The way companies measure and communicate their impact is undergoing a profound change. The Technical Accounting Board of the Republic of Panama issued Resolution 12-2025 to formally adopt the IFRS Sustainability Disclosure Standards. These standards, published by the International Sustainability Standards Board (ISSB), mark a turning point in corporate transparency.

Understanding this resolution helps your organisation anticipate market demands. Business leaders no longer ask if they should act on Environmental, Social, and Governance (ESG) issues. Now, the central question is how to move forward efficiently and strategically. Integrating these standards builds resilience, generates trust among stakeholders, and ensures long-term success.

At RSM, we help organisations navigate these new regulations with clarity and confidence. The rules of the game are changing, but our brand promise, The Power of Being Understood, ensures we work by your side to understand your unique challenges. Below, we analyse the implications of Resolution 12-2025, the details of the S1 and S2 standards, and the current market trends driving this transformation.

Implementation timeline for regulated entities

Regulated companies (banks, insurers, securities issuers, etc.) - What applies?

The timelines you need to know for planning:

• 1 January 2026 - The standards officially come into force in Panama.
• 1 January 2030 - First deadline by which regulated companies must submit their first sustainability report.
• From now - Early voluntary application is permitted.

Although the formal deadline for regulated entities is 2030, the period between 2026 and 2030 is for preparation.

Regulated entities must implement the IFRS Sustainability Disclosure Standards, subject to the implementation requirements established and disclosed by the regulatory bodies, and their application is mandatory.

Specifications of IFRS S1 and S2 standards

The adoption of the ISSB standards under Resolution 12-2025 establishes a global and consistent framework for information disclosure. These standards allow investors to assess business value much more accurately.

General requirements with IFRS S1

The IFRS S1 standard sets out the general requirements for disclosing sustainability-related financial information. It requires companies to communicate the risks and opportunities that could reasonably affect their cash flows, access to financing, or cost of capital in the short, medium, or long term.

This standard obliges organisations to integrate sustainability comprehensively. It requires companies to report on their governance, strategy, risk management, and metrics related to all relevant sustainability topics. Its design aims to ensure that the information provided is useful for investors when making decisions about providing resources to the entity.

Climate action through IFRS S2

The IFRS S2 standard specifically addresses climate-related disclosures. It is based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and requires detailed information on how the company manages its physical and transition climate risks.

Its adoption forces companies to measure and report their Greenhouse Gas (GHG) emissions. According to our data, one in four companies in the region now identifies climate change as a top priority. Industries like energy and manufacturing are under particular pressure to adopt rigorous standards in their climate strategies.
In many cases, an initial period is granted for organisations to assess their current emissions, develop reduction strategies, and establish reliable reporting systems. Subsequently, they must comply with periodic reports that demonstrate tangible progress towards the established goals. This phased approach seeks to balance the urgency of climate action with the operational capacity of companies to adapt to the new standards without compromising their competitiveness.