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Sustainability

Commitment to sustainability is fundamental to Mega. That is why we are very proud to achieve the drafting and release of our first annual sustainability report (May 2022).

MEGA will not provide financing to entities that damage the environment or foster social inequality.

*The Committee is comprised of the following members: President, Independent member of the Board, ESG Manager, CEO, General Counsel, Internal Auditor and Sales Director.

The connection between the economic development of countries and their environment has influenced global warming, the generation of wastewater, the emission of greenhouse gases, and the shortage of resources, among others that jeopardize the quality of life of the population.

Our society is increasingly aware of the importance of preserving natural resources and fostering efforts to develop new tools applying principles of sustainability and management of socio-environmental factors that contribute to the creation of responsible, socially fair, inclusive and economically viable projects or investments. For this purpose, it is imperative to work towards changing the way we consume and produce as society, and to transform ourselves we require businessmen conscious of the environmental and social damage that may be caused by their companies’ operations.

The benefit of adopting an environmental and social management system will lead to improved performance in the economic, social, and environmental aspects as a factor of competitiveness.

At Operadora de Servicios MEGA, S.A. de C.V., SOFOM E.R. ("MEGA"), we are committed to promoting sustainable economic development in the private sector by embedding environmental and social responsibility standards as an objective linked to social equity, ecological value, long-term development and economic growth of our clients, ensuring that their investments are not undermined by adverse impacts. so that it is possible to improve the welfare of the current population without compromising the quality of life of future generations. All this, in such a way that is possible to improve the well-being of the current population without compromising the quality of life of future generations.

In line with this philosophy, in 2017, MEGA became the first company in Mexico to implement the World Bank Environmental and Social Management System and consequently, provided training in Environmental, Social, and Governance (“ESG”) to all MEGA personnel.

Furthermore, in an effort to continuously promote social equality, MEGA has created initiatives and principles aligned to the highest possible standards. Through our Mega Da+ (“Mega Gives+”) initiative, MEGA provides financing to become catalysts for a more gender equal society. MEGA aims to finance business that ultimately give women more access to wealth, that welcome and foster women in decision-making positions and that commit to employment with equal pay.

In this manner, in association with DEG and international expert consultants, MEGA developed a comprehensive business strategy to unlock the impact and business case of a strategic focus on gender-smart companies. MEGA’s gender approach strategy is fully aligned with the 2X Challenge, a global initiative at the forefront of gender lens investing and sponsored by the main development banks worldwide. This makes Mega one of the first financial institutions in the world to align its business strategy, portfolio management and value creation approach in accordance with the criteria derived from the 2X Challenge.

Today, the business perspective has changed, now to evaluate a company we must not only focus on financial data but also identify other factors related to a sound sustainable development.

The strategies for achieving financial sustainability in micro-, small- and medium-sized enterprises must focus on three fundamental pillars:

  • Social – Respect for human rights, care for the community and compliance with relevant local, national, and international regulations.

  • Labor Security – Rights to health, protection, and equity of workers.

  • Environmental performance – Raise investments in clean production and waste management.

MEGA has developed a collection of tools designed to roll out a comprehensive package of processes, roles, responsibilities and practices to uphold the Company's Environmental and Social Management Policy in each transaction, seeking to ensure that the activities being financed have positive effects on sustainable development.

MEGA's Environmental and Social Management System provides accurate information about activities performed by the Company and enhances the capacity of stakeholders to voice their needs and demands regarding the results of the environmental and social management.

The Company’s Environmental and Social Committee* is responsible for approving policies, manuals, and procedures for environmental and social risk assessment, ensuring these are up-to-date and aligned with the best market practices.

The procedure implemented is comprised by four phases:

  • If the client's activity or project falls within MEGA’s list of excluded activities, it will not be considered a credit prospect.

  • Assess the environmental and social risks to which our clients are exposed in accordance with the Environmental and Social Performance Standards outlined by the International Finance Corporation (IFC, a member of the World Bank Group).

  • Risk rating: In this phase MEGA rates the risk of negative environmental and social impacts of our clients’ activities. The analysis factors in: (i) the risk of the client's activity (Low, Medium and High), following the European Bank for Reconstruction and Development (EBRD) categorization list; (ii) the size of the company, following the Inter-American Development Bank (IDB) criteria for MSMEs; (iii) the amount requested; and, (iv) the location.

  • Based on the aforementioned criteria, the profile is defined in accordance with the classification established by MEGA, whereby no more than 20% of our portfolio may be classified as High Risk.