a part of our
Business Strategy G4-19, G4-20, G4-21

At FEMSA, we continue to develop best practices of social and environmental Sustainability.

Conducting our actions and decisions with a sustainable approach contributes to achieving our mission.

At FEMSA, we understand Sustainability as the capability to generate the social, environmental and economic conditions needed to operate today and grow over time in harmony with the environment, with actions based on Our Ethics and Values and focused on Our People, Our Planet and Our Community. By acting and making decisions with a sustainable focus, all of us working at FEMSA can help make the company’s mission —to generate economic and social value— a living practice in this organization.

Sustainability for FEMSA
FEMSA’s Strategic Sustainability Framework enables us to direct and focus our actions, programs and initiatives toward those aspects where we can maximize value generation according to its importance to our stakeholders and the success of our companies.

This Framework that guides us today is the result of a process we carried out in 2012 to determine the materiality, or relevant aspects, of our FEMSA Sustainability Strategy. The process involved an analysis of our Business Strategy, risks, trends in the industry and the surrounding environment, as well as interviews with executives of FEMSA’s Business Units and representatives of our stakeholders. We also identified best practices among the world’s leading organizations in terms of sustainability.

Strengthening Sustainability in a changing environment
Aware that our company is constantly growing and operating in an increasingly diverse range of industries, in 2016 we conducted several diagnoses to evaluate the progress of FEMSA’s Strategic Sustainability Framework, to help keep our material issues up to date:

  1. We conducted an analysis of FEMSA’s Strategic Sustainability Framework to identify opportunities for improvement to increase our social and business impact.
  2. We implemented an Environmental Profit and Loss Analysis (EPLA) at FEMSA to quantify and monetize the environmental impact of FEMSA, its Business Units and its value chain. The study covers impacts by suppliers, direct operations, clients and consumers, providing us with relevant information for our decision making processes.
  3. We improved our dialogue with stakeholders through an evaluation and strategic consultation process, which will enable us to increase the value of our interactions with them.

The findings and results of these initiatives will help us strengthen our FEMSA Strategic Sustainability Framework and ensure its integration to the business strategy of each of our companies, taking into account the competitive environment, trends and industry risks we face.

In addition to these actions, we are working on integrating Sustainability into business processes, supporting the adoption of this focus. We want this to become an atribute of our culture and basic criteria in decision-making. We are therefore focusing our efforts on strengthening Sustainability as an organizational capability.* In 2016, we worked on each one of its components:

* A combination of organizational elements, talent, processes and technology that provide the company a competitive edge, generating value in a sustainable manner.
  • Organization: We know that having standard policies and values that favor decision-making with a sustainable focus is key for strengthening this capability. One example of this is the development of our Anti-Corruption Policy, to be applied throughout the organization starting in 2017 and which contributes to the practice of our Code of Business Ethics.
  • Talent: We are designing a sustainability enabling strategy for employees and leaders, with the purpose of increasing awareness and understanding of how we can integrate the Sustainability focus into the business.
  • Processes: Sustainability management requires processes that enable us to articulate the efforts made at FEMSA. Some examples of this are the Model for Addressing Risks and Relations with the Community (MARRCO) and processes for managing non-financial information.
  • Technology: To facilitate the processes by which we incorporate this Sustainability focus, we need tools and systems. One example is our Sustainability Information System, which consolidates information on all our Business Units and facilitates the management of initiatives in this area.

Being consistent in our efforts and actions to continue generating economic and social value will be key in gradually making Sustainability a distinctive and lasting feature of our company.

The challenges of the environment require us to evolve and strengthen our processes.