As an enabler of our company’s strategic growth, we ensure sustainability is fully integrated throughout our day-to-day decision-making processes and business operations. With the long-term sustainability of our business in mind, we strategically, proactively, and responsibly address our operations’ sustainability challenges across our value chain—from clean energy to climate change, efficient water use and conservation, responsible waste management, community development, and safety.
We strive for energy efficiency across our value chain. We further integrate clean and renewable sources of energy and technologies to reduce our carbon emissions—thus contributing to climate change mitigation.
Our operations’ energy consumption focuses on a comprehensive strategy that encompasses our value chain. Aligned with this strategy, we have defined the following 2020 goals: to reduce the carbon footprint of our value chain by 20% against our 2010 baseline; and to supply 85% of the energy we use for our manufacturing in Mexico from clean sources.
Our 2020 Goals:
Reduce the carbon footprint of our value chain by 20% against our 2010 baseline.
Supply 85% of the energy we use for our manufacturing in Mexico from clean sources.
Science Based Targets Initiative:
Acting Against Climate Change
During 2019, Coca-Cola FEMSA embarked on the Science Based Targets initiative (SBTi) to improve our accounting of greenhouse gas (GHG) emissions across our value chain, so we can adopt a science-based target for GHG emissions reduction that is aligned with the goal of the Paris Agreement to limit global warming to well below 2ºC.
Based on a thorough business analysis, we precisely identified the sources of our operations CO2 emissions—from ingredients to packaging, manufacturing, distribution, and cold drink equipment. With this hard data, we are defining the actions that we must take to drive down our CO2 emissions through a clearly defined science-based pathway to a low carbon economy.
The SBT initiative is a collaboration between CDP (formerly the Carbon Disclosure Project), the United Nations Global Compact, World Resources Institute, the World Wide Fund for Nature, and one of the We Mean Business Coalition commitments.
2018 Value Chain Emissions*
* We report the carbon footprint of our value chain a year behind, since the inventory is made after the operating year is completed.
We managed to increase our energy efficiency by 46% from 2010 to 2019.
Manufacturing Energy Efficiency, Clean Energy & Emissions Reduction
Our aim is to improve the energy efficiency of our manufacturing operations, while simultaneously reducing our greenhouse gas emissions. To this end, we managed to increase our energy efficiency by 46% from 2010 to 2019.
To improve our plants’ energy efficiency, we have implemented multiple strategic initiatives:
From 2015 through 2019, we achieved a 12.6% decrease in our manufacturing operations CO2 emissions, reaching 13.7 grams of CO2 per liter of beverage produced in 2019.
From 2015 through 2019, we achieved a 12.6% decrease in our manufacturing operations CO2 emissions, reaching 13.7 grams of CO2 per liter of beverage produced in 2019.
By 2020, we look to satisfy 85% of our Mexican manufacturing operations’ electricity requirements with clean energy. By the end of 2019, we achieved 69% coverage of our Mexican bottling operations’ power needs.
Beyond this goal, we supplied 70.7% of our global bottling operations’ electricity requirements with clean energy sources by the end of 2019, up more than seven times from 9% in 2014. We use clean sources of energy for our manufacturing operations in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Mexico, and Panama.
For the year, we reduced our energy consumption by 12%, resulting in the following total savings:
US $8.15 million – total energy savings
We use clean sources of energy for our manufacturing operations in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Mexico, and Panama.
Water is an essential ingredient in the production of our beverages. Consequently, we are committed to ensuring the efficient use and conservation of this natural resource for the benefit of our company, our communities, and our planet.
Our 2020 Goals:
Increase our efficiency in water usage to 1.5 liters of water per liter of beverage produced.
Return to our communities and their environment the same amount of water used in our beverages.
Consistent with this commitment, we have established a comprehensive water strategy, founded on three pillars:
From 2010 through 2019, we decreased our absolute water consumption by 27.8%
Protect, Produce, and Return:
Water scarcity is a global challenge of rapidly growing proportions. Therefore, we must act to ensure water security to enable the sustainable growth of our company, our communities, and our planet. To this end, our operations follow a three-part paradigm to protect, efficiently produce, and return this vital resource to the environment.
