By Lizbet Espinosa
As of January 1, 2025, Sustainability Reporting Standards (SRS) are mandatory for all companies that use Financial Reporting Standards (FRS) as their regulatory framework. This change represents a significant evolution in the regulatory framework from an optional measure to a mandatory requirement to ensure transparency and accountability in corporate governance.
What do these standards imply for companies?
These provisions are not optional. Sustainability standards require:
- Integration of 30 key metrics, called Basic Sustainability Indicators (BSI), to be incorporated in the notes to the financial statements.
- Detailed reports on environmental, social and governance(ESG) impact management as part of annual reports.
- Increased oversight by regulatory authorities to ensure compliance.
Non-compliance can result in regulatory sanctions, funding restrictions, and significant reputational damage.
Why is it crucial to act now?
The implementation of these standards is designed to promote sustainability, but also imposes strict deadlines. Starting in 2025:
- Companies required to report under MFRS must include information on emissions, resource management, and impact on communities.
- Sectors such as the energy, manufacturing, and financial sectors will face stricter controls.
- Investors and business partners will demand greater transparency, which could directly influence access to capital and market opportunities.
Key steps to ensure compliance
Given the mandatory nature of these regulations, it is extremely important for regulated entities:
- Conduct an internal legal and environmental audit to assess its level of compliance.
- Establish protocols for the collection and analysis of sustainability-related data.
- Train your team on the new provisions and their legal and operational implications.
- Consult with legal and financial experts for proper implementation.
Compliance with sustainability reporting standards is not just a matter of legality, but an opportunity to ensure competitiveness in the global marketplace. Sustainability is no longer an option; it is an obligation.
At Vega, Guerrero y Asociados, we provide specialized environmental consulting services to ensure efficient compliance with the standards established by the environmental regulatory framework, both nationally and internationally.
If you require further information or assistance, please contact us.
