What is NIS B-1 and why it matters for companies in Mexico
On 13 May 2024, Mexico’s Consejo Mexicano de Normas de Informacion Financiera y Sostenibilidad (CINIF) published two landmark sustainability reporting standards: NIS A-1 (the conceptual framework) and NIS B-1 (the indicator standard). These Normas de Informacion de Sostenibilidad (NIS) took effect on 1 January 2025, making Mexico one of the first countries in Latin America to mandate structured sustainability disclosure integrated directly into financial statements.
NIS B-1, formally titled “Indicadores Basicos de Sostenibilidad” (Basic Sustainability Indicators), requires companies reporting under Mexico’s NIF accounting standards to determine, calculate, and disclose 30 specific sustainability metrics known as IBSO (Indicadores Basicos de Sostenibilidad). Unlike other frameworks that allow materiality-based selection, NIS B-1 requires all 30 indicators to be reported regardless of sector, size, or perceived relevance. Even if an indicator’s value is zero, the company must disclose it.
The first mandatory disclosure period covers fiscal year 2025, with reports due alongside the 2026 financial statements. This means companies need to have data collection systems in place now. The IBSO must be presented as notes to the annual financial statements prepared under NIF, not as a separate sustainability report. This integration into financial reporting elevates sustainability data to the same level of formality as traditional accounting disclosures.
The 30 IBSO indicators: environmental, social, and governance
NIS B-1 defines 30 indicators organized across three ESG pillars. Of these, 21 are quantitative (requiring numerical values) and 9 are qualitative (requiring descriptive disclosures). Every quantitative indicator must be reported as both an absolute value and a relative value to enable comparability across companies of different sizes.
Environmental indicators (16)
The environmental pillar accounts for more than half of all IBSO. These 16 indicators cover seven core topics:
Greenhouse gas emissions (GHG)
Companies must report Scope 1 emissions (direct emissions from owned or controlled sources), Scope 2 emissions (indirect emissions from purchased energy), and Scope 3 emissions (all other indirect emissions across the value chain). GHG reporting follows the methodology established by the GHG Protocol. Scope 3 benefits from a transitional relief: companies may defer its inclusion until the end of fiscal year 2026, provided they disclose this deferral explicitly.
Energy consumption
Total energy consumption must be disclosed alongside the percentage sourced from renewable energy. These indicators help assess a company’s energy transition progress and operational efficiency.
Sustainable activities and investment
Companies must report the proportion of their activities and investments that qualify as sustainable under the criteria established by NIS B-1. This indicator received transitional relief similar to Scope 3, allowing deferral until end of fiscal year 2026.
Water use
Four water-related indicators cover: total water withdrawal, water reuse and recycling rates, wastewater discharge volumes, and water use in areas classified as water-stressed. For companies operating in water-intensive sectors (agriculture, mining, food processing), these indicators carry particular significance.
Biodiversity
Companies must disclose whether their operations are located near or within protected areas or zones of high biodiversity value. This indicator reflects growing regulatory attention to nature-related risks, aligned with frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD).
Ozone-depleting substances
The use and dependency on substances and chemical products that deplete the ozone layer must be reported. This applies to companies using refrigerants, aerosols, or industrial solvents subject to the Montreal Protocol.
Waste management
Total waste generation must be reported, disaggregated by hazardous and non-hazardous categories, along with reuse and recycling rates. This provides visibility into a company’s circular economy practices and compliance with Mexican environmental regulations (NOM standards).
Social indicators (6)
The social pillar focuses on workforce conditions and human capital management:
Gender pay gap: the difference in compensation between male and female employees, disclosed as a ratio or percentage.
Average training hours: hours of professional development per employee per year, reflecting investment in human capital.
Performance evaluations: the percentage of employees who received formal performance reviews during the period.
Occupational accidents and illnesses: rates of work-related injuries and health incidents, aligned with occupational safety metrics (NOM-035 and similar Mexican standards).
Equal opportunity policies: a qualitative description of the company’s equal opportunity and non-discrimination policies and practices.
Health and safety management: a qualitative description of the occupational health and safety management system in place.
Governance indicators (8)
The governance pillar addresses corporate oversight and ethical practices:
Board of directors: whether the company has a formal board of directors, its composition, and member profiles.
Women on the board: the percentage of female board members, providing a measurable diversity metric.
Independent oversight body: whether the company has an independent supervisory or audit body that operates separately from management.
Risk management policy: a qualitative description of the company’s risk identification, assessment, and mitigation framework.
Sustainability strategy: a qualitative description of the company’s sustainability goals, commitments, and strategic approach.
Code of ethics and integrity: whether the company has adopted a formal ethics code and the mechanisms for reporting violations (whistleblower channels).
Information security: policies and practices related to cybersecurity and protection of digital assets.
Data privacy protection: policies ensuring the protection of personal data in compliance with Mexico’s Ley Federal de Proteccion de Datos Personales en Posesion de los Particulares (LFPDPPP).
How NIS B-1 differs from ISSB, CSRD, and other frameworks
Understanding where NIS B-1 sits in the global landscape helps companies operating across jurisdictions plan their reporting strategy.
