New Sustainability Reporting Requirements in Mexico

By Neva Modric, Sustainability Analyst – G&A Institute

The nation of Mexico recently took significant steps toward enhancing corporate transparency and accountability by introducing two new mandatory sustainability reporting requirements. 

With compliance deadlines rapidly approaching, both domestic and foreign (non-Mexican companies) operating in Mexico will soon be subject to these new reporting obligations.

These rules apply to different categories of companies and are unprecedented in their scope: 

One rule mandates that certain companies report using the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (S1 and S2), making Mexico the first country in North America to adopt these global standards on a mandatory basis. Canada developed standards in line with the IFRS standards ahead of Mexico, but their implementation is currently voluntary.

The second requires other companies to use Mexico’s new standalone sustainability standards, positioning the country as the world’s first emerging economy to require such disclosures for certain non-listed companies. 

This blog outlines the new requirements and includes a list of referenced acronyms below.

What companies need to know

All securities issuers managed by Mexico’s securities commission, CNBV, excluding financial institutions, will be required to report using the IFRS Sustainability Disclosure Standards beginning in 2026, based on data from fiscal year 2025. 

This mandate comes from an amendment to CNBV’s general provisions, which previously focused solely on financial reporting and did not include any sustainability requirements. The sustainability reporting rule currently applies to companies representing 86 percent of market capitalization of Mexico’s primary equity index.

Private companies reporting under Mexico’s financial standards will be required to report using Mexico’s sustainability reporting standards beginning in 2026, based on data from fiscal year 2025.

These standards, known as NIS, were issued by Mexico’s reporting and standards board and include a conceptual framework and 30 sustainability indicators (21 quantitative and 9 qualitative). However, further alignment with IFRS S1 and S2 is in the works, particularly around governance, risk management, and sustainability-related disclosures, which are currently not included in the NIS. At this stage, it remains uncertain how Mexico’s NIS will evolve and to what extent they will interoperate with the IFRS Sustainability Disclosure Standards.

Next steps for determining reporting requirements

Companies based in or operating in Mexico will need to evaluate if they are required to report under the IFRS Sustainability Disclosure Standards -or- Mexico’s own NIS sustainability standards, as the two sets of standards are not reciprocal.

If a company’s country of domicile does not have its own sustainability disclosure standards, the company subject to CNBV’s rule must comply with IFRS standards.

If a company’s country of domicile does have its own sustainability reporting requirements, the company may choose to report in accordance with the IFRS Sustainability Disclosure Standards -or- with its own country’s standards. 

If a foreign company chooses to report using its home country’s sustainability standards, it is expected to clearly state that the information is not prepared in accordance with the IFRS Standards or explain how the report is interoperable with the IFRS Standards.

Looking further ahead

In preparation for future compliance requirements, companies subject to CNBV’s general provisions should also begin planning to obtain limited assurance on all sustainability-related disclosures by 2027 – and reasonable assurance by 2028. 

Mexican financial institutions should also plan to begin reporting on sustainability information in the near-term, as the Commission is currently developing equivalent disclosure mandates for financial institutions.

G&A Can Help Companies

Understanding which standards apply to your company and preparing for upcoming disclosure on material sustainability-related risks can be complex. We invite you to set up a call with the G&A team to discuss how we can help you comply.

Referenced Acronyms

CNBV: Comisión Nacional Bancaria y de Valores (National Banking and Securities Commission)

IFRS: International Financial Reporting Standards

IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information

IFRS S2: Climate-related Disclosures

NIS: Normas de Información de Sostenibilidad (Sustainability Reporting Standards)

ABOUT NEVA MODRIC
Sustainability Analyst, G&A Institute

Neva Modric is a Sustainability Analyst at G&A Institute. Her role includes conducting research to support client engagements, assisting with double materiality assessments, developing sustainability reports, analyzing ESG data, and providing general sustainability consulting. She is passionate about helping companies drive positive, sustainable impact that benefits both people and the environment.