Brazil Launches Sustainable Taxonomy
by Diana Radovan, Director, Sustainability Policy
Key Summary
• Brazil approved the technical handbooks for its Sustainable Taxonomy (TSB), defining which economic activities qualify as “sustainable.”
• The first edition covers eight sectors, from agriculture and manufacturing to energy, construction, transport, and social services.
• Future updates will expand into critical minerals, circular economy, biodiversity, vehicles, and SME-focused guidelines.
• Brazil’s approach is unique for its dual climate focus, inclusion of gender and race, and its coverage of mining and extractives.
• Electronics companies operating in Brazil may face financing and business impacts depending on alignment with TSB criteria.
On 25 August, Brazil approved the final technical handbooks for its Sustainable Taxonomy (Portuguese acronym “TSB”). This framework defines the parameters for determining which activities are considered “sustainable” from a legal perspective.
The first edition covers eight sectors, aligned with Brazil’s CNAE (Clasificación Nacional de Actividades Económicas):
- Agriculture, livestock, forestry protection, fishing, aquaculture
- Extractive industry
- Manufacturing industry
- Electricity and gas
- Water, sewage, waste, and decontamination
- Construction
- Transport, storage, and postal services
- Social services (tourism, urban planning, IT, telecommunications)
The official publication of the approved TSB and handbooks is expected in September 2025, with phased implementation beginning with large firms and financial institutions. Future updates will include critical minerals, vehicles, bioeconomy, circular economy, biodiversity, and sustainable land use, as well as guidelines tailored for medium and small enterprises.
What makes Brazil’s approach unique?
- Climate focus: It prioritizes both climate change mitigation and adaptation
- Social inclusion: It’s the first in the world to include gender and race among the inequalities it seeks to address
- Industry scope: First taxonomy globally to cover the mining and the extractives industries – even ahead of the EU
Why it matters for electronics
Companies operating in Brazil need to understand the taxonomy’s requirements as access to financing and other business decisions may increasingly depend on how activities align with TSB parameters. This includes future applicability to the electronics sector.
For more information, contact me at DianaRadovan@electronics.org.
It is a national framework that defines the legal parameters for determining which activities are considered environmentally and socially sustainable.
Eight sectors: agriculture-related activities, extractive industries, manufacturing, electricity and gas, water and waste services, construction, transport and postal services, and social services such as tourism and telecommunications.
It prioritizes both climate mitigation and adaptation, incorporates gender and race into its social criteria, and is the first taxonomy to include mining and extractive industries.
Official publication is expected in September 2025, with phased implementation beginning with large companies and financial institutions.
Access to financing and business decisions may increasingly depend on how well company activities align with TSB requirements, which could apply to electronics in future updates.