The Honduran Accounting and Auditing Standards Board (JUNTEC) has issued a formal resolution adopting the IFRS Sustainability Disclosure Standards (IFRS S1 and S2) published by the International Sustainability Standards Board (ISSB).
As of January 1, 2028, the standards will be mandatory for:
- Entities supervised by the National Banking and Insurance Commission (CNBS)
- Large Taxpayers classified by the Tax Administration Service (SAR)
What do these standards require?
IFRS S1 and S2 aim to standardize the disclosure of sustainability and climate-related information. Companies will be required to report structured data on:
- Governance and risk management
- Sustainability and climate-related strategies
- Key performance metrics
- Short-, medium-, and long-term targets
This marks a paradigm shift: sustainability reporting moves from a voluntary practice to a regulatory requirement with financial implications.
Why does it matter for businesses in Honduras?
The adoption of these standards positions Honduras in line with global best practices for corporate transparency and capital market access. It also enables companies to:
- Enhance credibility with international investors and stakeholders
- Identify and mitigate ESG (Environmental, Social, Governance) risks
- Access more competitive and responsible financing
How can companies begin preparing?
Although implementation is due in 2028, organizations are encouraged to begin assessing their current capabilities, internal processes, and reporting frameworks now. This proactive approach allows for a smoother and more efficient transition.
In future posts, we will break down each standard, explore its components, and highlight international best practices applicable to the Honduran context.
At BLP, we will continue to monitor these regulatory developments and provide insights to support your organization’s preparedness.
Contact us at [email protected] for more information.