Should ISSB Live in a Separate Document?

As Mexican companies are set to report ISSB indicators starting next year (S1/S2), they will have to make a format choice: publish a standalone ISSB pack or rebuild their sustainability report around S1/S2. We have been getting this question from some of them, so we want to share our thoughts around this.

Option 1: One ISSB-Aligned Report (Redesign the current report)

• Pros:
  • One source of information for everyone means less questions from investors and analysts on where they can find things.
  • Being able to implement the shift is a sign of maturity of both the strategy and the information management processes.
  • More efficient over time (as you don’t need to work on 2 documents simultaneously).

• Cons:
  • Requires a big shift in your annual report.
  • Needs stronger controls for all data.
  • Third party revisions (verification, regulator) will scrutinize the whole thing.

• Best for companies that have:
  • A mature data governance.
  • Big market audiences.
  • Well identified links to financial statements.

Option 2: Standalone ISSB “Disclosures Pack”

• Pros:
  • Easier to do while you harden systems for full integration later.
  • Allows for a shorter, more focused, document for stakeholders that only care about ISSB.
  • Storytelling on community impact, case studies, or other relevant corporate topics can be highlighted separately.

• Cons:
  • You will need to work on two documents simultaneously, which raises the risk for misalignment.
  • May be a sign of immaturity in sustainability efforts.
  • Stakeholders have to move from one document to another and may miss important information.

• Best for companies that have:
  • Not yet fully grasped the connection between all material topics and the ISSB methodology.
  • Less resources for reporting (you can first publish the regulatory disclosures and then spend more time on your storytelling).
  • Less preparation for independent assurance.

Must-Haves (whichever path)

• Double Materiality should guide your reporting (and your strategy).
• For all metrics clearly define your assumptions, methodologies, and internal controls.
• Make sure information is easily identifiable in your documents.

Remember the goal isn’t just to add more pages to your previous report… it’s to provide useful information that connects sustainability to enterprise value. Pick the option you can execute credibly and remember things can (and will) be improved every year.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.

Best,

Marimar

CEO, Miranda ESG