ESG Development in FIBRAs 2023 update

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

FIBRAs

Source: Publicly available company materials 

What can we read from this heatmap? 

• 50% of the sector updated their materiality analyses between 2023 and 2024.
• Fibra Educa defined measurable KPIs for every material topic, becoming the 7^th FIBRA to do this. With it, almost half of the sector has identified measurable KPIs for all their material topics.
• Fibra Monterrey and Fibra Educa are now aligned with TCFD. With them, over 60% of the sector has shared TCFD-based analyses.
• Fibra Inn aligned with CDP and became a signatory of the UN Global Compact.
• Fibra Prologis and Fibra Macquarie independently verified their reports for the first time.
• Fibra Nova now reports SASB indicators.
• Terrafina and HD have not published annual reports yet. This is likely due to their respective acquisitions.

The FIBRAs sector has consistently been a leader in advancing sustainability within the Mexican market, demonstrating a commitment to integrating ESG principles into its operations. This year, the sector took even greater strides, showcasing an alignment with global best practices. These advancements underscore the sector’s recognition of the vital role sustainability plays, not just in environmental stewardship but also in enhancing long-term value for investors and stakeholders.

Real estate companies benefit significantly from sustainable practices, as they help enhance asset value, reduce operational costs, and meet growing tenant demand for environmentally conscious spaces. Sustainable properties are increasingly seen as more attractive investments, offering better resilience against regulatory risks and long-term value preservation. Let’s hope next year’s reporting season brings even more progress.

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 ES