ESG Development in Consumer Discretionary 2023 update

This week, we come back to our ESG Development Heatmaps updates, focusing this time on the Mexican Consumer Discretionary 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.

Consumer Discretionary

Source: Publicly available company materials

What can we read from this heatmap?

• RLH has now established KPIs for each material topic in its sustainability strategy, alongside future targets for these indicators. This achievement positions RLH as the first company in its sector to implement a comprehensive set of sustainability KPIs.
• Famsa has removed its social and corporate governance information from its website.
• Palacio de Hierro and Grupo Posadas have yet to publish their sustainability or integrated reports for this year. Additionally, CMR and Grupo Vasconia have not released sustainability reports since 2018 and 2021, respectively.
• CMR and Grupo Hotelero Santa Fe have not updated their materiality assessments since 2015 and 2019, respectively. We recommend that companies refresh these assessments every two to three years to ensure their sustainability strategies remain aligned with both stakeholder expectations and the company’s most significant impacts.

Overall, this reporting cycle reveals limited progress across the sector. While RLH has advanced its sustainability management by defining measurable KPIs, many other companies continue to lag in fulfilling their reporting obligations.

We hope to see more companies in the sector make significant strides in their sustainability efforts in the coming year. By enhancing transparency, updating materiality assessments, and committing to regular reporting, these companies have the potential to strengthen their sustainability performance and better meet the expectations of their stakeholders.

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