ESG Development in Mexican Consumer Discretionary

This week, we are sharing our ESG Development Heatmap for one new sector in Mexico: Consumer Discretionary (which under the BMV’s sector definition includes Lodging as well). As in the past, 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. Only 47% of these companies have done a materiality analysis, and this goes down to 33% if you consider only the companies that did so in the past 3 years.
2. Just 3 companies share KPIs for some of their material topics, but no company shares KPIs for all their material topics (nor targets for any of them).
3. 40% of these companies have a dedicated team or committee for ESG.
4. 47% of them are aligned with the UN’s SDGs.
5. No Consumer Discretionary company is aligned with TCFD, and only one company is aligned with Science Based Targets.
6. Barely 13% of these companies are aligned with CDP.
7. No more than 27% of them are signatories of the UN Global Compact.
8. 60% of these companies have published an integrated or sustainability report in the past couple of years.
9. All of them but two were done under GRI’s methodology.
10. Only 1 of these reports was externally verified.
11. Just 1 company in this sector reports SASB indicators.

The Consumer Discretionary sector seems below average in terms of ESG Development. While more than half communicate their sustainability strategies, less than half have done materiality analyses. Furthermore, just a few companies align to globally recognized sustainability initiatives which forces them to report under stricter guidelines. There seems to be significant upside in terms of KPIs development.

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