2021 INTEGRATED ANNUAL REPORT
Governance
BOARD OF DIRECTORS
Shareholders and related
Independent members
(M) Member
(EF) Financial Expert
The Board of Directors, the highest governance body, is composed of 9 members, and is led by Héctor Hernández-Pons Torres, Chief Executive Officer of the Group, who holds the position of Chairman. Jointly, they make decisions to guarantee and maximize the return to all investors that rely on us.
The Board of Directors meets on a quarterly basis and has intermediate bodies commissioned with overseeing the management and execution of the objectives of the Group. As with the other indicators of the Company, the progress related to sustainability is presented in these sessions.
Responsible leaders:
- Eduardo Ortiz Tirado Serrano – Responsible for labor practices
- Luis Rebollar Corona – Responsible for environmental practices
- José Roberto Danel Díaz – Responsible for Governance and Chairman of the Corporate Practices and Audit Committee
In 2021, the Sustainability Committee was created, composed of the Executive Team of the Company. The Chief Financial and Information Officer has the Finance and Sustainability Department under its subordination, with two positions fully dedicated to managing the sustainability strategy. Additionally, the Group has an Environmental Sustainability Department, which jointly with the technical departments are dedicated to achieving the objectives of the sustainability strategy of the Group.
SUSTAINABILITY STRATEGY
Grupo Herdez has as its purpose to be passion, culture, and a global benchmark of innovation in sustainable development. In alignment with international trends and benchmarks on Environmental, Social, and Governance (ESG) matters, we redefined the sustainability goals for the Group:
Achieve a management with ESG criteria.
Identify and mitigate the potential social and environmental impacts of the operations.
Promote sustainability innovation projects in our brands.
OUR ACTION PILLARS
PEOPLE
COMMUNITY
PLANET
The subjects that this sustainability strategy seeks to answer are the concerns and expectations of our main stakeholders: shareholders, customers, collaborators, consumers, and suppliers. In addition to contributing to 6 of the 17 Sustainable Development Goals (SDG) of the United Nations.
The critical and strategic subjects on which the Group works are:
- Consumer health, safety, and well-being
- Brand trust and reputation
- Innovation (products and processes)
- Sustainable containers and packaging, reuse and recycling
- Profitable growth in markets and financial sustainability
- Water management
- Energy consumption and efficiency
- Ethics and anti-corruption
- Occupational health, safety, and wellbeing
- Labor conditions and relations
- Quality and safety in the value chain
- Transparency in product information and labeling
- Career training and development
- Compliance
- Consumer Experience
Material Sustainable Development Goals (SDG) of Agenda 2030 for the Group:
awards
9th place
The 100 companies with the highest ESG responsibility of Merco
7th place
The 100 most responsible companies in internal and social environment of Merco
10th place
The 100 most responsible companies on ethical and governance matters of Merco
At the end of 2021, the sustainability strategy of the Group adapted the work lines and actions to comply with the objectives and goals established and to be defined in 2022.
The Finance and Sustainability Department manages 4 in-house working groups where more than 5 collaborators participate to comply and follow-up on the aforementioned subjects:
- Diversity and Inclusion
- Balanced diet
- Environmental performance
- Circularity
This year, 11% of collaborators had some type of training on sustainability matters. The actions taken were:
- 25% of collaborators that participated in the Sustainability work groups obtained a certification from the International Association For Sustainable Economy (IASE), 700 hours of training were invested.
- 346 persons participated in the following workshop: Introduction to Sustainability.
- 322 persons participated in the following workshops: Introduction to sustainable development and Circular Economy.
- 41 persons trained in the science-based targets project.
- 429 persons attended “Café Sustentable” sessions: informative talks on the different programs and actions carried out by the ESG departments and brands.
1,152
collaborators trained in ESG**
subjects
1,898
hours of training in ASG** subjects
13
collaborators certified in IASE*
62%
of the workforce trained in ethics and legality
98%
of complaints
were resolved
* International Association For Sustainable Economy
** Environmental, Social and Governance
CODE OF ETHICS
Since 2012, Grupo Hérdez is adhered to the UN Global Compact. We have committed to prioritize and work to comply with its 10 principles, which includes complying with a focus on ethics and legality for collaborators and strategic partners, in addition to working against corruption in all its forms, including extortion and bribery. Lastly, we respect the right to collective union bargaining.
Our Code of Ethics is the set of basic principles and conduct guidelines applicable to all of us that form part of the Group, including our supply chain, therefore, it is our responsibility to comply with it and reinforce its compliance.
Our ethical concern advice mechanism is the Trust Line, where one may request advice on ethical and legal conduct, integrity of the organization, and report concerns relating to unethical or illegal conducts.
Line: 800 CONFIANZA (800 266342692) Email: confianza@herdez.com