Grupo Engen Cuts Emissions With 76% Hybrid-EV Fleet

Grupo Engen’s 2025 sustainability report highlights the expansion of green asset origination and fleet electrification through Engen Capital and TIP México, underscoring the growing integration of low-carbon strategies across Mexico’s B2B financing, transportation, and logistics sectors. The report also shows how the company is leveraging internationally recognized frameworks, including PCAF and the GHG Protocol, to measure and manage value chain emissions, water use, and circular waste management. By linking 10% of executive compensation to ESG targets, Grupo Engen is reinforcing a governance model that ties financial performance directly to measurable sustainability outcomes and global best practices.

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Grupo Engen transitioned 76% of its internal corporate fleet to hybrid and electric vehicles during fiscal year 2025 while offsetting more than 320,000 tons of carbon dioxide equivalent (tCO2e) since 2022, according to its 2025 Sustainability Report. The company also expanded its operations to serve more than 7,000 active clients across Mexico through its main business units, Engen Capital and TIP México.

"In 2025, we continued consolidating sustainability as a strategic pillar of our business in an environment where financing and mobility play a key role in the transition toward more efficient, low-emission models," said Juan Pablo Loperena, CEO, Grupo Engen, and Mauricio Medina, CEO, TIP México, in a joint statement introducing the report.

Environmental Assets and Energy Transition

Grupo Engen calculated its 2025 greenhouse gas inventory using the Greenhouse Gas Protocol and the Partnership for Carbon Accounting Financials (PCAF) frameworks. The company reported direct Scope 1 emissions of 887 tCO2e, indirect Scope 2 emissions of 312 tCO2e, and Scope 3 value chain emissions totaling 556,091 tCO2e. To mitigate carbon intensity, Engen Capital offset 50,000 tCO2e on behalf of corporate clients through verified carbon credits.

Green asset origination expanded across the group's core businesses. Engen Capital increased green asset origination from MX$199 million (US$11.45 million) in 2024 to MX$452 million (US$26 million) in 2025, bringing its total sustainable asset portfolio to US$23 million. TIP México raised green asset origination from MX$420 million (US$24.16 million) to MX$779 million (US$44.81 million) during the same period, with sustainable vehicles accounting for 12% of its active leasing contracts. The company classifies hybrid, plug-in hybrid, and fully electric vehicles as green assets.

The transition of the group's internal fleet also accelerated. TIP México increased the share of hybrid and electric vehicles in its internal fleet to 92%, up from 83% in 2024, supported by eight electric vehicle charging stations at its facilities. Engen Capital raised its fleet electrification rate to 58%, reducing direct Scope 1 fuel emissions by 23% compared with 2024.

The transition was complemented by renewable energy investments. TIP México operates a rooftop solar installation at its San Martín Obispo facility consisting of 344 photovoltaic modules rated at 550 watts-peak, with a total installed capacity of 189 kilowatts-peak. The system generated 124,715 kilowatt-hours of clean electricity in 2025, reducing Scope 2 emissions at the facility by 36%.

Resource Consumption

Resource efficiency indicators reflected changes in operational activity. TIP México, whose vehicle maintenance operations are relatively water-intensive, reported total water consumption of 4,659 cubic meters in 2025, up from 3,286 cubic meters in 2024. The company treated and recycled 499 cubic meters of water, representing an operational recycling rate of 11%. Its automated trailer washing system filters and recirculates up to 98% of the water used in each wash cycle.

Meanwhile, Engen Capital reduced its annual water consumption from 1,029 cubic meters in 2024 to 924 cubic meters in 2025.

Waste management also advanced through verified recycling and recovery programs. TIP México generated 196,930 kilograms of operational waste, directing 87% to industrial co-processing and 13% to sanitary landfills. The subsidiary also shifted its scrap tire management strategy from energy recovery to industrial recycling, a process that reduces tire-related greenhouse gas emissions by 85%. Recycled materials were transformed into waterproof coatings, including 25 buckets donated to the Claudina Thevenet institution.

Engen Capital generated 9,033 kilograms of corporate waste, channeling recyclable office materials into recycling networks while sending 57.7% of general waste to sanitary landfills. The company's digitalization initiatives also prevented the consumption and disposal of 62,116 sheets of paper.

Financial Performance and Corporate Governance

Consolidated financial results showed continued business growth. Total productive assets, including the loan portfolio and leased equipment, increased to MX$28.37 billion (US$1.63 billion) from MX$27.86 billion (US$1.60 billion) in 2024. Operating revenue reached MX$5.97 billion (US$342.35 million), representing a 7.5% increase year over year.

Pre-tax profit totaled MX$681 million (US$39.08 million), down from MX$1.29 billion (US$74.21 million) in 2024. The decline was primarily attributable to unrealized foreign exchange losses of MX$82 million (US$4.71 million) and MX$295.6 million (US$16.97 million) in interest expenses related to the revaluation of long-term interest rate derivatives at current market rates.

The group also strengthened its corporate governance framework by formally incorporating environmental, social, and governance (ESG) performance metrics into executive compensation. Ten percent of the executive management team's variable compensation is now tied directly to the achievement of predefined ESG objectives.

Grupo Engen's Board of Directors consists of nine members, including three independent directors and one female director, resulting in female representation of 11%.