Colombia has entered the 2026 regulatory cycle with an environmental, social, and governance (ESG) maturity marked by contrasts. Findings from RSM’s 2025 Latin America ESG Landscape survey, conducted with over 250 companies across Latin America (LATAM), highlight both meaningful progress and persistent structural gaps among Colombian middle-market organisations as they move toward convergence with international standards such as IFRS S1 and S2.

While certain indicators position Colombia as an emerging benchmark in the region, implementation remains uneven. The coming phase will require a shift from intention to execution — strengthening data quality, institutionalising governance, and embedding ESG risks and climate considerations into financial and strategic decision-making.

This executive summary outlines Colombia’s key findings, areas requiring strategic focus, and priorities for business leaders in 2026.  

1. ESG reporting and disclosure

Key Findings

• Only 10.3% of Colombian companies prioritise reporting and disclosure, significantly below the LATAM average (26.47%).
• ESG report publication remains limited compared to the regional trend (34.31% across LATAM).
• Transparency and formal ESG communication are still developing within corporate agendas.

Strategic implications

ESG reporting in Colombia remains at an earlier stage of maturity compared to regional peers. Lower prioritisation reflects limited regulatory pressure and the absence of mandatory requirements similar to those in countries like Chile or Brazil.

However, convergence pressures are increasing. By the end of 2026, reporting practices are expected to evolve toward integrated reports with material key performance indicators (KPIs), data traceability, external assurance, and clear linkage to financial performance.

Three forces are accelerating this transition:

1. Demand from clients and global supply chains for comparable ESG data

2. Financing conditions tied to robust disclosures

3. International convergence toward IFRS S1/S2 standards

2. Corporate governance and ESG risk management

Key Findings

• 48.72% of Colombian companies prioritise ESG risk management, close to the LATAM average (50.75%).
• Corporate governance prioritisation declined from 42.22% in 2024 to 28.21% in 2025, below the regional average (52.26%).

Strategic implications

While ESG risk management is progressing, governance prioritisation has weakened, creating a strategic gap relative to the region.

Boards of directors will need to assume a more active role in overseeing ESG metrics, integrating sustainability risks into strategic planning, and transitioning governance from declarative commitments to structured internal control mechanisms aligned with IFRS S1.

3. Climate change and greenhouse gas (GHG) emissions

Key Findings

• 61.5% of companies prioritise climate change, GHG emissions, and/or ESG risks (vs 75.5% LATAM).
• Only 17.95% prioritise climate change (vs 26.63% across LATAM).
• Only 15.38% prioritise GHG emissions (vs 27.64% across LATAM).

Strategic implications

Climate prioritisation in Colombia remains below regional levels, particularly in the areas of emissions reduction and formal climate strategy.

The climate agenda is expected to shift toward execution through:

• GHG inventories covering Scopes 1 and 2 (and Scope 3 where material)
• Defined transition plans with allocated budgets
• Climate scenario modelling explaining financial resilience
• External assurance of climate data as a competitive differentiator

4. Structural Challenges

Key Findings

• 15.38% report difficulty measuring ESG KPIs (vs 25.13% across LATAM).
• 25.64% acknowledge lack of internal competencies (vs 30.15% across LATAM).
• Combined technical gaps affect more than 1/3 of companies.

Strategic implications

Although Colombia performs slightly better than the regional average in certain technical indicators, capability constraints remain material.

Convergence toward IFRS S1/S2 will require investment in:

• Process automation for GHG inventories and KPI capture
• Internal controls supporting audit and assurance
• Multidisciplinary teams trained in recognised methodologies

5. The rol of the Head of sustainability

Key Findings

• 62.5% of companies with a Head of Sustainability prioritise technical topics (vs 80% LATAM).
• 69.6% of companies without this role prioritise technical aspects more, suggesting the role typically remains culturally focused in Colombia.

Strategic implications

The Head of Sustainability in Colombia remains primarily culturally focused rather than technically driven. The role must evolve into a technical-strategic leader responsible for ESG data governance, climate scenario modelling, GHG target setting, and external assurance readiness.

This shift will be essential to linking sustainability performance with financial resilience and strategic decision-making.

6. Preparing for IFRS S1/S2

Key Findings

• 38.46% of companies declare themselves IFRS-ready, above the LATAM average (26.63%).
• Preparation remains concentrated on ESG Risks (56%), while reporting (11%), GHG Emissions (6%), and climate change (0%) lag significantly.

Strategic implications

Colombia’s IFRS readiness reflects intent, but operational execution remains uneven. The gap between ESG risk awareness and underdeveloped reporting and climate metrics creates exposure as global standards converge.

IFRS S1/S2 will become a credibility benchmark. Organisations that embed financially material ESG risks, strengthen governance accountability, and implement assured, traceable climate metrics will enhance investor confidence and access to capital.

Key considerations for Colombian businesses in 2026  

-Accelerating ESG reporting maturity With only 10.3% prioritising reporting and disclosure, Colombian companies could benefit from strengthening their transparency ahead of 2026. This could include developing integrated reports with material KPIs, improving data traceability, and preparing for external assurance to respond to growing demands from investors, banks, and global supply chains.

-Reinforcing governance and board oversight Given the decline in corporate governance prioritisation, boards of directors could take a more active role in embedding ESG risks into strategic planning. Organisations may consider formalising ESG oversight, requiring regular reporting on metrics and targets, and aligning governance frameworks with IFRS S1 expectations.

-Embedding ESG risks into enterprise risk management Although ESG risk management is close to the regional average, further depth in execution would strengthen resilience. This could include developing risk maps that incorporate physical and transition climate risks, conducting 1.5°C-aligned scenario analyses, and aligning capital and operating expenditure with mitigation and adaptation strategies.

-Moving from climate intention to measurable targets Climate and GHG prioritisation remain below regional levels. Establishing Scopes 1 and 2 inventories (and Scope 3 where material), defining credible emissions reduction targets, linking transition plans to financial impacts, and seeking external assurance can help enhance credibility and clarity.

-Closing technical and data capability gaps Despite performing slightly better than the regional average in some areas, technical constraints affect over a third of companies. Strengthening automation for KPI capture, enhancing internal controls to support audits, and building multidisciplinary ESG expertise could help to reduce reliance on external advisors.

-Shifting IFRS readiness from conceptual to operational Although 38.46% declare IFRS readiness, preparation remains concentrated on ESG risks rather than reporting and climate metrics. A greater focus on metric quality, automation of data processes, governance controls, and financially integrated, verifiable ESG disclosures would support a more operational approach..

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