Among our efforts, we continually update our water risk assessment tool, conduct plant self-assessments, and secure water concessions for our production facilities to protect the water supply of our company, our communities, and our countries. Moreover, we constantly aim to improve our water use ratio in the production of our beverages through increased operating efficiency and investment in our top 10 most water intensive plants. Furthermore, our operations keep working to replenish and return to the environment and our communities the same amount of water used to produce our beverages by capturing the full potential of our water recovery systems.
Water Efficiency
As a beverage bottler, efficient water management is essential to our business, our communities, and our planet. By 2020, our goal is to improve our water use ratio to 1.5 liters of water per liter of beverage produced. For 2019, we remained on track to reach our 2020 goal, achieving 1.52 liters of water per liter of beverage produced—a 22.5% improvement in our water use ratio from our 2010 base year. Moreover, our water efficiency initiatives and projects generated savings of US$ 1.63 million in 2019.
Through our Top 20 Water Saving Initiatives program, we foster efficient water consumption across all of our plants. To this end, we registered significant progress across our operations, focusing on 20 key measures—from our detection and elimination of leaks to optimal water use in our plants to our water recovery systems.
Wastewater Treatment
100% of the water we discharge from our manufacturing operations is sent to wastewater treatment plants, which ensure sufficient quality to foster aquatic life.
Access to Safe Water and Sanitation in Our Communities
In collaboration with FEMSA Foundation, we carry out projects designed to improve communities’ quality of life by helping to provide them with safe water, improved sanitation, and hygiene education. While the Foundation intervenes significantly at the outset of each project, all of these initiatives utilize the necessary elements to enable communities to adopt them in a sustainable way—enduring over the long term.
For more information about FEMSA Foundation, visit https://www.femsa.com/en/femsa-foundation/
We currently give back 100% of the water we use in the production of our beverages.
Water Replenishment & Conservation
Aligned with the United Nations’ Sustainable Development Goals, we recognize that water is an important and essential natural resource. Accordingly, we join efforts to provide access to potable and affordable water, as well as to protect and recover water-related ecosystems.
By 2020, our goal is to reduce our water consumption and to return to the environment and our communities the same amount of water used to produce our beverages. Aligned with our goal, we currently give back to the environment more than 100% of the water we use in the production of our beverages in Argentina, Brazil, Central America, Colombia, and Mexico.
In light of the substantial scope, importance, and complexity of water conservation and replenishment, we work to strengthen water funds and conserve water basins through sustainable initiatives involving partnerships with several stakeholders. Through the Latin American Water Funds Partnership—comprised of the Nature Conservancy, FEMSA Foundation, the Inter-American Development Bank (IDB), and the Global Environment Facility—we jointly seek to offer hydrological safety in the region, ensuring sustainable access to a sufficient quantity and quality of water to sustain human life and socioeconomic development.
To date, the Partnership has developed 26 water funds. Of these funds, five are in countries where we operate—Brazil, Colombia, Costa Rica, Guatemala, and Mexico. As a result, through 2019, the Partnership has worked to directly benefit approximately 110,500 people in areas near the water basins through job creation and capabilities training since the projects began.
At Coca-Cola FEMSA, we strive to mitigate the environmental impact of our operations’ processes. Over the past several years, we have led the way in the promotion of a culture of waste management throughout all of our operations and value chain.
Circular Economy Of Post-Consumption
Packaging
In Coca-Cola FEMSA we are confindent that with the support & co-responsibility of all actors in the value chain, a market-based approach to the circular economy is achievable.
KOF Waste Management Strategy
Comprehensive and responsible post-industrial waste management
Post-consumption collection and recycling
Efficient design and integration of recycled materials in our packaging
Our 2020 Goals:
To recycle at least 90% of the waste we generate in every one of our bottling plants.
To include 25% of recycled materials in our PET packaging.
World Without Waste
Plastic waste is a global problem that concerns all of us. It is unacceptable that packages of beverages end up in the wrong place. Therefore, we continue to embrace our responsibility to help ensure that our company’s impact is positive, and our actions inspire others.
Consistent with our long-term commitment to waste management, we are fully aligned with the three pillars of The Coca-Cola Company’s “World Without Waste” global initiative’s 2030 vision to:
DESIGN
COLLECT
PARTNER
Working together, we remain committed to help solve this pressing problem throughout the entire packaging lifecycle—from how our bottles are designed to the way they’re collected, recycled, and reused.
