Petróleos Mexicanos (Pemex), Mexico’s state-owned oil company, is facing growing criticism for its significant role in hydrocarbon-related environmental damage and its apparent lack of sufficient response. With mounting pressure from environmental advocates, regulatory bodies, and the insurance sector, Pemex finds itself increasingly isolated in a world shifting towards sustainable energy practices.

Between 2008 and 2024, Mexico documented 1,146 hydrocarbon contamination incidents impacting over 17mn cubic metres of soil. Of these, 79%—equivalent to 13.6mn cubic metres—were attributed to Pemex alone, according to official figures from the Secretariat of Environment and Natural Resources (Semarnat), as reported by El Economista. The same report points out that 259 cases, or 22.6% of the total, still lack an approved environmental remediation plan, suggesting major gaps in the company’s environmental governance.

The distribution of these contamination events spans multiple administrations. During Felipe Calderón’s presidency (2008–2012), 620 cases were reported—the highest to date. This figure dropped to 259 under Enrique Peña Nieto (2013–2018), but rose again to 267 under former president Andrés Manuel López Obrador (2019–2024), indicating a recent uptick in incidents, as documented by El Economista.

Particularly concerning is the situation in Mexico’s coastal states. Environmental organisations have warned of severe ecological and human health risks.

Juan Manuel Orozco of Conexiones Climáticas stated in an interview with La Jornada that over 270 moderate to severe oil spills linked to Pemex occurred between December 2018 and July 2024, with 70 in Tabasco and 62 in Veracruz alone. These spills have disrupted local ecosystems and undermined economies reliant on fishing and tourism.

Orozco also criticised Pemex’s response to a recent spill involving a pipeline between the Akal-C platform and the Dos Bocas terminal. Although the event was reported to the Agency for Safety, Energy and Environment on April 26, the delay in public disclosure and lack of transparent investigation demonstrate the company’s persistent operational opacity.

Environmental remediation efforts have also come under scrutiny. According to La Jornada, Pemex’s approach to cleaning up marine spills often involves sinking contaminated residues—including dangerous heavy metals—into seabeds, resulting in bioaccumulation in fish, shellfish, and other marine species. This not only affects biodiversity but also the health and income of coastal communities.

In parallel, Pemex’s environmental liabilities are beginning to dent its financial credibility. Swiss Re, a major reinsurance provider, recently announced it would no longer support oil companies contributing significantly to global CO₂ emissions.

During the “Adaptación Climática” forum, Francisco Díaz of Swiss Re said that projects lacking adequate environmental impact assessments, including new oil platforms and pipelines, would be excluded from coverage, as reported by El Financiero. Although Pemex was not named directly, the implications are clear given its carbon-intensive operations.

Swiss Re’s decision reflects a broader shift in the insurance industry, which is increasingly prioritising sustainability. As noted by consultant René Ríos, majors like Pemex will need to adapt their business models to integrate climate risk and environmental responsibility or face shrinking access to essential insurance services.

Years of environmental damage, growing public health risks, and shrinking financial backing have exposed serious flaws in Pemex's operations. Without urgent and concrete reforms, the already cash-strapped company is heading towards deeper ecological harm, further financial instability, and a damaged reputation it may not recover from.