Sustainability‑linked frameworks link financial characteristics to predefined environmental and social performance targets. Moody’s Ratings’ Second Party Opinions assess the relevance and materiality of the sustainability targets in these frameworks as well as how the targets align with market principles.
In this context, the Government of Mexico published a Sustainability‑Linked Framework Supplement in March 2026 to support future sustainability‑linked instruments. The framework covers a broad set of environmental and social priorities, including climate change mitigation, biodiversity protection, water efficiency, gender equality, and poverty reduction.
Moody’s Ratings provided a Second Party Opinion (SPO) on Mexico’s Sustainability‑Linked Framework Supplement and assigned a Sustainability Quality Score (SQS2) (very good). The assessment evaluated the framework’s alignment with the 2025 Sustainability‑Linked Loan Principles (SLLP) published by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA) using Moody’s Ratings’ Second Party Opinion Assessment Framework.
Moody’s Ratings’ analysis focused on seven key performance indicators (KPIs), which comprised four environmental and three social indicators. These KPIs address net greenhouse gas emissions, clean energy generation, biodiversity protection, agricultural water efficiency, gender gaps in labor force participation, poverty levels among women, and poverty levels among Indigenous populations. The review assessed the relevance, ambition, measurability, and transparency of each KPI and its associated Sustainability Performance Target (SPT).
The opinion highlighted that the selected KPIs are clearly defined, aligned with national policy objectives, and supported by disclosed calculation methodologies and external benchmarks. Moody’s Ratings also noted Mexico’s commitment to annual reporting and external verification of KPI performance, supporting consistency and accountability over time.
The SQS2 score assigned to Mexico’s Sustainability-Linked Framework Supplement indicates a significant contribution to sustainability, while also distinguishing between KPIs that are closely aligned with the most stringent international standards and those where ambition is more moderate. This balanced assessment supports more informed investor dialogue around sustainability‑linked financing structures.
Moody’s Ratings’ Second Party Opinion on Mexico’s Sustainability‑Linked Framework Supplement illustrates how independent analysis can support clearer investor communication, strengthen transparency, and help market participants better understand how sustainability considerations are embedded within sovereign financing strategies.
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