Mexico Firms Lead Global Average in Climate Action Plans

More than three-quarters of companies in Mexico plan to accelerate their climate transition strategies over the next three years, as sustainability becomes a central business and investment priority, according to a survey by HSBC.

The HSBC Sustainability Pulse Survey, conducted in September 2025, found that 81% of Mexican companies expect to speed up their climate transition efforts in the next three years — slightly above the global average. Sustainability is increasingly viewed as a driver of value creation: 88% of Mexican respondents said climate transition is highly important to offering better products or services, 16 percentage points above the global benchmark.

Technology adoption is a key component of this strategy. About 71% of Mexican companies consider themselves advanced adopters of climate-related technologies, above the global average, and 56% have already implemented energy efficiency improvements across buildings, operations or manufacturing processes.

Looking ahead, 47% of companies plan to prioritize renewable energy purchases over the next three years, while 42% expect to allocate more than 10% of their capital expenditures to climate transition initiatives. More than half (53%) believe sustainability investments will directly enhance their products or services. Companies also expect these investments to generate new business opportunities (52%) and increase revenues or profits (48%).

Despite this momentum, significant barriers remain. High costs are the primary challenge, cited by 36% of respondents. Limited access to financing follows at 29%, alongside regulatory uncertainty and insufficient availability of technological solutions, each also mentioned by 29%. Additionally, 53% of companies said clearer regulatory frameworks are necessary to adopt or scale climate technologies, while 29% identified internal resistance to change as an obstacle.

Mexican companies also pointed to gaps in the availability, scalability or affordability of key technologies, including low-carbon energy solutions (48%), sustainable transport and electrification technologies (38%), energy efficiency technologies (37%), heavy industry decarbonization solutions (35%), and low-carbon materials or circular economy technologies (29%).

Failure to meet sustainability targets poses reputational and commercial risks. About 39% of companies said they would face pressure from customers or stakeholders, 38% cited reputational damage, and 35% identified regulatory penalties or noncompliance as potential consequences.

Investor sentiment reinforces this pressure. Among North American institutional investors surveyed, 81% said a credible sustainability strategy is now as important as financial performance. Approximately 79% believe companies with strong sustainability plans are better positioned to attract long-term capital, while 72% expect companies that fail to meet sustainability commitments to face divestment.

“Companies continue to integrate sustainability strategies into their business plans because they see tangible benefits,” said Diego Spannaus, head of sustainable finance, HSBC Mexico and Latin America. “At the same time, high costs and access to financing remain challenges, and that is where HSBC can support companies based on their needs and projects.”

The HSBC Sustainability Pulse Survey gathered responses from 1,651 senior decision-makers across 12 global markets, including 100 in Mexico, as well as 500 institutional investors worldwide.

ESG Budgets on the Rise

A separate survey by KPMG México, conducted in October 2025, also found that sustainability is becoming embedded in corporate strategy. The study Panorama ASG en México y Centroamérica 2025 reported that eight in 10 companies in Mexico and Central America now allocate annual budgets to environmental, social and governance (ESG) initiatives. However, most spending remains concentrated on regulatory compliance.

KPMG found that 57% of ESG budgets in Mexico and 40% in Central America are directed toward meeting environmental and social regulations. Half of companies in Mexico and 60% in Central America said ESG contributes to improving quality of life and environmental protection. Additionally, 39% in Mexico and 42% in Central America view ESG as essential for business viability, while 59% and 60%, respectively, said ESG data helps anticipate risks and opportunities.

“The ESG conversation accelerated after the pandemic. Now it is essential to move from discourse to measurable action,” said Juan Carlos Reséndiz, lead partner for Corporate Governance, Risk and Sustainability Advisory, KPMG México. “Organizations increasingly recognize the importance of ESG for anticipating risks and ensuring business continuity.”

Despite growing awareness, integration levels remain uneven. Only 35% of companies in Mexico and 39% in Central America report a high level of ESG integration into operations and strategy. Another 33% in Mexico and 19% in Central America operate at a medium level, incorporating only two of the three ESG pillars.

As a result, just 33% of Mexican companies and 36% of Central American firms have a formal sustainability strategy aligned with business objectives. Nearly half of Mexican companies and more than one-third in Central America implement ESG initiatives without strategic alignment, while only 43% and 35%, respectively, use ESG data to inform decision-making.

Financial commitments also remain modest. In Mexico, 27% of companies allocate less than US$40,000 annually to ESG initiatives, compared with 21% in Central America. Mexican firms dedicate 41% of ESG budgets to compliance with new Sustainability Information Standards linked to financial reporting and 39% to ESG reporting. In Central America, 47% of ESG spending goes toward community initiatives and 42% toward reporting.

Governance structures show similar inconsistencies. One-third of companies in Mexico and 43% in Central America said boards actively lead ESG initiatives, while 30% and 19%, respectively, view ESG primarily as a compliance issue. Notably, 53% of Mexican companies and 60% in Central America do not incorporate ESG metrics into executive compensation.

“The regional sustainability vision must go beyond compliance,” said Cristina Gutiérrez, consulting director, KPMG Costa Rica. “Integrating ESG into business models helps anticipate risks, drive innovation and sustain long-term market presence.”