INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

PROJECT BACKGROUND

GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to countries’ development priorities. The organization also focuses on knowledge development and management activities which build a strong theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers; as well as building the conditions for public and private green infrastructure investments.

Mexico’s development priorities have evolved in the context of global and domestic changes, resulting in a significant push to transform the public life to achieve a greater benefit for all. This intent is ingrained in the National Development Plan 2019-2024, which serves as an umbrella for sectoral and institutional plans and a key tool for cooperation fostering inclusive development. The goal of its political, social, and economic pillars is to bring the nation toward prosperity, security, sustainability; thus, green growth and a low-carbon society are key development objectives for the country.

Over the last decade, the Global Green Growth Institute has consolidated its role as a trusted advisor to Mexico’s federal and subnational governments, actively working shoulder-to-shoulder with key counterparts to establish a strong green growth foundation in the country. In 2014, the Mexican Senate ratified the Agreement for the Establishment of GGGI, which signals Mexico’s commitment to green growth and its recognition of the shared value of this development paradigm in cooperation with GGGI. In 2021, the Country Agreement between GGGI and Mexico was signed between the Mexican Foreign Affairs Secretariat and GGGI; hence, formally recognizing GGGI as one the country’s key partnering international intergovernmental organizations.

Between 2019 and 2021, the Ministry of Finance and Public Credit of Mexico (SHCP for its acronym in Spanish) as National Designated Authority (NDA) of the Green Climate Fund (GCF), through the GCF Readiness Programme, has received funding to support activities that enhance and strengthen Mexico’s climate finance architecture to mobilize public and private, national, and international, climate financing for mitigation and adaptation projects and programs in the country.

In 2022, a Multiyear GCF Readiness Programme started its implementation to continue strengthening capacities of the Ministry of Finance of Public Credit (SHCP) -as focal point of GCF and other green funds -, candidate and accredited DAEs, and the National Banking and Securities Commission (CNBV) on sustainable finance to mobilize investments that advances Mexico’s climate and sustainable commitments.

GGGI has worked closely with the CNBV to support the efforts of Mexico’s financial regulator–the CNBV–on greening finance through the development of capacities and increase knowledge within the commission itself and with its regulated entities. The project has entailed developing knowledge products on the integration and disclosure of environmental, social and governance (ESG) standards; developing recommendations to integrate climate-related risks in financial products/services for specific vulnerable groups; and by providing capacity building and skills enhancement for CNBV staff and members of the Sustainable Finance Committee.

OBJECTIVES OF THE ASSIGNMENT

Objectives

The Sustainable Finance and Banking Consultant aims to strengthen financial intermediaries in environmental and social safeguards, including gender, as well as to identify which are best suitable to advance sustainable/green/climate finance mobilization for mitigation and adaptation programmes and projects in Mexico. Also, the Consultant aims to support GCF Readiness beneficiaries (DAEs, EEs, financial regulators).

The Sustainable Finance and Banking Consultant will be supporting the implementation and timely delivery of the activities established in the GCF Readiness and Preparatory Support Program in Mexico. S/he will directly report to the Climate Finance Coordinator in GGGI Mexico’s office and International Financial and Banking Institutions Coordinator at CNBV

The Consultant should be embedded in GCF Readiness beneficiary office (CNBV) to advance work with financial intermediaries and other key market actors that will serve implementing strategic frameworks (National Finance Strategy, ESG regulation) and mobilizing resources (Executing Entities). This is a full-time consultancy working at CNBV,

Scope of Work

The consultant will carry out at least the following activities:

1. Follow up on the regulatory proposals developed by national and international entities in the field of Sustainable Development in order to determine their viability and adaptation to the National Financial System.
2. Compile, investigate and compare standards on sustainable financial disclosure through the study of information issued by International Financial Organizations and Regulators.
3. Prepare responses to surveys and questionnaires in Sustainable Development material published by National and International Organizations, as well as prepare discussion material as an input to the analysis of regulation.
4. Participate in the CINIF (Mexican Council of Information Accounting Norms= Sustainability Advisory Technical Committee.
5. Analyze and prepare opinions on the documentation issued by the CINIF Sustainability Advisory Technical Committee.
6. Deliver capacity building activities and support workshops and webinars that allow knowledge exchange among counterparts, as well as regulated entities. Participate in forums to timely identify relevant aspects that could contribute to the development of the Regulatory Framework of the Mexican Financial System.

