Kantar: Eco-Consumer Trends and Opportunities in Latin America

Kantar released its 2023 Sustainability report based in Latin America. Meanwhile the International Finance Corporation provided a credit line of MX$1 billion to HIR Casa to enhance mortgage financing for women in Mexico.

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Sustainability Insights: Kantar's 2023 Latin America Report

Kantar’s 2023 Sustainability report aims to provide clear guidance and actionable steps for companies willing to embrace sustainability and enhance their customer base. The study gathered insights of 15,000 people across Latin America through different surveys. Participants' answers were analyzed to better understand the connection between individual actions, corporate responsibility, and the broader environmental impact. According to the report, consumers committed to sustainability make up 60% of the population and constitute a market of US$46.2 billion. 

IFC, HIR Casa to Promote Mortgage Financing

The International Finance Corporation provided a credit line of MX$1 billion to HIR Casa to facilitate mortgage financing in Mexico. A significant portion of the credit line will be dedicated to offering mortgage financing to women, who have less access to housing loans in the country and represent 45% of the company's customers. World Bank data indicates that female labor force participation in Latin America and the Caribbean constituted 48.5% in 2021, which is lower than the male participation rate of 72.5%. Moreover, according to the National Banking and Securities Commission only 39% of mortgage loans in Mexico are granted to women. 

Sustainable Investment Surge in Mexico

Sustainable investments are gaining momentum in Mexico. Between 2020 and 2022, the Mexican government saw a 419% surge in green bond issuance, reaching MX$122.01 billion by August 2023. Mexican Stock Exchange (BMV) emphasized that the sectors with the highest participation in thematic bond financing have been frequent consumer products at 17.06%, followed by financial services at 15.17%, telecommunications at 13.96%, infrastructure at 12.48%, and development banking at 12.45%. 

Climate Change to Affect Mexico’s Agriculture, Economy: UNAM

UNAM released the "Climate Change in Mexico: Current State and Future Prospects" study, which offers a scientific assessment of Mexico's climate change situation. The report emphasizes that the rise in annual average temperatures has been uneven across the country, while the temporal distribution of rainfall has become more erratic, with more intense precipitation events, but longer dry periods in between. Furthermore, according to the study, under a high greenhouse gas emissions scenario, there would be negative impacts on agricultural production, human health, biodiversity, urban areas, and energy. 

BBVA Increases ConCrédito’s Loan to MX$150 Million

BBVA Mexico has increased its loan to Gentera Group’s microfinance company ConCrédito to MX$150 million. This expansion aims to enable the latter company to provide financial support to female entrepreneurs in Mexico, benefiting over 30,000 families. According to BBVA the renewed credit line demonstrates its commitment toward promoting social sustainability, addressing issues related to economic disparities and enhancing the well-being of individuals. 

Global Standards, With A Local Presence

Gonzalo Covarrubias, Managing Director, WSP Peru & Mexico, highlighted the comprehensive range of specialized services offered by the Canadian consulting firm in the mining sector. These services encompass critical areas like mining waste management, tailings management, and mine closure, spanning all phases of mining while placing a significant emphasis on sustainability.  Covarrubias stated that WSP is actively addressing global environmental challenges and aims to change the perception of the mining industry in Mexico, highlighting its importance in the energy transition and climate change efforts. The director emphasized that the company’s goal is to become a regional leader in various mining-related services in Mexico and Latin America. “We have an organic growth target for the region of 15% by the end of 2024,” he stated.

The Path to Becoming a Regenerative Company

Viridiana Hernández, Deputy Director of Sustainability at Walmart Mexico y Centroamerica, discusses the company's commitment to amplify its environmental sustainability efforts. Walmart's mission is to shift its focus towards regenerative practices, with the goal of placing nature and humanity at the heart of its business operations. This transformative approach entails initiatives like decarbonizing its operations, reducing waste throughout the supply chain, and fostering prosperity and equity across its value chain. Hernández pointed out that Walmart is searching for allies across the country to become a zero-waste company by 2025. “Our participation in Mexico Business Summit is part of our strategy to showcase our focus areas and create connections to form alliances and collaborate on new initiatives,” she highlighted. 

Driving Sustainability in Today’s Market

During the Mexico Carbon Forum 2023, Mexican Stock Exchange (BMV) revealed that sustainable bonds, including green, social, sustainable, and sustainability-linked bonds, now constitute nearly 50% of all financing in the Mexican debt market. This shift is driven by a growing demand for environmental and social responsibility from both domestic and foreign investors. Failure to address climate change and implement structural changes could have a direct impact on the national economy, as Mexico is already experiencing economic losses in various sectors due to climate-related factors.

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