Innovative Packaging Development
Within the beverage industry, our product packaging is mainly comprised of PET, glass, and aluminum. We are committed to efficiently using our packaging materials; redesigning our packaging’s components to achieve 100% recyclability while including a significant share of recycled content.
By 2020, our goal is to incorporate 25% recycled materials into all of our PET packages. In 2019, we successfully included an average of 23.7% of recycled resin into the production of all of our PET presentations.
Consistent with our efficient resource management and optimization of our packaging materials, we continued to deploy a wide-ranging light-weighting strategy for our operations’ PET presentations and caps. Through our efficient resource management and packaging optimization, we generated savings of approximately US$ 11.2 million in 2019.
By joining efforts, we multiply the effects of our actions. Accordingly, we partner with communities, authorities, and NGOs on different initiatives to raise awareness of post-consumer waste management, carry out collection and recycling programs within our communities, and inform consumers about the proper disposal and handling of the waste generated from our products, including marine litter prevention, debris collection, and beach cleanups.
Importantly we launched Movimiento Re in Colombia, an industry alliance to increase PET collection rates in the cities of Cartagena, Santa Marta, and Barranquilla.
Since 2002, we have collaborated with other food and beverage companies through ECOCE, a Mexican civil association that promotes the collection of waste, the creation of a national market for recycling, and the development of recycling programs. Through this collaboration, in 2019, ECOCE collected 56% of the total PET waste in Mexico.
Importantly, we are leaders in PET bottle-to-bottle recycling in Latin America. In 2005, we joined efforts in Mexico to operate the first food grade PET recycling plant in Latin America, called IMER (Industria Mexicana de Reciclaje or Mexican Recycling Industry). In 2019, this plant recycled 11,909 tons of PET. Moreover, we agreed to co-invest with our supplier in the construction of a new food grade PET recycling plant with a capacity of 35,000 tons in southeast Mexico. Overall, we have a total of 14 recycled food-grade resin suppliers across our operations network.
Overall, in 2019, we utilized a total of 63,631 tons of recycled materials in our plants in Argentina, Brazil, Central America, Colombia, and Mexico. As a result of these efforts, we have used more than 336,000 tons of recycled PET since 2010.
Strengthening Our Collection And Recycling Capabilities
In August 2019, we started operations in Brazil of SustentaPET, a PET collection center that will allow us to strengthen our capabilities in the Greater Sao Paulo metropolitan area.
Leveraging our shared knowledge and best practices, we are undertaking customized approaches for each country through which we engage with suppliers of recycled food-grade PET resin, develop our own collection and recycling capabilities, and partner with other stakeholders to achieve our common goals.
Post-Industrial Operating Waste Management
In 2019, 22 of our bottling plants earned Zero Waste to landfill certification. Designed for our Mexico operations, this initiative establishes specific measures to improve waste management, disposal, and repurposing—resulting in improved waste efficiency per liter of beverage produced.
By 2020, we aim to recycle at least 90% of our waste in each of our bottling plants. At the end of 2019, 90% of our plants successfully achieved this goal. Importantly, in Mexico, our plants recycled 100% of the waste generated in our production processes. Overall, we recycled 95.7% or approximately 114,000 tons of manufacturing waste generated.
Currently, 18 of our plants in Mexico have obtained Clean Industry certification from the Federal Environmental Protection Agency (PROFEPA). Moreover, in 2019, 36 of our distribution centers in Mexico received air quality certifications from PROFEPA, the state of Mexico’s Environmental Agency, and Mexico City’s Ministry Secretary of the Environment (SEDEMA). These and other recognitions confirm our commitment to the environment and overall sustainability.
To this end, we diligently work to ensure our processes comply with the highest national and international standards and with all applicable laws, avoiding sanctions and fines pertaining to environmental issues, while reaffirming our commitment to efficient operational processes, environmental performance, and competitiveness.
