ESG Global Vision

Environment, corporate governance

Varies between participating states 

CORSIA applies to airline operators who fulfil the following criteria:

• their annual CO2 emissions from international flights using aeroplanes with a take-off mass greater than 5,700kg exceed 10,000 tonnes (all major carriers meet this relatively low threshold);
• they are responsible for international flights (flights by state aircraft and humanitarian, medical, and firefighting flights, as well as flights before or after such flights which are carried out by the same aeroplane and are needed for these activities, are not included); and
• they are registered in one of the participating states (see the list as of 1 January 2026 here; notable omissions include India and China).

In 2010, the International Civil Aviation Organisation (ICAO), a United Nations Agency that sets global standards and regulations for international civil aviation, adopted a sectoral aspirational goal for carbon neutral growth from 2020 onwards. Whilst operational and technological improvements are seen as a key part of achieving this goal, the ICAO took the view that a market based scheme was required to fill the remaining emissions gap and to achieve carbon neutral growth. Accordingly, the International Standards and Recommended Practices for the implementation of CORSIA were adopted as an Annex to the Chicago Convention in 2016, to apply to all of ICAO’s 193 member states from 1 January 2019.

CORSIA is being implemented in three phases:

• The Pilot Phase (2021-2023) and the First Phase (2024-2026). During these phases participation by ICAO member states was voluntary. 126 member states participated, with flights between participating states subject to reporting and offsetting requirements.
• The Second Phase (2027-2035). During this phase, with some exemptions, such as for Least Developed Countries and Small Island Developing States, participation will become mandatory for all ICAO member states and all international flights will be subject to offsetting requirements. The Second Phase will be split into three-year compliance periods.

In scope airline operators are under the following obligations:

• To monitor and report emissions from international flights on an annual basis.
  • At the beginning of each 3-year compliance period, an operator is required to submit an Emissions Monitoring Plan to its administering state which, once approved, the operator will use for the entire compliance period.
  • Under the plan, the operator is required to monitor and record its fuel use for international flights over the course of each calendar year. The operator must then estimate their annual CO2 emissions and report them to the national authority of their administering state by 30 April the following year. To guarantee the accuracy of the data reported, operators will need their annual emissions report to be verified by an impartial third-party verification body prior to submission.
  • Aggregated emissions are required to be reported by each administering state to ICAO, which will publish the total emissions from individual operators.
• To offset their emissions.
  • Under the scheme, the administering state calculates the annual offsetting requirements for each operator by multiplying the operator’s CO2 emissions by a ‘Growth Factor’, which is calculated by the ICAO and represents the percentage growth of the aviation sector’s international CO2 emissions covered by CORSIA’s offsetting requirements in a given year compared to the sector’s baseline emissions (being 85% of 2019 emissions levels).
  • Upon completion of each 3-year compliance period, the operator will have to show they have met their offsetting requirements by purchasing and cancelling the appropriate number of certified CORSIA Eligible Emissions Units (“CEEUs”) (each representing a tonne of CO2). The price of these units varies considerably depending on the type of project ($0.50 to $45/tCO2e during 2020-2021 with a weighted average of $3.08/tCO2eq in 2021).
  • Operators can also reduce their offsetting requirements by using CORSIA Eligible Fuels (“CEFs”) that meet the CORSIA sustainability criteria, which includes fuels with at least 10% lower CO2e emissions on a life-cycle basis compared to a reference fossil fuel value of 89.1 gCO2e/MJ. It is worth noting that as the baseline for calculating emissions reduction targets is 85% of 2019 emissions levels, offsetting requirements will only cover the growth in emissions since 2019 and therefore it is anticipated that the percentage of their total emissions that operators will have to offset will remain modest for the first few years of implementation of the scheme.

For more information, please follow the link here.

Penalties and enforcement:

National aviation authorities of participating states determine the sanctions for non-compliance, so these vary between countries. In the UK, for example, typical civil penalties can include a £20,000 penalty with a further daily penalty of £500 for failing to: (i) apply or revise an emissions monitoring plan; (ii) monitor emissions properly; or (iii) submit emissions reports. In recent consultations, the UK government has indicated that the penalties for failing to cancel CEEUs on time in line with an airline’s offsetting requirements would be £100 for each uncancelled unit.

Corporate Governance for all Companies

In force

Mandatory for  publicly traded companies and optional for close companies

Created by the Business Coordinating Council to help companies to establish their corporate governance, in order to promote institutionalization, generate value and confidence for shareholders and stakeholders.

This also aims to determine the responsibilities and functions of each of the main and intermediate bodies and officers of the companies. The Code has taken into consideration the guidelines and principles published by the OECD in this matter.

Corporate Governance for all Companies

In force

Companies that carry out activities deemed as vulnerable or risky pursuant to the law

Created to protect the financial system and the national economy, this Law establishes measures and procedures to prevent and detect acts or operations that involve resources of illicit origin.

