SBFN Member Since:
2013
Member Organisations
Mexican Bankers Association (ABM)
Semarnat (Secretariat of Environment and Natural Resources) of Mexico
Progress Against sub Pillars
Framework Documents
| Country | Policies/ Principles/ Guidelines | Year | Issuer |
|---|---|---|---|
| Mexico | Proposal of Elements for the Development of Green Taxonomy in Mexico (click link to request access) | 2021 | Mexican Banking Association |
| Mexico | 2020 | Climate Finance Advisory Group | |
| Mexico | 2020 | Central Bank of Mexico | |
| Mexico | 2020 | Central Bank of Mexico | |
| Mexico | Provisions of a General Nature in Financial Matters of the Retirement Savings Systems (English) | 2019 | National Commission of the Retirement Savings System (CONSAR) |
| Mexico | Provisions of a General Nature in Financial Matters of the Retirement Savings Systems (Spanish) | 2019 | National Commission of the Retirement Savings System (CONSAR) |
| Mexico | 2019 | Climate Finance Advisory Group | |
| Mexico | 2019 | Climate Finance Advisory Group | |
| Mexico | 2019 | Climate Finance Advisory Group | |
| Mexico | 2018 | Mexican Banking Association | |
| Mexico | 2018 | Mexican Banking Association | |
| Mexico | Mexican Banking Sector 2030 Agenda for Sustainable Development Report | 2021 | Mexican Banking Association |
| Mexico | Embedding Environmental Scenario Analysis into Routine Financial Decision Making in Mexico | 2021 | Central Bank of Mexico |
Pillar 1 - ESG Integration - Strategic Alignment
National Framework
P 1.1 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
Yes
Source Reference Detail
Page 8, Pillar 2
Source Reference Document
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Source Reference Description
Protocol of Sustainability, ABM, Pilar 2 page 8.
P 1.2 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of environmental, social, and governance (ESG) risks and performance?
Yes
Source Reference Detail
–
Source Reference Document
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Source Reference Description
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG)
ESG Guide by Climate Advisory Council
Provisions of a General Nature in Financial Matters of the Retirement Savings System (CONSAR)
Pillar 1 - ESG Integration - Strategic Alignment
Alignment with International Goals & Standards
P 1.3 – Does the Framework make reference to international sustainable development frameworks or goals?
Yes
Source Reference Detail
Page 3, Reference to Paris Agreement
Source Reference Document
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Source Reference Description
Protocol of Sustainability, ABM, Page 3, reference to Paris Agreement.
P 1.4 – Does the Framework make reference to established international ESG risk management standards and principles for FIs??
Yes
Source Reference Detail
Page 8, Pillar 2
Source Reference Document
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Source Reference Description
Protocol of Sustainability, ABM, Page3 – Paragraph 2. Reference to a), b), d)
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG)
Pillar 1 - ESG Integration - Strategic Alignment
Alignment with national goals & strategies
P 1.5 – Does the Framework make reference to specific national development objectives, plans, policies, goals, or targets?
Yes
Source Reference Detail
Page 2 – 5
Source Reference Document
–
Source Reference Description
Protocol of Sustainability, ABM, Page 2-5
P 1.6 – Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design and/or implementation related to ESG integration?
Yes
Source Reference Detail
Page 3, paragraph 4
Source Reference Document
Financial authorities formed a sustainable finance committee in which associations of the financial system such as ABM were invited to participate. The committee formed a working group to measure ESG risks. The objective of the working group is to study strategies to encourage financial institutions to incorporate relevant ESG information in their prospective risk analyzes, as well as to develop capacities and strategies for analyzing scenarios for climate risks.
Other references of the committee: https://www.banxico.org.mx/publicaciones-y-prensa/reportes-sobre-el-sistema-financiero/%7BBB59C14C-03BE-58EE-6E0F-7D3EB65D52D5%7D.pdf and https://twitter.com/gabrielyorio/status/1329500238395138050
Source Reference Description
Creación del Comité de Finanzas Sostenibles del Consejo de Estabilidad Financiera. (page 3, paragraph 4)
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action
P 1.7 – Does any inter-agency data sharing currently exist related to ESG integration by FIs?
No
Source Reference Detail
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Source Reference Document
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Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 1.8 – Does the Framework provide guidance on the role of the regulator or industry association with regard to assessing and managing ESG risk and performance in the financial sector?
