Miranda ESG: The development of sustainability strategies in the private equity industry in Mexico

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Miranda ESG reports on the development of sustainability strategies in the private equity industry in Mexico

  • ESG integration is highest in Growth Equity funds, and lowest in Venture Capital funds. Unsurprisingly, it is also highest in large sized funds and lowest in small sized funds.

 

Mexico City, January 6th, 2021.- In a new report, Miranda ESG, a division of Miranda Partners, analyzes the level of development of sustainability strategies or ESG (Environmental, Social and Corporate Governance factors) in the private equity industry in Mexico.

The report analyzes the responses to a survey of 29 private equity funds that invest in the Mexican market and with US$12 billion in assets under management in total between them.

The main conclusion is that the Mexican PE industry is below the regional average in terms of ESG integration (and clearly lags behind the more developed markets). As AFOREs (and other private equity fund investors) increase their requirements for robust ESG strategies, as well as ESG fund information, we expect the ESG integration of the industry to improve in coming years.

Main findings:

  • The ESG integration is highest in Growth Equity funds, and lowest in Venture Capital funds. Unsurprisingly, it is also highest in large sized funds and lowest in small sized funds.
  • As with many investors in the financial industry, private equity funds seem to 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.
  • Despite the relatively low levels of formal ESG integration in many funds, almost three quarters of the respondents felt either satisfied or very satisfied with their ESG disclosure level.
  • Most of the funds who participated in our survey expect the pandemic to have a positive impact on ESG integration in the industry.

 

Read the full report here: Download PDF

 

For more information or to request an interview with Marimar Torreblanca, CEO of Miranda ESG, please contact:

MIRANDA MEDIA&PR

Ana Gabriela Jiménez Cubría

Sr. Analyst

Phone: +52.22.81.94.75.86

E-mail: gabriela.jimenez@miranda-newswire.com

www.miranda-partners.com/media

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