From 2025 onwards, the diversity and inclusion agenda will gain even more momentum with the entry into force of new regulations that promise to transform the world. Brazil's corporate landscape and in other countries. These changes are driven both by national laws and by global trends that seek a greater equityIn this article, we will explore the regulations, their practical application and their impact on companies. In this article, we will explore the regulations, their practical application and their impact on companies.
What changes in diversity regulation for 2025 in Brazil?
Diversity on boards of directors is a widely debated issue in Brazil. From 2025, new measures regulated by the Brazilian Securities and Exchange Commission (CVM) will come into force to promote the inclusion of women and black people in leadership positions. These changes are in line with the advancement of the ESG (Environmental, Social and Governance) agenda and seek to correct the historical under-representation of minority groups.
These regulations apply to companies listed on the Brazilian stock exchange, especially those that publish annual corporate governance reports. The requirement covers companies that are part of the Novo Mercado, Nível 1 and Nível 2 listing segments, which are recognized for their high standards of governance. By including diversity criteria in its guidelines, the CVM is reinforcing the importance of representative leaders and of more inclusive corporate practices.
CVM regulations: Women and black people on boards
In 2023, the CVM approved measures that determine the inclusion of data on diversity in the annual reports of companies listed on the Brazilian stock exchange. From January 2025, these companies will have to meet minimum requirements to ensure that women and black people are represented on boards of directors and executive boards.
According to a study by B3, women occupy only 15% of the seats on the boards of listed companies, while black people represent less than 5% of these regulatory positions, companies need to demonstrate continuous progress in the composition of these spaces, with clear targets and public follow-up reports.
Self-declaration of race on work cards
Another novelty that will come into force from 2025 is the obligation to self-declare race on work cards. This measure aims to improve the monitoring of racial diversity in the formal market, allowing for more detailed analysis of inequalities in access, promotion and pay.
Law of salary equalization and combating harassment
Gender pay equality is another milestone in Brazilian legislation that began to be implemented in 2024 and will be consolidated in 2025. Companies with more than 100 employees must submit annual reports on gender pay equity. In addition, the law to combat sexual harassment at work requires companies to establish confidential reporting channels and internal awareness programs.
Advances in diversity legislation in Brazil during 2024
The year 2024 was a crucial period for preparing the ground for the regulations that come into force in 2025. Several legal initiatives reinforced the importance of an inclusive culture in the corporate environment:
- Quota Law for People with Disabilities (PCDs): In force since 1991, this legislation was revised in 2024 to include new inclusion targets and expand monitoring to medium-sized companies.
- ESG initiatives in listed companies: According to B3, companies that adopted diversity practices as part of their ESG agenda showed greater investor engagement and growth in market value.
These changes demonstrate the importance of diversity and inclusion in companies, not just as a legal requirement, but as a strategic advantage.
Which companies are covered by these regulations?
The CVM regulations apply mainly to publicly traded companies, which have to report annual information on diversity in their leadership. However, these requirements can also impact private companies, which seek to align themselves with ESG best practices in order to attract investors or maintain partnerships with global organizations.
Adaptation deadline
Companies will have up to two years to implement the changes, with preliminary reports due in 2025 and full compliance by 2027. To this end, many organizations have already started investing in specialized consultancies, such as Diversity as a Service (DaaS)to structure strategies that meet the new regulatory demands.
What other regulations do we see in other countries that could affect Brazilian companies?
Brazilian companies with international operations or partnerships need to pay attention to global regulations that influence diversity. A CSRD (Corporate Sustainability Reporting Directive)The European directive is a striking example of how external legislation can impact local companies.
CSRD: What is it and how does it impact Brazilian companies?
The CSRD requires European companies and their supply chains to publish detailed reports on sustainability, including diversity in their leadership. From 2025, Brazilian companies exporting to Europe will need to demonstrate compliance with these rules. According to IBM, the CSRD can directly affect the reputation and competitiveness of organizations that fail to adopt inclusive practices.
Examples of global regulations that impact Brazil
- Quota law in California (USA): Public companies must have at least one woman and one person from racial minorities or LGBTQIAP+ on their boards of directors.
- Inclusion directives in the UK: Companies must publicly report the gender and ethnic composition of their leadership.
These examples show how global trends in diversity and inclusion at work can put pressure on Brazilian companies to adapt in order to remain competitive.
Conclusion
The regulations coming into force in 2025 represent a significant step forward for diversity and inclusion in companies, both in Brazil and internationally. Measures such as the obligatory inclusion of women and black people on boards, racial self-declaration on work cards and pay equity reports reinforce the importance of building a inclusive culture based on data.
At the same time, Brazilian companies need to pay attention to global trends, such as CSRD, in order to stay in line with the demands of sustainability and inclusion. In this sense, relying on services such as DaaS and benchmarking can be a strategic differentiator in navigating this new regulatory scenario.