Political and social risk consulting in Mexico
Riskop’s political and social risk consulting uses household surveys and field interviews to measure whether neighbors, authorities and other local stakeholders accept a plant or project in Mexico, and which government decisions could stall it. It ends in a risk agenda with actions, owners and review dates.
Reviewed by: Christian Ehrlich, Partner, Co-CEO and Director of Intelligence. Updated .
The decisions that usually prompt the study
- Before you invest, or when you are choosing between candidate sites
- Before expanding a plant or changing its use
- When relations with neighbors or local authorities start to strain
- To track, year over year and with the same design, how your neighbors see you
- Sectors
- Beverages
- Industry and manufacturing
- Agribusiness
- Education and urban development
Studies before you invest in, expand or repurpose a plant
Operating environment risk assessment and social license
Measures the company’s reputation and its social, political and security risks around a site, using household surveys, interviews with authorities, academics, business chambers and civil society, site visits and open sources.
Deliverables
- Operating environment risk report with an executive summary
- Qualitative and quantitative annexes
- Risk matrix
Social impact assessment
Assesses the social, political and economic impacts of an operation or project in its area of influence and proposes how to manage them. It can be repeated with the same design to see how the area has changed.
Deliverables
- Socioeconomic baseline
- Impact identification and assessment
- Social management plan
Stakeholder mapping
Identifies the authorities, organizations, community leaders and media that carry weight around your operation, with their stance and influence, so you know whom to talk to first and about what.
Deliverables
- Power-interest stakeholder map
- Profiles of priority stakeholders
Water and climate risk
Compares several plants on a single standard for water stress and the social context around water, using climate projections and field validation, so you can decide where to invest first.
Deliverables
- Water stress profile by plant
- Water risk atlas
- Decision framework to prioritize investments
Situational reports and open-source intelligence
Regular reports on the environment around an operation, drawing on news and social media, public records, official data and geographic information, on a schedule agreed with your team.
Deliverables
- Daily, weekly or monthly report
- Trend analysis of the local environment
Strategic foresight and scenarios
Builds short-, medium- and long-term scenarios using quantitative techniques and workshops with government, business and civil society stakeholders.
Reputational intelligence (RIS)
News and social media listening with biweekly reports, reports on critical events, a stakeholder map and communications recommendations, delivered by Riskop analysts.
Social Impact Statement (MIS) for energy projects
Preparation of the Social Impact Statement required for energy projects in Mexico, which replaced the former EVIS: baseline, stakeholders, impacts and a social management plan.
ESG perspective and performance
Assessment and strengthening of the company’s social and environmental impact strategy against ESG frameworks, building on the social impact assessment and the water and climate risk of its operations.
From the decision to the risk agenda
Intelligence by industry
- Mining and metals
An expansion that requires sorting out impacts with nearby communities before negotiating
- Industry and manufacturing
The plant takes the blame for the whole city’s air pollution
- Food and beverage
Neighbors start blaming the plant for water shortages
- Retail and consumer goods
A store opening or a landmark project that turns political
- Strategic infrastructure and energy
A project that needs community acceptance before construction
- Public sector and urban development
Measuring how an area changes over the years with a comparable design
Frequently asked questions
What is an operating environment risk assessment?
A study that measures a company’s reputation and its social, political and security risks around a site. It combines surveys, interviews, stakeholder mapping and a risk matrix.
What is a social license to operate?
The acceptance that neighbors, authorities and other local stakeholders give an operation, which can change over time. Riskop measures it with surveys and interviews, and measures it again before a major change, such as expanding a plant or changing its use.
How long does an intelligence project take?
A full operating environment risk assessment usually takes 4 to 8 weeks, depending on the number of sites and the fieldwork. The date of each deliverable is agreed with you before we start.
Which standards and methods do you work with?
Whichever the project calls for. For social impact assessments, the IFC Performance Standards, the Equator Principles and Mexico’s SENER and SEMARNAT requirements; for operating environment risk, ISO 31000; for climate risk and ESG, CMIP6 scenarios and the TCFD, GRI and SASB frameworks; and for foresight, Shell-style scenarios and morphological analysis.
Can you measure what a plant contributes to its neighbors’ economy?
Yes. A household survey estimates family income and spending to compare households tied to the plant with the rest of the nearby communities, and the result is cross-checked against official employment and economic data. The figure is measured by a third party, not by the company itself.
Can you run the study with a local university?
Yes. Riskop has run socioeconomic impact assessments with public universities in each region, which take part in the fieldwork and the analysis under a formal agreement. It helps when authorities and neighbors will read the results, and they shouldn’t come only from the company.
Does the fieldwork expose our company?
Fieldwork is low profile: interviews and site walks don’t expose the client or the people interviewed. No information that identifies a community or a person is published.
Before you invest or expand, one call to define areas, sources and dates
You can also call us at +52 (81) 8363 0021.