Mexico’s state oil and natural gas giant Petróleos Mexicanos, or Pemex, is working to improve its environmental, social and governance (ESG) scorecard.

The company has hired an external consultant to devise a plan focused specifically on reducing emissions. The plan would also assess alternative sources of revenue that could include lower carbon options.

Pemex is also trying to assess the risk to income presented by the energy transition, and how low carbon energies might play a role in the long term strategy of the company.

Pemex hosted a presentation on Tuesday to outline details of the project. The long term sustainability strategy will be completed and brought before Pemex’s board before the end of 2023.

The company, if the plan is approved, would first focus on...