- Based on the answers we received from the survey, we believe the Mexican PE industry is still lagging more developed markets in terms of ESG integration. Yet, we see some positive signals in the data that people are paying more attention to these concepts and are starting to better understand what it implies to have full ESG integration in a fund.
- As AFOREs (and other LPs) increase their demands for ESG strategies and ESG information from funds, we expect this survey’s results are likely to improve in coming years.
- We found that once again ESG integration is highest in Growth Equity funds. Unsurprisingly, it is also highest in large sized funds and lowest in small sized funds (even though smaller funds are better at communicating ESG strategies to investors).
- As with many investors in the financial industry, private equity funds seem to still be more comfortable considering corporate governance factors in their investment process than environmental or social factors.
- The large majority of the industry has not yet gone through formal materiality analyses at the fund level or at individual investment levels. We would recommend funds who are just starting their ESG journey to look at doing a materiality analysis as a first step to guarantee their strategy is focused on the right topics.
- The large majority of the industry has not written a responsible investment policy either. We believe a responsible investment policy is also one of the first steps any fund with an ESG inclination should take.
- Formal ESG KPIs adoption is still quite low.
- Satisfaction with ESG disclosure level fell materially year over year. We believe this shows GPs have realized what full disclosure of ESG topics entail, and how near or far they are from this. It could also portray that LPs have increased their demands for ESG data and GPs are more aware that they need to improve on this front.
Miranda Newswire – Full Report: Download PDF
ESG Contact Details
Marimar Torreblanca, CFA, CEO