As Deadly Accidents Piled Up, Bond Investors Got Tough on Pemex

  • Neuberger Berman, JPMorgan and HSBC demanded changes
  • Mexican oil-driller responded with first sustainability plan
Jennifer GorgollPhotographer: Alyssa Pointer/Bloomberg  
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Jennifer Gorgoll was feeling the heat. A bond investor at Neuberger Berman Group LLC, Gorgoll had staked out a big position in debt issued by Mexico’s state-oil company, Petroleos Mexicanos, and executives at Neuberger were getting nervous.

Pemex’s ESG record had deteriorated so much — fatal accidents and toxic spillsBloomberg Terminal were piling up and methane emissions were soaring — that it was getting hard for the firm to justify owning the bonds when pressed by clients.