New Environmental, Social and Governance Index (ESG) for the Mexican Stock Market

Dear Clients and Friends,

Through a statement published on March 5th on its website, the Mexican Stock Exchange (BMV) announced that in early April will launch, along with S&P Dow Jones Indices (S&P DJI), a new environmental, social and governance index (ESG) for the Mexican stock market, which will replace the current S&P/BMV IPS Sustainable index.

The ESG Index integrates environmental, social and corporate governance elements that enable investors to effectively manage their risks and achieve higher returns over the long term.

As a result of the launch of the new index, as of Monday March 23rd, the calculation and rebalancing of the S&P/BMV Sustainable CPI index, which until now had functioned as the benchmark for managing sustainability investment portfolios, will be discontinued.

According to the BMV’s statement, the introduction of the ESG index in the Mexican market will provide local and international investors with a more robust indicator that incorporates the best environmental, social and corporate governance practices worldwide.