Exchange in Focus: BMV Launches a New ESG Index
24 June 2020
Mexican Stock Exchange (BMV) together with S&P Dow Jones Indices (S&P DJI) announced the debut of the S&P/BMV Total Mexico ESG Index. The index uses rules-based selection criteria based on relevant ESG principles to choose its constituents from the newly launched S&P/BMV Total Mexico Index, a broad benchmark consisting of stocks and Real Estate Investment Trusts (REITs) listed on the BMV. The objective of the S&P/BMV Total Mexico ESG Index is to give investors core exposure to the Mexican equities market while providing a significant boost in ESG score performance.
Reid Steadman, Managing Director and Global Head of ESG Indices at S&P DJI, noted that: “In the last year, ESG has joined the mainstream of investing as market participants increasingly see the importance and relevance of indices that incorporate sustainability data and principles. We designed the S&P DJI ESG indices with the goal of enabling these investors to achieve their ESG investment goals without sacrificing performance. We’re thrilled to work with the BMV to bring this strategy to the Mexican market with the S&P/BMV Total Mexico ESG Index.”
“The Mexican Stock Exchange has been recognized as a leader in Latin America for the implementation of ESG practices and a pioneer in the development of sustainable indices as the only Mexican member of the Sustainable Stock Exchanges and part of the World Federation of Exchanges. The new S&P/BMV Total Mexico ESG index is an important driver of the BMV Group's sustainability strategy. Through our extensive experience in the capital markets and in collaboration with S&P DJI, we offer global investors an innovative, modern benchmark based on international practices that can be easily replicated through investment vehicles,” said José-Oriol Bosch Par, Chief Executive Officer of the Mexican Stock Exchange.
At launch, the S&P/BMV Total Mexico ESG Index will include 29 companies, the selection of companies will be made by the company SAM, derived from its Corporate Sustainability Assessment.
The research and methodology on the S&P/BMV Total Mexico ESG Index and S&P DJI ESG Scores are available here. More information is also available in Spanish.
Part of a global trend
Over 40 markets world-wide are covered by sustainability-related indexes. To learn more, visit the SSE’s database of stock exchange sustainability activities. Currently, the database has data on 102 stock exchanges and tracks progress on key activities where exchanges are promoting sustainable business and investment practices. It is the largest data set of its kind and the data is freely accessible.
About the SSE
The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.
