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sustainability report 2009 value actions creating f acy o at we g e l e ith th nsibility th s, we at w g er to po epin In ke Social Res our found mitment and ate ed from oing com inciples gins r o p r Co erit ong n our pr ent be h n n i a e e o s tm hav assum ow based is commi d extend , A S FEM and gr at th milies, an suppliers h t e e t , z a opera e recogni nd their f s—clients tion re s. W es a value employe our opera nt. For mo in our me with e involved e environ our path en th os c to th ities, and his has be economi un y, t ate comm a centur ously cre alue. than imultane social v and to s actions creating value 2009 6.3% + 127,000 improvement in our Occupational Health and Safety Index. employees in 9 countries of Latin America. 459,000 people benefited from Charting my Own Destiny in Mexico. 18 10 + 2.1 million US people benefited from our community engagement programs $15.8 million invested in employee training. 19 630,000 cubic meters of water saved by Coca-Cola FEMSA. 37,255 Gj energy saved by FEMSA Cerveza in Mexico. 13 23 1st Water and Sanitation Award for Latin America and the Caribbean. Contents 2. 4. 8. 10. 16. 22. 28. 38. 42. 51. 52. 28 Message from the Chairman of the Board and CEO Profile of our company FEMSA principles, values, and culture Core Area 1. Quality of life in the company Core Area 2. Health and wellness Core Area 3. Community engagement Core Area 4. Environmental care FEMSA Foundation Global vision About this report Global Reporting Initiative Indicators Social Responsibility Recognitions 2009 Support for the United Nations Global Compact 28 39 FEMSA Sustainability Report 2009 Who we are GRI 2.2, 2.3, 2.5 and 2.7 Business Units Structure The company is based in Monterrey, Mexico, and it is comprised by three Business Units and one support area: FEMSA is the integrated beverage company leader in Latin America, with operations in nine countries, including urban centers such as Bogotá·, Buenos Aires, Caracas, Mexico City, and São Paulo. For more information about the company, visit our website: 8 http://www.femsa.com Coca-Cola FEMSA The second largest Coca-Cola bottler in the world and the largest in Latin America, where it operates in nine countries: Argentina, Brazil, Colombia, Costa Rica, Guatemala, Mexico, Nicaragua, Panama, and Venezuela. Produces and sells about 10% of the Coca-Cola System’s total volume worldwide, 30% in Latin America and 40% in Mexico. It markets 137 brands, including Coca-Cola, Coca-Cola Light, Sprite, Fanta, Fresca, Lift, Ciel, and Jugos del Valle. STRATEGIC PROCUREMENT FEMSA Cerveza (Cervecería Cuauhtémoc Moctezuma) Operating in three of the fastest-growing markets in the world—Mexico, Brazil, and the imported beer category in the United States—FEMSA Cerveza has become unique in its market. It produces and sells 35 recognized brands of beer, among them the Mexican beers Bohemia, Carta Blanca, Dos Equis, Indio, Sol, Superior, and Tecate; and the Brazilian brands Bavaria, Gold, Kaiser, and Sol Pilsen, among others. In January 2010, with the strategic exchange of 100% of FEMSA’s beer operations for 20% of the economic interest in Heineken, one of the world leaders in the beer industry, FEMSA became the second largest investor in this company. Heineken has developed the most important premium brand in the world and has operations in 70 countries with over 200 brands. This transaction is expected to conclude during the second quarter of 2010. FEMSA Comercio Operates OXXO, the largest and fastest-growing convenience stores chain in Latin America. It has more than 7,300 stores, 10 distribution centers throughout Mexico, and 960 new stores opened in 2009. We also entered Colombia in 2009, with five stores operating as of the time this report went to press. Support area: Strategic Procurement Offers solutions for beverage companies, including packaging, refrigeration, logistics, distribution, and information technology; one competitive advantage. n Beer and OXXO (Convenience stores) n Beer, soft drinks, and OXXO (Convenience stores) n Soft drinks n Soft drinks and OXXO (Convenience stores) n Beer n Beer and soft drinks GRI 2.6, 2.8, 3.8, EC1, LA1, and LA2 FEMSA overview Venezuela Colombia Guatemala Nicaragua Costa Rica Panama Mexico Latincentro Brazil Country Argentina Mercosur Brazil Company FEMSA Cerveza FEMSA Comercio Coca-Cola FEMSA FEMSA Cerveza FEMSA ownership % 100 100 53.71 838 Sales volume 30,5002,9 — 1,2273 Income4 46,3367 53,549 36,785 27,559 38,423 46,3367 5,8947 4,457 6,849 4,234 4,752 5,8947 6 7,334 10 2 4 5 6 4 8 Distribution centers 317 10 84 6 27 28 32 33 8 Distribution routes 3,474 — 3,892 305 1,480 324 575 591 5,200 Brands 28 1 36 29 27 28 20 11 10 Clients 329,000 75 620,255 80,050 189,838 106,189 368,930 211,749 300,000 Employees6 22,592 22,937 Operating income4 Plants/ Stores 1843 4243 1363 67,426 2323 2253 10,0482 2,1497 Note: Information provided only for the most important businesses 1 The remaining 31.6% and 14.7%, are owned by The Coca-Cola Company and public ownership, respectively 2 Thousands of hectoliters 3 Millions of cases (case equivalent to 24 8-ounce bottles) 4 Expressed in millions of Mexican pesos (Ps) 5 Millions of clients/day 6 Includes external personnel 7 FEMSA Cerveza’s results include Mexico and Brazil 8 The remaining 17% is owned by Heineken 9 Includes exports At FEMSA, we consider that Social Responsibility is the foundation of our commitment with sustainable development, both for the company and the environment. We believe that in order to continue growing we must maximize the benefits that our business brings to the people, community, clients, and the environment, while minimizing the adverse impact that our operations might have. This is the basis of our actions creating value. FEMSA Sustainability Report 2009 GRI 1.1, 1.2 and 4.2 Message from the Chairman of the 2009 was a year of constant change, challenges, and difficulties, not just for Latin America, but for the entire world. And it is precisely these changes in the economic, social, cultural, and human spheres which led FEMSA to reinforce its business strategies, including those related to social responsibility. From an economic standpoint, the results surpassed our own expectations. In the year, total revenues rose 17.3%, to US $15.1 billion. Operating income grew 19.1% to US $2.1 billion. Net income rose 62.6% to US $1.2 billion. Earnings per share came to US $2.12 per ADR, 48% more than in 2008. 2 In the matter of social responsibility, there are many issues on which we have focused our efforts: combating obesity, supporting water preservation, reducing emissions and solid waste, proper management of PET, and the material of plastic bags used in our convenience stores. We were especially attentive to issues relating to the advertising of beverages with alcoholic or high caloric content, to the laws of free competition, and to fiscal matters like the new excise tax on beer, which we have collected and paid promptly and precisely to the federal government each year. With the reconfiguration of the global beer industry and resulting need to increase our scale and geographic scope to compete more effectively, and after a period of careful thought, FEMSA decided to exchange our beer business for a 20% stake in the capital stock of Heineken. We at FEMSA are convinced that the best way to practice our philosophy of corporate social responsibility is through the creation of institutions that benefit society, particularly in the field of education, as we have done with the Tecnológico de Monterrey, the Water Center for Latin America and the Caribbean, the Water Center for Central America, the FEMSA Biotechnology Center of Tecnológico de Monterrey, and others. The transaction, valued at around US $7.4 billion, reflects the considerable value FEMSA Cerveza has created over the past decade with the successful fortification of its competitive position, brand portfolio, and operating capacity. This transaction will also give our company greater potential to create long-term value, and highlights our capacity to take advantage of strategic opportunities in the industry and generate attractive returns for our company and our shareholders. In 2009 we updated our FEMSA Social Responsibility Policy, which establishes our commitments, strategies, and actions in this area. Through this policy, we formalize the integration of social responsibility into our strategic business processes and management systems, and unify our criteria under the basic premise of sustainability. The most important part of this process was the active and committed participation of our Business Units. FEMSA Sustainability Report 2009 Board and Chief Executive Officer We continue our efforts in favor of the advancement of our employees and their families, who are the springboard for our social commitment. In 2009, we welcomed 550 persons with disabilities, senior citizens, and members of other vulnerable groups into our workplace. We held 450 educational programs and more than 230 family development programs in the countries where we operate. We spent effort and resources on programs that promote the importance of adopting healthy and responsible lifestyles. Through programs like Designated Driver at Cervecería Cuauhtémoc Moctezuma and Together for your Wellness at Coca-Cola FEMSA México, we continued to promote responsible consumption of soft drinks and alcoholic beverages, and to raise awareness about our responsibility as individuals and society toward our own health. Charting my Own Destiny, our program for encouraging the development of life skills among young people, has become FEMSA’s flagship program. This year, we reached two more states in Mexico and are prepared to expand into other countries in Latin America. The success achieved by this program is proof that private-government alliances can maximize the value generated for communities. We are convinced that volunteer work is a positive force in personal improvement, in our communities, and workplace. One example of this is the decisive support of volunteers from Coca-Cola FEMSA Colombia to the Time Bank program, which continued to work with former members of guerrilla and paramilitary groups in their efforts to rejoin society and develop their own businesses. We are proud of having been the first to accept the invitation of the Colombian government, and thus to serve as an inspiration for other companies interested in joining in the work of rebuilding peace in the country. Similarly, in Mexico and Venezuela volunteer initiatives were launched to promote values and benefits of sports, and protection of the environment through beach cleanup events. In the area of environmental care, we improved processes for efficient water usage, and appropriate handling of our wastes and emissions. It is important to note the initiative to use oxodegradable bags in all of our OXXO stores in Mexico. FEMSA Foundation took major steps forward in the field of water protection. This year it granted the first Water and Sanitation Award for Latin America and the Caribbean. Created in an alliance with the Interamerican Development Bank, this award is given to outstanding authorities and operators in the field of water and sanitation, encouraging the exchange of ideas and experiences to generate sustainable solutions to the problems in the region. The award is given in three categories: water management, sanitation management, and solid waste management. We face significant challenges in 2010, but we firmly believe that integrating social responsibility into our business strategy not only has immediate benefits, but is a factor in our success in confronting the difficulties companies around the world are facing. I will conclude by saying that, for FEMSA, social responsibility is an essential part of our business, and we are proud to have a base of committed human talent. During 119 years, our social investment, communication with our stakeholders, and the conviction of behaving responsibly toward our communities and the environment have proven to be the right path to growth, and a strength amid adversity. In the search for continuous improvement, this report has been prepared based on indicators of the Global Reporting Initiative (GRI G3) organization that has granted us with a Level A in the verification process. This report also reiterates our commitment to the United Nations Global Compact, of which we have been a member since 2004. I invite you to learn more in this report about our programs and their results. José Antonio Fernández Carbajal Chairman of the Board and Chief Executive Officer 3 FEMSA Sustainability Report 2009 Company profile GRI 2.4, EC1, and EC9 Our origins FEMSA was founded as a small company in 1890, when businessmen Isaac Garza, José Calderón, José A. Muguerza, and Joseph M. Schnaider established Fábrica de Hielo y Cerveza Cuauhtémoc, S.A. in Monterrey, Mexico, with a payroll of 72 employees. Since 1891, we have been holding board meetings for our stockholders and, since 1974, we publish an annual report with detailed information about our most important financial results. The most recent reports are available at our website: 8 http://ir.femsa.com/mx/ index.cfm Since our founding, the company’s headquarters have been located in Monterrey, in the state of Nuevo León, Mexico. We have three Business Units and one support area. Economic impact today Today, FEMSA is the integrated beverage company leader in Latin America, with operations in nine countries. We have a diversified portfolio of products that includes more than 172 brands of soft drinks, beers, juices, and water. More than 127,000 employees make this possible. We are aware that improving our environment means ensuring that our operations promote the development of our stakeholders. This is why we work towards bringing economic benefits to the places where we are present, by paying our taxes fully and on time, by working with suppliers and employees from the local community, and by generating direct and indirect jobs. For every direct job in the soft drink industry, we create five indirect jobs; in the Mexican beer industry, every direct job corresponds to four indirect jobs. 4 SOME KEY FIGURES FROM 2009: + 127,000 direct jobs + 427,500 indirect jobs generated by our soft-drink operations in Latin America and beer operations in Mexico US $1.5 billion in taxes paid US $229.5 million spending on vendors US $165.9 million stockholder dividends US $980 960 US $14.6 million capital investment (CAPEX) new OXXO stores billion direct economic value generated US $14.5 billion net sales US $41.6 million income from financial investments US $78.1 million asset sales FEMSA Sustainability Report 2009 Our sustainability scheme Core area 1 Core area 2 Core area 4 Core area 3 Quality of life in the company Health and wellness At FEMSA, we know that it is possible, indeed necessary, for our actions to simultaneously create economic and social value. We are convinced that this is the only way to feasibly operate today and grow tomorrow in harmony with our communities and stakeholders. Our sustainability scheme is based on two pillars: our values, philosophy, and organizational culture, which are part of our corporate DNA; and the mitigation of short and long term risks, which allows us to identify and take actions to minimize their impact. This strategic scheme is made up of: A. An environmental management methodology that allows our operations to identify, analyze, and define programs of action on key issues and risks relating to sustainability. B. An operating focus based on our four core areas of social responsibility, which keep us focused on and aligned with the core issues of our business. Environmental care To maintain our focus and consistency, each core area of social responsibility defines specific fields of action: £ Core area 1 Quality of life in the company: integral development of our employees and their families. £ Core area 2 Health and wellness: promotes an attitude of health, self-care, responsible consumption, nutrition, and physical activity. £ Core area 3 Community engagement: encourages education and productivity, quality of life in the communities surrounding our facilities, and support in the event of natural disasters. £ Core area 4 Environmental care: mitigation of climatic change, availability of drinking water for our communities, reforestation, cleanup of bodies of water, appropriate handling and recycling of wastes, environmentally-friendly processes and packaging, optimization of energy use, and incorporation of renewable energy sources. C. Clear guidelines and processes that make it easier to work consistently and systematically. STRATEGY A Methodology to identify, analyze, and define sustainability risks Á B Operational focus based on our four core areas Á C Clear guidelines and processes to work consistently and systematically Community engagement 5 GRI 4.16, 4.17 and PR5 Stakeholders Communication channels ������� ������������ At FEMSA, we define our stakeholders as those with whom we have a relationship and/or who have expressed a legitimate interest in our activities. �������� ��������� �� ����� � �� � �� ���������������� �� �� ���������� �� ��������� ��� ��� �� �� � �� � FEMSA Sustainability Report 2009 GRI 4.14 and 4.15 GRI PR2, PR3, PR4, and PR6 Responsible marketing As a primarily consumer product-oriented company, our products carry all the information required under the various labeling standards of each country where we operate, or even more in some cases. We are aware of the responsibility that comes with the use of advertising in the media. We have therefore joined voluntary initiatives towards responsible advertising. In Mexico, we are part of the Consejo de la Comunicación (Communications Council) and a program called A Favor de lo Mejor (Toward the Best), which encourages quality content and the transmission of values through com- 6 We believe that only through an open and respectful communication, we can achieve a dialogue with the various actors around us, so for each of them, we maintain permanently open channels that allow us to listen to them and address their concerns. One example of this type of communication channel is the Organizational Climate Diagnosis and Sociometric Study (DICOYES), which we apply to our employees in all nine countries to know their concerns and suggestions. The FEMSA Whistle-Blower System is an open communication hotline involving matters of organizational ethics. On the other hand, the free OXXO Escucha hotline is open to customers, suppliers, neighbors, and the members of the general public who wish to contact the company. We also have a website called www.accionesqueresponden.com, run by Cervecería Cuauhtémoc Moctezuma, where the public can find out about social responsibility programs and contact those responsible for them. Through the various communication channels with our stakeholders, we identified a number of concerns in 2009. Outstanding among them, in the environmental sphere, matters regarding the use and care of water, atmospheric emissions, disposal and recycling of PET, and the material used in OXXO shopping bags. In the