Creating sustainable value
FEMSA defines sustainability as the ability to generate the social, environmental and economic conditions needed to operate today and grow over time in harmony with the environment and society. We base our actions on an underlying commitment to ethics and values, and we organize our sustainability approach along three pillars: Our People, Our Planet and Our Community.
Since 2005 we have been signatories of the United Nations Global Compact, through which we pledge to follow and promote its 10 principles relating to human rights, labor practices, the environment and anti-corruption. We also support the United Nations Sustainable Development Goals (SDGs), which were launched in 2015 and represent an ambitious plan to make our world more inclusive, prosperous, sustainable, and resilient. The SDGs call for countries to improve the lives of people everywhere by mobilizing efforts to improve the most critical issues in the world by 2030, including poverty, inequality and climate change. The eleven countries in which FEMSA operates have accepted the SDGs and will be using them to define their 2030 agendas. But to fully make a global impact, businesses and civil society must also take action. In 2017, FEMSA began an analysis to gain a better understanding of what the SDGs mean for our core business and how we can best contribute to them. In 2018, we will also be considering how the SDGs can help guide our own corporate sustainability goals.
Our approach to materiality
FEMSA’s Strategic Sustainability Framework is based on the priorities and issues that are most important to our business and the stakeholders with whom we engage. Our key stakeholder groups include employees, consumers, suppliers, shareholders, government entities, community members and NGOs. Additional stakeholder groups include industry experts, peer companies and the media.
We first conducted a company-wide materiality analysis in 2012, which included an analysis of our business strategy, emerging risks, industry trends and best practices, and direct engagement with FEMSA business-unit executives and other external stakeholder representatives. We identified 19 focus topics, which correspond to nine action areas across our three pillars. We engage our stakeholders on an ongoing basis throughout the year to confirm and update our material issues assessment. Because each of our business units is distinct, we have now begun the process of conducting materiality analyses by business unit, beginning with Coca-Cola FEMSA, OXXO, Solistica, Imbera and PTM.
in which we generate a greater positive impact
|Culture and values||Culture and values|
|Training and development||Workplace health and safety|
|Training and development|
|Comprehensive development||Comprehensive development|
|Environmental impact of transportation and logistics|
|Waste and recycling||Packaging and recycling|
|Healthy lifestyles||Nutrition and physical activity|
|Community development||Responsible marketing and communications|
|Offering sustainable products/services|
|Local environmental impact|
|Safety in the surroundings|
|Social well-being in communities|
|Sustainable sourcing||Supplier development|
|Environmental impact of suppliers|
|Labor rights and working conditions of suppliers|
48% are women.
hours of ongoing training.
At FEMSA, we are committed to growing as a high-performance organization where talent, culture and leadership are the key levers for the development of our people and the fulfillment of our strategic objectives. Accordingly, we seek to promote the professional development of our employees and to provide them with the training and resources they need to do their jobs safely and successfully.
We focus on three areas of action that make up the Our People pillar: Culture and Values, Training and Development and Comprehensive Development.
Culture and Values
We promote a culture of leadership characterized by respect and by setting a positive example.
Our corporate culture—and our capacity to create economic and social value—is guided by our values:
All employees are expected to uphold and demonstrate these values within our culture of legality and leadership. We respect and uphold the laws and societal standards of every country in which we do business, and we have zero tolerance for corruption. Our FEMSA Leadership Model—a set of nine key competencies—ensures that all employees have the necessary skills to contribute to our business strategy.
Training, Development and Safety
We are focused on developing the capabilities of our employees in a safe and fulfilling environment, so they can respond to challenges and achieve their highest potential as individuals and professionals.
We offer online and in-person courses and other tools to develop leadership skills and technical knowledge for our employees. In 2017, we formalized our processes for competency reviews, leadership style assessments and performance measurement tools.
The wellbeing of our employees, particularly while at work, is of utmost importance to FEMSA. We uphold strict standards related to occupational health, hygiene, and safety, and all our business units operate according to the guidelines and requirements of our internal occupational health and safety standards.
Indexes are based on the number of incidents per 100 employees, calculated on the number of FEMSA direct employees reported to Occupational Health and Safety Administration System. Includes information on all countries.
We promote wellness and a high quality of life for our employees, their families and the communities in which they live and work.
One of the barometers of our progress toward advancing the comprehensive development of our workforce is through our employee engagement survey. This employee engagement survey is annually open to 50 percent of our employees (covering 100 percent of our employees every two years). In 2017, 102,300 employees responded to the survey, an approximately 89.8 percent participation rate among eligible participants. We collect feedback on our organizational climate, as it relates to satisfaction levels and potential areas of concern. This information supports workplace improvements and serves as an input to our quality-of-life programs.