The law classifies certain activities as risky depending mainly on the amount and nature of the transaction. Once certain thresholds are reached, companies are required to identify their customers (KYC), collect certain information and, if necessary, file notices to the competent authorities with certain information on the executed transaction.

In addition, the law forbids the execution of certain transactions mainly when they are paid using unbanked money.

Policy

In force

Private companies and employees.

Establishes safety conditions required to protect the physical integrity and health of employees with disabilities in the workplace, as well as for their access to the workplace.

Environment, corporate governance

Varies between participating states 

CORSIA applies to airline operators who fulfil the following criteria:

• their annual CO2 emissions from international flights using aeroplanes with a take-off mass greater than 5,700kg exceed 10,000 tonnes (all major carriers meet this relatively low threshold);
• they are responsible for international flights (flights by state aircraft and humanitarian, medical, and firefighting flights, as well as flights before or after such flights which are carried out by the same aeroplane and are needed for these activities, are not included); and
• they are registered in one of the participating states (see the list as of 1 January 2026 here; notable omissions include India and China).

In 2010, the International Civil Aviation Organisation (ICAO), a United Nations Agency that sets global standards and regulations for international civil aviation, adopted a sectoral aspirational goal for carbon neutral growth from 2020 onwards. Whilst operational and technological improvements are seen as a key part of achieving this goal, the ICAO took the view that a market based scheme was required to fill the remaining emissions gap and to achieve carbon neutral growth. Accordingly, the International Standards and Recommended Practices for the implementation of CORSIA were adopted as an Annex to the Chicago Convention in 2016, to apply to all of ICAO’s 193 member states from 1 January 2019.

CORSIA is being implemented in three phases:

• The Pilot Phase (2021-2023) and the First Phase (2024-2026). During these phases participation by ICAO member states was voluntary. 126 member states participated, with flights between participating states subject to reporting and offsetting requirements.
• The Second Phase (2027-2035). During this phase, with some exemptions, such as for Least Developed Countries and Small Island Developing States, participation will become mandatory for all ICAO member states and all international flights will be subject to offsetting requirements. The Second Phase will be split into three-year compliance periods.

In scope airline operators are under the following obligations:

• To monitor and report emissions from international flights on an annual basis.
  • At the beginning of each 3-year compliance period, an operator is required to submit an Emissions Monitoring Plan to its administering state which, once approved, the operator will use for the entire compliance period.
  • Under the plan, the operator is required to monitor and record its fuel use for international flights over the course of each calendar year. The operator must then estimate their annual CO2 emissions and report them to the national authority of their administering state by 30 April the following year. To guarantee the accuracy of the data reported, operators will need their annual emissions report to be verified by an impartial third-party verification body prior to submission.
  • Aggregated emissions are required to be reported by each administering state to ICAO, which will publish the total emissions from individual operators.
• To offset their emissions.
  • Under the scheme, the administering state calculates the annual offsetting requirements for each operator by multiplying the operator’s CO2 emissions by a ‘Growth Factor’, which is calculated by the ICAO and represents the percentage growth of the aviation sector’s international CO2 emissions covered by CORSIA’s offsetting requirements in a given year compared to the sector’s baseline emissions (being 85% of 2019 emissions levels).
  • Upon completion of each 3-year compliance period, the operator will have to show they have met their offsetting requirements by purchasing and cancelling the appropriate number of certified CORSIA Eligible Emissions Units (“CEEUs”) (each representing a tonne of CO2). The price of these units varies considerably depending on the type of project ($0.50 to $45/tCO2e during 2020-2021 with a weighted average of $3.08/tCO2eq in 2021).
  • Operators can also reduce their offsetting requirements by using CORSIA Eligible Fuels (“CEFs”) that meet the CORSIA sustainability criteria, which includes fuels with at least 10% lower CO2e emissions on a life-cycle basis compared to a reference fossil fuel value of 89.1 gCO2e/MJ. It is worth noting that as the baseline for calculating emissions reduction targets is 85% of 2019 emissions levels, offsetting requirements will only cover the growth in emissions since 2019 and therefore it is anticipated that the percentage of their total emissions that operators will have to offset will remain modest for the first few years of implementation of the scheme.

For more information, please follow the link here.

Penalties and enforcement:

National aviation authorities of participating states determine the sanctions for non-compliance, so these vary between countries. In the UK, for example, typical civil penalties can include a £20,000 penalty with a further daily penalty of £500 for failing to: (i) apply or revise an emissions monitoring plan; (ii) monitor emissions properly; or (iii) submit emissions reports. In recent consultations, the UK government has indicated that the penalties for failing to cancel CEEUs on time in line with an airline’s offsetting requirements would be £100 for each uncancelled unit.

Environmental law

In force

All individuals and entities

This is the foremost environmental law in Mexico that assigns powers on a federal, state and municipal level, as well as mandates basic obligations and regulation in terms of air, water and soil quality.

Environmental Decree

in force

Public and private entities and individuals

This Decree creates reforms that allow the private sector to participate in oil and gas extraction and exploration activities through the execution of contracts with the State. This also creates reforms that allow the private sector to participate in the generation, supply and marketing of electric power. Before the Decree these activities were exclusively the preserve of the State.

