Corporate Responsibility
Our commitment to operate in a manner that minimizes our impact drives us to ensure we deliver a positive contribution to the environment, our communities, and the world at large.
We are aligned with the United Nations’ Sustainable Development Goals which recognize “that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.”
Human rights
In accordance with the UN Guiding Principles on Business and Human Rights, companies should respect Human Rights and seek to prevent or mitigate potential Human Rights issues that may be caused directly by a company’s projects or operations, or by project partners and suppliers. According to IFC Performance Standard 1, “each of the IFC Performance Standards has elements related to human rights dimensions that a project may face in the course of its operations. Due diligence against these Performance Standards enables companies to address many relevant human rights issues in its project.” The UN Guiding Principles, the IFC Performance Standards and various International Labor Organization (ILO) standards are the benchmark for guiding companies in ensuring respect for Human Rights.
Mexico Pacific commits to respect human rights in all our activities and to respect national laws and internationally recognized human rights standards including the Universal Declaration of Human Rights, the principles set forth in the fundamental conventions of the International Labor Organization, and the United Nations Guiding Principles on Business and Human Rights (UNGP).
Mexico Pacific conducted a voluntary Human Rights study that compliments Mexican regulatory E&S risk and impact identification and permitting process. The objectives of the HRIA were as follows:
- Assess the current context in order to identify actual or potential Human Rights risks and impacts relevant to the Project, both internally and in the wider local community of operations.
- Based on the needs identified, implement tailored internal mitigation strategies to allow for fit-for-purpose corrective actions to manage identified potential Human Rights risks through this early phase of the Project.
Ensure and encourage communication takes place with stakeholders about how issues will be addressed as the Project progresses and through all stages; and
Ensure an internal and external grievance mechanism is in place to allow the Project’s employees as well as individuals from the local community to provide feedback, share concerns, and when applicable seek recourse and remedy.
Supporting the Global Energy Transition and Providing Energy Security
LNG plays a pivotal role in the global energy transition and energy security. Coal to gas switching is a key driver for Asia to achieve its climate goals. Natural gas emits up to 55% lower greenhouse gas emissions than coal, and when used in the generation of electricity is far less damaging to the environment. With little indigenous and depleting domestic gas reserves, Asia’s natural gas demand growth will be met by LNG.
Saguaro Energía is doing its part by bringing a new source of LNG supply to Asian market.
Climate
We also recognize the importance of identifying, assessing and managing climate-related risks and opportunities. Asset-level climate risk assessments provide a practical way to understand climate-related risks and common issues across the organization. At Mexico Pacific, we have worked with a leading sustainability consultant to review the impact of climate issues on our assets during construction and operations.
Climate-related risks (physical and transition risks) were assessed using scenario-based analysis. We have also completed an exhaustive Climate Change Risk Assessment (CCRA) exercise based on applicable guidelines including the Equator Principles (EP) and the Task Force on Climate-Related Financial Disclosure (TCFD).
Climate CCRA addressed the current and anticipated physical and transitional risks of the Project operations.
The assessment aligns with Task Force on Climate-Related Disclosures (TCFD) guidance in the following ways:
- Includes multiple future climate scenarios: SSP1 RCP2.6, a lower carbon scenario, and SSP5RCP8.5, a higher carbon scenario, utilizing four models used for climate change projections*;
Employs three-time horizons, short- (present day - 2027), medium- (2027-2040), and long-term (2040-2060), which align with key Project phases;
- Considers acute and chronic physical climate risks;
Considers likelihood, severity, and risk of the given hazard, pre- and post-mitigation
Eleven climate hazards were evaluated, with heat maps provided, to determine the likelihood, severity, and risk of the given hazardous climate event (pre- and post-mitigation). No physical risks were evaluated as significant or greater for the Project’s operations.
*INECC, 2022
Protecting our Environment Brings us Closer to a More Sustainable Future
We are making conscious design, equipment and technology choices that will minimize our impact on the environment even if they require additional investment.
We seek to minimize our footprint and to perform activities in a manner homogeneous with the surrounding environment. We are firmly committed to the conservation and sustainable use of resources and identify and assess all potential impacts of operations on the environment, mitigating to minimize any adverse effects. Our pipeline is a prime example of our aspiration to produce and supply energy in an environmentally and socially responsible and sustainable manner. Through conscious design and additional capital commitments, our pipeline will be the first in Mexico to avoid environmentally sensitive areas, indigenous areas and population centers.
Our site selection and design has provided inherent environmental benefits through a facility layout that minimizes land usage and premiere topography requiring minimal site preparation.
Our natural deep water port avoids the need for dredging and our selected shipping routes avoid protected areas.
We have conducted extensive baseline studies in support of our permitting efforts that include terrestrial flora and fauna surveys, marine baseline studies, critical habitat assessment, ecosystem services and cumulative impact assessments.