The following table concentrates the historical performance of our most important environmental indicators.
| Performance Indicator | Unit of Measure | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|
| Beverage produced | Billion liters | 21.0 | 20.3 | 19.7 | 18.6 |
| Water use1 | Billion liters | 36.0 | 33.4 | 31.3 | 28.2 |
| Water efficiency | Liters of water used per liter of beverage produced | 1.72 | 1.65 | 1.58 | 1.52 |
| Total PET used | Thousand tonnes | 296.1 | 281.2 | 317.2 | 268.9 |
| PET virgin resin used | Thousand tonnes | 248.7 | 221.7 | 253.3 | 205.2 |
| Recycled PET use | Thousand tonnes | 47.4 | 59.5 | 63.9 | 63.9 |
| Recycled materials used in PET packaging | Percentage of total PET used | 20% | 21% | 21% | 23.7% |
| Waste generated | Thousand tonnes | 174.0 | 152.0 | 135.4 | 119.1 |
| Waste recycled | Thousand tonnes | 163.0 | 144.0 | 132.4 | 114.0 |
| Waste recycled | Percentage of total waste generated | 93% | 94% | 98% | 96% |
| Waste efficiency | Grams of waste generated per liter of beverage produced | 8.3 | 7.5 | 6.9 | 6.4 |
| Total energy use2 | Million Megajoules | 4862.0 | 4514.0 | 3858.9 | 3399.4 |
| Energy from fuel use | Million Megajoules | - | 2382.0 | 1872.5 | 1615.8 |
| Electricity from clean sources | Million Megajoules | - | 810.2 | 1024.4 | 1260.8 |
| Other electricity | Million Megajoules | - | 1321.8 | 962.1 | 522.8 |
| Energy efficiency2 | Liters of beverage produced per Megajoule of energy used | 4.4 | 4.5 | 5.1 | 5.5 |
| Global clean energy use | Percentage of total energy use | 29% | 38% | 51.6% | 70.7% |
| Clean energy use in Mexico | Percentage of total energy use | 46% | 57% | 51% | 69% |
| Greenhouse Gas Emissions efficiency 3,4 | Grams of CO2e per liter of beverage produced | 15.2 | 13.9 | 13.3 | 13.7 |
At Coca-Cola FEMSA, we firmly believe that it is fundamentally necessary to protect our people’s safety, so they can fully enjoy every moment of their lives, while creating sustainable value for our consumers, our customers, and our business. That is why we continually reaffirm our commitment to do everything necessary to safeguard the lives of all of the people with whom we interact across our operations to achieve our vision of zero incidents.
Consistent with this commitment, we regard safety as a core value and behavioral principle for all of our employees and our organization, based on a culture of prevention, collaboration, respect, and recognition—aligned with KOF DNA and our world-class management model.
Quality • Safety • Environment
Through our Executive Team, Coca-Cola FEMSA ratified our Safety Strategy and Vision 2020 – 2022 for all of our operations—encompassing all of our employees, third parties, and strategic partners to whom we have made the promise and commitment to become a global safety benchmark. Until we achieve our vision of zero incidents, we have pledged to achieve a 15% annual reduction in our incident rates, consistent with our commitment to achieve world-class indicators and attain a Lost Time Incident Rate (LTIR) of 0.5 through our supply chain by 2022.
To this end, we established KOF Quality, Safety & Environment (QSE) Committee, representing the 9 countries in which we operate. This Committee aims to define our QSE Strategy and transformational initiatives for all of Coca-Cola FEMSA.
Our 2020 Goal:
To reach a Lost Time Incident Rate (LTIR)¹ of 0.5 and a Total Incident Rate (TIR)² of 1.5.
The factor of 200,000 is obtained from the estimated hours worked by 100 employees over 50 weeks at 40 hours per week. This factor allows for a comparison of the indicators as a proportionate rate.
As a result of our strategic safety initiatives, we reported a Lost Time Incident Rate (LTIR) of 1.10 in 2019, a 7% reduction from 2018 and a 57% reduction from 2015. Virtually all of our operations reported a downward trend compared to the prior year; notably, our Brazilian operation surpassed our 2022 goal with an LTIR of 0.36. We also achieved a 14% reduction in our Lost Time Incident Severity Rate (LTISR), from 22.68 in 2018 to 19.50 in 2019. We further reached a Total Incident Rate (TIR) of 1.88, a 6% reduction from 2018.
Transform Our Safety Culture
During 2019, we evolved our Safety Cultural Transformation Model into our QSE Cultural Transformation Model, aligned with KOF DNA, our Supply Chain Strategy, and the Coca-Cola system’s QSE Culture Model. This model defines five key QSE cultural elements and 15 transformation sub-elements that will enable us to achieve our company’s desired picture of success, which forms the foundation for both our Supply Chain and QSE Strategy.
