Social Environmentalism and Corporate Capture: Corporate Governance and Sustainability in Brazil

Abstract

The purpose of this chapter is to describe how corporate governance mechanisms have been used to promote sustainability in Brazil. A few initiatives and regulations connect the sustainability and corporate governance agendas in Brazil, particularly in the securities market and banking sector, where most progress is found. Brazilian financial and non-financial companies still do not fully recognise that the overarching purpose of the sustainability agenda is to ensure a safe operating space for humanity, given that the progress observed is mainly driven by economic factors, such as the mitigation of socio-environmentally risks related to financial and reputational damage and the attraction of foreign investors. Despite the progress observed in recent decades, the chapter concludes that fast or deeper developments should not be expected in the near future due to the strong political influence of agribusiness interests.

Keywords: capital market, financial market, banking sector, agri-sector