As the world turns its eyes to Belém, Brazil has a chance to lead in climate justice governance and attract sustainable investments. What does this moment teach us about the role of ESG due diligence?
The Conference of the Parties (COP) is the main decision-making body of the UN Framework Convention on Climate Change (UNFCCC). It brings together nearly every country to review climate progress and negotiate agreements to cut emissions and adapt to climate change. Held annually since 1995, COP meetings are where landmark climate accords, such as the Kyoto Protocol and the Paris Agreement, have been adopted. Each COP provides a platform for governments, scientists, businesses, and civil society to collaborate on climate solutions and hold each other accountable to global climate goals.
For the first time ever, this year Brazil will host the COP. The event will take place in Belém, located in the Amazon region, from 10 to 21 November. From the outset, the Brazilian federal government expressed a strong commitment to bringing the summit to the Amazon, an ecosystem crucial to global climate stability and a symbol of President Lula da Silva’s environmental agenda.
The Amazon at the Centre of Climate Action
Climate change affects everyone, but its impacts are not felt equally. The most severe consequences fall disproportionately on vulnerable populations. Yet, environmental public policies often overlook or outright ignore these groups. This dynamic lies at the heart of climate racism, a system in which marginalized communities are more likely to suffer from climate-related harms due to intersecting factors such as race, ethnicity, gender, socioeconomic status, and geography. The result is profound climate injustice where those who have contributed the least to the climate crisis are the ones most deeply affected by it.
Hosting COP30 in Belém, a city in the heart of the Amazon and close to communities most vulnerable to climate impacts, is a meaningful step toward addressing climate inequalities. Holding the summit in a Global South country acknowledges the disproportionate burden faced by marginalised populations and offers a platform to centre their voices in global climate debates. It also gives Brazil a unique opportunity to take a leadership role in turning international attention into momentum for structural change. By showcasing efforts in Amazon conservation, inclusive development, and the clean energy transition, areas where Brazil holds significant potential, COP30 could help redefine climate leadership through equity and regional empowerment.
However, to truly deliver on these ambitions, these initiatives must be backed by rigorous Environmental, Social and Governance due diligence. ESG due diligence can be the mechanism through which commitments made at COP30 translate into sustainable, inclusive results on the ground.
Beyond Environmental Goals
Beyond its environmental significance, COP30 is expected to leave a strong economic impact. The federal government has allocated BRL 172 million (approximately USD 30 million) to expand and upgrade the city’s hospitality infrastructure, aiming to provide accommodation to over 26,000 people during the event. The conference is also likely to attract significant foreign investment in key sectors such as renewable energy, sustainable agriculture, and ecotourism, boosting Brazil’s economy and opening up new job opportunities.
COP30 is emerging as a key driver of change in Brazil’s investment landscape, particularly in the commodity sector. The upcoming summit is pushing investors to reassess their roles and responsibilities in financing activities linked to deforestation and environmental harm, especially in industries such as soy and beef, both of which Brazil is a global leader in. With increasing regulatory pressure there is growing momentum toward sustainable investment practices that prioritise transparency, accountability, and ESG due diligence. As a result, COP30 is not just a diplomatic milestone but also a catalyst for reshaping investor behaviour, aligning capital flows with climate goals, and encouraging more responsible stewardship of Brazil’s natural resources.
Belém’s COP30 Projects Under ESG Scrutiny
Belém, the capital of the state of Pará, was chosen nearly two years ago to host COP30, positioning it at the centre of global climate discussions. However, the city faces deep-rooted urban and environmental challenges, including an inadequate waste management system, limited transportation infrastructure, and widespread inequality. Despite being in the Amazon, Belém suffers from rising temperatures and extremely low levels of urban greenery. Over half of its population lives in informal settlements, reflecting significant socio-spatial and climate injustices.
In preparation for COP30, Brazil’s federal, state, and municipal governments formed a united front to channel significant public funding into infrastructure projects. Yet many of these initiatives, such as the expansion of major roads, have been criticised as environmentally harmful and socially exclusive. Projects such as the Avenida Liberdade highway, which is being built for COP30 partially on areas of protected Amazon rainforest, have led to large-scale deforestation and invasion of protected areas, while new green spaces have been built in already affluent neighbourhoods, ignoring the city’s most vulnerable communities.
While the Pará state government promotes these projects as having sustainable credentials, local residents and environmentalists express concern over the deforestation’s contradiction to the summit’s environmental goals. The construction has already impacted local communities by destroying açaí berry trees that provided income, without offering any compensation to these communities. Additionally, the highway may lead to further deforestation and habitat fragmentation, undermining the Amazon’s role in carbon absorption and biodiversity.
Projects like the Avenida Liberdade highway raise serious ESG concerns—from deforestation and biodiversity loss to the displacement of communities and lack of transparency in the planning process. These types of policies have been criticised as a form of greenwashing, highlighting the need to apply robust ESG due diligence not just as a checkbox exercise, but as a fundamental tool for identifying risks and mitigating harm.
Belém’s urban transformation in preparation for COP30 reveals a troubling gap between environmental rhetoric and policy reality. Much of the investment coming into the city is overlooking marginalised communities and is prioritising large-scale, carbon-intensive development over nature-based, inclusive solutions. This has fuelled concerns that COP30 could become more of a symbolic showcase for Brazil’s green credentials than a platform for meaningful change.
Hosting COP30 in Brazil is a landmark opportunity not only for advancing the global climate agenda but also for giving the Global South a stronger voice in shaping climate solutions. The event is expected to draw substantial international investment to the country, particularly in areas such as renewable energy, sustainable land use, and infrastructure. The potential for meaningful change at COP30 can be strengthened through careful ESG due diligence. When applied thoughtfully, ESG frameworks help ensure that investments are genuinely sustainable, socially inclusive, and transparent, minimising the risk of greenwashing and directing benefits to the communities most in need.
This analysis is a contribution made by Maria Eduarda Andrade, Analyst at SET Advisory.