Yesterday, Bolsa Mexicana de Valores (BMV) launched its own sustainability index, in partnership with EIRIS. The index is based on the 70 most liquid shares on the Mexican Stock Exchange.  Companies who wish to be included are assessed according to their performance, impact and response to emerging environmental, social and governance (ESG) issues such as climate change and human rights.

BMV, with EIRIS and local research partner Ecovalores, developed the methodology and assessment framework for the index. These organizations also research and assess the companies that wish to be included on the index. BMV is the second largest exchange in Latin America at $450billion in stocks, behind Brazil.

To be eligible for inclusion on the index, each company’s sustainability practices are evaluated in comparison with its industry globally and have to score in the top 50% to be included on the index.

Peter Webster, Executive Director at EIRIS said: “Stock exchanges around the world – particularly those in emerging markets – are embracing the view that they have a key role to play in promoting sustainability and greater disclosure by their listed companies. We are delighted to be working with BMV as part our wider work with stock exchanges around the world”.

To read the full news release please click here.

Do you think Mexico’s development of a sustainability index will start a trend in other countries around the world? If so, why? Discuss!