MEXICO Law and Practice Contributed by: Pablo Perezalonso Eguía, Isabel Ortiz-Monasterio Borbolla and Alejandro Mosqueda Pérez, Ritch, Mueller y Nicolau, S.C.
Amendments to financial laws Recent changes to the Securities Market Law and Mutual Funds Law (November 2023) rein - force climate action. These amendments empower the Ministry of Finance to issue pro - visions for monitoring sustainable development and gender equality within securities markets. This legal framework promotes accountability and transparency among financial institutions. Sustainability Information Standards (NIS) In May 2024, the Mexican Council for Financial Information and Sustainability Standards intro - duced NIS A-1 and B-1. • NIS A-1 – establishes a conceptual frame - work for sustainability disclosures, providing quality and consistency standards. • NIS B-1 – requires disclosure of Basic Sustainability Indicators (IBSO), promot - ing transparency on entities’ sustainability performance. These standards are harmonised with interna - tional frameworks like the IFRS Sustainability Disclosure Standards, ensuring Mexico’s align - ment with global practices. Self-assessment tool for ESG risks Developed by the CNBV, this tool helps financial institutions evaluate their integration of ESG fac - tors and climate-related risks. Based on global guidelines, it covers: • corporate governance for sustainability;
• Agriculture – includes farming, forestry, and greenhouse operations. • Energy and water supply – encompasses renewable energy and water treatment pro - jects. • Construction – focuses on sustainable hous - ing and infrastructure. • Manufacturing – covers industries like cement and steel with climate mitigation thresholds. • Transportation – targets sustainable public and freight transport systems. • Waste management – supports recycling and safe waste disposal practices. This taxonomy mandates financial institutions to consider sustainability metrics when funding projects, ensuring they align with climate change adaptation, gender equality, and basic service access objectives. Sustainable financing mobilisation strategy Published in September 2023, this strategy is designed to align Mexico’s financial system with sustainability goals. Its three pillars include the following. • Sustainable public financial management – integrating sustainability into public finance systems. • Sustainable financing mobilisation – encour - aging private-sector investment in sustainable projects. • Transversal actions – promoting inclusive - ness, gender equality, and social impact monitoring. The strategy fosters a conducive environment for ESG-compliant financial practices, including low-cost financing for sustainable activities and transparent information disclosure.
• ESG factors in operations; and • climate-related risk mitigation.
The tool generates confidential reports for inter - nal use while providing aggregated benchmarks for Mexico’s financial sector.
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