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- Water scarcity remains a critical issue for the operation and establishment of companies in Mexico. Currently, water scarcity is a major challenge. Companies in Mexico currently face complex water management problems, including overextraction, pollution, lack of treatment, and unequal distribution, which could present contingencies in their operations. To navigate these challenges, companies may want to consider implementing circular economy policies and promoting the reuse and collection of water, as well as adequate treatment. Without the adoption of preventive policies, it is likely that the cost of water will increase exponentially in the coming years.
- Climate change continues to be an essential factor. Mexico has established ambitious goals regarding climate change as part of its commitment to address environmental challenges and contribute to global sustainability efforts. Therefore, Mexican and foreign companies with operations in the country, especially in the industrial and manufacturing sector, must pay close attention to these objectives and consider them within their business strategy to have long-term sustainable development plans.
- ESG implementation remains a key aspect of nearshoring operations. The implementation of Environmental, Social and Governance (ESG) criteria in the context of nearshoring operations in Mexico will become increasingly relevant due to the growing demand for companies to have a strong commitment to sustainable and responsible business practices, not only in Mexico, but globally, including the entire supply chain. This requires companies to evaluate their operations and policies for compliance with applicable ESG standards.
- Environmental and social consultations will continue to play an important role in project development. Environmental and social consultations for projects in Mexico continue to play a fundamental role in the development of projects due to the country’s biodiversity and social diversity, among other factors. Such consultations should comply with local and international legislation, and consider related issues raised by local communities, stakeholders, and environmental experts.
- The circular economy will continue to be a driver for economic development. Over the past few years, companies in Mexico have increased their adoption of a circular economy to optimize resource management, economic growth, and environmental sustainability. This trend will likely continue in the coming years.
About the Authors:
Erick Hernández Gallego: Erick is Co-Chair of the Mexico City Energy & Natural Resources Practice and Chair of the Mexico City Environmental practice. He focuses his practice on environmental, energy, ESG, real estate, administrative litigation, food, beverage & agribusiness, mining, and regulatory matters.
Luis Jorge Akle Arronte: Luis Jorge is a senior associate at the firm and focuses his practice on environmental matters and energy projects. He has broad experience assisting clients in virtually all types of energy matters, including energy generation development, power purchase agreements, market operations, renewables, energy litigation, energy transactions, electric energy tenders, as well as hydrocarbons tender procedures, among others.
*Special thanks to Paula De Uriarte˘ for her valuable contribution to this article.
˘ Not admitted to the practice of law.