This week, we return to our ESG Development Heatmaps updates, focusing this time on the Mexican Construction sector. As we have done previously, we have focused only on (1) companies listed on the Mexican stock exchanges and (2) the materials publicly disclosed by those companies.
What can we read from these heatmaps?
Overall, there was little improvement in both sectors. Since they both are so small, it is difficult to envision something more extreme without any of the laggard companies really delving into developing a formal sustainability strategy.
- The biggest change over the year was a 23% increase in GRI reporting. Aleatica improved its initial implementation, while IDEAL and Planigrupo reported under this framework for the first time.
- There was some improvement seen in the sector’s materiality analyses. Javer updated its own, while Planigrupo and IDEAL published their first analyses.
- For the first time, a company in this sector reported KPIs for all its material topics (Vesta). That being said, there still aren’t any companies with targets established for all material topics KPIs.
- Planigrupo mapped its contributions to the UN’s Sustainable Development Goals for the first time.
- Javer published an initial effort to align its reporting with the TCFD framework, and published SASB indicators for the first time.
It was good to see that two of the companies that had no formal ESG efforts in this sector before, made great strides this year (IDEAL and Planigrupo). As a result, the sector seems much more mature with around half of the companies now actively addressing sustainability issues (and the ones that aren’t are mostly very illiquid closely held stocks).
The construction sector continues to host some of the most mature companies in terms of sustainability strategies in the Mexican market (including Vinte which has been very active on the sustainability linked capital markets over the years and Vesta which is very close to getting a perfect score in the heatmap).
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.
CEO, Miranda ESG
Contacts at Miranda Partners