Planet

We minimize the environmental impact of our operations.

G4-DMA, EN-31, GC VII, VIII and IX

Generating value in harmony with the environment is a fundamental part of our Sustainability Strategy, therefore we are constantly working on improving our processes, reducing and making efficient use of the resources we need to operate. We invested $963 million MXN (USD $46.7 million) in Our Planet distributed as follows:

Investment in Our Planet:

17%
Water
72%
Energy
11%
Waste and recycling

The actions we take in Our Planet Pillar respond directly to the issues that have been defined as material for our company and our stakeholders: Water, Energy, and Waste and Recycling.

  1. Water: We optimize our water consumption to reduce our water footprint.
  2. Energy: We work to reduce CO2 emissions from our operations.
  3. Waste and recycling: We optimize our waste management and reduce the impact of the waste created in our processes.

We look forward to continuing our actions focused on minimizing our environmental impact through comprehensive strategies that involve all of our Business Units, such as those that aim to increase the use of renewable energy in our operations, and specific initiatives in keeping with the nature of each Business Unit. For example, minimizing the amount of water we use in Coca-Cola FEMSA products, reducing emissions in FEMSA Logística transportation vehicles, and working on energy efficiency in FEMSA Comercio.

To strengthen our actions, in 2016 we updated the guidelines related to Our Planet through our Environmental Policy, which goes into effect in 2017. It establishes the guideline to know, minimize and address the risks associated with the environmental impact of energy, water and waste management throughout the value chain of all our operations.

Water G4-EN10, G4-EN27
We optimize water consumption to reduce our water footprint.

Aware of the importance of water for our operations, we have various initiatives to reduce its consumption, improve its management and conserve watershed.

At Coca-Cola FEMSA, water is an essential resource for offering our products to clients and consumers. Because this Business Unit accounts for a great percentage of the water FEMSA consumes directly, we are constantly working to be more efficient, optimize its use and incorporate best practices. We have accomplished that in Brazil and Mexico, 100% of the water used to produce its beverages is returned to the environment.

Water use efficiency vs. Coca-Cola FEMSA beverage production

We have the responsibility to collaborate positively on ecological and environmental matters in each of the communities in which we participate, improving with our actions the environment and good neighborliness.”

Miguel Angel Lira Garza
Equipment and Maintenance Engineer Manager at FEMSA Comercio

By the end of 2016 we increased our water efficiency per liter of beverage produced in 12% compared to 2010, baseline of our measurement, saving a total of 3 billion liters, equivalent to an 8% reduction on water consumption. This brings us closer to our goal towards 2020 of consuming only 1.5 liters of water per beverage produced.

At FEMSA Comercio we introduced new technologies to optimize our use, recovery, recycling and reuse of water. One example is the installation of an irrigation system, where we take advantage of water produced by condensation in our refrigeration equipment to water trees in 2,487 OXXO stores.

We also equipped 88% of our Distribution Centers (CEDIS) of FEMSA Comercio with basket-washing machines that optimize water consumption, and we intend to continue increasing this percentage in 2017.

At OXXO GAS in Mexico, this year we installed more dry urinals in the service station bathrooms. These water-free facilities save an average of 3.8 liters of water with each use.

In 2016, Imbera started up its Wastewater Treatment Plant in Querétaro, Mexico, with a capacity of 35 liters per second. This water is used for watering green areas.

Energy G4-15, G4-EN6, G4-EN7, G4-EN19, G4-EN27
We seek to achieve energy sustainability and contribute to reduce CO2e emissions in our operations.

Energy is a fundamental issue in our business operations, which is why year after year we incorporate new technologies, processes and tools to diversify our energy portfolio and optimize its use, reducing the environmental footprint of our operations.

At Coca-Cola FEMSA, we have the goal towards 2020 to supply 85% of the Mexican manufacturing power consumption by clean sources, for which we have achieved 46% by the end of 2016. In our operations in Brazil, 74% of the electrical energy supplied comes from clean sources.

Our efforts to increase consumption of renewable energy are not limited to our operations—through the C+ Verde program, we urge FEMSA employees to install photovoltaic solar panels in their homes, offering them technical advice and financing. With this initiative, to date, 230 MWh of energy have been generated, which has prevented the emission of 105.34 tons of CO2 equivalent to the emissions generated by 131 Mexican households during one year.1

1  According to INEGI, each household in Mexico consumes an average of 1,755 MWh / year.

From 2015 to 2016 we increased by 22% the number of CEDIS with basket-washing machines that optimize water consumption.

Besides seeking out clean, renewable energy sources, at FEMSA we are continually working to improve our electrical energy consumption efficiency.

FEMSA Comercio continued installing the Smart Automation and Energy Control System in different working places. By the end of 2016, 81.9% of OXXO stores, 88% of Distribution Centers and 30.7% of offices in Mexico have installed this system, which uses sensors, alarms and controls for regulating refrigeration equipment, air conditioning and lighting circuits. Additionally, we use solar control films in the windows of 3,105 OXXO stores in Mexico, which lower the amount of energy used in air conditioning.

We also have a Comprehensive Energy Efficiency Program (PIEE), through which with training programs, and research and development projects, we have identified and implemented new technologies focused on efficient and rational use of energy. This program comprises training, research and development. In 2016, as part of PIEE, we continued with the integration of LED lighting in sales floor areas, warehouses and exteriors of OXXO stores, improving lighting conditions while lowering energy consumption. Last year, these measures saved 21% on FEMSA Comercio’s energy consumption compared to 2009, baseline for our measurement; we also avoided 24,265 metric tons of CO2e emissions during the year.

