On July 11, 2020 S&P Global announced that the S&P/BMV Total Mexico ESG Index was launched on June 22, 2020.
“The S&P/BMV Total Mexico ESG Index is built with the same philosophy underpinning the creation of many popular new ESG indices around the world, such as the S&P 500 ESG Index. The idea is that certain ESG indices should be more inclusive than exclusive to remain broad and diversified, such that the ESG index has a risk/return profile resembling that of the market, while providing an improved ESG profile.
Exhibit 1 shows how this index is constructed. First, exclusions are made according to companies’ involvement in business activities related to tobacco or controversial weapons or low compliance with the United Nations Global Compact (UNGC). Next, the S&P DJI ESG Score is used to screen and select companies. Finally, companies are weighted by their ESG Score.
The result is an index that, at launch, retained 29 of the 56 companies in its benchmark index, the S&P/BMV Total Mexico Index. By maintaining more than half of the original number of constituents and selecting companies within their industries, the index remains relatively balanced from a sector perspective. Exhibit 2 shows the average sector exposure of the ESG index and the benchmark index from the time S&P DJI had enough ESG data to calculate this index.”
You may read the article on the S&P Global internet site.