ESG Development in Mexican Materials and Metals & Mining

This week, we are sharing our ESG Development Heatmap for two new sectors in Mexico: Materials and Metals & Mining. As in the past, we only focused on (1) companies listed in the Mexican Stock Exchange and (2) publicly disclosed materials.

Materials (1/2)

Materials (2/2)

Metals & Mining

What can we read from these heatmaps?

1. 35% of the Materials companies and 40% of the Metals & Mining companies have done a materiality analysis in the past 3 years.
2. Some of these companies share some of the KPIs and the KPI goals they use for some of their material topics, but no company in either sector share KPIs and KPI goals for all their material topics.
3. 53% of the Materials companies and 100% of the Metals & Mining companies are aligned with the UN’s SDGs.
4. Only 1 company in the Materials sector (Cemex) and 1 company in the Metals & Mining sector (Fresnillo) are aligned with TCFD.
5. Only 1 company in the Materials sector (GCC) and no companies in the Metals & Mining sector are aligned with Science Based Targets.
6. 12% of the Materials companies and 60% of the Metals & Mining companies are aligned with CDP.
7. 41% of the Materials companies and 40% of the Metals & Mining companies are signatories of the UN Global Compact.
8. 65% of the Materials companies and 100% of the Metals & Mining companies have published an integrated or sustainability report in the past couple of years (and therefore share their social and environmental initiatives).
9. Only 36% of the Materials’ sustainability reports and 40% of the Metals & Mining’s sustainability reports are externally verified.
10. 81% of the Materials’ sustainability reports and 60% of the Metals & Mining’s sustainability reports are done under GRI’s methodology.
11. Only 1 company in both groups (Cemex) reports SASB indicators.

Overall, the Metals & Mining sector seems pretty open about its ESG matters with 100% reporting. The Materials sector seems more average even if it includes companies with pretty mature ESG practices (like Cemex). We are yet to see a company with full compliance in KPIs and KPI goals disclosures, but hopefully over time more transparency comes to the market.

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 

P.S. This week, in which coincidentally we celebrated Mexico’s Independence Day, Mexico became the first country to sell a sovereign bond linked to the UN’s SDGs. The issuance was for EUR 750m with a yield of 1.603% (a coupon of 1.35%, the second lowest coupon rate for a sovereign Eurobond in Mexico’s history). The issuance was 6.4x oversubscribed and 44% went to investors with a sustainability mandate. Happy Independence Day indeed!