
New Sustainability Reporting Obligations in Mexico
To facilitate capital flow toward investments that foster economic development by promoting environmental and social sustainability, transparency, and long-term strategies in financial and economic activity, early this year Mexico enacted sustainability reporting obligations to securities issuers and other stock market participants.
Amendment to the General Provisions Applicable to Securities Issuers and Other Securities Market Participants (Securities General Provisions)
On January 28, 2025, the Securities General Provisions were amended to require securities issuers and other securities market participants in Mexico to prepare and file annually with the National Banking and Securities Commission and the Mexican stock exchanges, a sustainability report disclosing sustainability information, including as related to climate change. A sustainability report is now also required to register securities with the National Registry of Securities and to secure authorization for their public offer.
Sustainability Reports
Sustainability information is defined by the amended Securities General Provisions as information on the issuer's sustainability-related risks and opportunities, which could reasonably be expected to affect its cash flows, access to financing, or short, medium, or long-term capital costs, and which should include governance information; strategy and management of these risks and opportunities; as well as related metrics and objectives.
Sustainability reports should be prepared pursuant to the International Sustainability Standards Board's IFRS Sustainability Disclosure Standards IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures), or in accordance with sustainability standards applicable in the issuer's country of origin. Sustainability reports shall have reasonable assurance of the information by an external auditor.
Relying on IFRS sustainability standards is intended to ensure that sustainability information disclosed pursuant to the Securities General Provisions is measurable, comparable, and aligned with international reporting standards.
ISBB's IFRS S2
IFRS S2 (Climate-related Disclosures) requires an entity to disclose information about its climate-related risks and opportunities that could reasonably be expected to affect the entity's cash flows, its access to finance or cost of capital over the short, medium, or long- term, and that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity.
Key disclosures under IFRS S2 are strategy and decision-making; current and anticipated financial effects; climate resilience; scope 1-3 GHG emissions; industry-based disclosures; and climate-related targets.
Entry Into Force
Sustainability reports should be submitted in 2026 based on the annual information for 2025. These initial reports need not be assured by an external auditor. Sustainability information submitted in 2027 with annual information from 2026 must be assured at least in a limited manner. For subsequent years, sustainability reports will have to be fully reasonably assured by an external auditor.
Read the full Climate Report.