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Sustainability and Responsible Business

 

  1. Introduction to the NIS

The CINIF launched the NIS with the goal of promoting the disclosure of information that helps companies address sustainability challenges and make decisions that favor sustainable growth.
These standards represent a significant advancement in promoting sustainability in Mexico, as they provide a structured framework for disclosing ESG (Environmental, Social, and Governance) information.
Adopting these standards will enable companies to identify and measure risks, discover sustainability opportunities, and create value for their stakeholders.

  1. Conceptual Framework of the NIS

This Sustainability Information Standard (NIS) aims to establish the Conceptual Framework of the NIS (Conceptual Framework of the NIS), which sets out fundamental concepts that support the development and application of specific NIS in the preparation and disclosure of sustainability information for an entity.
Sustainability information essentially refers to the following aspects:

  • Metrics and objectives.
  • Risk management.
  • Sustainability strategy.

There are two groups of users of an entity’s sustainability information:

Primary users: These are individuals or entities interested in a company because they are financing providers, such as investors and financial creditors, who expect to recover the resources transferred.

Other users: Individuals and entities interested in a company for reasons other than those of primary users: customers, suppliers of goods and services, and generally those involved in the entity’s value chain.

Joint Application with Financial Reporting Standards (NIF)

Integration of financial and non-financial aspects: Both frameworks allow for a comprehensive view of a company’s performance.

Impact on strategic decisions: Sustainability can influence financial performance (e.g., investments in sustainable projects).

Transparency: Enhances trust among investors and other stakeholders by reflecting both financial performance and social and environmental commitment.

  1. Basic Sustainability Indicators (IBSO)

The NIS B-1 establishes guidelines for identifying and disclosing Basic Sustainability Indicators (IBSO), which are universal metrics for assessing sustainability and the environmental, social, and governance impacts of companies. The standard applies to all entities and requires the disclosure of sustainability information in the notes to the financial statements, including the profile and operational context, using the format provided in Appendix A. It includes 30 indicators, 21 quantitative and 9 qualitative, organized into three areas: Environmental, Social, and Governance.
The information provided by the IBSO is used for managing an entity’s sustainability efforts, serving as a starting point to:

  • Identify sustainability-related risks.
  • Set performance objectives within a framework of best sustainability practices.
  • Design sustainability strategies for risk mitigation.

The standard requires each quantitative IBSO to be reported with both its absolute and relative value, indicating how to calculate them. The NIS B-1 also suggests information sources for obtaining the necessary data. The indicators must be presented at the end of the period and should belong to the same entity that issues the financial statements. The formats in Appendix B can be used for quantitative IBSOs and in Appendix C for qualitative ones.

  1. Implementation of the NIS in Organizations

With proper planning and adherence to the recommendations, organizations can position themselves as sustainability leaders. Otherwise, they will remain behind global trends, compromising both their local competitiveness and acceptance in international markets.

Planning

  • Analysis and initial preparation stage: It is necessary to train staff, form a team, and assess the current state of sustainability.
  • Planning and action: A sustainable strategy, measurement systems, and clear communication of progress to stakeholders are required.
  • Evaluation and measurement of compliance: Internal audits should be conducted, and the compliance plan should be reviewed at least once a year.

Integration

  1. Current Evaluation: Sustainability diagnosis and identification of gaps.
  2. Training: Staff training and workshops on the NIS.
  3. Integration: Define goals aligned with the NIS and include sustainability in decision-making.
  4. Data systems: Implement tools and automate processes.
  5. Measurement: Define KPIs and implement monitoring and audits.
  6. Reports: Prepare reports according to NIS frameworks and ensure transparency.

Although the NIS allows for the deferral of some disclosures by one year, preparing sustainability information alongside the 2025 financial statements will present challenges for many entities. Understanding the key challenges will help ensure the use of reliable, useful, and verifiable data in sustainability documentation.
In Mexico, SMEs (Small and Medium Enterprises), which are not of public interest, face several challenges in preparing and disclosing the IBSO required by the NIS, such as:

  • Recognizing sustainability as part of the long-term strategy.
  • Identifying risks and opportunities in ESG (Environmental, Social, and Governance) issues.
  • Managing ESG risks and their potential impact on financial statements.
  • Addressing the costs of data collection, processing, reporting, monitoring, and verification.

With these standards, a positive change is expected in the way Mexican companies approach sustainability, encouraging them to support more responsible and sustainable practices.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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