PEMEX Rejoins IOGP to Strengthen ESG Commitment

PEMEX announced its return to the International Association of Oil and Gas Producers (IOGP) effective on July 1, 2024, aligning itself with international standards in Environment, Social, and Governance (ESG) matters.

"As part of the initiatives to implement the PEMEX Sustainability Plan, approved by the Board of Directors on March 1, key skills were identified to support the achievement of goals. Among these are promoting transparency and the disclosure of information in line with international standards, as well as active participation in leading international organizations for the oil and gas industry in ESG matters," the company stated.

Octavio Romero, Director General, PEMEX, indicated that being part of the IOGP will allow its employees to access expert groups on specialized topics, as well as a library of information, standards, and internationally recognized best practice guides, which will contribute to strengthening the pillars of the Sustainability Plan.

The IOGP, based in London, England, was founded in 1974 and serves as an international forum for the oil industry, where its members share knowledge and promote best practices to improve performance in key areas such as safety, health, environment, engineering, operations, and energy transition. The organization gathers more than 70 public and private oil and gas companies, as well as associations and exploration and production firms.

PEMEX’s ESG path has been a topic of interest over this administration. The NOC has identified several financial risks related to climate strategies, including increased demand for low-carbon products, reduced availability of capital for investments in the sector, and high volatility in oil and gas prices. By aligning with international best practices, such as achieving a reduction in greenhouse gas emissions and a decrease in methane emissions, PEMEX is actively working to reduce its environmental impact. These efforts, combined with the aim to reduce CO2 emissions, which reached 47.5MMmt3 by 3Q23, not only address investor expectations but also position PEMEX to secure its long-term viability in a rapidly evolving energy landscape. 

Lorenzo Meyer, Member of the Board of Directors and President of the Sustainability Committee, PEMEX, acknowledged at Mexico Oil and Gas Summit 2023 that ESG was initially not a priority for the board, but emphasized its current necessity. He explained that the sustainability team, comprising members from PEMEX, the Ministry of Finance, and SEMARNAT, advises on ESG policies and strategies, though their recommendations are not binding. Meyer stressed the importance of ESG efforts for attracting investors, noting that PEMEX is updating its safety and environmental procedures to meet stricter standards and underscored the need for a clear roadmap in their Sustainability Plan to satisfy stakeholders.