Main topics to be supported:

1. Identify ES regulatory and supervisory international best practices
2. Development of material for effective consultation and socialization
3. Development of consultation roundtables with regulated entities (financial intermediaries, investment funds/stock exchanges/issuers/banking sector) on ESG regulation
4. Research and analysis the ESG context in which regulated entities integrate and disclose ESG information
5. Development of ES training on sustainable finance/ESG/ for regulated entities, including stockbrokers, banking and popular sector entities which serve as financial intermediaries, investment funds among other market actors
6. Other activities related to the sustainable finance and banking agenda

DELIVERABLES AND PAYMENT SCHEDULE

Outputs/Deliverables

The expected outputs are the following:

(1) One Working Plan. A complete workplan based and a detailed methodological approach must be prepared by the consultant.

(5) Deliverables:

• 1 Terms of reference agreed among different CNBV stakeholders to hire consultancy firm to develop CNBV ESG platform;
• 1 ESG matrix on Excel with ESG ratings for Mexican issuers and investment funds and information on ESG assets in Mexican market
• 2 training reports which includes agenda, power point, pre and post survey, participation list disaggregated by gender;
• ES materials, including design/structure and table con contents, to be included in ESG platform/tool to be developed
• 1 technical report with recommendation on the ES documentation issued by the CINIF Sustainability Advisory Technical Committee, as well as the ISSB- IFRS, on its applicability for the Mexican financial system
• 1 report with recommendations including actors insights on ESG regulation. The report should include methodology used to retrieve information (ie. Roundtable), as well as information on those that participated (agenda, participant list disaggregated by gender, power point material, survey)
• 1 public consultation/socialization report among Financial Intermediaries and other actors (questionnaire developed and processed) on ESG issued regulation
• Other deliverables to be requested by CNBV

(1) Final Report. A brief word document written in English no longer than 10 pages and a PowerPoint Slide deck no longer than 5 slides summarizing the main outcomes delivered during a year work at CNBV, including describing the deliverables listed below among other activities delivered.

Deliverables, timeline, and payments

Reporting Arrangements

The development of the consultant will be monitored and coordinated mainly through meetings related to periodic review and planning. The schedule will be defined in coordination with the National Banking and Securities Commission and Mexico’s Climate Finance Coordinator at GGGI. These review meetings will address topics such as the strategic direction of activities, coordination of actors, and the definition of inter-agency conciliation tables, as well as reporting on progress about the objective of the consultancy and deliverables. This is a full-time consultancy; consultant will be working directly at CNBV’s offices.

All reports or results must be written in Spanish/English (when required), in accordance with GGGI’s formatting requirements, and submitted with proof of editable file back-up (e.g. .docx, .pptx) in an external hard-disk and GGGI SharePoint system. Where relevant, the consultant shall also provide sets of raw data, research materials, and meeting notes related to the contractual objective.

Suggested methodology and competence requirements

The consultant should follow the specific methods provided by the Contract Supervisors and ensure full confidentiality of the work delivered. The consultant will make the best use of both primary and secondary sources of information for the development of activities defined under the contract objective. The consultant will always provide the information to CNBV and Climate Finance Coordinator at GGGI for review and approval, prior to taking final action.

The consultant should demonstrate the credentials described below.

EXPERTISE REQUIRED

• Bachelor’s Degree in Economics, Policy, Finance, or another relevant discipline. I would be desirable if s/he holds a Master’s degree in any of these topics or in Environmental Economics or Sustainability.
• 5 years of relevant experience in the financial sector.
• Experience on ESG information integration and disclosure is required.
• Excellent writing and report preparation skills.
• Excellent skills in data analysis and critical thinking.
• Strong skills in assertive communication in English and Spanish.
• Analytical, problem-solving, and strategic skills.
• Demonstrated ability to build collaborative working relationships with government counterparts.
• Demonstrated capacity to facilitate in-depth, outcome-oriented, stakeholder dialogues.
• Maturity and professional ability to handle sensitive information and ability to respect the confidentiality of such information while working with GGGI even after the contract ends.
• Ability to lead and work effectively with people from diverse cultural and professional backgrounds.