ESG Development in Capital Goods 2023 update

This week, we come back to our ESG Development Heatmaps updates, focusing this time on the Mexican Capital Goods sector. As we have always done, we focused only on (1) companies listed on the Mexican stock exchanges and (2) the materials publicly disclosed by those companies.

Capital Goods

Source: Publicly available company materials

What can we read from this heatmap?

1. Both GISSA and Kuo have taken significant steps this year by aligning their environmental reporting with the CDP framework.
2. Grupo Carso and its subsidiary, Sanborns, have stopped publishing most of their ESG strategy in their annual reports (the latest sustainability report is from 2021).
3. Kuo is no longer signatory of the UN Global Compact.
4. Interceramic has yet to release its 2023 Annual Integrated/Sustainability Report.

2023 was a mixed year for the Mexican Capital Goods sector. On one hand, there was increased alignment with CDP standards, signaling progress in climate-related transparency. However, some companies reduced their level of disclosure, and the sector lost a signatory to the UN Global Compact, impacting overall sustainability performance. Given the sector’s small size, each company’s actions have a significant influence on aggregate results. Looking ahead, we hope to see only positive strides in sustainability commitments and reporting.

2025 will be an interesting year for ESG reporting and planning given the adoption of ISSB standards, as they are expected to become a global benchmark. We would expect increasing pressure from stakeholders for transparent and consistent reporting. Consequently, companies that adopt ISSB standards will likely meet evolving investor expectations and gain a competitive edge in attracting sustainable capital.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.

Best,

Marimar

CEO, Miranda ESG