OXXO Stores
operating with the Smart Automation and Energy Control System

At Imbera, even as production has increased by 17% between 2012 and 2016, we have been able to reduce our real energy consumption by 16.1% per unit of production in the same period.

We work to reduce the energy consumption of our products bringing benefits to our consumers and the environment. In the last 12 years, we have reduced an average of 44% the energetic requirements of our main equipments.3

3  This average considers VR17 and GR319C models.

We work to reduce the environmental impact of our products.

Our initiatives are also focus on reducing the environmental impact of the products we offer, thus, at Imbera, we are working toward a goal of using environmentally-friendly refrigerant gases in 80% of our equipment by 2021. In 2016 we reduced our consumption of R134 and 141B refrigerant gas by 30% compared to 2014.

We have also incorporated actions to improve the efficiency of transport and logistics energy consumption through the Sustainable Mobility, program, in which all our Business Units participate and through which we evaluate the technical, operational, economic and environmental feasibility of integrating new technologies and alternative fuels to our operations, always prioritizing road safety. During 2016 tests continued for the use of LP and natural gas in utility vehicles, as well as compressed natural gas in delivery vehicles; while in trucks, tests were carried out for the implementation of liquefied natural gas units. Also, we have integrated electric vehicles into our fleet, as well as installing advanced telemetry and GPS technology to improve the performance of our units.

Since 2010, FEMSA and its Business Units have been founding partners of the voluntary program Clean Transport, developed by the Ministry of the Environment and Natural Resources (Semarnat) and the Ministry of Communications (SCT) in Mexico, through which we demonstrate our commitment to the environment by adopting strategies, technology and best practices that make our transport operations more efficient, safe and sustainable. For six years in a row, FEMSA Logística has reported the environmental performance of its Primary and Secondary Distribution fleet, with Semarnat’s evaluation, being recognized by SEMARNAT for its excellent environmental performance.

Derived from the various initiatives implemented, FEMSA Logística has optimized the use of fuels, reducing our consumption by 12% per kilometer traveled with respect to 2015.

Waste and Recycling G4-EN27, G4-EN28
We work to minimize and optimally manage the waste resulting from our operations and that derived from our products and services.

An example of this is the actions put in place to minimize the waste generated by our operation. At Coca-Cola FEMSA, we do it through the proper management of industrial waste in our workplaces, where all plants operate with a waste reduction program.

We invite our clients to join the “No bag, thanks” campaign.

Our goal for 2020 for each of our bottling plants is to recycle 90% of their waste. At the end of 2016, 81% of our plants already achieved the goal.

At FEMSA Comercio, we have taken action to dispose of equipment and furniture appropriately at the end of its useful life, under a program we began in 2013 called Sustainable Disposal of Equipment and Furniture, through which in 2016, we recycled more than 680 metric tons of waste through the responsible disposal of more than 41,000 pieces of equipment and furniture, contributing to the development of recycling companies, the reincorporation of recycled materials into productive processes, and the disposal of non-recyclables in authorized sanitary landfills.

Since 2015, 100% of the new uniforms worn in OXXO stores and the pants used in the Distribution Centers are made with fabrics containing 50% recycled PET, equivalent to recycling more than 1.26 million of PET bottles. In addition to this effort, we have a Uniform Disposal and Recycling Program, that facilitated the recycling of 33,233 obsolete uniforms in 2016, equivalent to 9.4 metric tons of fabric that can be used subsequently.

At PTM we recovered 24,000 metric tons of recycling material in 2016, which was returned for use in 80% of the components of our products. We intend to steadily increase this percentage in the future.

In 2016, in PTM we recovered 24 metric tons of recycling material.

At FEMSA we also take care of the way the waste generated by the products we sell is handled, for example, at Coca-Cola FEMSA we innovate with environmentally friendly materials and packaging, lightening the presentations with the use of less raw material. Also, we have set the goal for 2020 to incorporate 25% of recycled or renewable material into our PET packaging for wich we have a progress of 19.8%. During 2016, in Argentina, Brazil, Central America, Colombia and Mexico, more than 47,000 tons of of recycled resin incorporated in our packages.

FEMSA Comercio works to build awareness about appropriate waste management. Since 2015, we have been carrying out a Comprehensive Store Waste Management Program, through which we improve the disposal of waste generated by various processes in 1,899 stores. Also, all our Distribution Centers have a specific area for the confinement, separation and classification of waste and, in 2016, more than 17.7 metric tons of waste were properly confined.

Moreover, we also launched in 2016 the campaign “No bag, thanks” campaign, inviting clients to reduce the use of plastic bags in their purchases at OXXO stores in Mexico.

For the equipment produced at Imbera, this past year we developed a project for the Final Disposal of Refrigeration Equipment which will start in 2017. This project will allow the proper collection of coolers by the end of its life cycle.

To learn more about Our Planet, please visit:
www.femsa.com/en/actions-with-value

We were recognized for the excellent environmental performance of our fleet.
Renewable
Energy

We seek to achieve energy sustainability in all our operations using renewable energy sources, and through implementing energy efficiency projects.

In Mexico, which accounts for 81% of FEMSA’s total energy consumption, we receive renewable electrical energy from four wind farms: Bii Nee Stipa and Stipa Naya in Oaxaca, Dominica II in San Luis Potosí and Ventika II in Nuevo León, the last of which was started operations in 2016. These parks provide us a combined total of 417,256 MWh during 2016 in 3,331 grid connection points, increasing the amount of wind energy we consume by 19%.

To continue toward our goal of obtaining 85% of our energy consumption in Mexico from renewable sources by 20202, in 2016 we signed a contract with a new wind farm in Coahuila, Mexico, which will supply 750,000 MWh and will begin operating in 2018.

2 Considering our consumption en 2010 as baseline.