The mandatory implementation of IFRS S1 and IFRS S2 has been postponed until December of next year, extending the preparation period for supervised entities.
On July 27, 2026, the Financial Market Commission (CMF) published NCG No. 572, which modifies the effective date of the obligation to report sustainability information in accordance with the international standards IFRS S1 and IFRS S2.
Thus, NCG No. 519 (dated October 2024), which amended NCG Nos. 30 and 461 to incorporate the obligation to report on sustainability in accordance with the ISSB’s IFRS S1 and IFRS S2, was initially set to expire on December 31, 2026, and was applicable to the 2026 annual reports. Under the new regulations, the effective date is extended by one year.
In other words, the initiative will take effect on December 31, 2027, and will apply starting with the 2027 fiscal year (reported in 2028).
This decision stems from workshops held in June 2026 by the CMF, during which it gathered information on the industry’s level of preparedness and identified significant challenges associated with implementation.
Thus, considering the diversity of regulated entities and the local and global economic context, the commission resolved to grant an additional period for entities to adapt their systems, processes, and corporate governance.
What are the new deadlines?
- Previous term (NCG No. 519): December 31, 2026 (fiscal year 2026).
- Current effective date (NCG No. 572): December 31, 2027 (fiscal year 2027).
Implementation Support
During this additional year, the CMF will carry out an active support program that includes ongoing monitoring of the global evolution of these standards, actions to facilitate implementation, and an assessment of their effects.
It is important to note that entities are also invited to voluntarily report information for fiscal year 2026 during 2027, in accordance with IFRS S1 and IFRS S2.
Organizations that choose to adopt the standards early will receive technical feedback identifying strengths and opportunities for improvement. This initiative helps consolidate progress and strengthen market capabilities.
Implications and Recommendations
The extension of the deadline provides additional time to assess and prepare internal capabilities—including systems, processes, and personnel—with respect to IFRS S1 and IFRS S2. It also opens the opportunity for early voluntary adoption, which can generate competitive advantages and enhance positioning with investors and stakeholders.
Therefore, we at az recommend the following:
- Review your current state of readiness.
- Analyze the feasibility of early voluntary adoption.
- Design an implementation timeline taking the extended deadline into account.
- Stay alert to possible future refinements to the regulations.
Scope
The regulation applies to all entities supervised by the CMF that are subject to NCG No. 30 and No. 461, including primarily registered securities issuers, investment funds, and other securities market entities that prepare consolidated annual reports.
If you have any questions about the scope of this regulation, please contact our Corporate and Business team:
Álvaro Rosenblut | Partner | arosenblut@az.cl
Stephanie Cruz | Legal & Business Director | scruz@az.cl
Vicente Martínez | Senior Associate | vmartinezw@az.cl
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