field of health, we found concerns centering on obesity and the responsible consumption of alcoholic beverages. On the matter of social concerns, the key issues were public safety, jobs, and the company’s stability during the world economic crisis. panies’ advertising campaigns. We have also adopted the Self-Regulatory Code on Children’s Food and Soft Drink Advertising (the PABI Code), which works toward responsible advertising in the area of health, consumer protection, and dietary guidance. We also comply with advertising standards in the rest of the Latin American countries where we operate. a. Country of origin b. Free customer service number & nutritional information c. Name and tax address d. Name or corporate name e. Warnings f. Net content g. Ingredients h. Production lot i. Expiration date j. Alcohol content by volume a. e. d. b. c. j. f. h. Employees and their families Community Clients and consumers Suppliers Stockholders and investors Authorities, unions, and business associations Non-profit organizations Press and media Educational institutions a. c. i. g. d. h. b. f. FEMSA Sustainability Report 2009 Whistle-Blower System E-mail/web page DICOYES* Surveys Community studies Specialized areas Dialogue sessions ¸ ¸ Only employees (BA) ¸ Only employees (V) ¸ (V) ¸ ¸ (V) ¸ (V) (V) ¸ 01-800 Line ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ Forum participation (V) ¸ (V) (V) Except unions (V) ¸ (V) (V) ¸ (V) ¸ ¸ (V) ¸ (V) ¸ (V) (V) (V) ¸ Permanent basis * Organizational Climate Diagnosis and Sociometric Study BA=Biannual V=Variable GRI 4.12, 4.13, and SO5 Inter-sector alliances We are convinced that working in partnership with non-profit organizations is an efficient way to multiply the social value we generate. In 2009, in Mexico alone, we were part of more than 200 chambers, associations, institutes, and organizations, with a special focus on those that address business, educational, community, and environmental issues. In addition to sitting on the boards of governors of some institutions, we also support their operations and projects with cash and in-kind donations, and take part in projects that benefit the industry. Through business chambers, we communicate our positions on specific points of the legislative agenda and provide specialized information on the issues, in order to enrich the process and support legislators in their work. A few examples are the Mexican Federation of Employers (COPARMEX), the National Association of Self-Service and Department Stores (ANTAD), and the National Chamber of Industrial Transformation (CANACINTRA), as well as organizations that share our business aims, both national and international. Another way we join forces with civil organizations to serve some of society’s most vital problems is through the volunteer work of our employees and their families. One example was the Coastal Cleanup in Costa Rica, with the participation of 360 volunteers. 7 FEMSA Sustainability Report 2009 FEMSA, principles, values, GRI 4.12 GRI 4.8 Throughout the various stages in the company’s history, our business philosophy has always been grounded in the mission, vision, and values established over time, but always emanating from the same basic principle: respect for human dignity stands above any economic consideration. Mission Satisfy and please the beverage consumer with excellence. Vision £ £ £ £ £ An extended version of the Cuauhtémoc Principles is available at our website: 8 http://www.femsa.com/ es/about/philosophy/ formulario-ideario.php Duplicate the value of our businesses every five years. Generate a substantial proportion of our income in foreign markets and currencies. Provide our stockholders with an attractive return on their investment. Be leaders in the markets in which we participate. Contribute to social development. Values £ £ £ £ £ Passion for service and focus on the client/consumer Innovation and creativity Quality and productivity Respect, integral development, and personnel excellence Honesty, integrity, and austerity Cuauhtémoc Principles Organizational culture is a basic pillar of operations and daily decision-making, and FEMSA’s culture has been nourished by key contributions like the Cuauhtémoc Principles, a series of principles of action drafted and promoted by Eugenio Garza Sada, renowned business leader and a major force in FEMSA’s history. 8 Corporate Governance At FEMSA, we follow the highest standards of corporate governance and are careful in the performance of our legal obligations. For this reason, we strictly enforce standards of transparency and quality in the information we publish. We work according to the guidelines of the Mexican and the New York Stock Exchanges, the Sarbanes-Oxley Act of the United States, and the Code of Best Corporate Practices established by Mexico’s Business Coordinating Council. GRI SO2, SO3, 4.6, 4.8, and 4.12 Business code of ethics Our corporate policies promote adherence to national and international laws. These policies are complemented by our Business Code of Ethics. This document has been a key building block in a corporate attitude toward conducting business in a climate of harmony, clarity, respect, and integrity, which we endeavor to extend to all of our labor, commercial, financial, and social relationships. The FEMSA Business Code of Ethics contains guidelines that define and resolve conflicts of interest that may rise Cuauhtémoc Principles I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII. Recognize the merit of others Control your temper Never mock others Be polite Be tolerant Be punctual If you are vain, conceal the fact Do not change the truth Don Eugenio Garza Sada Let others have their say Express yourself concisely Refine your vocabulary Make sure you enjoy your work Acknowledge the enormous value of the manual labor Consider the interest of the business rather than your own Analysis above inspiration or intuition Dedication to work Be modest FEMSA Sustainability Report 2009 and culture among our employees, directors, and board members. It also defines ethical obligations towards the company, its investors, clients, creditors, suppliers, competitors, and the authorities. GRI SO7, SO8, EN28, and PR9 Demonstrating our respect for the law, in 2009 there were no suits filed regarding monopolistic practices or infringement of free competition in our commercial operations. Neither were there any significant monetary sanctions or fines levied by the national or international authorities in connection with violations of laws or regulations by FEMSA or its Business Units. For more information about our Corporate Governance, the channels for shareholder communication, and the operation of our Board of Directors and Committees, please consult our web site at: 8 GRI 2.6, 4.1, 4.3, 4.4, 4.5, 4.7, 4.9, 4.10, 4.11, and LA13 http://ir.femsa.com/mx/ governance.cfm Board of directors One efficient mechanism for monitoring adherence to our policies and standards is the FEMSA Whistle-Blower System, available 24 hours a day in all the languages of the countries where we operate. In order to guarantee its objectivity, it is managed by an independent company. Each of our Business Units has internal channels of communication for distributing the Code of Ethics as well as the Corporate Policies and Whistle-Blower System; all of them are 100% accessible to our employees. Through ongoing information campaigns involving notices, posters, human resource bulletins, and others, we ensure that our employees receive a steady stream of information about business ethics. Additional efforts have also been made in this regard, like the Code of Ethics Course given by Coca-Cola FEMSA through FEMSA University, an efficient tool for online training. FEMSA’s Board of Directors has 19 members, six of them independent. Under Mexican law, board members are appointed in an Ordinary Shareholders’ meeting, which is also in charge of overseeing their performance. Their monetary compensation is determined according to the practices of companies in the industry and/or of similar size to FEMSA. At FEMSA, we are proud to have a Board made up of men and women of diverse professional experience and outstanding honorability. In compliance with the laws of the securities markets in which FEMSA participates, and in line with best corporate practices, the Board is supported in its work by three committees: Board of Directors No situations of discrimination against indigenous groups were reported in the period, nor were any reports received of breaches of privacy or losses of customer data. Á Audit Committee Corporate Practices Committee Á The Whistle-Blower System received 127 reports of internal corruption, discrimination, and harassment in 2009. All of them were addressed according to internal standards and the laws of each country. In the investigations carried out into the complaints, 33.8% of the cases had enough grounds to be considered truthful, and actions taken ranged from an admonishment, to dismissal from the company, and charges filed with the authorities. Á GRI SO4, PR8, HR4, and HR9 Finance Committee The FEMSA business code of ethics is available at our website: 8 http://www.femsa.com/ en/about/philosophy/ code _ of_ ethics.htm These committees are responsible for continually monitoring the risks and opportunities of the business. Because risk evaluation is key to the sustainability of our business, we have incorporated risk management into the planning processes and management schemes of all our Business Units. 9 core area 1 Quality of life in the company We are committed to promoting an organizational culture based on our values, which involves complete respect for human rights, encourages the integral development of our employees and their families, as well as a motivating, diverse, tolerant, and inclusive workplace environment. In 2009, our value-based organizational culture continued to gain strength across the organization, where its difussion and day-today experience were essential. Our scheme of social development, which has guided us since 1918 in encouraging the integral development of our employees and their families, continued to evolve and bear fruit through family development, educational, recreational, sports, and cultural programs. At the same time, FEMSA University doubled the number of employees that took part in its courses and expanded its online educational content, enabling employees to take responsibility for their own professional growth. 10 2009 HIGHLIGHTS + 127,000 direct jobs in Latin America 550 individuals from vulnerable US $15.8 450 230 groups integrated in the work force this year million invested in training educational programs for employees and their families family development programs FEMSA Sustainability Report 2009 In 2009, we devoted more than US $32.4 million in education, training, and family development programs for our employees and their families. 11 Quality of life in the company Family development Core Area 1 SCYF Scheme GRI LA1, LA4, and LA13 Our Social Development Scheme is based on a philosophy promoted for the past 119 years, which encourages the balanced growth of our employees and their families in seven dimensions: economic, social, work, education, values, and health. Sociedad Cuauhtémoc y Famosa (SCYF), our first Social Development Center, which opened its doors in the city of Monterrey, Mexico in 1918, has been since its foundation a fundamental element in the construction of an attitude towards human development, work, and thrift. Family Day, a tradition in Brazil since 2002, promotes family togetherness and company values through integration activities, performances, and sports competitions, among others. In 2009, the events held in 15 cities were attended by 45,000 employees and family members of FEMSA companies in that country. Inclusive work force EMPLOYEES BY GENDER AND TYPE OF CONTRACT* Employees 2008 Women Men Total employees 2009 Unionized External 2008 2009 2008 2009 16.2% 11.8% 14.0% 30.6% 46.4% 41.6% 83.8% 88.2% 86.0% 69.4% 53.6% 58.4% 100% 100% 100% 100% 100% 100% * Total employees in nine countries EMPLOYEES BY AGE GROUP* Age group 18-34 35-44 45 or more Total employees 2008 2009 67.4% 23.6% 9.0% 65.3% 25.1% 9.6% 100% 100% *Total employees in nine countries GRI LA13 FEMSA’s work force is enriched by the geographic and cultural diversity of its people. The company places such value on plurality, that our policies promote equal work opportunities for all individuals, regardless of gender, age, economic status, nationality, religion, race, disability, or any other feature. actions creating value GRI EC7 As an international company, the interchange of talent among the countries where we operate is basic to our culture, and this favors the transmission of better business practices. Our work force incorporates individuals of 15 different nationalities, but because of the value of local know-how and the promotion of local econo- Growing together “It was better than any gift; it was a lesson in life.” Brimming with enthusiasm, more than 1,300 women married to employees from 11 Coca-Cola FEMSA work centers in Brazilian cities of Belo-Horizonte, São Paulo, Manaus, Cuiabá, and Pacatuba accepted the invitation. The event: the 2009 FEMSA Women of Value conference, held in various cities of Brazil since 2007. Some participants remarked that the invitation was a very pleasant surprise, because it made them feel part of the company, of the great FEMSA family. During the event, in lectures, workshops, and integration activities, the women learned for themselves the company’s values, understood how they are applied in daily life, and created friendships with each other. By exploring the company’s philosophy and attitudes, they learned that the company is interested not just in their husbands’ work, but in the growth of their families. “It was better than any gift; it was a lesson in life,” said Karfila Elidiana da Fonseca, the wife of Gilmar F. da Fonseca, who works in the FEMSA facility in Divinópolis. Another participant, Marylandia, married to Marcelino Patrus, who works in the Universitários Distribution Center, had this to say: “the event helped raise the selfesteem of a lot of women, in a friendly, relaxed atmosphere. It clearly exceeded all our expectations.” 12 FEMSA Sustainability Report 2009 mies, our hiring policies are aimed at recruiting directors, executives, and employees from the communities where we operate. At our Coca-Cola FEMSA operations outside Mexico, an important number of directors are of local origin: in Argentina, 83%, in Brazil, 78%, in Colombia, 33%, and in Venezuela, 57%. Since its founding in 1943, FEMSA has been a supporter of the Instituto Tecnológico de Monterrey, one of Latin America’s most prestigious private universities. At present, our employees continue to improve their capabilities through the various programs offered by this institution. GRI LA10 and LA11 GRI LA13 Through our Inclusive Workplace System, which promotes the inclusion of individuals with disabilities, senior citizens, or other vulnerable groups into our company, in 2009 we welcomed more than 550 employees. Additionally, from the total number of employees that have benefited from this program since 2001, 4,300 are still part of our work force. Education and training Education is for us a driving force in human and community development. In keeping with this conviction, since our foundation we have worked to create educational spaces. One example was the creation of the Cuauhtémoc Polytechnic School in 1906, that offered elementary, high-school, and technical education to our employees. The Cuauhtémoc School Center (CECAC), built in 1957, currently provides preschool through high school education to 650 of our employees’ children in Monterrey, Mexico. actions creating value At FEMSA we are interested in the personal and professional growth of our employees, which is why we offer ongoing education and training so they can develop and perfect their skills. In 2009, we invested US $15.8 million in training. Supporting us in our efforts to encourage learning and growth in all our Business Units is FEMSA University, which offers around 6,500 top-quality courses and training activities—both virtual and in person—in a number of fields. In 2009, more than 44,600 employees from all levels of the organization took some course through this learning center, substantially more than the 20,100 participants registered in 2008. We support the education of our employees with programs like Back to School, supported by Coca-Cola FEMSA Costa Rica, together with the Employees Solidarity Association. Through this program, employees can continue their middle school studies. We also supported the technical and professional education of our employees in 2009, and offered special rates and scholarships for post-graduate studies at various universities. In Brazil, the FEMSA Women of Value program has been supporting workshops, theater performances, and personal development events that promote the company’s values among the wives of our employees since 2007. As a forum for sharing ideas, gathering news about recent events and interesting topics, and creating value for groups of wives that have formed over time, an online space was created: 8 www.mulheresdevalorfemsa. blogspot.com Integrating talent “... they made me realize that my disability was not a limitation.” Juan Manuel Espinoza lost sight in his left eye due to a retinal detachment, but he did not lose his drive for self-advancement. For the past seven years, he has worked in an OXXO store in the city of Saltillo, Mexico. His warm demeanor, his spirit of service, and his empathy with disabled customers make him instantly recognizable by those who enter this store. Clearly, Manuel’s life changed the day he accepted the invitation of his brother Homero and his sister-in-law Maria Eugenia, to work in the OXXO store they operate. pinoza, Juan Manuel Es e or st OXXO ico éx M Saltillo, “I was depressed for a long time due to my disability. Today, I’m grateful to my family for giving me the opportunity to work in OXXO with them, because they made me realize that my disability was not a limitation. OXXO has given me the opportunity to have a challenging and satisfying job. Now I know that because of my own situation, I can understand and better serve clients with special needs and make it easier for them to shop in the store. I feel productive, because I can carry out all the activities needed to offer quality service to our customers.” 