Companies throughout Mexico and elsewhere in Latin America are paying closer attention to ESG matters as they find they need to improve their ESG ratings, lawyers say.

ESG reporting obligations in Europe have expanded, and at the same time, European investors are increasingly turning their backs on companies that don’t make the ESG cut. Meanwhile, Mexican institutions such as the stock exchanges, the Mexican banking regulator and the country’s Finance Ministry are also setting up regulatory requirements for issuers and investors that include higher ESG standards and disclosure obligations.