PEMEX Reports on Sustainability Strategy

PEMEX reported on advances in the formulation of strategies aimed at emissions reduction and the energy transition. The company anticipates further strengthening of these efforts in its upcoming Sustainability Plan.

Over the past couple of years, PEMEX has grappled with numerous challenges, including high levels of debt and accidents often attributed to inadequate maintenance and rapid production. Even though the company saw a slight improvement in its finances due to surging oil prices last year, it still grapples with mounting pressure to align with ESG standards. 

PEMEX revealed that its Sustainability Plan is currently being integrated, backed by Standard & Poor's Global as a third-party consultant. This collaboration aims to fortify the project focused on curtailing greenhouse gas emissions and exploring pathways for a low-carbon future.

In a report presented to the Energy Commission of the Chamber of Deputies, the NOC underscored that its sustainability policy is centered around the reduction of greenhouse gas emissions. It also addresses the implications and risks associated with the ongoing energy transition and the pressing issue of climate change.

As part of its efforts, PEMEX achieved an 18% reduction in greenhouse gas emissions in September 2023. The utilization of gas released into the atmosphere reached 94%. In key hydrocarbon production regions such as the South, Northwest, and North, gas utilization has already increased to 98%.

The forthcoming Sustainability Plan, set to be unveiled in the coming weeks, will encompass additional focal points such as industrial safety, occupational health, social responsibility, and governance. Furthermore, the evaluation criteria used by specialized agencies measuring ESG performance will be scrutinized. This analysis aims to instigate actions that enhance the company's ratings in these areas in the short and medium term.

One of the main pressures that PEMEX faces to integrate ESG criteria into its operations is access to financing, especially as it juggles with a high debt burden.

PEMEX announced to the Securities Exchange Commission the creation of the PEMEX Sustainability Committee of the Board of Directors in March 2023. Furthermore, it is becoming increasingly relevant for investors that business models align with sustainability standards. According to Lorenzo Meyer, Member of the Board of Directors and President of the Sustainability Committee, PEMEX, the NOC’s goals during his time leading the committee remain to drive a sustainable operational strategy and to construct business models that ensure profit, considering energy efficiency, GHG emissions reduction, health and safety protocols and an anti corruption and transparency policy.