13 Core Area 1 Quality of life in the company Through various initiatives, FEMSA companies recognized academic excellence among the children of our employees. In 2009, a Coca-Cola FEMSA program called Niños KOF recognized more than 5,500 students, and in its history, the program has recognized academic achievement of more than 18,000 children and young people. FEMSA Comercio also awarded the CuadernOXXO prize to 25 young people, distributing backpacks and school supply kits. Additionally, FEMSA Logística awarded the Knowledge Prize to 55 children of employees who had earned a grade point average of more than 9.0 out of 10. FEMSA companies also participated in scholastic support programs and the distribution of school supplies to help our employees defray educational expenses. Harmonious company environment GRI HR3 and HR8 The FEMSA Business Code of Ethics covers matters of human rights, but we went further by allocating additional resources to human rights training in key areas of the company. For example, our security personnel receive training in programs designed by FEMSA, standardized throughout all of our Business Units. Over the course of the year, this training was given to 100% of our security personnel. Given the nature of their work, all the staff of our Health Centers receive training on human rights, patients’ rights, and doctors’ rights. This training seeks to promote a kind, dignified, and respectful communication through methodologies such as emotional intelligence. This organizational culture is reinforced through communication campaigns about human rights, so that these are complied with and lived every day. GRI HR5, LA4, and LA6 Since our founding, our relationship with union organizations has been one of respect, cooperation, and dialogue. A basic component of this relationship has been the creation of committees in each of our work centers, which involve company representatives, workers, and union delegates. The committees address matters relating to labor, occupational health, industrial safety, training, and development, among others. All departments of more than 10 unionized employees have a representative on the committees. This past year there were no situations that might have jeopardized the free right of association or entrance into collective agreements. All of our unionized employees are covered by a collective bargaining contract. Our labor policies stipulate full respect for human rights, as well as for the fundamental rights established by the ILO, and we continually monitor our compliance with those standards. +550 individuals integrated in 2009 through the FEMSA Inclusive Workplace System. NUMBER OF EMPLOYEES WITH DISABILITIES, SENIOR CITIZENS, OR MEMBERS OF OTHER VULNERABLE GROUPS Business Unit Coca-Cola FEMSA* FEMSA Cerveza FEMSA Comercio FEMSA Headquarters Strategic Procurement Subtotal TOTAL* Disability Senior Citizens Other Vulnerable Groups 302 354 230 60 105 177 332 331 2,271 14 23 3 23 731 43 856 4,349 81 2,762 * In nine countries where Coca-Cola FEMSA operates Coca-Cola FEMSA Telemaketing Center > Mexico City 14 FEMSA Sustainability Report 2009 GRI LA12 To be able to measure our employees’ growth and progress against their goals, we introduced a methodology called The One Page System (TOPS). This methodology facilitates managers’ involvement with their work team, promotes the transmission of values, and standardizes the ways in which employee performance is tracked and evaluated. In 2009, 45% of our employees conducted their performance evaluation. FEMSA is keenly interested in staying in touch with the labor climate and the opinions of our employees. For this reason, during the past 12 years, we have conducted a survey called the Organizational Climate and Sociometric Study (DICOYES), a tool developed in-house and applied every two years in all our work centers in the nine countries where we operate. The survey gives us vital information on the opinions and concerns of our employees on various issues, and helps us identify strengths and weaknesses that must be addressed. Its results are used to map out plans of actions for the next 18 months. In 2009, we obtained evaluations from more than 65,000 employees. actions creating value Retirement plans GRI EC3, EC5, and LA11 We know that the dedication and loyalty of our employees is what makes FEMSA great. That is why we not only offer them fair wages and benefits, higher than local laws require, but we also plan for the time of their retirement. We have a number of pension plans, one for every country in which we operate, and three in Mexico. All of them strive to offer a full and dignified lifestyle to our retired employees. In Mexico, investments by FEMSA’s Pension Fund are governed by the Mexican Income Tax Law, and its funds are managed by a bank that serves as trustee and securities custodian. There is a Technical Committee that approves the investment policies and strategies of our Corporate Treasury, the latter of which also oversees the appropriate investment of the funds. In other Latin American countries where the company operates, we abide by the law on the subject. It is important to mention that pension fund resources are managed separately from those of our business operations. Since 1981, the Life and Development Program supports all our employees and their spouses in preparing to live their retirement to the fullest. We also ensure that through our Social Development Centers, our retired employees continue to enjoy a supportive relationship with FEMSA. My company, my family “When I was in high school, I would pass in front of the factory and say to myself: I want to work there.” Rigoberto Longoria, FEMSA retiree Monterrey, Mexico Rigoberto Longoria has been part of the FEMSA family for 37 years. Even before he began to work, he felt like part of the company, because for him, FEMSA is part of the culture of his city: Monterrey, Mexico. Rigoberto began his career at FEMSA as Development Executive for Empaques de Cartón Titán in the year 1972, and has been moving up in the company since then. Over the years he took advantage of the opportunities presented to him, working in various areas and companies of the group, like production, traffic, and logistics at Cervecería Cuauhtémoc Moctezuma, until becoming Manager of Operations at FEMSA Logística. In August 2009, Rigoberto retired from the company, but even though he left his job behind, he is still part of FEMSA’s family. “For me, retirement was something natural, thanks to the support I got from FEMSA. They prepared me and my wife in advance, and they were right there beside me throughout the process. I never felt alone in all the red tape, nor do I today. I know that I can count on their support. I’m still a part of SCYF, because after running more than 80 marathons wearing the Carta Blanca t-shirt, sports is an integral part of my life. My wife always felt involved in my job, my kids grew up between these doors, so for us, the company is part of our family.” 15 core area 2 Health and wellness Day to day, we live our commitment of contributing to the wellness of the community by supporting initiatives, programs, and projects to promote a culture of health and self-care, seeking that our employees and their families, suppliers, clients, consumers, and communities improve their quality of life. This year, health occupied an important place in our agenda. Current programs like the Occupational Health and Safety Administration System (SASSO) remained in place, proving once again its capacity to handle emergencies, such as the outbreak of the A H1N1 virus. Health care and responsible lifestyle programs also yielded encouraging results, benefiting more communities. We will continue to underscore our commitment to health and wellness in 2010 for our communities, working decisively towards a safe workplace environment, better nutritional diet and responsible drinking habits, and promoting an active, healthy lifestyle. 16 2009 HIGHLIGHTS 459,000 young people benefited from 100% 6.3% US$ 3.7 + 866,700 our Charting my Own Destiny program of our Business Units support health and wellness programs reduction in the workplace accidents index million invested in occupational health and safety programs participants in sports programs in Latin America FEMSA Sustainability Report 2009 In 2009, US $23.5 milllion was invested for the benefit of 2 million people through health and wellness programs. 17 Programs for employees and their families GRI LA6, LA8, and LA9 Health and wellness Since our beginnings, we have worked to develop the infrastructure needed to provide health care for our employees and their families, because we are aware of how important this is for their general wellbeing and their productivity in the workplace. Core Area 2 Our first efforts towards health care were made late in the 19th century, and were formally established in 1945, with the foundation of the Clínica Cuauhtémoc y Famosa in the city of Monterrey, Mexico. This ongoing pursuit of wellness and productivity led the clinic to build and operate the Occupational Health and Safety Administration System (SASSO) that is applied throughout all our Business Units. +500 employees and their families took part in the Crystal Running Team race, organized by Coca-Cola FEMSA Brazil. SASSO has 20 occupational health programs and 12 industrial safety awareness practices, which include workplace risk prevention and industrial contingency planning, annual medical checkups, preventive medicine campaigns, vaccination, and others. SASSO is an ex- actions creating value ample of a program created jointly by the company and its unions to protect the health and safety of our workers, which is driven and supervised by the Safety and Hygiene Committees. Among the main results of our Occupational Health and Safety programs in 2009 was a reduction of 6.3% in the workplace accident index from 2008. We also celebrated that the Coca-Cola FEMSA non-carbonated drinks facility in Costa Rica had one year without any lost-time incidents. Espacio Saludable (Healthy Sapce), a fitness center located within the Coca-Cola FEMSA Alcorta plant in Buenos Aires, Argentina, opened in February 2008. In this space, employees are encouraged to develop good health habits and be physically active, placing what they need to exercise within their reach, right at their workplace. Various internal communication campaigns, like Salud 100, promote healthy lifestyles, bringing more than 200 workers in to take advantage of the space. Besides the direct health benefits of sports, they help to develop attitudes and abilities that encourage better professional performance, like integration, discipline, Total health in the office “Few companies offer this kind of space for healthy living.” Sebastián Luchetta, a Financial Information Analyst for Coca-Cola FEMSA Argentina, has always been interested in staying healthy and exercising. Since he was a young boy, he has known how important it is to be healthy and active. During his years in college, finding time and a place to exercise was easier. But once he began his professional career, a lack of time and long distances made it hard to keep up these good habits. To his surprise, Coca-Cola FEMSA Argentina started a program that could change this situation. The opening of Espacio Saludable (Healthy Space), the new fitness center installed at the Alcorta plant in Buenos Aires, gave him the chance to balance work with physical activity. “Few companies in the world offer this type of facilities to its employees in their own workplace. It’s given me the chance to resume my healthy habits and get back into shape,” he says. 18 FEMSA Sustainability Report 2009 and teamwork. That is why all our Business Units support the organization of tournaments and sports activities, which gathered more than 866,700 people in 2009. One example was the Crystal Running Team race, organized by Coca-Cola FEMSA Brazil, in which more than 500 employees and family members participated. The companies of FEMSA in Mexico organized various activities and events that combined recreation with sports: 440 mountain-climbing activities, races, and soccer, baseball, and basketball tournaments, among other activities held in 2009. Sports is also a way to build stronger families, so in 2009 we held in all our work centers sports programs in which more than 55,000 employees and family members took part. Recognizing the seriousness of the A H1N1 crisis, we acted instantly and decisively to counter its risks and potential impact in our work centers in Mexico, in order to prevent contagion as much as possible. These measures began in April 2009 and remain in effect in Mexico. To coordinate efforts throughout the company, a crisis committee was set up to meet weekly and take charge of tasks like informing on the number of cases presented and ruled out, and coordinating medical checks at entrances, adjustment of facilities, promotion of preventive measures, and other activities. For its outstanding performance in these actions, Clínica Cuauhtémoc y Famosa was recognized by the Government of the State of Nuevo León, in Mexico. Community programs GRI 4.12 As community members, we at FEMSA are convinced that a healthy environment is the best place to live and to grow as a business. We also believe that preventive education programs are a springboard for in-depth, long-term transformation of the health problems we face today, which are sometimes addressed only by restrictive short-term solutions. Charting my Own Destiny, developed at FEMSA’s request by specialists from the University of Monterrey, is aimed at encouraging young people to develop skills for making better decisions in all aspects of their lives. Through hands-on experience and reflection, students develop social and cognitive skills and emotional selfcontrol. During 2009, we reached 459,000 students Cervecería Cuauhtémoc Moctezuma emphasizes the promotion of healthy and responsible lifestyles. For more information, visit 8 actions creating value http://www. accionesqueresponden.com Training for life “Helping a child to become a better person ... that’s my life.” For Sergio Rosado, a teacher at Public High School #7 in the state capital of Campeche, FEMSA’s Charting my Own Destiny program has become a tool for personal growth for both himself and his students. Sergio says that educating and supporting school children in the various areas of his life is his vocation. That is why he is deeply interested in young people developing solid life skills. “I work as a tutor for a number of boys and girls, and as I introduced Charting my Own Destiny, I began to see a positive change in them. I had students that changed their ways of life and overcame serious, very serious problems. I think it was a big help that the content of the books is very much in line with what these children go through on a daily basis. I am fully committed to the program, and because I am convinced it provides positive results, I am also applying it at home with my own kids.” 19 Health and wellness between the ages of 11 and 17 in the states of Campeche, Chihuahua, and Nuevo León, in Mexico. Since its beginning in 2007, Charting my Own Destiny has touched the lives of 515,000 young people and, based on its encouraging results, in 2009 it was named FEMSA’s flagship program, for which its expansion to more Mexican states and other countries in Latin America is now on process. During 2010, we expect to benefit some 300,000 young people through this program. Core Area 2 As part of our commitment to raising awareness about the importance of responsible drinking habits, particularly among young people, we created a Workshop for Training Responsible Lifestyle Promoters (VIRE) in 2002, the purpose of which was to create a core group of trainers that promote these concepts among Mexican youth. In 2009, more than 6,300 people have been trained through VIRE to promote healthy lifestyles, in 171 workshops in Mexico, thus amounting to 22,800 people trained to date. +6,300 people trained though VIRE in Mexico in 2009. For the past 19 years, FEMSA Comercio has been holding the 21K OXXO race in the state of Chihuahua, Mexico. In the 2009 event, more than 1,500 sports enthusiasts came together inclu- ding Mexican and foreign runners, people with disabilities, and indigenous people from the Sierra Tarahumara of that state. One of the most successful sports programs in Latin America has been the Coca-Cola Cup Soccer Tournament, sponsored by The Coca-Cola Company and bottling companies in The Coca-Cola system. In 2009, from Mexico alone, 85,000 children participated, from which 13,600 took part in the more than 850 Coca-Cola FEMSA teams. Youth benefit not only from practicing a sport, but also from lessons in discipline, teamwork, the awareness of the importance of good health, and camaraderie. Through the organization of free tournaments to promote sports and values among young people, this year, the Coca-Cola FEMSA’s Baseball Caimaneras Program in Venezuela reached 2,000 people. The program includes a diploma to all participants and sports clinics coached by famous baseball players. More than 2,000 runners joined in the sixth annual Powerade Challenge in Costa Rica. Participants competed in the 21K and 10.5K categories, and coordination and security for the event met the international standards and was also endorsed by the Costa Rican Athletic Federation. +2,000 sports enthusiasts took part in the Powerade Challege in Costa Rica. 21 K OXXO For the past 19 years, FEMSA Comercio has been holding the 21K OXXO race in the state of Chihuahua, Mexico. In the 2009 event, more than 1,500 sports enthusiasts came together including Mexican and foreign runners, people with disabilities, and indigenous people from the Sierra Tarahumara of that state. 21K OXXO race > Chihuahua, México 20 FEMSA Sustainability Report 2009 For the third time, OXXO joined forces with the Government of the State of Chihuahua, the Municipal Presidency of Chihuahua, the Chihuahua Sports Institute and other institutions to hold the 2009 Majalca Challenge, a mountain biking race consisting of two courses. The first was aimed at experienced cyclists and included 78 kilometers of hills and valleys, beginning in the Cumbres National Park of Majalca, and ending at the El Reliz Park in the state capital. In a parallel event, beginner or moderately experienced cyclists could sign up for a 38K course, beginning at the Calabacillas Ejido, and ending in the same place as the advanced bikers’ event. In the 2009 Majalca Challenge, a record number of athletes—more than 1,000—joined the event to enjoy the sport and appreciate nature. Together for your Wellness, introduced by Coca-Cola FEMSA Mexico, is a four-part program comprised of: 1) An educational play called The Nutty Professor, which was staged to 220,000 students in 540 elementary schools in 2009, bringing them messages about the importance of health care, physical activity, a balanced diet, hydration, and positive thinking. 2) Health brigades, which provided medical diagnoses to 30,000 students in 125 schools in four states of Mexico. actions creating value 3) Sports clinics, in which young people learned through sports and teamwork how to lead a healthy life, and at the end of the program, spent time with professional soccer players. 4) A drawing contest, in which 5,000 students were invited to create artwork reflecting the importance of health. We continue to support the FEMSA Biotechnology Center, at the Instituto Tecnológico de Monterrey. In 2009, this center made significant progress in training researchers specialized in the design, implementation, and operation of biotechnology processes in the health, food, agro-industrial, chemical, pharmaceutical, environmental, and academic fields. Many of these research projects focus on the generation and introduction of sustainable technology for the production of goods and service through the use of enzymes, micro-organisms, and animal and/or vegetable cells. The center works to generate knowledge as well as to create new patents for technological solutions useful in the industry, technology transfer, students benefited from the Together for your Wellness and the incubation of new bioinitiatives in Mexico. companies. 