Sustainability Disclosure Standards: What Your Company Needs to Know to Stay Ahead

Sustainability Disclosure Standards: What Your Company Needs to Know to Stay Ahead

From PowerPoint to Practice: Sustainability Disclosure Standards

In January 2025, a new chapter for corporate sustainability officially began in Mexico. For the first time, sustainability reporting moved from voluntary to mandatory, marking a structural shift in how companies disclose their performance.

What was once seen as primarily a finance issue has now made IFRS S1 and S2 the new grammar of the corporate world.

This shift has two main drivers:

  • CINIF, which issued the Sustainability Disclosure Standards (NIS), applicable to any entity that prepares financial statements under Mexican Financial Reporting Standards (NIF)—from large corporations to SMEs and non-listed organizations.
  • CNBV, which updated the Issuer Circular (CUE) to require companies listed on the Mexican Stock Exchange (BMV) or the Institutional Stock Exchange (BIVA) to disclose information aligned with the ISSB’s international standards: IFRS S1 and S2.

Together, both frameworks pursue the same objective: to make sustainability comparable, verifiable, and financially material.

And although this may seem like “a technical issue,” what lies ahead goes far beyond compliance. It redefines how planning is done, how risks are assessed, how budgets are allocated, and above all, how value is communicated internally and externally across the organization.

For years, the sustainability narrative moved between good intentions, reputational positioning, and marketing. Today, the terrain has changed: sustainability has entered the income statement. It is no longer about “telling what we do well,” but about proving it—with data, metrics, and governance. And that is where the central question emerges, the one that should guide every decision, every report, and every strategy: how does what we do truly impact the generation of sustainable value?

And to answer that question, a genuinely cross-functional effort is required. Operations, Finance, ESG, Human Resources, Supply Chain, and Communications—among other areas—must sit at the same table to rethink processes, align objectives, and build new ways of collaborating. Because major change does not happen in silos: decisions must be made in an integrated way. And the question left on the table is simple but uncomfortable: are we creating sustainable value, or just telling a good story?

At Komunika Latam, we support organizations across all sectors in the design and implementation of sustainability strategies aligned with international standards and tailored to the local context. Click here.

 

Beyond the spreadsheet: what IFRS S1 and S2 really mean

What is coming is not a “new report,” but a new way of being accountable. Integrating it requires more than cross-functional commitment within the company; it requires adopting a new mindset—a shared perspective that places sustainability and transparency at the center of management.

  • IFRS S1 and S2, issued by the International Sustainability Standards Board (ISSB), establish a common language for integrating sustainability and finance. They do not replace existing reports, but they do bring order to the chaos of multiple standards and fragmented methodologies.
  • IFRS S1 requires the disclosure of sustainability-related financial information: the ESG (environmental, social, and governance) risks and opportunities that affect a company’s ability to create value.
    IFRS S2 focuses exclusively on climate change, following the TCFD structure: governance, strategy, risk management, metrics, and targets.

Both standards are consistent with previous frameworks (GRI, SASB, CDSB, and TCFD), but the real shift lies in their financial integration. For the first time, sustainability data will need to withstand audits, support investment decisions, and be comparable across sectors and countries.

In other words, environmental and social indicators no longer live only in PowerPoint presentations or annual reports; they now belong within the same internal control and assurance ecosystem as financial statements.

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Transitional relief measures: a runway for adoption

The ISSB recognized that implementing this all at once would be unfeasible. That is why it established transitional relief measures: temporary provisions that ease the first reporting cycle while companies strengthen their processes. In Mexico, these reliefs must be understood alongside the CNBV Issuer Circular (CUE) requirements and the filing timelines established for the BMV and BIVA.

Some of the main ones are:

Climate first: in the first year, companies may disclose only climate-related information (IFRS S2) and apply IFRS S1 only to climate-related matters.
Deferred publication: the sustainability report may be published after the financial statements, but only during the first reporting cycle.
Scope 3 emissions: these are not mandatory in the first year, but they will be required starting in the second year.
Emissions methodology: if you are not yet using the GHG Protocol, you may continue using another methodology during the first cycle.
Optional comparatives: comparative information is not required in the first year.

These relief measures are not a shortcut, but rather a strategy for gradual maturation. When used well, they allow companies to prepare teams, refine data, and build governance before external assurance becomes mandatory.

Under this phased assurance model, in Mexico, the CNBV defined a gradual approach to the independent verification of information, which will be implemented as follows:

This gives companies three years to strengthen the quality and traceability of their information without the immediate pressure of an audit. The challenge is significant, but the benefit is clear: greater credibility with investors, analysts, and regulators. In other words, those who start getting their house in order today will be able to report with confidence tomorrow.

Where to start (and why you should do it now)

Adopting IFRS S1/S2 or the Sustainability Disclosure Standards does not require doing everything at once, but it does require taking action now. The key is to plan strategically, make use of the transitional reliefs, and focus on the foundations.

Here are 5 concrete actions to take that first step:

  1. Assess your starting point. Identify what data already exists, who generates it, and how reliable it is. Most companies already report more than they think—they simply need to integrate and validate it.
  2. Map roles and responsibilities. ESG is not a standalone function; it requires an ongoing conversation among finance, operations, talent, and communications. Define data owners, validators, and those responsible for the narrative.
  3. Consolidate information. Centralize data in a single system or dashboard. If you depend on scattered spreadsheets, it will be difficult to maintain control and traceability. Data quality will become the new metric of credibility.
  4. Train and engage teams. The challenge is not only technical; it is also cultural. All teams need to understand why measuring sustainability is not a trend, but a matter of risk management and future investment.
  5. Design your roadmap. Use the transitional reliefs to plan deliverables, processes, and systems. This is not about “meeting the minimum,” but about using the transition period to build a competitive advantage.

These actions are only the starting point for building a strong and strategic reporting system. And while the journey may seem complex, having specialized support can make the difference between simply complying and truly standing out.

What matters most is getting started: turning compliance into strategy, and strategy into value.

Conclusion 

IFRS S1 and S2 are not the end of the world, but they do mark the end of stories without data. It is no longer enough to say we are sustainable; now we have to prove it with evidence, consistency, and strategy.

Getting started requires order, intention, and consistency. Every validated indicator, every documented process, every traceable data point builds something even more valuable than reputation: it builds the future.

Companies that start today will reach 2026 with solid processes, prepared teams, and a narrative grounded in facts. Those that wait will find themselves rushing to catch up with a regulatory curve that is not going to slow down.

The difference between complying and leading lies in when you decide to move. And while adapting may be uncomfortable, the alternative is worse: continuing to operate as if nothing were changing.

Because, in the end, sustainability is no longer something you talk about; it is something you prove.

Explore our ESG Impact, Sustainability, and CSR services.

Nancy Lozano Vásquez
Associate Consultant
nlozano@komunikalatam.com
LinkedIn: Nancy Lozano Vásquez

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