Case study: How Monex identifies and works on strategic business opportunities to increase positive and reduce negative impacts

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Monex seeks to generate value for all its stakeholders, emphasizing the importance of maintaining strong relationships and encouraging active participation in the bank’s activities and decision-making processes. To support this commitment, Monex conducted an internal analysis to identify and prioritize stakeholders. In doing so, the bank considered all individuals and entities potentially affected by its operations or capable of influencing its business. Additionally, a linkage plan was established to determine the appropriate communication channels and frequency of engagement, ensuring ongoing, meaningful dialogue with each stakeholder group. The value proposition, commitments, and main communication methods for each stakeholder group are defined for the following stakeholders:

• Employees
• Customers
• Shareholders, investors, and other capital providers
• Authorities and regulatory agencies
• Suppliers
• Competitors and trade associations
• Community

Regarding the implementation of the PRB and the assessment and enhancement of the bank’s impacts, Monex has maintained continuous stakeholder engagement. In 2023, a third-party consultant facilitated an exercise to align the material topics identified for the ESG Strategy, ensuring that each PRB is comprehensively addressed through relevant initiatives.

Stakeholder consultation has been crucial in completing the materiality analysis and shaping the development of the ESG strategy.

For the materiality analysis, an initial list of priority topics was identified based on sources such as the ABM Sustainability Protocol, GRI’s materiality guidelines, the Principles for Responsible Banking and Investment from UNEP-FI for sector-specific issues, as well as FAQs from investors and analysts.

Following the framework outlined by the Global Reporting Initiative (GRI) standards, a comprehensive review was conducted through surveys and interviews with stakeholders including employees, suppliers, major shareholders, trade organizations, and financial sector-related entities. This process helped prioritize the identified topics. Additionally, client feedback was collected from those responsible for client service at Monex, while internal strategic insights were gathered through interviews with the Group’s senior management. Integrating these perspectives enabled Monex to determine their material topics (impact materiality).

For financial materiality, topics recommended by the Sustainability Accounting Standards Board (SASB) for the relevant industries were considered, with support from FTSE and S&P guidelines.

Similarly, to identify impact areas using UNEP-FI tools, various departments within the bank were consulted to gather the necessary information.

How did Monex identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2025 PRB Responsible Banking Progress Statement Monex reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

Monex is dedicated to fostering responsible and sustainable financial development and inclusion, incorporating ESG considerations into its operations. The bank actively participates in advancing the green and sustainable finance market in Mexico through initiatives embedded within its sustainable business model.

ESG Bonds Market
In 2024, Monex strengthened its role in the development of green and sustainable finance within its country, driven by several initiatives that differentiate its business model from competitors. In 2024, its Group received three mandates from the SHCP to join the BONDESG Distribution Syndicate. Monex’s participation in sovereign bond issuances in pesos positions it as a benchmark in banking, with the capacity to place $68.0 billion pesos, maintaining second place in total distributed amount with a cumulative sum of $151.0 billion pesos, alongside other leading banks. Another key ESG initiative involves integrating sovereign bonds into fixed-income portfolios, which by the end of 2024 amounted to holdings of $26.016 billion pesos—representing 22% of the total portfolio value of $118.46 billion pesos.

Monex reaffirms its commitment to developing the thematic bonds market in Mexico. Currently, Monex is one of the few institutions actively participating in the secondary market based on pricing, particularly for BONDESG government securities. Daily, the five participating brokers are provided with liquidity and buy-sell prices—reference levels that support the valuation of these instruments. During this period, the Market Making volume for BONDESG reached $107.718 billion pesos, accounting for just over 72% of the outstanding amount for BONDESG during this period.

Additionally, during this period, Monex was appointed by BANOBRAS (National Bank of Public Projects and Services) to participate for the first time in the placement of CEBURES (Long-Term Stock Certificates). Acting as the transaction leader, Monex led the placement of the first sovereign bond issued with a gender perspective by BANOBRAS, in collaboration with other banks, successfully placing $23.3 billion pesos.

Products and Services with ESG Criteria
Monex has launched an investment fund initiative aimed at helping clients allocate capital in line with ESG performance standards, reflecting its commitment to business risks and values. Specifically, Monex seeks to increase financing focused on resource efficiency, aligning with the second target of Principle 2.

SMEs Products and Solutions
Monex is also preparing to introduce a digital credit approval process for SMEs to support growth in this segment. This initiative will incorporate social and environmental practices and investment criteria. As part of its ESG Model within the Sustainable Finance axis, Monex affirms its belief in the potential of finance to contribute to the Sustainable Development Goals (SDGs). Monex has established the following commitments and guidelines to promote and develop sustainable products and similar initiatives:

• Aligning with leading international standards on the evolution of environmental and social credit risks to prevent potential impacts and foster responsible practices among clients.
• Advancing the development of financial products with positive social and/or environmental impacts, designed with that approach in mind, always aligned with Monex’s business segments and opportunities.
• Actively participating in the development of sustainable finance in Mexico by engaging in major organizations, alliances, and initiatives.
• Channelling resources provided by the government—such as loans and financial support like guarantees—that generate positive social and/or environmental impacts (this initiative is currently in development).

To further enhance its involvement in the development of the sustainable finance market, Monex has participated through the Green Finance Advisory Council in initiatives such as the prosperity program for the growth of Mexico’s green and sustainable market, supported by the United Kingdom embassy in Mexico, the UN Financial Centers for Sustainability, and the Green Finance Taskforce of the United Kingdom.

Additionally, Monex has financed various local infrastructure projects related to clean energy and has supported the SME sector with initiatives that generate a positive ESG impact.

Financial Education
Monex recognizes that financial education is a vital responsibility and a key factor in helping individuals achieve greater economic stability and well-being. In 2024, Monex supported the National Financial Education Week, organized by CONDUSEF, with the theme “The Road to Financial Well-Being.” This initiative aimed to raise awareness among Mexicans about the importance of managing their finances, strengthening their financial health, and effectively leveraging available resources. Activities included both remote and in-person conferences designed to improve understanding of personal finances and various investment portfolios. 

Climate Change
Regarding climate risks, Monex has developed plans to assess climate-related risks and opportunities within its portfolio, following TCFD recommendations. This process aims to support more informed decision-making related to resource allocation. Additionally, Monex has measured its corporate carbon footprint and is committed to identifying further opportunities to reduce the company’s environmental impact.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Monex, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.monex.com.mx/portal/download/files/Monex 2025 PRB_Responsible-Banking-Progress-Report.pdf

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