S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, and the Mexican Stock Exchange (BMV), the second largest exchange in Latin America, today announced the debut of the S&P/BMV Total Mexico ESG Index, the latest in S&P DJI’s growing family of global ESG indices based on some of the world’s most highly-tracked regional and country-specific benchmarks.
The index uses a 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.
“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,” said Reid Steadman, Managing Director and Global Head of ESG Indices at S&P DJI. “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 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.
The S&P/BMV Total Mexico ESG Index takes the Index Universe of the S&P/BMV Total Mexico Index and excludes companies involved in controversial weapons, tobacco, and companies classified as “non-compliant” by the United Nations Global Compact. Remaining eligible companies are then ranked by their S&P Global ESG Score resulting from the Corporate Sustainability Assessment (CSA).
The top 80 percent of stocks with the highest S&P DJI ESG scores are then selected for eligibility. From that list, the top 75 percent of stocks, by count, with the highest ESG score in each GICS sector are selected for inclusion in the index.