No
Source Reference Detail
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Source Reference Document
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Source Reference Description
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P 1.9 – Has the regulator or industry association undertaken market assessment to identify systemic ESG risks through analysis of the portfolios of supervised entities/members and published the results?
Yes
Source Reference Detail
Page 114 – 123
Source Reference Document
Banco de México´s Financial Stability Report, included a chapter in its december volume in whih it developed research on: Physical risks, impact on banks , Exposure analysis, Transition risks, Effect of drought associated with extreme heat on delinquencies in agricultural businesses.
Source Reference Description
Financial Stability Report (CBM)
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Technical Guidance
P 1.10 – Does the Framework provide technical guidance or tools to support implementation of ESG risk and performance management by the financial sector?
Yes
Source Reference Detail
–
Source Reference Document
The E&S Practice and Governance Structures Analysis voluntary Tool was developed during 2019-2020 in collaboration with the IDB and ABM to support banks in identifying their status against TCFD recommendations. (The tool is not publicly available). HARAS is an online tool that allows banks to identify environmental and social risks, using the post code as the geographic unit of analysis. The results obtained support the FIs in making credit granting decisions. (Only Banks have access to it)
Source Reference Description
E&S Practice and Governance Structures Analysis voluntary Tool (not publicly available)
HARAS – HARAS-Herramienta de Análisis de Riesgos Ambientales y Sociales (only banks have access)
Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Supervisory Activities & incentives
P 1.11 – Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry association?
Yes
Source Reference Detail
Page 12, additional recommendations (2)
Source Reference Document
–
Source Reference Description
Protocol of Sustainability, ABM, page 12, additional recomendations (2)
Progress Report on the Implementation of the Protocol of Sustainability, ABM
P 1.12 – Does the regulator or industry association provide any financial or non-financial incentives for FIs to manage ESG performance as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
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Source Reference Description
–
P 1.13 – Does the regulator or industry association apply any disincentives/penalties for non-compliance by FIs in terms of expectations from the regulator and/or industry association related to ESG risk management as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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Pillar 1 - ESG Integration - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 1.14 – Has the regulator or industry association established a data collection approach and database to track or regularly publish data related to ESG integration by FIs as part of the Framework?
No
Source Reference Detail
Page 7 – Pillar 1
Source Reference Document
–
Source Reference Description
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action, CBM
Pillar 1 - ESG Integration - Expectations of FI Actions
Strategy & Governance
P 1.15 – Does the Framework require/ask the FI’s board of directors (or highest governing body) to approve an ESRM and/or ESG integration strategy, and to supervise its implementation?
Yes
Source Reference Detail
Page 7 – Pillar 1
Source Reference Document
–
Source Reference Description
Protocol of Sustainability, ABM, Page 7 – Pilar estratégico #1
Pillar 1 - ESG Integration - Expectations of FI Actions
Organizational Structure & Capacity Building
P 1.16 – Does the Framework require/ask FIs to allocate resources/budget commensurate with portfolio ESG risks and define roles and responsibilities for ESG integration within the organization?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 1.17 – Does the Framework require/ask FIs to develop and maintain the ESG expertise and capacity of staff commensurate with portfolio ESG risks through regular training and learning?
Yes
Source Reference Detail
Page 11 – Pillar 5 – b
Source Reference Document
–
Source Reference Description
Protocol of Sustainability, ABM, Page 11 – Pilar estrategico #5 – b.
P 1.18 – Does the Framework require/ask FIs to create incentives for managers to reduce the ESG risk-level of the portfolio over a specified timeframe?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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Pillar 1 - ESG Integration - Expectations of FI Actions
Policies & Procedures
P 1.19 – Does the Framework require/ask FIs to develop policies and procedures to identify, classify, measure, monitor, and manage ESG risks and performance throughout the financing cycle at the client level and/or the transaction/project level?
