The financial system is regulated by the National Banking and Securities Commission (CNBV), the Ministry of Finance and Public Credit (SHCP) and the Bank of Mexico (BANXICO). The CNBV has the power to authorize, regulate, supervise and sanction various sectors and entities, such as financial intermediaries (FI: commercial banks, national development banks, investment funds, cooperatives), which in turn are key investment mobilizers. green. To effectively require strict and soft regulation for FIs to incorporate ESG standards and climate-related risks in their credit and risk assessment of projects, the CNBV must first internalize these concepts.

This project aims to support the CNBV’s green financing commitments through various knowledge products, capacity development, improved communication and the strengthening of knowledge exchange. In particular, the project:

a) generate reports on best practices from regulators to promote the integration and disclosure of environmental, social and governance (ESG) standards, and the integration of climate-related risks into products / services financial with special emphasis on the specific needs of vulnerable groups and with a gender perspective;
b) support the institutionalization of capacity development to improve skills;
c) develop effective communication material and coordinate an internal campaign to raise awareness within the CNBV and convey a clear message of intention to the financial sector, and
d) facilitate the exchange of best practices with national and international stakeholders.
e) Finally, the project includes the development of a self-assessment tool, which will allow financial institutions to know where they are and what is needed to advance their ESG efforts.

This multi-dimensional approach is expected to increase awareness and capacities on ESG standards and climate-related risks within the CNBV, providing a framework to underpin capacity-building efforts on the subject, as well as developing relevant regulation. This regulation, in turn, will accelerate the integration of ESG and climate risks into FI operations and credit and risk analyzes, leading to increased financial flows for projects that support climate change and targets. sustainable development, in line with Mexico’s commitments.