ESG Development in Mexican Construction & Commercial Services Supplies

This week, we are sharing our ESG Development Heatmap for 2 new sectors in Mexico: Construction and Commercial Services Supplies. As in the past, we only focused on (1) companies listed in the Mexican Stock Exchange (using the stock exchange sector classification actually) and (2) publicly disclosed materials.

Construction

Commercial Services Supplies

What can we read from these heatmaps?

1. Only 31% of the Construction companies an 0% of the Commercial Services Supplies companies have done a materiality assessment and published its results.
2. The second generation of homebuilders (Cadú, Javer, Vinte) interestingly have all done a materiality assessment.
3. No company in either group has publicly communicated KPIs for its material topics.
4. Only 33% of the companies in these sectors have and ESG Committee or a dedicated team.
5. One third of the companies in these sectors have mapped its ESG efforts to the UN’s SDGs.
6. No company in these sectors has committed to support TCFD or the Science Based Targets efforts.
7. Only one company (Vesta) has aligned to CDP.
8. Only two companies in both groups have become participants of the UN Global Compact.
9. As we have seen in other sectors too, corporate governance info is available across the board.
10. More than half of the companies share their efforts in terms of social impact.
11. More than two thirds of the companies share their environmental efforts.
12. 40% of the companies have published integrated or sustainability reports, and almost all of these are done under the GRI methodology.

Overall, the Construction sector seems to be above average with disclosing environmental efforts (which may have to do with the regulatory requirements of their regular operations). Having said that, most companies in both sectors still have a long way to go to really formalize a robust ESG strategy. As we have suggested before, if you don’t use a materiality assessment to truly know where to focus on, your efforts may not be having an optimal impact.

I hope you found this interesting. As usual, if there is anything we can help you with, please reach out.

Best,

Marimar

Partner, Miranda ESG