ERM is the first to recognize the work of the country’s regulatory bodies relating to social and environmental impact assessments. There needs to be definitive guidelines on both compliance with regulation and the undertaking of effective and thorough social impact assessments. It should not be considered an obstacle but should become a mainstream practice, based on international benchmarks. Anticipation is the name of the game. Social issues go well beyond official regulations and permitting processes. The World Bank and the IFC have extensive references on how to best approach these matters that are being applied worldwide and that Mexico’s private sector can also reference.
PEMEX needs to begin seeing safety as an investment, because until now they have seen it as an additional cost. Refineries growth in the past 50 years has been impressive, but it is important to consider modernizing their fire safety systems. Robust systems are vital to guarantee safety in any type of accident. The bestcase scenario is that that a big company like Shell or BP comes here to fund the safety systems of these plants. Not meeting safety standards puts PEMEX at risk of several negative circumstances. It risks falling short of insurance company’s minimum requirements in order to maintain their insurance premium. The company could negate the premium rate for not complying with its safety requirements. Additionally, it risks a significant accident occurring