Frequently asked questions
Clear answers on environmental regulation, ESG criteria, carbon footprint and Sustainability Reporting Standards for companies in Mexico.
Environmental regulation
1. What environmental obligations does my company have to meet?
Environmental obligations depend on each company's activities, processes, location and characteristics. They can include environmental impact authorizations, operating licenses, the Annual Operating Report (COA), waste management plans, control of air emissions and wastewater discharges, and compliance with Mexican Official Standards (NOM) and applicable federal, state and municipal regulations. An assessment of the applicable requirements identifies each obligation and defines the actions needed to comply.
2. How can I tell whether my company complies with current environmental regulations?
Through an environmental compliance assessment that identifies the applicable legal requirements, reviews permits and authorizations, evaluates operating procedures and verifies the related documentation. This analysis identifies gaps and defines corrective and preventive actions, with deadlines and owners.
3. What is an environmental legal requirements matrix?
It is a tool that identifies, organizes and tracks the legal and administrative provisions that apply to an organization in environmental matters. It makes it easier to assign responsibilities, update obligations when regulations change and evaluate compliance periodically.
4. What are the consequences of failing to comply with environmental regulations?
Non-compliance can lead to fines, temporary or permanent closures, corrective measures, operating restrictions and reputational damage, depending on the applicable provision and the severity of the violation. Environmental authorities, such as PROFEPA and its state counterparts, can carry out inspections at any time. Identifying environmental obligations early reduces these risks and strengthens the company's management.
5. What does the General Law on the Circular Economy mean for my company?
The General Law on the Circular Economy was published in the Official Gazette of the Federation (DOF) on January 19, 2026, and introduces Extended Producer Responsibility: whoever places a product on the market is also responsible for what happens to it at the end of its useful life. Its obligations will take effect when SEMARNAT publishes implementation agreements by sector or by product. In the meantime, it is advisable to measure product carbon footprints, document waste management plans and make sure environmental claims are substantiated, because the law prohibits false information about environmental attributes. Read our full analysis in the Regulatory update section.
ESG criteria
6. What does ESG mean and how does it apply to a company?
ESG refers to the environmental, social and governance criteria used to assess how an organization manages its sustainability impacts, risks and opportunities. Integrating them strengthens decision-making, improves risk management and meets the expectations of clients, investors, authorities and communities.
7. How can my company develop an ESG strategy?
The process starts with an assessment of current practices, identification of the issues that matter to the organization and evaluation of its risks and opportunities. Based on the results, objectives, indicators, owners and follow-up actions are set, aligned with the business strategy.
8. How can I identify my company's main environmental and sustainability risks?
Through an assessment that considers operating activities, legal requirements, environmental and social impacts, stakeholder expectations and potential financial effects, such as fines, energy costs or loss of clients. The assessment makes it possible to prioritize risks, identify opportunities for improvement and define management measures suited to the organization's needs.
9. Which ESG indicators should my company measure?
Indicators depend on each organization's activity, size, impacts and objectives. They can include energy and water consumption, greenhouse gas emissions, waste generation, occupational safety, training, diversity, business ethics and governance mechanisms. The selection should reflect the relevance of each aspect and the applicable requirements, such as the basic indicators set out in NIS B-1.
Carbon footprint and credits
10. How can my company measure and manage its carbon footprint?
Measurement requires gathering information on the organization's emission sources, defining the boundaries of the inventory and quantifying greenhouse gas emissions with internationally recognized methodologies, such as the GHG Protocol and ISO 14064. The inventory distinguishes direct emissions (Scope 1), emissions from energy consumption (Scope 2) and value chain emissions (Scope 3). The results identify the main emission sources, set reduction targets and track the organization's climate performance.
11. What are carbon and biodiversity credits, and how can my company take part?
A carbon credit represents one tonne of carbon dioxide equivalent reduced or removed from the atmosphere by a project, verified by an independent third party under a recognized standard, such as Verra's Verified Carbon Standard (VCS). Biodiversity credits certify measurable results in ecosystem conservation or restoration. A company can take part by purchasing credits to offset the emissions it cannot reduce, by funding conservation projects through Payment for Environmental Services schemes, or as an investor in projects under development, such as Progreso Sostenible Humedales México (PSHM). Offsetting complements, and does not replace, reducing a company's own emissions, and each credit must be retired in the corresponding registry to avoid double counting.
Sustainability Reporting Standards (NIS)
12. What are the Sustainability Reporting Standards (NIS)?
The NIS (Normas de Información de Sostenibilidad) are standards issued in Mexico by the Mexican Financial Reporting Standards Board (CINIF) that set criteria for preparing and disclosing sustainability information. NIS A-1 defines the conceptual framework and NIS B-1 sets out the basic sustainability indicators. Their purpose is to make information on environmental, social and governance matters structured, consistent and comparable.
13. Is my company required to apply the NIS?
Yes, if it issues financial statements under Mexican Financial Reporting Standards (NIF). NIS A-1 and B-1 are effective for fiscal years beginning on or after January 1, 2025, and the first year allows certain transition reliefs. In addition, issuers regulated by the National Banking and Securities Commission (CNBV) must file their first annual sustainability report in 2026, covering fiscal year 2025, under the international sustainability disclosure standards (IFRS S1 and S2) adopted by the CNBV. Each organization should review its specific situation to determine the scope of the information it must prepare.
14. What information does my company need to gather to comply with the NIS?
It needs to identify the applicable indicators and set up mechanisms to collect, document and validate the corresponding information. This can include environmental, social and governance data, such as energy and water consumption, greenhouse gas emissions, waste, working conditions and corporate governance practices, as required by NIS B-1.
15. How can my company prepare to implement the NIS?
We recommend carrying out an initial assessment, identifying the applicable indicators, evaluating data availability and quality, assigning internal owners and setting up collection and validation procedures. With these elements, the organization can develop a work plan to close the gaps identified and strengthen its reporting processes.
16. What is the difference between environmental regulation, ESG and the NIS?
Environmental regulation sets legal obligations that must be met when they apply. ESG criteria make it possible to assess and manage environmental, social and governance aspects within the company's strategy. The NIS establish how sustainability information is disclosed. They are distinct but complementary areas: complying with the law is the foundation, the ESG strategy organizes management, and the NIS make the results transparent.
Working with CO2SFC
17. How can a specialized consultancy help my company with environmental and sustainability matters?
A specialized consultancy helps identify environmental obligations, assess legal compliance, develop ESG strategies, measure indicators and prepare sustainability information in line with applicable requirements. At CO2SFC we work in four stages:
- Measurement and assessment: we evaluate environmental performance through inventories, indicators, impact analysis and review of regulatory obligations.
- Prevention and mitigation: we develop strategies and action plans to reduce impacts, optimize resources and strengthen compliance.
- Offsetting and conservation: we implement environmental offset mechanisms and participation in ecosystem conservation and restoration projects.
- Monitoring and engagement: we track results with indicators and report performance to clients, partners and stakeholders, aligned with the Sustainable Development Goals.
18. What does the 30-minute ESG assessment include?
The 30-minute ESG assessment is free of charge and is carried out by email. When you request it, we send you a short questionnaire about your company's activities, its current environmental obligations, the sustainability information it already has and its objectives. Completing it takes about 30 minutes. Based on your answers, our team identifies the main gaps and priorities and sends you initial recommendations with suggested next steps. Requesting the assessment does not commit you to hiring our services.
Have another question?
Write to us and our team will reply. You can also request a free ESG assessment.