Expanding its support of sustainable financing, Banorte said two subsidiaries plan to use an international advisory board’s guidelines to give investors access to higher quality ESG information for decision-making.
Chairman Carlos Hank González said Afore XXI Banorte and Operadora de Fondos will promote International Sustainability Standards Board (ISSB) criteria, aimed at developing global benchmarks that respond to the needs of investors and financial markets.
“We are committed to adopting the standards issued by the International Sustainability Standards Board to make more informed and sustainability-focused investment decisions,” he said.
The move by Banorte, the largest Mexican financial institution, comes as investors with global investment portfolios increasingly are seeking high quality, transparent, reliable and comparable reporting by companies on climate and other environmental, social and governance (ESG) matters.
The ISSB helps meet that demand, with a comprehensive global baseline of sustainability-related disclosure standards that provide investors and other capital market participants details about companies’ sustainability-related risks and opportunities.
The Banorte subsidiaries, among the country’s leading investment fund operators, now will have access to standardized, quantifiable and comparable information on the ESG performance of the companies in which they invest.
That will allow investors to compare and value companies based on financial and sustainability performance data.
In March, Banorte announced it is partnering with the United Nations Development Programme (UNDP) in Mexico to provide training to help state and municipal governments build budgets that include “results-based” sustainable development goals.
The UN-designed program will bring financial discipline tools closer to the federal entities and municipalities in Mexico, as well as offer ideas for productive public works.
The bank also offers a string of sustainable consumer-centric financing products, including its recently launched Green Auto Loan, an exclusive loan to purchase hybrid and electric vehicles.