Yes
Source Reference Detail
Page 8 – Pillar 2
Source Reference Document
–
Source Reference Description
Protocol of Sustainability, ABM, Page 8 – Pilar estrategico #2
P 1.20 – Does the Framework require/ask FIs to undertake a regular review and monitoring of ESG risk exposure at aggregate portfolio level?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 1.21 – Does the Framework require/ask FIs to establish and maintain an external inquiry/complaints/grievance mechanism for interested and affected stakeholders in relation to ESG practices?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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Pillar 1 - ESG Integration - Expectations of FI Actions
Tracking, Reporting & Disclosure
P 1.22 – Does the Framework require/ask FIs to report ESG risks and performance to the regulator or industry association?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
P 1.23 – Does the Framework require/ask FIs to report on ESG integration publicly?
Yes
Source Reference Detail
Pillar 5
Source Reference Document
–
Source Reference Description
Protocol of Sustainability, ABM, Pilar #5
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG)
P 1.24 – Does the Framework require/ask FIs to track credit risk (e.g. loan defaults) and/or financial returns in relation to ESG risk level?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Strategic Alignment
National Framework
P 2.25 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
Yes
Source Reference Detail
Pilar 2, Protocol of Sustainability
Source Reference Document
Bank of Mexico: Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action (2020) provides a roadmap / framework and recommendations for regulators and financial sector actors for addressing climate risk in the financial sector.
Mexican Banking Association (ABM) Protocolo de Sustentabilidad de la Banca (2016) references climate change (Introduction), and Pillar 2 establishes an ESG risk management system, and a basis for incorporation of climate risks. Mexican Banking Association (ABM) E&S Practice and Governance Structures Analysis Voluntary Tool promotes alignment with the TCFD.
Source Reference Description
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P 2.26 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy?
Yes
Source Reference Detail
–
Source Reference Document
Green Finance Advisory Council (Consejo Consultivo de Finanzas Verdes [CCFV]) declaration (Solicitud hacia emisoras públicas respecto a divulgación de información ambiental, social y de gobierno corporativo, September 30, 2020, for companies and public issuers to expand existing ESG disclosure to include climate risk management practices in line with international standards, including TCFD and SASB.
Source Reference Description
–
Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with International Goals & Standards
P 2.27 – Does the Framework make reference to international agreements or frameworks to address climate?
Yes
Source Reference Detail
Introduction (CFAG)
Page 9, Executive Summary (CBM)
Source Reference Document
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG) references the Paris Agreement in the Introduction. Bank of Mexico: Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action (2020) references the Paris Agreement (Executive Summary, Page 9).
Source Reference Description
Introduction (CFAG)
Page 9, Executive Summary (CBM)
P 2.28 – Does the Framework recognize or align with established regional or international good practice for climate risk management and disclosure by FIs?
Yes
Source Reference Detail
Point 5 (CFAG)
Page 12, Executive Summary (CBM)
Page 17, Ch1 (CBM)
Source Reference Document
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG). references TCFD (Introduction Point #5) Bank of Mexico: Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action (2020) references the TCFD (Executive Summary, Page 12) and NGFS (Chapter 1, Page 17).
Source Reference Description
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG)
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action, CBM, Page 12 (Executive Summary)
Pillar 2 - Climate Risk Management - Strategic Alignment
Alignment with National Goals & Strategies
P 2.29 – Has the regulator or industry association aligned the Framework with national goals to address climate change in line with the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement?
Yes
Source Reference Detail
Page 15, Ch1
Source Reference Document
Bank of Mexico: Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action (2020), alignment of regulatory approach to sustainable finance with Nationally Determined Contributions (Chapter 1, Page 15).
Source Reference Description
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P 2.30 – Does any cooperation exist between agencies, or between government and industry association, with respect to policy design or implementation related to climate risk management?
Yes
Source Reference Detail
–
Source Reference Document
There is inter-agency and regulatory-industry collaboration through the Financial Stability Board’s Sustainable Finance Committee, which includes a working group on ESG risks and climate risks. Banco de México has actively participated with the Mexican Banking Association (ABM) and the Green Finance Advisory Board (CCFV) in various training workshops and conferences regarding environmental and climate risks.
Source Reference Description
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action, CBM
P 2.31 – Does any inter-agency data sharing currently exist related to climate risk management by FIs?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
–
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Overall Approach & Strategy
P 2.32 – Has the regulator or industry association undertaken research on historical impacts to the economy and financial sector from climate change, and/or future expected impacts resulting from physical and transition climate risks?
