XXI Banorte Becomes First Mexican Pension Fund to Validate Short-term GEI Reduction Goals
XXI Banorte, a prominent Administratrix of Retirement Funds (Afore) in Mexico, has achieved validation of its short-term greenhouse gas emissions (GEI) reduction targets by the Science Based Targets Initiative (SBTi). This accomplishment underscores XXI Banorte’s dedication to fostering a more sustainable financial system and calls upon businesses, investors, and authorities to expedite the transition towards a low-carbon economy.
Key Achievements and Objectives
- XXI Banorte is the first Afore in Mexico to validate its short-term GEI reduction goals by SBTi, aligning with the global target of the Paris Agreement.
- The Afore aims to reduce its absolute GEI emissions by 42% by 2030, based on the 2023 benchmark.
- For its investment portfolio, XXI Banorte seeks to lower the carbon temperature of its assets—comprising stocks, corporate bonds, funds, and FIBRAS—from 2.34°C to 1.99°C and from 2.64°C to 2.27°C, depending on the asset type.
Strengthening Leadership in Responsible Investment
With this milestone, XXI Banorte reinforces its leadership in responsible investment and enhances its capability to manage climate-related risks. The Afore’s ongoing integration of Environmental, Social, and Governance (ESG) criteria into its investment processes, adherence to the United Nations Principles for Responsible Investment (UNPRI), and participation in regional forums like Diálogos por el Clima LATAM, further solidify its commitment to sustainability.
Vision and Transparency
David Razú Aznar, General Director of XXI Banorte, expressed the organization’s conviction that every invested peso should contribute to a safer and more prosperous future for Mexico. The Afore aims to generate economic and social value for every Mexican while combating climate change and safeguarding the assets of millions of workers.
XXI Banorte maintains a policy of transparency by annually reporting climate risk management under the Task Force on Climate-related Financial Disclosures (TCFD) framework, promoting clear communication about climate-related risks and opportunities.
Call to Action for Upcoming COP30
As the upcoming United Nations Conference on Climate Change (COP30) prepares to gather global leaders for setting new environmental goals, XXI Banorte reaffirms its commitment to building a more sustainable financial system. The Afore urges businesses, investors, and authorities to implement measurable actions that accelerate the transition towards a low-carbon economy, offering global business and investment opportunities.
Key Questions and Answers
- What does it mean for XXI Banorte to validate its GEI reduction targets?
Validation by SBTi confirms that XXI Banorte’s GEI reduction goals are in line with the latest climate science and contribute to limiting global warming in accordance with the Paris Agreement.
- Why is this achievement significant for XXI Banorte?
This accomplishment underscores XXI Banorte’s dedication to fostering a more sustainable financial system and positions the Afore as a leader in responsible investment.
- How does this validation impact XXI Banorte’s investment strategy?
XXI Banorte aims to lower the carbon temperature of its investment portfolio, ensuring that its assets contribute to a low-carbon economy.
- What is the significance of XXI Banorte’s commitment to transparency and reporting under TCFD?
Reporting climate risks and opportunities under the TCFD framework promotes clear communication, enabling stakeholders to make informed decisions regarding climate-related factors.