255,000 Healthy and funny “I would like this play to come back, so the kids in my class can see it and learn to be healthy.” Brandon Rafael Vera Ramírez is a 5th grader at the Ipanti elementary school in the city of Texcoco, State of Mexico. For him, as for any other child, learning how to eat healthy food was always boring, because information was often difficult to understand. One day, a play called “The Nutty Professor” came to his school, sponsored by the Together for your Wellness Program of Coca-Cola FEMSA Mexico. The play showed Brandon and his classmates how they could learn to eat healthy and maintain a balanced diet, in simple language, and with lots of fun. “I liked the way the Nutty Professor and his assistant talked, it made me laugh a lot. I also liked it when my classmates went up front to participate, and when they made them do sit-ups and push-ups. But they also showed us important things, like drinking water every day, exercising, and eating fruits, vegetables, and meat so we don’t get sick and can stay healthy,” said Brandon. “I think my classmates should all eat right and exercise, just like the Nutty Professor and his assistant told us.” 21 core area 3 Community engagement GRI 4.12, EC1, EC8, and SO1 At FEMSA, we have assumed the commitment of building harmonious, longterm relationships with our stakeholders so that we can together address the issues that concern all of us. This is why we develop strategies and promote actions consistent with the nature of our business. Since our founding in 1890, we have supported initiatives that promote the education, economy, and quality of life of the communities where we operate. This year we confirmed the importance of formally including social responsibility into our Business Units’ strategic planning. During the year, we updated our corporate social responsibility management processes, creating an environmental management methodology that involves, among other things, developing information-based work plans to assure greater impact. In 2009, we invested time and effort in working with our stakeholders on initiatives to support education and culture, encourage responsible consumption of our products as well as social integration and assistance, safety, suppliers’ development, and other actions. 22 2009 HIGHLIGHTS 40,200 designated drivers signed up 1 million visitors to the exhibitions of FEMSA Art Collection 86% average of locally based + 427,500 US $5.2 suppliers in the countries where we operate indirect jobs generated by our soft-drink operations in Latin America and beer operations in Mexico million donated by our OXXO clients through its Social Responsibility Program FEMSA Sustainability Report 2009 Through our community engagement programs, we benefited more than 2.1 million individuals with an investment of US $13 million. 23 Community engagement Education GRI EC8 and SO1 Community engagement We aim on keeping communications clear and open with our community, because as a part of it, we are interested in hearing about the issues that concern those around us. In addition to the various communication channels and our open-door policy, we periodically hold community studies in the areas where we are present, to gather important input to develop plans together with the authorities and the community. Core Area 3 By forging ties with its community and authorities, and acting as a good neighbor concerned about public safety, OXXO decided to take proactive steps in improving security. This was the start of its involvement in the Neighborhood Alert, or VEA program, in alliance with the municipal government of San Pedro Garza García, in Mexico. The program began its pilot testing phase with the participation of municipal authorities, the company, and neighborhood groups of three residential districts. VEA invited neighbors to share information and coordinate among them to be aware of possible criminal activity, showing them how to make an effective telephone report to the authorities so they can do their job. actions creating value We continue to support the Tecnológico de Monterrey, which today is one of the most prestigious private universities in Latin America. In its 33 campuses in Mexico, this institution provides education to 96,650 students through 54 national and 37 international professional programs, as well as 50 masters and 10 PhD programs. Education for Work, supported by Coca-Cola FEMSA Brazil and FEMSA Cerveza Brazil, gives young people the opportunity to develop their knowledge and skills for entering and advancing themselves in the professional world. In 2009, some 260 young people took part in these programs in the cities of Ipiranga, São Paulo, and Jurubatuba. The best students were given an opportunity to work for six months at FEMSA companies in this country. Through a pilot program called Sports Volunteers, 38 enthusiastic employees from Cervecería Cuauhtémoc Moctezuma donated more than 1,580 hours of their time to transmit, through sports, our corporate values to a group of 86 children from the municipality of Santa Catarina, Nuevo León, in Mexico. Sports Volunteers “Volunteering made us grow as persons; we get more from them than we give.” Diego an d Cervece Ana Rebeca, ría Cuau htémoc Moctez Monterre uma y, Mexic o. 24 Ana Rebeca Tella and Diego Gámez have been working at Cervecería Cuauhtémoc Moctezuma for seven years in the strategic clients and category management areas, respectively. They were married in the summer of 2009. In the same season, they volunteered for the Sports Volunteer program. “The credit for our participation goes to Ana Rebeca, because she’s the one that invited me,” says Diego. Ana Rebeca was always interested in volunteering, but it was difficult to fit it into her work schedule. So when she found out about the program at her company, she didn’t hesitate to sign up. She had the challenge of being the only woman to serve as coach of a children’s soccer team in the program, and Diego, acting as assistant, handled a number of positions. Both agree that their participation in the Sports Volunteer program helped them to grow as a family. “We don’t have kids yet, but when we do, we want them to know that we can positively influence others through our actions, and we are responsible for giving something back to the world we live in,” says Ana Rebeca. “We are able to share the values of the company in hands-on experience. The children opened doors for us, and what they taught us was more valuable than we could do for ourselves. If through these actions we were able to transmit something positive, or touch the heart or mind of a single child, then we were successful,” Diego and Ana conclude. Responsible drinking Economic development Since 2002, Cervecería Cuauhtémoc Moctezuma has implemented a program in Mexico called Conductor Designado®, (Designated Driver), aimed at encouraging drivers to refrain from drinking before they get behind the wheel. In 2009, more than 40,200 drivers joined the effort, thus making 175,800 drivers signed up since 2002. In partnership with the Instituto Tecnológico de Monterrey, and in order to support the development of Mexican states, we held studies called Identification of Development Opportunities (IOED). The studies analyze the individual strengths, weaknesses, and opportunities for business in each state in order to identify the business clusters most aligned with the infrastructure and development of the zone. These studies were delivered to a total of nine state governments, and are available to interested members of the general public; delivery of the remaining studies is programmed for future dates. We also set up an interactive website that serves as a point of observation on regional development, where information is updated continually, and which serves as a tool for detecting strategic opportunities in each state. Working with our stakeholders means relating with people with whom we share common interests. In the beer business, restaurants and bars, and particularly waiters who serve our products, all assume a significant responsibility. The commitment of promoting responsible consumption led us to develop the Responsible Waiter Workshop in 2002, to supply information on the effects of excessive alcohol consumption. The course seeks to raise awareness among waiters and managers of establishments where alcoholic beverages are consumed, about their responsibility in serving these products. In 2009, close to 1,000 waiters attended workshops held in 12 cities of Mexico, adding to the more than 2,300 that have completed the course in previous years. 1,580 + hours donated by employees of Cervecería Cuauhtémoc Moctezuma through the Sports Volunteers program. FEMSA Sustainability Report 2009 GRI EC6 As part of our commitment to local development, and to promote economic activity in the communities where we operate, we seek out suppliers with domestic operations, always on the basis of the service, quality, and price they offer. In 2009, an average of 86% of our suppliers in the countries where we operate was domestically-based. At the same time, 92% of the products sold in more than 7,300 OXXO stores are made in Mexico. The Ongoing Education Program for Retailers, of Coca-Cola FEMSA Mexico, supports the development of distributors from its traditional sales channel. The program provides retail associates the opportunity to train as micro-business owners and thus improve their results. In QUENCH YOUR READING THIRST Through the Quench your Reading Thirst program, Coca-Cola FEMSA Colombia promotes reading habits in children of vulnerable communities in the country. To make this possible, we help train public school teachers by providing pedagogical tools that promote reading, and delivering support material to mobile libraries. In 2009, more than 18,000 Colombian children benefited from this initiative. Quench your Reading Thirst program > Coca-Cola FEMSA Colombia 25 2009, employees volunteered to give training courses to the 250 individuals that attended over a 90-day period. US $156.5 million, in connection with a lawsuit over pre-existing tax liabilities at the moment of the purchase of the Brazilian beer company Kaiser. Community engagement GRI HR6 and HR7 Core Area 3 Our Strategic Procurement area has specialized in maximizing the efficiency of our purchases of inputs common to various Business Units. As part of its work, it has identified processes in our value chain that are vulnerable to child labor exploitation or force labor in its operations. One example of this is the purchase of promotional articles for Coca-Cola FEMSA, which now must be acquired exclusively from suppliers that have been previously certified by The Coca-Cola Company as firms that operate in compliance with human rights, laws, and principles. GRI EC4 In accordance with the laws of each country, we received various forms of financial incentives from the governments. In 2009, our operations in Colombia, Brazil, Mexico, and Nicaragua received economic support for our participation in the areas of research and development, investment in fixed assets, energy savings, exports, transportation, cinematography, and others. This support totaled US $186.2 million in 2009, led by Brazil, where we received tax benefits totaling actions creating value Culture Based on its belief that art and culture are a splendid vehicle for promoting a comprehensive education, FEMSA has a cultural program open to the general community. The FEMSA Art Collection, one of the largest in Latin America, with more than 1,100 works of modern and contemporary Latin American art, is available to the public through exhibitions in cultural spaces in Mexico and around the world. In 2009, the FEMSA Art Collection lent 11 works of art and held 11 exhibitions in Mexico, Brazil, and the United States, where 1 million people had the opportunity to appreciate a wide selection of works by the great Latin American masters. To provide more in-depth information on the content of the works shown, we organized 17 conferences by experts in art history, which were attended by more than 1,500 participants. Eight additional complementary activities were held with the exhibitions, with 800 people attending, including training sessions for museum guides. Rounding-up lives “Thanks to rounding-up by OXXO clients, many institutions can support families like mine.” Sixta was born in Huejutla, Hidalgo in Mexico. Around the time she turned 15, she began to lose her sight due to a congenital illness that affected her and her four brothers and sisters. But her love for life kept her moving forward, and she did not hesitate to marry her boyfriend David a few years later. Her vision worsened with her first pregnancy, but this did not prevent her from caring for her child. Five years later, her second daughter Francisca, was born. Now completely blind, Sixta continued to do everything she could to care for her family. But she did not need her eyes to know that there was something wrong with her daughter’s development. In the city of Monterrey, one of Sixta’s sisters regained her sight with an operation by Destellos de Luz, A.B.P. Sixta knew that if she could see again, she could take better care of her daughter, so her family of four left it all behind and moved to Monterrey to seek out a better life. Like her sister, she was able to get a cornea transplant from Destellos de Luz, A.B.P, in one of her eyes, and for the first time, she could see her children. Another institution appeared to continue “rounding-up” her life. Her daughter was diagnosed with microcephaly by the specialists at Nuevo Amanecer, A.B.P., and today this institute provides the therapy Francisca needs twice a week. Sixta awaits the operation for her left eye, while she cares for her children. Like many other individuals throughout Mexico, through the generosity of clients and employees of OXXO and two important institutions supported through the PRO program, Sixta and Francisca found a window to a better life. “My daughter is getting better, every day she moves a little bit more. I get assistance for the medicine and therapy that I couldn’t otherwise afford. I will always be grateful to the people who support Destellos de Luz and Nuevo Amanecer for changing my life. Thanks for saying YES to rounding-up at OXXO!” 26 FEMSA Sustainability Report 2009 In addition to promoting art appreciation through exhibitions, we have supported artistic creation since 1992 with our FEMSA Monterrey Biennial. This fine arts contest has become one of the most widely-recognized in Mexico, where the winning pieces are added to the FEMSA Art Collection. The competition is held every two years, and in its ninth edition held in 2009, 1,314 artists took part, submitting 3,605 works. Winners received a cash price and one-month artists’ residency at the School of Fine Arts in Saint-Étienne, France, sponsored by the Alliance Française de Monterrey. Social Assistance OXXO has several initiatives that take part of its OXXO Social Responsibility Program (PRO) and is especially proud to support its rounding-up program throughout its stores in Mexico. Through this program, and thanks to the generosity of clients who agreed to round up their checkout ticket to the nearest peso, the program was able to support a number of NGOs involved in environmental care, health, and social assistance, among other fields. The donations have brought a smile and aid to many people throughout the country, helping them with the construction and maintenance of shelters, purchase of medical equipment, operations, prosthesis, and many other noble causes. In 2009, our clients donated US $5.2 million, which supported 187 institutions. Since PRO began in 2002, OXXO has channeled US $24.9 million to 877 institutions. actions creating value In 2007, Coca-Cola FEMSA Colombia was the first company to support the Time Bank program, an initiative by the High Presidential Council on Reintegration. The program promotes the social re-integration of former members of Colombia’s guerrilla movement and former members of paramilitary groups. In 2009, more than 100 volunteers from the company took part in the initiative, donating their time to help people develop skills and know-how for setting up their own businesses. Since its inception it has benefited more than 90 people who are now taking part in rebuilding peace in Colombia. In August 2009, Time Bank graduated its first class of 23 participants; and after two years of operation in Bogotá, it was extended to Medellín, Montería, and Valledupar, with the support of 480 volunteers. Another achievement this year was the agreement of 20 other companies to join this initiative. In 1993, FEMSA and Tecnológico de Monterrey introduced the Eugenio Garza Sada Award to recognize people and institutions that follow the example set by the man who for many years served as CEO of our company, and was also a tireless social leader and founder of the Tecnológico de Monterrey. There were 139 submissions in 2009, from where Roberto García Maldonado and the Fundación Merced A.C., where selected by the jury in public recognition of their efforts to mitigate poverty through the integral, and sustainable development of people and their communities. CMYK Pantone Process 325-4 C IXBIENAL MONTERREY CMYK C M Y K 0 0 0 60 C M Y K 100 0 100 0 C M Y K C M Y K 0 0 0 80 C M Y K 100 0 100 0 C M Y K Pantone 877 C The Monterrey FEMSA IXBIEN AL in Biennial was created MONTERREY 1992, in order to recognize and stimulate artistic creation in Mexico. To IXBIENAL date, more than 7,000 MONTERREY artists have taken part, submitting 17,093 works. For more information, visit our website: ESCALA DE GRISES 8 http://www. bienalmonterreyfemsa.com/ Time well spent “This is the way, supporting and obtaining support for people trying to succeed.” Since it was first introduced in 2007, the Time Bank program led by the President of Colombia has had the decisive support of Coca-Cola FEMSA, the first company to join this initiative to restore peace and social integration in that country. Like any story, it has two sides: Rosalía Galán’s and Nicolás Cuadros’s. Despite the differences in their lives, they share an involvement in the Time Bank program, the desire for a better life for themselves and their families, and the will to do something about it. For Rosalía, the program helped her to focus on her dream and to achieve it. For Nicolás, who works in the corporate offices of Coca-Cola FEMSA, it was an opportunity to serve his country by contributing his time and his know-how, but more importantly, he learned that we can all change the course of our lives, those of others, and of our country as a whole, without great heroic feats. Today, Rosalía has a business making macramé articles in the city of Bogotá. “This is the way,” she remarked enthusiastically, “supporting and obtaining support for people trying to succeed.” 