How Are Companies in Latin America Performing in Terms of Sustainability? The Latin America Business Index: Private Sector Analysis, conducted by a team of research professors from EGADE Business School at Tecnológico de Monterrey, evaluates the region’s corporate progress in sustainability.
The index was developed by a team of academics including Boyd Cohen, Christiane Molina Brockmann, Eduardo Aguiñaga Maldonado, and Carlos Vargas, alongside Pablo Necoechea, Regional Director of EGADE Business School in Mexico City and Querétaro.
According to a shared statement, the analysis ranks 13 Latin American countries based on their performance in corporate transparency, climate innovation, sustainable finance, and sustainability education.
Mexico holds the seventh spot in the ranking, grappling with challenges in regulation, access to sustainable financing, and the standardization of ESG metrics, despite making strides in solar and wind energy.
Environmental, Social, and Governance (ESG) criteria serve as a balanced assessment tool to measure non-financial impacts, risks, and opportunities, according to consulting firm PwC.
“Mexican companies have strengthened their commitment to sustainability, but there is still room for improvement in integrating exponential technologies and regenerative business models, as well as ensuring equitable access to green financing,” said Boyd Cohen, Director of the Master’s in Sustainable Business at EGADE Business School and leader of the team that developed the index.
The full ranking of the index is as follows:
- Costa Rica (9.08)
- Uruguay (9.07)
- Chile (7.23)
- Brazil (5.80)
- Colombia (3.02)
- Panama (2.39)
- Mexico (2.29)
- Ecuador (0.95)
- Argentina (-0.06)
- Peru (-1.00)
- Bolivia (-1.48)
- Guatemala (-3.51)
- Dominican Republic (-4.56)
What Best Practices Define Corporate Leadership?
Costa Rica leads the sustainability index, followed by Uruguay and Chile. These countries stand out for their high use of renewable energy, with over 95% of their electricity generated from clean sources, according to the Green Future Index.
Countries with a higher number of companies reporting their environmental impact to the Carbon Disclosure Project (CDP) and adhering to the UN Global Compact have shown stronger commitments to sustainability, the study revealed.
In terms of climate innovation, Brazil and Chile lead in clean technology startups, while Mexico maintains an emerging innovation ecosystem in energy transition.
The index also highlights advancements in green bond issuance and ESG adoption in Brazil, Mexico, and Colombia. However, regulatory challenges and the lack of standardized sustainability metrics continue to limit the ability of investors and regulators to assess environmental and social risks.
Steps to Strengthen Sustainability
Brazil, Colombia, and Mexico lead in institutions affiliated with the Principles for Responsible Management Education (PRME). Nonetheless, integrating sustainability into business school curricula remains limited, according to the ranking.
“The future of corporate sustainability in Latin America will depend on countries’ ability to establish robust regulatory frameworks, promote green financing, and foster sustainability education,” Cohen stated.
The index was presented on February 27 at EGADE Business School’s Monterrey campus during the launch of the new Master’s in Sustainable Business program, designed to train leaders capable of embedding sustainability into corporate strategies.
Did you find this story interesting? Would you like to publish it? Contact our content editor to learn more at marianaleonm@tec.mx
