ESG & carbon reporting in Latin America
Across Latin America, sustainability reporting is moving from voluntary to mandatory, largely by adopting the ISSB’s IFRS S1 and S2 standards. Brazil’s securities regulator (CVM) makes ISSB-based reporting mandatory for listed companies from 2026, and Mexico’s CNBV requires IFRS S1/S2-aligned reports for issuers from the 2025 financial year. Companies of all sizes increasingly face value-chain ESG requests.
Key regulations
Adopts the ISSB IFRS S1/S2 standards — voluntary since 2024 and mandatory for listed companies and certain regulated entities from 1 January 2026, with assurance phased in.
A January 2025 resolution requires securities issuers to prepare IFRS S1/S2-aligned sustainability reports from the 2025 financial year (filed in 2026), with assurance phased in.
The IFRS Foundation and the Inter-American Development Bank are supporting ISSB adoption across the region, making IFRS S1/S2 the emerging common baseline.
Who must report
Requirements vary by country and currently focus on listed companies and regulated entities. Smaller companies are largely outside direct mandates but face growing ESG data requests through supply chains.
Relevant frameworks
- GHG Protocol — Greenhouse Gas Protocol Corporate Standard
- Costa Rica PPCN — Programa País Carbono Neutralidad 2.0 (Costa Rica)
- CDP — CDP — global environmental disclosure platform
Frequently asked questions
Is sustainability reporting mandatory in Latin America?
Increasingly yes, via ISSB adoption. Brazil mandates ISSB-based reporting for listed companies from 2026, and Mexico requires IFRS S1/S2-aligned reports from the 2025 financial year. Rules differ by country.
Which standard does Latin America use?
The emerging common baseline is the ISSB’s IFRS S1 and S2, which build on the GHG Protocol.