The Mexican Stock Exchange (Bolsa Mexicana de Valores) («BMV«) and the S&P Dow Jones Indices («Dow Jones«) announced on Wednesday, March 4, 2020 that they will launch a new ESG (Environmental, Social and Governance) index in the Mexican stock market in early April 2020.
In this regard, the BMV explained that the new ESG index will provide the local and international investment community with a new indicator based on global ESG principles. This concept describes an approach that incorporates ESG factors in matters of decision making.
As a result of the above, starting Monday, March 23, 2020, Dow Jones will stop calculating and rebalancing the S&P/BMV IPC index, which seeks to measure the performance of the largest and most liquid stocks listed on the BMV, providing a broad, representative and easily replicable index covering the Mexican stock market.
In accordance with the above, companies with an ESG index encumbering environmental considerations that regulate and analyze the impact of an investment on natural resources during the development of their activities. Additionally, on the social matter, they cover items such as working conditions, interaction with local communities and health and safety issues. Finally, with regards to governance, reference is made to a criterion that revolves around how a company is managed.
Lawyers from the banking and financial practice of our Firm will be delighted to provide you with further information regarding the content of this informative note.
SINCERELY
Miguel Ángel Peralta
peralta@basham.com.mx
Pedro Said
psaid@basham.com.mx
Patrick Stockdale
pstockdale@basham.com.mx
Mexico City, March 9th, 2020.
