There is a problem with your professor's definition. We more or less already need the notion of the collection of natural numbers satisfying the Peano Axioms, even before it makes sense to talk about iterating a function, in this case $s$. In fact, the standard way to define iterates is:
Let $s^0$ be the identity function on $\mathbb{Z}$.
Let $s^{n+1} = s^n \circ s$ for every natural number $n$.
How can we possibly do this without the natural numbers? We essentially cannot, because the natural numbers are precisely what we need to use to count the iterations!
The reason I can say that your professor is making a mistake is that the quantification of $m$ is ill-defined; it quantifies over all "$m \ge 1$", but what is that even supposed to mean? It is in fact meaningless unless $m$ is restricted to some kind of number, not to say that "$s^m$" is meaningless unless $m$ is a natural number (or integer if $s$ is invertible; presumably it is not in this case). So it already is necessary to know $\mathbb{N}$ before any of the notation makes sense.
However, if you do things carefully in set theory, you could first construct an inductive set $ω$, and then somehow define the integers $\mathbb{Z}$ without using natural numbers, and then define the natural numbers via the recursion theorem. This is not going to be anywhere as 'simple' as the ill-defined definition quoted. For details of how to do this rigorously in ZFC, see this post. If a different formal system is being used, then he will have to specify it.