Yes
Source Reference Detail
Page 8-10, Executive Summary
Page 18, Section 1.2
Page 32, Section 3.1
Section 4
Page 114 – 123 (Financial Stability Report)
Source Reference Document
Bank of Mexico: Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action (2020). Mexico’s climate risk context Executive Summary (Pages 8-10), (Section 1.2, page 18), Section 3.1 (Page 32), and Section 4, which includes an overview of GHG emissions. Financial Stability Report (December 2020) provides initial quantification of the exposure of financial institutions in Mexico to climate and environmental risks. (Pages 114 – 123). In 2021 a group of Mexican banks is participating in the pilot exercise of the 2°Investing Initiative to analyze the exposure of portfolios to climate scenarios.
Source Reference Description
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action, CBM
Financial Stability Report (CBM)
P 2.33 -Does the Framework identify key sources of GHG emissions – such as in particular sectors – as priorities in the proactive management of climate risks by the financial sector?
Yes
Source Reference Detail
Page 8 – 10
Page 18, Section 1.2
Page 32, Section 3.1
Section 4
Page 114-123 (Financial Stability Report)
Source Reference Document
Bank of Mexico: Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action (2020). Mexico’s climate risk context Executive Summary (Pages 8-10), (Section 1.2, page 18), Section 3.1 (Page 32), and Section 4, which includes an overview of GHG emissions. Financial Stability Report (December 2020) provides initial quantification of the exposure of financial institutions in Mexico to climate and environmental risks. (Pages 114-123, 119.)
Source Reference Description
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action, CBM
Financial Stability Report (CBM)
P 2.34 – Does the Framework incorporate the conservation/restoration of natural carbon sinks (such as oceans, forests, mangroves, grasslands, and soils) as an important part of reducing climate change risks? (e.g., through guidelines, scenario analysis, targets, or incentives for FIs)
Yes
Source Reference Detail
Page 56
Source Reference Document
Bank of Mexico: Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action (2020) discusses natural areas and deforestation (Page 56).
HARAS tool incorporates information about Natural Protected Areas and protected fauna, to inform about possible environmental risks. The database is generated from information of the National Environment Department (SEMARNAT)
Source Reference Description
Climate and Environmental Risk in Mexico’s Financial System from Diagnosis to Action
HARAS – Herramienta de Análisis de Riesgos Ambientales y Sociales (only banks have access)
P 2.35 – Has the regulator or industry association developed an internal strategy to address climate risk, and/or embedded climate risk management into its governance, organizational structures, and budget as part of the Framework?
Yes
Source Reference Detail
–
Source Reference Document
Financial Stability Board’s Sustainable Finance Committee, which includes a working group on ESG risks and climate risks. Banco de México has actively participated with the Mexican Banking Association (ABM) and the Green Finance Advisory Board (CCFV) in various training workshops and conferences regarding environmental and climate risks.
Source Reference Description
Financial Stability Board’s Sustainable Finance Committee
P 2.36 – Has the regulator or industry association undertaken any activities to expand and deepen analytical understanding of national and/or cross-border physical and transition climate risks, and to raise awareness as to how these risks may transmit to, and impact, the financial sector?
Yes
Source Reference Detail
Page 114, Section V.5.3. (Financial Stability Report)
Source Reference Document
Activities and analyses to deepen understanding of climate risks include:
Banco de México “Embedding environmental scenario analysis into routine financial decision-making in México” (2019) with the goal to promote the integration of environmental / climate scenario analysis into practice in financial decision-making.
Banco de México / UNEP-FI “Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action” (2020) in-depth diagnosis on the readiness of financial institutions to address environmental and climate risks.
Banco de México’s Financial Stability Board’s Financial Stability Report (December, 2020) takes a first step to begin quantifying the exposure of financial institutions in Mexico to climate and environmental risks. Financial Stability Board formed the Sustainable Finance Committee as a forum for regulator-industry collaboration and a working group on climate and environmental risk. Similarly, the Mexican Banking Association (ABM) has coordinated workshops and discussion forums for banks on these issues.
Source Reference Description
Embedding environmental scenario analysis into routine financial decision-making in México, CBM et al
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action, CBM
Financial Stability Report, Page 114 Section V.5.3
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Technical Guidance
P 2.37 – Has the regulator or industry association developed risk assessment approaches, methodologies, or tools to understand and assess the financial sector’s exposure to climate risk as part of the Framework?