27 80% NEGRO 70% NEGRO 40% NEGRO 20% NEGRO core area 4 Environmental care GRI 4.12, EN26, and EN30 At FEMSA, we are committed to caring for the environment, which is why we seek to incorporate sustainable development criteria into all of our business decisions and processes. Our efforts focus on issues like the availability of drinking water to our communities, reforestation, and bodies of water cleanup; appropriate management and recycling of waste; environmentally-friendly processes and packaging, and optimization of energy consumption in our operations and value chain. We made major progress in the area of environmental care in 2009. In water usage efficiency, we remained a global benchmark for both the Coca-Cola system and the beer industry. In our OXXO stores we introduced oxodegradable bags. We took a big step forward in terms of the use of renewable energy in our processes, and continued to innovate in more efficient refrigeration equipment, regarding energy consumption. We also made great progress in the environmental care program of our administrative offices, taking it to more work centers. Because we are convinced that taking care of our planet is everybody’s task, we are also working to encourage a sense of joint responsibility among our stakeholders. 28 2009 HIGHLIGHTS 630,000 cubic meters of water saved by Coca-Cola FEMSA 51 wastewater treatment plants 16,000 metric tons of PET recycled 56.7% 37,255 Gj in Mexico through IMER OXXO stores with intelligent-store system of energy saved by FEMSA Cerveza in Mexico FEMSA Sustainability Report 2009 In 2009, we invested more than US $19.9 million in environmental care programs. 29 Water Core Area 4 Environmental care GRI EN10, EN21, EN23, EN25, and EN26 51 We are constantly seeking out opportunities to reduce our environmental footprint though technological improvements and sustainable practices applied throughout every level of the organization. Because water is one of our main inputs, we work continually on optimizing and reducing the amount we use. These measures include state-of-the-art equipment and technology, recovery systems, wastewater treatment plants, and awareness-raising campaigns for our employees and their families. This year, we concluded the wastewater treatment plant in Barcelona, Venezuela, and authorized investments for the construction of plants in Antímano, Maracaibo, and Valencia, in Venezuela, as well as in Guatemala, and Medellín and Cali, in Colombia. Also, the capacity of the Apizaco wastewater treatment plant in Mexico was expanded. At present, we have 51 wastewater treatment plants in all our operations. wastewater treatment plants in nine countries. Coca-Cola FEMSA is a global leader in water usage efficiency. In 2009, the company saved 630,000 cubic meters of water compared to its 2008 consumption, equivalent to the annual con- actions creating value sumption of 2,000 families. By introducing rigorous water usage procedures, we improved water use by 15% from 2004 to 2009. FEMSA Cerveza is also among the most efficient beer companies in the world in terms of water usage. In 2009, its indicator of water consumption was 3.8 liters of water for every liter of beer produced. More than 95% of the wastewater generated by the operations of Coca-Cola FEMSA is treated before being discharged. We currently work and devote resources to increase this figure to 100%. Because of our wastewater management programs, in 2009 there were no reported incidents of impact on any of the water resources or habitats surrounding our operations. To optimize maintenance services for the fleet of distribution units in Mexico, FEMSA Logística performs these services in 98 shops located at the relay bases. These facilities have incorporated technology that minimizes environmental impact, for example, vehicle washing equipment that recycles water, saving up to 80% of their water consumption. The shops also have installed traps to capture oil, sludge, and other hazardous resi- Water, please “The proper use of our natural resources will affect future generations, and we are aware of this.” Founded in Mexico’s arid northeast, Cervecería Cuauhtémoc Moctezuma knows that caring for water is nothing new. The close attention it pays to this vital liquid throughout every phase of its processes has made it a world leader in the efficient use of water in its industry. It is worth noting that although part of the bottles used by CCM are returnable bottles and must be thoroughly washed, the company’s use of water is more efficient than in the main global beer companies, including those that produce most of its production in nonreturnable bottles. At the same time, all of the wastewater generated in its processes is re-treated in wastewater treatment plants, under the strictest environmental standards. For Victor Treviño, Manager of Engineering and Plant Sustainability at CCM, this is not just a matter of savings but of a corporate and personal conviction. “The care and sustainable use of water is one of our central concerns; we cannot stop working on it despite having already achieved excellent results. We use the most advanced technology in an unceasing effort to innovate toward achievement of our goals. The proper use of our natural resources will affect future generations, and we are aware of this.” 30 FEMSA Sustainability Report 2009 dues so that they can be safely transported and contained according to established regulations. In order to raise awareness of the importance of water preservation among our employees and families, FEMSA Strategic Procurement gave a seminar in partnership with the Save the Water Foundation in Mexico. More than 200 attendees listened and considered about the importance that the task of caring for water and the environment is not left only to the authorities, but is assumed by each and every one of us as individuals. GRI EN13 and EN14 We are aware of the importance of the entire water cycle, so we are also working on a project focused on the conservation of bodies of water that filter this vital liquid: wetlands and forests. Since 2008, Coca-Cola FEMSA Colombia has been working in partnership with the Ministry of the Environment and other companies in restoring the Cappellanía Wetlands in Bogotá. In 2009, a three-day cleanup effort involved neighboring communities. Forests provide important environmental services, as they are vital for the conservation of soil and water, the capture of carbon, and the prevention of global warming. That is why Coca-Cola FEMSA Brazil, through its Águas das Florestas Tropicais program, participated in 5 years the reforestation of the Japi Range in São Paulo, a protected water source rich in animal and vegetation biodiversity that covers 3,300 square kilometers. The aim of this project is to restore the area in a period of six years. In 2009, the company backed this initiative planting 300,000 trees. In Mexico, Coca-Cola FEMSA, in alliance with The Coca-Cola Company and other organizations, has supported the reforestation of regions in the states of Mexico, Guanajuato, Michoacán, Puebla, Tlaxcala, and Veracruz. Through these initiatives, in 2009 over 4,500 hectares were forested with more than 4.2 million trees. GRI EN11, EN12, and EN15 As part of the analysis that goes into building or expanding operations, we take their environmental impact into account, and we can therefore say that our facilities guarantee that no harm is caused to the fauna and flora of the region. Energy GRI EN5 and EN18 Saving energy in our daily operations not only translates into economic benefits, but it also has a positive impact on the environment. Consuming less energy derived from fossil fuels minimizes emissions that might contribute to global warming, and helps avoid using up its nonrenewable sources. As a result of improvements in our using lamps with 80% less mercury content in OXXO stores. INTELLIGENT STORES OXXO has shown its interest in contributing to the environment by introducing a system called Intelligent OXXO Store, which controls lighting, refrigeration, and air conditioning equipment in its stores in real time through a central processing unit. At the close of 2009, 56.7% of OXXO stores had this system. OXXO Store > Monterrey, Mexico 31 Environmental care processes, Coca-Cola FEMSA reduced by almost 2% the energy required to produce one liter of product. Also, during the year, more than 47,000 Gigajoules of electricity were saved, which means ceasing to emit 6,000 metric tons of CO2 to the environment, equivalent to the carbon uptake of 880,000 pine trees. GRI EN6 Core Area 4 In 2009, a big step forward towards the supply of renewable energy was given by signing a contract for the supply of wind energy from the Bii Nee Stipa project in the zone of La Ventosa, Mexico. This wind farm will supply the Coca-Cola FEMSA plant in Toluca, as well as other important operations, with 360,000 Gigajoules of energy a year. The change in the energy source represents the equivalent of ceasing to emit 55,000 metric tons of CO2 each year, equivalent to the carbon uptake of more than 8 million pine trees. +47,000 Gigajoules of energy saved by Coca-Cola FEMSA. OXXO has shown interest in contributing to the environment by introducing a system called Intelligent OXXO Store, which controls lighting, refrigeration, and air conditioning equipment in its stores in real time through a central processing unit. At the close of 2009, 56.7% of actions creating value OXXO stores had this system. Additionally, transition refrigerant gases were replaced with definitive gases in our air conditioning and cooler equipment, which are now Chlorine-free and therefore do not damage the ozone layer, while helping save energy as well. Although Mexico has no specific regulations on the matter, starting five years ago, OXXO installed lamps in its stores with 80% less mercury content than those commonly used on the market. GRI EN7 Súmate, vive nuestra cultura (Add Yourself Up, Live our Culture), is a program of environmental awareness and savings, which was born at the initiative of the employees of FEMSA’s corporate offices in Monterrey. The program promotes the involvement of employees and suppliers in introducing measures to benefit both the environment and the economy. Among the actions taken in 2009 were the acquisition of environ- Protecting the economy and the environment “This means savings for my business, and better prices for my customers.” Every day for the past six years, Arturo Hernández has opened the doors of his business early in the morning, at “Cremería Cantabria”, located in the Escandón district of Mexico City. The good service and quality of the merchandise he offers his customers have been the key to the success of Arturo’s business. A year ago, when they came from Coca-Cola FEMSA to install a new IMBERA cooler, the company of our Strategic Procurement area that manufactures cooling equipment, with a more attractive image and lower energy use, he knew it would bring good things. The technicians told him that the new cooler was not only more efficient, but used a cooling gas that did not affect the atmosphere and could also be recycled. “Not only do my clients see a clean and neatly organized cooler, but I’ve saved 10% on my total electricity bill. This means savings for my business and better prices for my customers.” 32 GRI EN16, EN19, and EN20 We are aware that climate change requires the involvement of each of us in mitigating its effects and, to the extent possible, slowing its advance. This is why regularly measuring our performance in terms of emissions is highly important for gauging our progress on this front. As they have been doing every year since 2006 and 2008 respectively, in 2009 Cervecería Cuauhtémoc Moctezuma and Coca-Cola FEMSA Mexico submitted their Voluntary Report on Greenhouse Gas Emissions, making a clear statement on their performance in this regard. CO2 EMISSIONS (METRIC TONS) BY FEMSA CERVEZA MEXICO* £ Direct £ Indirect n Production ������� ������� ������� ���������� ���������� ���������� ������� ������� ������� ���������� ���������� ���������� ������� ������� ������� ���������� ���������� ���������� ������� ������� ������� ���������� ���������� ���������� ������ ������ ������ ���������� ���������� ���������� �� HECTOLITERS Through this initiative in our corporate offices, more than 1,800 Gigajoules of energy were saved in 2009, and 32 metric tons of aluminum, cardboard, and newspapers were recycled. Furthermore, the use of videoconferencing equipment reduced the need for physical traveling, meaning 1,221 metric tons less of C02 emissions, equivalent to removing 175 vehicles from circulation for a year. We are aware that the importance of this program goes beyond the numeric results, because of its potential impact on the habits of our employees and their families. Because of this, the program has been replicated in other work centers in the countries where we operate. Emissions METRIC TONS OF CO2 mentally-friendly office supplies, the installation of motion sensors for the lighting of common areas, and programmable thermostats for air conditioning, as well as the purchase of videoconferencing equipment and other measures. This initiative also encourages recycling, savings through rational use of services, and the creation of an environmental care culture. The program also includes regular communication with employees in the form of monthly reports on energy and water savings in the building, and an invitation to get involved through the Add Yourself Up Award, which recognizes proposals and actions by employees and their families. FEMSA Sustainability Report 2009 � 2004 ���������� ���������� ���������� 2005 2006 2007 2008* * REPORTED IN 2009. INCLUDES ONLY MANUFACTURING OPERATIONS 1,800 Gigajoules of energy saved in 2009 in our corporate offices with the Add Yourself Up, Live our Culture initiative. AWARDS FOR OUR BEST PRACTICES In 2009 two of our environmental care programs received the Best Social Responsibility Practice Award by the Mexican Center for Philantrophy (CEMEFI): Cervecería Cuauhtémoc Moctezuma’s Sustainable Use of Water Program, and FEMSA Headquarters’ Add Yourself Up, Live our Culture program, which promotes environmental awareness and savings among employees, their families, and our suppliers. Receiving the Best Social Responsibility Practice Award > México 33 Environmental care Although FEMSA Cerveza’s production in Mexico increased 1.27% from 2007 to 2008, the total greenhouse gas emissions decreased by 8.3%. This was achieved in part because of an improved emission factor for the electricity generated at the Comisión Federal de Electricidad, (Federal Electricity Commision) but also significantly because our plants reduced electricity and vapor consumption by 7%. CO2 EMISSIONS (METRIC TONS) BY COCA-COLA FEMSA MEXICO* n Production ����� ����� ����� ������ ������ ������ ����� ����� ����� ������ ������ ������ ����� ����� ����� ������ ������ ������ ����� ����� ����� ������ ������ ������ ����� ����� ����� ����� ����� ����� �� � 2004 2005 2006 2007 MILLIONS OF LITERS ������� ������� ������� METRIC TONS OF CO2 Core Area 4 £ Direct £ Indirect 2008* nificantly in absolute terms, remaining in total, at 130,000 metric tons. They were even reduced in 2008 to 122,678 metric tons. Coca-Cola FEMSA has established the commitment that by 2015, its CO2 emissions, in absolute terms, will be the same as those generated in 2004. This commitment is supported by actions to reduce emissions in distribution centers, vehicle fleet, and refrigeration equipment. As for CFC emissions, which damage the ozone layer, all of the coolers manufactured by IMBERA, our commercial coolers manufacturing company, as well as the air conditioning equipmet purchased by our work centers are free from these components. Additionally, as part of this commitment, IMBERA and OXXO have incorporated the use of inert gases in their refrigeration equipment. Also, coolers bought at present by Coca-Cola FEMSA are 80% more efficient in energy consumption than those purchased in 2001. * REPORTED IN 2009. INCLUDES ONLY BOTTLING PLANTS. In regards to the performance of Coca-Cola FEMSA, it is worth noting that although production increased by 12% from 2004 to 2008, CO2 emissions did not change sig- actions creating value In regards to the emission of other gases into the environment, FEMSA Cerveza in Mexico made a noteworthy effort in its combustion process controls, reducing NOx and SOx by 6% and 2.3%, respectively, from 2008. It is On the road to a better environment GRI EN29 “There are solutions that benefit both the company and the environment. They’re not always obvious, so we have to constantly seek them out.” Every day, thousands of trucks travel the roads and highways of the countries where FEMSA operates. They are working to bring our beverages and containers to their destinations in the most efficient way possible. A couple of years ago, the benefits of transportation standardization seemed a long way off, since each company in the group made its own decisions about the acquisition of vehicles. The interest in saving more money and reducing their environmental impact led to the creation of FEMSA’s Technical Committee on Vehicles in 2007, made up of a group of specialists who had worked in the procurement, maintenance, and use of vehicles in the nine countries where FEMSA is present. Every one of our Business Units is represented on this committee. The committee has incorporated environmental criteria in the purchase decisions. One example was the migration to the use of diesel fuel instead of gasoline, which has a higher yield and lower atmospheric emissions. Alex Theissen, Director of Technical Assistance and Supply at FEMSA Strategic Procurement and coordinator of the committee, expressed his great satisfaction at being able to continue finding ways to simultaneously create environmental and economic value. “It would be easy to continue our old procurement strategies based only on price, but today we’re more aware of our commitment to the environment, and we will continue to work on minimizing our footprint. There are solutions that benefit both the company and the environment. They’re not always obvious, so we have to constantly seek them out.” 34 FEMSA Sustainability Report 2009 also important to mention that, in all our operations, the emission of these and other gases strictly complies with relevant laws. Recycling GRI EN26 and EN27 We are aware of the huge impact that recycling practices have on the environment, mainly in reducing the amount of virgin materials used in packaging, some of them created out of non-renewable sources, and reducing waste levels. Recycling can even have social benefits, like job creation. For these reasons, we decided to fund programs in this area that simultaneously generate economic, social, and environmental value. IMER, the PET-recycling plant, began operations in the State of Mexico in 2005, through a joint investment by Coca-Cola FEMSA, ALPLA (a company that makes PET containers), and The Coca-Cola Company. In 2009 alone, the plant increased its production by 30%, recycling 16,000 metric tons of