Corporate Sustainability: The New Regulations You Can't Ignore

The business landscape in Mexico is undergoing a decisive shift toward sustainability. According to the resolution published in the Official Gazette (DOF) on Jan. 28, 2025, the Ministry of Finance and Public Credit, through the National Banking and Securities Commission, has made it mandatory for public-interest companies, including brokerage firms, their reporting entities, and banks, to prepare and disclose sustainability reports. These companies must align with the standards set by the International Sustainability Standards Board, including IFRS S1 and IFRS S2, as well as future updates.

This is a historic step in Mexico’s national sustainability agenda, setting a precedent that will impact the entire business ecosystem. However, it’s not just large corporations that must prepare. Sustainability is becoming a requirement for all entities, including small and medium-sized enterprises (SMEs). Anticipating this shift, CINIF launched the Sustainability Information Standards (NIS) in May 2024, designed for all Mexican SMEs. These standards enable companies of any size to integrate sustainability into their management and financial reporting, ensuring a healthy business ecosystem aligned with global best practices.

The NIS has been in effect since Jan. 1, 2025,, requiring the disclosure of key sustainability indicators within the same reporting period as financial statements. Compliance has become essential for accessing financing, participating in value chains, and meeting the increasing expectations of both the market and regulatory authorities.

Issued by CINIF, the NIS established the obligation to report key sustainability indicators with the same rigor and in the same time frame as financial statements. Their scope is broad, covering businesses of all sizes, including SMEs, entities that report under Financial Reporting Standards (NIF), or those audited under NIF. Additionally, state-owned enterprises such as CFE, PEMEX, and Conagua will soon require compliance from their entire supply chain, including suppliers.

Compliance with these standards is not optional. Companies that fail to align with them may face barriers to obtaining credit, securing contracts, and accessing growth opportunities.

However, the NIS go beyond being a mere regulatory obligation. They should be seen as a fundamental component of a company's strategic planning. By incorporating the NIS into their corporate strategy, companies effectively conduct a risk assessment that helps them identify potential risks and the strategies required to mitigate them. This proactive approach enables businesses to adapt to changes in the market, comply with evolving regulations, and stay ahead of emerging sustainability trends.

The NIS serve as a strategic tool that enhances business competitiveness. Among their key benefits are:

• Building trust and transparency, which facilitates access to credit and investment by demonstrating sustainable management.

• Ensuring continuity in value chains, as compliance will become a prerequisite for maintaining business relationships with both private companies and government agencies.

• Risk reduction, achieved through better supplier management, fewer workplace incidents, regulatory compliance, and improved operational stability.

• Cost optimization, by lowering insurance expenses, preventing operational disruptions, and reducing financial costs.

Compliance with the NIS is not solely the responsibility of financial or sustainability teams, it requires a holistic approach that involves all areas of an organization. To prepare, companies must conduct a diagnosis of their current sustainability status, develop a compliance strategy aligned with new requirements, and benchmark their performance against industry peers to remain competitive. 

Seeking specialized advisory services, such as those offered by ENERGi, is crucial to defining which indicators to report and how to do so effectively and reliably.

By integrating the NIS into the strategic planning process, businesses can turn sustainability compliance into a competitive advantage while simultaneously ensuring their long-term resilience and growth. Sustainability is no longer optional, it is essential for securing the future of any organization in Mexico's evolving business environment.