ESG Global Vision

Corporate Governance for all Companies

In force

Mandatory for  publicly traded companies and optional for close companies

Created by the Business Coordinating Council to help companies to establish their corporate governance, in order to promote institutionalization, generate value and confidence for shareholders and stakeholders.

This also aims to determine the responsibilities and functions of each of the main and intermediate bodies and officers of the companies. The Code has taken into consideration the guidelines and principles published by the OECD in this matter.

Corporate Governance for all Companies

In force

Companies that carry out activities deemed as vulnerable or risky pursuant to the law

Created to protect the financial system and the national economy, this Law establishes measures and procedures to prevent and detect acts or operations that involve resources of illicit origin.

The law classifies certain activities as risky depending mainly on the amount and nature of the transaction. Once certain thresholds are reached, companies are required to identify their customers (KYC), collect certain information and, if necessary, file notices to the competent authorities with certain information on the executed transaction.

In addition, the law forbids the execution of certain transactions mainly when they are paid using unbanked money.

Policy

In force

Private companies and employees.

Establishes safety conditions required to protect the physical integrity and health of employees with disabilities in the workplace, as well as for their access to the workplace.

Environmental law

In force

All individuals and entities

This is the foremost environmental law in Mexico that assigns powers on a federal, state and municipal level, as well as mandates basic obligations and regulation in terms of air, water and soil quality.

Environmental Decree

in force

Public and private entities and individuals

This Decree creates reforms that allow the private sector to participate in oil and gas extraction and exploration activities through the execution of contracts with the State. This also creates reforms that allow the private sector to participate in the generation, supply and marketing of electric power. Before the Decree these activities were exclusively the preserve of the State.

Environmental Law

In force

All individuals and entities

This is the foremost waste-related law in Mexico that sets out powers for federal and local authorities, as well as the general framework for management of solid urban, special management and hazardous wastes.

Environmental Law

In force

All individuals and entities

This Law sets out the environmental liability framework applicable to all individuals and entities in Mexico that have caused or may have caused environmental damage; including the relevant sanctions and claim procedures.

Legislation

In force

Public and private entities and individuals

This Law regulates the generation, transmission, distribution, marketing and supply of electrical power.

It also regulates the operation of the National Electric System and Wholesale Electric Market, both carried by the National Energy Control Centre. Moreover, it provides for the permits that must be obtained for the generation and supply of electrical power.

In the last two years, bills have been submitted before the Chamber of Deputies and Senators to reform the law to restrict the participation of the private sector in the electricity industry activities. However, to date none of these bills have passed.

Legislation

In force

Public and private entities and individuals

Electricity Industry Law on the generation, transmission, distribution, marketing and supply of electric power and operation of the National Electric System and Wholesale Electric Market.

Antitrust Competition Law

In force

Private and Public entities

Cartels in Mexico are governed by the 2014 Competition Act, formally known as the Federal Economic Competition Law. The Competition Act details the constitutional provision set out in the Federal Constitution at §28, which provides a general ban on monopolies and monopolistic practices and serves as the basis for the national competition policy. The Mexican Constitution provides only for federal legislation (2014 Competition Act) and therefore, there are no state competition statutes. Likewise, the Mexican Constitution §28 created the Federal Competition Commission (“Cofece”) and the Federal Telecommunications Institute (“IFT”). No other government body can apply the 2014 Competition Act.

Bribery and Corruption Law

In force

Private and Public entities

In July 2017 the National Anticorruption System (“NAS”) came into force in Mexico. The NAS is comprised of federal and local authorities and a citizenship committee and is intended to prevent, fight against and punish corrupt practices carried out by private parties (companies and individuals) or public officials. Specific federal and local laws—which are constantly updated are intended to punish conducts related to corruption and bribery.

Law

In force

All entities and individuals, either public or private

This statute establishes the requirements for positioning a product as “organic”, “natural”, etc., promoting the product´s safety and truthful information in order to not mislead the consumers.

It also sets out the process to be followed for the manufacture, handling and processing of organic products in order ensure that the same comply with the requirements for being considered as organic. 

Law

In force

Genetically modified products.

This statute establishes the protection of consumers´ right to obtain truthful information on the labelling of products that contain genetically modified organisms/ingredients. The statute promotes companies’ social responsibility and well-being of society and the environment while lessening negative impacts on them.

Law

In force

All entities and individuals, either public or private.

This statute establishes the rules for the marketing, offering and advertising of practically all products and services marketed/provided in Mexican territory in order to protect consumers’ rights and avoid any violation related to commercial information, consumer safety (including recall processes and the honouring of warranties), and false advertising.

It promotes sustainable relationships between consumers and providers, as well as companies’ social responsibility to provide truthful information.

Law

In force

All entities and individuals, either public or private.

This statute establishes the requirements to issue products to specific technical standards as well as sets the rules for the surveillance and enforcement of different provisions that may impact on consumers’ rights.

The law is aimed at promoting economic development and social responsibility under a fair basis and environmentally sustainably.

Law

In force

All entities and individuals, either public or private.

This statute establishes the rules and requirements for products containing modified organisms/ingredients, health products and services  subject to sanitary control (e.g., drugs, medical devices, alcoholic beverages, cosmetics, dietary supplements, etc.). It is intended to force companies to offer safe and compliant products supporting business integrity and the promotion of a compliance culture.

This statute protects consumers’ right to obtain truthful information on the labelling and advertising of the above products.

Technical Standard

In force

All entities and individuals, either public or private.

This statute establishes the rules and standards for complying with the relevant labelling requirements for pre-packaged food and non-alcoholic beverages. The statute is aimed at forcing corporations to provide truthful and complete information to consumers in connection with the products’ specifications, nutrients, ingredients, characteristics, as well as their environmental and sustainability claims.

Public Policy

In force

All companies

This law provides that agencies and entities must encourage the purchase of furniture and office supplies through bidders that are compelled to guarantee the sustainable origin and management of federal resources and that are registered with the Secretaría de Medio Ambiente y Recursos Naturales (Ministry of the Environment and Natural Resources).

In this way, the Mexican government seeks to promote the growth of new production models and encourage sustainable development; likewise, to generate invitations or direct allocations to marginalized urban groups, or to award points for the allocation of bids to companies that have 5% of employees with disabilities, etc. By doing so, the relevant agencies and entities (as part of the public procurement procedures) are compelled to include the applicable requirements or certificates that service providers or suppliers must meet in order for their proposals to be assessed and awarded, if applicable.