containers. With bottle to bottle recycling technology, IMER produced close to 10,000 metric tons of recycled food-grade resin, 16,000 which was used to produce 1.4 billion new 600 ml bottles with 35% of recycled material. These actions derived in energy savings which, besides canceling the emission of approximately 18,000 metric tons of C02, also reduced the use of non-renewable resources. Due to lightening initiatives, Coca-Cola FEMSA Mexico saved 11,000 metric tons of PET, thus canceling the emission of 70,000 metric tons of greenhouse gas emissions. During more than 10 years, Coca-Cola FEMSA Costa Rica and The Coca-Cola Company have supported the Planet Mission program, which focuses on the topic of recycling and the promotion of an environmental culture. During 2009, 967 metric tons of PET were collected through this program, as well as 2,300 metric tons of other waste materials (plastic, cardboard, wood, glass, and others). MATERIALS OF RECYCLED ORIGIN USED AT COCA-COLA FEMSA IN Input / material Steel Aluminum Cardboard PET Glass 2009 Brazil % Mexico % 42 93 32 53 37 26 23 28 30 44 metric tons of recycled bottles at IMER, the PET-recycling plant in Mexico. ECO-TRUCK GRI EN29 As part of our efforts to reduce emissions, through FEMSA Logística we are continually seeking new ways to optimize the transportation and distribution of our products. Our procurement requirements now include the migration to diesel fuel in our freight vehicles. In 2009, we acquired both electric and hybrid vehicles, which we will test during 2010 for performance under conditions of daily use. We have also developed vehicle technology to optimize space and weight so that we can deliver more product with fewer trips, and with state-of-the-art technology, we eliminated trips with empty vehicles. Today, we can proudly say that FEMSA Logística is an industry leader moving more product with the least possible amount of atmospheric emissions. FEMSA Eco-Truck > Mexico City 35 GRI EN2 Core Area 4 Environmental care FEMSA Logística is continually seeking out solutions to optimize resources and minimize environmental impact. We seek to maximize the useful life of our vehicles’ tires through vulcanization processes; and when it is no longer safe to continue using them, we dispose them appropriately and in accordance to current environmental regulations. In some cases, the tire suppliers themselves accept the old tires for removal and disposal, and in others, waste tires are collected by specialized companies that transfer them to cement companies to be used as fuel in their co-processing furnaces, ensuring that they are used fully and ultimately destroyed. In 2009, an ongoing campaign to collect used batteries and cell phones was carried out through OXXO stores in the cities of Culiacán, Guadalajara, Monterrey, and Puebla. On the other hand, IMBERA collected a total of 550 electric appliances, which were disposed of appropriately for recycling. This was made possible by the assistance of more than 120 volunteers from our offices in San Juan del Río, Querétaro, Mexico. FAMOSA, a company from the Strategic Procurement Area which manufactures metallic packages and actions creating value hermetic enclosures, carried out the FAMOSA Verde program (Green FAMOSA). This program, started by a multi-disciplinary team of 40 employee volunteers, made it possible for the plant at Ensenada, Baja California, Mexico to create a process for optimum waste disposal, in both economic and environmental terms. Waste GRI EN22, EN23, and EN24 Because of our waste management programs, the company registered no significant spills. The companies that integrate FEMSA do not treat, transport, export or import hazardous waste. These are channeled through specialized companies that have the required technology and permits for the appropriate handling of waste. WASTE FROM FEMSA CERVEZA IN MÉXICO Hazardous Lubricating oil Spent solvents Non-Hazardous Cardboard Plastic Barley screenings Tons in 2009 62.9 6.2 10,293.3 20.9 5,267.3 Materials with a useful life “If we don’t act now, it might be too late tomorrow—and I want to be a part of it.” TIENDA INTELIGENTE OXXO ha mostrado su interés por contribuir al medio ambiente implementado en sus tiendas el programa Tienda Inteligente, que consiste en controlar en tiempo real los equipos de iluminación, refrigeración y aire acondicionado a través de una Unidad Central de Procesos. Al cierre de 2009, un XXX% de las tiendas contaron con este sistema. Cristian Alvarado is a young man concerned about the environment that is in his last year of the industrial engineering program at the University of Costa Rica. In one of his courses, he discovered that discarded PET containers are worth a lot more than he thought. That day, a number of ideas took shape: he decided that his graduation project would contribute somehow to improve his country’s environment. The research project led him to information about Planet Mission. He immediately found fertile ground for attaining his objectives. To his surprise, his project idea was welcomed by Coca-Cola FEMSA Costa Rica, which took it from paper and enriched it with practical experience. Six months later, Cristian presented his proposal on optimization of the PET collection system to lower costs and increase the volume collected. He was confident he could contribute to the recovery of waste materials, which still have value and take up unnecessary space in landfills. “In six months, I was able to make an improvement, and I explained it to Coca-Cola FEMSA. Their support has been invaluable, and working with an environmentally-committed company has been a very enriching experience. If we don’t act now, it might be too late tomorrow—and I want to be a part of 36 it,” says Cristian. 36 FEMSA Sustainability Report 2009 As part of our efforts to optimize resources and properly handle waste, OXXO Distribution Centers (CEDIS) have become an industry standard. These centers have succeeded in reducing the amount of waste materials from packaging, and the emissions generated by transportation vehicles. This is done by having suppliers come directly to the CEDIS, where the merchandise is unloaded and organized through “picking,” a process that transfers them to individual baskets that can later be re-used. The cardboard that is generated is re-used in other FEMSA companies as a raw material for making cases, and after the wooden pallets are used for around a year, they are also recycled at the end of their useful life. Environmental culture With the mission of raising awareness about the importance of environmental care as well as encouraging teamwork and family togetherness, employees at FAMOSA in Ensenada, Baja California, Mexico, held a Walk for the Environment in 2009. The event was attended by 250 employees and family members, who enjoyed a day of socializing while collecting trash along Ensenada beaches. Additionally, employees of Coca-Cola FEMSA Venezuela and their families took part in the Beach Cleanup Day. Attendees showed that they could not only set an example for the community by collecting 16 metric tons of trash, but could also enjoy caring for the environment in a family setting. actions creating value Coca-Cola FEMSA Argentina held the Econiño contest, a program that invites children of our employees between 5 and 12 years of age to create art works or objects with PET bottles. Besides promoting creativity and a recycling culture, this initiative is a space for family togetherness. The 57 works were exhibited at our Alcorta plant in Buenos Aires, and winners received various prizes. In 2009, Coca-Cola FEMSA Colombia launched the Taking Care of Me and the Environment program, which consists in the creation of libraries to promote environmental care and the adoption of active and healthy lifestyles among children and young people. The first stage of the program involves the donation of 32 libraries, so that some 20,000 children and young people have access to information related with personal care and the importance of conserving non-renewable natural resources. The OXXO Ecology Award, which begun in 1996 in Monterrey, Mexico and today also takes place in the cities of Chihuahua and Hermosillo, promotes awareness of environmental care and preservation in Mexican schools. Schoolchildren, teachers, and parents organize Ecology Clubs to collect recycling materials, prepare compost, build and maintain school vegetable gardens, clean up public areas, and other activities. In 2009, more than 177,100 children took part in the program. The government of the state of Sonora acknowledged this initiative for its merits in contributing to the protection of the environment. Bags that take care of the planet “...sales people are very conscious that our bags are environmentally friendly.” Members of Equipment Engineering and Purchases Departments at OXXO work diligently to improve processes, and thus minimize the impact of operations on the environment. One project that came up in 2008 was particularly motivating to the work team: they were asked to analyze alternatives to use more environmentally-friendly shopping bags. As a result of their efforts, OXXO introduced oxodegradable bags in 2009, and as a way to show OXXO’s interest in informing the public about the importance of environmental care, the launch was complemented by a campaign on the rational use of plastic bags. “For us, this did not bring savings, or ease of production—in fact, it was a challenge. But the short- and long-term benefits for the environment are worth it,” the OXXO team says. Armando Esquivel, an employee of OXXO in Monterrey, said, “We always ask the customer if they wish to have a bag, and only offer one to those that carry several small items. But sometimes even they don’t want a bag. On the other hand, salespeople are very conscious that our bags are environmentally friendly.” 37 FEMSA Foundation FEMSA Foundation Representatives of the Tecnológico de Monterrey, FEMSA Foundation, and the IDB (from left to right) sign the agreement for the creation of CAALCA. Created in 2008, FEMSA Foundation A.C. is a social investment instrument that supports the conservation and sustainable use of water, as well as the improvement of quality of life within the communities through education, science, and applied technology. Through strategic alliances, FEMSA Foundation supports projects derived from two programs: Sustainable Development of water resources, and Quality of Life with a focus on nutrition and health. Both programs focus on education, science, and applied technology. The first major initiative for the Sustainable Development program was the creation of the Water Center for Latin America and the Caribbean (CAALCA), together with the Inter-American Development Bank (IDB), and the Instituto Tecnológico de Monterrey (ITESM). Throughout 2009, the Center forged various alliances with renowned institutions that contributed significantly to its consolidation, among them, the Instituto Mexicano de Tecnología del Agua (IMTA), the Asociación Nacional de Empresas de Agua y Saneamiento de México (ANEAS), The Nature Conservancy (TNC), and the Asociación Interamericana de Ingeniería Sanitaria y Ambiental (AIDIS). 38 Besides relevant scientific research on the topic of water, CAALCA celebrated its First International Symposium. The most important objective was to inform academics, private companies, and society about the new trends and sustainable solutions regarding water resources, as well as its quality and availability. This symposium gathered academic institutions, private and public organizations, as well as people interested in the topic, in order to spread the knowledge about important aspects regarding water resources. On the other hand, FEMSA Foundation and CAALCA had an important participation in the Water World Week in Stockholm, Sweden, which took place in August 16-22, 2009, on the topic “Accessing Water for the Common Good”. For the first time, this program included a complete day of work, comprising two seminars, with a focus in Latin America. The first seminar, together with TNC, was called “Sustainable Water Fees for Latin America”. The second one, under the name “Perspectives and Challenges derived from the Cooperation among Multiple Actors of the Hydraulic Sector in Latin America”, was organized together with IDB and UN-HABITAT. FEMSA Sustainability Report 2009 Created in 2008, FEMSA Foundation A.C. is a social investment instrument that supports the conservation and sustainable use of water, as well as the improvement of quality of life within the communities through education, science, and applied technology. At both events, important organizations, such as the AIDIS, ANEAS, Comisión Nacional del Agua (CONAGUA), the World Bank, the Superintendencia de Servicios Sanitarios de Perú (SUNASS), the IMTA, and the Association of Water Regulatory Entities of the Americas (ADERASA), were present. For the first time, the Water and Sanitation Award for Latin America and the Caribbean was granted. Created in partnership with the IDB, this award recognizes outstanding work from authorities and water and sanitation operators in Latin America and the Caribbean, and promotes the exchange of ideas and experiences in order to create sustainable solutions to the region’s problems. In its first year, the Drop of Silver Award was granted in three categories: £ Water management £ Water sanitation management £ Solid waste management This year, the winners for the categories above (in that order) were: the Superintendence of Sanitary Services of Chile, the Sanitation Division of the Municipal Intendency of Montevideo, Uruguay; and the Mayor’s office of Londrina, Brazil. In addition to the recognition, winners and finalists received scholarships to take specialized training courses at CAALCA, as well as at other renowned institutions. In 2009, CAALCA coordinated the first phase of a study on Mexican Water Basins, which analyzes the different components of a basin: meteorology, attributes of the capture area, different uses, sources of pollution, treatment systems, and others. During this year, it completely mapped and diagnosed the situation of four of Mexico’s water basins: at Antigua and Río Blanco in the state of Veracruz, San Juan (Pesquería, Pilón, and Santa Catarina) in Nuevo León, and the Cuitzeo Lake in the state of Michoacán. During the next two years, the study will analyze another 10 water basins in Mexico, and propose strate- gies for the conservation and sustainable management of their water resources. For this first phase, a total of US $221,000 were invested by FEMSA Foundation and the Tecnológico de Monterrey in equal share. FEMSA Foundation also supported the first year of a project entitled Ecotecniques on the Valley of Mexico, carried out by the Fondo Pro Cuenca Valle de Bravo, A.C. This initiative, that covers a 10 year period, seeks to preserve the existing forests and the water basin, while working for the wellbeing of the region’s inhabitants. This is done by helping them build basic sustainable technology like water sinks, rainwater capture systems, dry sanitation facilities, wood-saving stoves, and backyard vegetable gardens. These initiatives provide basic services, improve the quality of life, and reduce water pollution and greenhouse gas emissions in three municipalities on the Valley of Mexico, 600 Families will benefit each year during 10 years from the Ecotechniques in the Valley of Mexico project. The project seeks to preserve the existing forests and the water basin, while working for the wellbeing of the region’s inhabitants. This is done by helping them build basic sustainable technology like water sinks, rainwater capture systems, dry sanitation facilities, wood-saving stoves, and backyard vegetable gardens. These initiatives provide basic services, improve the quality of life, and reduce water pollution and greenhouse gas emissions. 39 FEMSA Foundation The Vehicle for Potable Water, that will provide assistance to people affected by natural disasters, will operate in Mexico under the coordination of the Civil Protection Department and will be officially introduced in the second quarter of 2010. In order to provide assistance to people affected by natural disasters, FEMSA Foundation developed during 2009 a project called Vehicle for Potable Water. During this year, and with the support of the Civil Protection Department of the state of Nuevo León, México, the basic needs and requirements of communities in these circumstances were detected. The result was the design of a mobile unit with equipment to generate potable water that has the following characteristics: £ The necessary facilities to treat water in site, gathered from any source, with the capacity to provide up to 50 thousand liters of potable water a day. £ An ice machine that can be used for preserving food and medicine, as well as in cases of fires and other emergencies. £ A power generator that allows the vehicle to operate autonomously for at least during the first 72 hours after its arrival. whose basin provides water to 10% of the population of Mexico City and Toluca. The project will benefit 600 families a year during a period of 10 years, to cover a total of 6,000 families that do not have basic services in the 200 communities of the water basin. This year, FEMSA Foundation has joined The Nature Conservancy, to become part of the group of leading companies, water management operators, and civil and environmental organizations from around the world, that undertake the assignments of the Alliance for Water Stewardship (AWS), a key element to promote the responsible use of freshwater so that it is both socially beneficial and environmentally sustainable. With this purpose, AWS will create a global platform to develop a system of international certification on the sustainable management of water. Additionally, an institution that will embrace the system and will grant the certification on the long term, will be created. FEMSA Foundation and CAALCA will play a fundamental role in the organization of the Latin American regional chapter of AWS. 40 The vehicle, which will operate in Mexico under the coordination of the Civil Protection Department, will be officially introduced in the second quarter of 2010. FEMSA Sustainability Report 2009 In 2009, under the Quality of Life, nutrition and health improvement program, the Fatty Acids and Vitamin D in the School-Age Population of Nuevo León Reaserch was conducted in partnership with Coca-Cola FEMSA, Coromega Company, the Medical School of the Instituto Tecnológico de Monterrey, and the University of Minnesota. The study identified the formal causes of fatty acid and vitamin D imbalances as determinant factor of the quality of life of children in the state of Nuevo León in Mexico. This study is the first one of its kind in the region. We also forged an alliance with the IDB’s Opportunities for the Majority initiative and with the Global Alliance for Improved Nutrition (GAIN), a Swiss-based organization. The alliance objective is to finance a study to provide the private sector with a diagnosis and solutions for malnutrition in Latin America. The study will include activities in Mexico, Central America, Ecuador, Peru, and Brazil. The results will describe the positive impact that the identified business solutions will have on the improvement of nutrition in low-income communities. Furthermore, the identified solutions could be scaled to take them to other countries in the region. The first results of this study will be obtained by mid-2010. As part of the strategic impulse to education, science, and applied technology, we continued to support the FEMSA Biotechnology Center. In 2009, a project with a unique process in the world and of great relevance was promoted: the development of a vaccine for the A H1N1 virus, that also reduces the need for major facilities, time, and costs by more than 50%. Through synergies with world-class institutions and the support of projects with a true potential to pass on a legacy for change, FEMSA Foundation has started working in various regions of Latin America. For FEMSA Foundation, doing something today that can turn into a legacy to benefit communities in the long-run, represents an investment for the welfare of all. 2009 FEMSA Foundation has joined The Nature Conservancy, to become part of the group of leading companies, water management operators, and civil and environmental organizations from around the world, that undertake the assignments of the Alliance for Water Stewardship, a key element to promote the responsible use of freshwater so that it is both socially beneficial and environmentally sustainable. 