Yes
Source Reference Detail
Page 114, Section V.5.3. (Financial Stability Report)
Source Reference Document
Banco de México’s Financial Stability Board’s Financial Stability Report (December, 2020) takes a first step to begin quantifying the exposure of financial institutions in Mexico to climate and environmental risks. Page 114 Section V.5.3: “In order to advance this process within of the Bank of Mexico, in this Report , there is a first step to start quantifying exposurefrom financial institutions in Mexico to climatic and environmental risks. As a point of starting point, the exposure of the institutions is analyzed banks to commercial credits that could be affected by physical and transition risks.”
Source Reference Description
HARAS – Herramienta de Análisis de Riesgos Ambientales y Sociales (only banks have access)
Embedding environmental scenario analysis into routine financial decision-making in México, CBM et al
Climate and environmental risks and opportunities in Mexico’s financial system: from diagnosis to action, CBM
Financial Stability Report
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Supervisory Activities & Incentives
P 2.38 – As part of the Framework, has the regulator clarified supervisory expectations with regard to climate risk management by FIs, including consideration of international good practices?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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P 2.39 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
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Source Reference Description
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P 2.40 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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P 2.41 – Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking & Aggregated Disclosure
P 2.42 – Does the regulator or industry association regularly collect and/or report market-level and/or FI-level data on climate-related financial sector risks as part of the Framework?
No
Source Reference Detail
–
Source Reference Document
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Source Reference Description
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Strategy & Governance
P 2.43 – Does the Framework require/ask FIs to establish a strategy for climate risk management with responsibility at the board of director level (or highest governing body)?
No
Source Reference Detail
–
Source Reference Document
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Source Reference Description
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Pillar 2 - Climate Risk Management - Expectations of FI Actions
Organizational Structure & Capacity Building
P 2.44 – Does the Framework require/ask FIs to define the roles and responsibilities and related capacities of the FI’s senior management and operational staff in identifying, assessing, and managing climate-related financial risks and opportunities?
Yes
Source Reference Detail
Introduction (ABM)
Pillar 2 (ABM)
Tab 3.7 (E&S tool)
Points 1 and 3, (CFAG)
Source Reference Document
Protocol of Sustainability (ABM)references climate change (Introduction), and Pillar 2 establishes an ESG risk management system, and a basis for incorporation of climate risks. E&S Practice and Governance Structures Analysis Voluntary Tool promotes alignment with the TCFD is linked with the Protocol. Governance issues are addressed in Climate Governance Tab 3.7. F For capital markets, Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG), Point 1 and Point 3 on Strategy and Governance.
Source Reference Description
Protocol of Sustainability, ABM
E&S Practice and Governance Structures Analysis voluntary Tool (not publicly available)
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG)
Pillar 2 - Climate Risk Management - Expectations of FI Actions
Policies & Procedures
P 2.45 – Does the Framework require/ask FIs to expand existing risk management processes to identify, measure, monitor, and manage/mitigate financial risks from climate change?
Yes
Source Reference Detail
Introduction (ABM)
Pillar 2 (ABM)
Tab 3.7 (E&S tool)
Points2, (CFAG)
Source Reference Document
Protocol of Sustainability (ABM) references climate change (Introduction), and Pillar 2 establishes an ESG risk management system, and a basis for incorporation of climate risks E&S Practice and Governance Structures Analysis Voluntary Tool promotes alignment with the TCFD is linked with the Protocol. Governance issues are addressed in Climate Governance Tab 3.7. For capital markets, Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG),Point 2 on Risk Management.
Source Reference Description
Protocol of Sustainability, ABM
E&S Practice and Governance Structures Analysis voluntary Tool (not publicly available)
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG)
Pillar 2 - Climate Risk Management - Regulatory and Industry Association Actions
Tracking, reporting & disclosure
P 2.46 – Does the Framework require/ask FIs to report on their overall approaches to climate risk management in line with international good practices (e.g., TCFD), or establish a timeline by which FIs should begin to align their reporting with such practices?
