Retail Sale Of Other Goods In Specialized Stores
Chief Sustainability Officer
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- #269 Global 2000 (2022)
Mercado Libre Sustainability Report
Evaluation of Mercado Libre
MercadoLibre fares poorly and sets itself at the bottom of this year’s Index review for the retail sector. It has set no targets, so it is hard to asses the company’s impact. Nevertheless, in its “Social Impact 2021” report we traced some achievements complying with SDGs. Even so, the report rather presents operations and charity achievements.
The online e-commerce company does inform on its SDGs progress, but with no achievements to back it up. It follows five frameworks and was third-party evaluated by three sustainability standards, Sustainability Accounting Standards Board, Global Reporting Intiative and Integrated Report. Finally, MercadoLibre has not yet set sustainability policies and has not adressed GHG reduction. All things considered the rating is F.
Mercado Libre Company Activity
MercadoLibre hosts the largest online commerce and payments ecosystem in Latin America. MercadoLibre (NASDAQ:MELI) has been one of the big pandemic winners, seeing its stock price skyrocket almost 300% since March 20 lows, but then also falling up to 68% afterwards. With e-commerce industry in Latin America to grow more than 1.5 within next 3 years MercadoLibre is only going to grow.
Its efforts are centered on enabling e-commerce and digital and mobile payments to consumers by delivering a suite of technology solutions across the complete value chain of commerce. MercadoLibre is present in 18 countries including: Argentina, Brazil, Mexico, Colombia, Chile, Venezuela and Peru and is amarket leaders in each of them. Delivering compelling technological and commercial solutions is the focus to address the distinctive cultural and geographic challenges of operating an online commerce and payments platform in Latin America.
Mercado Libre Sustainability Activity - As per company declarations
MercadoLibre states that over the past 22 years, through technology and innovation, it pursued the goal of democratizing commerce and financial services to transform the lives of millions of people in Latin America. The company strives every day to generate a positive and transformative impact. With this in mind, in early 2021, the first Sustainable Bond was issued, raising USD 400 million. This bond marks a milestone by allowing MercadoLibre to accelerate our sustainability agenda but also because it does so in a collaborative way, allowing investors to actively participate in this transformation process.
Together with investors, MercadoLibre develops solutions that enable it to effectively address some of the biggest economic, social, and environmental challenges of our time.
Certificate & Labels, Standards and Frameworks
- Task Force on Climate-related Financial Disclosures (TCFD)
- Greenhouse Gas Protocol
- Integrated Report (IR)
- 100% FSC certified cardboard (or in the process of certification)
Mercado Libre in the news: Press Reviews and Social Media
MercadoLibre was accused of selling treasury notes before their due date was extended by a presidential decree. Federal auditor charged Meli with fraud against the local Argentinian government.
Highlights from Mercado Libre Sustainability Report
- No negatively impactful controversies
- No targets
- Few certifications and awards
- Lack of sustainability policies
- No sustainability management team
Targets vs Progress Reported
|No target reported||No results reported|
UN SDGs Compliance Analysis
Progress made toward SDG targets
As reported by Mercado Libre
- 1200 girls benefited from “Conectadas” program
- “Redes Al Futuro” reached 1000 young people
- 95.1% suppliers are local
- Mercado Libre is today the main source of income for almost 900 thousand families in the region and facilitates trade for almost 500 thousand SMEs.
- Announced the successful issuance of a sustainability bond for USD 400 million at 2.375% maturing in 2026
- In 2021, Biomas campaigns supported initiatives in the Amazon, Atlantic Forests, and Cerrado regions in Brazil and the Gran Chaco in Argentina
- In 2021, purchases totaled USD 29,338,413 from sustainable suppliers and added 37 new sustainable suppliers to company’s database for a total of 96
- 1,293,925tn CO2e GHG emissions
- In March 2021, Mercado Libre invested $7.8 million and launched Regenera América, a program that seeks to contribute to the regeneration and conservation of the region’s emblematic natural ecosystems, 2967 hectares of land were conserved or regenerated
- 194,801 GJ total energy consumption out of which 7,061 MWh came from renewable energy generated off-site
- 100% recyclable, reusable or compostable packaging and packing
- All bags in Mexico are made of 55% recycled materials
- 89% recovered waste
- 100% cardboard recovered under circular-economy initiatives is reused as raw material
- Incorporated 550 electric vehicles
Projects carried out in 2021 with Mercado Libre’s support with $800 000 allocated:
- Giro Sustentable 2021 (Sustainability Tour 2021)
- Espectáculo de ecoparlantes 2021 (Eco-speakers show 2021)
- Brazil Eco-Fashion Week 2021
- Festival: Social Good Brazil 2021
- Festival: Mix Brazil 2021
- Publication: “Caminos a la Riqueza en Brasil: La Guía de Educación Financiera” (The wealth path. A guide to Financial Education).
- Exhibit: “Mujeres, Historia y Tecnología” (Women, History, and Technology with the Museo de la Persona (Museum of the Person)
- Osasco and Cajamar Sport Centers, in partnership with the Instituto Esporte Educação
- Vocational Training for Work Project, in partnership with Asociación Projov
- Crea Tu Futuro (Create your future) Project in collaboration with CEAP Pedreira
- Proyecto de Formación Profesional para el Trabajo con Jóvenes (Vocational Training for Work with Youth Project), in partnership with the Instituto Haciendo Historia
- Caja Municipal de Mayores de Cajamar (via Santander)
- Fondo Municipal de Ancianos de Louveira
- Fondo Municipal del Adulto Mayor de Osasco