NIS B-1 vs. IFRS S1/S2 (ISSB): The ISSB standards apply to publicly listed companies in Mexico through the CNBV mandate. NIS B-1, by contrast, was designed by CINIF for private companies reporting under NIF. While both frameworks share the goal of sustainability disclosure, ISSB standards are principles-based and require materiality assessments. NIS B-1 is indicator-based with no materiality threshold: all 30 IBSO must be reported. CINIF has stated that NIS B-1 will progressively converge with ISSB standards over time.
NIS B-1 vs. CSRD/ESRS: The EU’s Corporate Sustainability Reporting Directive requires double materiality assessments and uses the European Sustainability Reporting Standards (ESRS), which contain over 1,100 potential data points. NIS B-1 is simpler in scope (30 fixed indicators) but shares many of the same underlying metrics, particularly around GHG emissions, energy, water, and governance. Companies subject to both frameworks can build a common data layer and map outputs to each standard’s specific requirements.
NIS B-1 vs. GRI: The Global Reporting Initiative uses a modular, materiality-based approach where companies select relevant standards. NIS B-1 mandates all 30 indicators universally. Companies already reporting under GRI will find significant overlap but should not assume GRI compliance equals NIS B-1 compliance. The specific calculation methodologies and presentation formats differ.
Timeline: key dates for NIS B-1 compliance
| Milestone | Date | Details |
|---|---|---|
| NIS published by CINIF | May 2024 | NIS A-1 and NIS B-1 officially issued |
| Standards take effect | 1 January 2025 | Mandatory application begins |
| First data collection period | Fiscal year 2025 | Companies must collect all 30 IBSO |
| First mandatory report | 2026 | IBSO disclosed in financial statement notes |
| Scope 3 and sustainable investment relief expires | End of FY 2026 | Full disclosure of all 30 indicators required |
| External audit (limited assurance) for public companies | 2027 | Applies to CNBV-regulated entities under ISSB |
| External audit (reasonable assurance) for public companies | 2028 | Full assurance over sustainability data |
For private companies, the IBSO are classified as “other information” within the financial statements. The Mexican Institute of Public Accountants (IMCP) has clarified that auditors are not required to audit the IBSO directly, but they must apply “other information” procedures since the indicators appear within audited financial statements.
How to prepare your company for NIS B-1 reporting
1. Conduct a gap analysis against the 30 IBSO
Map your current sustainability data collection against each of the 30 indicators. Identify which metrics you already track (many companies report GHG emissions and energy consumption voluntarily), which ones require new data sources, and which ones need calculation methodology alignment with NIS B-1 specifications. Pay particular attention to water indicators, ozone-depleting substances, and governance metrics, which are often gaps for companies new to structured sustainability reporting.
2. Build automated data collection infrastructure
Collecting 30 indicators manually from scattered internal systems (utility bills, HR platforms, environmental permits, board minutes) is time-consuming and error-prone. Dcycle’s automated data collection platform connects directly to these sources, extracting and validating the data needed for each IBSO. This eliminates spreadsheet-based workflows and creates the audit trail that financial statement auditors will review.
3. Calculate emissions with verified methodologies
GHG emissions (Scopes 1, 2, and 3) represent the most technically complex IBSO. Scope 3 alone can account for 70% to 90% of a company’s total emissions and requires supplier engagement, spend-based modeling, or activity data from across the value chain. Dcycle’s carbon footprint measurement capabilities use verified emission factors and support multiple calculation methodologies aligned with the GHG Protocol, which is the reference standard for NIS B-1’s emissions indicators.
4. Prepare the reporting format
NIS B-1 requires IBSO to be presented in tabular format within the notes to financial statements. Each quantitative indicator must show absolute and relative values. Qualitative indicators require structured descriptions. Start working with your finance and accounting teams now to define how the IBSO tables will integrate into your existing financial statement note structure.
5. Plan for Scope 3 early
The transitional relief on Scope 3 emissions expires at the end of fiscal year 2026. Companies that delay Scope 3 preparation will face compressed timelines and higher costs. Begin by mapping your highest-emitting Scope 3 categories (typically purchased goods and services, upstream transportation, and business travel) and establishing data collection channels with key suppliers. For companies with complex supply chains, starting early is essential.
What comes next: CINIF’s second-phase standards
NIS B-1 represents the first phase of Mexico’s sustainability reporting framework. CINIF has announced that a second phase will introduce more complex standards covering:
- Detailed risk and opportunity assessment (beyond the current qualitative governance indicators)
- Climate-specific scenario analysis and transition planning
- Sector-specific sustainability metrics
- Progressive convergence with IFRS S1 and S2
Companies that build robust data infrastructure for the current 30 IBSO will be better positioned to absorb these additional requirements without starting from scratch.
Next steps
The NIS B-1 deadline is not theoretical. Fiscal year 2025 data is being generated right now, and it must be collected, calculated, and disclosed in the 2026 financial statements. Companies that have not begun preparation are already behind.
For a detailed assessment of how your current data infrastructure maps to the 30 IBSO requirements, request a demo of the Dcycle platform. The platform’s automated data collection, multi-framework calculation engine, and financial-statement-ready reporting capabilities are designed for exactly this type of regulatory transition.
For additional context on CNBV’s ISSB mandate for public companies and how international sustainability standards are evolving, explore the carbon footprint reporting collection.