Mexican Stock Exchange to launch new index

The Mexican Stock Exchange (BMV) and the S&P Dow Jones Index will launch a new index in April, called the ESG (Environmental, Social and Governance) index.

As from March 23, Dow Jones will stop calculating and rebalancing the S&P/BMV IPC index, which seeks to measure the performance of the largest and most liquid stocks listed on the BMV (pictured), providing a broad, representative and easily replicable index covering the Mexican stock market, according to a note from local law firm Basham, Ringe y Correa.

The ESG index endorses the environmental and social impact of companies’ investments, as well as their efforts to pursue best practices in terms of employees’ working conditions, companies’ interaction with local communities and their observance of health and safety issues, as well as their managerial methods.