Climate Resilience Push Targets Mexico’s MSMEs

Mexico’s MSMEs are increasingly exposed to environmental risks, which threaten operational continuity and profitability. Programs like ECOEmprende, backed by IPN, Tecnológico de Monterrey, and international partners, are deploying AI-driven training, financing, and technical support to strengthen resilience and sustainability. The initiatives target MSMEs nationwide, aiming to improve integration into competitive value chains while aligning with Mexico’s regulatory, environmental, and green finance frameworks.

Micro, small and medium-sized enterprises (MSMEs) are highly vulnerable to climate change, as extreme heat, poor air quality, flooding, and water scarcity increasingly disrupt their operations and drive up costs. To strengthen their resilience, initiatives such as the ECOEmprende platform and strategic public-private collaboration aim to equip these businesses with tools, financing, and knowledge to integrate into more competitive and sustainable value chains.

ECOEmprende was developed by researchers from IPN and Tecnológico de Monterrey with the goal to encourage climate change adaptation among Mexico’s MSMEs. The platform aims to build a resilient business environment capable of withstanding the consequences of the climate crisis. 

MSMEs represent more than 99% of all registered economic units in the country. Microenterprises (those with zero to 10 employees) account for the vast majority of businesses. Of the total economic units, nearly 95% are microenterprises; they employ 41.4% of the working population but generate only 16.1% of total added value.

Amadeo José Argüelles, Leader in AI and technological innovation, IPN, explained that these businesses typically operate with monthly profit margins of around 12%. However, just two or three days of poor air quality can significantly affect them because of the operational disruptions caused by environmental contingencies.

In Mexico City, environmental alerts generally occur during the driest and hottest months, beginning in April or May. High temperatures intensify photochemical reactions between nitrogen oxides (NOx) and volatile organic compounds (VOCs), pollutants primarily emitted by vehicles and industry. Increased solar radiation accelerates these reactions, promoting the formation and accumulation of ground-level ozone.

Additionally, this season is often marked by low wind speeds and low humidity, which limit the natural dispersion of pollutants. Atmospheric stability and poor ventilation prevent particles from moving out of the Valley of Mexico, leading to higher concentrations and increased pollution levels.

According to the city’s Minister of Environment (SEDEMA), so far in 2026 Mexico City residents have experienced only three days of good air quality. Conditions have been even worse in the greater Valley of Mexico and the State of Mexico, where not a single good air quality day has been recorded.

As of this year, capital authorities have declared four Phase 1 environmental alerts, mainly due to high ozone levels. Last year, the fourth Phase 1 alert was not declared until early April. It is unusual for environmental contingencies caused by high pollution levels to occur at the beginning of the year. Margarita Campuzano, Communications Director, Centro Mexicano de Derecho Ambiental (CEMDA), explained that this phenomenon is linked to climate change, as hot days have begun earlier than usual.

Iné Álvarez-Icaza, PhD in Engineering and Sciences, Tecnológico de Monterrey, noted that beyond environmental contingencies, the main risks companies in Mexico City currently face include flooding, heat waves, urban heat islands and water scarcity. 

According to testimonies from program participants, high temperatures lead to revenue losses and increased energy consumption, raising business costs.

 “In one of the workshops, participants told us that when temperatures are high between 12:00 p.m. and 4:00 p.m., customers stop buying. That means four hours with no sales. Others said that during the summer they spend three times more on refrigeration to preserve perishable goods. Depending on their sector and line of business, these events affect MSMEs in different ways,” Álvarez-Icaza said.

The platform uses scalable technologies, including AI, to provide specialized information. It currently offers a sustainable entrepreneurship course that provides training and certification for participants. 

According to its creators, the goal is to build a community capable of identifying and developing solutions to address the environmental footprint of MSMEs, which account for 99.8% of all economic units in the country. In the long term, as more companies join, the initiative is expected to establish more targeted tools to identify the areas most affected by climate change.

Aguascalientes and Germany Promote Sustainable MSMEs

In line with efforts to foster sustainable practices among MSMEs, the government of Aguascalientes, in collaboration with the German Cooperation Agency (GIZ), led a forum aimed at helping companies integrate into more competitive and sustainable value chains. The initiative seeks to facilitate access to strategic financing and specialized technical support.

“Micro, small and medium-sized enterprises sustain the economy, and that is why we need to strengthen them with financing, technical training, and equipment so they can continue growing, consolidate their operations and bring their products to other countries,” said Tere Jiménez, Governor of Aguascalientes.

Alejandro Callejas, Director of the Green Recovery and Just Transition Program, GIZ, explained that this strategic alliance aims to provide MSMEs with access to international sustainability and energy efficiency methodologies, specialized technical assistance, and global best practices in green finance and responsible supply chains.

Luis Carlos Rodríguez, Director of Funding and Sustainability, Business Capital Group (CAPEM), said his participation in the forum is intended to help MSMEs become more scalable, resilient and productive, something he noted is only possible with greater financing, training, and technology. 

“When we strengthen MSMEs, we strengthen the country’s productive base. When a small business grows, it not only generates more sales but also creates jobs, integrates suppliers, pays taxes, and develops its workforce. That is where we step in, providing financing instruments tailored to their productive reality,” he said.

Leonardo Montañez Castro, Mayor of Aguascalientes, highlighted municipal actions aimed at environmental protection, particularly in water efficiency and solid urban waste management. The program included two panels titled “Financing and Sustainable Practices” and “Best Practices and Sustainable Business Models,” as well as a conference on value chains and a business networking session. The activities brought together local companies and international representatives.