Yes
Source Reference Detail
Introduction (ABM)
Pillar 2 (ABM)
Tab 5 (E&S tool)
Points 4 and 5, (CFAG)
Source Reference Document
Protocol of Sustainability (ABM) references climate change (Introduction), and Pillar 2 establishes an ESG risk management system, and a basis for incorporation of climate risks. E&S Practice and Governance Structures Analysis Voluntary Tool promotes alignment with the TCFD is linked with the Protocol. Climate Risk Management approaches are described / reported as part of Tab 5. Disclosure Systems. For capital markets,Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG), Point 4 and Point 5 on Disclosure and Reporting of climate risk management approaches in line with TCFD.
Source Reference Description
Introduction (ABM)
Pillar 2 (ABM)
Tab 5 (E&S tool)
Points 4 and 5, (CFAG)
P 2.47 – Does the Framework require/ask FIs to identify, measure, and report on exposure to sectors which are vulnerable to transition risk and physical risk?
No
Source Reference Detail
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Source Reference Document
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Source Reference Description
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P 2.48 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce portfolio greenhouse gas (GHG) emissions on a regular basis?
Yes
Source Reference Detail
–
Source Reference Document
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Source Reference Description
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P 2.49 – Does the Framework require/ask FIs to adopt and report on performance targets to reduce exposure to climate change risks at the portfolio level on a regular basis?
No
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
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Pillar 3 - Financing Sustainability - Strategic Alignment
National Framework
P 3.50 – Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy?
Yes
Source Reference Detail
Page 9, pilar 3
Source Reference Document
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Source Reference Description
Protocol of Sustainability, ABM
P 3.51 – Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy
Yes
Source Reference Detail
–
Source Reference Document
–
Source Reference Description
Request to Issuers Regarding the Disclosure of Environmental, Social and Corporate Governance Information (CFAG)
Green Bond Principles
Pillar 3 - Financing Sustainability - Strategic Alignment
Alignment with International Goals & Standards
P 3.52 – Has the regulator or industry association developed a strategy, regulations, or set of frameworks for stimulating the allocation of capital to sustainable assets, projects, and related sectors in line with global goals, such as the Sustainable Development Goals (SDGs)?
Yes
Source Reference Detail
–
Source Reference Document
ABM developed the first sectorial sustainability report aligned with the SDGs, which identifies the contribution of banking sector to the 17 sustainability goals.
Source Reference Description
Mexican Banking Sector 2030 Agenda for Sustainable Development Report
P 3.53 – Does the Framework recognize and/or align with existing standards, voluntary principles, or market good practices related to sustainable finance instruments?
Yes
Source Reference Detail
Page 2, Introduction
Source Reference Document
–
Source Reference Description
Green Bond Principles MX (CFAG)
Proposal of Elements for the Development of Green Taxonomy in Mexico (ABM)
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Alignment with national goals & strategies
P 3.54 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
Yes
Source Reference Detail
–
Source Reference Document
The Proposal for the development of a national Taxonomy presented by the ABM reccommends the prioritization of sectors based on the NDC of Mexico.
Source Reference Description
Mexican Banking Sector 2030 Agenda for Sustainable Development Report
Proposal of Elements for the Development of Green Taxonomy in Mexico (ABM)
P 3.55 – Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance?
Yes
Source Reference Detail
Page 121 (CBM)
Source Reference Document
The Protocol of Sustainability involves inter-agency collaboration between financial supervisors/regulators, the industry association, and FIs.
The Financial Stability Board created the Sustainable Finance Committee. One of the Working Groups is focused on Capital Flows. This group includes observers from the ABM and other associations of the Mexican financial system.
Source Reference Description
Protocol of Sustainability, ABM
Financial Stability Report, CBM
P 3.56 – Does any inter-agency data sharing currently exist related to stimulating and monitoring sustainable finance flows?
Yes
Source Reference Detail
–
Source Reference Document
In 2020 the ABM, in collaboration with GIZ, developed the first voluntary pilot with the participation of 5 commercial banks and 3 development banks to identify sustainable finance flows in 2018. Results were shared with regulators.
Source Reference Description
Policy brief: First pilot exercise to identify green financing in Mexican commercial banking
Pillar 3 - Financing Sustainability - Strategic Alignment
Overall Approach & Strategy
P 3.57 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
Source Reference Detail
–
Source Reference Document
Proposal of Elements for the Development of Green Taxonomy in Mexico recommends the prioritization of sectors based on the NDC of Mexico
Source Reference Description
Proposal of Elements for the Development of Green Taxonomy in Mexico (ABM)
Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions
Technical Guidance
P 3.58 – Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of capital to sustainable sectors, assets, and projects?
