By KELIN DILLON
A report by Bank of America (BoA) has revealed that environmental accidents committed by Mexico’s state-owned oil company Petróleos Mexicanos (Pemex) have only increased under the administration of current President Andrés Manuel López Obrador (AMLO).
“Areas of concern include 16 major refinery accidents since AMLO took office,” read the U.S. bank’s report, also highlighting the disastrous ocean fireball that occurred via a ruptured Pemex pipeline on July 2.
BoA likewise noted that Pemex’s release of sulfur dioxide into the atmosphere increased 25 percent from 2019 to 2021, and that the company’s higher use of fuel oil and delay in adopting more environmentally friendly procedures until 2024 have contributed to its ecological problems.
“The lack of a major focus on environmental, social and governance sustainability criteria (ESG) and climate change is a growing concern for investors in Pemex bonds,” said the bank.
According to the report, Pemex has one of the highest gas flaring rates in the industry, and sent 50 percent more gas into the environment in the first quarter of 2021 than it did in the same timeframe the year previous.
“Going forward, Pemex will have more difficulties in obtaining financing on competitive terms due to the growing number of global investors who adopt environmental sustainability criteria in their investment decisions,” concluded Bank of America.