Mexico: ESG Development in the Public Equity Market – 2024

This week, we are sharing our annual update of the Mexico: ESG Development in the Public Equity Market – 2024 report, covering the last annual reporting season for publicly listed companies in Mexico. There is lots of interesting data and, once again, continued progress. We recommend reading all of it, but for now, we leave you with a few key highlights:

Top 6 findings:

• Most sectors in the Mexican market made progress on their ESG strategies and communication efforts in the 2024 reporting season, but we still see room for improvement, especially in some sectors.
• SASB adoption continued this reporting cycle. 84% of sustainability reports in Mexico now include SASB (vs. 75% last year). It will be interesting to start tracking this year the adoption of ISSB’s new standards.
• Based on our heatmaps, the most ESG-mature sectors in Mexico are Transportation, FIBRAs, and Food and Beverages again. The least ESG-mature sector in Mexico is still Commercial Services Supplies (unchanged from last year).
• ESG KPIs continue becoming more popular. 24 companies (20% of the market) disclose KPIs for all material topics, up from 17 last year. Over 60% also share related objectives.
• The adoption of international initiatives (such as TCFD or the UN’s Global Compact) seems to be slowing down. We expect to see a fast adoption of ISSB-compatible initiatives (maybe TCFD benefits) as companies adopt new regulations next year.
• 2025 will be an interesting year for ESG reporting and planning given the adoption of ISSB standards, as they are now mandatory for Mexican-listed companies. We would expect increasing pressure from stakeholders for transparent and consistent reporting, especially in companies that share no sustainability information to date.

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