Yes
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Page 3 – 1 (CFAG)
Page 121 (Financial Stability Report)
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he ABM participates in the Sustanable Finance Committee of the Financial Stability Board. One of the Workgroups is dedicated to the development of the previously-mentioned national taxonomy.
Source Reference Description
Green Bond Principles MX (CFAG)
Proposal of Elements for the Development of Green Taxonomy in Mexico (ABM)
Financial Stability Report
P 3.59 – Does the Framework provide guidelines for extending green, social or sustainability-focused loans (excluding bonds)?
Yes
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The taxonomy methodology development provides guidance for extending green loans, given its focus on the eligible economic activities.
Source Reference Description
Proposal of Elements for the Development of Green Taxonomy in Mexico (ABM)
P 3.60 – Does the Framework provide guidelines for issuance of green, social or sustainability bonds?
Yes
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Page 2, Introduction
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P 3.61 – Does the Framework require/ask for external party verification to ensure the credibility of sustainability instruments?
Yes
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Page 4 – 5, Independent Review
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Supervisory activities & incentives
P 3.62 – Does the regulator or industry association monitor information reported by FIs related to green/social/sustainability investment, lending, and other instruments to prevent greenwashing and social-washing?
No
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P 3.63 – Are there any financial or non-financial incentives for FIs to develop and grow green, social, or sustainability finance instruments?
No
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Pillar 3 - Financing Sustainability - Regulatory and Industry Association Actions -
Tracking & Aggregated Disclosure
P 3.64 – Does the regulator or industry association collect and/or publish data from FIs or other sources about allocation of capital to green/social/sustainability assets, projects, or sectors?
Yes
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Policy brief: First pilot exercise to identify green financing in Mexican commercial banking
Pillar 3 - Financing Sustainability - Expectations of FI Actions
Strategy & Governance
P 3.65 – Does the Framework require/ask FIs to establish a strategy, governance, or high-level targets, including at the Board of Directors level, for capital allocation to sustainable assets, projects, or sectors?
No
Source Reference Detail
Page 9, Pillar 3
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Protocol of Sustainability, ABM
Pillar 3 - Financing Sustainability - Expectations of FI Actions
Organizational Structure & Capacity Building
P 3.66 – Does the Framework require/ask FIs to define internal staff roles and responsibilities to encourage finance flows to green, social, and/or sustainability-focused investments?
Yes
Source Reference Detail
Page 7, Pillar 1
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Protocol of Sustainability, ABM
P 3.67 – Does the Framework require/ask FIs to develop and maintain internal staff capacity on green, social, or sustainability products through regular training and learning?
Yes
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Page 9, Pillar 3
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Protocol of Sustainability, ABM
Pillar 3 - Financing Sustainability - Expectations of FI Actions
Policies & Procedures
P 3.68 – Does the Framework require/ask FIs to put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, and reporting on green, social or sustainability-focused products?
No
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P 3.69 – Does the Framework require/ask FIs to appoint an independent external reviewer to confirm that the FI’s internal framework meets the requirements of the recognized national framework and regulations, or aligns to international standards?
No
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P 3.70 – Does the Framework require/ask that FIs create incentives for managers to increase sustainable loans or investments in the portfolio?
No
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Pillar 3 - Financing Sustainability - Expectations of FI Actions
Tracking, reporting & disclosure
P 3.71 – Does the Framework require/ask FIs to publish annual updates on the performance and impacts of the sustainability instruments in compliance with relevant national and/or international standards?
Yes
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Protocol of Sustainability, ABM
P 3.72 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
Yes
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P 3.73 – Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments?
Yes
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Page 12, Pillar 5
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Protocol of Sustainability, ABM
P 3.74 – Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on green, social, and/or sustainability bonds or other positive impact investments?
Yes
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Page 12, Pillar 5
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Protocol of Sustainability, ABM
P 3.75 – Does the Framework require/ask FIs to report publicly on their green, social and sustainability-focused finance activities and positive outcomes or impacts (i.e. not only to the regulator or shareholders)?
Yes
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Page 3 – 4, Reporting
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Green Bond Principles MX (CFAG)
