• Net-Zero Goal: Pemex commits to net-zero Scope 1 & 2 emissions by 2050, with interim GHG reduction targets.
• Enhanced Disclosures: Aligning reporting with ISSB and TCFD standards to improve transparency.
• Methane Reduction: Aims to cut methane emissions by 30% and eliminate routine flaring by 2030.

Pemex’s Climate Shift

Mexico’s state-owned oil giant Pemex has unveiled its first Sustainability Plan, marking a significant step in addressing climate risks. Climate Action 100+ investors, engaging with Pemex since 2020, welcome this progress as the company commits to decarbonization efforts.

Investor Engagement & Progress

Pemex was added to the Climate Action 100+ focus list in 2020 due to systemic climate risks. Investor engagement initially faced hurdles, but consistent dialogue led to key advancements:

• 2023: Pemex established a Sustainability Committee at the board level.
• 2024: Released its first Sustainability Plan, developed in consultation with S&P Global and investor stakeholders.

Related Article: Pemex in Talks With Goldman, HSBC on $1 Billion ESG Financing

Key Climate Commitments

Pemex’s plan outlines:

• Net-Zero by 2050: Targets Scope 1 & 2 emissions reduction with structured short-, medium-, and long-term goals.
• Stronger Climate Disclosures: Aligning with ISSB and TCFD reporting standards, improving Pemex’s benchmark scores.
• Capital Allocation for Climate Goals: A framework to ensure investments align with sustainability objectives.
• Methane Reduction Strategy: Aims to cut methane emissions by 30% and eliminate routine gas flaring in exploration & production (E&P) by 2030.

Investor Outlook

Despite these steps, investors emphasize the need for continuous monitoring and further action.

Alejandro Bujanos (Afore SURA), Nicolas Jaquier (Ninety-One), and Marion Plouhinec (Carmignac):
“As co-leads of the Climate Action 100+ engagement initiative, we are encouraged by Pemex’s progress. Establishing a Sustainability Committee and releasing its first Sustainability Plan signal a willingness to take action. We will continue to monitor execution and push for further climate commitments.”

Investors remain engaged, tracking Pemex’s alignment with international best practices and Mexico’s transition to a low-carbon economy.

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