Pursuant to this model, we conducted more than 350 QSE leadership workshops in all of our operations, connecting more than 10,000 employees and 100 work centers. Our supply chain and sales area leaders took part in our QSE leadership workshops, defining the challenges, vision, purpose, beliefs, behaviors, routines, and transformation plans that our company plans to implement over the next three years. Moreover, we formed more than 150 Safety Cultural Committees, replicated more than 100 safety initiatives, and carried out more than 200 safety activities.
Over 1,500 action plans created to manage safety risks throughout the company.
Manage Key Risks & Focus On Critical Activities
During 2019, we developed our QSE Risk Management Strategy, and we identified and validated our main strategic risks at a company level. Moreover, we completed the third stage of our Corporate Safety Standards development, where programs and controls for key risks at a company level are defined. We have designed more than 1,500 action plans to manage safety risks at a company level. Throughout 2020, we will continue their implementation according to each operation’s risk map, as well as the critical risks of our Top Five Initiative process at each of our operation’s level.
Our vision is to achieve zero incidents.
Safety Function Transformation
Our development of safety capabilities is one of our core transformational initiatives. In order to face current and future organizational challenges, we must develop skills that enable us to make better decisions, including those related to safety. Accordingly, we conducted more than 500 training activities, including the following series of consolidated educational and diagnostic models and safety skills programs:
During 2019, we invested over 1.25 million training hours in Occupational Health and Safety.
Safety Technology &
Digitalization
Our safety technology and digitalization pipeline continues to enable our Road Safety Strategy and results. During 2019, we mapped our main risks and key strategies, while defining a series of pilot tests and technologies to implement over the next three years. Additionally, we developed and pilot-tested the following main initiatives over the course of the year:
Moreover, we continued to consolidate our Road Safety Strategy. Based on three key elements—People, Organization, and Vehicles—this strategy has enabled us to significantly improve road safety by reducing the number of accidents within the organization. To support this strategy, our business units have continued to implement initiatives and innovations that have accelerated the positive performance in this critical area, focusing on the development of our drivers’ capabilities, the development of organizational processes, and the implementation of technology for road risk monitoring and management. Thanks to these transformational initiatives, we achieved a 22% crash rate reduction compared with 2018.
Commitment to Zero Incidents
At Coca-Cola FEMSA, we firmly believe that all incidents are preventable. Accordingly, we continually research, analyze, and identify the measures required to reduce the number of injuries resulting from our operations.
For 2019, we reduced our total fatalities by 10%. Beginning 2018, this data includes all of our manufacturing, distribution, and commercial operations conducted by our employees, contractors, and third parties. Importantly, 96% of our operations did not report fatalities; however, the remaining 4% is still an unacceptable number. We are deeply sorry and regret to report a total of 25 fatalities, 96% from road accidents and 4% from incidents within our operations. We will not be satisfied until we fulfill our promise and commitment to zero incidents. We offer our condolences to the families and people affected by our operations, and we pledge to implement best practices to prevent any future losses.
Through our Sustainable Mobility strategy, we aim to reduce the impact of our fleet—including our primary and secondary distribution trucks—and to position ourselves as the industry leader in Latin America in terms of vehicle efficiency, environmental stewardship, and safety.
We are executing route optimization strategies to maximize our overall vehicle efficiency. With the complete rollout of our KOF Digital Distribution 1.0 platform in Mexico and Brazil, we have installed telemetry equipment on 100% our secondary distribution fleet. Thanks to our trucks’ telemetry data—combined with the functionality of our mobile delivery devices—we enjoy the capability to identify and correct deviations in our distribution route execution versus our route plan. This equipment also enables us to analyze our route execution patterns in order to identify an optimal combination of variables to improve our route planning process. As a result, we optimize our fleet’s usage, minimizing our vehicles’ downtime while maximizing our vehicles’ uptime. Thanks to our telemetry equipment, we also significantly reduced our fuel consumption by more than 650 thousand liters in 2019, while decreasing our CO2 emissions by 1,740 tons for the year.
Moreover, with our deployment of dynamic routing across our secondary distribution fleet in Brazil, Colombia, and Argentina, we enjoy the flexibility to plan our vehicles’ routes every day, thereby optimizing our available fleet resources and our distances traveled to serve our customers.
