The S&P/BMV Total Mexico ESG Index, launched in partnership with Bolsa Mexicana de Valores (BMV Group) in June 2020, is advancing sustainable investment in Mexican equities. This innovative index measures the performance of stocks within the S&P/BMV Total Mexico Index that align with stringent environmental, social, and governance (ESG) criteria, while excluding companies based on specific business activities and United Nations Global Compact (UNGC) scores. Constituents are weighted by S&P Global ESG Scores, derived from the Corporate Sustainability Assessment (CSA). 

The CSA focuses on financial materiality, evaluating corporate ESG risk and performance based on metrics aligned with global standards, including the Mexican Sustainable Taxonomy. This taxonomy classifies activities contributing to environmental and societal goals, making the index a robust tool for ESG-focused investors. 

Mexican companies have shown marked progress in sustainability reporting. Since 2019, survey participation by companies headquartered in Mexico has surged by 56%, reflecting greater transparency and commitment to ESG principles. Enhanced data availability has improved assessments on issues such as waste management and water usage, while corporate ESG performance has strengthened in areas like labor practices and carbon neutral strategies. 

S&P Global Sustainable1 integrates this improved disclosure, refining the metrics used to evaluate ESG performance. These advancements ensure the index remains aligned with international standards, supporting investors seeking sustainable opportunities in the Mexican market. 

The index highlights the critical role of reliable sustainability data in promoting ESG investment and fostering corporate accountability. By offering a more comprehensive view of ESG risks and opportunities, the S&P/BMV Total Mexico ESG Index empowers stakeholders to make informed decisions that drive long-term value while supporting carbon neutral strategies and responsible business practices. 

Sources:  

https://seekingalpha.com/article/4740868-improvement-sustainability-data-enables-more-robust-sp-bmv-total-mexico-esg-index 

https://www.indexologyblog.com/2024/11/27/how-the-improvement-of-sustainability-data-enables-a-more-robust-sp-bmv-total-mexico-esg-index/ 

https://talkmarkets.com/content/global-markets/how-the-improvement-of-sustainability-data-enables-a-more-robust-spbmv-total-mexico-esg-index?post=470906