We are sustainable movement

Our sustainability strategy enables us to generate value for the business and concentrate efforts on relevant actions to the benefit of our stakeholders. This strategy is based on four fundamental pillars:

Quality of life

Our employees are a vital part of the Grupo Herdez movement. Which is why the Company’s strategic priorities are having professional and trained personnel, a sense of belonging and equity, and promoting opportunities to motivate positive changes in our workforce.

We promote equality in our workforce through our Gender Equity Policy. The salary for each category or vacant position is established with no distinction for gender. Currently, 41% of the workforce are women. GRI 102-8

We know that experience and training go hand in hand. During the year, we invested $8.4 million in training, allowing us to increase training time by 28% to a total of 142,451 man-hours, an annual average of 15.5 hours per employee. GRI 404-1

We regularly assess 100% of our employees using a variety of approaches, including adherence to profile, achievement of objectives and production indices. GRI 404-3

To give continuity to our ongoing leadership training plan, our courses in 2016 included: i) Principles and Qualities of Genuine Leadership; ii) Emotion Management; and iii) Collaborating for an Impeccable Service, with an average participation of 80% of our leaders. We have achieved this through the 36 certified internal brigade members.

Aware of the safety, health and environmental risks that may affect our employees, we have an Environmental, Safety and Hygiene Control Area (CASH, for its initials in Spanish), whose objectives are to safeguard personal integrity and installations, contribute to the well-being of personnel, maintain and improve the safety and environmental culture, and ensure operating continuity.

3

Diagnosis of the occupational health program

To this end, since 2014 we have been working on nine phases companywide: 1. Situational awareness diagnosis; 2. Strengthen leaders, CASH; 3. Diagnosis of the occupational health program; 4. Tools training, CASH; 5. Behavior-based safety training; 6. Development of health signals; 7. UPS standardization, CASH; 8. CASH community with support from each location, and 9. Integrated occupational medicine program.

At the close of 2016, 70% of sites had finished phase 6, and the goal for 2017 is to complete the nine phases in all sites.

The accident rate during the year was 1.90, while the rate of days lost to accidents was 37.18.

The number of accidents is based on IMSS’s Single Self-Calculation System, which includes work-related accidents, occupational diseases and relapses. Its scope is limited to those indicators managed by the Company, which are calculated based on the methodology of Global Reporting Initiative versión G4, as follows:

(*) The accident rate expresses the number of accidents in 2016 in relation to the total man-hours worked per 200,000.
(**) The rate of days lost is expressed by comparing the total days lost with the total man-hours worked per 200,000.

The 200,000 factor is the result of 50 working weeks of 40 hours per 100 employees. By using this factor, the resulting rate is linked to the number of workers, not the number of hours.

In compliance with environmental, safety and hygiene control standards, we have Clean Industry and Safe Industry certifications, Quality Certification, Civil Protection Certification and certification from the National Water Commission.

One of the activities implemented to promote a healthy lifestyle among employees was the Healthy Eating Program, through which we gave 2,207 nutritional consultations during the year in Mexico City, the State of Mexico and San Luis Potosí. These were attended by 200 employees on a monthly basis who altogether lost 1,351 kilos in the year.

The program is personalized and free of charge and gives employees eating and exercise plans to improve their quality of life and develop healthier life styles. GRI IP-4

2,207

Nutritional consultations

200

Employees

benefited