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ESG Development in Consumer Discretionary Update

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This week, we are continuing with the updates we’ve been making to our ESG Development Heatmaps, focusing this time on the Consumer Discretionary sector. As we have done before, we only focused on (1) companies listed in the Mexican Stock Exchange and (2) publicly disclosed materials.

Consumer Discretionary

What can we read from this heatmap?

  1. There are no companies yet with KPIs clearly identified for all their material topics (and of course same applies for goals for these KPIs).
  2. On the materiality analysis front, Nemak updated its materiality this year (its prior analysis was done in 2015), and Liverpool carried out its first assessment. Other updates were done by Alsea and Elektra. With this 47% of the sector now has a recently updated materiality analysis (vs. 33% last year).
  3. Nemak and Liverpool also created ESG committees within their companies this year. This means now 47% of the sector has a dedicated ESG team or Committee.
  4. Liverpool also mapped its contributions to the UN’s Sustainable Development Goals for the first time.
  5. Nemak become a UN Global Compact signatory this year.
  6. Hoteles City Express became the first player to publish a TCFD assessment in the group and also externally verified its sustainability report for the first time ever.
  7. Elektra published for the first time a full set of SASB indicators, joining Hoteles City Express as the only 2 companies in the sector that report under this investor friendly framework.

While progress was concentrated on a few companies (as usual, the ones with the most liquid or visible stocks), the sector did make some interesting progress over the year in important topics. Materiality analyses in particular were improved quite a bit, even if we still would like to see more companies starting their ESG Strategy development process. Furthermore, we would expect that more companies look more closely at environmental topics in coming years as the sector’s participation in initiatives such as SBTi, TCFD, CDP is still quite meager. On the reporting side there are also some candidates that could start showing some progress soon (and some with stocks that are so illiquid that probably won’t do much).

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


Contacts at Miranda Partners

Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com

Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com

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