03
Sustainable Investment
The Company acknowledges that ESG (environmental, social and governance) factors influence the creation of value for investments and, therefore, pursues the development of a sustainable strategy.
The Company acknowledges that ESG (environmental, social and governance) factors influence the creation of value for investments and, therefore, pursues the development of a sustainable strategy.
Afore SURA adheres to the fiduciary duty of offering its customers the best possible retirement, which is affected by risk and return on investments, and by the world in which SURA customers will retire. The Company acknowledges that ESG (environmental, social and governance) factors influence the creation of value for investments and, therefore, pursues the development of a sustainable strategy, while also pursuing the right risk-return level in synergy with three goals:
Our strategy is based on 
SURA’S Sustainable Investment Policy and
Stewardship Policy as well as international and recommendations and initiatives that we recognize as market leaders.
Stewardship
Afore SURA considers stewardship as a key mechanism for influencing improvement in the companies and instruments in which we invest, with the aim to increase their long-term value. This is exercised through voting and engagement.
Voting
An active role was played in the voting processes of our investments, based on guidelines set forth in our
Stewardship policy.
Voting During Assemblies in 2024
Voted Proposals by Category (Public Investments)1
Engagements in 2024
Distribution of Engagements by Topic
Climate Action 100+, an initiative in which we co-lead relationship groups with Pemex and Grupo México, in addition to participating in the CEMEX group; the three companies achieved improvements in the initiative’s disclosure framework.
Outstanding Engagement
Terrafina was publicly issued in 2013 and is a Real Estate Investment Trust focused on managing industrial assets. It was initially structured with Prudential as an outside consultant, charging a commission fee for consultancy based on assets under management: 0.5% yearly over the reasonable value of the real estate assets.
After several years of operation and by recommendation of its Corporate Practices Committee and also of investors like Afore SURA, in 2024, Terrafina’s Technical Committee published a relevant event and announced that the incorporation of the REIT had been approved, which resulted in the termination of the agreement for outside consultancy with Prudential. Terrafina also announced the elimination of poison pills in line with best corporate governance practices.
The announcement awakened the interest of other participants to acquire Terrafina, and two takeover bids (OPAs) came about. Terrafina also brought up the idea of absorbing the duties performed by the outside consultant, making the necessary adjustments to its structure.
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company
FIBRA Terrafina |
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KEY TOPICS
Incorporation of REIT and Takeover Bids |
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relationship and outcome
As an investor in Terrafina, and pursuant to our fiduciary duty of protecting the value of our investments, in May 2024, Afore SURA called a General Assembly, in which a proposal was made to authorize independent members of the Technical Committee (not having any conflicts of interest) to instruct the Trust to hire tax lawyers, financial consultants, and any other specialist needed. The purpose was to assist the Technical Committee in its analysis of the takeover bids presented and of combining the business to acquire Terrafina. Additionally, it proposed that holders should receive the analysis’ results.
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| company |
FIBRA Terrafina |
| KEY TOPICS |
Incorporation of REIT and Takeover Bids |
| relationship and outcome |
As an investor in Terrafina, and pursuant to our fiduciary duty of protecting the value of our investments, in May 2024, Afore SURA called a General Assembly, in which a proposal was made to authorize independent members of the Technical Committee (not having any conflicts of interest) to instruct the Trust to hire tax lawyers, financial consultants, and any other specialist needed. The purpose was to assist the Technical Committee in its analysis of the takeover bids presented and of combining the business to acquire Terrafina. Additionally, it proposed that holders should receive the analysis’ results.
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After the analysis of takeover bids to acquire Terrafina, it is FIBRA Prologis who has acquired 90% of Terrafina’s certificates through two offerings.
For further information, consult this link.
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COMPANY
FIBRA Prologis |
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KEY TOPICS
Commissions |
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RELATIONSHIP AND OUTCOME
Afore SURA participated in the first offering. However, prior to doing so, SURA asked FIBRA Prologis to change its commissions’ structure, with the purpose of obtaining a better transaction result for our customers. In October 2024, FIBRA Prologis announced a change in its commissions structure, which improves the ratio between commissions and the REIT’s portfolio value. |
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| COMPANY |
FIBRA Prologis |
| KEY TOPICS |
Commissions |
| RELATIONSHIP AND OUTCOME |
Afore SURA participated in the first offering. However, prior to doing so, SURA asked FIBRA Prologis to change its commissions’ structure, with the purpose of obtaining a better transaction result for our customers. In October 2024, FIBRA Prologis announced a change in its commissions structure, which improves the ratio between commissions and the REIT’s portfolio value. |
Commission for asset management over the value of assets under management
| Commission for prior management: | |
|---|---|
| management range | PBS |
| USD $0 TO $5 BILLION | 75 |
| OVER $55 BILLION | 60 |
| NEW COMMISSION MANAGEMENT: | |
|---|---|
| PORTFOLIO VALUE RANGE | PBS |
| USD $0 TO $5 BILLION | 75 |
| OVER $5 BILLION TO $7.5 BILLION | 60 |
| OVER $7.5 BILLION | 50 |
| Effective date: January 1, 2025. | |
PEMEX is the largest oil company in Mexico, and therefore its climate-related actions are required in any energy-transition scenario in the country.