We invest Ps. 658.7 million,
(US$ 33.4 million):
A key aspect of our sustainability strategy and risk management approach includes identifying the major environmental impacts of our operations across our value chain. We are taking steps to improve our processes through the more efficient use of resources. We focus our actions around three key priority areas for our company and our stakeholders, including:
Because water quality and availability are crucial to the beverage business, we focus on reducing consumption, improving resource management and conserving the watershed.
Since 2010, the amount of water used by Coca-Cola FEMSA to produce its beverages has steadily fallen.
We also work to optimize the amount of fuels used in our operations. For example, we have reduced fuel consumption per kilometer traveled at our Solistica operations by implementing efficient route planning and integrating new technologies. From 2011-2016, these improvements avoided 729,370 tons of CO2 emissions from being released into the atmosphere. In 2017 our fuel efficiency consumption in Mexico was 0.51 kilometer traveled per liter.
Liters of water consumed per liters of beverage produced by Coca-Cola FEMSA
Percentage of water consumption by source
Energy is an important input to our business operations, which is why year after year, we incorporate new processes and tools to optimize its use, further diversify our energy portfolio and reduce our climate impact.
Total intensive emissions Scope 1 (stationary) + Scope 2
Tons of equivalent CO2e / Total Revenues in Ps. million
1 Includes the stationary consumption of non-renewable sources.
2 Includes the fuel consumption of own units, Coca-Cola FEMSA consumption is estimated.
3 Includes fuel consumption of renewable and non-renewable sources.
This year we also moved closer to reaching our goal, participating in the following projects:
We are taking steps to minimize the waste generated by our operations, including proper management of industrial waste. All our bottling plants operate with a waste-reduction program, and our goal is to recycle 90 percent of the waste associated with each of them by 2020.
We comply with all regulations related to maintaining the proper infrastructure to collect hazardous waste and dispose of it through authorized service providers.
(Tons) In 2017, 34.4 percent of our total materials consumed were recycled.
This information excludes Solistica and Imbera’s materials.
Redondeo Clientes OXXO
Due to the complexity and size of FEMSA’s multinational organization, our operations reach a diverse group of people and communities. Developing and maintaining positive, mutually valuable relationships with the communities in which we operate is fundamental to our business strategy and our sustainability goals. This begins with understanding the positive and negative impacts our businesses have in our communities, and then assessing how our business strategy can address the needs of these communities to further promote their sustainability and our own.
We contribute to the economic, social and environmental wellbeing of the communities neighboring our operations.
We encourage employees to give back to their communities, and we help organize and facilitate unique opportunities to do so. During 2017, more than 51,063 employee volunteers participated in 1,852 acts of service, totaling more than 367,796 donated hours.
We use this tool to help build trust and collaboration with our local stakeholders, identify risks and opportunities for value creation and better optimize our actions and programs. MARRCO supports the development of capabilities through multi-disciplinary teams in our plants and distribution centers.
As part of the first phase of this model’s implementation in 2016, we set up teams in 23 work centers at Coca-Cola FEMSA, Solistica, Imbera, and PTM in seven countries: Argentina, Brazil, Colombia, Mexico, Nicaragua, Panama and Costa Rica. In 2017, we implemented MARRCO in 18 additional work centers and continued to integrate it into our processes, systems and work culture. This has included expanded training in the methodology and the ability for more parts of our organization to undertake their own risk assessments and define Community Engagement Plans.
We contribute to the improvement of the labor, social and environmental performance of our suppliers.
Our suppliers are essential to the sustainability of our business, and we are committed to helping them improve their labor, social and environmental performance by providing training and other resources to continually improve processes. In total, we have a network of more than 53,992 suppliers of goods and services for our business and operations, which channeled a total of Ps. 171.8 billion (US$ 8.7 billion) to the productive sectors of other industries.
To ensure that the companies and individuals who supply our company with products and services operate with integrity, we advise our suppliers to adhere to our Supplier Guiding Principles, which describe our expectations related to labor rights, the environment, community, ethics and values. We modeled these principles on widely accepted international standards, including the OECD Guidelines for Multinational Enterprises and the United Nations Global Compact. In 2017, we continued to work on ensuring our suppliers are informed about and abide by these principles.
We are also committed to supporting suppliers who are local to the country in which we are making the purchase. In 2017, our percentage of spend in local suppliers was 86.8 percent.
The OXXO Customer Round-Up Program (Redondeo Clientes OXXO), begun in the year 2002, serves as a link between customers and local institutions, creating a circle of mutual support between them. Currently, the program operates in every state of Mexico through OXXO and other FEMSA Retail banners. Through the participation of our employees, who invite customers to participate in donating and rounding up their total, in 2017, Ps. 93.9 million (US$ 1.8 million) were raised, benefiting 256 institutions.