41 Global vision Our value-based organizational culture is rooted in a humanist philosophy that recognizes that there is no economic consideration that stands above human dignity. At FEMSA, we place special importance on bringing our corporate DNA to all the territories where we operate. Today, we have the privilege of sharing and continually enriching our corporate culture and our Social Development Scheme, promoting the integral development of our employees and their families, in nine countries. 42 FEMSA Sustainability Report 2009 Argentina 2009 Employment (1): Investment Ps. (2) million Investment (2) US $ million Social programs •Education programs •Family development programs •Health and sports programs Wastewater treatment plants Investment in Social Responsibility Programs (3) •Millions of Mexican Ps. •US $ thousands People benefited 1 2 3 $ $ $ $ 3,934 1,235.0 91 15 4 7 4 2 2.8 211.3 20,716 Includes external personnel In 2009, Mercosur region including Argentina and Brazil Quality of Life, Health and Wellness, Community Engagement, and Environmental Care GRI LA10 and LA11 Quality of life in the company MBA in Company In 2009 a group of 41 employees at Coca-Cola FEMSA Argentina took part in the MBA in Company program given by the Business Management School of the University of Argentina. School assistance To support the education of our employee’s children, we distributed 1,600 packets of school supplies in 2009, aimed at children currently in pre-school, elementary, and high school. Health and wellness Healthy Space and Health 100 A gymnasium was built at the Alcorta Plant in Coca-Cola FEMSA Buenos Aires. It encourages healthy living habits and physical activity among our employees, giving them access to exercise facilities and equipments at their work place. A number of internal communication campaigns, like Health 100, led more than 200 employees to take advantage of the space. GRI 4.12 and EN26 Environmental care Supporting the community through paper and plastic cap recycling To raise funds for the comprehensive development of the Garrahan Pediatric Hospital and raise awareness about environmental care, Coca-Cola FEMSA joined the campaign to collect waste paper and plastic caps. In 2009, our operations collected a total of 120 metric tons of paper and 2,500 plastic caps from soft drink and water bottles. Reduction in water consumption Through the introduction of new technologies and the concerted efforts of our manufacturing areas, in 2009 we succeeded in reducing the amount of water consumed in our operations by 6.5% compared to 2008. Family visits and Vacation Festival As part of our initiatives toward family togetherness aimed at employees, Coca-Cola FEMSA Argentina conducted 165 guided Family Visits to our plants. Also, 400 employee children took part in a week-long program of recreational activities and open-air fun. Training In 2009, around 10,000 hours of training were provided to 1,100 employees through more than 60 activities, in topics related to the procurement chain, manufacturing, administration, finance, sales, and distribution, among others. 43 Global vision Brazil 2009 Employment (1): Investment Ps. (2) million Investment (2) US $ million Social programs •Education programs •Family development programs •Health and sports programs Wastewater treatment plants Investment in Social Responsibility Programs (3) •Millions of Mexican Ps. •US $ thousands People benefited 1 2 3 $ $ 15,493 $ $ 1,235.0 91 6 4 1 1 11 6.2 460.5 46,646 Includes external personnel In 2009, Mercosur region including Argentina and Brazil Quality of Life, Health and Wellness, Community Engagement, and Environmental Care Quality of life in the company Family Day Family Day, a tradition in Brazil since 2002, promotes family togetherness and company values through integration activities, performances, and sports competitions, among others. In 2009, the events held in 15 cities where FEMSA operates, were attended by 45,000 employees and family members. FEMSA Women of Value In Brazil, the FEMSA Women of Value Program has been working since 2007 in holding workshops, theater performances, and personal development events that promote the company’s values among the wives of our employees. In 2009 more than 1,300 women came together. FEMSA Station In 2009, more than 1,000 children of our employees from the Manaus, Cuiabá, Pacatuba, Belo-Horizonte, and Montes Claros plants took part in the FEMSA Station program. It was a whole day of activities to promote togetherness, family integration, and company values, and to create awareness about the importance of a healthy lifestyle and sustainability, among others. FEMSA Jr. This is a program in which employees’ sons and daughters who are studying a professional degree can work in internship programs within the company. This year, 12 students participated in this initiative, which allowed them to complement their studies with the practical experience in the working world. FEMSA Youth Camp To integrate our employees’ children, we held the FEMSA Youth Camp. The 2009 edition provided educational and recreational activities to over 500 young people. 2009 Drawing Contest Children of employees of our Coca-Cola FEMSA facilities in Brazil participated in the 2009 Drawing Contest, this year with the theme, Join in and Care for the Environment. Out of 1,300 entries, four winners were selected for publication in our 2010 calendar. Health and wellness Crystal Running Team The Crystal Running Team race is organized to promote family togetherness and good sports habits. This year, more than 500 employees and family members took advantage of the benefits of sports in a family setting. Healthy Day More than 130 Coca-Cola FEMSA associates took advantage of the benefits of medical checkups and informational workshops offered during our annual Healthy Day event. 44 FEMSA Sustainability Report 2009 GRI 4.12 and EC8 Community engagement Education for Work This program provides young people the opportunity to develop tools for joining and advancing within the working world. In 2009, more than 260 young people attended from the cities of Ipiranga, São Paulo, and Jurubatuba. Additionally, the top students were given the opportunity to work in the company for six months. Valuing Young People Through this initiative, more than 1,000 young people from low-income families had the opportunity to improve their self-esteem and socialization habits. Participants had access to psychological support workshops and various integration activities. Dancing Coke Created at the suggestion of a disabled student, Dancing Coke has been held every year since 2000. The event, which is supported by Coca-Cola FEMSA Brazil, involves a series of social gatherings in discotheques that are fully accessible to disabled youth. In 2009, more than 760 disabled young people attended these events. Citizens’ Place In 2009, through a program called Plaza Ciudadana, (Citizens’ Place) we offered free access to health services, legal advice, consumer advocacy information, and other important services to more than 3,500 people from the communities of Jacareí and Gravataí. FEMSA Award to the Children and Youth Theater and FEMSA Goes to the Theater In 2009, the 16th annual FEMSA Award to the Children and Youth Theater was given in recognition of theater plays aimed at the young audience. In parallel, the FEMSA Goes to the Theater program invited more than 5,800 children to enjoy the experience of live stage performance. FEMSA Art Collection In 2009, the exhibit Latitudes: Latin American Masters was held at the Tomie Ohtake Institute in São Paulo, the National Museum in Brasilia, and the Oscar Niemeyer Museum in Curitiba. More than 98,500 people had the opportunity to admire the work of outstanding artists such as Frida Kahlo, Fernando Botero, and Diego Rivera, among others. The FEMSA Art Collection, one of the largest in Latin America, has more than 1,100 works of modern and contemporary Latin American art. GRI EN13 Environmental care Água das Florestas Tropicais As part of the Água das Florestas Tropicais project, during 2009, 300,000 trees were planted in the Sierra de Japi in São Paulo, with our support. Integral development of the value chain In 2009, close to 6,000 retailers strengthened their businesses through a training program that included modules on customer service, management improvements, and other themes important to their development. 45 Global vision Central America 2009 Employment (1): Investment Ps. (2) million Investment (2) US $ million Social programs •Education programs •Family development programs •Health and sports programs Wastewater treatment plants Investment in Social Responsibility Programs (3) •Millions of Mexican Ps. •US $ thousands People benefited 1 2 3 $ $ $ $ 5,345 2,524.4 186 297 278 7 12 4 3.2 239.3 11,160 Includes external personnel In 2009, Latincentro region including Central America, Colombia and Venezuela Quality of Life, Health and Wellness, Community Engagement, and Environmental Care GRI LA11 Quality of life in the company Plant visits In order to promote that family members are familiar with the activities of our employees, Coca-Cola FEMSA Nicaragua held weekly visits to our facilities during 2009. Back to school In order to support the personal development of employees, the manufacturing area of Coca-Cola FEMSA Costa Rica, together with the Employees Solidarity Association, implemented the Back to School program. This initiative gave 34 employees the opportunity to finish their high school education. GRI 4.12 Health and wellness Health through sports To promote health care and encourage physical activity, Coca-Cola FEMSA Nicaragua organized various activities in 2009, like the Soccer Tournament and an Aerobics program joined by close to 300 employees. Get into the Game In 2009, a program called Apúntate a Jugar (Get into the Game) introduced by Coca-Cola FEMSA Nicaragua and Panamá, in partnership with the Ministries of Education, encouraged physical activity among more than 2,000 schoolchildren through age-appropriate dynamics and games. GRI EN29 Environmental care Fuel efficiency campaigns To improve the fuel efficiency of our fleet of vehicles, a program of major engine repair was carried out in Coca-Cola FEMSA Costa Rica, Guatemala, and Nicaragua. In Guatemala alone this program saved more than 195,000 liters of gasoline, directly improving the amount of emissions produced by our vehicles. Fleet upgrade At Coca-Cola FEMSA Panama, we invested in upgrading our fleet of vehicles, bringing in new vehicles that optimize fuel efficiency, directly benefiting the atmosphere. Planet Mission Coca-Cola FEMSA Costa Rica supports the Planet Mission program, which focuses on recycling and the promotion of an environmental culture. In 2009, an important activity was the Beach Cleanup Day in the region of Tivives in Puntarenas, where 360 employees and their families participated, collecting 967 metric tons of PET and 2,300 metric tons of other waste materials (plastic, cardboard, wood, glass, and others). 46 FEMSA Sustainability Report 2009 Colombia 2009 Employment (1): Investment Ps. (2) million Inversión (2) US $ millones Social programs •Education programs •Family development programs •Health and sports programs Wastewater treatment plants Investment in Social Responsibility Programs (3) •Millions of Mexican Ps. •US $ thousands People benefited 1 2 3 $ $ $ $ 8,413 2,524.4 186 56 5 3 48 6 9.9 735.4 828,700 Includes external personnel In 2009, Latincentro region including Central America, Colombia and Venezuela Quality of Life, Health and Wellness, Community Engagement, and Environmental Care Health and wellness High Presidential Council for Reintegration, placed at the service of communities in 12 municipalities in the country, long-distance learning platforms developed by the Instituto Tecnológico de Monterrey. Computers for educating This program, carried out by Coca-Cola FEMSA in an alliance with the Ministry of Communications, The Coca-Cola Company and other partners, donates computer equipment to underfunded schools. In 2009, this program gave 12,000 students access to educational tools that allowed them to make the most of their academic environment. Quench your Reading Thirst Through this program, we promote the habit of reading among boys and girls in Colombia’s disadvantaged communities. To make this possible, we train public school teachers by providing various pedagogical tools that promote reading, and delivering support materials to mobile libraries. The Quench your Reading Thirst program benefited more than 18,000 Colombian schoolchildren in 2009. GRI 4.12 Live Positively Through nutritional counseling and interactive stands providing general information on our products, Coca-Cola FEMSA offered the general public information on the content and consumption of carbonated beverages. Through these forums, information on healthy lifestyles was provided to more than 12,300 attendees. GRI 4.12 Environmental Care Capellanía Wetlands Since 2008, Coca-Cola FEMSA Colombia has been working in partnership with the Ministry of the Environment and other companies in restoring the Capellanía Wetlands in Bogotá. In 2009, a three-day cleanup effort involved neighboring communities. Community engagement Time Bank Coca-Cola FEMSA Colombia was the first company to support the Time Bank program. The initiative promotes the social reintegration of former members of Colombia’s guerrilla movement and of paramilitary groups. In 2009, more than 100 volunteers from the company, donated their time to help people develop skills and know-how for setting up their own businesses. In 2009, Time Bank graduated its fist class of 23 participants; and after two years of operation in Bogotá, it was extended to Medellín, Montería, and Valledupar, with the support of 480 volunteers. Another achievement was the agreement of 20 other companies to join this initiative. Community learning centers Through the installation of Community Learning Centers, Coca-Cola FEMSA Colombia, in partnership with the 47 Global vision Mexico 2009 Employment (1): Investment Ps. million Investment US $ million Social programs •Education programs •Family development programs •Health and sports programs Wastewater treatment plants Investment in Social Responsibility Programs (2) •Millions of Mexican Ps. •US $ million People benefited 1 2 $ $ $ $ 85,364 9,514 701 955 165 226 376 26 1,173.9 86.4 8,895,359 Includes external personnel Quality of Life, Health and Wellness, Community Engagement, and Environmental Care Quality of life in the company Support and recognition of academic performance Through various initiatives, FEMSA companies recognized academic excellence among the children of our employees. Niños KOF, a Coca-Cola FEMSA program carried out in 2009, recognized more than 5,500 students, and in the history of the program has recognized the academic achievement of more than 18,000 chil- dren and young people. Meanwhile, FEMSA Comercio awarded the CuadernOXXO prize to 25 young people, distributing backpacks and school supply kits. Additionally, FEMSA Logística distributed the Knowledge Prize to 55 children of employees who had attained a grade point average of more than 9.0 out of 10. FEMSA companies also participated in scholastic support programs and the distribution of school supplies to help our employees defray educational expenses. Summer programs During the summer vacation period, Coca-Cola FEMSA and FEMSA Empaques led various programs aimed at employees’ children. The activities were attended by close to 8,300 children and young people. Health and wellness Charting my Own Destiny This program is aimed at encouraging young people to develop skills for making better decisions in all aspects of their lives. Through hands-on experience and reflection, students develop social and cognitive skills and emotional self-control. In 2009, we reached 459,000 students in public and private schools in the states of Campeche, Chihuahua, and Nuevo León in Mexico. Since its inception in 2007, Charting my own Destiny has touched the lives of 515,000 young people, and based on its encouraging results, it was made a flagship program, so that it can be expanded to more Mexican states and other countries in Latin America. Sports tournaments To encourage healthy cooperation and camaraderie, our employees took part in various sports tournaments in 2009, including bowling and soccer tournaments at FEMSA Comercio, FEMSA Empaques, and FEMSA Cerveza, involving more than 8,800 employees. Safe Worker To motivate our employees to be safe on the job, FEMSA Logística created an award called Safe Worker. This program recognizes workers who have an accidentfree track record at the company. In 2009, 75 of our employees received this award. 