The Company was added to the Climate Action 100+ (CA100+) focus list in 2020, due to systemic risks and material investment risks for its operation and for its stakeholders. In recognition of an alignment to approach this risk with its fiduciary duties, Afore SURA decided to become part of the CA100+ engagement group to involve the Company and operate as its co-leader.
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COMPANY
PEMEX |
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KEY TOPICS
Climate action |
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relationship and outcome
The outcome of the collaborative engagement has been notorious in recent years, and investors have observed significant improvements in the quality of dialogue with the Company. This has been translated to improvements in the Company’s sustainability goals and the way it began approaching climate-related risks. . Recent progress includes the creation of a Sustainability Committee for PEMEX in 2023, followed by the publishing of its first Sustainability Plan in 2024, which includes a series of decarbonization commitments:
Moreover, the Company has Afore SURA will continue its leadership in the engagement with Pemex, ever aware that setting goals and disclosing information in a timely manner, is only the first step towards achieving a long-term transition strategy.
For further information on the outcome of the collaborative engagement,
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| COMPANY |
PEMEX |
| KEY TOPICS |
Climate action |
| relationship and outcome |
The outcome of the collaborative engagement has been notorious in recent years, and investors have observed significant improvements in the quality of dialogue with the Company. This has been translated to improvements in the Company’s sustainability goals and the way it began approaching climate-related risks. . Recent progress includes the creation of a Sustainability Committee for PEMEX in 2023, followed by the publishing of its first Sustainability Plan in 2024, which includes a series of decarbonization commitments:
Moreover, the Company has Afore SURA will continue its leadership in the engagement with Pemex, ever aware that setting goals and disclosing information in a timely manner, is only the first step towards achieving a long-term transition strategy.
For further information on the outcome of the collaborative engagement,
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From our experience in Climate Action 100+ and detecting the lack of investor-led initiatives thwa facilitate collaborative engagements with companies operating in Mexico, in 2024 we promoted the creation of MxColab, whose goal is to promote the incorporation of ESG best practices among companies in the Mexican stock exchanges. This initiative facilitates dialogue between groups of investors and companies, via a more effective communication mechanism between both parties.
MxColab seeks the participation of different investor groups that are part of the Mexican financial system. This is a positive contribution to the mobilization of capital and financing for greater sustainability in Mexico, and to bolster best practices for financial sustainability.
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INITIATIVE
Driving collaborative engagement with MxColab |
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KEY TOPICS
Collaborative engagement |
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ACHIEVEMENTS
As a founding member of the MxColab, in 2024 Afore SURA achieved its consolidation within the
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| INITIATIVE |
Driving collaborative engagement with MxColab |
| KEY TOPICS |
Collaborative engagement |
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ACHIEVEMENTS
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As a founding member of the MxColab, in 2024 Afore SURA achieved its consolidation within the
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Climate Change:
Our investment portfolio concentrates climate change materiality in Afore SURA.
Managing climate change is a priority within our investment strategy.
The way in which a financial enterprise such as Afore SURA can significantly respond to climate change is by promoting that portfolio companies and managers implement best practices. They are the ones who directly generate mitigation and adaptation results for the real economy. Therefore, our approach as a sustainable investor is to accompany and fund the transition. This is achieved through stewardship activities with a climate approach and by extending our capability for risk, opportunity, and transition needs’ analysis.
Financed Emissions 20232
2 Emission data received is typically published a year later; the most recent footprint data presented due to information availability corresponds to 2023, at the close of the portfolio for that same year.
*GHG emission data reported or estimated by companies, managers, or information providers with which we work may differ regarding the coverage of gases included. Details of this information are out of our scope, thus we assume data considers all GHGs in the proper equivalency needed to account for tons of CO2eq. Moreover, Scopes 1 and 2 are presented in aggregate manner because data availability limits breaking it down.
** In the case of sovereign bonds, the assumption is that 100% of the emissions pertain to Scope 3 of the country of origin. That is, it comes from economic activities in the country. This implies the existence of implicit double accounting, because those emissions associated with the country’s economic activity may include emissions from the companies already accounted for in the rest of the asset classes.
Climate Metrics for the Investment Portfolio
Regarding our previous annual report, alternative instruments, securitizations, derivative instruments, and positions equivalent to cash were integrated into the measurement of the portfolio carbon footprint to cover 100% of assets under management. The primary differences observed in the volume of financed emissions stem from this change and from the broadening of information sources.
The calculation of our financed emissions uses as a reference, but does not strictly follow, the methodologies of the PCAF (Partnership for Carbon Accounting Financials). It also uses financial and GHG emission data reported by information providers or annual reports for companies or managers. Approximations are produced by using intensity factors, provided there is no emissions data available. The attachment for this chapter contains further details on our calculation methodology.
