Mexico’s state-owned oil company, Pemex, has introduced its first-ever Sustainability Plan, marking a pivotal step in addressing climate risks and aligning with global ESG principles. As part of its commitment to a carbon neutral strategy, Pemex has pledged to achieve net-zero Scope 1 and 2 emissions by 2050. Additionally, the company aims to reduce methane emissions by 30% and eliminate routine gas flaring in its exploration and production (E&P) operations by 2030. These initiatives position Pemex as a key player in Mexico’s transition toward sustainable energy practices. 

The Sustainability Plan is the result of years of investor engagement through Climate Action 100+, which placed Pemex on its focus list in 2020 due to climate-related risks. Initially, discussions with Pemex faced obstacles, but sustained investor pressure led to critical developments. In 2023, Pemex established a Sustainability Committee at the board level, a significant governance shift aimed at integrating ESG considerations into corporate decision-making. By 2024, the company released its first comprehensive Sustainability Plan, developed in collaboration with S&P Global and key investor stakeholders. 

A central component of Pemex’s strategy is enhancing climate disclosures. To improve transparency and investor confidence, the company will align its reporting with the International Sustainability Standards Board (ISSB) and the Task Force on Climate-Related Financial Disclosures (TCFD) frameworks. These standards ensure that Pemex’s sustainability initiatives are measurable and comparable on a global scale, strengthening its position in ESG-driven investment markets. 

Pemex has also introduced a capital allocation framework designed to align investments with its sustainability objectives. This ensures that financial decisions support long-term environmental responsibility while maintaining economic growth. 

Despite these commitments, investors stress the need for continued progress. Climate Action 100+ leaders, including representatives from Afore SURA, Ninety-One, and Carmignac, acknowledge Pemex’s strides but emphasize the necessity of sustained implementation. They will continue to monitor the company’s alignment with international ESG benchmarks and its role in advancing Mexico’s carbon neutral strategy. 

Sources: 

https://esgnews.com/mexicos-pemex-sets-net-zero-goal-pledges-30-methane-cut-in-first-ever-sustainability-plan/ 

https://www.pemex.com/en/about-pemex/Documents/pemex_sustainability_plan.pdf 

https://www.climateaction100.org/news/climate-action-100-investors-welcome-pemexs-climate-commitments-presented-in-the-companys-first-sustainability-plan/