Banco Santander

Santander Mexico launches second ESG-based equity investment fund

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Banco Santander, one of Mexico’s leading banks, launched its second equity fund based on environmental, social and governance principles (ESG)  together with Robeco Institutional Asset Management (Robeco).

The bank explained the new Global ESG Equity Fund (SAM-RVG), a diversified portfolio of between 30 to 40 issuers, will now have a global focus and complements its offering of instruments of sustainable investment, with local and global options, being the only one in the market with this double offer.

Santander is aiming to raise up to MXN8 billion ($405 million) for this fund, looking to buy shares in companies that meet ESG criteria, Latin Finance reported citing Santander executives.

In July 2020, Santander launched Mexico’s first ESG-based equity investment fund, incorporating non-financial elements as part of its broader commitment to corporate social responsibility.

“Without a doubt, the SAM-ESG Fund projects us towards a sustainable investment model that is increasingly demanded by investors who seek not only an attractive long-term return, but also to contribute to the environment and society,” Jesús Mendoza del Río, CEO of Santander Asset Management’s unit had said.

In February 2021, the Mexican lender announced that it was the only Mexican bank to be included in the “Sustainability Yearbook 2021” of S&P Global, due to the advancement of its ESG practices. Additionally, it was named an “Industry Mover” for exceeding last year’s score and for showing the strongest improvement in ESG matters in the financial sector.

For the 2021 yearbook, which is the most important of its kind on a global level, 7,032 businesses in 61 industries around the world were selected and evaluated, but only 631 companies were included in the yearbook, of which only 6 were Mexican businesses in different industries.

S&P Global is the principal global provider of credit ratings, reference benchmarks and global market analysis, whose stock index promotes corporate assessment, transparency and business growth around the world, guiding the business community in making informed decisions.