In 2019, we continued to evaluate the commercial viability of new lower emission vehicles and emission reduction devices. In Mexico, we are working with FEMSA on an initiative to convert certain small trucks to electric vehicles. We are also running tests on an engine idling limiter for our secondary delivery trucks in order to decrease our CO2 emissions by 8,200 tons per fleet annually. Currently, 91% of our company’s forklifts run on either electricity or liquefied petroleum gas.
Additionally, we leveraged our secondary fleet substitution program in Mexico and Brazil, where we maintain our largest volume of delivery trucks. Over the past four years, we have substituted more than 1,350 trucks with vehicles that meet higher standards to reduce emissions. Thanks to this program, we reduced our fuel consumption, emissions, and maintenance costs, and we reinforced our commitment to eco-efficiency with local environmental authorities.
In the Valley of Mexico, we continued to work closely with local governmental authorities to earn certification for 1,127 of our trucks under the self-regulation program. Pursuant to this voluntary program, we commit to minimize the local delivery fleet’s emissions through key initiatives, including an efficient maintenance process and ongoing fleet substitution program. Among other benefits, local authorities allow us to continually operate our complete secondary distribution fleet every day—fostering our social license to operate.
In recognition of our efforts to reduce our primary and secondary fleet’s emissions, we earned the Clean Transportation Award from Mexico’s ministries of Environment and Natural Resources (SEMARNAT) and Communications and Transportation (SCT) for the eighth year.
83% of our procurement expenditure goes to local suppliers.
Sustainable Sourcing
At Coca-Cola FEMSA, we work with our suppliers to reduce the environmental and social impacts generated by our commercial interactions and thus improve the conditions of our supply chain. In this way, we not only minimize negative impacts, but also raise standards in key business areas, increase labor efficiency, preserve environmental capital, and reduce risks and costs for all of those involved throughout the value chain.
As part of our company’s sustainable sourcing mandate, in conjunction with our defined strategic initiatives, each supplier cooperates to minimize their social and environmental risks over which we have no direct control and which cause the greatest number of impacts throughout our supply chain on a daily basis. The general guidelines that we use to make this happen are:
1. The Coca-Cola Company’s (TCCC) Supplier Guiding Principles focus on strategic input categories and include areas such as Human Rights Policies, Environmental Protection, and Labor Rights. Through audits that ensure compliance with these standards, TCCC authorizes its bottlers to work with approved suppliers.
2. Sustainable Agriculture Guiding Principles. Established by TCCC, they include the same areas as the previous principles, but are adapted to suppliers of agricultural raw materials.
3. FEMSA’s Supplier Guiding Principles. We apply these principles to mitigate social risks of suppliers for categories that are different from those of the strategic inputs and are relevant to the value chain.
These principles reflect the standards that guide our daily activities to ensure we provide responsible workplaces that protect human rights and comply with environmental laws. Founded on these principles, we follow a comprehensive five-step Sustainable Sourcing Strategy:
Prioritization of categories
At Coca-Cola FEMSA, we use a proprietary tool to identify which suppliers are candidates for a development process. Suppliers are prioritized considering factors such as expenditure, environmental, social, and ethical impacts for each product category, dependability, brand association, and operational criticality.
Sustainable purchases
Through this step, we include FEMSA’s Supplier Guiding Principles in our supplier contracts and requests for information, provide general guidelines for assessment procedures, and conduct training for sourcing and purchasing employees.
Assessment
At Coca-Cola FEMSA, we assess our suppliers continuously through our Sustainable Sourcing System, ensuring that they are aligned with our company’s operating principles and values. Carried out online, this assessment focuses on four main areas: Social/Labor Rights; Environment; Ethics and Values; and Community. To ensure the process’ transparency, a third party reviews and verifies the information, and we then provide feedback and create action plans to encourage supplier development, ethics, and sustainability. All suppliers with low scores are subject to improvement plans at their facilities and are evaluated periodically to encourage their continuous improvement. This year, we conducted 426 supplier evaluations based on FEMSA’s Supplier Guiding Principles. Since 2015, we have carried out 1,897 evaluations under these principles.
Consistent with this strategy, The Coca-Cola Company (TCCC) assesses and ensures compliance with its guiding principles and sustainability standards for specific categories of strategic suppliers; at Coca-Cola FEMSA, we only work with suppliers approved by TCCC in those categories. In 2019, TCCC carried out 105 evaluations of suppliers aligned with their Supplier Guiding Principles and Sustainable Agricultural Guiding Principles.