Environmental Law

In force

All individuals and entities

This is the foremost waste-related law in Mexico that sets out powers for federal and local authorities, as well as the general framework for management of solid urban, special management and hazardous wastes.

Environmental Law

In force

All individuals and entities

This Law sets out the environmental liability framework applicable to all individuals and entities in Mexico that have caused or may have caused environmental damage; including the relevant sanctions and claim procedures.

Legislation

In force

Public and private entities and individuals

This Law regulates the generation, transmission, distribution, marketing and supply of electrical power.

It also regulates the operation of the National Electric System and Wholesale Electric Market, both carried by the National Energy Control Centre. Moreover, it provides for the permits that must be obtained for the generation and supply of electrical power.

In the last two years, bills have been submitted before the Chamber of Deputies and Senators to reform the law to restrict the participation of the private sector in the electricity industry activities. However, to date none of these bills have passed.

Legislation

In force

Public and private entities and individuals

Electricity Industry Law on the generation, transmission, distribution, marketing and supply of electric power and operation of the National Electric System and Wholesale Electric Market.

Antitrust Competition Law

In force

Private and Public entities

Cartels in Mexico are governed by the 2014 Competition Act, formally known as the Federal Economic Competition Law. The Competition Act details the constitutional provision set out in the Federal Constitution at §28, which provides a general ban on monopolies and monopolistic practices and serves as the basis for the national competition policy. The Mexican Constitution provides only for federal legislation (2014 Competition Act) and therefore, there are no state competition statutes. Likewise, the Mexican Constitution §28 created the Federal Competition Commission (“Cofece”) and the Federal Telecommunications Institute (“IFT”). No other government body can apply the 2014 Competition Act.

Bribery and Corruption Law

In force

Private and Public entities

In July 2017 the National Anticorruption System (“NAS”) came into force in Mexico. The NAS is comprised of federal and local authorities and a citizenship committee and is intended to prevent, fight against and punish corrupt practices carried out by private parties (companies and individuals) or public officials. Specific federal and local laws—which are constantly updated are intended to punish conducts related to corruption and bribery.

Law

In force

All entities and individuals, either public or private

This statute establishes the requirements for positioning a product as “organic”, “natural”, etc., promoting the product´s safety and truthful information in order to not mislead the consumers.

It also sets out the process to be followed for the manufacture, handling and processing of organic products in order ensure that the same comply with the requirements for being considered as organic. 

Law

In force

Genetically modified products.

This statute establishes the protection of consumers´ right to obtain truthful information on the labelling of products that contain genetically modified organisms/ingredients. The statute promotes companies’ social responsibility and well-being of society and the environment while lessening negative impacts on them.

Law

In force

All entities and individuals, either public or private.

This statute establishes the rules for the marketing, offering and advertising of practically all products and services marketed/provided in Mexican territory in order to protect consumers’ rights and avoid any violation related to commercial information, consumer safety (including recall processes and the honouring of warranties), and false advertising.

It promotes sustainable relationships between consumers and providers, as well as companies’ social responsibility to provide truthful information.

Law

In force

All entities and individuals, either public or private.

This statute establishes the requirements to issue products to specific technical standards as well as sets the rules for the surveillance and enforcement of different provisions that may impact on consumers’ rights.

The law is aimed at promoting economic development and social responsibility under a fair basis and environmentally sustainably.

Law

In force

All entities and individuals, either public or private.

This statute establishes the rules and requirements for products containing modified organisms/ingredients, health products and services  subject to sanitary control (e.g., drugs, medical devices, alcoholic beverages, cosmetics, dietary supplements, etc.). It is intended to force companies to offer safe and compliant products supporting business integrity and the promotion of a compliance culture.

This statute protects consumers’ right to obtain truthful information on the labelling and advertising of the above products.

Technical Standard

In force

All entities and individuals, either public or private.

This statute establishes the rules and standards for complying with the relevant labelling requirements for pre-packaged food and non-alcoholic beverages. The statute is aimed at forcing corporations to provide truthful and complete information to consumers in connection with the products’ specifications, nutrients, ingredients, characteristics, as well as their environmental and sustainability claims.

Public Policy

In force

All companies

This law provides that agencies and entities must encourage the purchase of furniture and office supplies through bidders that are compelled to guarantee the sustainable origin and management of federal resources and that are registered with the Secretaría de Medio Ambiente y Recursos Naturales (Ministry of the Environment and Natural Resources).

In this way, the Mexican government seeks to promote the growth of new production models and encourage sustainable development; likewise, to generate invitations or direct allocations to marginalized urban groups, or to award points for the allocation of bids to companies that have 5% of employees with disabilities, etc. By doing so, the relevant agencies and entities (as part of the public procurement procedures) are compelled to include the applicable requirements or certificates that service providers or suppliers must meet in order for their proposals to be assessed and awarded, if applicable.