Baja California go green or get left behind. How socially responsible companies are redefining the border

The business conversation in Baja California is no longer just about costs and logistics—it’s about earning the social license to operate in the most integrated binational region of the continent. In 2024, Mexico closed the year with 2,320 companies holding the ESR® Distinction, a figure that remained nearly flat compared to 2023, confirming that social responsibility has stopped being a trend and has become a competitiveness requirement. At the local level, at least eight large corporations with operations in Baja California appeared on the 2024 CEMEFI list. Though still a modest figure compared to Mexico City or Nuevo León, it is enough to set standards in cross-border supply chains.

The economic context explains why this matters. In 2024, Baja California’s state activity index (ITAEE) grew 2.9% annually in the second quarter, with manufacturing contributing more than a third of the state’s GDP. Exports to the United States reached nearly $54.8 billion, highlighting the depth of the Cali-Baja connection. In this framework, the maquiladora industry in the coastal zone—Tijuana, Tecate, Rosarito, and Ensenada—hosts around 1,700 plants and more than 400,000 direct jobs. That means any ESR standard has a multiplying effect on labor and environmental practices throughout the region.

The models that have proven most effective combine three vectors:

• First, decarbonization through real investment. In 2024, Sempra Infrastructure announced Cimarrón, the third phase of the Energía Sierra Juárez wind complex, with 319–320 MW in Tecate and a 20-year contract with Silicon Valley Power. Its launch, expected by late 2025, symbolizes a border that now exports clean energy along with manufactured goods.

• Second, cross-border public health as an ESR metric. Universities in the U.S. and Mexico have expanded research on the impact of air and water sanitation. In 2024, San Diego State University secured funding to study the effects of pollution from the Tijuana River, and findings in 2025 reinforced the urgency of binational solutions. Companies can no longer claim this is a “government issue”—it is now a material business risk.

• Third, academic-business governance. Institutions like CETYS and UABC have institutionalized sustainability as a pillar of training and outreach, aligning with the UN Sustainable Development Goals and implementing recycling and circular economy programs in campuses and anchor companies alike.

What do the 2024 numbers tell us about real progress? Nationwide, the ESR universe remained virtually flat (-0.04% compared to 2023). But in Baja California, the quality of investment is rising: a renewable energy pipeline of over 300 MW in Tecate, formal labor standards in export-oriented plants, and the consolidation of clusters—automotive, medical devices, and aerospace—that now incorporate water and energy goals into their dashboards. Meanwhile, Tijuana EDC reported that the state ranked among the top three recipients of foreign direct investment in 2024, with 62.9% flowing to the automotive sector. U.S. buyers are already pressing suppliers for Scope 3 emissions traceability, sending a clear signal: ESR is now aligned with sustainable finance taxonomies and with customer requirements in California.

Still, contradictions remain that a mature ESR ecosystem must face. The drop in manufacturing jobs at the end of 2024 exposed the vulnerability of less productive plants. The persistence of cross-border pollution episodes demonstrates that minimal compliance is not enough to protect reputations in an era of scientific evidence and digital transparency. The smartest corporate response has been to evolve from “social programs” to integrated ESG risk management: energy efficiency and renewable contracts; labor and safety certifications; partnerships with academia to validate indicators; and reports designed to meet expectations from both California regulators and USMCA frameworks.

Looking ahead to 2025, the challenge is moving from success stories to critical mass.

Three priorities stand out:

·      First, closing environmental infrastructure gaps with blended financing: if the region can raise $550 million for a wind farm, it can also mobilize similar vehicles for wastewater treatment and reuse, with anchor companies as environmental service buyers.

·      Second, regulatory convergence: aligning ESR reporting with California’s climate disclosure requirements to lower compliance costs and preserve access to markets. Here, the Cali-Baja working groups led by UC San Diego and Baja California’s Secretariat of Economy can accelerate shared standards.

·      Third, productivity with a just transition: digitalizing and automating SMEs, and scaling dual education and upskilling programs with CETYS and UABC so that quality jobs are not the exception but the rule, strengthening local supply chains instead of importing all added value.

Baja California has the talent, industrial base, and proximity to the largest green market in the world. If today’s socially responsible companies become the standard for entire supply chains, the region won’t just mitigate risks—it will leadbinational nearshoring competitiveness with a verifiable sustainability seal. The alternative—business as usual—no longer exists in a border region audited by citizens, universities, and buyers on both sides.

Written by: Editorial

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