entry shares or Units and with its listing segment.
How much does it cost to apply for the designation?
The designation is free of charge. However, the issuer will need to hire an Approved Reviewer accredited by B3.
When can private companies apply for Green Equity designation before going public?
For now, the Green Equity seal may only be granted to companies listed on B3. However, private companies that are preparing for an IPO can seek an Approved Reviewer during this process, so that all the requirements are met and the company is ready to receive the designation as soon as the opening bell rings.
How long does it take for an issuer to receive the designation?
The current estimate is 30 days, and it may take longer or shorter. As the process is new, there is not yet a set deadline.
How long is the designation valid for?
One year.
Why is B3 using the European Union Taxonomy?
For Green Equity designation, B3 follows the recommendations and guidelines of the World Federation Exchange, a global stock exchange entity, which states that an external auditor is required as an assessment body.
How can investors identify companies holding the Green Equity designation?
The assets of designated companies will bear an official B3 Green Equities seal indicating their classification. Furthermore, the list of designated companies can be consulted on the B3 portal.
How can I become an Approved Reviewer?
To become an Approved Reviewer, you must meet the requirements stipulated in the Circular Letter and request accreditation with B3. Click here to view or contact us.