48 FEMSA Sustainability Report 2009 Coca-Cola Cup Sponsored by The Coca-Cola Company and bottlers of The Coca-Cola system, the Coca-Cola Cup is a soccer tournament held in Latin America. In 2009, from Mexico alone, 85,000 children participated, of which 13,600 took part in the more than 850 Coca-Cola FEMSA teams. Community engagement Conductor Designado® (Designated Driver) Since 2002, Cervecería Cuauhtémoc Moctezuma has implemented a program in Mexico called Conductor Designado® (Designated Driver), aimed at creating awareness among drivers to refrain from drinking before they get behind the wheel. In 2009, more than 40,200 drivers registered to sum 175,800 drivers since 2002. Sports volunteers Through this program, 38 enthusiastic employees from Cervecería Cuauhtémoc Moctezuma donated more than 1,580 hours to transmit corporate values through sports activities to a group of 86 children from the municipality of Santa Catarina, in Nuevo León, Mexico. PRO OXXO continued to support its rounding-up program in its more than 7,300 stores in Mexico. Through this program, and thanks to the generosity of clients who agreed to round up their checkout ticket to the nearest peso, we were able to support a number of NGOs involved in environmental care, health, and social assistance, among other fields. In 2009, our clients donated US $5.2 million, which supported 187 institutions in 60 cities. Since PRO began in 2002, OXXO has channeled US $24.9 to 877 institutions. GRI EN26 Environmental care Oxodegradable bags In 2009, we introduced oxodegradable bags, an environmentally-friendly form of packaging in all of our OXXO stores in Mexico. We also continued to promote the rational use of these bags among clients. Rainwater capture FEMSA Cerveza introduced new technologies in the production process which allow for the capturing of rainwater. In 2009, this program was introduced in the Toluca and Guadalajara operations and, as a result, 41,600 cubic meters of water were saved. OXXO Ecology Award The OXXO Ecology Award, which begun in 1996 in Monterrey, Mexico and today also takes place in the cities of Chihuahua and Hermosillo, promotes awareness of environmental care and preservation in Mexican schools. Schoolchildren, teachers, and parents organize Ecology Clubs to collect recycling materials, prepare compost, build and maintain school vegetable gardens, clean up public areas, and other activities. In 2009, more than 177,100 children took part in the program. Continuous training for retailers Through the Continuous Training for Retailers program, Coca-Cola FEMSA supports the development of retailers in its traditional sales channel. The program gives retailers the opportunity to become micro business owners, therefore improving their business. In 2009, employees from the company volunteered as instructors, training 250 people during 90 days. 49 Global vision Venezuela GRI 4.12 2009 Employment (1): Investment Ps. (2) million Investment (2) US $ million Social programs •Education programs •Family development programs •Health and sports programs Wastewater treatment plants Investment in Social Responsibility Programs (3) •Millions of Mexican Ps. •US $ thousands People benefited 1 2 3 $ $ $ $ 8,176 2,524.4 186 44 10 4 30 2 6.2 460.2 274,885 Includes external personnel In 2009, Latincentro region including Central America, Colombia and Venezuela Quality of Life, Health and Wellness, Community Engagement, and Environmental Care GRI LA11 Quality of life in the company School for Business Excellence With this initiative, all the training activities taught on site are consolidated under one program. In 2009, US $1.5 million were destined to this program. Health and wellness Valencia Manufacturing and Logistics Olympics 2009 In 2009, under the slogan “Say Yes to Sports and NO to drugs,” Coca-Cola FEMSA Venezuela held its first Manufacturing and Logistics Olympics in Valencia in 2009. Over a three-day period, more than 300 employees from our central offices and plants at Antímano, Barcelona, Maracaibo, and Valencia took part in basketball, volleyball, indoor soccer, and other tournaments. Vamo’ a Jugá’ Since 2009, Coca-Cola FEMSA Venezuela has supported a program run by The Coca-Cola Company called Vamo’ a Jugá’ (Let’s Play). The program promotes sports and encourages children from underprivileged communities to develop their skills and discover their talents. In addition to attending baseball clinics and gaining practical experience with professional ball players, participants receive a sports kit, a printed manual with technical basics on playing this popular sport, and an attendance certificate. A series of workshops for coaches were also held. In 2009, the program reached close to 1,000 children from Caracas and elsewhere in the country, and in 2010 we expect to benefit more than 10,000 young people through the same program. Community engagement El Nacional in the Classroom With the aim of promoting reading for young people and teach them about different literary genres, in 2009, Coca-Cola FEMSA supported a program called El Nacional in the Classroom. The program involved mass publication of educational material that invited readers to become aware and learn more about the various types of literature. GRI 4.12 and EN13 Environmental care Beach cleanup days Employees of Coca-Cola FEMSA Venezuela and their families took part in the Beach Cleanup Day. Besides collecting 16 metric tons of trash, attendees showed that caring for the environment can be enjoyed with the family. 50 FEMSA Sustainability Report 2009 GRI 2.5, 2.9, 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.8, 3.10, 3.11, and 3.13 About this report This is our fourth Sustainability report, being the most recent after the publication of our 2008 report which informedde on Vida the actions on that period. Since Calidad en lataken Empresa 2008, we have assumed the commitment of publishing the main results of our social responsibility programs on Xxxxxx an basis. Tueannual tin henisis dunt ulput adit verilit, quat, vulla facin utet wisis ercilluptat. Duis at, conse dolorem eum quamet alitthis vel dit ex essit we eugiam delitthe nisi results te vel ing eu In document discuss of eliquam corporate feugue tat prat euissim do duipis augue eugue facillaore social responsibility programs conducted in 2009 in the doluptat num quis erci tewe moluptatie ute facip essecte nine countries where operate: vel Argentina, Brazil, min esequis ismoloreros niamconulla feu facincipis nulpu. Colombia, Costa Rica, Guatemala, Mexico, Nicaragua, Panama, and Venezuela. It includes information on Salud Bienestar our threey business units: Coca-Cola FEMSA, FEMSA Cerveza, and FEMSA Comercio, as well as the StrateCaimaneras de Béisbol gic Procurement Area, which includes FEMSA Logística A través de la organización de torneos deportivos gratuiand FEMSA Empaques. It los does not include information on tos para promover entre jóvenes el deporte y los vanon-core businesses with less than one year old. In the lores, el programa Caimaneras de Béisbol de Coca-Cola period by this there were no significant FEMSAcovered Venezuela, llegóreport, este año a XXXXX personas en changes size, structure, ownership the comeste país.inElthe programa incluye,orademás de laofentrega de reconocimientos a believe los participantes, clínicas deportivas pany, so we do not there are any impediments to impartidas por beisbolistas destacados. full comparability against the 2008 report. corroborated this through subjects of interest raised by our various stakeholders through a number of communication channels, and confirmed them through an analysis of sustainability reports by other leading companies engaged in the same industries. Cuidado ambiente Figures in USdel $ aremedio based on the average exchange rate during 2009: US $1.00 = Ps $13.5723. Jornadas de Limpieza de Playas Colaboradores de Coca-Cola FEMSA Venezuela y sus faFor financial results, such as total revenue, income from milias, participaron por xx año consecutivo en la Jornada opertions, and net income, the exchange rate was that de Limpieza de Playas. Además de convertirse en ejemplo as in order to be consistant paraofsuDecember comunidad,31, los 2009, asistentes demostraron que en fawith thepuede financial reports submitted to theambiente. New York milia se disfrutar del cuidado del medio and Mexican Stock Exchange. Because of the nature of its activities as a non-profit organization, we have presented in a separate chapter a summary of the main activities of FEMSA Foundation. In a fourth section, we offer a summary of the main activities and figures in each of the countries where FEMSA operates. To conclude, followed by the GRI indicators index, we provide a list of recognitions received in 2009, and a public statement of our support for the 10 principles of the United Nations Global Compact. For the second year in a row, our reporting methodology followed the indicators recommended by the Global Reporting Initiative (GRI G3), which are today the standard indicators in the industries in which we participate. This year we added 40 indicators to those reported last year, when we reported a total of 64 indicators. To define the content of this report, we followed two criteria: the first was to report information on the same indicators included in the 2008 document, and the second, to include indicators that are material to our business. We Furthermore, and for the purposes of clarity, we have presented the information in four sections: the first contains a message by our Chairman of the Board and Chief Executive Officer, followed by a description of the company, its foundations, values, and business philosophy. The second section describes the four core areas of our corporate social responsibility scheme: Quality of life in the company Health and wellness Community engagement Environmental care As part of our process of ongoing improvement, this report is the first to have been checked by the GRI, thus validating adherence to the indicators. For the second year in a row, our reporting methodology followed the indicators recommended by the Global Reporting Initiative (GRI G3), which are today the standard indicators in the industries in which we participate. 51 GRI 3.12 GRI Index Index of Global Reporting Initiative (G3) indicators GRI Indicator Contents 1. 1.1 1.2 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.10 3.11 3.12 3.13 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 Page Strategy and analysis Statement of the Chairman of the Board and Chief Executive Officer 2 Impacts, risks, and opportunities 2 Company profile Name Inside back cover Brands, products and/or services Foldout Operating structure Foldout Headquarters 4 Countries where the company operates Foldout and 51 Nature of ownership and legal form Foldout and 9 Markets served Foldout Scale of the reporting organization Foldout Significant changes during the reporting period 51 Awards received Inside back cover Report parameters Reporting period 51 Date of most recent previous report 51 Reporting cycle 51 Contact point Inside back cover Process for defining report content 51 Boundary of the report 51 Specific limitations on the scope of the report 51 Basis for reporting on joint ventures Foldout and 51 Effect of any re-statements of information in earlier reports 51 Significant changes from previous reporting periods 51 Content index 52 External assurance 51 and Inside back cover Governance, commitments, and engagement Governance 9 Governance 2 Governance 9 Governance 9 Governance 9 Governance 8 Governance 9 Mission or values, codes of conduct, and relevant principles 8 Governance 9 Processes for evaluating highest governance body’s performance 9 Precautionary principle 9 Economic, environmental, and social charters, 7, 8, 19, 22, 28, principles, or other initiatives 43, 45, 46, 47, 50, and Inside back cover 4.13 Presence in associations 7 4.14 Stakeholders 6 4.15 Stakeholders 6 4.16 Stakeholders 6 4.17 Stakeholders 6 Economic performance Disclosure on Management Approach Foldout, 4,8,22,25 and 26 EC1 Direct economic value Foldout, 4, and 22 EC2 Financial implications, risks, and opportunities due to climate change n/a(1) EC3 Benefit plan obligations 15 EC4 Significant financial assistance 26 EC5 Entry level wage 15 EC6 Suppliers 25 EC7 Procedures for local hiring 12 EC8 Infrastructure investments and services provided primarily for public benefit 22, 24, and 45 EC9 Indirect economic impact 4 Environmental performance Disclosure on Management Approach Foldout, 5, 28-41 EN1 Materials used by weight or volume n/a(2) EN2 Recycled input materials 36 EN3 Direct energy consumption by primary source n/a(2) EN4 Indirect energy consumption by primary source n/a(2) EN5 Energy saved 31 EN6 Energy-efficient or renewable energy based products 32 EN7 Initiatives to reduce indirect energy consumption 32 EN8 Total water withdrawal by source n/a(3) EN10 Water recycled and reused 30 (1) (2) (3) (4) (5) GRI Indicator Contents Page EN11 EN12 EN13 EN14 EN15 EN16 EN18 EN19 EN20 EN21 EN22 EN23 EN24 EN25 Land adjacent to protected areas 31 Significant impacts of activities on biodiversity in protected areas 31 Habitats protected or restored 31, 45, and 47 Strategies for managing impacts on biodiversity 31 Number of species affected by operations 31 Total greenhouse gas emissions 33 Initiatives to reduce greenhouse gas emissions 31 Emissions of ozone-depleting substances 33 NOx, SOx and other significant air emissions 33 Total water discharge 30 Total weight of waste 36 Total number and volume of significant spills 30 and 36 Hazardous waste 36 Status and biodiversity value of water bodies affected by discharges of water and runoff 30 EN26 Initiatives to mitigate environmental impacts 28, 30, 35, 43, and 49 EN27 Reclamation of packaging materials 35 EN28 Monetary value of significant fines 9 EN29 Environmental impacts of transporting products 34, 35, and 46 EN30 Environmental investment 28 Labor practices and decent work Disclosure on Management Approach 5,8-19 LA1 Employment Foldout and 12 LA2 Employment Foldout LA4 Collective bargaining agreements 12 and 14 LA5 Notice period(s) regarding operational changes, including whether it is specified in collective agreements n/a(2) LA6 Workforce represented in health and safety committees 14 and 18 LA7 Rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities n/a(2) LA8 Health education 18 LA9 Health and safety topics in agreements 18 LA10 Training 13 and 43 LA11 Skills management and lifelong learning 13, 15, 43, 46, and 50 LA12 Employees receiving performance and career development reviews 15 LA13 Diversity indicators 9, 12, and 13 LA14 Ratio of basic salary of men to women by employee category n/a(2) Human rights Disclosure on Management Approach 5,8-16,18,19 and 26 HR1 Investment agreements that include human rights clauses n/a(4) HR2 Suppliers and contractors that have undergone screening on human rights n/a(4) HR3 Employee training in human rights 14 HR4 Incidents of discrimination 9 HR5 Risks and actions to support freedom of association 14 HR6 Risks for incidents of child labor 26 HR7 Risks for incidents of forced labor 26 HR8 Security personnel trained in human rights 14 HR9 Violations to rights of indigenous people 9 Social performance Disclosure on Management Approach Foldout, 5-9 and 22 SO1 Programs to assess impacts of operations on communities 22 and 24 SO2 Risks related to corruption 8 SO3 Employees trained in anti-corruption policies 8 SO4 Actions taken regarding incidents of corruption 9 SO5 Public policy and lobbying 7 SO7 Anti-competitive behavior, anti-trust, and monopoly practices 9 SO8 Fines and non-monetary sanctions for non-compliance with laws 9 Product responsibility Disclosure on Management Approach 4-9 PR1 Life cycle stages in which health and safety impacts of products and services are assessed n/a(5) PR2 Non-compliance with regulations of health and safety impacts of products 6 PR3 Product and service information 6 PR4 Product and service information 6 PR5 Practices related to customer satisfaction 6 PR6 Adherence to laws related to marketing communications 6 PR8 Customer privacy 9 PR9 Monetary value of fines for non-compliance with laws and regulations concerning the provision and use of products and services 9 We have no quantified data, although we are working on the detection of risks and opportunities to face the consequences of climatic change. Not available as we are in the process of homologating the information in the various operations in the different countries. Currently considered as confidential information. This information is not monitored regarding percentage and number, although we maintain strict controls to promote compliance with our Code of Business Ethics and Corporate Policies, and promote that reports be made in case of non-compliance. Because of the diversity of our products and the nature of each Business Unit, this information is not available at present. However, we strictly comply with the regulations related to the impacts our products might have regarding the health and safety of our clients. 52 FEMSA Sustainability Report 2009 GRI 2.10 Social Responsibility Recognitions 2009 FEMSA Socially Responsible Company (CEMEFI) Ethics and Values in the Industry (CONCAMIN) Best Social Responsibility Practices by a Business. Environmental Category (CEMEFI) Educational Leadership (Worldfund) FEMSA Cerveza Mexico Socially Responsible Company (CEMEFI) Best Social Responsibility Practices by a Business. Environmental Protection and Responsible Consumption Category (CEMEFI) Clean Industry (PROFEPA) Coca-Cola FEMSA Mexico Argentina Brazil Colombia Nicaragua Socially Responsible Company (CEMEFI) Clean Industry (PROFEPA) Great Place to Work (Great Place to Work Institute) Planet Trophee (The Coca-Cola Company) Time Bank Award (President’s Office) In Favor of Peace (Ministry of Commerce, Industry and Tourism, Konrad Adenauer Foundation and GTZ) Regional Award for the Cleanest Operation (Cleanest Operation Center) FEMSA Comercio Socially Responsible Company (CEMEFI) Recognition to the OXXO Ecology Award (Government of the State of Sonora) Strategic Procurement Area FEMSA Empaques FEMSA Logística Socially Responsible Company (CEMEFI) Clean Industry (PROFEPA) Exports Award (Government of the State of Querétaro) Socially Responsible Company (CEMEFI) National Safety Award (ANTP) Safe Industry (STPS) GRI 4.12 Support for United Nations Global Compact We ratify our support for the 10 Principles of the United Nations Global Compact: Human rights Principle I: Businesses should support and respect the protection of internationally proclaimed human rights. Principle II: Business should make sure that they are not complicit in human rights abuses. Labour conditions Principle III: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle IV: Businesses should uphold the elimination of all forms of forced and compulsory labor. Principle V: Businesses should uphold the effective abolition of child labor. Principle VI: Businesses should uphold the elimination of discrimination in respect of employment and occupation. Environment Principle VII: Businesses should support a precautionary approach to environmental challenges. Principle VIII: Businesses should undertake initiatives to promote greater environmental responsibility. Principle IX: Businesses should encourage the development and diffusion of environmentally friendly technologies. Anti-corruption Principle X: Businesses should work against corruption in all its forms, including extortion and bribery. GRI 2.1 and 3.4 CONTACT IN FORMATION FEMSA Corp orate Com munity Affai Communicat rs and Social Respo Carolina Alvea ions nsibility r Sevilla Jaime Ka Toussaint Elos úa Anik Varés Le al Phone: (52) 81-8328-6 148 Fax: (52) 81 -8328-611 comunicacio 7 n@fe rla Torres Eliz ondo Phone: (52) 81-8328-6 046 Fax: (52) 81 -8328-611 7 e-mail: msa.com FEMSA (Fom ento Económ ico Mexica General Ana ya 601 Pte. C no S.A.B. DE C.V.) ol. Bella Vista Monterrey, N uevo León M éxico C.P. 64 410 www .femsa.com sustainability report 2009 General Anaya 601 Pte. Col. Bella Vista Monterrey, Nuevo León México C.P. 64410 www.femsa.com