In addition to these assessments, Coca-Cola FEMSA is one of the few companies that promoted the application of these assessments to Tier 2 suppliers or the suppliers of our suppliers. Currently, our strategic suppliers are applying the same risk assessment and mitigation mechanisms within their own value chain. This ensures that the knowledge and the drive for greater sustainability not only remains within our direct circle of influence, but also extends to all of those who participate in supplying raw materials, inputs, and services.
Capabilities development
To strengthen our suppliers’ business capabilities, we provide them with access to training and growth initiatives on topics such as finance, marketing, and human resources, among others. We also support their growth and build their business skills, improve their companies, and develop high quality products aligned with our principles and values.
In collaboration with the Mexican Center for Competitiveness (Centro Mexicano de Competitividad), we carry out a Comprehensive Supplier Development Program for strategically selected small- and medium-sized enterprises (SMEs) to improve their business capabilities. Through this program, we collaborate with suppliers to not only improve their sustainable competitiveness, but also forge stronger relationships with our company and other large companies. In 2019, 35 suppliers participated in the program, training a total of 266 suppliers from Mexico and Costa Rica over the past four years.
Recognition
The good performance of our suppliers on sustainability issues is very important. Accordingly, we recognize all of those suppliers that incorporate sustainability into their own business’s DNA not only as a requirement for doing business with Coca-Cola FEMSA, but also as a competitive advantage and a means to become socially responsible. In Mexico, we conducted a suppliers’ forum, with the participation of over 55 companies, where we recognized Ecolab, Lub y Rec, and Spirax Sarco for their remarkable practices in water access and education.
35 suppliers participated in the SME Development program, training a total of 266 suppliers from Mexico and Costa Rica over the past four years.
Community Development
To develop stronger relationships with our immediate communities, we encourage continuous dialogue and interaction. By systematically analyzing their particular needs, we design and deploy activities that benefit both our communities and our company. In this way, we seek to build trust and ensure the commitment of all parties involved—maintaining our social license to operate.
This not only enables us to consolidate positive relationships with our communities, but also contributes to our ability to serve the market while identifying key opportunities to collaborate with our neighbors.
Our 2020 Goal:
To put in place a community relations plan throughout 100% of our key work centers.
In Coca-Cola FEMSA we are convinced that strong communities are good for business.
Community relations’ management model
To create a community relations vision that we can put it into practice in a standardized and systematic manner, we developed a management model that includes five sequential steps—which are the foundation of our Model for Addressing Risks and Relations with the Community (MARRCO).
During 2019, we expanded the reach of MARRCO. From 2016 to 2019, we have implemented MARRCO in 40 prioritized facilities representing 81.6% of our target.
Based on MARRCO methodology, our work centers are designing a community engagement plan to immediately implement a series of measures, including mitigation activities to reduce our operational footprint and community programs aligned with local needs and risks. In turn, this will help us to ensure our positive coexistence and our business’ permanence at those locations, while reaffirming our social license to operate.
Social programs and initiatives
At Coca-Cola FEMSA, we build positive relationships with our communities by carrying out different social programs and initiatives in order to improve local living conditions from the moment we begin our operations. Recognizing the diversity of our countries and communities, we develop enriching activities aligned with their local needs.
In 2019, we carried out over 100 community development programs and social initiatives with over 6 thousand different interventions to benefit our communities across the countries where we operate.
Among our many different activities, our exemplary social programs and initiatives in these countries include:
Brazil
Minha Galera Faz Eco
This is an inter-school socio-environmental program that seeks to foster interest in sustainable practices among children.
COLOMBIA
Vive Bailando
This social intervention model focuses on teenagers and uses dance classes as both a transformation and healthy lifestyles tool that sustainably and positively impacts their behavior, leadership, family unit, and ability to change their surroundings, which have been affected by violence.
mexico
Vive tu Parque
These parks feature an outdoor gym, sports facilities, drinking fountains, children’s games, and lights.
Argentina
Canteros Alcorta
We rehabilitated the boulevard in front of our Alcorta plant by installing sports poles.
costa rica
Female Empowerment Project
With the participation of women entrepreneurs and neighbors from Calle Blancos, we carry out financial practices workshops to benefit their small enterprises.
